GM 69272 EVALUATION REPORT OF THE PROPERTY Evaluation report of the Barraute property: Range IV, Lots 3-9 Barraute township Abitibi, Québec (Consolidated Developments Ltd.)

by HAROLD DESBIENS, Geologist, M.Sc. March 1990

Ressources naturelles et Faune, Québec

1 3 FEY, 20f 5

Service de la Géonformation

GM s9272 . 1

Property : Barraute Township : Barraute Range : IV Lots : 3-9-- District : Barraute Province : - Lat. : N48°28' Long.: E 77°43' S.R.N.C. : 32C/5 No. Claims : 7 Area : 200 hectares- Ownership : 100 % Consolidated Developments Ltd Prospect : Gold Acces : Via highway #386 and a good gravel road; about 9 km north east of Barraute

INTRODUCTION:

- On march 7, 1990, Eric Bennett (for Consolidated Developments Ltd.) contacted John F. Cook (LAC Minerals Ltd.) to initiate talks about a possible joint ventureship between both companies. In the follow up, Jack Zielinski (Consolidated Developments Ltd.) sent 2 geophysical reports on the Barraute property to Harold Desbiens (LAC Minerals Ltd.).

PREVIOUS WORK:

The first recorded work on the property was done by Jarex Mines, in 1972. An electromagnetic survey was carried out in the eastern part of the property. One year later, the completion of this survey was realised. In 1978, J.L. Perusse for Barraute Gold Mining Reg'd mapped the area. In' 1985, Barraute Gold Mining Development Ltd. carried out a V.L.F. survey over the eastern part of the property and produced a geoscientific compilation. Extensive exploration works (including a ramp) were also carried out over the neighbour property (Venus-Barexor prospect) which hosts 780 000 tons @ 3.7 g/T Au. 2

DISTRICT GEOLOGY:

The Barraute mining district lies 25 km north of Val d'Or, Quebec onthe .archean Abitibi greenstone belt in._the Superior Province of the Canadian Shield. It is located on the northern limb of the regional La Motte anticline which is intruded in its core by numerous post-kinematic granitoids (i.e. Pascalis, Lacorne, and La Motte intrusives). On the south limb of the anticline, the well known Val-d'Or/Louvicourt and Malartic districts have produced together over tons of gold)— Dimroth and al (1982) divided the volcanic sequence of the north limb in three groups: Malartic, Harricana and Amos (c.f. fig.l). The Malartic group is composed of the _ Dubuisson—Fm_ (mafic-ultramafic volcanics) and the Heva Fm (mafic-felsic volcanics and pyro-' clastics). The Harricana group is constituted'of the ' Fm (basalt), the Figurey inf. Fm (basalt and felsic pyroclastics) and the Figury sup. Fm (brecciated andesite). The Amos group is, formed by the Amos inf. Fm (basalt) and the Amos sup. Fm (mafic-' felsic volcanics). Numerous vein type lode gold mineralizations are known in the Barraute district. Series of narrow (less than two feet wide) auriferous veins are generally associated with sheared/shatter zones, and are particulary well developped in the folded part of these structures. The dip of the vein is frequently opposite to the shearing plane, though the strike of the veins is about parallel to the shearing plane.

Ferruginous carbonate is a major gangue minerals within the quartz veins and is evidenced in the country rocks by a pronounced replacement of the original minerals near the veins. Pyrite and tourmaline are common vein minerals, and chalcopyrite is also noted at many places. Visiblegold is nt and gold mineralization seems to be favourably concentrated nearthe folds in the NW-SE (and E-W) shear zone.

3

Fig.l Stratigraphic map of Val d'Or - Amos area (NE of region). From Imreh (1982). LMA = La Motte anticline; AS = Amos syncline

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The district is better known for its volcanogenic zinc-silver mineralizations associated with a proximal felsic complex. The major mineralizations of the Barraute district are summarize in Table 1 and Figure.2.

PROPERTY GEOLOGY:

Few outcrops occur within the.property, but underground exploration at the nearby Barexor ramp suggest that it is mainly composed of sequences of basic to acid lavas with pyroclastic equivalents. The rock units strike northwest-southeast and dip northwards from 050° to 065°N. Felsic porphyry dykes and quartz veins intrude the volcanic-pyroclastic rock assemblage.

