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001L/14/0252

First Year Assessment Report of Prospecting, Stream Sampling, VLF EM-16 Surveying,

and Biogeochemical Surveying on

Licence 20882M, NTS 1L14

Burin Peninsula, Newfoundland

Submitted by:

Keith Kelloway (Licence Holder)

Work year: 2011.03.30 to 2012.03.30

Total claims: 5

Total Expenditures: $3250.71

Table of Contents Introduction 01 Location, Access and Physiographic Setting 01 Geology 05 Previous Work 05 Current Exploration 06 Recommendations 17 References 17

Figures and Tables

Figure 1. Property Location Newfoundland 02 Figure 2. Claims Location Map Licence 20882M 03 Figure 3. Partial Surrender 10689M 04 Figure 4. Biogeochemical Sample Location Map 08 Figure 5. EM-16 Survey Lines 11 Figure 6. VLF Conductor Map 1 12 Figure 7. VLF Conductor Map 2 13 Figure 8. Quarry Rock Samples 15 Figure 9. Traverses 16 Table 1. Biogeochemical Sample Data Licence 10689M 07 Table 2. Stream Sediment Data 09 Table 3. EM-16 Survey Line Data 10 Table 4. Rock Sample Data 14

Appendices Appendix A VLF Field Data 3 pages Appendix B VLF Survey Line Charts 6 pages Appendix C Geochemical Reports 5 pages Appendix D Statement of Expenditures 1 page

01

Introduction This property is the residue of a partial surrender performed on mineral licence 10689M, the Hjelm Ridge property, which was staked for its REE potential. Although the area has been extensively explored, especially for fluorspar and uranium, none has focused on REE. The original eight claims have been reduced to five (Figure 3). Exploration results on the original property were disappointing, the only anomalous REE concentrations being in a stream sediment sample. These results are: 972 ppm Y, 252 ppm La, 1880 ppm Ce, 121 ppm Pr, 540 ppm Nd, >100 ppm Sm, 199 ppm Gd, and 192 ppm Dy. Anomalous thorium (454, 540, 1060 ppm Th) was found in a rock quarry on the property. There have been several anomalous gold results. A stream sediment sample returned 396 ppb Au but the result was not repeated on a second sample. A till sample from a trench dug in the 1970’s gave 158 ppm Au. This report presents the exploration activities conducted to seek out the sources of the rare earths returned in the stream sediment and the gold.

Location, Access and Physiographic Setting The Hjelm Ridge property is located within NTS area 1L/14 (Figure 1.). It lies on Route 220 on the Burin Peninsula of southern Newfoundland about 8 km west of the town of St. Lawrence (Figure 2.). There is a gravel pit at the southern end of the property just off the highway. One can park in the pit or anywhere along the highway and access the property. Maps show a dozer trail crossing the property but it is overgrown with alders. The terrain is relatively flat lying, grading gently to a hummocky moss covered north-south running ridge. The local name for the ridge is the Fox Hummocks but geologists working here in the 1970’s named it Hjelm Ridge. There are close-growing conifers on the west side of the ridge which make for difficult walking. The top of the Ridge is treeless. The entire area is covered with a varying amount of glacial till, and numerous glacially derived boulders. There is little bedrock exposure.

02

Figure 1. Property Location Newfoundland

03

Figure 2. Claims Location Map Licence 20882M

04

Figure 3. Partial Surrender 10689M The crosshatched portion was dropped from the original Licence 10689M

05 Geology

Regional Three groups of rocks underlie the “boot” of the Burin Peninsula. A thick succession of sedimentary rocks that includes conglomerate, sandstone and siltstone comprise the Precambrian Musgravetown Group. These sediments are conformably overlain by Precambrian volcanics, primarily pillow lavas, waterlain pyroclastics and ocean tholeiites of the Burin Group. The Precambrian basalts and rhyolites of the Marystown Group lie unconformably over the rocks of the Burin Group, and were extruded primarily in a subaerial environment. The Cambrian fine-grained clastic sediments of the Inlet Group are conformable over the volcanics, and are believed to have been deposited mainly in a shallow water environment. (Strong, et al., 1978) Intrusives in the area include Precambrian plutons, which are predominantly gabbroic in composition. Carboniferous magmatism resulted in the intrusion of an alkali to peralkaline alaskite St. Lawrence Granite, which exhibits sharp contacts with the pre-existing units as well as extensive hornfelsing of the surrounding country rocks. (Holmgren and Kowalchuk 1983) Local A lobe of the St. Lawrence granite underlies the property. This lobe is also referred to as the Lawn Granite.

