First Year Assessment Report

Of

Prospecting and Geochemical Investigations

On

The Nickel Two Property

License # 15900m

Dashwoods Pond area, Western Newfoundland, NTS Map Sheet 12B/01

By

Roland Quinlan

UTM coordinates of Northeast corner (5325000N: 393500E) NAD 27

Work Conducted March 2009 to March 2010

April 5th , 2010

Table of contents

i Introduction 1 ii Location and Access 2 iii Previous work 3 iv Nfld Geology 4-5 v Regional Geology 6-7 vii Conclusions And Recommendations 8

Illustrations

Fig.1 Location One page Fig.2 Sample location One page Fig.3 NFLD Geology One page Fig.4 Regional Geology One page

Appendices

viii Statement of expenditures One page ix References One page

1

Introduction

The Nickel Two property consists of four claim blocks located in the western portion of the

province on the Island of Newfoundland. They were staked in 2009 to cover a high nickel lake sediment geochemical anomaly. Earlier work further to the east in much the same geological environment had led to the discovery by the author of semi-massive mafic boulders with highly anomalous nickel and copper credits. Subsequent work by the author led to the discovery of similar minerlaization in bedrock and thus the Lucky Moose Property came into existence.

Since the initial discovery the property has been optioned to Benton Resources and Royal Roads Corporation who have conducted a large exploration program. This has led to some additional significant discoveries with nickel and copper values in channels and drill core approaching the three percent combined. The Lucky Moose property has since been renamed the Long Range property but work is continuing on this property with more drilling expected this spring.

The search for nickel on the Island was first initiated by the author in late 2006 and resulted in the Lucky Moose prospect been discovered in early 2007. At the same time it was noted with curiosity that the Nickel Two area was much the same age, with much the same geology and had a much higher lake sediment geochemistry then the Lucky Moose property. Unfortunately at the time the area was staked and no work could be done within the immediate area. It has since come open and was staked in 2009 with the intention of working the property to discover additional nickel mineralization. Work is ongoing to accomplish this.

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Location and Access The Nickel Two property consists of four claim blocks located in the western portion of the

province on the Island of Newfoundland. For mapping purposes the property can be located in the far southwestern portions of NTS map sheet 12B/01.

Access is either by helicopter from Pasadena in the summer months or ski-doo in winter. Access roads originating from the TCH west of Corner Brook come within five kilometers of the property but deep valleys and high ridges have to be navigated to reach the property.

This can be done in the winter with a ski-doo and may be able to be done with quads in the summer months if a number of short trails were cut through small drokes of wooded terrain. There is also the possibility of walking to the property from the end of the access road but working time spent on the property would be minimal.

Topography is rugged with deep valleys and high rounded ridges. Valleys are lake or stream filled and are usually frozen from late November to early April. Access during freeze-up is then good with a ski-doo but prospecting is severely limited due to snow cover.

3

Previous work Although much of the surrounding area has been staked during one time or another, little work

has been done in the immediate area of the Nickel Two property. In 1964 O'Brien Gold Mines had a concession in the area to the south. They also explored for base metals in the Prospectors Pond area, drilling 3 holes totalling 65 m as well as some geophysics. In 1970-71 Noranda Exploration Co. Ltd carried out an Airborne EM survey and Geochemical sampling in their La Poile Concession Area. Regional mapping was completed to the south (Chorlton, 1978) and Southwest (Knight and Chorlton, 1980). Several mining companies worked to the south and east of this area during the mid 1970's. Work in this area continued into the 1980's. Butler and Davenport completed a report on a regional lake sediment survey of the Stephenville Area (12B). Sarberg-Interplan Canada Ltd. carried out an exploration program for uranium in the Big Otter Pond area.

In 1980 Cluff Minerals Exploration worked the area around Eagle Head Pond and Crucifix Lake. The Eagle Head Pond Block is approximately 60 kms due south of Stephenville in the Dashwoods Pond area.

Falconbridge continued this work forming a joint venture with Cluff Minerals. Falconbridge assessed the area by carrying out detailed lake and stream sediment sampling, geological mapping and prospecting. Joan Marie Barry of Falconbridge concluded that the lake sediment survey revealed many moderate Zn, Mo, (Cu) anomalies and recommended further work. It is unknown whether Falconbridge did further work..

