S2B13SW0885 2.14358 MIRANDA LAKE 010

SOCIETE MINIERE MIMISKA FERN-ELIZABETH PROPERTY

- Zephyr Area -

Trenching campaign . Fall 1989

February 1990Philippe Giaro Project geologist

O *f /f ^ f""' ' ^id ̂ t J ^: t M v j *v J

SUMMARY

A trenching program was initiated during the 1989 field

season in order to uncover the surface extension of the main

economic intersection obtained in hole MZ-88-09 during the 1988

drilling campaign.

A series of folded and boudinaged quartz veins hosted in

highly schistosed and carbonatized volcanic rocks were uncovered.

Low gold assays were obtained on surface.

The auriferous quartz veins have been intensely deformed and

the economic intersection, obtained in hole MZ-88-09 appears to be

associated with a hinge zone. Careful mapping helped in gaining

a good understanding of the structural parameters affecting the

auriferous quartz veins and therefore to predict the locus of

other potentially economic zones.

Additional drilling is recommended to further test the

economic potential of the Zephyr mineralized system.

1. INTRODUCTION

Socie'te' miniere Mimiska Inc. completed a trenching program

in the Zephyr area of the Fern-Elizabeth property, located

immediately west of Atikokan, Ontario (Figure 1), The work was

prompted by the discovery of a significant gold bearing quartz

vein (hole MZ-88-09) during the 1988-89 drilling campaign.

Field work was completed from a base camp located on Right

Eye Lake, which is central to the land holding. Detailed mapping

of the trenches was executed at a scale of 1:50. The trenching

work was undertaken by Roundwood Trucking Ltd of Atikokan,

Ontario.

2. PROPERTY LOCATION AND ACCESSt

The property is owned 100% by Socie'te' miniere Mimiska Inc.

and consists of 823 contiguous claims straddling Freeborn, Baker

|h and Asmussen townships (Figure 2). A list of claims is included

in Appendix A for the Zephyr area.

The property is located immediately north of highway 11 near

the town of Atikokan, Ontario. The southern part of the property

is accessible by boat via the Seine river. The central part of

jthe property is best accessed from the town of Atikokan,

following highway 611 towards the northeast for 22 kilometers

and then proceeding on a bush road for another 12 kilometers to

jreach the northwest shore of Right Eye Lake. There is a base

FERN-ELIZABETH PROPERTY

HUNOER

P* BAY

SOCIETY MINIERE MIMtSKA INC.

FERN-ELIZABETH PROPERTY

PROPERTY LOCATION MAR

ZEPHYR -AREA/I VfAREA ' x s s s y\ A \. - ..-j

lBoundary of Fern-Ellzabttti Property

MINIERE MIMISKA INC.

FERN ELIZABETH PROPERTY

PROPERTY LIMirS\ Fig. 2

4 Km.

|P(1W^^P^^

camp located on the northeast point of Right Eye Lake (Figure

2). A 10 kilometers bush trail runs between the base camp and

the trenching site at the Zephyr area.

3. TRENCHING AND SAMPLING

In order to gain a better understanding of the structural

complexities affecting the Zephyr mineralized system, 1420 ma of

bedrock was exposed in that area. Two trenches were excavated,

washed and mapped in detail at a scale of 1:50.

3'1 "Hole 09" trench

Trenching at the discovery site (MZ-88-09; 6.14 g/t over

10.35 m), (Figure 2) was aimed at uncovering the surface

extension of the main economic intersection obtained during the

1988 drilling campaign. The trenching exposed bedrock within

three meters from the exact location of the surface extension of

the main gold bearing quartz vein. Rather than being a solid

vein with wall rock fragments, it appears that the gold bearing

quartz vein intersected in hole MZ-88-09 is a series of smaller

folded and boudinaged quartz veins. Detailed mapping of the

"Hole 09" trench also highlighted a complex, but predictable,

folding pattern (Figure 3).

