geol & ddh rpt on gamitagama l area · asselikmb asselin 010 report om coutu gold mine8 umited...

37
ASSELIKMB ASSELIN 010 REPORT OM COUTU GOLD MINE8 UMiTED GAMITAOAMA LAKC D itimoT or A LGOMA PROVINCE or OUT AH i o LOCATION o THE PROPERTY IS LOCATED JUST SOUTH or GAMITAQAMA LAKE IN THE SAULT STE. MARIE MINING DIVISION or THE PROVINCE or ONTARIO. IT LIES 80 MILES NNW or THE CITY or SAULT STE. MARIE, AND 23 MILES SS.E or MICHIPICOTEN HARBOR ON LAKE SUPERIOR. MAP No. 1 ACCOMPANYING THIS REPORT SHOWS THE LOCATION Of THE PROPERTY. THE PROPERTY IS LOCATED WHOLLY WITHIN LAKE SUPERIOR PROVINCIAL PARK. PRESENT M EANS o r A CCESS GAMITAQAMA LAKE is READILY REACHED BY AIR FROM BABES AT SAULT STE. MARIE OR WAWA. A SHORT CANOE TRIP IN SUMMER, OR A SHORT WALK IN WINTER, PROVIDES ACCESS rROM GAMITAQAMA LAKE TO THE CENTER or THE PROPERTY. FUTURE MEANS o r A CCESS THE ROUTE or THE NEW TRANS-CANADA HIGHWAY LIES SOME MILES WEST or THE PROPERTY. THE RiQHT-or-wAY HAS BEEN CLEARED AND ROAD CONSTRUCTION IS UNDERWAY. THE COMPLETION DATE rOR THIS SECTION Or THE HIGHWAY IS MID-1959. THE PROPERTY WILL THEN BE WITHIN EASY REACH Or A riRST-CLASB HIGHWAY TO SAULT STE. MARIE. RC&iOtMT GtUi.0315*

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Page 1: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

ASSELIKMB ASSELIN 010

REPORT OM COUTU GOLD MINE8 UMiTED

GAMITAOAMA LAKC D itimoT or ALGOMA

PROVINCE or OUT AH i o

LOCATION o

THE PROPERTY IS LOCATED JUST SOUTH or GAMITAQAMA

LAKE IN THE SAULT STE. MARIE MINING DIVISION or THE PROVINCE

or ONTARIO. IT LIES 80 MILES NNW or THE CITY or SAULT STE.

MARIE, AND 23 MILES SS.E or MICHIPICOTEN HARBOR ON LAKE

SUPERIOR. MAP No. 1 ACCOMPANYING THIS REPORT SHOWS THE

LOCATION Of THE PROPERTY. THE PROPERTY IS LOCATED WHOLLY

WITHIN LAKE SUPERIOR PROVINCIAL PARK.

PRESENT MEANS o r ACCESS

GAMITAQAMA LAKE is READILY REACHED BY AIR FROM

BABES AT SAULT STE. MARIE OR WAWA. A SHORT CANOE TRIP IN

SUMMER, OR A SHORT WALK IN WINTER, PROVIDES ACCESS rROM

GAMITAQAMA LAKE TO THE CENTER or THE PROPERTY.

FUTURE MEANS o r ACCESS

THE ROUTE or THE NEW TRANS-CANADA HIGHWAY LIES SOME

MILES WEST or THE PROPERTY. THE RiQHT-or-wAY HAS BEEN

CLEARED AND ROAD CONSTRUCTION IS UNDERWAY. THE COMPLETION

DATE rOR THIS SECTION Or THE HIGHWAY IS MID-1959. THE

PROPERTY WILL THEN BE WITHIN EASY REACH Or A riRST-CLASB

HIGHWAY TO SAULT STE. MARIE.

RC&iOtMT GtUi.0315*

Page 2: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

*' '"' t :

' m*'MAP__N O, 1

SKWIN'G LOCATION or COUTU

' \ - V -~* ' - -. ' •••-.*' - l - u,: .*.* A .4 - .* .,-. - - - i tp- .f* " ; p * -v ;-* i; -:

*')

DISTRICT or ALGOMA Pwov

SOAUCI 1 INCH s 1000 r CET

' '" ''. . -7- - "- * -*"1 vi1-' *i *

GOLO. MINES UUU-TCD '^ -f :: ^ Kf ̂ .|[•: ; S" v^C:'j^f^r

EVINCE or ONTARIO ' :.lr^;v?^tm,.^•V^.^'&t'i&fc

^ AAA ** v f 4* " . - '.; ,' . .''''-;. /i. XVs ;'l^*.?^^Jiik.

•ii.vi^'&'J^

!

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- 2 -

FUTURE MEANS or ACCESS (CONT'D)* i •"•'•i iJ^rL " - f. .j. - -Tf-j-t B. m " -JIL- - - ^ ^ J

GARQANTUA HARBOR AND INDIAN HARBOR ON LAKE

SUPERIOR tie SOME 12 MILES WSW or THE PROPERTY, AND AQAWA

STATION ON THE ALGOMA CENTRAL RAILROAD LIES SOME 12 MILES

TO THE EAST. SHOULD THE NEED ARISE, THERE WOULD DE LITTLE

DIFFICULTY IN OONNECTINO THE PROPERTY WITH ANY OT THE8E

POINTS BY ROAD OR RAIL LIK'E.

CLAIM DETAILS

THE PROPERTY CONTAINS THE FOLLOWING TEN UN8URVEVED

MINING CLAIMS*

S.S.M. 40556 TO 40563, BOTH INCLUSIVE,

8.s.M. 41860 AND 41871,

MAP NO. 1 SHOWS THE POSITION OF EACH CLAIM.

A99ES8MENT *ORK

CLAIM S.S.M. 40560 if IN GOOD WORK STANDING

UNTIL UULY 2?TH, 1960. THE REMAINING NINE CLAIMS ARC IN

QOOD STANDlNO UNTIL JULY 2?TH, 1959* '•t

RECENT PROviNO iAL STATUTCO PREVENT ANY FURTHER

TAKI NO OF MINING CLAIMS IN U.KC SUPERIOR PROVINCIAL PAUK.

