Lake Abitibi West Gold Property Moody
LAKE ABITIBI WEST GOLD PROPERTY
Moody Township, Larder Lake Mining Division
RECEIVED JAN 2 5 ZOlZ GEOSCIENCE ASSESSMENT OFFICE
Timmins, Ontario R.J. Bradshaw, P.Eng. September, 2011 Geologist CONTENTS
Page
INTRODUCTION 3
LOCATION AND ACCESS 3
PREVIOUS WORK 3
FORMATION OF A GOLD DEPOSIT IN THE ABITIBI 4
SEARCHING FOR A GOLD DEPOSIT 6
INTERPRETATION OF STRUCTURAL GEOLOGY 6
RECOMMENDATIONS AND CONCLUSIONS 8
REFERENCES 9
APPENDIX 1 10
CERTIFICATION
2 A Portion of Map P3398
Geological Compilation of the Lake Abitibi Area
Scale o :z 4 " 13/t.m Displays Trace of Arejay Fault interpreted from airborne geophysical surveys (2004) and map P3398;
Gold deposits adjacent to faulting and Moody Township property INTRODUCTION
To follow is a summary description ofthe process involved in the formation of a gold deposit. Based on the process, mineralogy and structure of the typical lode gold deposit, the most efficient and cost effective exploration procedure is described.
Interpretation of airborne magnetic maps over favourable geological terrane is the primary tool. Utilizing the latest airborne magnetic maps, the writer interpreted the structural geology of a substantial area between Matheson and the Quebec boundary, part of the Abitibi Greenstone Belt. Thereafter, the results were compared with published geological maps. Upon finding an untested area demonstrating high potential for gold mineralization, previous work in the immediate area was reviewed in the search for support for the choice. The essential research and interpretation is shown on the attached Figures. Finally, ground acquisition was commissioned.
LOCATJON AND ACCESS
Moody Township is located a few kilometres west of Lake Abitibi in northeastern Ontario. Two claims, 4254581 and 4254668, held by the writer, in the centre ofMoody Township, form the property which consists of24 sixteen hectare units (960 acres).
The so-called Trans Quebec road starts at Iroquois Falls. To access the property, drive south 18 kilometres on an old haulage road from the 54 km marker on the Trans Quebec road.
PREVIOUS WORK
Across central Moody Township at least 40 diamond drill holes and 20 overburden holes have been drilled over the past 40 years. Initially, companies such as Inco and Texas Gulf formulated programs in the search for base metals. Later, Utah Mines Ltd, Glen Auden Resources and others were focused on the search for gold. Presumably, with a glacio fluvial direction trending northwest, parallel to the Arejay fault, the Moody belt of favourable rocks was considered to be a likely source for the gold bearing glacial float to the southeast.
East of the property, mainly south of Traill Lake, Utah Mines Ltd conducted the most ambitious program including ground geophysics, overburden drilling and some 30 diamond drill holes. South ofTraill Lake, drill holes intersected strongly altered rocks containing mariposite fuchsite, which in the Kirkland Lake camp is associated with gold mineralization. These holes are not plotted on the plan. It is reported that up to 3 grams of gold was intersected in the drilling.
3 Within the property, Glen Auden Resources and Mistango River Mines drilled at least five holes. As indicated on the plan these holes are well outside the areas considered to be favourable for gold mineralization.
The positioning of the Arejay fault, interpreted from the airborne magnetics, is supported by an intersection of graphitic argillite in Glen Auden hole 91-4. Similarly, a hole by Utah just south of Traill Lake intersected intensely altered serpentinized peridotite, thereby confirming the thrust fault extending west across the property area.
In 1988, Glen Auden commissioned an airborne electromagnetic and magnetic survey by Questor. This survey covers the favourable belt of rocks striking across central Moody Township and the property. A well defined faulted conductor coincides with the interpreted thrust fault through the property and over to Trailllake.
Most of the conductors within the survey area were interpreted by the geophysicists to dip north. Similarly, the latest government survey, which this report is based on, indicates that the assemblage dips north. Nevertheless, almost all of the drill holes were drilled north.
FORMA TTON OF A GOLD DEPOSIT* TN THE ABTTTBT
The model to follow is based on the writer's 50 years experience in production and exploration. Understanding the model is essential to the cost efficient search for a viable gold deposit, particularly in the Abitibi Greenstone Belt, where the overburden is deep and extensive. The model should be considered as a general concept that explains the formation of most but not necessarily all gold mineralized zones. It provides a critical path in the planuing of grassroots and secondary exploration.
