2 222 30 Bulk Sample at the Markes Zone Jacobson Township Goudreau-Lochalsh area NE Ontario, Canada Leased Claim # G500204 RECEIVI OCT 1 o /uOI GEOSCIENCE ASSESSMENT OFFICE by qualified persons fulfilling all requirements for assessment credits. have been met. the size of the ore down to minus six inches. then returned to Pele during December, 2000. writer or Al Shefsky, President of Pele Mountain Resources Inc. at (416) 368- Resoectfully submitted Paul-Claude Delisle, B.SC., FGAC Geologist 42C08SW2021 2.22230 JACOBSON 010
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2 222 30
Bulk Sample at the Markes ZoneJacobson Township
Goudreau-Lochalsh areaNE Ontario, Canada
Leased Claim # G500204
RECEIVIOCT 1 o /uOI
GEOSCIENCE ASSESSMENT OFFICE
by qualified persons fulfilling all requirements for assessment credits.
have been met.
the size of the ore down to minus six inches.
then returned to Pele during December, 2000.
writer or Al Shefsky, President of Pele Mountain Resources Inc. at (416) 368-
Resoectfully submitted
Paul-Claude Delisle, B.SC., FGAC Geologist
42C08SW2021 2.22230 JACOBSON 010
2 222 30
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XRAL LaboratoriesA Division of SGS Canada Inc. 2 222 30
Leslie Street Don Mills, Ontario Canada M3B 3J4 Telephone (416) 445-5755 Fax (416) 445-4152 CERTIFICATE OF ANALYSIS
Work Order: 056087
To: Pele Mountain Resources Attn: Al Shefsky 20 Richmond St. E. Suite 212 TORONTO ONT., CANADA M5C 2R9
Date 17/08/99
Copy 1 to
Copy 2 to
P.O. No. Project No. No. of Samples Date Submitted Report Comprises
4 ROCKS 27/07/99 Cover Sheet plus Pages 1 to 1
Distribution of unused material:Pujps: Discarded After 90 Days Unless Instructed!!!Rejects: Discarded After 90 Days Unless Instructed!!!
Certified By
Dr. Hugh de Souza, General Manager XRAL Laboratories
ISO 9002 REGISTERED
Report Footer: L.N.R. s Listed not received l.S. = Insufficient Sample n.a. ^ Not applicable - ^ No result INF t* Composition of this sample makes detection impossible by this method M after a result denotes ppb to ppm conversion, 'fa denotes ppm to 'fa conversion
® SGS Member of the SGS Group (Societe Generate de Surveillance)
XRAL XRAL LaboratoriesA Division of SGS Canada Inc.
2 222 301885 Leslie Street Don Mills, Ontario Canada MSB 3J4 Telephone (416) 445-5755 Fax (416) 445-4152 CERTIFICATE OF ANALYSIS
Work Order: 057690To: Pele Mountain Resources
Attn: Al Shefsky 20 Richmond St. E. Suite 212 TORONTO ONT., CANADA M5C 2R9
Date 03/12/99
Copy 1 to
Copy 2 to
P.O. No. Project No. No. of Samples Date Submitted Report Comprises
2 ROCKS 16/11/99 Cover Sheet plus Pages 1 to 1
Distribution of unused material:Pujps: Discarded After 90 Days Unless Instructed!!!Rejects: Discarded After 90 Days Unless Instructed!!!
Certified By
Dr. Hugh de Souza, General Manager XRAL Laboratories
ISO 9002 REGISTERED
Report Footer: L.N.R. = Listed not received l.S. = Insufficient Sample n.a. = Not applicable - - No result *INF s Composition of this sample makes detection impossible by this method M after a result denotes ppb to ppm conversion, 'fo denotes ppm to "/o conversion
@SGS Member of the SGS Group (Societe Generate de Surveillance)
XRAL Laboratories ^ 2 *O ^ 3 ^ A Division of SGS Canada Inc.
Work Order: 057690 Date: 03/12/99 FINAL Page i of i'emetA. AP NNP NP pH S(T) S(SO4) SJ
SAMPLE TYPES NUMBER SIZE FRACTIONS NUMBER SAMPLE PREPARATIONS NUMBER
DRILL CORE 3 -150 3 CRUSH, SPLITPULVERIZATION
REPORT COPIES TO: ALAN SHEFSKY INVOICE TO: ALAN SHEFSKYALAN SHEFSKYPAUL CLAUDE DELISLE
This report must not be reproduced except in full. The data presented in thisreport is specific to those samples identified under "Sample Number" and isapplicable only to the samples as received expressed on a dry basis unlessotherwise indicated
REPORT: T99-57527.0 C COMPLETE ) DATE RECEIVED: 25-NOV-99
PROJECT: NONE DATE PRINTED: 6-OEC-99 PAGE 1 OF 2
SAMPLE
NUMBER
161535161536161537
ELEMENT Ai60 ^J Cu iPbl Zn |MoJ NiUNITS PPB P(ili PPM PW(I PPM iiJjPPM
Cd |Bjl As jjSb.-fe Tot ;A Mn .i Te : ;.Ba:;: Cr Hy? Sn -I W:;: La ;:;?Al ; ; Mg :V te" Ha f|i.|| Sr |t*| Ga lip Nb |jh| Ta llll Zr W* SlilM'H bil reT IPfH pPM W) PPM PW| PPM PfM. PPM i; PCJ PCT |pJC|ir i PCT |(?ci|pPM PPJiPPM (?PJ;PPM IRPji;PPM IpCrlpPM
ITS - Chimitec -Bondar Clegg, iili-u i
ITS Intertek Testing ServicesChimitec Bondar Clegg Rapport Lab Geochimie
STANDARD ELEMENT Au50 Ag Cu PbNAME UNITS PPB PpMj PPM ?H||
STD GECCHEM STD 6 - 4i5| 151 |l||Nuiber of Analyses - li 1 liMean Value - O,*; 151 |i||Standard Deviation - f|| - |1|| Accepted Value - 0.2 148 : 20
ANALYTICAL BLANK <5 *.5| <1 |52Nuiber of Analyses 1 111 1 ;;lllMean Value 3 OJ3| <1 |ig|Standard Deviation - lil - ||||Accepted Value 5 0.2 1 il-2-?