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- 3 -

GENERAL .QEQJ.OQY

THE AREA L1E8 W ITHIN AN IRREGULAR GREENSTONE

MA86 EXTENDING FROM T HE MlSSANABIE ARCA TO THE NORTH TO

GARGANTUA HARBOR ON THE SOUTH. THE SOUTHERN PART or THIS

GREENSTONE MASS, IN WHICH THE COUTU PROPERTY LIES, HAS

BEEN MAPPED IN A RAPID RECONNA l SOANCE MANNER ONLY, AND

LITTLE: INFORMATION MAC BEEN PUBLISHED. IN GENERAL TKRMB

THE PROPERTY CAN BC DESCRIBED AS UNDERLAIN OY PRECAMBRIAN

GREENSTONES CONTAINING! A LARGE VOLUME OF INTRUSIVE ROCKS

Of DOTH AOID AND INTERMEDIATE COMPOSITION.

THE CAST LAKE SUPERIOR REGION is GEOLOGICALLY

RENOWNED rOR IT6 MANY THROUGH-GO l NQ LAJOR FAULTS WIYH

THEIR CHARACTERISTIC SHARP DEPRESSION AND SCARP TOPOGRAPHICAL

EXPRESSION. THE AERIAL PHOTOtRAPHS Or THE GAMITAQAMA AREA

REVEAL SEVERAL SUCH SHARP TOPOGRAPHICAL DEPRESSIONS. THOSE

IN THE VICINITY or THE COUTO PROPERTY ARC CHOWN ON MAP NO.

2 WHICH ACCOMPANIES THIS REPORT.

THREE GOLD SHOWINGS ARC KNOWN ON THE PROPERTY.

THE l K LOCATION* ARC ftMOWM ON MAP NO. 2.

MAIN

THE MAIN sHOwiNa u A QUARTZ VEIN OOMC 4 TO 5

W l DC. /l 18 EXPOSED fOR 50 fCCT IN LENGTH. IT tTRIKCS

(MAO*) AND DIPS 63 0 SE. THE QUARTZ i s W HITC AND C OKYAINB

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Page 6: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

MA IN SHOEING (CONT'D)

ALMOST NO SULPHIDES. GOLD WAS SEEN IM IT AT A PLACES ALONG

IT8 EXPOSED LENGTH. A CHIP SAMPLE TAKEN ACROSS IT A88AVED

^12. 45 GOLD PER TON ACROSS 4. J, fEET* (ALL GOLD A08AY8 IN

THIS REPORT ARC CALCULATED WITH GOLD AT ^35 *t* OUNCE).

THE VEIN IS ENCLOSED IN SHEARED rtLDSPAR PORPHYRY.

GOING SOUTHWEST THE VEIN CAN OK TRACED THROUGH

ron 30 J-EET AND THEN IT in EXPOSED AGAIN TOR 15

AG TWO PARALLEL VEINS EACH \ FOOT W|DC AND 2 TEET APART.

VEINS OTUIKC 050 (f.'AO.) AND DIP 61 S, A CHIP SAMPLE

ACROSS T O VEINS ANO THE INTERVENING PORPHYRY ASSAYED

^18. 90 GOLD PCR TON ACROSS 3.0 fEET.

8QVTH SHOWING

SOME BOO rtET SOUTHWEST or THE MAIN SHOWING A

VEIH Or SIMILAR TYPE IS EXPOSED. THIS VEIN 18 ABOUT

WIDE AND IS EXPOSED rOR ABOUT ?0 rCCT Or LENGTH. IT

OAO0 (MAG.) AND DIPS 600 8E. IT fs ENCLOSED IN SHEARED

FELDSPAR PORPHYRY. A CHIP SAMPLE ACROSS THIS VEIN A88AYCD

#3.50 GOLD PCR TON ACROSS 1,7

Souc 1000 ncer NORTHEAST or THC MAIN SHOWING, ON

THE NORTHWEST SWORE Of A SMALL LAKE* AN OUTCROP OF C*KAM~

t COLORED PORPHYRY CONTAIN* STRINGERS AND LENSES Of QUARTZ. ' -V

QOLD WAS SEEN AT ONE POINT IN ONE Of THE STRINGERS. A COMPOSITE

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- 5 -

SMQWINQ (CONT'D)

CRAB SAMPLE TAKEN FROM 8OMC OF THE QUART! BLC*8 AND STRINGER!

A88AYED ^O.?0 GOLD PKR TOM. THE OUTCROP 18 ABOUT f l TT t W

fEET IH DIAMETER*

IN ADDITION TO TNC8C THREE SHOWINGS, A XONC Of

SHEARED ANO Ml NCRAt lZCC PORPHYRY WAS MCN BETWEEN THI MAIN

CMOWiNO AND THE 3&UTH SHOW lNO. THIS SHEAR CONTAINED QUARTt

STRINGERS AND PATCHES OF PY*)TC, ANO THE PORPHYRY AROUND IT

CONTAINED MANY QUARTZ 8TRINOERS ANO UCN8EB. A ORAB SAMPLE

mOU THE SMEAR AB8AYED ^2.10 OOLO PER TON. A COMPOSITE

GRAB SAMPLE TROU THE QUARTZ STRINGERS AND LENSES ASSAYED

^.20 PfTR TON GOLD. THE QUARTZ STRINGER ZONE IS SOME 20

fEET WIDE.

SOME ANQULAn CLOCKS or WHITE QUARTZ rouwo 250 fEET

GOUTHVtEBT OF TMC SOUTH DMOY/INO WEUE GRAB SAMPLED AND THE

CAMPLE ACSAYED ^0.?0 GOLD PER TON.

A QUARTZ VEIN CUTTING ACROSS THE MAIN SHOWING AT

THE NORTMEND WAS AL80 CHIP SAMPLED. THIS SAMPLE ASSAYED

^0.70 GOLD PER TON ACROSS 2.4 FEET. THE VEIN STRIKES 3250

(l.'.AG.) ANO DIP5 VERTICALLY.

ALL THE OHOWINQ8 OCCUR ALONG A NARROW VALLEY

TRENDING ABOUT 0^5 (MAG.). THl B VALLEY CHOWS CLEARLY ON

AERIAL PHOTOQRAPHG AS A LINEAMENT. THE ROCKS EXPOSED ALONG THE

GIDES OF THE VALLEY ARE WELL CHEAREO AND CHLORITIZEO IN MANY

PLACED. THE SURFACE EVIDENCE IS STRONGLY INDICATIVE Or A

FAULT ZONE ALONG THE VALLEY.

Page 8: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

- 6 -

A

PREVIOUS WORK QH PROPERTY

A VERY SMALL AMOUNT Of STRIPPING MAO BEEN DONE

ON THE: THREE SHOWINGS.

