Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close...

109
41O09NW2003 2.18524 GARNET 010 Geological Report on the Prendible Island - Net Island Property Eagle Lake Area Ontario for GRQ Mining Inc. #8 Lake Placid Rise S.E. Calgary, Alberta T2J 5B5 .w r*\ \ , s -t :, " * * \ Authors : Debra Bracken , BSc. Geol. Ed Friesen , BSc. EE . January 1998 (Work Assessment May 1998)

Transcript of Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close...

Page 1: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

41O09NW2003 2.18524 GARNET 010

Geological Report

on the

Prendible Island - Net Island

Property

Eagle Lake Area

Ontario

for

GRQ Mining Inc.

#8 Lake Placid Rise S.E.

Calgary, Alberta

T2J 5B5

.w r*\ \, s -t :, " * *

\

Authors : Debra Bracken , BSc. Geol. Ed Friesen , BSc. EE . January 1998 (Work Assessment May 1998)

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41O09NW2003 2.18524 GARNET 010C

Table of Contents

1.0 Executive Summary

2.0 Introduction

3.0 Property

3.1 Claim Description

3.2 Location and access

4.0 Previous work on the property

5.0 Geology

5.1 Regional geology

5.2 Property geology

6.0 Gold mineralization

7.0 Exploration Program and Budget

Appendix A - Definition of Terms Appendix B - Lab Reports Appendix C - References Appendix D - Work Assessment Report

List of Figures

Figure 1 - Location MapFigure 2 - Claim MapFigure 3 - Previous Work on the Property and AreaFigure 4 - Regional GeologyFigure 5 - Air bourne Magnetic Survey of Eagle LakeFigure 6 - Property Geology - Prendible IslandFigure 7 - Property Geology - Net IslandFigureS- 1998 Proposed Geophysics ( IP) Program

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1.0 Executive Summary

GRQ Mining Inc has acquired a group of mining claims on Eagle Lake which is located approximately 25 miles south- west of the Town of Dryden , Ontario , which in turn is located on the TransCanada Highway, approximately 350 km east of Winnipeg , Manitoba or 400 km west of Thunder Bay, Ontario .

The area was first explored around 1900 and has numerous reported occurances and prospects , many with well documented histories and production values. Early prospectors concentrated on the easily accessible gold bearing quartz veins along the lake shore .

Past exploration , since the early" high grading" operations ceased , is not well documented . Trenches can be found in the area and some diamond drilling results have been reported to the OGS ( Ontario Geological Survey ) however mineral grades were not included .

GRQ Mining Inc. initiated three (3) work programs on the Eagle Lake property in 1997 , consisting of:

site investigationgrab sample collection, above and below water (scuba )VLF - EM surveyingdiamond drilling ( approximately 27 meters total)research of available information ( eg government aeromag maps , OGS reports etc )

Several grab samples have yielded the following analysis ( refer to section 7.0 ):

1.3oz7t(41.17g7t)Au

6.14oz7t (191.2g7t)Au

39.5 g/t Ag

0.742 % (7428g7t)Cu

0.155 0X,( 1550 g /t) Co

Further work is warranted on this property for the following reasons :

(1 ) results to date are encouraging and reinforce the potential of finding an ore body

(2 ) the logistics of the area are relatively easy, compared to" frontier exploration". The TransCanada Highway borders the north shore of Eagle Lake, two (2) major towns, Dryden and Kenora , are within a reasonable distance, and an industrial base, mining and forestry, is well developed in the area. Exploration , and hopefully future mine development, is able to take advantage of this existing infrastructure and be more cost effective.

GRQ Mining Inc. has a 1998 exploration program planned for this property as follows :

( a) a geophysics ( IP - induced polarization ) program

( b ) further site investigation

( c) diamond drilling of the anomalies identified by the geophysics

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2.0 Introduction

GRQ Mining Inc. owns 100 "/o interest in mineral claims on Eagle Lake in the area south-southeast of Vermillion Bay, Ontario .

Refer to Figure 1 - Location Map

The south west area of Eagle Lake was first explored around 1900 and has numerous reported occurances and prospects many with well documented histories and production values. Early prospectors concentrated on the easily accessible gold bearing quartz veins along the lake shore. Visible gold would have been their major criteria for development. These early discoveries occur along the granite - metavolcanic contact on the mainland and neighbouring islands of southwest part of the lake.

Through out the 1930's and 1940's limited and sporadic gold exploration occurred , many of the old properties were reevaluated . Base metals , iron , and uranium exploration occurred throughout the area during the 1950's to the late 1970's . During the late 1970's widespread exploration for gold occurred around the Dryden area due to resurgence in price and demand . There are over 200 known gold occurances in the Dryden - Ignace area.

GRQ's claims at Eagle Lake contains numerous trenches, test pits , adits and old shafts which pockmark the area from different eras of exploration . Currently gold as well as platinum group elements are activity being sought in the south-west quadrant of Eagle Lake and adjacent areas.

This area contains many positive attributes which warrent continued exploration. Past work has been concentrated on areas accessible from the lake, basically confined to the shore . Moorhouse, Ontario Department of Mines -1939 (1), states that few prospecting activities have been indicated on island interiors and inland areas and he believes these areas deserves a thorough investigation.

The company has the technical and professional ability to address the project in a workmanlike manner. The project is speculative, but is built on solid scientific foundations, and has potential merit.

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To Red Lake

Dryden

VermiUio/i Bay

Nt

To Thunder Bay

To Fort Francl s

Figure l

Locati on Map

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3.0 Property

3.1 Claim Description

Refer to Figure 2 - Claim Map

The GRQ Mining Inc. claims in the Prendible Island - Net Island portion of Eagle Lake property consists of 4 units with a total of 47 contiguous, unpatented mining claims which cover one (1) known gold prospect - the Golden Eagle Prospect on Prendible Island and in addition an adit, named Debbie Adit, on Net Island and is immediately east of five (5) known gold prospects l occurances - the Eldorado Prospect, Grace Prospect, Pioneer Island Prospect, the Buffalo Occurrence and Viking Island Occurrence.

( note refer to Appendix A - Definition of Terms , eg. Prospect and Occurance)

The Claim blocks are located north of Muskeg Bay, Eagle Lake approximately 25 miles south-west of Dryden , Ontario .

The Claim Numbers are:

Block Claim # 1178693 16 units

Block Claim # 1149804 12 units

Block Claim # 1178692 16 units

Block Claim # 1149805 3 units

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l l l i

N

t

EAGLE LAKE

GRACE PROSPECT

BUFFALO DCCURANCE

NET ISLAND

GOLDEN EAGLE PROSPECT

GRACETALCMINE

OFigure 2 - Claim Map

r* J

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3.2 Location and access

The Prendible Island - Net Island Eagle Lake Prospect is located in the south-west extremity of Eagle Lake approximately 25 miles west-south-west of Dryden , Ontario in the Kenora mining district of Northwestern Ontario . (refer to Figure 1 - Location Map)

The Town of Dryden has a well developed infrastructure of highways , railroads , airport, hydro and townsite facilities .

The property is accessible from the Trans-Canada highway, which borders the north shore of Eagle Lake , by following a gravel road southwards through the Town of Eagle River to private fishing lodges on Eagle Lake. Accessibility to the property on the lake is by boat in summer and ski-doo in winter.

Alternatively, an all weather road , intersecting Hwy 502 south of Dryden , proceeds southwest along the south side of Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property.

4.0 Previous Work on the Property and Area

Refer to Figure 3 - Previous Work on the Property and Area

Exploration commenced in the Eagle Lake area around 1900 where a number of prospects were located along the granrte-metavolcanic contact in the south-west part of the lake.

Prospecting of the" greenstone - granite" contact zones , particularly along the readily accessible lakeshore resulted in a number of gold discoveries. Six (6) discoveries in the Eldorado Bay region of Eagle Lake are listed below. Attempts to develop these discoveries into mines had limited success with reported production (" Gold Deposits of the Kenora-Fort Francis Area" by Richard C. Beard and Glen L. Garratt, Mineral Deposit Circular 16, 1976 Ministry of Natural Resources) as follows:

Description Reported Production

(a) Eldorado Prospect 1904 : 14 oz Au from 30 tons = 0.47 oz/ton

(b) Grace Prospect 1902-1908 : 69 02 Au from 415 tons = 0.17 oz/ton

Golden Eagle Prospect 1903 :17oz Au from 29 tons , = 0.59 oz Au/ton

(d) Buffalo Occurance none : 30 ft. adit, 2 shafts , 28 ft. and 15 ft. deep w 1 78 ft. lateraldevelopment

(e) Pioneer Island Prospect none: 80 ft. shaft with 160 ft. Drifting on 70 ft. Level

(f) Viking Occurance 1903 : none - 85 ft shaft

The deposits are classified and labelled as to the stage of development:

mine (all past producers), with a minimum of not less than 100 ounce of gold

prospect with significant development work, usually consisting of one or more of the followinga) significant production, other than for milling test, but less than 100 ounces of gold ;b) over 100 feet of underground lateral development work;c) over 2,000 feet of diamond drilling ;

occurrence with little development work carried out.

( Source : Beard and Garratt, Ontario Division of Mines.)

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Most gold mining activity ceased at Eagle Lake by 1912 .

Geological information on the Viking Occurrence, Grace Prospect, Buffalo Occurrence , Eldorado Prospect, Pioneer Island Prospect and Golden Eagle Prospect has been taken from the Ontario Geological Survey ( OGS ) Open File Report 5723 , Geology. Gold Mineralization and Property Visits in the Area Investigated by the Dryden-lgnace Economic Geologist 1984 -1987 J. R. Parker.

Also included with the geological information are J.R. Parkers assays of mineralization as follows:

1) Viking Occurrence

Geology:

The Viking Occurrence is situated within granitic rocks of the Atikawa Batholith immediately next to its contact with mafic metavolcanic flows of the Lower Wabigoon Volcanics .

Assays of Mineralization :

Visible gold was found by the author (J.R. Parker) in quartz vein material on the dump near the shaft. Random grab samples of the quartz veins and wall rocks assayed only trace amounts of gold . Pyrite rich gossan zones within the granitic rocks in the vicinity of the shaft assayed between 2 ppb and 15 ppb gold .

2) Grace Prospect

Geology:

The Grace Prospect is situated within granitic rocks of the Atikawa Batholith south of its contact with mafic and intermediate metavolcanic rocks of the Lower Wabigoon Volcanics .

Assays of Mineralization :

Grab samples of the quartz veins in the shaft and open cut assayed 26 ppb and 11 ppb respectively.

3) Buffalo Occurrence

Geology:

The Buffalo Occurrence occurs within granitic rocks of the Atikawa Batholith south of its contact with mafic and intermediate metavolcanic rocks of the Lower Wabigoon Volcanics .

Assays of Mineralization :

Grab samples of the quartz vein and wall rock material assayed trace amounts of gold .

4) Eldorado Prospect

Geology:

The Eldorado Prospect occurs within medium-grained, gray biotite-hornblende granitic rocks of the Atikawa Batholith south of its contact with mafic and intermediate metavolcanic rocks of the Lower Wabigoon Volcanics .

Assays of Mineralization :

A grab sample, taken by the author (J.R. Parker) of sheared , altered , granitic wall rock assayed 1640 ppb gold , while grab samples from the quartz vein assayed 80 ppb gold and 1290 ppb gold . A1.5 m chip sample across the shear zone in the open cut assayed 19 ppb.

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5) (Old) Pioneer Island Prospect

Geology:

The prospect is situated at the sheared contact between mafic and underlying intermediate metavolcanic rocks of the Lower Wabigoon Volcanics ad is immediately north of the contact between the metavolcanics and the granitic rocks of the Atikwa Batholith .

Assays of Mineralization :

Grab samples taken by the author (J.R. Parker) from the massive sulfide mineralization assayed only trace amounts of gold with anomalous copper and nickel values, although the sulfides are reported to have panned gold ( Carter 1905).

This prospect is located less than 1 km to the north-east of the Grace Prospect on the mainland . In 1900 prospectors located a weathered gossan on ( Old) Pioneer Island and were successful in panning for gold from the weathered material. A shaft was sunk by the prospectors to a approximate depth of 30m and a drift constructed on the mineralized vein on the 25m level for a distance of 50m . There are no reports of gold production on this prospect.

A weathered gossan caps vein or quartz stringer system which can be traced inland for approximately 120m. The vein consist predominantly of massive pyrite and quartz , with minor chalcopyrite, and ranges in width from 0.3m to 1.7m. The strike of the vein is approximately northeast. The vein occurs at the contact between the mafic and underlying intermediate metavolcanics of the Lower Wabigoon Volcanics . Directly to the south is a contact between the metavolcanics and the granitic rocks of the Atikwa Batholith.

6) Golden Eagle Prospect

Geology:

The Golden Eagle Prospect occurs within granitic rocks of the Atikawa Batholith south of its contact with mafic and intermediate metavolcanic rocks of the Lower Wabigoon Volcanics.

Assays of Mineralization :

Two grab samples taken by the author (J.R. Parker) which contained <^% pyrite, assayed 45 ppb gold and 3500 ppb gold , while a third sample of the quartz, containing almost no pyrite , assayed 1.10 oz/t Au . .

The Golden Eagle Prospect is located on Prendible Island less than 1 km to the east of the Grace Prospect on the mainland. A vertical shaft was sunk to a depth of approximately 22m. An adit from the lake edge was excavated to approximately 55m and intersects the shaft. Twenty-nine tons of rock was milled which yielded 17.11 oz of gold (0.59ozftAu).

The host rock to the mineralized veins and shear structures is Algoman age , coarse to medium grained grey to pink biotite - hornblende granitic rock. The shear zone 0.2m to 0.6m in width hosts a 0.3m to 0.6m quartz vein. The shear zone is trending northwest. The strike of the quartz vein 155 degrees to 170/90 degrees. The quartz vein contains approximately 1tfa disseminated pyrite. The sheared wall rocks are sericitized.chloritic, carbonattzed and pyrtic . Also present are large (1 mm - 3mm), glassy, blue quartz "eyes" embedded in a fine grained ground mass .

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l km

Fi gure 3

Previ ous Work on the Property and Area

u

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5.0 Geology

5.1 Regional Geology

Refer to Figure 4 - Regional Geology

The regional geological setting of the GRQ Mining Inc Eagle Lake Property is located in the Eagle-Manitou Lakes greenstone belt within the Wabigoon Sub-province . The belt is composed of mafic, intermediate and felsic metavolcanic flows . There are lesser amounts of pyroclastic and metasedimentary rocks within the belt. The area has been intruded by large granitic batholiths such as the Atikwa Batholith to the south and the Dryberry and Lount Lake Batholith to the north .

The Wabigoon Sub-province consists of the Upper Wabigoon Volcanics , Lower Wabigoon Volcanics , Eagle Lake Volcanics and the Eagle Lake Lobe of the Atikwa Batholith . In the Eagle Lake area there are gold occuranees in the Lower Wabigoon Volcanic, a mixed sequence of mafic to meta volcanics. Granitiod rocks of the Eagle Lake Lobe of the Atikwa Batholith geographically close to the Lower Wabigoon Volcanics also contain numerous gold prospects. The Lower Wabigoon Volcanics overlies massive and pillowed flows of the Upper Wabigoon volcanics geographically located to the north.

To the north of GRQ's claim properties approximately four (4) km is the Wabigoon Lake Fault trends east - northeast along the north shore of Eagle Lake.

Parker notes :

* There is a strong spatial and genetic correlation between gold mineralization and major zones of deformation and faulting, such as the Wabigoon Fault. Gold is not know to occur in the fault but is controlled by associated structures related to the style of deformation."

No known gold deposits occur directly to the north of the Wabigoon Fault

Shear zones within the Eagle Lake area predominately trend northeast. Northeast to east-northeast trending shear zones occur at the Viking Occurrence, Eldorado Prospect, Grace Prospect, Pioneer Island Prospect and Buffalo Occurrence . A northwest trending shear zone is present at the Golden Eagle Prospect.

All of the above gold mineralization occurances are located within the Lower Wabigoon Volcanic - Eagle Lake lobe of the Atikwa Batholith except for the Viking Prospect which lies within the Upper Wabigoon Volcanics just north of the Lower Wabigoon contact.

In 1961 the department of mines published map 1162G, an airbourne magnetic survey of Eagle Lake, Kenora Mining District Ontario .

Refer to Figure 5 - Airbourne Magnetic Survey of Eagle Lake

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WABIGOON FAULTN-1

tfo

Eagle L a k e

VIKING aCCURANCE

GRACE TALC MIN

GRACE PRDSP

GOLDEN EAGLE PROSPECT O

RENDIBLE/) ISLAND (XL

. tr 0

BUFFALODCCURANCE

ATIKWA BATHDLITH EAGLE LAKE LQBE )

LEGENDShear Zone * Mafic Metavolcanfcs

2 Felsic -to Intermediate Metavolcanl cs3 Metasedl nents

Contact 4 Gran! tol cfs5 Gabbro 7 Diorite6 DI abase

Figure 4 - Regional Geology

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^\^-z r-~ * ''-

Figure 5 - Airbourne Magnetic Survey of Eagle Lake

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6.0 Property geology

(Old and New) Pioneer Island Prospect

The Pioneer Island Prospect consists of two islands , one to the north of Prendible Island and the other to the west. Both islands have been named Pioneer Island on government maps generated at different times. For clarification purposes, GRQ refers to the northern island as New Pioneer Island and the western island as Old Pioneer Island.

Minimal work has been done on this prospect. A gossan was located on the north east corner of Old Pioneer Island from which grab samples assayed 4 ppb Au at the lake shore .

J. R. Parker reported anomalous copper and nickel values.

Prendible Island

Refer to Figure 6 - Property Geology - Prendible Island

This Island contains three ( 3 ) areas of interest,

(1 ) the Golden Eagle Prospect,

( 2 ) the Prendible Island Gossan, referred to as Earl's Gossan, and

( 3 ) the north shore Prendible Island quartz/Cu vein , currently unnamed.

(1) Golden Eagle Prospect

Original work done between 1901 and 1906 yielded an average grade of 0.50 to 0.58 oz/tAu (refer to section 4.0 )

Visible gold was found in quartz vein material on the dump near the adit and shaft. Samples were collected from the wallrock and quartz vein within the adit and assayed 0.175 g 1 1 Au and 0.216 g l ton Au . At the adit's surface and area , samples assayed 2.52 g/t Au , 4.1 g/tAu , 2.06 g/t Au and 3.164 g/t Au .

Parker reported quartz vein grab sample assays of 3.5 g 1 1 Au and 1.10 oz 1 1 Au .

(2) Earl's Gossan

Earl's Gossan is located 200 m to the north-northeast of the Golden Eagle Prospect across Prendible Bay.

The gossan zone at the shore has a width of approximately 2 meters , with 0.3m of heavily stained - weathered material at its centre. Ten meters (10) north of the lake edge the sulfide zone is approximately 1 meter across , it's strike is north and dips 48 degrees west.

Samples collected at the gossan zone assayed for: 1.260 g/t Au , 0.247 g/t Au and 191.20g/! Au.

Other notable assay results from the gossan area are: 92 ppm Ni, 0.417 Vo Cu , 14.8 g/tAg and S.Sg/tAg.

Seven (7 ) meters to the west of the sulfide zone, a 22 mm diameter core was cut for 28 meter at a 45 degree angle . Core loss was experienced, recovered core indicated minimal results.

(3) North Shore Prendible Island Quartz/Copper Vein

A quartz l copper vein is exposed at the lake shore on the north side of Prendible Island . Grab samples were obtained which assayed as follows:

148 ppb Au , 0.742 "/o Cu , 80 ppm Ni, 39.5 g 1 1 Ag, and 59 ppm Bi.

