GEOPHYSICAL REPORT on the ZIP 1 MINERAL CLAIM ATLIN M.D.

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1 ., GEOPHYSICAL REPORT on the ZIP 1 MINERAL CLAIM ATLIN M.D. N.T.S. 1040/5E Long ' August Falconbridge Nickel Mines Limited. Vancouver, B. C. October, 1980 B. W. Downing.

2 TABLE OF CONTENTS 1. INTRODUCTION GEOLOGY VLF - EM 16 SURVEY VLF Station VLF Station MAGNETOMETER SURVEY 6 Page Figure 1. Claim Map 2 Figure 2. Location Yap 3 Figure GP-1 VLF Station 18.6, Data... Yap Pocket Figure GP-2 VLF Station 17.8, Data... Figure GP-3 VLF Station 18.6, Contoured... Figure GP-4 VLF Station 17.8, Contoured....b I1 11 II 4 Figure GP-5 Magnetometer Data Figure GP-6 Magnetometer Data, Contoured... I1... Appendix 1. Statement of Expenses 7... Appendix 2. Statement of Qualifications 8

3 L~ 7-1- GEOPHYSICAL REPORT ZIP 1 MINERAL CLAI?!. 1. INTRODUCTION The Zip 1 mineral claim ( Figure 2 ), occurs approximately 180 km southwest from Watson Lake, Yukon, in the Atsutla Range south of Jennings River, ( Figure 1 ). Topographically, the claim covers a portion of high hills above timberline and a narrow low-lying valley. Access is either by helicopter from Watson Lake or float plane to Aconitum Lake approximately four miles north of the claim. Approximately 9000qetreq of line were picketed and 3500 metresof line chained and flagged, at 25 meter intervals. This grid is part of a longer grid that was done for other claims ( August, Ben, CD, Zip 2-6 and Zip 8 ) which are submitted under a separate assessment report. The geophysical survey was conducted by S. Presunka of Presunka Geophysical Explorations Ltd. 2. GEOLOGY Very little outcrop occurs within the claim ( approximately 5% of the total area ). The claim area lies within the Kedahda formation which is commised of biotite hormfelsecl sediment< ( chert, argillite, wackes ) of Carboniferous to Permian age ( G.S.C. map , Jennings River ). Average strike of bedding is 1400 dipping 60 west.

4 INDEX MAP BRITISH COLUMBIA I N I sp Miles yl 100 l?(

5 / 'ALCONBRIDGE NICKEL MINES LTD. 'ROPERTY: Diohor - Kannody Option ij OCATION: Janninmo Rlrar Arao B.C. 'YPt OF MAC: Ciolno Laootian IRAWN BY : G.T. I 0 I 2 Km SCALE : It N.T.S. NO.: Fie. N0.:04*-.0-2

6 VLF - EM 16 SURVEY The VLF readings were taken at 25 meter intervals along the grid lines with additional readings taken over anomalous zones. Two readings were taken at each station corresponding to VLF stations 18.6 ( Jim Creek, Washington ) and 17.8 ( Maine ). The results are plotted on Figure GP-1 and GP-2. Station 17.8 is a much less reliable source of information as it is approximately parallel to the main geological trend of the area and as such does not respond very well ( i.e. low readings, background noise >. The inphase readings are contoured at 10% intervals. The inphase and quadrature readings on the regional lines ( chain/flagged lines ) are profiled. A compilation of contoured and profiled values are shown on Figures GP-3 and GP-4. Geophysical equipment used was two Ronka EM-16 units, serial numbers 2 and VLF STATION 18.6 Two short conductors and the end of one long conductor ( C ) occur in the detailed grid area. Three conductors, F, H and J occur along the regional grid lines. Conductor C is a continuation of the anomaly originating in the CD claim on line 12S/020E. This conductor could be considered a priority since the quadrature results are indicative of sulphide mineralization. The F conductor strikes in a northwest - southeast direction extending from line 10N to 0 at 1050E. The cross-over on line SN/1050E is on outcrop where mineralized ( pyrite ) shale is

7 -5 - exposed. There is a sufficient amount of mineralization to explain this conductor. The southeast extension of this conductor continues beyond line 0 to the south, ( not shown due to the lake ). Conductor H located on llne 15S/1200E strikes at 150 to line 19S/1075E. This conductor is close to surface on line 19s and should carry sufficient amount of sulphides (u 10% ). The southeast extension of this conductor possibly extends to line 24s as a series of closed spaced en echelon conductors and fades out at line 25s. The J conductor on lines 24 and 25s at 550E is weak because of the depth of the conductor, approximately 100 metres. 3.2 VLF STATION 17.8 Three conductors are present, A-A, B-B and C-C having completely different orientations. Conductor A extends from line 20S/50W to line 22S/200Y striking at 160' Conductor B starts on line 24S/700W ending at line 26S/20OW striking at Conductors C-1 and C-2 are parallel extending from line 21S/350 & 400W to 24S/330 G 380W respectively striking at 130'. These conductors occur in a glacial overburdened area where numerous faults are presumed from geological mapping.

8 4. MAGNETOMETER SURVEY The camp base station was located approximately 50 meters north of the camp site. The total magnetic field established on July 8 was gammas. The corrected magnetic base stations were established along the base line for diurnal control which was about 40 minutes. Magnetometer readings were taken every 25 meters with additional readings taken over the VLF conductors. The corrected readings are plotted and contoured at 50 gamma intervals on Figures GP-5 and GP-6. The background magnetic reading is gammas. Magnetometer readings are low with no significant highs. An apparent change in magnetic structure is evident from the contours from lines 22 to 25s which parallels VLF conductor B-B. 5. SUMMARY Most of the VLF conductors are caused by either weakly mineralized shale beds or faults. No significantly anomalous conductor is present and no further work is recommended.

9 -7- APPENDIX 1 STATEMENT 9F EXPENSES Salaries [ Grid Work I A. YcArthur 3 50/day D. Travers-Smith 3 45/day Board 3 people - 9 davs (3 $18.00/ Man/day 162. OQ Fli sc each 54. on Report Preparation Drafting 1 day Writing/ typing etc, Total 1,651.OO

10 APPENDIX 2 FALCONBRIDGE NICKEL MINES LIMITED th Street, Delta, B.C., Canada V4K 3N3 Tel. (604) Telex October 3, 1980 The Chief Mining Recorder Dept. Energy, Mines and Petroleum Resources 411, Douglas Building Victoria, B.C. V8V 1x4 Dear Sir: The EM-16 and magnetometer surveys were carried out by S. Presunka of Presunka Geophysical Exploration Limited of Vancouver, who has worked for numerous mining companies, including Falconbridge, over a period of 25 years. He is a specialist in the use of VLF equipment. I, B.W.Downing, am a graduate of Queen's University (B.Sc.) and of the University of Toronto (M.Sc.) and am a member in good standing of the Geological Association of Canada. Yours truly BWD :pe B.W.Downing

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