GM 55757 PROPOSED 1986 EXPLORATION PROGRAM, LAC DUFAULT PROPERTY SEADRIFT INTERNATIONAL EXPLORATION LTD.

SEADRIFT INTERNATIONAL EXPLORATION LTD.

PROPOSED 1986 EXPLORATION PROGRAM

MRN - GÉOINFORMATION 1998 GM 55757

Lac Dufault (Nuinsco) Property Option

Noranda,

Toronto, L. W. Curtis March, 1986 CONTENTS

Summary 1

1. Introduction 2

2. Property & Location 2

3. Summary of Exploration History 3

4. General Geology 4

4.1 Local Geology 4

5. Economic Potential of the Lac Dufault Property 5

5.1 Description of Target Areas 6

6. Recent Discoveries: The Economics of Finding Ore Within the Noranda Camp and 8 the Seadrift Option

7. Proposed Exploration Program (Budget) 9

References 11

Certificate 14

FIGURES

Figure 1 Location Map of Noranda District.

Figure 2 Seadrift Properties in the Rouyn-Noranda Area.

Figure 3 Geology of Seadrift Option, Central Noranda Area. Modified after Gibson, 1982.

Figure 4 Stratigraphy & Mineralization in the Noranda Camp.

Figure 5 East-West Vertical Section, Amulet-Millenbach- Lac Dufault Property. Modified after Gibson, 1982.

Figure 6 Mineral Deposits Map (Showing Gross Ore Value, 1982 $ Millions), Rouyn-Noranda Area, Quebec.

APPENDICES

Appendix 1: List of Claims & Mining Licences covering the Lac Dufault Property. SEADRIFT INTERNATIONAL EXPLORATION LTD. 550 - 1 100 Melville Street, Vancouver, B.C. V6E 4A6 . Telephone: (604) 687.2905 - Telex: 04-50867

PROPOSED 1986 EXPLORATION PROGRAMME ON THE NUINSCO LAC DUFAULT PROPERTY Noranda, Quebec

SUMMARY

The Seadrift International Exploration Ltd., (Nuinsco Lac Dufault) property lies in the heart of one of the most productive base and precious metal camps of the Abitibi belt. Over a period of about 65 years, this camp has produced in excess of $10,000 million in revenue from at least a dozen major massive sulphide deposits that rim the optioned property.

More recently, deep drilling by Falconbridge Copper has resulted in the discovery of the Ansil base metal deposit (with significant gold values) on which shaft sinking is in progress 5 miles northwest of the Seadrift/Nuinsco property boundary. The Noranda/Soquem/Cogesco joint venture has recently announced both massive sulphide and gold discoveries on their 'Ribago' property, less than 2 miles from the boundary of the West Block of the Seadrift option.

The main factor inhibiting discoveries on the Lac Dufault claim group has been Lac Dufault, which has meant virtually all prospecting has had to be carried out with a diamond drill.

With the wealth of data accumulated from existing discoveries, geological knowledge has increased to the point that prospective targets on the property can be delineated with greater confidence. In particular, three targets for base and precious metal mineralization are believed to warrant testing and will be the subject of the current programme. Targets are as follows:

1. The Sergius Bay Alteration Pipe, although previously tested by a deep hole in 1982, still merits additional drilling in view of the encouraging stratigraphy intersected in DDH 218 in 1982.

2. The Delbridge Horizon, both south and north of the Here Creek Fault. Previous drilling on this tuffaceous interflow chemical sediment contact intersected 10 feet of 2.38% Zn in DDH 192. This horizon is weakly mineralized over a strike length of four miles, and may well be the surface manifestation of a deeper massive ,sulphide system. Deep drilling is proposed to test this system below 1,000 feet, south of the Here Creek Fault. The possibility of an offset on the Here Creek Fault to the north will also be tested.

3. The small claim group (East Block) stategically located to the south of the West MacDonald Mine, also known as Mine Gallen will be the subject of a drilling campaign to test for deeper extensions of the adjacent mine statigraphy.

A preliminary budget of $500,000 will be dedicated to Phase I of the exploration programme, and pending positive results, an additional $500,000 will be allocated to test priority targets.

,euntid & v4444clatex -~- 1.Introduction:

At the request of Mr. James M. Brady, President of Seadrift International Exploration Ltd., we were requested to review the exploration potential of its Lac Dufault option in Noranda, Quebec. The purpose of the report is to recommend drill targets in light of more recent discoveries in the camp, and in particular to focus attention on deeper targets that have not been tested in previous work on the property.

LAKE ERIE 0 400 km

FIG. 1. Location map of the Noranda mining district.

