TECHNICAL REPORT ON THE CHAPAIS...

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TECHNICAL REPORT ON THE CHAPAIS PROPERTY

NTS Map Sheet 32G/15 Province of Quebec, Canada

Prepared for

DIAGNOS INC.

7005 Taschereau Blvd Brossard, Quebec Canada, J4Z 1A7

by:

André Ciesielski, P. Geo. Jean-Philippe Mai, P. Geo.

MARCH 2011 (November 2015 update)

Technical Report – Chapais Property, Quebec, Canada

A.Ciesielski, P.Geo. & J-P. Mai, P.Geo.

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TABLE OF CONTENT TECHNICAL REPORT ON THE CHAPAIS PROPERTY .................................................. 1

Table of Content .................................................................................................................... 2

3. Summary ........................................................................................................................... 5

4. Introduction ....................................................................................................................... 6

5. Reliance on Other Experts .................................................................................................. 6

6. Property Description & Location ........................................................................................ 7

7. Accessibility, Climate, Resources, Infrastructures & Physiography ................................... 10

8. History ............................................................................................................................ 11

9. Geological Setting ........................................................................................................... 15

9.1 Regional geology ........................................................................................................ 15

9.2 Local Geology ............................................................................................................ 17

10. Deposit Type ................................................................................................................. 19

11. Mineralization ............................................................................................................... 19

12. Exploration .................................................................................................................... 22

12.1 CARDS Modelling & Prediction System ................................................................... 22

12.2 Variables .................................................................................................................. 24

12.3 Training Data ........................................................................................................... 26

12.4 Methodology ............................................................................................................ 27

12.5 Prediction Models ..................................................................................................... 28

12.6 Results ..................................................................................................................... 33

13. Drilling .......................................................................................................................... 37

14. Sampling ....................................................................................................................... 37

15. Sample preparation ........................................................................................................ 37

16. Data Verification ........................................................................................................... 37

17. Adjacent properties ........................................................................................................ 37

18. Mineral Processing ........................................................................................................ 37

19. Mineral resources ........................................................................................................... 37

20. Other Relevant Data ....................................................................................................... 37

21. Interpretation & Conclusions .......................................................................................... 38

22. Recommendations .......................................................................................................... 38

23. References ..................................................................................................................... 40

24. Date and Signature ......................................................................................................... 45



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25. Additional Requirements for Technical Reports on Development Properties and Production Properties ............................................................................................................................ 46

26. Illustrations ................................................................................................................... 46

27. Certificate of Author ...................................................................................................... 47

FIGURES Figure 1: Chapais property location map ................................................................................ 7

Figure 2: Chapais claims and access roads (November 2015 update) ....................................... 8

Figure 3: Regional geological map of the northeastern Abitibi region. Modified after Goutier (2007). The Chapais property is in transparent light green immediately west of the town of Chapais. .............................................................................................................................. 16

Figure 4: Chapais local geology map (November 2015 update) ............................................. 18

Figure 5: Chapais property drill holes, showings and past producing mines (November 2015 update) ................................................................................................................................ 22

Figure 6: Chapais project, residual magnetic field from 2006 MEGATEM II Survey ............. 24

Figure 7: Chapais project training points .............................................................................. 27

Figure 8: DIAGNOS CARDS Targets (Cu) on the Chapais property (November 2015 update) 34

Figure 9: DIAGNOS CARDS Targets (Au) on the Chapais property (November 2015 update) 35

Figure 10: DIAGNOS CARDS Targets (Zn) on the Chapais property (November 2015 update) ........................................................................................................................................... 36

TABLES Table 1: Chapais property claim list (November 2015 update) ................................................ 8

Table 2: Chapais past producing mines ................................................................................. 20

Table 3: Property drilling highlights ..................................................................................... 21

Table 4: Chapais project variables ........................................................................................ 25

Table 5: Calculated neighbouring variables .......................................................................... 25

Table 6: Training points ....................................................................................................... 26

Table 7: Copper model - variable decision tree map .............................................................. 29

Table 8: Gold model - variable decision tree map ................................................................. 30



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ABBREVIATIONS CARDS: DIAGNOS’ proprietary Computer Aided Resource Detection System

GM: Statutory mining report

MRNF (Québec): Ministère des Ressources Naturelles & Faune du Québec

NAD: North American Datum

NRCAN: Natural Resources Canada

NSR: Net Smelter Return

SIGEOM: Système d’Information Géographique Minière

SRTM: Shuttle Radar Topography Mission

UTM: Universal Transverse Mercator

g: gram

g/t: gram per metric ton

km: kilometre

m: metre

cm: centimetre

mm: millimetre

ppm: parts per million

°C: degree centigrade



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3. SUMMARY

The Chapais property consists of 50 map designated and staked claims (November 2015 update), owned at 100% by DIAGNOS Inc., totalling 23.37 km2. Located 2 km west of the town of Chapais within NTS map sheet 32G/15, the project lies in the Chapais mining district. The Chapais district is extremely rich in Copper, having the highest average or e grade in the Abitibi (2.25% Cu), with lesser gold as well. The district is host to 4 past producing mines , which from 1953 to 1991 produces well over 1 billion pounds of copper and 1 million ounces of gold and over a dozen significant gold and base metal showings. To date the only mineralization style of economic value to be discovered is of filonien (Opémiska type) copper rich vein typology.

The Chapais property is located in the upper part of the stratigraphic volcanic sequences of northeastern Abitibi where the ultramafic Cumming Complex in trudes mafic and felsic rocks of the Waconichi Fm and mafic rocks of the upper Roy Group. The property straddles a complex west northwest-trending anticline and folded and sheared homoclinal interstratified vertical sequences of basalts, gabbro, rhyodacites and pyroxenites. Mineralization on the Chapais property may be of Opémiska style copper vein typology, particularly given its proximity to the Springer and Perry mines. The mineralized veins of the Springer mine are restricted to fracture networks contained in the ophitic parts of the gabbroic Venture sill, which continues into the Chapais property.

Despite the long mining history, the Chapais claim block has seen only a modest amount of exploration and many areas remain relatively unexplored. In fact, excellent potential remains to discover new zones of mineralization or extensions of previously discovered mineralized bodies.

During the months of April trough to May of 2010, over 704 km 2 were subject to a CARDS (Computer Aided Resource Detection System) evaluation, carried out by DIAGNOS Inc., over the Chapais area. The purpose of this study was to identify favourable exploration targets based on the analysis of all available geophysical and downhole data using artificial intelligence and data mining techniques. The Chapais study area generated three different models; gold, copper and zinc models from which targets were identified on the property.

The priority targets, selected based on their high similitude to the known gold, copper or zinc mineralization, remain untested and should be prioritized based on the evaluation of all available geoscientific information and be validated by a reconnaissance field survey. It should lead to further investigation using geophysics and definition of drill targets.

The property is of value because it includes both a highly prospective region (northern section of the claim block) located in a geologically significant environment and a well worked region (south east section of claim block) that could still benefit from fu rther drill testing. Furthermore, over 60% of the 132 drill holes located on the current claim block were extremely shallow, 34 never exceeded 100m depth and a further 49 did not exceed 200m.



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4. INTRODUCTION

At the request of DIAGNOS Inc. (DIAGNOS), the first author was contracted to complete a technical report on the Chapais property located northeast of the town of Val d'Or, Abitibi, some 400 km northwest of Montreal, Quebec.

The purpose of this report is to present and assess the Chapais property potential for copper and gold mineralization, in relation with the different zones identified by DIAGNOS as favourable using CARDS prediction system in 2010.

In April and May 2010, DIAGNOS used its proprietary Computer Aided Resource Detection System (CARDS) to target the mineral potential of the Chapais mining district. CARDS uses powerful pattern recognition algorithms to analyze digitally compiled exploration data and identifies areas, target zones, with high statistical probability of similarity to known areas of mineralization. Using CARDS, DIAGNOS generated target zones on the Chapais property with high similarities to known “signatures” of areas of copper mineralization.

The present document will present; the modelling prediction results, describe the m ethodology, modelling process and the utilized data. The regional and local geological contexts of the Chapais property along with historical exploration work, mineralization and exploration recommendations are also discussed in this report.

In the following, the authors referred to historical public data including assessment GM reports and geological, geochemical, and geophysical compilations, available online from SIGEOM and GESTIM (Quebec Ministère des Ressources Naturelles & Faune, MRNF website mrn.gouv.qc.ca/mines/geologie).

The first author, André Ciesielski, P. Geo. is a Qualified and Independent Person as defined by Regulation 43-101 and conducted a site visit of the Chapais property on the 18th and 19th of August 2010. The co-author, Jean-Philippe Mai, P.Geo., from DIAGNOS, is not a Qualified nor Independent Person as defined by Regulation 43-101 and has not visited the property.

5. RELIANCE ON OTHER EXPERTS

In the course of this study, the authors use mainly excerpts and data from various geologi cal and statutory reports. The authors have not taken any action to verify or assess reported grades and metal concentrations, other than assessing the rationale used in the various reports. If not commented, the authors consider the documentary sources as reliable, technically valid and usable with some restriction related to the present frame of work and the experience of the authors.

The first author relied on DIAGNOS expertise for the application of the CARDS predictive modelling.



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6. PROPERTY DESCRIPTION & LOCATION

The Chapais project is located 490 km northwest of Montreal (Figure 1), 2 km west of the town of Chapais and 40 km southwest of Chibougamau in northern Quebec. The property is part of the Levy and Daubree townships and is located in NTS map sheet 32G/15.

