CARINA ENERGY INC. REPORT ON HELICOPTER-BORNE AeroTEM ... · over Areas 2, 3 and 4; lines were...

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Savaria Geophysics Inc. CARINA ENERGY INC. REPORT ON HELICOPTER-BORNE AeroTEM SYSTEM ELECTROMAGNETIC AND MAGNETIC SURVEYS, ENDIKAI LAKE- LITTLE WHITE RIVER – FLACK LAKE AREA, ALBANEL, NICHOLAS AND RAIMBAULT TOWNSHIPS, SAULT ST. MARIE MINING DIVISON, ONTARIO MINERAL CLAIMS Albanel Township SSM4200274, SSM4200275, SSM4213460, SSM4213461, SSM4213465, SSM4213466, SSM4213490, SSM4213491 and SSM42133494 -SSM4213499 Nicholas Township SSM3018325, SSM301826, SSM3018327, SSM4213463 and SSM4213468 Raimbault Township SSM4215017-SSM-4215022 NTS 41 J/10 and NTS 41 J/11 46° 32' N - 46° 36' N 82° 46' W - 83° 20’W /] SAVARIA GEOPHYSICS INC. Francis L. Jagodits, P. Eng., Consulting Geophysicist December, 2008

Transcript of CARINA ENERGY INC. REPORT ON HELICOPTER-BORNE AeroTEM ... · over Areas 2, 3 and 4; lines were...

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Savaria Geophysics Inc.

CARINA ENERGY INC.

REPORT ON HELICOPTER-BORNE AeroTEM SYSTEM

ELECTROMAGNETIC AND MAGNETIC SURVEYS,

ENDIKAI LAKE- LITTLE WHITE RIVER – FLACK LAKE AREA, ALBANEL, NICHOLAS AND RAIMBAULT TOWNSHIPS,

SAULT ST. MARIE MINING DIVISON, ONTARIO

MINERAL CLAIMS

Albanel Township

SSM4200274, SSM4200275, SSM4213460, SSM4213461, SSM4213465,

SSM4213466, SSM4213490, SSM4213491 and SSM42133494 -SSM4213499

Nicholas Township SSM3018325, SSM301826, SSM3018327, SSM4213463 and SSM4213468

Raimbault Township

SSM4215017-SSM-4215022

NTS 41 J/10 and NTS 41 J/11

46° 32' N - 46° 36' N 82° 46' W - 83° 20’W

/]

SAVARIA GEOPHYSICS INC.

Francis L. Jagodits, P. Eng., Consulting Geophysicist

December, 2008

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TABLE OF CONTENTS SUMMARY.. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 1. INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 2. LOCATION and ACCESS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 3. CLAIMS INFORMATION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4. HISTORICAL DATA. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 5. GEOLOGY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5 6. HELICOPTER-BORNE AeroTEM ELECTROMAGNETIC - . . . . . . . . . 6 MAGNETIC SURVEY

6.1 Instrumentation and Specifications.. . . . . . . . . . . . . . . . . . . . . . . . . . 6 6.2 Data Reduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .. . . .7 6.3 Presentation of the Results. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

7. DISCUSSION OF THE RESULTS. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .9

7.1 General. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9 7.2 Magnetic and Electromagnetic Surveys. . . . . . . . . . . . . . . . . . . . . . . 9

Areas 1 and 4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10 Area 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11 Area 3. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .11 8. CONCLUSIONS and RECOMMENDATIONS. . . . . . . . . . . . . . . . . . . . .11 9. REFERENCES. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .13 10. APPENDIX Writer’ Qualifications Table III List of Personnel

LIST OF FIGURES Figure 1 Project Location and Survey Areas . . . . . . . . . . . . . . . . . . . . . . . . . . . .3

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LIST OF TABLES

Table I Survey Statistics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 Table II List of Claims Covered by the Airborne Survey. . . . . . . . . . . . . . . . . . 4 Table III List of Personnel. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . in the Appendix

LIST OF ACCOMPANYING MAPS

(under separate cover in “.pdf” and “geosoft” formats) Map Title Scale 1 Total Magnetic Intensity, Areas 1, 2, 3 and 4. 1:20 000 2 Calculated Vertical Gradient of TMI, Areas 1, 2, 3 1:20 000 and 4. 3 AeroTEM Off-time Profiles, Areas 1, 2, 3 and 4. 1:20 000 Interpretation 4 Interpretation Map 1:20 000

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Savaria Geophysics Inc.