Wfxii VxVKfS;;;;;™ SSxxSx
Oxide (Feldspar S, 177 :fl - |||Nuiber of Analyses 1 ill - |flMean Value 177 ||1 - |||f Standard Deviation - H - Hi Accepted Value - |||l - 111
'.•'•'.•'.-.•.•'. '.- •'.•'•:-:-'.-.-:-':
:v: : : : :: ::-'- ::', : :v:Xx
l l11 111xSvXiX :;S.xSx: :
si: ;; li:;;
j : :;:-: ::;:;:-i; ;v'-:":: : : :-i :
::;:o:":-:;:"i : :x :: :x:x|
v-i-xvX-: -•';':v:::':: : m:;?;;: ;;xxxx:
* iSxxK SSSxx
* '5';-:;;;;;;;; SSs;;;*;
PROJECT: NONE :DATE RECEIVED: 25-NOV-99 DATE PRINTED: 6-DEC-99 PAGE 2 OF 2 ;
Zn jijNof Hi iijCfliJ Cd I.B\- As Sb Fe Tot l:: Mn Te ;:'; Ba;' Cr lVx Sn xxWx La 1 A.I- Mg :, Ca Na :;;|||| Sr fl;V| Ga 'li.! Nb 1; Sc| Ta :lTtJ ZrPPM fSflPPM PPH| PPM PPM PPM PW; PCT ;: PPH PPM PPH PPM PPM PPM PPM;PPM j PCT j PCT PCT Pa : P^flPPM PPM PPM PPM JPPM PPMlPPM PCTPFM
159 |ll53 40N1 - 0 N 1W *5 7-67 1558 ^ 187 280 158 ^20 28 10 6,00 2.77 3,82 0.97 1*661106 7^10 29 9 23 5 0.34 59ill i H i ill i li! i sli ; ; i ^i ; " iiiV: i i i:;' : i} i PT? illl i Ml i Bil 'M i&l i
159 ill 153 40 ; 0.5 Is :149 3 7.67 1558 13 187 280 158 10 28 10 6.00 2.77 3.82 0.97 ilp6|l06 lifci 5 29 9 ; 23; 5 0.34 1 59- H - 111: - III - ill-; - IS - S, - m, - ;l.;l - lil: - Mi - lil - 111 - lil -
All results are calculated on a dry weight basis except where not applicable.
SPIKE 14 REG = Percent recovery In a laboratory spiked sample. Please note that the above results have not been corrected for the spike recovery, sample surrogate recoveries and laboratory blank values.
Ce ceit/ffcar ne sto/r pas erre reprotiuit. sinon en enrier, sans I'auiorisation Ocrite du laboramirs. This cefT'ffcare may nor be reproduced, ttcspr in /fs enr/rery. without the wr/rren approval of rfte laboratory.
SPIKE Vo REG s Percent recovery in a laboratory spiked sample. Please note that the above results have not been corrected for the spike recovery, sample surrogate recoveries and laboratory blank values.
Ce cerr/'fi'csc ne doit pas tire reproduit sinon en ent/er, jany /'auforisat/cn Scn'fe du labora'.oirs. This ceTift'cate may ncf 6e reproduced, except m its enf/rery, w/r/iour the written approval of r/ie laboratory.
Gold (g/t) Silver (g/t) Test "A" Test "B" Test "C" Average Average
Matthew C Ginn Metallurgist
BatHe Mountain GoldGolden Giant Mine
Custom Milling Report—Leach Tests fit Assays
r? O
Customer: Pele Mountain Resources
Date: December 1,1999
SampleAssay Head D/S Assay Head N/S
Gale. Head Final Solution Leach Tails
Recovery
Assay 15.655.65
Test "A"
5.886.5
0.30
95.00/.
Gold (g/t) Assay 2 Assay 3
5.575.57
Gold (g/t) Test "B" Test "C"
5.74 5.736.5 6.4
0.27 0.27
SS.3% SS.3%
Average5.615.61
Average5.786.470.28
95.20/.
Silver (g/t) Assay
Silver (g/t) Average
ee.7%
Notes:Silver recovery estimated at 66.7e7o——————————————-——————^————.The N/S sample represents 1/3 of D/S and entire N/S. The sampling did not begin until late D/S since Golden Giant ore would contaminate the Pele Mountain Resources sample.________
Jo/31 Marcotte Metallurgist
Hi BoHtoMountainQoldOaMvn elan* Mln*
Custom Milling Report—Leach Tests 4 Assays
Customer Pele Mountain Resources
Date: December 2,1999
SampleAssay Head D/S Assay Head N/S
Gale. Head Final Solution Leach Tails
Recovery
Ascayl9.10 5.33
Test 'A"
7.41 7.4
0.28
96.3*
Gold (B/t) Assay 2 Assay 3
8.96 5.26
Qold(gA) Teat 'B' Teat -C'
7.38 7.54 7.4 7.9
0.26 0.26
96.5* 96.6*
Average8.03 5.30
Average7.44 7.570.27
96.5*
Silver (9ft)
SHver(grt) Average
Note*: Silver recovery estimated at 66.7*
Q.kJodiiWarcotte Metallurgist
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3 S.