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Earl's Gossan Copper Showing ' 86 ppn Nl 0.148 g/-* Au 39.5 g/t Ae 7428 ppn C 0.742 X 80 ppn Nl 59 ppn Bl

1.860 Q/t Au0,247 g/* Au14.6 g7t Ae898 ppn Cu2.400 e/t Au191. SO 9/t ( 6. 14 oz/t ) Au578 ppn Cu8.3 e/t Aa4170 ppn ( 0,417 X ) Cu637 ppn Cu ^

DidPI oneer Island

Golden Eagle Prospect

Prendi bie Island

Eagle Lake

Figure 6

Property Geology - Prendible Island

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Net island

Refer to Figure 7 - Property Geology - Net Island

Net Island is the largest island of GRQ's claim properties. It is located to the north - east of both Pioneer Island and Prendible Island., approximately 2 km to the north east of the Grace Prospect on the mainland .

An old adit, located on the west side of the southern peninsula at the lake shore, was excavated into grey coarse to medium grained granitic rock, of Algoman age , for a distance of approximately 10m following a quartz vein .

No information has been located on the history of this adit, it is not presented on geological maps produced by the OGS.

Grab samples taken during GRQ's 1997 field expedition assayed 0.058 g/t Au from the wallrock material and 41.7 g/t Au from the quartz vein and adjacent rock directly above the adit.

The quartz vein at the adit is hosted in a coarse to medium grained granitic rock in very close proximity to a mafic contact. The vein trends approximately 320 degrees . At surface it has a width of 0.25 m to 0.45 m.

Twenty-five (25) metres from the shore line a second quartz vein intersect the adit vein at 90 degrees , it's strike is approximately 50 degrees . Evidence of trenching is located on this second vein about 10 m to the south-west from the intersection of the adit quartz vein . The host rock is a coarse grained granitoid.

No reports, assays or history has been found in research . Grab samples from fall of 1997 assayed 0.241 g/t Au and an anomalous reading of 1550 ppm cobalt.

Six (6 ) meters to the south-west of the trench , a 22 mm diameter core was cut for 10 metres at a 45 degree angle. Core loss was experienced and recovered core indicated minimal results.

A VLF EM survey, conducted on a north-south traverse starting approximately 30 m east of the adit, indicates the presence of a conductor. No outcrop associated with the conductor has been found .

In 1961 the Department of Mines published Map 1162G, an Airborne Magnetic Survey of Eagle Lake , Kenora District, Ontario . A magnetic anomaly is located in the north central part of Net Island. ( Refer to Figure 5 - Airbourne Magnetic Survey of Eagle Lake)

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~1

"5O

T30)"5 H-

H)

CDCO

0) H-

Q.

I si an

4 of VLF-EM Conductor

Debb e Adit

Tinkle Trench 0.34 Q/T Au 3.6 g/T Ag 2100 ppn Cu 666 ppn 1550 ppn Co 84 ppn As

Granodl orlte

Quartz Vel n C assumed

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7.0 Gold mineralization

The target of GRQ's program is the gold mineralization hosted in quartz veins and stringers as well as the wall rock which cut the intermediate to felsic intrusive of the Eagle Lake Lobe of the Atikwa Batholith and the Lower Wabigoon Volcanics . Both old prospects and new sites are being examined.

In Parker's study of the gold mineralization and properties , two (2 ) influencing factors are noted :

(1 ) The majority of known gold occurances at Eagle Lake are situated within a mixed sequence of mafic to felsic meta-volcanics ofthe Lower Wabigoon .

( 2 ) Studies of the gold occurances at Eagle Lake have shown that gold-bearing quartz are dominantiy controlled by northeast - trending shear zones in the granitic rocks and by shearing and fracturing in meta-volcanic rock .

Parker concludes :

" In general gold mineralization is restricted to the quartz vein although anomalous gold values do occur within granitic wallrock at a few occurances."

During three ( 3 ) field expeditions in 1997 , emphasis concentrated on sample collection . Numerous grab samples and bulk (2 kg ) samples were taken both above and under water (scuba divers ). In addition , 2 shallow diamond drill cores (22 mm diameter) were cut with a Winkie drill. Difficulty with core recovery was experienced .

The following is a summary of assay high lites from samples taken during the three field trips in 1997 . Copies of the lab reports are provided in Appendix - B

Refer to Figure 6 - Property Geology - PrendiWe Island

d

(2)

Location

PrendiWe Island - Golden Eagle Prospect and adjacent area

PrendiWe Island - Earl's Gossan

Sample Number

E28

1 kg

2E34 2E37 Bulk 3E3

E5 E27

2E29 2E29B

3E2-8

3E12

3E2-13

Value

2.520 g/t Au4.1 g/tAg 2.060 g/t Au 3.164 g/t Au

1.260 g/t Au 0.247 g/t Au 14.8 g/tAg 898 ppm Cu

2.400 g/t Au191.20 g/t Au (6.14 oz/t)

578 ppm Cu

8.3 g/tAg4170 ppm Cu( 0.417 "/o)

637 ppm Cu

(3 ) Prendible Island - Earl's Gossan - drill core # 2

3E2-16 and 3E2-17 , total width is 28 inches sheared granodiorite with traces of pyrite

54 ppb Au 859 ppm Cu 1.4 ppm Ag

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assay high lites ( continued )

Location

( 4 ) PrendiWe Island -North Shore " copper showing "

Sample Number

E21

E24

Value

86 ppm Ni

148 ppb Au39.5 ppm Ag7428 ppm Cu ( 0.742 "/o ]80 ppm Ni59 ppm Bi

Refer to Figure 7 - Property Geology - Net Island

( 5 ) Net Island -Debbie Adit and adjacent area

(6 ) Net Island - Tinkle Trench

2E13

2E2

41.17gA(1.3ozft)Au

3.6 ppm Ag2101 ppm Cu( 0.21 "/o)666 ppm Ni1550 ppm Co ( 0.155 K84 ppm As

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8.0 1998 Exploration Program and Budget

The work by GRQ Mining Inc up to December 1997 has consisted of

diamond drilling 2 holes for a total distance of 85 feet

surface sample collection ( above and below water)

lab analysis of the samples

VLF - EM survey

The next step is a geophysics program over the area from Prendible Island to Net Island as shown on

Figure 8 -1998 Proposed Geophysics (IP ) Program

(a) Geophysics IP (induced polarization ) Program

The geophysics program will be IP with the intent of identifying areas of disseminated sulfide . This program must be undertaken when ice is on the lake . January and/or February are the months recommended to perform this work as the weather and ice conditions after February can become quite treacherous.

The intent is to followed up this IP program with a diamond drilling program aimed at recovering material from the anomalies identified by the IP program .

The Budget for the IP program is:

30 line km @ S1500.00 1 line km 345,000.00

expenses S 5,000.00

Total SSO.OOO.OO

(b) Surface Investigation

Follow up to the anomalous IP results will be a detailed surface investigation including the following :

(l) locating the anomaly

(ii) surface sampling

(iii) lab analysis of samples

(c) Diamond Drilling

Based on the results from the detailed surface investigation , a drilling program will be designed to test the anomalies with the following taken into account:

types of drilling equipment available

depth and location of anomaly(ies) - eg on water or land

time of year - eg. winter for drilling on the ice

The budget for diamond drilling will be developed following the geophysics IP program.

21

Page 22: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

l l

r-o

CLAIMWESTBOUNDARY

x. N.

VLF-EM CONDUCTOR -l

NET ISLANDEAGLE LAKE

BASE LINE -NEW

PIONEERISLAND

VLF-EM CONDUCTOR

PIONEER ISLAND

EARL'S GDSS

GOLDEN EAGLE PROSPECTVLF-EM CONDUCTOR

SCALE - METERS

PRENDIBLE ISLAND

1000

Figure 8 - 1998 Proposed Geophysics ( IP ) Program

Page 23: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Appendix - A

Definition of Terms

The deposits are classified and labelled , by the OGS , as to the stage of development as follows :

mine (all past producers), with a minimum of not less than 100 ounces of gold

prospect with significant development work, usually consisting of one or more of the following

a) significant production, other than for milling test, but less than 100 ounces of gold

b) over 100 feet of underground lateral development work

c) over 2,000 feet of diamond drilling

occurrence with little development work carried out.

( Source: Beard and Garratt, Ontario Division of Mines.)

23

Page 24: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Appendix - B

Lab Reports

24

Page 25: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

^5C CanTech Laboratories V

Inc.Pob -- 1 Of 1

42008- lOSueeiNE

^^J2-D l^, /fi ir,. Calgary. Altwta

l rinufe TIC RtfT

E. J. Friesen 4 Associates Inc. ^\ #8 Lake Placid Rise S. E.Calgary, Alberta

^ T2J 5B5 V

Digestion:

Sampto10

E1E2E3E4E5

E6E7EBE9E1O

E11E12E13E14E15

E16E17E18E19E20

E21E22E23E24E25

E26E27E28

A3ppm-

0.5O5050.82.0

2.21.41.10.70.6

0.80.70.80.9

O.5

O.503

O.5O.5O.5

O.51.00.6

39.50.6

1.014.80.5

TOTAL ( Perchloric, Nitric,

Al x,

8267.688.117.386.49

8.536.967.307.797.28

6.195.405.596568.40

8.217.970.748.396.63

7.417.927.440.325.54

0.116.180.50

Asppm

*5 e5

7*5-s

*5-3

10 5cS

96

-S

75

589

149

S S

91112

*5

22e

Bppm

4754494027

3726253530

2210132128

243014199

1611138

13

128

21

B*ppm

350296350401356

584462427312336

337251371530485

64260287

442581

1115

45920

259

4383

44

B*ppm

1.81.51.71.61.4

1.7151.51.81.7

15151.4131.7

2.01.7.0.71.71.7

131.41.70.71.4

0.71.30.7

Blppm

-S

^tS-s*s

s^ 3 S s

: "

Jt-^^ 77

Attention: Ed Friesen

Certificate of AnalysisDate: July 11. 1997

Work Order: 97142R

Hydrofluoric Attack)

Ca Cd X. ppm

0.76 O0.39 <1038 ^1.54 \20.14 <1

0.17 -el"o.i4/....^;.O-24 . -*V

1.70 e .V(*

t

' Co Cr Cu Feppm ppm ppm ^

. 8 238 50' 12 255 30' 4 236 23

10 159 107, 8 2S9 150

7 224 5144 147 264

16. 164' 91,. 7;'231 30

. i:4st:"xf;;! 8 217 14'" ^.V&eJS. ..-.- *j.-. -,

. ' ^*' . ^ -T.;'f,i~, ' 'i.'-

.'.-s b'ii^suj 4~i78'"" la"^5 ^5

^5^5

^5^5

o^s"o

K^

*s^558"S."

•56

-5

.027^aio .. ci;0.11-"': -ci-' :.0.21.: ^:

".'^ ^T' 1

0.13 "fi^0.06 ".'.'il':

a02;* 5V'0.18r"\X0.08 ^

- . - . .' ...Vi,730' : ' il"

9.27 .'.-O.- j1.79 ;'-^-cf';|OJ8 ; r 9; 1

1 -44 ,v'XQ0.08 4:10.06 " <10.05 4l

. 8" 17 ; . .17,-,2 159 . 111 ;3 2O1 199 267 25

. ~* - '

7 311 . 13.'5 249^ 43^ 520. 15 .12 "227.'. .'S5',. :-

21 185 ;.' 16'•'•'•: - - ' '. - : . •-

27 292." 10532 329 186.

'."S'. 123.'. 71' 16 329 7428 '

5 117 11

9 394 618 108 868

^380 2C

3.893.732.893.343.92

3.00Z552.882.842JX;. . J"~i~96";2301.461.912.90

3.072.050.66Z212.80

6.706.841S72581.8O

0504.710.47

K X,

1.561.531.391.941.7O

2.522.191.981.38

, 1 -43

"1^24OS41.673.772.13

3^74.170.632.783.77

0.080.091560.040.93

O.O11.620.19

Uppm

1617131212

175

1118

". 13• rf.

'^13

18101525

1117'13

1556

88"'21

420

' -d

8<1

Mg*

0.780.770.650.740.53

0.570.610.720.680.73

..-.' " ;.-

051.0.61036'

a32Oj66

0.860380.04 .0.600.66

.

Z922.940.49oil50.43

O.010.680.02

Mnppm

333375276466230

271 .233281431405

' ' " -x

181339125^'

127223

25178 ,-54'"

186185

15481520 .449 ;92^

340

2929634

Moppm

1314139

18

168

1213

: 13"s. ..

10" 10

81114

1913291312

46."s

. 196

228

23

N**

3.51.3.273.362.52Z01

2511.87i12

-3.152.78

231"

1.831.561543.10

0.770.730^42310.10

0.510.16Z7S0.052.08

0.041.480.08

Nlppm

1414101211

859

1717

9118

1519

1814111120

866311809

7659

i

ip

ppm

850749755542499

503371530431438l .

518449369303609i

654391 J10

604323

538569774*10526

S320

*10

Pbppm

9119

138

97

101114

1079"11

10

1097

1314

162212269

31539

Sb SIppm -X,

O 0.020 0.02O 0.01^ O.01 O O.01

3 0.01O O.O17 0.01

O 0.02^ 0.01

' O 0.01^ O.01*3 0.010 0.015 0.02

0 0.020 0.020 O.01 ;"3 0.01 ~O O.01

: -.'.'

7 0.026 0.024 O.OV^ O.01O O.01

^ O.01^ O.01^ OJ01

Sfppm

2261351357637

553744

221216v

1141113643

107

3728'. 4

6121

180206

718

161

2264

Tl*

0.450.390.370.390.33

0.390340.360.370.39

0.28033Oj210.320.37

0.350.350.030.390.37

0.550.600.24"0.02;0.23"

0.010^80.03

Tel (403) 250-1901

Fax (403) 250-8265

Vppm

6759484744

49333944SO

3340253449

4642

64754

213222,

-30-

, 528

1359

Wppm

•S*s^*s^

^5^5

*s-5

\^*5

^*5*5

^ 5*s

814

,s^ 5

8*s

57

*5

x .

Znppm

8112665

13084

90 .78

155 -'' se' ' '; .. ei -; -

38 ^ '*\ :-

4520 . l47'..-'--

43

6351 -144438

90.':'.,

105 f.- .33 •••*-, : :-

3\3"-^'^'

.. si ^;? .5 '~

887/33

CanTech Laboratories, Inc. Sign

Page 26: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

4 CanTech Laboratories Inc.

#8 Lake Placid Rise S.E. Calgary, Alberta T2J 5B5

Attention: Ed Friesen

Certificate of AnalysisWork Order: 97197

Date: September 29, 1997

f 3 1 of 142008 lOSneetNE

Calgary Alberta

Canada T2E6K3

Tel (403) 250-1901

Fax (403) 250-8265

Sample ID

2 E13A 2E13B 2 E29A 2 E29B 2 E37A 2E37B

A.A. Finish Gravimetric FinishAu Au Au Aug/t g/t g/t g/t

0.0570.1190.063

0.0040.009

0.137

191.2

CanTech Laboratories, Inc.

Q-G

Certified

Page 27: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

^2,. CanTech T l. t- - r ~- / PaO* f of 1Laboratories Inc. C^ i 7 i ^QOB-IOSUMINEC^e-V/C ^QjL^, Calbert,

t Attention: Ed Friesen ,f Ed Frtesen 4 Associates Inc. . N t Mnioa lftwa

#8 Lake PLdd Rise s.E. -4-—*. X? Certificate of Analysis T* (403)25(M901Calgary. Alberta J Fax (403) 250-8265

l^ T2J 5B5

————————————

SampleNumber

E1E2E3E4E5

E6E7E8E9

E10

E11E12E13E 14E15

E16E17E18E19E20

E21E22E23E24

V^ E25

J Work Order 971 42A————————————————————— Date: July 1 . 1 997

Au Sample Auppb . Number ppb

^ E26 ^<2 E27 274

3 . E28 25209 : ' ; ' - - .

1260 ' CanTech Laboratories. Inc.

181 - " . -23 /l12 /Wu/*G l 'W^<2 r; . : - Richard fJlagner, B.Sc.

- v Laooratory Manager^ - - - ' ' ' - - - - - '<2 V '.-'<2 .- : ••;.v .;/., ' . ' '-\ ' : ' '

3 ' ,: V. - ^ '~; :': -.;~'- ' .. ' •:J:;:A. ' - - - - . . '-.*2 -- " - ': ' ; ^;':"''-:^ ;i'- 'ffi - :,^^; -v : -' : ....'"v :-;- ^f^..^\ '.':" . .

•" ' .'-. - * ."-. ' '".v"*— ,. - , - - -' -"^ .V ' . ' *-

<2 ,. '... ..'iv":'--li'..-.:-:''.i :"'' - -' /. ':'.'.-. -- ' .

is : : ;v; v^^-^J": v ;; ; ' - ; : : " ' - ; ' -: '19 ' . -' ' : ;V ' '•v*\; -^V**^''' -"'"V ---' ''•••- ' -' - '' - - -35 ' . - - ' ••'''•^t^-:.-- "-..',

•- ' ,-.;.^n;,.;:-: . .,.

<2 ' - ':':.^.^-. :'-'4 - ••.••-v- /.-r7 ' ' '

148^2 jy

.-. .. .

Page 28: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

o\—tIS

LU CD

SiS i

ACCURASSAY LABORATORIES(A DIVISION OF ASSAY LABORATORY SERVICES INC.)

3 Industrial D riv*, Box 428. Klrktend Ltk*. ON P2N 3J1 T*l:(705 507 3361) Ftx:(705) 508 8368

MINERAL ASSAYERS ENVIRONMENTAL CHEMISTS tlto tt: 1070 Lrttiium Dr., Thunder Biy. ON P7B OG3

T*I:(B07)823 B44B Fax:(807)0230820 Uame* R*idRd.. P.O. Box2S5. Timmlnt.ON P4N 7E2

Tal/Fix (705)288 3790

LUwto: Date:

9741033 12/05/97

Cfient: GRQ Mining Inc8 Lake Placid Rise Calgary T2J 585

CERTIFICATE OF ANALYSIS

P.O.*.

^

o:QLsGC

Accurassay Sampte #

123456789

10

Client Sample* Bulk 3E1Bulk 3E2Bulk 3E3Butk3E4Bulk 3E5Bulk 3E6Bulk3E7Bulk 3E8Bulk 3E9 Bulk 3E10

Weight of Sample (g)

956.2806.5975.2990.6925.3

1005.2927

953.5996.1 1007

Leach Assay ppm

00

3.170.210.240.160.490.170.2

0.09

Residue Assay, ppm ^.005O.005

0.1880.014

O.005O.005

0.006•o.oos^.005

0.011

Q CD

O

10 Signed:

Total Gold Assay K Extractionppm

00

3.3580.224

0.240.16

0.4960.17

0.20.101

oz/T by Cyanide0 ERR0 ERR

0.098 94.40.007 93.750.007 1000.005 1000.014 98.80.005 1000.006 1000.003 89.1

Page 29: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

CanTech Laboratories Inc.

GRQ MINING INC. #8 Lake Placid Rise S.E. Calgary, Alberta T2J 585

-9 (e /-^ /'

/?Vfl-

Attention: Ed Friesen

Certificate of AnalysisWork Order: 97187A

Page 1 of 1-20UB - lO'Jt^-'f

Ciiiiaiia I2E 6K3

——— — ——————————————————————————————— uaie: aepiemoer 10, Tay/

Sample ID

2 E22 E62 E72 E9A2 E9B

2 E102 E112 E122 E132 E14

2 E152 E16A2 E16B2 E172 E18A

2 E18B2 E192 E202 E21A2 E21B

2 E21C2 E222 E232 E242 E25

A.A. Finish Gravimetric FinishAu Au Au Aug/t g/t g/t g/t

0.2410.015 0.0210.0130.0280.017

0.0090.0170.065 0.062^5.0 41.17 41.170.023 0.035

0.0580.0160.0140.0110.018

0.0160.0050.0060.011 0.0070.006

0.0170.0860.0160.0120.021

Sample ID

2 E292 E312 E33A2 E33B12 E33B2

2 E33C2 E342 E352 E362 E37

2 E38A1A2A3A4

CanTech Laboratories,

A.A. Finish Gravimetric FinishAu Au Au Aug/t g/t g/t g/t

2.4000.0460.0080,0110.007

0.013•cO.005

0.0360.0182.060

0.0210.0340.0130.0110.015

Inc.

