41I16NW2007 2.18404 SHEPPARD 010

Report on Geophysical Work

MIRAGE PROPERTYSheppard Township

NTS: 41-1/15 and 41-1/16Project # 6249

for FALCONBRIDGE LIMITED

RECEIVED

AUG 10 1398

i GEOSCOCF ASSESSMENT f

August 1998 Kevin Stevens

41I16NW2007 2.16404 SHEPPARD

TABLE OF CONTENTS

010C

Summary and Recommendations

Introduction ...................................

General Geology ...........................

Previous Work ..............................

Survey Description .......................

Survey Results ..............................

Certification ..................................

Summary of Expenditures.............

l

l

1

2

2

3

4

l. Summary of Previous Work

List of Tables

List of Figures

1. Location/Geological Map (regional).............................

2. Claim Map, MT sites, Sheppard Township..................

3. 1995 MT sites (induction vectors), Sites 97-1 to 97-4.

4. Apparent Resistivity/Phase Data, Sites 97-1 to 97-4....

5. Site Map/ MT data/ Interpretation (Sheppard)..............

RECEIVED"

AUG t O 1998

GEOSCIENCE ASSESSMENT(J r ri C E

Appendices

1. Technical Specifications, V5 MT System.. 10

SUMMARY AND RECOMMENDATIONS

A series of four Magnetotelluiric soundings were completed over the Mirage Property (south Sheppard Township) in November 1997.

The results of the work showed a conductive feature at approximately 1km depth between sites 95-15 and 97-3 with a SW to NE apparent strike. It has been recommended that the feature be further delineated with additional geophysics, to be followed-up with testing by diamond drilling where the conductor shows the highest conductivity and is closest to the surface within the property.

RECEIVED

AUG l G 1338

GEOSCIENCF '-' __ Of hot.'

INTRODUCTION

In November of 1997 Phoenix Geophysics Ltd. carried out Magnetotelluric (MT) geophysical soundings at 4 discrete sites on behalf of the Geological Survey of Canada (GSC) and Falconbridge Limited on part of the southern Sheppard Township claim block (Mirage property, figure 1). The purpose of this survey was to answer geoscientific questions for the GSC and locate conductors with potential for base metal mineralization for Falconbridge.

Claim blocks 1212212, 1212213, 1212214, 1212215, 1212216, 1212217,1212218, 1212219 and 1212220 consist of 113 claims staked in May, 1996 and are located in southern Sheppard Township contiguous with Falconbridge held claim blocks in the central/north Sheppard Township (see figure 2). It was accessed via the Kukagami Road off Highway 17, approximately 30km east of Sudbury, Ontario.

The survey was carried out November 11 to 14, 1997 by a 4 man crew lead by Damien Fox (Phoenix) and Jim Craven (GSC).

GENERAL GEOLOGY

This property is located within the Cobalt embayment and is underlain by Huronian Gowganda and Lorain Formations, Nipissing Diabase, olivine diabase (Sudbury Swarm) and Sudbury Breccia, (figure 1) It is on the western part of the Temagami magnetic anomaly that is centered 45 km northeast of Falconbridge. The source of the anomaly is attributed to magnetite - rich ultramafic mass, that may host Ni-Cu-PGE sulfides. The inferred igneous complex may include apophyses, in the form of dykes, that may have penetrated the overlying sediments to higher crustal levels.

PREVIOUS WORK

Table l summarizes the previous work which was carried out over or associated with this property in the past.

COMPANY NAME

Falconbridge LimitedFalconbridge/GSCFalconbridge/GSCFalcon brdige/GSC

YEAR

1990199119951997

TYPE OF WORK

GEOTEM EM/Mag.Vibroseis Seismic

MTEMMTEM

Notes DCrtc Ai

n\

GEOSC

pplV/c;

5 1 G 1C3S

NCE i-SESSi-

Table 1. Summary of previous work.

