42D09NE0088 2.17612 PIC 010

REPORT ON AN INDUCED POLARIZATION SURVEY

ON THE

PIC RIVER CLAIMS

LOCATED IN

PIC TOWNSHIP - THUNDER BAY MINING DIVISION

FOR

DON MCKINNON

Submitted by: R.J. MeikleRayan Exploration Ltd. May, 1997

: Hay

JUN i t) 1997

RECEIVED

TABLE OF CONTENTS

INTRODUCTION........................................... lLOCATION AND ACCESS.............................. . . . . . . lCLAIM STATUS. . . . . . . . . . . . . . . . . . ... . . . . . . . ............... lPERSONNEL.............................................. 2GEOLOGY............ . ..... . .......... . .. . . . . . . . . . . . . . . . . . 2GEOPHYSICAL WORK PROGRAM..................... . . . . . . . . . . 2GENERAL IP THEORY................................... . . . 3ELECTRODE ARRAY. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 ,I.P. SURVEY PARAMETERS...................... . . . . . . . . . . . . 4SURVEY RESULTS......................................... 5RECOMMENDATIONS AND CONCLUSIONS........................ 5CERTIFICATE........................................... . 6

LIST OF FIGURES

LOCATION MAP FIG. lREGIONAL LOCATION/ GEOLOGY MAP FIG. 2CLAIM SKETCH fi I.P. COVERAGE FIG. 3

APPENDIX

SCINTREX IPR-12, I.P. RECEIVER....................APPENDIX ASCINTREX TSQ-3, I.P. TRANSMITTER..................APPENDIX B

LIST OF MAPS

I.P. PSUEDOSECTIONS, PLATE l of l ..................l:250O

' 42D09NE0088 2.17612 PIC U ̂ U

INTRODUCTION

Rayan Exploration Limited of Timmins, Ontario was hired by Don McKinnon, Timmins, Ontario, to conduct an Induced Polarization Survey on a the "Pic River Claims", located in Pic Township, near Heron Bay, east of the town of Marathon and west of the "Hemlo" gold mines, Thunder Bay Mining Division, Ontario.

The I.P. Survey was carried out to delineate a possible west strike extension of a mineralized showing. The surveyed area is on strike with the "V. Stenlund gold horizon" to the west, currently being drilled by Teck Exploration. This report describes the survey parameters and results of the survey.

LOCATION AND ACCESS

The property is located approximately 4km east of Heron Bay, Ontario. The grid was accessed by the Black River Dam road which runs south from Hwy. 17W, approximately 800m east of the Black River Bridge for 4km. (fig. 1,2,3)

CLAIM STATUS

The I.P. Survey was done on 2 contiguous, unpatented mining claims(l7 units) in Pic Township, Thunder Bay Mining Division, Ontario. The 2 claims are part of a larger group called the Pic River Option which comprises 29 claims (93 units), in Pic Twp. (Fig. 3).

The claim numbers are as follows:

1207907 ( 9 units) Pic Township 1210429 ( 8 units) Pic Township

The claims are recorded in the name of Mr. Duncan Michano, 35 Pic River Road, Heron Bay, Ontario, POT 1RO.

79

O 90 100 190 til let

89 SO

PROVINCE OF ONTARIO

PIO l

DON MCKINNONPrao.rk.u-. P 'C R ' VER PROPERTY

Title:

LOCATION MAP

Client. 30 V MCKI

Procariui P IC RIVER PROPERTY

Titl.;

REGIONAL LOCATION MAP

RAYANEXPLORATION LTD

1207914 r 7-

esza\a 233.a s

PIO S

McKI; PIC RIVER PROPERTY

TtiU:

CLAIM SKETCH AND l .P. COVERAGE

RAYANEXPLORATION LTD

PERSONNEL

The people directly involved in this program were all employed by Rayan Exploration Limited, between May 22/97 - May 30/97, and are as follows:

Lanny Anderson.......................TimminsJeff Peterson........................TimminsTim Bell.............................TimminsMark Savage..........................TimminsRay Meikle...............,...........Timmins

GEOLOGY

The regional geology of the area consists of felsic pyroclastic volcanics, on the west flank of the Heron Bay Pluton. Within the pyroclastics, fragment size is reported to increase to the west, indicating the source or volcanic centre is to the west. (fig. 1)

Gold mineralization has been defined to the west of the survey on the "Stenlund Property". The I.P. Survey was designed to extend the strike length of a mineralized showing which is covered with an extensive overburden layer.

GEOPHYSICAL PROGRAM

A total of 6.5 kilometres of chainsaw cut grid lines were established, with a BL azimuth of 070 degrees and crosslines at 200 meter intervals, 25 meter stations, (fig. 3)

Lines 400W and 600W were surveyed with Induced Polarization, resulting in 2 km. of grid lines being covered.

The following is a brief description on the Geophysical Survey Method used:

GENERAL I.P. THEORY

The IP method involves applying voltage across two electrodes in a pulsed manner i.e. 2 seconds on, 2 seconds off. A second "dipole" or electrode pair, measures the residual potential or voltage between them after the voltage is shut off or during the 2 second off cycle. The potential is recorded at different times after the shut off. If, for example, there is sulphide mineralization within the measuring dipoles, they will be polarized or charges set up on the sulphide particles. This polarization gives the zone a capacitor effect, thereby blocking the current delay giving a higher chargeability reading.

