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2.14321 NORWAY LAKE010

SANDE-STEWART PROPERTYATIKOKAN, ONTARIO

NTS 528/12,13

1990 EXPLORATION PROGRAM

JANICE FINGLER JANUARY 17, 1991

TABLE8.14321 NORWAY LAKE 010C

SUMMARY

LOCATION AND ACCESS

CLAIMS

PREVIOUS STUDY

EXPLORATION HISTORY

REGIONAL GEOLOGYRegional Gold Mineralization

PROPERTY GEOLOGY lithologies Structure Gold Occurrences

1990 EXPLORATION PROGRAM

RESULTSReconnaissance Program WestSawbill East SawbilJ

j£> East Sawbfll Extension Hawk Bay Lynxhead WestLynxhead Lynxhead Occurrence Trap Bay Broken Leg Bay

CONCLUSIONS

RECOMMENDATIONS

REFERENCES

CERTIFICATION

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FIGURES AND TABLES

FIGURE 1 General Location Map

FIGURE 2 Claim Map 1:20,000

FIGURES General Geology 1:50,000

FIGURE 3a Location of Gold Occurrences in the Atikokan Area

FIGURE 4 Property General Geology 1:50,000

FIGURE 5 Map Index 1:50,000

FIGURE 6a Reconnaissance Survey Area A 1:10,000

FIGURE 6b Reconnaissance Survey Area B 1:10,000

FIGURE 6c Reconnaissance Survey Area C 1:10,000

TABLE 1 Lithologies Observed on the Sande-Stewart Property

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APPENDICES

APPENDK 1 Expenditures

APPENDK 2 Rock Sample Descriptions

APPENDIX 3 Humus Sample Descriptions

APPENDIX 4 Assay Results

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MAPS

MAP 1 West Sawbill Grid, Geology 1:5000

MAP la West Sawbill Grid, Sample Results 1:5000

MAP 2a East Sawbill Grid, Sample Results 1:5000

MAP 3 East Sawbill Extension, Geology 1:5000

MAP 3a East Sawbill Extension, Sample Results 1:5000

MAP 4 Hawk Bay Grid, Geology 1:5000

MAP 4a Hawk Bay Grid, Sample Results 1:5000

MAP 5 Lynxhead Grid, Geology 1:1000

MAP 5a Lynxhead Grid, Sample Results 1:1000

MAP 6 West Lynxhead Grid, Geology 1:1000

MAP 6a West Lynxhead Grid, Sample Results 1:1000

MAP 7a Lynxhead Occurrences, Geology & Sample Results 1:1000

MAP 8a Trap Bay Grid, Geology & Sample Results 1:250

MAP 9 Broken Leg Bay Grid, Geology 1:1000

MAP 9a Broken Leg Bay Grid, Sample Results 1:1000

MAP 10 Line 24 - Detailed Grid, Geology 1:100

MAP lOa Line 24 - Detailed Grid, Sample Results 1:2500

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SUMMARY

The Sande-Stewart property consists of 685 contiguous claims located approximately 40 kilometres northeast of Atikokan, Ontario. The property is underlain by a part of the Wabigoon structural subprovince consisting of the western portion of the Marmion Lake Granitic Complex bordered by the Finlayson Lake and Lumby Lake greenstone belts.

The area hosts numerous historical small, high grade gold occurrences, including the recently discovered of the Sande-Stewart and SS2 occurrences. Several styles of quartz veining are common to the property; gold values are most consistently associated with late tectonic quartz veins emplaced into late northeast trending structures. Additionally, anomalous gold values are associated with late stage silicification localized along premineral east-west shear planes adjacent to a tectonic breccia zone at the Sande-Stewart occurrence.

The 1990 exploration program consisted of definition of characteristics of the occurrences with detailed mapping, evaluation of anomalous gold trends from the preliminary Ovalbay humus survey, reconnaissance mapping and prospecting, and detailed humus sampling and mapping of areas surrounding known occurrences. Excellent outcrop exposure ensured good coverage of much of the property.

The investigations identified an apparent association of elevated gold values to late tectonic quartz veins and silicification. The host structures are typically northeast and east- west trending shear zones. The ductility contrast between premineral mafic dykes and the host intrusive rocks provides a preferred site for many of these structures, which were generated during multiple deformational events. Only the late events involved an episode of gold deposition.

The narrow, discontinuous quartz veins hosting high grade gold mineralization are difficult exploration targets. The veins are erratically distributed in late, northeast trending structures and gold values do not show a correlation with alteration within these structures. Generally, the property lacks evidence of extensive hydrothermal activity related to gold mineralization. Therefore, although gold grades are commonly high, the potential for economic tonnages remains low.

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LOCATION AND ACCESS

The Sande-Stewart property is located 40 kilometres northeast of Atikokan, Ontario, as shown in Figure 1. The property is part of the Wabigoon Subprovince, to the north of the boundary Quetico fault.

The area is accessible by logging roads extending from Provincial Highway 11. Alternatively, float plane access is available from Atikokan.

The topography of the region is moderately rugged, with approximately 10 to 15% outcrop exposure. Dense forests of mature spruce and pine are separated by cedar bogs. Portions of the northern part of property have been previously logged.

CLAIMS

The Sande-Stewart property consists of 685 contiguous, unpatented mining claims, comprising approximately 11,000 hectares of land (Figure 2). A total of 128 of the claims were added to the group by TOTAL Energold Corporation. The claim numbers are listed as follows:

TB 659897 659900

TB 875434 - 875442 875444 - 875447 875451 - 875453

TB 919650919929 - 920091

TB 920129 - 920178

TB 968046 - 968048 968051 - 968055

TB 920118 - 920124 920127 - 920128

TB 935565 - 935568 935571 - 935573

TB 963621 - 963674 963676 - 963733

TB 964011 - 964013 964021 - 964030 964621 - 964625 964636 - 964732 964636 - 964732

TB 965404 - 965408 965429 - 965449 965479 - 965510

TB 989195989197 - 989198 989200 989536 - 989547

TB 1139187 - 1139199

TB 1141943 -1141995

TB 1122355 1122369 1122849 - 1122854

TB 1153815 -1143836 1153849

TB 1164944 -1164956 1164987 -1165001

TB 1154954 -1154956

• ONTARIO

Rtd Lakt \SANDE-8TEWART PROPERTY

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Thunder Bay

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T01HL Enargold Corporation

8ANDE-8TEWART PROPERTY

Atlkokan. Ontario

GENERAL LOCATION MAP

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PREVIQUS STUDY

The discovery of gold in the Atikokan area in the late 1890's inspired several investigations of the regional geology and mineralization. The earliest mapping program was reported by Smythe in 1891, and outlined the structural geology of Steeprock Lake. Since that time, the Ontario Department of Mines reported the results of regional mapping programs by Hawley (1929), Woolverton (I960), Pye and Fenwick (1965), Shklanka (1972), Mcllwaine and Chorlton (1973), and Fenwick (1976). The latter study was the first comprehensive detailed mapping program of the Marmion Lake batholith. The most recent mapping in the Marmion Lake area was conducted by Stone (1986), for the Ontario Geological Survey. Structural studies of the emplacement and deformation of the Marmion Lake batholith, and its bordering greenstone belts were completed by Morgan (1978) and Schwerdter et al. (1978, 1985).

Schwerdtner et al. (1985) of the Ontario Geological Survey investigated several granitoid complexes of the Wabigoon Subprovince, and identified an early suite of granitic, gneissic rocks later intruded by felsic to intermediate plutons. These age relationships were tested by geochronological investigations of the Marmion Lake Complex, conducted by Davis and Jackson (1985).

