Snake Falls Property

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Location and Access

The 21-unit property is located within the Red Lake Mining Division, some 40 km southeast of the town of Red Lake, Ontario, in the MNR area of South of Otter Lake. Access is afforded by the Snake Falls all weather gravel road, off Highway 105. A number of variably conditioned and maintained logging roads off the former can be used to further access the area. The Snake Falls road bisects the property providing excellent access.

Previous Work

1959-62 - Canico undertook regional airborne magnetic and EM surveys.

1969-70 - Similar surveys were conducted, (with some overlap), by Caravelle Mines Ltd., resulting in the drilling of one hole, testing an EM response several km ENE of the area. Disseminated sulphides were intersected within metavolcanic rocks. The horizon tested may trend West onto the property.

1976-83 - Selco Exploration Company also performed an aeromagnetic survey, in conjunction with ground magnetic and EM-17 surveys. The company drilled 3 holes, with the most significant intersection returned as follows - 0.28% Cu, 0.14% Zn over 2.43 m, within a biotite-anthophyllite schist. The sequence is considered by some concerns to lie within a more Southerly, 'target' strata, several km from the previously mentioned mineralized horizon, parallel to it, with both representing possible exhalites.

1987-99 - Noranda undertook comprehensive exploration on several properties within the greenstone belt, including properties adjacent to the Snake Falls claims. The company conducted airborne magnetic/EM surveys, with ground geophysical follow-up, plus geochemical surveys and mapping. Exploration covered areas on and around several VMS targets, including the Dixie deposits, Bug River, Horseshoe, Inmet-South Bay, Sandy Pines, Garnet Lake, Ben Lake and Copperlode English-Garnet.

1991-94 - Messrs. Campbell and Hawke acquired an area partly co-incident with that under examination, conducting Max-Min and ground magnetic surveys and a smaller Pulse EM survey.

1994-95 - Inco optioned the property, conducting an expanded magnetic and Max-Min survey program, with the subsequent drilling of two holes for 381m. The first intersected sulphides in an ash tuff; the second, a TDEM anomaly, intersected cupriferous sulphide stringers in a biotite-anthophyllite schist.

1997-2001 - Tri-Origin Exploration optioned the property, conducting a more extensive program of line cutting, an orientation soil survey, Max-Min and ground magnetic surveys. 717m of drilling (five holes) were completed, testing East-West trending stratigraphic horizons, considered to represent a sequence permissible to hosting base metals. Disseminated sulphides, including weak cupriferous material was intersected. The most significant intersections returned were 0.74% Cu and 12.3 g/t Ag over 0.98 m (TC-98-03), and 288 ppb Au over 1m (TC-98-01). The company recommended further exploration along the "North" and "South" horizons, previously uncovered by ground EM surveys.

2001 - Tri-Origin entered into an agreement with Goldcorp Inc. to conduct further exploration on its property. In 2002 Goldcorp drilled 3 holes immediately south of the property in search of gold. Results were negligible and the claims allowed to lapse.

2011 - The claims were re-staked by the current owner for the base metal potential that exists between the Dixie #17 and #19 showings.

Regional Geology

The region is part of the western Uchi Lake subprovince, underlain by the Archean Birch-Confederation Lake Greenstone Belt, of which the Red Lake Greenstone Belt forms the westernmost (known) portion. The Uchi-Confederation greenstone belt consists of 3 major volcanic assemblages, specifically, the Balmer, Woman and Confederation. According to some researchers, at least a portion of the 2840 Ma Woman Assemblage may form an early sequence within the Confederation.

The Balmer Assemblage consists mainly of tholeiitic to komatiitic flows, sills & sub-volcanic intrusions, with minor iron formation, rhyolitic flows and associated pyroclastic rocks, plus clastic sediments. The felsic rocks have PH affinity. The assemblage is believed to represent plume-related komatiites-tholeiites and arc-related felsic volcanic rocks (marine) erupted at a continental margin (Parker, 1998). It hosts all major gold deposits in the Red Lake greenstone belt, plus several small VMS occurrences, e.g. Mulcahy Township.

The Confederation Assemblage, has been dated at 2750 to 2730 Ma (Balmer assemblage, dated at 2992 to 2925 Ma), and is characterized by a calc-alkalic, mafic to felsic volcanic rock sequence with abundant clastic and chemical sediments. It likely rests unconformably on the Balmer, with the contact possibly represented by a conglomerate. The South Bay mine, a Volcanogenic Massive Sulphide ("VMS") deposit, located at Confederation Lake, which produced some 1.6 mt grading an average 11.06% Zn, 1.8% Cu A 2.12 oz/t Ag lies within the Confederation Assemblage. It is essentially a bimodal assemblage of mafic to felsic, calc-alkaline effusives, pyroclastic rocks and sediments. The boundary between the Confederation and Balmer assemblages may be represented by conglomerate. The rocks were probably deposited in an island-arc setting, with marine and sub-aerial components. VMS mineralization is usually associated with effusives originating from high-level magma chambers, which are believed to be the heat source, also, for mineralized hydrothermal systems, fitting the general model for VMS deposits (Noranda, Mattabi, Kuroko types).

