Report on Exploration

GM 07819 REPORT ON EXPLORATION

ORCHAN MINES L,.JD. PROPERTIES IN F NELON, SUBERCASE, ISLE DIEU AND GALINEE TOWNSHIPS NORTHWESTERN QUEBEC

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Mr. J. P. Dolan, President Orchan Mines, Ltd. 100 Adelaide Street West Toronto, Ontario Dear Sir: In accordance with your instructions I submit, herewith, my report on previous development work and on exploration possibilities of your properties in Isle-Dieu, Galinee, Subercase and Fenelon Townships, Counties of Abitibi-East and Abitibi-hest, Quebec. In addition, this report includes recommer- dations for future exploration programs on all properties plus an estimate of costs of such programs and time required to complete same. Yours very truly,

GPJ/ja I, Charles Philip Jenney, of the Town of Oakville, in the Province of Ontario, do hereby certify as follows: 1. That I am a ponsulting Geologist registered as a member in good standing of the Association of Professional Engineers of the Province of Ontario. 2. That the following is a true statement of my education, experience, and affiliations: Columbia University, New York 1926-30, B.A. 1930 1930-33, M.A. 1933,Ph.D. 1936 (Geology) Princeton University, 1933-34 1934-36, Geologist, Consolidated Oil Corp., New York. 1936-43, Mine & Exploration Geologist, McIntyre Porcupine Mines, Schumacher, Ontario. 1943-49, Mgr. Canadian Exploration, The American Metal Co. of Canada, Ltd., Toronto, Canada. 1949-55, Ass't Mgr. Exploration Dept., The American Metal Co., Ltd., New York. 1956---, Consulting Geologist, Oakville, Ontario.

Societies: Geological Society of America Society of Economic Geologists American Institute of Mining & Metallurgical Engineers Canadian Institute of Mining & Metallurgical Engineers Geological Association of Canada Arctic Institute Experience: Directed major exploration projects for The American Metal Company in Yukon; Coppermine River Area, N.W.T.; Great Slave Lake Lead-Zinc Area, N.W.T.; Labrador; New Brunswick; Quebec; Maine; Arizona; plus exploration.5 II and mine examination work in all provinces of' Canada and most states of the U.S.A., and in the West Indies. 3. That I have ho direct or 'indirect interest in any of the shares or -securities of Orchan Mines Limited except to the extent of ownership of 20,000 shares of the common stock. 4.That the information set forth in this report was obtained by me directly, or by geologists and engineers working under my direction and supervision. All data obtained by others have been checked by me to my satis- faction and, consequently, I assume full responsibility for all facts presented in this report.

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nney Ontario Oakville Ontario December 1, 1958

SUMMARY The facts herewith presented cover four - properties owned or under option to Orchan Mines Lim-

ited and located in Northwestern Quebec. Therefore,- conclusions and recommendations pertaiping to each of these properties, together with factual data pertain- ing thereto, are presented in four sections into which this report is dtvided. The properties are described in order as: A.Fenelon Township Group, Fenelon Twp., Abitibi-West. B.Kitchigama_Group, Subercase Twp., Abitibi-East. C.Boucier Group, Isle-Dieu Twp., Abitibi-East. D.Cote Group, Galinee Twp., Abitibi-East. PART A. - FENELON TOWNSHIP PROPERTY

CONCLUSIONS AND RECOMMENDATIONS: No outcrops have been found on the property so that the only guide to exploration is geophysical work. A magnetometer survey of the property has indicated the presence of two interesting anomalies. Further magnetometer work is recommended to outline the area of one of these anomalies. An electromagnetic survey of that portion of the property covered by the above-mentioned magnetic highs is recommended as a second exploration step. If encouraging results are obtained from the electromagnetic survey, a diamond drilling program will be submitted.

LOCATION AND ACCESS: The claim group is located in southeastern Fenelon Township with its southern and eastern boundaries approximately two miles north and one mile west of the Township's southeastern corner. Fenelon Township is about 100 miles north and slightly west of Amos, Quebec. Access is by chartered aircraft from Am ®s or from Senneterre, Quebec. A lake in the center of the property provides a convenient landing base.

