REC~[i fl:D

& Ii II 2 8 {Uoa Mt5SCIENC~ ASSESSMENT

OFFiCE

Sim Lake Property Trenching Report 2008

NTS 52-P-01 SE

Mining Dist rict of Thunder Bay

Ontario

Prepared For

Canadian Prospector Inc.

1250-639 6th Ave. SW

Calgary, Alberta

T2P OM9

By: Ian Spence BSc. Geology

July 18, 2008

2-38694

1

Table of Contents

Overview

Introduction

Location and Access

Topography

Regional Geology

Property Geology

Exploration History

Trenching Program

Discussion

Conclusions

Statement of Qualifications

Maps Included in this Report

Figure #1 Ontario Location Map

Figure #2 Property Claim Map

Figure #3 Trench Geology Detail

Appendix A List of Personnel and Dates of Work

Appendix B Expense Breakdown for Project

Appendix B Trench Photos

2

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Figure 1

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X Sim Lake Property

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400 km Location Map

Sim Lake Property

Overview

Jan Spence of Thunder Bay, Ontario was contracted by Canadian Prospector Inc. of

Calgary Alberta, to conduct a trenching program its copper - nickel showing on its Sim

Lake Property. The purpose of this program was to detemline the spatial relationships

of the different mineralized zones and to delineate as best as possible future drill

targets.

Location and Access

The Sim Lake property is located 300 kilometers north-northeast of Thunder Bay,

Ontario, 170 kilometers northwest of GeraJdton, and 100 kilometers northeast of

Armstrong. (see Figure 1.)

The claims are recorded within the Thunder Bay Mining Division on the Sim Lake Claim

Map (G-400) (Figure 2). The property consists of 2 unpatented mining claims (TB

1231961 .and TB 1216877) totaling 32 units comprising a land area of approximately

512 hectares. The claim group is centered at latitude 51E04'30" and longitude 88E11'

10", within NTS block 52P01 SE. The property is illustrated on the Sim Lake claim map

(G-0400).

Access is provided by float or ski equipped aircraft from Armstrong or Nakina to Sim

Lake. Road access, to within eight kilometers, is provided by a restricted logging road

which passes south of Sim Lake. Use of this road is permitted by the Ministry of Natural

Resources in Gearldton and the appropriate permits can be obtained from them.

Topography

The property is characterized by low topographic relief, which seldom exceeds 20

meters above Sim Lake. Outcrop exposures are common along the shoreline of Sim

Lake but sparse over approximately 70% of the property, due to a cover of

thick black spruce timber and swamp. The area was hit by a severe windstorm in

4

the fall of 2000 and as a result approximately one third of the mature black

spruce was blown down making travel across the claim group extremely difficult.

Vegetation consists of typical boreal forest cover, with mixed spruce, jack pine

and balsam. Lower areas are characterized by alders, mountain maple and

labrador tea. Sand, gravel and water are readily available in the immediate area.

Temperatures range from highs of 35° C in summer to lows of -40oC in winter,

with snow cover between November and May.

Regional Geology

The property is located within the central portion of the English River sub-

Province of the Superior structural province of the Canadian Shield. The English River

sub province is a linear. 800 kilometers long by 50 kilometers wide, east-west trending

structural belt comprised predominantly of highly metamorphosed and migmatized

clastic metasedimentary and plutonic rocks. On a local scale, the property is underlain

by granite, granitic gneisses and migmatized metasedimentary rocks that have been

intruded by a mafic to ultramafic intrusive.

Property Geology

The property hosts a two-phase, mafic to ultramafic intrusive at least 350 meters by 800

meters in size. and bearing disseminated and net-textured copper-nickel-cobalt­

platinum-palladium-sulphide mineralization. The intrusion was described as a

mineralized gabbroic core surrounded by an outer zone of mineralized hornblendite

(Spence 1999), suggesting that the intrusion is layered. Previous work on this property

has returned values up to 6396 ppm copper, 8060 ppm nickel, 200 ppm cobalt, 668 ppb

palladium, 625 ppb platinum, 21 ppb gold, 2 ppm silver and 1564 ppm chromium

(Spence 1999).

5

Canadian Prospector Inc. Property Location Map

Sim Lake Area _ 200.8. __ _ . __ _ _

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Fi ure 2

Exploration History

A review of the assessment files in the Thunder Bay District Geologist's office

indicates that the Sim Lake property has seen little exploration activity in the past; most

work has been performed by claim holders Doug Thibault and Basil Smith.

