Assessment Report on the Hoyle North Project · 2017. 1. 16. · The Hoyle Northproject is locate in the Timmins aread Porcupine, Mining Division, Ontario. Vehicle access is by following

Assessment Report on the Hoyle North

Project for: Gold Dynamics Corp.

David Jamieson P.Geo.

8/28/2012

This report provides technical information for assessment purposes, based on a soil sampling program performed in the spring of 2012. The claims are owned by GoldDynamics Corp in the Timmins area of the Porcupine Mining Division.

D.R. Jamieson Geological Consulting Ltd. Page 1

TABLE OF CONTENTS INTRODUCTION AND GENERAL INFORMATION .................................................................................... 2

PROPERTY LOCATION, ACCESS, AND DESCRIPTION .............................................................................. 2

QUATERNARY GEOLOGY ....................................................................................................................... 3

BEDROCK AND ECONOMIC GEOLOGY ................................................................................................... 4

PROPERTY GEOLOGY AND HISTORY ...................................................................................................... 8

SOIL SAMPLING PROGRAM ................................................................................................................... 9

DISCUSSION OF RESULTS .................................................................................................................... 11

CONCLUSIONS ..................................................................................................................................... 12

RECOMMENDATIONS.......................................................................................................................... 13

REFERENCES ........................................................................................................................................ 14

Certificate Of Qualifications ................................................................................................................ 15

Figure 1 Location Map………………….…………………………………………………………………………..5

Figure 2 Claim Map……………………………………………………………………………………………………6

Figure 3 Geology map…………………..…………………………………………………………………………..7

Figure 4 Sample location grid………………………………………………………………………………….10

APPENDICES:

Appendix i Activation Labs Aqua Regia Certificates of Analysis pp 16-34

Appendix ii Proportionate dot plots of Aqua Regia B horizon soil samples pp

34-42

SUPPLEMENTAL REPORT:

SGH-SOIL GAS HYDROCARBON Predictive Geochemistry by Dale Sutherland of

Activation Laboratories Ltd.


INTRODUCTION AND GENERAL INFORMATION

Gold Dynamics Corp. holds an option to earn 100% of 3 contiguous claims in NTS 42A/11, Hoyle

township, near Timmins, Ontario. The claim block totals 32 units totaling 512 hectares, and is

known as the Hoyle North property. The mining claims P 3016956, 3016957, and 4240360 are

held 50% by David Meunier and 50% by the executors/trustees of Christopher Pegg’s estate.

The main exploration focus is gold or base metal mineralization associated with Tisdale group

metavolcanics and metasediments. The property is situated approximately four kilometers north

of a trend of gold mines that include Hoyle Pond, Owl Creek, Bell Creek and Marhill. The

property and surrounding area have very little outcrop exposure and exploration has been limited

to overburden drilling, geophysics and sporadic diamond drilling of EM anomalies.

In 2007, Northern Gold Mining Inc. controlled the claim block and commissioned an I.P. survey

over claim 3016957. Two multi-line chargeability/conductivity anomalies were detected, HN-1

and HN-2. HN-1 coincides with the reported location of a historic shaft, and both IP anomalies

trend parallel to the interpreted stratigraphic grain in the area.

In the spring of 2012, Gold Dynamics Corp completed a soil sampling program over the I.P.

anomalies. These samples were dominantly lower A to upper B horizon mineral soil taken below

the organic layer using an auger. The samples were submitted for both aqua regia multielement

geochemistry and Soil Gas Hydrocarbon analysis. This report provides the technical data for the

soil sampling program.

PROPERTY LOCATION, ACCESS, AND DESCRIPTION

The Hoyle North project is located in the Timmins area, Porcupine Mining Division, Ontario.

Vehicle access is by following highway 101 from highway 11 toward Timmins. At Hoyle, a north

turn on Fredrick House Lake Road leads immediately to a series of service and logging roads that

provide access to the west end of the property. Winter logging roads and ATV trails provide

limited access to the rest of the property. Access by canoe via the Porcupine River is also

possible. Access to the east side of the property via the Xstrata Metallurgical Plant is assumed to

be possible with permission from Xstrata, as well as crossing of the Porcupine River. Some

difficulty was encountered during the soil sampling program due to trail access being cut off by

beaver dam activity and use of an ARGO all-terrain vehicle became necessary.