A'

f

Page 30: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

A CanTech Laboratories Inc.Page 1 of 2

vrAttention: Ed

GRQ MINING INC. *\#8 Lake Placid Rise Calgary, Alberta T2J 5B5

Digestion: tu

Sample10

22222

22222

22222

22222

22222

E2E6E7E9AE9B

E10E11E12E13E14

E15E16AE16BE17E18A

E18BE19E20E21AE21B

E21CE22E23E24E25

Agppm

3.6•c.5•e.5

1.71.1

0.71.01.5•e.5

2.6

0.70.9•c.5•e.5•c.5

1.50.51.1•c.5•e.5

1.81.51.02.3•e.5

IAL

At•X.

0.562.697.300.377.33

7.167.306.721.266.24

6.270.166.247.121.21

8.527.349.026.070.42

8.116.050.460.836.10

S.E.

Friesen

Certificate of AnalysisDate: September 23, 1997

J Work Order: 971 87B

[ Percnionc, Nitric,

Asppm

8417•c512*5

12*5

S6

*5

97

45.*5*5

*5•eS

13157

9.c5

87

•cS

Bppm

3530103533

24*S282919

3023•eS1023

*5^22c522

•eS•eS6128<5

Bappm

215

58618

617

224406

221846

16813

570409

22

1403794

31225

15669

929

101

Beppm

•:.5^51.20.70.8

1.11.31.1•c.51.7

1•e.5

1.31.3*.S

1.51

1.11

•e.5

1.61.10.50.61.7

C. i- -v•^

r* -

V Ait*

d ./E.0, V-f

03, 'i'

!'i

.,,0 ., .. vr

Hydroiiuonc Anacxj

Bippm

•cS•cS

5•*5*5

•eS<5•eS<5*S

*5.cS^^*5

<5•eS•eS<5*5

<5*5•cS<5^

Ca•k

0.100.990.622.093.55

0.472.145.930.096.86

0.720.120.880.550.62

2.282.771.680.411.39

4.264.987.82

13.150.48

Cdppm

1.3•el•*11.41.1

^•ci•el•C1

1.2

1.4•ci•C-1

•ci•el

•el•el•el•el•el

1.21.2•f)1.4•el

Coppm

155062245124

128

1558

30

158478

311953•e2

14

3443

712

3

Grppm

21321119776

246

10795

153184390

83191108162255

26129201100236

3410013884

103

Cuppm

210162404521

1541

34513345

8548151711

1253831598

56397

125512

Fe*

35.867.174.23

32.7612.67

3.484.429.541.908.79

4.510.770.962.242.24

9.765.328.750.621.01

8.427.162.755.660.73

K•X.

0.050.021.710.052.57

1.741.360.130.060.55

1.280.021.261.450.06

0.871.030.730.820.06

0.990.310.020.120.72

Lappm

137

191710

202832

512

20•1

3228

6

31141026

4

3225

41113

Mg"X.

0.141.641.272.672.79

3.160.631.081.254.31

3.690.040.180.490.56

2.350.944.170.130.13

1.911.443.945.770.13

Mnppm

294993563

29343669

472650

1020559

4357

59765

177296316

1173475733144215

12011259925

2453119

Moppm

1911843

467

145

41979

17

361

1119

3585

11

Na•X.

0.090.042.480.100.08

0.993.000.800.030.78

0.400.053.013.010.15

2.822.621.083.510.10

2.812.250.090.183.55

Nippm

66636312692

274

741369

19166

1616

717

1086

28

42516106

Pppm

30086

505419302

448875

1223225460

45618518039384

2088632398^

1007

2956794

•c2136152

Pbppm

1789

1516

111114

825

1559

135

159

1367

1720101416

Sbppm

O5843

94

•e3

6•e3

6•e3O

45

O•e3•c3•c3O

•e3

5^*3^

Srppm

87

714

346

47t57515

4145

277

103103

18

187200

938023

256139377988

Ti•X)

0.050.030.490.050.49

0.380.541.050.040.33

0.330.050.100.360.04

1.640.410.560.060.09

1.690.620.020.030.03

Vppm

14509423

237

7623

16618

231

677

113319

20979

3036

14

176133

15174

Wppm

*588

108

*5*5

8*5

8

*5^^*5*5

8•eS

8^*5

67^^•eS

Znppm

30727255

115

56486427

303

7225163731

13839651435

113127378916

mWliSigned .In (t

Page 31: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

4 QinTech Laboratories Inc.

GRQ MINING INC. #8 Lake Placid Rise S.E. Calgary. Alberta T2J 5B5

Digestion: TOTAL ( PercmoTttrNltric, Hydrofluoric Attack)

Attention: Ed Friesen

Certificate of AnalysisDate: September 23, 1997

Work Order: 97187B

Page 2 of 2

Sample Ag Al As B Ba Be Bi ID ppm 'K ppm ppm ppm ppm ppm

Ca Cd Co Cr Cu 'K ppm ppm ppm ppm

2 E29 0.8 5.37 72 E31 2.2 5.30 *52 E33A 0.9 8.10 72 E33B1 0.6 6.69 152 E33B2 1.4 7.04 7

7 120 0.8 ^ 0.10 ^ 10 154 245^ 79 0.6 *5 0.75 -O 3 284 9^ 210 1 ^ 3.36 1.2 13 89 12^ 314 1.2 ^ 1.83 -ci 8 146 11*5 482 1.4 -e5 1.68 *1 10 62 13

2 E33C 1.0 7.60 9 6 159 1 t5 5.09 1.1 14 67 132 E34 4.1 5.39 ^ ^ 198 1.1 *S 0.69 "M 3 101 92 E3S *.5 2.35 9 13 186 0.7 ^ 2.01 -:1 4 121 152 E36 *5 6.17 8 ^ 256 1 ^ 0.81 -d 9 118 572 E37 0.9 7.64 15 84 143 1 ^ 1.29 1.2 17 144 36

1.38 -:1 12 186 620.44 1.4 11 206 400.30 -:1 7 305 291.70 1.5 7 218 470.08 1.2 6 80 35

2AAAA

E381234

0.6•c.5•:.51.9•:.5

3.484.392.853.145.36

126

1089

1721221922

31848

147211484

0.91.7

11.21.7

Fe K La Mg Mn Mo Na Ni P Pb Sb Sr •fc "fc ppm "* ppm ppm 16 ppm ppm ppm ppm ppm

Ti V W Zn "K ppm ppm ppm

3.05 1.55 9 0.31 2111.87 0.40 29 0.43 3416.61 0.64 25 2.79 9862.67 1.03 19 0.67 5616.25 1.78 27 1.08 666

5.94 0.64 23 2.50 10791.03 0.46 7 0.25 1981.19 0.99 8 0.35 3791.63 0.80 28 0.64 3246.22 1.16 16 5.68 796

2.33 1.65 12 0.66 3462.46 1.97 16 0.85 3431.79 1.00 14 1.00 2332.03 1.35 18 1.29 7752.28 2.14 17 0.95 146

13 1.87 8 434 1211 3.12 8 269 65 2.67 34 937 158 2.64 14 603 134 1.99 5 1739 12

2 2.51 30 800 1210 3.24 10 260 1011 0.10 10 226 610 3.18 17 214 10

^ 27 0.31 33 *5 36•e3 29 0.08 3 *5 46O 129 0.59 206 6 124

8 224 0.32 46 *5 454 74 1.10 124 ^ 67

4 151 0.55 180 ^ 1094 77 0.11 19 ^ 19^ 43 0.10 25 *5 26O 107 0.25 31 *5 29

7 0.42 28 550 14 O 31 0.39 76 5 112

12 0.16 22 77 811 0.32 30 767 1211 0.23 21 415 1323 0.11 29 1282 14

^ 34 0.23 53 ^ 505 47 0.31 117 ^ 72

O 41 0.19 44 ^ 37^ 221 0.21 135 ^ 86

5 0.60 18 350 15 12 26 0.36 105 *5 46

CanTech Laboratories, Inc.

Signed)

Page 32: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

J^fUL CanTech Laboratories Inc.V-

GRQ MINING INC. ~\#8 Lake Placid Rise S. E. Calgary, AlbertaT2J 5B5 J

Page 1 of 14200B- iOSfee;NE

Calqary. AlhertaAttention: Ed Friesen canada T2E6K3

r\ J.-.C- j. f. A i Tel M03) 250-1901Certificate of Analysis ^ (m2^mWork Order: 97208

Date: October 23, 1997

A.A. Finish Gravimetric Finish A.A. Finish Gravimetric FinishSample ID Au Au Au

g/t g/t g/t

3 E1-1 10.005 10.0053 E1-2 0.0053 E1-3 10.0053 E1-4 10.0053 E1-5 10.005

3 E1-6 0.0143 E1-7 10.0053 E1-8 0.0053 E1-9 10.0053 E1-10 10.005

3E1-11 10.0053 E2-1 10.0053E2-2 10.0053 E2-3 0.0053 E2-4 10.005

3 E2-5 10.0053 E2-6 10.0053 E2-7 0.0053 E2-8 0.019 0.0243 E2-9 0.005

3 E2-10 10.0053E2-11 10.0053 E2-12 10.0053E2-13 0.0453 E2-14 0.013

Au Sample ID Au Au Au Aug/t g/t g/t g/t g/t

3 E2-15 0.0083 E2-16 0.0733 E2-17 0.0443 E2-18 0.0213 E2-19 0.013

3 E2-20 10.0053 E2-21 10.005

CanTech Laboraties, Inc.

/liflrM

Certified/^l "' '

Page 33: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

4 CanTech Laboratories Inc.Page 1 of 3

GRQ MINING INC.#8 Lake Placid Rise S.E. Calgary. Alberta T2J 5B5

Attention: Ed Friesen

Certificate of AnalysisDate: November 8, 1-997

Work Order: 97216B

. ^•M.^- a. ls —— BigestlUii.iu i Mi-

SampleID

3E1-13E1-23E1^33E1^3E1-5

3E1-63E1-73E1-83E1-93E1-10

3E1-113E2-13E2-23E2-33E2-4

3E2-53E2-63E2-73E2-83E2-9

3E2-103E2-1 13E2-123E2-133E2-14

Agppm

*:.50.70.60.9*5

0.7<.5<.5<.5<.5

0.6<.5<.5<.5•:.5

<.5<.5<.5<.5<.5

1.00.5<.51.10.6

Al*b

6.867.037.557.567.53

7.158.529.366.547.53

6.296.106.067.067.32

7.317.347.277.346.67

6.967.327.137.396.24

(-Perctiioi

As Bppm ppm

^ 18^ 14^ 10^ 8^ 9

•S 6*5 6^ 7<5 *5^ 7

*5 7*5 6*5 9<5 7*5 5

*5 <5•cS ^^ ^*5 ^^ ^

*5 ^9 ^^ <5^ *5^ ^

icrNitricrHyd

BaPPm

35798

318268213

8592

109131182

278289362399430

416364345

45293

232310315389314

Be Bippm ppm

1.0 ^0.9 *S1.1 ^1.1 ^1.1 ^

1.1 "S1.3 *51.5 *51.1 ^1.1 ^

0.9 ^0.9 ^1.0 ^1.1 ^1.1 <5

1.1 ^1.0 ^1.1 ^1.1 ^1.0 ^

0.9 ^1.0 ^1.0 ^1.1 ^0.9 *5

rofluoric Attack)

Ca Cd•fc ppm

2.32 *:13.35 <12.54 -:11.51 <11.52 t1

3.18 <12.56 <13.98 *:15.16 <12.40 -O

2.70 *10.90 <11.13 *:11.38 <10.63 -0

0.80 <1.0.96 <10.58 -:10.42 <10.62 -:1

0.40 <10.44 <10.55 *11.86 -:11.40 •O

Coppm

1317141515

2831282714

127677

878

4415

14156

1013

Crppm

13794

1209294

26352657

100

104177160143156

184154132156126

126106122119130

Cuppm

4284241817

32350

1202216

3718101841

211128

578112

798227

637314

Fe•x,

3.353.903.613.563.86

7.297.717.667.074.11

3.132.662.282.782.73

2.722.992.714.422.56

2.782.512.372.432.71

K•ft

1.120.421.420.860.75

0.470.420.630.770.70

1.121.191.341.451.68

1.651.461.422.601.28

1.051.191.261.611.44

Lappm

2426242223

2933402524

2222252427

2028251715

1616222112

Mg•fc

1.011.051.091.151.24

2.202.312.011.921.11

0.890.640.520.620.60

0.640.670.630.750.62

0.630.570.530.600.65

Mnppm

514641564643726

1507147913491690779

576353279375303

341371313293278

292252256365326

Moppm

11101188

6777

10

89

101413

1513121417

1712121211

Naft

2.643.262.653.803.95

2.693.323.441.793.28

2.302.412.272.963.12

2.933.113.311.783.21

3.453.673.403.182.71

Nippm

3019333133

2330291932

3020181916

2121223120

1919142217

Pppm

177890365532384

2354272027502460276

431280176278*2

4255162348337

178130199

41226

Pbppm

2022171416

2428282216

2017131513

1113131312

1513131516

Sbppm

O^^4

O

*315OO^

Ooooo

ooooo^0^*3O

Srppm

1922372099369

5592

246149200

176139159185124

12215112143

134

114126129171148

Tl•x.

0.370.650.390.400.44

1.161.451.730.950.40

0.350.300.250.280.28

0.310.310.300.360.30

0.280.260.260.270.31

Vppm

6096676466

13414720213267

6536303536

3738374336

3133373028

Wppm

^13^

8*5

1213127

*5

*5-S^^^

^6^5^

^*5•56^

^^

Znppm

5051525562

11311710810553

4241404850

555186

13575

8562566960

Certified

Page 34: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

4 CanTech Laboratories Inc.Page 2 of 3

Attention: Ed FriesenGRQ MINING INC.#8 Lake Placid Rise Calgary, Alberta

\^ T2J 5B5

x- — Digestion: TOTAL

SampleID

3E2-153E2-163E2-1 73E2-183E2-19

3E2-203E2-213E.13E.23E.3

3E.43E.53E.63E.73E.8

3E.93E.103E.113E.123E.13

3E.143E.153E.163E.173E.18

Agppm

0.51.21.60.60.6

-c.5<.5•c.S

<.5*.5

0.6•e.5*.5*.5*-5

<.50.5<.58.31.8

*.5•*.5<.5•e. 5<.5

Al*

6.285.886.807.537.31

7.307.766.456.927.75

6.852.145.555.826.67

7.067.295.646.357.32

7.617.266.797.187.36

S.E.

(Peichtoi

As Bppm ppm

^ ^^ ^•^ ^^ *5*5 8

^5 *5^5 5^5 ^5<5 7*S *S

-S *5^ ^

6 ^*5 <5*5 c5

^5 ^5^5 **5^5 ^5*5 <5^ ^

^ <5cS <5^ ^*5 ^*5 <5

ricrNitric, Hydroflu

Bappm

259233263377298

316321315407547

458149450232565

28225316058

288

398455166367346

Be Bippm ppm

0.8 *50.9 "51.1 ^1.2 *51.1 ^

1.2 ^1.2 *51.1 *S1.3 *S1.5 ^

1.1 ^*.5 ^1.1 ^0.8 *51.2 ^

0.7 ^0.7 *50.7 ^0.8 ^0.7 ^

0.9 "S1.0 ^0.9 *50.9 *50.9 *5

Cat**

1.150.621.781.931.86

1.951.862.302.442.06

0.580.520.810.300.54

0.620.150.140.110.13

0.250.240.220.240.31

Certificate of AnalysisDate: November 8, 1~997

Work Order: 97216B

F.,/ --f/ 1

:l i ' jfl l

in it. Attain;

Cd Co Crppm ppm ppm

*1 11 120•d 10 142*1 10 174•:1 9 164••0 9 190

<1 6 158•d 9 149<1 15 177•:1 12 154•O 8 137

<1 3 170•:1 6 380^ 9 197•e! 5 198*1 12 352

^ 7 161^ 8 227<1 15 2331.7 24 297•el 5 341

^ 12 282-:1 6 256<1 9 214•d 21 209<1 13 252

Cuppm

137722935356500

3922292831

2053193126

206656372

4170484

238298476

63136

Fe•fc

2.202.171.952.402.53

2.503.043.972.862.24

1.532.542.362.633.23

2.652.508.944.503.72

3.053.123.042.883.20

K*,

1.221.011.161.561.42

1.401.621.682.062.29

1.700.702.411.012.96

1.411.221.891.851.38

1.822.161.921.791.70

Lappm

1218111714

2930272016

328

129

10

1110969

911131213

Mg*

0.480.510.480.650.63

0.570.681.230.850.59

0.320.810.680.530.85

0.500.411.180.740.42

0.630.670.610.630.69

Mnppm

248271330390396

390444698566418

234572381258489

328300606367294

325267251332327

Moppm

1112131313

1114131315

1221151623

1619212724

2320181721

Nat,

3.022.883.283.343.31

3.223.641.972.031.91

3.190.180.822.570.76

3.473.810.601.663.56

2.992.142.272.822.95

Nippm

1416171819

1720402919

1217241133

1315111911

1814151416

Pppm

141267f2

3119

*2175337334178

*238917534

222

124e2

471^

230

40613637993

377

Pbppm

1717161318

1920151916

93

131711

911192113

1516131315

Sbppm

*3•c3.e3

OO

0oo^o

ooooo

o^o^*3

0o•C3c30

Srppm

145129148171163

173159869372

9614419237

5040352235

5951504863

Ti•fc

0.190.280.220.290.30

0.260.300.430.370.30

0.170.060.250.240.33

0.290.300.230.290.33

0.310.300.250.280.33

V Wppm ppm

19 ^29 *522 ^31 ^35 *5

34 ^39 ^79 665 ^552 12

17 c533 ^47 534 ^59 ^

32 ^30 *538 ^35 527 -S

34 ^37 *533 *533 *533 "^5

Znppm

4474756167

4653775755

3992594670

8779

149300

69

8972808295

Certified:

Page 35: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

4 CunTech Laboratories Inc.Page 3 of 3•i .'liiH :ii'-,-.! 1 ;'

GRQ MINING INC. #8 Lake Placid Rise S.E. Calgary, Alberta T2J 5B5

Attention: Ed Friesen

Certificate of AnalysisDate: November 8, 1-597

Work Order: 97216B

s — DigestionrTQTAt-

SampleID

3E.193E.203E.213E.223E.23

3E.243E.253E.263E.273E.28

3E.293E.303E.313E.323E.33

3E.343E.353E.36A3E.36B3E.36C

3E.36D3E.36E3E.36F

Ag Alppm "X,

<.5 6.06*.5 6.29<.5 5.33•:.5 0.22•:.5 0.19

<.5 5.44^5 4.61<.5 0.25<.5 5.98•e.5 6.10

*:.5 6.50•e.5 8.76<.5 7.31<.5 6.26<.S 6.34

1.4 6.19^5 7.36<.5 9.41<.5 9.48•c.5 7.22

<.5 7.33<.5 7.32•:.5 6.99

[-Perchloric, Nitric, Hydrofl uoric Attack) — ~ ———— ~ ——— ~ ———————————————————————————————————————— -

Asppm

<57^4639

17^

15015

7

*513^<55

*5^*5•eS

^

*5^^

BPpm

*5^^^<5

•G^<5<5<5

<5^^*5^

<5^<5^*5

^^•5

Bappm

256306

681318

7031932246

406603467457339

6384364863?8438

344878619

Be Bippm ppm

0.8 tS0.8 ^0.7 ^0.6 ^0.7 ^

1.4 ^•e.S ^1.2 ^0.8 ^0.8 ^

1.1 *51.0 ^1.1 fS0.9 ^1.0 *5

0.8 ^1.2 ^1.9 ^1.6 *S1.0 ^

0.9 41.1 ^1.1 *5

Ca%

0.260.312.010.200.05

3.180.302.365.832.28

0.070.580.340.530.62

0.201.642.741.950.15

0.160.600.94

Cdppm

•:1•el*:1

2.95.6

*1•el

2.1•el

*1

<1*1<1<1"1

*!•O<1<1<1

^•:1

<1

Coppm

117

304529

68

113

30

21147

10

41041418

648

Crppm

219205263159137

11136266

243155

309171152227271

1672654349

280

207204181

Cuppm

797525

277294

4112692724

46

211278

15116262815

81212

Fe•Jt

2.852.936.78

33.5034.81

17.1110.3227.7110.8711.67

1.352.002.352.262.65

3.152.809.679.752.84

1.901.832.62

K•X,

1.781.340.20*. 010.05

0.040.060.040.040.03

2.122.101.931.791.36

1.911.702.011.221.87

1.462.651.69

laPPm

511171616

1917172120

2521322313

e32624725

X1926

Mg•fc

0.670.662.080.930.66

3.482.343.140.442.65

0.680.340.570.410.55

0.550.632.172.330.50

0.350.380.44

Mnppm

263273

119984662059

331610913598915746102

2251062

231411315

189416

13202025

363

389297

2442

Moppm

1917121415

1121111613

1810131620

1320119

18

151513

NaIfe

1.722.401.440.030.06

0.130.050.090.080.17

1.392.802.282.432.50

1.772.942.723.452.84

3.811.973.14

NiPPm

1613615653

1735281237

1041111621

824313319

151317

Pppm

197312665555347

276212

1166396399

*2304204

15217

413171

22552885

89

76f2

224

Pbppm

1516215766

2919543031

1215151316

1620393413

131317

Sbppm

OOO2928

63

26•c3

13

O^3c3OO

0o

88

O

Oo^

Srppm

526444

13

60217

29187

29138633786

5118529311749

9676

133

Ti*

0.250.230.610.010.01

0.360.180.040.280.93

0.060.220.300.200.26

0.300.291.541.700.27

0.180.180.21

Vppm

3130

15526

45304

81288

456392730

3639

22919530

272726

W Znppm ppm

*5 72^ 7011 8214 9211 116

8 113^ 15722 102^ 3023 360

^ 33^ 51^ 41^ 316 102

^ 35^ 5110 1427 158^ 32

^ 26^ 21^ 39

CanTech Laboratories. Inc.