12 SHORT DIAMOND DRILL HOLC8 WERE PUT DOWN WITH

AN X-RAY MACHINE DURING THE WINTER OF 1956 TO INVESTIGATE

THE MAIN SHOWING. THE PLAN AND SECTIONS or THESE HOLES

ACCOMPANY TMI8 REPORT. THE DRILLING DATA WAS SUPPLIED OY

W. D. SUTHERLAND, MINING OTOLOGIST, WHO WAS IN CHARGE or THE

DRILLING PROGRAM.

ALL 12 HOLES INTER8FCTED THC VC IN. THE AVERAGE

Or THE 12 INTERSECTIONS IB IN THE ORDER Of $10 - $12 CUT

GRADE ACROSS 2 fEET TRUE WIDTH ALONO A LENGTH Or lAO FEET.

THE AVERAGE GRADE DEPENDS UPON HOW RIGOROUSLY THE HIGH ASSAYS

ARE OUT. THE AVERAGE UNCUT ASSAY GRADE 18 ABOUT S15 PER TON.

THE VEIN WA8 NOT DELIMITED DM CITHER END.

THE DRILL RESULTS ALSO BUG Q E 87 THAT THC MAIM VEIN

MAY CONTAIN AN ORE SHOOT PLUM* l NO 8OUTHWC8T FROM ITS SURFACE

EXPOSURE WHIOH WOULD GRADE IN THE ORDER OF ^ OUN ' GOLD

U17.50) Acnoes 3 FCCT.

SEVERAL OF THC DRILL HOLES INTERSECTED FAULT

GOUGE. IN tone HOU:* Gou*r WAS INTERSECTED WITH THC VEIN

MATERIAL, AND VCIN CORE RECOVERY IN THC8E HOLES WAS TNEREFOWC

LOWERED. NOME or THC HOLES WCWT FAR ENOUGH TO EXPLORE UNDCR

TNS VALLEY.

Page 9: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

.

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Page 10: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

t.2

-'U'"'•r

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Page 11: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is
Page 12: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

- 7 -

80 FAR A8 OAK BC CONCLUDED fHOM THC LIMITED

EVIDENCE AVAILAB1.V, T H Z GEOLOGICAL SmiHQ 18 FAVORABLt.

THC FAULT ZONE WHIOM ALMOVY OKRTAINLV UNDERLIES THC VALLEY

PROVIDES A STRONG BTRWCTUrtAl. CONTROL f ON O.UAATZ VEINS AND

STRINGER ZONC8 ALONG ITS LKMOtK. TNK AS8OCIATED ROC K B ARC

VOLCAN 10 fVOW8 t DIORITC, AND PORPHYRY - ALL Of WHICH ARC

COMMON PRECAMBRIAN HOST ROOKS TO OOLD-BCARIMO VCINQ.

THE MAIN SHOWING SHOWS FROM i BE or OCVCLOPINO INTO

AN IMPORTANT ORE SHOOT. THE PRXSCNT SAMPLING YIELDED ORE-

QRADC RESULTS IN IT8 SURFACE EXPOSURE, AND V HC PREVIOUS

SHALLOW OR I LL l NQ SUGGESTED AN ORE-GRADE SHOOT EXISTED

OCMEATH THE EXPOSURE.

THE SOUTH AND NORTH SHOWINGS HAVE DTKN so LITTLE

EXPLORED THAT IT is DIFFICULT TO EVALUATE THEM. THE ONE

SAMPLE T AKEN ACROSS T HE SOUTH VEIN WAS LOW-GRADE BUT NOT

iN8|ONirICANT. THE SAMPLE OF THE MORTH SHOWING YIELDED

A LOW AND UNIMPORTANT A SSAY, ALTHOUGH GOLD WAS 8EEN AT ONE

PLACE IN IT*R MANY QUARTZ STRINGERS, AND IT HAS AN INTERESTING

SIZE. IT 10 LIKELY THAT BOTH THE SOUTH A ND NORTH SHOWINGS

DCCERVE r.O^E FURTHER STRIPPING AND ASSAYING.^

THE MINERALIZED SHEAR AND STRINGER ZONE BETWEEN

THE MAIN AND SOUTH SHOWINGS l Q VERY INTERESTING BECAUSE Of

nOTH ITS GOOD WIDTH AND iTS^ LOW BUT NOT AT ALL INSIGNIFICANT

A8SAYO. THIS 18 THE TYPE OF OCCURRENCE WHICH SOMETIMES

DEVELOPS INTO LARGE TONNAGES Of PAYABLE ROCK. -

Page 13: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

(COKT'D)

THE VAUUtV ALONO WMION AU. TNK *HOWIW08 OCCUR

BCCMO TO HAVE OEEK 1 1 TT Ut PROWCOTKO* IT 18 KZAtONABt.lt VO

EXPECT THAT cARiruk PROSPECTING WOVLO UNOOVCR FURTHER QUART*

VEIMB WHICH A WC- WOT A8 O*VtOU8LY EXPOSED AB T HOSE N OW KNOWN.

THE fAULT Z ONE WHIOH ALMOST OIirTAlMLY UNOKRi.lt8 TMC

le cowptrrctv UNIXPUDRCO. IN v iew or T HC KNOWN COLD

CNOCS ON ITS MAROfNt, IT OITf*8 AH IHTICINQ CXPLOnATIOW

TARQCT*

ALL. FACTORS ooNstDCRtD, TMC pfioptnTY orrcns oooo

CHANCCft fOR riNOtNG PROflTABLC OOLO VEINS AND CTR1NQCR ZONC8

A COMPREHENSIVE PROO-U* Of EXPLORATION 18 WELL WUBTlflED.

A. THE pnoptnTv SHOULD BC cARErvLLY PROBPECTED.

B. THE PROPERTY SHOULD BE MAPPED GEOLOGICALLY IN DETAIL,

USINC PICKET LINES AND AERIAL PHOTOGRAPHS TOR CONTROL.

C. THE MAIN SHOW i NO OHOVLD BE FURTHER EXPLORED BY DIAMOND

DRILLING ALONG IT8 EXTENBI^MS AND TO DEPTH.

D. THE FAULT VALLEY SHOULD , X GYSTTMAT I CALLY EXPLORED

ALONC ITG LENGTH DY DIAMOND DRILL HOLE8.

Z. THE NORTH AND SOUTH RHOWINOS (AKO ANY NEW PROSPECT INQi

FINDS) SHOULD DE TURTHER STRIPPED, ABOAYEO, AND PROBED BY

Mk PACKSACK DRILL.

Page 14: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

- 9 -

ftCOST ESTIMATES.