Figure 1: Chapais property location map

All claims are in good standing and owned at 100% by DIAGNOS. The property consists of 50 map designated and staked claims (November 2015 update), totalling 2 337.88 hectares (23.37 km2). The claim block extends for 5.2 km north and 6.5 km east in one irregularly shaped block. The center of the claim block is approximately located at latitude 49˚ 48’ 16’’ N and longitude -74˚ 54’ 37’’ W (506480m E, 5516890m N, NAD83 UTM zone 18) (Figure 2). The list of claims is presented in Table 1.

To the best knowledge of the authors, the Chapais permit is not subject to any other surface rights than those related to environmental protection of the mining law. To the knowledge of the authors, the property has not been legally surveyed. The authors do not have information regarding environmental liabilities on the property.



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Figure 2: Chapais claims and access roads (November 2015 update)

Table 1: Chapais property claim list (November 2015 update)

Claim # Code Area (ha) Status Registration

Date Expiry date Holder

2020223 CDC 55.56 Actif 2006-07-07 2016-07-06 DIAGNOS INC (21100) 100 %













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2386474 CDC 24 Actif 2013-07-03 2017-01-14 DIAGNOS INC (21100) 100 %






























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The property is host to three (3) mineralized zones (MRNF Showings, Figure 4):

1 - Normiska showing : 1.47 % Cu (grab sample) & 0.20 % Zn over 0.6 m (DDH), mineralization consists of chalcopyrite, pyrite, pyrrhotite, shalerite, silver, gold and native copper and is confined to quartz veins hosted within a band of rhyolitic tuffs of the Roy group.

2 - Bourbeau West 1 & 2 : 7.0 g/t Au over 0.9 m, 2.76 g/t Au over 0.9 m (channel samples), 5.0 g/t Au & 1578 ppm As (grab samples). Mineralization is reported to be hosted within a quartziferous ferrogabbro of the Bourbeau sill.

3 - Ruisseau Daubrée : 0.032% Ni over 2 m, 5.1 g/t Ag and 0.20% Cu over 0.3m (DDH), mineralization is hosted an andesite and diorite and occurs as spotted veinlets, massive bands ranging from a few centimetre to 0.3 meter contain up to 70% sulfides (Po).

Previous drilling returned good results, economic grades of gold and copper, with lesser silver and zinc mineralization have been recovered in the south east section the property. Result highlights for the 132 drill holes which have been drilled on the property are presented in Table 3.

7. ACCESSIBILITY, CLIMATE, RESOURCES, INFRASTRUCTURES &

PHYSIOGRAPHY

The property can be accessed by all weather gravel roads, which are part of a network of logging roads accessible from paved provincial Highway 113, just a few hundred meters west of Chapais. The claim block is then accessible by gravel roads and 4x4 trails (Figure 2).

The climate is characterized by cold winter and mild summers. Temperatures can range from 5˚C to 35˚C during the summer months and can reach -35˚C, rarely rising above 0˚C during the winter months with an average snow cover of 83 cm and 115 mm of rain in summer.

Located on highway 113, the city of Chapais, population 1630 (in 2006), is the closest population center to the project area. It is surrounded by, but not a part of, the municipality of Baie-James. The community was first settled in 1929, when prospector Léo Springer discovered deposits of copper, silver and gold in the area, and was incorporated as a city in 1955. Opémisca Copper Mines operated the community's mine until 1991. More recently, with the closure of the mines, the community's primary industry has been forestry. The community opened the first co-generation plant in Québec to produce electricity from sawmill waste. A major power line runs beside Highway 113 and heavy machinery is available in Chapais and Val d'Or 300 km to the southwest.

The topography of the property is generally flat with a few hills and swamps , ranging from 370 to 420 m in altitude. Except for a few protruding rolling hill, most of the region is covered by glacial deposits, with a thickness ranging from under a meter to 10 meters thick or more. The forestry cover is typical of northeastern Abitibi composed of primary poplars and conifers. The



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fauna comprises large mammals like moose and bears, smaller species, birds and fishes typical of southern boreal forest areas.

8. HISTORY

The Chapais property claims have a long history of exploration which dates back to the 1920’s with the discovery of the copper-gold potential of the area. The current claims are host to 132 diamond drill holes spanning over a 35 year period. Several magnetic and EM surveys have been reported and may cover the whole or parts of the actual Chapais claims. The following is a brief resume detailing the exploration history of the property.

* GM report not available for online viewing, paper only.

** Assay results / intervals as reported in the MRNF SIGEOM geoscientific compilations and not from original company logs.

1929 CLAIMS ROCHESTER, CLAIMS SPRINGER & MRN, geological report (GM 03556*)

1950 AREA MINES LTD carried out a magnetometer survey which identified four distinct anomalies. (GM 00618)

1950-1951 YOUNG CHIBOUGAMAU-OPEMISKA ML reports on conducted prospecting, trenching and a magnetic survey which showed trend l ines. The property’s geological potential for copper-gold ore similar to the Opemiska mine type is revealed and systematic exploration is recommended. (GM 00863, GM 01101, GM 01163)

1952 AREA MINES LTD reconditioned and re-taped 14.2 miles of the previous magnetometer survey and an additional 6.7 miles was cut and surveyed. Detailed topographical and geological mapping was followed by fourteen (14) drill holes, four (4) of which are on the current claims (DDH: 3, 4, 12 & 14). (GM 01757, GM 02254, GM 02253 -A, GM 02253-B) - DDH #12 : 3.6 % Zn over 0.6 m**

1952 ROCKEFELLER SYNDICATE conducted magnetic and electrical resistivity surveys, which identified two fairly strong anomalies and one conducting zone. (GM 02081A, GM 02081B)

1952 NORMISKA MINING & EXPLORATION LTD carried out a magnetometer survey which pointed out several unexplained anomalies. As a follow up to this survey, six (6) holes (DDH: 1 to 4 are on current claims) were drilled, with the following highlights: (GM 01733A, GM 01733B, GM 01769) - DDH #1 : 1.47 % Cu & 0.20 % Zn over 2.0 ft

1954 AREA MINES LTD conducted an electromagnetic survey and geochemical sampling. (GM 03238*, GM 03239A*)

1954 STRATMAT LTD drilled four (4) holes (DDH: Q-4-5-1 to Q-4-5-4) on the property, assays are not reported. (GM 02678-B)

1954 ENDEAVOR MINING CORP LTD drilled three (3) holes (1J, 1M & 2M) on the current claims, several mineralized intervals are reported. Assays are not reported. (GM 03131)



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1955 NEW YORK & HONDURAS ROS MINING CO, NEWLUND MINES LTD carried out a ground electromagnetic survey, geochemical sampling and drilled three (3) holes. DDH CN6 -1 & CN6-3 are located on the current claims. (GM 04095A*, GM 04095B*, GM 03968*)

1955 STRATMAT LTD conducted a ground electromagnetic survey and geological mapping. (GM 03811*)

1955 AREA MINES LTD drilled seven (7) holes (DDH: 15-16, 26, 28-31) of their 17 hole campaign on the current claims. (GM 03239-B*) - DDH #30: 1.9 % Cu over 0.4 m**

1955 NORMISKA MINING & EXPLORATION LTD, geochemical rock sampling. (GM 03667*)

1955 MARVELOR MINES LTD produced a geological report on the property. (GM 03362A*)

1956 AREA MINES LTD, NEW KISKA MINES LTD produced an information and geological report on the property. (GM 0475*)

1956 AUBELLE MINES LTD conducted a ground magnetic and resistiv ity surveys along with six (6) drill holes. Five (5) (DDH: 1 to 5) are on the current claims. (GM 04252A*, GM 04252B*)

1956 NORMISKA MINING & EXPLORATION LTD carried out a ground electromagnetic survey. (GM 05650*, GM 05639*)

1957 NORMISKA MINING & EXPLORATION LTD drilled ten (10) (DDH: 7 to 16) of their 17 holes are on the current claims. (GM 05143*) - DDH #10: 1.4 % Cu over 0.4 m**

1958 KISCO COPPER MINES LTD conducted geochemical rock sampling and DDH localisation. (GM 07776*)

1959 CONISKA COPPER MINES LTD carried out a ground magnetic survey. (GM 08994*)

1961 CONISKA COPPER MINES LTD & CONWEST EXPLORATION CO LTD carried out a ground electromagnetic survey and drilled two holes (DDH: 1 & 2). (GM 11433*, GM 11434*)

1966 OPEMISKA COPPER MINES LTD undergone geological mapping, rock & trench sampling, with the following highlights: (GM 19398) - Trench #2 : 0.20% Cu, 0.01 oz/t Au & 0.09 oz/t Ag, 0.50% Cu, 0.01 oz/t Au & 0.09 oz/t Ag

- Trench #3 : 0.50% Cu, Tr. Au & 0.17 oz Ag

Note: precise location of the above trenches remains uncertain

1967 KISCO COPPER MINES LTD, OPEMISKA COPPER MINES carried out a ground electromagnetic and magnetic survey which revealed several conductors which were tested by a drilling program. Ten (10) holes (DDH: H-32, H-33, H-35 to 40, H-43 & 44) were drilled on the current property. (GM 21059, GM 21060, GM 21061) - DDH H-32: 0.9 % Cu over 3 ft, 0.5 % Cu over 7 ft

