INDEPENDENT TECHNICAL REPORT
CUNNINGHAM AND SUTTON PROPERTIES
Kirkland Lake, Ontario, Canada
WEST KIRKLAND MINING INC. Bentall Tower 5 Suite 328 - 550 Burrard Street Vancouver, BC Canada V6C 2B5
Date: February 6, 2012
Prepared By:
CARACLE CREEK INTERNATIONAL CONSULTING INC. Zsuzsanna Magyarosi, Ph.D., P.Geo. Sherri Hodder, M.Sc., P.Geo. Sarah Sylvester, B.Sc. Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc.
Office Locations This report has been prepared by Caracle Creek International Consulting Inc. (Caracle Creek) on Toronto behalf of West Kirkland Mining Inc. 34 King Street East, 9th Floor Toronto, ON Canada, M5C 2X8 2012
Tel: +1.416.368.1801 Fax: +1.416.368.9794 [email protected]
Vancouver 409 Granville Street, Suite 1409 Vancouver, BC Canada, V6C 1T2
Tel: +1.604.637.2050 Fax: +1.604.602.9496 [email protected]
Sudbury 25 Frood Road Sudbury, ON Canada, P3C 4Y9
Tel: +1.705.671.1801 TF: +1.866.671.1801 Fax: +1.705.671.3665 [email protected]
Johannesburg 7th Floor The Mall Offices 11 Cradock Avenue, Rosebank South Africa
Tel: +1.27 (0) 11.880.0278 Issued by: Sudbury Office Fax: +1.27 (0) 11.447.4814 [email protected]
www.caraclecreek.com
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 1 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc.
1.0 STATEMENT OF AUTHORSHIP
This Report, titled “Independent Technical Report, Cunningham and Sutton Properties, Kirkland Lake, Ontario, Canada”, and dated February 6th, 2012 was prepared and signed by the following Qualified Person:
“Signed and sealed”
______Zsuzsanna Magyarosi, Senior Geologist, Ph.D., P.Geo. February 6, 2012 Sudbury, Ontario
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TABLE OF CONTENTS
1.0 STATEMENT OF AUTHORSHIP ...... 2
2.0 SUMMARY ...... 8
3.0 INTRODUCTION ...... 10
3.1 INTRODUCTION ...... 10 3.2 TERMINOLOGY ...... 10 3.3 UNITS ...... 11 3.4 CARACLE CREEK QUALIFICATIONS ...... 12
4.0 RELIANCE ON OTHER EXPERTS ...... 13
5.0 PROPERTY DESCRIPTION AND LOCATION ...... 14
5.1 LOCATION ...... 14 5.2 DESCRIPTION AND OWNERSHIP ...... 16
6.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY...... 20
6.1 ACCESS ...... 20 6.2 CLIMATE AND VEGETATION ...... 21 6.3 PHYSIOGRAPHY ...... 21 6.4 INFRASTRUCTURE AND LOCAL RESOURCES ...... 21
7.0 HISTORY ...... 23
7.1 TEXASGULF CANADA ...... 30 7.2 SHEEDY AND KING ...... 30 7.3 MINOREX ...... 30 7.4 G.L. TAMAN ...... 31 7.5 RIO TINTO ...... 31 7.6 BILLITON ...... 31 7.7 HORTON ...... 32 7.8 CUNNINGHAM ...... 32 7.9 IVAN J. DEA ...... 32 7.10 RIO ALGOM EXPLORATION ...... 33 7.11 FALCONBRIDGE ...... 33 7.12 PAMOUR PORCUPINE MINES / PAMOREX MINERALS ...... 33 7.13 SUTTON-HANSON ...... 34 7.14 JEANETTE LOURIM ...... 35
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 3 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. 7.15 INMET ...... 35 7.16 DENIS CHARTRE AND ROGER DUFRENSE ...... 35 7.17 MARK FEKETE ...... 36 7.18 AQUISTAR ...... 36 7.19 BICE VENTURES CORPORATION...... 36 7.20 TECK EXPLORATION LIMITED ...... 37 7.21 BRIGADIER GOLD LIMITED ...... 38 7.1 NEWSTRIKE ...... 38
8.0 GEOLOGICAL SETTING AND MINERALIZATION ...... 38
8.1 REGIONAL GEOLOGY ...... 38 8.1.1 Regional Mineralization ...... 42 8.2 LOCAL GEOLOGY ...... 43 8.2.1 Rock types ...... 43 8.2.2 Structural geology ...... 46 8.2.3 Metamorphism ...... 46 8.3 PROPERTY GEOLOGY ...... 46 8.3.1 Rock types ...... 46 8.3.2 Structural geology and metamorphism ...... 50 8.4 MINERALIZATION ...... 51 8.4.1 Cowie ...... 51 8.4.2 Geraldine ...... 51 8.4.3 Golub Lake...... 52 8.4.4 Holmes ...... 52 8.4.5 Loki-1 (Brookbank) ...... 52 8.4.6 Loki-2 ...... 52 8.4.7 Loki-4 ...... 52 8.4.8 Loki-5 ...... 52 8.4.9 Sutton ...... 53 8.4.10 Sutton claims ...... 53 8.4.11 Tully, C.W...... 53 8.4.12 M2 Zone...... 53 8.4.13 Boundary Zone ...... 54
9.0 DEPOSIT TYPES ...... 55
10.0 EXPLORATION ...... 57
10.1 SAMPLING ...... 57
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11.0 DRILLING ...... 58
11.1 DRILLING PROGRESS ...... 58 11.2 DRILL DATA AND DRILLING RESULTS ...... 62
12.0 SAMPLE PREPARATION, ANALYSES AND SECURITY ...... 65
12.1 SAMPLE SECURITY ...... 65 12.2 SAMPLE PREPARATION ...... 68
13.0 DATA VERIFICATION ...... 69
13.1 CARACLE CREEK SITE VISIT ...... 69 13.1.1 Cunningham ...... 69 13.1.2 Sutton ...... 70 13.1.3 Core shack ...... 70
14.0 MINERAL PROCESSING AND METALLURGICAL TESTING ...... 74
15.0 MINERAL RESOURCE ESTIMATES ...... 74
16.0 MINING METHODS ...... 75
17.0 RECOVERY METHODS ...... 75
18.0 PROJECT INFRASTRUCTURE ...... 75
19.0 MARKET STUDIES AND CONTRACTS...... 75
20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT ...... 75
21.0 CAPITAL AND OPERATING COSTS ...... 75
22.0 ECONOMIC ANALYSIS ...... 75
23.0 ADJACENT PROPERTIES ...... 76
23.1 WEST KIRKLAND MINING ...... 76 23.2 AURICO GOLD ...... 76 23.3 BRIGADIER ...... 76 23.4 ALEXANDRIA MINERALS CORP ...... 77
24.0 OTHER RELEVANT DATA AND INFORMATION ...... 79
25.0 INTERPRETATION AND CONCLUSIONS ...... 79
26.0 RECOMMENDATIONS ...... 80
27.0 REFERENCES ...... 82
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FIGURES
Figure 5-1 Location of the Cunningham and Sutton properties ...... 15 Figure 5-2 WKM claims and dispositions on the Cunningham and Sutton properties ...... 17 Figure 6-1 Infrastructure map of the Cunningham and Sutton properties ...... 22 Figure 7-1 Location of historical drill holes on the Cunningham and Sutton Properties. The location od drill collars is approximate...... 29 Figure 8-1 Location of the Abitibi Subprovince (from Jackson and Fyon 1991) ...... 39 Figure 8-2 Regional geology of the Cunningham and Sutton properties (after Percival and Easton 2007) ...... 41 Figure 8-3 Local geology map of the Cunningham and Sutton properties (after Berger et al., 2006) ...... 45 Figure 8-4 Property geology of the Cunningham and Sutton properties (after Berger et al., 2006). Mineral occurrences are listed in Table 8-2...... 49 Figure 9-1: Schematic presentation of the geological environment and crustal depth of orogenic gold deposits ...... 56 Figure 9-2: Examples of orogenic gold deposits world-wide (from Dubé and Gosselin, 2007)...... 57 Figure 11-1 Location of drill holes and grab samples on the Property ...... 60 Figure 11-2 Labeled core in the core shack ...... 62 Figure 11-3 High grade zone in hole KC1009 ...... 65 Figure 12-1 Temporary core storage ...... 66 Figure 12-2 Permanent core storage ...... 67 Figure 12-3 Locked gate to temporary and permanent core storage areas ...... 68 Figure 13-1 Drill hole KC1163 with high grade gold intervals, Cunningham Property ...... 71 Figure 13-2 Current drilling on Cunningham property ...... 72 Figure 13-3 Drill collar KS11-51 on Sutton Property...... 73 Figure 13-4 West Kirkland Mining core shack ...... 74 Figure 23-1 Adjacent claims ...... 78
TABLES
Table 5-1 List of claims on the Cunningham and Sutton properties. Claims with expired due dates are work report pending...... 19 Table 5-2 List of dispositions on the Cunningham Property ...... 20 Table 7-1 List of exploration work on the Property in chronological order ...... 23 Table 7-2 List of historical drill holes on the Cunningham and Sutton Properties. Locations are approximate. Some of the information was not available to the author...... 26
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 6 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Table 8-1 List of geological units in the area (after Berger 2006) ...... 43 Table 8-2 List of occurrences on the Cunningham and Sutton properties ...... 54 Table 10-1 Location and Au assay results of grab samples ...... 58 Table 11-1 List of drill holes ...... 61 Table 11-2 Drill highlights for the Cunningham drill holes ...... 63 Table 11-3 Drill highlights for the Sutton drill holes ...... 64 Table 26-1. Recommended exploration budget...... 80
APPENDICES
Appendix 1 – Certificates of Authors Appendix 2 – Option Agreements
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2.0 SUMMARY
Caracle Creek International Consulting Inc. ("Caracle Creek") of Toronto, Ontario, Canada was contracted by West Kirkland Mining Inc. ("WKM") of Vancouver, British Columbia, Canada, to review the Cunningham and Sutton Properties (the "Property"), and prepare an Independent Technical Report ("Report"), compliant with National Instrument 43-101 ("NI43-101"), companion policy NI43-101CP and Form 43-101F1. The purpose of this Report is to summarize the exploration activities and the results of the exploration on the Property.
The Cunningham and Sutton Properties are located in northeastern Ontario, approximately 32 km southwest of Kirkland Lake and approximately 14.5 km northeast of AuRico Gold’s Young-Davidson Mine in Matachewan.
The Cunningham Property is a contiguous block consisting of 14 claims and 20 dispositions, covering 1127 ha (11.27 km2). The Sutton Property consists of 8 contiguous claims covering 208 ha (2.08 km2). The two properties are contiguous.
The Cunningham claims and dispositions are under an option agreement between Leonard Joseph Cunningham (“Cunningham”) and WKM. One disposition (McLean Property, N half of Lot 6 Con 2) is under an option agreement between WKM and Alan McLean (“McLean”). The Sutton claims are under an option agreement between WKM and Mike Sutton (“Sutton”).
The Property lies within the western part of the Abitibi Greenstone Belt, which is part of the Western Abitibi Subprovince of the Superior Province. The rocks are composed of komatiite-tholeiitic assemblages, tholeiitic assemblages, ultramafic to felsic metavolcanic rocks and metasedimentary rocks.
The Property is underlain by mafic to intermediate metavolcanic rocks, metasedimentary, alkalic metavolcanic rocks of the Timiskaming Assemblage, metamorphosed tholeiitic ultramafic and mafic intrusive rocks, metamorphosed alkali felsic and intermediate intrusive rocks and metamorphosed calc- alkali felsic and intermediate volcanic rocks. All rocks are cut by north trending diabase dikes of the Matachewan swarm and rocks in the southeastern part of the Property are overlain by sediments of the Paleoproterozoic Gowganda Formation.
The two major faults on the Property are the Kincaid and the Galer Lake faults, which are splays off the Larder Lake – Cadillac deformation zone (“LCDZ”), a major east-west trending structure. At least two
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 8 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. generations of folding affected the Archean rocks on the Property. The amphibolite facies contact metamorphism around the felsic intrusions is overprinted by regional greenschist facies metamorphism.
The Cunningham and Sutton Properties are located approximately 14.5 km northeast of AuRico’s Young- Davidson Mine and 28.3 km southwest of the Macassa Mine, operated by Kirkland Lake Gold Inc. Both of these operating mines are located along the major Larder Lake – Cadillac Deformation Zone, which runs approximately 1 km south of the Cunningham Property.
There are at least twelve known Au occurrences and one Mo occurrence on the Property. Au mineralization is associated with splay faults of the LCDZ, such as the Kincaid and Galer Lake faults. The host rocks include syenite, feldspar porphyry, mafic metavolcanic and metasedimentary rocks. The rocks are foliated and sheared, often with evidence of more than one deformational event. Alteration is characterized by carbonate, chlorite, fuchsite, sericite, and silica. Pyrite is the most common sulphide mineral. A grab sample from the Loki-5 occurrence collected by Moore (1966) returned 2.2 oz/ton (62.37 g/t) Au.
WKM carried out an exploration program between October 25, 2010 and September 15, 2011, consisting of drilling and sampling (3 grab samples). Forty-six holes were drilled totaling 10,801 m. Several drill holes intersected significant amount of Au mineralization. The best intersections include 19.70 g/t Au over 7.9 m in hole KC1008 and 34.49 g/t over 2.2 m in hole KC1163 in the Cunningham Property.
Gold mineralization, intersected by the drill holes, is hosted in mafic metavolcanic rocks and syenite, which are strongly altered and deformed. The alteration includes carbonate, chlorite, hematite, K-spar, epidote and silica. The alteration is typically moderate to strong and often pervasive for carbonate and silica. Chlorite is typically patchy or fracture controlled. Quartz veins and stockworks are very common as is pyrite up to 5%, and locally 25%.
It is Caracle Creek’s opinion that given the geological location, the amount of known gold mineralization identified on the Property with historical exploration and the results of the exploration program, follow up work on the Property has an excellent potential to find additional significant gold mineralization.
Additional drilling (~8,500 m) is recommended on the Cunningham and Sutton Properties to establish the attitude (azimuth, dip, length, depth) of the mineralized zones and define a resource.
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3.0 INTRODUCTION
3.1 Introduction
Caracle Creek International Consulting Inc. of Toronto, Ontario, Canada was contracted by West Kirkland Mining Inc. of Vancouver, British Columbia, Canada, to review the Cunningham and Sutton Properties, and prepare an Independent Technical Report, compliant with National Instrument 43-101, companion policy NI43-101CP and Form 43-101F1. The purpose of this Report is to document and summarize the exploration activities and the results of the exploration on the Property.
The information, conclusions and recommendations contained herein are based on a review of digital and hard copy data and information supplied to CCIC by the Company, as well as various published geological reports, and discussions with representatives from the Company who are familiar with the Property and the area in general.
A site visit was completed on October 19, 2011 by Zsuzsanna Magyarosi, Ph.D., P.Geo., as described in the Data Verification section of this report. Ken Kryklywy, WKM’s Manager of Ontario and Quebec, showed the Cunningham and Sutton Properties to Ms. Magyarosi. The current drilling site on the Cunningham Property, outcrops and the location of recent drillings by WKM on the properties and the core shack including the drill core storage facilities were visited by Ms. Magyarosi.
3.2 Terminology
Greenstone: A field term applied to any compact dark-green altered or metamorphosed basic igneous rock (e.g., spilite, basalt, gabbro, diabase) that owes its color to the presence of chlorite, actinolite, or epidote (http://www.maden.hacettepe.edu.tr).
MDI: Mineral deposit inventory; a database of mineral occurrences of Ontario compiled by the MNDMF
MNDMF: Ontario Ministry of Northern Development, Mines and Forestry
NAD83: North America Datum 1983; projection used for the maps in this Report.
Orogenic: The process by which structures within fold-belt mountainous areas were formed, including thrusting, folding, and faulting in the outer and higher layers, and plastic folding, metamorphism, and plutonism in the inner and deeper layers (http://www.maden.hacettepe.edu.tr).