The dominant force in the formation of major and minor structures, including gold deposit structures in the Abitibi, is a near horizontal compression in a north - south direction. This force is a cyclical one taking place over tens of millions of years and is complicated by depth of rock assemblage and extreme temperature variation.
Subsequent to the development of isoclinal folding and easterly trending deep-seated thrust faults along the boundaries of major rock assemblages, continued periodic compressive force results in the formation of cross faults and ultimately structures controlling the gold mineralization which vary in complexity. It should be noted that even using laboratory dating techniques, the concept of time involved with these processes is difficult to comprehend. Evidence for a period of formation, amounting to tens of millions of years, include observation of differing generations of mineral deposition, reflected by quartz - carbonate vein ladder structures, etc. As indicated by comparatively minor disruption of the typical gold deposit, perhaps some cross faulting, the gold deposition takes place near the end of the overall deformation process.
4 In many instances the initial stage in the process is one wherein the incompetent potential host rock undergoes a preparatory process. Hydrothermal gases-solutions are injected into a low pressure trap and permeate the adjoining super hot adjoining rock. On cooling the rock is carbonatized, forming a competent unit which with subsequent stress, fractures. This same process may also account for the conversion of magnetite, if present, into pyrite and other iron bearing sulphides. Thus the host rock of the yet to be formed gold deposit becomes an anomalous magnetic low. Carbonatization is not necessary or involved for competent host rocks, which include a variety of felsic to intermediate intrusives.
The next and subsequent cycles of compression and heat generation results in fracture and fault openings, followed by the introduction of various mineral components. In many deposits there is evidence for several cycles of mineral introduction followed by one or two fmal pulses wherein the gold and accessory, dominantly sulphide minerals, are introduced.
These sulphides which may include pyrite, chalcopyrite, sphalerite and arsenopyrite are intimately associated with gold which may form a solid solution with some sulphides. In many deposits, particularly lode type, it is observed that most of the gold and sulphides is present within less than a metre of deposit contact. The central portion of the lode, over several metres, composed of quartz, carbonate, and tourmaline, etc. contains much less gold. Also, at the deposit contact, the gold is often associated with an alteration mineral such as sericite or fuchsite, a derivative of various feldspars.
The various structures hosting the gold deposition are situated adjacent to major deep seated easterly trending breaks which form buttresses for the north-south compression. The gold deposition may occur north or south of the easterly trending breaks, but for whatever reason, more and better mineralized zones are situated north of the known major breaks.
The major breaks do not host gold deposits but it is evident because of their proximity to the deposit that portions of the faults have formed conduits for the cyclical hydrothermal injection.
The fmal compressive force accounts for the disruption of the deposits. Underground mapping reveals much more faulting than in the two dimensional surface exposure. Faults may trend northeast, northwest and occasionally north and are quite predictable.
• A deposit which has the potential to form a mine
5 SEARCHING FOR A GOLD DEPOSIT
Few gold deposits display mineralogical characteristics that allow them to be directly detected by geophysical methods. Fewer than one often gold mineralized zones contain sufficient sulphides that would allow them to be detected by electromagnetic or even induced polarization survey methods. Nevertheless, such techniques are commonly used. In several instances electromagnetic surveys led indirectly to the discovery of important deposits because the conductors represent an easterly trending thrust fault adjacent to a mineralized zone. Similarly, geochemical surveys, wherein surface soil samples are analyzed for pathfmder metals or gold, have provided only minimal assistance in finding targets. Considering the major influence of glaciation in the Abitibi, such is understandable.
Some form of the airborne magnetic vertical gradient survey is the basic exploration tool. These surveys are more accurate than a ground survey and the tightly constrained magnetic features, representing rock units, enable a very good interpretation of the structural geology. Undertaken at the same time, an electromagnetic survey will identify conductors that represent major east trending faults or minor proximal structures. Thereafter, upon selecting zones that because of their structural location and magnetic signature have promise, an overburden drilling program may be considered. Analyses of near bedrock till samples, takes one closer to the source. The writer has had excellent success with this tool provided that glaciation has not totally displaced the till that is derived from bedrock. Thereafter drill targets can be selected.
INTERPRETATION OF STRUCTURAL GEOLOGY Moody Township Area
In an effort to better understand the geology south and west of Abitibi Lake, northeast Ontario. The writer reviewed and studied OGS map 81999. This compilation map published in 2010, depicts the first vertical derivative of tl1e magnetic field covering much of the Abitibi Greenstone Belt in Quebec and Ontario. A more pertinent OGS map (2004) displays the 2nd vertical derivative of the magnetic field across Moody, Galna and adjacent Townships. These airborne magnetic maps are supported by Map P3398, a geological compilation of the Abitibi Lake area.
