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
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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. The properties are located immediately adjacent to claims held by Goldbrook Ventures Inc., Canadian Royalties Inc. and Golden Valley Mines Ltd.
4. CLAIMS STATUS
The Resolve Raglan Project refers to two contiguous claim blocks in the west- central part of the Cape Smith Belt (Fig. 2). The total number of claims is 1287 (53,072.6 Ha). All the claims are 100% owned by Resolve, registered at the Québec Ministry of Natural Resources, Wildlife and Parks, and in good standing. A complete list of the claims is presented in Appendix A. Maps showing all the claims are presented in the separate volume labeled "Resolve Raglan 2006 Project Claim Maps. Holding costs for the claims include renewal fees of $88 per claim every 2 years. The total assessment work requirement for all the Resolve property is $417,080 for 2006. There are currently 1% Net Smelter Returns (NSR) on the majority of the properties. Resolve has the option to purchase 50% of each NSR for CAN$1 million.
9 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
5. GEOLOGY
5.1 Regional Geology
The following summary of the geologic setting of the Cape Smith Belt is based on descriptions in government and NI43-101 reports. The Early Protrusion Cape Smith Belt or Ungava Orogen is a 375 km long collisional zone that corresponds to the northeast part of the Trans-Hudson Orogen. The New Quebec Orogen (Labrador Trough) and Thompson Nickel belt of Manitoba are also parts of the Trans-Hudson Orogen, which separates the Archaean Superior Province to the south and the Archaean or Proterozoic Churchill Province to the north (Hynes and Francis, 1982; Hoffman, 1990). The greenschist-facies foreland part or south domain of the Cape Smith belt is subdivided into three structurally superimposed Proterozoic units, which from oldest to youngest and from south to north are: the Lamarche Group, Povungnituk Group and Chukotat Group (Fig. 3) (Bergeron, 1959; Lamothe, 1994). St-Onge et al. (2006) include the Lamarche within the Povungnituk Group, which is the stratigraphic scheme adopted for this report. Four other structurally juxtaposed Proterozoic units form the amphibolite grade hinterland or north domain, which from south to north are: the Spartan Group, Parent Group, Perreault Group and Watts Group (Lamothe, 1994; St-Onge et al., 1992). The major Bergeron Fault separates the south domain from north domain. The overall tectono-stratigraphy of the Cape Smith Belt records rifting of the northern Superior Province from 2.04 Ga to 1.89 Ga. The Povungnituk and Chukotat Groups represent accumulation of sedimentary and volcanic units on a north-facing continental margin of this rift. Rift closure during the Hudsonian Orogeny at 1.83 Ga resulted in accretion of the tectono-stratigraphic units of the hinterland with a complex interaction of thrusting, penetrative shearing, metamorphism and imbrication of the foreland thrust belt (Lamothe, 1994; Lucas and St-Onge, 1989; St-Onge and Lucas, 1990; St-Onge et al., 1992).
10 RESOL VE RAGLAN PROJEC Fi gure 2
450000 500000 550000 600000 . G eol
o 4 NiS Deposit or Major Occurrence T 2006 ASSESSMENT REPORT gi c al Pe ridotite/Gab bro setti Parent, Watts, Spartan Groups n g Chukotat Group of th Povungnituk Group e R Gneisses esol v e pr o perti 0 es wi thi n th e ce nt r al ~ :750, 000 part Km
of 0 12.5 25 50 th 61'N e C 76'61 T5'W a pe RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