- DDH H-37: 0.35 % Cu over 4 ft

- DDH H-38: 0.3 % Cu over 3 ft



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- DDH H-43: 0.6 % Cu over 2.2 ft

1967 OPEMISKA COPPER MINES LTD drilled three (3) holes (DDH: S-422, S-478 & S-498) of their campaign on the current property claims, with the following highlights: (GM 20773) - DDH S-422: 1.10 % Cu over 2.0 ft

- DDH S-498: 1.0 % Cu over 2.0 ft

1967 ROCKEFELLER SYND, ROSARIO EXPLORATION CO conducted a ground electromagnetic survey. Several anomalies were identified and recommended to be tested with diamond drilling. (GM 21397)

1968 ROCKEFELLER SYND, ROSARIO EXPLORATION CO carried out an electromagnetic and magnetic survey followed by diamond drilling of anomalous zones. Five (5) holes, all on current claims, totalling 2 238 ft were drilled. Holes tested EM anomalies, all of which were found to be caused by pyrite, graphitic slates or tuffs. (GM 23263)

1970-1971 OPEMISKA COPPER MINES LTD conducted various magnetic and electromagnetic (TURAM) surveys over their property which allowed for several strong and well defined EM conductors to be located. Surveys were followed by a diamond drilling program from which fourteen (14) holes figure on the current claims, with the following highlights: (GM 26046, GM 26481, GM 26047, GM 26312, GM 26567, GM 26499, and GM 27177) - DDH S-631: 0.40 % Cu over 1.0 ft

- DDH S-633: 0.40 % Cu over 4.0 ft

- DDH S-635: 0.30 % Cu over 3.0 ft, 0.40 % Cu over 3.0 ft

- DDH S-642: 0.30 % Cu over 1.0 ft

- DDH S-660: 0.35 % Cu over 4.0 ft

1971 CLAIMS PELLETIER drilled two (2) holes on the property (DDH: 1 & 2). (GM 27982*)

1972-1973 FALCONBRIDGE COPPER LTD conducted a magnetic and electromagnetic survey which was followed by eleven (11) drill holes, eight (8) are located on current claims. (DDH: S-679-681, S-691-694, S-697). (GM 27902*, GM 28232*, GM 28409*, GM 28786* GM 29265*, GM 29824*) - DDH S-691: 1.9 % Zn over 0.6 m**

1973-1974 CLAIMS PELLETIER, UMEX INC carried out a ground magnetic and electromagnetic survey. Four (4) holes were also drilled on the property (DDH: PL -D1 to PL-D4). No reported assays. (GM 28662*, GM 29867)

1974 FALCONBRIDGE COPPER LTD OPEMISKA COPPER MINES continued their drilling in the vicinity, two (2) drill holes are reported, one (DDH: S-702) of which is on the current claims. (GM 30797) - DDH S-702: 0.40 % Cu over 3.0 ft

1978-1980 FALCONBRIDGE COPPER LTD drilled five (5) holes, two (2) (DDH: S -786 & S-870) are on current claims, none returned any s ignificant assay results. (GM 33823, GM 36433)



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1980 FALCONBRIDGE COPPER LTD conducted a ground electromagnetic survey and commenced a drilling program on their Kisko property; three (3) holes (DDH: KIS -1, KIS-4 & KIS-5 are on the current claims. (GM 36260, GM 37255) - DDH KIS-1: 2.63 % Cu & 0.02 oz/t Au over 1.6 ft, 1.28 % Cu & 0.025 oz/t Au over 1.0 ft

- DDH KIS-4: 0.4 % Zn over 3.9 ft

- DDH KIS-5: 1.0 % Cu over 1.6 ft, 1.1% Cu over 1.7 ft, 3.98 % Cu & 0.02 oz/t Au over 0.8 ft

1981 CORPORATION FALCONBRIDGE Copper carried out an electromagnetic and magnetic survey and continued drilling on their Kisko property. Thirty two (32) drill holes are located on the current claims with the following highlights: (GM 38068, GM 38067, GM 38475) - DDH KIS-7: 9.59 % Zn, 4.86 oz/t Ag & 5.57 % Pb over 2.7 ft

- DDH KIS-8: 1.15 % Cu over 1.7 ft



- DDH KIS-14: 1.4 % Cu & 0.01 oz/t Au over 0.6 ft

- DDH KIS-15: 3.08 % Zn & 0.32 oz/t Ag over 2.0 ft

- DDH KIS-16: 2.28 % Zn over 0.7 ft


- DDH KIS-18: 1.63 % Cu over 4.3 ft, 0.435 oz/t Au & 0.59 % Cu over 2.7 ft

- DDH KIS-22: 1.74 % Zn & 0.292 oz/t Au over 1.3 ft

- DDH KIS-25: 0.044 oz/t Au over 1.8 ft




- DDH KIS-31: 0.42 % Cu & 0.045 oz/t Au over 2.0 ft




- DDH KIS-38: 3.85 % Zn & 0.028 oz/t Au over 0.7 ft


- DDH KIS-45: 1.2 % Zu & 0.039 oz/t Au over 4.0 ft


1984 CORPORATION FALCONBRIDGE Copper drilled one (1) hole (DDH: S-1016) on the current claims as part of a larger campaign. (GM 43448) - DDH S-1016 : 0.029 oz/t Au over 5.0 ft

1985 CORPORATION FALCONBRIDGE Copper conducted a ground magnetic, VLF and gradiometric survey. (GM 42156, GM 42852)



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1986 CORPORATION FALCONBRIDGE Copper & M.E.R drilled four (4) holes in a joint program in order to test auriferous structures previously defined. Three (3) (DDH: BO -30, BO-31 & BO-33) are on the current claims. (GM 45042) - DDH BO-31: 0.077 oz/t Au over 5.0 ft, 0.024 oz/t Au over 5.0 ft, DDH BO-33: 0.029 oz/t Au over 1.0 ft

1987 MINNOVA INC, geological report on the northern section of the property. (GM 46158)

1994 CLAIMS AHRENS, CLAIMS FERDERBER, rock sampling, gradiometric, magnetic and VLF ground survey. (GM 52645)

2006 NATURAL RESOURCES CANADA, airborne EM survey flown by FUGRO at an altitude of 120 m with a 200 m line spacing. This corresponds to the Chibougamau 2006 MEGATEM II survey, available through NRCan as GSC open file 5246.

2010 DIAGNOS conducted a CARDS evaluation of the property from which copper, gold and zinc targets were identified.

9. GEOLOGICAL SETTING

9.1 Regional geology

The Chapais property is located in the northeastern Abitibi volcanic belt immediately west of the town of Chapais (Figure 3). The area is characterized by thick 2.75 to 2.7 Gy Archean mafic (Obatogamau and Gilman Fm), intermediate and felsic (Blondeau Fm) volcanic sequences, the Roy Group overlain by the detrital Opemisca Group, intruded at the top of the sequence by the Cummings Complex composed of ultramafic and mafic variable sills and intrusions (Bourbeau and Ventures Fm).

The whole sequence has been compressed, metamorphosed to the greenschist facies (chlorite -epidote-tremolite) and verticalized along the main east -west deformational Kapunapotagen corridor, between the late Opemisca pluton to the north and the Doré Lake anorthosite Complex to the north and east and the Lapparent igneous and gneisic complex to the south, intruded shortly before or during the main Kenoran deformational and metamorphic e vent ca 2.7 Gy.

In the center of the region, the volcanic and sedimentary sequences are affected by the northeast-trending Gwillim wrench-fault displacing the sequence. To the east, the whole volcanic sequence and the various intrusives are affected by la te Proterozoic north northeast-trending tight faulting related to the Grenville Front tectonics.

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9.2 Local Geology

The Chapais property is located in the upper part of the stratigraphic volcanic sequences of northeastern Abitibi where the ultramafic Cumming Complex intrudes mafic and felsic rocks (V3[TU]-V1[TU]-V1C- V1B-V3B-V2J*) of the Waconichi Fm and mafic rocks of the upper Roy Group (Figure 4). The property straddles a complex west northwest -trending anticline and folded and sheared homoclinal interstratified vertical sequences of basalts (V3B*), gabbro (I3E, I3A*), rhyodacites and pyroxenites (I4B*). The latter show faulted contact to the south with the overlying Daubrée sandstones and graywackes (S1-S3-S3D-S2C-S6A-S6I-V1[TU]*).

A series of northeast-trending sinistral and dextral wrench faulting displaced the whole sequence in various stratified large blocks. To the north, the anticline is intruded by the late -Archean Opemisca granodiorite (I1C-I2H*) along and east-west contact. To the south the Daubrée greywackes and the Stella sandstones (S1B-S1E*) are in faulted contact with the Blondeau rhyodacites. In the southeast corner, the east northeast -trending Gwillim fault displaced the Obatogamau basalt Fm (V3B[MA][CO][BQ]-M16-V3[TU]-V2[TU]*) in contact with rhyodacites of the upper Blondeau Fm and with pyroxenites (I4B*) of the Ventures Fm.

(*) November 2015 update

Tech

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Figure

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Chap

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10. DEPOSIT TYPE

Known deposits surrounding the Chapais property claims may be grouped in three distinct mineralization types: synvolcanic, syn and post deformation (Kenoran).

