RPT ON THE GROUND MAG SURVEY

52A12SW0039 2.17036 BLACKWELL 010

Report on the Ground Magnetic Survey

Kaspar Property - Project 514

Blackwell Township, Ontario

Thunder Bay Mining Division

NTS52A12/SW

Latitude 48036' Longitude 89"55'

2.17036

TABLE OF CONTENTS

l .0 Introduction

2.0 Conclusions and Recommendations

3.0 Disposition

4.0 Location and Access

5.0 Previous Exploration

6.0 Current Program

7.0 Instrument Descnption and Specifications

8.0 Results

Statement of Qualifications

l

l

l

l

4

4

5

6

7

List of Figures

Figure l Location Map

Figure 2 Claim Sketch

2

3

List of Maps

Map l Total Field Magnetics Data Map

Map 2 Total Field Magnetics Contour Map

back pocket

back pocket

52A12SW0039 2.17036 BLACKWELL 01OC

Kaspar Property Ground Magnetic Survey Report

1.0 Introduction

In December 1996 a magnetic survey was conducted over a north-south cut grid on the Kaspar Property. 21.6 kilometres of line was cut at 200 m line spacing and 25 m picket stations. The magnetic survey was conducted over the entire grid with readings taken every 12.5 m. Several magnetic trends were outlined by the survey.

2.0 Conclusions and Recommendations

The magnetic survey outlined a highly magnetic trend, probably banded iron formation, and four distinct magnetic regimes interpreted as corresponding with stratigraphic variations.

Induced polarization surveys and geological mapping should be undertaken in order to prioritize areas for further exploration.

3.0 Location and Access

The property is located in southeastern Blackwell Township approximately 55 km west northwest of the city of Thunder Bay, Ontario, NTS 52 A/12 SW, Latitude 48036' Longitude 89055', as shown in Figure 1.

Access is best achieved via Highway 11 which crosses the north part of the property. Forestry access roads cross the southern part of the property.

4.0 Disposition

The property consists of two claims, TB 1202134 and TB 1202333 which are comprised of 27 claim units (1080 acres), as shown in Figure 2.

The claims are recorded in the Thunder Bay Mining Division in the names of:

Alan J. Wing and Arthur Wallacec/o RR #5Pine StreetThunder Bay, ON P7C 3M9

In August, 1996, Avalon Ventures Ltd. entered into an option agreement with the recorded holders to earn a 1009fc interest in the property. The property then became subject to the Shabaqua Joint Venture Agreement between Avalon Ventures Ltd. and Green Ice Corporation, which includes four properties in Blackwell Township.

December 31, 1996 Avalon Ventures Ltd.

AVALON VENTURES LTD.General Location Map

Kaspar Property

50 100 150 200

Figure l

aoo

SCALE

O BOO 400 600

(meters)

AVALON VENTURES LTD

CLAIM MAP KASPAR PROPERTY

lato Die.

FlQJ 2


5.0 Previous Exploration

1925: T.L. Tanton conducts regional mapping survey for the Department of Mines and Resources.

Pre 1944: Exploration on the former Patent 17044 included numerous pits, trenches and stripped outcrops.

1944: Sylvanite Gold Mines conducts chip sampling of several trenches on former Patent 17044. Several anomalous assays (0.02 - 0.04 opt Au) were returned including 0.52 opt Au over 1.13 m.

1956: Three Brothers Mining drill four holes in the north western part of the property. Numerous graphite-sulphide horizons were identified.

1975-1979: Noranda conducts airborne EM and follows up with geological mapping, groundmagnetic, electromagnetic and gravity surveys over the southern part of the property. Coincident EM and gravity anomalies are identified but not explained.

1982: Lacana conducts ground VLF and geological mapping over the southern part of the property.

1983-1984: Corporate Oil and Gas Co. conducts reconnaissance mapping and soil geochemical surveys. A gold in soil anomaly is identified in the north west part of the property.

1988: JET Mining conducted airborne magnetic and electromagnetic surveys in the southern part of the property.

1988-1989: Noranda conducts airborne magnetics and electromagnetics as well as ground surveys over the northern part of the property. Ground surveys included reconnaissance mapping and soil sampling on north-south claim lines (400 m spacing). Anomalous gold in humus and gold in quartz float was identified in the northwest part of the property.

1990: M.W. Carter conducts regional mapping survey for the Ontario Geological Survey.

1994: A.J. Wing conducts prospecting and limited geological mapping in the northwest part of the property.