They have completed a number OPAP funded prospecting programs. The

exploration that has been conducted on the property is summarized below:

1960: The Ontario Department of Mines flew a regional airborne

magnetometer survey over the area comprising the Sim Lake

property. The data was published as Geophysics Paper No. 962.

1969: Thurston et al carried out geological mapping and

compilation for the Ontario Department of Mines as part of

Operation Fort Hope, the results of which are published on two

maps as follows: preliminary map No. P564, The Attwood - Caribou

Lake Sheet, 1"=2 miles, and, Geological Map No. 2237, Fort Hope­

Lansdowne House Sheet, 1"=4 miles.

1971: Addicks Canadian Properties Inc. completed line cutting and

a ground magnetic survey over the central portion of claim TB

1231961 on the west shore of Sim Lake. The survey clearly

outlined the surface dimensions of a small mafic intrusive body as a

magnetic high, presumably caused by disseminated pyrrhotite

and/or magnetite. At this time prospector, W. Miron did some

trenching and sampling over a mafic intrusive defined by the

survey. It was then known as the Sim Lake nickel prospect. The

follow-up report mentions the existence of several trenches

containing disseminated chalcopyrite and nickeliferous pyrrhotite

however no assays were reported (Poulsen, K.N., 1971).

7

Exploration History A review of the assessment files in the Thunder Bay District Geologist's office

indicates that the Sim Lake property has seen little exploration activity in the past; most

work has been performed by claim holders Doug Thibault and Basil Smith.

They have completed a number OPAP funded prospecting programs. The

exploration that has been conducted on the property is summarized below:

1960: Thle Ontario Department of Mines flew a regional airborne

magnetometer survey over the area comprising the Sim Lake

property. The data was published as Geophysics Paper No. 962.

1969: Thurston et al carried out geological mapping and

compilation for the Ontario Department of Mines as part of

Operation Fort Hope, the results of which are published on two

maps as follows: preliminary map No. P564, The Attwood - Caribou

Lake Sheet, 1"=2 miles, and, Geological Map No. 2237, Fort Hope­

Lansdowne House Sheet, 1"=4 miles.

1971: Addicks Canadian Properties Inc. completed line cutting and

a ground magnetic survey over the central portion of claim TB

1231961 on the west shore of Sim Lake. The survey clearly

outlined the surface dimensions of a small mafic intrusive body as a

magnetic high, presumably caused by disseminated pyrrhotite

and/or magnetite. At this time prospector, W. Miron did some

trenching and sampling over a mafic intrusive defined by the

survey. It was then known as the Sim Lake nickel prospect. The

follow-up report mentions the existence of several trenches

containing disseminated chalcopyrite and nickeliferous pyrrhotite

however no assays were reported (Poulsen, K.N., 1971).

7

1995: Ian Campbell completed a property visit for Golden Trump

ResourcE~s Inc. to the Smith-Thibault claims. The property visit

included sampling of the known sulfide mineralization on claim TB

1209555 (now TB 1231961). His field examination revealed the

presence of sample tags and several claim posts indicating

previous unreported exploration.

1997: The 1997 OPAP program on the Smith-Thibault property

consisted of line cutting (15.8 kilometers), geophysics (magnetic

and VLF-EM) and prospecting. The prospecting work was

completed in two phases, between July 8th and 12th and August 3011/1

to September 13th 1997. All the work was completed on claims TB

1217101 and TB 1217103. The main nickel- copper showing was

not acquired until the fall of 1997 after the prospecting program was

completed.

1998: The 1998 OPAP exploration program focused on the newly acquired

claim TB1231961 that covers the main copper-nickel showing. The work

consisted of 17 kilometers of line-cutting, 16 kilometers of magnetic and

VLF-EM surveys and 25 man days of prospecting, stripping and blasting.

The VLF-EM geophysical survey outlined numerous anomalies that may

reflect sulfide mineralization. The magnetic survey delineated magnetic

anomalies within the gabbroic units. The sampling of the blasted areas

resulted in anomalous copper, nickel, palladium and platinum assay

results. The best assay values came from samples taken within the

original site of known sulfide mineralization. The best results were 3318

ppm Copper, 2332 ppm Nickel, 56 ppb Palladium and 30 ppb Platinum.