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3.3 Units
The Metric System is the primary system of measure and length used in this Report and is generally expressed in kilometres (km), metres (m) and centimetres (cm); volume is expressed as cubic metres (m3), mass expressed as metric tonnes (t), area as hectares (ha), and gold and silver concentrations as grams per tonne (g/t). Conversions from the Metric System to the Imperial System are provided below and quoted where practical. Many of the geologic publications and more recent documents now use the Metric System but older documents almost exclusively refer to the Imperial System. Metals and minerals acronyms in this report conform to mineral industry accepted usage and the reader is directed to www.maden.hacettepe.edu.tr/dmmrt/index.html for a glossary.
Conversion factors utilized in this report include:
1 troy ounce/ton = 34.285714 grams/tonne
1 gram/tonne = 0.029167 troy ounces/ton
1 troy ounce = 31.103477 grams
1 gram = 0.032151 troy ounces
The term gram/tonne or g/t is expressed as “gram per tonne” where 1 gram/tonne = 1 ppm (part per million) = 1000 ppb (part per billion). The mineral industry accepted terms Au g/t and g/t Au are substituted for “grams gold per metric tonne” or “g Au/t”. Other abbreviations include ppb = parts per billion; ppm = parts per million; oz/t = troy ounce per short ton; Moz = million ounces; Mt = million tonne; t = tonne (1000 kilograms); SG = specific gravity; lb/t = pound/ton; and, st = short ton (2000 pounds).
Dollars are expressed in Canadian currency (CAD$) unless otherwise noted. Zinc (Zn), copper (Cu) and lead (Pb) are reported in US$ per pound (US$/lb) or US$ per metric tonne (US$/t). Gold (Au) and silver (Ag) are stated in US$ per troy ounce (US$/oz). Where quoted, Universal Transverse Mercator (UTM) coordinates are provided in the datum of Canada, NAD 83, Zone 17U North.
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3.4 Caracle Creek Qualifications
Caracle Creek International Consulting Inc. is an international consulting company with the head office of Canadian operations based in Sudbury, Ontario, Canada. Caracle Creek provides a wide range of geological and geophysical services to the mineral industry. With offices in Canada (Sudbury and Toronto, Ontario and Vancouver, British Columbia) and South Africa (Johannesburg), Caracle Creek is well positioned to service its international client base.
Caracle Creek's mandate is to provide professional geological and geophysical services to the mineral exploration and development industry at competitive rates and without compromise. Caracle Creek's professionals have international experience in a variety of disciplines with services that include:
Exploration Project Generation, Design and Management
Data Compilation and Exploration Target Generation
Property Evaluation and Due Diligence Studies
Independent Technical Reports (43-101)/Competent Person Reports
Mineral Resource/Reserve Modelling, Estimation, Audit; Conditional Simulation
3D Geological Modelling, Visualization and Database Management
In addition, Caracle Creek has access to the most current software for data management, interpretation and viewing, manipulation and target generation.
The Qualified Person and co-author of this Report is Zsuzsanna Magyarosi, Ph.D., P.Geo. Ms. Magyarosi is a Senior Geologist for Caracle Creek International Consulting and a geologist in good standing with the Association of Professional Geoscientists of Ontario (APGO #2031). Ms. Magyarosi has 10 years of experience in the mineral exploration industry and in academia and has authored/co-authored several Independent Technical Reports (NI43-101).
A co-author of this Report is Ms. Sherri L. Hodder, M.Sc., P.Geo., Senior Geologist for Caracle Creek and a geologist in good standing with the Association of Professional Engineers, Geologists and Geophysicists of Alberta (APEGGA #76152) and Association of Engineers and Geoscientists of Saskatchewan (APEGS #13906). Ms. Hodder has 14 years of experience in mineral exploration, mining
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 12 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. pre-feasibility studies and feasibility studies in Canada, Mexico, Lesotho, and Russia; she has co-authored Independent Technical Reports (NI43-101). Ms. Hodder is not a QP for this Report.
Another Co-author of this Report is Sarah Silvester, B.Sc. Ms. Silvester is a Geologist for Caracle Creek International Consulting and has two years of experience in the mineral exploration industry. Ms. Silvester is not a QP for this report.
Certificates of Qualifications are provided in Appendix I.
4.0 RELIANCE ON OTHER EXPERTS
Caracle Creek has completed this Report in accordance with the methodology and format outlined in National Instrument 43-101, companion policy NI43-101CP and Form 43-101F1. This Report was prepared by competent and professional individuals from Caracle Creek on behalf of the Company and is directed solely for the development and presentation of data with recommendations to allow the Company and current or potential partners to reach informed decisions.
The information, conclusions and recommendations contained herein are based on a review of digital and hard copy data and information supplied to Caracle Creek by the Company, as well as various published geological reports, and discussions with representatives from the Company who are familiar with the Property and the area in general. Caracle Creek has assumed that the reports and other data listed in the “References” section of this report are substantially accurate and complete.
Caracle Creek has relied exclusively on information provided by the Company regarding land tenure, underlying agreements and technical information not in the public domain, and all of these sources appear to be of sound quality. Caracle Creek is unaware of any technical data other than that presented by the Company or its agents. Caracle Creek did not conduct an in-depth review of mineral title and ownership and the title ownership and status of claims as outlined in this Report was obtained from WKM. While title documents and option/purchase agreements were reviewed for this study as provided by WKM, it does not constitute, nor is it intended to represent, a legal, or any other opinion as to title.
The dates, titles and authors of all reports that were used as a source of information for this Technical Report are listed in the “References” section of this report. The dates and authors of these reports also appear in the text of this Report where relevant, indicating the extent of the reliance on these reports.
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5.0 PROPERTY DESCRIPTION AND LOCATION
5.1 Location
The Cunningham and Sutton Properties are located in northeastern Ontario as shown in Figure 5-1. The centre of the properties is approximately 537124E, 5318899N (Zone 17). The project area can be accessed via the International Airports of Ottawa or Toronto and through the regional airports of North Bay or Timmins, Ontario. The Kirkland Lake airport does not have regular service. Access to the property from Kirkland Lake is westbound on Government Road (Trans Canada Hwy) or local Hwy 66 towards the community of Matachewan.
The properties are approximately 32 km southwest of Kirkland Lake, and 14.5 km northeast of AuRico Gold’s Young Davidson Mine in Matachewan.
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Figure 5-1 Location of the Cunningham and Sutton Properties
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 15 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. 5.2 Description and Ownership
The Cunningham Property is a contiguous block consisting of 14 claims and 20 dispositions (Table 5-1, Table 5-2, Figure 5-2), covering 1127 ha (11.27 km2). The Sutton Property consists of 8 contiguous claims covering 208 ha (2.08 km2) (Table 5-1, Figure 5-2). The two properties are contiguous (Figure 5-2).
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Figure 5-2 WKM claims and dispositions on the Cunningham and Sutton Properties
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 17 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. The Cunningham claims and dispositions are under an option agreement between Leonard Joseph Cunningham and WKM, except one disposition (McLean Property, N half of Lot 6 Con 2), which is under an option agreement between WKM and Alan McLean.
The registered owner of the Cunningham claims is S.A. Cunningham executrix and trustee. According to a legal document dated November 22, 2011 a miscellaneous notice registered on April 7, 2011 states that the claim is not open for staking following the death of Leonard Joseph Cunningham on April 5, 2011. According to the MNDMF webpage, the “commissioner vests 100% interest of Cunningham, Leonard Joseph in Cunningham, Sharon Ann executrix and trustee” (MNDMF webpage: http://www.mndm.gov.on.ca/mines/mining_claims_information_e.asp).
According to the option agreement between WKM and Cunningham (dated Sept. 3, 2010), in order for WKM to acquire the Mineral Rights on the Cunningham Property, WKM has to pay Cunningham a total of $320,000 in cash and spend a total of $600,000 on work expenditure over five years on the Cunningham Property to earn a 100% interest in the property subject to a 1% Net Smelter Royalty (“NSR”) (Appendix 2). The Royalty can be purchased at any time up to commercial production on the property for $1,000,000.
According to the option agreement between WKM and McLean (dated Nov. 16, 2010), in order for WKM to acquire 100% of the Mineral Rights on the McLean Property, WKM has to pay Cunningham a total of $55,000 in cash over five years (Appendix 2). Also included in the agreement is an option to purchase the surface rights to the property. For this option, West Kirkland will pay an additional $1,000 per year. The vendor also retains a 1% NSR purchasable by West Kirkland for $250,000.
The Sutton claims are under an option agreement between WKM and Mike Sutton (Appendix 2). According to the agreement (dated November 9, 2010) WKM is required to pay Sutton a total of $148,000 over six years and spend $220,000 on work expenditures over three years to earn 100% interest of the property subject to 2% NSR. West Kirkland holds the right to purchase 1.5% of the NSR for $500,000 up to the commencement of commercial production.
In Ontario, to retain a mining claim, companies must submit an assessment file to MNDMF’s Geoscience Assessment Office showing that they have spent $400/per claim unit on exploration on each claim. One claim unit is equal to 16 hectares. A mining claim is issued for a term of 2 years.
In Ontario, to retain a lease, the company must pay rent of $3.00/hectare to MNDMF’s Dispositions Office which collects the rent on behalf of the Crown (MNDMF web site:
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Table 5-1 List of claims on the Cunningham and Sutton Properties. Claims with expired due dates are work report pending. Claim No. of Property Township Owner Area (ha) Due date number units S.A. Cunningham executrix and 736529 Cunningham Holmes, Flavelle 1 16 2015-Jan-09 trustee (100%) S.A. Cunningham executrix and 736530 Cunningham Holmes, Flavelle 1 16 2015-Jan-09 trustee (100%) S.A. Cunningham executrix and 736532 Cunningham Holmes, Flavelle 1 16 2015-Jan-09 trustee (100%) S.A. Cunningham executrix and 843409 Cunningham Holmes, Flavelle 1 16 2014-Jul-24 trustee (100%) S.A. Cunningham executrix and 843410 Cunningham Holmes, Flavelle 1 16 2014-Jul-24 trustee (100%) S.A. Cunningham executrix and 843411 Cunningham Holmes, Flavelle 1 16 2014-Jul-24 trustee (100%) S.A. Cunningham executrix and 843697 Cunningham Holmes, Flavelle 1 16 2014-Jul-24 trustee (100%) S.A. Cunningham executrix and 843698 Cunningham Holmes, Flavelle 1 16 2014-Jul-24 trustee (100%) S.A. Cunningham executrix and 843699 Cunningham Holmes, Flavelle 1 16 2014-Jul-24 trustee (100%) S.A. Cunningham executrix and 843700 Cunningham Holmes, Flavelle 1 16 2015-Jul-24 trustee (100%) S.A. Cunningham executrix and 1221654 Cunningham Holmes, Flavelle 1 16 2014-Oct-04 trustee (100%) S.A. Cunningham executrix and 1222584 Cunningham Holmes, Flavelle 3 48 2014-Nov-29 trustee (100%) S.A. Cunningham executrix and 1248771 Cunningham Holmes, Flavelle 2 32 2014-Apr-10 trustee (100%) S.A. Cunningham executrix and 1248772 Cunningham Holmes, Flavelle 1 16 2014-Apr-10 trustee (100%) S.A. Cunningham executrix and 1248774 Cunningham Holmes, Flavelle 2 32 2014-Dec-12 trustee (100%) S.A. Cunningham executrix and 3003773 Cunningham Holmes, Flavelle 2 32 2014-Jun-14 trustee (100%) S.A. Cunningham executrix and 3003774 Cunningham Holmes, Flavelle 2 32 2014-Jun-14 trustee (100%) T.A. Link (50%) and S.A. 4201344 Cunningham Holmes, Flavelle Cunningham executrix and 6 96 2014-Jun-28 trustee (50%) S.A. Cunningham executrix and 4202321 Cunningham Holmes, Flavelle 1 16 2015-May-11 trustee (100%) 4255399 Cunningham Holmes, Flavelle WKM (100%) 12 192 2013-Jan-10 4241313 Sutton Holmes M.W. Sutton (100%) 1 16 2011-Dec-09 4241314 Sutton Holmes M.W. Sutton (100%) 3 48 2011-Dec-09 4241315 Sutton Holmes M.W. Sutton (100%) 1 16 2011-Dec-09 4250687 Sutton Holmes M.W. Sutton (100%) 2 32 2011-Dec-09 4251251 Sutton Holmes M.W. Sutton (100%) 1 16 2011-Dec-09 4252738 Sutton Holmes M.W. Sutton (100%) 1 16 2012-Oct-19 4258183 Sutton Holmes M.W. Sutton (100%) 2 32 2012-Nov-01 4258184 Sutton Holmes M.W. Sutton (100%) 2 32 2012-Nov-01 Total area 880
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Table 5-2 List of dispositions on the Cunningham Property Disposition Lot and concession Property Township Tenure type Owner number number MR7785 N part Lot 8 Con 2 Cunningham Holmes L.J. Cunningham
MR7786 N part Lot 8 Con 2 Cunningham Holmes L.J. Cunningham
MR7787 N part Lot 8 Con 2 Cunningham Holmes L.J. Cunningham
MR7788 N part Lot 8 Con 2 Cunningham Holmes L.J. Cunningham
MR6221 N part Lot 8 Con 2 Cunningham Holmes L.J. Cunningham
MR6222 N half of Lot 7 Con 2 Cunningham Holmes L.J. Cunningham
MR6223 N half of Lot 7 Con 2 Cunningham Holmes L.J. Cunningham
MR6224 N half of Lot 7 Con 2 Cunningham Holmes L.J. Cunningham
MR6225 N half of Lot 7 Con 2 Cunningham Holmes L.J. Cunningham
MR14962 Lot 11 Con 1 Cunningham Holmes L.J. Cunningham
MR14963 Lot 11 Con 1 Cunningham Holmes L.J. Cunningham
MR14964 Lot 11 Con 1 Cunningham Holmes L.J. Cunningham
MR14965 Lot 11 Con 1 Cunningham Holmes L.J. Cunningham
Lot 9 Con 1 and Lot 10 MR14540 Cunningham Holmes licence of occupation L.J. Cunningham Con 1 MR12934 Lot 9 Con 1 Cunningham Holmes licence of occupation L.J. Cunningham MR12935 Lot 9 Con 1 Cunningham Holmes licence of occupation L.J. Cunningham MR12936 Lot 9 Con 1 Cunningham Holmes licence of occupation L.J. Cunningham Lot 9 Con 2 Cunningham Holmes L.J. Cunningham
S part of Lot 8 Con 2 Cunningham Holmes L.J. Cunningham
N half of Lot 6 Con 2 Cunningham Holmes A. McLean
6.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND
PHYSIOGRAPHY
6.1 Access
The Cunningham and Sutton Properties are located along Highway 66, between the intersection of Highway 66 and Highway 11, and Matachewan. The Cunningham Property can be accessed following Holmes Lake Road, off Highway 66 to the north, approximately 30 km east of Highway 11.
The Sutton Property is located west of the Cunningham Property and can be accessed following the Separation Lake Road heading north from Highway 66, approximately 32 km from Highway 11. The Separation Lake Road crosses the southern boundary of the Sutton property at approximately 6 km north of Highway 66 (534949E, 5318985N).
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6.2 Climate and Vegetation
The Canadian Climate normals for 1971-2000 from Environment Canada (/www.climate.weatheroffice.gc.ca/climate_normals/) for Kirkland Lake (closest weather station to the property) indicate that the daily average temperature ranges from -17.1ºC in January to 17.8ºC in July. The highest average accumulation of rain for a month is 99.5 mm in September. The highest average accumulation of snow for a month is 68.7 cm in December. The highest average snow depth is 95 cm in March.
Drilling can be conducted year round, geological mapping and outcrop sampling can be conducted May to November when there is no snow on the ground.