Certified

Page 36: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Appendix - C

References

25

Page 37: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

References

1) 48th Annual Report of the Ontario Department of Mines Being VOL. XLVIII, PART IV, 1939 " Geology of the Eagle Lake Area" by W. W. Moorehouse

2) Ontario Geological Survey, Geological Data Inventory Folio 440 , Garnet Bay, District of Kenora , compiled by the Staff of the Regional Geologists Office , Kenora .

3) Ontario Division of Mines ," Gold Deposits of the Kenora - Fort Francis Area , Districts of Kenora and Rainy River" by Richard C. Beard and Glen L Garratt, Mineral Deposit Circular 16 ,1976

4) Ontario Geological Survey Open File Report 5723 ," Geology, Gold Mineralization and Property Visits in the Area Investigated by the Dryden - Ignace Economic Geologist, 1984-1987" by J. R. Parker 1989.

26

Page 38: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Appendix - D

Work Assessment Report

27

Page 39: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Eagle Lake, Ontario Work Assessment Report

Claim Numbers: 1178693 1149804 1178692 1149805

Three ( 3 ) expeditions to Eagle Lake, Ontario were organised in 1997 as follows:

Reference Name Dates of Field Work

Eagle Lake -1 June 5 to 9, 1997

Eagle Lake - 2 September 4 to 8, 1997

Eagle Lake - 3 September 26 to October 14,1997

Work activities included the following:

(1 ) surface exploration c/w sample collection

(2 ) under water sample collection (scuba) on geological features which continued beyond the shoreline.

( 3 ) diamond drilling - two (2 ) holes were drilled as follows:

(a ) Hole No. 1 on Net Island adjacent to Tinkle Trench

( b) Hole No. 2 on Prendible Island through Earl's Gosson

Refer to attached documents (attached)

(i)" Summary of Labour and Expences, Eagle Lake, Ontario Claims #1178693, 1149804, 1178692, 1149805 ".

(ii) Core log sheet for Drill Hole No. 1

(iii) Core log sheet for Drill Hole No. 2

28

Page 40: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Well Name: EAGLE LAKE NET ISLAND TINKLE TRENCH CORE Location LSD: SEC: TWP: ROE: W MBR

Well Strip Log

174unit: Lats

Elevations Gr: Spudded: 97-09-28 Casing Depth Surf:

unit: NTS:Block:Long:

KB: Total Depth: opprox 40ft End Drilling; 97-09-30 Riy Release:

int: Hit: Prod; Loos Run: CORE DRILLED AT 45 DEGREE ANGLE TO SURFACE

DRILL TIMES NOT RECORDED Sample Quality: AREAS Of POOR RECOVERY Gcolugidt: DEBRA BRACKEN Dote: 98-05-20

-r^ T\ , . , JJ 1C l L C.

7 t

Depth Formation

Tops

0.00

S. 00

10.00

15.00

ROPO ——————————— 10O ..................................... 30o ............ loo

Unita- 10 100

20.00

Por osity

TT ^ TT n

Lithology

r- ~ —

TV — 71

/\

Grain Size

n — TT

\t \.t S *rt rt rv n

~ A

?

i*...,..

X

Description

IG-.Siirtace to 18EU. Intrusive qtz diorite;inottled white and medium (jrcy, plag 4 qt.z gr 0.2 to 0.3mm, minor sericite, biotite, durite, tr opnqucB(pyrite) . 2 inch medium fjrty, f grained, mufic zone present, with visible pyrite.

^0,005 3/t

^0.00*i

0.005 9/t A-u

IG.M.tfic: 18.01 to 28.Sltt:iiec!ium to medium dnrk ijrey, f grained, chlorite, minor l\or (\bleruln nnd/or hiotil.e, visible medium pyrtc cuhos sea t led thtouqh out, small(2 in) quartz vi.anlet.B present.

r

25.00 l

JO. 00

35.00

-l- - —ASSAY

\

D- 00

10:28.51 to 35f t.lntruoive qtz diiiril.ii:Mot.licvhiti! to light cjrey to nu-dium grey,pi ciloniinantly plaqiocla-jo and quartz, 1 Dinigroin uize, minor neiicitu, biotite lclil-it i I.H, tr opaquuB([)yrit.e)

C o.oo G

Page 41: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Well Strip LogHell HflMI lAGLE LAKE PRBHDILBE ISLAND CORE (EARL'S GOESAN) Location LSDi MCl TWPl RGBl H HER .

1/luniti Onlti B lock i mSi —. .Ail ; LV 1 C "Ep" "^

Elevations Gr: KB: Total Depth i 55ft *" ' ' ^ Spudded, J7-OJ-2J End Drill ing i J7-10-3 Rig Raleasei casing Depth surfi Inti Inti prod: Logs Rum COM DRILLED AT 45 DEGUE ANGLE TO SURFACE

DRILL TIMES NOT RECORDED Sample Quality: COREDi 55ft RECOVERED: 45ft Geologist: DCBRA BRACKEN Date: X-05-21 -

Depth Formation

Tops

0.06

5.00

10.00

15.00

20.00

25.00

10.00

35.00

40.00

45.00

SO. 00

ROP f0 —————————— 10 fc

o •••••••••••-.-.-loo 5Gas Unit* t i

0 - - - - - - - - -10 S0- - - - - - - - - 100 S

- --- -— •••••••-•-••- --

. .. . . ,

Excellent

Good 2 Sr- ity

U

ab.

Lithology

o r i,V K K TT

TV, n n r\ '- K ~ ~'r. 'r. ~ '~,. \. t* *, i

- K X X^ n — ~S * r, sTT TT W V

T11* TT *\ ^

*. T * A n *

w n j* j-,

^ /r 7; 7,

/* 7\ ^ A

r; K rt ftX .- T S- *

-T" 7* TT *70 ** t/ */— n- -x TTi/ *' 4' *'h rf ir n^ r; r\ 7A M /N rA ^

i JJ il i.' ,\ M 'N ?

.T X 75 S

^ Tt 7J r'^ 1: — if/\ #\ f s /v

S- H- S? **' V *r \'

•J s.' ir ^^ A /t ,*

K )r fv Xt' K t' J' ^ IT 7i Tts: - - -S.--V- .^^ *** '* **\/ t/ * .f \^n TT T; r*

iP^XXJ^OOO1 L.

Hs

•i\ . , , . ^l

i rr r r:* .t .\ **

r Z rr 'T K;f if 'i. :f

*' ^ f "/v ^ TT ~,~ ~ ~ ~~U — - - \

•jr^-^-T-

h1 H -T 5i•: s. r; ^.;;- - - H"T r. r: n

-. H K f'^ ;: -; r.' ^'^ T\ n V,

:-T ^ru ,vX n i' irv; v; :-; HA r, -. .-v* * ^, */ V'

\' ^, "~' ^*r, TI rv r.

u ^ *y vr. ^ TV 7

CIs

J4B >

r n iz

b ••^

Lne

s s l!\

N,

\

^

--^

---\ s

\ s.s

\ \

Sorting Fra*ework

s sX

s s

\

\ s.

\ \

s,^SL

1

1

/ / ICore/DST

\

\

\

\

Description

mottled white to medium grey, intergrowth of plagioclase and quartz, 0.2 to 0.3mm grain size, anr sericte, chlorite, biotite, tr opaques(pyrite) , hard, and uniform in appearence.

^ A^AV . co. 005 c^/t Ao

X At*SAy . to.ooS cj/t Ao

ASSAY-' o-00 ^ ^/* Au

ASS Ay: 1 0.00* S/* A*

—— ASSAy : ^.O-OO^ e^/t Ao

— AS*AV; O.ooS g/t Au

17ft to 2S.6ft .HAFlCimedium grey to mn r decker grey, vf to f grains, local shear area*, scattered medium grains of bluish quart* , pyrite through out, core often in rubble, le** homogeneous.

s A*5Av. Cj.oa.*. c±lt Ao

^A'SSAy; 0.00*:, Cj/d Ao

--ASSAY: -co oo s jj/ 1 Po-AM.AV ^o.oo^ 3/tAu

A^AA^: <o oo'Tjcj/t AL)

—ttSSAV 0 04S 9/t AO

— ASSAy: 0. 013 Q/d Au

— ASSA^ i O.OoSej/t Au26.6M. t.D 45.6ft.QUARTl DIORITE predominantly white with light and medium grey mottling, plAgor.lasc and quartz with sericite, gain size 1 to 2.5mm, grains are anhedral to subhedral, malic minerals are predominantly chlorite with minor biolite 4 hornblende minor opaques, hard and uiform in appearenc.

^AssAv,.. 0.013 9/t Ao

\ASS,AV : 0.04A 3 7t Ao

\ ftSiA*/: o. o 31 ^/t Ao

—— A^S.A^: 0 O^g/dAu

— ASSAYXO.CJO^ g/t Oo

——— A.SSAV : *.0.00^ g/t Ao

r

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41O09NW2003 2.18524 GARNET 020

Work Assessment Report

on the

Prendible Island - Net Island

Property

Eagle Lake Area

Ontario

for

GRQ Mining Inc.

# 8 Lake Placid Rise S.E.

Calgary , Alberta

T2J SBS

Authors : Debra Bracken , BSc. Geol.Ed Friesen , BSc. EE .

( Work Assessment September 1998 )

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41009NW2003 2.18524 GARNET 020C

Table of Contents

1.0 Executive Summary

2.0 Introduction

Figure l - Location Map Figure 2 - Claim Map

3.0 Ontario Ministry of Northern Development and Mines Mines and Minerals Division Mining Lands Assessment Work

3.1 Section 9 - Prospecting

3.2 Section 11 - Geotechnical

3.3 Section 12 - Geology

3.4 Section 14 - Geophysical

3.5 Section 17 - Assays

Lab Reports

4.0 Work Assessment Claim

5.0 Statement of Qualifications - Ed Friesen BSc. EE, P.Eng.

6.0 Statement of Qualifications - Debra Bracken BSc. Geol.

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1.0 Executive Summary

GRQ Mining Inc has acquired a group of mining claims on Eagle Lake which is located approximately 25 miles south-west of the Town of Dryden, Ontario , which in turn is located on the TransCanada Highway, approximately 350 km east of Winnipeg, Manitoba or 400 km west of Thunder Bay, Ontario .

The area was first explored around 1900 and has numerous reported occurances and prospects, many with well documented histories and production values . Early prospectors concentrated on the easily accessible gold bearing quartz veins along the lake shore .

Past exploration, since the early " high grading " operations ceased, is not well documented . Trenches can be found in the area and some diamond drilling results have been reported to the OGS (Ontario Geological Survey ) however mineral grades were not included .

GRQ Mining Inc. initiated three (3 ) work programs on the Eagle Lake property in 1997 , consisting of:

site investigationgrab sample collection, above and below water ( scuba)VLF - EM surveyingdiamond drilling ( approximately 27 meters total)research of available information (eg government aeromag maps, OGS reports etc)

GRQ Mining Inc. has a 1998 exploration program planned for this property as follows :

(a) a geophysics ( IP - induced polarization ) program

( b ) further site investigation

(c) diamond drilling of the anomalies identified by the geophysics

(d) geochemical ( soil sampling)

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2.0 Introduction

GRQ Mining Inc. owns IQQ 0/* interest in mineral claims on Eagle Lake in the area south- southeast of Vermillion Bay , Ontario .

The Prendible Island - Net Island Eagle Lake Prospect is located in the south-west extremity of Eagle Lake approximately 25 miles west-south-west of Dryden , Ontario in the Kenora mining district of Northwestern Ontario . (refer to Figure l - Location Map)

The Town of Dryden has a well developed infrastructure of highways, railroads, airport, hydro and townsite facilities .

The property is accessible from the Trans-Canada highway, which borders the north shore of Eagle Lake, by following a gravel road southwards through the Town of Eagle River to private fishing lodges on the Detour Point road. Accessibility to the property on the lake is by boat in summer and snowmobile in winter, an approximate distance of 5 - 6 km south-east to reach the claim area.

Alternatively, an all weather road, intersecting Hwy 502 south of Dryden, proceeds southwest along the south side of Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property .

Refer to Figure l - Location Map

Refer to Figure 2 - Claim Map

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To Red Lake

To Winnipeg

To Fort Francis

Figure 1

Location Map

Dryden

VermillioiY Bay

N

t

To Thunder Bay

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N

t

EAGLE EAKE

GRACE PROSPECT

BUFFALO OCCURANCE

NET ISLAND

CLAIM # 1178692

NEWPIONEERISLAND DEBBIE

ADIT

PRENDIBLE ISLAND

PIONEER ISLAND

CLAIM # 1149804GOLDEN EAGLE PROSPECT

OCLAIM # 1178693

Rgure 2 — Claim Map

GRACETALCMINE

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The south west area of Eagle Lake was first explored around 1900 and has numerous reported occurances and prospects many with well documented histories and production values . Early prospectors concentrated on the easily accessible gold bearing quartz veins along the lake shore . Visible gold would have been their major criteria for development. These early discoveries occur along the granite - metavolcanic contact on the mainland and neighbouring islands of southwest part of the lake.

Through out the 1930's and 1940's limited and sporadic gold exploration occurred, many of the old properties were reevaluated . Base metals, iron, and uranium exploration occurred throughout the area during the 1950's to the late 1970's . During the late 1970's widespread exploration for gold occurred around the Dryden area due to resurgence in price and demand . There are over 200 known gold occurances in the Dryden - Ignace area.

GRQ's claims at Eagle Lake contains numerous trenches, test pits, adits and old shafts which pockmark the area from different eras of exploration . Currently gold as well as platinum group elements are activity being sought in the south-west quadrant of Eagle Lake and adjacent areas.

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3.0 Ontario Ministry of Northern Development and Mines Mines and Minerals Division Mining Lands Assessment Work

3.1 Section 9 - Prospecting

The Eagle Lake Properties (Prospecting Section 9)

GRQ Mining Inc has the following claims in Ontario, specifically

1178692117869311498041149805

which are located in the south-west region of Eagle Lake. The properties contain several islands, Net Island, Prendible Island, Old Pioneer Island and New Pioneer Island are the largest in the claim group.

Prospecting expeditions to these claims occurred on the following dates

Reference Name Dates of Field Work

Eagle Lake - l June 5 to 9, 1997

Eagle Lake - 2 September 4 to 8, 1997

Eagle Lake - 3 September 26 to October 14, 1997

1) Eagle lake - l Expedition (June 5 to 9,1997)

This was GRQ Mining Inc's first trip to the area. The main intent was to become oriented with the area, note geological features and collect rock samples. Access to the claims and traverses around the islands was by boat.

Personnel involved with this expedition were

Ed Friesen

Earl Hanson

Refer to Map 9 A, Map 9B and Map 9C as well as Section 17 Assay Submissions for the locations and lab results of the samples collected.

Based on the results from this expedition, a decision was made by GRQ Mining Inc to acquire the claims listed.

8

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2) Eagle lake - 2 Expedition ( September 4 to 8,1997 )

This was GRQ Mining Inc's second trip to the area. The objective of this expedition was to plan the logistics for a larger more intensive expedition scheduled for the end of September 1997. Geological features requiring detailed work were identified and rock samples were collected.

It was during this trip that the adit on Net Island (named Debbie Adit) was found as well as evidence of trenching on the hill above the adit (named Tinkle Trench).

Access to the claims and traverses around the islands was by boat.

Personnel involved with this expedition were:

Ed Friesen

Earl Hanson

Debra Bracken

Refer to Map 9A, Map 9B and Map 9C as well as Section 17 Assay Submissions for the locations and lab results of the samples collected

Decisions made during this expedition were

a) To diamond drill the quartz vien at Tinkle Trench and the sulfide zone at Earl's Gosson.

b) To utilize scuba divers to sample geological features under water where overburden was non-existent.

c) To continue exploring and rock sampling.

d) To locate the magnetic anomaly at the north end of Net Island.

3) Eagle lake - 3 Expedition ( September 26 to October 14,1997 )

This was GRQ Mining Inc's third trip to the area. The objective of this expedition was to

a) To diamond drill the quartz vien at Tinkle Trench and the sulfide zone at Earl's Gosson.

b) To utilize scuba divers to sample geological features under water where overburden was non-existent.

c) To continue exploring and rock sampling.

9

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d) Logistics and planning of grids for geochem and geophysics Personnel involved with prospecting on this expedition were:

Ed Friesen

Debra Bracken

Two (2) diamond drill cores were recovered as follows:

Drill site location Drill core name

Net Island - Tinkle Trench 3E1 - X

Prendible Island - Earl's Gosson 3E2 - X

X refers to the sample number obtained from the respective drill core.

Refer to drill core log sheets in Section 17( attached )

Underwater rock samples were recovered by scuba divers, the locations are shown on Map 9 A, Map 9B and Map 9C.

Access to the claims and traverses around the islands was mainly by boat.

Refer to Map 9 A, Map 9B and Map 9C as well as Section 17 Assay Submissions for the locations and lab results of the samples collected

At the lake shore there was abundant rock exposure making outcrop very accessible.