Three shear zones: the Footwall shear, Central shear and the Hanging wall shear trend parallel to slightly subparallel to the volcanic stratigraphy. The Footwall shear has a thickness of approximately 10 meters and appears to be restricted to a felsic lapilli to crystal tuff unit. The Central shear zone has an average thickness of 30 meters and consists of weakly to strongly foliated felsic lapilli and crystal tuff with discontinuous "p' lenses of basalt to andesite and rhyolite. The Hangingwall shear- appears to be up to 60 meters thick and consist of strongly foliated basalt, rhyolite and felsic pyroclastic rock.

The gold bearing veins are usually located near the crest of folds in the shear ~z_ ones".- One of these folds (the Fold B-N) is present in the northeast - part of the property. The gold mineralization underlying the area occurs within northeast dipping flat tension quartz veins. These veins range from 1 cm to 1.5 meters in thickness and are irregular in orientation and distribution. They usually contain 3 to 5 % coarse grained =I 11111111 11E1 IIIII Mil SNIP 11111111 MO 111111 NMI NMI MN NMI Mill

TABLEAU 1: PRINCIPAL MINERALIZATIONS OF THE BARRAUTE DISTRICT.

; PROSPECT ; LITHOLOGY ; STRATIGRAPHY RESERVE OR PRODUCTION. , ~ ., I . . I : , , I , , ,

s Basalt in f. Fm __Harricana Cr ',.Rex-~9-600.090-~~..@_.~3dR.~T_Au, ;BarrauLe-LAC...LAG Mi nerai ;Sheared and dioriLic dykes ;Figuery -, -- ~ . . ~ - , 1 ; , :Manitou-Barvue ;Felaiu pyruclastics ;Figuery inf. Fm - Harrivana Gr ;Prod: 5,6 ML @ 2,.6_% Zn, A • . - ~ . , . _ I . I ~ ~ I ~ . - 24_g/ T_.A~ ~ , , , , , , :AbcuurL Barvue ;Felaii: pyruulastics ;Figuerÿ inf. Fm . Harricana Cr ;Rea : 1.? ML . @ .4.31 %_Zn, ~ ~ : 1 197 g/T Ag I - ~ , ~ ~ ~ ~ ~ ~ ~ ~ ~ . ..®- , , iL ;Venus-Barexgr ;Sheared basalt . ;Landrienne Fm - Harricana Cr ;Rea : 780 000 T @ 3.7 g/T Au , _ __-_—___q_. _ _.._. _ . ,.... _... .

; ~ , ;Mogador-Yendûme :Feisic pyruclastics ;Héva Fm - HalarLiç Gr ;Res : 5a0 Oa0 T @ 7,-3 Zn, 0,43,%~C_uy i .- i I. 55 g/T Ag, 1.17 g/T Au , ,. . , :Belfort-RuymonL ;Felsie pyroulasLica ;Héva Fm~ -_ Malartic ~~ Cr :Res : 227 000 T@ 0.21 % Cu _ . , ;I, 7 g./-T A,u,,..-20,,.941T Ag, , , ;Mogador-Ni ;Felsie pyroclastics ;Héva Fm - Malartiu Gr :Rea : 330 000 T @ 0.82 % Ni ~ - — ,--. , , , , . . . ~ - , ~ ~ 0,68 % Cu ' . . . . . ' , I .:Bartee-OnLex ;Sheared Basalt ;Figuery inf. Fm - Harricana Gr ;Res : 90 000 T @ 11.3 g/T Au ; 1 , ;Pershing Manitou ;Sheared basalt and diorite ;Landrienne Fm - Harricana Gr ;Res : 45 000 T @ 7.89 g/T Au ~ , 1 , , , ; :Cache.- Parquet ;Sheared volcanic- ; ? ;Res : unknown ;Cuurviile prospect ;granite contact ; ; NUMÉRIQUE

PAGE(S) DE DIMENSION HORS STANDARD NUMÉRISÉE(S) ET POSITIONNEE(S) A LA SUITE DES PRÉSENTES PAGES STANDARD. 7 pyrite. Their wallrocks are intensely silicified, carbonatized and sericitized, and host up to 5 % pyrite and minor. chalcopyrite.

