1?f 13SWe0?0 63.1&PC KtOI/ LAKE 010

TRANSWAY EXPLORATIONS INC.

Klotz Lake Area, Property I

Report on Diamond Drilling

UMMARY

Transway Explorations drilled six diamond drill holes totalling 678 m during January - February, 1984. The holes were to test an area close to the west boundary of the property. This area adjoins the Banque-Or prospect which has been known to host a gold deposit. This showing has been investigated by Banque-Or in the past and most recently by Getty Minerals. Regional geological maps indicate that the same geological conditions exist on the Transway property. The drilling which was part of general explora tion programme, indicates that though to us similarities do exist between the two properties there are also some definite differences and straight projecting of the Banque-Or geology will not suffice. The 1984 drill programme did not locate any grades of commercial interest, it did, however, show that anomalous gold values do exist on the property along with a generally favourable geological condi tions. No recommendations were given based on the results of the diamond drilling until the recommendations resulting from the later surface work is completed.

INTRODUCTION

Transway Explorations Inc. acquired the property in 1983 from Banque-Or Inc. of Montreal. Banque-Or has been active in the area for several years. It has concentrated most of its efforts to the exploration of an old gold showing which was about 2,000' west of the east boundary of the Transway prospect. Banque-Or has been drilling east of the showing between 1980 and 1983 extending the length of the auriferous horizon further east, thus being closer to the Transway property. In 1983 the management of Banque-Or in order to improve their company's finances vended a portion of their holdings. Transway has taken up the claims under the assumption of further easterly extension of the gold bearing ?one. The company has undertaken in 1983 and 1984 a detailed exploration programme to locate the gold mineralization. This report concerns the diamond drilling phase of the programme.

THE PROPERTY, ITS LOCATION AND ACCESS

The Transway property I in the Klotz Lake area consists of 25 contiguous mining claims in the District of Thunder Bay. It is near to Long Lac Ontario, which is about 53 km west of the property on Hi ghway No. 11.

The claims are numbered as follows:

T 648188 T 685612 T 685620T 648189 T 685613 T 685621T 648190 T 685614 T 685622T 648191 T 685615 T 685623T 677251 T 685616 T 685624T 677252 T 685617 T 685630T 685609 T 685618 l 685631T 685610 T 685619 T 685632T 685611

- 2 -

Access to the property can be gained by Highway 11 from which a bush road leads to the Banque-Or camp. This road, an old Kimberly- Clark bush road leaves the highway at the east end of Klot? Lake. It has been improved by Banque-Or and later by Getty Canadian Metals, the present operator of the property. It is passable by 4 X 4 vehicles at most times. An unimproved branch of this road will lead to the Transway camp and also will provide access to several points on the property. The road can be followed on snowmobiles in the winter but during the summer months only ATC-type vehicles are recommended since the several collapsed culverts may pose an obstacle to any larger vehicles.

HISTORY

No work was recorded on the Transway property, neither has the author, who has been on the property at various times, seen any evidence suggesting that such work took place. Some depressions in the ground may be very old trenches, but this cannot be taken for certain.

The majority of exploration work done in the area centers around the Banque-Or deposit. The discovery was credited to two prospectors, L. Morrow and A. H. Ward, who located gold minerali zation on surface near to a small pond in 1937. The ground was held by them at various times between 1937 and 1978. In 1951 they have shipped a small bulk sample weighing 4,041 Ibs. which has con- tai ned l.02 O? Au/tonne.

Banque-Or staked the ground in 1979. Since that time a variety of geophysical surveys was completed over the main property. Diamond drilling continued in the Vicinity of the showing by Getty into 1984. The present status of work on the Banque-Or property is not known to the author.

GEOLOGY

The Transway property lies on the eastern extension at the Geraldton greenstone belt. The rocks consist of Archean metavol- canics and metasediments intruded by felsic to mafic intrusives. The property itself shows predominantly me ta vo l ea ni cs and volcano- sediments. Outcrops are plentiful on the west side of the property where most of the high ground is located. To the east the land gra dually becomes lower and swampy as we approach Chowder Lake.

A diorite intrusive was mapped on the west end of the pro perty, but it continues only a short way eastward and is not seen on surface east of line 4-iOOE;. In the same area a gabbro dike was seen striking almost north south. It is believed that the dike follows an older fault which in turn may be responsible for the sudden disappearance of the diorite.

The gold mineralization on the neighbouring Banque-Or property was found to lie on the north side of the diorite intru sion. It also appears to be associated with a row of heavy silicification in the volcanic units. Surface exposure is restric ted to one outcrop most of the information comes from the Banque-Or' Getty drilling, which has not been available to Transway since Getty took over.

Transway has undertaken a geological survey in the fall of 1983. A report on the geology along with a map has been submitted for assessment and OMEP credits certain sections of the peoperty that were not covered by the first map because a heavy snowfall brought the programme to a halt. This has been filled in by B. Edgar when he completed the geological survey.

DESCRIPTION OF WORK PERFORMED

Diamond drilling continued on the property during January and February 1984. Canadian Longyear of North Bay was invited by the company to do approximately 3,000 feet of drilling. Longyear has already drilled in the vicinity and had a drill and a complete camp on stand-by for Getty Minerals on the Banque-Or property. Six short holes were drilled by Transway at a total of 678 m all on the west side of the property. In order to gain a larger sample we have elected to use B.Q. equipment. The core was logged and sampled by the author in a close-by tourist camp. At the present it is stored on another Transway property in the vicinity.

