Block 4 L L Eldorado Township H - Ontario

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iiiff010r"REPORT ONCOMBINED HELICOPTER-BORNEMAGNETIC AND VLF SURVEYSOUTH PORCUPINETIMMINS, ONTARIOffBlock 454Claims5 4 ClaimsEldorado TownshipMlOj f O X r*Hf f JL tJ * *lfilFORTIMMINS NICKEL INC.BYAERODAT LIMITEDSeptember 25,1990InRECEIVEDDEC 18 1990MINING LANDS SECTIONr rffi—J9071Adrians CarbeneGeologist

1mi H li li II IIMf: ttfftPace No.1.INTRODUCTION1-12.SURVEY AREA LOCATION2-13.AIRCRAFT AND EQUIPMENT3.1Aircraft3.2Equipment3.2.1 VLF-EM System3.2.2 Magnetometer System3.23 Magnetic Base Station3.2.4 Altimeter Systemr*1fr-1r 1r010C42A96SEe*ae 2.13775 ELDORADO3.2 .5 Tracking Camera3.2.6 Analog Recorder3.2.7 Digital Recorder3.2.8 Radar Positioning System4.DATA PRESENTATION4.1Base Map4.2Flight Path4.3Magnetics4.3.1 Total Field4.3.2 Vertical Gradient4.4VLF-EM Total 4-3t1APPENDIX I - PersonnelAPPENDIX II - General Interpretive Considerations111r*11rt1

iiList of Maps(Scale 1:10,000)r iBasic Maps: (As described under Appendix B of the Contract)1.PHOTOMOSAIC BASE MAP;Prepared from available photos from the National Photo Library (Ottawa).lp2.FLIGHT LINE MAP;Showing all flight lines and fiducials with the base map.i3.TOTAL FIELD MAGNETIC CONTOURS;Showing magnetic values corrected of all diurnal variation with flight lines, fiducials, andbase map.4.VERTICAL MAGNETIC GRADIENT CONTOURS;Showing magnetic gradient values calculated from the total field magnetics with flightlines, fiducials and base map.5.VLF-EM TOTAL FIELD CONTOURS;Showing VLF total field response from the line transmitter with flight lines, fiducials, andbase map.rlplGrlPll!r"i!——tllii

f1. INTRODUCTIONThis report describes an airborne geophysical survey carried out on behalf of Timmins Nickelr 'jInc.Equipment operated during the survey included a high sensitivity cesium vapourmagnetometer, a two frequency VLF-EM system, a video tracking camera, radar altimeter, andan electronic positioning system. Magnetic and altimeter data were recorded both in digital andanalog forms. Positioning data was stored in digital form, encoded on VHS format video taper"lfand recorded at regular intervals in local UTM coordinates, as well as being marked on the flightpath mosaic by the operator while in flightThe survey areas are located near South Porcupine, Ontario, and are referred to as Block l Block 7 inclusive. Blocks l, 2 and 3 were flown on September 3, 1990. Block 4 was flown onSeptember 4,1990. Block S was flown on September 5,1990. Block 6 was flown on September l8, 1990, and Block 7 was flown on September 7, 1990. Data from twelve flights were used tocompile the survey results. The flight lines were oriented at an angle of 90 degrees, with ar—"jnominal line spacing of 100 metres (according to Appendix "A" of the contract) for Blocks 2, 5 and Block 6. Blocks l, 3 and 7 were oriented at an angle of O degrees, with a nominal linelspacing of 100 metres (according to Appendix "A" of the contract). Block 4 consisted of bi-Idirectional flight lines, a detailed area oriented at an angle of O degrees, with a nominal liner-spacing of 50 metres, while the remaining areas of Block 4 was oriented at 90 degrees with anominal line spacing of 100 metres (according to Appendix "A" of the contract). GeophysicallVlinformation is provided in the form of maps at 1:10,000. Coverage and data quality were

lr-considered to be well within the specifications described in the service contract.lThe purpose of the survey was to record airborne geophysical data over ground that is of interestto Timmins Nickel Inc.IttThe survey encompasses approximately 1100 line kilometres of the recorded data that werePcompiled in a map form at a scale of 1:10,000. The maps are presented as part of this reportrlft—lllliiiir—according to specifications laid out by Timmins Nickel Inc.