Syndeformation

The syndeformation mineralization of the Chapais area, also known as the Opemiska type veins, is represented in the Springer, Perry and Robitaille deposits west of the Gwillim fault. Mineralization (Cu, Au & Ag) is concentrated in fracture networks which filled the voids created during folding (hinge deformation). The complexity of the deposits lies within the structural patterns; the ore occupies E-W breaks which are parallel to the anticline synform axial plane. This fracture network may have developed at the same time as the regional folding, due to the fragility of the coarse crystallized phases along with the ophitic texture of the Venture sill (Watkins & Riverin, 1982).

Post deformation

The post Kenoran deformation mineralization is represented in veins of the Cooke mine deposit located east of the Gwillim fault. Veins are hosted in the leucogabbro and quartziferous ferrogabbro of the Bourbeau sill. Mineralization (Cu, Au) is confined to a series of E-W to N-W shear zones (secondary splays of the Gwillim fault). These shears vary between 2 to 3 m in width and were later affected by the last northeast movements of the Gwillim fault (Morin, 1991).

Synvolcanic

Synvolcanic (VMS) mineralization (Cu, Zn, Po, Py) is associated to the 8-5 zone of the Cooke mine. The zone is a small mass of massive sulfides within the volcanoclastic rocks of the Blondeau formation at the base of the Bourbeau sill.

Apart from the synvolcanic mineralization found in parts of the Cooke mine, mineralization of the Chapais area is epigenetic with strong structural controls. Archean faults and folds associated to favourable lithology (Venture sill) may have created fracture networks permitting the passage of hydrothermal fluids. Therefore, E-W shear zones, fold hinges associated to competent rocks and breaks related to the Gwillim fault constitute metallotectonic environments favourable to cupriferous and auriferous mineralization.

11. MINERALIZATION

Mineralization on the Chapais property may be of Opémiska style copper vein typology, particularly given its proximity to the Springer and Perry mines. The mineralized veins of the Springer mine are restricted to fracture networks contained in the ophitic parts of the gabbroic Venture sill, which continues into the Chapais claim block.

The Chapais area is host to four past producing mines (Figure 5), which from 1953 to 1991 produces well over 1 billion pounds of copper and 1 million ounces of gold (Table 2).



20

Table 2: Chapais past producing mines

Chapais Mines Opening Closing Years

Production (s.t.) Cu %

Au (g/t) Cu (lbs) Au (oz)

Perry 1965 1991 36.5 8 977 834 2.15 3.03 386 046 860 790 049

Robitaille 1970 1972 2 204 087 1.86 7 592 036

Springer 1953 1991 36.5 12 838 655 2.55 0.69 654 771 400 25 677

Cooke 1977 1989 12 1 987 697 0.64 5.02 25 442 521 290 204

TOTAL 24 008 273 TOTAL 1 073 852 817 1 105 930

Source: MRNF

The property lies north of the NE-SW trending Gwillim fault and shear zone in the folded and faulted ultramafic, intermediate and rhyolitic rocks of the Ventures formation. The Gwillim fault is an extremely important structure; several deposits have been discovered along its flanks. The property is host to three (3) MRNF showings (Figure 5):

1 - Normiska showing : 1.47 % Cu (grab sample) & 0.20 % Zn over 0.6 m (DDH), mineralization consists of chalcopyrite, pyrite, pyrrhotite, shalerite, silver, gold and native copper and is confined to quartz veins hosted within a band of rhyolitic tuffs of the Roy group.

2 - Bourbeau West 1 & 2 : 7.0 g/t Au over 0.9 m, 2.76 g/t Au over 0.9 m (channel samples), 5.0 g/t Au & 1578 ppm As (grab samples). Mineralization is reported to be hosted within a quartziferous ferrogabbro of the Bourbeau sill.

3 - Ruisseau Daubrée : 0.032% Ni over 2 m, 5.1 g/t Ag and 0.20% Cu over 0.3m (DDH), mineralization is hosted an andesite and diorite and occurs as spotted veinlets, massive bands ranging from a few centimetre to 0.3 meter contain up to 70% sulfides (Po).

Previous drilling returned good results, economic grades of gold and copper, with lesser silver and zinc mineralization have been recovered. The following table shows the result highlights of the 132 drill holes which have been drilled on the property. (Table 3)



21

Table 3: Property drilling highlights

X Y COMPANY Drill Hole # LENGTH (m) LENGTH (m) MAX DEPTH (m)508254 5514740 FALCONBRIDGE K-35 13 g/t Ag 0.2 106508208 5514582 KISCO COPPER MINES OPEMISKA COPPER MINES H-38 18 g/t Ag 0.9 154507862 5514399 AREA MINES LTD 5 53.8 g/t Ag 0.2 1.7 g/t Au 0.2 136507085 5514399 FALCONBRIDGE K-12 21 g/t Ag 0.6 109507046 5514528 FALCONBRIDGE K-11 15 g/t Ag 0.6 114508988 5518385 OPEMISKA COPPER MINES [QUE] L S-637 1 g/t Au 0.3 307508834 5515369 CORPORATION FALCONBRIDGE CU M E R B0-31 2.7 g/t Au 1.5 286508807 5514324 FALCONBRIDGE K-19 4 g/t Au 0.3 23 g/t Ag 0.3 696508748 5515341 CORPORATION FALCONBRIDGE CU M E R BO-33 1 g/t Au 0.3 188508669 5514333 FALCONBRIDGE K-18 15 g/t Au 0.8 438508411 5514793 FALCONBRIDGE K-45 10 g/t Au 0.3 254508714 5515120 OPEMISKA COPPER MINES [QUE] L S-498 0.6 % Cu 2.3 107508574 5514288 AREA MINES LTD 30 1.9 % Cu 0.4 152508531 5514543 FALCONBRIDGE K-27 0.9 % Cu 0.2 407508439 5514524 FALCONBRIDGE K-29 1.4 % Cu 0.2 276508154 5514728 FALCONBRIDGE K-38 5.7 % Cu 0.3 3.9 % Zn 0.2 210508043 5514967 FALCONBRIDGE K-20 0.4 % Cu 0.7 539507989 5514395 FALCONBRIDGE K-34 1.4 % Cu 0.6 33 g/t Ag 0.6 155507927 5514092 FALCONBRIDGE COPPER LTD KIS-5 4 % Cu 0.3 135507172 5514346 FALCONBRIDGE K-40 0.6 % Cu 0.4 255507139 5514450 FALCONBRIDGE COPPER LTD KIS-1 2.6 % Cu 0.5 122507114 5514479 FALCONBRIDGE KIS-8 1 % Cu 0.5 213505723 5518425 NORMISKA MINING & EXPL LTD 10 1.4 % Cu 0.4 94505723 5518425 NORMISKA MINING & EXPL LTD 10 1.4 % Cu 0.4 94505070 5518792 NORMISKA MINING & EXPL LTD 1 1.5 % Cu 0.6 94505070 5518792 NORMISKA MINING & EXPL LTD 1 1.5 % Cu 0.6 94506084 5518278 OPEMISKA COPPER MINES [QUE] L S-661 0.1 % Ni 0.3 188507885 5514551 AREA MINES LTD 9 2.6 % Pb 0.5 70 g/t Ag 0.5 171508870 5514323 FALCONBRIDGE K-32 0.7 % Zn 0.3 459508795 5514218 FALCONBRIDGE K-31 0.8 % Zn 0.3 90 % SF 0.6 291508726 5515088 OPEMISKA COPPER MINES [QUE] L S-422 0.5 % Zn 1.5 182508707 5515507 CORPORATION FALCONBRIDGE CU M E R BO-30 1.4 % Zn 1 0.8 g/t Au 0.8 322508420 5515138 FALCONBRIDGE K-48 0.8 % Zn 1.9 316508274 5514639 FALCONBRIDGE K-22 1.7 % Zn 0.4 10 g/t Au 0.4 91508158 5518180 OPEMISKA COPPER MINES [QUE] L S-660 1.4 % Zn 0.9 197508135 5514649 FALCONBRIDGE KIS-7 7.8 % Zn 0.8 10 % Pb 0.8 716508004 5514341 FALCONBRIDGE K-14 2.1 % Zn 0.6 444507958 5514509 FALCONBRIDGE COPPER LTD KIS-4 0.2 % Zn 1.7 275507914 5514448 AREA MINES LTD 12 3.6 % Zn 0.6 0 0 140507912 5516888 OPEMISKA COPPER MINES [QUE] L S-635 2.2 % Zn 0.3 252507897 5514194 FALCONBRIDGE K-15 3.1 % Zn 0.6 262507896 5514194 FALCONBRIDGE K-33 2.6 % Zn 0.3 246507781 5514262 FALCONBRIDGE K-16 2.6 % Zn 0.2 124504498 5516328 FALCONBRIDGE COPPER LTD S-691 1.9 % Zn 0.6 136508758 5514670 FALCONBRIDGE K-46 0.8 % SP 0.3 219508591 5514514 FALCONBRIDGE K-26 3.1 % SP 0.3 502505223 5516154 NEW YORK & HONDURAS ROS MNG NEWLUND MINES CN6-1 100 % SF 0.3 94508655 5514493 FALCONBRIDGE K-23 15 % PY 3 93508373 5515347 OPEMISKA COPPER MINES S-631 50 % PY 7 294504914 5516180 FALCONBRIDGE COPPER OPEMISKA COPPER MINES S-680 100 % PY 3.7 133504019 5516441 FALCONBRIDGE COPPER LTD S-692 20 % PY 2.4 152508091 5514510 KISCO COPPER MINES OPEMISKA COPPER MINES H-32 100 % PO 2 94508046 5514601 KISCO COPPER MINES OPEMISKA COPPER MINES H-40 7.5 % PO 1.4 228508005 5514724 AREA MINES LTD 15 100 % PO 0.2 1 % Cu 0.2 229

Coordinates are in NAD 83 zone 18

GRADE GRADE



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Figure 5: Chapais property drill holes, showings and past producing mines (November

2015 update)

12. EXPLORATION

DIAGNOS hasn’t done any field exploration work on the Chapais property outside the short field visit with the author. The following presents the CARDS evaluation carried out on the Chapais property by DIAGNOS; the modelling prediction results, describes the methodology, modelling process and the utilized data.