A typical signature for many gold showings would be a chargeability high, resistivity high and magnetic low. This would be characteristic of a mineralized, highly altered carbonated and/or silicified zone. However, this is by no means the only geological setting for gold, therefore every profile should be looked at individually and correlated with all other geophysical- geological data.

ELECTRODE ARRAY

The electrode array used for the survey was the Pole-Dipole Array. In this array, one current electrode (CI) and two receiver or potential electrodes (P1,P2), are moved down a line in unison. A second current electrode (C2), is placed normal to the expected strike direction an infinite distance away, at least one km. The two current electrodes are hooked up to a motor-generator and a current applied across them, usually less than 3 amperes. The applied voltage is pulsed in a 2 second on, 2 second off pattern controlled by the transmitter.

Thus we have a single pole current electrode following a pair or dipole of potential electrodes moving down the line. The advantage of this "Pole-Dipole" array over the "Dipole-Dipole" array is a deeper current pattern between the infinite and moving current electrode, resulting in better penetration of conductive overburden. Also, this array is considerably faster in areas of high electrode contact impedance due to frozen and or rocky ground conditions because only one current electrode placement is needed for each reading. A disadvantage of the "Pole-Dipole" array is a slightly more ambiguous interpretation due to the assymetry of the array.

The distance between the potential electrodes is fixed, usually 25 or 50 meters and this is called the "a" spacing. When the potential dipole is positioned with one "a" spacing between the CI and the nearest PI, it is called a "Nz l" reading with a theoretical plot point at the intersection of a 45 degree line drawn down in a section format from the CI and nearest PI. When this Ns l reading is finished, the CI remains stationary and the P1P2 dipole moves ahead one "a" spacing and a Nz 2 reading is obtained. Using the above plot convention it can be seen that the plot point is now further from the CI and deeper. This is repeated for as many "N" readings as desired.

IP Survey Parameters

The IP survey was carried out using the following parameters:

Method: Time DomainElectrode Array: Pole-Dipole"a" spacing: 25 metersNumber of Dipoles Read: 1-6 inclusivePulse Duration: 2 seconds on, 2 seconds offDelay Time: 310 millisecondsIntegration Time: 140 millisecondsReceiver: Scintrex IPR-12Transmitter: Scintrex TSQ-3 3KVA.Data Presentation: Individual PsuedosectionsScale: 1:2500 Plate l of l, back pocket of report

SURVEY RESULTS

The I.P. Survey results on L600W and L400W did not outline any obvious areas of interest which could be related to the mineralized showing.

The north ends of both lines indicates an overlaying, more chargeable and resistive layer. Without the benefit of geological information it is difficult to explain this phenomena. However, a logical explanation could be a layer of gravel above a clay layer.

RECOMMENDATIONS AND CONCLUSIONS

The remainder of the grid from L400W to L400E should be surveyed by I.P. and results assessed at that time. The two lines surveyed, subject of this report are the farthest from the showing and it is not apparent if there is an I.P. response over the showing and to the west.

CERTIFICATION

that:I, Raymond Joseph Meikle of Timmins, Ontario hereby certify

l. IHaileybury 1975.

hold a three year Technologist Diploma from the School of Mines, Haileybury, Ontario, obtained in May

2. I have been practising my profession since 1973 in Ontario, Quebec, Nova Scotia, New Brunswick, Newfoundland, NWT, Manitoba, Germany and Chile.

3. I have been employed directly with Teck Corporation, MetalIgesselIschaft Canada Ltd. Sabina Industries, .S. Middleton Exploration Services Ltd., self employed 1979-1985 (Rayan Exploration Ltd.) and currently with Rayan Exploration Ltd.

4. I have based conclusions and recommendations contained in this report on knowledge of the area, my previous experience and on the results of the field work conducted on the property during 1997.

5. I hold no interest, directly or indirectly in this property, nor do I expect to receive any interest or considerations from the Property other than professional fees for services rendered.

Dated this 31th day of May, 1997 at Timmins, Ontario.

.J. Meikle

APPENDIX A

SCINTREX IPR-l2 RECEIVER

i l PR-12 Time Domain Induced Polarization/Resistivity Receiver

l Brief Description

l l l l l l l l l l l l l l l

The IPR-12 Time Domain IP/Resistivity Receiver is principally used in exploration for precious and base metal mineral deposits. In addition, it is used in geoelec- tricai surveying for groundwater or geothermal resources, often to great depths. For these latter targets, the induced polarization measurements may be as useful as the high accuracy resistivi ty results since it often happens that geo logical materials have IP contrasts when resistivity differences are absent.

Due to its integrated, lightweight, micropro cessor based design and its large, 16 line display screen, the IPR-12 is a remarkably powerful, yet easy to use instrument. A wide variety of alphanumeric and graphical information can be viewed by the operator during and after the taking of readings. Signals from up to eight potential dipoles can be measured simultaneously and recorded in solid-state memory along with automatically calculated parameters. Later, data can be output to a printer or a PC (direct or via modern) for processing into profiles and maps.