2. Property Status and Location:

The centre of the main claim group is located approximately 5 miles north of the towns of Rouyn and Noranda, Quebec (Figure 1.) and consists of 1 mining concession and 88 contiguous unpatented mining claims plus two separate mining concessions totalling 1685.9 ha. or approximately 4,164 acres, 70% of which underlie Lac Dufault (Fig. 2.). Nuinsco Resources Limited ("Nuinsco") owns 100% of the mining rights on the Mining Properties detailed in Appendix I (Hume, 1980). Title to the claims has not been ascertained by the writer in preparing this report.

evrtc.'¢ & r¢aaeciateo. I.ra. —2— / ANSIL (vAUZE ) SEADRIFT INTERNATIONAL FALCONBRIDGE FALCONBRft;GE COPPER/ LIMITEL,. EXPLORATION LTD, NEW PROPERTY LOCATION MAP 11(NORBEC LOkIE ROUYN - NORANDA AREA, QUEBEC

NORANDA 0 SCALE MILE SOQUEM WILCO

WAITE

CHARBOT WEST MACDONALD WAITE DUFAULT MINES LTD

(FALCONBRIDGE COPPER OPTION 11,

NORANDA OPTION

LAC DUFAULT AIGUEBELLE

i ‘11; Seadrift International LEGEND (CORSET) Option • t Ore Bodies MILLENBAC y Seadrift International FALCONBRIDGE 110 COPPER LIMITE D. Optioned from Nuinsco • Targets for 1986 Programme BEAUCHASTEL

DUPRAT TO/P. COPPER LTD. OuFRESNOY TWP BEAUCHASTEL TWP. ROUYN TWP (NORANDA OPTION)

SOQUEM NC RIBAGO• DISCOVERY HERE FAULT O NORANDA/COGESCO SOQUEM MINES LIMITED

IDELBRIDGE !1 DELDONA) MINES LIMITED N OR AN DA/ SOQUE M

MINES LIMITED. WILCO CURTIS 8 ASSOC. 1986 (NORANDA) Figure 2 Pursuant to an agreement effective February 6, 1986, between Seadrift and Nuinsco, Seadrift has the right to earn a 60% working interest in the property by payment to Nuinsco of $25,000 and exploration expenditures on the property of $1,000,000 by December 31, 1989. Expenditures and payments are to be incurred at a rate of not less than $205,000 per annum.

Upon Seadrift earning a 60% interest in the Lac Dufault property, all further expenditures are to be made on a joint venture basis. A pro-rata dilution clause for non-payment is included in the agreement which results in conversion of the direct interest to a 20% net profits interest in the event that the working interest of either party is reduced below 20%.

3. Summary of Exploration History

A review of exploration activity on the property was summarized by Curtis (1982). The main property was worked intermittently over the period 1938- 1982, as summarized below:

1945-1948: Grid drilling of many shallow holes to determine bedrock geology; drilling of favourable targets;

1953-1956 Ground magnetic and electric surveys; seven diamond drill holes;

1961-1963: Twelve deeper holes (1000-2000 feet) to test the Delbridge horizon, including some downhole electro- magnetic surveys;

1968-1969 Seven drill holes;

1971-1972 Seventeen holes to test the Delbridge horizon;

1981-1982 Two deep drill holes to test the Sergius Bay alteration zone.

The majority of this work was concentrated on the chemical sediment horizon hosting disseminated copper and zinc sulphides in the south central portion of the property (Target 2, in this report). The more recent exploration campaign was directed at locating a source for the alteration pipe at Sergius Bay (Target 1, in this report).

Excellent visual summaries of the work performed on the Lac Dufault and neighbouring properties are provided by QDM Compilation Maps 32D/6-0104, 0204, and 32D/7-0101 and 0201.

The East Block (Figure 2) consists of 3 mining concessions which have yet to be drilled to depth (Designated Target 3, in this report). The north boundary of this block is situated less than half a mile south of the West MacDonald orebody.

The West Block (Figure 2) consists of a single mining concession that has been the subject of surficial exploration work.