SUMMARY

During March and April of 2007, a combined helicopter-borne electromagnetic-magnetic survey was conducted by Aeroquest Limited of Mississauga, Ontario over the properties of Carina Energy Inc. of Toronto. The purpose of the surveys was to obtain lithological and structural information and to locate conductors that may indicate massive sulphide occurrences.

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1. INTRODUCTION Carina Energy Inc. of Toronto retained Aeroquest Limited of Mississauga, Ontario to conduct a combined helicopter-borne AeroTEM system electromagnetic-magnetic survey covering their claim in the Endikai Lake-Little White River–Flack Lake Area. The claims are about 35 km northwest of Elliot Lake Ontario (Figure 1). The claims are covered in for blocks (areas) illustrated on Figure 1. The survey line interval was 100 m; the flight line direction is north-south over Areas 2, 3 and 4; lines were flown in a northwest-southeast direction over Area1. The survey took place during the periods of February 26th and March 3rd and on April 24th, 2007. The survey statistics are below:

TABLE I

Helicopter-borne AeroTEM Electromagnetic and Magnetic Survey Statistics

874.5 line kilometers including tie-lines33

The following report includes claims information, survey description, and discussion of the results, conclusions and recommendations.

2. LOCATION AND ACCESS

The survey areas cover about 80 km2 and it is about halfway between Sudbury and Sault St. Marie in Northern Ontario. The survey areas can be accessed via Roads 108 and 546. As noted above the claims are about 35 km northwest of Elliot Lake.

3. CLAIMS INFORMATION The claims that are covered by the helicopter-bone survey are given in the following Table II. 4. HISTORICAL DATA

“Over 135,000 tons of uranium were mined in the Elliot Lake area to 1989. At that time mineable reserves were calculated at over 400,000 tons at $200 per kg. (current price over $300). Uranium Mine zones (Structures/Channels?) trend Northwest-Southeast (Fig. 5). Most of this was in the Matinenda formation unconformably overlying basement granites and volcanics. Source rocks for uranium are postulated as the high potash-thorium-uranium basement rocks indicated from geological mapping and radiometric surveys. A common feature in many mineral deposits associated with mineralization (uranium and base metals) is albitic-soda(Na) alteration (metasomatism). This feature has been observed by M.V. White associated with uranium ores in the Central Mineral Belt of Labrador (White, M.V. and Martin, R.F., 1980). Here uranium ore zones occur in shear zones dissecting potash-rich felsic volcanics and intrusives. The ore zones are highly enriched in sodium and depleted in potash. M.V. White postulates that NaCl solutions

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Location Map

Survey Areas Figure 1

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TABLE II

List of Claims Covered by the Airborne Survey

Claim No. Recording Date

Units Township

ALBANEL TWP.

SSM4200274 2007-Jan.-19 16 Albanel (G-3257) SSM4200275 2007-Jan.-19 16 Albanel (G-3257) SSM4213460 2007-Jan.-19 16 Albanel (G-3257) SSM4213461 2007-Jan.-19 16 Albanel (G-3257) SSM4213465 2007-Jan.-19 16 Albanel (G-3257) SSM4213466 2007-Jan.-19 12 Albanel (G-3257) SSM4213490 2007-Jan.-19 8 Albanel (G-3257) SSM4213491 2007-Jan.-19 13 Albanel (G-3257) SSM4213494 2007-Jan.-19 16 Albanel (G-3257) SSM4213495 2007-Jan.-19 16 Albanel (G-3257) SSM4213496 2007-Jan.-19 15 Albanel (G-3257) SSM4213497 2007-Jan.-19 16 Albanel (G-3257) SSM4213498 2007-Jan.-19 16 Albanel (G-3257)