A. PROSPECTING ..,.................. s 2,000

B. GEOLOGICAL MAPPING ................ 2,OOO

C.DIAMOND DRII.LINO - 10,OOO rr.tj © ^A., Ao,OOO

D.

H!. GTRIPPINQ, ASSAYINO, PACKOACK WORK .., 2,OOO

UupcnvioiON ..... t ....,,......... t . 2,OCO

CAMPO, T HAN SPORTAT J ON . . . . . , . . .. . .. . * 2 ,OOO

^50,ooo

Rose KIDD'nr 5TH, T 958 MINI NO

BATHURST, N.8.

Page 15: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

CERTIFICATE

t, Rots KIDD, or THE TOWN or BATHURST, IN

THE PROVINCE Cif.NCW BRUNtWICK, HEREBY CERTirY THAT J

1. l AM A WININO CNOINEER WITH BUS f MI 88 ADDRE8*

AT BATHURST , N.B. .

2. t AM A GRADUATE or THC UNIVERSITY OT TORONTO

AND HAVE 8ECN PRACTISING MY PROFESSION A8 A

MININO ENGINEER 8INOE QRADUATION.

3. l HAVE NO INTEREST, DIRECTLY OR INDIRECTLY,

NOR DO l EXPECT TO RECEIVE ANY INTEREST, DIRECTLY

OR INDIRECTLY, IN THE PROPERTY OR SECURITIES Or

COUTU GOLD MINES LIMITED.

4, THE ACCOMPANYING REPORT IS B ASED ON A PERSONAL

RECONNAI 88ANCE Or THE PROPERTY ON JULY 1 2TH, 1958,

DATED AT BATHURST, N.B. THIS STH DAY or AUGUST, 1958.

Ross KIDD MINING ENGINEER i

Page 16: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

41N10SW0006 ASSEUN16 ASSELIN 020

COUT OLD INES

LIMITED

PROSPECTUS

, ; r"~.X ' ' )1 •'""•I i 1'V V

HEAD OFFICE

BOX 136

BLIND RIVER

ONTARIO

Page 17: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

This prospectus has been filed pursuant to the provisions of The Securities Act of the Province of Ontario.

COUTU GOLD MINES LIMITED(Incorporated under The Corporations Act of the Province of Ontario by

Letters Patent dated the 7th day of July. 19.S8)

HEAD OFFICKc n Box 136

Hi INI) RIVKR. ONTARIO

President (md Director

Vice-president and Director

Director

Director

Director

Secretary- Treasurer

DIRECTORS AND OFFICERS\YILLI.\M DONALD SUTHERLAND.Consult inn Geologist,Box 136.Blind River, Ontario.NKSTOR JOHN ERECHOOK.Businessman,Wawa, Ontario.GKRALD WILBUR COUTU,Prospector,Wawa, Ontario.CHESTER DOUGLAS ANDKRSON.Banker,Blind River, Ontario.PAUL COULTER McLKAN,Consulting Geologist,1708 Cassel l Street.North Bay, Ontario.(Mrs,) JOAN HELENA SUTHERLAND.Married Woman,Box 136.Blind River, Ontario.

PROMOTERSWni.iAM DONALD SUTHERLAND

NESTOR JOHN ERKCHOOK .

GERALD WIUUJR COUTU

WlI.FRKt) HYACINTH!-: COUTU

Louis ARTHUR COUTU

E. MURRAY WHITEAUDITOR

Consulting Geologist. Box KU),

- Blind River, Ontario. Businessman, Wawa, Ontario. Prospector, Wawa, Ontario. Steel Worker, 59 Wawanash Avenue. Sault Ste. Marie, Ontario. Gate Watchman, Wawa, Ontario.

Chartered Accountant, Box 719.Suite 21, Elliot Plaza Building, Elliot Lake, Ontario.

CROWN TRUST COMPANYREGISTRAR AND TRANSFER AGENT

. .' . . . . . 302 Bay Street. Toronto l, Ontario.

Page One

Page 18: GEOL & DDH RPT ON GAMITAGAMA L AREA · asselikmb asselin 010 report om coutu gold mine8 umited gamitaoama lakc ditimot or algoma province or out ah i o location o the property is

1. The authorized capital of the Company is three million dollars (S3.000.000) divided into threr million (3,000,000) shares of the par value of one dollar tSl.OO) each, of which four hundred and sixty thousand and five M60,005t shares have Ixx-n issued and are fully pai' l and non-assessable. There a'.e no bonds or debentures outstanding or proposed to be issued. No commission has been paid or is payable on the sale of the Company's shares. No Supplementary letters Patent have been issued to the Company.

2. By an indenture of "Memorandum of Agreement" which is hereinafter referred to as "THE MAIN CONTRACT", dated the 23rd day of October 1958 and entered into between William Donald Sutherland, of l he Town of Blind River, in the District of Algoma and in the Province of Ontario, here inafter called "SUTHERLAND", of the first part, and the Company, of the second part. Sutherland sold to the Company, and the Company purchased, ten (10) unpatented mining claims, to which reference is hereinafter made as "THE SAID CLAIMS", situate in Gamitagama Lake area of Township Thirty, in Range XIX, in Lake Superior Provincial Park, in the Sault Ste. Marie Mining Division of the Province of Ontario, numlx-red S.S.M. -10556" to S.S.M. .10563, both numbers inclusive, S.S.M. 41860 and S.S.M. 11871. The considerations stipulated in the Main Contract to Ix1 paid by the Company was the sum of thirty thousand dollars (S30.000) which has been satisfied by the allotment and issue by the Company of three hundred thousand (300,000) shares, which arc hereinafter referred to as "THE VENIXJRS' SHARES", tit the issue price of ten cents (10p per share and as fully paid and non-assessable, to the under named persons in the proportions respectively set opposite the name o f each, that is to say:

NAMK \r\nu:u OK SHARKSWilfred Hyaeinthe Coutu . 37,500Louis Arthur Coutu 37.500Gerald Wilbur Coutu 37.500 Edmond Cameron Coutu. Wellington, British Columbia 37,5(X)Nestor John Erech(X)k 75, IKK)William Donald Sutherland 75,(X)0

3tX),00(.)

3. The registrai and transfer agent of the Company holds two hundred and seventy thousand : 270.000) of the Vendors' Shares of the Company in escrow, to be released only with the prior written const-lit of the director s o! the Company and the Ontario Securities Commission.