11/02/99 08:45 O807 238 2066 BUG MILL OFFICE ®001
Battle Mountain Gold Golden Giant Mine
ASSAY REPORT
Date: Nov 2799
Water samples received from Pele Mountain, Nov 1/99
Summary of custom milling of Pele Mountain ore in 1999
MonthOd. 1999 Nov. 1999 Dec. 1999Total
Tonnes milled
4 437.0 4823.1 1 145.7
10405.8
Grind JV. -400M)
79.8*0 79.1 "ft Bl.0%79.6^0
Head Grade (0/0
4.78 5.07 6.425.09
Gold Recovery
C/.)91. oy,,92.3Vo 95.80/,,92.iy0
Payable (g)
19 095.5 22317.6
6 976 248 389.3
(oz)613.9 717.5 224.3
1 555.7
Head Grade (g/t)
0.91 1.02 1.000.97
Silver Recovery
C/.)65.RKtt.7% ee.7%ee.3%
Payable (kg)2 382.5 2 943.9
687.86 014.2
(oz)76.6 94.7 22.1
193.4
MonthCcl. 1999 Nov. 1999 Dec. 1999Total
CS/USJ1.4773 1.4675 1.4733
oz. Payable613.935
717.5 224.3
1 555.735
S S S
Gold USS/oz
310.72 293.18 283.07
Value (CJ)S 281 812.53 S 308 698.38 S 93543.65(684054.56
oz. Payable76.599
94.7 22.1
193.399
Silver USVoz
S 5.42 S 5.19 S 5.21
Value (C J)S 613.33 S 721.27 t 169.64S 1 504.23
TonnesS 82261.98 S 89420.27 S 19476.90S 181 159.15
Processing Charges Assays GST
5 - S 5758.34 S 1 836.00 S 6 387.94 5 130.00 S 1 372.489 1 966.00 S 13 518.76
Total? 88 020.32 S 97644.21 S 20979.38J 206 643.92
222 30L. COTE P. ENG.217 Rue De LA PROMENADEVAL SENNEVILLE. QUEBEC. JOY 2PO(819)825-8614
OPEN PIT SURVEY (BULK SAMPLE)
MARKES ZONE - WAWA PROPERTY
thNovember 11 ,1999
(Includes D. Drill proposal for 3 rd bench).
FOR
PELE MOUNTAIN RESOURCES INC.
thNOVEMBER 11 ,1999
42C08SW2021 2.22230 JACOBSON 040
TABLE OF CONTENTS
Page
1.0 SUMMARY 3 OPEN PIT LONGITUDINAL VIEW
2.0 SURVEY OF ORE 4
3.0 SURVEY OF WASTE 5
4.0 SURVEY OF PRESHEAR DRILLING 6
5.0 OPEN PIT BENCH 3 - D. DRILL PROPOSAL 7
D. DRILL PROPOSAL - LONGITUDINAL 8
APPENDIX \-Sections of the Markes Zone - Open Pit l :200
2 222 301.0 SUMMARY
The Markes zone Open Pit was surveyed by the mine engineer from River Gold mines. The Bench #1 was partly surveyed on October 16th, and the Bench #2 on November 9th 1999. The location of the walls of the pit in relation to some diamond drill holes remain to be checked. The tonnage of waste and ore was calculated by the author using sections at a scale of l: 100. The survey was completed with tape and hand-level measurements taken during the operation of the pit. The results of the calculations are:
(from blast Octl3 & Nov. 3) (from 2.4m slash of North wall)
10203T
3.0 SURVEY OF WASTE
Tonnage calculated from Surveyed Depth of Ramp, and with no overbreak. The width for the Bench l, asked by Pele Mountain was 3.5m and asked by Maray Construction was 4.6m. On Bench 2 Pele, Mountain asked for a 4.6m minimum width but the blast was narrower.
BENCH 2SECTION1405.0-1411.5W1421.5-1433.5W1451.0-1461.0W1448.5-1461.OW1461.0-1463.0W1463.0-1374.5WOre recovered from N. wall slashS-TOTAL
DIMENSIONS - PELEBlast of a block = l IT (asked by the Labour's inspector)4.3x2.0x12.0 = 2797Internal waste = l SOT2.4 x 6.2 x 12.5 = 502T ( 8 ft Slash of the North Wall)2.4x6.8x2.0 = 88T2.4x7.0x11.5 = 5227
^557)1497T
2. 222 304.0 SURVEY OF PRESHEAR DRILLING
The preshear drilling was requested for the walls of the pit where there was production of ore. The quantities were calculated on the base of the elevation reached by the blast and along the dip of the drilling.
BENCH l - PRESHEAR DRILLING OF HOLES 3.5 ft apart.SECTION WALL DIMENSIONS b m2 1433.5-1440.0W North 4.9 x 6.5 = 32
South 4.7x6.5 = 31 1440.0-1445.0W North 5.6 x 5.0 = 28
South (80 deg) 5.5 x 5.0 = 28
BENCH l - PRESHEAR DRILLING OF HOLES 2.5 ft apart From surface to bottom of bench 2 on the south wall & from surface to bottom of bench l on the north wall.SECTION WALL DIMENSIONS St m2 1445.0-1452.5W North 5.9 x 8.5 = 50
South (75-80 deg) 10.9 x 7.5 = 82 1452.5-1461.0W North 6.2 x 8.5 = 53
South (75-80 deg) 12.8 x 8.5 = 109 1461.0-1474.5W North 6.8 x 13.5 = 92
South (75 deg) 13.9 x 13.5 = 188 1474.5-1481.5W North 4.0 x 7.0 = 28
South (77 deg) 3.8 x 7.0 = 271447.0-1448.5W Slash of N wall 5.4 x 1.5 = 8 1448.0-1448.5W Slash on East wall 5.4 x 3.5 = 19
NORTH WALL - SLASHING - PRESHEAR HOLES 2.5ft apartSECTION WALL DIMENSIONS & m2 1448.5-1474.5W North 6.3 x 26.0 = 164
East 6.0 x 2.4 = 14 West 6.0 x 2.4 = 14
BENCH 2 - PRESHEAR DRILLING OF HOLES 2.5 ft apartSECTION WALL DIMENSIONS Se m21447.0-1448.5W East 4.8 x 5.0 = 241461.0-1474.5W South 6.0 x 13.5 = 811448.5-1451.0W North 5.2 x 2.5 = 131451.0-1461.0W North 5.8 x 10.0 = 581461.0-1474.5W North 5.6 x 13.5 = 76
TOTAL @ 3.5 FT c/c : 119 M2 (a2.5FTc7c:1100M2
5.0 BENCH #3 - D. DRILL PROPOSAL
The feasibility of taking a third bench depends on the grade and the width of this bench. It may be feasible to take only the footwall of the ore zone without slashing any waste but the equipments used at time of the bench # 2 was inappropriate and/or required rehandling the muck. Part of the south zone (footwall zone) in the narrow part of the ramp is dipping under the North wall of the ramp. A few diamond drill holes are required to see if it's better to mine only the south Zone or the complete zone in the third bench.