6.3 Physiography
There are two main physiographic regions in Ontario, the Hudson Bay Lowland and the Canadian Shield regions. Ontario is primarily underlain by Precambrian rocks of the Canadian Shield however Phanerozoic sedimentary rocks developed in marine basins along the Shield border forming both the Hudson Bay lowlands and the Great Lakes. The Kirkland Lake area is at the cusp of these two regions but generally considered to be part of the Hudson Bay lowlands physiographic region. The lowland region can be further divided into its northwest and southeast regions by the northeast trending Transcontinental Arch (Thurston et al 1991; Singer and Cheng 2002).
Poor drainage and slow rate of plant decay caused by the cold climate have led to the development of peat. The region is a vast swampy area covered by Quaternary deposits on top of flat-lying Paleozoic and Mesozoic sedimentary rocks. A distinct topographic feature of the lowland is the Sutton Inlier with consists of southeast trending ridges of Archean and Proterozoic bedrock (Singer and Cheng 2002).
6.4 Infrastructure and Local Resources
Both properties are located between Kirkland Lake and Matachewan, which are both current mining centres and are able to supply a variety of resources for exploration and potential mining activity (Figure 6-1). The population of Kirkland Lake is 8,248 people and the population of Matachewan is 375 people as of 2006 (Statistics Canada, www.statcan.gc.ca).
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Figure 6-1 Infrastructure map of the Cunningham and Sutton Properties
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 22 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. There are four hydroelectric stations near Kirkland Lake: Lower Sturgeon, Sandy Falls, Wawaitin, west of Kirkland Lake and Indian Chute, south of Kirkland Lake (http://www.opg.com/power/hydro/northwest_plant_group/). A power line runs approximately parallel to Highway 66, which is located 0.5 km from the southern border of Cunningham and approximately 3 km from the southern border of Sutton.
There are several large lakes on the properties including Holmes Lake, Galer Lake, Dixon Lake, Tully Lake, Cowie Lake, Geraldine Lake, Bures Lake, Kincaid Lake and Golub Lake.
The Cunningham and Sutton Properties are in the exploration stage and do not yet have 43-101 compliant resource/reserve or a prefeasibility study; therefore, discussion on potential tailings storage areas, potential waste disposal areas, heap pad leach pad areas and potential processing tailings storage area for mining operations is not relevant.
7.0 HISTORY
The following summary of historic exploration activities is based on published reports, internal reports, drill logs and assessment files that were available to the author (Table 7-1). Historical drilling on the Cunningham and Sutton Properties is summarized in Table 7-2 and shown on Figure 7-1.
Table 7-1 List of exploration work on the Property in chronological order Assessment file Owner Year Work type Area number magnetometer, VLF-EM survey, 4.3 Texasgulf SW Sutton Property, N part of WKM 42A02SE8425 1975 miles of line cut, 300 ft line spacing, Canada claim 4241313 100 ft station interval Sheedy and Brookbank Property, SW Sutton, S 42A02SE0020 1977 stripping, EM, 13.78 miles of line cut King part of WKM claim 4241314 Sheedy and Brookbank Property, SW Sutton, S 42A02SE8413 1977 stripping, trenching King part of WKM claim 4241314 Sheedy and Brookbank Property, SW Sutton, S 42A02SE8415 1977 stripping, EM, same as above? King part of WKM claim 4241314 geology, geophysics (EM), drilling, Brookbank Property, SW Sutton, S Minorex 42A02SE0017 1978 trenching, assays part of WKM claim 4241314 Brookbank Property, SW Sutton, S Minorex 42A02SE8874 1978 drilling part of WKM claim 4241314 soil sampling, magnetic, VLF-EM, self G.L. Taman 42A02SE0012 1979 N part of WKM claim 4241313 potential survey G.L. Taman 42A02SE8877 1979 magnetic, VLF and self potential survey N part of WKM claim 4241313 G.L. Taman 42A02SE8878 1979 trenching, sampling, assays N part of WKM claim 4241313 Sheedy and Brookbank Property, SW Sutton, S 42A02SE8907 1980 magnetic and VLF-EM survey King part of WKM claim 4241314 G.L. Taman 42A02SE0013 1980 geological survey, sampling and assays N part of WKM claim 4241313
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Assessment file Owner Year Work type Area number G.L. Taman 42A02SE8879 1980 maxmin EM survey N part of WKM claim 4241313 Rio Tinto 42A01SW0063 1980 line cutting, magnetic and VLF survey
Sheedy and Brookbank Property, SW Sutton, S 42A02SE0014 1981 drilling King part of WKM claim 4241314 WKM claims 843409, 843410, Cunningham 42A01SW0062 1982 geological survey 843697 to 99, 4202821, 1221654 WKM claim 4241313, N of claim I.J. Dea 42A02SE0010 1984 geological and geochemical survey 4258183 Billiton 42A01SW0057 1984 regional quaternary study, RC drilling regional Rio Algom WKM claims 738529, 738530, 42A01SW0061 1985 EM and magnetic survey Expl 738532 Rio Algom WKM claims 738529, 738530, 42A02SE0263 1985 drilling Expl 738532 WKM claims E of Tully Lake and helicopter-borne geophysical survey Falconbridge 42A01SW0056 1986 claims 843409, 843410, 843697 to (EM) 99, 4202821, 1221654 WKM claims 4255399, 4201344, Falconbridge 42A02SE0009 1986 line cutting, geophysical survey (VLF) 4241313, 4241314 Falconbridge 42A02SE0008 1987 geochemistry WKM claim 4241314 Horton 42A01SW0054 1987 airborne magnetic and VLF survey WKM claim 1222584, M2 Zone area
Cunningham 42A01SW0052 1989 drilling WKM claim 843410 Hanson 42A02SE0007 1989 drilling WKM's SW Sutton claims Abel Lake Property, M2 Zone, Pamorex 42A01SW0055 1989 drilling Boundary Zone Abel Lake Property, M2 Zone, Pamorex 42A01SW5078 1989 stripping Boundary Zone
Pamorex 42A01SW0053 1989 drilling M2 Zone Sutton- 42A02SE0004 1989 drilling, assays WKM's SW Sutton claims Hanson Pamorex 42A02SE0006 1990 drilling WKM claim 843699 Sutton- 42A02SE0001 1990 IP survey WKM's SW Sutton claims Hanson Sutton- 42A02SE0003 1990 trenching, sampling, assays WKM's SW Sutton claims Hanson Sutton- 42A02SE8876 1990 IP survey, same as above? WKM's SW Sutton claims Hanson Abel Lake, Cunningham, Macham Pamorex 42A01SW0050 1991 drilling, trenching, geology, assays Properties, includes all WKM claims Sutton- IP survey, mag, geology, trenching, 42A02SE0002 1991 WKM's SW Sutton claims Hanson sampling Sutton- 42A02SE0005 1991 trenching, assays WKM's SW Sutton claims Hanson Sutton- 42A02SE8875 1991 drilling WKM's SW Sutton claims Hanson Sutton- 42A02SE8880 1991 drilling, same as above? WKM's SW Sutton claims Hanson Sutton- 42A02SE0022 1992 drilling WKM's SW Sutton claims Hanson Sutton- 42A02SE0016 1993 drilling WKM's SW Sutton claims Hanson Sutton- 42A02SE0018 1993 magnetometer WKM's SW Sutton claims
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Assessment file Owner Year Work type Area number Hanson Sutton- 42A02SE0026 1993 drilling WKM's SW Sutton claims Hanson WKM claims 843409, 843410, Cunningham 42A01SW0002 1994 mapping, prospecting, report 843697 to 99, 4202821, 1221654, 843700 WKM claims 843409, 843410, 42A01SW2001/ Cunningham 1994 drilling, sampling, report 843697 to 99, 4202821, 1221654, 42A02SE0024 843700
Cunningham 42A01SW0009 1995 line cutting, trenching, sampling W of Bures Lake Sutton- 42A02SE0033 1995 drilling WKM's SW Sutton claims Hanson WKM claims 843697, 843700, and Cunningham 42A01SW0016 1996 stripping, trenching dispositions MR7788, MR6222 Denis Brookbank and Jean's Pond Chartre and 42A02SE0054 1996 stripping, sampling, mapping, reporting Properties, WKM claim 4241314 R. Dufresne line cutting, magnetic, EM, Fekete 42A02SE2004 1996 WKM claims 4255399, 4201344 IP/resistivity, prospecting, trenching
INMET 42A01SW0015 1996 rregional ground magnetic survey regional
INMET 42A01SW0017 1996 IP survey regional Sutton- 42A02SE0055 1997 trenching WKM's SW Sutton claims Hanson Aquistar 42A02SE0052 1997 geophysical survey (IP survey) WKM's SW Sutton claims Aquistar 42A02SE2003 1997 geophysical survey (magnetometer) WKM's SW Sutton claims Bice Chartre-Dufresne Property, WKM Ventures 42A01SW0018 1997 geophysical survey (IP survey) claim 4241314 Corp Teck 42A01SW0019 1997 mapping, line cutting
N part of Cunningham form M2 Zone Teck 42A01SW0022 1997 VLF-EM and magnetic surveys to S of Willard Lake, along Kincaid fault Teck 42A01SW2014 1997 sampling, geochemistry around Boundary Zone, Lot 8 Con 2 Teck 42A02SE0047 1997 stripping, sampling NW of Tully Lake Bice Ventures 42A02SE2009 1998 geophysical survey (IP survey) SW Sutton claims Corp N part of Cunningham form M2 Zone Teck 42A01SW2003 1998 IP survey to S of Willard Lake, along Kincaid fault report, line cutting, gological mapping, Teck 42A01SW2011 1998 includes all WKM claims stripping, geophysics Sutton- 42A02SE2001 1999 drilling WKM's SW Sutton claims Hanson Cunningham 42A01SW2023 2003 stripping M2 Zone
WKM claims 1248771, 1248772, Cunningham 42A01SW2025 2004 prospecting, research 1248774 and 1222584 Newstrike 2.3113 2005 trenching, geology, sampling E of Bures Lake Newstrike 2.31674 2005 drilling W and S of Bures Lake
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Assessment file Owner Year Work type Area number Cunningham 2.4142 2009 summary of drilling, assays, report includes all WKM claims
Table 7-2 List of historical drill holes on the Cunningham and Sutton Properties. Locations are approximate. Missing information was not available to the author. Drill hole Depth Company Year Easting Northing Azimuth Dip number (m) S1 McIntyre 536893 5318930
LOKI-1 Loki Mines 1946 538626 5320786
LOKI-10 Loki Mines 1946 536886 5318987
LOKI-11 Loki Mines 1946 536886 5318987
LOKI-11a Loki Mines 1946 536886 5318987
LOKI-12 Loki Mines 1946 536901 5318981
LOKI-13 Loki Mines 1946 536854 5318990
LOKI-14 Loki Mines 1946 536854 5318990
LOKI-15 Loki Mines 1946 536854 5318990
LOKI-2 Loki Mines 1946 538688 5320742
LOKI-3 Loki Mines 1946 538598 5320683
LOKI-4 Loki Mines 1946 538575 5320669
LOKI-5 Loki Mines 1946 538541 5320682
LOKI-6 Loki Mines 1946 536850 5318932
LOKI-7 Loki Mines 1946 536862 5318956
LOKI-8 Loki Mines 1946 536878 5319157
LOKI-9 Loki Mines 1946 536845 5319161
78-4 Minorex 1978 535727 5318429 97.87 180 -45 78-5 Minorex 1978 535674 5318319 96.34 180 -45 79-1 Minorex 1979 536587 5319108
79-2 Minorex 1979 536197 5318651
79-3 Minorex 1979 536197 5318830
79-5 Minorex 1979 536195 5318307
C-1 Rio Tinto 1980 538306 5317881
C-1 Rio Tinto 1980 538724 5320723
C-2 Rio Tinto 1980 538127 5317857
C-2 Rio Tinto 1980 538649 5320698
C-3 Rio Tinto 1980 538258 5320958
C-3 Rio Tinto 1980 538692 5318069
C-4 Rio Tinto 1980 538334 5320992
C-5 Rio Tinto 1980 538255 5321144
C-6 Rio Tinto 1980 538236 5319787
C-7 Rio Tinto 1980 538391 5320943
C-8 Rio Tinto 1980 538327 5321030
C-9 Rio Tinto 1980 538455 5321081
1 Rio Algom 1985 538344 5317660 145.12 180 -50 2 Rio Algom 1985 538154 5317692 185.31 180 -47
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Drill hole Depth Company Year Easting Northing Azimuth Dip number (m) 3 Rio Algom 1985 538669 5317919 190.85 180 -45 HT89-02 Pamorex 1989 540563 5320797 172.26 330 -45 HT89-03 Pamorex 1989 540621 5320805 181.40 360 -45 HT89-13 Pamorex 1989 540563 5320797 199.70 330 -65 HT89-14 Pamorex 1989 540543 5320833 89.94 330 -45 HT89-15 Pamorex 1989 540514 5320830 92.99 360 -45 HT89-16 Pamorex 1989 540555 5320803 178.96 360 -65 HT89-17 Pamorex 1989 540578 5320801 184.76 360 -81 HT89-18 Pamorex 1989 540578 5320801 133.23 360 -55 HT89-19 Pamorex 1989 540548 5320799 227.74 360 -74 HT89-20 Pamorex 1989 540732 5320834 133.23 360 -45 HT89-23 Pamorex 1989 540528 5320855 124.09 0 -90 HT89-12 Pamorex 1989 537844 5320405 137.20 360 -45 T. A. Hanson/M. 1 1989 535836 5318898 54.86 190 -44 Sutton T. A. Hanson/M. 2 1989 535782 5318860 10.76 177 -45 Sutton T. A. Hanson/M. 3 1989 535952 5319435 88.09 160 -47 Sutton T. A. Hanson/M. 4 1989 535906 5319411 155.00 170 -45 Sutton HT89-12 L.J. Cunningham 1989 537889 5320368 0.00 0 0 HT89-01 Pamorex 1989 537236 5319470
HT89-09 Pamorex 1989 538604 5320304
HT89-10 Pamorex 1989 538673 5320271
HT89-11 Pamorex 1989 538739 5320304
HT89-21 Pamorex 1989 540172 5321028
HT89-22 Pamorex 1989 540125 5320957
HT90-1 Pamorex 1990 537164 5321160 172.87 180 -45 90-01 Pamorex 1990 536908 5320577 172.90 210 0 H1-91 M. Sutton 1991 535993 5318989 16.16 353 -50 H2-91 M. Sutton 1991 535718 5319214 25.12 171 -50 H3-91 M. Sutton 1991 535929 5319445 16.64 358 -50 H4-91 M. Sutton 1991 536021 5319406 22.43 178 -50 H5-91 M. Sutton 1991 535200 5319063 24.40 360 -50 H1-91 M. Sutton 1991 535862 5319446 16.76 353 -50 H2-91 M. Sutton 1991 535596 5319878 28.56 171 -50 H3-91 M. Sutton 1991 535596 5319898 16.64 358 -50 H4-91 M. Sutton 1991 535596 5319878 22.43 178 -50 H5-91 M. Sutton 1991 535041 5319438 7.44 360 -50 H1-92 M. Sutton 1992 536037 5319059 19.82 170 -50
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Drill hole Depth Company Year Easting Northing Azimuth Dip number (m) H2-92 M. Sutton 1992 536086 5319061 29.44 130 -50 H3-92 M. Sutton 1992 536332 5319252 24.95 184 -50 H4-92 M. Sutton 1992 536314 5319316 27.21 184 -50 H1-93 M. Sutton 1993 536341 5319260 19.66 184 -73 H2-93 M. Sutton 1993 535914 5319555 6.28 176 -50 H3-93 M. Sutton 1993 535914 5319555 7.86 176 -75 H4-93 M. Sutton 1993 536007 5319596 16.25 180 -50 H5-93 M. Sutton 1993 535843 5319593 25.45 163 -40 93-03 L.J. Cunningham 1993 536908 5320577 153.90 330 -45 93-1 L.J. Cunningham 1993 537005 5321199 1656.40 330 -45 S95-1 M. Sutton 1995 535878 5319609 137.20 337 -50 S95-2 M. Sutton 1995 536011 5319562 61.10 4 -45 NS-05-01 Newstrike 2005 538517 5320835 590 298 -45 NS-05-02 Newstrike 2005 538420 5320670 433 118 -45 NS-05-03 Newstrike 2005 538320 5321076 434 300 -45 NS-05-04 Newstrike 2005 538598 5320574 457 140 -45 NS-05-05 Newstrike 2005 540433 5320980 99 340 -45 NS-05-06 Newstrike 2005 540433 5320980 145 25 -75 NS-06-01 Newstrike 2006 538517 5320835 197 0 -45 NS-07-01 Newstrike 2007 538525 5320794 335 0 -65 NS-07-02 Newstrike 2007 538320 5321076 311 120 -60
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Figure 7-1 Location of historical drill holes on the Cunningham and Sutton Properties. The location of drill collars is approximate.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 29 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. 7.1 Texasgulf Canada
In September to December, 1975, Texasgulf Canada conducted a magnetometer and a very low frequency electromagnetic (VLF-EM) survey on claims L-410149, L-426625, and L-426629 (MNDMF Assessment File 42A02SE8425). Some weak VLF crossovers in the west were deemed to be of interest for further prospecting.