SSM4213499 2007-Jan.-19 16 Albanel (G-3257)

NICHOLAS TWP. SSM3018325 2007-Feb.-05 12 Nicholas (G-3306) SSM3018326 2007-Feb.-05 16 Nicholas (G-3306) SSM3018327 2007-Feb.-05 16 Nicholas (G-3306) SSM4213463 2007-Jan.-19 16 Nicholas (G-3306) SSM4213468 2007-Jan.-19 6 Nicholas (G-3306) RAIMBAULT TWP.

SSM4215017 2007-Feb.-05 16 Raimbault (G-3316) SSM4215018 2007-Feb.-05 14 Raimbault (G-3316) SSM4215019 2007-Feb.-05 16 Raimbault (G-3316) SSM4215020 2007-Feb.-05 14 Raimbault (G-3316) SSM4215021 2007-Feb.-05 16 Raimbault (G-3316) SSM4215022 2007-Feb.-05 16 Raimbault (G-3316)

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were active in leaching and enriching mineralization. Detrital and unconformity uranium common in Elliot Lake may have originated in enriched basement structural zones where it would be channelled and more readily eroded by later drainage processes.

It is also postulated that the Nipissing intrusive base metal and silver-gold occurrences and associated soda/Na alteration zones in the Huronian of the region and Carina properties were also hydrothermal derived products from volcanic basement. (Kretschmar and Nassif, 2008)”.

5. GEOLOGY

“The claims lie within the Precambrian Canadian Shield of Northern Ontario, Canada, on

the boundary between the Southern and Superior Geological Provinces. Huronian sedimentary rocks lie unconformably above Archean basement and are part of the Huronian Supergroup, portions of which extend across the area from Sault Ste Marie in the west to the Cobalt Area near the Québec border in the east.

Uranium mineralization mined to date in the Elliot Lake camp is primarily associated with pyritic quartz-pebble conglomerates, quartzite, quartz arenite and regolith within the Matinenda Formation, which was unconformably deposited directly on the Archean basement rocks. In the Elliot Lake area, Huronian rocks are folded and form a shallow westward plunging, gently folded structures referred to as the Quirke syncline and the Chiblow anticline. The limbs of the Quirke Syncline generally dip from 10 degrees to 20 degrees towards its axis with local variation up to 70 degrees. The majority of past producing uranium deposits are located along the north and south limbs of the Quirke Syncline.

The Matinenda Formation consists mainly of well-sorted subarkoses with locally developed uraniferous conglomerates that are enclosed within zones of “Grit”. The grit is a coarse, angular-grained, sericitic, poorly sorted subarkose. The higher grade uranium mineralization is hosted within layers of quartz-pebble conglomerate that are referred to as “reefs”. The reefs are located within structural “channels” that have most likely formed above topographic depressions in the Archean basement.

The Carina properties are situated northwest of the Quirke Syncline. The underlying rocks on the property are primarily basement intrusives, metasediments, and chloritized metavolcanics. These are overlain by Huronian units, described in detail below. The Huronian sediments have been intruded by dykes and sills of Nipissing Diabase, which generally occur as large sills, up to 100 m in thickness with offshoot narrow dykes that cross-cut the sediments. The youngest geological units are narrow dykes (16 m thick) of possible lamprophyre composition. Geology of the Roberts Twp area claims is similar though the unconformity trend is generally N-S. The Flack Lake fault system in this region consists of five west trending blocks which are bounded by four faults which moved relative to one another. The major movement was along the Flack lake fault [reverse fault dipping 70º S] and Blue fault causing the two blocks south of these faults to be thrust upwards. Carbonate and hematite-bearing quartz veins are associated with this shearing. The fault system appears to have been active for a long period of time and may have