The longitudinal section of the South (footwall) zone shows a possible improvement of the grade and the width below the bottom of the pit and a flat plunge of the good values to the East. If this flat plunge is real, the wide portion of the pit could be extended to the East. The grade of the zone (indicated by drill holes) on the bench 2 on Sect. 143 5 W and 1440W was around 4g7T and the hole 99-2 on 1432W shows 6g7T at 7 meters below the actual ramp. I recommend to drill holes on Sect. 143 5 W and 1440 W to see if it's possible to have a Sg/T grade and a better width for a 3rd bench. I recommend also to drill a hole on section 1447 W to see if the grade of the North zone improves for the third bench (as indicated by some chip samples) so the north wall of the actual ramp could be slashed to access entirely the South zone
The last 15 meters of Bench 2 at the west end of the pit returned strong mineralization comparatively to the poor intersections shown in drill Hole 86-19 on section 1469W. The feasibility of a third bench depends on the good grade in this sector. Therefore I recommend to drill holes on sections 1459W and 1469W to define the grade in this area.
The 5 drill holes proposed total 125 meters. Please refer to the appended sections for details on each proposed drill hole.
It is reasonably expected that this diamond drilling proposal will return information to complete the feasibility of a third bench.
Leo Cote, B.Applied Se.. Consulting Geologist Engineer
Submitted on August 23. 1999 on behalf of Pele Mountain Resources Inc.
Alan L. Shsjreky, President
42C08SW2021 2.22230 JACOBSON 060
Table of Contents 2. 222 301.0 Introduction
1.1 Objective of Closure Plan1.2 Rational and Approachl .3 Mine Location and Property1.4 Climate1.5 Surface Geology1.6 Bedrock Geology1.7 Mineralogy1.8 Topography l .9 Hydrology1.10 Land Uses1.11 Mining History
2.0 Pre-Development Environment
2. l Plant and Animal Life 2.2 Surface Water Quality
3.0 Proposed Mining Plan
4.0 Closure
4.1 Temporary Suspension4.2 Inactivity4.3 Closed Out4.4 Cost to Close-Out
J
J
j
j
J
2. 222 30List of Figures
Figure l Location Map
Figure 2 Claim Map and Location
Figure 3 Geology Map
Figure 4 Topographic Map
Figure 5 Pit Plan
Figure 6 Pit Long Section
-i
Appendices
Appendix l Newspaper Ad
Appendix 2 Claim Map and Listing
Appendix 3 Weather Information
Appendix 4 Acid Base Accounting
Appendix 5 Water Quality Analysis
1.0 Introduction
1.1 Objective of Closure Plan
2 222 30
The purpose of this plan is to comply with the requirements of the Mining Act of Ontario and to outline a strategy for dealing with the both short and long-term closure of the site once the proposed advanced exploration is complete.
l .2 Rational and Approach
The project site will be placed in a state of temporary suspension at the completion of the proposed advanced exploration to allow evaluation of the results obtained. The area has been the location of mining activity for 60 years or more and it is hoped that mining at the Markes Zone will be justified following this program. The site would not be closed out in order to allow mining to proceed in the future.
A state of Inactivity may result if commodity prices remain low and do not support production at this time.
Full close out of the site would occur only if results of the advanced exploration indicate that future mining should not be contemplated.
Pele Mountain Resources operates in full compliance with all environmental and safety legislation and regulations and will continue to do so through this project and its closure.
1.3 Mine Location and Property
The Markes occurrence is located in Jacobson Township approximately 55 km northeast of Wawa, Ontario (Figures l, 2). The site is accessible from the town of Dubreuilville by a gravel road that reaches the Edwards Mine, operated by River Gold Mines. An unused logging road is then followed to south of the site and a newly constructed 300 metre road followed in to the zone.
The property consists of 68 contiguous claims blocks totaling 3157 hectares in Jacobson and Riggs townships. A list of claims is attached in Appendix 2 and includes both patented and unpatented mining claims held. Four known gold occurrences exist on the property although only the Markes Zone is being considered for development at this time. The Markes Zone is located on unpatented mining claim number SSM 1174694.
2 222 3 o
290 Km
PELE MOUNTAIN RESOURCES INC.
MARKES ZONEFIGURE l
JACOBSON T\VP,^———^^^^^M^
1164272Laugh hi
SSM 1224573
539077 .634878
MAKKES ZONE l 539879
(•3 l-227 '.-
2233 B396B8
1229923^•i
I'ELE MOUNTAIN CLAIMS
608842 J 608841
2000 (2 KM ) l
935963 . g J865944J 865945
FIGURE 2CO
1.4 Climate2 222 30
The project is located within the Superior Regional climate area, which borders on the north shore of Lake Superior. Daily mean temperatures average +2 degrees with coldest daily mean temperatures of -14 degrees in January and warmest mean temperatures of 15.6 degrees in July. Precipitation averages 945 mm of rain and 278 cm of snow. Details of climate are attached in Appendix 3.