SURVEY DESCRIPTION

The MT survey was carried out south and west of site 15 of the 1995 MT survey by Phoenix Geophysics Ltd, Missisauga. Four MT sites were positioned around a previously identified conductor just south of AMT/MT site 15 in Sheppard Township (figure 3), 3 of which fall within our 1996 staked block (97-1, 97-3 and 97-4, see figure 2). The instrument used was the V5 MT system designed and manufactured by Phoenix Geophysics. Appendix l outlines the type, model and characteristics of the instrument. MT sites 97-1, 97-3, 97-4 were completed as follow-up assessment of the conductor south of 95-15 and 97-2 for purposes of qualifying the response from the other three.

The survey involves the discrete measurement of orthogonal components of the earth's magnetic and electric fields over a specified time window. These data are then used to estimate impedance as a function of frequency which in turn is used to estimate the apparent resistivity and phase as a function of frequency. Plots of these data for site 97-1, 97-3 and 97-4 are shown in figure 4. This information is then used to interpret the conductivity structure of the earth with increasing depth.

SURVEY RESULTS

The objective of the work was to attempt to isolate a conductor indicated from the 1995 MT survey. The induction vector is a graphical representation of the components of the magnetic transfer function that are estimated from the impedance data and can be used to indicate the direction to conductive features as a function of frequency. These arrows are shown on figures 3 and 4, at 10 Hz, and clearly indicate that the axis of a conductive feature exists south of site 95- 15 and north of site 97-3. The absence of vector on site 97-4 could indicate that this site lies directly overtop of the conductive feature which has an estimated apparent resistivity of 1000 ohm-m, and a depth of burial of 1km. It is estimated to strike approximately SW to NE but an estimate of its true physical dimensions is not possible from known data. It has been recommended that the feature be further delineated with additional geophysical work, to be followed-up with testing by diamond drilling where the conductor shows the highest conductivity and is closest to the surface within the property.

Kevin Stevens

RECEIVED

AUG 10 1383

GEOSCIENCF ASSESSMENTOFFICE

-Z

I, Kevin Stevens, certify that:

1) I received a B.Se. (Honours) in Geology, from Saint Mary's University in 1985.

2) I completed an Honours thesis in Geophysics at the University of Manitoba in 1992.

3) I am currently completing an M.Se in Geophysics at the University of Manitoba.

4) I have been practising my profession continuously since 1986.

5) I am presently employed by Falconbridge Limited as a Senior Geophysicist.

LO-

Kevin Stevens

RECEIVED

AUG 10 1098

GEOSCIENCF ASSESSMENTOfhUE

07/24/98 15:01 ©416 491 7378 PHOENIX GEOPHYS. -*-*-* F A.L/EXP/SUDBURY

Multipurpose Geophysical Receiver

"RECEIVED'•';":^sr^;^^^ ;? w J— 8-^

•"^•";^S^||||P|J|||p IjJJl AM^ t g 1333

Ultra-high performance

Ultra-cost effective

Unlimited possibilities

The most advanced geophysical receiver ever made

-l oGEOPHYSICS

or/24/98 15:02 491 7378 PHOENIX GEOPHYS. •*-- FAL/EXP/SUDBURY

ApplicationsThe multipurpose V-S receiver can be used for the following:

MTAMTCSAMT

TOIP PHASE IP FDIf

MagnetotelluricAudio MagnetotelluricsControlled Source Audio MagnetorelluricsScalar, Vector. Tensor --:Tlmo Domain Induced PolarizationPhase Induceii Polarizationfrequency Domain I

Customized data acquisition - V-S may be slaved to/controlled by PC, sending valid keypad command sequences through serial or parallel ports, or by downloading parameter tables.

Other applications will be announced os they become available.

SIP TDEM

FDEM RESISTIVITY

Spectral Induced Polarization Time Domain Electro-Magnetics FasTEM - windows 8 microsec to 300 microiec MulTEM - windows 8D microsec to SO millisftt: LowTEM - windows 0.25 millisec to 16 sec Frequency Domain Electro-Magndtics (SAMPO) Direct Current Resistivity Resistivity TOriiogruphy