The earliest review of gold occurrences in the area was completed by Coleman (1895), reporting the Hawk Bay and Lynxhead occurrences. The gold deposits of the Atikokan area were first collectively reviewed as the subject of a graduate thesis by Gardiner (1939). Further study of the mineralization was not continued until Wilkinson (1979) and Schneiders et al. (1985) provided detailed geological and geochemical reviews of the occurrences to generate a classification scheme.

EXPLORATION HISTORY

Gold was first reported in the Atikokan area in 1895, and the earliest gold production came from the Hammond Reef and Sawbill Mines in 1897. During the following 30 years, numerous showings were discovered in the area (Figure 3a). Of a reported 21 occurrences, five were brought into production. A total of 59,000 ounces of gold and 179,000 ounces of silver from 235,000 tons milled is recorded in the combined areas of Atikokan, Mine Center, and the Shabaqua-Shebandowan Lakes.

Exploration activity was renewed in the 1970's, with the dewatering of the Pettigrew Mine shaft by Inco. Falconbridge have been intermittently active in the area since 1983, drill testing the southern extension of the Hammond Reef-Sawbill Mine mineralization. Exploration Miniere Mimiska has recently conducted further exploration for extensions of the former Fern-Elizabeth Mine.

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Recent prospecting on the Sande-Stewart property has identified two new gold occurrences: Sande-Stewart (Breccia zone) and SS2. An initial evaluation of these showings by sampling was conducted by Goldfields. The first extensive exploration program was completed during 1987-88 by Ovalbay, under contract to Butte Resources. A regional airborne geophysical survey by Aerodat identified several potential structural hosts for gold. The first phase of the program involved reconnaissance follow up of these airborne anomalies, humus sampling, and stripping and sampling of the Sande-Stewart occurrence. The second phase consisted of the drilling of 13 diamond drill holes, totalling 7765 feet, to test the Sande-Stewart showing.

During the fall of 1989, Ovalbay conducted extensive humus and lithogeochemical sampling in the northern part of the property, as part of a preliminary review of the gold potential, for TOTAL Energold Corporation.

REGIONAL GEOLOGY

The Atikokan area is part of the Archean Superior structural province, in the vicinity of the southern boundary between the Wabigoon and Quetico subprovinces. The Wabigoon Subprovince is comprised of several narrow metavolcanic belts, granitic batholiths and stocks, and minor metasediments. The greenstone belts consist of mafic to intermediate massive, pillowed flows with associated fragmental units.

The Marmion Lake region is dominated by large gneissic granitic complexes separated by narrow greenstone belts (Figure 3). Felsic to intermediate plutons are commonly concentrated at the boundary areas between the two. Age relationships, as determined using zircon 207Pb/206Pb dating, gave closely related ages for the greenstone belts and the Marmion Lake gneissic complex. Both isotope ages and intrusive relationships indicate the marginal and internal plutons are younger (2929Ma) than both the supracrustals and gneissic complexes they intrude (2991Ma) (Morgan, 1978, Schwerdtner et al.,1978,1985).

The Quetico fault borders the southern portion of the area, separating the Wabigoon and Quetico Subprovinces. The structure has been interpreted as a dextral fault with a strike length exceeding 300 kilometres, from Fort Frances to Lac des Mille Lacs (Wilkinson, 1980). Discontinuous faults and shear zones parallel to the Quetico structure persist in the both the supracrustal and intrusive rocks to the north. Secondary north to northeast trending splays off the Quetico fault form lineaments and faults which are continuous over strike lengths of up to 80 kilometres. Regional foliations conform to the borders of the intrusive bodies, except where they are disrupted by the above mentioned structures.

Since the discovery of gold at the Hammond Reef occurrence in 1895, numerous small, high grade showings have been reported in the Atikokan area (Fig. 3a). The occurrences

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YOWL En*roold Corporation

8ANDE-8TEWART PROPERTY Atlkokan, Ont.

GENERAL GEOLOGY

NTS 62 B/12.13 8/80

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70 mCO

FIGURE 3a

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FIGURE 3A* LOCATION OF GOLD OOCPRRKMOtS IM THE ATIKOKAadapted from Wilkinson, I960

Minto Mine Reserve Island Sunbeam Mine Roy Mine Pettigrew Mine Hawk Bay Occurrence* Golden Winner Sawbill Mine Hammond Reef Mine

10.Plator Gralouise Occurrence*11.Jack Lake Mine12.Atiko (Sapawe) Mine13.Day Lake Occurrence 14.Snow Lake Occurrence15.H.H. Tripp claims16.New Golden Twins Occurrence17.Rebair Occurrence18.Elizabeth Mine19.Harold Lake Mine20.Mayflower Mine21.Red Paint Lake Occurrence 2 2.Sande-Stewart Occurrence*23.Lynxhead Occurrence*24.Bradshaw Bay Occurrence*25.Toronto Western Occurrence*

* Part of Sande-Stewart Property

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are all similar in their spatial relationship to north and northeast trending structures. Wilkinson (1980) provided the first comprehensive review and a three-fold classification scheme for these gold occurrences.

(1) Metavolcanic-hosted, stratabound type - concordant lenses of chert or carbonate with associated quartz-carbonate veins, hosted by metavolcanic rocks.

(2) Contact zone type - quartz-carbonate veins within narrow shear zones located at or near the contacts of batholiths and metavolcanic belts.

(3) Marmion Lake type - quartz veins within shear zones associated with northeast trending lineaments and their intersections with east trending structures.

The metavolcanic-hosted type of gold occurrence consists of stratiform chlorite- carbonate-sericite schist hosting pods of carbonate and pyritic units. Late crosscutting quartz-carbonate veins are common in areas with proximal quartz feldspar porphyry and extensive carbonatization. The sulphide assemblage is diverse: pyrite, arsenopyrite, chalcopyrite, sphalerite, and galena, accompanied by ankerite. Reported gold values are erratic, up to 18 g/t at the Mayflower Mine (Wilkinson, 1979).

The contact zone and Marmion Lake batholith types of occurrences are quartz veins hosted by northeast trending shear zones which may or may not correspond to major lineaments. The host structures are typically moderately to intensely sericitized, chloritized and carbonatized. The veins contained within these zones commonly exhibit mortar texture; evidence of deformation subsequent to vein emplacement. Stringers of light grey, unstrained quartz and ankerite occasionally cut the veins. Gold is reportedly associated with this late silicification. The sulphide assemblage of pyrite, chalcopyrite, occasional sphalerite, galena, and arsenopyrite does not show any signs of deformation. The sulphide and gold precipitation is therefore interpreted by Wilkinson as a consequence of a late hydrothermal event postdating deformation. The distribution of visible gold in the veins is sporadic, as are gold values. Higher gold values may correspond with intense alteration, however, gold appears to occur independently of other metals.

The Marmion Lake batholith type of occurrences are associated with north to northeast trending shear zones of chlorite-sericite-carbonate schists containing quartz +/- carbonate veins. The common crack-seal texture of these veins suggests they were generated during late stage hydrothermal activity. The hydrothermal fluids which accompanied this event deposited pyrite, chalcopyrite, galena, and gold. The sulphide assemblage of this type is less diverse than that of the contact zone type, and gold values are lower, averaging 7 g/t, as compared to 12 g/t.

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The Sande-Stewart and SS2 occurrences are also located within the batholith, however, they represent a fourth unique mode of gold occurrence. These showings are quartz stockworks localized in breccia zones which may have formed in response to localized tectonic activity along linear structures.

PROPERTY GEOLOGY

Lithologies

The Sande-Stewart property comprises the western portion of the Marmion Lake granitic complex bounded to the north and west by greenstone belts (Figure 4). The complex consists of a gneissic core with a later marginal pluton centered at the boundary zone between the gneiss and the metavolcanic belts. The lithologies observed on the property are summarized in Table 1.