iiiif2-12. SURVEY AREA LOCATIONThe survey areas are depicted on the following index maps.i 'mBlock l is centred at approximate geographic latitude 48 degrees 22 minutes North, longitude 81Cdegrees 01 minutes West.Block 2 is centred at approximate geographic latitude 48 degrees 19 minutes North, longitude 81gdegrees 01 minutes West.SmBlock 3 is centred at approximate geographic latitude 48 degrees 18 minutes North, longitude 81degrees 04 minutes West.QBlock 4 is centred at approximate geographic latitude 48 degrees 20 minutes North, longitude 81fdegrees 10 minutes West.Block 5 is centred at approximate geographic latitude 48 degrees 10 minutes North, longitude 81ldegrees 14 minutes West.mBlock 6 is centred at approximate geographic latitude 48 degrees 07 minutes North, longitude 81,-,degrees 14 minutes West.iiii!——Block 7 is centred at approximate geographic latitude 48 degrees 41 minutes North, longitude 82degrees 8 minutes West.

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ifl! l 34971113498 j 1113499II13503III 3502 i III350Ii II 1350011 135041113505 i 1113506l l 1113509)1113508i1113522 l 1113525III35I7 ' III35IB l 1113521---J---J---H----INI35I9 l 1113520 l 1113523 i 1113524,113457HI3458i I M34591113526 1113529 l 1113530 1113533 1113534llll1113527 j 1113528 l 1113531 III3532il—————j———— j- ———1113462II l 3460 Illl346ll1113467 i 111346611134681113465 .1113464 l IM3463III347I11134701113469T'll1113475 lIIII3474 j III3473 1113472ll lFIGURE EL- 2ELDORADO TWP. PROPERTY1/41/2 mileCLAIM MAP

lllllllllllllllllllBlock 454 ClaimsEldorado TownshipPPPPPPPPPPPPPPPPPPP1 1 1 34571 1 1 34581 1 1 34591 1 1 34601 1 1 34611 1 1 34621 1 134631 1 1 34641 1 1 34651 1 1 34661 1 1 34671 1 1 34681 1 1 34691 1 1 34701 1 1 34711 1 1 34721 1 1 34731 1 1 34741 1 1 3475PPPPPPPP111111111 1 34971 1 34981 1 34991 1 35001 1 35011 1 35021 1 35031 1 11353311135341113535

lllllllPROPERTY LOCATION AND ACCESSTheEldoradoTownshipnorthwestern part ofproperty(BlockEldorado ast of the city of Timmins, Ontario.The property is comprised of 54 contiguous unpatented mining claimsand is wholly-owned by TNI.Regionally, the Eldorado claim group is situated on the southernlimb of the Shaw Township Dome and adjoins the Redstone propertylto the southeast.Access to the property can be gained by all-weather gravel roadlfrom South Porcupine to the Langmuir deposit in Langmuir Township.From the southeast corner of Shaw Township, the road splits andfcontinues south along the eastern half of Eldorado Township to theRedstone property.Secondary bush roads provide direct access tothe south of the Eldorado property.lllllll

lll3-1rfp3. AIRCRAFT AND EQUIPMENT3.1Aircraft"An Aerospatiale A-Star 350 B helicopter, (C-GYHT), piloted by Roger Morrow, ownedli 'and operated by Peace Helicopters Limited, was used for the survey. Pierre Moisan of PAerodat acted as navigator and equipment operator. Installation of the geophysical andancillary equipment was carried out by Aerodat The survey equipment was flown at ar-mean terrain clearance of 60 metres. ir n11 P3.2Equipment3.2.1 VLF-EM SystemThe VLF-EM System was a Herz Totem 2 A. This instrument measures the totalfield and quadrature component of the selected frequency. The sensor was towedin a bird 30 metres below the helicopter.l f I3.2.2 Magnetometer Systemr!r j- llllThe magnetometer employed a Scintrex Model VIW 2321 H8 cesium, opticallypumped magnetometer sensor. The sensitivity of this instrument was 0.1nanoTeslas. The sensor was towed in a bird 30 metres below the helicopter.

