31M04SW2026 2.18913 STRATHCONA 010 Geo-Technical Report On The Jessie Lake Property Strathcona Township Temagami, Ontario For Redstar Resources Corporation #611-675 West Hastings Street Vancouver, British Columbia, Canada V6B 1N2 By Gino Chitaroni, B.Se. Geology Blackstone Development Inc. Blackstone Development Inc. October 5,1998 50 Silver Street, P.O. Box 699 Cobalt, Ontario Cobalt, Ontario POJ ICO 31M04SW2026 2.18913 STRATHCONA 010C Table of Contents Report Introduction l Location l Access/Infrastructure l Property l Geology 2 Field Exploration September 1998 Program (part 2) 2,3 Observations 3,4 Recommendations 4 References Statement of Qualifications Expenditures Figures Figure l Key Map Figure 2 Major Mining Camps of Northeastern Ontario Figure 3 Property Location Map " Temagami Mining Camp" Figure 4 Regional Geology Figure 5 Claim Map (Back Pocket) Figure 6 Claim Map/Geology Map (Back Pocket) Figure 6a Legend (Back Pocket) Appendices Appendix A List of Claims Appendix B Cu-Ni-PGE Mineralization and Alteration Discussion Appendix C Sample Descriptions/Assays Prospecting Maps (Back Pocket) Introduction: A field, prospecting exploration program was carried out on the Jessie Lake Property from September 18th to October 5th 1998 by Blackstone Development Inc. of Cobalt, Ontario for Redstar Resources Corporation. The results of this program are summarized in this report. Location: The Jessie Lake Property is located in Strathcona Township immediately south of the village of Temagami; and approximately 100 kilometers north of the city of North Bay in northeastern, Ontario. (See "Key Map", figure 1; "Major Mining Camps of Northeastern Ontario", figure 2; and the "Property Location Map ~ Temagami Mining Camp", figure 3) Access/Infrastructure: The Jessie Lake Property straddles Highway 11, Trans-Canada Pipeline and the Ontario Northland Railway. The property contains several powerlines, a telephone line, several secondary gravel roads, numerous trails and a marina. Water supply and access is plentiful and abundant. The availability of a nearby service sector, municipal services, housing and a skilled labour force make©s this area very attractive for exploration and mine development. Property: The Jessie Lake Property contains 36 unpatented claims, for the most part, or approximately 97 units; totaling about 3,880 acres or 1552 hectares in physical size. (See Appendix A and "Claim Map" figure 5 in back pocket of the Report) X Ontario Quebec Larder Lake-Kirkland Lake Cochrane j Kidd Creek Deposit CuZnAg ^loranda Mining Camp . ,,.Orkland Porcupine Mining ITlmins Lake Rouyn- Norand Cobalt Mining Camp AgCoKfi Jessie Lake Temagami Mining Camp CuNi Fe Au PGE Sudbury Minin CuNi PG Au Ag Co RedstarResources Corp. Jessie Lake Property *611 - 675 West Hastings Street Vancouver, BC. V6B1N2 Major Mining Camps of L EG EN D 0 Town/City Telephone: (604) 488-0051 Fax: (604) 488-0053 Northeastern Ontario A Deposit Figure: 2 Contractor: Blackstone Development Inc., Cobalt, Ontario l l Mining Camp Drawn by: P.J. MacArthur [ Checked by: G. Chilaroni | Date: October 1998 20 Miles 1. Copperfields Mining Corp. Ltd. (TeckCorp.) Jessie Lake Property Temagami mine - Cu, Ni, Co, Ag, Au, Pt RedstarResources Corp. 2. Cliffs of Canada Ltd. - Sherman mine (2 locations) - Fe #611 - 675 West Hastings Street Vancouver, B.C. VBB 1 N2 Property Location Map 3. Little Dan mine - As, Au, Ag, Cu Telephone: (604) 488-0061 Temagami Mining Camp 4. Big Dan mine-As, Au, Ag, Cu Fax: (604) 488-0053 (Cu, Ni, Au, PGE, Au, Fe) 5. Kanichee Mine - Cu, Ni, R, Au Figure: 3 6. Diadem Deposit (TeckCorp.) Cu, Ni Contractor: Blackstone Development Inc., Cobalt, Ontario Drawn by: RJ MacArthur ChecKed by: Q. Chltaroni Date: October 1998 Geology: Briefly, the Jessie Lake Property is covered by archean-aged granitic rocks of the Iceland Lake Pluton, felsic to intermediate metavolcanic flow rocks, and mafic to intermediate metavolcanic flow rocks. Both metavolcanic suites of flow rocks are intruded by some felsic quartz porhyry and mafic to ultramafic diorite-gabbro rocks. (See "Regional Geology" figure 4; and "Claim/Geology Map" - Figure 6 and its accompanying "Legend" Figure 6a in Back Pocket of the Report) An excerpt from an academic discussion on copper-nickel-platinum group elements potential and alteration is provided by Jason King Dunning, geologist, for a better understanding on the styles of mineralization associated to the Northeast Arm of Temagami area near the Jessie Lake Property in Strathcona Township. (See Appendix B: Cu-Ni-PGE Mineralization and Alteration Discussion) Field Exploration September 1998 Program (part 2): Blackstone Development Inc., under the guidance of Geologist, Gino Chitaroni the report©s author, and Jason King Dunning, Redstar Resources