7.2 Sheedy and King
In 1977, claim holders Robert Sheedy and Henry King conducted stripping, trenching, and an electromagnetic survey on claims L475656, L476442, L476475, L476476, and L476452-3 – also referred to as the Brookbank property (MNDMF Assessment Files 42A02SE0020, 42A02SE8413, 42A02SE8415). Several areas of high conductivity were identified by the EM survey as targets for further exploration. Stripping proved difficult, as overburden was deeper than expected, and most attempts were abandoned. A few anomalous zones were cleared to bedrock and revealed mineralization consisting of gold, galena bearing silver, zinc, chalcopyrite, and bornite hosted in a fine-grained syenite. A sample of the main vein – the Brookbank showing, a 5-15 cm chalcopyrite, galena, and argentite-bearing quartz vein – returned results of 0.416 oz/t (11.79 g/t)Au, 20.80 oz/t (589.68 g/t) Ag, 16.72 % Cu, and 10.46 % Pb.
In 1980, Sylva Explorations Limited conducted magnetic, VLF-EM, and self-polarization surveys for Robert Sheedy and Henry King on the Brookbank property (MNDMF Assessment File 42A02SE8907). Although the surveys determined that the property is mafic near the periphery if the syenite stock and more siliceous towards the centre, and suggested the presence of a fault, no definite conclusions were drawn.
In 1981, one diamond drill hole (BB-1, 102 ft (31.09 m)) on the Brookbank property was drilled by Sylva Explorations for Robert Sheedy and Henry King (MNDMF Assessment File 42A02SE0014). The hole tested a strong VLF crossover and a SP (Self Potential) anomaly which flanked it. A major fault was encountered causing very low core recovery and the hole was abandoned at ~31m.
7.3 Minorex
In 1978, the Brookbank property consisted of 47 contiguous claims and was optioned to Minorex Limited. Minorex conducted a Turam EM survey, surface trenching, and a 1709 feet (520m) diamond drilling program in July through August (MNDMF Assessment Files 42A02SE0017, 42A02SE8874). The EM survey outlined areas of massive sulphide mineralization. Trenching revealed that clay
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 30 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. overburden was conductive, which may cause false EM readings. Seven holes (78-1 to 78-7) were drilled and returned low grade silver in the andesite flows, but failed to outline any ore grade material. The highest assay returned results of 0.008 oz/t (0.23 g/t) Au, 0.02 oz/t (0.57 g/t) Ag, 0.07 % Cu, and trace levels of Zn and Pb over 2 m.
7.4 G.L. Taman
In 1979-1980, Sylva Explorations Limited conducted soil sampling, magnetic, VLF-EM, and self- polarization surveys as well as a minor stripping program for G.L. Taman on the Group of Seven property (MNDMF Assessment Files 42A02SE0012, 42A02SE8877, 42A02SE8878, 42A02SE0013, 42A02SE8879). A weak EM response south of the fault, a promising showing, and a strong conductor which lies beneath the lake in the middle of the property were all identified as potential drilling targets. Strip sampling returned a best assay result of 1.6 oz/t (45.36 g/t) Au.
7.5 Rio Tinto
Between 1979 and 1981, Rio Tinto Canadian Exploration Limited (Riocanex) optioned 44 claims and performed line cutting, mapping, and geological surveys (MNDMF Assessment File 42A01SW0063).
From May 1979 to March 1980, Riocanex performed work on nine mineral claims designated the Cunningham claims. The work included a magnetometer, VLF, and geological mapping surveys. The presence of magnetically active dykes distorted any possible correlation with localized gold bearing rocks. The VLF survey indicated conductive targets in Geraldine Lake, near Tully Lake and west of Cowie Lake.
In 1982, a geological report on the Cunningham property was filed by Lee Cunningham on behalf of Riocanex (MNDMF Assessment File 42A01SW0062).
Assessment files from Cunningham in 1994 state that Rio Tinto drilled six holes (C-3 to C-9) in 1980, which returned 3-5% sulphide mineralization and low grade gold mineralization, however total meterage and specific assay results are not included in the report (MNDMF Assessment File 42A01SW0009).
7.6 Billiton
In 1984, Billiton completed a regional exploration program on quaternary stratigraphy and the applicability of reverse circulation (MNDMF Assessment File 42A01SW0057).
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7.7 Horton
In 1987, Ferderber Geophysics completed an airborne magnetic and VLF survey on the property of Horton (MNDMF Assessment File 42A01SW0054). The survey was successful in outlining the geology and structures and two conductive zones on the property. The conductive zones were interpreted to represent shear zones.
7.8 Cunningham
In 1993, one drill hole (93-1; 505 ft (153.9 m)) was drilled on the Cunningham property which tested the Kincaid Fault and was determined to mark the boundary between the Timiskaming Group rocks to the south and the local syenite of the Holmes Stock to the north (MNDMF Assessment File 42A01SW2001). Geological mapping was also conducted. No assay results were reported.
In 1995, prospecting and mapping were conducted on the Cunningham property. Eight trenches were also dug and sampled (MNDMF Assessment File 42A01SW0009). Stripping and sampling continued in 1996, with nine trenches dug in November (MNDMF Assessment Files 42A01SW0016, 42A02SE0042). No assay results were reported.
In September 2003, L.J. Cunningham and Blaine Vallier prospected on claims L248771, L248772, L248774, and L222584 (Lot 5, Con II, Holmes Township) (MNDMF Assessment File 42A01SW2025). A report on the prospecting results, released in 2004, recommended additional stripping of the Galer, Abel Creek, and Kincaid faults, as well as a heterolithic breccia.
In October 2003, the digging of two trenches and stripping was completed to expose the Kincaid Fault (MNDMF Assessment File 42A01SW2023). No assays were reported.
7.9 Ivan J. Dea
In August 1984, D. Pyke and K. Cunnison performed a geological and geochemical survey on 4 claims in the Holmes Township: Group 1 (claims L641644 and L750778) and Group II (claims L750776 and L750777) (MNDMF Assessment File 42A02SE0010). The claim groups are largely underlain by syenite and generally returned low gold assays. The two best samples from Group I, taken from narrow fractures in the syenite and containing disseminated pyrite mineralization, returned values of 3700 ppb (3.7 g/t) and 4800 ppb (4.8 g/t) Au. One sample from Group I contained 518 ppm (518 g/t) Cu. The best gold assay from Group II was 160 ppb (0.16 g/t) Au.
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7.10 Rio Algom Exploration
In the fall of 1985, 12 claim groups optioned by Rio Algom Exploration Inc., straddling the Holmes Township and Flavelle Township boundary line, were surveyed by VLF-EM, magnetometer, and selective IP (MNDMF Assessment File 42A01SW0061). Detailed geological mapping and extensive stripping was also performed. The Beaverpond showing was identified as a target for further surveying and follow-up drilling.
In November and December, 1985, Rio Algom drilled 3 holes (1 to 3) totaling 1710 ft (521.21 m) east of Holmes Lake, in the southern part of the Cunningham claims (MNDMF Assessment File 42A02SE0263). The drill holes intersected mostly mafic metavolcanics and syenite with minor amounts of disseminated pyrite. No assay results were reported.
7.11 Falconbridge
In September 1986, Larder Lake Mining Division performed a line-cutting and VLF geophysical program for Falconbridge Limited in the Holmes and Alma Townships (MNDMF Assessment File 42A02SE0009). The survey successfully identified seven anomalies around the northwestern corner of the Cunningham Property that were deemed worthy of further exploration.
In February 1986, Geophysical Surveys Inc. performed a helicopter-borne EM geophysical survey for Falconbridge in the Holmes, Flavelle, and Cairo townships (MNDMF Assessment File 42A01SW0056). No anomalies were identified.
Geochemical sampling performed in August 1987 returned an anomalous assay result of 189 ppb (0.189 g/t) Au (MNDMF Assessment File 42A02SE0008). All other samples returned values of 2-6ppb (0.002- 0.006 g/t) Au.
7.12 Pamour Porcupine Mines / Pamorex Minerals
In August 1989, one hole (HT-89-12) was drilled on the Cunningham property by Pamour Porcupine Mines Limited (MNDMF Assessment File 42A02SE0006). The 450 ft (137 m) hole encountered entirely mafic volcanic tuffs.
In 1989, a 6620 ft (2018 m), 13-drill hole diamond drilling program was performed on the M2 showing and returned a best assay result of 0.296 oz/t (8.39 g/t) over 22 ft (6.7 m) in hole HT89-02 (MNDMF Assessment File 42A01SW0055).
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 33 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. In October and November 1989, Pamorex Minerals Inc. drilled 8 holes (HT89-14 through HT89-23) totalling 3821 ft (1165 m), on claim 917387 (MNDMF Assessment File 42A01SW0053). No assay results were reported.
A 567 ft (173 m) hole (HT-90-1) was drilled from February to March 1990 on claim L843697 (MNDMF Assessment File 42A02SE0006). Two samples were taken in syenite, but no assays were reported. Between June and July 1990, limited trenching and channel sampling was performed 1500 ft (457 m) west of the M2 showing, returning a best value of 216 ppb (0.216 g/t) Au (MNDMF Assessment File 42A01SW0050).
7.13 Sutton-Hanson
Eighteen claims in the southwestern part of Holmes Township were held by Sutton-Hanson Group, with financial assistance for performance of assays provided by American Barrick Resources Corporation.
Receipt for 2 assays performed for Mike Sutton in June 1988 exists. However, record of the assays themselves cannot be found. In September 1989 one sample was analyzed from Galer Road Pit and returned a result of 0.396 oz/t (11.23 g/t) (MNDMF Assessment File 42A02SE0003). In October through December 1989, assays performed on rock samples collected in the claims block returned best results of 4.03 g/t.
Four holes (1-4), totaling 824 ft (251 m), were drilled in December 1989 on claims 1048456 and 1048455 in Holmes Township (MNDMF Assessment File 42A02SE0004). Best results returned assays of 1g/t over 2.26 m in hole 2 and 0.7g/t over 4.4 m in hole 4.
In July 1990, an IP survey was conducted by Exsics Exploration Limited for the Sutton-Hanson Group on the Holmes property (claims L1047208, L1047209, L1047198, and L1048455-L1048458) (MNDMF Assessment File 42A02SE0001). Three weak to moderate anomalies were identified that were deemed worthy to additional exploration. Follow-up work on these claims continued through summer 1991. A magnetometer survey, trenching, sampling, and geological analysis were all performed (MNDMF Assessment Files 42A02SE0003, 42A02SE8876, 42A02SE0002, 42A02SE0005). A total of 27 trenches were dug. Best gold assay results were from Trench 6, returning 2.95 g/t over 0.3 m, followed by Trench 5 with 1.55 g/t over 0.3 m.
In September and October 1991, a total of 301.3 ft (92 m) were drilled over five holes (H1-91 to H5-91) on claims 1048456, 1047209, and 641611 (MNDMF Assessment Files 42A02SE8875, 42A02SE8880).
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 34 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. The best gold assay returned 0.054 oz/t (1.53 g/t) over 4.8 m in hole H2-91.
In 1992, four diamond drill holes (H1-92 to H4-92) were drilled on the Galer Lake Fault, totaling 333 ft (101 m) (MNDMF Assessment File 42A02SE0026). The best assay returned 0.84 g/t over 1.4 ft (0.4 m) in hole H1-92. Follow-up drilling in 1993 (holes H1-93 to H5-93) totaled 248 ft (75.6 m) (MNDMF Assessment Files 42A02SE0016, 42A02SE2001). A cherty vein intersected in hole H2-93 was well mineralized and assayed 1.31 g/t Au over 0.5 m. Hole H5-93 returned values of 1.3 g/t Au over 5.5 m. A magnetometer survey was also conducted in 1993 (MNDMF Assessment File 42A02SE0018). The survey defined three east-west trending structures that were identified as the Galer Lake Break, the Sutton Break and a structure between the two breaks.
In late October and early November 1993, 650 ft (198 m) was drilled over two diamond drill holes (S-95- 1 and S-95-2) (MNDMF Assessment File 42A02SE0033). Best gold assays returned 2.5 g/t over 0.4 m in S-95-1 and 1.14 g/t over 0.5 m in S-95-2.
Trenching was conducted in 1997 to determine the location of the proposed Sutton Break, 1800-2300 ft (549-701 m) north of the Galer Lake Break (MNDMF Assessment File 42A02SE0055). A total of 16 trenches were dug. The best assay results were 2.04 g/t Au from Trench #4 and 1.34 g/t Au and 1210 g/t Pb over 0.3 m in Trench #6.
7.14 Jeanette Lourim
In 1995, six basal till samples were collected from the Half-Moon Lake Property in Holmes Township (MNDMF Assessment File 42A01SW0008). The samples were collected for microscopic analysis of heavy minerals and microprobe potential of kimberlite indicator minerals. The highest gold assay from all samples was 14 ppb (0.014 g/t). Further work was recommended.
7.15 INMET
In 1996, INMET conducted a regional ground magnetic survey and an IP survey that included most of the Cunningham and Sutton Properties (MNDMF Assessment Files 42A01SW0015, 42A01SW0017)
7.16 Denis Chartre and Roger Dufrense
In July to October 1996, the Brookbank and Jean`s Pond Properties (claims 1046649-1046651 and 1096958-1096960), in Flavelle Township, were prospected (MNDMF Assessment File 42A02SE0054).
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 35 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Work included stripping, trenching, mapping, and sampling. The highest assay result was 0.182 oz/t (5.16 g/t) Au and 8.24 oz/t (233.6 g/t) Ag from a quartz vein found in syenite at the Brookbank showing.
7.17 Mark Fekete
Between July and November 1996, Mark Fekete conducted line-cutting, magnectic and VLF-EM surveys, an IP survey, several days of prospecting, and excavated four trenches on the Holmes Property (MNDMF Assessment File 42A02SE2004). Additional geophysical surveys were recommended to determine suitable diamond drilling targets. The syenite-volcanic contact was identified by the magnetic survey. Also, several electromagnetic and coincident chargeability anomalies were located along the contact. Several other geophysical anomalies were also located north of the syenite-volcanic contact. Drilling was proposed to follow up the geophysical targets.
7.18 Aquistar
In May 1997, Quantec IP Incorporated conducted a gradient IP and resistivity survey on the Sutton Property on behalf of Aquistar Ventures Corporation (MNDMF Assessment File 42A02SE0052). Twelve IP anomalies were identified, including an area east of Tully Lake and possibly the Brookbank showing.
In August and September 1997, John R. Poloni conducted a magnetometer survey of the Sutton Property on behalf of Aquistar Ventures Incorporated (MNDMF Assessment File 42A02SE2003). The survey identified three areas of massive highs and a magnetic low interpreted as the Galer Lake-Fort Matachewan fault zone.
