JAMES E. TILSLEY ft ASSOCIATES LTD. 32005SE8039 a. 12191 BEN NEVIS 010 REGAL GOLDFIELDS LIMITED Exploration Program - 1988 BEN NEVIS PROPERTY Larder Lake Mining Division Ontario James E. Tilsley Si Associates Ltd. Consulting Geologists and Engineers Gp. BOX 115, R.R. #2 Aurora, Ontario, Canada L4G 3G8 February 06, 1989. JAMES E. TILSLEY 8c ASSOCIATES LTD. 33DeSSEee39 2.18191 BEN NEVIS 010C TABLE OF CONTENTS SUMMARY AND CONCLUSIONS l INTRODUCTION . 3 LOCATION AND ACCESS . 4 CLIMATE, TOPOGRAPHY AND LOCAL RESOURCES 5 PROPERTY . 6 SURFACE RIGHTS . 7 HISTORY . 7 GENERAL GEOLOGY . 10 MINERALIZATION 12 PRODUCTION . 13 RESERVES . 13 GEOLOGY AND DIAMOND DRILLING . 14 SAMPLING . 20 GEOPHYSICAL SURVEYS . 23 MAGNETIC SURVEY . 25 VLF-EM SURVEY . 26 RECOMMENDATIONS . 27 ESTIMATED EXPLORATION COSTS 30 REFERENCES . CERTIFICATES . JAMES E. TILSLEY 8c ASSOCIATES LTD. Appendices Appendix I Diamond Drill Logs Diamond Drill Sections Appendix II Copies of Assay Certificates MAPS Surface Geology 1:2500 North Sheet in pocket South Sheet Magnetometer Survey 1:2500 North Sheet South Sheet VLF-EM Survey 1:2500 North Sheet South Sheet JAMES E. TILSLEY 8t ASSOCIATES LTD. SUMMARY AND CONCLUSIONS Geophysical surveys have been completed over most of the Ben Nevis property of Regal Goldfields Limited. Geological mapping of 17 of the 35 claims was done before snowfall obscured the outcrops. The surveys indicated four separate targets which were diamond drilled by N. Morissette Canada Inc. of Haileybury, Ontario. A total of 2008 lineal feet of NQ core was drilled in five holes. The best gold assay values returned from the core samples taken included 0.688 g/t, 0.249 g/t, and 0.232 g/t, from an area showing a magnetic anomaly with approximately 5?; pyrite mineral ization (Diamond drill holes #2 and #3). Silicification, carbonatization, quartz-carbonate veining, and zones of shearing were observed in the core from all holes. These features indicate conditions favourable for gold and for base metal mineralization. Further exploration of the property is recommended. The suggested work program is designed to test for base and precious metal bearing shear zones similar to those being explored on the claims adjoining to the north. This work can be done most effectively during the summer months. Special attention should be paid to the most northwesterly claims since the structure that hosts the most important mineralized zones on the adjoining property strikes southwest from Ranger Lake toward the north end of Pushkin Lake. Any JAMES E. TILSLEY 8t ASSOCIATES LTD. extension of that favourable zone would likely pass through claims L-1015656, L-1015657, and L-1015658. The cost of the recommended exploration program is estimated at $46 639.00. JAMES E. TILSLEY ft ASSOCIATES LTD. INTRODUCTION In November, 1988, Regal Goldfields Limited acquired a group of thirty-five mining claims in Ben Nevis Township, Larder Lake Mining Division, Ontario. A base line was established across the property in a northwest-southeast direction (azimuth 320 0 ), with profile lines cut every 100m. Stations were estab lished at 25m intervals along the profiles. Geological mapping of the property commenced on November 24 and continued until snow cover became too deep on November 29. Detailed geophysical surveys were then performed over most of the property, finishing on December 13. This involved a magnetic survey and a VLF-EM survey using an IGS-2 system manufactured by Scintrex of Concord, Ontario. Claims L-1015655 and L-1015656 in the northwestern corner of the property were not gridded nor surveyed. However, parts of these claims were included in a ground electromagnetic survey by the Duvan Copper Company Limited in 1964. The geophysical surveys outlined several anomalies on the property. Four of these targets were diamond drilled by N. Morissette Canada Inc. of Haileybury, Ontario. A total of 2008 feet of NQ drilling in five separate holes was done between December 19 and 31, 1988. The work discussed in this report was completed at the end of December, 1988. Maps with magnetic and electromagnetic data as well as logs and sections of diamond drill holes are included in the appendix. JAMES E. TILSLEY 8c ASSOCIATES LTD. LOCATION AND ACCESS The property consists of a group of thirty-five mining claims located in southeastern Ben Nevis Township, Larder Lake Mining Division, Ontario. The claims are situated approximately 25km north of Larder Lake Station, 34km northeast of Kirkland Lake, Ontario and 48km west of Rouyn-Noranda, Quebec. Co-ordinates for the property are: 48 0 17© 00"N; 79 0 40© 00"W The Ben Nevis property can be reached by following a gravel-surfaced forest access road for 25km north of Larder Lake Station, which is 2.8km north of Highway 66 along the Larder Lake Station Road. Station Road is 1km east of the town of Larder Lake, Ontario. The forest access road is not maintained in