For the purposes of this report, the Povungnituk Group is sub-divided into three sequences: (1) a lower sequence (PPoi and PPosd; Lamarche and Dumas) consisting of conglomerate, sandstone, iron formation, semi-petite and minor dolomite and minor basalt and mafic volcaniclastic sediments; (2) a middle sequence (PPob and PPoga; Beauparlant) of bimodal basalt and rhyolite dominated by basalt and mafic volcaniclastic sedimentary rocks with alkalic basalt in the upper part,; and (3) an upper sequence (PPos; Nuvilik) of clastic metasedimentary rocks (sandstone, shale) and minor basalt. The middle sequence basalts conformably overlie the lower sedimentary units and have continental tholeiitic affinity (Hynes and Francis, 1982; Francis et al., 1983; Picard et al., 1990). Overall, the Povungnituk Group sequence rocks represent a continental rifting sequence. The Chukotat Group is dominated by massive and pillowed basalts ranging in composition from Mg-rich komatiitic basalts to N-MORB equivalents. This compositional range is reflected by mappable variations in basalt type, from olivine- phyric basalt in the south (base) to pyroxene-phyric basalt and finally plagioclase- phyric basalt to the north (top). Basalts of this group are structurally intercalated with thrust slices of pelitic and sulfide-bearing sedimentary rock of the Povungnituk Group. The Chukotat Group records the change from continental rift volcanism (Povungnituk Group) to the formation of transitional and possibly oceanic crust (Hynes and Francis, 1982; Francis et al., 1983; Picard et al., 1990). Pre-tectonic ultramafic intrusions, mainly peridotite and gabbro, and (or) flows within the foreland part of the Cape Smith Belt host numerous nickel-copper- platinum-group element (Ni-Cu-PGE) deposits Barnes et al., 1982; Barnes and Barnes, 1990; Lesher and Charland, 1999). The deposits consist of massive to disseminated sulfides located in the base of ultramafic-mafic units and are mostly magmatic segregation type (Lamothe, 1986; Giovenazzo, 1991). Nickel-Cu-PGE mineralization occurs mainly within two main horizons (represented in Fig. 3): (1) the Raglan horizon, host to most of the economic nickel deposits and located at the base of the Chukotat Group (Chisholm et al., 1999); and (2) the Delta horizon located farther to the south within the Povungnituk Group (Giovenazzo et al., 1989; St-Onge and Lucas, 1993). These sulfide-bearing ultramafic-mafic intrusions within
12 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
the Povungnituk Group are considered to be coeval with, and possibly feeders to, the volcanic rocks of the Chukotat Group (Francis et al., 1983; Bedard et al., 1984; Lamothe, 1994). Four structural events deformed the rocks of the Cape Smith Belt. Early D1 (in-sequence) and D2 (out-of-sequence) thrust faults form south-verging, east-west striking sequences set above a basal decollement at the Archaean basement- Proterozoic cover interface (Lucas and St-Onge, 1989; St-Onge and Lucas, 1990, 1994). The Povungnituk and Chokutat rocks are considered to be bound by thrust faults with numerous thrust faults present internally within the two groups. Two post- thrusting folding events defined by east-west trending D3 folds and north-northwest trending D4 folds, produced a large west-plunging synform with local basin and dome fold interference patterns in the east part of the Cape Smith Belt.
5.2 Deposit Types
The exploration target for Resolve is magmatic Ni-Cu-PGE sulfide deposits with mineralization characteristics similar to those observed within the Delta horizon or even the Raglan horizon. This horizon consists of a series of stacked mafic to ultramafic sills, dikes and possibly magma conduits within the middle sequence of the Povungnituk Group (Kiddie, 2005). Two main types of deposit occur within the Delta horizon: (1) massive to disseminated sulfides located at the base of a mafic- ultramafic body (magmatic segregation), and (2) disseminated sulfide mineralization associated with layered or differentiated mafic to ultramafic sills and dikes (Kiddie, 2005). Historically the Ni-Cu-PGE sulfide deposits of the Delta horizon include: (1) the Delta deposit (817,000 tons grading 3.05% Ni, 1.26% Cu and 2.6 g/t of Pd + Pt; www.melkior.com) and (2) the Expo-Ungava deposit (4,445,000 tonnes grading 0.8% Ni, 0.8% Cu, 0.04% Co, 0.1 g/t Au, 0.3 g/t Pt and 1.9 g/t Pd; www.canadianrovalties.com). New discoveries or significant additions to tonnage and grades of previously known deposits have also been made since 2001, including: the Ivakkak deposit (520,000 tonnes grading 1.6% Ni, 2.1% Cu and 4.4 g/t