7.19 Bice Ventures Corporation
In April 1997, Quantec IP Incorporated conducted a gradient IP and resistivity survey on the Chartre- Dufresne Property on behalf of Bice Ventures Corporation (MNDMF Assessment File 42A01SW0018). The survey identified numerous anomalies that were deemed worthy for follow up exploration work.
In May 1998, Quantec IP Incorporated conducted a follow-up gradient IP and resistivity survey on the Chartre-Dufresne Property on behalf of Bice Ventures Corporation in order to produce gradient real sections (MNDMF Assessment File 42A02SE2009).
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7.20 Teck Exploration Limited
In May 1997, mechanical stripping and chip sampling was conducted on claims 1180158, 1180159, and 1213844 in the Holmes Township (MNDMF Assessment File 42A02SE0047). Six trenches were dug and sampled. Small shears in syenite returned the best assay results of 276 ppb (0.276 g/t) Au. Feldspar porphyritic dykes returned values up to 760 ppb (0.76 g/t) Au over 2.0 m.
Between June and October 1997, line cutting as well as geological mapping and sampling was conducted across the Holmes-Flavelle property, consisting of the Abel Lake Resources option and the Cunningham option (MNDMF Assessment File 42A01SW2011, 42A01SW0019).
In September 1997, Val d’Or Sagax Inc. performed a combined magnetic and VLF-EM survey over the Abel Lake property on behalf of Teck Exploration Ltd in order to locate lithological and structural features favourable to gold or base metal mineralization (MNDMF Assessment File 42A01SW0020). A northeast-southwest trending magnetic high and a small conductor were identified, but no valuable exploration targets were created.
In October 1997, a second magnetic and VLF-EM survey was performed over the Abel Lake property as well as the Cunningham property (MNDMF Assessment File 42A01SW0022). The magnetic survey identified several magnetic lineaments, 5 faults and some magnetic highs, and the VLF survey identified some resistive zones and several conductive zones of unknown nature.
In February and March 1998, Val d’Or Sagax Inc. performed an IP survey over the Cunningham and Abel Lake properties on behalf of Teck Exploration (MNDMF Assessment File 42A01SW2003). The survey detected several anomalies characterized by weak to moderate chargeability usually associated with high resistivity features. Detailed geological mapping was recommended.
From February to October 1998, trench sampling was conducted along the Kincaid Fault and at the M2 showing (MNDMF Assessment File 42A01SW2014). No new areas of gold mineralization were found.
In September 1998, Horizontal Loop EM (MaxMin) surveys were carried out on the Abel Lake option by Gérard Lambert Géosciences on behalf of Teck (MNDMF Assessment File 42A01SW2002). The purpose of the work was to detect the presence of metallic mineralization, but no conductive concentrations were observed using this method.
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7.21 Brigadier Gold Limited
In March 2004, JVX Ltd. conducted Spectral IP/Resistivity surveys on the Chartre-Dufresne property in order to locate gold mineralization associated with quartz in and near structural deformation zones (MNDMF Work Report 20001115). Three zones – the Northern, Central, and Southern zones – were located and 14 targets were identified for further exploration.
7.1 Newstrike
In 2005, drilling and stripping was performed by Newstrike (MNDMF Work Reports 20006301, 2.31133, 2.31674). Best gold assays of sample cuts returned 14 g/t over 0.5 m and 6.0 g/t over 0.5 m. Newstrike drilled hole 06-01 in 2006 and encountered 3.1 g/t Au over 1 m, including 5.2 g/t Au over 0.5 m, hosted in a feldspar porphyry dyke with 50-100% fractured massive pyrite. In 2007, Newstrike drilled two holes, 07-01 (335 m) and 07-02 (311 m). Best assay results for 07-01 ran 1022 ppb (1.022 g/t) Au over 0.5 m in a heavily pyritic sample. This work is also summarized by Cunningham in a report in 2009 (Work Report 2.41420)
8.0 GEOLOGICAL SETTING AND MINERALIZATION
8.1 Regional Geology
The Property lies within the Abitibi Greenstone Belt, which is part of the Abitibi Subprovince of the Superior Province (Figure 8-1). The age of the Abitibi Subprovince is between 2.75 and 2.67 Ga (Jackson and Fyon, 1991).
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Figure 8-1 Location of the Abitibi Subprovince (from Jackson and Fyon 1991)
The Western Abitibi Subprovince, the Ontario part of the Abitibi Subprovince, is bounded by the Kapuskasing Structural Zone to the west, the sedimentary rocks of the Opatica Subprovince to the north, the sedimentary rocks of the Pontiac Subprovince and the Mesoproterozoic Grenville Province to the
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 39 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. southeast and the Paleoproterozoic Huronian Supergroup to the south (Jackson and Fyon, 1991; Ayer et al., 2005).
The rocks in the Western Abitibi Subprovince can be subdivided into (Jackson and Fyon, 1991; Figure 8-2):
1. komatiite-tholeiite assemblages with interflow iron formation
2. komatiite-tholeiite assemblages with felsic metavolcanic rocks
3. komatiite-tholeiite assemblages with no significant iron formation or felsic metavolcanic rocks
4. tholeiite assemblages characterized by alternating iron- and magnesium-rich units
5. tholeiite assemblages characterized by thick iron- or magnesium-rich units, or both
6. ultramafic to felsic metavolcanic rocks with iron formation
7. intermediate to felsic metavolcanic rocks
8. intermediate effusive metavolcanic rocks
9. turbiditic metasedimentary dominated rocks
10. alluvial-fluvial metasedimentary and alkalic metavolcanic dominated rocks
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 40 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc.
Figure 8-2 Regional geology of the Cunningham and Sutton Properties (after Percival and Easton 2007)
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 41 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Pre-cleavage folds, thrust faults and structures related to batholith emplacement are the oldest structures in the Western Abitibi Subprovince (Jackson and Fyon, 1991). This is followed by the development of regional shear zones and folds during and following the emplacement of batholiths and striking west to northwest and northeast. Thrust faults and steep reverse faults accompanied the shearing and folding.
The types of mineralization in the Western Abitibi Subprovince include: VMS (volcanic-associated massive sulphide) deposits, lode gold deposits, komatiite-associated Ni-Cu-PGE deposits and iron formations.
The Western Abitibi Subprovince contains the following domains: the Abitibi greenstone belt (including the Swayze greenstone belt); the Batchawana greenstone belt; the Benny, Hutton and Parkin greenstone belts and the Temagami greenstone belt (Jackson and Fyon 1991).
The Abitibi greenstone belt is subdivided into a northern belt and a southern belt (Jackson and Fyon 1991, Dimroth et al. 1983b). The northern belt is characterized by abundant tonalite-trondhjemite-granodiorite intrusions, large anorthosite complexes, lack of ultramafic flows and greenschist or higher grade of metamorphism. The southern belt consists of abundant ultramafic flows, fewer tonalite-trondhjemite- granodiorite intrusions and greenschist or lower grade of metamorphism.
8.1.1 Regional Mineralization
The Abitibi greenstone belt is one of largest and economically most productive greenstone belts in the world, with a historic production of 160 Moz of Au (Ayer and Trowell 2002, AuRico Gold webpage: http://www.auricogold.com). There are nine operating gold mines in the region around the Property (Figure 8-2). The two closest operating mines to the Cunningham and Sutton Properties include AuRico’s Young-Davidson Mine (~14.5 km to the southwest) and Kirkland Lake Gold’s Macassa Mine (~28.3 km to the northeast).
Macassa Mine
Gold mineralization at Macassa Mine occurs in Timiskaming sediments and intruding syenite and is typically associated with pyrite, locally with molybdenite and/or tellurides (Kirkland Lake Gold Inc. webpage: http://klgold.com/macassa.html).
Mineralization is hosted in the Main Break and ’04 Break, which are two major northeast-southwest trending deformational features located approximately 2 km northeast of the LCDZ (Kirkland Lake Gold Inc. webpage: http://klgold.com/macassa.html). The Main Break is interpreted to be a post ore structure
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 42 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. with a width of 1 to 20 feet marked by a mylonized and brecciated zone. The Main Break has produced 24 Moz (~746.4 Mg) of Au over 86 years, which represents 15% of total Canadian gold production as of 1999.
The ’04 Break was discovered in 1955 and is located 400 feet north of the Main Break (Kirkland Lake Gold Inc. webpage: http://klgold.com/macassa.html). The ’04 Break has been the most important ore- related structure at Macassa since the 1980’s.
As of December 31st, 2010, the Macassa Mine contains 532,000 ounces (16,545.2 kg) of Au in proven reserves and 932,000 ounces (28,985.2 kg) of Au in probable reserves.
Young-Davidson Mine
The Young-Davidson Mine is located along the LCDZ. Au mineralization at the Young-Davidson Mine is hosted in syenite and associated with stockworks of quartz veinlets and veins that are a few cm wide (AuRico Gold webpage: http://www.auricogold.com). Mineralization is characterized by the presence of pyrite and potassic alteration and extends beyond 1,500 m below surface.
8.2 Local Geology
8.2.1 Rock types
The Properties are underlain by Neoarchean supracrustal rocks composed of tholeiitic, calc-alkalic and alkali mafic, intermediate and felsic metavolcanic rocks; related subvolcanic intrusions, chemical and clastic metasedimentary rocks (Berger 2006) (Table 8-1; Figure 8-3). Ultramafic rocks are locally present. Supracrustal rocks are intruded by intermediate and felsic intrusions composed of quartz diorite, quartz monzonite, tonalite and granodiorite. The youngest Neoarchean intrusions in the area are composed of hornblendite, alkali gabbro, syenite, quartz syenite and alkalic granite.
Dikes of the Matachewan swarm of Paleoproterozoic age intrude Neoarchean rocks (Berger 2006, Osmani 1991). The Proterozoic Gowganda Formation of the Huronian Supergroup, composed of conglomerate, arkose, siltstone, argillite and wacke, unconformably overlies the Neoarchean rocks in the area (Berger 2006).
Table 8-1 List of geological units in the area (after Berger 2006)
Age Rock types Description
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Age Rock types Description
Paleoproterozoic Mafic intrusive rocks (Sudbury swarm) diabase dikes
Gowganda Formation (Huronian sandstone, arkose, conglomerate, wacke, Supergroup) argillite, siltstone
Mafic intrusions (Matachewan swarm) quartz diabase, plagioclase porphyritic diabase
Metamorphosed calc-alkalic intermediate tonalite, granodiorite, quartz monzonite, Neoarchean and felsic intrusive rocks gneiss, pegmatite, aplite dikes Metamorphosed alkalic felsic and syenite, monzonite, granite, porphyry, albitite, intermediate intrusive rocks gneiss Metamorphosed alkalic ultramafic and hornblendite, pyroxenite, melasyenite, mafic intrusive rocks lamprophyre, gabbro, diorite Metamorphosed tholeiitic ultramafic and peridotite, pyroxenite, gabbro, norite, diorite mafic intrusive rocks Alkalic metavolcanic and related intrusive massive amphibole and biotite-bearing flows, rocks - Timiskaming Assemblage tuff, flow breccia Clastic and chemical metasedimentary wacke, sandstone, arkose, siltstone, argillite, rocks - Timiskaming Assemblage conglomerate, chert, iron formation Clastic and chemical metasedimentary wacke, siltstone, argillite, chert, conglomerate rocks - Turbidites
Felsic metavolcanic rocks flows, flow breccia, tuff, breccia, lapilli tuff
massive and pillowed flows, breccia, tuff, Intermediate metavolcanic rocks lapilli tuff, feldspar porphyry massive and pillowed flows, breccia, tuff, Mafic metavolcanic rocks lapilli tuff Ultramafic and mafic metavolcanic rocks massive flows (Komatiites)
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 44 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc.
Figure 8-3 Local geology map of the Cunningham and Sutton Properties (after Berger et al., 2006)
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All Neoarchean supracrustal rocks display foliation around the granitic intrusions (Berger 2006). Down- dip mineral and stretching lineations locally accompany the foliation planes. Intrusion related faults are also present around some batholiths (Harrap and Helmstaedt 1992).
The east-west trending Larder Lake – Cadillac deformation zone (LCDZ), characterized by dextral movement and a small amount of south-side up movement, runs approximately 1 km south of the Property (Berger 2006). In Holmes and Flavelle townships the LCDZ is covered by younger sediments of the Gowganda Formation. In Eby Township the LCDZ is over 450 m wide and is characterized by brittle and ductile features and the presence of 2 foliations.
Several east-striking faults and shear zones, including the Galer Lake fault, Kincaid fault and Wiley Lake fault, occur on the area that are splays off the LCDZ (Berger 2006). The Cross Lake Fault is one major north-south trending faults in the area.
In Cairo Township there is evidence for at least two generations of folding (Berger 2006). The second generation of folding is represented by a synformal anticline with an easterly striking fold axis.
8.2.3 Metamorphism
Supracrustal rocks are characterized by contact metamorphic aureoles around granitic plutons overprinted by regional greenschist facies metamorphism (Berger 2006). The grade of contact metamorphism is up to amphibolite facies. The regional metamorphism occurred after the intrusion of batholiths and the deposition of the Timiskaming metasedimentary rocks, but before the deposition of the Proterozoic Gowganda Formation, which is characterized by very low grade metamorphism.
8.3 Property Geology
8.3.1 Rock types
Mafic metavolcanic rocks
Mafic metavolcanic rocks are composed of massive and pillowed flows, pillow breccia, tuff and lapilli tuff and mafic schist (Berger et al., 2006). They are affected by amphibolite facies contact metamorphism in proximity of younger plutons. The composition of mafic metavolcanic rocks ranges from Mg-rich to Fe-rich, low K-tholeiite.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 46 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Intermediate metavolcanic rocks
Intermediate metavolcanic rocks are composed of tuff breccia, lapilli tuff and tuff interlayered with massive and pillowed flows (Berger et al., 2006). They are poorly exposed, commonly highly strained and have a calc-alkalic affinity. The presence of vesicles, gas cavities and the abundance of fragmental deposits suggest that they were emplaced at shallow water depth or possibly subaerially.
Metasedimentary rocks of Timiskaming Assemblage
Metasedimentary rocks of the Timiskaming Assemblage are composed of fine- to coarse-grained wacke, feldspathic and lithic arenite, conglomerate and minor argillite (Berger et al., 2006). On the Property pebble and boulder conglomerate deposits occur along the east contact of the Cairo syenite stock. Clast- supported conglomerate dominated by rounded syenite cobbles occurs along Tully Lake. The dominance of syenite suggests that these units derived from the Cairo stock, therefore they are younger.
Alkalic metavolcanic and related subvolcanic rocks of Timiskaming Assemblage
Alkalic metavolcanic and related subvolcanic intrusive rocks underlie the southern part of the Cunningham Property (Berger et al., 2006). They are composed of mafic, intermediate and felsic flows, pyroclastic and epiclastic tuff, lapilli tuff and tuff breccia. These rocks have calc-alkalic to shoshonitic geochemical affinity.
East of Holmes Lake, along Holmes Lake road, dark green weathering, fine-grained, equigranular mafic flows and schist are exposed (Berger et al., 2006). Along the south side of Galer Lake, the unit is coarser and massive. At Dixon Lake, fine- to medium-grained, massive andesite and trachyandesite covers and area approximately 3 km2 large.
The related subvolcanic intrusive rocks include a suite of feldspar porphyritic dikes that host gold mineralization at the Loki gold occurrence (Berger et al., 2006).
Metamorphosed tholeiitic ultramafic and mafic intrusive rocks
Ultramafic and mafic intrusive rocks include peridotite, gabbro, biotite-bearing gabbro and diorite (Berger et al., 2006). A gabbroic intrusion, composed of medium- to coarse-grained, equigranular, strongly recrystallized and foliated, occurs around the periphery of quartz monzonite on the eastern part of the Cunningham Property.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 47 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Metamorphosed alkali felsic and intermediate intrusive rocks
The Cairo stock, an oval shaped alkali intrusion covering 72 km2, underlies the southwestern part of the Property (Berger et al., 2006). The intrusion is composed of medium-grained, equigranular syenite with minor quartz syenite. The major minerals include perthite, amphibole and biotite along the edges of the pluton.