The IPR-12 is compatible with Scintrex IPC and TSQ Transmitters, or others which output square waves with equal on and off periods and polarity changes each half cycle. The IPR-12 measures the pri mary voltage (Vp), self potential (SP) and time domain induced polarization (Mi) characteristics of the received waveform. Resistivity, statistical and Cole-Cole parameters are calculated and recorded in memory with the measured data and time.

Scintrex has been active in induced polar ization research, development, manufac turing, consulting and surveying for over thirty years. We offer a full range of instru mentation, accessories and training.

The IPR-12 Receiver measures spectral IP signals from eight dipoles simultaneously then records measured and calculated parameters in memory.

Benefits

Speed Up Surveys

The IPR-12 saves you time and money in carrying out field surveys. Its capacity to measure up to eight dipoles simultaneous ly is far more efficient than older receivers measuring a single dipole. This advantage is particularly valuable in drillhole logging where electrode movement time is mini mal.

The built-in, solid-state memory records all information associated with a reading, dis pensing with the need for any hand written notes. PC compatibility means rapid elec tronic transfer of data from the receiver to a computer for rapid data processing.

Taking a reading is simple and fast. Only a few keystrokes are virtually needed

since the IPR-12 features automatic circuit resistance checks, SP buckout and gain setting. ^ ,.

High Quality Data

One of the most important features of the IPR-12 in permitting high quality data lo be acquired, is the large display screen which allows the operator easy real time access to graphic and alphanumeric displays of instrument status and measured data. The IPR-12 ensures that the operator obtains accurate data from field work.

The number and relative widths of the IP decay curve windows have been carefully chosen to yield the transient information required for proper interpretation of spec tral IP data. Timings are selectable to per mit a very wide range of responses to be measured.

Specifications

Inputs1 to 8 dipoles are measured simultaneously.

Input Impedance16 Megohms

SP Bucking 10 volt range. Automatic linear correction operating on a cycle by cycle basis.

Input Voltage (Vp) Range50 uvolt to 14 volt

Chargeability (M) RangeO to SOOmillivolt

Tau Range1 millisecond to 1000 seconds

Reading Resolution of Vp, SP and MVp, 10 microvolt; SP, 1 millivolt; M, 0.01 millivolt/volt

Absolute Accuracy of Vp, SP and MBetter than 1 070

Common Mode RejectionAt input more than 10Odb

Vp Integration Time1007o to 8007o of the current on time.

IP Transient ProgramTotal measuring time keyboard selectable at 1, 2, 4, 8, 16 or 32 seconds. Normally 14 windows except that the first four are not measured on the 1 second timing, the first three are not measured on the 2 sec ond timing and the first is not measured on the 4 second timing. (See diagram on page 2.) An additional transient slice of minimum 10 ms width, and 10ms steps, with delay of at least 40 ms is keyboard selectable.

Transmitter TimingEqual on and off times with polarity change each half cycle. On/off times of 1, 2, 4, 8, 16 or 32 seconds. Timing accuracy of 100 ppm or better is required.

External Circuit TestAll dipoles are measured individually in sequence, using a 10 Hz square wave. The range is O to 2 Mohm with 0.1 kohm resolution. Circuit resistances are dis played and recorded.

SynchronizationSelf synchronization on the signal received at a keyboard selectable dipole. Limited to avoid mistriggering.

FilteringRF filter, 10 Hz 6 pole low pass filter, sta tistical noise spike removal.

Internal Test Generator1200 mV of SP; 807 mV of Vp and 30.28 mV/V of M.

Analog MeterFor monitoring input signals; switchable to any dipole via keyboard.

Keyboard17 key keypad with direct one key access to the most frequently used functions.

Display16 lines by 42 characters, 128 x 256 dots, Backlit Liquid Crystal Display. Displays instrument status and data during and after reading. Alphanumeric and graphic dis plays.

Display HeaterAvailable for below -15'C operation.

Memory CapacityStores approximately 400 dipoles of infor mation when 8 dipoles are measured simultaneously.

Real Time ClockData is recorded with year, month, day, hour, minute and second.

Digital Data OutputFormatted serial data output for printer and PC etc. Data output in 7 or 8 bit ASCII, one start, one stop bit, no parity format. Baud rate is keyboard selectable for stan dard rates between 300 baud and 51.6 kBaud. Selectable carriage return delay to accommodate slow peripherals. Hand shaking is done by X-on/X-off.

Standard Rechargeable BatteriesEight rechargeable Ni-Cad D cells. Supplied with a charger, suitable for 110/230V, 50 to 60 Hz, 10W. More than 20 hours service at +25'C, more than 8 hours at -30*C.

Ancillary Rechargeable BatteriesAn additional eight rechargeable Ni-Cad D cells may be installed in the console along with the Standard Rechargeable Batteries. Used to power the Display Heater or as back up power. Supplied with a second charger. More than 6 hours service at-30'C.

Use of Non-Rechargeable BatteriesCan be powered by D size Alkaline batter ies, but rechargeable batteries are recom mended for longer life and lower cost over time.

Operating Temperature Range-30'C to -i-50'C

Storage Temperature Range-30'C to -i-SO'C

DimensionsConsole: 355 x 270 x 165 mm Charger: 1 20 x 95 x 55mm

WeightsConsole: 5 .8 kgStandard or Ancillary RechargeableBatteries: 1 .3 kgCharger: 1 .1 kg

Transmitters availableIPC-9 200 W TSQ-2E 750 W TSQ-3 3 kW TSQ-4 10kW

In Canada

222 SnirJercroft Rd. Concord, Ontario Canada, L4K1B5

In the U.S.A.