A tight sampling grid was established in the north-western

part of the trench where a wide mineralized quartz vein (minimum

width of 1.5 meters) is dragged and boudinaged as a result of the

folding. The main goal of the sampling was to properly evaluate

MZ-88-09

CUTTER LIMITS OF QUARTZ ZONE

FERN-ELIZABETH PROPERTY (ZEPHYR AREA)

"HOLE 09" TRENCH

Scale l '250 f m.)FIGURE 3

the economic potential and to delineate specific patterns of

mineralization in the hinge of a fold where a quartz vein is

strongly tectonized. Forty 1-2 kg grab samples were taken along

l m centers on traverses with a 2 m spacing (Map 1). A similar

approach was used to sample the more linear quartz-bearing

horizon located in the southwestern part of the trench. Thirteen

grab and chip samples were taken (Map 1). No significant gold

values were obtained from the sampling. A value of 0.79 g Au/t

was returned from a quartz-carbonate stringer zone containing

trace pyrite and trace chalcopyrite. All the other values were

lower than 0.20 g Au/t. Nine grab samples vere taken at the

southeastern edge of the trench on the surface extension of the

gold bearing quartz vein intersected in hole MZ-88-09. The only

significant assays returned were 1.22 g Au/t and 2.15 g Au/t from

weakly mineralized quartz-carbonate veins (Map 1).

3.2 "B" trench

A second, smaller trench, was excavated approximately 80

meters to the south of "Hole 09" trench. Several quartz veins

had been uncovered during the initial mapping and prospecting of

the area. The trenching exposed a series of narrow (0.1-0.3 m)

sub-parallel veins relatively unaffected by the folding event

(Map 2). In the eastern part of the trench a north trending

fault displacing the geology is evidenced by two different vein

systems adjacent to each other.

lr

Two chip samples were taken across the area with the highest

l' density of veins towards the middle of the trench (Map 2), NoV

|| values exceeding 0.20 g Au/t were obtained. A high grade sample

l containing S-5% chalcopyrite taken from a 0.75 m section within

l one of the veins returned a value of 6.75 g Au/t.

3.3 Zephyr trench

The Zephyr vein which was previously trenched was washed and

mapped in detail (Map 3 a, b). No samples were taken during this

phase of the trenching campaign as several had been taken during

the 1988 trenching program.

3.4 Additional trenchingf

Two other trenches were excavated within the Zephyr

deformation zone, although not in the immediate vicinity of the

|v discovery zone,

A first trench was excavated on L62E, station 24+75N on the

basis of an 11 ppb Au geochemical humus anomaly. No veining or

mineralization was observed hence the trench was not washed and

no samples were taken. A second trench was excavated at L58E;

station 23+OON. During the 1988 mapping campaign, prospecting

around an I.P. anomaly located on L58E; station 23+OON resulted

in the discovery of a quartz vein which returned gold values up

to 2.74 g Au/t, This vein was found to have no significant

extensions and the trenching exposed weakly mineralized narrow

quartz pods. The trench was not washed and no samples were

taken.

iK-

8

4. STRUCTURE

The Zephyr mineralized system is located at the

intersection of two large scale structures, the Ear Lake

Deformation Zone and the Zephyr Splay (Figure 4), (ref: Summary

of geological, trenching and diamond drilling 1988-1989; Giaro 6

Yeomans). The Ear Lake Deformation Zone is responsible for the

creation of a strong S2 fabric oriented 100-120* and dipping

steeply to the north. The Zephyr Splay is characterized by a

well developped S3 schistosity oriented at 070*.

A clear relationship between these structural features can

be observed in the "Hole 09" trench. There, the early S2

schistosity is cross-cut by the latter S3 schistosity to produce

a well defined crenulation cleavage. The attitude of the axial

plane of the S3 folds measured in the trench trend from 050* to

078* and their fold axis plunge 60* to 74* towards the northeast.

In some cases the S2 fabric can no longer be seen as its been

totally overprinted by the S3 schistosity.

Most quartz veins present within the Ear Lake Deformation

Zone are sub-parallel to the S2 schistosity (100-120*). Within

the Zephyr mineralized system, these quartz veins are affected by

the S3 schistosity and become folded and boudinaged (Map 1).