The claims P 3016956, 3016957, and 4240360 mining rights are held 50% by David Meunier and

50% by the executors/trustees of Christopher Pegg’s estate. Surface rights are held by the


crown. The claims are located on Con IV Lots 6, 7, 8 and the north half of Lot 5, and well as the

south half of Con V Lot 6.

This area of is typified by extensive spruce bush mixed with some poplar and other species.

Glaciations have created a generally thick clay belt (glacial Lake Ojibway-Barlow) with little relief

and a mosaic of swamp, muskeg and flat spruce uplands. The property itself, is relatively low,

with black spruce muskeg to slight upland conditions on the south portion of the property, and

wetter conditions generally to the north on claim 3016957.

The climate is typical of northern boreal forest, with sub-zero temperatures between November

and April, and hot, dry summers between June and September. The early spring and fall periods

are generally wet and not the most optimal time to access the property. Access is favourable in

winter months when winter roads and swamps can be utilized.

The Northern Gold I.P. grid was located by Yvan Veronneau of Gogama, Ontario in early March

2012, when the area was still snow covered and swamps were frozen. The access route was

chosen at that time to enable possible drill rig access. Some soil sampling was attempted in April

using an Argo due to flooding conditions, however some frost was still being encountered making

sampling difficult. The soil sampling work was completed in May, again using an Argo for access.

QUATERNARY GEOLOGY

The following is exerpted from Paulen et al. (2006): The Timmins area lies within the Abitibi

Uplands of the James Bay Physiographic Region of the Canadian Shield. The Upland surface is

characterized by low ridges and knobs or Archean rock, which are predominantly covered by flat-

lying glacial sediments and large expanses of organic terrain. The thick cover of glaciolacustrine

sediments gives rise to the regions’s informal name, the “Clay Belt”. The average elevation is

300m above sea level and there is little variation in relief. Bedrock has limited exposure except in

the sourtheast corner near Timmins and several small hills in the Kamiskotia Lake area.

The immediate area of the Hoyle property is covered by a glaciolacustrine sediments derived

from glacial lake Ojibway and as well as recent organic material (muskeg). The Cochrane till

does not appear to have advanced as far south as the Hoyle property. Thus it would be expected


that the stratigraphic sequence on the Hoyle property would consist of bedrock, overlain by

several metres of Matheson till, and finally metres to 10’s of meters of glaciolacustrine clay, silt,

sand and gravel.

In terms of geochemical exploration, this type of terrain (thick lacustrine cover) has posed

difficulties in developing methodologies for detecting metal anomalies in bedrock. Research over

the last 15 years has provided evidence that it is possible to detect bedrock geochemical signals

through more than 30 metres of glacial overburden. The process is related to self potential and

redox processes that create reduced chimneys within the thick Quaternary cover above

mineralized bedrock. In addition, linkages have been established between these redox reactions,

bacteria, and hydrocarbons in soil gas (Hamilton, 2004)

BEDROCK AND ECONOMIC GEOLOGY

The Hoyle property is located a few kilometers north of a gold mineralized trend that hosts three

past producing gold mines: Hoyle Pond, Owl Creek and Bell Creek. Gold in all three mines is

associated with carbonatization, faulting, quartz veining and importantly, graphitic faults or

sedimentary interflows. Volcanic rocks of the lower Tisdale group appear to be correlative with

greywacke dominated metasediments of the Hoyle assemblage with conformable to sheared

contacts between the volcanic and sedimentary units.