12.1 CARDS Modelling & Prediction System

CARDS is a state of the art computer system that uses the latest Artificial Intelligence and pattern recognition algorithms to analyze large digital data sets of compiled geo -referenced exploration data, including geological, geochemical, geophysical, a nd structural data, as well as digital elevation and satellite imagery data.



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The backbone of CARDS is the MCubiX-KE data mining engine. MCubiX-KE uses powerful pattern recognition algorithms to learn the “signatures” or “fingerprints” of known mineralized sites, uses these as a training data, and identifies points (targets) with a high statistical probability of similarity to known areas of mineralization across less explored regions.

Data is entered into CARDS in the form of geo-referenced data points. Each point in the database is linked to its own set of characteristics (variables) that are extracted from a variety of sources, for example:

- Geological maps: rock type, alteration

- Geophysical surveys: MAG, EM, IP, gravity, radiometry

- Geochemical surveys: rock, soil, lake bottom, drill hole assays

- Digital elevation models

- Satellite imagery

- Proximity to mineral occurrences / mineralized drill holes

- Proximity to lithological contacts / specific intrusive suites

- Proximity to interpreted lineaments / mapped faults and shear zones

In addition, in the analysis of each point in the database, the characteristics of all points within a specified distance (neighbourhood) are weighed into the evaluation of that point. In this manner, points lacking data can still be highlighted by CARDS if the combination of their limited characteristics and their proximity to points with other significant characteristics is similar to that of known positive points.

Data is stored in two databases. The first includes all points with known mineralization, mostly from drill hole or rock assay data, and is used to develop the model of the geological target being sought (training data). The second database includes all other points (data being scored). The algorithms are then used to identify points, from the second database, that have a high similarity to the signatures of points with known mineralization.

The quality and usefulness of results derived from CARDS mode lling is dependent on a variety of factors including the coverage, quantity, variety and quality of geoscientific and historical exploration data processed. In addition, where interpreted data is used, it is also dependant on the adequacy of the interpretation.

Targets generated by CARDS should be evaluated in conjunction with all readily available geological data in the evaluation of the economic potential of a property as well as in the outlining of exploration targets.

DIAGNOS used CARDS to target the mineral potential of the Chapais & Chibougamau area, part of the Abitibi sub-province in southwestern Québec, and generated copper, gold and zinc targets. The Chapais project study area spans for 704 km 2 and covers parts of NTS map sheets 32G/015, 32G16 and 32G10.



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12.2 Variables

A total of 14 variables were retained to develop the regional models; these variables were derived from public domain information obtained from the Ministère des Ressources Naturelles et de la Faune (MRNF), Natural Resources Canada (NRCan) and the Shuttle Radar Topography Mission (SRTM).

The variables used can be summarized in four categories:

- Geophysical data: residual magnetic field, conductance

- Topographic data: SRTM digital elevation model.

- Derivative data: dx, dy, dz, analytical signal, tilt.

- Neighbouring data: sum, median, standard deviation, etc.

The geophysical data utilized for the Chapais project is of public domain and consists of an airborne EM survey flown by FUGRO in 2006 at an altitude of 120 m with 200 m line spacing and 2000 m control lines. This corresponds to the Chibougamau 2006 MEGATEM II Survey, available through NRCan as GSC open file 5246 (Figure 6).

Figure 6: Chapais project, residual magnetic field from 2006 MEGATEM II Survey



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SRTM 90 m resolution topographic model was used on the projec t. The complete list of variables utilized in the modelling process is presented in Table 4.

Table 4: Chapais project variables

Variables Description

1 m_res Magnetic residual field

2 m_dx Derivative of m_res in x

3 m_dy Derivative of m_res in y

4 m_1vd Vertical derivative (z) of m_res

5 m_2vd Second vertical derivative of m_res

6 m_asig Analytical signal of m_res

7 m_tdr Tilt derivative of m_res

8 m_hd_tdr Horizontal derivative of m_tdr

9 app_cnd Apparent conductivity

10 srtm SRTM digital elevation model

11 t_dx Derivative of srtm in x

12 t_dy Derivative of srtm in y

13 t_1vd Vertical derivative (z) of srtm

14 t_asig Analytical signal of srtm

The neighbouring variables have been calculated for most of the measured and/or calculated variables. The characteristics of all points within a specified distance are weighed into the evaluation of that point. In this manner, points lacking data can still be highlighted if the combination of their limited characteristics and their proximity to points with other significant characteristics is similar to that of known positive points. Therefore, 22 additional calculated variables are introduced into the models for each variable (Table 5).

Table 5: Calculated neighbouring variables

Variable Description

1 _hood_sum Sum in the neighbourhood

2 _hood_abssum Sum of absolute values in the neighbourhood

3 _hood_min Minimum in the neighbourhood

4 _hood_max Maximum in the neighbourhood

5 _hood_avg Average in the neighbourhood

6 _hood_stddev Standard deviation in the neighbourhood

7 _hood_reldev Relative deviation in the neighbourhood

8 _hood_kurtosis kurtosis (measure of the "peakedness") in the neighborhood

9 _MedianGradient Median Gradient in the neighbourhood

10 _DistGravCenter Distance from Gravity Center in the neighbourhood

11 _hood_hslope Horizontal slope in the neighbourhood

12 _hood_hslope_min Minimum of horizontal slopes in the neighbourhood

13 _hood_hslope_max Maximum of horizontal slopes in the neighbourhood

14 _hood_hslope_sum Sum of horizontal slope in the neighbourhood



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Variable Description

15 _hood_hslope_avg Average of horizontal slopes in the neighbourhood

16 _hood_hslope_stddev Standard deviation of horizontal slopes in the neighbourhood

17 _hood_vslope Vertical slope in the neighbourhood

18 _hood_vslope_min Minimum of vertical slopes in the neighbourhood

19 _hood_vslope_max Maximum of vertical slopes in the neighbourhood

20 _hood_vslope_sum Sum of vertical slopes in the neighbourhood

21 _hood_vslope_avg Average of vertical slopes in the neighbourhood

22 _hood_vslope_stddev Standard deviation of vertical slopes in the neighbourhood

Therefore, a total of 308 variables (14 x 22) were introduced into the database. Data was gridded to a 50 m cell size (model resolution) which corresponds to 229 463 data points.

12.3 Training Data

A total of 2 541 drill holes and 1 932 rock samples were selected as learning data for the Chapais regional models. Selected drill holes and rock samples are public domain information obtained from the MRNF databases.

Drill holes (collars) and rock samples within the modeling area with reported gold, copper and zinc assays above a designated threshold were identified as positive points for training purposes.

The following table (Table 6) presents the training points used for each of the models, spatial distribution of those points are shown in Figure 7.

Table 6: Training points

Gold Model

Copper Model

Zinc Model

DDH

AU > 500 ppb 195 - -

DDH

CU > 1000 ppm - 326 -

DDH

ZN > 1000 ppm - - 197

Rock Sample

AU > 100 ppb 127 - -

Rock Sample

CU > 1000 ppm - 10 -

Rock Sample

ZN > 100 ppm - - 40

TOTAL 322 336 237



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Figure 7: Chapais project training points

Models were generated using compiled exploration data derived from the public domain. The validity and integrity of such data has not been thoroughly verified.

All of the public data used for this project is available on the MRNF website at the following address: http://www.mrn.gouv.qc.ca

12.4 Methodology

To complete the analysis, DIAGNOS developed statistical predictive models based on the available variables and training points. These models determine which variable combin ation bests characterises the positive signature of known mineralized sites. This signature is then use to make similarity predictions.

In short, the modelling process can be summarized in the following steps:

- Compile all available information about the modeling area (geological, geophysical, geochemichal, topographic, etc).

- Identify the positive points (drill holes and rock samples) according to the established thresholds for each of the sought mineralization (Au, Cu, and Zn).

http://www.mrn.gouv.qc.ca/



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- Use a moving window (250 m) to capture the neighbouring patterns around each point, expressed by the 22 calculated variables for each primary exploration layer.

- Complete a cluster analysis for all data points (unknown and known positive occurrences combined) and calculate the proportion of known positive data points in each cluster in order to explore the region of interest.

- Run a base learning algorithm to target and narrow the area to zones similar to the explored ones (base model). The other zones will be ignored in the next steps.

- Run a prediction learning algorithm using multiple models based on decision trees to discriminate labeled positive points and unlabeled base model data for training.

- Generate a signature that discriminates between the positive and unknown po ints using all the existing information.

- Aggregate the different rules of all the trees by getting a probability between 0 (unlike -positive) and 1 (like-positive) computed as the average of the different classification results. This probability represents the level of similarity of each point to the existing positive sites based on all variables used in the modeling.

- Classify each new unknown point based on the rules of classification already generated: a point is considered as positive if its probabili ty is higher than a specified threshold level.