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played a role controlling Nipissing dyke emplacements. The radiogenic Mississagi Formation has been structurally transported closer to surface in the upthrust fault block adjacent to Flack Lake. Outcrops of Nipissing Diabase exposed in Nicholas and Albanel Townships suggest a significant silling event occurred with passive emplacement of the sill positioned at the upper Mississagi / Bruce Fm contact transgressing up section into the Espanola formation. Both unconformity and roll front uranium deposits are possible. Siemiatkowska’s depositional and structural models were modified (Hubachek, 2008) to show multiple Nipissing intrusive injection scenarios in an extensional tectonostratigraphic regime before the onset of compressional plate tectonic movements focused on the Flack lake Structure (White., M. V., P. Hubacheck, Kretschmar, U and Nassif, G.,2008).”

6. HELICOPTER-BORNE AeroTEM ELECTROMAGNETIC - MAGNETIC

SURVEY (Detailed information may be found in Smith, 2007 under separate cover.).

6.1 Instrumentation and Specifications

“A Eurocopter (Aerospatiale) AS350B2+ "A-Star" helicopter - registration C-FDEV was used as survey platform. The helicopter was owned and operated by Wendake Hélicoptère Inc., Québec City, Québec. Installation of the geophysical and ancillary equipment was carried out by Aeroquest Limited in Val D’Or, Québec. The survey aircraft was flown at a nominal terrain clearance of 220 ft (65 metres).

The nominal EM bird terrain clearance is 30 metres, but can be higher in more rugged terrain due to safety considerations and the capabilities of the aircraft. The magnetometer sensor is mounted in a smaller bird connected to the tow rope 17 metres above the EM bird and 21 metres below the helicopter (Figure 4). Nominal survey speed over relatively flat terrain is 75 km/hr and is generally lower in rougher terrain. Scan rates for ancillary data acquisition is 0.1 second for the magnetometer and altimeter, and 0.2 second for the GPS determined position.

The EM data is acquired as a data stream at a sampling rate of 38,400 samples per second and is processed to generate final data at 10 samples per second. The 10 samples per second translate to a geophysical reading about every 1.5 to 2.5 metres along the flight path.

The Aeroquest airborne survey system employs the Geometrics G-823A caesium vapour magnetometer sensor installed in a two metre towed bird airfoil attached to the main tow line, 17 metres below the helicopter (Figure 4). The sensitivity of the magnetometer is 0.001 nanoTesla at a 0.1 second sampling rate. The nominal ground clearance of the magnetometer bird is 51 metres (170 ft.). The magnetic data is recorded at 10 Hz by the RMS DGR-33.

The electromagnetic system is an Aeroquest AeroTEM II time domain towed-bird system. The current AeroTEM II transmitter dipole moment is 38.8 kNIA. The AeroTEM bird is towed 38 metres (125 ft) below the helicopter.

The wave-form is triangular with a symmetric transmitter on-time pulse of 1.10 ms and a base frequency of 150 Hz (Figure 5). The current alternates polarity every on-time pulse. During every Tx on-off cycle (300 per second), 128 contiguous channels of raw X and Z component (and a transmitter current monitor, itx) of the received

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waveform are measured. Each channel width is 26.04 microseconds starting at the beginning of the transmitter pulse. This 128 channel data is referred to as the raw streaming data. The AeroTEM system has two separate EM data recording streams, the conventional RMS DGR-33 and the AeroDAS system which records the full waveform

Navigation is carried out using a GPS receiver, an AGNAV2 system for navigation control, and an RMS DGR-33 data acquisition system which records the GPS coordinates. The x-y-z position of the aircraft, as reported by the GPS, is recorded at 0.2 second intervals. The system has a published accuracy of under 3 metres. A recent static ground test of the Mid-Tech WAAS GPS yielded a standard deviation in x and y of under 0.6 metres and for z under 1.5 metres over a two-hour period (Smith, G. 2007)”.