85 River Rock Drive Unit #202 Buffalo, N.Y. U.S.A. 14207

IPR-12/94

Tel.: (905)669-2280 Fax: (905) 669-6403 Telex: (905) 06-964570

Tel.: (716)298-1219 Fax: (716)298-1317

APPENDIX B

SCINTREX TSQ-3 TRANSMITTER

l l l l l l l l l l l l l l l l l l l

Function

The TSQ-3 is a multi-frequency, square wave transmitter suitable for induced polarization and resistivity measurements in either the time or frequency domain. The unit is powered by a separate motor- generator.

The favourable power/weight ratio and compact design of this system make it portable and highly versatile for use with a wide variety of electrode arrays. The medium range power rating is sufficient for use under most geophysical condi tions.

The TSQ-3 has been designed primarily for use with the Scintrex Time Domain and Frequency Domain Receivers, for combined induced polarization and resis tivity measurements, although it is compat ible with most standard time domain and frequency domain receivers. It is also compatible with the Scintrex Commutated DC Resistivity Receivers for resistivity surveying. The TSQ-3 may also be used as a very low frequency electromagnetic transmitter.

Basically the transmitter functions as follows. The motor turns the generator (alternator) which produces 800 Hz, three phase, 230V AC. This energy is trans formed upwards according to a front panel voltage setting by a large transformer housed in the TSQ-3. The resulting AC is then rectified in a rectifier bridge. Commutator switches then control the DC voltage output according to the wave form and frequency selected. Excellent output current stability is ensured by a unique, highly efficient technique based on control of the phase angle of the three phase input power.

Time Domain T ^ ' 2 . 4 or a seconds swilch selectable

Frequency Domain T s -and f s 001. 03, 1 Q or 3 0 Hz

TSQ-33000 WFeatures

Current outputs up to 10 amperes, voltage outputs up to 1500 volts, maximum power 3000 VA.

Solid state design for both power switch ing and electronic timing control circuits.

Circuit boards are removable for easy servicing.

Switch selectable wave forms: square wave continuous for frequency domain and square wave interrupted with auto matic polarity change for time domain.

Switch selectable frequencies and pulse times.

Overload, underload and thermal protec tion for maximum safety.

Digital readout of output current.

Programmer is crystal controlled for very high stability.

Time and Frequency Domain IP and Resistivity Transmitter

Low loss, solid state output currentregulation over broad range of load and input voltage variations.

Rectifier circuit is protected against transients.

Excellent power/weight ratio and efficiency.

Designed for field portability; motor-gene rator is installed on a convenient frame and is easily man-portable. The trans mitter is housed in an aluminum case.

The motor-generator consists of a reliable Briggs and Stratton four stroke engine coupled to a brushless permanent magnet alternator.

New motor-generator design eliminates need for time domain dummy load.

Waveforms output by the TSQ-3

TechnicalDescription ofTSQ-3/3000WTime and Frequency DomainIP and Resistivity Transmitter

TSQ-3 transmitter with portable motor generator unit

222 Snidercroft Road Concord Ontario Canada L4K 1B5

Telephone: (416) 669-2280 Cable: Geoscint Toronto Telex: 06-964570

Transmitter Console

Output Power

Output Voltages

Output Current

Output Current Stability

Digital Display

Absolute Accuracy

Current Reading Resolution

Frequency Domain Waveform

Frequency Domain Frequencies

Time Domain Cycle Timing

Time Domain Polarity Change

Time Domain Pulse Durations

Time and Frequency Stability

Efficiency

Operating Temperature Range

Overload Protection

Underload Protection

Thermal Protection

Dimensions

Weight

Power Source

Type

Motor

Alternator

Output Power

Dimensions

Weight

Total System

Shipping Weight

3000 VA maximum

300, 400. 500, 600, 750, 900, 1050, 1200, 1350 and 1500 volts, switch selectable

10 amperes maximum

Automatically controlled to within 0.1 07o for up to 20 0Xo external load variation o r up to 1007o input voltage variation

Light emitting diodes permit display u p to 1 999 with variable decimal point; switch selectable to read i nput voltage, output current, external circuit resistance. Dual current range, switchselectable

30Xo of full range

10 mA on coarse range (0-10A) 1 mA on fine range (0-2A)

Square wave, continuous with approximately607o off time at polarity change

Standard: 0.1, 0.3, 1.0 and 3.0 Hz, switchselectableOptional: any number of frequencies in rangeO to 5 Hz.

t :t:t:t;on:off:on:off; automatic

each 2t; automatic

Standard: t = 1, 2, 4 or 8 seconds Optional: any other timings

Crystal controlled to better than .01 0Xo

.78

-30"CtO -l-50=0

Automatic shut-off at 3300 VA

Automatic shut-off at current below 75mA

Automatic shut-off at internal temperature of

350 mm x 530 mm x 320 mm

25.0kg.

Motor flexibly coupled to alternator and instal led on a frame with carrying handles.