Table of drill information

Hole No. Location Bearing Dip Length Depth of casing

84-1 3-jOOE 0480S South 42 0 122m 1.00m

84-2 3-tOOE ^60S South 42 0 122m 5.00m

84-3 0400 5^0N South 42 0 101m 8.00m

84-4 o-fQO 4+OON South 42 0 101m 24.00m

84-5 14QOE U10N South 45 0 110m 5.8m

84-6 1+oOE U70N South 45 0 122m 6.0m

The emphasis in sampling was given to quart? carbonate veining, silicified zones and enrichment in sulphides. Approxima tely 235 split core samples were shipped to Swastika Assay Laborato ries in Swastika, Ontario., gold and silver determinations were made using the A.A. technique and the results were reported in P.P.B's for gold and P.P.M's for the silver.

- 4 -

Appended to this report are copies of drillogs with gold and silver values as reported by Swastika Assay Laboratories.

RESULTS OF DIAMOND DRILLING

The 1984 diamond drilling programme failed to locate any commercial grade gold deposits. It confirmed, however, that the geology at least on the west side of the property bears significant resemblance to the Banque-Or geology. "the intermediate volcanic pile (flows and duffs) is indeed intruded by a dioritic body. Also some highly silicified zones were found occasionally dis playing anomalous gold values, the highest being 1180 P.P.B. (0.003 07.Au/t) associated with the contract ?one between the diorite and the surrounding volcanics.

RECOMMENDATIONS

The reader is referred to the currently submitted report regarding the resultsof the geochemical survey completed during the summer of 1984. In this report we have recommended to fill in some areas in the vicinity of the geochemical and geophysical anomalies. The report further suggests testing those geochemical anomalies if the fill-in work stands up to the previous results. Three drill holes were envisaged at a cost of less than S40,000.00. We have no reason to change the recommendations we have previously gi ven .

Respectfully submitted,

l ;L.. [VPeter J. Vamos, P. Eng.

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DIAMOND DRILL RECORD NAME OF HOLE NO. SHEET NO..

.

FOOTAGE

PROM

.

43.75

45.60

59.00

TO

45.60

59.00

101. GC

DESCRIPTION

27.00-2o.00 \(tnc* qtz.AtlQ. v^ith Acme AutpliideA.39.20 Qtz. At*g. 1.5 cm.

' 40.60-41.95 l**egata* qtz. patches.

Tujja,intermediate ab befic*e, ^ineJuj banded 25 C to C. A. . Lowe* contact^auJit contact. Ccca-bi.cnatty At*cngtL( clitc*itiAed, idtk mine*Autpliideb and eccabi.cnat qtz. At*g. and na**cw veisitetA, 2-3 mm.

Intermediate VctcanicA,ab be^e*e, ^-ine and Q*anata* AecticnA, inc*eabingty cltto*itib ed ,Sctiati.cn appficx.. 45 to C. A.

53.75-55.50 fi.ne qtz. veintetb ( 1 /m ) each 2-3cm. widtli. A-t bottom boudinage AtswiC-tuSieA, wit'i mine* Autplii.de6 maintif py.

Intermediate Vcteani,eb f{vinea grained, mc*e metancc*ati.c, mc*e mabAi,ve.

63.20-63.70 l.linc* disb&er.. ^i.ne g*iained py.64.70-65.20 Simital mine*ati.zaticn70.80-71 .60 fcti.ated 'becti.cn wit.lt iASieguta* elite ~

*itic AtKu.ctuA.eb , fjtactcp bx. f,line*a-tibed vtitti 3-51 Autpkideb

74.70-75.60 Simitar., AcmvJiat teAA AutpkideA.76.20 Qtz. veintet 2 cm. 500 to C. A.

79.00-79.20 Sitici&ted Aecti.cn ivith eptdcte92.85 i'linc* qtz. veintet 5 cm. nine fi epijdcte.93.60 Mcne-t qtz. veintet 1 cm.

96.15 Qtz. ^etdApa* vein, 8 cm.98.20 Low angte qtz. veinet, 2 cm. xitk

AutpkideA, above and betcx py. verymine* pc.

SAMPLE

NO.

J/69

J/70117111721173

1174117511761177

117S117911801181

1182

1183-1184

1185118611871188118911901191

119211931194

t, SULPM

IOCS

FOOTAGE

FROM

39.00

40.5047.0041. 5042.00

44. CO44.5045.0045.50

53.5054.0054.5055.00

63.20

70.8071.30

74.7075.2075.7078.80-93.5094.0094.50

96.5097.0097.50

TO

39.50

41 .0047,5042.0042.50

44.5045.0045.5045.90

54.0054.5055.0055.50

63.70

71 .3071.80

75.2075.7076.20'79."30

94.0094.5095.00

97.0097.5098.00

TOTAL

0.50

0.500.500.500.50

0.500.500.500.40

0.50 '0.500.500.50

0.50

0.500.50

0.500.500.500.500.500.500.50

0.500.500.50

ASSAYS

t OZ/TOM

10

20/n101C

nit

10rJJL

30nit

nitH

10nit

nit

nit30/40

10nit

10nitnit

10nit

20nit

10

OZ/TOM

nit

0.30.20.20.3

nit0.20.50.5

0.20.50.20.4

0.4

0.60.7

0.81.30.40.20.20.20.2

0.40.30.2

r i:-

, ;r"*

'i

v

NAME OF PROPERTY. /untia'ow Explc-iat^cn.* Inc. Klotz Lake, 1^^•0—1

FOO-

r WVW

• MWW

r AGETO

FB^^V ^^ • mHMHHH Mm^H ^V ^V BW*V

DESCRIPTION

' 99.00 and en, chJLC'isLtiAOJtLcn -oicAe.o6.oig , Acme. rr?x,caceccc6 bcuidA.