Specifications

Number af channels

Dynamic input range Frequency range

Input impedance Signal path

Powerline filtering

Other filtering

Gain/DC offset

Calibration

Sensitivity

Processor/CPU board

Monitor firmware

CPU board memory

Additional memory

Serial I/O

Parallel I/O Timing

A-D conversion

ANALOG SECTIONl to 16

~ 10 voltsDC-130kHi. (1 tlunnel) DC-10 krte. (up to 16 channel-;) Customized configurations on requestApproximately 10 megohms at low frequencies Each dual analog board has separate high/low signal paths. Specialized analog boards available forTDEM and other functions.The signal path has an 11/71-notch. processor-tudable powerline filler for both eveiVodd hir'inoniuHigh/low pass filters; gain; offset adjustment, programmable anti-alias filters; all under processor controlAutomatic or manual control, range of 0.25 to 4096 Low t any t path has processor controlled DC offset control, range: i 5 vollsAutomatic self-calibration, under processor control, with built-in calibration/test signalsSufficient for stand alone controlled source applications; for natural signal applications (MT or AMT) Krwor processor unit(s) required.

DIGITAL SECTION32 bit processor and math coprocessor, programmable interrupt controller with 16 request lines. Multibus interface. DIN connectors, Separate coprocessor for keyboard and display. On board real time clock.Monitor firmware inurrdio lo National 32000 scries software development tools. Also provides run time environment, terminal handler, debugger execute module, floating point support module and interrupt handler,756 Kbyte static RAM * 512 Kbyte ROM or 512 Kbyte RAM f 64 Kbyte ROM,Max. 40Mb RAM * 1Mb EROM Optional expansion to 340 Mb of non-voiatile solid- state memory.Two RS-232 ports with programmable baud rates up lo 115 kbaud throughout.16 bit poi l with max. 0.5 MHz transfer rote. Internal crystal clock; processor controlled resetting for synchronized operation with other V-S's. Optional external precision clock input.16-bit resolution. 500 kHz conversion rate.

Weight Dimensions Case Connectors

Operating temperatureStorage temperatureHumidityShock and vibration

Signal Channel

Bailcry

Remote device status Precision clock signal

Analog metersDisplayAnalog

External isolated transmitter driveRemote device control

Keyboard Off/On/Ffcn Meter mode Meter band LCD contrast Battery test CPU Rosot

MECHANICAL *

Approx. 1J.O Kg

32 x 36 x 27 cm highResilient, touyli PVC compoundSide-mounted, allowing foul-weather operation with closed lid.

ENVIRONMENTAL

-10' C to 150" C (-20' C with LCD heater)

-SO' C lo :SO" CSplasbproof (may be operated in light precipitation.)Suitable for transport in bush vehicles.

BATTERY

Provision for external 12 v battery operation 12 v/55 Ah rechargeable battery will provide nominal 2-1 hrs. continuous operation at +20' C

INPUTS

Four mulci-pi'i connectors for up to T6 analog inputs. Each input may be internally rrroutcd for maximum flexibility in mapping input chonnels to signal processing channels (optional)Mulli-pin connector for external battery or charging an (optional) internal battery ® 12 V. approx, 1,2 A.Via special purpose opto-isolatod I/O link. Optional external precision clock or GPS clock input.

OUTPUTS

R analog meters, swit 40 char, x 8 lines I..CD 16 output fur signal etc. -5V range. Via special purpose iv

i se leo A2SG x (A dot graphics)

Via special purpose opto-isolated I/O link.

SWITCHES AND CONTROLS

Full ASCII keypad (waterproof)3 position rotary4 position rotary ACX10. AC, DC, PEAK 2 position rotary Hi/Lo meter selection Potentiometer 2 position toggle Push button

Note: Specifications subject (o ehange. Customized configurations are available.

PHOENIX GEOPHYSICS LIMITED3/81 Victoria Park Avenue. Unit 3. Scarborough, Ontario. Canada M1W3K5

07/24/98 15:02 S416 491 7378 PHOENIX GEOPHYS. FAL/EXP/SUDBURY

RECEIVED"!AUG i O

® Smart Sensor Processor

® Distributed Intelligence on Command

® Measurement of Natural Signals (MT/AMT)

GEOPHYSICS

07/24/98 15:04 ©416 491 7378 PHOENIX GEOPHYS. FAL/EXP/SUDBURY ilOOS

Specifications.