eepilia & Alaaoeiatea 9ge. -3-

\ ANSIL. --~ / /11/VAUZE ~ ~ 4 ‘ \ ~ ` ^ NORBEC % 1 i 2 // I / \ 4 ` ^ • ,..1%.\.../~ \` ;~ GEOLOGY OF 1 / ~\ ^r~ ^^~ 2 ~ • ^^^^ ----- ` ~ SEADRIFT OPTION ^^^^^ M1 ~, \ ,~ ~ / I Noranda Area n^^ 2 ^^ II/ MILES 1 .___-.~ ~`~V AIT~ 2 \\ ~r- \ /~ N. 2 M1M1 .-~—' 1 ~ ^ r — \ KILOMETRES \ 4 ^~ n^ _/ MINE GALLEN ~ ^^<" /------(West McDonald) N\ ~ ^ / \,/k,1\ ^~ ^~ `~~ Z ` ` i \ Lac --, . ' ' MAIN BLOCK \\\ 11 \~ ~ l` ~ ~— ~ z 1 1 • 1 TARGET 3 1 ^ —__ r-~~ ,‘,-,--\ ~~ — • TARGET ~P~~ ~ 1~11'1\2 1 ,► •, •.. ~_ , \ ~: ...i 1rfi ~ A EAST BLOCK ~1 t AMULET ~ ~~~,~ ~~taU1>~~,^ ~ ~ 2 • " 3 1 117 ,r GQ~ G ^^ 11 1111,,~M I LLENBACH TARGET ~/ ~ ~,,~,~ •• 2 , ~.. ~ ~r CORBET 11M!~^ / ^ I ,~^_ _ ~^ RIBAGO BASEME1; 1 _ 6% /GOLD DISCOVERY ~/ 1985-86 / M1 / 3 LEGEND Approx. Location / ~ / WEST BLOCK -- r Diontic Intrusion 2 / / ~r" rsnj~^~~. / ^ M1 N. (S". f Felsac Volconics 1 Y`'t ~~ M1 Mafic Volcanics 1 ~~ ~M1~/ ^,.t`., .~P~‘~ \ , \ _^'~ 2 ,.^^~; H/ION i~ ^ 4 `w'` nn~^M^nl,~ . ,.rs` 11 h ^ 3 ^ DELBRIDGE • Granitic Intrusion `• ~ • i 1111111 1~, e~~^~ r ,~ -_ _ M1 i ~_` _ Seadrift International ^ ►l _ _ _ .. . _ . . . ,~ / Option ^^~ \ . / • '‘'‘‘ Cu,Zn (Au) Deposits \ tpRNE^ ^^~ ~L • • r ~nl~^~ . • 3 2 ~1~ 2 \\\ 3 `~\\ ; ~\2 3 W2 CURTIS 3 ASSOCIATES INC. 1986 RIBAGO 2 \\, 3 ® GOLD DISCOVERY ..^^^t`~~ 3 ~HORNE~. FIGURE 3 4. GENERAL GEOLOGY

The Noranda mining camp is situated within the upper portion of the Blake River Group consisting of Archean mafic to felsic volcanics, which in the area in question attain a thickness of some 20,000 feet. The Noranda massive sulphide deposits occur within a volcanic succession of five alternating rhyolite and andesite-basalt cycles (de Rosen-Spence, 1976) sandwiched between the conformable Flavrian Lake tonalite complex to the west and the crosscutting Lac Dufault granodiorite to the east (Figure 3). The succession is crosscut by numerous dykes and sills of diorite.

The geology is disrupted by a number of significant northeast to east- northeast trending faults which are intersected by a northwest-trending set defining a rectilinear grid. Geologists working in the camp have historically recognized the importance of these faults and lineaments in controlling ore deposition and certain of them are considered to be synvolcanic, i.e. their geometry is related to the development of the submarine calderas. Certain rock types such as the quartz feldspar porphyries are also known to be spatially related to these lineaments, and some may be feeder dykes for the associated extrusives.

Massive sulphide ore bodies in the Noranda Camp are often located at boundaries between contrasting rock types, typically rhyolite-andesite interfaces. Cherty and sulphide-rich chemical and tuffaceous sediments commonly mark these contacts. As a result, explorationists in the Noranda Camp have relied heavily upon the detection of these "exhalative" horizons and associated alteration, either visually e.g. presence of chemical sediments, indications of chlorite + sericite alteration (and the equivalent contact metamorphic assemblage known as dalmatianite) or chemically e.g. sodium depletion, silicification, addition of Mg etc.

4.1 LOCAL GEOLOGY

The local geology is well described by Gilmour (1971) and is best visually summarized in the detailed map by Shegelski (1976). The essential geological facts relating to the property are as follows:-

-The stratigraphy when idealized is an east to southeast dipping succession of rocks comprising the Amulet Andesite, Insco Rhyolite, Here Creek Formation (mixed volcanics), South Bay Formation (pillowed volcanics), Don Rhyolite, Mespi Andesite and South Dufault horizon (Shegelski, 1976). Local changes in this younging eastward stratigraphy occur as a result of faulting and wedging out of various units.

- Major northeast-striking faults cutting the property are the Beauchastel Area and the Here Creek faults. The latter offsets the sulphide-tuffite bed in the centre of the property which is believed to be the equivalent of the "Delbridge Mine Horizon" (Figure 3).