iir-1lr*ff3.23 Magnetic Base StationAn IFG proton precession magnetometer was operated at the base of operationsto record diurnal variations of the earth's magnetic field. The clock of the basestation was synchronized with that of the airborne system to facilitate latercorrelation.3.2.4 Altimeter SystemA King KRA 10 radar altimeter was used to record terrain clearance. The outputfrom the instrument is a linear function of altitude for maximum accuracy.mtr—-3.2.5 Tracking CameraA Panasonic video flight path recording system was used to record the flight pathon standard VHS format video tapes. The system was operated in continuousMmode and the flight number, real time and manual fiducials were registered on theipicture frame for cross-reference to the analog and digital data. rr-r ll

llllllrlllllllllllll3.33.2.6 Analog RecorderAn RMS dot-Matrix recorder was used to display the data during the survey. Inaddition to manual and time fiducials, the following data was recorded:ChannelInputScaleVLTVLF-EM Total Field, Line25 %/cmVLQVLF-EM Quadrature, Line25 %/cmVOTVLF-EM Total Field, Ortho25 %/cmVOQVLF-EM Quadrature, Ortho25 %/cmRALTRadar Altimeter100 ftjcmMAGFMagnetometer, fine25 nT/cmMAGCMagnetometer, coarse250 nT/cm3.2.7 Digital RecorderA DGR 33:16 data system recorded the survey on magnetic tape. Informationrecorded was as follows:EquipmentRecording IntervalVLF-EM0.20 secondsMagnetometer0.20 secondsAltimeter0.20 secondsNav System0.20 seconds

3-4r—t3.2.8 Radar Positioning SystemA Mini-Ranger MRS-lil radar navigation system was used for both navigation andflight path recovery. Transponders sited at fixed locations were interrogatedseveral times per second and the ranges from these points to the helicopter were r jmeasured to a high degree of accuracy. A navigational computer triangulated theBHposition of the helicopter and provided the pilot with navigation information. Therange/range data was recorded on magnetic tape for subsequent flight pathmlJ Ir iffrii—irrdetermination.

l4.1liiiH4. DATA PRESENTATION4.1Base MapA photomosaic base map at a scale of 1:10,000 was prepared from available photos fromthe National Photo Library (Ottawa).4.2Flight Path MapiThe flight path was derived from the Mini-Ranger radar positioning system. The distanceCsecond and the position of the helicopter was calculated by triangulation. It is estimatedithat the flight path is generally accurate to about 10 metres with respect to thefrom the helicopter to two established reference locations was measured several times pertopographic detail on the base map.lThe flight lines have the time and the navigator's manual fiducials for cross reference toiboth analog and digital data.iin4.3Magnetics4.3.1 Total Field Magnetic Contours MapflThe magnetic data from the high sensitivity cesium magnetometer providedr virtually a continuous magnetic reading when recording at 0.2 second intervals.*The system is also noise free for all practical purposes.r*1lr l

ii .iA sensitivity of 0.1 nanoTesla (nT) allows for the mapping of very smallinflections in the magnetic field, resulting in a contour map that is equal to orH,lexceeds ground data in quality and accuracy. The aeromagnetic data was corrected for diurnal variations by adjustment with theldigitally recorded base station magnetic values. No correction for regionalr variation was applied. The corrected data was interpolated onto a regular grid ata 25 metre true scale interval using an Akima spline technique. This gridprovided the basis for threading the presented contours at a 2 nT interval.The contoured aeromagnetic data has been presented on a Cronaflex copy of theibase map with flight lines.l4.3.2 Vertical Gradient Contour MapThe vertical magnetic gradient was calculated from the total field magnetic data.Contoured at a 0.2 Nt/m interval, the data was presented on a cronaflex copy ofmthe base map with flight lines.ll4.4VLF-EM Total Field Contoursr-The VLF data was interpolated onto a regular grid at a 25 metre true scale interval using*i I;an Akima spline technique. This grid provided the basis for threading the contours at air lIVo interval,