10

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CLAIM 1178692

LEGEND

GRANITOID, GRANIDIQRITESAT THE AKITWA MONOLITH

METAVOLCANICS LOWER WABIGOON

SCALE - 1:5000

CLAIM t 1149805

EAGLE LAKE

MAP 9A

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GRANITOID, GRANIDIORITESAT THE AKITWA MONOLITH

METAVOLCANICS LOWER WABIGOON

SCALE - 1:5000

i H m TRAVERSE

CLAIM l 1178692CLAIM 1149805

CLAIM f 1149804CLAIM # 1178693

MAP 9B

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CLAIM 4 1178692CLAIM f 1149805

CLAIM l 1178693 CLAIM 1149804

GRANITOID, GRANIDIORITESAT THE AKITWA MONOLITH

METAVQLCANICS LOWER WABIGOON

NEWPIONEERISLAND

SCALE - 1:5000

TRAVERSE

OLDPIONEERISLAND

PRENDIBLE ISLAND

MAP 9 C

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3.2 Section 11 - Geotechnical

It is the intent to use this report in total to meet the requirements of Section 11 - Geotechnical.

Additional information is as follows

a) The holder of the mining land is

GRQ Mining Inc. 8 Lake Placid Rise S.E. Calgary, Alberta T2J 5B5

Phone: (403) 278-2577

Fax: (403) 278-2638

Contact Ed Friesen - President

E-mail efriesen(a).telusvelocity. net

b) Authors of this report

Ed Friesen BSc EE, P.Eng

Debra Bracken BSc Geol.

Refer to Statement of Qualifications Sections 5.0 and 6.0

c) The names and addresses of the persons who supervised this survey are

Ed Friesen8 Lake Placid Rise S.E.Calgary, Alberta T2J 5B5

Debra Bracken 3812-12 Street S.W. Calgary, Alberta T2T 3P2

li

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d) Dates when the field surveys was performed are

Reference Name Dates of Field Work

Eagle Lake - l June 5 to 9, 1997

Eagle Lake - 2 September 4 to 8, 1997

Eagle Lake - 3 September 26 to October 14, 1997

e) The exploration and development work performed on these claims is detailed in the appropriate sections of this report.

e) Lab reports are included in Section 17 Assays

f) Anomalous values of precious and base metals have been obtained. The geology of the area is at present not understood and future work plans include

* IP (induced polorization survey )

* Soil and rock sampling program based on the IP survey results

* Diamond drilling based on the IP and soil and rock sampling surveys

g) All information is shown on the maps accompanying this report

12

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3.3 Section 12 - Geology

The regional geological setting of the GRQ Mining Inc Eagle Lake Property is located in the Eagle-Manitou Lakes greenstone belt within the Wabigoon Sub-province . The belt is composed of mafic, intermediate and felsic metavolcanic flows . There are lesser amounts of pyroclastic and metasedimentary rocks within the belt. The area has been intruded by large granitic batholiths such as the Atikwa Batholith to the south and the Dryberry and Lount Lake Batholith to the north .

The Wabigoon Sub-province consists of the Upper Wabigoon Volcanics , Lower Wabigoon Volcanics , Eagle Lake Volcanics and the Eagle Lake Lobe of the Atikwa Batholith . In the Eagle Lake area there are gold occurances in the Lower Wabigoon Volcanic, a mixed sequence of mafic to meta volcanics. Granitiod rocks of the Eagle Lake Lobe of the Atikwa Batholith geographically close to the Lower Wabigoon Volcanics also contain numerous gold prospects. The Lower Wabigoon Volcanics overlies massive and pillowed flows of the Upper Wabigoon volcanics geographically located to the north.

From Parker

To the north of GRQ's claim properties approximately four (4) km is the Wabigoon Lake Fault trends east - northeast along the north shore of Eagle Lake.

Prendible Island

Outcrop on Prendible Island predominately consists of granitic rocks of the Atikwa Batholith.

Near the Golden Eagle shaft is the quartz vien is hosted in a gray, medium to coarse grained, biotite/hornblende granitic rock

Blue quartz eyes are present along with sericite, chlorite and pyrite. A northwest trending shear zone is present at the Golden Eagle Prospect.

Thin section analysis shows that the rock found on the north peninsula of Prendible Island is a relatively fresh quartz diorite of the typical intrusive type.

Its description is as follows:

The rock consists essentially of an intergrowth of plagioclase and quartz of grain size 0.2 - 3.0 mm. The quartz predominately occurs segregated as clumps up to l cm in size, made up of aggregates of anhedral, crenulate-margined, strain-polarized grains. The plagioclase occurs as vari-sized subhedral grains, typically showing an even light dusting of sericite.

Mafics consist dominantly of chlorite - presumably secondary after original hornblende or biotite. This occurs partly as irregular clumps up to 2 mm in size, probably representing original mafic phenocrysts. These are speckled with tiny grains or rutile and sphene and, in some cases, incorporate well-formed flakes of biotite. Chlorite also occurs in intimate interstitial relation to

13

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the areas of relatively fine-grained plagioclase/quartz intergrowth which separate the main segregations of quartz and sub-prismatic plagioclase. A little chlorite is also mobilized into a few hairline fractures.

Minor opaques, as sparsely disseminated grains associated with chlorite, or in hairline fractures, appear to be partly Fe oxides and partly pyrite.

Net Island

Two basic rock types are found on Net Island. The northern 1/3 consists of intermediate metavolcanics of the Lower Wabigoon Volcanics. Granodiorite and Granitoids of the Atikwa Batholith dominate the southern 2/3 of Net Island. At the Adit on the most southern peninsula of Net Island, granodiorite is light gray and coarse to minor medium grained with biotite and horneblende. Minor to trace amounts of pyrite is scattered throughout.

Distribution of Vegetation

The claim area is dominated with conifer trees, jack, red pine are the most abundant. Also noted are white pines and black spruce. Near the lake shore, scattered poplars and birch are present. On Prendible Island, a stand of poplars and ash are present in the center of the northern peninsula. Cedars were encountered in low lying areas.

Swamp/marsh areas are located near lake shore on the bay separating the northern peninsula from the rest of Prendible island.

Net Island, the largest island in the claim block, contains a large swamp area which seems to follow the granodiorite / metavolcanic contact in the north - central third of the island. A small lake is present on the eastern half of the swamp and it drains eastward into eagle lake by way of a slow moving narrow creek.

Swamp / marsh areas are sporatically located in low lying areas at the lake shore of the southern portion of Net Island.

Overburden

The claim areas have noticeably been glaciated, evident by the well rounding of the shore-land and outcrop. No overburden was noted. The islands were absent of varves, moraines, clays and gravel. The occasional large erratic boulder was noted on Net Island in areas of higher elevation.

In general, the islands showed an abundance of rock outcrops. Shallow soils and sub-soil clay material fill depressions between outcrops.

14

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Map showing rock outcrop

The claim area is abundant with rock outcrop. Predominant rock type encountered on both Prendible Island and Net Island were granitoid in nature from the Eagle Lake lobe of the Atikwa Batholith. Thin section analyses define these rocks quartz diorite to granodiorite, medium to coarse grained, light gray to gray-white in colour. Almost continuous outcrop was visible at the lake shore.

A short traverse was conducted on the northern portion of Net Island to locate the magnetic anomaly. Outcrops were metavolcanic in nature, fine grained, medium gray in color. Also encountered was a ridge of heavily weathered, orange-brown stained rock, also thought to be metavolcanic in origin.

Refer to Map - 12A, Map - 12B, Map - 12C Map - 12D, Map - 12F, Map - 12G, Map - 12H and Map -121

General Information

Prendible Island

Golden Eagle

1) 1901 adit at lake shore on exposed quartz vien, made by Mr. N. Higbee

9.5 oz gold, average 0.5 oz l ton

2) 1903 75 ft shaft and 160 ft of drifting along lake shore adit

29 ton tested, 17 oz gold produced average 0.58 oz /ton

work completed by 1906

3) evidence of trenching noted near shaft entrance, date and history unknown

4) evidence of trenching noted across from adit in Earls gosson area ( north of adit across Prendible Bay ), date and history unknown.

5) Evidence of trenching on north end of Prendible Island at lake shore on exposed quartz vien, date and history unknown.

Old Pioneer Island

1) shaft located near centre of old pioneer island

15

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1904 ft shaft sunk

1905 shaft deepened to 80 ftnot encountered on GRQ expedition

Net Island

- south end of Net Island

1) adit follows quartz vien at lake shore, and is approximately 20 feet in length no history or dates found in research

2) evidence of trenching 25 meters to the south of the adit on outcrop bearing quartz vien no dates or history found in research

- north end of Net Island

1) evidence of trenching near magnetic anomaly in association with sulphide zone

no dates or history found in research

Points of interest

Numerous cut lines have been encountered on the north end of Net Island from previous exploration

Information from

OGS, Open File Report 5723Geology, Gold Min and Property Visits ........ Economic Geologist 1984 - 1987 by I.R. Parker

16

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CLAIM # 1178692

DISTRIBUTION OF SWAMP/MUSKEG/FOREST COVER

CLAIM # 1149805

MAP 12A

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DISTRIBUTION OF SWAMP/ MUSKEG/FOREST COVER

CLAIM f 1149805

CLAIM l 1178693 CLAIM f 1149804

MAP 12B

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CLAIM l 1178693 CLAIM # 1149804

DISTRIBUTION OF SWAMP/ MUSKEG/FOREST COVER MAP 12C

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N

tCLAIM i 1178692

LOCATION OF TRENCHES/TEST PITS/SHAFT/ADITSSCALE - 1:5000

CLAIM f 1149805

EAGLE LAKE

EVIDENCE OF TRENCHING

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OCATION OF TRENCHES/TEST PlTS/Sh ^FT/AD!TS

CLAIM f 1178692CLAIM l 1149805

CLAIM # 1149804CLAIM # 1178693

ACLITAT LAKE SHORE

AREA OF TRENCHING

MAP 12E

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CLAIM j)! 1178692CLAIM # 1149805

CLAIM # 1149804CLAIM f 1178693

LOCATION OF TRENCHES/TEST PITS/SHAFT/ADITS

SCALE - 1:5000

500m

MAP 12F

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CLAIM # 1178692

CLAIM f 11490U3

GRANITE/GRANIDIORITE ECT.

VGEOLOGICAL BOUNDARY (APPROX.)

/^s SULFIDE MINERALITE

**~

SHALT

SULFIDE ZONE REPORTED STRIKE 8c DIP OR VERTICAL SHISTOSITY

FROM ONTARIO DEPT. OF MINESGEOLOGY OF THE EAGLE LAKE AREA

BY MOOREHOUSESCALE - 1:5000

500m MAP 12G

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——————l——l——————V Y V FROM ONTARIO DEPT, OF MINES

GEOLOGY OF THE EAGLE LAKE AREA V BY MOOREHOUSE

y *

N v

SCALE - 1:5000

LEGEND

V V

VOLCANIC SERIES

GRANITE/GRANIDIORITE ECT.

SYMBOLS

GEOLOGICAL BOUNDARY (APPROX.)

/\s SULFIDE MINERALITE

STRIKE Se DIP OR VERTICAL SHISTOSITY

CLAIM f 1178692

CLAIM # 1149804

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__j

y V GRANITE/GRANiDIORITE ECT

GEOLOGICAL BOUNDARY (APPROX.)

/\S SULFIDE MINERALITE

STRIKE A DIP OR VERTICAL SHISTOSITY

MAP 121

BUFFALO OCCURANCE

V FROM ONTARIO DEPT, OF MINESGEOLOGY OF THE EAGLE LAKE AREA

BY MOOREHOUSESCALE - 1:5000

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3.4 Section 14 - Geophysical

Two ( 2 ) VLF - EM traverses were conducted, the locations being shown on MAP -14 and the results are attached.

Traverse #1 shows the existence of a conductor

Traverse #2 does not indicate any result.

Refer to Map -14 and VLF - EM results for Traverses #1 and #2

17

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* x x j GRANITOID, GRANIDiORiTESAT THE AKiTWA MONOLITH

METAVOLCANiCS LOWER WABIGOON

^* i ^^^^r/ s f d/ C,i v^ SWAMP

SCALE - 1:5000

1 i /* f n, -y v yicr - WP1 5 N1MAP 14

N

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3.5 Section 17 - Assays

Refer to Map- 17C1Map - 17A2, MAP - 17B2. MAP - 17C Map - 17A3, MAP - 17B3, MAP - 17C

18

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CLAIM # 1178692CLAIM 1U9805

CLAIM f 1149804CLAIM l 1178693

OLDPIONEERISLAND

PRENDIBLE ISLAND

GRANITOID, GRANIDIORITES AT THE AKITWA MONOLITH

METAVOLCANICS LOWER WABIGOON

GOLDEN EAGLE PROSPECT

SCALE - 1:5000

MAP 17C1

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^ CanTech Laboratories Inc. / ic,Payc f of 14200B-10SUWN.E.

Calgary. Alberta^r L Attention: Ed Friesen n^r*™/" Ed Frt&sen S. Associates Inc. \ l 0 ,^ 1ftn.f *8 Lake Hacid Rise s.E. -4—^ 7? Certificate of Analysis 11^1

Calgary, Alberta J . Fax (403) 250-8265T2J 5B5 j Work Order 97142A

x. . ...^ n-itw h lin i -inflT

f

Sample Number

E1 E2 E3 E4 E5

E6 E7 E8 E9

E10

E11 E12 E13 E14 E15

E16 E17 E18 E19 E20

E21 E22 E23 E24

V E25

Au Sample Au ppb . Number ppb

^ E26 ^ ^ E27 274

3 E28 2520

1260 ' CanTech Laboratories, Inc.

181 - ' : - . .

^ :! -: ' Riwtard Magner, B.Sc. . • ; -/:" Laooratory Manager

3 ' -' r1"':".- ; :'' ' :/:' - : -^.^ " ..-J'.' - '' ' : ': - .••'-.<2 - . ' - ''- " -: v: : :',-4\-S-^;; ':^: . ^VB^VV-^.. J" ;. -v / - -.V' : 0: ^ ..V" , . '. -. ' , - .' .

^ " -.-•- V^'&S- :.r '. - : - -" ' ' ' :'-'v---.-.- . .. --- ' -

<2 ' ' ' ; V^.l^'.vV- "4 - v-.v :';-:7 ;.7

148 <2 .

Page 75: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

X*M CanTech Laboratories Inc. C~ i / V^ ci^z-o/^ ZdJU—/" E. J. Frlesen A Assoc/afas /ne.

#8 Lake Placid Rise S. E.Calgary. Alberta

V^ T2J SBS

^ Digestion:

Sampto10

E1E2E3E4E5

E6E7BBE9E10

E11E12E13E14E15

E16E17E18E19E2D

E21E22E23E24E25

E26E27E28

Aappm-

0.50.5050.82.0

2.21.41.10.70.6

0.80.70.80.9

0.5

O.503

O.50.50.5

O.51.00.6

39.50.6

1.014.80.5

0 Jt^^. 77Attention: Ed Friesen

Certificate of AnalysisDate: July 11. 1997

Work Order: 971 428

TOTAL ( Perchloric, Nitric, Hydrofluoric Attack)

Alt.

8267.688.117.386.49

8.536.967307.797.28

6.195.405.596588.40

8.217.970.748.396.68

7.417.927.440.32554

0.116.180.50

CanTech Laboratories,

V

Asppm

,5-5

7^*s

*s*S

10"S"5

96^75

S89

149

,5•S9

1112

•S228

Inc.

Bppm

475449027

3726253530

2210132128

243014199

1611138

13

12B

21

Bappm

350296350401356

584462427312336

337251371530495

64260297

442531

1115

45920

259

438344

B*ppm

1.81.51.71.61.4

1.71.51.51.81.7

' - ' ' ',

15151.4131.7

ZO1.7 :0.71.71.7

131.4-1.70,71.4

0.7130.7

Blppm

"S•cS•cS-5•eS

^^

^^

•S^s^5'i-'*.. r'.'"55'^5^^3^5^5-••s

.' "S,*s^5

^5

^5;'*s•*559.*s"

*5e

•(S

Ca Cd* ppm

0.76 t10.39 <1ass *i1.54 1.20.14 -d

0.17 -d."0.1 4'..^ .i.0-24' 'W.

1.70 "xMl1.43 Sift:

"^^•-•M?;

'O29^v5l jO27.V:"il|'aiO'X'M;o.ii,:-""'-*i'-';.0.21.: -tf:-.

•- . . - . ir.-— ;0.13 "".•d""'

0.06 'V^..j0.02 ^'.5V-;;0.1 8 f -..'-r.0.08 *l.730"'- ' ir927 ..."I.",1.79; -^'-jQ28 ; ^:9': '

1 -44JT#;•' "- * * .'*'

0.08 -ei ,0.08 ' <10.05 d

' Co Crppm ppm

B 23312 2554 236

10 1598 289

7 2244 147

16 164' 7- ' 231 '

; ..8 217-' ^V^,.'.'"-'

4^178'

. 8 "1712" 1593 201"8 267

. - - '

7 3115 249^ 520:12 "2272l" 185

27 29232 329~5. 123.

' 16 3295 117

. ."i9 334e 106^ 360

Cuppm

503023

107150

514264.

91so :14

ffi?? VSe:13™"

-- 17 '-;11-. '"

19 '25

:'.13"y- 48-: .. 15.55':-''

.v 16"

"10S.186.

. 717428 "

11•'- '.' .

6189820 "

Fa*

3.893.732.893.343.92

3.00Z55Z88Z84Z96

"'-fc '"'

"i .962301.451.91Z90

acrrZ060.66Z21Z80

6.706.841,972581.80

0504.710.47

K*

1.561.531.391.941.70

2.52Z191.96

' 1.38- 1 -43'^•.-P'i-S''"'\2A

f 054"1.67

3.77Z13

327"4.170.632.783.77

0.080.09156O.O40.83

O.011.620.19

Lappm

1617131212

175

1118

": '-. 13trV-'/.'-.'l3

18101525

1117' "13

1556

88"21

- 420

. .' ^1

8•O

Mgt,

0.780.770.650.74058

0.570.610.720.680.73

.,'". ' "

0510.61036032OJS6

0.86036OJM0.600.66

Z92Z940.49'0^150.48

O.O10.680.02

Mnppm

333375276466230

271 .2332814314os; ;

A-.---'-..-'i

191339' 125;'127223"

251-75 i

. 54"166185

15481520. ,448 '82.r

349*

2929634

Mo Nappm %

13 3.5114 .3.2713 3.369 252

18 Z01

16 2518 1.87

12 Z1213-3.1513 Z78

/?. -- ~-.. :- ;:10 231"

"10." 1.838 1.56

11 154" 14 3.10-. - ;." 19 0.77

13 a7329 0.0413 23112 aio

4 0.516 0.16

. ' 6 Z7519 0.056 Z09

..- -.v : '

22 0.048 1.43

23 0.03

Nlppm

1414101211

859

1717

9118

1519

1814111120

866311809

7659

l

ippm

850749755542439

503371530481f8.Lv518449369308609t654391•f 10604323

588569774•elO526

9320

*10

Pbppm

9119

138

97

101114

io79

1110

1097

1314

162212289

31539

Sb SI Srppm * ppm

*3 0.02 226^ 0.02 135O 0.01 135^ O.01 76O O.O1 37

3 0.01 55O 0.01 377 0.01 44

0 0.02 2210 O.O1 216

-"-•- --;!iv ,'" O 0.01 '114^ O.01 111O O.O1 36^ O.O1 405 0.02 107

O 0.02 370 0.02 28O O.01 : . 4^ aoi^ ei^ O.01 21

7 0.02 1806 0.02 2064 O.01' 71

O OD1 .8.O O.01 161

•*- "' **

*3 O.01 2^ O.O1 26O OJOI 4

Tl*

0.450.390.370.390.33

0.390340.360.370.39

0.280330210.320.37

0.350.350.030.39037

0.550.600.24"0.02;;0.23;.f y .0.010290.03

Po^c: 1 Of 1 4200B - 10 Sneet N E

Calgary. Alberia

Canada T2E 6K3

Tel (403) 250-1 901

Fa* (403) 250-8265

Vppm

6759484744

4933394450

33402534-e

4642

64754

213222y

-30-

529

1359

Wppm

^-5*5"S*5

•(S

^*s*s^

^*s*5*s*5

*5*S•S8

14

•S*5^8

*S

57

^5

.