1 The shares o! the Company sold for cash to date are:

TUIAI oi- SHARKS TOTAI CASH Ri-.c. KIVKD COMMISSION PAIDSO.OOO S8.000.00 Nil

5 5.00 Nil

80.U15 S8.(X)5.(X) Nil

On the LMih day of l-Vbruary I960, the total of eighty thousand (80.IKK), shares o! the Company were allotted to William Donald Sutherland and Nestor John Erechook at the issue value of ten cents (lOe) pei share in consideration of exjK'nditure^ in the amount of eight thousand dollars (SS.OOO) advanced by them on account of the cost-- o! diamond drilling performed on the Said Claims during the year 1959.

5. No other shares of the Company have Ixx'ii issued or are proposed to IK.- issued and no cash has Ix/c-n paid or is proposed to be paid to anv promoter. No other securities ut the Company have l)et'n sold tor cash to date or are projxjsed to be sold

(i. I'nder date of the 22nd day of January I960 the Company made application lo The Department of Mines of the Province of Ontario for the reservation in favour of the Company of the mining rights in land adjoining the Said Claims ujxw the west, south and east. That application stated that (i) the known gold bearing /one m the Said Claims had been traced by diamond drilling to within seven hundred (700) feet of the Ixmndary of the Said Claims on strike to the south-west, (ii ' it was considered possible that the mmerah/ed /one extended beyond the limit o! the Said Claims, (m i it was considered possible that a similar situation could develop with the performance of exploration work on strike in the north-east, (iv) the zone previously explored by shallow drill holes would extend beyond the limits of the Said Claims at depth if the /one was continuous on its indicated south-east dip to a depth of one thousand (1,000) feet, and (v) two additional fault lineaments occur in the Said Claims which might be indications of other ore-bearing structures which warrant further exploration work and which extend beyond the limits of the Said Claims. The Company is informed that The Department of Mines of the Province of Ontario ha* reserved the area applied for from staking. The Company made the said application and regards the said area which it is informed has Ix-en reserved from staking as protection to the Company in the event that further exploration work upon the Said Claims produces results which warrant the development thereof.

/'rt gr Tifo

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7. Ross Kidd, Registered Professional Engineer, of Green River, Ontario, under date of the 25th

tjf October I960, has made the accompanying report upon the Said Claims. In that report are given culars of (i) the means of access to the Said Claims, (ii) the character, extent and condition of the sur- exploration and development done, (iii) the known history of the property and (iv) a description of

the work done and improvements made by the present management. No underground exploration or development work has been done and there is no underground plant or equipment. There is no surface plant or equipment. The surface exploration and development which has been done consists of sampling and geological work, together with trenching and stripping of rock outcrops and diamond drilling. Explora tion work is expected to proceed as conditions permit, and it is proposed to perform, so far as may be warranted, further explorations on the property, as recommended in the accompanying report.

8. No securu'.c;, of the Company are covered by option agreements or underwriting agreements outstanding or proposed to be given.

9. No indebtedness is to be created or assumed by the Company which is not shown on the balance sheet of the Company as of the 31st day of October 1960 which accompanies this prospectus.

10. (a) William Donald Sutherland has practiced in Canada as a consulting geologist for upwards of eight years during which he has been actively engaged in the business of explora tion for minerals.

* (b) Nestor John Erechopk has operated a number of business establishments at Wawa, in the Province of Ontario, for upwards of eight years. He is the principal share holder of Noralgo Investments Limited and operates at Wawa Noralgo Building Supplies.

(c) Gerald Wilbur Coutu has been a prospector for upwards of five years and has been employed as a foreman at the sinter plant of Algoma Ore Properties Limited since in or about the year 1945.

(d) Chester Douglas Anderson has been the Manager of the Blind River, Ontario, branch of The Bank of Nova Scotia for upwards of five years.

(e) Paul Coulter Mcl^ean has practiced in Canada as a consulting geologist for upwards of seven years.

(f) Joan Helena Sutherland has been the wife of William Donald Sutherland for upwards of nine years during which time she has carried on no active business.

11. Save as hereinbefore specified, no director or officer of the Company has ever had any interest, rlirect or indirect, either personally or as the partner in a firm, in any property acquired or to be acquired by the Company. No remuneration has been paid by the Company during its last financial year and no remuneration is intended to be paid or is payable during its current financial year to the directors and officers of the Company.

12. No dividends have been paid or are payable by the Company.

13. By reason of the beneficial ownership of shares of the Company, the promoters of the Company are in a position to elect or cause to be elected the majority of the directors of the Company.

14. It is the intention of the Company to apply for and obtain registration with The Ontario Securities Commission as a Security Issuer and thereafter sell sufficient of the shares of tU^ Company at the price of one dollar (SI .00) per share to enable the Company to proceed with the further exploration programme recommended in the accompanying engineer's report. The proceeds of any such sales of share* will be expended upon the current operating expenses of the Company and upon that recommended programme substantially as follows, that is to say :

(a) Careful and detailed prospecting of the Said Claims, including geological mapping.

(b) Diamond drilling to explore the "main showing" referred to in the accompanying report of Ross Kidd along its possible extensions and at depth.

(c) Exploratory diamond drilling along the "shear valley" referred to in the said report.

(d) Further stripping and sampling where warranted in the course of detailed prospecting.

k

Pagt

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The costs of the said proposed programme of exploration are estimated as follows:

(a) Prospecting. . . . , . .. . ... .. . . . ... .,... , . .. ... . S2,500.00

(b) Geological mapping.. .................,. ,.. .......,........ 2,000.00

(c) Diamond drilling: (i) Standard drill 10.000 feet at S4 per foot . . ... .. . .., . 40,000.00

(ii) X-ray drill 1.000 feet at S2 per foot. . . . . . . . . . . . . . . . 2,000.00

(d) Supervision. . . . . . . . .,. . . . . . . . . . .. . . 3.000.00

(e) Camps, transportation, supplies, assays and general and miscel laneous current operating expenses.. .......... . .. .. .. .... 5,500.00

S55.000.00

The Company does not propose paying any commission upon any of its shares subscribed for or agreed to be subscribed for.

15. As a Security Issuer the Company will offer its shares for sale through its officers or registered salesmen employed by the Company, with a minimum return of seventy-five percent (75*^,; of the proceeds from the sale of its securities going into the Company's treasury, or through the medium of a registered dealer in which event a commission of up to twenty-five percent (259r) may be paid and the Company may pay costs of distribution but such payment shall not exceed fifteen percent (15^). The proceeds to the Company's treasury shall not be less than'ten cents (10^) per share.