101 End C& Hcte. S4-5

i

HOLE

NO.

IJ95 JJ96

NO.

\ SULPH

IOCS

S4-3

SAMPU

FHOM

7 o * U U Q f f fl

EPOOTAGE

TO

98.80 99.30

st

TOTAL

0.80 0.50

^EET N

a

0

n

3

ASSAY!

OX/TOM

/00/S

30

sOZ/TOW

0

— ̂

0.7

' :;-'3|" '"^•"liJc"•^

, *-

4 "'

..x

..j*: '"'""J

DIAMOND DRILL RECORD' NAME OF PROPERTY TflOH&WOtJ KgxS CU/tCei InC. C.OOTAGE: D , p

S HOI- E N0 - ———————————————————— LENGTH ———————————————————— 0 —————————————————— )rt j

i i or A T TON KLctz Lake, A,ica pncpesitu 7 — — —li —! 0*00 4*00 V M/V J7 CLATITUDE ... nc-DAD-riitur v " 1 —— ' ' "' ——— 1 —— fcj ——— 1

ELEVATION ....AZIMUTH DIP ————————— ———————^, AQ^,, 22 Jan. 1984 ^...^ 24 Jan. 19S4 ———— ,

* CO ; (O

t , 10

i S

•™

,;'-

•v, '

-'-f-'

;-K\.^f^

. rfe. D• : i,- , uvjci i^ u*jC^*.- U

PSv- I-3 "^ ' '

-^"" ' : - . -1

J"*8**"

FOOTAGE

FROM

024

57.5

65.2

TO

2457.5

65.2

68. 9

DESCR^PTI ON

Cabling .Intesunedjjato, VcLcanic,

fa-ine. to medMjjm gfuiu.ne.d, g*e.e.ruAk QK.UJ, Q'ianuJLa,t. '.\cdeAate. tcto AtsicngJLy chLQfLitize.d and ccca&^icnaLtj Atsicng Ake.asti.ng atlea angle.A. CccoA^cnal qtz. ^ctw^ie. fcltingA (2-3 M.

37.0 Sem qtz.-^pafi. veAnlet. idtk m/.ncfiAuLphide. Atfia. adjace.nttij, tnaintij pu. aL&c Acme, ep^dcte..

32.0 1'j.Kcn Sault 65 C tc C. A.33.70-35.40 CccoA-icnal qtz. veJ-rJte.tA 1cm about 2/m

39.50 lnc^eoAe.d clilC'iJjtizaticn, Acme. cliLcfvite.xl-A. 3-4mm. S6Ltceccus Ae.cti.cnA 20-25 cmpcAA^ibLy dialled {.lciv edgcA.

41 .20-43.40 Qtz. ve2nlctA 1cm. uzitk mLncfi Aulpliidu,all lew angle.

46.90 llinc-i ^fiactuJie. ^JUUUijia uxMi py.

49.50-50.00 Pine, attuned AlL4.ce.cmA Auction, v&itkIfifizguLafi qtz. patches.

Volcanics, (Intermediate, c fi Add],filne. Q'iO4ne.d da/ikex. gx.e.yf mC'ie. moAAlve., appe.aiA tc be. me fie.AJJUce-CUiA. FcliatJ.cn ptizAent but muck IZAA distinct.

Intermediate. VclcaivicA,gfuanuLofi OA above..

AZIMUTH FOOTAGE

SAM

NO.

7797

779*77997200

p

700770021 003

1004

SULPHIDES

DIP

P L E

' —————— MOI F NO, ^,; ...; *;HFFT wn j — ,,AZIMUTH " ^^

REMARKS ^f ___

LOGGED BY p I/TI-I--. ^...1,-j

FOOTAGEFROM

30. SO

33.7034.2034.70

47.2047.7042.20

49.40

TO

37.30

34.2034.7035.50

47.7042.2042. SO

50.00

TOTAL

0.50

0.500.50O.SO

0.500.500.50

0.60

ASSAYS

18 X OZ/TON

70

7070"li

Vllrt

If

-V-6C

OZ/TON

0.5

0.30.30.3

7.00.40.2

XIL

DIAMOND DRILL RECORD NAME OF PROPERTY MOLE NO. *4 "

K-Cc-tz Lafce a-tea p.icp

SHEET NO..

- ,

FOOTAGE

PROM

6S.9

70.2

81.0

TO

70.2

81.0

101.0

DESCRIPTION

V C'-CC.&KX-C-O - C1aocd variety, menu fcLLoutttd, c fi banded at 40 to C. A.

' r*gx.cuuu.tasi vasu.vty,Africngtij cA^cvuxttzed, and cheated cut SOto C. A.

70.20 VJAtemincvted AotptUdu mcUnlyP'j. cut 7-31

75.50-77.0 Increased q-tz. a* fragmented ve/tn-te&s, 4sViegu2aSL patcne^.

80.00-81.0 I'VizgutaSL Qtz. vexj^et-5 andpatc/te-6

l/c^can^cA ,Acid vasuLzty. Y

101 End c 5 nc^e.

SAMPLE

NO.

70057006

7007 700S 700970707077707270737074707570767077707S7079

7020.

% SULPK

IDES

FOOTAGEFROM

70.5077.00

77.50 72.00 72.5073.0073.5074.0074.5075.0075.5076.0076.5077.0077.50

SO. 20

TO

77.0077.50

72.00 72.50 73.0073.5074.0074.5075.0075.5076.0076.5077.0077.5078.1

80.90

TOTAL

0.500.50

0.50 0.50 0.500.500.500.500.500.500.500.500.500.500.60

0.60

ASSAYS

* * OZ/TON

7307707

660

560 370 560790200770

207040

790775

7070

60

OZ/TO*

0.40.6

0.7 0.5 0.40.77.60.40.20.20.30.47.00.70.5

0.3

r -.-i J

i

DIAMOND DRILL RECORDNAME OF PROPERTY

HOLE NO. .