13 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
PGE (www.canadianrovalties.com); Mesamax deposit (1,840,000 tonnes grading 1.9% Ni, 2.3% Cu, 0.08% Co, 0.9 g/t Pt, 4.3 g/t Pd and 0.3 g/t Au; www.canadianrovalties.com); the Mequillon deposit: (1.4 million tonnes at average grades of 0.7% Ni, 0.9% Cu, 0.03% Co, 0.2 g/t Au, 0.6 g/t Pt and 2.1 g/t Pd; www.canadianrovalties.com); the TK deposit (90,000 tonnes grading 1.6% Ni, 1.2% Cu, 0.1% Co, 0.1 g/t Au, 0.4 g/t Pt and 2.0 g/t Pd; www.canadianroyalties.com); and TooToo Zone (4,185,000 tonnes grading 0.6% Ni, 0.9% Cu, 0.03% Co, 0.2 g/t Au, 0.7 g/t Pt and 2.4 g/t Pd; www.canadianrovalties.com). Additionally, Ni-Cu-PGE mineralization was discovered in 2004 within 10 km to the north on Goldbrook Venture Inc.'s Getty and Sylvie zones; www.aoldbrookventures.com) and in 2003 by Golden Valley Mines on its West Shoot-Out Property (www.c oldenvallevmines.com). Novawest Resources Inc. and Cascadia International Resources Inc. also reported significant assays of 26.8 g/t Pd, 9.3 g/t Pt and 9.3% Cu from a trench sample located approximately 5-10 km north of the Resolve property. The Raglan horizon hosts nine of the most significant Ni-Cu-PGE deposits of the Cape Smith Belt. The horizon consists of a series of layered mafic to ultramafic units along a strike length of 85 km of the upper sequence of the Povungnituk Group. Deposits are of the magmatic segregation type at the base of one or more ultramafic units (Kiddie, 2005). The largest deposit, at 8.97 Mt, of 3.06% Ni and 0.89% Cu (Canova and Keast, 2003) is the Katinniq deposit, currently mined by Xstrata Nickel. Geochemically in these deposits, nickel tends to dominate over copper with ratios generally in the range of 3:1, whereas the Delta horizon deposits tend to be relatively more copper-rich with roughly similar proportions of nickel and copper (Mungall and Keast, 2003).
5.3 Local and Property Geology
The Resolve properties are underlain by rocks of the lower sequence and the lower part of the middle sequence of the Povungnituk Group (Fig. 3). The lower sequence underlies most of the south and south-central parts of the property and consists mainly of siltstone, sandstone, and conglomerate with minor dolomite,
14 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT phyllite and possibly iron formation (Lamothe, 1994). Contact between the lower and middle sequences is a (folded) north-dipping thrust fault, which is marked geophysically by a moderate to intense magnetic high and numerous EM conductors (Aeroquest Limited, 2004). The west and northwest parts of the Resolve property are underlain by middle sequence rocks (Fig. 3). The rocks consist of basalt and diabase to microgabbro intruding sedimentary rocks. Although most of the Resolve property appears to lie to the south of the South Raglan Horizon, many of the gabbro intrusions may have potential for Ni-Cu-PGE mineralization. Several episodes of complex folding and thrust faulting deformed the rocks underlying the Resolve properties. In particular, several anticlinal structures are represented on MRNQ geology maps. These features in addition to possible presence of additional thrust faults in the area have potential to repeat or duplicate stratigraphy favourable for Ni-Cu-PGE sulfide mineralization.
