Assessment Report, Airborne Geophysics and Geological Mapping and Mineral Prospecting Programs, Resolve Raglan Project 2006
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GM 62796 ASSESSMENT REPORT, AIRBORNE GEOPHYSICS AND GEOLOGICAL MAPPING AND MINERAL PROSPECTING PROGRAMS, RESOLVE RAGLAN PROJECT 2006 Resoive Ragan Project 2006 Assessment Report RESOLVE VENTURES INC 802 700 West Pencle' Vancouver B C VEC. ICE Te. 604-65.31T Fax 304-583-8087 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT: AIRBORNE GEOPHYSICS AND GEOLOGICAL MAPPING AND MINERAL PROSPECTING PROGRAMS NTS 35G/04, 35G/05, 35G/06, 35G/07, 35G/08 Nunavik, Québec Vancouver, December 2006 REÇU AU MRNF 1-45 DEC. 20 do Dac'oon du Obeiopen Ressources naturelles et etige, Quebec GM 6 2 7 9 6 15 FEV. 2007 Service de la Géoinformation 1 6; a. Resoive Ragan Project 2006 Assessment Report RESOLVE VENTURES INC 802 700 West Pencle' Vancouver B C VEC. ICE Te. 604-65.31T Fax 304-583-8087 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT: AIRBORNE GEOPHYSICS AND GEOLOGICAL MAPPING AND MINERAL PROSPECTING PROGRAMS NTS 35G/04, 35G/05, 35G/06, 35G/07, 35G/08 Nunavik, Québec Vancouver, December 2006 REÇU AU MRNF 1-45 DEC. 20 do Dac'oon du Obeiopen Ressources naturelles et etige, Quebec GM 6 2 7 9 6 15 FEV. 2007 Service de la Géoinformation 1 6; a. R so e Raglan Project 2006 Assessment Report 1. EXECUTIVE SUMMARY During August to September 2006, a nickel-copper-PGE sulfide exploration program was undertaken on Resolve Ventures Inc. properties, Nunavik Québec (Table 1). The exploration program consisted of a major airborne geophysical survey and minor geological prospecting and mineral prospecting programs. The airborne geophysical survey consisted of an AeroTEM II airborne electromagnetic survey flown by AeroQuest Ltd. (Milton, Ontario) from August 3 to 15, 2006. The survey was flown with line-spacings of 100 metres to 200 metres for a total of 4141.6 line-km over. The geological reconnaissance and mineral prospecting program covered target areas on the east half of the Resolve properties. Seventy seven target areas were identified from previous airborne geophysical surveys and new hyperspectral images for field evaluation. Forty one field stations were visited and five rock samples collected for assay. Ultramafic rock units and associated nickel-copper sulfide mineralization were sought but not found. However, the geology and prospecting program was cut short by inclement weather and assay results have yet to be returned by the laboratory. Recommendations for the 2007 exploration program include follow-up comprehensive geological mapping and mineral prospecting (including assay analysis of surface rock samples), ground geophysical surveys, and surface geochemistry surveys. The results will better define the extent of mineralization and advance development of additional exploration targets for drill testing. Expenditures during the 2006 exploration program claimed under this assessment report total $565,071. The breakdown of costs is presented below in Table 2. 2 Resolve Raglan Project 2006 Assessment Report Table 1. Summary of the Resolve Raglan Project 2006 exploration program. Exploration Program Category Number Airborne Geophysics line-km surveyed 4142 Geology & Prospecting target areas 77 field stations 41 no. of rock samples for assay 5 Table 2. Summary of expenditures for the Resolve Raglan Project 2006 exploration program. Assessment Category Expenditure $ Percentage Airborne Geophysics $494,121 87.4 Geology & Prospecting $70,950 12.6 TOTAL EXPLORATION PROGRAM $565,071 3 Resolve Ragan Project 2006 Assessment Report TABLE OF CONTENTS 1 EXECUTIVE SUMMARY 2 2 INTRODUCTION 6 3 LOCATION AND ACCESS 6 4 CLAIMS STATUS 9 5 GEOLOGY 10 5.1 REGIONAL GEOLOGY 10 5.2 MINERAL DEPOSIT TYPES 13 5.3 LOCAL AND PROPERTY GEOLOGY 14 6 HISTORICAL EXPLORATION 17 7 RESOLVE 2006 EXPLORATION PROGRAM 22 7.1 AIRBORNE GEOPHYSICAL PROGRAM 22 7.2 GEOLOGICAL RECONNAISSANCE AND MINERAL PROSPECTING PROGRAM 26 7.2.1 Target Area Selection 27 7.2.2 Reconnaissance and Prospecting 28 7.2.3 Rock Sampling and Analysis Procedures 32 7.2.4 Reconnaissance and Prospecting Results 32 8 INTERPRETATION AND CONCLUSIONS 34 9 REFERENCES 35 10 STATEMENT OF QUALIFICATIONS 39 4 Resolve Raglan Pro;eet 2006 Assessment Report LIST OF FIGURES Figure 1. Location map of the Resolve 2006 properties in Nunavik, Québec. ..7 Figure 2. Geological setting of the Resolve properties in the Cape Smith Belt. 11 Figure 3. Geological map of the Resolve property.. 16 Figure 4. Airborne geophysical 2006 survey coverage 25 Figure 5. Location of major target areas. 29 Figure 6. Location of field stations. 30 Figure 7. Location of surface rock sampling sites. 31 LIST OF MAPS Map 1. Topographic map showing the location of rock sampling sites for assay 33 LIST OF TABLES Table 1. Resolve Raglan Project 2006 exploration program summary 3 Table 2. Summary of expenditures for the Resolve Raglan 2006 Project 3 Table 3. Summary of expenditures for the 2006 airborne geophysical survey. 