16. The Company has been advised that Gerald Wilbur Coutu, Wilfred Hyacinthe Coutu and Louis Arthur Coutu, or one or more of them, may sell or endeavour to sell some or all of the fifteen thousand (15,000) of the Vendors' Shares held by them which are free from escrow. William Donald Sutherland and Nestor John Erechook do not propose selling or endeavouring to sell any of the Vendors' Shares held by them which are free from escrow. The Company and its directors are not aware of any effort made or proposed to be made to sell any of the escrowed Vendors' Shares.

The foregoing constitutes full, true and plain disclosure of all material facts in respect of the offering of securities referred to above as required by Section 38 of The Securities Act (Ontario), and there is no further material information applicable other than in the financial statements or reports where required.

"W. D. SUTHERLAND". "NESTOR JOHN ERECHOOK", Director and Promoter. Director and Promoter.

"G. W. COUTU", "C. I). ANDKRSON",Director and Promoter. Director.

"PAUL MCLEAN", "JOAN H. SUTHERLAND", Director. Secretary-Treasurer.

"W. 11. COUTU", "Louis ARTHUR COUTU", Promoter. Promoter.

DATED this 28th day of January 1961.

Page Four

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COUTU GOLD MINES LIMITED^(Incorporated as a Limited Liability Company July 7, 1958, under Ihe Laws of the Province of Ontario. The

Corporations Act 1953, Part IV)

S&eetAS AT OCTOBER 31. 1960

ASSETS CURRENT ASSETS:

Cash on hand S 30.39 Cash in hank . . . . . . . . . . 6.737.68

-— . —— s 6,768.07 MINING PROPERTIES (Note D — 10 unpatcnted claims 30,000.00DEFERRED PREPRODUCTION EXPENDITURE -Schedule 1:

Administration SI. 459.50 Development and exploration . . . 7,192.43-— ..-- 8.651.93

ORGANIZATION EXPENDITURE 935.00

S46.355.00

LIABILITIES AND CAPITAL CURRENT LIABILITIES:

Accrued engineering and audit fees . . S 350.00

CAPITAL:Authorized :

3,000.000 shares with a par value of SI. 00 each 3.000,000.00

Issued and Fully Paid:In consideration for mining claims 300,000 shares S300.000.00

Less d iscount . 270,000.00——— ...... S30.000.00

In consideration for preproduction costs 80,000 shares S 80,000.00Less d iscount . . . . . 72.000.00... ——— .— 8.000.00

In consideration for cash 80.005 shares. S 80,005.00Less d iscount 72,000.00

r ——— .— 8,005.00-. ———— 46,005.00

S46.355.00FOOTNOTE:1. 10 unpatenlcd mining claims in Township 30. Lake Superior Provincial Park, Province of Ontario, were acquired from W. D.

Sutherland pursuant to an agreement dated October 23, 1958 for the consideration of 300,000 thai t* Ucued at a discounto(9070 . . .. .

APPROVED ON BEHALF OK THE BOARD OF DIRECTORS: "W. D. SUTHERLAND", Director. "N. J. ERECHOOK", Director.

Issued subject to my report of this date "E. MURRAY WHITE".

November 16. 1960 CkartertJ Accountant.t

Pagt Fin

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E. MURRAY WH1TK Chartered Accountant

BOX TIB KI.UOTT LAJCE, ONTARIO November 16. 1960.

TO THE SHARF.HOU*RS.

OOUTU GOLD MINES LIMITED. BUND RIVER. ONTARIO.

I have examined the Balance Sheet of Coutu Cold Mines Limited as at October 31. 1960 tnd Statement of Deferred Preproduction Expenditure for the period ended on that daU. My examination included a general review of the accounting pro cedures and such tests of accounting record* and othet supporting evidence a* I considered necessary in the circumstance*, l have obtained all the information and explanations that I have required.

I did not verify title to the mining claims.

In my opinion the accompanying balance sheet and schedule of deferred preproduction expenditure present (airiy the financial position of the company as at October 31, 1960 and the results of its operations for the period ended on that d*te. according to the bcsl of my knowk-dftc and belief, and as shown by the accounting records of the company.

"E. MURRAY WHITE".CHorlfTtd Accountant

COUTU GOLD MINES LIMITEDSCHEDULE l

SCHEDULE OF DEFERRED PREPRODUCTION EXPENDITUREFROM INCEPTION TO OCTOBER 31. 1960

ADMINISTRATION :Auditing. .S 150.00 Interest and exchange 12.07 Telephone and telegraph 194.20 Government fees and licences 472.25 I-cgal 500.50 Printing and stationery . 126.11 Freight and express 4.37

Total to October 31, 19GO- Balance sheet . ,. . .. 51,459.50

DEVEI.OI'MKNT AND EXP1.OK.VI ION :

AssaysDiamond drillingEngineer's feesGeneral exploration (including travelling)WagesTotal to October 31. 1960—Balance sheet

S 183.953.138.61

500.00973.87

2,396.00

S7,192.43

Page Six

T.

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REPORT ON

COUTU GOLD MINES LIMITEDTWP. 30 RANGE XIX DISTRICT OF ALGOMA

PROVINCE OF ONTARIOLOCATION OF PROPERTY

The property is located some 80 miles NNW of the city of Sault Ste. Marie, Ontario, and some 23 miles SSE of Michipicoten Harbor on I^ike Superior. Map No. l, which accompanies this report, shows the location of the property. It lies K, mile south of Gamitagama Lake and is located wholly within Lake Superior Provincial Park.

MEANS OF ACCESSThe new Southern Route of the Traps-Canada Highway passes about 2 miles to the west of the

property. The property is thus easily accessible from Sault Ste. Marie via this highway. It is also readily reached by bush airplane to Gamitagama L; ke from Bases in Sault Ste. Marie or Wawa, Ontario.

Gargantua Harbor and Indian Harbor ^n f-ake Superior lie some 12 miles WSW of the property, and Agawa Station on the Algoma Central ard Hudson Bay Railway lies some 12 miles to the east. Should the need arise there would lw little difficulty in connecting the property with these points by road or rail line.

CLAIM DETAILSThe property is made up of ten unsurveyed and contiguous mining claims plus a mining reservation.

The total property area is about 1100 acres. The locations of the claims and the mining reservation are shown on the accompanying Map No. 1.

The numbers of the claims are:S.S.M. 40556 to 40563, both inclusive, S.S.M. 41860 and 41871.

The mining reservation is numbered File 83. 2-1.

ASSESSMENT WORKAll ten claims are unleased. Sufficient work has been recorded in their favour to keep them in

good standing until July of 1962 and to make up the work requirement for lease. If the claim boundaries are now surveyed they will be ready for lease.