The extreme northern part of the property is underlain by the western half of the Lumby Lake metavolcanic-metasedimentary belt. Tholeiitic basalts with two horizons of felsic metavolcanic rocks are folded around a central syncline. The property is underlain by part of the southern limb of the fold, consisting of mafic massive to pillowed flows in the north, intercalated with felsic tuffs and quartz feldspar porphyry (QFP). The QFP increases in abundance towards the south. Gabbroic dykes or coarse grained flows are ubiquitous, and are concordant with the east to northeast trending stratigraphy. The western boundary area of the property is underlain by rocks of the northeast trending Finlayson metavolcanic belt, consisting of massive mafic volcanic flows.

The majority of the property is underlain by rocks of the Marmion Lake Granitic Complex. The complex consists of a pre-tectonic gneissic core, intruded by later intrusive plugs, and a large marginal pluton. The core is composed of tonalite to granodiorite gneiss with locally assimilated mafic volcanic xenoliths increasing in abundance toward the complex-greenstone belt contact zones. The gneiss is commonly cut by dykes and sheets of biotite-homblende trondhjemite and granodiorite to granite. Occasional intermediate- mafic plugs intrude the gneiss, and are recognized as circular magnetic highs on the airborne survey results.

The marginal pluton is crescent-shaped, concave to the east, emplaced along the former contact between the greenstone and the tonalitic gneiss. The pluton is differentiated from felsic to mafic phases, but is comprised of mostly of biotite-hornblende trondhjemite. Other intrusive phases vary in composition from granite to quartz diorite. The intrusive relationships between the phases are complex; dykes and cognate inclusions of all types are ubiquitous. The age relationships consistently indicate a progressive differentiation from mafic to felsic phases.

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Stmcture

The most prominent structural features of the property are northeast trending fault zones, recognized as broad mylonitic zones which may be splays off the Quetico fault, to the south. Additional faults and shear zones are represented by topographic lows, and offsets of magnetic features on the airborne survey. Northeast and east-west are the dominant trends of the lineaments crosscutting all lithologies. The rocks hosting shear zones vary from weak to moderately schistose, and unaltered to strongly carbonatized, chloritized, and/or sericitized. Foliations within the Marmion Lake Complex conform to pluton boundaries, except where deflected by shear zones.

Brecia zones, such as the Sande-Stewart occurrence are also found on the property. These structures appear to be related to tectonism due to late stage volatile activity. The limited extent of the Sande-Stewart Breccia Zone, suggests that much of the energy causing deformation may have been dissipated along the intrusive contact.

Gold Occurrences

The Sande-Stewart property hosts a total of 5 historic gold occurrences and 2 recent occurrences: the Sande-Stewart and the SS2. The characteristics of mineralization at the Plator Gralouise, Lynxhead, Hawk Bay, and Bradshaw Bay showings were well documented by Wilkinson (1980). The more recent Toronto Western, Sande-Stewart, and SS2 showings were reviewed by Ovalbay, Inc., for Butte Resources. Brief descriptions of occurrences follow:

Plator Gralouise

- lenticular, 0.5 metre wide, quartz vein within 3 metre wide shear zone (Az 026- 035/vertical). Host is hornblende trondhjemite, mineralization consists of the sulphides: pyrite, galena, chalcopyrite, and gold. Reported assays up to 0.24 opt gold over 55 centimetres.

Lynxhead

- three varieties of veins: l-2m wide veins (Az 085/25-30S) with pyrite, chalcopyrite, galena and molybdenite; 10-30 centimetre wide vein in sheared gneiss (Az 55- 60/subvertical); NE trending quartz-carbonate stockwork in sheared, carbonatized mafic dyke. Reported assays up to 0.12 opt gold over 120 centimetres.

t TABLE 1: LTTHOLOGEES OBSERVED ON THE SANDE-STEWART PROPERTY

10 Mafic-Ultramafic Dyke 9 Mafic Dykes - fine grained, lamprophyric

LATE MARGINAL PLUTON. PLUGS

Felsic-Intermediate Intrusive Rocks

8 Granite(a)coarse grained to pegmatitic(b)Aplite

7 Trondjhemite - variable hornblende, biotite abundances(a)fine grained HBT(b)medium grained HBT(c)coarse grained HBT to quartz porphyritic(d)coarse grained to pegmatitic HBT

Intermediate-Mafic Intrusive Rocks

6 Granodiorite

5 Hornblende trondjhemite - quartz diorite

4 Diorite, gabbro

GNEISSrn r

3 Hybrid, hornblende-biotite trondhjemite gneiss with local mafic metavolcanic xenoliths. Often cut by dykes and plugs related the late marginal pluton. Late, lamprophyric dykes intrude all components of the complex.

METAVOLCANIC ROCKS

2 Imermediate-felsic volcanic rocks(a)Massive flow(b)Pyroclastic rocks:tuff breccia, lapilli tuff, tuff(c)Quartz Feldspar Porphyry

1 Mafic-intermediate volcanic rocks(a) Massive flows: fgr-cgr(b)Pillowed flows(c)Pyroclastic rocks:tuff breccia, lapilli tuff, tuff

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fiawk Bay

two sets of parallel quartz veins, 0.3-1 metre wide, hosted by narrow shear zones (Az 30-40/70-vertical) within late mafic dykes. Veins have been previously explored with 4 shallow shafts. Mineralization consists of pyrite, chalcopyrite, galena, ankerite, and gold. Reported assays of up to 0.46 opt gold (altered wallrock) and 0.34 opt gold (vein).

Bradshaw Bay

lenticular, 0.3-1.5 metre quartz vein within 3 metre wide shear zone (Az 050/vertical) localized at contact between altered mafic dyke and tonalitic gneiss. Mineralization consists of 1-3% disseminated pyrite, and gold. Reported assays of up to 0.22 opt gold over 30 centimetres.

Toronto Western

- lenticular quartz vein, stringers in zone 0,3-1.5 metres wide within a 3 metre wide shear zone (Az 030-050/vertical) hosted by tonalitic gneiss. Visible gold has been reported. Reported assays of up to 0.32 opt gold over 55 centimetres.

Sande-Stewart

variably altered and mineralized breccia zone centered at contact between late dioritic plug and gneiss. Zone is cut by narrow shears (Az 110/30-60S). Mineralization consists of pyrite and visible gold in alteration assemblage of chlorite, sericite, carbonate and hematite. Tested with 13 diamond drill holes, by Butte Resources. Reported assays of up to 0.29 opt gold over 14.7 feet (drilled width).

SS2

quartz stockwork, vein up to 20 centimetres wide at intersection of narrow shear zone (Az 100/40S) and gneissosity. Stockwork is concentrated at contact between diorite and tonalitic gneiss. Vein is continuous up to 100 metres to the west. Mineralization consists of pyrite, chalcopyrite, galena, and gold. Reported assays of up to 3 opt gold for vein material, and up to 0.14 opt gold for wallrock.

1990 EXPLORATION PROGRAM

The 1990 exploration program, conducted from June to August, consisted of both reconnaissance and detailed mapping, and sampling of selected areas of the property. Expenditures for the program are listed in Appendix 1; rock and humus sample lists are in

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Appendices 2 and 3, respectively. The results are summarized in a series of maps in the pocket. The southern area of the property was reviewed by reconnaissance shoreline prospecting and humus sampling of topographic lows, interpreted to reflect potential gold bearing structures. During this program, linear airborne magnetic trends and humus anomalies from the preliminary survey were followed up. The resulting areas of interest were mapped and humus sampled in detail.

Initially, 3 grids were cut in the West Sawbill Bay, Lynxhead Bay, and Hawk Bay areas, for detailed mapping and prospecting in areas of anomalous humus results, and/or mineral showings (Sande-Stewart and Hawk Bay occurrences). Control lines were cut in the East Sawbill area. Detailed humus sampling was conducted in each area, at 25m intervals, with concurrent mapping/prospecting to follow-up on these results, and the results from the preliminary humus survey.

