Northern Eagle Gold Property Pic Township-Hemlo Gold Mining Area Thunder Bay Mining Division Marathon Region, Northwestern Ontario, Canada
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ASSESSMENT REPORT ON THE PROSPECTING AND ROCK SAMPLING PROGRAM NON-CONTIGUOUS CLAIM TB 4204055 - NORTHERN EAGLE GOLD PROPERTY PIC TOWNSHIP-HEMLO GOLD MINING AREA THUNDER BAY MINING DIVISION MARATHON REGION, NORTHWESTERN ONTARIO, CANADA For RR#1, Grann Drive, Shuniah, Ontario, Canada P0T 2M0 prepared by: Allan J. Willy, P. Eng., P. Geo., VP Exploration, Jiminex Inc. [email protected] tel: 416-462-1930 December 11, 2011 Claim Maps: Pic Twp. G-0630 NTS Maps: Federal 42D09 - 1: 50 000 scale Ontario 2016550053800 - 1:20 000 scale UTM Co-ordinates: 16U 554500 E - 5389900 N (approx. centre of Claim TB 4204055) 1 ALLAN J. WILLY, P. ENG. VP EXPLORATION, December 11, 2011 TABLE OF CONTENTS SUMMARY ............................................................................................................................ 4 1. INTRODUCTION .............................................................................................................. 7 2. CLAIM DESCRIPTION AND LOCATION.......................................................................... 7 3. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ....................................................................................................... 10 3.1 ACCESS ................................................................................................................. 10 3.2 CLIMATE ................................................................................................................ 10 3.3 LOCAL RESOURCES AND INFRASTRUCTURE ................................................... 10 3.4 PHYSIOGRAPHY.................................................................................................... 11 3.5 FIRST NATIONS OF THE REGION ........................................................................ 11 4. HISTORY ........................................................................................................................ 12 4.1 REGIONAL HISTORY ............................................................................................. 12 4.2 CLAIM TB 4204055 HISTORY ............................................................................... 14 5. GEOLOGICAL SETTING ................................................................................................ 17 5.1 REGIONAL GEOLOGY .......................................................................................... 17 5.2 CLAIM TB 4204055 GEOLOGY ............................................................................. 18 6. DEPOSIT TYPES............................................................................................................ 21 7. MINERALIZATION.......................................................................................................... 24 8. RECENT EXPLORATION ............................................................................................... 24 9. PROSPECTING AND SAMPLING PROGRAM 2011 ...................................................... 24 10. ADJACENT PROPERTIES ........................................................................................... 27 11. INTERPRETATION AND CONCLUSIONS ................................................................... 28 12. RECOMMENDATIONS ................................................................................................. 28 13. REFERENCES AND BIBLIOGRAPHY ......................................................................... 29 14. SIGNATURE PAGE ...................................................................................................... 31 2 ALLAN J. WILLY, P. ENG. VP EXPLORATION, December 11, 2011 CERTIFICATE: ALLAN J. WILLY, P.ENG., P.GEO. .......................................................... 32 APPENDIX 1: LIST OF PERSONNEL AND SUPPLIERS .................................................. 33 APPENDIX 2: ASSAY CERTIFICATES ............................................................................... 34 LIST OF TABLES Table 1 – 2011 Sample Locations, Descriptions and Results .................…..……..….