15 RESO
MAO ;mow~r —61'3t1RN LVE
r~ Aft- RAG ~• , , _ --y„1c ~ ~+ /' ;~ "P"'797;7 ~ LAN ~ 7- 49' saft" ....j.¢ PROJECT 2 „Aar Jr~p 8 / 006 A SSE SSMENT REPORT
7;f ►~~/' t~ Gabbro [_I — ~ middle sequence I J SMITH SUITE ''Basalt volcaniclastic rock 3 SPARTAN GROUP Petite. graphitic schist, Sandstone sandstone; wacke.tuff, pyroclastic rock; gabbro ;Silicate and carbonate facies }over sequence ( _f PARENT GROUP ironstone, chert Plag• or pyroxene phyric basalt; pyroxenite, gabbro; RESOLVE PROPERTY ARC HEAN (Gneiss es) feldspar-biotltehomblende schist I IBiotite+/-hornblende+/-e pi dote+/-titanite m onzogranite and Resolve Ventures Inc WATTS GROUP porp hyribc monzon ;Basalt diabase,sheeted Ores; gabbro t e es; pyroxenite, (Biotde+l•hornblende~/-epidote+/-tltanite--- monzogranite and lPyraxende C tonalite locally with enclaves of mar icrock (Layered gabbro Brotrte+/-hornblende+l- epidote+/-titaniite+/-allanite ton alite Massive peridotite I I '1:400,000 CHUKOTAT GR OU P and granodiorite; biotic monzogranite veins; tonalite gneiss, granodiorite gnebs Gabbro Km Peridotite IIIIISemip elite, pelite, psammite, quartzite, conglomerate; marble; amphibolite; biotite+/-garnet+/-cordierite+l-sillimanite Dominantly pyroxene phyric basalt; gabbro 0 5 10 20 Dominanry olivine-phyric basalt gabbro, peridotite paragnebs; biotite monzograniie veire HNINE or nb le nd e+/- b iotite+R magnetite+R CPX quartz diorite; POVUNGNITUK GROUP Coordinate System: NAD83 Zone 18 ®Semipelite, schist slate, pelle: gabbro, a north asitic gabbro; hornblende-biotite amphibolite; eridot te; pyroxenite; bi otite monzog ranite veins gabbro, peridotite upper sequence P RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
6. HISTORICAL EXPLORATION
Previous exploration work performed over what is now the Resolve properties and filed as work assessment reports with the MRNQ is summarized below (adapted from Jobin-Bevans and MacDonald, 2005). Although an attempt was made to emphasize those files that encompass significant parts of the current property boundaries, most work filed with the MRNQ covered peripheral parts of the properties or was too broad and regional in nature to provide pertinent data sets. Listings of the GM series MRNQ reports and summaries are available online through the MRNQ EXAMINE database at http://www.mrnfp.gouv.gc.ca/english/home.isp.
GM 06314 (1957) Company: Cape Smith Québec Mines Ltd, North Rankin Nickel Mines Ltd. Document Title: Note concernant une liason possible entre les gisements de nickel de North Rankin Nickel Mines (Manitoba) et ceux de la zone de Cape Smithe — Wakeham Bay. Geochemical analyses. Comments: No further information provided.
GM 08597 (1958) Company: Asarco Nickel Co Ltd., Kovik Québec Mines Ltd., Le Moyne Ungava Mines Ltd. Document Title: Geological Report - Bedrock mapping, sample collection and Ni, Cu assays. Comments: The area covered by this report is located immediately north of the Property and claim blocks 111923-11925 and parts of claim blocks 111161 and 111896-1111901 occur within the area covered by this assessment report. The data used in the writing of this report failed to lead to the identification of any new mineralization on the property.
17 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
GM 10208 (1958) Company: Hudson-Ungava Nickel Mines Ltd., Sugluk Québec Mines Ltd. Document Title: Engineering Report and Extract from Annual Report to Shareholders - Bedrock mapping, prospecting, sample collection, and Ni, Cu assays. Comments: Report covers parts of 164 claim blocks at the eastern end of the Property.
GM 10449 (1957) Company: Aerophysics of Canada Ltd., Spartan Air Services Ltd. (Company authors). Document Title: Report on Airborne Electromagnetic Survey Ungava Concessions, Cape Smith — Wakeham Bay Area. Comments: Series of low-resolution airborne electromagnetic surveys covering several NTS blocks across the entire Ungava Belt.
GM 12324 (1958) Company: Canadian Aero Service Ltd. (Company author). Document Title: 7 Plans of Airborne Magnetometer Survey, Povungnituk River Area. Comments: The survey encompasses several large areas, of which two overlie parts of the Property, and specifically NTS sheets 35G/07 and 35G/08.
GM 12384 (1962) Company: Assembly Mines Ltd. Document Title: Map showing topography and property locations of concession grants, Cape Smith — Wakeham Bay area. Comments: Property position map from 1962 of the entire Ungava Belt generated for Assembly Mines Ltd. No exploration work is reported.
18 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
GM 12459 (1958) Company: MRNQ Document Title: Description sommaire des travaux faits dans la zone de Cape Smith — Wakeham Bay Durant L'ete de 1957. Comments: Survey covers several NTS sheets and includes rock analyses for silver, copper, nickel, lead and zinc and drill hole locations. No drill holes are located within areas covered by the Property.