The previously reported humus survey over the Sande-Stewart occurrence suggested the technique is effective for locating gold mineralization. Therefore, during the 1990 program, anomalous gold in humus results were followed up with prospecting. Check sampling of the original Ovalbay work on the West Sawbill grid failed to confirm several anomalies. It is believed the false anomalies were the result of lab assay erros. Based on this conclusion, the humus sampling program was considered a valid method and further sampling was conducted. Careful check assaying was carried out for the reemainder of 1990 to ensure no further lab problems occurred.

During sampling of the East Sawbill grid, the discovery of areas of interest warranted "") the staking of 52 additional claims to the north of the property, and the cutting of control ( lines for detailed mapping and prospecting. Two claims were also added to the Broken Leg J Bay area.

A total of 13 areas were mapped and prospected, and 626 rock samples and 1783 humus samples were collected for analysis.

RESULTS

A summary of the results of the TOTAL Energold field program is given below. Wherever possible, the historical occurrence names have been employed for easier reference.

Reconnaissance Program

Area A encompasses the west-central part of the property, south of the original Ovalbay humus survey area. Shoreline mapping and prospecting were conducted throughout the

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area and humus samples were collected in topographic lows. The excellent outcrop exposure ensured that the area was given good coverage.

The western portion of the reconnaissance area is dominated by late pluton(s) ranging in composition from quartz diorite to hornblende trondhjemite. The gneissic core of the Marmion Lake Complex is the dominant rock type of the eastern region. Northeast trending mafic dykes (l-25m wide) cut all components of the Complex. Evidence of brittle- ductile behaviour is recognized as several northeast trending narrow (l-5m wide) shear zones, which are commonly carbonatized, chloritized and/or sericitized. These structures often show a spatial relationship to mafic dykes, as observed in the Trap Bay area, and in the channel to the southwest of the Hammond Reef occurrence. Linear, northeast trending zones of juvenile breccia (meanining incomplete breccia formation), locally grading into shear zones are common in the marginal pluton. The zones have been subjected to moderate sericite, carbonate, quartz, with minor fuchsite alteration. Sulphides are rarely observed.

No anomalous humus results were obtained from the survey. The highest assay obtained from a rock sample was 151 ppb, from sericite, chlorite, carbonate schist within the shear zone extension of the Hammond Reef occurrence.

Area B encompasses the east-central portion of the property, in the vicinity of Hawk Bay. Shoreline mapping and prospecting was conducted in areas not covered by grids, or the Ovalbay humus survey.

The area is dominated by rocks of the gneissic core of the Marmion Lake Complex, with assimilated volcanic xenoliths. Hornblende trondhjemite and granodiorite associated with late plutons are locally observed. Late northeast trending mafic dykes cut the gneiss in the North Turtle Bay and Broken Leg Bay areas. At these localities, the dykes have been sheared (NE), intensely carbonatized and chloritized. Concordant white quartz-carbonate veins are localized either within, or in close proximity to the sheared dykes.

The highest assay of 1211 ppb gold was obtained from intensely sheared and carbonatized gneiss in the Broken Leg Bay area. This area was further detailed with mapping and humus sampling on a flagged grid.

AreaC

Area C encompasses the southeast portion of the property, in the vicinity of Bradshaw Bay. Shoreline prospecting and humus sampling of the area was conducted. The previously documented Bradshaw Bay occurrence was located and resampled.

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The area is underlain by rocks of the gneissic core of the complex and coarse-grained diorite to quartz diorite, which are locally cut by late northeast trending mafic dykes. A 1 to 2 metre wide northeast trending shear zone follows a dyke-gneiss contact. The Bradshaw Bay occurrence consists of a 0.5 to 1 metre wide quartz vein contained within a intensely carbonatized, chloritized portion of this structure. The vein shows well developed crack-seal texture, evidence of deformation post dating vein emplacement. The highest assay of 5497 ppb gold was obtained from a pyritic portion of the quartz vein.

West Sawbfll

A northeast trending grid was cut over the West Sawbill area, following the apparent northeasterly linear humus trends from the Ovalbay survey, and similar magnetic trends on the airborne survey. Humus sampling was completed at 25 metre intervals and 400 metre line spacing over the entire grid. Detailed mapping and prospecting investigated areas of anomalous humus results. The results are summarized on Maps 1,1 a.

The West Sawbill grid area is underlain by rocks associated with the marginal pluton of the Marmion Lake Complex. The dominant rock type is hornblende-biotite trondhjemite, a pegmatitic variety, and granite. In the western portion of the grid, quartz diorite becomes abundant. Intrusive relationships between the phases are complex, with abundant dykes and cognate inclusions in all phases.

The rock is generally undeformed; however, fractures at several orientations are common. Narrow (0.5-1 m wide) northeast trending shear zones are often adjacent to topographic lows, which may represent larger, related structures. On Line 20 East, a quartz stockwork is centered at the intersection of a weak northeast striking shear zone and earlier, east-west striking fractures. High gold values of 9536 ppb are associated with a pyritic area of the stockwork. At locality 2400E 11 SOS, a large quartz vein is similarly localized at the intersection of an early northwest trending shear and a later northeast trending structure. Portions of the vein are strained and folded, with an steep (60) plunge to the northeast. The vein was therefore emplaced either during or after the final northeasterly deformation. Detailed mapping and sampling of the vein was completed (Maps 10,10a). No significant gold assays were obtained.

East Sawbill

The East Sawbill grid is a northeasterly extension of the West Sawbill grid. This area was humus sampled at 25 metre intervals, with a 400 metre line spacing. No anomalous results were obtained. At the most northerly part of the grid, on L70E, a quartz-carbonate stockwork is hosted by a east-west striking shear zone at a mafic dyke-quartz feldspar porphyry contact. The airborne geophysical survey indicated that the dyke persists over several kilometres to the east. The moderate to intense carbonate alteration associated with the structure also persists along strike.

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This area was detailed mapped and sampled as part of the East Sawbill Extension.

East Sawbfll Extension

The discovery of the quartz stockwork on the edge of the East Sawbill grid warranted the staking of 52 claims and the cutting of control lines on this East Sawbill Extension. The area consists of glacial cover, and has been previously burned. Therefore, a humus survey was deemed to.be. an jneffective e^Jp^^^^ Mapping and prospecting were completed on 200 metre spaced traverses.

The grid area covers the contact zone between the marginal pluton of the Marmion Lake Complex, and the Lumby Lake greenstone belt to the north. The east-west trending stratigraphy of the belt exposed in this region consists of quartz feldspar porphyry, felsic tuffs, tholeiitic mafic flows, with late gabbroic dykes, and an ultramafic dyke. The southern area is dominated by quartz feldspar porphyry, which becomes intercalated with mafic flows and tuffs, towards the north. The northern area is dominated by tholeiitic mafic massive and pillowed flows. East-west striking gabbroic dykes (flows?) typically 2 to 20 metres wide are concentrated in the quartz feldspar porphyry. A regional mafic- ultramafic dyke concordant with stratigraphy extends over a 2 kilometre strike length. The dyke is strongly magnetic and is therefore easily recognizable on the airborne geophysical survey. Intrusive phases associated with the marginal pluton are exposed in the southeastern portion of the grid. No intrusive contacts with the quartz feldspar porphyry were observed.

Foliations in the grid area consistently strike either east-west, with subvertical dips, or northeasterly with moderate dips of 50 to 60 to the north. Shear zones (l-5m wide) are localized at contacts between dykes, flows, and felsic fragmental units. Moderate to strong carbonate alteration, with minor sericite, and chlorite, is characteristic of these zones. White quartz veins and stockworks containing pyrite, rare chalcopyrite, and galena are commonly localized within the shear zones.