6.2 Data Reduction

“Prior to any leveling the magnetic data was subjected to a lag correction of -0.1 seconds and a spike removal filter. The filtered aeromagnetic data were then corrected for diurnal variations using the magnetic base station and the intersections of the tie lines. No corrections for the regional reference field (IGRF) were applied. The corrected profile data were interpolated on to a grid using a random grid technique with a grid cell size of 20 metres. The final leveled grid provided the basis for threading the presented contours which have a minimum contour interval of 5 nT.

The raw streaming data, sampled at a rate of 38,400 Hz (128 channels, 300 times per second) was reprocessed using a proprietary software algorithm developed and owned by Aeroquest Limited. Processing involves the compensation of the X and Z component data for the primary field waveform. Coefficients for this compensation for the system transient are determined and applied to the stream data. The stream data are then pre-filtered, stacked, binned to the 33 on and off-time channels and checked for the effectiveness of the compensation and stacking processes. The stacked data is then filtered, leveled and split up into the individual line segments. Further base level adjustments may be carried out at this stage.

The final field processing step was to merge the processed EM data with the other data sets into a Geosoft GDB file. The EM fiducial is used to synchronize the two datasets. The processed channels are merged into ‘array format; channels in the final Geosoft database as Zon, Zoff, Xon, and Xoff.

The filtering of the stacked data is designed to remove or minimize high frequency noise that can not be sourced from the geology. Apparent bedrock EM anomalies were interpreted with the aid of an auto-pick from positive peaks and troughs in the on-time Z channel responses correlated with X channel responses. The auto-picked anomalies were reviewed and edited by a geophysicist on a line by line basis to discriminate between thin and thick conductor types. Anomaly picks locations were migrated and removed as required. This process ensures the optimal representation of the conductor centres on the maps.

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At each conductor pick, estimates of the off-time conductance have been generated based on a horizontal plate source model for those data points along the line where the response amplitude is sufficient to yield an acceptable estimate. Some of the EM anomaly picks do not display a Tau value; this is due to the inability to properly define the decay of the conductor usually because of low signal amplitudes. Each conductor pick was then classified according to a set of seven ranges of calculated off-time conductance values. For high conductance sources, the on-time conductance values may be used, since it provides a more accurate measure of high-conductance sources. Each symbol is also given an identification letter label, unique to each flight line. Conductor picks that did not yield an acceptable estimate of off-time conductance due to a low amplitude response were classified as a low conductance source. Please refer to the anomaly symbol legend located in the margin of the maps (Smith, G., 2007)”.

6.3 Presentation of the Results

“The geophysical maps accompanying this report are based on positioning in the NAD83 datum. The survey geodetic GPS positions have been projected using the Universal Transverse Mercator projection in Zone 17 north. A summary of the map datum and projection specifications is given following:

Ellipse: GRS 1980 Ellipse major axis: 6378137m, eccentricity: 0.081819191 Datum: North American 1983 - Canada Mean Datum Shifts (x,y,z) : 0, 0, 0 metres Map Projection: Universal Transverse Mercator Zone 17 (Central Meridian 81ºW) Central Scale Factor: 0.9996 False Easting, Northing: 500,000m, 0m

For reference, the latitude and longitude in WGS84 are also noted on the maps. The background vector topography was from Natural Resources Canada 1:50000 NTDB data and the background shading was derived from NASA Shuttle Radar Topography Mission (SRTM) 90 metres resolution DEM data.

The survey area is covered by a single map plates. The map products are listed below.

BASE– Base Map of the project area derived from Natural Resources Canada 1:50000 NTDB TMI – Total Magnetic Intensity colour grid with line contours and EM anomaly symbols CVG – Calculated Vertical Gradient colour grid with EM anomaly symbols EM – AeroTEM off-time profiles Z3 –Z15 and EM anomaly symbols

The coordinate/projection system for the maps is NAD83 – UTM zone 17N. For reference, the latitude and longitude in WGS84 are also noted on the maps.