GM 17511 (1960) Company: Le Moyne Ungava Mines Ltd., Raglan Nickel Mines Ltd. Document Title: Report on the economic feasibility on nickel-copper deposits. Comments: Feasibility study. The area covered by the report approximately corresponds to the Raglan and Delta Horizons. The Delta Horizon or south trend section of this report covers parts of NTS sheets 35G/7 and G/8 and the northern edge of the Property, covering parts of 10 MDUs (1111923 — 1111925; 1111896 — 1111901; 1111691). This report identified no mineralization on the Property.
GM 26480 (1970) Company: AMAX Exploration Inc. Document Title: Report on Airborne VLF and Radiometric Surveys Comments: Airborne VLF and Radiometric survey. One of the 12 parts of this survey covers 38 MDUs in the northwest part of the Property.
GM 36257 (1980) Company: Amax Exploration Québec Ltd., Cominco Ltd. Document Title: Summary of exploration programme and 16 DDH logs Comments: Detailed geological mapping and sampling, ground magnetic and HLEM surveys and diamond drill program by Cominco Ltd. over permits held by Amax Exploration Inc. Areas covered by this exploration work occur mostly north of the Property with only parts of the surveys lying in 10 MDUs (1111923-1111925;
19 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
1113844-1113850) of the Property. This report identified no mineralization or drill holes on the Property.
GM 39064 (1972) Company: Shell Canada Ltd. Document Title: An analysis of the base metal deposits and proposed exploration target areas in Québec. Comments: Feasibility study, technical evaluation. Report covers entire province of Québec. Areas covered by this study within the Ungava area occur mostly east of the Company's Property with 19 MDUs occurring partially or wholly within bounds of the survey/report area (MDUs 1111570 — 1111584; 1111532-534; 1111552).
GM 46345 (1987) Company: International Platinum Corp. Document Title: Report on the geology and mineral potential of the Ungava property, exploration permits 766 and 767. Comments: Geological mapping and sampling; ground magnetic and VLF geophysical survey, geochemical analyses. Part of report covers northwest section of the Property including all or parts of 71 claims (MDUs). No mineralization was noted on the Property.
GM 48412 (1988) Company: Falconbridge Ltd. Document Title: Occurrences of the Kenty Lake area. Comments: Geochemical analyses, detailed geological mapping. Focus of report area is almost entirely north of the Property, except MDU 1111923.
GM 54084 (1996) Company: First Western Minerals Inc. Document Title: DighemV Survey, Nuvilik/Sub, Delta and Voisin Blocks
20 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
Comments: Airborne geophysical survey. The areas covered by the geophysical — surveys lie almost entirely north of the Property, excepting MDU 1111923.
GM 54085 (1996) Company: 2973090 Canada Inc. Document Title: DighemV Survey, Ungava Region Comments: Airborne geophysical survey. The areas covered by the geophysical surveys lie almost entirely north of the Property, excepting MDU 1111923.
GM 56017 (1998) Company: 2973090 Canada Inc.; Dumont Nickel Inc. Document Title: Report on the 1998 exploration program, Shoot Out Prospect Comments: Rock analyses and geological mapping. The areas covered by this report occur almost entirely to the north of the Property.
GM 56653 (1999) Company: Cunico Exploration Ltd. Document Title: Report on Cunico permits, Raglan area. Comments: Technical evaluation. Logistical and geological evaluation report for Cunico Exploration Ltd., covering the north-northeastern part of the Property including 35 claims (MDUs: 1111539-550; 1111557-571; 1111576-583). No mineralization was reported on the Property.
GM 57830 (1999) Company: Dumont Nickel Inc. Document Title: Report on the 1999 exploration program, Ungava projects. Comments: Geological mapping, sampling, geochemical analyses, drilling. The areas covered by this report occur almost entirely to the north and northeast of the Property.