Total reorientation of the S2 quartz veins according to the S3

planes is not observed. The most intense deformation occurs in

the S3 hinge areas as well evidenced in the northwestern part of

"Hole 09" trench. There, the veins are broken up and boudinaged

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FIGURE 4

Geology of the Atikokan areaFern-Elizabeth Project:

10

and loose their continuity. It is however possible to define a

quartz-bearing "zone" which hosts the majority of quartz boudins

and fragments (Figure 3). The cutter limits of this zone would

correspond to the general orientation of the veins before they

were affected by the S3 schistosity.

It appears that the quartz veins present within the S3 hinge

zones offer the best potential for economic gold mineralization

as examplified by hole MZ-88-09. However, surface sampling

demonstrated that not all hinge zones offer economic potential.

5. CONCLUSION AND RECOMMENDATIONS

The trenching highlighted the complex structure affecting

the quartz veins present in the Zephyr mineralized system. The

veins present in the "B" and Zephyr trenches have a more linear

orientation than the folded veins exposed in "Hole 09" trench.

However, the best intersections returned during the drilling

program were cut directly under and immediately east of "Hole 09"

trench. It appears that the economic intersection from hole MZ-

88-09 is associated with a hinge zone and careful analysis of

schistosity orientation in drill core suggest a similar

association for the economic intersections obtained in other

holes.

The S3 schistosity associated with the S3 deformation event

which is responsible for the creation of the hinge zones has an

orientation of 070*. Fold axis measurments of S3 folds indicate

a plunge towards the northeast, It is therefore likely that

11quartz veins present within hinge zones will also plunge towards

the northeast, In order to intersect a series of such gold

bearing quartz veins in hinge zones, diamond drill holes should

be drilled towards the southwest*

In order to fully evaluate the economic potential of the

Zephyr mineralized system at total of 740 meters (2428 feet) of

diamond drilling is recommended. The following drill holes are

proposed:

Hole Easting Northing Azimut Dip Length (meters)

12

3

4

5

64+23. 5E

64+42. 5E

64+85E

64+07. 5E

64+50E

25+81. 5N

26+21N

25+93N

26+27.5N

25+79N

230*

230*

230*

230*

230*

47*

50*

47*

50*

47*

105

155

155

200

125

Philippe Giaro Project geologist

I. Philippe Giaro________, HEREBY CERTIFY THAT:

1. I am a practicing geologist with ______N/A -.

. in Montreal Quebec and reside at 25. Place Berlioz

___Candiac____, Quebec .

2. I am a graduate of McGill University_____________,

Montreal___, Quebec 1984, with a degree of Bachelor

of Sciences. Honours Geology_______.

3. l have practiced my profession for approximately 7 years

since graduation.

4. I hereby certify that I have personal and intimate knowledge

of the facts set forth in this report, having performed the

work or witnessed same during and/or after its completion and

report it is true.

5. I have based conclusions and recommendations contained in this

report on knowledge obtained from work conducted on the

property between May . 1989 and February . 1990.

dated at Candiac Quebec

this 1st day of November. 1991

52B13SW0a05 2 .14358 M IRANDA LAKE 900Ontario

Ministry of Ministere duNorthern Development D6veloppement du Nordand Mines et des Mines

Mining Lands Branch Geoscience Approvals Section 159 Cedar Street, 4th Floor Sudbury, Ontario P3E 6A5

Toll Free: Telephone: Fax:

1-800-465-3860 (705) 670-7264 (705) 670-7262

November 18, 1991 Our File: 2. 14358Transaction ft W9140. 05051

Mining RecorderMinistry of Northern Development and Mines435 James Street, South Thunder Bay, Ontario P7C 5G6

Dear Sir/Madam:

Subject: NOTICE OF APPROVAL SUBSECTION 6 (5) MINING ACT REGULATIONS

The assessment work credits for Geological Survey, under Section 12 of the Mining Act Regulations submitted on the above report of work have been approved as of November 6, 1991.