^

' a ^ 'ppm

8112665

13084

9O .78 -

.155--"56 " -"y-: .

, ei ;; ; . '-" 38 '"' :^J

4520 ",:

.. 47'-.--':48 ••"

*.

63 ,51 ~--'-14 '-":-.44 ' ' '

39

"so.-;:.105 r.- .33 -:-^i, -'

•*l^-'-^i'-" 01^ ^jt.,.-,*... 31 ~-?*'.

: . - '5 •'•-

88/r0'.j*.

/]KMM

SlgnecT/^^tM-' '

Page 76: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

o:IJL

cc

cc

CanTech Laboratories Inc.

(Page 1 of 1

d

782638 P

CU

ch-

f GRQ MINING INC.m Lake Placid Rise Calgary, Alberta

, T2J 5B5

X" " ——————————————————————— j*

Sample ID

2E292E9B2E9A2E172E13

2E232E21A2E21B3E2-13E2-2

E242E2Prendible audit

S.E.

Autf

3.4001.4950.0220.005

24.000

0.0300.0740.0330.0792.020

0.1650.200

199.700

Aggft

1.4^.2

0.70.2

1.2

1.30.20.41.01.3

88.74.8

20.8

'x

)

Ptppb

OOOOODOOOO

OOOO00OOOO

OOOO00

Pdppb

^0^0^0^0^0

^0<20<20<20*20

•*20<20^0

Attention: Ed Friesen 'C-yisd* \A l'K3

/-v ^.'f j. t. A i - rtH403} *JO--90-Certificate of Analysis ^^^^.Work Order: 98090

X.i

Rhppb

00 1OOOOOOOQ

00OOOO^OO

OOOO !OO

end

CanTech Laboratories, inc. Confidential Lab Man;iv|r''

Page 77: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

GRANITOID, GRANiDIORITESAT THE AKiTWA MONOLITH

METAVOLCANICS LOWER WABIGOON

CLAIM # 1178692CLAIM f 1149805

CLAIM # 1149804

GUANO REEF

2E10 2E13

2E16 2E18

MAP 17B2

Page 78: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

CLAIM # 1178692CLAIM t 1149805

CLAIM l 1178693 CLAIM 1149804

GUANO REEF

NEWPIONEERISLAND 2E10

2E13

PRENDIBLE ISLAND

GRANITOID, GRANIDIORITESAT THE AKITWA MONOLITH

METAVOLCANICS LOWER WABIGOON

GOLDEN EAGLE PROSPECT

MAP 17C2

Page 79: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

\SL.-

^^L CanTech Laboratories Inc. ^ 4— cr" 7 9 -7V'/" GRQ MINING INC.

#8 Lake Placid Rise Calgary, AlbertaT2J 5B5

S.E.

y

•^r^r ^ 1 ' f

Page 1 of 142GOB- 1 0 Street NE

Calgary AlbertaAttention: Ed Friesen Canad3 T2E6K3

/-N ^T j. i. A l Tel (403) 250-1901Certificate of Analysis Fax( 403)250.e265

A.A. Finish Gravimetric FinishSample ID

2 E22 E62E72 E9A2 E9B

2 E102E112 E122 E132 E14

2 E152E16A2 E16B2E172E18A

2 E18B2 E192 E202E21A2 E21B

2 E21C2 E222E232E24

V^ 2 E25

Au Au Aug/t g/t g/t

0.2410.015 0.0210.0130.0280.017

0.0090.0170.065 0.062

Au Sample IDg/t

2 E292 E312 E33A2 E33B12 E33B2

2 E33C2 E342 E35

^5.0 41.17 41.17 2 E360.023 0.035

0.0580.0160.0140.0110.018

0.0160.0050.0060.01 1 0.0070.006

0.0170.0860.0160.0120.021

2E37

2 E38A1A2A3A4

Work Order: 971 87ADate: September 18, 1997

A.A. Finish Gravimetric FinishAu Au Au Aug/t g/t g/t g/t

2.4000.0460.0080.0110.007

0.013•:0.005

0.0360.0182.060

0.0210.0340.0130.0110.015

CanTech Laboratories, Inc.

^,

AT)Certified: V/V/^rV

Page 80: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

^!EB CanTech Laboratories Inc.

f GRQ MINING INC. m Lake Placid Rise Calgary, Alberta

V^ T2J 5B5

x" Digestion: i o

SampleID

2 E22 E62 E72 E9A2 E9B

2 E102 E112 E122 E132 E14

2 E152 E16A2 E16B2 E172 E18A

2 E18B2 E192 E202 E21A2 E21B

2 E21C2 E222 E232 E242 E25

Agppm

3.6<.5<.51.71.1

0.71.01.5f.52.6

0.70.9•c.5<.5•c.5

1.50.51.1•c.5":.5

1.81.51.02.3•:.5

TAL

At•fc

0.562.697.300.377.33

7.167.306.721.266.24

6.270.166.247.121.21

8.527.349.026.070.42

8.116.050.460.836.10

S.E.

Percmoric, Nitnc,

Asppm

8417^12•cS

12•eS

56^

97^^^

•S<51315

7

9•eS

87

•cS

Bppm

3530103533

24•eS282919

3023^1023

^^22•cS22

*5•cS6128^

Bappm

215

58618

617

224406

221846

16813

57040922

1403794

31225

15669

929

101

Beppm

•c.5•:.51.20.70.8

1.11.31.1•c.51.7

1•c.51.31.3•:.5

1.51

1.11

•:.5

1.61.10.50.61.7

\

J

Attention: Ed Friesen

Certificate of AnalysisDate: September 23, 1997

Work Order: 971 87B

Page 1 of 242008 - iflSireeitJE.

C,il'|aiy Alherto

Canada T2E6K3

Tel M03i 250- 1901

Fax i -103) 250-8?65

HydroTiuoric AIUCK)

Bippm

^^5

*5•cS

•eS•cS<5•cS<5

•cS<5<5•cS<5

<5•cS<5^<5

<S^<5^•cS

Ca'X,

0.100.990.622.093.55

0.47Z145.930.096.86

0.720.120.880.550.62

2.282.771.680.411.39

4.264.987.82

13.150.48

Cdppm

1.3•d•:11.41.1

*1ci•d•C1

1.2

1.4-:1•el*1*:1

*:1•el*:1•c!•d

1.21.2•el1.4*:1

Coppm

155062245124

128

1558

30

158478

311953"214

3443

7123

Crppm

21321119776

246

10795

153184390

83191108162255

26129201100236

3410013884

103

Cuppm

210162404521

1541

34513345

8548151711

1253831598

56397

125512

Fe•fc

35.867.174.23

32.7612.67

3.484.429.541.908.79

4.510.770.962.242.24

9.765.328.750.621.01

8.427.162.755.660.73

K*

0.050.021.710.052.57

1.741.360.130.060.55

1.280.021.261.450.06

0.871.030.730.820.06

0.990.310.020.120.72

Lappm

137

191710

202832

512

20•1

3228

6

31141026

4

3225

41113

Mg•fc

0.141.641.272.672.79

3.160.631.081.254.31

3.690.040.180.490.56

2.350.944.170.130.13

1.911.443.945.770.13

Mnppm

294993563

29343669

472650

1020559

4357

59765

177296316

1173475733144215

12011259925

2453119

Moppm

1911a43

467

145

41979

17

361

1119

3585

11

Na*K

0.090.042.480.100.08

0.993.000.800.030.78

0.400.053.013.010.15

2.822.621.083.510.10

2.812.250.090.183.55

Nippm

66636312692

274

741369

19166

1616

717

1086

28

42516106

Pppm

30086

505419302

448875

1223225460

456185180393

84

2088632398*2

1007

2956794

•c2136152

Pbppm

1789

1516

111114

825

1559

135

159

1367

1720101416

Sbppm

^5843

94

•O6

O

6•c3O45

O•c3•c3•e3O

^5

•OO•e3

Srppm

e7

714

346

47157515

4145

277

103103

18

187200

938023

256139377988

Ti*

0.050.030.490.050.49

0.380.541.050.040.33

0.330.050.100.360.04

1.640.410.560.060.09

1.690.620.020.030.03

Vppm

14509423

237

7623

16618

231

677

113319

20979

3036

14

176133

15174

Wppm

*588

108

^^

8•cS

8

•cS•cS•cS•cS^

8^

8•c5^

67

•cS•cS

^

Znppm

30727255

115

56486427

303

7225163731

13839651435

113127378916

Signed:

Page 81: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

4^b CanTech Laboratories Inc.v-f GRQ MINING INC.

m Lake Placid Rise Calgary, Alberta

\^ T2J 5B5

/" Digesilon: IUIHL.

SampleID

2 E292 E312 E33A2 E33B12 E33B2

2 E33C2 E342 E352 E362 E37

2 E38A 1A 2A 3A 4

Agppm

0.82.20.90.61.4

1.04.1•*.5•c.50.9

0.6•e.5•e.S

1.9^5

Al•x.

5.375.308.106.697.04

7.605.392.356.177.64

3.484.392.853.145.36

S.E. -

" * ___ - - * ^•-. - -M- 1

J

L-u _____ l

Attention: Ed Friesen

Certificate of AnalysisDate: September 23, 1 997

Work Order: 971 87B

tj ____

Page 2 of 24200B 10 fit;--!', L

Cjlll'KV. Alf)*:!;,i

Canada T2F6K;

Tel (403) 250 '.C-Oi

Fax (403) 250 8265

( Perchloric, Nnnc, nyaroiiuonc MIUICK)

Asppm

7•c5

7157

94s98

15

126

10e9

Bppm

7^^^<5

6<513•eg84

1721221922

Bappm

12079

210314482

159198186256143

31848

147211484

Be Bippm ppm

0.8 ^0.6 ^

1 ^1.2 t51.4 ^

1 *51.1 ^0.7 ^

1 ^1 *5

0.9 ^1.7 ^

1 ^51.2 -G1.7 *S

Ca•X,

0.100.753.361.831.68

5.090.692.010.811.29

1.380.440.301.700.08

Cdpom

^-ci

1.2*:1*1

1.1•e!•el•el

1.2

^1.4•e!1.51.2

Coppm

103

138

10

14349

17

1211776

Crppm

15428489

14662

67101121118144

186206305218

80

Cuppm

2459

121113

139

155736

6240294735

Fe*K.

3.051.876.612.676.25

5.941.031.191.636.22

2.332.461.792.032.28

K16

1.550.400.641.031.78

0.640.460.990.801.16

1.651.971.001.352.14

Lappm

929251927

2378

2816

1216141817

Mg*

0.310.432.790.671.08

2.500.250.350.645.68

0.660.851.001.290.95

Mnppm

211341986561666

1079198379324796

346343233775146

Moppm

1311584

21011107

12111123

5

Na*

1.873.122.672.641.99

2.513.240.103.180.42

0.160.320.230.110.60

Nippm

88

34145

3010101728

2230212918

Pppm

434269937603

1739

800260226214550

77767415

1282350

Pbppm

126

151312

12106

1014

812131415

Sbppm

OOO

84

44

O^*3

O5

*3O12

Srppm

2729

12922474

1517743

10731

344741

22126

Ti•X,

0.310.080.590.321.10

0.550.110.100.250.39

0.230.310.190.210.36

V Wppm ppm

33 ^3 <5

206 646 ^

124 ^

180 ^19 ^25 ^31 ^76 5

53 *5117 ^44 ^

135 ^105 ^

Znppm

3646

1244567

109192629

112

5072378646

CanTech Laboratories, Inc.

Signed

Page 82: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

4 CanTech Laboratories Inc.Attention: Ed Friesen

GRQ MINING INC. #8 Lake Placid Rise S.E. Calgary, Alberta T2J5B5

Certificate of AnalysisWork Order: 97197

Date: September 29,1997

fF J 1 of 14200B 10 Street NE

Calgary Alberta

Canada T2E6K3

Tel (403) 250-1901

Fax(403) 250-8265

Sample ID

2 E13A 2 E13B 2 E29A 2 E29B 2 E37A 2E37B

A.A. Finish Gravimetric FinishAu Au Au Aug/t g/t g/t g/t

0.0570.1190.063

0.0040.009

0.137

191.2

CanTech Laboratories, Inc.

-^ert-

Certified

Page 83: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

CanTech Laboratories Inc.

(Page 1 of 1•ttCUB lOSiif*

G'

LL

09

1

fU

Ot—

•^

/" GRQ MWMG /A/C. #8 Lake Placid Rise Calgary, Alberta

l T2J 5B5

Sample fD

2E292E9B2E9A2E172E13

2E232E21A2E21B3E2-13E2-2

E242E2Prendible audit

S.E.

Aug*

3.4001.4950.0220.005

24.000

0.0300.0740.0330.0792.020

0.1650.200

199.700

Aggrt

1.40.20.7

0.21.2

1.30.20.41.01.3

88.74.8

20.8

\

J

Ptppb

OOOO00OO^

OO^OOOOOO

<30OOOO

Pdppb

OOOOOOOOOO

OOOOOOOO^*3Q<20^0

Attention: Ed Friesen

Certificate of Analysis ^raSi.Work Order: 98090

RhPpb

OO lOOOOOOOO

00OOOOOOOO

OOOO '

OO

U.

S

end

CanTech Laboratories, inc. Confidential Lab

Page 84: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

CLAIM # 1178692

LEG.END

* * * x \ GRANITOID, GRANIDIORITESAT THE AKiTWA MONOLITH

METAVOLCANICS LOWER WABIGOON

••^•^Ai^MS 3E27

3E22 BOULDER 3E23 BOULDER

CLAIM l 1149805

MAP 17A3

Page 85: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

x * x x l GRANITOID, GRANIDIORITES x x . i AT THE AKITWA MONOLITH

METAVOLCANICS LOWER WABIGOON

CLAIM l 1178692CLAIM # 1149805

CLAIM jP 1149804CLAIM 1178693

GUANO REEF

Page 86: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

CUM M 1178692CLAIM 1149805

CLAIM 1149804CLAIM 1178693

3E10 3E11 3E12 3E13

3E15 3E16 3E17 3E18 3E19

GRANITOID, GRANIDIORITESAT THE AKITWA MONOLITH

METAVOLCANICS LOWER WABIGOON

GOLDEN EAGLE PROSPECT

MAP 17C3

Page 87: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

well Name: L-CVU&- - AJc4 TWell Strip Log

Location LSD: SEC: TWP: RGE: W ME*1 !X4Unit: Unit: Block: NTS: Lat: Long:

Elevations Gr: KD: Total Depth: approx 50ft Spudded: 97-09-29 End Drilling: 97-10-3 Rig Relts/ise: Casing Depth Surf: Int: Hit: prod: Logs Run: CORE DRILLED AT 45 DEGREE ANGLE TO SURFACE

DRILL TIMES NOT RECORDED Sample Quality: AREAS OF POOR RECOVERY GORE. AJuTV\ b*J^ " "SEl . Geologist: DEBRA BRACKEN Date: 98-05-20

Depth Formation

Tops

i0.00

5.00ftrcfc

10.00

IS. 00feet

l1 20.00

f

ti25.00

i

1

30.00

35.00

ROP0 ——————————— 100...................................... 30o .................. 100

Gas Units %0 - - - - - - - - -100 . - . -. . . . . -. 100

-*;~:

T 3E [

T 3BI-S- ^

l

3El-(e

361-8 [

r

"3EV-10 1

361-11

Porosity Type

i^JD of coee-CWed fc

Excellent

^

PO)S

^ s

r-Lt5

•Ha

f

14

80.

Lithology

•^ "^ ^ ^ri — ~ ~^ ^' ^ ^,7r TT TT __ 7J

11 -^ '^ ^x /. - ^ v* v •^ — TT 7?

^*~ TV 7\ 7\

"~ ~ 7^ 71\y v ' v v T — TT A"~ ~ /\ 'v

^ ^ ^ M-/T ^ K ^~^ rr T KT TT 7^ —X "?T ^ "?T

TV ;T TT TT

^. J^ 7v /\

V' A T{ K"S^sS^w^

V ^' A 7 \ t "

K ;t "r; TT)4 ^ V, VX ^C K V.

x j. \f *- f v y -•^ ^ X ^T

TT Vr 7\ r;

TT TV X '~,-L *A y± K,^ T( K ^V 7V K "^• V X. XV •-

ys 7v /T xv

;r r; TT }4\' \/ v,' \t

9*rflL ^-f y.

v\**v*^X,*'^ -' '. **' .-^

^if'v7? 7s' ^s x\

TT 7S (T ^

i: )r j; VN, s/ ^x \f

75 K K A

r. r* r? ^**

i; XV TV ^

,; ,T ri A

4-1 rH

W

4

4-

4-

1-

'k~

*

"

Gl S

01cH

~

•a j iz

0 -tIU

in e

s

1

course

S

\

f tSRc^ fY\ip,;r\c\ Tirx-

X (Angularity

\

/ ! Sort ing

\

"s^,

-

s

\

v

/ iCore/DST

\

^

-

Description

IG:Surtace to 18ft. Intrusive qtz diorite:mottled white and medium gruy, ping * qtz gr 0.2 to 0.3nun, minor sericite, biotite, durite, tr opaquee(pyrite) . 2 inch medium grey, t grained, mafic zone present, with visible pyrite.

^ ASSA-y: ^O.OOS Q/ 1 Au.

—— r\ "bo f\*\ w ' ^ J

AssA\|^o .00 5 cj/t A-U

IG. Mafic: 18.01 to 28.5ift:mediura to medium dark grey, f grained, chlorite, minor hornblende nnd/or biotite, visible medium pyrte cubes scatted through out, small(2 in) quartz vi on let B present.

ft S^OvV *L O . OO'S rj / 1 1 ftu.

""ASSAV 40.005^ Au

- ASSAv/ 4. 0-005 A/; f)(^

— /-\Svj A y *~O-OO r-.c.\l l flu.' O

IG:28.51 to 35ft. Intrusive qtz diorite:mottled white to light grey to medium grey, predominantly plagioclase and quartz, 1 mm grain cize, minor sericite, biotite 4 chlorite, tr opaques(pyrite)

' " i ^*

U,.i1h irxhous* lOinKie fc"l\

\l) at

Z.

o;

C

"o

1

u

au

1

(N 4)

0) .-4it-

Si. 3

1

i'siu •s.

1—* 3

rH

e

Si 6

re rv N e ry\ s \ e* "\

Page 88: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Well Strip Logill Name: Ecu^U. UxUtf. ' AJe-f Tslond - TioVde Tr.e*-X.H O-o*- '

vocation LSD: SEC: TWP : RGE : W MKlf 17-IUnit: Onit: Block: NTS: Lat: Long:

j Elevations Gr: KD: Total Depth: approx 50ft Spudded: 97-09-29 End Drilling: 97-10-3 Rig Release: Casing Depth Surf: Int: Hit: prod: Logs Run: CORE DRILLED AT 45 DEGREE ANGLE TO SURFACE

DRILL TIMES NOT RECORDED - Sample Quality: AREAS OF POOR RECOVERY GORE. AOurYvbeJ^ : ~^JE.\ . Gcologi-Jt: DEDRA BRACKEN Date: 98-05-20

| Depth Formation

Tops

j1 . -l 0.00

1j1

5.00 f**t

10.00F*tt

15.00feet

1 20.00 i Pu*

i ————————i

!i i

25.00Ftj^

j

i

' JO. 00^

t

i

35.00

ROP0 ——————————— jo0 .................................... 300 •••--••--••••-••100

Gas Units t0 . - - — - - - - - lo0 . - - . . . . -... loo

bURfac.^ .l "

5e.i-i

... . .. ,. . .........s

3Ei-^ l

....'3B-i-"|

3EI-4 |

3E1-S |

361-fc f L

"Se^-T-. i3EI-8 f

SEi-V 1

.BEX-iO 1

....