Channels

Input filters

Output filters

Low band path

High band path

Telluric input noise

Telluric preamp gain Post amp gain

Output

Lightning protection

Powerline filters

Monitoring

Max.: 2 telluric* H- S magnetics (DC-lOkHz) These may be configured for

S channels: 2 Telluric, 3 magnetic or 7 channels: 2 Telluric, 3 local magnetics

and Z "total lernoltT magnetics NOTE: SPV-2E model is configured for 2 telluric Inputs onlyThe Telluric channels have passive low-pass filters, low (10 Hz) medium (l kHz) or high (10 kH?)The output signals to the V-5 receiver have fixed 10 kHz low pass filters Low pass filler: 10 Hz, fixed corner High paw filter: DC or AC coupling

Telluric Channels: FC - 0.007 HzFC - 0,020 Hz (Optional)

Magnetic Channels: FC = O.OOS HzfC s 0.030 Hi (Optional)

DC - AC switch 'K, front panel or remote control High pass filter: 5 Hz. fixed corner Low pass filTer: 1000 Hz LP1 - - > 500 Hz

LP2--* 1000 Hz 10 kHz, LP1--5. 3kHZ

LP2-^ 10kHz Front panel or remote control16 nW/Hi 6 1 We. (equivalent input noise)12 nV//Hz 24 Hz to 10kHz

3 gain values with ratio of O clB. 6 dB or 12 dBGain ratio control for telluric channels: O or 10 dB Gain ratio control for magnetic channels: O or 20 dB Front pane! or remote controlIsolated, floating and lightning protected line drivers. Separate line drivers and connerrnrc ,v^ provided for thft high jnri low path. The low path output is switchable to high path for single cable output by front panel or remote control. Nearby lightning strikes cause current and voltage surges. The SPV-5 passes lightning-Induced current to the ground electrode via a fast-response bypass circuit which protects against almost anything but A direct strike.Two notch filters (min. 40 dB attenuation) for each channel (1st and 3rd harmonic). SO Hz and ISO Hz

or 60 Hz and 130 HzOptional: 5th and 7th harmonic filters can replace alternate choice of 1st and 3rd notch fillers. 50/60 Hi: selection is mode either via front panel or remote control.Elaborately equipped for local signal and powersupply monitoring.Two monitoring channel* arc provided with 3 meterriiodfi: AC, DC. and PEAK reading.The PEAK mode will show the peak reading of thespherics or background powcrlinc noise. The monitoroutputs are for display on an oscilloscope.

Remote control

Remote referen

Wuight Dimensions Case Connectors

Operating TemperatureStorage temperatureHumidityShock and vibration

The SPV-5 and SPV-2E incorporate sufficient intelligence {unrier rrmptc control of V-5 receiver) to sot and report the status of the most-used controls and filters. This permits the V-5 operator to adjust SPV-5 controls and mointor SPV-S status at the remote reference site, which may bfi as much -'is 3 km, distant from the v-s unit. The lime saving is significant.Coble-linked remote reference sites require an on-iiie processor such as SPV-5 with lino driver ciruitry. sufficient to drive the iensor outputs (after filtering) over as much as 3 km. to the central v-5 unit, Systems without such line driver circuitry cannot transmit the rertKite-refcreMtc signals over the cable link.

MECHANICALApprox. 9.5 kg: SPV-2E: 7 kg

32 * 36 x 27 uit highResilient, tough PVC compoundSide-mounted, allowing foul-wcethcr operation withclosed lid.

ENVIRONMENTAL-20'C to .fSO'C

•SO'C to +GOXiplashproof (may be operated In llqht precipitation)Suitable for transport in buih vehicles.

BATTERYProvision for external 12 v battery operation.12 V/30 Ah rechargeable battery will provide nominal24 hrs. continuous operation at *20'C

INPUT/OUTPUT

6 Magnetic chdnncb2 Telluric dipole channels1 Reference ground1 External battery input1 Channel for remote V-S control7 Channels for signal output2 Monitor outputs, capable of showing all meterfunctions, switch selectable.

""''•''•:-'-J::r''

Model SPV-2EFar high density MT/AMT soundings or continuous profiling.