Briggs and Stratton, four stroke. 8 H.P.

Permanent magnet type, 800 Hz, three phase 230 V AC

3500 VA maximum

520 mm x 715 mm x 560 mm

72.5 kg

150 kg includes transmitter console, motor generator, connecting cables and re-usabie wooden crates

Geophysical and Geochemical Instrumentation and Services

JUN- 2-97 MON 3:29 FM RAYAN EXPLORATION LTD PAI NO. 705 267 7107 P. l

Ontario andD^laratlbn of Assessment Work Performed on Mining LandMining Act, Gubuctlon 66(2) and W{S), R.8.0.1990

Transaction Number (office u*a)

Imaging

Pereonal Infer Mining Act, trx Queatloni atx 933 Ramsey L

Instruction^.

:) and 66(3) of the Mining Act. Under section e Of the iant work and correspond with the mining land holder i of Northern Development and Mines, 6th Floor.

42D09NE0088 2.17612 PIC 900

- Please type or print in Ink.

1. Recorded holders) (Attach a list If necessary)

oeior* recoromg a ciatrn, use form 0240. u it i;,,k' i i-

- 11997Name

vcavfsvsoNumber

l^-cftvAddress Ttlaphone Number

Eax Number

Name

Addree*

Client Number

Telephone Number

Fax Number

Z. Type of work performed: Oheok ( ^ ) and report on only ONE of the following groups for this declaration.

)oteohnical: prospecting, surveys, r-1 Physical: drilling, stripping, r~i says and work under section 18 (regs) * l trenching and associated assays l 1assays

Work Type

Dates Work Performed

Office Us*Commodity

Total * Value of Work Claimed

ToMond) V**r Ow .1 Month | Ynt

rfTS ReferenceQlofoat Positioning System Data (if available) Township/"

Mining D,vtetonM or O-Plan Number ftMldsnt Qedogln

Dlttrlot

Please remember to: - obtain a work permit fro'm the Ministry of Natural Resourcsa as required;'. ,,..-., .. : ,, provide proper notice to surfflON8,right8rhpl(jfln|:feefore starting work;,- 1 . : .--v-'1

- complete and attach a Statement of Costs, form 0212;- provide a map showing contiguous mining lands that are linked for'assigning work;, r. include two copies of your technical report. ,.

3. Pereon or companies who prepared the technical, report : : (Attachr a list if necessary) ;.BimT Telephone Number

Address Fax Number

-^Name Telephone Number

Fax NumberJMi

Telephone NumberName

Fax Number

4. Certification by Recorded Holder'or Agentli**,*

r do hereby certify that l have personal knowledge of the facts sat(Prim Name)

forth In this Declaration of Assessment Work having caused the work to be performed or witnessed the same.durlnO: or after its completion and, to the best of my knowledge,. the annexed report is true.

Signature ol Recorded Holder or Agent

Aflent'c Address' Telephone Number

Date

PM Number

JUN- 2-97 MON 3:50 PM RAYAH EXPLORATION LTD FAX NO, 7Ub L

S. Work to be recorded and distributed. Wprk.car^only be assigned .tp claims that are contiguous (adjoining) to .. the mining land where work was tferforrried; at the. t|rne work was1 performed. A map showing the contiguous ;llnk{ "vi7 : must accompany this form.j C'^J.^MW /''- u^.h'v-'i - ' " ' ' ~ --V

Mining CWm Number.. Or IT , work wae done on other eligible mining land, show: In this * .;.i l, column the location number.-. .-. - Indicated on the dalm . map. .

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1234668

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-iysn-^Qgv,^ do hereby certify that the. above work credits ara ejigfbie under- . 17,,, )77"f:j j.-^'j-; tf'i ;;',-/ T-: {iT.'M -. . , . - -'- - :: '- .' '-. l- Ji - ".t " i**l W ''.: '''' " ' (Print Full Nwne)

subsection 7 (1) of the Assessment Work' Regulation' 6/96 for .assignment to contiguous claims or for application to

the claim where the work was done/

Signatur* of Recorded Holder or Agent Authorized in Writing Dal.

Afc

6. Instructions for cutting back credits that ara not approved.

Some of the credits claimed In this declaration may be out back. Please check ( ^) hi the boxes bekw to show how

you wish to prioritize the deletion of credits: .Q^^lT Credits are to be cut back from the Barik first, followed by option 2 or 3 or 4 as Indicated.

D 2. Credits are to be cut back starting with the claims listed last, working backwards; or . .D 3. Credits;are to be cut back equally over ail claims Hated In this declaration; or

D 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe):

Note: If you have not Indicated how your credits ara to be deleted, credits will be cut back from the Bank first, followed by optton number 2 If necessary.,' -x ^ . .. .

For Office Use Only__________" ' : ' : '"'bate Notfflcailon 8*mStamp DMintd Approved DM

Daft Approved Tptil vmlut of Crnlt Appravtd

Approved for Recording by Mining ftecorcfer (SiQnatu

JUN- 2-97 MON 3:31 PM RAYAN EXPLORATION LTD HI N O. VUb 2 ftt V 1U'/ . j

Ministry ofNorthern Developmentand Mines

Statement of Costs for Assessment Credit

Transaction Numb'er (offlc* us*)

Personal information oolleoted on this form i* obtained under the authority of subsection 6(1) of the Assessment Work Regulation 6/98. Under section 8 of the Mining Act, the Information Is a public record. This Information will ba used to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to the Chief Mining Recordar, Ministry of Northern Development and Mines, 6th Roor. 933 Ramsey Lake Road, Sudbury, Ontario, P3G 6B5.