6.0 Current Program

A ground magnetometer survey was conducted from December 20 to 28, 1996 by Vytyl Exploration Services on behalf of Avalon Ventures Ltd. The grid, which was cut during September 1996, consists of 200 m spaced lines with 25 m stations. Instrument readings were taken at 12.5 m intervals over a total of 21.6 line kilometres. All readings were corrected for diurnal variation. Survey data was plotted as raw data and contours at a scale of l :5000 on Maps l and 2 (back pockets).



7.0 Instrument Description and Specifications

Magnetometer/Gradiometer GSM-19

Resolution:

Accuracy:

Range:

Gradient Tolerance:

Operating Interval:

Input/Output:

0.01 nT (gamma), magnetic field and gradient.

0.2 nT over operating range.

20,000 to 120,000 nT, automatic tuning requiring initial set-up.

Over 10,000 nT/m.

3 seconds minimum, faster optional. Readings initiated from keyboard, external trigger, or carriage return via RS-232-C.

6 pin weatherproof connector, RS-232C, and (optional) analog output.

Power Requirements: 12V, 200mA peak (during polarization), 30 mA standby. 300mA peak ingradiometer mode.

Power Source:

Battery Charger:

Operating Ranges:

Internal 12 V, 1.9 Ah sealed lead-acid battery standard, others optional. An External 12V power source can also be used.

Input: 110/220 VAC, 50/60 Hz and/or 12 VDC (optional). Output: 12V dual level charging.

Temperature: -400C to +600C.Battery Voltage: 10.0V minimum to 15V maximum.Humidity: up to 90Vc relative, non condensing.

Storage Temperature: -500C to +650C

Dimensions: Console: 223 x 69 x 240 mm.Sensor Staff: 4 x 450 mm sections.Sensor: 170 x 71 mm dia.Weight: Console 2.1 kg, Staff 0.9 kg, Sensors 1.1 kg each.

Physical Overview

The parts of the GSM-19 magnetometer/gradiometer are as follows:

* The sensor is a dual coil type designed to reduce noise and improve gradient tolerance. The coils are electrostaticaly shielded and contain a proton rich liquid in a pyrex bottle, which also acts as an RF resonator.

* The sensor is coaxial, typically RG-58/U, up to 100 m long.* The staff is made of strong aluminum tubing sections (plastic staff optional). This construction

allows for a selection of sensor elevations above ground during surveys. For best precision the full staff length should be used. Recommended sensor separation in gradiometer mode is one staff section (56 cm from sensor axis to sensor axis), although two or more sections are sometimes used for maximum sensitivity.

December 31, J 996 Avalon Ventures Ltd.


The console contains all the electronic circuitry. It has a 16 key keyboard, a 4 x 20 characteralphanumeric display, and sensor and power/input/output connectors. The keyboard also servesas an ON-OFF switch.The power/input/output connector also serves as RS232C input/output and optionally as analogoutput and/or contact closure triggering input.The keyboard, front panel, and connectors are sealed i.e. the instrument can operate under rainyconditions.The charger has 2 levels of charging, full and trickle, switching automatically from one to another,input is normally 110V 50/60 Hz. Optionally, 12 VDC input can be provided.The all-metal housing of the console guarantees excellent EMI protection.

Software Version 4.0

There are several major versions of software for the GSM-19. As of August 92, GEM Systems added a major software upgrade to its GSM-19 family, enhancing its capabilities. This new generation of software (version 4.0) has the following advantages:1. Diurnal correction (reduction) with interpolation can be used in conjunction with other GSM-19

models with software version 4.0. This allows the base mag to run with longer cycle time. Previous software could do interpolation only with fast GSM-19 types.

2. Memory filing system. Now 50 files can be stored in a directory, and mode of operation can be changed without erasing memory. With the software previous to version 4.0, only l file could be retained in memory, and this would be lost when modes of operation were switched.

3. Line and station numbers have been enlarged. Lines can now be 5 digits as opposed to 4 digits in previous software. Station numbers are now 7 digits as opposed to 6 in the previous software.

4. Transmission time has been significantly shortened.

8.0 Results

The magnetic survey has outlined four areas of similar magnetic response which are interpreted as stratigraphic regimes.

Two areas of relative high magnetic relief and high magnetic magnitude occur on the property and are interpreted as corresponding to volcanic stratigraphy and associated banded iron formations. One area occurs north of Highway 11 and the second area from the north boundary of Claim 1202333 south to Line 83 E at 75+00 N and Line 67 E at 83+50 N.