All the maps show flight path trace, skeletal topography, and conductor picks represented by an anomaly symbol classified according to calculated on-time conductance. The anomaly symbol is accompanied by postings denoting the calculated

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off-time conductance, a thick or thin classification and an anomaly identifier label. The anomaly symbol legend is given in the margin of the maps. The magnetic field data is presented as superimposed line contours with a minimum contour interval of 5 nT. Bold contour lines are separated by 250 nT.

The geophysical profile data is archived digitally in a Geosoft GDB binary format database. A description of the contents of the individual channels in the database can be found in Appendix 3 (of Smith’s report). A copy of this digital data is archived at the Aeroquest head office in Mississauga (Smith, G.,2007).”

The following digital data are provided under separate cover

Geosoft Grid files (.GRD)

Leveled Grid products used to generate the geophysical map images. Cell size for all grid files is 20 meters. Each area has its own grid.

Total Magnetic Intensity - (MAGF)

Total Magnetic Intensity – Mag sensor on Bird (MOBF)

Calculated Vertical Gradient - (CVGF)

Measured Vertical Gradient – (MVGF)

Digital Versions of Final Maps (.MAP, .PDF)

Map files in Geosoft .map and Adobe PDF format.

Profiles (.MAP, .PDF)

EM and Magnetics Profiles of Flight Lines in Geosoft .map and Adobe PDF format

7. DISCUSSION OF THE RESULTS 7.1 General

The interpretation is presented on the base map at a scale 1:20 000. The base maps show screened topography, geographic and UTM co-ordinates and the claims.

7.2 Magnetic and Electromagnetic Surveys

Both, the total magnetic field (TMI) and the computed first vertical gradient of the

total magnetic field (VG) contour maps were studied. Based on the variations of the background magnetic field, on the intensity, strike and shape of the enclosed anomalies magnetic domains were outlined. The magnetic bodies are marked as “magnetic”, as “moderately magnetic” and as “slightly magnetic”. Individual anomalies are discussed and identified as needed. The results are discussed for: (a) Area 1 and 4, Area 2 and Area 3

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Areas 1 and 4 The eastern one–quarter of the Ontario Geological Survey Map 2399, Endekai Lake covers Areas 1 and 4. The known geology from the map was correlated with the magnetic signatures and with faults shown on the geologic maps. The two major rock types mapped are: (a) the Middle Precambrian Nipissing Diabase and (b) the sandstones, siltstones, mudstones and conglomerates of the Gowganda Formation. As one would expect, the diabase is magnetic and their expressions are clearly noted e.g. I1, I2 and I3. The other mapped rocks are sediments that in most cases are non-magnetic. Hence one can argue that all other anomalies are caused by diabase. In many occasions, magnetic anomalies are within areas where sediments are mapped. In these situations the intrusive rocks are buried, good examples are I1 and I2 which occur under sedimentary rocks. Anomaly I2 should be investigated for signs kimberlite. In Domain 1A, characterized by increased magnetic background, the northwest and northeast striking dyke-like anomalies interpreted to show diabase dykes. Conductor C2 occurs within the domain. It is observed on two lines, 10100 and 10110. They are along easterly flank of a northeast striking dyke anomaly. These poor conductors, but should be investigated on the ground. The strike of the anomalies changes in Domain 1B, dominantly east-west. Anomalies I3, I4 and I5 correlate with partially mapped diabase intrusives. Domains 2C, 2D, 2E and 2F describe areas of distinctly lower magnetic background indicating dominantly underlain by non-magnetic rocks; enclosed anomalies have lower amplitudes that may caused by less magnetic intrusive rocks or intrusives that are deeper. Domain G, in the centre of Area 1, includes the aforementioned anomalies I1 and I2. Other short strike length anomalies north of I2 are also interpreted to show diabase intrusions. The longer strike length anomalies, in the west and centre of the domain believed to represent more dyke-like intrusions. In the southwest of Area 1 is Domain 2H. The 3 500 m long, northeast striking anomaly I6 may be the expression of a diabase intrusion in a tabular form. Elsewhere, the lower amplitude, shorter strike length anomalies may indicate minor occurrences of intrusive rocks. The geological map show major faults; these do not seem have magnetic expressions. However, based on the disruptions of the magnetic patterns numerous faults and/or shear zones were interpreted.