llirlii—l4 -3mThe VLF-EM signal from the line transmitting station was compiled as contours in mapform on cronaflex copies of the base map with flight lines.The VLF stations used for Blocks l, 2, 3 6 and 7 were NAA, Cutler Maine, broadcastingat 24.0 Khz, and NSS, Annapolis, Md., broadcasting at 21.4 kHz. NAA was used as theFline transmitting station for Blocks l, 3, 6 and 7. NSS was used as the orthogonal station'for Blocks l, 3, 6 and 7. NSS was used as the line transmitting station for Block 2 andlr-NAA was used as the orthogonal station.*The VLF stations used for Blocks 4 and 5 were NLK, Seattle, Washington, broadcastinglat 24.8 kHz, and NAA, Cutler, Maine, broadcasting at 24.0 kHz. NLK was used as thegline transmitting station for Blocks 4 and 5 and NAA was used as the orthogonal station.ipJRespectfully submitted,lplj—lii—iiiSeptember 24, 1990Adriana CarbeneGeologist

lAPPENDIX IiiiiiiiiiiiiiiiiPERSONNELFIELDFlownSeptember, 1990PilotRoger MorrowOperatorPierre MoisanOFFICEProcessingA. CarbeneG. McDonaldReportA. Carbene

lAPPENDIX II0gGENERAL INTERPRETIVE CONSIDERATIONS-l iMagneticsffA digital base station magnetometer was used to detect fluctuations in the magnetic field duringlThe Calculated Vertical Gradient map shows contours of the magnetic gradient as calculated from—Flthe total field magnetic data. The zero contour shows changes in the magnetic lithologies andf.rmflight times. The airborne magnetic data was levelled by removing these diurnal changes. TheTotal Field Magnetic map shows the levelled magnetic contours, uncorrected for regionalvariation.will coincide closely with geologic contacts assuming a steeply dipping interface. Thus this datamay be used as a pseudo-geologic map.r VLF ElectromagneticsThe VLF-EM method employs the radiation from powerful military radio transmitters as thelr—primary signals. The magnetic field associated with the primary field is elliptically polarized inj-the vicinity of electrical conductors. iThe Herz Totem uses three coils in the X, Y, Zlconfiguration to measure the total field and vertical quadrature component of the polarizationBellipse.i*The relatively high frequency of VLF (15-25) kHz provides high response factors for bodies ofRlow conductance. Relatively "disconnected" sulphide ores have been found to producerr

l, tlmeasurable VLF signals. For the same reason, poor conductors such as shearedlcontacts, breccia zones, narrow faults, alteration zones and porous flow tops normallyr-produce VLF anomalies. The method can therefore be used effectively for geological mapping.BThe only relative disadvantage of the method lies in its sensitivity to conductive overburden. Inlconductive ground to depth of exploration is severely limited.rr-The effect of strike direction is important in the sense of the relation of the conductor axislrelative to the energizing electromagnetic field. A conductor aligned along a radius drawn from a transmitting station will be in a maximum coupled orientation and thereby produce a stronger response than a similar conductor at a different strike angle. Theoretically, it would be possiblelfor a conductor, oriented tangentially to the transmitter to produce no signal. The most obvioustBeffect of the strike angle consideration is that conductors favourably oriented with respect to the transmitter location and also near perpendicular to thelflight direction are most clearly rendered and usually dominate the map presentation.inThe total field response is an indicator of the existence and position of a conductivity anomaly,lThe response will be a maximum over the conductor, without any special filtering, and stronglylfavour the upper edge of the conductor even in the case of a relatively shallow dip.*The vertical quadrature component over steeply dipping sheet-like conductor will be a cross-overltype response with the cross-over closely associated with the upper edge of the conductor.li

ll-3-lThe response is a cross-over type due to the fact that it is the vertical rather than total field jrl*r—Br quadrature component that is measured. The response shape is due largely to geometrical ratherthan conductivity considerations and the distance between the maximum and minimum on eitherside of the cross-over is related to target depth. For a given target geometry, the larger thisdistance the greater the depth.IThe amplitude of the quadrature response, as opposed to shape is function of target conductance—Pand depth as well as the conductivity of the overburden and host rock. As the primary field travels down to the conductor through conductive material it is both attenuated and phase shiftedgin a negative sense. The secondary field produced by thisaltered field at the target also has an jassociated phase shift. This phase shift is positive and is larger for relatively poor conductors. This secondary field is attenuated and phaselshifted in a negative sense during return travel to the surface. The net effect of these 3 phasemshifts determine the phase of the secondary field sensed at the receiver.VA relatively poor conductor in resistive ground will yield a net positive phase shift A relativelyMgood conductor in more conductive ground will yield a net negative phase shift. A combination— llris possible whereby the net phase shift is zero and the response is purely in-phase with noquadrature component.