23 Table 4. Summary of parameters for the 2006 airborne geophysical survey 24 Table 5. Summary of expenditures for the geology and prospecting program 26 LIST OF APPENDICES Appendix A Resolve Raglan Property 2006 Claims Appendix B Field Station Descriptions Appendix C Surface Rock Sample Locations LIST OF CLAIM MAPS FOR RESOLVE RAGLAN PROJECT 2006 Map 1. Western Resolve property (1:25,000) Map 2. Central Resolve property (1:25,000) Map 3. Eastern Resolve property (1:25,000) Map 4. Far Western Resolve property (1:20,000) 5 Resolve Raglan Project 200E Assessment Report 2. INTRODUCTION This report summarizes work undertaken on Resolve Ventures Inc. properties in Nunavik, Québec during 2006 (Fig. 1). These properties collectively are referred to herein as the Resolve Raglan Project and comprise 1287 mineral claims underlain by rocks of the Paleoproterozoic Cape Smith Belt in northern Québec. The claims are 100% owned by Resolve Ventures Inc. (Resolve). The purpose of the summer 2006 program was to explore the potential of the properties for magmatic nickel — copper-platinum group element (Ni-Cu-PGE) sulfide deposits through airborne geophysical and geological reconnaissance and mineral prospecting survey programs. 3. LOCATION AND ACCESS The Resolve properties are located within National Topographic System (NTS) sheets 35G/04, 35G/05, 35G/06, 35G/07 and 35G/08 (Fig. 1) in northern Québec (Nunavik). The centre of the project area is located approximately 75 km southwest of Xstrata Nickel's (formerly Falconbridge's) Raglan (Katinniq) mine (Fig. 2). From the centre, the project area extends 40 km to the east-northeast and 45 km to the west-southwest (Fig. 2). 6 Resolve Raglan Project 2006 Assessment Report Figure 1. Location map of Resolve Ventures Inc. Ni-Cu-PGE sulfide properties (outlined in red) in northwest Quebec. Grey shaded areas represent adjacent and nearby properties of Goldbrook Ventures Inc. 7 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT The nearest permanent settlement is the hamlet of Salluit, located on the arctic coast approximately 100 km to the northwest of the Resolve properties. Salluit and Kangiqsujuaq (formerly Wakeham Bay) serve as the primary access points to the project area, with daily commercial passenger and cargo flights (Air Inuit, First Air,) from Montreal, Ottawa and Igaluit (formerly Frobisher Bay) via Kuujjuaq and Puvirnituq. Heavy equipment, fuel and freight can be shipped to Salluit and Kangiqsujuaq by ocean barge, with arrivals in July, August and September, and transported to camps in the field area by ski-equipped aircraft before spring ice- breakup or by large helicopter (e.g., B214ST and Sikorsky S61). The base of field operations for the Resolve Raglan Project was the Guindeau camp, located on the south shore of Lac Guindeau, 80 km to the northwest (572282 mE, 6828269 mN; NAD 83 Zone 18), and the Belanger camp, 10 km to the north (498032 mE, 6802523 mN). The latter camp is owned by Anglo American Exploration Canada, which is in Joint Venture with Goldbrook Ventures Inc. on the Belanger property north adjacent to the Resolve property. In summer, the Resolve properties are best accessed by helicopter. Lakes are generally too shallow for float planes. Fixed wing planes land at the Esker Lake airstrip and supplies are transported by helicopter 30 km east to Guindeau camp. There are three other airstrips in the region: Katinniq (Raglan mine), Purtuniq (Asbestos Hill), and Deception Bay. The Katinniq airstrip is a private airfield controlled by New Québec Raglan Mines Ltd. (Xstrata Nickel). The remaining airstrips are listed in the 1995 VFR Aeronautic Navigational Map as abandoned and in uncertain condition. The Resolve project area is located to the north of the tree line. Topographic relief ranges from 120 metres to 420 metres above sea level. Outcrop ranges from very poor to excellent. Exposed rock is affected by frost action, reducing many outcrops to heaved rubble and angular blocks. Lowland areas are typically covered by till and boggy tundra to swamps, with scattered boulder fields of frost-heaved blocks and cobbles. Generally, the entire Cape Smith Belt region is permafrosted to depths of up to 540 metres. Vegetation consists mostly of grass, moss and flowering brush. 8 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT Typical fauna in the region include caribou, fox, hare, snowy owl, Peregrine Falcon, Canada geese, and rodents. There are no black bears, but polar bears have been sighted on adjacent properties since August 2004. Local rivers and lakes contain char and trout. Summers are short, with temperatures ranging from 0°C to 20°C during June to September. Lake and river ice breaks-up in early July and lakes and rivers freeze in late September to early October. Weather becomes increasingly unpredictable in late summer and early autumn with fog, freezing rain, snow squalls and high gusty winds. The unpredictable weather increases stand-by time for helicopters and diamond drill rigs and increases exploration costs, particularly in June and September. Ground work during the winter months is largely restricted to ground geophysical surveys, because limited daylight hours, extreme cold weather and lack of water hamper other kinds of work.