Bedding or layer parallel foliation is weakly to moderately developed through the rocks in the

area. A northeast foliation between 045 and 060 degrees overprints and offsets this earlier

foliation. The northeast foliation is known to localize much of the high grade gold mineralization

in the map area. An east trending shear fabric overprints and is well developed within the Tisdale

assemblage in the southern part of Hoyle Township, localized within narrow shear zones. Gold

mineralization is associated with this fabric at the Bell Creek gold deposit and may have provided

some structural control on mineralization at the Owl Creek and Hole Pond gold deposits. This

fabric may be related to the Destor-Porcupine fault or a related splay (Berger, 1992). Late north

to northwest trending brittle faults appear to have predominantly vertical movement, and appear

in some cases to have offset mineralization within the local gold deposits.

Gold mineralization from the Hoyle Pond, Owl Creek and Bell Creek mines are hosted by the

Tisdale assemblage within quartz veins and along wall rock/quartz vein margins. High grade gold

mineralization occurs within quartz veins associated with alteration zones composed of

carbonate, graphitic and amorphous carbon, fine-grained pyrite, and sericite. Trace elements

associated with gold are arsenic, bismuth and tungsten (Berger, 1992).


It is important to note several of the zones at the above mines were discovered by drilling EM or

I.P. conductors which likely reflected the graphitic host rocks (mudstones and wackes) or

graphitic faults. Graphitic units often mark sediment volcanic contacts and can be the locus of

deformation and mineralization.

FIGURE 1 - LOCATION MAP; LARGE PURPLE STAR IS THE LOCATION OF THE HOYLE NORTH PROJECT;

GOOGLE EARTH BASE; NORTH IS TO THE TOP OF THE PAGE


FIGURE 2- CLAIM MAP; LIGHT YELLOW SHADING OUTLINES THE HOYLE NORTH CLAIM BLOCK; THE GRID

LINES AND STATION LOCATIONS OVER CLAIM 3016957 IS THE LOCATION OF THE SOIL SAMPLING

PROGRAM.


FIGURE 3- CLAIM LOCATION WITHIN REGIONAL GEOLOGY IN TIMMINS AREA; HOYLE NORTH CLAIM BLOCK

OUTLINED IN RED WITHIN HOYLE TOWNSHIP; GREY UNITS ARE METASEDIMENTS; GREEN UNITS ARE MAFIC

VOLCANICS; YELLOW DIAMONDS ARE GOLD DEPOSITS AND MAJOR GOLD SHOWINGS IN THE AREA.


PROPERTY GEOLOGY AND HISTORY

The property has seen limited exploration due to the lack of outcrop in the area. Several

companies completed geophysical surveys starting from the early 1960’s, including HEM by

Globe Exploration, a magnetic survey by Consolidated Manitoba and Kerr Addison Mines, and

VLF-DM surveys by Dawson Eldorado Mines Ltd. Kerr Addison drilled three holes in 1983-1984

on Con IV, Lots 7 and 8. No assays were provided. Depth to bedrock in this area was about 15

metres, and the rock type identified was dominantly greywacke with minor quartz veining locally.

Asarco Exploration acquired ground in the area in 1985 and completed reverse circulation drilling

in 1986 as part of a reconnaissance till sampling program to test for new areas of gold

mineralization in the Timmins area. A total of six holes were completed as a fence along the

boundary between Con IV and Con III on Lots 7 and 8, Hoyle township. This fence boundary

also represents the current southerly boundary of the Hoyle North property. No gold grain results

were published in this report, however the bedrock chips indicated that this area is underlain by

mafic volcanics. Thick till, sand and gravel overlay the bedrock, covered by a clay and silt

horizon of varying thickness. Depth to bedrock was generally on the order of 30 metres.

There was additional reverse circulation drilling done by J.T. Pollock, south of the Kerr Addison

drilling, however no report could be located in the digital MNDM files.

There is very little additional information on the geology of the Hoyle North claims. Preliminary

results from a recent VTEM/Magnetic survey done by Gold Dynamics Corp clearly show two

northwest trending dikes on the eastern portion of the property. The total field increases across

the dikes to the northeast, possibly indicating juxtaposition of magnetically distinct blocks across

a fault zone. The rocks underlying the higher magnetic signature areas are inferred to be mafic to

possibly ultramafic volcanics of the Tisdale assemblage. The remainder of the property shows a

relatively low and flat total field pattern, indicative of metasedimentary rocks in the area. Weak,

but coherent magnetic high features within the interpreted metasedimentary sequence may

represent volcanic rocks or small intrusives/dike of intermediate to mafic composition.


