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4tl05NWeee7 PORTERaSAI VERNON 010

Report on

Turpeinen Option, Porter -'c Vernon Townships

District of Sudbury, Ontario

for

FKHCO HINE3 LIMITED

by

A. ?. Griffis, P.Eng,****Hl*~ti*H*Ut*J*

April l,

2-

^ .o ttineralized quartz veins and stingers strike southeast and dip ,

55 northeast. They are considered to be related to faulting that oroeses the property south of the showings.

.iurface trenches indicate a length of 100' and a width of 32', without delimiting mineralization. Drilling indicates that the true thick^ ness of the sulphide-carrying quartz IB about 8*. Gnnll bulk samples from surface trenchea averaged.39# Gu. 1.6^. Pb and 2.U3 oz. silver per ton. Three short drill holes confirm the presence of copper, lead and silver in the sulphides below the trenchns and continuation of drilling is re commended.

INTRODUCTION

This report is based on a visit to the property on March 29th anu 30th, 19&3. In addition, an earlier report dated December 13th, by H. D. Lawrence has been consulted in the preparation of this report.

Although there was considerable snow cover, nome rock was ex posed on the trenchea, which were examined and Holes 3#2,3,and k were log,,ed and yanpled. Hole Sri had been sampled by I'r. Lawrence.

PROPERTY

The property consists of 15 contiguous unpatented raining claims in Porter aivi /ernon Townships, Sudbury Mining Division, Ontario. These claim:! have been optioned by Ferco Mines Limited fr'.:i V/m. Turpeinen and are in c OO(i n turn! in,;. Clains in Porter Township are 3-117170 to 117177 inclusive, J-117233 to 117235 inclusive and 3-11723'v and 117215. Claims in Vernon Tovr.nhip are 0-117178 and 117179.

The properly in located ^0 miles west of Sudbury and 12 miles due north oT Xsp:--.nolft, Ontario. Access is by Jeep in the sunsr-ier or air craft in the winter.

Li&ht aircraft can use Big 'Jwan Lake two miles nouth of the property or, at tirr.en, Porter T^ike three 'niles to tlie east.

A road can 'e taken fror; Espanola on No. 17 Highway and followed norf'. to Ai;new Ir.ko by autor.'iobile. A bont nuat then be takwn two niles acrocf! the lake. A Vui'.h road car. thnn be travelled vy Jeep, a distanceo t'-n miles to Portt-r Lake, and from thore a road hr.p Veen cut threer.ilca woat northwest to the property. This sarae trip nay Ve nade by tractor during the winter.

During the period of active exploration for uranium at the time of the lilind Hiver rush, Porter Township was almost completely staked, and several companies did work in the area. Ho significant finds were made and subsequently moot claii.s v/ere allowed to lapse.

Recently the Optionor and hio partners began trenching through overburden around a small sulphide bearing outcrop. The initial samples from this trenching returned good silver assays, at which time Ferco became interested in the prospect.

;V. ' ,,' ' . -3- - - . ' '. - ; - :gSOLQGY

Porter Township has been mapped at a neale of l rt * 1000' by the Ontario Department of Xines. This work has beon issued by the department an Geological Iteport Mo. 5, Map #2011. Extensive outcrops permit good interpretation of the general geology.

The area is underlain by rockn of Precambrian age which have been divided into three? groups - volcanics, intrusives and sediments. It is thought that the oedimentn unconforraably overlie the older volcan]co and granite intrusives.

Tho property is underlain chiefly by sediments, which forra the oast limb of the "Shiner" syncline. These rocks range froro quartzite to greywacke in composition. Numerous narrow dykos of gabbro cut the large granite mass on the east side of the property, and some of these also cut through the overlying sediments. Sulphide mineralization may be associated with this late intrusion.

A oerieo of faults and shears cross the property in a direction slightly north of west, and may be important in the localization of ore- boariny structure*?.

MINERALIZATION

A zone of sulphide-bearing, quartz vein:* and stringers has been exposed by trenching on the south part of claims 3-117171 anii 3-117172. This z on* strikes ;j'f5 0 v ani dips steeply to the northeast at about 55. The host rock for the veins is a schistose greywacke, probably interbedded in quartzite,and striking nore or less parallel to subsidiary shear fault ing on the south.