- The property is bound to the north by the cross-cutting Lac Dufault granodiorite and the volcanics are intruded by considerable widths of diorite on the western boundary, and to a greater degree on the eastern portion of the property.

ecvrti4 & o444octateQ -4-

CURTIS a ASSOCIATES INC., 1986 NORANDA CAMP SEADRIFT INTERNATIONAL/NUINSCO PROPERTY MINE ROCK/FORMATION

MOBRUN

MINE GALLEN OCK (WEST McDONALD) TARGET 3 T BL

Don Rhyolite EAS

South Bay Andesite Exposed DELBRIDGE ~~~—= Delbridge Mine. in Horizon Heré Ck. Outcrop Rhyolite TARGET 2

UPPER A K Insco Rhyolite LOC ~ B TARGET 1 •Sergius Bay IN Dalmatianite MA Amulet Andesite Amulet Silicified QFP AMULET Andesite NORBEC Andesite Intersected VAUZE LOWER A in DDH 218 Millenbach QFP MILLENBACH a0 Millenbach LAC DUFAULT E. WAITE ///%I///////. Andesite O. WAITE #1 Waite Rhyolite Lower Amulet

Rhyolite Beecham Br.

Rusty Ridge Strotigraphy known Andesite on Nuinsco/Lac Dufault Property ANSIL Ore body Northwest . •. Alteration pipe Rhyolite --= Strotigrophy accessible to 5000 CORBET Lewis .t—► Strotigraphic Marker Tuff Correlated Fiavrian Not to Scale Andesite

STRATIGRAPHY & MINERALIZATION

IN THE NORANDA CAMP FIGURE 4 -Minor flexuring with east-west trending fold axes are reported by Gill and Malouf (1948) but this folding does not significanty affect the stratigraphy described.

- The "favourable" Amulet Rhyolite-Andesite contact dips beneath the property at an unknown depth but is presumed to be approximately 4000-5000' below the western part of the property.

- Significant but non-economic amounts of Cu and Zn sulphide occur in the south central portion of the property (the "Delbridge Mine Horizon").

- A large area of chlorite-mica alteration enveloping a 500-600'x300' diameter core of cordierite-anthophyllite (dalmatianite) alteration occurs in the northwest portion of the property underlying Sergius Bay.

- Sporadic copper and zinc values and anomalous gold values have been obtained within chloritic rhyolites and quartz feldspar porphyries, immediately to the north of the East Block. These characteristics strongly suggest the presence of a mineralizing system adjacent to or below these mining concessions.

The relationship between stratigraphy and mineralization in the Noranda camp is compared to that on the Seadrift option in Figure 4. Clearly the Lac Dufault property is a prime candidate to host a deposit of the Noranda type.

5. Economic Potential of the Lac Dufault Property

Figures 3 and 4 leave no doubt that the Lac Dufault property is stategically situated with regard to known ore deposits. There is also little doubt that the lake itself has prohibited a comprehensive evaluation of the property geology, resulting in a large proportion of grid drilling. Although favourable stratigraphy, mineralization and alteration have been intercepted in these drilling campaigns, the Lac Dufault orebody has remained elusive. The author is optimistic that such an orebody exists for the following reasons:

1) Favourable structures such as those which are spatially associated with the Amulet-Millenbach orebodies can be projected into the property (Figure 5.);

2) Alteration of the type associated with mineralizing systems has been intersected at Sergius Bay, and would represent an alteration pipe above a stacked ore zone as seen in the Amulet orebodies (Figure 5);

3) A favourable contact zone referred to as the "Delbridge Horizon" traverses the property for in excess of 8,000 feet. This horizon is weakly mineralized, containing values of Zn. up to 2.3% over 10 feet within massive siliceous tuff, and is believed to be a chemical sedimentary marker which could be spatially associated with a massive sulphide orebody (See Figure 4). Many holes that penetrated this marker horizon contain anomalous quantities of chalcopyrite and sphalerite and zones of massive pyrite (See Archibald, 1976, 1979);

&lad cf riadoc.c'ated 9.ce. -5-

EAST-WEST SECTION AMULET, MILLENBACH, LAC DUFAULT

West East SEADRIFT/ FALCONBRIDGE NUINSCO A -110- AMULET ORE BODIES B Planned DDH DDH DDH 219 1986 218

LOWER A Z' I C ORE ZONE Lake Dufault LLL No. 1 3

DIORITE Millenbach 2 INSCO RHYOLITE Ore Bodies v v QFP RHYOLITE // 5 AMULET ANDESITE 3