Work Type

l~*AM*~cjurrTvot^-r^

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Units of WorkDepending on the type of work, list the numberof hours/days worked, metres of drilling, kilo- metres of grid line, number of samples, We.

3U1X KvN^

^ -CrfVM*^X

Aaaeelated Costa (e.g. supplies, mobilization and demobilization).

Transportation Costs

! .

Food and Lodging Costs

Cost Per Unitof work

"i^O

VASO

^fcO

o*# * j fy** (J

Total Value of Assessment Work

Total Cost

^W^

a**ooSbn

fi * ,-"- ^

LMTVO

Calculations of Filing Discounts:

1. Work filed within two years of performance Is claimed at lOO'Vb of the above Total value of Assessment Work.2. If work is filed after two years and up to five years attar performance, it can only be claimed at 50*ft of the Total

Value of Assessment Work. If this situation applies to your claims, use the calculation below:

TOTAL VALUE OF ASSESSMENT WORK x 0.50 - Total S value of worked claimed.

Note:- Work older than 5 years is not eligible for credit.- A recorded holder may be required to verify expenditures claimed in this statement of costs within 45 days of a request for verification and/or correction/clarification. If verification and/or oorrectlonfclariflcation is not made, the Minister may reject all or part of the assessment work submitted.

Certification verifying coste:

l, Aw v^fani. f^vovxvg'r ^Mni^rag\H" hereby certify, that the amounts shown are as accurate as may (p\p4s* print M name) ' '

reasonably bs determined and the costs were Incurred while conducting assessment work on the lands indicated on

the accompanying Declaration of Work form as

to make this certification.

am authorizedg authority)

Dal*

Ministry ofNorthern Developmentand Mines

August 29, 1997

DUNCAN MALCOLM MICHANO 35 PIC RIVER ROAD HERON BAY, Ontario POT-1RO

Ministers du Developpement du Nord et des Mines Ontario

Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6B5

Telephone: (888) 415-9846 Fax: (705) 670-5863

Dear Sir or Madam:

Subject: Transaction Number(s):

Submission Number: 2 .17612

StatusW9740.00621 Approval

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

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice.

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

If you have any questions regarding this correspondence, please contact Steve Beneteau by e-mail at beneteau-s@torv05.ndm.gov.on.ca or by telephone at (705) 670-5855.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 11298

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2 .17612

Date Correspondence Sent: August 29, 1997 AssessorSteve Beneteau

Transaction Number

W9740.00621

Section:14 Geophysical IP

First Claim Number

1207907

Township(s) l Area(s)

PIC

Status

Approval

Approval Date

August 29, 1997

Correspondence to:Resident Geologist Thunder Bay, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):WENDY SIMS KORBA TIMMINS, ONTARIO

DUNCAN MALCOLM MICHANO HERON BAY, Ontario

Page: 1Correspondence ID: 11298

Q i

(DtoO

H

O

.1)

O09

v")

O'Neill Twp - G-613 Cotte Two - G-2856

McCoy Twp -! 1216528

3041 A.AYI90lVets.

160 /ac.

t r.i c t

VESTEDINDOMINION

GOVERNMENT BY O.C

DATED I6NOV.I89PART OF HAWKINS ISLAND REVESTED IN PROVINCE OF

ONTARIO- O.C. 1803/68,

Con. I X !The Peninsula

l 197163Marathon 210432 L -f---i r---

1195391 1217256 ,

II97I6I 12172551210435197462

O942891194290II2C407

---4--^

II204O8 I.I2O4II :

195389 94288U83B86 116^992P minium "66215 l U66224 l 1166225 (1166238 ||66O95 —— ̂ ——— —— ^

UI838871166216 (1166223 "66226

CRAIG S PIT

PROVINCIAL NATURE RESERVE

(PROVINCIAL PARK)

7KJ l 1166233 l S jg7|| 66087 II

l ^1166X17 !llt6?.22| ||6

L--' --'--J---.2-tti /f^-4 - '---

Iib62|rt | ut;e?.?.l 11166228 !||6623'.l \ 'cJ \ l \ , . noou^. . ... - i

l l - \\ ^'H G60*P\ l

' |II6623I

116609! ."6b0*8 .1166^01 .1166207

Melqund~sia.L675i iS PArtT SR EASENtSR PATENT, A^L CF CL

; S'^b-JECT Tw SECTION 2 J G r THE Mll-ING ACT RSO i99C. RESTRICTION ANC, S'AKiNG APPLY, SEE -

i l c. V' "^ ^ ^ ' 1,4 t *^ "H

"1207914 T"~1215368 "11352 j n/10327

120790312022 6S28I9 638183

187^90

65S697 1644816 (644815 '519558

Heron iBoy stg

I2IC429

I2J5880Cj

PIC R \\

Ogilvy olf yD4 ^ 'o

I20799f

f2C7992

Mussy Lake Area - G-3773ALL ISLANDS WITHIN 2 MILE LIMIT FORM PART OF NAT. Order No. W. 25/73, deted June 6,1973, File No. 167249.