Mineralization in the veins connita of quartz, pyrrhotite, pyrite, chalcopyrite, galena, and sraall amounts of sphalerite. Silver has been in dicated on a o nay and truc*;o of cobalt and nickel have also " o en found.

Three nain trenches have been dug across tiie zone. The !*'o.2, or E.uin trench, hun been rioat extennively sampled and has exposed n width of 32'. Two fjets of Murfttce chip anniples, taken some months a^o, annayed: (l) an aver;-. ;e of 6.9 oz. of .silver across 32' and (2) an average of 8.5 oz. of silver per ton, U.9'/- I'b and 0.38^- Cu across 25'. Following 'this seven small bulk fjj-.r.plen were tiiken nt surface. Thene averaged .391,. Cu, 1.6'i.' Pb and 2.^3 Qs. nilvor per ton. Although high values have been obtained in se lected naraplen reported above are considered to be representative.

of Drill S!ole Intersections

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In this examination split cores were sampled from Holes S ?2, Se y. One portion of the core had been transferred with split halve? arranged in correspond i r* g sectionn in two core boxen so thnt in moot cases each side of the split could he examined. All the core was carefully examined for miner al content. "Airing this examination native silver was found in the fines of tht? sanple portion of the core. No native silver way observed in the core and thn yilver is definitely considered to be erratic or"secondary" and not representative of the cored material . Therefore, the Sxidbury Assay Office, where the samples were analyzied, was instructed to wash and screen all-i" material froui the samples and to examine the fines for native silver. The The fines were weighed and assayed for comparison with the +3 1' material. This treatment of the samples undoubtedly means some loos of values in the fines, but it docs prevent misleading high assays in silver from being re ported. The assays given in the report for S"2 and J are for the washed, screened +S" material.

CON'CLUJIOKS

Drilling confirms the presence of values in copper, lead and silver along part or the quartz vein zone. These values are below ore ^rade and have an indicated true thickner-.o of r; b on t 8',

The cone i:; related to a f aul * rupture of possible interest, and it is considered that the Vest chance c vling minable tonnages of ore grade a re t o the nontenant on Claim ll?j.'. ,, , near the junction of the vein

nnd faulting with ^ rani t e and gabbro.

1.

2.

Carry out a r-ia^ueto'-ieter r.urvey for at leant 1^000 ' to the southeast. on fitriko to look for magnetic highn in the vicinity of the faults. A continued drill program totalling 600' is recorr.nended. All holes

to be drilled fro:-, the northeast side to c normal intersections.a i ur.e .,ole to the northwest to cut 100' from the intersection in 33.b Two holoj? ut 100' intervals southeast of TA,c, An exploratory holo to the southeast, if a magnetic anomaly is

found.3. Leave all the ecivs from drilling for log ;ing, upl

by the exa::iing engineer^in^ and sampling

Reapectfully submitted,

Toronto, Ontario. April l, 1963.

To Accompany Report

A. T. Griffis, Ph. D., P. ling.

Plan of Surface Trenches and Diamond Drilling l" s 20' General Geological top of the Property, l" ~ 1 000' Logs of Drill liolen 3|2, - : 3 and ?7'*.

"

W," CB3TIPJCATS

I, Arthur Thor.as Griffie, of the city of Toronto, state:1. That J ar. a geologist and reside at 09 Oriole Parkway,

Toron ) 7* Ontario.

2. That I aw a registered Professional Engineer in the Pro vince of Ontario.

3. That I graduated frora the University of Toronto in 193^ with the degree of Bachelor of Arts and in 1937 with the degree of Master of Arto, and from Cornell University in 1939 with the degree of Doctor of Philosophy.

k. That I have been engaged in geological work continuously for 27 years.

5. That I do not have, nor do I expect to receive, either directly or indirectly any interest in the property or securities of Ferco Kines Limited.

6. That the f)regoing report is based on a study of reports and records as supplied to un, on ray knowledge of the property as stated in the report, and a general knowledge of the area.

.

-"-'^ :,

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Toronto, Ontario. this J* t h day ofApril,l963.