MILLENBACH ANDESITE

AMULET RHYOLITE

TUFFACEOUS SEDIMENTS - some Chert, pyrite, cpy

MASSIVE SULPHIDE

DALMATIANITE/STRINGER SULPHIDE Trace of Beauchastel Fault (?) PYRITE CHERT/TUFF

Compiled by Curtis a Assoc ( 1982) from Spence a Spence( 1975) with DDH 218 Data from H Gibson (1982) and DDH 219 Data from D Hunter (1983) NOTES I Millenbach Mine protected WOO' North •• 2 Sergius Bay alteration zone (Target I) from post drilling

-- 3 Limit of past drilling, excluding DDH 218, 219 HW u 900 i600 t 1~ FEET CURIIS 8 ASSOC 1986 I FIGURE 5

4) Drilling by MacDonald Mines Ltd., less than 300 feet from the north boundary of the East Block intersected massive sulphides over 18.5 feet containing 8.5 feet of 2.7% Zn, 0.02% Cu, 0.502 oz/t Ag and 0.03 oz/t Au. The host rocks are highly altered, and deep drilling to 3,422 feet in another hole indicates that geochemically anomalous Au, Ag, Cu and Zn values extend over a total assayed interval of 675 feet;

5) Given the favourable geology on the property, the density and distribution of peripheral orebodies suggest that it would be anomalous if no economic orebodies exist on the Seadrift option.

5.1 Description of Target Areas

TARGET 1 - SERGIUS BAY ALTERATION ZONE

Previous work on this target is summarized in Curtis (1982) and Archibald (1979). Two deep drill holes were completed in 1982:

DDH 218: Intersected the Insco Rhyolite, Amulet Andesite and was completed in a rhyolite tentatively assigned as Amulet Rhyolite. Quartz feldspar porphyries and tuffaceous sediments containing cherts and traces of sulphide were intersected twice between 3,125 and 3,934 feet. These intercepts are similar to those encountered up-dip in the neighbouring Millenbach deposit. No significant metal values were encoutered over the 5,164 feet of core.

DDH 219: This hole was collared to the west and north of DDH 218 and intersected Insco Rhyolite with traces of pyrite and chalcopyrite. At 2,377 feet diorite was encountered and continued to the end of the hole at 3,530 feet. Weak Cu values were obtained over several 20 foot sections.

Despite these unimpressive results, the alteration zone is still regarded as a potential target area. The main pipe is now believed to be vertical and not inclined, and another deep test in the region of DDH's 218 and 219 is proposed to probe the chlorite pipe in the vicinity of the chemical sediments intersected in DDH 218.

TARGET 2 - DELBRIDGE HORIZON

Previous work on this target is summarized in Curtis (1982), Archibald (1976) and Gilmour (1971). This sulphide bearing tuffaceous unit occurs at the contacc between a mafic and felsic volcanic which forms an arcuate horizon extending up the peninsula in the south central portion of the Seadrift option.

1955-1963 Drilling: Varying concentrations of sulphide mineralization were encountered in the majority of holes drilled. Best intercepts

eustrd ritaaoecâtea 9ue. -6- included DDH 182 carrying 0.03-0.05% Cu over 15 feet, and DDH 192 carrying 2.4% Zn over 10 feet. 1971-1972 Drilling: Again varying sulphide concentrations were intersected carrying geochemically anomalous Cu and Zn values in the 100-1,000 ppm range over widths of 1-55 feet.

Archibald (1976) concluded that the best stratigraphy in this portion of the claim group was highly favourable and open down-dip (below a vertical depth of 500-750 feet), particularly in the DDH 192 and DDH's 205-207 area. Also the extension of this target north of the Here Creek Fault has neither been located nor tested. Target 2 is a prime sulphide and possible ore- bearing environ which requires detailed testing at vertical depths of 500- 2,500 feet. TARGET 3 - EAST BLOCK

The only report dealing with previous exploration on the three mining concessions comprising the East Block is that of McMurchy (1967), when the property was held by Croydon Rouyn Mines Ltd. Six holes totalling 2,796 feet were drilled in the south central portion of the block in the vicinity of old pits and trenches carrying pyrite. These holes intersected an abundance of diorite, gabbro and granite containing scattered pyrite and minor chalcopyrite. An exception was DDH 4, however, which contained pyrite tuffs and finished in pyritic and chloritic rhyolite at 564 feet; this hole is the first positive sign that a hydrothermal alteration system may underlie the gabbro-diorite on the East Block.