Please indicate on your records.

Yours sincerely,

Ron C. GashinskiSenior Manager, Mining LandsMines and Minerals Division

LJ/jl Enclosures:

cc : (^Assessment Files Office Toronto, Ontario

Mr. Phillipe Giaro Atikokan, Ontario

Resident Geologist Thunder Bay, Ontario

\JoJL J 1

Ontario

Developpement du Nord l de* Mine*

Happen sur les travaux executes apres I'enreglstrement d'un claim

Lol tur let mlnet

t transaction

unito- so f fita personnel* oontenus dent la present* formul* *ont recuelllls *n vertu d* la Lol *ur to* mine* tt Mrvlront a I**or la collecte d* c** r*n**4gn*m*nu au chef provincial des terrains mlnlers, mlnlstere du Develdpjiement dubord fCdes

(Ontario) P3E 6A5; t*l*phon* : (708) 870-7M4. R FOFIVFD ' ^ * - -

i*ut*1 ttag*. Sudbury (Ontario)

rectlvee i * Dactylographler ou icrlre en lettret moulies.- Se reporter a la Lol tur let mlnet et aux reglepjftrus^u^

devaluation ou consulter le reglstrateur de claim**' ^ *- Rempllr une formule pour chaque groupe de travaux.-Jolndre a la prdsente formule deux exer

Jolndre a la prtsente formule une esqula

iQoe. Ad,r****r ir,

nattre les directives de ddpftt des travaux,

vaux exAcut^s (cocher un seul groupe de travaux)Groupe de travaux

Lev4 geotechnique

Travaux physiques, y comprls forage

Rehabilitation

Autres travaux autorisls

Essals

Valeur transferee de la reserve

Genre

^ et/iT 3^0/09/9*2 -h rtJJor*/- fZO^e- ZeJtJ*/*' )(f C S f f ^-" f fr " "

33 OV3*B9des travaux devaluation r6clam6 sur le relevd des frais ci-annexd

)ta : Le mlnlstre peut rejeter une partie ou la totality des travaux devaluation pr6sentds pour obtenir des credits d'evaluation si le titulaire enregistrd ne peut verifier les d6penses rdclamees sur le relevd des frais dans les trente jours sulvant une demande de verification.

t personnes et la compagnie d'arpentage qul ont execute" let travaux (donner le nom et I'adresse de I'auteur du rapport)Nom Adresse

olndre une annexe au besoln)

ertlflcatlon d'inttrtt bineficlalre * Volr la note n* 1 au versoJ* certlfle qu'au moment od les travaux ont ete executes, les claims doht II est 3U**tion dan* l* present rapport etaient *nr*glstres au nom de leur titulaire actuel ou d*l*nus t tltre beneflclaire par I'actuel titulaire enreglstre.

Date Titulaire enregistre ou representant (Signature)

irtlflcation du rapport sur lee travaux extcutteJe certlfle qu* j'al une eonnalssance dlrecte des (alts exposes dans le present rapport, pour avoir execute les travaux ou en avoir constate ('execution avant ou apr** leur achevement. Je certifie aussl que le rapport cl-annexe est exact.*n et adrew du certlflcateur

Ontario

Nonnem Development end Mine*

Minister* du DeVsJopperntnt du Nord

1e* mine*

for Assessment Credit

6tat des coats aux fins du credit devaluation

Mining Act/Lol sur Its mints

ranvacuon NO./N* oe transection

Personal Information collected on thl* form to obtained under the authority of the Mining Act Thl* Information wiH b* u*ed to maintain a record and ongoing etatu* of the mining olalnX*). Question* about thl* ootleotlon ahould b* directed to the Provincial Manager, Mining* Land*, Mlnlltry of Northern Development and Mine*, 4th Floor, 159 Cedar Street, Sudbury, Ontario P3E 6A5, telephone (706) 670-7264.