Fine- to medium-grained albitite occurs along the western shore of Tully Lake and in the Galer fault (Berger et al., 2006). It is a probably a result of alteration and differentiation of the alkali magma.
The approximate age of the stock is 2676±1.7 Ma, suggested by the crystallization age of zircon, indicating that the Cairo stock is part of the Timiskaming assemblage (Berger et al., 2006).
Metamorphosed calc-alkali felsic and intermediate intrusive rocks
The granitoid intrusion underlying the northeastern part of the Property is composed of quartz monzonite with minor granodiorite and diorite (Berger et al., 2006). The quartz monzonite is composed of quartz, feldspar and amphibole and it has calc-alkalic or alkalic affinity.
Mafic intrusive rocks (Matachewan swarm)
North-striking quartz diabase dikes are the most common on the Property and are correlated with the Matachewan swarm dated 2476 Ma (Berger et al., 2006, Osmani 1991). The diabase is fine- to medium- grained, dark weathering, weakly to moderately recrystallized and has undergone low grade metamorphism (Berger et al., 2006).
Gowganda Formation
The Gowganda Formation of the Paleoproterozoic Huronian Supergroup underlies the southeastern edge of the Cunningham Property (Berger et al., 2006). It is composed of conglomerate, lithic sandstone and lithic arenite, wacke, siltstone and argillite (Lovell 1972, Powell and Hodgson 1992).
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Figure 8-4 Property geology of the Cunningham and Sutton Properties (after Berger et al., 2006). Mineral occurrences are listed in Table 8-2.
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8.3.2 Structural geology and metamorphism
Contact strain aureoles
Foliation, and in some cases lineation, is developed in all Neoarchean supracrustal rocks around the peripheries of the granitic intrusions and commonly dipping away from the intrusions (Berger et al., 2006).
Shear zones/faults
The major faults/shear zones on the Property include the Kincaid fault, Galer Lake fault, Wiley Lake fault and at least two unnamed fault (Berger et al., 2006). Airborne magnetic geophysical data suggests that these structures are splays of the LCDZ (OGS 2004, 2000) and display oblique dextral movement (Berger et al., 2006). Stretching lineations, plunging to the southwest, are developed on the shear zones, suggesting north-side up oblique movement. Lineations tend to plunge more steeply going northward, indicating successive increments of north-side up movement.
The Kincaid fault is an arcuate east-striking structure, approximately 25 m wide and is characterized by progressive shearing (Berger et al., 2006).
Folding
At least two generations of folding have been observed south of the Property (Berger et al., 2006). The second generation folding is a synformal anticline with an easterly striking fold axis.
Metamorphism
Metamorphism on the Property is characterized by upper greenschist to amphibolite facies contact metamorphism around the felsic intrusions overprinted by regional greenschist facies metamorphism (Berger et al., 2006). Contact metamorphism around the Cairo stock is less than 300 m and is characterized by the presence of hornfels.
Rocks of the Gowganda Formation are weakly to non-metamorphosed (Berger et al., 2006).
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8.4 Mineralization
The Cunningham and Sutton properties are located approximately 14.5 km northeast of AuRico Gold’s Young-Davidson Mine and 28.3 km southwest of the Macassa Mine, operated by Kirkland Lake Gold Inc. Both of these operating mines are located along the major Larder Lake – Cadillac Deformation Zone, which runs approximately 1 km south of the Cunningham Property.
There are at least twelve known Au occurrences and one Mo occurrence on the Property (Figure 8-4). Table 8-2 summarizes the occurrences from the MNDMF MDI database, last updated in 2010, and assessment files.
Gold occurrences on the Property are localized along splay faults associated with the LCDZ (Berger et al., 2006). Gold is associated with the Kincaid fault, approximately 1200 m west of Golub Lake on a stripped area, the Kincaid fault consists of intensely foliated intermediate tuff with pervasive iron carbonate and silica alteration. Chlorite and tourmaline occur along tiny veinlets and along foliation planes, pyrite is sparse to absent.
Several gold showings occur along the Galer Lake Fault, which consists of a 10 to 15 m wide shear zone that displays C-S fabric, dextral offset of geological contacts and small scale Z-folds (Berger et al., 2006). West of the Galer Lake fault sporadic high grade gold (up to 35 g/t) is surrounded by widespread low grade mineralization in sheared syenite in contact with albite rich dykes. Other minerals include chalcopyrite, magnetite, tourmaline, galena, molybdenite, barite and fluorite. The alteration assemblage includes sericite, hematite and quartz, suggesting that mineralization is associated with alkaline fluids.
8.4.1 Cowie
Gold mineralization is hosted in a shear zone in porphyritic syenite (MNDMF MDI, ODM Map P206, 1963, Map, ODM Map 2078, 1966). Other minerals include pyrite and chalcopyrite.
8.4.2 Geraldine
Gold mineralization is located in a fractured zone, in syenite porphyry, about 4 feet wide containing quartz, disseminated pyrite and traces of chalcopyrite (Moore 1966). A grab sample taken by Moore (1966) assayed 0.1 oz/t (2.84 g/t) Au and 0.79% Cu.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 51 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. 8.4.3 Golub Lake
Molybdenum mineralization is hosted in a shear zone in syenite (ODM Map 2078, 1966).
8.4.4 Holmes
Copper mineralization is hosted in a quartz vein in syenite and feldspar porphyry (MNDMF MDI). The minerals in the vein include chalcopyrite and pyrite.
8.4.5 Loki-1 (Brookbank)
Gold mineralization is located in a shear zone, about 1 foot wide, striking 290° along the contact of fine grained syenite and a greyish white tuffaceous rock (Moore 1966). A grab sample taken by Moore (1966) assayed 0.06 oz/t (1.7 g/t) Au.
8.4.6 Loki-2
Loki Mines Ltd. drilled 5 holes in 1946 totaling 3500 feet and intersected mineralized fractures in a syenitic and mafic metavolcanic rocks(Moore 1966). One hole intersected a mineralized zone with a core length of 40 feet. Best assay was 0.08 oz/ton (2.27 g/t) Au over 75 feet (22.86 m) (MDC 18, 1979). Associated minerals include pyrite, chalcopyrite and galena (MNDMF MDI).
8.4.7 Loki-4
Gold mineralization is located in a shear zone, about 2 ft wide and exposed for 15 ft, along the contact of feldspar porphyry and greenstone, containing pyrite, chalcopyrite and quartz (Moore 1966, MNDMF MDI). A grab sample taken by Moore (1966) assayed 0.08 oz/t (2.17 g/t) Au and 0.56% Cu.
8.4.8 Loki-5
Gold mineralization is located in sheared mafic volcanic rocks and consists of a quartz vein, 3 inches wide and 1 foot, mineralized sparsely with pyrite and chalcopyrite (Moore 1966). A grab sample taken by Moore (1966) assayed 2.2 oz/t (62.37 g/t) Au and 3.9 oz/t (110.57 g/t) Ag. Associated minerals include pyrite, chalcopyrite and galena (MNDMF MDI).
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 52 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. 8.4.9 Sutton
Gold mineralization was intersected by a drill hole (S-95-1), performed by Sutton in 1995 (Assessment File 42A02SE0033). The hole is 450 feet (137.2 m) long and intersected mineralized zone between 197 (60 m) and 344 feet (104.9 m). The best Au assays include 2.5 g/t over 0.4 m, 1.4 g/t over 0.7 m or 0.78 g/t over 3.4 m, and 1.29 g/t over 0.5 m. Mineralization is hosted in porphyritic syenite.
8.4.10 Sutton claims
Gold mineralization was intersected by a drill hole (H2-93), carried out by Sutton and Hanson in 1993 (Assessment File 42A02SE0016). Gold is hosted in a cherty vein at between 19.1 (5.8 m) and 20.6 feet (6.3 m), assaying 1.31 g/t over 0.5 m. Mineralization was also intersected in very strongly altered zone with abundant siliceous veins and pyrite. The best assays include 1.1 g/t over 1.0 m; and 2.0 g/t over 2.0 m. Mineralization is hosted in syenite and associated minerals include pyrite and chalcopyrite.
8.4.11 Tully, C.W.
Molybdenum mineralization is hosted in a vein of fine grained quartz with a width of 2.5 (0.7 m) to 7 feet (2.1 m), striking 260° and dipping 60° (Moore 1966). The vein contains disseminated pyrite, molybdenite and some epidote. The host rock is fine to medium grained syenite, which is locally sheared and silicified in zones up to 8 feet (2.4 m) wide. Carbonate is present in the wider parts of the shear zones. A grab sample taken by Moore (1966) returned 0.13% Mo. Another sample returned 0.65% Mo across 2.4 feet (0.7 m). Chip sampling by Tully, C.W. in 1959 yielded 0.02 oz/t (0.57 g/t) Au (MNDMF MDI).
8.4.12 M2 Zone
The M2 Zone, located 1.7 km east of Bures Lake, occurs within sheared rocks along the Kincaid fault. Gold mineralization is hosted in altered mafic metavolcanic and metasedimentary rocks (MNDMF Work Report 2.31674). The alteration consists of carbonate (ankerite), fuchsite, sericite and pyrite (MNDMF Assessment File 42A01SW0050).
In 1989, Pamorex drilled 13 holes on their Abel Lake Property that included the M2 Zone (MNDMF Assessment File 42A01SW0050). The best intersection assayed 0.296 oz/t (8.39 g/t) Au over 22 feet (6.7 m).
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 53 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Newstrike drilled 2 holes (NS-05-05 and NS-05-06) in the M2 Zone (MNDMF Work Report 2.31674). Several gold mineralized zones were intersected in both drill holes in pyrite bearing chlorite-carbonate- quartz schist. Some of the best intervals include 3.47 g/t over 3 m, 0.62 g/t over 8 m, 12.89 g/t over 1 m.
8.4.13 Boundary Zone
The Boundary Zone (538825E, 5320399N) is located 1.6 km west of the M2 Zone, along the Galer Extension, which is a northeast (070°) trending shear zone connecting the Kincaid Fault to the north and the Galer Fault to the south. No information was found on the showing in the public domain.
Table 8-2 List of occurrences on the Cunningham and Sutton Properties
No. Name Type MDI number Commodity Easting Northing Source map
Au symbol, southwest Cowie Mineral 1 MDI42A02SE00041 Au, Cu 536683.02 5320880.91 of Cowie Lake, OGS Lake Occurrence 1966, GR 44, Map2078 Au symbol, west shore Geraldi Mineral 2 MDI42A02SE00037 Au, Cu 536730.99 5320541.99 Geraldine Lake, OGS ne Occurrence 1966 GR44 Map2078 Mo Symbol on OGS Golub Mineral 1966, GR 44 MAP 3 MDI42A02SW00058 Mo 537341.02 5321284.91 Lake Occurrence 2078, lot 9 concession 3. Mineral OGS 1963 MAP P206, 4 Holmes MDI42A02SE00042 Cu 535573.02 5321981.92 Occurrence lot 11, concession 3 Pit on property #1 OGS Mineral 1966 MAP2078 5 Loki-1 MDI42A02SE00012 Au 536539.02 5319980.90 Occurrence HOLMES-BURT AREA IN GR44 DDH, OGS 1966, MAP Mineral 6 Loki-2 MDI42A01SW00009 Au, Cu, Pb 538547.03 5320770.90 2078 Holmes-Burt Occurrence Area, in GR 44 OGS 1966, MAP 2078, Mineral 7 Loki-4 MDI42A02SE00040 Au, Cu 537222.02 5319508.91 HOLMES-BURT Occurrence AREA, in GR 44 OGS 1966, MAP 2078, Mineral 8 Loki-5 MDI42A02SE00035 Au, Cu, Ag 536843.01 5318982.90 HOLMES-BURT Occurrence AREA, IN GR 44 Mineral 9 Sutton MDI000000000439 Au 535871.00 5319625.99 Occurrence Sutton Mineral 10 MDI000000000440 Au 535575.00 5319997.99 Claims Occurrence OGS 1966, Map 2078 Tully, Mineral 11 MDI42A02SE00038 Mo, Au 536381.02 5321312.91 Holmes-Burt Area, in C.W. Occurrence GR 44; Property #3. M2 Mineral drill hole HT89-02 12 Au 540553.99 5320788.30 Zone Occurrence (Pamorex 1989 Bounda Mineral 13 Au 538825.00 5320399.00 site visit ry Zone Occurrence
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9.0 DEPOSIT TYPES
Gold mineralization on and around the Property is typical of orogenic gold deposits. The following is a description of orogenic gold deposits from a report by Ronacher et al (2011):
Orogenic gold deposits “occur in deformed greenstone belts, particularly those that are characterized by tholeiitic basalts and ultramafic komatiites intruded by intermediate to felsic porphyritic intrusions (Dubé and Gosselin 2007). They are located along major compressional to transtensional crustal-scale fault zones marking convergent margins between major units but ore is typically hosted by second- and third order shears and faults and at jogs and changes in strike (Goldfarb et al. 2005) (Figure 9-1). In Canada, these vein deposits are often associated with conglomerates (e.g. the Timiskaming conglomerate). They are a major source of gold in the greenstone belts of the Superior and Slave provinces of the Canadian Shield.
Orogenic gold deposits are characterized by a network of auriferous, laminated quartz-carbonate veins and locally hydrothermal breccias. The dominant sulfides are pyrite and arsenopyrite but W-, Bi- and Te- bearing phases are also common. Sulfides also occur disseminated in the wall rock. Typical alteration includes iron-carbonate, silicification, muscovite, chlorite, K-feldspar, biotite, tourmaline and albite.
Orogenic deposits formed from metamorphic fluids (Dubé and Gosselin 2007) that were rich in CO2, low in salinity and generated during prograde metamorphism where the fluids were channelled along major crustal deformation zones. Drastic pressure changes (and resulting unmixing and desulfidation) and wall rock interaction caused the precipitation of the sulfides (and gold).
World-class ore bodies are between 2 and 10 km long, approximately 1 km wide and extend to depths of 2 to 3 km (Goldfarb et al. 2005). Canadian examples include the Timmins, Kirkland Lake, Val d’Or and Rouyn-Noranda districts of the Abitibi greenstone belt and the Pickle Lake and Rice Lake greenstone belts of the Uchi subprovince (Figure 9-2).” Individual vein thickness varies from a few cm to 5 m and their length is between 10 and 1000 m (Dubé and Gosselin 2007). The vertical extent of the orebodies is typically greater than 1 km and up to 2.5 km.
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Figure 9-1: Schematic presentation of the geological environment and crustal depth of orogenic gold deposits (from Dubé and Gosselin, 2007).
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Figure 9-2: Examples of orogenic gold deposits world-wide (from Dubé and Gosselin, 2007).
10.0 EXPLORATION
The exploration program on the Cunningham and Sutton Properties commenced in October 2010 and was completed in September 2011. The program consisted of limited sampling on the Sutton Property and drilling on both Cunningham and Sutton Properties. Forty-six drill holes were drilled totaling 10,801 m (Table 11-1, Figure 11-1).
Most of the drill holes were planned around known occurrences (M2 Zone, Boundary Zone, Sutton occurrences) or historical showings (west of Bures Lake, southwest part of Sutton claims) to test for additional gold mineralization. A drill hole (KC1135) southwest of Bures Lake was also planned to test a strong IP anomaly.
10.1 Sampling
Three grab samples were collected on the Sutton Property in June, 2011. The results of assays are summarized in Table 10-1. The samples were sent for analysis to ALS Minerals in Timmins with the drill core samples.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 57 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Sampling procedures of the drill cores is described in the Drilling section (section 11.0) of this report.
Sample J448950 is a dark blue-grey rock with chert and 2-3% disseminated pyrite. Sample J448953 is brown to pink, medium grained syenite with 3-5% disseminated pyrite and a black metallic mineral. It also contains 1.12% Pb and 0.56% Zn. Sample J448954, collected around the Loki-1 occurrence, is a grey, fine grained, silicified rock with 5-10% disseminated pyrite.