- Run a validation learning algorithm using the same input data of the prediction algorithm to ensure that the statistical process is working properly and that the results intuitively make sense.

- Investigate visually by comparing images of targets based on cluster analysis, prediction modeling and validation modeling in order to get the targets relevance and priorities.

12.5 Prediction Models

Examination of decision trees for the various models within the Chapais modeling area computed by CARDS indicates that some variables are predominant in the learning process. Variable importance is a difficult concept to define in general, because the importance of a variable may be due to its (possibly complex) interaction with other variables. In the main, variables that appear frequently and in the top rank of decision trees level are more important for the models.

A total of three (3) different prediction models were generated on the Chapais project, in order to optimize the training data sets and to customize the learning models based on distinct mineralization types.

The gold, copper and zinc models generated targets, at a 50 m resolution, using the corresponding training data sets described in the previous sections. The following tables show the depth of the variables within the decision tree models. Variables are ranked based on their decision tree level, which is an indicator of their discriminating and influential factor.

Copper

The most important variables for the copper model are:



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- SRTM digital elevation model

- Apparent conductivity

- Magnetic residual field

- Derivative of m_res in x

- Vertical derivative (z) of m_res

Table 7: Copper model - variable decision tree map

Rank Variable First Level

Appearance

1 srtm_hood_min 23

2 app_cnd_hood_sum 7

3 m_res_hood_abssum 6

4 app_cnd_hood_max 5

5 app_cnd_hood_min 5

6 m_dx_hood_max 5

7 srtm_hood_sum 4

8 m_1vd_hood_min 4

9 m_tdr_hood_vslope_stddev 3

10 t_1vd_hood_abssum 3

11 m_res_hood_min 2

12 m_1vd_hood_abssum 2

13 app_cnd 2

14 m_tdr_hood_vslope_max 2

15 srtm_hood_vslope_min 2

16 t_1vd_hood_min 2

17 t_asig_hood_max 2

18 m_dx_hood_vslope_max 2

19 m_res_hood_sum 1

20 m_res_hood_max 1

21 app_cnd_hood_hslope_stddev 1

22 m_dx_hood_vslope_min 1

23 m_asig_hood_hslope_max 1

24 app_cnd_hood_vslope_min 1

25 m_dx_hood_hslope_stddev 1

26 m_dy_hood_max 1

27 m_asig_hood_sum 1

28 app_cnd_hood_vslope_sum 1

29 m_2vd_hood_hslope_min 1



30


Appearance

30 m_tdr_hood_max 1

31 m_dx_hood_abssum 1

32 t_1vd_hood_hslope_max 1

33 t_dy_hood_vslope_max 1

34 t_dx_hood_hslope_max 1

35 m_dx_hood_stddev 1

36 m_asig_hood_vslope_min 1

37 m_2vd_hood_vslope_stddev 1

Total 100

Gold

The most important variables for the gold model are:





- Vertical derivative (z) of m_res

Table 8: Gold model - variable decision tree map


Appearance

1 srtm_hood_min 13



4 app_cnd_hood_hslope_max 6



7 m_1vd_hood_min 6

8 srtm_hood_max 5


10 m_res_hood_min 2

11 m_tdr_hood_vslope_max 2



14 m_res_hood_max 2

15 srtm_hood_hslope_max 2



31


Appearance

16 t_asig_hood_sum 2

17 m_res_hood_sum 2


19 m_dx_hood_max 1

20 srtm_hood_sum 1


22 app_cnd_hood_vslope_sum 1

23 m_2vd_hood_min 1

24 app_cnd_hood_abssum 1

25 m_res_hood_hslope_max 1

26 t_asig_hood_min 1

27 m_dx_hood_abssum 1

28 m_2vd_hood_vslope_max 1

29 m_asig_hood_hslope_max 1

30 m_res_hood_vslope_max 1

31 srtm_hood_vslope_min 1

32 m_tdr_hood_max 1

33 m_dy_hood_vslope_min 1

34 m_res_hood_vslope_min 1

35 t_dx_hood_vslope_min 1

36 t_asig_hood_max 1

37 m_asig_hood_sum 1

Total 100

Zinc

The most important variables for the zinc model are:




- Tilt derivative of m_res


Table 9 : Zinc model - variable decision tree map


Appearance




32


Appearance

2 srtm_hood_min 9



5 m_res_hood_min 5



8 m_res_hood_max 4

9 srtm_hood_abssum 3



12 srtm_hood_max 2

13 t_dx_hood_hslope_min 2

14 app_cnd_hood_hslope_max 2

15 t_asig_hood_sum 2



18 t_1vd_hood_abssum 2

19 srtm_hood_hslope_max 1

20 t_asig_distgravcenter 1

21 srtm_hood_sum 1

22 m_res_hood_sum 1

23 m_res_hood_reldev 1

24 app_cnd_hood_vslope_min 1

25 m_dy_hood_max 1

26 t_dy_hood_hslope_min 1


28 m_1vd_hood_sum 1

29 m_res_hood_vslope_min 1

30 t_asig_hood_hslope_max 1

31 m_hd_tdr_hood_sum 1

32 t_1vd_hood_vslope_min 1


34 m_2vd_hood_min 1

35 t_1vd_hood_min 1


37 srtm_hood_min 9



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Appearance

Total 100

12.6 Results

The prediction results generated on the Chapais modeling area from the gold, copper and copper-zinc models are presented as target zones. The identified targets represent a similarity percentage to the known mineralization signature. Importance was given to targets in areas with little to no training data which were scored with high similarities to known positive points. This criterion was used by DIAGNOS in the selection of the presented explora tion targets.

In this case, the copper model identified high similarity targets on the Chapais claims. Results are shown on the following map (Figures 8, 9 & 10) and are all presented at 80% similitude.

Note: high statistical probability refers to decis ion tree classification of targets zone signatures; it should not be viewed as high statistical probability of finding mineralization at a target zone.

Tech

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Figure

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DIA

GN

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CA

RD

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s (C

u)

on t

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Chapais

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Figure

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DIA

GN

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CA

RD

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s (A

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on t

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Chapais

pro

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Figure

10:

DIA

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(Z

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on t

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13. DRILLING

No drilling took place since the acquisition of the Chapais property by DIAGNOS .

14. SAMPLING

No sampling took place during the present phase of exploration by DIAGNOS .

15. SAMPLE PREPARATION

No sample preparation took place during the present phase of exploration by DIAGNOS .

16. DATA VERIFICATION

No data verification took place during the present phase of exploration by DIAGNOS.

17. ADJACENT PROPERTIES

A total of 20 claims are directly adjacent to the property, all of them are located south and east of the current Chapais claims. Land area north and west of the claims remain open for staking. Those 20 claims adjacent to the property are held by five (5) different companies or individuals: 2736 1179 QUEBEC INC, PETER J. HAWLEY, EXPLORATEURS-INNOVATEURS DE QUEBEC INC, G.L. GEOSERVICES INC. and MARC BOUCHARD and may be part of larger claim groups or properties operated by each of the previously mentioned companies or individuals. No information is available to the author on any publicly disclosed exploration works carried out on these claims.

18. MINERAL PROCESSING

No mineral processing took place during the present phase of exploration by DIAGNOS.

19. MINERAL RESOURCES

No mineral resource calculation took place during the present phase of exploration by DIAGNOS.

20. OTHER RELEVANT DATA

The authors are not aware of any other relevant data that could be added to the present report.



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21. INTERPRETATION & CONCLUSIONS

The purpose of this report was to present and assess the Chapais property potential for copper and gold mineralization, in relation with the different zones identified by DIAGNOS as favourable using CARDS prediction system in 2010. Therefore, the CARDS evaluation conducted by DIAGNOS has outlined areas with potential for copper, gold and zinc mineralization. After analyzing the targeted areas, correlations and hypotheses can be made in regards to the nature and relevance of the identified targets. Additional ground/field work should be carried out in order to better evaluate the targets which to this point remain exploratory.

The Chapais property is of value because it includes both a highly prospective region (northern section of the claim block) in a geologically favourable environment and a well worked region (south east section of claim block) that could still benefit from further drill testing in order to validate and extend the known historical mineralization. Furthermore, over 60% of the 132 drill holes located on the current claim block were extremely shallow, 34 never exceeded 100m depth and a further 49 did not exceed 200m.

The Chapais district is extremely rich in Copper, having the highest average ore grade in the Abitibi (2.25% Cu), with lesser gold as well. The district is small geographically but is nonetheless host to deposits of known tonnage, including 4 past producing mines and over a dozen significant gold and base metal showings. To date the only mineralization style of economic value to be discovered is of copper-rich vein type (Opémiska type). Moreover, despite the long mining history in the Chapais district, the district has seen only a modest amount of exploration and many areas remain relatively unexplored. In fact, excellent potential remains to discover new zones of mineralization or extensions of previously discovered mineralized bodies.

A thorough validation of the public domain data on the property should be performed in order to validate and possibly acquire additional information through a better understanding of the historical work previously conducted.

22. RECOMMENDATIONS

Recommendations for the Chapais property consist of a work program comprising two (2) phases, with Phase II conditional upon the results of Phase I.

Phase I:

a) - Ongoing compilation and integration of geological reports, drilling reports, geophysical ground and recent airborne surveys and satellite pictures, including data from adjacent properties.

- Prospecting, mapping and sampling, with particular attention given to those regions highlighted by CARDS as well as untested historical outcrops.