1.5 Surface Geology
Overburden soils are relatively uniform. The stratigraphy is dominated by glacial drift consisting of dense stony sand till directly overlying the bedrock. This includes textures ranging from silt through to cobble and boulder sizes with sand and gravel predominating. Topsoil is poorly developed and classed as black silty sand with moderate organic content. Previous operators of the site have stripped off the soils over the Markes Zone to expose the bedrock.
1.6 Bedrock Geology
The Markes Zone is part of the regional Goudreau - Lochalsh Deformation Zone. This major structure is up to 4.5 km in width and at least 37 km long and trends at N070 to N090. It contains all of the known gold deposits and showings of the region.
The Markes Zone trends at N090 and dips at 70 degrees to the north. It varies in width from 4.5 m at the west end up to 10m and is known for a length of 115 metres. Figure 3 is a geologic map of the area.
The Markes Zone consists of sheared pillow basalt displaying strong calcite- carbonitization moderate chlorite, weak tourmalinization, and strong silicification, sericitization and pyritization. The zone is surrounded by felsic intrusive rocks, to the north, and relatively undeformed, pillowed basalt to the south. The zone also contains a narrow sulphide iron formation interbedded with the pillowed basalt to the east.
Gold mineralization is associated with high silica brecciated zones. The mineralized zones are filled with light grey to white quartz material in the form of veinlets, pods, contorted stringers and crosscutting stringers in an anastomosing pattern. Gold is also associated with pyrite, which ranges up to 12 "/o. Gold occurs as find particles of free gold with very little visible gold being noted.
J J
LEGEND~**ff" t ^ ^ t
" ." ^ *
MAFIC VOLCANIC FLOW (basalt)
COARSE GRAINED MAFIC FLOWfgabbro'?)
dj INTERMEDIATE VOLCANIC FLOW (andesite)
L i FELSIC VOLCANIC FLOW (rtiyolite)
FELSIC INTRUSIVE (granodiorite)
5 l QUARTZ-FELDSPAR PORPHYRY INTRUSIVE
•l DIABASE INTRUSIVE
HI METASEDIMENT(quartz-sulphides)
QUARTZ VEIN
PELE MOUNTAIN RESOURCES INC.
GEOLOGYWAWA AREA (Ontario)
WESTERN GROUP( Goudreau-Lochalsh Belt)
JACOBSON AND RIGGS TOWNSHIPS
SCALE 1 15000 SONIC SOIL SAMPLING INC
FIGURE 3
1.7 Mineralogy 2 222 30The basaltic host rocks at the Markes Zone are high in silicate minerals and in carbonate minerals. High levels of silica, calcite, and pyrite along with other silicate minerals characterize the mineralized zone. The sulphide iron formation is a semi-massive pyrite- phyrrotite band interbedded with siderite, and iron carbonate. Minor chalcopyrite and sphalerite have been noted in this unit.
Acid base accounting tests were carried out on the major rock types found at the Markes Zone. Rock samples were taken from the outcrop and analytic results are attached in Appendix 4.
The host rocks were found to be net acid consumers as they contained little if any sulphides and are extensively carbonatized. The mineralized zone was found to be a net acid generator as it contains significant sulphides as well as significant carbonate. The iron formation is a net acid generator due to its high sulphide content. A small amount of iron formation may be encountered in the pit but will be shipped to the mill as ore, no iron formation will be produced from the pit as waste.
1.8 Topography
The region is characterized by rolling upland of mostly exposed bedrock knobs with thin till cover. Lower areas between rocks have been filled to a greater depth with the same sand and gravel mix. Local eskers of sand and gravel trend east-west. Figure 4 is a portion of Map 42C/8 (Franz) and shows local topography.
The highest point locally is 432 metres above mean sea level with the Markes Zone located at about 415 metres elevation. The site is near a local divide with a gentle slope from the site to the east and a gentle rise to the west.
1.9 Hydrology
The site is at a local topographic high and drains to the north. The wetland occupies a low area about 100 metres north of the zone. This wetland drains to the east through a small creek and abandoned beaver pond into the west end of Godin Lake. Godin Lake is a part of the Tehoma River which drains the area south of the project site northeast into Wabatongushi Lake. Wabatongushi Lake drains into Dog Lake and into the Michipicoten River to Lake Superior. Figure 4 is a portion of Map 42C/8 (Franz) and shows this drainage.
The Markes Zone is several metres above the water level in the wetland and there will be no drainage into the proposed pit from the wetland. The bedrock at the site is very tight, with no evidence of groundwater flowing from any of the drilling into the proposed pit area. No inflows to the pit are expected from surface or groundwater sources.
; •••••: ' 'o 'j~
J J
TOPOGRAPHIC MAP FIGURE 4
l l l 1
222 301.10 Land Uses
No industrial or residential use is made of the site at this time. River Gold Mines is operating the Edwards Mine about 3 km west of the site. The property is covered by a forest management area operated by Dubreuil forest products and has been extensively logged in the past. No logging operations have taken place recently and none are expected in the near future.
The nearest residents live in the townsite of Lochalsh about 5 km to the northeast of the site. The area is used mostly for recreational purposes by local residents, as well as by tourists. The main activities include camping and fishing in the summer, hunting in the fall and snowmobiling in the winter.
1.11 Mining History
Gold was discovered in the region in the late 1800's and the area has been actively explored since that time. Some exploration for iron and copper took place in the early part of this century but recent work has focused on gold. Mining operations have taken place from time to time since the 1920's with recent major developments taking place in the mid 1980's. The most recent development is at the very successful Edwards Mine operated by River Gold Mines.