Commander Resources from 2006-2008 carried out an extensive uranium exploration program to the far east of the property. Benton Resources to the far south of the property conducted a two-year gold exploration program around the Hope Brook area. Benton Resources also with Royal Roads are currently conducting an exploration program to the far east of the property in a very similar geological environment as the Nickel Two property.

Prospectors and Newfoundland based exploration companies still continue to be active in the larger area.

4

Newfoundland Geology

Taken from Barbour D. and Churchill R., 1999. Tectonostratigraphic setting: The Appalachian Orogen in Newfoundland is composed of four northeast-trending late Precambrian to lower Paleozoic tectonostratigraphic zones. The zones are termed Humber, Dunnage, Gander and Avalon Zones and were classified on the basis of distinct structural, depositional, tectonic and volcanic-plutonic characteristics. Portions of these zones were deformed during the Precambrian Avalonian Orogeny, the middle Ordovician penebscot/Taconic orogeny, the lower to middle Silurian Salinic Orogeny, the Devonian Acadian orogeny, and finally during the Carboniferous Alleghanian Orogeny. The Humber Zone records the development and subsequent destruction of an Atlantic-type passive continental margin on the southeast margin of Laurentia. The Dunnage Zone represents vestiges of the Iapetus Ocean and later accreted island arc systems and melanges. Rocks of the Gander Zone record the development and destruction of a continental margin located in the east of the Iapetus Ocean and possessing Celtic affinities. The rock record of the Avalon Zone relates to either rifting and subsequent opening of the Iapetus during Precambrian times, or to a subduction cycle that predated opening of the Iapetus. The zone was a stable marine platform during Cambro-Ordovician time, characterized by shallow water deposition of platformal carbonates and siliciclastic rocks. With the exception of the Gander-Avalon boundary, malanges and ophiolite complexes characterize the boundaries between the other zones. The Humber-Dunnage boundary is delineated by the Baie Verte - Brompton Line - Long Range Fault system along which ophiolitic slivers such as the Flatwater Pond Complex are found. The Gander River Complex separates the Gander and Avalon Zones. The Avalon-Gander boundary, the Dover Fault - Hermitage Flexure is delineated by subverticle to vertical faults that contain broad zones of ductile deformation. Siesmic data for the Baie Verte - Brompton Line and the Gander River Complex show that these major breaks do not extend to deeper crustal levels reaffirming earlier suggestions that the Dunnage Zone may be allochthonous on Humber and Gander Zone basement rocks. In addition, major structures such as Baie Verte - Brompton Line and Gander River Complex have shallowly dipping geometries consistent with ramp-flat style deformation. Within the Dunnage Zone volcanic, plutonic and sedimentary rocks record the development and eventual destruction of the Iapetus Ocean during the early to middle Paleozoic. The northwestern section of the Dunnage Zone, the Notre Dame Subzone, is underlain by a mixed volcanic-sedimentary package that was intruded by alkalic granitic bodies. The geometry of the Notre Dame Subzone is dominated by a northeast-southwest trending belt of predominantly Ordovician

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aged, arc-related mafic to felsic volcanic rocks and subsidiary volcaniclastic to sedimentary lithologies. The southeastern part of the Dunnage Zone, the Exploits Subzone, is characterized by deep marine sedimentary rocks of Ordovician age and Silurian, shallow marine to fluviatile sedimentary rocks and subaerial volcanic units that have subsequently been intruded by Siluro-Devonian gabbroid and granitoid rocks. The boundary between the Exploits and Notre Dame Subzones is delineated by a late rectilinear fault or fault system termed the Red Indian Line which, in some areas, is manifested as a mylonite zone locally punctuated by intrusions.