In the vicinity of L70E 500S, two varieties of quartz veins were discovered: an east- west trending white quartz stockwork within an east-west shear zone, and a previously trenched northeast trending grey quartz vein. The 2 metre wide stockwork of quartz and ankerite is localized at the sheared contact of QFP and the chloritized, carbonatized ultramafic dyke. Rare pyrite is disseminated in both the vein and its altered wallrock. No significant assays were obtained from samples taken in this area. The previously sampled grey quartz vein is located approximately 50 metres to the northwest of the stockwork. Trace pyrite, pyrrhotite, and chalcopyrite are disseminated throughout the vein. No significant assays were obtained from samples taken in this area.

A 10 to 15 metre wide white quartz vein is located at a sheared QFP-dyke contact in the northwestern grid area. This vein has been previously sampled, and reported as the

-13-

Blowout occurrence. Sulphide rich pods within the vein contain 2 to 3% coarse grained chalcopyrite, pyrite. The highest assay obtained from samples of the vein was 600 ppb gold.

A similar broad E-W trending carbonate zone (10 to 30 metre wide) extends through the volcanic sequence in the vicinity of Bufo Lake. Pyritic pods 1 to 3 metres wide are common to the zone. In the south Bufo Lake area, several pits and trenches have tested the potential of the zone. Anomalous values of up to 0.20 opt gold have been reported (Thunder Bay Assessment Files); however, resampling of the pits in this program did not return any significant results.

Hawk Bav

The Hawk Bay grid is centered over the shafts of the previously reported Hawk Bay occurrence. Preliminary humus sampling was conducted at 25 metre sample intervals and 200 metre line spacing, over the entire grid. No anomalous results were obtained from the survey. A prospecting and limited mapping program located the 4 shafts comprising the occurrence, and identified similar geological settings.

The Hawk Bay area is underlain by rocks of the gneissic core of the Marmion Lake Complex. Locally, the gneiss is cut by irregular sheets of hornblende trondhjemite and northeast trending late mafic dykes. The disposition of the features observed in the area of the shafts identifies 2 parallel white quartz veins (.2-1 metre wide) within narrow northeast striking, steeply dipping, shear zones. The shear zones are concordant to subconcordant to contacts between gneiss and mafic dykes. The veins show well developed crack-seal textures, and are mineralized with trace to 1% pyrite, galena, and arsenopyrite. High grade gold values of up to 92 g/t were obtained from a sample of the vein, however, assays are typically erratic.

In the northwest area of the grid, a similar white quartz vein is localized within a northwest striking shear zone in a mafic dyke. The dyke has been extensively sheared and altered to a chlorite-carbonate-fuchsite schist. No significant values were obtained from samples of this vein.

Lvnxhead

The Lynxhead grid covers the area surrounding the Sande-Stewart and SS2 occurrences (Maps 5, 5a). A previous humus survey by Butte Resources successfully delineated the Sande-Stewart occurrence. Humus sampling was therefore considered an effective tool to identify areas for follow-up. Humus samples were collected at 25 metre intervals, along 100 metre spaced lines. Poor geochemical results from the survey limited detailed mapping to 50 metre line spacing, in the area around the occurrences. The anomalous stream sediment sample results along the creek are consistent with anomalous humus trends of the Butte survey. There is a lack of outcrop in this vicinity.

14-

The grid area is underlain by a large, late pluton within the gneissic core of the Marmion Lake Complex. Relict portions of the core are rarely observed. The rock types vary from hornblende-biotite trondhjemite and pegmatitic trondhjemite, to granodiorite. An ovoid hornblende trondhjemite-diorite plug 150 to 200 metres in diameter is centered to the south of the baseline. This phase is magnetic and is therefore recognizable as a bullseye feature on the airborne survey. Narrow, northeast trending mafic dykes are not common in outcrop, but were intersected at depth in drill holes by Butte Resources.

Brittle-ductile deformation is represented by foliations and shear zones which consistently strike east-west, and dip from 70 to 40 to the south, often rolling. In the western portion of the grid, the foliations appear deflected to the northeast. Fractures are both irregular, and in conjugate sets. The most common trends are northwest to east-west, with dips varying from 45 to 80 to the northeast, to 30 to 60 to the southwest.

The breccia zone at the Sande-Stewart occurrence is the result of brittle deformation due to a hydrothermal implosion event. The breccia consists of angular to sub-rounded fragments of variable altered diorite in a highly milled matrix. In area of intense alteration, the matrix consists of chlorite, carbonate, and hematite, and may be silicified. A halo of irregular tension fractures within the host diorite and gneiss surrounds the breccia zone. Abundant fractures often form a fragment-supported breccia, with fragments separated by white-grey quartz stringers.

A network of narrow, east-west striking shear zones cut the breccia zone and rocks within an estimated 100 metre wide area surrounding the zone. The density of these structures is greatest near the occurrence, suggesting the fractures were developed during the same implosion event which generated the breccia. The shear planes are undulating, and have rolling dips varying from 70 to 35 , to the south. Alteration yielding carbonate, sericite, chlorite, and hematite is concentrated in the shear zones, and brecciated wallrock. Fine grained pyrite, galena, and gold are disseminated within silicified zones of these areas. The alteration and shearing appear to have been synchronous events, both postdating brecciation of the diorite. Similarly, the introduction of gold and sulphides is interpreted as a late event.

The breccia zone exposure consists of an altered, shallow dipping shear plane, with a mound of variably altered breccia preserved in the hanging wall. Previous sampling of these areas returned average grades of 0.25 opt gold. Although the silicified shear zones return high assays, their narrow (0.3-1 metre) widths are not considered economic. The altered, mineralized portion of the breccia zone was tested with 13 diamond drill holes completed by Butte Resources. The breccia proved to be limited in its subsurface extent, and was not consistently mineralized.

The SS2 occurrence is located approximately 150 metres south of the breccia zone. Like the breccia zone, the showing is centered at the contact between gneiss and diorite,

-15-

with a juvenile, fragment-supported breccia separating the two. A white quartz stockwork occurs at the intersection of an east-west shear zone and primary gneissosity. A 20 to 30P centimetre wide quartz vein within the shear extends for a strike length of 100 metres, beyond the stockwork. The host rock has been subjected to weak, localized serialization and carbonatization. High grade results of up to 84 g/t gold were obtained from samples of the vein containing disseminated pyrite, chalcopyrite, and galena.

The results of the humus survey were generally negative; however, anomalous stream sediment sample results were obtained from the creek in the northern part of the grid. This area was covered by the Butte humus survey, and samples in the vicinity of the creek also returned anomalous values. Prospecting identified a broad, east-west trending alteration zone to the west of the grid. This area, referred to as West Lynxhead, was detailed mapped and sampled using the existing Butte grid.

West Lynxhead

The West Lynxhead area is underlain by a late dioritic plug intrusive into hornblende trondhjemite and/or tonalitic gneiss to the north. Northeast trending mafic dykes and mafic volcanic xenoliths are common. Foliations within the diorite trend east-west and northeasterly, dipping 45 to 65 to the south. Brecciation is widespread, intense, and accompanied by intense alteration similar to that observed in sheared areas of the Breccia Zone.

The breccia is highly milled, and consists of altered diorite fragments set in finely ground matrix with 3 to 5% disseminated pyrite. White to light grey quartz stringers occasionally replace the matrix surrounding the fragments. A 10 to 15 metre wide white quartz vein trends northwesterly over a strike length of 300 metres. Locally, the vein is brecciated together with altered waUrock. Late, light grey quartz stringers cut the vein.

The Butte humus survey identified a weakly anomalous east-west trending zone. Rock samples taken during this program returned poor low gold values.