Table 10-1 Location and Au assay results of grab samples Sample number Property Easting Northing Au (g/t) J448950 Sutton 535921 5319175 0.42 J448953 Sutton 535031 5319419 7.66 J448954 Sutton 536617 5319961 1.54
11.0 DRILLING
11.1 Drilling Progress
The drill program on the Cunningham and Sutton Properties commenced on October 25, 2010 and was completed on September 15, 2011. Forty-six NQ holes were drilled totaling 10,801 m (Figure 11-1, Table 11-1). All drill holes were surveyed and most of the drill holes were sampled. All drilling was carried out by LaFramboise Drilling of Hilliardton, Ontario. The KC (Cunningham Property) and KM (McLean Property) holes were both drilled on WKM’s Cunningham claim block. The KS holes were drilled on the Sutton Property.
Drill holes KC1136 to KC1138, KC1165 and KC1166 are located west of Bures Lake and were planned to test the results of previous exploration, which concentrated on locating gold mineralization along the extension of the Kincaid Fault west of Bures Lake. Historical work in this area is summarized by Cunningham (MNDMF Assessment File 42A01SW0009) (see History section of this report).
Drill holes KC1008 to KC1012, KC1129, KC1131 and the KM holes were designed to test the M2 Zone and the continuation of the Galer Extension, which is interpreted to splay off the Kincaid Fault near the M2 Zone, and the mineralization to the southwest. The M2 Zone was previously explored by Pamorex between 1988 and 1990 and Newstrike between 2005 and 2007 (see History section of this report).
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 58 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Drill holes KC1132 to KC1134 and KC1142 to KC1144 are located close to the Boundary Zone occurrence, along the Galer Extension. These holes were planned to test the Galer Extension for additional mineralization. Drill hole KC1134 also tested the Galer Fault. The drill program is trying to determine the size and attitude of the mineralized zone.
KC1135 was drilled southwest of Bures Lake, close to the Riocanex occurrence and Newstrike’s drill hole NS-05-02 that intersected gold mineralization (see History section). The drill hole was planned to test for additional gold mineralization and a strong IP anomaly in this area.
Drill holes KS1145 to KS1148 and KS1170 to KS1177 are located around the main Sutton showings and they were planned to test for additional gold mineralization.
Drill hole KS1149 was planned to explore for mineralization along the Galer Fault. KS1150 and KS1151 were drilled to test surface gold showings.
The depth of the drill holes ranged from 71 to 845 m, the average depth is 235 m. A reflex down hole survey was completed at 30 m intervals. Drill collar locations were recorded with a handheld GPS. Most of the drill holes on the Cunningham Property were drilled with an azimuth to the north and with a dip between 45° and 70°. Most of the drill holes on the Sutton Property were drilled with an azimuth to the south and 45° dip.
The depth of overburden was up to 10.6 m, the average depth of overburden is approximately 3.4 m. A total of 4372 samples were analyzed. 143 blanks, 193 low and high grade standards, and 146 core duplicates were also sent for analysis. The average sampling interval is 1.12 m.
The drill core was placed in wooden core trays at the drill site, labelled with the hole ID and box number and transported to WKM’s core logging facility at 5500 Highway 11, Kenogami, Ontario (Figure 11-2). At the core logging facility, the core boxes were labelled with aluminium tag indicating the hole number and the core interval stored in each box.
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Figure 11-1 Location of drill holes and grab samples on the Property
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Table 11-1 List of drill holes Hole Elevation Length Property Easting Northing Azimuth Dip Start date Finish date number (m) (m) KC1008 Cunningham 540408 5320978 333 230 360 -45 25-Oct-10 27-Oct-10 KC1009 Cunningham 540408 5320978 333 263 360 -70 27-Oct-10 29-Oct-10 KC1010 Cunningham 540529 5320897 352 320 360 -62 30-Oct-10 02-Nov-10 KC1011 Cunningham 540417 5320851 358 542 360 -65 02-Nov-10 13-Nov-10 KC1012 Cunningham 540830 5321032 324 173 360 -45 14-Nov-10 15-Nov-10 KC1131 Cunningham 539575 5320705 346 242 335 -45 16-Apr-11 18-Apr-11 KC1132 Cunningham 538673 5320427 347 347 140 -60 18-Apr-11 21-Apr-11 KC1133 Cunningham 538800 5320540 350 386 180 -60 26-Apr-11 29-Apr-11 KC1134 Cunningham 538601 5320366 350 389 160 -45 29-Apr-11 03-May-11 KC1135 Cunningham 538350 5320700 362 845 360 -45 03-May-11 16-May-11 KC1136 Cunningham 538407 5321112 344 239 360 -45 16-May-11 18-May-11 KC1137 Cunningham 538506 5321091 343 281 360 -45 18-May-11 19-May-11 KC1138 Cunningham 538304 5321153 345 197 360 -45 24-May-11 25-May-11 KC1140 Cunningham 540413 5320750 355 125 360 -68 29-May-11 30-May-11 KC1141 Cunningham 540414 5320750 355 768 360 -68 30-May-11 13-Jun-11 KC1142 Cunningham 538235 5320110 362 137 160 -55 13-Jun-11 15-Jun-11 KC1143 Cunningham 538237 5320114 366 140 200 -45 15-Jun-11 15-Jun-11 KC1144 Cunningham 538237 5320106 365 149 120 -45 16-Jun-11 16-Jun-11 KC1163 Cunningham 538407 5321112 344 107 180 -45 19-Aug-11 20-Aug-11 KC1164 Cunningham 538311 5321156 346 152 180 -45 20-Aug-11 21-Aug-11 KC1165 Cunningham 538355 5321136 345 101 180 -45 21-Aug-11 21-Sep-11 KC1166 Cunningham 538402 5321173 337 152 180 -45 22-Aug-11 22-Aug-11 KM1123 Cunningham 540357 5320969 339 392 360 -45 23-Mar-11 2-Apr-11 KM1124 Cunningham 540357 5320969 339 200 360 -65 25-Mar-11 30-Mar-11 KM1125 Cunningham 540357 5320930 351 122 360 -45 2-Apr-11 3-Apr-11 KM1126 Cunningham 540302 5320932 355 182 360 -45 3-Apr-11 4-Apr-11 KM1127 Cunningham 540253 5320870 348 362 335 -45 4-Apr-11 13-Apr-11 KM1128 Cunningham 540056 5320770 338 281 335 -45 13-Apr-11 14-Apr-11 KM1129 Cunningham 539797 5320705 339 281 335 -45 14-Apr-11 16-Apr-11 KM1139 Cunningham 540357 5320897 356 296 360 -65 26-May-11 28-May-11 KS1145 Sutton 535732 5319722 387 155 180 -45 21-Jun-11 22-Jun-11 KS1146 Sutton 535787 5319720 366 149 180 -45 22-Jun-11 24-Jun-11 KS1147 Sutton 535847 5319720 371 155 180 -45 24-Jun-11 25-Jun-11 KS1148 Sutton 536290 5319575 358 140 180 -45 25-Jun-11 27-Jun-11 KS1149 Sutton 536280 5319410 371 164 180 -45 27-Jun-11 29-Jun-11 KS1150 Sutton 535019 5319451 382 98 180 -45 5-Jul-11 6-Jul-11 KS1151 Sutton 534920 5319235 392 89 180 -45 6-Jul-11 7-Jul-11 KS1169 Sutton 535797 5319684 364 71 180 -45 24-Aug-11 25-Aug-11 KS1170 Sutton 535730 5319792 361 200 180 -45 25-Aug-11 2-Sep-11 KS1171 Sutton 535850 5319777 365 266 180 -45 2-Sep-11 4-Sep-11 KS1172 Sutton 535912 5319704 357 129 180 -45 4-Sep-11 5-Sep-11 KS1173 Sutton 535967 5319708 357 158 180 -45 5-Sep-11 6-Sep-11 KS1174 Sutton 536030 5319730 346 159 180 -45 6-Sep-11 8-Sep-11 KS1175 Sutton 535970 5319766 354 187 180 -45 8-Sep-11 13-Sep-11 KS1176 Sutton 536208 5319720 347 131 180 -45 13-Sep-11 14-Sep-11 KS1177 Sutton 535550 5319699 356 149 175 -45 14-Sep-11 15-Sep-11 Total 10801
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Hole Elevation Length Property Easting Northing Azimuth Dip Start date Finish date number (m) (m)
Figure 11-2 Labeled core in the core shack
11.2 Drill Data and Drilling Results
Several drill holes intersected significant amount of Au mineralization. Drill highlights are summarized in Table 11-2 and Table 11-3. The best intersections include 19.70 g/t Au over 7.9 m in hole KC1008 and 34.49 g/t over 2.2 m in hole KC1163 in the Cunningham Property.
In the Cunningham drill holes, Au mineralization is hosted in intermediate and mafic volcanic rocks, chlorite schist, diorite and syenite. Most of the rocks are moderately to strongly foliated and/or sheared
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 62 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. (Figure 11-3). Quartz veins are fairly common and alteration minerals include carbonate, sericite, chlorite, hematite, K-spar and epidote. Carbonate alteration is the most abundant. The alteration ranges from moderate to pervasive. Au mineralization is associated with up to 5% pyrite.
Gold mineralization in the KM holes is hosted in syenite and mafic metavolcanic rocks, which are strongly deformed with evidence for more than one deformational event. The most common alteration is carbonate, which ranges from moderate to pervasive. The amount of pyrite is up to 5%. Gold mineralization is also locally associated with weak to moderate chlorite alteration and quartz veins.
Almost all Au mineralization in the Sutton holes is hosted in syenite that ranges from mafic syenite to trachytic syenite. Finer grained syenite dikes locally intrude massive syenite. The alteration is characterized by hematite/potassic, silicic, chloritic and hematite. The hematite/potassic alteration ranges from weak to strong and patchy to pervasive. Silicic alteration ranges from weak to strong and it is generally pervasive. Chloritic alteration is weak to moderate, often localized and typically fracture controlled. Quartz veining is fairly common and is locally up to 25%. The amount of pyrite is typically up to 5%.
At this early stage of mineralization the orientation of the mineralized zone is not well defined and sample lengths do not reflect the true lengths or widths of the mineralized zone.
Table 11-2 Drill highlights for the Cunningham drill holes Hole ID From (m) To (m) Length (m) Au (g/t) KC1008 68.5 91.5 23 7.61 including 68.5 70.5 2 6.36 and 83.6 91.5 7.9 19.79 KC1009 129.4 131.2 1.8 6.19 and 149.5 151 1.5 0.95 and 173 174.6 1.6 1.42 KC1011 372.8 373 0.2 2.39 and 400.5 401.3 0.8 0.916 and 404.2 405.2 1 1.31 KC1134 9.5 10.5 1 6.12 KC1135 448.7 449.7 1 2.44 KC1136 6 18 12 0.95 KC1138 46.30 48.90 2.6 0.85 and 82 87.5 5.5 0.87 KC1163 6 18.6 12.6 0.69 and 65 65.5 1.5 0.66 and 75.7 77 1.5 4.53 and 85.7 90.7 5 16.15 including 85.7 87.9 2.2 34.49 KC1164 3.5 4.3 0.8 0.7 and 90.7 94.7 4 2.15 including 92 93.9 1.1 6.42
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Hole ID From (m) To (m) Length (m) Au (g/t) KC1165 90.8 91.3 0.5 0.77 and 92.2 93.1 0.9 0.52 KC1166 8.3 9.3 1 0.9 and 17.7 18.7 1 0.89 and 55.8 56.3 0.5 0.47 and 110.6 119.6 9 0.46 and 126.2 127.1 0.9 2.15 KM1123 84.8 92 7.2 0.54 KM1124 7.7 10.1 2.4 0.53 KM1125 62.5 64 1.5 6.29 KM1127 284.9 286 1.1 0.51 KM1128 119.2 120.2 1 0.38 KM1129 72.3 72.7 0.4 4.28 KM1133 311.4 312.2 0.8 0.49
Table 11-3 Drill highlights for the Sutton drill holes Hole ID From (m) To (m) Length (m) Au (g/t) KS1145 63.1 64.3 2.2 0.56 and 69 73.8 4.8 0.77 KS1146 74.6 79.3 4.7 0.52 and 93.1 96 2.9 0.37 KS1147 64 77.2 13.2 0.46 including 64 68 4 0.63 and 75.1 77.2 2.1 0.96 KS1148 105.2 107 1.8 0.58 KS1151 59.6 60.7 1.1 0.29 KS1170 154.4 156.1 1.7 1.24 KS1171 136.5 140.5 4 1.7 and 146.5 153 6.5 0.59 including 146.5 147.8 1.3 0.7 and 150.8 153 2.2 1.06 KS1172 115.4 118.8 3.4 0.51 KS1173 68 68.9 0.9 0.74 and 74.3 76.3 2 0.75 KS1174 82 84.1 2.1 0.52 and 157.60 158.50 0.9 1.15 KS1175 120.30 122.30 2 0.46 and 133.00 142.10 9.1 0.65 KS1176 76.60 78.30 1.7 0.81
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Figure 11-3 High grade zone in hole KC1009
12.0 SAMPLE PREPARATION, ANALYSES AND SECURITY
12.1 Sample Security
Drilling on the Cunningham and Sutton properties was performed by LaFramboise Drilling Inc. All drill core was placed in wooden boxes and transported from the drill site to the core shack on the same day on trucks by the drillers or WKM personnel. The core was logged, cut and sampled in the WKM core shack.
Samples were stored in sealed sample bags and picked up by ALS Minerals two to three times a week and transported to ALS Minerals Laboratories in Timmins. Occasionally, the samples were transported by bus from Kirkland Lake to the ALS Minerals in Timmins.
After sampling, the core is stored in a temporary location behind the core shack (Figure 12-1) and later transported to a permanent location ~0.5 km from the core shack, where all drill cores are “shrink- wrapped” and they are not tampered with (Figure 12-2). Both temporary and permanent locations are locked by a gate (Figure 12-3).
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Figure 12-1 Temporary core storage
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Figure 12-2 Permanent core storage
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Figure 12-3 Locked gate to temporary and permanent core storage areas
12.2 Sample Preparation
QA-QC samples are inserted in the core shack in random order, 3% blanks, 4% standards (2% high grade and 2% low grade) and 3% core duplicates. The amount of QA-QC samples is adequate to test the quality of the data.
Samples were submitted to ALS Minerals in Timmins for analysis. Most ALS Minerals laboratories are registered or pending registration to ISO 9001:2008 (http://www.alsglobal.com). The samples were weighed, crushed, fine crushed to 70% less than 2 mm, split with a riffle splitter and pulverize split to 85% less than 75 µm. Au content was determined by fire assay and AA finish (Au-AA23 method). The range of this method is between 0.005 and 10 ppm. The rest of the elements were analyzed with high grade four-acid digestion followed by ICP-AES (ME-ICP61a).
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13.0 DATA VERIFICATION
13.1 Caracle Creek Site Visit
Zsuzsanna Magyarosi, Ph.D., P.Geo., visited the Cunningham and Sutton Properties on October 18, 2011. Ms. Magyarosi is a member in good standing of the Association of Professional Geoscientists of Ontario (“APGO”, member #2031).
Ken Kryklywy, WKM’s Manager of Ontario and Quebec operations, showed the Cunningham and Sutton Properties, current drill site on the Cunningham Property and WKM’s core shack to Ms. Magyarosi.
The Properties are located approximately 1 km north of the Larder Lake-Cadillac deformation zone, a major structure extending from Val D’Or to Matachewan. The Larder-Cadillac deformation zone is host to several past and present producing gold mines in the area including the Macassa Mine in Kirkland Lake, operated by Kirkland Lake Gold Inc. and the Young-Davidson Mine in Matachewan, operated by AuRico Gold Corp.