PHOENIX GEOPHYSICS LIMITED3781 Victoria Park Avenue. Unit 3. Scarborough. Ontario, Canada M1W 3KSTelephone: W16) 495-7340 Fax: Mlfil #31-7373 Telex: 06-9afiR56 Cable: PHfvXCO-TORONTO

Mirage MT Sites - PN 249

m Grenville Province

li Sudbury Igneous Complex

^[1 Whitewater Group

^^| Nipissing Intrusives

•H Huronian Supergroup

. " j Archean Felsicluamttl Intrusives

Archean MetaVolcanics

' 1995 MT Sites * 1997 MT Sites

Mirage Claim AreaSheppard Township

i -W S\' O !1 M \H (f/l, J'.Px '-'' ,̂\ \^-- \H

\\ \ /i ' ( /'

Figure 2

c•-IO)OJ

Mirage 1997 MT Sites

Mirage 199jf MT Sites (1995) Mirage 1997 MT Sites (1997)

Real Arrow Reversed -10 Hz

" Estimate of conductor axis

RHFppAtmTTP ^\\

Apparent Resistivity tem-97-101a

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m

'v- s," ~*v*.

119-

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p-*.^

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•1-1-4

LOG Frequency (Hz

Phase tem-97-101a

M

4* -

PHASE AMGLE (DEC : i t ,

-1M-

-13*

———— -

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•^v

—— -

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411

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411

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LOG Frequency (H2)

Apparent Resistivity tem-97-103a

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—m o co/-}~;

30"m o

•3 -4

equency (Hz

S "

Phase tem-97-103a

7^

4

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1K t'!' 1 ; :',\

"* - ** **

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Apparent Resistivity tem-97-104a

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F

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LOG Frequency (Hz)

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Figure 2

inistry ofbrthern Development

and Mines

Report of Work Conducted After Recording Claim

Transaction Number

41I16NW2007 2.18404

he Mining Act. This information will be used for correspondence. Questions about Ministry of Northern Development and Mines, Fourth Floor, 159 Cedar Street,

SHEPPARD 900. .WSTO type or print ana submit in duplicate.

- Refer to the Mining Act and Regulations for requirements of filing assessment work or consult the Mining Recorder.

- A separate copy of this form must be completed for each Work Group. O 1 O 4 O- Technical reports and maps must accompany this form in duplicate. ^ * * ^- A sketch, showing the claims the work is assigned to, must accompany this form.

Recorded Holder(s)

FALCONBRIDGE LIMITEDAddress

SUITE 1200, 95 WELLINGTON ST.Mining Division

SUDBURYDates ,/ Work From: '' Performed NOVEMBER 1997

Township/Area

SHE

W., TORONTO, ONT

PPARD TWP.

Client No.

130679Telephone No.

(416) 956-5700M or G Plan No.

G-4104

TO: /y 7NOVEMBER 1997 *

Work Performed (Check One Work Group Only)Work Group

X Geotechnical Survey

Physical Work, Including Drilling

Rehabilitation

Other Authorized Work

Assays

Assignment from Reserve

Type

MAGNETOTELLURIC (MT) GEOPHYSICAL SURVEY

-. —— "' ' i

SECTION 18 ONLYRECORDtui

APR 2 * 1938 1

—— IHM0MML.! i " "*^

Total Assessment Work Claimed on the Attached Statement of Costs S 39 , 306 .1 8

Note: The Minister may reject for assessment work credit all or part of the assessment work submitted if the recorded holder cannot verify expenditures claimed in the statement of costs within 30 days of a request for verification.

Persons and Survey Company Who Performed the Work (Give Name and Address of Author of Report)Name

PHOEN IX GEOPHYSICS LTD.

KEVIN STEVENS

Address

3781

M1

P.

W

0.

VICTOR

3K5

BOX 40

PHONE (

IA PARK

PHONE (\

, FALCON

AVE

41

BR

705) 693-2

6

I

. , UN

) 491

DGE,

751 EX

IT 3,

-7378

POM

T 355

SCARBOROUGH

1SO

S(attach a schedule If necessary)

Certification of Beneficial Interest * See Note No. 1 on reverse side

\ certify that at the time the work was performed, the claims covered in this work report were recorded in the current holder's name or held under a beneficial interest by the current recorded holder.