Lynxhead Occurrence (historical)

As shown on Map 7, the Lynxhead occurrence consists of three trenches on an island, and a shaft on the mainland to the north. This area was remapped to document the variety of styles of mineralization and quartz veining. Similar styles can be recognized in other areas of the property.

The area is underlain predominantly by tonalite gneiss with component dykes and sheets of hornblende-biotite trondhjemite, and mafic volcanic xenoliths. Lamprophyric mafic dykes cut the gneiss in a northeasterly direction.

-16-

Foliations and weak to moderate schistosities follow two general trends: (1) east-west striking, dipping 70 to 30 to the south, and (2) northeast striking, dipping steeply to 30 south, or 45 to the north. Gneissosity measurements vary widely in orientation. Mineralization occurs in:

(1) quartz veins in east-west to northwest trending fractures and shear zones

(2) a crack-seal vein in a northeast trending shear zone

(3) a quartz-carbonate stockwork in a northeast trending, sheared, altered mafic dyke

Trace to 2% pyrite, chalcopyrite, galena +/- malachite, azurite, molybdenite are disseminated in the veins. Reported gold values have been erratic for these veins; the highest assay obtained in this study was 3.7 g/t gold. Intense carbonatization is characteristic of the northeast trending shear zones. Pyrite and galena are disseminated in the vein, in abundances up to 1%. The reported high grade assays for these veins were not duplicated from current samples. The shaft on the mainland exposed a stockwork of 25 to 30% white quartz-carbonate veining within a strongly sheared, carbonatized mafic dyke. Disseminated pyrite in abundances of up to 1% is locally observed. No significant assay results were obtained from samples taken from the shaft.

Trap Bav

The Trap Bay area consists of large quartz veins in the vicinity of an extensively altered mafic dyke within the gneissic core of the Marmion Lake Complex. This locality was detailed mapped and sampled.

The quartz veins were originally emplaced concordant with the mafic dyke, but have been subjected to later deformation. The veins and their host rock has been folded into a series of anticline-syncline pairs, the axes of which consistently plunge 25-30 to the north. Where noses of the folds have been eroded, the exposed vein and wallrock are brecciated. The wallrock fragments have been altered to chlorite, sericite, and ankerite, with hematite.

Chlorite and carbonate alteration of the mafic dyke appears to be related to early northeasterly directed shearing. The emplacement of the quartz veins may have been concurrent with this deformation. The folding of the veins and associated alteration represents a later episode of deformation.

No significant assays were obtained from samples taken during this program.

47-

Broken Leg Bay

The Broken Leg Bay area was mapped in detail and humus sampled on a flagged grid. The geology of the area consists of a northeast trending mafic dyke, up to 25 metres wide, emplaced into tonalite gneiss of the Marmion Lake Complex. A late shear zone (NE/steep east) is subconcordant to the contact zone. Alteration associated with the deformation has caused chloritization and carbonatization of the mafic dyke.

White quartz veins (10 to 30cm wide) were emplaced parallel to the gneissosity of the tonalite. No significant assay results were obtained from samples of these veins. The humus sampling program also returned low gold values.

CONCLUSIONS

Gold mineralization is common to the Marmion Lake Complex, as documented by Wilkinson (1980). Numerous small, high grade occurrences have been documented; however, showings with consistent grade and large tonnage potential have been elusive to explorationists. The multiplicity of alteration and deformational events makes definition of an exploration target difficult. Intensity of alteration is not a reliable indicator of high grade gold mineralization, since several hydrothermal events have affected the area, and not all include an episode of gold precipitation. The distribution of gold does not reflect an affinity for a particular sulphide phase.

It is known that gold is consistently associated with epigenetic quartz - as veins, stockworks, and silicification. During this exploration program, three distinct subdivions of Wilkinson's (1980) Marmion Lake type quartz veins (#3) have been identified:

(1) syntectonic veins subjected to later deformation(2) syntectonic (?) stockworks and veins(3) late tectonic stockworks, veins, silicification

The third variety demonstrates proven potential for high grade gold mineralization.

Syntectonic veins subjected to later deformation have been identified in the Trap Bay and West Lynxhead areas. The veins and their sheared waUrock have been brecciated, folded, and altered, subsequent to vein emplacement. In the East Sawbill Extension area, some of the veins at the QFP and gabbroic dyke contacts have been sheared and boudinaged. Late stage alteration typically consists of chloritization, sericitization, carbonatization, hematization, which may be accompanied by silicification.

Similar, syntectonic quartz veining has been observed at the Broken Leg Bay locality and the Lynxhead occurrence. At the Broken Leg Bay area, northeast trending shearing and alteration follows a mafic dyke-tonalitic gneiss contact. The gneissosity parallel veins are

-18-

concentrated in the altered tonalite. At the Lynxhead occurrence, veins are within east- west trending fractures and shear zones. Moderate alteration is most easily recognized as chloritizalion and carbonatization of mafic volcanic xenoliths hosted by the gneiss in this area. A diverse sulphide assemblage of pyrite, chalcopyrite, galena, and molybdenite is associated with some of the veins of this occurrence, as are low grade gold values.

The northeast and east-west trending shear zones which transect late mafic dykes commonly host stockworks of white quartz and carbonate. These relationships have been observed on the Lynxhead and East Sawbill grids, at the Lynxhead occurrence, and in the channel to the south of the Hammond Reef occurrence. Deformation was accompanied by chloritization, serialization, carbonatization, and silicification generating the stockworks. Disseminated pyrite is rarely observed in the quartz and the altered wallrock. Associated gold values, if any, are low grade.

A series of late tectonic stockworks, veins, and silicification is associated with late and/ or reactivated structures. Age relationships between these veins and the interpreted syntectonic variety are not absolute. The veins are unique in displaying crack-seal textures, resulting from successive dilation and infill. These textures are common to late epigenetic quartz veins. The veins are often localized within sheared and extensively altered mafic dykes, generated during an earlier, unrelated hydrothermal event. The shear zones and the host dykes consistently strike northeasterly.

The high grade gold occurrences on the property: Hawk Bay, Lynxhead, Plator Gralouise, and Toronto Western are all hosted by narrow crack-seal veins with disseminated pyrite, chalcopyrite, and galena. Wilkinson (1980) reported a general correlation of elevated gold values with carbonatization of the wallrock.

RECOMMENDATIONS

No further work is recommended at this time.

-19-

REFERENCES

Coleman, A.P.,1894: Gold in Ontario: Its associated rocks and minerals, Ontario Bureau of Mines, vol.4, p.58.

Davis, D.W., and Jackson, M.C., 1985: Preliminary U-Pb Zircon ages from the Lumby Lake- Marmion Lake area, Districts of Kenora and Rainy River, p.135-137 is Summary of Field Work and Other Activities 1985, edited by J. Wood, O. White, R.B. Barlow, and A.C. Colvine, Ontario Geological Survey, Miscellaneous Paper 126, 351p..

Fenwick, K.G., 1976: Geology of the Finlayson Lake area, District of Rainy River, Ontario Division of Mines, Geoscience Report 145, 86p., Maps 2297, 2298.

Gardiner, M.C., 1939: The gold deposits of the Atikokan area, Ontario, unpublished M.A. thesis, Lakehead University, Thunder Bay, Ontario, 48p.

Hawley, J.E., 1929: Geology of the Sapawe Lake area with notes on some iron and gold deposits of the Rainy River District, Ontario Department of Mines, vol.38, part 6, p. 1-58.

Mcllwaine, W.H. and Chorlton, L.B., 1973: East half of the Sapawe Lake area, District of Rainy River,in Ontario Division of Mines, Misc. Paper 59.

Morgan, J., 1978: Structure of the Finlayson Lake greenstone belt, unpublished M.Sc. thesis, University of Toronto, Toronto, Ontario, 95p.