Previous Work By Others

Extensive exploration has been carried out on the St. Lawrence granite. During the period of 1969-1971, Radex Minerals Ltd. carried out geological mapping, geophysical and geochemical surveying, and diamond drilling in this area. Golden Dory Resources staked the whole of the granite in 2007 and conducted an airborne radiometric and magnetic survey. Licence 10689M was included in this survey. By the Author A. Radiometric Field Survey: a radiometric field survey using a hand-held scintillometer was conducted on the property. Readings were recorded at 100 m intervals along the UTM topographic grid. One hundred eighteen readings were taken. B. Pond and Stream Sediments: four lake sediments and three stream sediments were collected on the property. The most notable result was 396 ppm U from a lake sediment.

06 C. Till Sampling: numerous till samples have been collected on this property. Twenty-seven were collected on the Lane’s Pond Copse as this area was identified as a tin anomaly in the 1970’s. No anomalous metals were uncovered. Thirty-two till samples were collected on the hill to the east of the pond (Fox Hummock Pond) that gave the 396 ppm U. Again, there were no anomalous results. D. Rock Sampling: forty grab samples, mainly from the quarry, were collected. “Hot spots”, as discovered by a scintillometer in the quarry, gave elevated thorium. The most interesting result from one such spot was: 920 ppm Li, 28.4 Ga, >500 ppm Rb, 258 ppm Zr, 87.9 Nb, 28.8 ppm Sn, 20.7 Hf, >200 ppm Th and 66.4 ppm U.

Current Exploration

Current exploration will be presented under the following four headings. Figure 9 is a map showing the various traverses. A. REE This property was staked for its REE potential. The incompatible elements Sn, Th and F, indicators of REE, occur here. Up to last year no anomalous REE values were obtained. Then a stream sediment sample collected from a brook draining a marsh gave the following anomalous REE concentrations: 972 ppm Y 252 ppm La 1880 ppm Ce 121 ppm Pr 540 ppm Nd >100 ppm Sm 199 ppm Gd 192 ppm Dy The Fox Hummocks (aka Hjelm Ridge) is a north/south running ridge of granite. About the only exposed rock occurs in a quarry at the southern end of the ridge just off the highway. Lanes Pond lies to the west of the ridge and between the two is a marsh. Till sampling in the area gave no anomalous REE’s so a small biogeochemical survey was conducted to try to locate the source. The fact that the anomalous stream sediment results are present in near-surface flowing water suggests that tree roots should be able to access them. Twigs from ten spruce trees growing along the base of the ridge were collected and sent to Activation Laboratories for Code 2B INAA analysis. Table 1 gives the location coordinates and Figure 4 shows the sample locations. The analysis report is A12-08769. No anomalous REE concentrations were present. I conclude that the source of the REE is not Hjelm Ridge, at least not the part surveyed. Perhaps the source is further north either on the ridge or under the bog.

07

ID Easting Northing HJBIO1 614903 5203103 HJBIO2 614933 5203020 HJBIO3 614950 5202980 HJBIO4 614965 5202892 HJBIO5 614943 5202821 HJBIO6 614951 5202797 HJBIO7 614997 5202757 HJBIO8 614962 5202713 HJBIO9 615008 5202674

HJBIO10 615007 5202629

Table 1. Biogeochemical Sample Data Licence 10689M Note: Dunn writes on page 261 that “a correlation matrix or factor analysis of a multi-element dataset frequently shows a strong relationship of REE with Fe”. Indeed this is the case with the sampling I performed. Both La and Sm each gave a correlation of 0.9 with Fe. No other REE’s were checked as they had some concentrations below the detection limit.