The Markes Zone was discovered in 1937 by William E. Markes and optioned to Erie Canadian Mines Limited. Erie Canadian completed a stripping program and drilled 13 holes before abandoning the property. In 1979 Prospection Limited explored the property with 9 drillholes. In the early 80's the property was acquired by Cline Development Corp and optioned to Esso Minerals who drilled the property in 1986-87. Pele Mountain Resources acquired the property in 1997 and has explored it since that time.
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O2.0 Pre-development Environment
2.1 Plant and Animal Life
The information in this section has been taken from various sources including "local" knowledge.
Jack Pine communities dominate the better-drained areas with some White Birch and Trembling Aspen, and grade into mixed forest, as drainage becomes poorer. Black Spruce and White Cedar dominate the poorly drained areas, with sedge and muskeg communities dominating very poorly drained areas. Vegetation has been controlled by logging and by forest fires, with more mature forest species being absent.
Wildlife populations are regionally typical with habitat favourable to moose being developed as a result of forestry operations. This has resulted in hunting activity near the site. Moose activity is noted at the site as well as the presence of black bears and wolves. Trapping occurs in the area with beaver, otter, marten and mink the main species targeted. The level of trapping activity varies widely depending on the prices available for pelts.
2.2 Surface Water Quality
A limited program of water quality analysis was undertaken to determine existing conditions. Sampling was carried out in the wetland nearest to the project site and in the bay at the west end of Godin Lake where drainage from the site would enter the lake. Results of the analysis are included in Appendix 5.
Water quality is typical of undisturbed sites with neutral pH and low contaminant levels. Heavy metal levels were at or near detection limit with slightly elevated copper near the site and slightly elevated iron in Godin Lake.
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2. 222 383.0 Mining Plan
An open pit mining plan for the development and removal of a bulk sample of 6200 tons of material has been prepared by L. Cote, P.Eng. The bulk sample would be removed from the site for milling at the Golden Giant Mill of Battle Mountain Canada Limited at Hemlo. A total of 1200 tons of waste rock would be produced from the pit as part of the bulk sampling process. Figures 5 and 6 illustrate the proposed pit, which would be 60 metres long, a maximum of 10 metres wide and up to 10 metres deep.
The entire operation of the project will be by contractor, with no permanent facilities constructed at the site and any temporary facilities required by the contractor removed at the end of the project. The duration of site activities is expected to be six weeks from start to finish. No explosive or fuel storage is planned at the site and the contractor will provide for his requirements on a daily basis. The Contractor will be expected to comply with best environmental practices for this type of work and keep the site clean at all times.
Operation will be by conventional surface mining equipment i.e.: air-track, backhoe and truck. Haulage will be by conventional highway trucking equipment.
Ore material will be stockpiled in an area south of the pit for removal to the milling site. Waste rock will be used to create a berm around the pit to prevent inadvertent access. The berm will be approximately 1.5 metres high and protect all areas of the pit deeper than 3 metres. The berm will consume all of the waste rock to be produced and no separate, waste rock storage area will be created. The berm will be located 10 metres back from the toe of the pit.
Garbage generated during the operation will be disposed of at the Magino Mine landfill site 15 km to the west of the project site or another approved site. Portable toilet facilities will be provided as required by the contractor.
Disposal of oil and grease from equipment maintenance will be the responsibility of the contractor. Spill prevention and clean-up will be the responsibility of the contractor.
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Sketch #1; Surface main and drill holes location of the Markes zone
Upon completion of the bulk sampling program the site will move into a state of temporary suspension. At this point in time all of the contractor's equipment will have been removed from the site. All ore material will have been removed from the site to the mill and no stockpiles will remain. The berm around the pit opening will remain in place to prevent inadvertent access. This berm is set back from the toe of the pit a sufficient distance to allow for any potential instability in the pit walls. There is no indication that instability will develop and the rock appears massive and solid. The ramp into the pit will be blocked with waste rock. Signs will be posted in visible locations warning of the presence of the pit. The road leading to the pit will be ditched and bermed to discourage access and warning signs posted.
Since ongoing exploration activities are planned for the Markes Zone and other zones on the property routine inspections of the site to ensure closure measures are still in place will be performed.
4.2 Inactivity
Additional closure measures beyond those outlined for Temporary Suspension are not expected to be required for a state of Inactivity.
At this time inspections will be reduced to semi-annually to ensure closure measures are remaining in place.
4.3 Closed Out
Final closure of the site will only take place when a decision has been made to abandon the project and not continue further exploration or production.
The pit will be partially filled and graded to a stable slope leaving a depression of less than 2 metres with sides at an angle less than the angle of repose of gravel. This will be accomplished by pushing the waste rock berm into the pit and filling the remainder of the pit with locally available sand and gravel. A total of 1500 cubic metres of gravel should be adequate for this purpose.
The road to the site will be scoured and left to vegetate naturally. The road base is silt with a high content of organic matter and is not expected to require fertilization to grow in quickly.
4.4 Cost to Close-out
The cost to close out the site is estimated as follows:
Haul sand and gravel and dump 1500 cu.m @ S 3.00 Push Waste rock Berm into Pit l day @ S 500 Supervision
Total S
2. 222 30
4,500.00500.00500.00
5,000.00
Pele Mountain will enter into discussions with the Ministry of Northern Development and Mines regarding the posting of Financial Assurance.
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APPENDIX 1
NEWSPAPER AD
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lose a lotmore chan
your licencedrinking
anddriving.