SOIL SAMPLING PROGRAM

A total of 101 “B” horizon soil samples were taken on an existing geophysical grid. The samples

were taken in the spring of 2012 by prospector Yvan Veronneau, with supervision and assistance

from Dave Meunier, the vendor of the property and Gary Kirk, representing Gold Dynamics Corp.

The sampling was done with an auger to get through the organic peat layer. The soil layer

sampled was deemed to be just below the A horizon. No individual description of the samples

was recorded, but in general the material taken was described as grey to light brown consisting of

a mixture of clay silt and sand. The samples were generally dry, although the samples on the

north portion of the grid tended to have more moisture.

These samples were submitted to Activation Labs, in Ancaster, Ontario, for trace element

analysis using Ultratrace 1 with an aqua regia digestion which is a partial but relatively strong

multi-element extraction. Additional analysis using Soil Gas Hydrocarbon techniques was

discussed by the writer with Dale Sutherland at Activation Labs and the samples were then

analyzed for SGH in mid September 2012.

From the description of the sampling technique it would appear that the samples were taken

consistently from the upper “B”/lower “A” horizon. This would suggest that the samples would

also be amenable to partial extractions such as MMI or other selective leaches. The SGH

method uses hydrocarbon signatures generated by bacteria and is relatively forgiving in terms of

where in the soil/organic horizons the sample is taken, with the rule of thumb being to take a

sample of what is available if the horizon of interest is missing.

Work done by Hamilton, suggest that the upper “B”, shallowest “Ae” horizon, shallowest mineral

soil, or the so called MMI horizon are more effective for various leaches, partial extractions than

the “B” or lower ” B” horizons.

The following figure shows the location of the soil samples taken on the existing IP grid, along with the axes of two IP anomalies HN-1 and HN-2. The possible location of a historic shaft is shown as a purple shaft symbol.


DISCUSSION OF RESULTS

The geochemical signature in transported surfical sediments (in this case glaciolacustrine sands,

silts and clays) above deeply buried deposits is complicated by the uncertainty of the

mechanisms that control migration of various elements from bedrock to surface through thick

overburden, of often low permeability. Studies over known deposits ( Cross Lake deposit, 50 km

SE of Timmins) have helped to provide new tools to interpret geochemical sampling results and

additional protocols to aid in further prioritizing anomalies.

The geochemical signal in sediments close to surface due to buried bedrock mineralization

results from hydromorphic transport of metal ions from below. These transported metals are

weakly bound to the mineral matrix, as opposed to the metals available in the glacial material

itself. The hydromophically bound metals signature needs to be separated from the metals

originally contained within the glacial deposit. In summary, in deep overburden, it becomes

necessary to use various strengths of chemical leaches to attack only the metals derived from the

mineralized bedrock deposit. It may often require more detailed sampling passes, as well as ph

measurements, the evaluation of non-ore elements such as Ca, Sr, and REE’s. Recently

developed laboratory techniques examine hydrocarbons generated by bacteria in the redox/self

potential chimneys that move the metals to surface (Soil Gas Hydrocarbons).

The presence of the Kidd Creek Metallurgical Complex south east of the Hoyle North project must

be considered in any geochemical survey for this area. Anthromorphic contamination from air

emissions or ground water run off has not been examined for this report, and is not considered an

issue at this point. The use of SGH analysis should be unaffected by this possibility.

It is important to note the role of the metal scavenging effect of manganese and iron oxides. From

Coker (2007): Hydrous iron and manganese oxides are almost ubiquitous in soils and sediments

that are not strongly reducing. They occur as coatings on silicate grains and rock fragments, and

as descrete particles. Hydrous manganese oxides are often extremely fine grained and have

extremely high adsorption capacities and high adsorption affinities for heavy metals. Adsorption

by manganese and iron oxides (and solid organic matter) is in fact thought to have a dominant

influence on trace metal distribution and dispersion in the supergene aqueous environment.