Let renaelgnement* personnel* oontcnul dana It presents formule sont rtouelllli en vertu tie la Lei aur ka mlnea tt ttrvlront i terir A Jour un reglatrt de* oonoeulon* mlnlere*. Adreaatr tout* queaHon aur to oolleo* de oea ren*elgnem*nt* au chef provincial de* terrain* mlnler*, minister* du Devetoppement du Nord et de* Mint*, 169, rue Cedar, 4* etage, Sudbury (Ontario) P3E 6AS, telephone (70S) 670-7264.

1. Direct Costs/CoCrts direct*)

Type

Wages Salalrea

ZlMltSfX/t*.Contrsotor't and Consultant's Net Droltade I'entrepreneur et de i'expert- oonsell

Supplies Used FoumHure* utHieee*

Equipment Rental Location de materiel

Description

Labour JL Jitt+n'.

Field Supervision Supervision sur Is terrain

Typt

Type

Typ*

Amount Montant

tf&j

Totala Total global

3^03^AjV'.it, y^ 1 ft T

HHR&

Total Direct Costs ^ f) Total des coOts directs

^il ;

*6titib'o'i^titri

: The recorded holder will be required to verify expenditures claimed In this statement of costs within 30 days of a request for verification. If verification Is not made, the Minister may reject for assessment work all or part of the assessment work submitted.

2. Indirect Costs/CoQts Indlrects' * Note: When claiming Rehabilitation work Indirect costs are not

allowable a* assessment work. Pour le rembouraement de* travaux de rehabilitation, le* coOts Indirect* ne aont pas admissible* en tant que travaux d'evaluation.

Type

Tranapottatlon Transport

Food and Lodging Nourrtture et hebergementMobilization and Demoblllxatlon Mobilisation et demobilisation

Description

Typ*

Tr^tfjt^^flUCIir'* f

^UT5;-.i

1 ,. -J

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Amount Montant

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- - . C*i• : ) r?

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Sub Total of Indirect Costs Total partltl des coOtt Indlreots

Amount AllowsbH (not greater than 20H of Direct Coats) Montant admlsslbls (n'exoidant pa* 20 H de* coOts (directs)Total Value of A*** (Tots) of Dlf*e( and 4 Indlrtct cost*)

ssmsnt Credit Vileur total* du credit iiiowcbi* d'tviluatlon

Totals Total global

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Note : Le titulaire enregistre* sera tenu de verifier tes depenses demandees dans le present etat des coOts dan* le* 30 jour* aulvant une demande ft cet effet. Si la verification n'est pa* effectuee. le mlnistre peut rejeter tout ou une partie des travaux d'evaluation presentes.

Flllno Discounts.

ii 1%/Mi l WU "ffi tnv Cvi

ned at 1000xfe of

i ^S^f/. /3 /7' *T , ^ )n is claimed at'./jo^o ^os-.at) nt Credit. See

tsment Claimed

' ind tnese C08t8iiivni nwin wu \ i\9 IftrioS SnOWR

.n the accompanying Report of Work form.

hat as l *m authorized(R*cord*d HoW*r. Agent, Petition In Company)

5 make this certification

Remises pour depot

1. Les travaux deposes dans les deux ans sulvant tour achevement sont rembourses a 100 to de la valeur totate susmentionnee du credit d'evaluation.

2. Les travaux deposes trols, quatre ou cinq ans apres tour achevement sont rembourses a 50 tto de la valeur totale du credit d'evaluation susmentionne. Volr les calculs ci-dessous.

Valeur totale du credit d'evaluation Evaluation totale demandee

Attestation de I'etat des coQts

J'atteste par la presente :que tea montants Indiques sont le plus exact possible et que ces depenses ont ete engagees poi/r effectuer les travaux d'evaluation sur les terrains Indiques dans la formule de rapport de travail ci-joint.

Et qu'a tltre H(Utulalre , reprtoontem, potta din*

suls autorisd

a falre cette attestation.