Date

04/21/98

Certification of Work Report

Recorded Holder or Agent (Signature)

r

1 certify that 1 have a personal knowledge of the facts set forth in this Work report, havina oerformed the work or witnessed same during and/or after its completion and annexed report is true.

Name and Address of Pereon Certifying

ROGER Y. POULIN, P.O. BOX 40, FALCONBRIDGE, ONT POM 1 SOTelepone No.

705-693-2761

Date

04/27/98

Certified By (Signature) S\

/T *-^f*^ ̂ /cit*^^

For Office Use OnlyTotal Value Cr. Recorded Date Recorded

Deemed Approval Date

CuJta 2^/46

Mining Recorder

Date Approved

Dfit^ Not^ejor Amendments Sent

Received .Stamp . ^

RECEIVER"APR 1 4 1998 g- ^

GEOSCIENCE ASSESSMENT OFFICJ^

\ -

0241 (03/91)

5:46 FAX 416 956 5749 FALCONBRIDGE LIMITED 12)002

are claiming in this report may ba cut back. In order to minimize the adverse effects of such deletions, please indicate from s you wish to priorize me deletion of credits. Please mark (^) one of the following: ~~ss p* i^ t 11 j r V*\ ~~

tits are to ba cut back starting with the claim listed last, working backwards. *i C W C l V CI L/01Jits are lo be cut back equally over all claims contained in this report of work. TV j

A DD T L lono " 'V jits are to be cut back as priorized on the attached appendix.

that you have not specified your choice of priority, option one will bs implemented

APR l k 1998GEOSCIENCE ASSESSMENT

nples of beneficial interest are unrecorded transfers, option agreements, memorandum of agreements, etc., with respect e mining claims. 3

^ has bean performed on patented or leased land, please complete the following:

tie recorded holder had t beneficial interest In tha patented J u tha Um* the work wax perlormad.

Signaiura Dat*

Ontario

Ministry ofNorthern Developmentand Mines

Minieleredu Devetoppement du Nord

Statement of Costs for Assessment Credit

ittat des couts aux fins du credit devaluation

Mining Act/Lol *ur les mines

Transaction NoJH' dt transaction

Personal information collacted on this term is obtained under the authority of the Mining Act This information wil b* used lo maintain t record and ongoing status of the mining claim(s). Questions about this coleclion should be directed lo the Provincial Manager. Minings Lands, Ministry of Northern Development and Mines, 4th Floor, 15* Cedar Street. Sudbury. Ontario P3E 6A5. telephone (70S) 670-7264.

2 . 18404La renseignements personnels conlenus dans la presenle tornote sont recueillis en vertu de la Lot sur lee mines et serviront l (emr a jour un regisire des concessions minieres. Adresser loute question sur la collece de ces renseignemenu au chef provincial des terrains miniers. mMstere du Developpement du Nord et des Mines. 158. rue Cedar, 4* etage. Sudbury (Ontario) P3E 6AS. telephone (705) 670-7264.

1. Direct CostsVCouts direct*

RECEIVE!:^.TjjAPR 2* 1SS8GEOSCIENCE ASSESSM

Type

WegeeSalalrea

Contractor's and Consultant's Fees Oroltade ('entrepreneur et de Cexpert- consell

Sun FourUtllil

)

Equl Rent Locitw*

)flesUsed nrtures 4es

flWflt

1 Ion de tot

Description

Labour Main-d'oeuvreField Supervision Supervision sur Is terrain

ffi SURVEY 2

2SC COST

SOFTWARE

Type

Amount Monumt

i

1 ,3254,556

5,000

8,424

Total Direct Costs Total des couts directs

Totals Total global

.00

.43

.00

.75

39.30

2. Indirect Costs/Couts Indirect*

* * Note: When claiming Rehabilitation work Indirect costs are not allowable as assessment work.Pour le remboursemenl des travaux de rehabilitation, les couts indirects ne son! pas admissibles en tant qua travaux d'evaluation.

Type

Transportation Transport

rood and Lodging Nourrtture *t hebargememMoMNutlon and Demobilization Mobilisation et demobilisation

Description

Typ.

