52A12SW2019 2.19696 DAWSON ROAD LOTS 010 REPORT ON MAGNETOMETER S VLF-EM SURVEYS SHABAQUA "CALDERA" PROPERTY FOR GOLD CACHE INC. THUNDER BAY ON. P. NIELSEN, EXPLORATION GEOLOGIST RECEIVED SEP 1 3 1999 Thunder Bay, ON. E ASSESSMENT OFFICE __ TABLE OF CONTENTS I.0 Introduction 2 2.0 Location and Access 2 3.0 Property Description 2 4.0 Regional Geology 2 5.0 Mineralization 5 6.0 Survey Description 6 7.0 Data Processing and Presentation 6 8.0 Results of Surveys 6 9.0 Conclusions 7 10.0 Recommendations 8 II.0 References 9 Certificate of Qualifications 10 Figures 1.0-Location Map 3 2.0- Claim Map 4 Appendix 1 Specifications EDA Omni Magnetometer/ 11 VLF System-Scintrex Maps 1- Ground Magnetic Survey Scale 1:5000 Postings of Total Magnetic Field 2- Ground Magnetic Survey Scale 1:5000 Contours of Total Magnetic Field 3- VLF-EM Survey Scale 1:5000 Profiles and Postings- Cutler Me. (24.0 kHz) 52A12SW2019 2.19696 DAWSON ROAD LOTS Q10C 1.0 Introduction The Shabaqua area has caused considerable interest on the part of numerous exploration companies. In 1995 the region was designated as an emerging new gold camp and named the "Matawin Gold Belt" by the Ontario Geologic Survey. This report presents and discusses the results of a combined magnetometer and VLF-EM survey conducted on the Gold Cache Inc. Shabaqua "Caldera" Property claims. The surveys were carried out by Mtec Geophysics Inc. under the direction of Mike Milani, between July 7-18, 1999. The author was requested to interpret and report on these surveys for Go!d Cache Inc. in his capacity as an independent consulting geologist. 2.0 Location and Access The claims are accessed directly from Highway 17, 3 km. east of the junction el Highway©s 11 and 17, approximately 60 km. west of the City of Thunder Bay, Ontario (Figure 1). Several private roads extending south from Highway 11-17 allow access to the northern part of the property through the Dawson Road Lots. 3.0 Property Description The Shabaqua "Caldera" property currently consists of 103 mining units in 10 contiguous mining claims located within the Thunder Mining Division centered at UTM coordinates 0288000m E and 5384000m N (Zone 16). The claims straddle Horne and Laurie Townships and the Dawson Road Lots (Figure 2). The claims are numbered TB1173906 (1), TB 1173909-TB1173917 (9). 4.0 Regional Geology Carter (1984) has described the regional geology of the area. The area is underlain by interlayered metasediments and metavolcanics occurring in two sequences referred to as the Keewatin type and Timiskaming type Archean rocks. In the Keewatin type sequence, metavolanics comprise an interlayered suite of komatiite, theoliitic, calc-alkalic and alkalic rocks, and interflow clastic and chemical metasediments. The Keewatin type metasedimentary rocks, hereafter termed Quetico metasediments, occur in Goldie Township and consist almost entirely of metawackes which display beds ranging from six to ten inches thick and graded bedding and crossbedding that permit facing directions to be determined. Felsic intrusive rocks are granitic to tonalitic, and syenitic with muscovite pegmatites intruding the Quetico metasediments. Lensoid metagabbroic rocks elongated in the direction of the regional strike intrude the Keews-in type metavolcanics in the northern part of Horne Township and the Quetico metasediments in the southern part of Goldie Township. Unconformably overlying the Keewatin type metavolcanics and metasediments is a later volcano-sedimentary Timiskaming type sequence of predominantly clastic metasediments interlayered with tote SCft. tW f1a,i l MAP DF CONTIGUOUS CLAIMS TB1173906 to TB1173917 85 86 87 88 E 89 90 91 Figure 1 Claim Map ip. "Caldera" Prnnprtv red and gray trachyte and varicolored blotchy red and green trachyandesite flows. This sequence occurs in two linear belts, a more northerly belt trending east-southeast, and more southerly belt trending east-west. Both the Keewatin type and Timiskaming type sequences are intruded by diabase and hornblende and mica lamprophyre dikes trending northwest, east and northeast. The Keewatin type supracrustal rocks have been metamorphosed to the greenschist and amphibolite facies of regional metamorphism, the metamorphic grade increases northward. The Quetico type metasediments exposed in the northern part of the area are isoclinally folded about east-west trending axes as indicated by facing directions from graded bedding. A moderately developed foliation is present, throughout the area, trending parallel to the fold axes, dipping steeply to the north or south. The Timiskaming type metasediments also dip steeply and in the northern belt are isoclinally folded about southeasterly trending axes plunging southeast. A well developed east-west foliation in the west swings southeast in the eastern part of the area. In the southern belt, foliation is generally absent and regional folding could not be outlined.. 