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Area 2

The dominant feature of the central Area 2 is Domain 2A. The domain encloses formational, nearly east-west striking anomalies in the west of the Area 2 that turn southeast in the center of the Area 2. The anomalies may represent intermediate to basic volcanic rocks. Domain 2B, in the north, covers an area of lower magnetic background; north-northwest and northwest-striking dyke-like anomalies occur in the east of Domain 2B. Sedimentary and/or metamorphic rocks may be indicated by Area 2B. Domain 2C occupies the southern part of the survey block. It is characterized by increased magnetic background compared to the magnetic of Area 2B. It encloses numerous, nearly east-west and west-northwest striking dyke like anomalies; the amplitudes of the anomalies imply “moderately” and “slightly magnetic” rocks. Area 2C may represent sedimentary/metamorphic rocks that interbedded with intermediate composition volcanic and intrusive rocks. The small Area 2D in the north is interpreted to show intrusive rocks. Area 3 The main magnetic element of Area 3 is within Domain 3A. It covers the northwest striking, relatively narrow “magnetic“ anomaly that may describe an intrusive unit, possibly diabase. The magnetic background decreases over Domain 3B which includes numerous anomalies that imply a general northwest trend of magnetic units that are interbedded with sedimentary and metamorphic units. Domain 3C and 3E describe areas that are dominantly underlain by non-magnetic sedimentary and/or metamorphic rocks. The magnetic characteristics of Domain 3D is similar to the characteristics of Domain 3B, e.g. the general northwest trend of the anomalies. The magnetic background is lower suggesting the more prevalence of non-magnetic rocks. The intrusive bodies are interpreted in the domain. The extreme northeast corner of Domain 3B is the local of the nearly east-west striking Conductor C1. It occurs along Lines 2400 to 2049, some 900 m. The conductor is in direct correlation with a well defined anomaly; the amplitude of the anomaly is in excess of 1 000 nT. The conductances derived from the majority of the constituent anomalies are >50 s (siemens). This is a target for ground follow-up and it is suggested that source would magnetic sulphides.

8. CONCLUSIONS and RECOMMENDATIONS The magnetic patterns over Areas 1 and 2 outline the intrusive Nippising diabase, that may occur as dykes and as more like the classical intrusive bodies. Anomalies I1 and

I2 show buried intrusives; the form of I2 is suggestive of a possible kimberlite and should be investigated on the ground. The weak Conductor C2 deserves a brief field check.

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Geological knowledge is lacking over Areas 2 and 3. It could be assumed that anomalies like I7, I8 and I9 (Area 2) and I10 (Area 10) represent Nippising diabase intrusions. The other anomalies can also show intrusive rocks, unless intermediate to basic volcanic rocks also occur.

The well defined Conductor C2 needs to be followed-up on the ground by a

horizontal loop electromagnetic –magnetic survey. Respectfully submitted, SAVARIA GEOPHYSICS INC. Francis L. Jagodits, P. Eng., Consulting Geophysicist

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9. REFERENCES Smith, G. 2007. Report on a Helicopter-Borne AerTEM Electromagnetic & Magnetic Survey, Aeroquest Job# 07078, Elliot Lake Properties, Ontario, NTS 041J10, 11 for Carina Energy Inc. Kretschmar, U. and Nassif, G. 2008. Executive Summary of Carina Energy Properties, Uranium and Polymetallic Element Prospects In the Elliot Lake Area of Ontario, by M. V. White, BSc., M. Sc., P. Geo., FGAC and Peter Hubacheck. Endikai Lake, Algoma District, Map 2399. Ontario Geological Survey. Scale: 1 inch to ½ mile

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10. APPENDIX

Writer’ Qualifications Table II List of Personnel

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QUALIFICATIONS

Francis L. Jagodits, Dipl. Eng., P.Eng.