1999: The 1999 OPAP program on the Smith-Thibault property included

detailed prospecting. stripping. blasting and geological mapping on the

existing Sim Lake grid (claim TB 1231961 of the Smith-Thibault property)

8

and prospecting of strong magnetic anomalies (Faircloth Lake and

northeas1t arm of Sim Lake). The program was successful in expanding the

interpreted size of the mafic-ultramafic intrusive to greater than 800 meters

in length and a width of 300 meters. The intrusion was described as

having a mineralized gabbroic core surrounded by an outer zone of

mineralized hornblendite (Spence 1999), suggesting that the intrusion is

layered. The work also located new disseminated and net-textured

copper-nlickel-cobalt-platinum-palladium-gold sulphide mineralization. The

best assay value from the 1999 sampling was 6396 ppm copper, 8060

ppm nickel, 200 ppm cobalt, 668 ppb palladium, 21 ppb gold, 625 ppb

platinum, 2 ppm silver and 1564 ppm chromium (employing the

geochemical mass fire assay). Other samples assayed as high as 1.95%

Nickel and 1.72% Copper.

2001: Operation Treasure Hunt, a program of geoscientific surveys

conducted by the Ontario Geological Survey, released a lake sediment

geochemical survey of the Fort Hope area conducted in August 2000. The

survey results in the Sim Lake area contained "elevated to highly

anomalous values of nickel and copper" and other elements. The report

ranks the Sim Lake area as #2 in the Fort Hope survey area, noting,

"anomalies are loosely ranked by size and magnitude".

2002: In the fall of 2002, the property owners (Mr. Thibault and Mr. Smith)

contracted Ian Spence (geologist) to collect a number of samples from

their Sim Lake Property in order to complete a petrographic assessment of

the rocks .. The objective of the work was to determine any microscopic

variances between mineralized gabbros and barren gabbros in the vicinity

of the main showing. The thin section work was beneficial in determining

the degrees of alteration and mineralogical zonation that has occurred

within the intrusion. The relatively fresh center of the intrusion has not

been subjected to the same degree of alteration as the margins of the

9

intrusion. The more melanocratic rocks exhibit a higher degree of

alteration however; location within the intrusive body appears to be the

major factor controlling the intensity of the alteration. With respect to rock

identification and classification, the pyroxenite field name was determined

to be hornblendite and the overall mineralogical classification of the

intrusive is best described as a hornblende gabbro (Spence 2002).

2003: Operation Treasure Hunt, a program of geoscientific surveys

conducted by the Ontario Geological Survey completed a regional

airborne magnetic survey over a large area, which included the present

claim block.

2004: Prospectors D. Thibault and B. Smith cut 7.4 kilometers of grid lines,

on 50 meter centers, over the two mafic intrusions on the property. A

proton magnetometer survey was completed over the grid to further define

the boundaries of the intrusives. Readings were taken at 12.5 meter

intervals. The magnetic survey confirmed a second intrusive to the west

and defined the dip of the main intrusive to the south. In addition the

survey outlined a narrow corridor between the two intrusives where Inco

sampling had previously obtained values greater than 1 % nickel. A

program of manual stripping was also conducted in the vicinity of the main

showing. The stripping revealed layering within the main intrusive and

uncovered disseminated copper and nickel mineralization.

2006: Ian Spence et. al. completed a series of 10 channel samples on the North

Showing (Line 3+00W I 0+ 75N) and the South Showing (Line 3+00W 10+255). A total

of 37 samples were taken with an average length of one (1) meter per sample.

10

Trenching Program

A camp was established by a river on the Wintering Road approximately 11 kilometers

west of the property and eight kilometers north from the main east - west logging road ..

Camp equipment and supplies were brought up along the logging road via Y2 ton and a

large cube van.

The trenching program was conducted using a Komatsu 365 Excavator owned and

operated by Danny Mado Trucking Ltd. of Thunder Bay. The excavator was floated to

within eight kilometers of the property where a old logging road was revived to gain

access to the showing. The trenched area was then washed using a Wajax Mark 3 fire

pump and brought on site by two A TV Quad vehicles.

Discussion

The trenching program revealed a number of interesting new mineralized zones and

confirmed the ground magnetic highs located on the pluton.

The lower lobe is due to a mineralized melanogabbro with Y2 - local 2% sulphides.

(pyrite, chalcopyrite, pentlandite).

The middle lobe is associated with a mineralized gabbro where the original showing is

located. This unit does contain significant rust and is likely the best section of

mineralization of the pluton.