5.0 Mineralization The Ontario Geological Survey in their Report of Activities, 1983 Paper 107 describe two distinct environments of gold mineralization in the Shabaqua-Shebandowan Lakes area: Type 1) Shebandowan Stock-Contact Zone Type: Gold mineralization occurs in quartz+carbonate veins in shear zones, related to the Shebandowan Stock... Type 2) Chert-Stratabound Type: Gold mineralization occurs in a chert/chert-breccia unit, with possible syngenetic implications and/or epigenetic concentration during dynamic metamorphism and/or deformation. The recommended exploration targets included felsic metavolcanic units hosting oxide ironstone and chemical sedimentary rocks. Such environments possess large tonnage possibilities with mineralized zones amenable to geophysical surveys and diamond drilling programs. Townships recommended included Laurie, Horne, Goldie an© the Dawson Road Lots. The Gold Cache mining properties are on strike with the East and West Bylund occurrences 3 km. to the east. On an adjoining property, Lynx-Canada documented gold over a 270 ft. strike length ranging between 0.08 and 0.21 oz./ ton, averaging 0.13 oz, Initially, eleven rock samples were taken on the Gold Cache Inc. property over 100 meters. All samples contained gold, ranging from 8ppb. to 8066 ppb (0.235 Au. opt). Hemlo Gold (Battle Mountain Gold) independently resampled these sites in August 1995 They confirmed that all samples contained gold values ranging from 10 ppb. to 14 grams ( 0.429 Au opt). Grab samples taken toward the Bylund occurrences assayed 0.064 and 0.035 Au opt., reinforcing the possibility of a continuously mineralized zone at surface along the north side of the claims. Cross-stripping in 1996 confirmed that the goid mineralized zone is continuous toward the Bylund occurrences. 6.0 Survey Description The magnetometer (38.Hine km.) and VLF-EM (34.8 line km.) surveys were conducted on the north part of the property on previously cut-line grids. Cross line spacing was 100m. The magnetic survey was carried out using an EDA/Scintrex OMNI PLUS proton precession magnetometer measuring variations in the total field at 12.5m intervals on the cross lines of the grid as well as Baseline 4000N, with a sensitivity of 0.1 nT. Readings were recorded digitally, as were the corresponding diurnal variations which were monitored and recorded using an OMNI base station. The VLF-EM survey was conducted simultaneously using the same EDA OMNI PLUS geophysical system. Readings were recorded digitally at 12.5 m station intervals employing the low frequency transmitter located at Cutler Maine transmitting at 24.0 kHz Poor station coupling did not allow readings along the 4000N baseline. 7.0 Data Processing and Presentation The digitally recorded magnetic data were corrected for diurnal variations by subtracting the base station values. The resulting corrected data were gridded and contoured using Geosoft software. The posted magnetic data are presented on Map 1 at a scale of 1:5000, while the contoured data may be found on Map2. The VLF data are presented in standard fashion as in-phase and quadrature profiles, with a profile scale of 1cm = 5007o. The results can be seen on Map3 at a scale of 1:5000. 8.0 Results of Surveys Magnetic Survey The magnetic survey outlined 5 significant features, together with several weak subsidiary anomalies. The resultant features have been summarized in the following tabie. Location Length Trend Comments L8900E - 4600N to 850m + 325 4000 nT above background, consistent with L9500E - 4000N deg. intensely folded magnetite bearing FeFM AZ. L7800E - 5000N to 500m -i- 300 Up to 3500 nT above background, probable L8200E - 4800N deg. source is magnetite bearing ironstone. L7600E - 5650N to 400m * 310 Up to 8000 nT above background, consistent L8000E - 5400N deg. with magnetite bearing banded iron formation. L7000E - 5300N to 150m + 290 3000 nT anomaly , may extend to L 7700E - L7100E-5250N deg. 4890N, parallel ironstone to L7800E to L 8200E L6500E - 4200N to 400m 300 1500 nT above background, probable source L6800E-4100N deg. weakly mineralized ironstone. VLF-EM Survey The VLF-EM survey outlined 6 significant features, together with several subsidiary anomalies. The resultant VLF anomalies have been summarized in the following table. Location Length Trend Comments L7200E - 4400N to 750m 270- No significant coinciding magnetic response - L7900E - 4025N 300 deg. AZ L7100E-4800Nto 2400rrn- 300 Formational unit with weak coincident | L8600E - 4000N deg magnetic response (500-1000 nT). j AZ. L8200E - 4375N to 850m 295 Fragmented anomaly with up to 600 nT i L9000E - 4000N deg coincident magnetic anomaly ! AZ. L8200E - 4650N to 1300m 295 Strong flanking magnetic anomaly at eastern ; L9400E - 4200N deg end of EM anomaly ^ 3000 nT) AZ. L6000E - 5725N to 1400rm 295 Long linear feature, probably cultura! © L8200E - 5250N deg coinciding with hydro line, parallel feature on i AZ. north side of line mirroring above described anomaly. L7100E-5825Nto 1250m 290 Long broad anomaly, coinciding with highway, L8300E - 5550N deg possible buried cables. AZ. 9.0 Conclusions All significant magnetic anomalies are consistent with NW to NNW trending iron formation the locale for Au mineralization in the Shabaqua-Shebandowan area.