LOCATION

LATITUDE .

ELEVATION

STARTED

S4-5Ktctz Lake. afie.a,

1+fJUc

77 F&b 19B4

LENGTHpx-cpesttu JDEPARTURE .

AZIMUTH , , , MI

770m

i* lv ,\, f j. —. i^j4ctu.fi 01P 45

7 Fffb. 7954 '

FOOTAGE

d On

DIP

df

AZIMUTH FOOTAGE DIP AZIMUTHHOLE NO. . SHEET NO.

REMARKS

LOGGED BY

FOOTAGE

FROM

05. S

75. Si

20.7

TO

5. B75.5

20.70

39.9

DESCRJ.PTI ON

0x6-0-10.Int&me-dJjzte. yc&Lan-ccA ,

(vc.Ecanc.6ec6u7?ew-t6 c/r mudstone.} ^-cne Q'iaine.d, dank&i Q*ie.y,maA-i-tve, atteAjati.cn veA.y mtvicfi.. Contact tAanA'Lti.cnat.

70.50 Q.^z- v&oz^ei 7 en, -tow/' ang-^e.

Intermediate. vc-Cccau.c, ci vctcanc&edimznt,5-tne -to meticum a-i^ned, LLght&i s-rzesuAh Q*izy, to&CC ^cJU&t&d at45 . Alt&icu&.cn mcd&iatu, chJic^vutic, icme bi.ctLtz, ccc.aAi.cnattceafc AuJCpivido. di&A&n'inati.cn. Occa6-ccnaZ c^z. i^ra.

. 77.70-7^.60 Q;Cz. vexMe^s, 2-3/m, 2-3 cmi^dtk at 45 C^:c C. A. Ue-r^ mine* fcpan. Azgizgattcn.

Intermediate. vcSLcayvLcA ,O& abcve., fane. gfvai.nzd, A&iglvt incSieja&e. -en aiLt&iatsicvi, ccca^-Lcnalb-uiz QtwJitvLd pa dAjk&om.viatA.cyi. SkC'it jjitzue.ctj.cnA c^ -t/ie abovedeAcsu.be.d vcZcasio&edJjneyitA. CccaA+cnat qtz. Atsig. and vzJJiietA( Ion] 7-2/m.

23.60 Q.^2 vei^Cet 4 cm.

24.30 Q.-tz- voJwJUit 4 cm.

25.20 Qrtz. vco^eX:.2 cm (nc-t Acmplnd]

30.30-3S.20 \bundayvt qtz. ueoi^et6 and patches 3-4 cmabcc^t 2 /m. ccc^/i mincfi AuutpkideA S-5% py.and pc.

-

SAMPLE

NO.

702170227023

70247025

70267027702#702970307037

bASeSH FOOTAGEFROM

77.2077.707S.20

23.5024.00

29.2029.7030.2030.7037.2037.70

TO

77. UU.2LIS. 7

24. OC24. St

29.7130.2!30.7137 .2131.71

32.21

TOTAL

0.500.50G. 50

0.500.50

0.500.500. 500.500.500.50

ASSAYS

r. K OZ/TON

70nU20/20

7020

70707070n^e

II

OZ/TON

nJUttt

It

0.20.2

rJJifi

tt

0.2rul

0.2

DIAMOND DRILL RECORD NAME OF PROPERTY.B4-5

HOLE NO. ————————,

KJtc.tz Lake

SHEET NO.

FOOTAGE

FROM

39.9

44.5

45.5

TO

44.5

45.5

65.0

DESCRIPTION

Intermediate. voCc.aiu.c4 , (pc&AJ-bty a tu.fi fi)fiisie. grained Liglit gfi&zruAk gney, w-itli distinct fictiatj-cyi on.band-ing cut 50 C tc C. A.MtttCA. A~isLiceou.A material. appe.au tc fee banded. Mtesiati.cnchLC'titsic., idtk fii.ne. diAAemsinate.d py. [teAb than. 7*). Vesirj mine fidie fustic maZ.QjiA.oJi OA fii.ne. tongue*.

Vie fuste.,medium grained gsianuZaA., pZagi-CcLaAe. x.t-A.up to 3 mm. Mcnc/t.ve Neanic moJmnJioJi ^.nc.C'ipcfiate.d.

Itit&un&LLcuta volcanic*,fijine. gfuu.ne.d dasik&i g/ieer^s/t 3'iew, cccoA-ionaty 'lejdv-ULy Akzosizdat 30-55C tc C. A. A-t .a/iea/Lou? kzavy aJutesiatJ.cn, nalrJiy Ctitcfu.-tic. Oc.ca&'LcnaZ. znsU.c[unznt -in py. aiAc m&inty aJicvig 4/teo/t p^ute6Motc/t iytcAjdnvitaJi d^Lcfbitic matz^Lat.

50.00-53.20 HeaviJiy ^/tea/red natesu.at idt'i ccda&^cnaZ.npidctJ.zatA.cn, aJL&o cuc6*em. py. xkickcculd be. 06 /ixg/t a* 5-71 cve/t 50 cm.ScLccecai tccaJULif (JLv^iodl} . ttincfi J tap.

SAMPLE

NO.