To further evaluate this possibility, we have collected data on drilling carried out by MacDonald Mines near the north boundary of the East Block. Data summarized below is extremely encouraging, and further support our contention that the diorite may be a sill screening hydrothermally altered volcanics which may be related to the West MacDonald ore system or an undiscovered system below the East Block:

DDH E40: Collared approximately 500 feet north of the north boundary, intersected porphyry containing weak pyrite mineralization for 1244 feet. From 1244-1262.5 feet massive sulphide intercepted approximately 350 feet north of the boundary and assayed as follows:

1254'-1259'- 0.02 oz/t Au., 0.32 oz/t Ag., 3.88% Zn., 0.02% Cu. 1259'-1262.5'-0.03 oz/t Au., 0.74 oz/t Ag., 0.98% Zn., 0.01% Cu.

The hole was completed at 1553.5 feet in feldspar porphyry, about 200 feet from the claim boundary.

DDH M-76-3: Collared approximately 400 feet north of the north boundary, intersected 3,450 feet of feldspar porphyry breccia, feldspar porphyry and rhyolite with disseminated pyrite, chalcopyrite and chloritic spotting (dalmationite). A strong alteration zone with chlorite, sericite and silica was intersected from 2066 to 2750 feet, which assayed over the entire

ecvttla & fladeciated 9,ce. -7- length 0.01-0.03 oz/t Au., 0.01-0.14 oz/t Ag., and 0.01-0.5% Cu. The end of this hole is within 100' of the north boundary of the property.

Other holes in the vicinity indicate that felsic volcanics and porphyries abut the north boundary of the East Block.

These data put the East Block in a new perspective and give credence to recommendations by earlier writers on the property (Chechak., Report to Croydon rouyn Mines, 1965; McMurchy, 1967) that a deeper drill program is warranted to test:

a) The possibility of ore being hosted by volcanics below a diorite 'sill' in the northern portion of the property, coincident with an EM conductor defined in 1956.

b) Additional conductors outlined on the southern portion of the property outlined by 1956 surveys.

It should be noted that although the mining concession is small, it can adequately host a buried orebody as big as any found in the Noranda camp to date, the mean deposit size being 5.2 million tons (Boldy, 1981).

OTHER TARGETS

In view of the deep EM geophysical programme to be carried out over the property in the winter of 1986, further targets must be anticipated and rated accordingly.

6. Recent Discoveries: The Economics of Finding Ore Within the Camp and on the Seadrift Option.

Many new discoveries do not result in mines because of high capital costs involved in creating necessary infrastructure. The Seadrift option is ideally situated to take advantage of existing mining and milling facilities. It is also well recognized that the chances of finding deep ore in a known camp such as Noranda is highly favourable relative to grass- roots prospecting. The success of deep ore discovery at Noranda is well documented (Boldy, 1979, 1981). The Ansil discovery by Falconbridge Copper (2,000,000 tons grading 7% Cu., 0.5% Zn., 0.82 oz/t Ag., and 0.05oz/t Au) at 5,000 feet, currently under development is the deepest of these finds.

The Noranda camp is unusually well endowed in gold, and the recent discovery by the Cogesco/Noranda/Soquem joint venture highlights this aspect (Figure 6). Two discoveries have just been reported on their 'Ribago' property, about 3 miles west and southwest of the Seadrift option. The most northerly of these is a deep base metal deposit with significant precious metal credits, situated on a structure within andesites near the old Ribago shaft. Previous work on the old Beauchastel Copper No. 6 Zone, immediately to the northeast outlined a small Cu-Au deposit. To the south of this discovery, the joint venture is drilling off a gold deposit near the old Marlon gold mine. The discovery hole assayed 0.37 oz/t over 21 feet, and the gold bearing structure has been tested over a strike length of 1150 feet to a depth of 300 feet; the structure is open on strike and down-dip.

eunt& dr Afedoeiated 9.ce. -8- VAUZE $38.60 FALCONBRIDGE NORBEC 471.60 ~

AMULET A' ‘$1,142 18

AMULET 8,C,0,E a BLUFF $107.53

FALCONBR I OGE MILLENBACH $ 326.66 Juprat Twp Dufresnoy Twp. Beau cnasteI Twp Rouyn Twp.