Supperttag local prelects InailBbalcflDtext
Coif1-800-5656-t/SCw/fri your pledge today
56 SporW S/reef. Ottawa. ONKIP 5B1
ran MOUNTAIN RESOURCES
Pele Mountain To Mine Bulk SamplePele Mountain Resources Inc. is planning to mine a Bulk Sample of up lo 10,000 tonnes of gold ore, under the Mining Act of Ontario, from its 10Q9fc owned Markes Zone. The Bulk Sample will be mined from an open pit and processed at Battle Mountain's Golden Giant Mill, at Hemlo pending MOE approvals. The project is scheduled to begin during October 1999 and to be completed within two months. The property is located near the Goudrcau Lochalsh road past the Edwards Mine. A public information session will be held at OSS1, Lot 16, Main Street. Lochalsh from 2:00 - 6:00 p.m. on August 27. 1999. Company personnel will be available to answer any questions.
JACOBSON TWP.Tf^TJM3 l i
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For funher information, please contact:Alan Shefsky, President
Pele Mountain Resources Inc.20 Richmond Street East, Suite 212
of the world on the the single colour, g trates the single territi by UPU, permittinc flow of mail." The ei inspired by Rene Marceau's turn-of-t sculpture depicting fi1
At some point in oui tistics show tha Canadians will experif threatening critical illn be cancer, a heart atte or one of a number o In fact, the chances of a major illness are f now than in the pa; advances in medical helping us live longer.
A critical illness is harmful to your h( lifestyle, it can have a impact on your family' affairs. In fact, a long ness could place a gre; burden on your (am you are sick, and possi to work, you may costs for private he home care, special treatments or eve: retraining. These co: addition to your regi expenses.
Many people rely or insurance to assist th cially during a prolong But this insurance v benefits if you are st work. Even when i work, your policy's may not come into some time.
To ensure adequate p more and more Cane opting for critical illn ance. This type of : which has been av. Canada since 1996, i lump sum payment short time of the diag critical health conditioi less of your ability to working. Critical ill™ ance is available on it sometimes as a ridt insurance or disability policies.
This information is provided as a public service, but we cannot guarantee that the information is current or accurate. Readers should verify the information before acting on it.
2*2 S
l Pele Mountain Resources Inc.
Crown Patents (Mining Properties) in the Township of Jacobson (Twp. 48)
] District of Algoma Land Titles Office of Sault Ste. Marie, Ontario
Claim Number Parcel Number Crown Patent No. Acreage
J SSM2231 - 1452 A3644 36.570
~j SSM2232 1452 A3645 53.620
SSM2233 1452 A3646 36.950
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Pele Mountain Resources Inc.CriMvii Lease - I'ulcnlcil Mining t 'hiims in TiMviisliips ol Jacobson :uul Higgs
District ol Algnma ,S:!iill Sic. Mill le jMinitm Division. Ontario
CmwiiLeascseaeltdalcilMay.il. I'J'JI 'l eini --!2 l yeais bom .hine I.JV9I anil Registcicd August Id, 1991
2.222 30
L'l' = Lund Registry Ullicc lin l lie l.ami MM = Mining l Ji vision. Mining l,amis Sect ion.Titles Division uf Algoma (No. l J, Ministry Dl'Nuilhcin Development and Mines Sault Ste. Marie, Ontario
Claim Number
SSM 537496
SSM 537498
SSM 539871
SSM 539872
SSM 539873
SSM 539874
SSM 539875
SSM 539876
SSM 539877
SSM 539878
SSM 539879
SSM 53988U
SSM 539KKI
SSM 539882
I'M rt
Parts 1 and 6U
Part 2
I'ail 3
1'ait 4
1'ail 5
Tart 6
I'ait 7
1'ail 8
I'aiiy
Tail 1U
I'm l 1 1
I'art 12
I'ail 13
I'ail 14
Clan
IR-SDlo
IK-8UIG
IR-SDIt,
IR-Stllu
IK-Kl)l()
lil-8UI(i
IK-KlHo
IK-80 It.
IR-8()I()
IK-8UU)
IK-Hl)l(,
IR-H()I(.
IR-KUhi
IK-HUh.
I'aiLL-l Niiniher
1821)
1821
IK22
182.1
IK24
1825
IX2d
1827
1828
1829,
IK.H)
I8.H
IK32
183.1
'1 invn.slii|)
.laetibson it Riggs
jacobsun
.laeiibsdii
.hiculisnn
jaeuhsiin
Jacolison
.hietibson
Jacobson
Jacobson
Jacobson
Jacobson
Jacobson
Jacobson
Jacobson
Lease Uc^isti aliiiii Number
177446 i L'l') IU6273 (MD)
1 77447 (LT) l()(.274 (Ml J j
I7744X (L'\') IU6275 (MU)
177-149 iL'l") ll)()27t. (MU)
I7745U i L'l') IU(.277 (MIJ)
177451 (LT) 101)278 (MD)
177452 IL'I) 106279 (MIJ)
177453 ILTJ 106280 (ML))
177454 (LT) 106281 (MIJ)
1 77455 (LT) 106282 (MU)
177456 (L'l) 106283 (MU)
177457 (LT) IU6284 (MU)
177458 (LT) 1 06285 (MU)
177459(1/1) IU()2X(. (MU)
Acreage
30.650
4U.3(iO
OO.U7U
70.2X0
42.530
25.700
09.090
11 I.73U
30.620
3 1 .090
38.000
48.150
50.270
XI.3.H)
Tali
1
2
3
4
5
d
7
8
y
1U
n
12
U
14
UDMAM-I IIU(
. T
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1J
1
1
1T
J
1
1
J
1
1
1
J
1
JJ
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Claim Number
SSM 539883
SSM 539884
SSM 539885
SSM 539880
SSM 539887
SSM 539888
SSM 539889
SSM 539890
SSM 543090
SSM 543091
SSM 568074
SSM 568075
SSM 5825 II
SSM 5825 12
SSM 5825 13
SSM 582514
Pail
Pail15
Pail16
Pail17
Pails18 and61
Pails19 and56
'arts20 and57
'arts21 and58
'ails22 and59
'ails23,44,45,46,49, 50,51.52,53,54and 55
Pail24
'ails25, 40and 41
'ail
26
Pail27
Purl28
'ail
29
'ail
Phut
IK-8016
IK-8010
IK-8010
IK-8010
IK-8010
IK-8010
IK-8016
K-8010
K-8016
K-8010
IK-8016
K-8016
K-8010
K-8016
K-8016
K-8016
Pan-elNumber
1834
18.15
I83o
I8.1/
18.18
1839
1840
841
842
843
844
845
84o
1847
848
849
Ton iisluj)
Jacobson
Jacobson
Jacobson
Jacobsonit Kiggs
Jacobsonit Kiggs
Jacobsonit Kiggs
Jacobsontt Kiggs
Jacobson
. acobson
. acobson
Kiyys
Kigys
Jacobson
. acobson
. acobson
. acobson
LeaseKegislraliiiiiNumber
1 77460 (LT)106287 (MU)
I774ol (LI)106288 (MU)
177402 (LT)I00289(MU)
I774o.l (LI )100290 (MU)
177404 (LT)100291 (MU)
177465 (LT)01*292 (MU)
77466 (LT)06293 (Ml;)
77467 (LT)100294 (MU)
77468 (LT)100295 (MU)
77409 (LT)06296 (MU)
1 77470 (LT)06297 (MU)
77471 (LT)106298 (MU)
77472 (LT)1 06299 (MU)
77473 (LT)06300 (MU)
77474 (LT)106301 (MU)
77475 (LT)
Acreage
33.420
53.580
00.990
J.V.MO
40.210
37.500
49.320
43.440
53.170
37.440
26.990
40.700
31.1 10
27.560
31.31 0
37.800
Tab
15
li.