The Cunningham and Sutton properties are located along Highway 66, between the intersection of Highway 66 and Highway 11 and Matachewan. A power line runs along Highway 66. The Properties are close to Kirkland Lake and Matachewan, one of which has an operating mine and the other one has a mine in a pre-production phase, and both are very active in exploration.
One sample was collected during the site visit, but was not analyzed, because it was not sufficiently close to recent work by WKM to verify the results of exploration. More samples were not collected, because in most drilling sites the outcrops are covered by overburden.
13.1.1 Cunningham
The Cunningham Property can be accessed following Holmes Lake Road to the north off Highway 66, at approximately 30 km east of Highway 11. There are several bigger lakes on the claim group including Holmes Lake, Burt Lake (next to the current drill locations), Galer Lake and Dixon Lake.
The Cunningham Property is located along a splay of the Larder Lake-Cadillac deformation zone, approximately 14.5 km east of the Young-Davidson Gold Mine (www.wkmining.com). Gold mineralization is hosted in altered shear structures and quartz veins.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 69 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. The Cunningham Property hosts several showings including the Boundary Zone and M2 Zone. The Boundary Zone (538825E, 5320399N), visited by the author, is located along the Galer Extension, which is a northeast (070°) trending shear zone connecting the Kincaid Fault to the north and the Galer Fault to the south. The M2 Zone is located 1.6 km to the east of the Boundary Zone, 1.7 km east of Bures Lake.
The current drill program on the Cunningham Property started close to a historic showing, visited during the site visit, which is located near the Kincaid Fault. The drill site is accessed through dirt roads off Holmes Lake Road to the east. The drill program is trying to determine the size and attitude of the mineralized zone with a ~50 m drill spacing. High grade intervals have been intersected by recent drilling (KC11-63, 538409E, 5321116N) (Figure 13-1). The current drill (KC11-87, approximate location: 538351E, 5321083N), not part of this report, was visited by the author (Figure 13-2).
The author also visited the location of historic drill locations on the Cunningham property (538319E, 5321078N).
13.1.2 Sutton
The Sutton Property is located west of the Cunningham Property and can be accessed following the Separation Lake Road heading north from Highway 66, approximately 32 km from Highway 11. The Separation Lake Road crosses the southern boundary of the Sutton Property approximately 6 km north of Highway 66 (534949E, 5318985N).
The author visited a showing located along Separation Lake Road, just north of the property boundary (534908E, 5319195N) and the collar of a recent drill hole located north of the showing (KS11-51, 534926E, 5319239N) (Figure 13-3). The rest of the drill holes can be accessed following a dirt road.
13.1.3 Core shack
All drill core is transported the same day on trucks by the drillers or WKM personnel from the drill site to the coreshack, which is located at 5500 Highway 11, Kenogami, Ontario (Figure 13-4). The size of the core is NQ. The core is logged in the coreshack and cut in an adjacent building.
The method and frequency of insertion of QA-QC samples was observed in the core shack. The standards are stored in closed containers in separate ziplock bags. The author also visited the temporary and permanent core storage locations.
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Figure 13-1 Drill hole KC1163 with high grade gold intervals, Cunningham Property
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Figure 13-2 Current drilling on Cunningham Property
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Figure 13-3 Drill collar KS11-51 on Sutton Property
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Figure 13-4 West Kirkland Mining core shack
14.0 MINERAL PROCESSING AND METALLURGICAL TESTING
No mineral processing or metallurgical test work has been commissioned by WKM on potential ores from the project area.
15.0 MINERAL RESOURCE ESTIMATES
WKM has not estimated any mineral resources on the Cunningham and Sutton Properties.
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16.0 MINING METHODS
Mining Methods have not been proposed by WKM for the Cunningham and Sutton Properties.
17.0 RECOVERY METHODS
This section does not apply to the Cunningham and Sutton Properties.
18.0 PROJECT INFRASTRUCTURE
This section does not apply to the Cunningham and Sutton Properties.
19.0 MARKET STUDIES AND CONTRACTS
This section does not apply to the Cunningham and Sutton Properties.
20.0 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY
IMPACT
This section does not apply to the Cunningham and Sutton Properties.
21.0 CAPITAL AND OPERATING COSTS
This section does not apply to the Cunningham and Sutton Properties.
22.0 ECONOMIC ANALYSIS
This section does not apply to the Cunningham and Sutton Properties.
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23.0 ADJACENT PROPERTIES
23.1 West Kirkland Mining
WKM has 4 more properties adjacent to the Cunningham and Sutton Properties (Figure 23-1). The Alma and Cairo properties are located west of the Cunningham and Sutton Properties, in Alma and Cairo townships. The Island 27 Property is located southeast of the Cunningham Property, in Holmes, Flavelle, Gross and Burt townships. The Flavelle Property is located southwest and south of the Cunningham Property in Flavelle Township.
WKM drilled 16 holes on the Island 27 Property between September, 2010 and October, 2011; and 1 hole on Flavelle Property in September 2010. No results have been reported.
23.2 AuRico Gold
The Young-Davidson Mine is located approximately 14.5 km southwest of the Sutton and Cunningham Properties. The mine commenced operations in November, 2011 and the first gold pour is expected for the end of March, 2012 (AuRico Gold webpage: http://www.auricogold.com). The mine is expected to produce 200,000 ounces of Au per year by 2015.
In 2011, AuRico completed 23,354 m of surface drilling and 1,720 m of underground drilling as part of the exploration program at Young-Davidson (AuRico Gold webpage: http://www.auricogold.com). The exploration program resulted in a measured and indicated resource of 536,000 ounces of Au and an inferred resource of 53,000 ounces of Au. The deposit is open to the west and at depth.
A 40,000 m drill program is proposed for 2012 focusing on continuing to develop the Young-Davidson West deposit and following up six additional targets identified in 2011 (AuRico Gold webpage: http://www.auricogold.com).
23.3 Brigadier
In December 2008, Brigadier drilled 10 holes, a total of 1681 m, on their property in Flavelle Township (MNDMF Work Report 2.46611) (Figure 23-1). The best interval assayed 2.373 g/t Au over 9.5 m, which included 6.068 g/t Au over 0.9 m, intersected in hole BF08-08.
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23.4 Alexandria Minerals Corp
In 2008, Alexandria carried out a drill program and one drill hole intersected Au mineralization of 2.25 g/t over 6 m in a subsidiary fault south of the LCDZ (Alexandria Minerals webpage: http://www.azx.ca/projects/matachewan/summary.html; Figure 23-1). The drill holes tested an IP target on the property and opened up several new IP exploration targets within the mafic-intermediate and ultramafic volcanic units. No additional exploration has been reported since 2008.
The Qualified Person has been unable to verify the information and that mineralization on adjacent properties is not indicative of mineralization on the property that is subject of this Technical Report.
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Figure 23-1 Adjacent claims
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24.0 OTHER RELEVANT DATA AND INFORMATION
No additional information is required or relevant to this report.
25.0 INTERPRETATION AND CONCLUSIONS
The Cunningham and Sutton Properties are located within the Abitibi Greenstone Belt, which is part of the Western Abitibi Subprovince and one of largest and economically most productive greenstone belts in the world (Ayer and Trowell 2002). The types of mineralization in the Western Abitibi Subprovince include VMS (volcanic-associated massive sulphide) deposits, lode gold deposits, komatiite-associated Ni-Cu-PGE deposits and iron formations (Jackson and Fyon, 1991).
The primary focus of exploration work on the Cunningham and Sutton Properties is Archean shear-zone related gold mineralization (lode gold), which is responsible for the presence of several major deposits in the Kirkland Lake area.
Despite the abundance and success of exploration work, including drilling, on the Cunningham and Sutton Properties, exploration is still in grassroots stage. The reason for this is that the Property is large and the drill holes are scattered in several promising areas, rather than concentrate on one area to define the attitude of gold mineralization and outline a resource.
Several drill holes in the current drill program intersected economically significant gold mineralization, comparable to gold mineralized zones in the nearby Young-Davidson and Macassa mines. The characteristics (length, width, depth) of gold mineralized zones have not been identified, but given the geological environment and the success of the drill program, the possibility of the presence of an economically significant deposit is very high.
The drill program confirmed that the results of historical exploration work on the Cunningham and Sutton Properties are reasonable. In several cases drill core samples returned higher gold values than the historical findings (west of Bures Lake).
The Caracle Creek site visit confirmed the location of claims and most of the collars on the Cunningham and Sutton Properties. According to the QP, the WKM program was conducted up to industry standards. The chain of custody, sampling procedures and other QA-QC procedures are also up to industry standards.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 79 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. The Cunningham and Sutton Properties are very good exploration projects that have the potential of finding significant gold mineralization. Further exploration work on the Property will focus on better defining the gold mineralization and outlining a resource.
The QP is not aware of any significant risks and uncertainties that could reasonably be expected to affect reliability or confidence in the exploration data or the project’s potential economic viability.
According to the QP, the report met its objective and, given the geological location, the amount of known gold mineralization identified on the Property with historical exploration and the results of the exploration program, follow up work on the identified anomalies has an excellent potential to find additional significant gold mineralization.
26.0 RECOMMENDATIONS
Additional drilling is recommended on the Cunningham and Sutton Properties. Drilling should concentrate on one or perhaps two areas (west of Bures Lake, M2 Zone or Sutton area), rather than scattered in several areas to help to better outline the mineralized zones and increase the length, width and depth of mineralized zones and define a resource.
The last geophysical survey was completed in 1997 by Teck in the northern part of the Cunningham Property, along the Kincaid Fault. Since the technology has changed significantly since 1997, it may be worthwhile to conduct another detailed IP survey to help determine the attitude of mineralized zones.
Table 26-1 contains the recommended exploration budget for the Cunningham and Sutton Properties.
Another recommendation is the analysis of Au with another method (Au-AA25 or Au-GRA21), when the Au content is above 10 g/t, since the upper limit of the fire assay and AA finish (Au-AA23) is 10 ppm (g/t).
Table 26-1. Recommended exploration budget.
ITEM UNIT No. of UNITS COST/UNIT TOTAL COST
Drilling
Drilling m 8,500 $ 95 $ 807,500 Assays, QA-QC m 8,500 $ 20 $ 170,000 Wages, vehicles, support, $ 300,000 miscellaneous TOTAL $ 1,277,500
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27.0 REFERENCES
Ayer, J.A., Thurston, P.C., Bateman, R., Dubé, B., Gibson, H.L., Hamilton, M.A., Hathway,B., Hocker, S.M., Houlé, M.G., Hudak, G., Ispolatov, V.O., Lafrance, B., Lesher, C.M.,MacDonald, P.J., Péloquin, A.S., Piercey, S.J., Reed, L.E. and Thompson, P.H. 2005.Overview of results from the Greenstone Architecture Project: Discover Abitibi Initiative;Ontario Geological Survey, Open File Report 6154, 146p.
Ayer, J.A. and Trowell, N.F. 2002. Geological compilation of the Swayze area, Abitibi greenstone belt; Ontario Geological Survey, Preliminary Map P.3511, scale 1:100 000.
Berger, B.R., 2006: Geological synthesis along Highway 66 from Matachewan to Swastika; Ontario Geological Survey, Open File Report 6177, 125p.
Berger, B.R., Pigeon, L. and Leblanc, G. 2006. Precambrian geology, Highway 66 area, Swastika to Matachewan; Ontario Geological Survey, Map 2677, scale 1:50 000.
Dimroth E., Imreh, L., Goulet, N. and Rocheleau, M. 1983b. Evolution of the south-central segment of the Archean Abitibi belt, Quebec, Part III: Plutonic and metamorphic evolution and geotectonic model; Canadian Journal of Earth Sciences, v.20, p. 1374-1388.
Dubé, B. and Gosselin, P., 2007, Greenstone-hosted quartz-carbonate vein deposits, in Goodfellow, W.D. (ed.), Mineral Deposits of Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Models: Geological Association of Canada, Mineral Deposit Division, Special Publication No. 5, p. 49-73.
Goldfarb, R.J., Baker, T., Dubé, B., Groves, D.I., Hart, C.J.R. and Gosselin, P., 2005, Distribution, Character, and Genesis of Gold Deposits in Metamorphic Terranes: Economic Geology 100th Anniversary Volume, p. 407-450.Singer, S.N. and C.K. Cheng, 2002: An Assessment of the Groundwater Resources of Northern Ontario; Areas Draining into Hudon Bay, James Bay and Upper Ottawa River, Environmental Monitoring and Reporting Branch, Ministry of the Environment, Toronto, Ontario, p.255.
Gordon, J.B., Lovell, H.L., de Grijs, J., and Davie, R.F., 1979: Gold deposits of Ontario, Part 2, Part of District of Cochrane, Districts of Muskoka, Nipissing, Parry Sound, Sudbury, Timiskaming, and Counties of Southern Ontario, Ontario Geological Survey, Mineral Deposit Circular 18.
Harrap, R.M. and Helmstaedt, H., 1992: Structure and emplacement mechanics of the Round Lake Batholith south of Kirkland Lake, Ontario; in Geoscience Research Grant Program, Summary of Research 1991–1992, Ontario Geological Survey, Miscellaneous Paper 159, p.39-46.
Jackson, S.L. and Fyon, J.A. 1991. The western Abitibi Subprovince in Ontario, in Geology of Ontario; Ontario Geological Survey, Special Volume 4, Part 1, p.405-482.
Lovell, H.L., 1972: Geology of the Eby and Otto area, District of Timiskaming; Ontario Department of Mines and Northern Affairs, Geological Report 99, 34p.
Northern Affairs, Geological Report 99, 34p.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 82 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. MNDMF Assessment Files: http://www.geologyontario.mndmf.gov.on.ca/
MNDMF claim map: http://www.mndm.gov.on.ca/mines/claimaps_e.asp
MNDMF Mineral Deposit Inventory: http://www.mndm.gov.on.ca/mines/ogs/ims/pub/digcat/mdi_e.asp
Moore, J.C.G. and assistants, 1962: Map 2078, Holmes-Burt area, Ontario Department of Mines.
Moore, J.C.G., 1966: Geology of Holmes-Burt area, District of Timiskaming, Ontario Department of Mines, Geological Report 44, 20p.
Ontario Department of Mines, 1963: Holmes Township and north part of Flavelle Township, District of Timiskaming, Preliminary Geological Map P. 206.
Ontario Geological Survey, 2004: Kirkland Lake–Larder Lake area airborne high resolution magnetic survey; Ontario Geological Survey, Geophysical Data Set 1053.
Osmani, I.A., 1991: Proterozoic mafic dyke swarms in the Superior Province of Ontario; in Geology of Ontario, Ontario Geological Survey, Special Volume 4, Part 1, p.661-681.
Percival, J.A and Easton, R.M., 2007: Geology of the Canadian Shield in Ontario: An Update; Geological Survey of Canada, Open File 5511, Ontario Geological Survey, Miscellaneous Release—Data 216; Ontario Power Generation, Report 06819-REP-01200-10158-R00. Scale 1: 1 000 000. 1CD-ROM.
Powell, W.G. and Hodgson, C.J., 1992: Deformation of the Gowganda Formation, Matachewan area, Ontario, by post-Early Proterozoic reactivation of the Archean Larder Lake – Cadillac break, with implications for gold exploration; Canadian Journal of Earth Sciences v.29, p.1580-1589.
Ronacher, E., Magyarosi, Z. and Tucker, M., 2011: Independent technical report, Watershed Gold property, Sanatana Diamonds Inc., 54p.
Thurston, P.C., H.R. Williams, R.H. Sutcliffe, and G.M. Stott, 1991: Geology of Ontario, Ontario Geological Survey, Special Volume 4, Parts 1 & 2, Ontario Ministry of Northern Development and Mines, p.1525.
February 6, 2012 CARACLE CREEK INTERNATIONAL CONSULTING INC. Page | 83 Toronto – Vancouver – Sudbury– Johannesburg Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc. Appendix 1 – Certificates of Qualified Persons
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Independent Technical Report: Cunningham and Sutton Properties West Kirkland Mining Inc.
Appendix 2 – Option Agreements
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