Prominerals Inc. Technical Report on the Laura Lake Project
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CHRISTIAN DEROSIER GÉOLOGUE-CONSEIL INC. PROMINERALS INC. TECHNICAL REPORT ON THE LAURA LAKE PROJECT Levy Township Ungava County Province of Quebec NTS: 32G15 Prepared by: Christian Derosier, P. Geo., M.Sc., D.Sc. # OGQ 129 June 30, 2012 1957 Chemin Harwood , Saint- Lazare, Québec; J7T 2N3; Tél : ( 450) 458 7865 Fax: (450) 458 1403 TABLE OF CONTENTS SUMMARY 1.0 INTRODUCTION 2 2.0 RELIANCE ON OTHER EXPERTS 6 3.0 PROPERTY DESCRIPTION AND LOCATION 8 4.0 ACCESSIBILITY, TOPOGRAPHY, INFRASTRUCTURE, CLIMATE AND VEGETATION 11 5.0 PREVIOUS WORK 15 6.0 GEOLOGICAL SETTING 31 7.0 DEPOSIT TYPES 53 8.0 MINERALIZATION 55 9.0 EXPLORATION 60 10.0 DRILLING 68 11.0 SAMPLING METHOD AND APPROACH 72 12.0 SAMPLE PREPARATION, ANALYSES AND SECURITY 74 13.0 DATA VERIFICATION 75 14.0 ADJACENT PROPERTIES 76 15.0 MINERAL PROCESSING AND METALLURGICAL TESTING 77 16.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES 79 17.0 OTHER RELEVANT DATA AND INFORMATION 80 18.0 INTERPRETATION AND CONCLUSIONS 81 19.0 RECOMMENDATIONS 82 20.0 BIBLIOGRAPHY 85 21.0 DATE AND SIGNATURE PAGE 86 22.0 ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT PROPERTIES AND PRODUCTION PROPERTIES 87 23.0 CERTIFICATE OF QUALIFICATION 88 APPENDICES LIST OF FIGURES Figure No 1: Location Map 1 Figure No 2: Part of Quebec road Map, main access ( Chibougamau- Lac St-Jean area) 5 Figure No 3: Part of the Claims Map (32G/15) 7 Figure No 4: Satellite view from the SW part of Chibougamau area 13 Figure No 5: Part of the 32G/15 Topographic Map 14 Figure No 6: Longitudinal Section of the 113 North Structure 16 Figure No 7: Surface Pulse EM Survey, Horizontal X Component 22 Figure No 8: Compilation Map showing the 2007- 2008 Drill Holes Location 24 Figure No 9: Simplified Geological Map of theAbitibi Greenstones 32 Figure No 10: Simplified Geology of the Chapais-Chibougamau area 35 Figure No 11: Stratigraphic Sections of the Chibougamau- Caopatina Region 36 Figure No 12: Part of the Geological Map of the Chapais area 39 LIST OF FIGURES Figure No 13: Part of the 32 G Metallogenical Map 54 Figure No 14: Location of the High Grade Gold Showing discovered in 2009 58 Figure No 15: 2011 Stripping with mineralized structures and channel samples with assay results 61 Figure No 16: 2011 Stripping with geology and location of 2011 drill holes 69 Figure No 17: 2011 Diamond drill holes, location map 71 Figure No 18: Adjacent Properties 78 PICTURES Picture No 1: End of August 2011, Stripping the Discovery Cliff 62 Picture No 2: The rusty Zone corresponds to the Discovery Laura Lake North Showing 62 Picture No 3: South Zone represented by highly deformed pillow lavas 64 Picture No 4: N-S Channel sampling of the South Zone 64 Picture No 5: Massive Chalcopyrite, malachite and azurite 66 Picture No 6: Massive Chalcopyrite in a 10 cm thick vein 66 SUMMARY On May 1, 2012, PRO MINERALS INC. , from Vancouver, B.C., mandated C.D.G.C. Inc. to review all the previous work executed on the Laura Lake property and to prepare a technical report covering the exploration programs carried out on the property since the beginning of 2007. The prop- erty is located 5 km south-east of Chapais, an previous mining town and at about 30 km WSW of the Chibougamau Mining Camp. Distance from the project to Quebec City is 480 km and from Montreal is 747 km. The property is crossed by Highway 113 linking Senneterre to Cache Lake were this Highway connect to the Highway No 167, connecting Chibougamau to St-Felicien and the Lac St-Jean area, as well as Quebec City and Montreal. The property is also crossed by a branch of the CNR linking Chapais to Chibougamau and Lac St-Jean. The Laura Lake property consists of 39 claims which cover an area of about 550.65 ha. The exploration permits are situated in Levy Township, Quebec. On October 20, 2009, Pro Minerals announced the acquisition of 100% interest in the Apella’s Touch- down property (Laura Lake Project). The option agreement has been renegotiated on March 15, 2010. Pro Minerals can acquire a 100% interest by paying the optionor a total of 2,000,000 common shares of the company. The amended Agreement requires no work commitment by the Company. The Optionor will receive a 2.0% Net Smelter Return (“NSR”), of which the Company may purchase one-half of the NSR for the sum of $ 500,000. Apella Resources Inc. also retains a first right of refusal on the balance of the NSR. Exploration work started in the 50’s following the discovery and the beginning of the exploitation in Chapais. Prospecting was essentially oriented to the discovery of base