FALCONBRIDGE CORBETT NOR ANDA/ $ 433. 50 QUEMONT SOQUEM $ 2,268.15 Lac DELBRIDGE a Mud COGESCO DELDONA GOLD/BASE METAL $ 78.13 DISCOVERY 1985-86

JOLIET $ 95.31 RIBAGO O GOLD DISCOVERY NORANDA (HORNE MINE) $ 10,078.00

(=D

SEADRIFT INTERNATIONAL EXPLORATION LTD MINERAL DEPOSITS MAP El Seadrift Internotional Rouyn-Noranda Area, Quebec ,pt uned from Nuinsco

0 2 Mine Production with Gross .re Value - $ Millions 1982 MILES

FIGURE 6 These two achievements reaffirm the fact that exploration in this mature base metal-gold camp is continuing to meet with success (See Figure 6). The programme outlined below is designed to re-evaluate the Lac Dufault property for buried polymetallic sulphides carrying Cu, Zn, Ag and Au. In particular, we believe that a deep penetrating surface geophysical programme will help delineate structures and conductors at depth, that have not been penetrated by drilling in previous exploration campaigns. To our knowledge, with the exception of the Sergius Bay Alteration Zone and work immediately adjacent to the Delbridge mine horizon, the remainder of this 6.5 square mile property has not been subjected to adequate exploration probing below about the 500 foot level. Therefore, we consider the depth potential for new discoveries to be excellent.

7. Proposed Exploration Programme

PHASE I

Geophysics

Laying out grid $ 5,000.

Large Loop Transient Electromagnetic Survey at 100 metre line intervals; 20 man days @ $1,000/day 45,000.

Detailed Magnetic Survey at 100 metre line intervals and 12.5 metre spacing; 9,000.

Close spaced magnetic surveys; 1,000.

Diamond Drilling:

Target #1; One 4,000 foot hole @ $35/foot 149,000.

Target #2; Six 1,000 foot holes or four 1,500 foot holes; Total: 6,000 feet @ $25/foot 150,000.

Target #3; Three 1,000 foot holes or two 1,500 foot holes; Total: 3,000 feet @ $25/foot 75,000.

Additional Targets outlined by geophysics: '`

Three 1,000 foot holes @ $25/foot 75,000.

Down-hole Geophysics: Fifteen man days @ $1,000/day 15,000.

Total Drilling & Geophysics-Phase I 450,000.

Overhead, Supervision & Contingencies 25,000.

eccictca & rla,aaciatea 9.cc. —9—

Contingency for cost overruns 25,000.

Total Cost-Phase I $ 500,000.

Note: - These targets may change the order of priority of drilling Targets 1, 2 and 3.

PHASE II

Depending on success of Phase I, a Phase II programme will be initiated to follow up targets as follows:

Ten 1,000 foot holes @ $25/foot 250,000.

Five 1,500 foot holes @ $25/foot 187,500.

Down-hole probing, 15 man days 15,000.

452,500.

Overheads, Supervision, Overruns, etc. 47,500.

Total: Phase II 500,000.

Total of Phase I and Phase II $ 1,000,000.

Respectfully submitted

Laurence W. Curtis Geological Consultant

Toronto, Ontario March 6, 1986

ecuctia & ,444oe.iatea 9.ce. —10— REFERENCES

Archibald, G.F., 1970, Geological Assessment, and Salient Features of the New Insco Property, in New Insco Mines Ltd. Annual Report for 1970, pp.3-7.

Archibald, G.F., 1976, Progress Report on Past & Future Exploration, New Insco Mines Lake Dufault Property. Private Report for New Insco Mines Ltd.

Archibald, G.F., 1979, Nuinsco Resources Limited, Supplementary Report on Deep Diamond Drilling Program, Sergius Bay Alteration Zone, Lac Dufault, Noranda-Rouyn, Quebec. Private report for Nuinsco Resources Limited.

Banfield, A.F., 1945, Insco Mines Limited - winter diamond drilling program, 1945-46. Private report for Insco Mines Ltd.

Banfield, A.F., 1946, Report on operations from April 1st, 1946 to June 30th, 1946. Private report for Insco Mines Ltd.

Beaton, N.S., 1962, Report on New Insco Mines Ltd. Private report for New Insco Mines Ltd., 14 p. 2 plans.

Bergmann, H.J., 1969, Report on the diamond drilling program on the property of New Insco Mines Ltd., Coulee Lead and Zinc Mines Ltd. Private report for Coulee Lead and Zinc Mines Limited. 2 p.

Boldy, J., 1981, Prospecting for Deep Volcanogenic Ore. CIM Bulletin, V.74 (834), pp.55-65.

Boldy, J., 1979, Exploration Discoveries, Noranda District, P.Q., Geophysics and Geochemistry in the Search for Metallic Ores; Ed. P. J. Hood, GSC Economic Geology Report 31, pp 593-604.

Brown, B.B., 1970 (March), Geologist's report, Project 545, Dufresnoy Township. Private report for Larandona Mines Ltd.

Curtis, L.W., 1982, Summary Report on the Geology and Economic Potential of the Nuinsco Resources Lac Dufault Property, Quebec. Qualifying Report to Nuinsco Resources, January 29, 1982.

Curtis, L.W., 1983, Addendum to Summary Report of Curtis (1982), Internal Report to Nuinsco Resources, January 12, 1983.