361-11 ..i . . . , . ...

nsiD.of coe

Porosity Tvpe

Js

Excellent

Po}S

•o o3

r-itl

P•HC Ih

^

^ iU

Lithology

"7v? /v 'v Tt

x^ "^V ~ ~V x * x * .. ,.T; T TT nr7 *' s/ V ^^-F--^-VT 7\" 7y ^v •^ T"/ — vx ^y ~ ~ .T ~\\ S * S \f \'•7; TT TT n—— K — 75

ST T; n nS \* V V

T - 7T K-** */ ** f \ *~ - ~T\ ^ ^v^ i/ y MA A 'V '\*/ N^ *"/ V/^ TV ^ ^v/ --/- -*./ Vw TV T "*x v -r */T T ?\ —\f N/ V, */

^ TT "f nj ', - i \iT 7f TT nt \* **/ \ ^

^v 7\ 7v /\\J \S \f \/^ ~^ s\ /\

^c^^TT ^ ~ TT\/ \/ v' *' ^\ ?t ~ TT*/ N' S/ \*— TX r* —V* \ f * * \ '

A ~ 7\ TI

~ ,r\ TT ,TNH, \ y v / s f ^ X -T /T\' V* V,' \ Tt r\ T\ TT

\ * t/ * * \ ' ^T T\ ^ \ > \\* k* N/ V '

TV 7x 7\ *N^ 7\ K ^V* V* V* \/

*v /* y s '^

TV 7v /T /^

~ ?\ TT TTx' N/ N' \/

^|^fe:l^fevJ^X--;Xcs;x? - ^x^*j^i *x

Cv-.Xj^ V'XXN^^-X-:-^-- .^•:--^'---.-;-tofct:V".v\--yv--;x ^^\-^;-'::p^sfv- x'. ' . ^. :- - V . '^;-:-:x;^ ^'•v-;^^c^W:^W'Z3ZZZ&X--'•gZQ': ' -'

~ JX . \ '"^"7 t~"'" "*"5 ** '

*^ '\ si s\

TT T; /t ~\

f* s* f\ .*V* v * ^^ v/

n -^ -x. -rv..

TV r\ ,~V '^

, ji^^t. _ ti _ 5\..H k.. ..r*.. r*.\ ^ \/ x, \^Bw.Ts ,:Z*...ri. .

^t -V \' \/7s K *v '^

:~ .. .E _ X4.v- yt y; ;v

V J V v ' ^/ i* /T TV ^

u.-H .-1 U)

4

t

4^

i-

t-

4-

4

*-

l-

t-- :- r^i-

Gl S

-..

-ai z

0c.~4^4

medium " b

-

course

S

\

Angularity

St

Sy

-

Sorting

X,

\

•V*.

-

"

-x

Framework n

N

V

^

Core/DST

\

\

x

Description

IG:Surtace to 18ft. Intrusive qtz diorite:mottled white and medium gruy, ping * qLz gr 0.2 to 0.3mm, minor sericite, biotite, durite, tr opnques(pyrite) . 2 inch medium grey, t grained, mafic zone present, with visible pyrite.

^ASSA^: *0,©05 ^/t Pu.

ASSA-/ O.OO^Cj/t Arv*

.

.

— AssA^o.oos c) /t /Vu

IG.Mafic:18.01 to 28 .51 f t :medium to medium dark grey, f grained, chlorite, minor hornblende and/or biotite, visible medium pyrte cubes scotted throuqh out, small(2 in) quartz vionlets present.

SN frS,^Y ^ C'-'P^f"-' O ' ' ' f U~

^AS6AV 40.005 S/t^w

— ASSftY O.o\4 a/f Au.

-A5SAV/ ^.o.cxj.5 -.y; ncv.•*j

AiSA^ o, oo'j.o./t flu*J

/.\COAV AO-OOO q/ J P\u.' **j

IG:28.51 to 3Sft.Intruoive qtz diorite:mottled white to light grey to medium grey, predominantly plagioclase and quartz, 1 mm griiin size, minor sericite, biotite i chlorite, tr opaques (pyrite)

x. "ASS&y 4 O.OO'O^/L' AM.

_ /Y^AV, ^o.^aSs/'^r~ ~— — — "- " ' "

vc* xJz.ta- t

2 X C

V-

ldvn H

53u J u4a^-t—4ax

^i9N 0

U3:iai"

1

1 '

1

1sI1

J. 4. 1" 1'-

Uey1

Page 89: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Well Strip LogWell Name: SAGLE LARK PRENDILOE ISLAND CORE (EARL'S GOSSAN) -

Location LSD; SEC: TUP: ROE: W HER174Unit: Unit. Block: NTS:Lat: Long t

Elevations Gr: KD: Total Depth: SSftSpudded: 97-09-23 End Drilling: 97-10-3 Rig Release:Casing Depth Surf: Int: Int: Prod:LOIJS Run: CORE DRILLED AT 45 DEGREE ANGLE TO SURFACF.

DRILL TIMES NOT RECORDEDSample Quality: CORED: 55ft RECOVERED: -15ft Geologist: DEORA ORACKEN Date: 93-05-21

Page 90: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Axf

V

f

0Li CanTech Laboratories Inc.r

GKQ MINING INC. "\#8 Lake Placid Rise S.E. Calgary, AlbertaT2J 585 ,

Attention: Ed Friesen

Certificate of AnalysisWork Order: 97208

Date: October 23, 1997

A.A. Finish Gravimetric Finish A.A. Finish Gravimetric

V

Sample ID Au Au Aug/t g/t g/t

3 E1-1 -cO.OOS -cO.OOS3 E1-2 0.0053 E1-3 -eO.OOS3 E1-4 -:0.0053 E1-5 -cO.OOS

3 E1-6 0.0143 E1-7 -cO.OOS3 E1-8 0.0053 E1-9 "CO.OOS3 EMO -c0.005

3E1-11 <0.0053 E2-1 -cO.OOS3E2-2 ^.0053 E2-3 0.0053 E2-4 O.OOS

3E2-5 *:0.0053E2-6 <0.0053 E2-7 0.0053E2-8 0.019 0.0243 E2-9 0.005

3 E2-10 tO.OOS3E2-11 -eO.OOS3E2-12 ^.0053E2-13 0.0453 E2-14 0.013

Au Sample ID Au Au Aug/t g/t g/t g/t

3 E2-15 0.0083 E2-16 0.0733 E2-17 0.0443 E2-18 0.0213 E2-19 0.013

3 E2-20 ^.0053 E2-21 *:0.005

CanTech Laboraties, Inc.

Page 1 of 142008-lOSireeiNE

Calgary. Alberta

Canada T2E 6K3

Tel (403) 250- 1901

Fax (403) 250-8265

FinishAug/t

/liJLfiCertified/^ N\M

t

Page 91: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

c?CL

M

(M

^ Laboratories Inc.1 of 1

-Attentiwu-Ed-F-desen-Calgaiy.AToeflj

^TOSBSp^wCertificate of Analysis

Wort: Order. 97216A Date: October 31.1997

Cauda :Tel (W31 250-1901

Sample^ Au Ati Au Ali; Sample ! D ,, .-AM:....'W -ff

:0.216-

0.009~

0,038 0.032 "6^20"

0.135

o — o: li. —

[0007

c- cr

—. - aP-- -20- _ ----~ : -

6- . 21

3t- 24 S- .r

^ovpgs"" ^-0^013~-

!':I: O.Q22. 0.005

^.005

Page 92: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

^L CanTech Laboratories Inc.

GRQ MINING INC.#8 Lake Placid Rise S.E. Calgary, Alberta T2J 5B5

-f f*.Digestion, i \j

Sample10

3E1-13E1-23E1-33E1-43E1-5

3E1-63E1-73E1-83E1-93E1-10

3E1-113E2-13E2-23E2-33E2-4

3E2-53E2-63E2-73E2-83E2-9

3E2-103E2-113E2-123E2-133E2-14

Agppm

•s.50.70.60.9•s.5

0.7^5^5•s.5•s.5

0.6•s.5•:.5*.5•s.5

*.5*.5^5•s.5•s.5

1.00.5<S1.10.6

TAL ( Pet

Al As•* ppm

6.86 ^7.03 t57.55 -sS7.56 ^7.53 ^

7.15 ^8.52 *59.36 -sS6.54 -cS7.53 -s5

6.29 ^6.10 -sS6.06 ^7.05 ^7.32 ^

7.31 ^7.34 *57.27 tS7.34 -sS6.67 *5

6.96 -sS7.32 97.13 ^7.39 ^6.24 ^

J

Attention: Ed Friesen

Certificate of AnalysisDate: November 8, 1*997

Work Order: 97216B

Page 1 of 342UOR !j:;]!.;,:lNi

Cilltl'HV- -*'l!'.WI,1

Cdii.'iua r:^[ 0",3Tel (41)3) Ka i-'OI

Fax M03! 250 3265

chloiiC, Mi b ii., HydiuiluoiiC Altdck)

Bppm

18141089

667^

7

76975

*S^•*5^j*5

•sS^^KS

^

Bappm

35796

318268213

8592

109131182

278289362399430

416364345

45293

232310315389314

Be Bippm ppm

1.0 *50.9 ^1.1 ^1.1 -sS1.1 •sS

1.1 ^1.3 *51.5 -sS1.1 ^1.1 -eS

0.9 ^0.9 ^1.0 ^1.1 -sS1.1 *5

1.1 ^1.0 *51.1 -eS1.1 ^1.0 -sS

0.9 ^1.0 -sS1.0 ^1.1 -sS0.9 *5

Ca%

2.323.352.541.511.52

3.182.563.935.162.40

2.700.901.131.380.63

0.800.960.580.420.62

0.400.440.551.861.40

Cd Co Crppm ppm ppm

<1 13 137*:1 17 94<1 14 120•d 15 92•ei 15 94

•:1 28 26•si 31 35^ 28 26•r.1 27 57^ 14 100

•51 12 104•:1 7 177•51 6 160•si 7 143•d 7 156

•si 8 184•s! 7 154•si 8 132•si 44 156^ 15 126

•:1 14 126•:1 15 106*1 6 122•:1 10 119•si 13 130

Cuppm

4284241817

32350

1202216

3718101841

211128

578112

798227

637314

Fe*

3.353.903.613.563.86

7.297.717.667.074.11

3.132.662.282.782.73

2.722.992.714.422.56

2.782.512.372.432.71

K•X,

1.120.421.420.860.75

0.470.420.630.770.70

1.121.191.341.451.68

1.651.461.422.601.28

1.051.191.261.611.44

Lappm

2426242223

2933402524

2222252427

2028251715

1616222112

Mg•fc

1.011.051.091.151.24

2.202.312.011.921.11

0.890.640.520.620.60

0.640.670.630.750.62

0.630.570.530.600.65

Mnppm

514641564648726

1507147913491690779

576353279375303

341371313299278

292252256365326

Moppm

11101188

6777

10

89

101413

1513121417

1712121211

Na•st

2.643.262.653.803.96

2.693.323.441.793.28

2.302.412.272.963.12

2.963.113.311.783.21

3.453.673.403.182.71

Nippm

3019333133

2330291932

3020181916

2121223120

1919142217

Pppm

177890365532384

2364272027502460276

431280176278*2

4255162348337

17813019941

226

Pbppm

2022171416

2428282216

2017131513

1113131312

1513131516

Sbppm

•s3•s3O4

O

*315O00

ooo00

o*3•s3•S3•C3

O^.3OO

Srppm

1922372099369

5592

246149200

176139159185

. 124

12215112143

134

114126129171148

Ti*

0.370.650.390.400.44

1.161.451.730.950.40

0.350.300.250.280.28

0.310.310.300.360.30

0.280.260.260.270.31

VPpm

6096676466

13414720213267

6536303535

3738374336

3133373028

Wppm

^13•eS

8*s

121312

7*5

^*s*s•sS•S

^6

•sS

5•sS

^5^^.56

•5

Znppm

5051525562

11311710610553

4241404850

555186

13575

8562566960

Certified:

Page 93: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

^cL CanTech Laboratories

f GRQ MINING INC.#8 Lake Placid RiseCalgary, Alberta

^ T2J 5B5

x- — Digestion: TOTAL

Sample Ag AlID ppm 'fc

3E2-15 0.5 6.283E2-16 1.2 5.883E2-17 1.6 6.803E2-18 0.6 7.533E2-19 0.6 7.31

3E2-20 *:.5 7.303E2-21 *.5 7.763E.1 *.5 6.453E.2 -e.5 6.923E.3 -:.5 7.75

3E.4 0.6 6.853E.5 -:.5 2.143E.6 -:.5 5.553E.7 -:.5 5.823E.8 <.5 6.67

3E.9 -e.5 7.063E.10 0.5 7.293E.11 -e.5 5.643E.12 8.3 6.353E.13 1.8 7.32

3E.14 -e.5 7.613E.15 *:.5 7.263E.16 *:.5 6.793E.17 t.5 7.183E.18 <.5 7.36

S.E.

( Perchloric, Nitric,

As B Ba Beppm ppm ppm ppm

^ ^ 259 0.8^ ^ 233 0.9^ <5 263 1.1*5 ^ 377 1.2^ 8 293 1.1

•S ^ 316 1.2^ 5 321 1.2^ ^ 315 1.1^ 7 407 1.3^ ^ 547 1.5

^ ^ 458 1.1^ ^ 149 -e.56 *S 450 1.1

*5 *5 232 0.8^ ^ 565 1.2

"S *5 282 0.7^ ^ 258 0.7*5 ^ 160 0.7^ ^ 58 0.8^ ^ 288 0.7

^ ^ 398 0.9*S *S 455 1.0^ *5 166 0.9^ ^ 357 0.9^ *S 346 0.9

Inc.

\

)

Attention: Ed Friesen

Certificate of AnalysisDate: November 8, t997

Work Order: 9721 68

Page 2-i/'i'JB '

c,.''!,)--,- AC,!H.i;Ja f."

iof 3 ii jlrwl N E i

!1 6K3 j

i- 1 '-ifj;'. lw ;'v'ui jr At. '-4'.;,-.. JjU-at'OO

Hydrofluoric Attack) ———————————————————————————————————————————————————— -v

Bi Ca Cd Co Cr Cu Fe Kppm % ppm ppm ppm ppm "* 'k

-G 1.15 t1 11 120 137^ 0.62 <1 10 142 722^ 1.78 -si 10 174 935^ 1.93 *:1 9 164 356^ 1.86 <1 9 190 500

*5 1.95 <1 6 158 39^ 1.86 <1 9 149 22^ 2.30 -:1 15 177 29^ 2.44 <1 12 154 28^ 2.08 <1 8 137 31

^ 0.58 -:1 3 170 20^ 0.52 <1 6 380 53^ 0.81 <1 9 197 19^ 0.30 <1 5 198 31^ 0.54 <1 12 352 26

^ 0.62 t1 7 161 206•S 0.15 K1 8 227 656^ O.14 -d 15 233 372^ 0.11 1.7 24 297 4170^ 0.13 *:1 5 341 484

^ 0.25 -ei 12 282 233*S 0.24 <1 6 256 298^ 0.22 *:1 9 214 476^ 0.24 .:1 21 209 63^ 0.31 -:1 13 252 136

2.20 1.222.17 1.011.95 1.162.40 1.562.53 1.42

2.50 1.403.O4 1.623.97 1.682.86 2.082.24 2.29

1.53 1.702.54 0.702.36 2.412.63 1 .013.23 2.98

2.65 1.412.50 1.228.94 1.894.50 1.853.72 1.38

3.05 1.823.12 2.183.04 1.922.88 1.793.20 1.70

La Mgppm *

12 0.4818 0.5111 0.4817 0.6514 0.63

29 0.5730 0.6827 1.2320 0.8516 0.59

32 0.328 0.81

12 0.689 0.53

10 0.85

11 0.5010 0.419 1.186 0.749 0.42

9 0.6311 0.6713 0.6112 0.6813 0.69

Mnppm

248271330390396

390444696566418

234572381258489

328300606367294

325267251332327

Mo Na Ni P Pb Sbppm 'K ppm ppm ppm ppm

11 3.02 14 141 17 O12 2.88 16 267 17 ^13 3.28 17 ^ 16 ^13 3.34 18 3 13 O13 3.31 19 119 18 0

11 3.22 17 ^ 19 *314 3.64 20 175 20 O13 1.97 40 337 15 *313 2.08 29 334 19 *315 1.91 19 178 16 O

12 3.19 12 ^ 9 O21 0.18 17 389 3 O15 0.82 24 175 13 O16 2.57 11 34 17 O23 0.76 33 222 11 O

16 3.47 13 124 9 O19 3.81 15 ^ 11 O21 0.60 11 471 19 *327 1.66 19 ^ 21 O24 3.56 11 230 13 O

23 2.99 18 406 15 O20 2.14 14 136 16 O18 2.27 15 379 13 ^17 2.82 14 93 13 ^21 2.95 16 377 15 O

Sr Tippm St

145 0.19129 0.28148 0.22171 0.29163 0.30

173 0.26159 0.3086 0.4893 0.3772 0.30

98 0.1714 0.0641 0.2592 0.2437 0.33

50 0.2940 0.3035 0.2322 0.2935 0.33

59 0.3151 0.3050 0.2548 0.2863 0.33

M Wppm ppm

19 ^29 *S22 "531 ^35 ^

34 ^39 ^79 665 ^52 12

17 ^33 ^47 534 ^59 ^

32 ^30 ^38 ^36 527 *S

34 *537 ^33 -333 ^33 ^

4Certified:^

V n

Znppm

4474 i75 i61 |67 i

46 |53 j77 i5755 l

l 39 j92 ! f59 i46 |70 j

j8779

149300

69

8972808295

wL

lfl

f

rr J

Page 94: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

J.y&M CanTech Laboratories Inc.

f GRQ MINING INC. #8 Lake Placid Rise Calgary, Alberta

^ T2J 5B5

x- Digestion: IUIML.

SampleID

3E.193E.203E.213E.223E.23

3E.243E.253E.263E.273E.28

3E.293E.303E.313E.323E.33

3E.343E.353E.36A3E.36B3E.36C

3E.3603E.36E3E.36F

Ag Alppm *

•c.S 6.06^5 6.29*:.S 5.33^5 0.22•:.5 0.19

•:.5 5.44*.5 4.61•c.5 0.25•s.5 5.98•e.5 6.10

<.5 6.50<.5 8.76*.5 7.31^5 6.26<.5 6.34

1.4 6.19t.5 7.36<.5 9.41•e.5 9.48<.5 7.22

<.5 7.33<.5 7.32<.5 6.99

S.E.

