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PO Box 219, 14579 Government Road, Larder Lake, Ontario, P0K 1L0, Canada Phone (705) 643-2345 Fax (705) 643-2191 www.explorationservices.ca
SKEAD HOLDINGS LTD.
Magnetometer Survey
Over the
Hughes Property Hughes Township, Ontario
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP Page ii
TABLE OF CONTENTS
1. SURVEY DETAILS .................................................................................................................................... 3
1.1 CLIENT ......................................................................................................................................... 3 1.2 LOCATION ..................................................................................................................................... 3 1.3 ACCESS ........................................................................................................................................ 3 1.4 SURVEY GRID ............................................................................................................................... 4
2. SURVEY WORK UNDERTAKEN ................................................................................................................. 5 2.1 SURVEY LOG ................................................................................................................................. 5 2.2 PERSONNEL .................................................................................................................................. 5 2.3 SURVEY SPECIFICATIONS .............................................................................................................. 5
3. OVERVIEW OF SURVEY RESULTS .............................................................................................................. 6
3.1 SUMMARY INTERPRETATION ........................................................................................................... 6
LIST OF APPENDICES
APPENDIX A: STATEMENT OF QUALIFICATIONS APPENDIX B: THEORETICAL BASIS AND SURVEY PROCEDURES APPENDIX C: INSTRUMENT SPECIFICATIONS APPENDIX D: LIST OF MAPS (IN MAP POCKET)
LIST OF TABLES AND FIGURES
Figure 1: Location of the Hughes Property ............................................................................................. 3 Figure 2: Claim Map with Magnetic Traverses ....................................................................................... 4 Figure 3: Magnetic Plan Map .................................................................................................................. 6 Table 1: Survey Log ............................................................................................................................... 5
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP Page 3
1. SURVEY DETAILS
This project is known as the Hughes Property.
1.1 CLIENT SKEAD HOLDINGS LTD.
28 Ford St. Sault Ste. Marie, Ontario P6A 4N4
1.2 LOCATION The Hughes Property is located approximately 50km northeast of Sault Ste Marie, Ontario. The property covers claim 1192194 located in Hughes Township, within the Sault Ste. Marie Mining Divi-sion.
Figure 1: Location of the Hughes Property
1.3 ACCESS Access to the property was attained with a 4x4 truck via an access road heading north from highway 556 approximately 50km east of its intersection with highway 17. This access road was driven for 12km and the final 1km to the property was travelled on foot.
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP Page 4
1.4 SURVEY GRID The traversed lines were established using a GPS in conjunction with the execution of the survey. The GPS operator would establish sample locations while remaining approximately 12.5m in front of the mag operator. GPS waypoints and mag samples were taken every 12.5m along these controlled traverses. The GPS used was a Garmin GPS Map 62S.
Figure 2: Claim Map with Magnetic Traverses
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP Page 5
2. SURVEY WORK UNDERTAKEN
2.1 SURVEY LOG Date Description Line Min Extent Max Extent Total
Survey (m)
20 September 2012 Locate the survey area and conduct magnetometer survey, 0 350S 525N 875
100E 300S 575N 575 200E 250S 625N 575 300E 200S 675N 600 400E 150S 575N 525 500E 100S 375N 375 600E 50S 150N 200 0N 200W 700E 900 375N 100W 450E 550 475N 400E 500E 100
Table 1: Survey Log
2.2 PERSONNEL Bruce Lavalley and Claudia Moraga of Britt, Ontario conducted all the magnetic data collection.
2.3 SURVEY SPECIFICATIONS The survey was conducted with a GSM-19 v7 Overhauser magnetometer with a second GSM-19 magnetometer for a base station mode for diurnal correction.
A total of 5.275 line kilometers of magnetic survey was conducted on September 20th, 2012. This consisted of 422 magnetometer samples taken at 12.5m intervals.
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP Page 6
3. OVERVIEW OF SURVEY RESULTS
3.1 SUMMARY INTERPRETATION
Figure 3: Magnetic Plan Map
The magnetic signature from the survey indicates two potential magnetic signatures within the survey area. The primary signature appears to be in the southern part of the claim. This region appears as a uniform magnetic signature and most likely represents an underlying volcanic unit.
To the north, there appears to be a rather strong magnetic response. This response is characterized by strong increases and decreases within the magnetic signature. From this response, it would ap-pear that a strongly magnetic east-west feature exists. This may indicate an intrusive dike crossing the area, however, the entire north end exhibits a similar signature. This may indicate that an intru-
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP Page 7
sive gabbro exists with the stronger magnetic response being a result of a contact or chill margin. This may also indicate the presence of a mineralized stringer zone.