Amount Montant

Sub Total of Indirect Cost* Total partiel des couts Indirect*

Amount Allowable (not greater than 20* of Direct Costs) Moment admissible (n'excedant pas M H dee coots directs)Total Value of Assessment Credit Vsleur totslt du credit Ifatu (X Mract snd AMowabM devaluation iMMet CMUI from *H coon eVKtt

Totals Total global

Note: The recorded holder win be required lo verify expenditures claimed In this statement of costs wHhin 30 day* of a request tor verification. If verification is not made, the Minister may reject tor assessment work all or part of the assessment work submitted.

Not*: L* titulaire enregistrt sera tenu de verifier les depenses demandees dans le present etat des couts dans les 30 jours suivani une de mande a eel eftei. Si la verification n'est pas eftectuee.' le ministre peut rejeter lout ou une partie des travaux devaluation presentes.

Filing Discounts

1. Work filed within two years ol completion is claimed at 100* of the above Total Value of Assessment Credit.

2. Work filed three, four or five years alter completion is claimed at SOAt of the above Total Value of Assessment Credit. See calculations below:

Total Value of Assessment Credit Total Atseitmenl Claimed

x 0.50 -

Remises pour depot

1. Les travaux deposes dans le* deux arts suivant tour echevemern sont rernt*xjrsesa100^*lavsJeurkXitasusrnernKxineeouCTe*a'*v*luata^

2. Les travaux deposes trois, quatre OH cinq arts apres tour achevemsnt sont rembourses a SO H de to valeur lotale du credit devaluation susmentionne. Voir tos calculi d-dessous.

Valeur touue du credi d evaluationx 0,50

Evaluation totale demsnoee

Certification Verifying Statement of Cost*

l hereby certify:thai the amounts shown are as accurate as possible end these costs were incurred while conducting assessment work on the lands shown on the accompanying Report of Work form.

that as P/^OTe^r- t^go/of/(TUconnd HoWer. Agent. Portion in Company)

to make this certification

Attestation de l'etat de* coOt*

J'atteste par la presents :que les moniants indiques sont le plus exact possible et que ces depenses on! ete engagees pour effectuer les travaux d'evaluation sur tes terrains indiques dans la for mule de rapport de travail cHoinL

Et qu'a litre de Je suis aulorise(tkuim enngiiir*. nprtsenunt. POM* oceup4 amt li eompsoiMl

a faire cette attestation.

deiWneoWipwxxuMi. l* mucuUi nt ut*** *u **n*

M-7

Ministry of Ministers duNorthern Development Developpement du Nordand Mines et des Mines Ontario

Geoscience Assessment Office 933 Ramsey Lake Road

September 22, 1998 6th FloorSudbury, Ontario

FALCONBRIDGE LIMITED P3E 6B5SUITE 1200, 95 WELLINGTON STREET WESTTORONTO, ONTARIO Telephone: (888) 415-9846M5J-2V4 Fax: (877)670-1555

Visit our website at: www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

Dear Sir or Madam: Submission Number: 2.18404

Status Subject: Transaction Number(s): W9870.00070 Approval After Notice

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact Lucille Jerome by e-mail at jeromel2@epo.gov.on.ea or by telephone at (705) 670-5858.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 12827

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2.18404

Date Correspondence Sent: September 22, 1998____________________Assessor: Lucille Jerome^^^^^^^^^^

Transaction First ClaimNumber Number Township(s)/Area(s) Status Approval Date

W9870.00070 1212213 SHEPPARD Approval After Notice September 01, 1998

Section:18 Other DATA

Assessment work credit has been approved as outlined on the attached Distribution of Assessment Work Credit sheet.

Correspondence to: Recorded Holder(s) and/or Agent(s):

Resident Geologist Roger PoulinSudbury, ON FALCONBRIDGE, ONTARIO, CANADA

Assessment Files Library FALCONBRIDGE LIMITED Sudbury, ON TORONTO, ONTARIO

Page: 1Correspondence ID: 12827

Distribution of Assessment Work Credit

The following credit distribution reflects the value of assessment work performed on the mining land(s).