1032T 0331034103510361037103S10391040104110421043

10441045

1046.104710481049105010611062106310641Q511052105310541055

H SULPH IDES

FOOTAGEFROM

32. 2032.7033.2033.7034.2034.7035.2035.7036.2036.7037.2037.70

40.0040.50

45.5046.0046.5047.0047.504S.OO48.5049.0049.5050.0050.5051.0051.5052.00

TO

32.7033.2033.7034.2034.7035.2035.7036.2036.7037.2037.7038.20

40.5041 .00

46.0046.5047.0047.5048.0048.5049.0049.5050.0050.5051.0051.5052.0052.50

TOTAL

0.500.500.500.500.500.500.500.500.500.500.500.50

0.500.50

0.500.500.500.500.500.500.500.50 .0. 500.500.500.500.500.50

ASSAYS

X * ot/ron

1010wUi

20/2010yvUL20101010vuJt20

1010

no6050802030

1205020l-UJL

tttta

20

or /TOW

0.20.30.20.20.20.20.30.2wUi

tt

r?•r

2.2vuUL

0.2viU.YvUi

ntta

0.2nU.

111!

II

tt

l

0.2

w -iC'ak**t?'

*.,

*

\

DIAMOND DRILL RECORD NAME OF PROPERTY. HOLE NO. —————————

Ex.ptC'iati.cM l ne84-5

SHEET NO..

FOOTAGE

PROM

*

65.0

TO

110

DESCRIPTION

53.20-55.00 Me/re. masslv e, possibly none, siliceous,less shearing, py. , less alteration.

55.00-59.70 ticfie Intensive slllclfilcatlcn wltlipotash fipafi. with considerable, granularmaterial (dlcritlc] . Generaly mo fie. sili ceous tilth less py.

59.70-65.00 finer grained, darker grey with more, vol cano s e.dlmentary fieatures. Very filnely la minated (banded) with fiev: qtz. strg. andpatches and occasional dlssem py. up to5Z over 50 cm. Blends Into the. lower'Diorite

Vie rite. fmedium to coarse, grained, hclccrystallne, fiew sections c fi In vaded, volcanics, ht top occasional filne py. dissemination.Upper contact transitional.

73.10-77.00 Interfingering c fi volcanics arid diorite,possibly close to contact. Milner py. dlss.at top.

Occaslcnaly some firagments cfi volcanic criglncan be fiound. suchfiragments may range firom 0.5 m size to several meters. They mayvary In chloritization and show some remnants o fi banding andminor amounts o fi qtz.

SAMPLE

MO.

705670571058105910601065106610671068106910701071107210731074107510761077107810791080108110821 083

1084108510861087108810891090

* SULPH

toesFOOTAGE

rnoM

52.5053.0053.5054.0054.5055.0056.0056.5057.0057.5055.0058.5059.0059.5060.0060.506/.0067.5062.0062.5063.0063.5064.0064.50

65.0065.5066.0066.5067.0067.5073.70

TO

53.0053.5054.0054.5055.0056.0056.5057.0057.5058.0058.5059.0059.5060.0060.5067.0067.5062.0062.5063.0063.5064.0064.5065.00

65.5066.0066.5067.0067.5068.0073.60

TOTAL

0.500.500.500.500.501.000.500.500.500.500.500.500.500.500.500.500.500.500.500.500.500.500.500.50

0.500.500.500.500.500.500.50

ASSAYS

a x OZ/TOK

2020207020nil10

""n"rt

n

20/nnil1010nil

tt

1010

40/2Cnil

"

nilt!

II

10nil

"

nil

OZ/TOM

nil""tt

0.3nil0.3

"a"n

1.50.4

0.20.20.20.20.20.3nit0.2nH2.5

nil2.5nil0.3nil

ir

nil

lil

f

t

-r

t

DIAMOND DRILL RECORD NAME OF PROPERTY. HOLE NO. ——

Inc.S4-5

SHEET NO.

FOOTAGE

FROM TODESCRIPTION

HO End 0& katz

SAMPLE

NO.

109110921093109410951096

-

•a. SULPHIOCS

FOOTAGE

FROM

73.6074.7074.6075. 1075.6076.10

TO

74.1074.6075.1075.6076.1076.60

TOTAL

0.500.500.500.500.500.5G

'

ASSAYS

t * OZ/TOM

201010njJL

rttt

OX/TON

nJJLart

tt

ri

tt

r #; -.A

-r•y-f*

s•-^~-

,.

DIAMOND DRILL RECORDNAME OF PROPERTY

S4-6cxpf.cfiatA.cnA I .Ve. Ktctz Lake. asie.a p,icpe.'itLj l

HOLE NO.

LOCATION ~^^

LATITUDE 1 + 00

ELEVATION ^__

STARTED —

LENGTH 122 m

73 Fob 19Z4

DEPARTURE

AZIMUTH ——

FINISHED ——

7^-70 MDIP

Fob

FOOTAGE DIP AZIMUTH FOOTAGE DIP AZIMUTHHOt-E NO, S4-6 SHEET NO.

REMARKS .———-.————

LOGGED BY.r \iusnu

COStf

U

o~ uiH 1J111O0x.o<

FOOTAGE

FROM

0.0

6.0

17.9

32.00

TO

6.0

17.9

32.00

58.5

DESCR^PTI ON

CaA^Lng .

Intvune.dU.ate. VctcntcA,{jAjne. Qfvo4.ne.df dank. gne.y, moAAA.ve. and ve/iy u-nificnm nock. WeafcattestatA.cn (chicn^tLc] , no AAjgnA o fi ^o JU.ati.cn exep-t etc A e. totcaex. contact. SLice.cuA. iowan contact tnanA'UU.cnat.