Two areas of relatively low magnetic relief with low to moderate magnetic magnitude outlined by the survey are interpreted as corresponding to sedimentary stratigraphy. One of these areas occurs between the interpreted volcanic regimes and the other in the southwest corner of the property.

A linear anomaly of high magnetic magnitude strikes at 115" from Line 67 E at 81+00 N to the southeast corner and is interpreted as corresponding to a unit of banded iron formation occurring at the contact of the sedimentary and volcanic stratigraphy.



STATEMENT OF QUALIFICATIONS

I, Douglas P. Parker, of 365 Lark Street, Thunder Bay, Ontario, hereby certify:

I am a graduate of Lakehead University in Thunder Bay, Ontario and hold an Honours Bachelor of Science (Geology) Degree, 1986.

I am presently employed as Senior Geologist with Avalon Ventures Ltd. of 777 Red River Road, Thunder Bay, Ontario.

I have been employed as an exploration, mining and research geologist with various government agencies and mining companies since 1986.

Dated in Thunder Bay, Ontario this 31st day of December, 1996.

Douglas P. Parker, B.Se.


and Mlne8

Personal Information collected on this form ic nKtoin Mining Act, the Inform Questions about this f 'j Ramsey Lake Ra

Instructions: - F

Declaration of Assessment Work Performed on Mining LandMining Act, Subsection 65(2) and 66(3), R.8.0.1 WO

52A12SW0039 2.17036 BLACKWELL

ui prim in IRK.

900

Transaction Number (office use)

4/ -00 JAssessment Files Research Imaging

nd 66(3) of the Mining Act. Under section 8 of the t work and correspond with the mining land holder, if Northern Development and Mines, 6th Floor,

tom, use for036

1. Recorded holder(s) (Attach a list if necessary)Name Client Number

Address

15/r-v r^/o P c 3 M 7

Telephone Number

Fax Number

Name

Address

Client Number

Tolopnono

c?Fax Number

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

Geotechnical: prospecting, surveys, assays and work under section 18 (regs) D Physical: drilling, stripping,

trenching and associated assays Rehabilitation

Work Type Office Use

Commodity

Total S Value of ^Work Claimed ft /Qf f 3 j

SSSSf (P? 76 3;Day l Month | YMT Day | Month | YMT

NTS Reference

Global Positioning System Data (if available) Township/Area

M or~ G-Plan Number

Mining DMston

Resident GeologistDistrict nrfi*t

Please remember to: - obtain a work permit from the Ministry of Natural Resources as required;- provide proper notice to surface rights holders before starting work;- complete and attach a Statement of Costs, form 0212;- provide a map showing contiguous mining lands that are linked for assigning work;- include two copies of your technical report.

3. Person or companies who prepared the technical report (Attach a list if necessary)Name

Name

Telephone Number7^7-

Telephone Number

Address Fax Number

neeE iveDName Telephone Number

NumberAddress Fax

MINING LANDS BRANCH

4. Certification by Recorded Holder or Agent

rr, , do hereby certify that l have personal knowledge of the facts set(Print Name)

focthin this^JJgclaration of Assessment Work having caused the work to be performed or witnessed the same during or ahfyslts complelten and, to/trie best of my knowledge, the annexed report is true.

5. Work to be recorded and distributed. Work can only be assigned to claims that are contiguous (adjoining) to the. mining land where work was performed, at the time work was performed. A map showing the contiguous link must accompany this form.

Mining Claim Number. Or If work was done on other eligible mining land, show in this column the location number indicated on the claim map.

eg

eg

eg

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

TB 7827

1234567

1234568

IZ-OZ-I 3 f

(2. C? 2.333

Number of Claim Units. For other mining land, list hectares.

16 ha

12

2

l ~2-

1 5

Column Totals

Value of work performed on this claim or other mining land.

S26, 825

0

S 8, 892

5465

sâ

Itf 13 l

Value of work applied to this claim.

N/A

S24,000

S 4,000

Vtoo4000

tA

IDS' O C

Value of work assigned to other mining claims.

S24.000

0

0

S34-

,.170

53^

Bank. Value of work to be distributed at a future date.