Two maps accompany this report; and both show the property. The smaller scale map, Figure 1, shows a portion of map P3398 and the location of the Arejay fault and its
6 relationship to the property geology and regional geology to the south where there are numerous gold occurrences adjacent to the Porcupine Destor fault. The larger scale map, Figure 2, displays the structural geology, based on the airborne magnetics, ofMoody Township, including the property, subject of this report.
In Moody Township, Map P3398 shows a series of conformable, easterly trending, near vertically dipping ultramafic to mafic intrusive rocks hosted by mafic to intermediate volcanics. The airborne magnetic map precisely reflects the positioning and disruption of this geologic terrane.
In general, the interpreted fault pattern corresponds to that expected from a north - south compressive force as demonstrated in the experimental stress ellipsoid. Tt is apparent, however, that northwest trending breaks dominate the terrane, which has been noted throughout the Abitibi Greenstone Belt in Ontario.
The easterly trending breaks merit the most attention because of their similarity to the major breaks in the region such as the Porcupine- Destor (P-D) and Pipestone faults. Numerous gold deposits are related to these breaks. The most significant of these strike faults occur along the edge of an incompetent rock unit such as a serpentinized ultramafic. These incompetent units tend to deflect the compressive force by thrust movement along the rock contact. One of these faults corresponds to the north contact of an easterly trending magnetic unit through the centre of Moody Township.
Within the area of the claim block, pronounced rock disruption has occurred. This is best exemplified by the northwest trending Arejay fault. This structure, previously unrecognized, is based on termination and displacement of magnetic units. Moreover, it can be extended southeast for almost 60 km, as shown on the attached map (P3398). The fault accounts for the interruption of major rock units in McCool and Warden Townships to the southeast and also appears to control the spatial intrusion of magnetic mafic bodies.
Where this fault intersects the P-D fault in Garrison Township a preponderance of gold occurrences is apparent, particularly adjacent to the east.
Adjacent to the east of the Arejay fault within the claim block, northeast trending faults are present which have disrupted the main trust fault. Such disruption has not been noted elsewhere. Several features attest to the exceptionally long history of this break. On the claim group the Arejay fault displaces the magnetic ultramafic unit and breaks through the faulted contact. Further south in McCool Township, the fault conforms to the contact of a mafic intrusive and south ofthe P-D fault in Garrison Township, the break conforms to an alkalic intrusive contact and hosts gold occurrences.
East of the Arejay fault and within the property are two areas which form anomalous magnetic lows. Immediately east of the Arejay fault and north ofthe main thrust fault, is an area approximately 500 metres long. Further east is an area near 700 metres long and up to 400 metres wide. It also is bounded to the south by the main thrust fault and a
7 prominent north- northeast trending cross fault. Both of these areas, because of their anomalous low magnetic signature, are interpreted to represent carbonatized rock.
CONCLUSIONS AND RECOMMENDATIONS
1. As indicated by previous work, central Moody Township was a prime target area for gold, presumably, because of the inferred geology and the glacio-fluvial direction from southerly to northwesterly, which controlled the deposition of prominent gold bearing float. 2. In the past, despite drilling some 40 odd holes, there was only minimal encouragement, which included the presence of gold accessory minerals, sericite and fuchsite and assays of up to 3 grams gold reported by Utah Mines. 3. Utilizing the most recent airborne magnetic maps, two promising target areas were identified which justified ground acquisition by the writer. 4. These areas, because of their magnetic signature, which indicates carbonatization, and their proximity to significant structural deformation, are considered to be prime drill targets.
To continue with the tone of this report, the writer shall conclude with some further digression. As most of us realize, mineral exploration is an inexact scientific and technical endeavour. Some would say luck is a major factor. Perhaps; but the writer is more inclined to favour persistence. For those exploration people with a good plan there are many examples of persistence paying off. As physicist and statistician Leonard Mlodinow stated, 'In a complex undertaking, no matter how many times we fail, if we keep trying, there is a good chance that we will eventually succeed."
R tfully submitted Meaford, Ontario September, 2011 ~ d Geophysics Limited Ronald J. Bradshaw, P.Eng. Geologist
8 REFERENCES
2004 Lake Abitibi Area Airborne Survey -Magnetometer- 2nd Vertical Derivative by Fugro
2010 OGS Map 8199; Abitibi Greenstone Belt; 1st Vertical Derivative of magnetic field
1999 OGS Map 3298; Geological Compilation ofthe Lake Abitibi Area
Assessment Work Files; Kirkland Lake Ontario
9 APPENDIX 1
Previous Drilling
A special effort was made to locate the previous drilling within the property on Figure 2. Because ofthe lack of natural or artificial geographic locations on the assessment work maps, this is difficult. The present ''best effort" demonstrates that past drilling by Glen Auden (1991) and Mistango River Mines (1975?) did not test the area considered most favourable for gold mineralization. Apparently, their targets were electromagnetic conductors.