…25 LIST OF FIGURES Figure 1 Location Map.........................................................................................................8 Figure 2 Mining Claim Map..................................................................................................9 Figure 3 Michano Historical Prospecting Map............................................................15,16 Figure 4 Regional Geology................................................................................................19 Figure 5 Claim TB 4204055 Geology.................................................................................20 Figure 6 Longitudinal Section of the Hemlo Gold Deposit..............................................23 Figure 7 2011 Prospecting Sample Location Map............................................................26 3 ALLAN J. WILLY, P. ENG. VP EXPLORATION, December 11, 2011 SUMMARY In September 2011, Jiminex Inc. contracted prospector Leonard Windover of Marathon, Ontario to prospect on the 2-claim unit non-contiguous claim number TB 4204055 belonging to the Northern Eagle property paying particular attention to historical trenches and to selecting samples having quartz vein and/or sulphide mineralization. Mr. Windover collected 25 rock samples which mostly assayed below detection limit for gold with the exception of one moderately geochemically-anomalous sample returning a value of 64 ppb gold from a carbonate vein. Claim TB 4204055 is a non-contiguous part of the Northern Eagle Claim Property currently under a 50-50 joint venture between Jiminex Inc. and Beaufield Resources Inc., Nepean, Ontario with Jiminex Inc. being the Operator. The Claim is located in the Hemlo-Marathon area, Northwestern, Ontario and close to the Village of Heron Bay on the Pic River First Nations reserve. Infrastructure is excellent with Trans-Canada Highway 17, a power transmission line, a Canadian Pacific rail line, the Pic River and Barrick Gold Corp.’s Hemlo gold mine all nearby. The first recorded gold discovery in the region was in 1869 when Moses Pee-Kon-Gay located mineralized showings near the present town of Heron Bay located about one km west of Claim TB 4204055. Prospecting and exploration continued from this time at sporadic and low to moderate levels up to the discovery of the Hemlo gold deposit by International Corona Mines Ltd. in March 1981. Since this time, dozens of junior mining companies and several senior companies have explored the Hemlo greenstone belt west to Marathon and east to White River. After the mines started production, the Hemlo exploration frenzy began to slow down with exploration work being done by only a few junior and major mining companies. Of the three mines established on the Hemlo deposit, the Golden Giant Mine was closed by Newmont Mining Corp. in January 2006. Barrick Gold Corp. owns the David Bell and Williams Mines which still in operation. Total gold production from the three mines on this deposit to December 31, 2010 is 20,370,271 ounces and reserves/resources are stated as 1,661,000 ounces for a total of 22,031,271 ounces of gold. The ground currently covered by Claim TB 4204055 was briefly explored by Lynx Canada Explorations in 1984 and by Hemlo Gold Mines Inc. in 1992. The most extensive work was done in 1996 by Duncan Michano, a prospector from Heron Bay, who conducted prospecting, trenching, soil sampling, geological mapping and assaying. A best assay of 2.9 gpt gold was obtained from weathered carbonate vein with quartz blebs, sericite, pink potassium alteration, varying amounts of pyrite and a trace of green mica. In 2009, Beaufield Resources Inc. flew 4 ALLAN J. WILLY, P. ENG. VP EXPLORATION, December 11, 2011 the Northern Eagle property, which includes Claim 4204055, using the VTEM and magnetic survey system of Geotech Ltd. Claim TB 4204055 is located in the east-central part of the Archean Schreiber-Hemlo greenstone belt which is situated in the northern part of the Wawa Subprovince, Superior Province of the Canadian Precambrian shield. The Hemlo portion of this greenstone belt is bounded to the north, south and east by large granitoid complexes which are the same age or older than the metavolcanics. Metamorphosed mafic volcanic flow rocks and intermediate to felsic calcalkaline volcaniclastite sedimentary rocks form the western part of the Hemlo greenstone belt, whereas metamorphosed greywacke-mudstone and minor metaconglomerate sedimentary rocks are predominant over metavolcanic rocks in the eastern part. The rock units strike easterly, have steep to vertical dips, and are isoclinally folded and normal faulted. Metamorphism is lower greenschist in the west part of the Hemlo belt up to upper amphibolite facies in the east, with the Claim TB 4204055 entirely in the greenschist zone. The geology underlying Claim TB 4204055, from the historic reports, is described as being felsic volcanics ranging from fragmentals to crystal to ash tuffs A chlorite-sericite schistose zone with pyrite was noted on the north slope of an easterly-trending valley located immediately north of the adit. This could represent the trace of the regional Hemlo-Heron Bay shear zone. The rocks are metamorphosed to greenschist facies. An adit exists near the river excavated a couple metres into a 12 metre wide carbonate vein with quartz veinlets, tourmaline and pyrite. There are two exploration target/models for Claim TB 4204055: the typical gold-bearing quartz- carbonate veins hosted in Precambrian greenstone rocks