12,825

0

S4.892

131

36

1 3 1

, do hereby certify that the above work credits are eligible under(Print Full Name)

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.JrdeeT Authorized In Writing Dot*

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

Some of the credits claimed in this declaration may be cut back. Please check (** ) in the boxes below to show how

you wish to prioritize the deletion of credits:

O 1. Credits are to be cut back from the Bank 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 all claims listed in this declaration; or

O 4. Credits are to be cut back as prioritized on the attached appendix or as folkRECEIVED

FEB 7 - 1997

MINING LANDS BRANCHNote: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first,

followed by option number 2 if necessary.

For Office Use OnlyK -r * Received Stamp Deemed Approved Date

Ktt, 3,/tf?bate Notification SentMining D ivision

JAN - 3 1997 RECEIVED Approved for Recordjpg by Mining Packer (Signature)

Total Value of Credit Approved

Ontario Ministry ofNorthern Developmentand Mines

Statement of Costs for Assessment Credit

Transaction Number (office use)

Personal information collected on this form Is obtained under the authority of subsection 6(1) of the Assessment Work Regulation 6/96. Under section 8 of the Mining Act, the information Is a public record. This information will be used to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to the Chief Mining Recorder, Ministry of Northern Development and Mines, 6th Floor, 933 Ramsey Lake Road, Sudbury, Ontario, P3E 6B5.

Q.Work Type

L DEL Grrr-WC

M/L^yje-nr îafey

SWP&SLI//S \nO

l^-^Pf^R-T] -^

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

7 1 (L \S *-— 1 ' o r*~.t*~4

2-1.6 K*^

t* IVrYS

Associated Costs (e.g. supplies, mobilization and demobilization).

~^t— cn^Vi *~) c? /VA^T} I^T^J ^j i i t*j(^~,

Transportation Costs

-2~l(3k^ d S S^/A^L

Food and Lodging Costs

Cost Per Unit of work

32.7 2^

-jif.^-

^5^0^

3B i

Total Value of Assessment Work

L f 0 t5 0Total Cost

7C7O-^-

/4 iz.^2-

'Zl OO"~

15^

73^

10^10^-

Calculations of Filing Discounts:

~\. Work filed within two years of performance is claimed at 10044) of the above Total Value of Assessment Work. 2. If work is filed after two years and up to five years after performance, it can only be claimed at SO'Vb 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 correction/clarificatii Minister may reject all or part of the assessment work submitted. TT FCT-fv E D

Certification verifying costs;

l -sl, , do hereby certify, that the amounts shown are

FEB 7 - 1997

MINING LANDS BRANCHas may

(please print full name)

reasonably be 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.

ny posit'?i with signing authority)l am authorized

IS^hjfe-^ —^" Dale

Ministry of Ministere duNorthern Development Developpement du Nordand Mines et des Mines Ontario

Geoscience Assessment OfficeMarch 11, 1997 933 Ramsey Lake Road

6th Floor Sudbury, Ontario

Michael Weirmeir P3E 6B5Mining Recorder435 James Street South Telephone: (705) 670-5853Suite BOOS Fax: ( 705 ) 670-5863

Thunder Bay, ONP7E 6E3

Dear Sir or Madam: Submission Number: 2.17036

Status Subject: Transaction Number(s): W9740.00001 Deemed 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.

NOTE: This correspondence may affect the status of your mining lands. Please contact the Mining Recorder to determine the available options and the status of your claims.

If you have any questions regarding this correspondence, please contact Bruce Gates by e-mail at [email protected] or by telephone at (705) 670-5856.

Yours sincerely,

ORIGINAL SIGNED BYRon C. GashinskiSenior Manager, Mining Lands SectionMines and Minerals Division

Correspondence ID: 10648

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2.17036

Date Correspondence Sent: March 11, 1997 Assessor: Bruce Gates

Transaction Number

First Claim Number

W9740.00001 1202134

Section:14 Geophysical MAG

Township(s) l A rea(s)

BLACKWELL

Status

Deemed Approval

Approval Date

March 10, 1997

Correspondence to:

Mining Recorder Thunder Bay, ON

Resident Geologist Thunder Bay, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):

Douglas P. Parker THUNDER BAY, ONTARIO

ALLAN J WING THUNDER BAY, Ontario

ARTHUR WALLACE THUNDER BAY, Ontario

Page: l

Correspondence ID: 10648

NOTESAREAS WrrHDRAIW FROM DISPOSITION

HR.Q. ~ MHNS WCHTS ONLY 8410. - SURflKE RIGHTS ONLT

- MNN6 AND SUWKX RIGHTS

SURFACE RIGHTS ONLY WITHDRAWN F SHAKING. ORDER W-~3-54f8'. NWR, _ATED 87/11/05. CLOSED DUMP SITE,

NOTICE:

l he information trial appears on this map has been compiled from various sources and accuracy is not guaranteed. ~!"hose wishing to staKe rrininc claims should cjnl'jlt with the Mining Recorder, Ministry of Northern Development and Mines, for additional information on the status of the lands shown hereon.