21 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
GM 61394 (2004) Company: Aeroquest Limited Document Title: Report on a helicopter-borne magnetic and electromagnetic survey "featuring the AeroQuest AeroTEM System". Comments: Helicopter-borne geophysical survey carried out on behalf of the Company and Acrex Ventures Inc. over central and east parts of what is now the main part of the larger Resolve property. The survey was flown N-S at 100 metre line spacing over the central part of the 2004 claim block and 200 metre line spacing elsewhere. Tie lines were flown at a nominal spacing of 1250 metres. In total, 2736.4 line-km were flown and numerous airborne electromagnetic anomalies identified. It is these anomalies that aided identification of the 77 target areas for the 2006 geological reconnaissance and mineral prospecting program.
7. RESOLVE RAGLAN PROJECT 2006 EXPLORATION PROGRAM
Exploration on the Resolve properties in 20096 consisted of two programs: (1) a major airborne geophysical survey program and (2) a minor geological reconnaissance and mineral prospecting program. The two programs are described in the following sections.
7.1 Airborne Geophysical Survey Program
A helicopter-borne geophysical survey was flown over all the Resolve Raglan properties between August 2 and August 15, 2006. The survey was flown by AeroQuest Ltd. of Milton, Ontario. Complete details of survey parameters and technical specifications, along with a complete series of geophysical maps, are presented in a separate volume labeled "Airborne Geophysical Survey of Resolve Raglan 2006 Project". Expenditures for the 2006 airborne geophysical survey program totaled $494,121. A breakdown of all the survey costs is presented below in Table 3.
22
RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
Table 3. Summary of expenditures for the Resolve Raglan Project 2006 airborne geophysical survey program.
Assessment Category Expenditure Percen Contractor Costs $394,416 79.8 Field Supplies & Services $94,936 19.2 Salaries $4,770 1.0 TOTAL AIRBORNE GEOPHYSICS $494,121
In summary (Table 4), the airborne geophysical survey coverage totaled 4141.6 line-km. The base of operations, fuel supplies and field crew accommodation for the AeroQuest crew was at Anglo American's Belanger Camp (498032 mE and 6802523 mN). The survey employed the AeroTEM II time-domain electromagnetic system together with a high-sensitivity cesium vapour magnetometer and a differential GPS. The survey covered the two claim blocks of the Resolve property (Fig. 4) for a total of 1187 claims. Flight lines were oriented north-south relative to the UTM grid (NAD83 zone 18) and the survey was flown with line spacings of 100 metres for the Resolve 1 block and 200 metres for the Resolve Infill 1 and Resolve Infill 2 blocks (Table 4). The latter two blocks were previously flown at 200 metre spaced lines in 2004 and the infill surveys were designed to achieve uniform coverage and resolution over all the properties. More importantly, the small size and shape of individual deposits in the Delta horizon means they could be missed in 200 m spaced line surveys. Control or tie lines were flown orthogonal to the survey lines at spacings of 1250 metres for Resolve 1 and Resolve Infill 1 and 1150 metres for Resolve Infill 2.
23 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
Table 4. Summary of AeroTEM II survey specifications for the Resolve Raglan 2006 Project.
Survey Block Line Line Spacing Direction
Resolve 1 100 N-S 1850.1 1649.2 August 8-11 Resolve I nfi l l 1 200 N-S 2140.9 1901.2 August 2-6 Resolve Infill 2 200 N-S 150.6 143.5 August 12, 15 Total 4141.6 3693.9
A complete set of geophysical maps is included in the separate volume labeled "Airborne Geophysical Survey of Goldbrook Raglan 2006 Project". The maps are coloured total magnetic intensity (TMI) with line contours and EM anomaly symbols and AeroTEM off-time profiles Z5-Z15 or Z2-Z12 and EM anomaly symbols. All the maps show flight lines, topography, and conductor picks represented by an anomaly symbol classified by off-time conductance, thin or thick classification and an identifier label.
The airborne EM data were collected too late for exploration follow-up during the 2006 field season. These data will be integrated with all the other geophysical, geological and geochemical survey data sets in order to identify and rank integrated anomalies for ground investigation in 2007.
24 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
erungnittai Rimy.
Resolve Inflg2
Resolve Infill 1 (20001 spaang)
Resolve-1 (100n acinp)
10
kl IORleters nad83 zone 18 1
Figure 4. Claim blocks of the Resolve property covered by the 2006 airborne geophysical survey.