Pye, E.G., and Fenwick, K.G., 1965: Atikokan-Lakehead sheet, Rainy River and Thunder Bay Districts, Ontario Department of Mines, Map 2065.

Schnieders, B.R. and Dutka, R.J., 1985: Property visits and reports of the Atikokan economic geologist 1979-1983, Atikokan Geological Survey, Open File Report 5539,512p..

Schwerdtner, W.M., Stone, D., Osadetz, K., Morgan, J., and Stott, G.M., 1979: Granitoid complexes and the Archean tectonic record in the southern part of Northwestern Ontario, Canadian Journal of Earth Sciences, vol. 16, p.1965-1977.

Shklanka, P., 1972: Geology of the Steep Rock Lake area, District of Rainy River, Ontario Department of Mines and Northern Affairs, Geological Report 93, 114p., Map 2217.

Stone, D., Kamineni, C, Jackson, J., Shanks, B., 1986: Geology of the Atikokan area, Geological Survey of Canada, Open File Report 1221.

Wilkinson, S. 1979: Gold deposits of the Atikokan area, jn Ontario Geological Survey Miscellaneous Paper 90, p.200-214.

-20-

Wilkinson, S.,1980: Gold deposits of the Atikokan area, Districts of Rainy River and Kenora, Ontario Geological Survey Open File Report 5307, 125p..

Woolverton, R.S., 1960: Geology of the Lumby Lake area, Ontario Department of Mines, Vol.69, part 5, Map 1960g.

-21-

CERTIFIGATION

I, Janice Fingler, of Winnipeg, Manitoba hereby certify that:

1) I am a graduate from the University of Manitoba, B.Sc. obtained in May 1985.

2) I have been practising my profession in Canada since 1984.

3) I have no direct interest in the properties, leases or securities of David Sande or Edward Stewart.

t4) I have based conclusions and recommendations contained in this report on

knowledge obtained from geophysics, geology and geochemistry conducted on the property between June 1990 and August 1990.

Dated this 9th day of January, 1991 2, s ifcT- Timmins, Ontario

// Janice Fingler

U

APPENDIX 1

TOTAL ERICKSOM RESOURCES LTD.DEFERRED EXPLORATION LISTING

October 31, 1990

SANDE-STEUART

STATIONARY /SUPPLIES KAPS/PUPLICATIONS FIELD SUPPLIES DRAFTING VEHICLES

CONTRACTORSAIRCRAFT CHARTERDRILLINGFUELASSAYSGEOCHEMISTRYGEOLOGYCAMP ACCONOOATION /BOARDACCONOOATION (OUT OF CAMP)TRAVELMISC.GOVERNMENT FEESCLAIM STAKINGOPTION PAYMENTS

PRIORMONTH»••••

54,159.561,749.734,774.172,895.12

749.153.477.01

100.0019,136.571,450.00(766.04)817.57

12,880.120.00

4,075.007,011.21

469.994,703.533.492.733,977.57

16,843.3115,000.00

CURRENTCHANGE

3,485.0056.27

136.080.000.000.000.000.000.000.00

370.034,648.119,951.70

0.000.000.000.000.000.000.000.00

YEAR TODATE

57,644.561,806.004,910.232,895.12

749.153,477.01

100.0019,136.571, 450.00(766.04)

1,187.6017,528.239,951.704,075.007,011.21

469.994,703.533,492.733,977.57

16,843.3115,000.00

156,996.30 18,647.19 175,643.49

TOTAL Energold CorporationSande-Stewart Project

Statement of Expenditures

Labour

{See Attached)

Contractor

Hussey Geophysics

Assays

TSLAccurassay X-Ray Labs

TOTAL

Geochemistry

Accurassay

Geology

Canterex Geophysics

TOTAL

$ 57,977.56

18,500.00

17,528.23

9,951.70

4.075.00

Giulio B6nifacio

m»C:\dala\wp\fleoloay\KL0205L.OOC(kl)

PAYROLL CONFIRMATION RE: SANDE-STEWART PROJECT AT DECEMBER 31, 1990

ATT: JANICE FJNGLER

NAME

JOE MACPHERSON JANICE FINGLER KEN STEUART MARY STALKER BRAD MCALLISTER SCOTT KING MELANIE HANAM

TOTAL FOR PROJECT WORK BY ABOVE PERSONNEL

RATEAPROX. MAN DAYS TOTAL COST

200.00175.00138.00160.00144.0091.0091.00

59856166391621

$11,724.00$14,870.00$8,418.00$10,604.00$5,616.00$1,408.28$1,915.00

$54,555.28

ADJUSTMENTS-OTHER PERSONNEL J.GRAVEL S.PARRY

BALANCE PER G/L FOR ACCOUNT 23000-SANDE-STEWART-LABOUR DECEMBER 31,1990

$2,022.28 $1,400.00

$57,977.56

Invoice026292

\ <£ \HH(3

TRIP.

TOTlf ERICKSON RESOURCES LTD.i - 700 West Render Street, Vancouver, British Columbia, Canada V6C 1G8

Telephone: (604) 681-9501 Fax: (604) 681-6813

* Nine Thousand Six Hundred Eighty-Five andTOTHEORDEROF •" XX/1°° *

CANTEREX ONTARIO ^ 8037 JOHN ST. ROAD RR#11 SITE #10 BOX #13 P7B 5E2 THUNDER BAY, ONTARIO

TORONTO-DOMINION BANK, 499 GRANVIUE & RENDER STS., VANCOUVER. B.C. V6C 1V3

1455CHEQUE NO. CHEQUE DATE VENDOR NO.001455 09 04 90 CAN007

CHEQUE AMOUNT

$9,685.00

TOTAL ERICKSON RESOURCES LTD.

etn

ooooq&a SOLV

SCHEDULE OF LABOUR COSTS

NAME

Brad McAllister

Mary Stalker

Janice Fingler

Ken Stewart

Joe MacPherson *

Melanie Hanam

* Field supervisor

DAILY RATE

$ 144.00

$ 160.00

$ 175.00

$ 138.00

$ 200.00

$ 91.00

DAYS

8

10

10

12

5

3

TOTAL

$ 1,152.00

1,600.00

1,750.00

1,656.00

1,000.00

273.00

$ 7.431.00

FIGURE 2

TOTAL Energold Corporation

SANDE-STEWART PROPERTYATIKOKAN, ONTARIO

CLAIM MAP

V

SCALE 1:2O.OOO J.MacPhersonNTS 52 B/ 12, 13

Ontario 52G03SW8081 £.14321 NORWAY LAKE 900

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

December 16, 1991

Mining RecorderMinistry of Northern Developmentand Mines435 James Street SouthP. 0. Box 5000Thunder Bay, Ontario

Geoscience Approvals SectionMining Lands Branch159 Cedar Street, 4th FloorSudbury, OntarioP3E 6A5

Toll Free: Telephone: Fax:

1-800-465-3880 (705) 670-7264 (705) 670-7262

Our File: 2. 14321 Transaction #: W 9140. 5032

Dear Sir:

RE: APPROVAL OF ASSESSMENT WORK REPORTED ON MINING CLAIMS TB 1153815 ET AL, IN THE NORWAY LAKE AREA,

The Assessment Work Credits for a Geological Survey, under Section 12 of the Mining Act Regulations, listed on the attached Assessment Work Credit Form, have been approved as of the above date. This attached form replaces the one filed with the original submission.

Please indicate these changes on your records.

If you have any questions please contact Clive Stephenson at (705) 670-7251.

Yours sincerely,

Ron C. GashinskiSenior Manager, Mining Lands BranchMines and Minerals Division

CDS/jl Enclosures:

cc: Resident Geologist Thunder Bay, Ont.

Assessment Files Office Toronto, Ontario.