The most northerly magnetic lobe could not be accessed due to bog but is likely due to

a mineralized melanogabbro unit.

The trenc:hed area was found to be irregular and deformed. Two major units are present

within the! pluton, gabbro and melanogabbro with a minor hornblendite phase. All of

these units have been intruded by felsic intrusives which run through the units at various

angles. Some of the contacts between the gabbro and melanogabbro are sharp while

11

others a re sheared with pegmatitic gabbro in filling the shears. Some small pods of

gabbroic pegmatite occur in the gabbro likely as a final phase crystallization. The

gabbro does display a banding in the vicinity of line 3+00 W I 0+75 N. This banding

seems tOi have been warped by the melanogabbro which likely post gabbro

emplacement. There is a shear zone which separate the lower and middle magnetic

anomalieis. This shear zone has been filled with a number of gabbroic pegmatites that

network along its strike length. The lower contact with the sedimentary gneiss is

reasonable sharp with the usual disruption between the two units. The dips on the

sediments are to the south which would support the magnetic signature displayed to the

south of the pluton. Literally all of the gabbros exposed contain some degree of

disseminated sulphides (pyrite, chalcopyrite and pentlandite) so trying to put an

subjective spin on mineralization at this stage over the whole pluton is difficult.

The trenching did offer some insight into the spatial relationships between the gabbros

and the rnelanogabbro. Mineralization seems to be more prevalent on the north of the

pluton with the lateral extent of the pluton still unknown at this time.

Conclusions

The Sim Lake property host's significant copper-nickel-cobalt-platinum-pa"adium-gold

mineralization within a gabbroic to hornblendite complex that has intruded granite

migmatites and gneissic rocks. Chalcopyrite. pyrrhotite, pentlandite, and pyrite

mineralization occurs primarily as disseminated sulphides. Semi-massive lenses of

sulphide mineralization occur within a deformed gabbro {Spence, 1999}.

Reconlmendations

It is recommended that a series of channel samples be cut across the exposed pluton in

order to better assess the best host for the mineralization.

12

Statement of Qualifications

I, William Ian Spence, P.Geo. (Pending), do hereby certify that:

1. I c:lm currently a self-employed consulting geologist working out of Thunder Bay, Ontario.

2. I graduated with a degree of Bachelor of Science from the University of New Brunswick, Fredericton, New Brunswick.

3. I am a currently applying for membership of the A.P.G.O. (#0303).

4. I have worked as a geologist for a total of 33 years since my graduation from university.

5. I have authored and reviewed the entire body of the technical report titled "Sim Lake Property Trenching Report 2008" and dated July 18, 2008. I have visited the property a number of times since 1999.

6. I am not aware of any material fact or material change with respect to the subject matter of the Report that is not reflected in the Report, the omission to disclose wlhich makes the Technical Report misleading. I

Dated this 18th day of July, 2008

,. ~~ i lie:: -~

I. ,/ ;./f.--~~ ~l ~ Ian SPy·_" Bsc. Geology

13

Appendix A

Personnel and Dates of Work

14

Personnel and Dates of Work

Ian Spence 8 Days 2180 Falconcrest Drive Thunder Bay, Ontario P7J 1H5

Doug Thibeault 3 Days 304 Regina Ave. Thunder Bay, Ontario P6E 1M5

Dave Kaylik 2 Days 110 Hazelwood Drive Thunder Bay, Ontario P7G 1Y4

Charles Anderson 23 Days 2;' Third Street P.O. Box 604 Nipigon, Ontario

Linda Hnrasym 23 Days 2;' Third Street P.O. Box 604 Nipigon, Ontario

Jonathan Harasym 18 Days 110 Hazelwood Drive Thunder Bay, Ontario P7G 1Y4

Ashley Harysum 10 Days 27 Third Street P.O. Box 604 Nipigon, Ontario

Jay Shields 11 Days 110 Hazelwood Drive Thunder Bay, Ontario P7G1Y4

Total Man Days on Project

15

June 25, 2008 July 10 - 13,2008

June 25, 2008 July 5, 10, 2008

June 27,2008 July 5,2008

June 21 - July 13. 2008

June 21 - July 13, 2008

June 26 - July 13. 2008

July 1 -10, 2008

June 26 - July 5, 2008

96 Man Days

Danny Mado Trucking Ltd. (Excavator) 230 Trowbridge Road Thunder Bay, Ontario P7B6B3