25
RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
7.2 Geological Reconnaissance and Mineral Prospecting Program
A limited geological reconnaissance and mineral prospecting program was undertaken on the Resolve properties, based from the Goldbrook Ventures camp at Lac Guindeau. The program commenced August 31 and ended September 5, 2006, prior to completion because of inclement weather conditions. The program was designed to identify the location of ultramafic rocks and associated nickel sulfide mineralization for follow-up ground geophysical surveys, geochemical surveys, detailed mapping and prospecting, and diamond drilling in 2007. Careful data study led to delineation of target field areas for investigation. Field investigation involved daily helicopter transport to and from the field, ground traverses by multi-person teams of geologists and prospectors, and collection of rock samples for assay analysis. Expenditures for the 2006 geological mapping and mineral prospecting program totaled $70,950. A summary of costs is presented below in Table 5.
Table 5. Summary of expenditures for the Resolve Raglan Project 2006 geological reconnaissance and mineral prospecting program.
Assessment Category Expenditure $ Percentage Analyzes $806 1.1 Charter Services $4,104 5.8 Communication $78 0.1 Contractor Costs $24,456 34.5 Field Supplies & Services $25,369 35.8 Salaries $13,078 18.4 Travel & Accommodation $3,059 4.3 TOTAL GEOLOGY AND PROSPECTING $70,950
26 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
7.2.1 Target Area Selection Target areas were selected on the basis of hyperspectral images and topographic maps purchased for the 2006 exploration program and geophysical, geological and topographical maps and images available from previous exploration programs and government surveys. The hyperspectral data were collected over the entire Raglan belt in 2000. In 2006, Resolve contracted Advanced Exploration Inc (Denver, Colorado) to convert the data to reflectance and process it via proprietary ENVI software. The two image products delivered are the Spectral Angle Mapper (SAM) results for iron oxides and a Decorrelation Stretch (DCS). Generally in the Raglan Belt, the DCS images proved to be a reliable aid in locating ultramafic units in the field. For the DCS, three Short Wavelength InfraRed (SWIR) channels are displayed and then contrast-stretched using the ENVI decorrelation stretch routine. This routine maximizes contrast of rock types based on mineral composition. The SWIR channels were selected to aid detection of areas dominated by serpentine (i.e., ultramafic rocks) versus chlorite (i.e., mafic rocks). Rocks rich in the serpentine appear to be deep purple to magenta in colour on the hyperspectral images. In addition to favourable hyperspectral characteristics, areas were also selected for field evaluation on the basis of limited strike-length airborne electromagnetic anomalies on the flanks of discordant high-positive airborne magnetic anomalies. Topographic images and air photographs were employed to identify geophysically favourable areas of outcrop or subcrop. Critical ingredients in target selection were compilation maps purchased from the Geological Survey of Canada (St-Onge et al., 2006) and NTDB topographic maps (1:50,000 scale) purchased from the National Research Council of Canada.
27 RESOLVE RAGLAN PROJECT 2006 ASSESSMENT REPORT
7.2.2 Reconnaissance and Prospecting In total 77 target areas were selected in the central and eastern parts of the main Resolve property for geological reconnaissance and mineral prospecting (Fig. 5). Traverses were planned to investigate flanking airborne conductor-magnetic high locations, identify and delineate extent of mafic-ultramafic bodies and any associated sulfide mineralization. Field personnel assigned field station numbers and recorded information at outcrop and subcrop areas, including location (using handheld GPS), rock type, lithologic contacts, presence of sulfides and sulfide minerals, structural information (e.g., orientation of bedding, foliation, folds and faults), and the location of samples collected for analysis. The information collected by each geologist or team was entered daily into a digital database at camp. In total 41 field stations were described and documented (Fig. 6). Field station descriptions are compiled and presented in Appendix B.
28 RESOLVE RAGLAN PROJEC pr os pecti Fi gure 5 n g 460000 470000 480000 490000 500000 510000 520000 530000 540000 on . th
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I 460000 470000 480000 490000 500000 510000 520000 530000 540000 RAGL I ) I I I I I I I N AN PROJ
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i i i i i i i 1 LAN PRO 7 . S am N Legend pli JECT
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