17
KS
19
211
21
22
2.1
24
25
2 O
27
28
29
311
l
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Claim Number
SSM 582515
SSM582516
SSM 582517
SSM 582518
SSM 60U904
SSM 600910
SSM 612548
SSM 6 12549
SSM 612550
Part
Part 31
Tart32
Pail33
Tail 34
Pails 35,42, 43,47 and 48
Part 36
Parts 37 and62
Part 38
Part 39
I'lan
IK-8016
Ik-80 lo
Ik-8016
Ik-80 K)
Ik-8016
Ik-80 K)
Ik-8016
Ik-8016
Ik-8010
Parcel Number
1850
1851
1852
1853
1854
1855
1856
1857
1858
Township
Jacobson
Jacobson
Jacobson
Jacobson
Jacobson
Jacobson
Jacobsonit kiggS
kiggs
Riggs
Lease Registration Number
1 77476 (LTj 106303 (MD)
1 77477 (LT) I0()304 (MD)
177478 (LT) 106305 (MD)
177479 (LT) 106306 (MD)
1774X0 (LT) 106307 (MD)
177481 (LT) 106308 (MD)
1 77482 (LT) 1U6309(MDJ
177483 (LT) 106310 (MD)
177484 (LT) 10631 1 (MD)
TOTAL ACREAGE
Acreage
33.930
3 1 .950
36.250
30.970
60.940
41.450
34.540
23.400
45.010
1717.39
Tab
31
32
33
34
35
36
37
38
39
3
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APPENDIX 3
- WEATHER INFORMATION
TEMPERATURE AND PRECIPITATION
KAVA, OHTAfilO
Hean Daily Temperature ( C)
Hean Dally Max. Tenp.
Hean Dally Hln. Teip.
Extreme Max. Temp.
Extreme Hln. Temp.
Hean Rainfall (ma)
Hean Snowfall (en)
Hean Total Precip. (ma)
Greatest 24 hour Rainfall (mn)
JAN PSB HAR APH HAY JUH JUL AUU SBP OCT NOV DEC YEAR
Basalt. Iron Carbonate. Chlorite. 207o biotite. Traces Pyrite
Felsic dike. Iron Carbonate. 207o biotite. Traces pyrrhotite -t- pyriteIron formation: gossanous basalt containing massive sulphide. Most of it is pyrite. Minor chalcopyrite * sphalerite.
20"7o bedded pyrrhotite +
Ore: 50 07o iron carbonatized basalt + 5007o quart breccia containing IQ-15% pyrite and 2 07o tourmaline.
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APPENDIX 5
WATER QUALITY ANALYSIS
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Near North Laboratories Inc.
c- , o .-, O. t....' . i '
STATEMENT OF ANALYTICAL RESULTS
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dent:Contact:Address:
Pele Mountain ResourcesAlan ShefakySuite 21 220 Richmond Street EastToronto, ONM5C2R9
Preparation: All sample* were processed In accordance lo the recommendations of -Standard Method* for the Examination of Water and Wastewatef, AWWA, 16th Ed. and Ontario Ministry of the Environment and Energy protocols.
Notes: TOS denotes Total Dissolved Solids; TSS denotes Total Suspended
BwKla MoUy Prloto, Director
LAB*: DATE SAMPLED. DATE RECEIVED: DESCRIPTION.
AlkalinityAmmoniaConductivitycyanide. TotalrUrdnetsOH 4. Of ease. TotalPHPhosphorous, TotalSulfateTD6TS8AluminumCadmiumCalciumCopperIronLeadMagnaalurnMolybdenumNickelZincArsenicMercury
We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.
At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time.
The assessment credit is being reduced by S164,079.00. The TOTAL VALUE of assessment credit allowed, based on the information provided in this submission, is S436,196.00.
If you have any question regarding this correspondence, please contact LUCILLE JEROME by email at [email protected] or by phone at (705) 670-5858.
Yours Sincerely,
Ron GashinskiSenior Manager, Mining Lands Section
Cc: Resident Geologist
Pele Mountain Resources Inc. (Claim Holder)
Assessment File Library
Pele Mountain Resources Inc. (Assessment Office)
Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:16843
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