The holes, however, did show that the overburden in this area is quite deep, ranging from 45 to 75 metres. The deep overburden may be attributed to the disruption and fracturing of bedrock in this area. This condition present along the east side of the Arejay fault, allowed excessive removal of bedrock by glaciation along a northerly trend. A good portion of the rock debris ended up in the Munro Esker.
Munro Esker
This linear topographic feature, comprised of sand, gravel and boulders some 300 km long from Englehart, in the south, to the James Bay lowlands in the north, was formed from glacier debris. The main ridge of the esker follows the main channel of an enormous melt- water river formed by melting and northward retreat of the glacier, 8 to 9000 years ago.
In 1965 Kennco discovered several large gold -quartz boulders near or within the esker. Other companies detected placer gold in the sand and gravel. Major companies including Noranda, Esso, Placer Dome, and Utah conducted projects in the search for the bedrock source, but without success.
The esker coincides or is adjacent to the Arejay fault. In Moody Township the axis of the esker is a few km east of the property in the vicinity of Traill Lake. Further south, some 20 km, the esker crosses the fault at a shallow angle. As shown on Figure 1, a preponderance of gold occurrences adjacent to the east of the Arejay fault, just north of the Porcupine-Destor fault suggests a relationship between the Arejay fault and gold deposition.
It is therefore suggested that the gold in the Munro Esker may come from various sources along the Arejay fault. As previously described, ideal structural and magnetic rock conditions favourable to gold mineralization exist on the subject property.
10 Recommendations
An adequate test of the favourable areas can be undertaken by drilling three 250 m holes. Two holes are proposed for the easternmost area and one hole for the west area. lf the drilling was completed without trouble or snags an amount of $80,000 should cover all costs. However, because the program is limited in size, the overburden is deep, and the project fairly remote, a budget of $100,000 is more realistic.
The initial hole on the easternmost area would be drilled south. Depending upon structural data recovered from logging, locations of the 2nd and 3rd holes would be adjusted accordingly.
R.J. Bradshaw~ November 1, 2011
11 CERTIFICATION
R.J. Bradshaw, P. Eng. Economic Geologist Box3231, Meaford, ON N4L1A5 Tel: 519 5385858, Fax: 5385530, Email: [email protected]
T, Ronald J. Bradshaw, P.Eng. do hereby certify that:
1. I graduated from Queen's University in 1958 with a Bachelor's degree in Geological Sciences.
2. T am a member, since 1970, of the Association of Professional Engineers of the province of Ontario.
3. In the early sixties I was chief geologist at the Hallnor mine, a high grade producer in the Porcupine camp. My duties included supervision of drilling in the search for ore, grade control, and identification and calculation of ore reserves. Through the application of my studies I discovered a new ore body and extended the life of the mine some ten years. Subsequently, I directed and supervised the development of a new mine in Val D' Or, Quebec.
Under the aegis of Shield Geophysics Limited, which I formed, I have undertaken numerous exploration programs in Canada and southwest USA. Independently or in association with others I have discovered several new gold deposits. The Goldex gold mine in Val D' Or is an example; the Frankfield deposit, subject to development by Gowest Gold is another.
4. I satisfy the requirements of a "qualified person" according to the definition outhned in the Nl 43-101 document.
5. I am responsible for the attached technical report, titled Lake Abitibi West Gold Property, Moody Township, Larder Lake Mining Division.
ted this 1st day of November~ 2011
ature of Qualified Person
Ronald J. Bradshaw 4%54681
STRUCTURAL GEOLOGY INTERPRETATION as related to SYMBOLS POTENTIAL GOLD MINERALIZATION after Magnetic linear representing ultramafic intrusive High Resolution MIDAS Magnetic Gradient Survey - (2nd Vertical Derivative) Magnetic linear representing mafic volcanic unit performed by Fugro Airborne Surveys io 2004 ••• Easterly trending thrust fault Moody and Galna Townships west of Lake A bitibi X .: .Cross fault trending northerly from NW to NE SCALE Fig·Z ! .·. Drill hole ~? ·' o lkm 2km Jkm I R.J. Bradshaw,~Eng. September, 2011 ') ' Area where struct.ural geology favourable to gold m ineralizat i o~ E='~=====~' ======i'~~==~i 1