Slgnatur*

'tt (04*1)

Oat*

Note : Dan* cette formule, kxequf deslgne des personnes, le masculln e*t utIIW au *en* neutr*

Ontario

Ministry ofNorthern Developmentand Mines

MMIatere duMoppemem du Word

t .*A mines

Statement of Costs for Assessment Credit

ttat des coQts aux fins du credit d'evaluatlon

Mining Act/Lol sur les mines

Transaction NO./N* de transaction

'ereonal Information collected on this form Is obtained under the authority if the Mining Act. This Information will be used to maintain a record and ingoing status of the mining clalm(s). Questions about this collection should* tfreoted to the Provincial Manager, Minings Lands, Ministry of Northern )evetopment and Mines, 4th Floor, 169 Cedar Street, Sudbury, Ontario*36 SAB, telephone (705) 670-7264.

Les renselgnements personnels oontenus dans la presente formule sont recuelllls en vertu de la Let eur toe mines et servlront 4 tenlr a jour un regMre des concessions mlnleres. Adresser toute question sur la oolleoe de ose renselgnementt au chef provincial des terrains mlnlers, mlnlstere du D4veloppement du Nord et des Mines, 159, rue Cedar, 4* etage, Sudbury (Ontario) P3E 6A5, telephone (705) 670-7264.

l. Direct Costs/Coots directs

Type

Wages SaMree

* *

Contractor's and Coneultant'e Feee Drone de I'entrepreneur etdel'expert- ooneeii

SupptleeUeed Foumlturee utmeeee

coulpinent Rental Location de .natertel

Deeerlptlon

Labour -t-s*}***- Maln-d'oeuvreReid Supervision Supervision sur le terrain

Typa

Typa

Typa

Amount Montant

W*.*

Total Direct Coste ^P Total des coOts directs

Totals Total global

Wtott

lift-

M.-

fe- :

28*2*

lQ-t *Hrt.*Zl at lOQo/fc of

k claimed at Credit. See

tnt Claimed

these costs ands shown

2. Indirect Costs/Couts indirect** * Note: When claiming Rehabilitation work Indirect costs are not

allowable as assessment work. Pour le remboursement des travaux de rehabilitation, les coOts Indirects ne sont pas admlsslbles en (ant que travaux d'evaluatlon.

Type

Transportation Transport

Food end Lodging Nourrltura et hebergementMobilization and Demobilization Moblllaatlon et demoblllaatlon

Description

Typa

Truck f efti/fM+d'

CD f-1

r:'c~-N

m

11 !*

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Amount Montant

%060-yif

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Sub Total of Indirect Costs Total partial dee coOts Indirects

Amount Allowable (not greater than 20tt of Direct Costs) Montant admissible (n'excedant pas 20 H des coOts directs)Total Value of Assessment Credit Valeur totale du credit (Total of Olract and Allowable devaluation Indirect coiUl fTolil d*t eeOti dlmett

Totals Total global

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res claimed in Note: Le titulalre enreglstre sera tenu de verifier les depenses demandees dans verification. If le present etat des ooOts dans les 30 jours suivant une demande a cet essment work effet. Si la verification n'est pas effectuee, le minlstre peut rejeter tout

ou une partie des travaux d'evaluatlon presentes.

Remises pour d6pot

1. Les travaux deposes dans les deux ans suivant leur achevement sont rembourses a 100 4b de la valeur totale susmenttonnee du credit devaluation.

2. Les travaux deposes trols, quatre ou cinq ans apres leur achevement sont rembourses a 60 "to de la valeur totale du credit devaluation susmentionne. Volr les calculs ci-dessous.

valeur totale du credit d'evaluatlon

x 0,50

Evaluation totale demandee

Attestation de I'etat des coOts

J'atteste par la presente :que les montants Indiques sont le plus exact possible et quo ces depenses ont 6td engagees poi/r effectuer les travaux devaluation sur les terrains Indiques dans la formule de rapport de travail cl-joint.

authorized Et qu'a litre de r****.**.(tltulalra enregWre, repreaenl

. le suis autorlsdrapraaantant, poata occupa dana la oompagnle)

a faire cotte attestation.

it (Mtl) Nota : Dana catta formula, kxtqu'il dealgne das paraonnaa, le maaculin eat utllia* au sana nautra.

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