REFERENCES

Indicates Annulled Portion Of Township.

Indicates lands, along with islands In front of concessions 2 through 6, are subject to Section 109 of The Mining Act.

Lands Under Th* Waters Of Lake Superior Withdrawn l-rom Staking By Order in Council Dated April 30, 1912.

H*T(Cr:The informal. i * h 3* -.c.;, w -."- .- 'his map has b oor. ;om;.i:a'-!from various soarces and accuracy is no! guaranteed. Those w ; .t,.., * ? ~ ~

additional information on the status of the idiris shown hereon.

AREAS W ITHDRAWN FROM DISPOSITION

M.R.O. - MINING RIGHTS ONLY

S.R.O. - SURFACE RIGHTS ONLY

M.+ S. - MINING AND SURFACE RIGHTS

Description Order No. Date Disposition File

MINING a SURFACE RIGHTS WITHDRAWN FROM STAKING. ORDER WNCR 2/84. To prelect an omni ranqe facility at Marathon Airport.

SURFACE RIGHTS ONLY WITHDRAWN FROM STAKING. ORDER WTB-30/92. Waterfront Development by Marathon.

SURFACE R IGHTS ONLY WITHDRAWN FROM -STAKING ,R3) ORDER WT8-02/89. Mercury Waste Disposal Site.

SURFACE RIGHTS ONLY WITHDRAWN FROM STAKING. R4) ORDER WTB-4O/8I. To preve'.: levolopmen with.ut knowle

o* h azard waste.

SURFACE RIGHTS ONLY WITHDRAWN FROM STAKING.ORDER WNCR-02/88. Proposed Municipal Waste DisposalSite.MINING 8 SURFACE RIGHTS WITHDRAWN FROM STAKING.ORDER W-12/88. Ministry de'ermin- s ownership of land.

RT)Pending apolicction under Pub!'-: Lands Act for Mining a Surf^ ^DT k*~ M~ f.4^Winn riiireii in* *^ ^**Minn TlO !h) MiniHQ Act.R'gh's. Ne staking pursuant 'c Section 30 (b) Mining Act.

:e

LEGEND

HIGHWAY AND ROUT F N.

OTHER ROADS

TRAILS

SURVEYED LiNFS

TOWNSHIPS. BASELINES tTC

LOTS. MINING CL AIMh PA.RTE l S E TV

UNSURVEYED LlNbS

LOT LINES

PARCEL BOONDAH f

MINING CL AiMS ETC

RAILWAY AND NIGHT O t- WA^

UTILITY LINES

NON PERENNIA STREAM

FLOODING OR FI CODING RIGHTS

SUBDIVISION ORCOMPOSITI Pi AN

RESERVATIONS

ORIGINAL SHORELINE

MARSH OR MUSKEG

MINES

TRAVERSE MONUMENT

DISPOSITION OF CROWN LANDS

TYPE OF DOCUMENT SYMBOL

PATENT. SURFACE &L M INING RIGHTS . .. *

. SURFACE RIGHTS ONLY . ,.,......,. . 9

, M INING RIGHTSONLY'..... .... O

LEASE, SURFACF K M INING RIGHTS - . -. B

" .SURFACE RIGHTSONLY^ . ^ .^..,. ...,. H

" . MINING RIGHTS ONLY^ .. . ... ..^.. U

. .'LICENCE OF OCi UPATIoN .. * ...^-..... ' .- T

ORDER IN -COUNCIL . . OC

RESERVATION . . . .

CANCELLED .......'

SAND Si G RAVEL ....^ . .. . ^ . ffiLAND USE PERMITS FOR COMMrlKCIAL TOUHISM. OUTr-O5T CAMPS V

NOTE: MINING RIGHTS IN "ARC.ELS PATENTED PRIOR TO MAV 6

1913. VESTED IN ORIGINAL PATENTEE BY THE PUBLIC

LANDS ACT. RSO 19 7O CHAP 3BO SEC 63. SUBSET l

SCALE: 1 INCH 40 CHAINS

DATE OF ISSUE

-

O i OOO -'OOO 6OOC 8000

O 200

METRES

'000

PROVINCIAL RECORDING2000

(2 KM l

AREA

PIC TWP.M.N.R ADMINISTRATIVE DISTRICT

NIPIGON

MIN,NG D IVISION

THUNDER BAYLAND TITLES/ REGISTRY DIVISION

THUNDER BAY

MinistryofNatural Management

Resources Branch

Ontario

' late MARCH o 1982.

i Service Aug. 19/36

Number

830

42009NE0088 2.17612 PIC 200

M9 CHD.N-. l

N:2

N:3

N:4

N:5

N:6

RESISTIVITY

N:2

N:3

N:4

Ni5

2SOS ,225s ^OpS ,175s" ,125s , tops ^ ^~

2.8 2.9 2.0 3-8 3.2 3-2 3.0 7.4,

1.6 ^x.2.5 2^0 3-4 3.3 3.2 .^

^K, 2.0^2.3 3.7 2.7 3.3 2-52.1 ^^

2.7 2-1 2-1 2.7 3-2 3-2 {^3-^3.5 2.1O2-0

3.0 3-1 2.9 2-5 1-9 3-6 1.9 X^S^NR 2-8 ^4-rB 4~2,--JiR 3.4

3.3 2.8 xT^N 2.7 3-1 NB^^TMx 2.3 NR 3.8 sf.S 4 .9 5.8 NR\ 3.1

5.5 5.1 5.4 5.9 5.7 4.8 5.0 4.8 3.2 6.0

5.5 5.5 5.6

5.1 4.9 5.6 4.8 4.5

4A 3.7 3.8 3.1\5.1 4. ir 1.8 *. l

25pS ^255 tl

172.0 203.0218-0

155-0 159.02tS.0200

169.0 175.0 189.0234.0

219.0 l*ULat5^218.024!