14.30 Qtz vzAjitzt 3 cm. Acme, cl-itcnite., veAymjjicn eu.ke.dnat. py.

InteAme.d-iate. tu.fi fi;fijjie. tc medxxun gnaA.ne.d,L(.g'iteA. gne.ejuAh QX.UJ. FcLiaticn ge.nesiat.tpneAesit at 35 tc C. A. ktteA.ati.cn chiLcnJUUuc., AJULglitty mcne.advanced, cccaAA.nct micace.cuA patches. IncAjdentaJt d^idAem. py.OccoA^icnat qtz. veMitztA.

20.00 Qtz veM&t 3 cm. at 40 C tc C. A.20.40 Qtz. vzintzt 7 cm. at 40 to C. A.23.50-25.00 Py. (ici-sem 31, rru.ncn qtz.27.20-32.00 Patchy and di&Aem. AotpkidzA, vvith ccc.

qtz. At/la.29.65 Qtz. vzsintzt 10 cm. vbLtii AuutphijdeA

Inte/unejiiate. vctcani.c,medium gnajjie.d, gne.eJUAh gne.yf v&ny AAjtuJtan AM cornpoAAjtLon tcthe. unit above., bmt de.^AjT^teJty teAA ^cLLated, teAA aiteJied,tzAA AatpkAjde^ and ne mi.ca. OccaAi.cnat. qtz. Atng and ve^intztA.

32.50 Qtz. vzAjritzt 3 cm. (no Aample.}i*

SAMPLE

NO.

1097

109S

109911001201120212031204120512061207120B12091210

'"o

i

FOOTAGEFROM

14.00

20.00

23.5024.0024.5027.00:27.502S.OO2S.5029.0029.5030.0030.5031.00

TO

14.50

20.50

24.0024.5025.00'27.'50

2B.QC2B.5029.0029.5030.0030.5031.0031.50

TOTAL

0.50

0.50

0.500.500.500.500.500.500.500.500.500.500.500.50

ASSAYS

* X OZ/TON

HAJL

vuL

2602010203030 *

50/6020nU.103010

OZ/TON

rJUL

rJUL

1.30.3HAjt

0.20.20.3nAjt0.20.20.20.20.3

-

——— t

DIAMOND DRILL RECORD NAME OF PROPERTY-S4-6

KSf'f.t- lato l

HOLE NO. SHEET NO..

*

FOOTAGE

FROM

*

5S.50

65.50

77.00

S7.30

S9.00

TO

65.50

77.00

S7.30

59.00

707.00

DESCRIPTION

35.00 Qtz. veinlet 2 cm (no sample]39.40 Qtz. veinlet about 70 on. lew angle44.20-44.42 Qtz. vein, mine* *ulphide* ( 1* )

' 44.00 and on qtz. veinlet* 1 cm appro*. 7 fmon. the average, with minor *ulp!zide*.

56.90 Increase in di**em *ulphide* up to 31.57.50 Qtz veinlet 72 cm.57.70-5S.50 Shear zone, chlcriti*ed.

Aotd volcanic, (?)very {,ine grained, lighter gley, ma**i.ve. Qtz. veinlet* and*ulphide* ab*ent. Hard, lcwe-1 contact at *hear zone.

SheafL zone { moderate]rock similar to the above, occa*icnal ja&par *trg. *liglitly more attesiati.cn than above but *till hastd. Sulphide* a* veft.y ^ine di**em. appeal at 69.00 m. Lowest contact transitional.

Intes-jnediate volcanic*,a* before, occasional lew angle *hi*tc*ity. Fei/: diofiitic

S2.00-S3.50 Very fiine grained, dark.

Vi.crite,medium grained, cry*talline, hard.

Intermediate volcanic* and diorite, ! contact zone ) .a* above, weak foliation, about 50 to C. A. Vi.crit.e section*i-U.xi.ng c fi rccktype* 7:7 drillhole likely follow* the contact.

96. 50- 9S. 00 Finely di**eminated pulphide* givinga foliated appearance. di^*em py II.

.

SAMPLE

NO.

72777272

72737274

7275 7276 7277

727972207227

722272237224

722572267227

X SULPH

IOCS

FOOTAGEFROM

39.4044.00

56.9057.50

69.00 69.50 70.00 70.5077.0077.5072.00

S3. 60S4.10S4.60

96.5097.0097.50

TO

40. CO44.50

57.505S.OO

69.50 70.00 70.50 71 .0071 .5072.0072.50

S4.10S4.60S5.10

97.0097.509S.OO

TOTAL

0.600.50

0.600.50

0.50 0.50 0.50 0.500.500.500.50

0.500.500.50

0.400.500.50

l —————————————————— ̂ASSAYS

X * OZ/TON

nil70

20/770

nil 20 60

700207030

11 SO560760

3070

nil

OZ/TOH

0.20.2

0.30.3

nil 0.3 0.2 nil.

1 7

r:

0.2

6.33.70.4

0.3nil.nil

1*

.

DIAMOND DRILL RECORD NAME OF PROPERTY. HOUE NO.

Inc. z l.a.k.p. l

SHEET NO..

'

FOOTAGE

FROM

101

-10S. 1

TO

108.1

120.0

DESCRIPTION

97.50-9B.QO Qtz. vex.n^eX6 (xiAk minc-l buULpliidzA6 cm and 3 cm.

P-tc-'tcte,p/tecf cminantty .

104.20- Qtz. vzinltt 10 cm.Acxxf volcanic*, (on ^iJHt^i^ioji}

psiedcminantty ici&i mind AacZicnA c 6 (LLofLito.. Fisie. g/uujierfAtigktlu tcJUjCutfLd.

110.00 Mtno/L dJj,Aemincvte.d buJiphLdu mainly pu.

114.S-115.4 VicfUti.c m&tasiial uicth abcuut B-10%dc64en. py.