Biogeochemical Sample Collection Procedure

Ten small branches from stunted spruce were collected at the base of Hjelm Ridge running north/south. Samples were clipped from trees at chest height using a small pair of garden clippers and placed in plastic bags. Samples were not washed. It had rained the night before. At home, the branches were laid out on a table to dry in the sun for a couple of hours. They were trimmed to fit into brown kraft bags and sent to ActLabs for Code 2B neutron activation analysis. Leather gloves were worn during all stages of handling. No jewelry or watches were worn. Diameters of the branches at the point of severance varied from 3 to 4 mm.

08

Figure 4. Biogeochemical Sample Location Map

09

B. Gold Also last year, a second stream sediment gave 396 ppb Au. This stream comes from a small pond on Hjelm Ridge and flows from east to west, perpendicular to the stream that gave the anomalous REE values. The site was revisited and sampled again. Two other stream samples were collected upstream. The three samples were sent to Eastern Analytical Ltd. for Au fire assay. The report number is 4637. The sample data is given in Table 2. The sample locations are shown on Figure 9. The original strongly anomalous Au concentration was not repeated (HJSS5). It returned only 20 ppb Au. Sample ID Easting (mE) Northing

(mN) ppb Au Misc

HJSS5 614 993 5 202 712 20 396 ppb Au site HJSS6 615 093 5 202 757 5 100 m upstream of site HJSS7 615 241 5 202 898 6 200m upstream of site

Table 2. Stream Sediment Data

A lake sediment sample (HJLS1) was collected from the pond from which this brook flows. From the quarry, the sampler and ice auger were pulled on a toboggan to the pond during the winter. A second pond was visited but after several holes were bored no sediment was present. The traverse is labeled B on the traverse map, Figure 9. At the time of writing this sample had not been sent for analysis. The coordinates of this sample are: 615 507 mE, 5 202 941 mN. Two trenches (Figure 3) were dug on the property in the 1970’s by BP Minerals. Last year a soil sample collected there returned 158 ppb Au. The trenches were dug here because of the presence of a VLF conductor. The rationale for my sampling was the hope that REE-containing material from depth was brought to the surface by the trenching. This year a day was spent, with help, clearing out the alders that had grown over one of the trenches so that any rocks brought to the surface can be studied.

10 C. VLF Survey The Meadow Wood fluorite vein (MODS 1L/13/Fl001) is located about two and a half km from this property. The vein occurs in a fault that crosses this property. Two maps follow (Figures 6 & 7) that show the location of this and other VLF conductors near the property as determined by airborne surveying in the 1970’s. An EM-16 was borrowed from the Department of Natural Resources and several crossovers were detected. Favorable orientation with the transmitter in Cutler meant that the survey lines could be walked along topographic grid lines in a north/south direction, all readings being taken facing north. In Table 3 the survey lines are identified by their topographic eastings. The UTM’s of the start and finish points are given. The coordinates of any crossovers are given. Three of the survey lines each gave three crossovers. The survey lines are shown in Figure 5. The VLF field data is contained in Appendix A. The results are presented as a series of Excel charts in Appendix B where each line is represented by its own chart. No attempt was made to construct a composite chart; instead Figure 5 has each crossover indicated. Survey Line

(mE) Starting

Point (mN) Endpoint

(mN) Crossover

(mN)

Crossover (mN)

Crossover (mN)

614 500 5 202 500 5 203 500 5 202 625 5 202 800 5 2 0 3 300 614 700 5 203 050 5 203 325 5 203 200 614 800 5 203 100 5 203 500 5 203 200 615 500 5 202 000 5 202 450 5 202 175 615 600 5 202 000 5 202 450 5 202 025 5 202 150 5 202 400 615 750 5 202 125 5 203 000 5 202 300 5 202 625 5 202 700 615 825 5 202 275 5 203 000 5 202 350 615 900 5 202 000 5 203 000 5 202 450

Table 3. EM-16 Survey Line Data

11

Figure 5. EM-16 Survey Lines

12

Figure 6. VLF Conductor Map 1

Adapted From Geofile No: NFLD/1321 (Holmgren, L D and Kowalchuk, J M)