EVALUATION OF ECONOMIC POTENTIAL:

Due to limited outcropping and no drilling within the property,- the presence of auriferous mineralization have yet to be confirmed. However, visible gold was found in a trench less than, 200 meters to the southeast of the property and a grab sample, produced 89 g (3.14 oz)/ton Au. More important, the Barexor gold bearing structure extend itself to the property and a fold (B-N) is present within it. Auriferous tension veins tend to concentrate in the crest of such fold. However, the fold is located just within the limit of the property, and tension veins observed at the Barexor prospect are flat or lightly dip to the NE (i.e. out of the property).

RECOMMENDATION:

The property hosts the necessary structural ingredients for vein type lode gold mineralizations, i.e. a fold within an auriferous NW shear structure. However, on the Barexor prospect, three of these folds host no more than 780 000 tons @ 3.77 g/T Au in several zones. An other problem is the location of the fold at the eastern limit of the property, if the auriferous tension veins lightly dip to the northeast as at Barexor, they should go quickly out of the property.

It our opinions that the property as it is presently doesn't cover enough favourable ground, and discussions concerning a 8 possible joint-ventureship should ceased unless other adjoining claims would become available.

HAROLD ENS, M.Sc. Geologist HD/lp 9

REFERENCES:

BELL, L.V. and BELL, A.M. (1934); "Senneterre Map-Area, Abitibi District - Annual report of the Quebec Bureau of Mines for the calendar year 1933", Province of Quebec, Bureau of Mines, p. 66.

BEULLAC, R. (1983); "Région de Barraute-Fiedmont" Ministère de l'Énergie et des Ressources, Direction de la recherche géologique, DP-84-02, 1 carte.

CHATILLON, F. and BEAUDRY, C. (1988); "Rapport d'exploration de la propriété Courville, canton Courville, Abitibi, Québec", Exploration Minière Ligneris Ltée, GM 17189.

DAVIS, C.R. (1987); "1986 Exploration program on the Barexor property of Arbor Resources inc. and Kangeld Resources Ltd, Barraute township, Quebec" Louvicourt Mining Management Co. Ltd, GM 45164, 40p. + annexe.

DIMROTH, E. and al. (1982); "Evolution of the south-central part of the Archean Abitibi Belt, Quebec. Part 1: Stratigraphy and paleogeographic model", Cand. J. Earth Sci., V.19, pp. 1729-1758.

DOIG, R. (1963); "Geology of the Southeast quarter of Landrienne township and the Southwest quarter of Barraute township", Quebec Department of Nâtural Resources, P.R. 510, 11 p, + 2 cartes.

GENEST, R. (1982); "Campagne de forages sur une propriété d'Exploration Long Lac Ltée, canton Courville, Abitibi, Québec", LAC Minerals Ltd, Internal Report, 9 p. 10

IMREH, L. (1982); "Sillon de La Motte-Vassan et son avant-pays méridional: synthèse volcanologique, lithostratigraphique et gitologique". Ministère de l'Énergie et des Ressources; Direction de la recherche géologique, MM 82-04, 72 p. + 1 carte.

NORTHERN MINER - Numerous Press clips.

OTIS, M. and BELAND, G. (1986); "Projet de cartographie - Région d'Amos", Ministère de l'Energie et des Ressources, Direction de la recherche géologique, MB-86-21, 138 p.

PERUSSE, J.L. (1979); "Report on gold properties/Barraute Gold Mining Reg'd, Barraute Township, Quebec" GM 34877, 21 p.

ROSS, S.H. and al. (1937); "Mining properties and development work in Abitibi and Chibougameau regions during 1937", Province of Quebec, Bureau of Mines, P.R. 120, p. 21.

CARTES DE COMPILATION GEOSCIENTIFIQUE 1:10 000 32C/6-301, 302, 201, 202