- High resolution geophysical survey (EM) conducted throughout the property.



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b) - A detailed analysis of the acquired Phase Ia information should be performed in order to re-evaluate the mineralogical potential of the property and delineate the appropriate locations and orientations of potential drill holes.

Phase II:

a) - Diamond drilling of targets established in Phase Ib.

b) - Based on the results obtained during the diamond drilling, a decision should be made about proceeding with additional drilling.

The following represent the estimated costs of the recommended program to be used for the project.



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23. REFERENCES

GOUTIER, J., MELANCON, M., 2007, Compilation géologique de la Sous-province de l’Abitibi. Ministère des Ressources naturelles et de la Faune, Québec; échelle 1/500 000

MORIN, R., 1991, Géologie et compilation géologique de la région de Chapais, Ressources Naturelles Canada et le Ministère des Ressources Naturelles du Québec, MM 91 -02, 66 pages.

WATKINS, D.H., RIVERIN, G., 1982, Geology of the Opemiska Copper -Gold deposits at Chapais Quebec, Precambrian sulphide Deposits, R.W. Hutchpor, E.D., Spence and J.M. Franlkin, Association géologique du Canada, Special paper No 25, pages 427 -446.

MRNF GM List

GM 52645 - REPORT ON THE 1993 GEOPHYSICAL SURVEYS AND DRILL PROJECT ON THE KAYLA PROSPECT. 1994, Par HAWLEY, P, CAMPBELL, R A. 138 pages. 7 cartes. 6 microfiches. GM 46158 - RAPPORT GEOLOGIQUE DE LA PARTIE NORD OUEST DE LA PROPRIETE BOURBEAU WEST. 1987, Par CORMIER, J M. 14 pages. 3 cartes. 3 microfiches. GM 43448 - RAPPORT DE FORAGE, PRINTEMPS 1985, CHIBOUG COPPER. 1986, Par VINCENT, R, OUELLET, R, BOISVERT, M, BERUBE, J P. 779 pages. 2 cartes. 19 microfiches. GM 45042 - RAPPORT DES FORAGES EFFECTUES EN 1986, PROPRIETE BOURBEAU OUEST. 1986, Par OUELLET, R, DOIRON, G. 95 pages. 2 microfiches. GM 42156 - REPORT ON MAGNETOMETER AND VLF-EM SURVEYS ON THE BOURBEAU WEST PROJECT. 1985, Par BATE, S J. 115 pages. 10 cartes. 8 microfiches. GM 42852 - REPORT ON MAGNETOMETER AND VLF-EM SURVEYS, BOURBEAU WEST PROJECT. 1985, Par BATE, S. 41 pages. 9 cartes. 7 microfiches. GM 38475 - JOURNAUX DE SONDAGE, PROPRIETE KISKO. 1984, Par BERTRAND, P, BERUBE, J P. 256 pages. 7 cartes. 8 microfiches. GM 38067 - LEVES ELECTROMAGNETIQUE ET MAGNETIQUE, PROJET KISKO. 1981, Par LAVOIE, C. 21 pages. 8 cartes. 3 microfiches. GM 38068 - RAPPORT DE GEOPHYSIQUE, PROPRIETE KISKO EXT. 1981, Par MORISSETTE, P, RIVERIN, G. 5 pages. 1 carte. 1 microfiche. GM 36260 - RAPPORT GEOPHYSIQUE, LEVE ELECTROMAGNETIQUE, KISKO. 1980, Par LAVOIE, C. 8 pages. 2 cartes. 1 microfiche. GM 36433 - DIAMOND DRILL RECORD, A-1 PROPERTY. 1980, Par RIVERIN, G. 3 pages. 1 carte. 1 microfiche. GM 37255 - DIAMOND DRILL RECORD, KISKO PROPERTY. 1980, Par RIVERIN, G. 21 pages. 1 carte. 1 microfiche. GM 33823 - REPORT ON DIAMOND DRILLING, TAILINGS LAKE AREA. 1978, Par RIVERIN,



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G. 32 pages. 3 cartes. 1 microfiche. GM 29824 - REPORT ON DDH AND 7 DDH LOGS. 1974, Par GAGNON, A, NICHOL, M A. 56 pages. 1 carte. 2 microfiches. GM 29867 - REPORT ON ELECTROMAGNETIC SURVEY AND 4 DDH LOGS. 1974, Par CODA, R, GAUDET, A. 16 pages. 6 cartes. 2 microfiches. GM 30797 - DIAMOND DRILL RECORD, ASTORIA PROPERTY. 1974, Par GAGNON, A, NICHOL, M A. 18 pages. 2 cartes. 1 microfiche. GM 28662 - REPORT ON MAGNETIC SURVEY. 1973, Par CODA, R. 4 pages. 3 cartes. 1 microfiche. GM 28786 - REPORT ON ELECTROMAGNETIC SURVEY. 1973, Par NICHOL, M A. 8 pages. 1 carte. 1 microfiche. GM 29265 - REPORT ON MAGNETIC SURVEY WITH 2 LOCATION MAPS. 1973, Par BLANCHET, R. 9 pages. 1 carte. 1 microfiche. GM 27902 - REPORT ON MAGNETIC AND ELECTROMAGNETIC SURVEYS. 1972, Par WOODARD, J A. 6 pages. 2 cartes. 1 microfiche. GM 28232 - 4 DDH LOGS. 1972, Par GAGNON, A, NICHOL, M A. 23 pages. 1 carte. 1 microfiche. GM 28409 - GEOLOGICAL REPORT. 1972, Par NICHOL, M A. 6 pages. 1 carte. 1 microfiche. GM 27177 - DIAMOND DRILL RECORD. 1971, Par GAGNON, A, NICHOL, M A. 48 pages. 2 cartes. 2 microfiches. GM 27982 - 2 JOURNAUX DE SONDAGES. 1971, Par TALBOT, C. 3 pages. 1 microfiche. GM 26046 - MAGNETIC & TURAM ELECTROMAGNETIC SURVEYS. 1970, Par MOREAU, M J. 8 pages. 5 cartes. 2 microfiches. GM 26047 - ELECTROMAGNETIC SURVEY. 1970, Par MOREAU, M J. 6 pages. 1 carte. 1 microfiche. GM 26312 - DIAMOND DRILL RECORD. 1970, Par BONNEVILLE, J P, NICHOL, M A. 51 pages. 2 cartes. 3 microfiches. GM 26481 - DIAMOND DRILL RECORD. 1970, Par GAGNON, A, NICHOL, M A. 26 pages. 1 carte. 1 microfiche. GM 26499 - TURAM ELECTROMAGNETIC AND MAGNETOMETER SURVEY. 1970, Par WOODARD, J A. 7 pages. 4 cartes. 2 microfiches. GM 26567 - DIAMOND DRILL RECORD, ROCKEFELLER AREA. 1970, Par GAGNON, A, NICHOL, M A. 7 pages. 1 carte. 1 microfiche.



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GM 23263 - REPORT ON 1967-68 EXPLORATION PROGRAM, ROCKFELLER OPTION. 1968, Par PROCHNAU, J F. 31 pages. 1 microfiche. GM 20773 - DIAMOND DRILL RECORD. 1967, Par ESPOSITO, B, GAGNON, A. 93 pages. 2 cartes. 3 microfiches. GM 21059 - REPORT ON KISCO OPTION. 1967, Par WINTER, L D S. 9 pages. 1 carte. 1 microfiche. GM 21060 - TURAM, ABEM MINIGUN, MAGNETOMETER SURVEYS ON THE KISCO PROPERTY, TAILINGS POND AREA. 1967, Par WOODARD, J A. 6 pages. 3 cartes. 1 microfiche. GM 21061 - DIAMOND DRILL RECORD, H-32 @ H-40. 1967, Par DESJARDINS, R, ESPOSITO, B, SEMEC, B, SOZANSKI, A, WINTER, S. 34 pages. 1 microfiche. GM 21397 - REPORT ON ELECTROMAGNETIC SURVEY ON ROCKEFELLER SYNDICATE OPTION. 1967, Par MCADAM, J. 6 pages. 1 carte. 2 microfiches. GM 19398 - GEOLOGY OF AREA A. 1966, Par GODIN, R, HASHIMOTO, T, SOZANSKI, A. 9 pages. 2 cartes. 1 microfiche. GM 08994 - REPORT ON MAG SURVEY. 1959, Par GRAHAM, R B. 11 pages. 1 carte. 1 microfiche. GM 07776 - GEOLOGICAL REPORT. 1958, Par GRAHAM, R B, HALLADAY, L B. 16 pages. 1 carte. 1 microfiche. GM 04757-B - 4 JOURNAUX DE SONDAGE ET 1 CROQUIS DE LOCALISATION DES TRAVAUX. 1957, Par GRAVEL, R. 5 pages. 1 microfiche. GM 05143 - GEOLOGICAL REPORT WITH 17 DDH LOGS. 1957, Par BISCHOFF, C T. 22 pages. 2 cartes. 1 microfiche. GM 04095-B - 3 DDH LOGS. 1956, Par KNIGHT, E T, MEIKLE, B K. 11 pages. 1 carte. 1 microfiche. GM 04252-A - REPORT ON MAGNETIC AND RESISTIVITY SURVEYS. 1956, Par SZETU, S S. 17 pages. 1 carte. 1 microfiche. GM 04252-B - REPORT ON 6 DDH LOGS. 1956, Par QUON, D, WILLIAMS, R M. 23 pages. 1 carte. 1 microfiche. GM 04750 - GEOLOGICAL REPORT AND ASSAYS CERTIFICATE. 1956, Par BERGMANN, H J. 11 pages. 1 microfiche. GM 04752 - INFORMATION REPORT. 1956, Par DUGAS, J. 3 pages. 1 microfiche. GM 04754 - RAPPORT D'INFORMATION. 1956, Par DUGAS, J. 5 pages. 1 microfiche.