13

Figure 7. VLF Conductor Map 2 Adapted From Wilson

14 D. Quarry The quarry located at the southern end of the property was scanned with a scintillometer. Not every rock surface can be scanned as the walls are 25m high in places. During the winter months a little more can be accessed where snow drifts act as ramps. Two previously unknown “hot spots” were discovered. The first, of 1000 cps is located on the east side where a trail exits the quarry. Granitic rock sample HJ56 and HJ60 were collected here. The second, also of 1000 cps is located on the west side. Granitic rock sample HJ59 was collected there. The most interesting find occurred when a previously known site of 15000 cps was revisited. In 1207 a sample from that spot returned 100 ppm U and > 200 ppm Th. Further chiseling exposed a vertical layer of a copper-colored mineral. Unfortunately it was identified as being merely hematite. It is labeled HJ57. Finally, a gas powered cut off saw was used to collect a sample, HJ58, from a quartz vein that runs through a horizontal ledge. The sample locations are shown in Figure 8 and the location coordinates are given in Table 4. They have not been sent for analysis yet.

ID Easting Northing Description

HJ56 615 952 5 202 220 5 mm grey quartz veinlet; 1000 cps HJ57 615 875 5 202 216 Lustrous copper-colored face on granite;

1500 cps HJ58 615 868 5 202 201 Quartz vein material HJ59 615 873 5 202 247 Granite; 1000 cps HJ60 615 952 5 202 220 Granite; 1000 cps

Table 4. Rock Sample Data

15

16

Figure 9. Traverses

17

Recommendations Discussions with geologists have resulted in the following decisions. First, the anomalous gold found in the various samples is probably derived from the nearby volcanic rocks of the Marystown Group. Second, the demand for REE properties has disappeared. Therefore, this property will be dropped.

References Dunn, Colin E.

2007: Biogeochemistry in Mineral Exploration, Volume 9 (Handbook of Exploration and Environmental Geochemistry)

Hamann, U.M. and Hoffman, S.

1981: Geological and geochemical report on Nalco lot 4 on the Burin Peninsula, Newfoundland; Newfoundland and Labrador Geological Survey, Assessment File NFLD/1292, 1981, 99 pages.

Holmgren, L.D. and Kowalchuk, J.M.

1983: Assessment report on geological, geochemical and overburden drilling exploration for the Burin project for 1982 submission on Newfoundland and Labrador Corporation Limited lot 4 in the St Lawrence and Winterland areas on the Burin Peninsula, southeastern Newfoundland; Newfoundland and Labrador Geological Survey, Assessment File NFLD/1321, 1983, 31 pages

Kelloway, Keith

2006: First Year Assessment Report on Prospecting, Rock and Soil Sampling, Licence 10689M, NTS 1L14 Newfoundland and Labrador Geofile Number; 001L/14/0203

Kelloway, Keith 2007: Second Year Assessment Report on Prospecting, Rock and Soil Sampling, Licence 10689M, NTS 1L14 Newfoundland and Labrador Geofile Number: 001L/14/0197

Kelloway, Keith 2008:Third year assessment report on prospecting and geochemical exploration for licence 10689M on claims in the Hjelm Ridge area, on the Burin Peninsula, Newfoundland and Labrador Geofile Number: 001L/14/0188

18 Strong, D.F., O’Brien S.J., Strong P.G., Taylor, S.W. and Wilton, D.H.

1978: Geology of the Marystown (1M/3) and St. Lawrence (1L/14) map areas. Newfoundland and Labrador Department of Natural Resources, Mineral Development Division, Report 77-8, 81 pages.

Wilson, Norman

2000: Fluorspar: a guide to the mineral, veins and occurrences in the Southern Burin Peninsula, Newfoundland. The Centre for Newfoundland Studies, QEII Library, Memorial University of Newfoundland TN 948 F6 W55 2000

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Appendix C

Appendix D

Statement of Expenditures

Days worked: Keith Kelloway 12 days @ $100 = $1200.00 Andrew Kelloway 1 day @ $50 = $50.00 Vehicle: 12 trips @ $60 = $720.00 Meals: 12 meals @ $20 = $240.00 Report Writing: 2 days @ $100 = $200.00 Analysis: Actlab Report A12-08769 = $310.19 Eastern Analytical Ltd Report 4637 = $60.17 Sample Shipment: $35.80 + $10.54 = $46.34 Subtotal = $2826.70 Admin (15%) = $424.01 Total = $3250.71