MD End c fi kcle.

SAMPLE

NO.

122B

122912301231123212331234123512361237123B1239

X 9ULPH IOCS

FOOTAGEFROM

104.00

110.00110.50111 .00111.50111.00112.50114.50115.00115.50116.00116.50

TO

104.50

110.50111 .OC111.50112. Ot112. Si113.0',115.00115. Si116. 0(.116. Si117. Oi

TOTAL

0.50

0.500.500.500.500.500.500.500.500.500.500.50

-•

ASSAYS

\ \ OZ/TON

nU.'

vuJLrt

tt

tj

rt

tt

60/810

\-uJLrt

so

OZ/TON

vuJt

yiittt

0.2wUi

n

tr

' 7.71.80.30.75.1

r g 3•****'i*

t?.""

*;;^

.

42F13SW8828 63.4526 KLOTZ LAKE

TRANSWAY EXPLORATIONS INC.

Klotz Lake Area, Property I

Report on Geochemical Survey

March 7, 1985 Peter J, Vamos, P. Eng, Consulting Geologist

^SUMMARY

Transway Explorations conducted a geochemical survey over this property in conjunction with geophysical work and geological mapping. The object of search was an auriferous horizon discove red on the neighbouring property on the west, 751 soil samples were taken mainly from the B horizon. While the bulk (over 50X) ran nil a few anomalous areas were found. In the locations where the auriferous horizon was expected the results were not too encouraging.

Two promising anomalous locations were found both showing geophysical correlation and require further work. Recommendations are made to fill in and sample around and within the anomalies. Diamond drilling has also been suggested. Total cost estimate for recommended work is less than S40,000.00.

INTRODUCTION

Transway Explorations Inc. acquired the property in 1983 from Banque-Or Inc. of Montreal. Banque-Or has been active in the area for several years, it has concentrated most of its efforts to the exploration of an old gold showing which lies about 2,000' west of the east boundary of the Transway prospect. Banque-Or has been drilling east of the showing between 1980 and 1983 extending the length of the auriferous horizon further east, thus being closer to the Transway property. In 1983 the management of Banque- Or, in order to improve their company's finances vended a portion of their holdings. Transway has taken up the claims under the assumption of further easterly extension of the gold bearing zone. The company has undertaken in 1983 and 1984 detailed exploration programme to locate the gold mineralization. This report concerns itself with the geochemical survey which was started in the fall of 1983 and was brought to its present form in 1984.

THE PROPERTY, ITS LOCATION AND ACCESS

The Transway property I in the Klotz Lake area consists of 25 contiguous mining claims in the District of Thunder Bay. It is near to Long Lac Ontario, which is about 53 km. west of the property on Hi ghway No. 11.

The claims are numbered as follows:

T 648188 T 685612 T 685620T 648189 T 685613 T 685621T 648190 T 685614 T 685622T 648191 T 685615 T 685623T 677251 T 685616 T 685624T 677252 T 685617 T 685630T 685609 T 685618 T 685631T 685610 T 685619 T 685632T 685611

-2-

Access to the property can be gained by Highway 11 from /hich a bush road leads to the Banque-Or camp. This road, an old Kimberly-Clark bush road, leaves the highway at the east end of Klotz Lake. It has been improved by Banque-Or and later by Getty Canadian Metals, the present operator of the property. It is passable by 4 X 4 vehicles at most times. An unimproved branch of this road will lead to the Transway camp and also will provide access to several points on the property. The road can be followed on snowmobiles in the winter but during the summer months only ATC-type vehicles are recommended since the several collapsed cul verts may pose an obstacle to any large vehicles.

HISTORY

No work was recorded on the Transway property, neither has the author, who has been on the property at various times, seen any evidence suggesting that such work took place. Some depressions in the ground may be very old trenches, but this cannot be taken for cer ta i n .

The majority of exploration work done in the area centers around the Banque-Or deposit. The discovery was credited to two prospectors L. Morrow and A. H. Ward, who located gold mineraliza tion on surface near to a small pond in 1937. The ground was held by them at various times between 1937 and 1978. In 1951, they have shipped a small bulk sample weighing 4,041 Ibs. which has contained 1.02 Oz. Au/tonne.

Banque-Or staked the ground in 1979. Since that time, a variety of geophysical surveys were completed over the main proper ty. Diamond drilling continued in the vicinity of the showing by Getty into 1984. The present status of work of the Banque-Or property is not known to the author.

GEOLOGY

The Transway property lies on the eastern extension of the Geraldton greenstone belt. The rocks consist of Archean meta- volcanics and metasediments intruded by felsic to mafic intrusives. The property itself shown predominantly metavolcanics and meta sediments. Outcrops are plentiful on the west side of the property where most of the high ground is located. To the east the land gradually becomes lower and swampy as we approach Chowder Lake.

A diorite intrusive was mapped on the west end of the pro perty, but it continues only a short way eastward and is not seen on surface east of line 4+OOE. In the same area a gabbro dike was striking almost north south. It is believed that the dike follows an older fault which in turn may be responsible for the sudden disappearance of the diorite.

-3-

The gold mineralization on the neighbouring Banque-Or property was found to lie on the north side of the diorite intru sion. It also appears to be associated with a row of heavy silici fication in the volcanic units. Surface exposure is restricted to one outcrop, most of the information comes from the Banque-Or-Getty drilling, which has not been available to Transway since Getty took over.

Transway has undertaken a geological survey in the fall of 1983. A report on the geology along with a map has been submitted for assessment and OMEP credits certain sections of the property that were not covered by the first man because a heavy snowfall brought the programme to a halt. This has been filled in by Mr. B. Edgar when he completed the geological survey.