For the current survey, it was noted that proportionate dot plots of Mn and Fe more or less

mirrored base metals Zn, Cu, Pb, as well as As, Ag. This suggests that Mn has scavenged

metals either from the bulk compostion of the overburden or from metals transported from

bedrock below. Selective leachs such as an enzyme leach or hydroxylamine leach which attack

the manganese coatings that can scavange metals from soil gas, can be effective in helping to

determine a bedrock source.


CONCLUSIONS

The location of the Hoyle North claim block is proximal to a number of past producing and

currently developing gold mines. The potential for gold-bearing structures through this area has

been difficult to assess due to the presence of thick overburden. The use of I.P. and newer deep

penetrating geophysic may provide the means for mapping out additional gold systems in the

area north of Timmins. The use of modern geochemistry in the Timmins clay belt has been

recently shown to be effective in helping to locate buried mineralization, but the newer

methodologies require increased time, diligence and expense than previous methods that were

effective in areas with thin overburden.

Historic reverse circulation done in the area provided limited information, as some of the surveys

could not be located in the digital MNDM database, or in some cases indicator mineral and assay

information was not included in the filings.

The soil sampling geochemistry generated from the aqua regia digestion of the B horizon mineral

was inconclusive. Many of the gold assays were below detection limit. Elevated gold values did

cluster on the east side of anomaly HN-1, close to the estimated position of the historical shaft,

but is not considered by the writer to be a coherent anomaly. A gold pathfinder plot was

constructed with a simple additive expression of Au, As, Ag, and Mo values. This did emphasize

an area east of the shaft on the east claim boundary. This area is on strike with the I.P. anomaly

HN-1, but the line was not read with I.P. due poor access along the Porcupine River.

The base metal pattern seemed to reflect the scavenging of metals by Mn over parts of the area

sampled. It is also appears there may be some line bias with either the sampling or analysis. It is

not clear whether the Mn related anomalies are related to buried mineralization or variations in

the ph or depth of sample taken. Quality control samples and randomizing the sample analysis

sequence could solve this issue. This could be done both to samples currently in the lab in order

to add value to the work already done or to additional samples taken in the field at a later time.

Selective leaches could augment the aqua regia data to provide more coherent anomalies.

The SGH data appears to have located a coherent redox zone, as well as an apical gold anomaly

on the west side of the grid. Further sampling is required west of the current grid to define this

anomaly further, but the anomaly appears at this point to be high quality and coincides with the

north part of IP anomaly HN-1, or the south part of IP anomaly HN-2. The reader is referred to

the attached report by Dale Sutherland of Activation Laboratories Ltd.


RECOMMENDATIONS

• Additional compilation of work done in the area needs to be completed, using the files in

Sudbury and the resident geologist office in Timmins to search for data. The recent

VTEM/magnetic survey flown for Gold Dynamics Corp by Geotech, should be integrated

into this compilation.

• Additional soil samples should be taken for SGH, MMI and/or other partial extraction

procedures over the HC-1 and HC-2 I.P. anomalies to provide additional detail, quality

control, more complete coverage and a comparison of geochemical methodology. A late

summer program could possibly allow for sampling of areas that were too wet to access

in the spring. Several horizons should be taken during a resampling effort, including Ae,

upper B, and MMI. Descriptive notes and sample duplicates should be taken, during the

survey. Additional line cutting and soil sampling west of the current grid is necessary to

follow-up on the SGH target outlined. (See also recommendations in Sutherland report)

• The shaft and any muck piles in the shaft area should be located and sampled to

determine if this is the cause of weak gold B horizon aqua regia gold anomalies on lines

1+00W and 0+00W.


REFERENCES

Berger, B.R., 1992: Geology of Hoyle and Gowan townships, District of Cochrane; Ontario Geological Survey, Open File Report 5833, 99p.

Coker, W.B., 2007: Workshop 2: Exploraton Geochemistry- Basic Principles and Concepts in Exploration07, Exploration in the new Millennium 5th Decennial International Conference on Mineral Exploration, Toronto, Canada,The Association of Applied Geochemists.