i-4-lr"lA net positive phase shift combined with the geometrical cross-over shape will lead to a positiver-quadrature response on the side of approach and a negative on the side of departure. A net negative phase shift would produce the reverse. A further sign reversal occurslwith a 180 degree change in instrument orientation as occurs on reciprocal line headings. Duringidigital processing of the quadrature data for map presentation this is corrected for by normalizingli."—tr liiiiiithe sign to one of the flight line headings.

APPENDIX IICERTIFICATE OF QUALIFICATIONSI, Adriana Carbone, certify that:1.I hold a B.Sc., in Geological Sciences from the University of Windsor, Qntario.2.I reside at 2041 Banbury Crescent, in the Town of Oakville, Ontario.3.I have been engaged in a professional role in the minerals industry in Canada for the pastthree yean. I have been employed by Aerodat Limited since May 1990, find I currentlyhold a position as a Geologist4.I have been a member of the Prospectors' and Developers' Association since 1987.5.The accompanying repon was prepared from a review of the proprietary airbornegeophysical survey flown by Aerodat Limited for Timmins Nickel. I havenot personally visited the property.6.I have no interest, direct or indirect, in the property described nor do I hold securities inTimmins Nickel.Signed,Mississauga, OntarioFebruary 14, 1991Adriana CarboneGeologist

42A*6seaeea z . i 3775 ELDORADO900

OntarioMinistry olirthern DevelopmentMine*DOCUMENT Ho.W 9006*(Report of Work(Geophysical, Geological and Geochemical Surveys)Mining Acts* /.*T\ f*-/*Instruction* /X (Z C* . fcV-.jf. Please type or print.Reler to Section 77. tie Mining Art tor Msessrneotiafrk requirement*and maximum credits atowed per survey type.H number of mining claim* traversed exceeds apace on IN* term,attach a Msl.- Technical Reports and map* In duplicate should be submitted toMining Lands Section. Mineral Development and Lands Branch:Townshi or AreaMining DivisionTypeolSurveyls)fe/fMlr'5 1* tProspector's Licence No.tjecordedtjolder(s)Recorded' ///G L-J(J/Telephone No.367- 1515AddressSurvey CompanyDate of Survey (from ft to)Name and Addioss ol Author (ol Geo-Technical Report)OASTCredits Requested per Each Claim in Columns at rightSpecial Provision*Days perClaimGeophysicalFor first survey.i 58tmf 5 fGeologicalMan Day*LO1 .Days perClaimGeophysicalComplete reverse side andfaEft" IRagnelomelerGeologicalDays perClaimAirborne Credits97)h 3 5 o/utlin s//i 113 5f 7}nW1M3/J/ S*-/Vi 15 n523HIL&1&Electromagnetic*y QMagnetometerOtherunfitniv'NumberM'1 MINING LANDS S Sfi&QNc-iNote: Special provisionscredits do nolapply to AirborneSurveys. Ill 11 75//ill J?tt 34 ISrt -OtheriTotal miles flown over claim(s).jitntl1 1.- ElectromagneticJNumberPreflilMining ClaimPrefixPGeochemicalDaleNumberPrefix- Other.Enter 20 days (lor each)l-7*\*f 7V l [fry l 'MoMining ClaimMining Claim- MagnetometerFor each additional survey:using the same grid:l7MoMining Claims Traversed (dist in numerical sequence)'- ElectromagneticEnter 40 days. (This includesline cutting)HOfayRtcordetplolder or Agenl (Signature)M 3*1 7 ZJ// 3i 73Total number olmining claims coveredby this report ol work.Certification Verifying RcpofC of V\4erksame during and/orset loth In this Report ol Work, having pet formed Ihe work or witnessedl hereby certify thai l have a personal and mtimale knowledge ol the (actstrue.isafter its completion and annexed reportName apd Address ot Person Certilying.cSrtlllur-ay (Slgnabrie)For Office Use. OnlyOCT25B!(1 W 2 5 1990rovincial Manager. Mining Lends1362 iW/00)