No work is required to bc performed on the area set aside under the mining reservation. Provincial statutes prevent any further staking of mining claims in Lake Superior Provincial Park.

Pate Swn

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MAP M0- l

a Sic MightLOCATION or COUTL' GOLD MINES L l M l T E D

SC^LE: l IN. s 1000 F T.

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IISTORYMr. Wilfred Coutu of Sault Ste. Marie, Ontario discovered gold near Ihr sou .h shore of Gamita-

gama Lake in the spring of 1955. The discovery is shown as "Main Snowing" on the accompanying Map No. 2. Subsequent prospecting found the "South Showing" and "North Showing".

12 X-ray drill holes were put down under the Main Showing during the winter of 1956. and ten additional X-ray holes were put down in the summer of 1959 under the South and North showings and in the intervening areas. The locations of the showings and drill holes are shown on the folded plan which accompanies this report.

The results of the drilling are described in the following sections of the report.SHOWINGS

Three gold showings are known on the property. Their locations are shown on Map No. 2.

MAIN SHOWINGThe main showing is a quartz vein some 4 to 5 feet wide. It is exposed for 30 feet in length. It

strikes 045" magnetic and dips 68" SK. The quartz is white and contains almost no sulfides. Gold was seen in it at 4 places along its exposed length. A chip sample taken across it assayed SI2.45 gold per ton across 4.3 feet. (All gold assays in this report are calculated with gold at S35 per ounce ) The vein is enclosed in sheared feldspar porphyry.

Going southwest the vein can be traced through overburden for 30 feet and then it is exposed again for -a length of 15 feet as two parallel veins each \ 'i foot wide and 2 feet apart. These veins strike 0600 magnetic and dip 61 0 S. A chip sample across the two veins plus the intervening porphy-- assayed 518.90 gold per ton across 3.0 feet.SOUTH SHOWING

Some 800 feet southwest of the mam showing a vein of similar type is exposed. This vein is about 1^ feet wide and is exposed for about 20 feet of length. It strikes 0400 magnetic and dips GO0 SE.- It is enclosed in shea ret! feldspar porphyry. A chip sample across this vein assayed S3.50 gold per ton across 1.7 feet.NORTH SHOWING

Some 1000 feet northeast of the mam showing, on the northwest shore of a small lake, an outcrop of cream-coloured jiorphyry contains stringers and lenses of quartz. Gold was seen at one point in one of the stringers. A composite grab sample taken from some of the quartz blebs and stringers assayed S0.70 gold per ton. The outcrop is about 15 feet in diameter.

In addition to these three showings, a zone of sheared and mineralized porphyry was seen between the Main showing and the South showing. This shear contained quartz stringers and [ ' hes of pyrite, and the porphyry around it contained many quartz stringers and lenses. A grab sampi i.'om the shear assayed S2.10 gold per ton. A composite grab sample from the quartz stringers and lenses assayed S4.20 gold per ton. The quartz stringer *,ine is about 15 feet wide.

Some angular blocks of ^^.te quartz found 250 feet southwest of the South showing were grab sampled. The sample assayed SO.70 gold per ton.

A quartz vein cutting across the Main showing at its-north end was also chip sampled. This sample assayed SO.70 gold per ton across 2.4 feet. The vein si. 'kes 325" magnetic and dips vertically.

All the showings occur along a narrow valley trending about 045" magnetic. This valley shows clearly on vertical aerial photos as a lineament. The rocks exposed along the sides of the valley are well sheared and chloritized in many places. It is clear that the valley "is the surface expression of a shear or fault zone.DRILL RESULTS

A plan and sections of the 22 X-ray drill holes put down to date on the property accompany this report. The drilling data was supplied by W. D. Sutherland, Mining Geologist, who was in charge of the drilling programs.

The first 12 holes ,/ere put down under the Main Showing. All 12 holes intersected the vein. The average cf the 12 intersections is about S15 per ton across 2 feet true width along a length of 140 (eet. If tlie high assays are cut to average grade, the resultant cut grade is about Sil per ton. Tne vein was not delimited on either end.

The drill results suggest that there may be an ore shoot plunging southwest from the Main Showing surface exposure which grades in the order of ^ ounce gold C$17.50) across 3 feet.

Several of the drill holes intersected fault gouge and strong shearing, and in some of the holes the vein recovery was hampered by core loss in the gouge and shearing.

The ten drill holes put down in 1959 explored the North and South Showings and the ground between the Main and South Showings. Holes 13 and 14 under the North Showing intersected considerable vein material but only low gold values. Holes 15, 16, 17, 18, and 19 explored the South Showing and the mineralized shear and stringer zone nearby. These holes intersected the South Showing and shear where expected, and these zones yielded gold values of SI.75 to J4.90 across widths of 1.5 to 7.0 feet.

Page Nint

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Ci A M l T A. O A W A, L A K C

MAP Mo - a. .-'^ T l v, N ; ) OF ojHG.'i l N'.Jo AND ^AJl T LiiMt.A\

b'OALr. : l I NCH r. K") G O

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(•'i AM s,,r.w..ni iOCAT'lOM Df L'kU ,. HOi. t. -o l \ a 'J

COUTU GOLD ..MIMES LTD.1 \VP 3O

"D ft

l O O S 3 O

t...m..

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N

\

MAIN SHOWING

10 w 11

VERTICAL SECTIONTHROUGH HOLES 1,2,3

SCALE: 1 INCH - 30 FEET

Page Tuielte

DIAMOND DRILL PLANHOLES 1 TO 12 CLAIM S.S.M. 40560

SCALE. 1 INCH - 30 FEET

HOLES 1,2,3

1 ,*

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VERTICAL SECTIONTHROUGH HOLES 4, 5, 6

SCALE: 1 INCH - 30 FEET

30*

VERTICAL SECTIONTHROUGH HOLES 7, 8, 9

SCALE: 1 INCH - 30 FEET

30' Page Thirteen

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.f*V ' ' ifti!??:''''**':

VERTICAL SEu'IONTHROUGH HOLES 10, 11

SCALE: 1 INCH - 30 FEET

VERTICAL SECIONTHROUGH HOLE 12

SCALE: 1 INCH - 30 FEET

Page Fourteen 3D 1

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NORTH SHOWING HOLES 13,14

VERTICAL SECTIONTHROUGH HOLES 13 AND 14

SCALE: 1 INCH - 30 FEET

HOLE 16

SOUTH SHOWING

VERTICAL SECTION

THROUGH HOLES 15 AND 16

SCALE: 1 INCH - 30 FEET

30'

Page Fifteen

P2— K J A

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HOLE 17HOLES 18,19

VERTICAL SECTIONTHROUGH HOLES 17,18, AND 19

SCALE: 1 INCH - 30 FEET

S1.88

Page Sixteen

HOLE 20 f*"

VERTICAL SECIONTHROUGH HOLE 20

SCALE: 1 INCH - 30 FEET

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VERTICAL SECTION

THROUGH HOLE 21

SCALE: 1 INCH - 30 FEET

30'

HOLE

VERTICAL SECTION

THROUGH HOLE 22

SCALE: 1 INCH - 30 FEET

051.5'

Page Seventeen

e

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Hole 20 intersected the South Showing vein at a point 100 feet west of its surface exposure, and the . intersection assayed S7.09 across 8.0 feet.