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PROPERTY: There are forty mining claims in the group, covering a total of 1600 acres, more or less, and com- prising: Certificates . Claim Numbers 142023 - 1 to 5 A-273543 - 547 142024 - 1 to 5 A273548- - 552 142025 - 1 to 5 A-273558 - 562 142026 = 1 to'',A-273553 - 557 142081 - 1 to 5 A-273538 - 542 142096 - 1 to 5 A-273533 - 537 0.44186 - 1 to 5 A-286525 - A-286529,F\ 1144187 - 1 to 5 A-286530 - A-286534 50;„; 0,4:0 A sketch of the mining claims is attached hereto as Figure 1. of this report. SURFACE PLANT AND E UIPMENT: There is no surface plant or equipment on the property. UNDERGROUND PLANT AND EQUIPMENT: There is no underground plant or equipment on the property. SURFACE EXPLORATION AND DEVELOPMENT: No outcrops have been found by prospecting on the property during the 1958 season. Surface development to date comprises a magnetometer survey, results ,Of which are set forth in Figure 2. of this report. Magnetometer survey results indicate the presence of an anomaly approximately 1500 feet long and, centrally located in the claim group. 'This anomaly has an apparent -4-

relief of 1500 gamma and trends in a northeast-southwest direction. A second anomaly, with an apparent relief of 2,100 gamma is approximately 4,500 feet long by 2,000 feet wide and is located in the central and southwestern portions of the property. Its discovery, together with associate magnetic highs, led to the takingof an addit- ional 10 claims. Further magnetic work will be carried out during the winter of 1958-59 to delineate this magnetic area. HISTORY OF THE PROPERTY: The ground was first staked during July 1958 to cover an area of magnetic high shown on the Dominion Geological Survey Map 523G - "Riviere Subercase". Sub- sequent work by the present management was confined to prospecting and the performance of a magnetometer survey, results of which are described above. GEOLOGY: Although no outcrop has been found to date on the property, the presence of magnetic anomalies suggests that the bed-rock may be volcanic material or greenstone. If geophysical survey results lead to a recommendation for diamond drilling, the nature of the subsur- face rocks will be discovered. EXPLORATION EXPENDITURES: Exploration expenditures to date are estimated at: Line cutting $2,335.95 Magnetometer Survey 2,`040.00 (Estimated) Supervision 500.00 n Total $4,$75.95 Further magnetometer survey and electromagnetic survey expenditures as recommended above are estimated at $4,4$0.00. Diamond drilling and other development costs cannot be included in the estimate as they are dependent 'on results of further geophysical work.

PART B - KITCHIGAMA GROUP, S"UB:ERCASE TOWNSHIP

CONCLUSIONS AND RECOMMENDATIONS: Reconnaissance geologic and geophysical work, plus some old trenching and diamond drilling, has indicated the presence of favorable greenstone bed rock with some pyrite and chalcopyrite mineralization. Some anomalous geophysical results have been obtained in reconnaissance surveys. Depailed magnetic and electromagnetic surveys, at an estimated cost of $5,000 are recommended and should be carried out during the winter of 1958-59, when work can be done on the ice of Grasset Lake. Recommendations for diamond drilling or further development will be dependent on the results of these surveys. LOCATION AND ACCESS: The property comprises 35 mining claims located VA, in southeastern Subercase Township on the southwest shore of Grasset Lake (also known as Kitchigama Lake), adjacent to the mouth of the Subercase River. Consequently, the property is about 100 miles due north of, the town of Amos, Quebec. Access is by chartered aircraft from Amos or fro Senneterre, Quebec. Grasset Lake provides a Conven- ient landing base. PPOPERTT: At The 35 claim group covers an area of 1400 acres, more. or less, and comprises: Certificates Claim Numbers 129850 - 1 to .5 , A-249044 - 048 129852 - 1 to 5 A-249039 - 043 129853 •- 1 to 5 A-249034 - 038 129854 - 1 to 5 A-249029"- 033 129855 - 1 to 5 A-249024 - 028 129856 - 1 to 5 A-249019 - 023 129857- 1 to 5 A-249014 - 018 A survey plan of the mining claims is attached hereto as Figure,.3. of this report. SUIFAGEJLANT AND EQUIPMENT:

There is no surface plant or equipment on the . Property. UNDERGROUND PLANT AND EQUIPMENT: There is no underground plant or equipment.on the property. SURFACE EXPLORATION AND DEVELOPMENT: Exploration to date by the present management includes a magnetometer survey and a reconnaissance electromagnetic survey. This work indicated the presence of four anomalous areas which require further detailed electromagnetic work, plus some further magnetometer sur, veying before diamond drilling can be recommended. Re- sults of this preliminary work are set forth in Figure 4. of this report. HISTORY OF THE PROPERTY: At least a portion of the property had been staked a number of years ago. A sulphide showing, on the shore of Grasset Lake near the eastern boundary of the property, has been known for many years and was tested by a few short drill holes. None df the results of this former work are available to me but some aid drill core is reported to have been found on the property. Some greenstone outcrops have been mapped by the Quebec Bureau of Mines geologists (see Q.B.M. Rp. No. 12, Map 509, 1943) along the southwestern shore of Grasset Lake, and two low magnetic anomalies are shown on Map 523 "Riviere Subercase" of the Canadian Geological Survey as located on the claims. GEOLOGY Nothing is known of the geology of the property other than the greenstone outcrops referred to above.( Most of the claims are covered by overburden and muskeg EXPLORATION EXPENDITURES: To date exploration expenditures for staking,1 surveying and geophysical work are $4,300.84. Cost of further geophysical work is estiMated at: Magnetometer Survey $2,100 Electromagnetic Survey 2,400 Supervision 500 Total $5,000 Diamond drilling costs will be estimated at a future date if results of geophyscial work warrant such a program.,,

PART C. - BOUCIER PROPERTY, ISLE DIEU TONNAltiO'

CONCLUSIONS AND RECOMMEiDAtfONS: Geological and geophysical work to date has established the presence of a 'favorable tuff-flow series of greenstones trending east-west or slightly north of west across the southern'el4ims,and possibly across portions of the northern claims. An east-west trending copper ore zone on the adjacent'ptôpeetyto the east is now being drilled. I recommend the extension of the Caron Lake baseline across the southern portion of the Boucier property to be followed by a magnetometer and electromagnetic survey of lines 800 E to 3200 E. This work is designed to trace conductors, known to be present on the Garon Lake property, across the Boucier ground. If results warrant it, a drilling program will be recommended to follow up geophysical results. LOCATION AND ACCESS: The claim group is located .on the east side of the Bell River in southeastern Isle Dieu Township approximately 100 airline miles north and slightly:west of Senne- terre, Quebec. Access is by chartered aircraft from Senneterre or from Amos, Quebec. Alternatively, the Bell River canoe route can be used from Senneterre. PROPERTY: 0( The 32 claim group covers an area of approximately 12E6 acres and comprises: Certificates Claim Numbers 129887 - 1 to 5 - A-.250094 - 098 129888 - 1 to 5 A-250099 - 103 129889 - 1 to 5 A-250104 - 108 129890 - 1 to 3 & 5 A-250109 - 112. 129891 - 1 to 5. A-250113 - 117 129892 - 1 to 5 A-250118; -, 122 129893 - 1 to 3. A-250123 - 125 Figure 5. of 'thTis report shows :the surveyed claims plus the line cutting grid, for the geophysical surveys. SURFACE PLANT AND EQUIPMENT: There is no surface plant or equipment on the property. UNDERGROUND PLANT . AND EQUIPMENT: There is no underground plant or equipment on the property. SURFACE EXPLORATION AND DEVELOPMENT: During 1958 exploration, under direction of the present management, included establishment of a surveyed baseline with north-south crosslines at 400 foot intervals and.a partial magnetic and reconnaissance electromagnetic survey based on this grid. In addition, the claims were prospected and mapped geologically. Three trenches were put down online 2,000 W near 900 N pyrrhotite plus a little chalcopyrite is reported, in the, greenstone at this point. During my examination on June 10, 1958, these trenches were filled with water and the reported mineralization could not be examined. Results of all of the above work are shown on Figure 6. of this report. The southern area shown as Bell River Complex (anorthosite-gabbro) is a projection west from outcrop occurring on the Garon Lake Mines property to the east. The location of the greenstone band crossing the southern claims is well established by the mapping of 5 outcrops. However, the location of the -11-