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GM 04755 - RAPPORT D'INFORMATION. 1956, Par DUGAS, J. 7 pages. 1 microfiche. GM 04756 - INFORMATION REPORT. 1956, Par DUGAS, J. 3 pages. 1 microfiche. GM 04757-A - 5 JOURNAUX DE SONDAGE ET 1 CROQUIS DE LOCALISATION DES TRAVAUX DE SURFACE. 1956, Par GRAVEL, R. 6 pages. 1 microfiche. GM 04758 - EVALUATION REPORT ON THE PREVIOUS WORKS DONE ON THE PROPERTY. 1956, Par GILBERT, J E. 4 pages. 1 microfiche. GM 04759 - REPORT ON ELECTROMAGNETIC SURVEY WITH RESULTS. 1956, Par TIPHANE, M. 2 pages. 1 microfiche. GM 05639 - REPORT ON ELECTROMAGNETIC SURVEY. 1956, Par BISCHOFF, C T. 7 pages. 1 carte. 1 microfiche. GM 05650 - GEOLOGICAL REPORT. 1956, Par BISCHOFF, C T. 7 pages. 1 carte. 1 microfiche. GM 03239-B - 17 DDH LOGS. 1955, Par CRONSILVER, S. 42 pages. 1 carte. 2 microfiches. GM 03362-A - GEOLOGICAL REPORT. 1955, Par MCCUAIG, J A. 10 pages. 1 microfiche. GM 03667 - REPORT ON THE PROPERTY. 1955, Par BISCHOFF, C T. 2 pages. 1 microfiche. GM 03811 - REPORT ON ELECTROMAGNETIC SURVEY AND GEOLOGY. 1955, Par FLANAGAN, J T, MCADAM, J. 4 pages. 1 carte. 1 microfiche. GM 03968 - EM SURVEY. 1955, Par NOWLAN, J P, SUTHERLAND, D B. 8 pages. 6 cartes. 2 microfiches. GM 04095-A - GEOLOGICAL REPORT WITH SOIL SAMPLE RESULTS. 1955, Par MULLAN, A W. 7 pages. 1 carte. 1 microfiche. GM 02678-B - DIAMOND DRILL RECORD, VINEY GROUP. 1954, Par HARRIS, J J. 16 pages. 1 microfiche. GM 03131 - DIAMOND DRILL RECORD. 1954, Par HOWE, R W. 10 pages. 1 microfiche. GM 03238 - REPORT ON GEOCHEMICAL SURVEY. 1954, Par CLIFTON, F T. 8 pages. 1 carte. 1 microfiche. GM 03239-A - REPORT ON ELECTROMAGNETIC SURVEY. 1954, Par CLIFTON, F T. 9 pages. 1 carte. 1 microfiche. GM 04753 - GEOLOGICAL REPORT, LEGAULT CLAIMS. 1954, Par . 5 pages. 1 microfiche. GM 01733-A - REPORT ON THE PROPERTY. 1952, Par BISCHOFF, C T. 2 pages. 1 microfiche.



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GM 01733-B - REPORT OF DIAMOND DRILLING. 1952, Par BISCHOFF, C T. 16 pages. 3 cartes. 1 microfiche. GM 01757 - A REPORT ON THE OPEMISKA PROPERTY. 1952, Par MURDOCH, W P. 5 pages. 5 cartes. 2 microfiches. GM 01769 - REPORT ON MAGNETOMETRIC SURVEY. 1952, Par BISCHOFF, C T. 7 pages. 2 cartes. 1 microfiche. GM 02081-A - REPORT ON THE LEVY TOWNSHIP PROPERTY. 1952, Par MCCUAIG, J A. 24 pages. 2 cartes. 1 microfiche. GM 02081-B - REPORT ON MAGNETIC AND RESISTIVITY SURVEYS. 1952, Par MCCANNELL, J D. 23 pages. 2 cartes. 1 microfiche. GM 02253-A - A REPORT ON THE EXPLORATION OF THE OPEMISKA PROPERTY. 1952, Par MURDOCH, W P. 5 pages. 1 carte. 1 microfiche. GM 02253-B - DIAMOND DRILL RECORD, OPEMISKA PROPERTY. 1952, Par MURDOCH, W P. 55 pages. 2 microfiches. GM 02254 - A REPORT ON A GEOPHYSICAL SURVEY. 1952, Par MURDOCH, W P. 3 pages. 1 carte. 1 microfiche. GM 00618 - GEO-MAGNETIC SURVEY OF AREA MINES LIMITED PROPERTY. 1950, Par JOUBIN, F. 10 pages. 2 cartes. 1 microfiche. GM 00863 - GEOLOGICAL REPORT. 1950, Par JOUBIN, F. 5 pages. 1 microfiche. GM 01101 - REPORT ON THE PROPERTY. 1950, Par JOHN RAE INVESTMENTS INC. 2 pages. 1 microfiche. GM 01163 - GEOPHYSICAL SURVEY REPORT, YOUNG CHIBOUGAMAU-OPEMISKA GROUP. 1950, Par JOUBIN, F. 8 pages. 1 carte. 1 microfiche. GM 03556 - GEOLOGICAL REPORT. 1929, Par RETTY, J A. 4 pages. 1 carte. 1 microfiche.



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24. DATE AND SIGNATURE

TECHNICAL REPORT ON THE CHAPAIS PROPERTY

Prepared for

DIAGNOS INC. 7005 Taschereau Blvd

Brossard, Quebec Canada, J4Z 1A7

This March 18, 2011

Andre Ciesielski, P. Geol.



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25. ADDITIONAL REQUIREMENTS FOR TECHNICAL REPORTS ON DEVELOPMENT

PROPERTIES AND PRODUCTION PROPERTIES

At this stage, no additional requirements need to be added.

26. ILLUSTRATIONS

At this stage, no illustrations need to be added.



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27. CERTIFICATE OF AUTHOR

I, Andre Ciesielski, P. Geol. do hereby certify that :

1. I am a Canadian citizen, living at 1777 Du Manoir Av., Montréal, H2V 1B7, Qc, Canada ; telephone : 1 514 544 9741; e-mail : [email protected]

2. I have a bachelor degree in geology from Univers ité de Montréal (BSc. geol) a DEA and a Doctorat de 3e cycle from "Université Pierre et Marie Curie" (Paris VI) (DEA, and DSc. geol).

3. I am a member of "L’Ordre des Géologues du Québec" under # 514. 4. I have worked as a geologist for a total of 30 years since my graduation from

university. I worked for the Geological Survey of Canada for 17 years. I have participated or consulted in exploration programs for gold, base metals, uranium, diamonds, and nickel. I have worked in Canada, Mexico, and Africa. I have performed geological works and made numerous field trips in the Abitibi belt.

5. I have read the definition of "qualified person" set out in National Instrument 43 -101 (NI 43-101) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a "qualified person" for the purposes of NI 43 -101.

6. I am responsible for the preparation of the Report titled "Technical Report on the Chapais Property ". I have visited the property on August 18th and 19th, 2010 to complete this report.

7. I have not had prior involvement with the property that is the subject of this Technical Report.

8. As of the date of the certificate and to the best of my knowledge, the information contained in this Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading. I certify that I thoroughly read and revised the report. I am not aware of any omission or misquotes that could mislead the reader.

9. I am independent of the issuer applying all of the tests in Section 1.4 of National Instrument 43-101.

10. I have read National Instrument 43-101 and Form 43-101F1 and the technical Report has been prepared in compliance with that inst rument and form.

11. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them for regulatory purposes, including electronic publication in the public company files or on their websites a ccessible by the public, of the Technical Report.

This March 18, 2011

Andre Ciesielski, P. Geol.

mailto:[email protected]



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Report Title: TECHNICAL REPORT ON THE CHAPAIS PROPERTY I, Jean-Philippe Mai, residing in St-Bruno-de-Montarville, Québec, Canada do hereby certify that:

1. I am Project Manager with the firm of DIAGNOS inc. with an office at Suite 340, 7005, Taschereau Boulevard, Brossard, Québec, Canada;

2. I am a graduate of Université du Québec à Montréal (UQAM), Montréal, Québec with a B.Sc. in Geology in 2003. I have participated in exploration programs for gold, base metals and coal in Canada (Québec, Ontario), South America (Guyana), Australia and in the Dominican Republic.

3. I am a member in good standing of l’Ordre des Géologues du Québec (#1170). 4. I am an employee of and hold stocks options in DIAGNOS inc., vendor of the

Chapais property claims and hence not independent of the issuer; 5. I have assisted in the preparation of this report, but I have not personally visited the

project area; 6. The current report is based on compilation of historical data in the public domain

carried out by employees of DIAGNOS inc. under my supervision using Exploration Best Practices Guidelines;

7. I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and to any publication of the Technical Report by them for regulatory purposes, including electronic publication in the public company files or on their websites accessible by the public.

Dated March 18, 2011 Montréal, Québec, Canada

___________________________________________

Jean-Philippe Mai B.Sc., P.Geo.

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