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Regional Geology Generally speaking this mineral occurrence lies in the Humber tectonostratigraphic zone of the Appalachian Orogen. Van Berkel et al. 1986, however, has further subdivided the southern Long Range area into at least four distinct terranes separated by tectonic breaks. From northwest to southeast the terranes are the Steel Mountain Terrane, the Central Gneiss Terrane, the Annieopsquotch Terrane and the Rocky Ridge Pond Terrane. The Steel Mountain Terrane is separated from the Central Gneiss Terrane by the Long Range Fault, the Central Gneiss Terrane from the Annieopsquotch Terrane by the Lloyd's River Fault and the Annieopsquotch Terrane from the Rocky Ridge Pond Terrane by the Victoria River Fault. All terranes are cut by a multitude of faults and high strain zones, both ductile and brittle. Faults coinciding with terrane boundaries are major transcurrent faults. Northeast to southwest trending faults and high-strain zones are post-lower Ordovician, however some of the major transcurrent faults like the Long Range Fault may date back as far as the Grenvillian Orogeny (1100 Ma). Van Berkel et al., 1986, suggests that the division between the autochthonous western platform and the allochthonous oceanic rocks to the east is not a line or narrow zone as proposed by Williams and St. Julien (1982), the Baie Verte - Brampton Line, but a wide zone of at least 50 km. Van Berkel et al. 1986, suggests that the zone consists of stacked thrust slices of continental and oceanic/island arc material which spans the width of the Central Gneiss Terrane. This occurrence is hosted by quartzofeldspathic paragneiss (of the Cormacks Lake Complex) which is the oldest geological unit in the Central Gneiss Terrane (late upper Proterozoic). These gneissic rocks are tightly folded, highly metamorphosed and have been intruded by granitic plutons that fall in two broad categories; namely, inclusion-rich foliated hornblende-biotite granite, unit C2, (Van Berkel et al, 1986) and younger leucogranite and or biotite granite to granodiorite which are massive to weakly foliated, unit C6 (Van Berkel et al, 1986) or megacrystic, Unit C7 (Van Berkel et al, 1986) with locally preferentially oriented feldspar megacrysts. Units C6 and C7 are of similar age. The most distinctive units of the Central Gneiss Terrane are thin (3-300 m), highly deformed serpentine layers (Unit C4), locally associated with deformed gabbro (Units C3 and C5) in the paragneisses (Unit C1). The northeastern part of the Central Gneiss Terrane is underlain by weakly deformed gabbro and diabase (Unit C3). These mafic rocks form large northeast striking units intruded by sheets and veins of granite to diorite. Coarse grained gabbro (Unit C3) form bodies throughout the Central Gneiss Terrane, and locally exhibits well developed igneous layering. Zircon dating (Dunning 1985 in a personal communication to Van Berkel) and a K-Ar hornblende date (455 + 65 Ma; R.K. Herd, in Stevens et al., 1982, p. 47) of a gabbro body (Unit 3), at and south of the Burgeo Road (Route 480) 5 km southeast of the Long Range Fault, suggests that some of these mafic plutons may have been emplaced in the uppermost lower Ordovician, although the zircons suggests a complex history. Small diorite-tonalite plutons often containing mafic inclusions, possibly derived from the gabbro-diabase complex, (Unit C3) occur throughout the terrane. Dunning (1985) in a personal communication to Van Berkel, reported obtaining an uppermost lower Ordovician age on zircons from these rocks along

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the Burgeo Road (Route 480), 7.5 km east of the Long Range Fault. A K-Ar determination on hornblende from a deformed tonalite, also along the Burgeo Road but more to the east gave a similar age (455 + 14 Ma; R.K. Herd, in Stevens et al., 1982, p. 46).RegionalGeology *** Taken from Newfoundland Department of Natural Resources website (Mods occurrences)

8

Conclusions

Only very preliminary work has been conducted on the Nickel Two property. A two day trip to the area in early spring was essentially reconnaissance in nature and did little to identify prospective areas within the property. It did however identify a number of different approaches to the property and will be used later this season to plan further exploration.

References Graves, G 1989: First year assessment report on prospecting and geochemical exploration for licence 3198 on claim block 5501 in the Robinsons River and Whale Back Pond areas, Newfoundland. Noranda Exploration Company Limited Unpublished report, 26 pages. [GSB# 012B/01/0308] Reid, W 1981: First year assessment report on geochemical, geophysical and geological surveys for licences 1816-1818 in the Codroy River-Cape Ray area, Newfoundland. Noranda Exploration Company Limited, Atlantic Analytical Services Limited, and Stairs Laboratories Unpublished report, 33 pages. [GSB# 011O/0123] Lassila, P 1981: Report on 1980 investigation for licence 1809 of airborne em anomaly zone 39 on claim block 2508, Newfoundland. Hudsons Bay Oil and Gas Company Limited Unpublished report [GSB# 012A/04/0275] van Berkel, J T, Johnston, H P, and Currie, K L 1987: A preliminary report on the geology of the Southern Long Range, southwest Newfoundland. In Current Research. Mineral Development Division, Department of Mines and Energy, Government of Newfoundland and Labrador Report 87-01, pages 386. [GSB# NFLD/1667]