Bell River Complex-greenstone contact on the northern portion of the property is less well-known, and it is possible that most of the northern claims may be underlain by rocks of the complex with minor patches of greenstone. HISTORY OF THE PROPERTY: The claims were staked in 1957 and, although portions of the ground may have been claimed in the past, claim maps for 1956 show all of the ground open for staking. No evidence of former work has been found on the property to date. Map 509 of the Quebec Bureau of Mines (Geol. Rp. No. 12, 1943) shows no outcrop in the area although all of it is assumed to be underlain by greenstone. As indicated on Figure 6. both greenstone and anorthosite outcrops have been found on the property but most of the bedrock is masked by overburden. GEOLOGY: A general trend of greenstone and anorthosite, striking slightly north of west is shown on Figure 6., which sets forth all geologic information available to date on this property. Drilling to the east of the southernmost claims of. the group, is reported to have located an east-west trending copper zone in a volcanic tuff series. It is possible that this zone may extend west onto the Boûcier property and future exploration and development will be directed toward locating and testing this zone, if it is present. EXPLORATION EXPENDITURES: The option on this property is held by Orchan Mines and by Îso Uranium. To date, Orchan•s portion of exploration expenddtures for geophysical surveys, trenching and surveying is $2,420.78. Cost of further geophysical work is estimated as: Line Cutting Base Line $ 500.00 Magnetometer Survey 400.00 Electromagnetic Survey $00.00 Supervision 200.00 Total $1,900.00 If results of geophysical work warrant, a recommendation for diamond drilling such will be made.

PART D. - COTE GROUP, GALINEE TOWNSHIP CONCLUSIOAIS AND RECOhMENDATIONS: Both geophysical survey results and preliminary diamond drilling results on this property, which adjoins south of the Mattagami Syndicate property, are decidedly encouraging. It has been established that geological and ore-making conditions are similar in every respect to those obtaining in the area of the major zinc-copper orebody some 3,000 feet to the northwest. Ore grade intersections have been obtained in a number of the first holes drilled and it may be of parti- cular significance that copper values of higher grade and more frequent occurrence have been found in this drilling than in the first drilling on the Syndicate property. T can only submit a recommendation for further diamond drilling and geophysical work but wish to limit the diamond drilling recommendation to the operation of not more than two machines until the structural geologic picture becomes more apparent. Expenditures will be dependent on results obtained. LOCATION AND ACCESS: The property is located in northwestern Galinee Township and adjoins the Watson Lake property of the Matta- gami Syndicate on the south. The base camp, in-the eastern portion of the ground, is a little over two miles southeast of the southeast end of Watson Lake, an aircraft landing base 95 miles north of Senneterre, Quebec. Access is by chartered aircraft from Senneterre or from Amos, Quebec, and by bush road from Watson Lake. A winter airstrip, located within a few hundred feet of the base camp, is available for landing with ski-equipped planes under favorable snow conditions.