metals. Despite the proximity of the mining infrastructures in Chapais, work were sporadic and very limited. Between 1972 and 1987, Minnova, a Falconbridge’s subsidiary, gradually acquired the present property by six different staking campaigns. In 1984, compilation work demonstrated the potential in Cu-Au mineralizations similar to the Cooke Mine located at less than 5 km west from the property. Positive results of this compilation started an aggressive exploration program which covered the Laura Lake and Indian Lake properties and partially on the Chibougamau- Copper and Mont Springer claims. In 1985, line cutting at a 300 ft spacing, geophysical surveys (magnetometer and VLF surveys) as well as a mapping survey were carried out on the Laura Lake property. These surveys lead to the discovery in October 1985, of gold bearing structures located close to Highway 113. Subsequently, stripping and channel sampling were executed around the mineralized zones. Detailed geophysical surveys compris- ing magnetometer, VLF, I.P. and self-potential surveys were carried out. These surveys were followed between 1985 and 1986 by three diamond drilling programs totalling 11 332 metres. In September 1987, Les Mines Messeguay Inc. and Oasis Resources Inc. signed an agreement with Minnova Inc. for the development of the Laura Lake Gold Deposit. These two companies commit themselves to invest an amount of $ 3 279 000.00 before September 1989. This investment permitted to acquire an interest of 49% in the property. Minnova was the operator of the joint-venture. SUMMARY (cont.) This agreement was signed to permit the financing of the underground exploration work. Underground exploration work consisted of a 548 long decline and three drifts totalling 243.84 m open in three mineralized structures as well as a ventilation raise. In addition to the underground work, an aggressive exploration program was started from surface. This program started on November 1987 by a drilling program consisting of four drill holes totalling 1 639.21 m. This program was planned for testing the west extension of the 113 North Mineralized Structure. At the beginning of 1988, a new surface drilling program was planned and started This program was oriented to test the numerous geophysical anomalies. Some of these anomalies were interpreted to have some similitudes with the # 113 South structure. It was also executed in order to obtain a better geo- logical comprehension of the property. The drilling program comprised 13 diamond drill holes which totalled 417.97 m. The program was completed in May 1988. The property stayed dormant for almost twenty years, until NovaWest Resources (Apella Resources Inc.) optioned three claims from Mr. H. Salt and staked 36 claims surrounding the three optioned claims and covering the favourable horizons. In 2007, Apella Resources Inc. initiated a diamond drilling program. Six (6) diamond drill holes were bored for a total length of 1 205 m, using the NQ core size. This drilling program was planed to test several deep MEGATEM conductive anomalies reported in the DP-2006-03 document edited by the Quebec Department of Natural resources and Wildlife, as well as a combination of geological, pros- pecting and other geophysical indications. Hole LL-07-01 was bored vertically to test an inferred exhalative conductor interpreted at the con- tact between a felsic-mafic contact dipping at 20˚NNW in association with a MEGATEM anomaly (10580D) of 12 channels and with the centre at -80 m vertical depth. The best assay result has been obtained from 94.40 m to 95.15 m. The gold assay returned 9.52 g/T Au over 0.75 m. Hole LL-07-02 was bored at about 150 m NE of hole LL-07-01, close to the 113 South structure and drifts. This hole was bored vertically and its length was 150 m. Several narrow mineralized zones with anomalous gold values have been intersected. The highest intersections were obtained as follows: From 17.25 to 17.75 m: 1.28 g/T Au over 0.50 m; From 18.25 to 18.75 m: 2.91 g/T Au over 0.50 m; From 25.15 to 25.75 m: 1.49 g/T Au over 0.60 m; From 135.00 to 135.25 m: 2.36 g/T Au over 0.25 m. Mineralizations found close to the surface may be related to the 113 South mineralized zone which was observed underground with a subvertical dip. However, the mineralization found at the bottom of the hole seems to represent a new mineralized zone. SUMMARY (cont.) Hole LL-07-03 was collared at the same location than Hole LL-07-02. This 150 m long drill hole was bored at 270˚ with a dip of -51˚. It was planned to test at depth the Minnova’s decline and a combina- tion of geological, prospecting and geophysical indications.