A.T. Griffin, Ph. D.

a

4lie5NWe007 PORTERS3AI VERNON

no. i TO THE PROOPBCWS orFERCO MUTES LIMITED

The following amendments are made to the Prospectus Limited dated March 22nd, 1962:-

1. The head office of the Company is ney located at Suite 911, 159 Bay Street, Toronto, Ontario. \

6. 8. 9.

12.

rie4.This item is amended to reflect the married, name of the Secretary Treasurer and change of address as follows!-^-... , -

Florence Mae Wherry, kk Dunfield A ve., Toronto, Ontario.

These items are amended to reflect the issue of a further 200,000 shares, being 100,000 each at 2ty and 25^, making a total of 700,003 shares issued, outstanding and fully paid.

The folloving paragraphs are added to this item:*

(l) The Company holds an option to purchase fifteen ' j) unpatented mining claims located in the Townships of Porter and vernon, Province of Ontario, more particularly described as claim NOB. S. 117170 to 7 inclusive; S. 117233 to 35 inclusive, 8.11721U and S. 117215; 8.117178 and 6.117179.

(ii) By Agreement dated October 31* 1962, the Company received from William Turpeinen, Worthington, Ontario, an option to purchase the claims referred to above for the total consideration of | 50, 000. 00 and 130,000 shares of the capital stock of the Company, which money shall be paid and the said shares allotted and issued as follows ;-

(a) The sum of One thousand dollars (^1, 000. 00) by November 15th, 1962, which has been paid;

(b) The sum of Two thousand dollars (^2,000.00) by December 15th, l 962 J (see extension agreement hereinafter referred to)

(c) The sum of Five thousand dollars (15,000.00) on or before May Ut, 19&3;

(d) The sum of Ten thousand dollars (|10,000.00) on or before December 15th, 1963 i

(e) The sum of Ten thousand dollars f ̂ 10, 000. 00) on or before June 15th, 1961*} and 65,000 fully paid and non-assessable shares of the capital stock of the Company to be issued November l6th,

(f) The sum of Ten thousand dollars (^10,000. 00) on or before December 15th, 1 96** ; and

(g) The sum of Twelve thousand dollars (^12,000.00) on or before March 15th, 1965; and 65,000 fully paid and non-assessable shares of the capital stock of the Company t

By Amending Agreement dated January 5th, 1963, in consideration of the payment of ^ 500. 00, the Company received an extension so that the payment due December 15th, 1962, is now payable by June 1st, 1963 and all subsequent payments extended for the same length of time.

FERCO MINES LTD AMBfDMDfT NO. l 2 -

12.

13-

15-

(ii) cont'd

Ten percent (10#) of the shares issued in connection vith this option will be issued aa free shares and the balance placed in escrow oubject to release pro rata on the vritten consent of the Ontario Securities Commission and the Board of Directors of the Company and subject to transfer, hypothecation or any other alienation vithin the escrov on the vritten consent of the Ontario Securities Commission.

(iii) The following persons will receive more than 5^ interest in the consideration to be received and received by William Turpeinenj-

W. Allenen T. Tonuaenen 8. Oriooel]

all of Worthington, Ontario.

The following is added to this iteo:-

For particulars as to the Company's properties in the Townships of Porter and Vernon, including history, means of access thereto, character, extent and condition of surface and underground explora tion and development and work done by the present management refer ence is made to the engineer's report by Ross D. Lawrence, P.Eng., dated December 13th, 1962, accompanying and forming part of this Prospectus.

Th4 following paragraph is added to this item:-

By Agreement dated March 20th, 1963i the Company granted to the Underwriter, Davidson fc Company, 25 Adelaide Street West, Toronto, acting on behalf of Assembly Mines Limited, Suite 911, 159 Bay Street, Toronto, a three month extension on all outstanding option payments under the current Underwriting and Option Agreement dated December 15th, 19&1, a* amended by Agreement dated November 28th,1962. so that the payment due January 29th, 19&3, covering 50,000 charco at 5ty per share, shall become due and payable by April 29th,1963. ejid the balance of the options will be payable as follows: 50,000 at 5ty by July 29th, 1963, and 100,000 at 75^ by September 29th, 1963.

The following is added to this item:-

The Company intends to expand part of the proceeds received from the sale of Its shares in the exercise of the option to acquire the claims in Porter and Vernon Townships as hereinbefore referred to and to perform work thereon as recommended in the report of ROBS D. Lawrence, P.Eng., referred to in item 13* hereof.