It is reported that a winter road is under construction north from Amos, Quebec, to the Mattagami Lake Area, and it is anticipated that work will commence in 1959 to make this an all weather road. PROPERTY: The group comprises 19 mining claims covering a surveyed total of 625.903 acres as follows: Certificates Claim Numbers 122167 - 1 to 5 A-243096 - 243100 5 A-243101 4 - Au! i. lElg - 1 t',), Ng?? 122170 - 1 to 5, A-243111 - 243115 '-- A surveyed plan of the mining claims is attached hereto as Figure 7. of this report. SURFACE PLANT AND EQUIPMENT: A frame building, measuring approximately 251 X 401, and serving as an office and core storage building is the only semi-permanent structure on the property. The balance of the base camp consists of tent-frame structures, some of which will be converted to frame buildings during the winter. At present Boyles Bros. Drilling Ltd. have two diamond drills in operation on the property. UNDERGROUND PLANT AND EQUIPMENT: There is no underground plant or equipment on the property. SURFACE EXPLORATION AND DEVELOPMENT: No rock outcrops have been located by prospecting on these claims. Surfacè development includes geophysical work (magnetometer surveys, electromagnetic surveys and an induced polarization survey) and diamond drilling. To date a total of 6,767 feet of AX drilling has been done in 14 holes, with results as outlined below. Drilling is continuing. Further geophysical work is also in progress at present. HISTORY OF THE PROPERTY: The ground was first staked in the fall of 1956 soon after the location of the Mattagami Syndicate claims to the north. No prospecting or development work is known to have been done on the ground prior to that time. GEOLOGY: Drilling results indicate that the rock types and ore occurrences are similar to those found on the adjacent Mattagami Syndicate property to the north. The host rock is a series of andesitic lavas and pillow lavas with some more acid flows and with narrow thicknesses of tuff and flow top material present in places. These rocks vary in color from light gray or light gray-green to dark gray, and are porphyrtc, ainygdaloidal and spherulitic in places. The lavas are intruded by sills and dikes of gabbro-peridotite, diabase, rhyolite porphyry and lampro- phyre. All rocks are Pre-Cambrian in age. Both silicification and chloritization are wide- spread and appear to be processes closely related to em- placement of the sulphides. In places the gabbro-peridotite members have been altered to soapstone with the development of talc and serpentine. Sulphides include pyrite, pyrrhotite,,sphalerite, chalcopyrite and magnetite with some occassional occurrences of galena and molybdenite. To date very little magnetite has been intersected in drilling, compared to the Mattagami Syndicate sulphide zone. In addition, the Orchan-Cote drilling has discovered a number of sections carrying im- portant copper values with little or no zinc. These sections have been found within 100 feet of the main zinc zone and may lie both above and below it, structurally. The Mattagami Syndicate orebody, some 3000 feet from the present drilling site on the Cote property, is known to occupy the crest and sides of a tightly folded anticline which trends northwest and plunges in the same direction. No clear structural picture has yet emerged from the preliminary Cote drilling but there are indications that the major structure may be.that of a northwest trending anticline parallel to, and adjacent to, the Mattagami Syndi- cate structure on its southwest side. DRILLING RESULTS: A good deal more drilling will have to be done before results can be judged properly, and any ore reserve estimate made. I have examined core from the first ten holes and feel that it is too early to attempt any but the most general of correlations. Consequently, the following notes should be regarded as preliminary observations only, and apply to holes 1-10, only. Zinc Zone: Holes 1, 2 and 8 have intersected portions of what appears to be the same zinc zone with the following_ results: Core Zn Cu Au Ag Footage Length L L oz, oz. Hole 1 92-117 25! 6.11 1.02 0.028 2.88 151-195 44' 12.83 0.72 0.018 1.21 Hole 2 88-141 44• 8.44 0.08 Nil 0.13 222-270 48' 8.33 0.35 0.006 0.62 Hole 8 51-105 54'' 16.36 0.38 0.016 2.44

Copper Zones: Holes 6, 7, 8. and 10 have intersected copper values in a number of 'zones, some of which may be related. Most ôf these intersections are notable for extremely low values in zinc. Core n Cu Au Ag •E2214a Leal oz. Oz. Hole 6 198-250. 52t 0.32 1.99 0.013 0.17 323-330 7' 0.16 2.49 0.005 0.19 Hole 7 1907200 101 3.34 4.17 0.0075 1.20 Hole 8 349..35 36' 0.03 1.69 0.005 . 0.18 Hole 10 72-110 381 0.20 2.97 0.005 0.64 The attached surface plan, Figure 8. of this report, shows location and attitude of all holes drilled to date and drilling:

EXPLORATION EXPENDITURES: my latest information gives exploration expenditures on this group as $20,219.41. Since diamond drilling ,is in progress, this figure does not reflect current billings and charges. Obviously, with drilling in progress and encouraging results being obtained, no estimate of future expenditures can be made at this time, as such will depend on future developments.

Oakville, Ontario December 1, 1958