283.0250.0237.0 247.0227.0

N:6 400.Q 37^8^292-0 268.0 254.0 251 .0 279.0 293.0

5(}S ( 12SN | 15pN f 175N t 22SN

210

.0239

279.0239.0

0293.0 151.0 225.0 324^^71.0 322^0J10.0 535.0 360.0 389.0 361.0 274.0 319.0

167.VrSg\0 158.0 7*0^0^27.0 234.0 231 To V?9 T̂ST^.0 3QB .p 303 JL**B..0 243.0

.0 114.0 201 .0 157.0 1777o~2^B4JLLW^ 288.18-^*3^0251 .0 234.0 218.0209.0

38-0 I60.02irr6vl46.0 186.0 153.03*60.0

.0 2QJ .0^177.0 Vo\4^67.0 156 .0 2^6-OJJ8^0 163.0 163.0 176.0 174.0

r64.0228.0"st*7.0A259.0lv43.02*7.0^Xnrk66.0 152.0 153.0 171-0

RESISTIVITY Nil

N:2

Ni3

Ni4

Ni5

N:6

LINE : 400 W

INDUCED POLRRIZRTION SURVEY

POLE-DIPOLE RRRflY

KPTN PtMT

N r 1. 2. 3. 4. -.. W SPflCINO - 25.0 HETRES

IIVM: SCINTREX IPR-12 TINE DOMAIN RX-TX TININO: 2 t.c ON 2 ..c OFF TRANSMITTER: SCINTREX TSO-3 3KVA SLICE TININO: 3IO-4O5 .. PLOTTED WINDOW: SLICE *9

DON MCKINNtyr

PIC RIVER PROPERTY

HERON BRY, ONTRRIODflTE : MflY 1997 REF : R389

SCRLE - l : 2500

RRYflN EXPLORflTION LTD.

M9 CHG.

N:2

Ni3

N:4

N:5

N:6

RESISTIVITY

Nt2

N:3

H-4

N:5

N:6

35DS 325S .30pS .2755 .2SpS .2255 , 125S . IQpS . 75,5 . 50^5 N .75^ t10pN 1 12SN 17SN t20pN

3.6 3.4 3.0 4.1^4.5 4.9 5.4 4.7 5.3 5-9 5.2 6^2 6.4 6.5 7.1 6.2 3 3.9 3.5 2.5 3/3 ?T3~—~4^1 4.7 4.5 4-8 5.7 5-5 5.2~~~~5"T8——57fl——S~:7

^j8 3-2 3.7 2.8 2.3 2-8 3^B-—3^7" 3-2^~?v^ 5.1 4.6 4.6 4.4 3.7

2 (K9 4T1 2.2 2.7 3.3 2-8 ^5 4T? ?Ti~V^N 4-5/TTo T^S NR

2.9\ 5.6 [2-7 3.7 3.1 3.5 3-2 ^4-JJ 3,9 3^9 A .TZ.Q 3 -4 NR

2.3 4-*-. 3 W NR^ T& ~ 4\ l 2.6 xTHTN 3.3 NR 3-0 NR NR NR NR

35pS ^255 ̂ OpS ,275s t 25pS ^255 t !75S ^Sps 1 125S t tops t 1225N , 175N t 20pN t 22SN

8.5 49.0 160.0 167.0 195.0 184. 0200-0 183.0193-0 199.

O 155.0 168.0 185'

O 163.0 172.0 161

O 177.0 161.0 179.0 191.0 160.

172.0 189.0 168.0 176.0 158.0 153.0 163.0 151.0 184.0

.0208-^1185.0 163-0 184.0 156.0 140-0 160.0

M9 CHG. N:l

Nt2

Ni3

Ni4

N:5

Ni6

RESISTIVITY NH

N:2

N:3

N:4

NiS

Ni6

O

rsi

LINE : 600 W

INDUCED POLRRIZRTION SURVEY

POLE-DIPOLE flRRRY10

N r l. 2. 3. 4. ... fl" SPWCINO - 25.0 METRES

RECEIVER: SCINTREX IPR-12 TINE DOMAIN RX-TX TININO: 2 t.e ON 2 i.c OFF TRANSMITTER: SCINTREX TSO-3 3XVA SLICE TININO: 310-405 *i PLOTTED WINDOW: SLICE 99

____________________/y

DON MCKINNON

PIC RIVER PROPERTY

HERON BRY, ONTRRIO

O) O

DRTE : MflY 1997 REF : R389

SCRLE - l : 2500

RRYRN EXPLORRTION LTD.