winter and is thus restricted to snow machines or four-wheel drive vehicles during those months. It is easily passable by two-wheel drive vehicles during dry weather. Larder Lake can be reached by taking Highway 11 north from Toronto, through North Bay to Englehart. From Englehart, Highway 624 is followed for 44km to the town. An Ontario Northland railway line passes 25km to the south of the property at Larder Lake Station. Daily air service to \ other major centers is available in both Kirkland Lake and Rouyn-Noranda. JAMES E. TILSLEY 8c ASSOCIATES LTD. CLIMATE, TOPOGRAPHY, AND LOCAL RESOURCES The area has warm summers and cold, relatively dry winters. Summer maximum temperatures in the 30 0 C range are not uncommon during July and August, as are winter minimums of -40 0 C during December, January and February. Total annual snowfall amounts to between one and two meters, usually covering the ground from mid-November to April. The Ben Nevis claim group covers moderately rolling ground, with average relief of less than 15m. Several outcroppings of bedrock rise abruptly through the glacial sands and gravels to produce relief of over 60m. The central part of the property has an elevation of 330m above sea level, while that of the northeast corner of the property exceeds 380m above sea level. Several small lakes are included, at least in part, within the property boundaries. Pushkin Lake in the northwestern cor ner and Captain Lake in the northeastern corner are each approx imately 25ha in area, while Sylvia Lake in the southwestern corner of the claim group is approximately 20ha. Drainage from Pushkin Lake is initially into the Misema River, while captain Lake and Sylvia Lake drain first into the Little Misema River before reaching the Misema. From the Misema River, drainage is to Blanche Creek, Lake Timiskaming, and the Ottawa River. While all water on the Regal Goldfields Limited property eventually drains southward, water only 1km north of the JAMES E. TILSLEY ft ASSOCIATES LTD. property is on the other side of the Arctic drainage divide and flows northward via the Magusi and Abitibi Rivers into James Bay. Mining equipment, supplies, and services are available in the nearby mining towns of Kirkland Lake, Cobalt, and Rouyn- Noranda. Skilled labour is readily available in Kirkland Lake and the surrounding area. A small medical center is located in Larder Lake, while hospital facilities are available in Kirkland Lake and Rouyn- Noranda. Industrial power and telecommunications facilities parallel the railway line 25km south of the property. A substantial part of the property has been logged and is now dominated by second growth birch, poplar, and assorted deciduous shrubs. Mature spruce and a few other conifers cover the remainder of the claim group. All accessible merchantable timber has been removed from the property. PROPERTY The property consists of thirty-five mining claims located in southeastern Ben Nevis Township. The claims were staked by Ron Crichton of Kirkland Lake for Thomas Obradovich and are under option to the company. The individual claims are on record at the Mining JAMES E. TILSLEY ft ASSOCIATES LTD. Recorder©s office in Kirkland Lake. Claim numbers are: L-1015655 to L-1015689, inclusive. SURFACE RIGHTS The claims cover Crown Land and include only mineral rights. HISTORY Larder Lake has a long history of prospecting and mine development dating back to 1906 when it was the site of the first gold rush in northeastern Ontario. The Kerr-Addison Gold Mine, still in production today, was the first of several mines in the Larder Lake area and began preliminary work in 1906. All the other workings have since ceased operation. Prospecting activity began in Ben Nevis Township soon after gold was found in Larder Lake. Gledhill©s 1928 study included several observations of mineralization. Copper, molybdenum, and gold were discovered in small amounts south and southeast of the Clifford Stock (approximately 8km west of the Regal Goldfields Limited property) by Captain Snipe and J. Bain (Jensen, 1975). Copper, lead, zinc, and gold were found west of the Clifford stock by E. O. Ehrhart and J. Martin, while copper, lead, zinc, gold, and silver were found by P.- Roche and E. O. Ehrhart approximately 2km north of the property (Jensen, 1975). JAMES E. TILSLEY ft ASSOCIATES LTD. Laying out a grid over Captain Lake - December, 1988. The Ben Nevis property looking northeastward along L1600E. Patterns in sky and snow are from frost crystals which formed on film at -29 0 C. JAMES E, TILSLEY ft ASSOCIATES LTD. ft Three exploratory shafts were sunk on this latter prospect between 1927 and 1929 by the Interprovincial Exploration Company Limited. In 1936, the property was acquired by Canagau Mines Limited, with dewatering and sampling commencing in 1937. Later years saw several attempts to outline further extensions of the mineralization.