DESCRIPTION OF THE WORK PERFORMED

Transway Explorations Inc. commenced its field programme in the fall of 1983. A baseline was started approximately 50m north of Post 4 of claim T 684190 and was cut at approximately 215 0 {south of east) to a length of 2200m. Picket lines were turned at 100m centres and were chained and picketed at 20m intervals. A tie line was cut at 1000m north while tie-ins were established along claim boundaries which were brushed out for this purpose.

The total length of the line grid is 45.9km all are cut wide using chainsaws. The line grid is expected to be visible for several years.

Since the information on the mineralization is scarce, the diorite itself rarely exposed and part of the property lacking outcrops, it was decided to try a saturation geophysical approach, helped by geological mapping. It was rapidly becoming obvious that no gold mineralization is exposed in outcroups, neither did the stripping bring results though several quartz veins, were found, Several conductive trends were located using geophysical methods, some with correlating magnetic anomalies others without. The results of these surveys are on the public files of the Ministry of Natural Resources. It was then suggested that soil sampling may improve the selection of drilling targets.

The survey began in the fall of 1983 in the vicinity of the west boundary. The B horizon of soil was sampled by having small pits dug mostly at 10m spacings. The sample material was air- dried in camp and later was shipped to Swastika Analytical Labora tories in Swastika, Ontario. The early snowfall in the area made further programme impossible and work was discontinued while the snow was on the ground. In May 1984 Mr. B. Edgar BSC continued with the geochemical sampling and filled in the voids left by the geological mapping.

- 4 -

During the 1984 programme the approach was changed to sample selected lines to gain some coverage on every claim. It was to test selected geophysical anomalies along with supplying sufficient background information. The same method of sampling was used as earlier pits were dug at 20 m centres and the B horizon of the soil was sampled wherever possible. Naturally, the numerous swamps have created frequent obstacles, where org'anic material was collected from under the green growth. Swamp locations a're indicated on the appended map.

Samples again were rough dried in camp and then shipped to Swastika, determinations were made using the A.A. technique and the results were reported to the author.

During 1983 - 223 soils were collected in addition to which 528 samples were taken in 1984, bringing the total sample population to 751 units.

Determinations were made for gold only and are plotted on the appended map which also shows the most pertinent points of topogra phy along with the rough outline of swamps and the roads and trails found on the property.

RESULTS OF SURVEY

The results of the analytical work were expressed in P.P.B.'s While most samples 444 were nils, 236 samples were in the range of 5-20 P.P.B.'s 65 samples were between 20 and 50 P.P.B.'s while 6 were over 50 P.P.B.'s, the highest sample 185 P.P.B.'s conies from a swamp on line 3+OOE, 420 m.north of the baseline.

Oddly no anomalies values were found in the west side where few dioritic outcrops have been mapped, also the sampling work of the diorite has been disappointingly low, 20 P.P.B.'s being the single high value in this area. The closest correlation with an existing geological feature is the north-south striking geochemical anomaly which accompanies the gabbro dike on its west side. Whether the reason, being anomalous gold in the gabbro itself or the contact of diorite with the gabbro, has not been resolved yet.

Interesting high gold values were seen on the north side of a swamp on line 3+OOE, a long distance away from any suspected auriferous possibility. The anomaly here is at least 80 m wide could extend 100-200 to the east. This anomaly is in conductor B.

The most interesting geochemical feature comes from the southeast side of the property. Sampling here was done on 300 m line separation and the anomalies found on lines 11+OOE and 14+OOE maybe parts of the same geochemical anomaly. This anomaly is here by the most important since it appears to have direct geophysical

- 5 -

correlation, the only such correlation found during the active programme. It is shown best on the contoured Frazer filtered VLF data, where anomalies D and E are coincident with the above described anomalies geochemical results. On our original interpretation of the VLF this could be viewed as a s ingle folded feature.

CONCLUSIONS

The geochemical survey indicated the presence of some anomalous areas. Two of these important areas are in need of further work. Both occur in locations where such enrichment of gold in soils is an unexpected event. Also where direct search such as prospective stripping etc., are unlikely to produce result. One of the anomalies lies on the north edge of a swamp, the second is also in a low lying area. The first anomaly is significant because the values are the highest found on the property the second is impor tant due to its relationship to geophysically anomalous features.

RECOMMENDATIONS

It is suggested that both locations be followed up by further geochemical sampling, limited to the open sides and unsur- veyed areas and may define the anomalies better.

1} Sample line 4+OOE from 2-t-OON to 6+OON.

2) Prospect between 2+OOE and 4+OOE from 2+OON to 6+OON.

3) Sample 9+OOE, 10+OOE, 12+OOE, 13+OOE, 15+OOE from the baseline south to the boundary.

4) Prospect same area.

5) If the results are satisfactory drill both locations. Since the limited size of the first anomaly only one hole will be required, the second may require two hoies.

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COST ESTIMATE

(1) Geochemical sampling

3 days, 2 man crew 5325.00 per day S 975.00

Assays - 250 samples SlO.OO/unit S 2,500.00

(2) Prospecting

2 days, 2 man crew S325.00 per day S 975.00

Travel time 3 days S325.00 per day S 975.00

(3) Supervision - reports 10^ S 540.00

(4) Diamond drilling

Mobilization S 3,000.00

1,000 feet drilling at S20.0Q7ft. S20,000.00

Assays S l,500.00

Supervision on technical work 157. S 3,675.00

TOTAL FOR PROGRAMME S34,140.00

Respectfully submitted,

\ Peter J. Vamos, P. Eng.

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