Attention: Ed Friesen

Certificate of AnalysisDate: November 8, 1"997

Work Order: 9721 68

Page 3 of 34?OOB H) './.;-\ '-i t

'i.iiigjiv ''toia

C.'HMiia i?? 6f-3

Tel M03i 250- 1901

F.IX 1403; 250-8265

Pet chloric, Nitriu, Hydrofluoric Attack) ———————————————————————————————————————————————————— -

As Bppm ppm

^ *57 ^^ ^46 *539 ^

17 ^^ ^

150 ^15 ^

7 -S

*5 *513 ^^ *5^ *55 *5

^ <5^ ^^ ^*5 "S*5 *5

"5 *S<5 ^5•S ^

Bappm

256306681318

7031932245

406603467457339

638436436328438

344878619

Be Bippm ppm

0.8 ^0.8 ^0.7 -S0.6 ^0.7 ^

1.4 *5•e.5 ^1.2 ^0.8 ^0.8 ^

1.1 ^1.0 ^1.1 ^0.9 ^1.0 ^

0.8 ^1.2 *S15 *S1.6 ^1.0 *5

0.9 ^1.1 *51.1 "S

Ca Cd Co Cr•it ppm ppm ppm

0.260.312.010.200.05

3.180.302.365.832.28

0.070.580.340.530.62

0.201.642.741.950.15

0.160.600.94

•el 11 219"l 7 205•d 30 263

2.9 45 1595.6 29 137

^ 6 111•:1 8 362

2.1 11 66•M 3 243t1 30 155

-:1 2 309*i 11 171•O 4 152<1 7 227•"1 10 271

*1 4 167^ 10 265•0 41 48<1 41 49•0 8 280

<1 6 207"1 4 204^ 8 181

Cuppm

797525

277294

4112692724

46

211278

15116262815

81212

Fe*,

2.852.936.78

33.5034.81

17.1110.3227.7110.8711.67

1.352.002.352.262.65

3.152809.679.752.84

1.901.832.62

K*

1.781.340.20•^.010.05

0.040.060.040.040.03

2.122.101.931.791.33

1.911.702.011.221.87

1.462.651.69

Lappm

511171616

1917172120

2521322313

832624725

301926

Mg1b

0.670.662.060.930.66

3.482.343.140.442.65

0.680.340.570.410.55

0.550.632.17Z330.50

0.350.380.44

Mnppm

263273

119984662059

331610913598915746102

2251062

231411315

189416

13202025

363

389297

2442

Moppm

1917121415

1121111613

1810131620

1320119

18

151513

Na*

1.722.401.440.030.06

0.130.050.090.080.17

1.392.802.282.432.50

1.772.942.723.452.84

3.811.973.14

Nippm

1613615653

1735281237

1041111621

824313319

151317

Pppm

197312665555347

276212

1166396399

K2304204

15217

413171

22552885

89

76^

224

Pbppm

1516215766

2919543031

1215151316

1620393413

131317

Sbppm

^^*32928

63

26o13

OO^•e30

ooB8

O

0oo

Srppm

526444

13

6021

7291

87

29138633786

5118529311749

9676

133

Ti*

0.250.230.610.010.01

0.360.180.040.280.93

0.060.220.300.200.26

0.300.291.541.700.27

0.180.180.21

Vppm

3130

15526

45304

81288

456392730

3639

229195X

272726

Wppm

*5^111411

8•eS22•523

^.cS

^.5

6

^5^5107

•S

^5c5^5

Znppm

72708292

116

11315710230

360

33514131

102

3551

14215832

262139

CanTech Laboratories, Inc.

Page 95: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

ACCURASSAY LABORATORIES(A DIVISION OF ASSAY LABORATORY SERVICES INC.)

3 tod ut trial Drtvt, Box 420. Kirk lin d Ltk*. ON P2N 3J1 T*l:(705 587 3361) Fax:(705) 508 8308

MINERAL AS SAVERS ENVIRONMENTAL CHEMISTS •/•o if. 1070 Lithium Dr., Thunder 8•y. ON P7B OG3

T*I:(S07)023 0448 F*x:(fl07) 823 0820 Uirnes RtidRd.. P.O. Box 255. Timmln*. ON P4N 7E2

T.I/F.x (705)268 37M

OD

LUwto: Date:

9741033 12/05/97

Client: GRQ Mining Inc8 Lake Placid Rise Calgary T2J 585

CERTIFICATE OF ANALYSIS

P.O.*

Accurassay Sample*

123456789

10

Client Sample* Bulk 3E1 Bulk 3E2 Bulk 3E3 Bulk3E4 Bulk 3E5 Bulk 3E6 Buik3E7 Bulk 3EB Bulk 3E9 Bulk 3E10

Weight ofSample (g)

956.2806.5975.2990.6925.3

1005.2927

953.5996.11007

Leach Assay ppm

O O

3.17 0.21 0.24 0.16 0.49 0.17 0.2

0.09

Residue Assay, ppm 0.005 O.OOS

0.1880.014

O.OOS O.OOS

0.006 O.OOS •eO.OOS

0.011

Total Gold Assayppm

O O

3.3580.2240.240.16

0.4960.17

0.20.101

ozfT O O

0.098 0.007 0.007 0.005 0.014 0.005 0.006 0.003

tt Extraction by Cyanide

ERRERR94.4

93.75100100

98.8100100

89.1

Signed:

Page 96: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

GIQ."

COro •.r'S

CanTcch Laboratories Inc.

~GRQ~MINING /A/er #8 Lake Placid Rise S.E. Calgary. Alberta T2J 5B5

( Page 1 of 1•ILW H) S*w

Attention: Ed Friesen

Certificate of AnalysisWork Order: 98090

f,mKMas5

Sample ID

2E292E9B2E9A2E172E13

2E232E21A2E21B3E2-13E2-2

E242E2Prendible audit

Aug*

3.4001.4950.0220.005

24.000

0.0300.0740.0330.0792.020

0.1850200

199.700

Aggrt

1.4^.20.7

O.21.2

1.30.20.41.01.3

88.74.8

20.8

Ptppb

OO00OOOOoo

oooooooooo

00oooo

Pdppb

^0^0^0^0<20

<20^0<20<20<20

<20OO^0

Rhppb

oo i.oooooooo

oooo00oooo

oooo00

o: u. end

ITfi:

CanTech Laboratories, inc. Ccrfidenfialo-/ ? uiiard MJMV; '

Lab ManiKirf

Page 97: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

4.0 Work Assessment Claim

19

Page 98: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Eagle Lake, Ontario Work Assessment Report

Claim Numbers: 1178693 1149804 1178692 1149805

Three (3) expeditions to Eagle Lake, Ontario were organised in 1997 as follows:

Reference Name Dates of Field Work

Eagle Lake -1 June 5 to 9, 1997

Eagle Lake - 2 September 4 to 8,1997

Eagle Lake - 3 September 26 to October 14,1997

Work activities included the following:

(1 ) surface exploration cAv sample collection

(2) under water sample collection (scuba) on geological features which continued beyond the shoreline.

( 3) diamond drilling - two (2 ) holes were drilled as follows:

(a) Hole No. 1 on Net Island adjacent to Tinkle Trench

( b) Hole No. 2 on Prendible Island through Earl's Gosson

Refer to attached documents ( attached)

(i)' Summary of Labour and Expences, Eagle Lake. Ontario Claims # 1178693,1149804,1178692, 1149805 ".

(ii) Core log sheet for Drill Hole No. 1

(iii) Core log sheet for Drill Hole No. 2

Page 99: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

GRQ mining Inc# 8 Lake Placid Rise S.E.Calgary, Alberta T2J 5B5

Summary of Labour and Expences Eagle Lake, Ontario Claims#1178693, 1149804,1178692, 1149805

20-May-98

Nam*

EdFriesen

Rudy Friesen

Deb Bracken

Ken Mckinnon

Joe Harris

Andy Davison

Art Murdy

Doug Van Veen

Andrew Chipping

Karen Ahola

Dave Ahola

Sharon Friesen

Earl Hanson

PoiitJon

Exploration Manager

worker

geologist

worker

scuba diver

scuba diver

geologist

worker

worker

worker

worker

worker

prospector

Expedition No.

eagle lake -1 eagle lake -2 eagle lake -3

eagle lake -3

eagle lake -2 eagle lake -3

eagle lake -3

eagle lake -3

eagle lake -3

eagle lake -3

eagle lake -3

eagle lake -3

eagle lake -1 eagle lake -2 eagle lake -3

eagle lake -3

eagle lake -3

eagle lake -1 eagle lake -2 eagle lake -3

Field Day*

5 5 16

13

5 8

10

8

8

6

16

12

0 0 0

8

2

5 510

Preperation Days

24 10

3

14

1

1

1

2

1

1 1 1

1

0

0 0 0

Total

7 9

26

16

6 12

10

9

9

7

18

13

1 11

9

2

5 510

Day Rate

5350.00 9350.00 5350.00

5200.00

1350.00 5350.00

5200.00

5250.00

5250.00

5350.00

5200.00

5200.00

5200.00 5200.00 5200.00

5200.00

5200.00

5200.00 5200.00 5200.00

FieldS

51.750.00 51,750.00 55,600.00

52.600.00

51.750.00 52.800.00

52.000.00

52.000.00

52.000.00

52,100.00

53,200.00

52.400.00

50.00 50.00 50.00

51.600.00

5400.00

51.000.00 51.000.00 52.000.00

Office t

5700.00 51.400.00 53,500.00

5600.00

5350.00 51.400.00

50.00

5250.00

5250.00

5350.00

5400.00

5200.00

5200.00 5200.00 5200.00

5200.00

50.00

50.00 50.00 50.00

Total 535,950.00 (a) 110,200.00 (b)

Page 1 of 2

Page 100: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

GRQ mining Inc# 8 Lake Placid Rise S.E.Calgary, Alberta T2J 5B5

diamond drill

food

lodging

scuba equipment

lab analysis

eagle lake -3

eagle lake -1 eagle lake -2 eagle lake -3

eagle lake -1 eagle lake -2 eagle lake -3

eagle lake -1

eagle lake -2

eagle lake -3

26 meters

Cantech Labs

Cantech Labs

Cantech Labs Accurassay Labs

travel expences in Ontario eagle lake -1

eagle take -2

eagle lake -3

eagle lake -3

car

car

van

plane ticket

Summary of Labour and Expences Eagle Lake, Ontario ClaimsIK 1178693, 1149804, 1178692,1149805

20-May-BB

(60.00 l meter

Total

Total ( a ) * ( b ) -t ( c ) 561,970.19

91.560.00

5250.00included in lodging

93,000.00

5250.0091,034.6092,244.00

91,000.00

9922.77

91,419.68

92,405.799433.35

9150.00

9150.00

9500.00

9500.00

915,820.19 ( c )

Note: dates for the expeditions are as follows:

eagle lake -1 eagle lake -2 eagle lake -3

June 5 to 9.1997 Sept. 4 to 8.1997 Sept. 22 to Oct. 14.1997

Page 2 of 2

Page 101: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

Statement of Qualifications - Ed Friesen BSc. EE, P. En g.

I, Edward John Friesen, undersigned, certify that:

1) I am a graduate of the University of Manitoba, Winnipeg, Manitoba.

2) I hold the degree of BSc. Electrical Engineering

3) I am registered as a Professional Engineer in the Province of Alberta

4) My formal education is Electrical Engineering. My knowledge of geology is through self-study. I regularly consult with graduate geologists on technical geological issues.

5) The data presented in this report consists of

- description of the diamond drilling program - by Ed Friesen BSc. EE, P.Eng.- lab analysis of samples submitted - by CanTech Laboratories Inc- drill core log - by Debra A. Bracken Bsc. Geol.

6) I am President, Director and a major shareholder, of GRQ Mining Inc.

Ed J. Friesen BSc EE, P.Eng.8 Lake Placid Rise S.E.

Calgary, Alberta T2J 5B5September 26, 1998

20

Page 102: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

6.0 Statement of Qualifications - Debra Bracken. BSc. Geol.

I, Debra Ann Bracken, undersigned, certify that:

1) I am a graduate of the Brock University, St. Catherines, Ontario.

2) I hold the degree of BSc. Geology

3) I am a practicing geologist, presently employed in the oil and gas industry in Alberta. I have previously worked during my undergraduate years in mineral exploration.

4) I am a Director and a shareholder of GRQ Mining Inc.

Debra A. Bracken BSc. Geol.3812-12 Street S.W.

Calgary, Alberta T2T 3P2September 26, 1998

21

Page 103: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

010 P03

itarioSS Declaration of AMMwmnt Worfc P*rfemwd on Crown Lands

mflon M(0 (T lv Mi*ig Ad. UntfVMtOn l rflw MMng ABl t* MHiMbn it l cantin* *lh t* mMm at* MM*. QuiiliM ***U til* g annan itiouM lx

. m aas.

41009NW2003 2.18524 GARNET 9000241.

1 ReNun*"

rihoMarf,*) (Attach a Bat If nicienry)

INC

H A mss o nJ

On

Ctert Hunter

c*tr"*1"*1'y i// ^ 70"

z. Type of work performed. Qnfy regional survey* and prospecting work are alowed on Crown Lands before recording.For work performed after recording a claim or on other mining lande, use form 0241.

Office Use — . A ^CommpdByiow*vaiueo7 7 , x ^^ Work CMmrt 6 A 4 W

/* /Of,^ Nr ftS* (j**NTSMebrcnoe

Mining OvMon

DlUrict

- complete and anaoh a Stat*mant of Costs, rorm 0212;- provide a map thowlno conliginus mining land* Vwt ara linked tar assigning work;- Inchida two copies of your technical rtport;- provtd* proper node* lo turfaoe rights hokten befori •Urtlng work.

l. Person or companies who prepared Ae technical report (Attaoh a Dst If necessary)rii/n*

5 L it fee 5t

SE

/to&ac

4. certification tay Recorded Holder or Agent

HAT ^ 5 USD

FwNunMr

., do hereby certify that l nave personal knowledge of the facts set forth inin* Declaration of Assessment Work having caused the work to be performed or witnessed tfte same during Of ifler ftsrnmfiininn in1 inttirhrrl nfmjIrnnnlrilQi!^nimmrrtrrr*fi^tnrrSignMuRolRvMrdedHaUtr ^

———S

PL Aa li P/5S S"i?

RECEIVEDMAY 2?

GEOSCIENCE ASSESSMENT OFFJCF

MflY 29 '98 11=28 PflGE.03

Page 104: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

w: s ** wit- eie P82nw tt Menormeo MI Crown Lands hat are i

•air., .a u4 claimed at100* of As value (Mate Me amount to oofem* V betow). If work is performed on Crown lends a* .:0t *nv-JosW wMhin i sobserjuenQy recorded daJm. l can be claimed at 28* of R* value (Matt tt* amount in column l ^to^Woitunofily be (stlgried to daim* that ara contiguous lo r^^ work was performed. A map showing the contiguous Bnk must accompany this form.

, do hereby certify that the above work credits are eligible unde subsection 7 (1) of the Assessment Work Regulation e/M for assignment to contiguous claims or for application to the claim

c. instruction for cutting back credit* Out ar* not approved.

Some of the credits claimed in this declaration may b* em back. Please cheek (O In the boxes betow to show how you wish lo priorflire the deletion ofereoTU:)( 1. Credits ara M be cut beck from the Bank first, followed by option 2 or 3 or 4 as indicated.Q 2. CWdnt are lobe cu* 0.x* suwtlfxi with the etatrns Wed (art. working backw^a 3. Credtoaretobe^becke^jaBywerBUctairtwBstedinthtodedaratiortiorO 4. credit* are lo be cut back as prioritized on the attached appendix or as follows (describe):

Note: if you nave not indicated how your credits are to be deleted, credits will be cut back from the Bank first, followed by option number 2 li necessary.

For Office Use Only _____________

RECEIVEDO

iEOSCIENCE ASSESSMENT OFFICE~*~* '- ^ — .-j— - _

** TOTflL PftGE.05 **

Page 105: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

GRQ mining Inc#8 Lake Placid Rise S.E.Calgary, Alberta T2J 5B5

Summary of Labour and Expences Eagle Lake, Ontario Claims#1178693,1149804,1178692,1149806

204tay-98

Name

Ed Friesen

Rudy Friesen

Deb Bracken

Ken Mckinnon

Joe Harris

Andy Davison

ArtMurdy

Doug Van Veen

Andrew Chipping

Karen Ahota

Dave Ahota

Sharon Friesen

Earl Hanson

33|— mi o*" TTll10 1—— ||to tjiGO ^^1

Position

ExplorationManager

worker

geologist

worker

scuba diver

scuba diver

geologist

worker

worker

worker

worker

worker

prospector

Oi S1 C/)1 O ~TT\ — "^Li ?. s\-nrn -^ ro

v -~ '^ ^' C-J1

f |N

Expedition No.

eagle take -1eagle take -2eagle take -3

eagle take -3

eagle take -2eagle lake -3

eagle lake -3

eagle take -3

eagle take -3

eagle take -3

eagle take -3

eagle take -3

eagle take -1eagle take -2eagle take -3

eagle take -3

eagle take -3

eagle take -1eagle take -2eagle lake -3

;•r

\ t;O'.

dimi

FieldDays

5516

13

58

10

8

8

6

16

12

000

8

2

5510

PreparationDays

2410

3

14

1

1

1

. 2

1

111

1

0

000

Total

7926

16

612

10

9

9

7

18

13

111

9

2

5510

Day Rate

5350.005350.005350.00

5200.00

5350.005350.00

5200.00

5250.00

5250.00

5350.00

5200.00

5200.00

5200.005200.005200.00

5200.00

5200.00

5200.005200.005200.00

Total

FieldS

51,750.0051.750.0055.600.00

52,600.00

51.750.0052.800.00

52.000.00

52.000.00

52,000.00

52.100.00

53,200.00

52.400.00

50.0050.0050.00

51.600.00

5400.00

51,000.0051,000.0052,000.00

536,960.00 (a)

OfffceS

5700.0051,400.0053,500.00

5600.00

5350.0051,400.00

50.00

5250.00

5250.00

5350.00

5400.00

5200.00

5200.005200.005200.00

5200.00

50.00

50.0050.0050.00

510,200.00 (b)

Page 1 of 2

Page 106: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

ORO mining Inc#8 Lake Placid Rise S.E.Calgary, Alberta T2J 5B5

Summary of Labour and Expences Eagle Lake, Ontario Claimsif 1178693,1149804,1178692,1149806

diamond drill

food

lodging

scuba equipment

lab analysis

eagle lake -3

eagle lake -1 eagle lake -2 eagle lake-3

eagle lake -1 eagle lake -2 eagle lake -3

eagle lake -1

eagle lake -2

eagle lake -3

26 meters 960.00 l meter

Canteen Labs

CantechLabs

CantechLabs Accurassay Labs

travel expences in Ontario eagle lake -1

eagle lake -2

eagle lake -3

eagle lake -3

car

car

van

plane ticket

Total

Total ( a S61,970.19

dates for the expeditions are as follows:

eagle lake -1 eagle lake -2 eagle lake -3

June 5 to 9, 1997 Sept. 4 to 8, 1997 Sept. 22 to Oct. 1 4, 1 997

91,560.00

9250.00included in lodging

93,000.00

9250.0091,034.6092,244.00

91,000.00

9922.77

91,419.68

92.405.799433.35

9150.00

9150.00

9500.00

9500.00

916,820.19 (c)

20-May-98

Page 2 of 2

Page 107: Geological Report on the Prendible Island - Net Island ... · Eagle Lake , and is in close proximity to Muskeg Bay at a location approximately 7 km south of the property. 4.0 Previous

OntarioMinistry of Minlstere duNorthern Development Developpement du Nordand Mines et des Mines

Geoscience Assessment Office 933 Ramsey Lake Road

November 18,1998 6th FloorSudbury, Ontario

GRQ MINING INC. P3E 6B5#8 LAKE PLACID RISE S.E.CALGARY, ALBERTA Telephone: (888) 415-9846T2J-5B5 Fax: (877)670-1555

Visit our website at: www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

Dear Sir or Madam: Submission Number: 2.18524

Status Subject: Transaction Number(s): W9810.00094 Approval After Notice

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. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

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 [email protected] or by telephone at (705) 670-5855.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 13Q97

Copy for: Assessment Library

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Work Report Assessment Results

Submission Number: 2.18524

Date Correspondence Sent: November 18,1998 Assessor: Steve Beneteau

First Claim Number1178693

Township(s) l Area(s)EAGLE LAKE

StatusApproval After Notice

Approval Date

October 05, 1998

Transaction NumberW9810.00094

Section:16 Drilling PDRILL 12 Geological GEOL

The revisions outlined in the Notice dated August 21, 1998, have been corrected. Accordingly, assessment work credit has been approved as outlined on the Report of Work form accompanying this submission.

Correspondence to:Resident Geologist Kenora, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):GRQ MINING INC. CALGARY, ALBERTA

EARL EDWIN HANSSON WALDHOF, Ontario

Page: 1Correspondence ID: 13097

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