Drift Lake Q- 713 G- 749Oskondaga Ri"er

Projected Line

1194616

1 1210707 112465.../"'-24653

.0.257830

I2IOI9I v. v/"~~ "'•^^^r- — — — — — — —\ ^^-

85029 r12104621032883D2-7 J

21033

' lk07873g 11206677

Projected Line S

00to(D

lC

O)

o O

T -^x Dawson Road Lots

G- 64948" 35' 18" appro*.-—— ——

90" 01' 3

Laurie Twp. G-669

LEGENDHIGHWAY AND ROi.'TE No

T fi A i ; -.

RA! L W A T AN: - ' -^ ,*rt Y

(J T l : IT Y \ t S

NON PtRtNMA. STREAM

FLOODING'' r; r '" -."ir-'iNG RIGHTSSUBlJi^'S '1\ O -. Mf-Mcn ; p, Afs

OR:- \A: SHARE Li\ c

MARSH ,;P V: .K "

DISPOSITION OF CROWN LANDS

lYPUQf-DOCUMENT

PATtNT SUR C AiÊ 81 ViNING RIGHTS^.,

. SURFACE RIGHTS ONLY. ......... MlNlNuRlGriiSONLY^

LEASE,SURFACE 4 MINING RIGHTS......

SURFACE RIGHTS ONLY...........

MINiNG R!Gt-*TSONLY...---. ..,.

LlCtN',.t UF uCuuf ATION .-- - .. ..

ORDtH iN-COUNCIL . ..... ^ ..

SYMBOL

T

OC

CANCELLED .. . ...-...--.^............................

SAND 8. GRAVEL .. _ .^.. __ ...,......................... 0/LAND USE PERMITS FOR COVMERÎA^ -QURISM. OUTTOS" CAMPS x/

NOTE' M INING RIGHTS IN P ARCELS PATENTED PRIOR TO MAY 6.1913 VFSTFD IN ORIGINAL PATENTEE B Y T HE PUBLIC LANDS AC i W s O 1970 C-iA'' 380. SEC. 63, S UBSEC 1.

SCALE 1 INCH = 40CHAJ

" " V17 * *

4OOO 6OOO 8000

1000 1 K M

2000

TOWNSHIP

RECEIVED

' FEB7 -1997

M iMiKirt i AMDS BRANCH

BLACKWELLMN R ADMINISTRATIVE DISTRICT

THUNDER BAYMINING DIVISION

THUNDER BAYLAND TITLES/ REGISTRY DIVISION

THUNDER BAYMinistry of LandNatural Management

Resources BranchOntario

DatjM ARCH. 1 982

In Service Dec. 15/95.7^ \C-V

Nuiahir

G-644

CM

Powerlirre

120cT34

— — CI o in Line

52A12SW0039 2.17036 BIACKMELL

RECEIVED

FEB 7 - 1997

MINING LANDS BRANCH

(meters)

AVALON VENTURES LTD.MAGNETDMETER SURVEY

KASPAR PROPERTYBASEUIC AZIMUTH i 090*

SCALE ~ l i 5000 SURVEY BY i VCS

DATE i l3/30/96 NTS i 58 A/18 SE

VYTYL EXPLOBATKMf UBKVMXy

Map]

LEGEND

r O Wer" (if'it*

Roil rood

Cloin Line

Rood

52A12SW0039 2.17036 BLACKWELL 220

RECEIVED

t FEB7 -1997

MINING LANDS BRANCH

100

SCALE

100 200 300

(meters)

InctrunfHtr, tt ii

GEN niTM. SC56* nT

AVALON VENTURES LW.MAGNETDMETER SURVEY

KASPAR PROPERTYBASELIfC AZIMUTH i 090*

0*

SCALE * l i 5000 SURVEY BY i VES

HATE i 12/30/96 NTS i 52 A/12 SE

VYTYL HPLQKAT10N SDEVICES

Map 2

Documents

RPT ON THE GROUND MAG SURVEY