Darling, A.G., 1966, Diamond Drilling Program, Dufresnoy Township, Quebec, Project 545. Private report for Larandona Mines Ltd.

exectlà & ridaA+ci,iteA Tac. -11- De-Rosen-Spence, A., 1976, Stratigraphy, Development & Petrogenesis of Central Noranda Volcanic Pile, Noranda, Quebec unpub. Phd. thesis, University of Toronto.

Gibson, H.L, 1979, Geology of the Amulet Rhyolite Formation, Turcotte Lake Section, Noranda Area, Quebec. unpub. MSc. Thesis, Carleton University. 154 p.

Gibson, H.L., Watkinson, D.H. & Comba, C.D.A., 1981, Silification, Hydrothermal Alteration in an Archean Geothermal System Within the Amulet Rhyolite Formation, Noranda, Quebec. GAC-MAC Joint Annual Meeting, Calgary p.A21 (Abstract).

Gibson, H.L., 1982, Report on Diamond Drill Core, DDH 218, Lac Dufault Property, Nuinsco Resources. Private report for Nuinsco Resources Limited,

Gill, G.E. and Malouf, S.E., 1948, Interim Report on the Insco Mines Property, Dufresnoy Township, Private report for Insco Mines Ltd., 21 pages; 3 maps.

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Gilmour, P., 1971, Report on the Geology & Economic potential of New Insco Mines Ltd. Private report for New Insco Mines Ltd., Toronto, 19 p.

Gilmour, P., 1981, Notes on the Status (in the 2nd Quarter, 1981) of the Nuinsco Resources Limited Property in the Rouyn-Noranda District of Quebec. Private report for Nuinsco Resources Limited, Toronto.

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cwrti4 & )4n4-Ae%at.eii. 9ge. - 12- McMurchy, R.C., 1967, Report on Block 66, Dufresnoy Township Quebec. Private report for Croydon Rouyn Mines Ltd.

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CERTIFICATE

I, Laurence Wilson Curtis, of the City of Toronto, in the Province of Ontario, Canada hereby certify:

1. That I am a consulting geologist, and have been engaged in my geological profession for approximately seventeen years.

2. That I am a graduate of the Australian National University (1969) with a B.Sc.(Hons.) in geology and a Ph.D. from the University of Toronto (1975) in geology.

3. That I am a Fellow of the Geological Association of Canada, member of the Society of Economic Geologists, a Voting Member of the Society of Exploration Geochemists, and Member of the Canadian Institute of Mining & .

4. That my knowledge of the property described was acquired during visits to the property in 1975 and 1982 and from a study of the publications and reports cited above.

5. That I have no interest either direct or indirect, nor do I expect to receive any, in the properties or securities of Seadrift International Exploration Ltd.

6. I hereby consent to the use of this report to satisfy the requirements of any Securities Commission or Stock Exchange in Canada.

Dated at Toronto, Ontario this 6th day of March, 1986.

Laurence Wilson Curtis

-14- Sulte 1270, 20 7meoate Select, 7aze.cta, O.ctenla N5e 267 (416) 362-5326 7elex 06-23565 APPENDIX I: List of Claims & Mining Licenses Covering the Lac Dufault Property

Mining concession Township Block Hectares Rouyn 195 102 54.80 Dufresnoy 212 66 66.00 Dufresnoy 233 173, 174, 175 46.00 3 166.80 Dufresnoy Township Development Total Licence Claim claims Hectares 388722 1 - 4 4 64.00 75754 1 1 16.00 8533-A 3 - 5 3 32.35 8534-A 1 - 2 2 13.95 332-C R37979 1 16.00 526-C R38358-R38361 4 80.00 537-C R38362 & R38524 2 36.00 527-C R38435-R38439 5 84.80 531-C R38466-R38468, R38523 4 77.60 528-C R38601-R38605 5 78.80 533-C R38664-R38666 3 52.30 534-C R38611-R38614 4 78.40 538-C R38718-R38615, R38867 3 57.60 529-C R38626-R38629 4 76.00 535-C R38616 & R38621,2, R38624,5 5 89.60 530-C R38667-R38671 5 83.60 536-C R38673-R38676 4 88.40 36459 1 1 6.00 532-C R42923-R42925, R38672 ' 4 84.80 28150 1 1 16.00 902-C R36539-R36542 4 74.40 903-C R36543 1 17.60 13197 2 1 13.20 320678 1 1 4.12 371615 1 - 2 2 32.00 354068 1 - 2 2 53.60 311514 1 - 5 5 80.00 C-6502 1 - 4 4 68.80 C-6503 1 - 3 3 43.20 88 1,519.12