Hamilton, S.M., 2000: Spontaneous potentials and electrochemical cells. In:Hale M. (ed), Geochemical Remote Sensing of the Subsurface. Handbook of Exploration Geochemistry, Elsevier, Amsterdam, 6, 81-119.

Hamilton, S.M., Cameron, E.M.C., McClenaghan, M.B. and Hall, G.E.M., 2004. Redox, pH and SP variation over mineralization in thick glacial overburden (II): field investigation at Cross Lake VMS property. Geochemistry: Exploration, Environment, Analysis, 4, 45-58.

Robinson, S.D., 1989: DMBW report on Hoyle and Murphy Township programs for Dejour Mines Ltd., OMIP OM88-5-C-050, Digital Assessment files MNDM 42A11SE0053.

Sutherland, D.,2012: SGH-SOIL GAS HYDROCARBON Predictive Geochemistry for Gold Dynamics Corp. “Hoyle North Survey”


CERTI FI CAT E OF QU A LI FI CA TION S

David R. Jamieson is a professional geoscientist (APGO practicing member 1843) in Ontario, and has provided geological consulting services to the mineral exploration industry for over 27 years, the last 15 years as a principal in D.R. Jamieson Geological Consulting Ltd. He has specialized in diamond drill program support and supervision, alluvial and glacial sediment sampling design and implementation, geological mapping, geological compilation/GIS services, as well as design and management of multi-phase mineral exploration programs for gold, base metals, and diamonds.

Upon graduation from the University of Waterloo, in Ontario, Canada in 1984, with a B.Sc., David worked on a contract basis with UMEX (base metals), Silver Lake Resources (gold, silver), Stewart Lake Resources (graphite), Geological Survey of Canada (zinc), Hardrock Extension/Roxmark Ltd. (gold) and spent several years working with Wayne Johnson (Target Exploration) on gold exploration programs in the Northwest Territories, Canada for Aber Resources, Sikaman Gold, Borealis Exploration, and Stratabound Resources.

From 1991 to 1998, David provide geological consulting services to the Agnico Group of companies through Hubacheck Consulting, mainly in the Abitibi Greenstone Belt in Ontario and Quebec, Canada. Work ranged from project generation (diamonds) to underground development of the Victoria Creek Gold Project and underground drilling at the Goldex Project in Kirkland Lake, Ontario and Val D’Or Quebec respectively.

From 1998 to the present, David has continued to consult to the Hubacheck Group, along with a number of other junior mining companies. In 2004 he was involved in the underground exploration/pre-production at the Richmont Mining Island Gold Project in Wawa, Ontario. David then went on to manage projects for Intrepid Mining, Platinex Inc., and Goldeye Exploration. He is currently V.P. Exploration for Tiktaliik Gold Corp. and continues to consult to a number of exploration groups.

David has been a member of the Prospectors and Developers Association for 23 years and has been a member of the CIMM, the Ontario Prospectors Association and the Southern Ontario Prospectors Association.

David Jamieson currently resides at 555 Maniece Ave. Peterborough, Ontario, Canada K9J 6X9.

I certify that the above statements of qualifications are accurate and true.

Signed

“David Jamieson”

__________________________________________


Appendix i Activation Labs Aqua Regia Certificates of Analysis


Appendix ii Proportionate Dot Plots of Aqua Regia B horizon soil samples


INTRODUCTION AND GENERAL INFORMATIONPROPERTY LOCATION, ACCESS, AND DESCRIPTIONQUATERNARY GEOLOGYBEDROCK AND ECONOMIC GEOLOGYPROPERTY GEOLOGY AND HISTORYSOIL SAMPLING PROGRAMDISCUSSION OF RESULTSCONCLUSIONSRECOMMENDATIONSREFERENCESCertificate Of Qualifications

Assessment Report on the Hoyle North Project · 2017. 1. 16. · The Hoyle Northproject is locate in the Timmins aread Porcupine, Mining Division, Ontario. Vehicle access is by following

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