The foregoing, together the Company's Prospectus dated March 22nd, 1962, constitutes full, true and plain disclosure of all material facts In respect of the offering of securities referred to above as required under Section 38 of The Securities Act (Ontario)

fr*

m

FZRCO MIKES LTDAMENDMENT NO* l - 3 *

22, cont'd

and there is no further material information applicable other than in the financial statement or reports where required.

DATED this 20th day of March, 1963.

DIRECTORS

Murray Watts E. Blanchardby his Attorney P.M. Wherry by his Attorney P.M. Wherry

P. M. Wherry

PROMOTER

ASSEMBLY MINES LIMITED

Per: F. M. Wherry

23- To the best of our knowledge, information and belief, the foregoing, together with the Company's prospectus dated March 22nd, 19&, constitutes full, true and plain disclosure of all material facts in respect of the offering of securities referred to above as required by Section 38 o* The Securities Act (Ontario) and there ifl no further material information applicable other than in the financial statement or reports where required. In respect of matters which are not within our knowledge we have relied upon the accuracy and adequacy of the foregoing.

s i UNDERWRITER-OPTIONEE-f

DAVIDSON 4 COMPANY

Per: J. C. Labbatt

fa-

411esNweeer pORTERasAi VERNON 030

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FERCO MINES LIMITED

PORTER AND VERNON TOWNSHIPS

ONTARIO

SUMMARY

A mineralized sheared zone in greywacke has been exposed in several trenches and pits across widths up to 32 feet along a length of 110 feet. The zone is along a contact with gabbro and the mineralization seems to be associa ted with this basic intrusive.

Large samples returned assays less than the Initial chip samples, but values throughout the zone are consistent enough to warrant several, shallow drill holes to accurately aosess the mineralization and to test for further width under the deep overburden.

INTRODUCTION

Recent heavy snow falls and the difficulty of crossing Agnew Lake by boat during this freeze-up period made a personal examination of the ground at this time unwarranted. This report is, therefore, based upon discussions with the management of Ferco Mines Limited and an examination of their records, which include sketches of the work done and assay certificates from the Sudbury Assay Office and Ontario Department of Mines. The Ontario Department of Mines Geological Report No. 5 and map at one inch equals one thousand feet covering Porter Township was also studied.

PROPERTY

The property consists of 15 contiguous unpatented mining claims in Porter and Vernon Townships, Sudbury Mining Division, Ontario. These claims have been optioned by Ferco Mines Limited from William Turpeinen and are in good standing.

Porter Township

Vernon Township

LOCATION AND ACCESS

8-117170 - 117177* inclusive 3-117233 - 117235i inclusive S-117211* - 117215

S-117173 - 117179

The property is located 12 miles due north of Espanola, Ontario. Access is gained by jeep or aircraft.

Light aircraft can use Big Swan Lake, two miles south of the property.

A road can be taken from Nairn on No. 17 Highway and followed north to Agnew Lake by automobile. A boat must then bo taken two miles across the lake. A bush rood can then be navigated by jeep a distance of 10 miles to Porter Lake. From here a road has been cut three miles west-north-west to the property.

HISTORY

During the period of active exploration for uranium following the Blind River discoveries, Porter Township was almost completely staked and various cospanies did work in the area. No significant finds were made and no mineral deposits of any kind are known to have been made on this property. Subsequently, most claims were allowed to lapse.

KIKES LTD Lawrence Report - page 2

HISTORY cont'd

Recently, the optionor and his partners began trenching through over burden from a small sulphide-bearing outcrop. The initial samples from this trenching returned good silver assays at vhich time Ferco Mines became interes ted in the prospect.

OEOLOQY

Porter Tovnahip has been mapped at a scale of one inch equals one thousand feet by the Ontario Department of Mines. Fairly extensive outcrops have alloved good interpretation of the general geology.

The area is underlain by rocks of Precambrian age vhich have been divided into three groups: volcanics, intrusives and sediments. It is thought that the sediments unconformable overlie the older volcanics and granite intrusive.