With the topography of the area, this region most likely can be investigated through prospecting. This would allow better identification of the anomalies.
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP
APPENDIX A
STATEMENT OF QUALIFICATIONS
I, C. Jason Ploeger, hereby declare that:
1. I am a professional geophysicist with residence in Larder Lake, Ontario and am presently employed as a Geophysicist and Geophysical Manager of Canadian Exploration Services Ltd. of Larder Lake, Ontar-io.
2. I am a Practicing Member of the Association of Professional Geoscientists, with membership number 2172.
3. I graduated with a Bachelor of Science degree in geophysics from the University of Western Ontario, in
London Ontario, in 1999. 4. I have practiced my profession continuously since graduation in Africa, Bulgaria, Canada, Mexico and
Mongolia.
5. I am a member of the Ontario Prospectors Association, a Director of the Northern Prospectors Associa-tion and a member of the Society of Exploration Geophysicists.
6. I do not have nor expect an interest in the properties and securities of Skead Holdings Ltd.
7. I am responsible for the final processing and validation of the survey results and the compilation of the
presentation of this report. The statements made in this report represent my professional opinion based on my consideration of the information available to me at the time of writing this report.
C. Jason Ploeger, P.Geo., B.Sc.
Geophysical Manager Canadian Exploration Services Ltd.
Larder Lake, ON October 10, 2012
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP
APPENDIX B
THEORETICAL BASIS AND SURVEY PROCEDURES
TOTAL FIELD MAGNETIC SURVEY Base station corrected Total Field Magnetic surveying is conducted using at least two synchronized magnetome-ters of identical type. One magnetometer unit is set in a fixed position in a region of stable geomagnetic gradi-ent, and away from possible cultural effects (i.e. moving vehicles) to monitor and correct for daily diurnal drift. This magnetometer, given the term ‘base station’, stores the time, date and total field measurement at fixed time intervals over the survey day. The second, remote mobile unit stores the coordinates, time, date, and the total field measurements simultaneously. The procedure consists of taking total magnetic measurements of the Earth’s field at stations, along individual profiles, including Tie and Base lines. A 2 meter staff is used to mount the sensor, in order to optimally minimize localized near-surface geologic noise. At the end of a survey day, the mobile and base-station units are linked, via RS-232 ports, for diurnal drift and other magnetic activity (iono-spheric and sferic) corrections using internal software.
For the gradiometer application, two identical sensors are mounted vertically at the ends of a rigid fiberglass tube. The centers of the coils are spaced a fixed distance apart (0.5 to 1.0m). The two coils are then read simul-taneously, which alleviates the need to correct the gradient readings for diurnal variations, to measure the gradi-ent of the total magnetic field.
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP
APPENDIX C
GSM 19
Specifications Overhauser Performance
Resolution: 0.01 nT Relative Sensitivity: 0.02 nT Absolute Accuracy: 0.2nT Range: 20,000 to 120,000 nT Gradient Tolerance: Over 10,000nT/m Operating Temperature: -40°C to +60°C
Operation Modes
Manual: Coordinates, time, date and reading stored automatically at min. 3 second interval. Base Station: Time, date and reading stored at 3 to 60 second intervals. Walking Mag: Time, date and reading stored at coordinates of fiducial. Remote Control: Optional remote control using RS-232 interface. Input/Output: RS-232 or analog (optional) output using 6-pin weatherproof connector.
Operating Parameters
Power Consumption: Only 2Ws per reading. Operates continuously for 45 hours on standby. Power Source: 12V 2.6Ah sealed lead acid battery standard, other batteries available Operating Temperature: -50°C to +60°C
Storage Capacity
Manual Operation: 29,000 readings standard, with up to 116,000 optional. With 3 VLF stations: 12,000 standard and up to 48,000 optional.
Base Station: 105,000 readings standard, with up to 419,000 optional (88 hours or 14 days uninterrupt-ed operation with 3 sec. intervals)
Gradiometer: 25,000 readings standard, with up to 100,000 optional. With 3 VLF stations: 12,000, with up to 45,000 optional.
Omnidirectional VLF
Performance Parameters: Resolution 0.5% and range to ±200% of total field. Frequency 15 to 30 kHz.
Measured Parameters: Vertical in-phase & out-of-phase, 2 horizontal components, total field coordi-nates, date, and time.
Features: Up to 3 stations measured automatically, in-field data review, displays station field strength continuously, and tilt correction for up to ±10° tilts.
Dimensions and Weights: 93 x 143 x 150mm and weighs only 1.0kg.