ASSESSMENT WORK CREDITPILE NUMBER: 2. 14321 DATEi December 16, 1991 RECORDER' 8 REPORT NUMBER! W9140.5032

RECORDED HOLDER: Total Energold Corp.

CLIENT NUMBER: 202600

TOWNSHIP OR AREA: Norway Lake

CLAIM NO.

11538151153816115381911538201153821115382311538241153825115382611538271153828115382911538301153831115383211538331153834115383511649441164945116494611649471164946116495011649511164952116495311649541164955116498811649891164990116499111649921164993116499411649951164996116499711649981165000

VALUE OF ASSESSMENT WORK DONE ON THIS CLAIM

$ 94.$ 219.$ 151.$ 163.$ 177.$ 122.$ 227.$ 54.$ 113.$ 319.$ 129.$ 150.$ 108.$ 239.$ 187.$ 52.$ 52.$ 253.$ 80.$ 295.$ 270.$ 228.$ 314.$ 225.$ 462.$ 108.$ 223.$ 240.$ 267.$ 212.$ 317.$ 387.$ 313.$ 358.$ 317.$ 80.$ 246.$ 374.$ 80.$ 458.S 80.

403939393939393939393939393939393939393939393939393939393939393939393939393939393?

RESERVE: WORK TO BE CLAIMED AT A FUTURE DATE__________

$ 94. 40$ 219. 39$ 151. 39$ 161. 39$ 177. 39$ 122. 39$ 227. 39$ 54. 39$ 113. 39$ 319. 39$ 129. 39$ 150. 39$ 108. 39$ 239. 39$ 187. 39$ 52. 39$ 52. 39$ 253. 39$ 80. 39$ 295. 39$ 270. 39$ 228. 39$ 314. 39$ 225. 39$ 462. 39$ 108. 39$ 223. 39$ 240. 39$ 267. 39$ 212. 39$ 317. 39$ 387. 39$ 313. 39$ 358. 39$ 317. 39$ 80.39$ 246. 39$ 374. 39$ 80. 39$ 458. 39S 80. 39

TOTALS $ 8, 759. 00 $ 8,759.00

Ministry ofNorthern Development Report of Work Conducted

After Recording ClaimMining Act

Transaction Number~ 5*03Ontario w MimnaAci HMiJltf

Hrsonal information collected on this form Is obtained under the authority of the Mining Act. This Information will be used for correspondence. Questions about tts collection should be directed to the Provincial Manager, Mining Lands, Ministry of Northern Development and Mines, Fourth Floor, 159 Cedar Street, iudbury, Ontario, P3E 6A5, telephone (706) 670-7264.

Instructions: - Please type or print and 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.• 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) T~o

CNent No.

Address Telephone No.~ 2.

Mining Division Township/Area /<

M or 0 Plan No.

/*?9 To:

Work Performed (Check One Work Group Only)WorkGroup

Geotechntoal SurveyPhysical Work, Including Drilling

RehabilitationOther Authorized Work

AssaysAssignment from Reserve

Type

/ i , ««» <^^C7,,/G

i—

RECEIVED

SEP 1 1 1991

——————— MINING LANDS SECTION —————

i , \i _ :

ro : „_

- '

r -

Total Assessment Work Claimed on the Attached Statement of CostsNote: 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.

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

/ •»

i / */ f~ e. ^ -m ̂ C

(attach • schedule If necessary)

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

Data Holder or Agent (Signature)

Deftlflcation of Work Report1 cerWy that 1 have a personal knowledge of the facts set forth In this Work report, having performed the work or witnessed same during and/or after Ms completion and annexed report Is true.

Name and Address of Person Certifying'ZoWH- ft-

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Ontario

Ministry ofNorthern Development

• «rtd Mines

jtere duement du Nord

et des mines

Statement of Costs for Assessment Credit£tat des coQts aux fins du credit d'evaluationMining Act/Loi tur lea mines

Transaction No./N* de transaction

Personal Information collected on this form is obtained under the authority of the Mining Act. This information will be used to maintain a record and ongoing status of the mining claim(s). Questions about this collection should be directed to the Provincial Manager, Minings Lands, Ministry of Northern Development and Mines. 4th Floor, 159 Cedar Street, Sudbury, Ontario P3E 6A5, telephone (705) 670-7264.

Les renseignements personnels contenus dans la presente formula sent recueillis en vertu de la Loi sur lee mines et serviront a tenlr a Jour un registre des concessions minieres. Adresser toute question sur la collece de ces renseignements au chef provincial des terrains mlnlers, ministers du Developpement du Nord et des Mines, 159. rue Cedar, 4e etage, Sudbury (Ontario) P3E 6A5, telephone (70S) 670-7264.

1. Direct Costs/Gouts direct*

Type

WagesSalalres

Contractor's end Consultant's Feet DroHede I'entrepreneur et de ('expert, consell

Supplies Used Foumttures utlllaee*

Equipment nental Location de materiel

Description

Labour Main-d'oeuvreField Supervision Supervision sur le terrain

Type£/A/f~ • C u-r-r/«i C»

Type

Type

Amount Montant

<y?/...

/e> o o .««

y 0ox;..

Total Direct Costa Total dea coOts dlrecta

Totals Total global

•?v?/ •.

V«O.T".» •

//.Tit.*-

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

allowable as assessment work. Pour le remboursement des travaux de rehabilitation, les coOts indirects ne sont pas admissible* en tant que travaux d'evaluatlon.

Type

Transportation Transport

Food and Lodging Nourrlture et hebergementMobilization and Demobilization Mobilisation et demobilisation

DescriptionType

Amount Montant

Sub Total of Indirect Costa Total partial dea coOta Indlrecta

Amount Allowable (not greater than 20M of Direct Costs) Montant admissible (n'excedant pas ZO H des coots directs)Total Value of Assessment Credit Valeur totale du credH (Total of Direct and Allowable d'tvatuetJon Indirect costs) (Total tt» eeMs etoeb

Totals Total global

•£k..:•"

-f "•'"*''

S:

. — 1444 *-*T. 'ij :

•^^t^T J '"'I'^Wiiiii'l

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

Note : LeWulaireenreoistre sera tenude verifier (esdepeneesdemandess dans le present etat des coOts dans les 30 jours suivant une demande a cet effet. Si la verification n'est pas effectuee, le mlnistre peut rejeter tout ou une partie des travaux d'evaluatlon present**.

Filing Dlacounta

1. Work filed within two years of completion Is claimed at 100% of the above Total Value of Assessment Credit.

Remises pour depot

1. Les travaux deposes dans les deux ans suivant leur achievement sont rembourses a 100 % de la valeur totale susmentionnee du credit d'evaluatkxi.

2. Work filed three, four or five years after completion Is claimed at 50% of the above Total Value of Assessment Credit. See calculations below:

Total Value of Assessment Credit Total Assessment Claimed

x 0.50 -

2. Les travaux deposes trols, quatre ou cinq ans apres leur achievement sont rembourses a 50 % de la valeur totale du credit d'evaluatlon susmentionne. Voir les calculs cl-dessous.

Valeur totale du credit devaluation Evaluation totale demandeex 0,50 •

Certification Verifying Statement of Costs

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

that as Sghtir_ rrqveci(Recorded HokJ*/. Agent, Politico in

to make this certification

ny)

Attestation de I'etat des coOts

J'atteste par la presente :que les montants indiques sont le plus exact possible et que ces defenses ont ete engagees pour etfectuer les travaux devaluation sur les terrains Indiques dans la formula de rapport de travail ci-joint.

I am authorized Et qu'a tltre de . le suis autorise(Utulalre enregbtr*. reprtesntant, poet* oooup* dans la oompagnto)

a faire cette attestation.

Signature Date9u4,z*toi«« (04A1) Nota : Dans cette formula, torsqu'fl designs des personnel, le masculln eet utIMse au sens neutre.

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DATE

10/9

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