The property is underlain chiefly by sediments vhich form the east limb of the "Shiner syncline". These rocks range from quarttite to greyvacke in composition. In addition, a large basic sill has intruded parallel to the beddings in the sediments. Narrow dykes of gabbro are abundantly found through out a large granite mass on the east side of the property. These dykes also cut through the younger, overlying sediments. Sulphide mineralitation appears to be associated with this late Intrusion.

A series of faults and shears cross the property in a direction slight ly north of vest. Locally this shearing seems to trend more to the north.

MINERAL DEPOSITS

A tone of sulphide has been exposed by trenching in the south part of claims 8-117171 and S-117172. This tone strikes N U5O W and may be turning to W 30O W ao it i n folloved northvest. The steeply dipping mineralited tone occurs in a band of greyvacke vhich has been sheared and brecciated near a gabbro dyke. A small outcrop of quartzite is exposed betveen the greyvacke and gabbro. The interpretation of this structure is difficult to determine. Bovever, examination of the 1,000-foot mapping vould seem to indicate that the quarttite Is pinching out at this point. If this is so, the sheared greyvacke may be in contact vith the gabbro, vhich might mean a considerably vider mineralited tone than is now exposed on surface.

Mineralitation of the sheared tone consists of pyrrhotite, quartz, pyrite, chalcopyrite and galena vith minor amounts of bismuthinite and silver. Traces of tine, cobalt and nickel have also been found by assaying.

Three main trenches have been dug across the zone. The number tvo trench has been most extensively sampled and has exposed a vidth of 32 feet across the tone. Tvo sets of chip samples vere taken vhich assayed, (l) an average of 6.9 ot. of silver across 32 feet, and (2) an average of 8.5 ot. Ag, U.95& Pfc* and 0.38^ Cu across 25 feet.

Following this, three samples weighing an average of 70 Ibs. each vere taken from the same trench.

While these results are marginal, insufficient work has been done to place full reliance on any one sampling method. The sampling does indicate that values are increasing somewhat towards the northeast. No further trench ing was done in this direction owing to deep overburden and, therefore, the tone has not been exposed across its full width.

CONCLUSIONS

A definite tone of mineralitation has been established in a favourable geological environment. J"lrst sampling Indicated that this tone might contain commercial quantities of silver, lead and copper. Subsequent sampleo of larger quantities of the material assayed somewhat lover in valuable elements.

FERCO KIKES LTD Lawrence Report - page 3

CONCLUSIONS cont'd

However, the zone hat not been completely exposed across its vidtb and some of the better assays vere obtained from samples taken where deep overburden made further trenching extremely difficult. The possibilities for additional width and the favourable mineral assemblage warrant sone limited additional work.

RECOMMENDATIONS

Bo further trenching should be done at this time owing to the deep overburden covering the area of greatest interest and the advent of winter.

A limited programme of diamond drilling should be initiated. Five hundred feeV. of drilling would be sufficient to drill through the tone to the gabbro dyke in several places and to obtain accurate samples.

Three crooo sections UO feet apart should be drilled. Three holes at a dip of 30 and a fourth hole at 500 on the centre section should be collared 25 feet southwest of the tone and drilled at a bearing of H^OS. The holes should be drilled through to the gabbro contact. This programme is estimated to cost ^2, 000, 00.

Respectfully submitted,

"Ross D. Lawrence" Ross. D. Lawrence, P.Eng., B. A. Se., M. Coom.

Toronto, Ontario December 13, 1 962

CERTIFICATE

I, Ross Douglas Lawrence, hereby certify:

1. That I am a geologist and reside at 21 Munro Blvd., Willowdale, Ontario.

2. That I am a registered Professional Engineer in the Province of Ontario.

3- That I graduated from the University of Toronto in 1956 with the degree of Bachelor of Applied Science and in 1959 vith the degree of Master of Commerce.

b, That I have been continuously engaged in geological work for six years.

5- That the foregoing report is based upon general knowledge ofmineral deposits in the crea, a study of the Ontario Department of Mines' report on the artsA, and on assay certificates and sketches provided by the management of Ferco Mines Limited.

6. That I have no personal interest, nor do I expect to receive any Interest Mtfcsr ilrectiy or indirectly, in the property or in the securities of Ferco Mineo Limited.

"Ross D. Lawrence"

Ross D. Lawrence, P.Eng., B.A.Bc., M.Coom.

Toronto, Ontario, December 13j 1962.

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