Dimensions and Weights
Dimensions: Console: 223 x 69 x 240mm Sensor: 170 x 71mm diameter cylinder Weight:
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP
Console: 2.1kg Sensor and Staff Assembly: 2.0kg
Standard Components
GSM-19 magnetometer console, harness, battery charger, shipping case, sensor with cable, staff, instruction manual, data transfer cable and software.
Taking Advantage of a “Quirk” of Physics
Overhauser effect magnetometers are essentially proton precession devices except that they produce an order-of magnitude greater sensitivity. These "supercharged" quantum magnetometers also deliver high absolute accu-racy, rapid cycling (up to 5 readings / second), and exceptionally low power consumption.
The Overhauser effect occurs when a special liquid (with unpaired electrons) is combined with hydrogen atoms and then exposed to secondary polarization from a radio frequency (RF) magnetic field. The unpaired electrons transfer their stronger polarization to hydrogen atoms, thereby generating a strong precession signal-- that is ideal for very high-sensitivity total field measurement. In comparison with proton precession methods, RF signal generation also keeps power consumption to an absolute minimum and reduces noise (i.e. generating RF fre-quencies are well out of the bandwidth of the precession signal).
In addition, polarization and signal measurement can occur simultaneously - which enables faster, sequential measurements. This, in turn, facilitates advanced statistical averaging over the sampling period and/or increased cycling rates (i.e. sampling speeds).
• The unique Overhauser unit blends physics, data quality, operational efficiency, system design and op-tions into an instrumentation package that ... exceeds proton precession and matches costlier optically pumped cesium capabilities
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP
APPENDIX C
GARMIN GPS MAP 62S
Physical & Performance: Unit dimensions, WxHxD: 2.4" x 6.3" x 1.4" (6.1 x 16.0 x 3.6 cm)
Display size, WxH: 1.43" x 2.15" (3.6 x 5.5 cm); 2.6" diag (6.6 cm)
Display resolution, WxH: 160 x 240 pixels
Display type: transflective, 65-K color TFT
Weight: 9.2 oz (260.1 g) with batteries
Battery: 2 AA batteries (not included); NiMH or Lithium recommended
Battery life: 20 hours
Waterproof: yes (IPX7)
Floats: no
High-sensitivity receiver: yes
Interface: high-speed USB and NMEA 0183 compatible
Maps & Memory: Basemap: yes
Preloaded maps: no
Ability to add maps: yes
Built-in memory: 1.7 GB
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP
Accepts data cards: microSD™ card (not included)
Waypoints/favorites/locations: 2000
Routes: 200
Track log: 10,000 points, 200 saved tracks
Features & Benefits: Automatic routing (turn by turn routing on roads): yes (with optional mapping for detailed roads)
Electronic compass: yes (tilt-compensated, 3-axis)
Touchscreen: no
Barometric altimeter: yes
Camera: no
Geocaching-friendly: yes (paperless)
Custom maps compatible: yes
Photo navigation (navigate to geotagged photos): yes
Outdoor GPS games: no
Hunt/fish calendar: yes
Sun and moon information: yes
Tide tables: yes
Area calculation: yes
Custom POIs (ability to add additional points of interest): yes
Unit-to-unit transfer (shares data wirelessly with similar
units): yes
Picture viewer: yes
Garmin Connect™ compatible (online community where
you analyze, categorize and share data): yes
• Specifications obtained from www.garmin.com
Magnetometer SurveyHughes Property Hughes Township, Ontario
Skead Holdings Ltd.
CANADIAN EXPLORATION SERVICES LIMITED PLAN-EXECUTE-DISCOVER-DEVELOP
APPENDIX D
LIST OF MAPS (IN MAP POCKET)
Posted profiled TFM plan map (1:2500) 1) SKEAD-HUGHES-MAG-CONT
Grid Sketch on Claim Map (1:20000)
2) SKEAD-HUGHES -GRID
TOTAL MAPS = 2
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(meters)WGS 84 / UTM zone 17N
Scale 1:2500
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TOTAL FIELD MAGNETICnanoTesla (nT)
TOTAL FIELD MAGNETIC CONTOURED PLAN MAPBase Station Corrected
Posting Level: 0nTField Inclination/Declination: 72degN/8degW
Station Seperation: 12.5 metersTotal Field Magnetic Contours: 100nT
GSM-19 OVERHAUSER MAGNETOMETER/VLF v7
SKEAD HOLDINGS LTD.
HUGHES PROPERTYHughes Township, Ontario
Drawing: SKEAD-HUGHES-MAG-CONT
Receiver Operated By: Bruce LavalleyGPS Operated By: Claudia MoragaProcessed by: Claudia MoragaMap Drawn By: C Jason Ploeger, P.Geo.October 2012
5187
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