Corp., reconnaisance prospected the following areas on the Jessie Lake Property: (a) Highway 11 corridor from Karol Lake to Strathcona Road entrance (Temagami Marine Road), (b) Ontario Northland Railway corridor from Pingue Lake north up to the Temagami Skyline Reserve, (c) Diadem Copper-Nickel Deposit area and north up to the Strathcona Road; and finally, (d) the TransCanada Pipeline right-of-Way east of the Wabana Exploration Office. (See "Prospecting Maps" in Back Pocket of the Report) Nine samples were collected for assay during the Jason King Dunning visit to the Jessie Lake Property. All of the assay results from this sampling, except for the samples collected at the Diadem Deposit, returned disappointing precious and base metal values. GEOLOGY AND PRINCIPAL MINERALS OF ONTARIO M^or Minor* Deposit! Paul and Pt B wot B Zinc Coppnf O Palirtum f Uranium * In Jessie Lake Property l.SHE©S D- PHANEROZOIC CMJBRIAM f.Jtfj©S Snomtnuiy ^^M roew PRECAMBRIAN ant * sufffrcm PROVINCE PHCTEROZOiC ARCHEAN NCO- TO MESOAFWr©EAN 1EO TO MESOPRO1EBOKUC Uwxv* n foft*ms ar*np*orm m RedstarResources Corp. Jessie Lake Property *611 - 675 Wast HaBIirwa Street \*ncouvef, BC V6B 1PJ2 Regional Geology Telephone (604) *8fl-OQ5t Fax (604)48fr0053 Figure 4 Contractor Blackslone Devaiopmen! Inc Cobalt. Ontario Drawn bv P J MacArthur Checked by G Ctiitaroni Dale October 196B (See Appendix C for Sample Descriptions/Assays) Moreover, at the time of the writing and compilation of this report, maps and assays from a portion of this program were not available. This work was conducted by prospector©s George Pollock and Doug Pringle from the Haileybury School of Mines, Haileybury, Ontario for Blackstone Development Inc.. This exploration work concentrated on the Highway 11 corridor and TransCanada Pipeline near the Wabana Exploration Office, and the west end of the Strathcona Road. The purpose of this prospecting exercise was directed as a follow-up to the Jason King Dunning visit and recommendations. Observations: At the Wabana Office location on the east side rock-cut of the TransCanada Pipeline right-of-way, the rocks exhibited, over a wide area, strong ankerite/carbonate alteration and iron-staining gossan with sections of disseminated pyrite mineralization hosted in Rhyolite and rhyolite porphyry rocks. Sulphide content typically ranges from l -50A pyrite +S- minor chalcopyrite throughout the entire suite of rocks. Two intensely sheared pyritized, iron-stained zones were observed and sampled. In both sampling areas minor green fuschite was observed less than 0. Wo. In 1992, the author collected a sample of drill cuttings from this approximate location during the pipeline construction of that particular summer; the sample returned an assay of 0.023 oz/ton Gold. (Sample No. 8150) The Diadem Deposit is highlited by copper and nickel bearing pyritized sulphides. Chalcopyrite was also evident but clearly subordinate to the prevailing pyrite content. Assay results show that significant values of gold, silver, palladium and cobalt can be obtained from the Diadem Deposit; while lead values were virtually non-existent and zinc returned values near negligible results. 4 Also from the reconnaisance work, a fairly long, moderately wide zone of disseminated pyrite mineralization hosted in sheared rhyolite rocks was observed on the south side and parallel to the Strathcona Road on Claim #81212357. The disseminated pyrite content ranged from 4-1007o +I- minor chalcopyrite (copper). The author collected a sample from this same location in 1992 which returned an assay ofQ.117% copper (Sample No. 8151). No economic values of precious or base metals were returned during this phase of the exploration program; except for the highly significant values recovered at the Diadem Deposit. Recommendations: Further prospecting is warranted in all locations exhibiting significant "pyrite" sulphide mineralization. The Diadem Copper-Nickel Deposit and its possible extension, east, should be examined. Respectfully submitted, Gino Chitaroni, B.Se. Geology Blackstone Development Inc. References Bennett, G. 1978: Geology of the Northeast Temagami Area, District of Nipissing; Ontario Geological Survey Report 163, 128p. Accompanied by Maps 2323 and 2324, Scale l inch to Vi mile (1:31,680), and l chart. Personal Communication with Redstar Resources Corporation, Geologist, Mr. Jason King Dunning of Vancouver, British Columbia, Canada; with regard to Temagami area geology; 1998. Map 2324 Briggs and Strathcona Townships, December 31 st 1970. (Geology Map). Statement of Qualifications I, Gino Chitaroni, reside and live in Coleman Township near the Town of Cobalt Ontario; and do hereby declare the following statements as factual and true. 1) Gino Chitaroni is a qualified Geologist, B.Se.