Date: September 22, 1998

Submission Number: 2.18404

Transaction Number: W9870.00070

Claim Number Value Of Work Performed

1212213 10,293.00

1212216 10,293.001212219 10,295.00

Total: * 30,881.00

Page: l

Correspondence ID: 12827

IN aOMOE APWL 27.1909

tTUMUON MIVER PMOVH4CIAL PARK ONTAMO MIULAT1ON NO.tM/**

HAY t, lift SCHEDULE NO.110

ONTARIO REGULATION NO.tN/Vt

MAY 9. )M* kCHEDULE tf 0

MinistryNorthern Developmentand Mines

Mnistry ofNaturalResources

LARY TOWNSHIPINDEX TO LAND DISPOSITION

PUN

G-4I04TOWNSHIP

SUDBURY -MINING DIVISION

UDBUR

SHEPPARD SUDBURY

Seal* 1:20 000

Contour lnt*rvsi 10

r w,

DISPOSITIONAREAS WITMflO- SRO-

M+S - Mining and Surface Rights

SYMBOLSBoundary

Township, Meridian, Basefine

Road allowance; surveyed shoreline

Lot/Concession; surveyedunsurveyed

Parcel; surveyedunsurveyert

, road r? : :*ay

utility.

Reservation

Cliff, Pit, Pile

Contour 'nterpolated Approximate Depression.

Control point (horizontal)

Flooded !and........ -..

Mine K" .j irame

Pipeline (above ground)

Railway; single track double track abandoned

Road; highway, county, township .........i"' "'S , . - . . . . . . . . . . . . . . . . . . .

tra: t'

^ .e' :(,:-f31r -t)

T: ani; nission ,in: .

OVABIKA RIVER PROVINCIAL l*ARK

ut cnhr WI/H NEOnMED ky *r*r

0-ML 01/90 NEK *ffWNw Aprl 3J9ftO *t 7.00 AM EAT.

'//^^ \ \//iV ^ \ /;5i

-Q C /l

JUN221998

12^81.^^.

OBABIKA RIVER PRO VINCI A , PARKONTARIO REGULATION NOJZSG/aa SCHEDULE .NOTE - THE LIMITS OF THE PARK ARE POSITION ZOOMETERS M PERPENDICULAR DISTANCE FROM THE HIGHWATER MARK UNLESS OTHERWISE STATED ON THE SCHEDULE.

STURGEON RIVER PROVINCIAL PARKONTARIO REGULATION NO-256/89 SCHEDULE NO.23O.NOTE - THE iJMITS OF THE PARK ARE POSITION ZOOMETERS M PERPENDICULAR DISTANCE FROM THE HIGHWATER MARK UNLESS OTHERWISE STATED ON THE SCHEDULE.

DISPOSITION OF CROWN LANDS

^-t^i PatentSurface A M'rtirt- n"

Surface Rights Only Mining Rights Only . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .G1

LeaseSurface 4 Mining Rights . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .BSurface Rights Only . . . . . . . . . . . . . . . . . .Mining Rights Only

Licence of Occupation . . .

Order-in-Council. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .OC

Cancelled

Reservatio'. , . . . . . . , , - . . . . . . . . . . . . . . . . , . . . . . . . . . . . . . . . . . . . . . . . w

w

X/ /f :,\^-_x f ' i y.-

THE INFORMATION THAT APPEARS ON THIS MAP HA.S BEEN COMPILED FROM VARIOUS SOURCES, AND ACCURACY IS NOT GUARANTEED. THOSE WISHING TO STAKE MIN ING CLAIMS SHOULD CON SULT WITH THE MINING RECORDER, MINISTRY OF NORTHERN DEVELOP MENT AND MINES. FOR AD DITIONAL INFORMATION ON THE STATUS OF THE LANDS SHOWN HEREON

t Ar

Map base and land disposition drafting by Surve Branch, Ministry of Natural Resources.

ion of land, location "i! ifaJVicanci parcel t"- this index as compiled fpfadminib.fative purposesoniy.

- on

U)

oT) O

:^.5

41I1SMW2007 2.18404 SHEPPARD 200

Mirage 1997 MT Sites Sheppard Township

Mirage 1 997 MT Sites (1997)

Induction ArrowsReal Arrow Reversed - 1 0 Hz

X Estimate of conductor axis

Dam

-

7-341I16NW2007 2.18404 SHEPPARD

210