Holes 21 and 22 were put down between the Main Showing and South Showing. Hole 21 got no values and may have lost the vein intersection in sheared and crumbly ground. Hole 22 intersected the vein and it assayed SI .05 across 1.5 feet.GENERAL GEOLOGY

No detailed geological data on the area is available. The Geological Survey of Canada has done some rapid reconnaissance along creeks in order to establish the greenstone boundaries, and this informa tion is published in the Geological Map of Canada.

In general terms the area is part of an irregular greenstone mass extending south from the Mis- sanabie area to Gargantua Harbor. The, property can be described as underlain by greenstone rocks of Precambrian age, containing a large volume of intrusive rocks of both acid and intermediate composition.

The east Lake Superior region is geologically renowned for its many through-going major faults with their characteristic long and straight fa*ult valleys. The vertical aerial photos o! the Gamitagama area reveal several such sharp topographical depressions. Those in the vicinity of the Coutu property are shown on Map No. 2 which accompanies this report.CONCLUSIONS1. The drilling done on the Main Showing suggests that an ore shoot exists there. Its size is not yet

determined.2. Sub-ore grade gold values have been intersected in rather widely spaced drill holes put down along the

southwest extension of the shear structure containing the Main Showing.. H is quite possible that further detailed drilling will outline further ore shoots in the shear.

3. The geological conditions are favourable. The shear provides good structural control over a length of at least 2000 feet. The associated rocks are volcanic flows, porphyry, and diorite—all of which are common Precambrian host rocks to gold-bearing veins.

4. Transportation conditions are very good. The property has easy access to a first-class highway, to rail facilities, and to a good Great Lakes harbor.

The property offers good chances for finding profitable gold ore shoots. A comprehensive program of exploration is well justified.RECOMMENDATIONSA. The property should be carefully prospected.B. The property should be mapped geologically in detail, using picket lines and aerial photos for control.C. The Mam Showing should be further explored by diamond drilling along its extensions and to depth.D. The shear valley should be systematically explored along its length by diamond drill holes.E. Any new prospecting finds should be further stripped, sampled, and probed by X-ray drill.COST ESTIMATES1. Prospecting... . . . .. . . . . . . . . . . . .. ,2. Geological Mapping. . . .. . . .., . .3. Diamond Drilling:—

Standard Drill-10,000 feet (5, S4 . . . . . ... . .. . .X-ray Drill--1,000 feet © S2. . . . . . ... . . . . ,

4. Supervision. .. .., .. . .. , . . .,.,.... . . . . . .. ...... .. ......, . . . ...5. Camps, transportation, supplies, assaying . .

October 25th, 1960 Toronto, Ontario.

"ROSS KIDD", P.Eng.Mining Engineer.

S 2,500 2,000

40.0002,0003.0005,500

S55,000

CERTIFICATEI, Ross Kidd, of the town of Green River, in the Province of Ontario, hereby certify that:

1. l am a mining engineer with business address at Green River, Ontario.2. I graduated from the University of Toronto in 1949 and have been practising my profession as a

mining engineer since graduation.3. l have no interest, directly or indirectly, nor do l expect to receive any interest, directly or indirectly,

in the property or securities of Coutu Gold Mines Limited,4. The accompanying report is based upon a personal examination of the property on July 12th, 1958,

and on September 27th, 1960. All surface sampling referred to in this report was done by me.DATED at Toronto, Ontario this 25th day of October, 1960.

"ROSS KIDD", P. Eng. Mining Engineer.

Page Eighteen

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COUTU GOLD MINES LIMITEDBLIND RIVER, ONTARIO

PHONE E L.I-794O P.O.BOX 13*

Coutu Gold Mines Limited was incorporated in 1958 for the pur pose of developing a new gold discovery in the Algoma district of Ontario. Initial work on the prospect, as described in the accompanying Coutu Gold Mines Limited prospectus, has been decidedly encouraging.

A limited offering of 55,000 shares is hereby made to the public at the price of $1.00 per share.

Coutu Gold Mines Limited acts as principal in the sale of Coutu Gold Mines Limited shares. All money received goes directly into the treasury of the Company. No commission is paid on the sale of shares. No salesmen or agents arc employed.

It is planned to use the proceeds from this offering to further develop the Company's gold prospect.

Shares of Coutu Gold Mines Limited are a speculative investment.

April 3, 1961.

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COUTU GOLD MINES LIMITEDBLIND RIVER, ONTARIO

PHONE CL.6-794B P.O.BOX 136

SOME INTERESTING INFORMATION ABOUT COUTU GOLD MINES LIMITED:

The Goutu Gold Mines Limited gold prospect is a new discovery.

Twenty-two diamond drill holes were drilled on the prospect before making a public offering of Coutu Gold Mines Limited shares.

The drill results indicate an ore shoot grading 517.50 in gold per ton across a width of .'5.0 ft.

Gold values have been intersected by diamond drilling for a length of 1,040 ft. in the main gold bearing structure.

Good gold values were intersected at both ends of the drilled length. The gold bearing structure is therefore still open for extension in both directions.

The deepest hole drilled returned ?71.90 in gold per ton over 3.2 ft.

The prospect is located two miles from the new Lake Superior route of the Trans-Carada Highway. A permit has been obtained to build a rond to the discovery.

The authorized capitalization of the Company is 3,000,000 shares. Of thio oiily 460,005 shares have been issued.

It is the intention of the management to finance the Company to production within the existing authorized capitalization if results from development warrant production.

Shares of Coutu Gold Mines Limited are speculative.

April 3, 1961.

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PLAN AN: FIELD NOTES

OF MINING CLAIMS S- S-M- 41860, 41871t40556, -57,-58r oS.-eO.-ei.-SZ,- 63,

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