vi

THE TOWNSHIPOFShaw Tp. - M.3IIELDORADO- ;— -DISTRICT OFTIMISKAMING2.13 775P.III360* ,P.II(360*lHI*.P.1113833 JPJII3B34---- **'""PORCUPINEMINING DjVISION1 V !SCALE: 1-INCH-4O CHAINS—— .---. ------,-- . —— -----i. ---------- PJJI5SUIP.IH5S20P.M3B25 P.III3ftS2 IP.IIISflBSP.W5B24 JPJU3B27 ( P.I1I382*j i -i/1. i r.i,:.4 L--LJ.*JH14B* .PJH34S*LEGEND!PJU34CO., .PJII34IB 1P.IH3484 JP.III348SP.HI1470 Ip.lll347l1*097* lp.880878 P.880B71014290IPJ054238 IPJOS42M r """" " ""112 M103422* 1 10 3 4231 l. --.- -/T P-A;-- -.J .i.-Ji . ————L——— . ———.———V:IPC" *—t——— ""—T1034223 1034232 W34233PJOS4240 li'-J.---J.--- . J - .IIKOS8 iOJA(PJJI6QBI(P.IIH052 i*Q.HIMHPATENTEDLANDCROWN LAND SALELEASESLOCATED LANDLICENSE OF OCCUPATIONMINING RIGHTS ONLYSURFACE RIGHTS ONLYROADSIMPROVED ROADSKINO'SHIGHWAYSRAILWAYSPOWER LINESMARSHOR MUSKGQMINES1-J F —————]————.4.————— i————— -,-l'*---*- (P. P. 0740l3'PJ0740l*i* in -**-*1074008''07BX41 J I OT4414)OI63M P.(P10*134*(107443* j I07443Z l W73275h'10*001* 1)0*0018—— — — -.TlOTM*-IIOM -,KmEa*coc.CANCELLEDPATENTEDeS R 0.NOTES400* Surfoce Rights Reiervotion hore* of oil la k 11 and river*.olong tinThis township Iles within tha Municipality of CITYof TIMMINS10*0014 110*0013SAND and GRAVEL,l*0eftl10*0550 (0905471090346(g)GRAVEL, f (LI 1 *22*7fa8 NAVCL, PlLl'--- J--— u.--- ——— I---1090549 j 1090548 110*004B ] 1010844II- -I09MP, 1113427 IP.IU34HIp.lll342* TJ J————— \———— -\- ———— ————P.III407IP.IH4070 (P.HI408* . P. M408* .P.HI343I.i'lCMJCKI JMLIMI1IPPENOIN* APPLICATION UNDIH THI PUftLICLANDS ACT Stt.O VnTHMAWNDUCK* UNLIMITED--PENOlh* APPLICATION UNOU THf PUBLICLAHOI ACT S.M.O. WlTHMAWNTHE INFORMATIONAPPEARS ON THISHAS BEENFROM VARIOUSftNO ACCURACY IS3UARANTEEDWISHING TO STAKE MNIMG ri AIMS CLHOIII n o )N*-.II4QMPLAN NO.REGNOI"tt*hitDouglas Tp. - M. 27442A06SE0080 2.13775 ELDORADO P.II40*S''lbuLOITIONlp.1114014200. 2 76MINISTRY OFNAFURAL RESOURCESONTARIO

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fe ' fecf i1 : lGradientPat hAERODAT LIMITEDTIMMINS NICKELBLOCK 4SEPTEMBER 1990CALCULATED VERTICAL MAGNETIC GRADIENTTIMMINS NICKELVer t l ea lFI lght

C degrees 01 minutes West. Block 2 is centred at approximate geographic latitude 48 degrees 19 minutes North, longitude 81 g degrees 01 minutes West. Sm Block 3 is centred at approximate geographic latitude 48 degrees 18 minutes North, longitude 81 degrees 04 minutes West. Q Block 4 is centred at approximate geographic latitude 48 degrees 20 .

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