June 25 - July 13, 2008

16

Appendix B

Statement of Expenses for the Trenching Program

17

Statement of Expenses

Excavator $26,122

Mob and Demob $1,581

Fuel I Gas $2,221

Food $1,381

Rentals $3,465

Wages $18,180

Report and Maps $4,000

SURglies 131458

Total $62,008

18

Appendix C Photographs of Trenching

19

20

21

Doug Thibault 25-Jun-08 Camp Set Up

5-Jul-08 Trench supervision

10-Jul-08 Trench supervision

Dave Kaylik 27-Jun-08 Camp Setup

5-Jul-QS Washing and Trenching

Charles Anderson

2l-Jun-08 Travel to Camp

22-Jun-08 Camp Setup

23-Jun-08 Camp Setup

24-Jun-08 Camp Setup

25-Jun-08 Road Construction

26-Jun-08 Road Construction

27-Jun-08 Road Construction

28-Jun-08 Trenching

29-Jun-08 Trenching

30-Jun-08 Trenching

i-Jul-08 Trenching

2-Jul-08 Trenching

3-Jul-OB Trenching

4-Jul-08 Trenching

5-Jul-OB Trenching

6-Jul-08 Weathered out

7-Jul-08 Trenching

8-Jul-08 Trenching

9-Jul-08 Trenching

1O-Jul-08 Trenching

ll-Jul-OB Trenching

12-Jul-08 Trenching

13-Jul-08 Breaking camp

Linda Harasym 21-Jun-08 Travel to Camp

22-Jun-08 Camp Setup

23-Jun-08 Camp Setup

24-Jun-08 Camp Setup

2S-Jun-08 Road Construction

26-Jun-OB Road Construction

27-Jun-08 Road Construction

28-Jun-08 Trenching

29-Jun-08 Trenching

30-Jun-08 Trenching

i-Jul-OB Trenching

2-Jul-08 Trenching

3-Jul-08 Trenching

4-Jul-08 Trenching

S-Jul-08 Trenching

6-Jul-08 Weathered out

7-Jul-08 Trenching

8-Jul-OS Trenching

9-Jul-08 Trenching

10-Jul-08 Trenching

ll-Jul-OS Trenching

12-Jul-08 Trenching

13-Jul-08 Breaking camp

Jonathan Harasym 26-Jun-08 Travel to Camp

27-Jun-08 Road Construction

28-Jun-08 Trenching

29-Jun-08 Trenching

30-Jun-OS Trenching

1-Jul-08 Trenching

2-Jul-08 Trenching

3-Jul-08 Trenching

4-Jul-08 Trenching

5-Jul-08 Trenching

6-Jul-08 Weathered out

7-Jul-OS Trenching

8-Jul-OS Trenching

9-Jul-08 Trenching

1O-Jul-08 Trenching

11-Jul-08 Trenching

l2-Jul-08 Trenching

13-Jul-08 Breaking camp

Ashley Harysum l-Jul-08 Travel to camp

2-Ju/-08 Trenching

3-Jul-08 Trenching

4-1ul-08 Trenching

5-Jul-08 Trenching

6-Jul-08 Weathered out

7-Jul-08 Trenching

8-Jul-08 Trenching

9-Ju/-08 Trenching

10-1ul-08 Went home

Jay Shields

26-Jun-08 Travel to Camp

27-Jun-08 Road Construction

28-Jun-08 Trenching

29-1un-08 Trenching

30-Jun-08 Trenching

l-Jul-08 Trenching

2-Jul-08 Trenching

3-1ul-08 Trenching

4-Jul-08 Trenching

• 5-Jul-08 Went Home

Danny Mado (Excavator Operator)

2S-Jun-08 Travel to Camp

26-Jun-08 Road Construction

27-Jun-08 Road Construction

28-Jun-08 Trenching

29-Jun-08 Trenching

30-Jun-08 Trenching

i-Jul-08 Trenching

2-Jul-OB Trenching

3-Jul-OB Trenching

4-Jul-OB Trenching

5-Jul-OB Trenching

6-Jul-OB Trenching

7-Jul-OB Trenching

8-Jul-OB Trenching

9-Jul-OB Trenching

lO-Jul-OB Trenching

ll-JuJ-OB Trenching

12-Jul-OB Trenching

13-Jul-08 Breaking camp

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Sim Lake Property Doug Thibault & Basil Smith

Cu-Ni-Co-PGE Prospect

Claim # 1231961

Scale Bar

I I I I I o 100 200 300 400