This is to certify that I, Francis L. Jagodits, 1. am a Canadian citizen, residing at 353 Berkeley Street in the City of Toronto,

Province of Ontario, 2. maintain a consulting office at 353 Berkeley Street, in Toronto, 3. graduated with a degree of Diploma Engineer in geophysical engineering from the

Technical University of Sopron, Hungary in 1956, 4. am working as professional geoscientist for the past fifty years and as an

independent consulting geophysicist for the past eighteen years,. 5. am registered as a Professional Engineer in the Provinces of Ontario, 6. am registered as a Retired Professional Engineer and Professional Geoscientist in

good standing, in the Province of Newfoundland. 7. am a member of the Society of Exploration Geophysicist Union, the Canadian

Exploration Geophysical Society and the Prospectors and Developers Association of Canada a.

Dated at Toronto This 5th day of December, 2008.

Francis L. Jagodits, Dipl. Eng., P.Eng.

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TABLE III

List of Personnel

Name Address Aeroquest Limited Mississauga, ON Field Survey: February 26-March 3, 2007 and April 24, 2007 Manager of Operations: Bert Simon Manager of Data Processing: Jonathan Rudd Field Data Processor: Geoff Plastow, Eric Steffler Field Operator; Mike Blondin Data Interpretation and Reporting: Gord Smith, Marion Bishop, Eric Steffler Wandake Helicoptere Inc. Quebec City, QU Pilots: Steve Labranche, Steve Gross-Louis, Frederick Hemmeler Checkmate Photographic 26 Six Points Road Map services Etobicoke, ON. M8Z 2W9 R. Jessup Jeff Meek & Associates Ltd. 2C Alcina Ave Drafting Toronto, ON. M6G 2E8 J. Meek Savaria Geophysics Inc. 353 Berkeley Street, Interpretation and Toronto, ON. M5A 2X6 project supervision F.L. Jagodits, P. Eng., Geophysicist

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scale 1:20,000

2500250500750100012501500

(meters)NAD83/UTMzone17N

Scale1:10,000,000 1000100200

(kilometers)NAD83 / UTMzone 17N

44°

46°

48°

50°

44°46°

48°50°

-90° -87° -84° -81° -78°

-87° -84° -81° -78°

Kapuskasing

IroquoisFallsTimmins

ThunderBay

SaultSteMarieSudbury

Bancroft

OwenSoundBarrie Petersborough

BellevilleManitowoc

OrangevilleFondDuLac

GuelphHamilton RochesterMilwaukee

Flint BuffaloGrandRapids London

ProjectArea

LakeSuperior

LakeOntario

LakeHuron

Lake

Mic

higa

n

ONTARIO

QUÉBEC

Approximate outline of magnetic domainwith identification

Approximate outline of magnetic body“magnetic”“moderately magnetic”“slightly magnetic”

Intrusive body with identification

Interpreted fault and/or shear zone

EM conductor with identification

Road, track

Stream

Swamp

Lake/pond

Legend

To accompany report by Francis L. Jagodits,P. Eng., Consulting Geophysicist

3C

C1

I8

GridNorthNAD83-Zone17

Thetopographicdatabasewasderivedfrom1:50000NaturalResourcesCanadaNTDBdata.

InsetdataderivedfromNaturalResourcesCanada'AtlasofCanadaBaseMaps'

Carina Energy Inc.Elliot Lake, Ontario

Date: Nov. 25, 2008

Interpretation Map

NTS041J10,11

-82°52' -82°50' -82°48' -82°46'356000E 360000E 364000E

46°32'5156000N

OldBaldy

46°34'46°36'

46°38'

-83°2' -83° -82°58' -82°54' -82°52' -82°50' -82°48' -82°46'

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