The felsic volcanic suite can be divided into 3 signature chemistries, termed FI to Fin, (common to many Archean felsic volcanic rocks), based on their trace element geochemistry. To date, all known massive sulphide occurrences in Birch-Uchi are located within the Fin felsic volcanic suite, with distinctive ZrATi02-Nb7Y signatures, REE patterns (flat La/Ybn profile, negative Eu anomalies). The chemistry is understood to be typical of intra-back-arc rifts. However, Mattabi-style VMS deposits, which appear to be the closest analogue for the South Bay VMS deposit further east, are considered to be of the FH felsic volcanic suite. Overall, regionally, the felsic volcanic suite has a tholeiitic affinity, based on Y-Zr plots. Rhyolitic flows and associated pyroclastics are believed to have originated from a common magmatic source. Despite this, the geology is poorly understood save around the South Bay Mine, due in large part to overburden. Generally, it may be characterized by amphibolite facies volcanic and sedimentary rocks, plus intercalated, evolved felsic-intermediate rocks which appear to be a favourable host for VMS-style mineralization.

The majority of the claims are underlain by Confederation Assemblage rocks, which extends from Confederation Lake westwards, past Gullrock Lake. The South Bay Mine is hosted by the same assemblage plus additional, subsequently discovered sub-economic deposits, including the Dixie deposits to the north and east and the Joy, Hudson, Copperlode, Caravelle deposits, further east. These and several other mineralized zones appear to lie along two main sequences, roughly parallel and East-West trending, termed by some as the 'North' and 'South' sequences.

Property Geology

The underlying geology, is largely inferred from geophysical data. The thickness of surficial geology, based on local and adjacent drilling, ranges from a few metres to in excess of 40m further east, with the effect of the Trout Bay Moraine apparent on the property in the form of a low ENE-WSW trending ridge, along which, in part, is situated along the Snake Falls road. The property lies immediately south of a trend underlain by the so-called 'North Sequence' or 'North Horizon', a minimum 7 km strike length, approximately East-West trending mafic-felsic volcanic and sedimentary package with intercalated sulphide-bearing-carbonate-exhalite units. The 'Horizon' also hosts the adjacent Dixie 17,18 and 19 and Joy deposits. Interpretation of geophysical data on and adjacent to the property geology suggests the sequence may form a Western to northwestern extension of a southern assemblage hosting the Dixie 3 and Hudson base metal deposits. If correct, the assemblage would in all probability be Confederation, rather than Balmer.

Further, preliminary work on drill data analysis, combined with airborne geophysical interpretation, suggest there are several East-West to NW-SE trending mafic-felsic volcanic sequences with sedimentary components transecting the property. It is considered that the North adjacent Dixie properties (Tribute Minerals) lie along two or a single tight folded WNW-ESE trending sequence which may be correlated with a similar sequence to that underlying the property. The latter is sub-parallel, and likely has undergone modification by a small felsic-intermediate plug, responsible for rotating this particular sequence into a more northerly trend. Latest whole rock data obtained from area drill programs indicate, in particular with respect to magnetic highs, large series of poorly differentiated mafic volcanic rocks with a tholeiitic signature. These are intruded by transitional to calc-alkalic diorites and feldspar porphyries. Mafic Volcanic rocks are clearly chemically different, are characterized as low-medium Mg tholeiites and to a lesser extent, andesites.

Mineralization

The property lies immediately south of a number of VMS Cu-Zn prospects and occurrences (Dixie 18 - 110,000t @ 0.5% Cu, 12.5% Zn; Dixie 19 - 1.5% Cu, 6.33% Zn over 3.35m DDH, and Dixie 17 - 1.4% Cu, 7.34% Zn over 9.5m DDH) within two stratigraphic horizons. The mineralization is associated with intensely altered felsic pyroclastics exhibiting widespread Na-depletion and Mg-enrichment typical of a VMS hydrothermal system. The greenstone belt consists of three mafic to felsic volcanic cycles referred to as the Balmer (lower sequence), Woman (middle sequence) and Confederation (upper sequence) (Van Staal, 1998). To date, Cycle III which underlies the property, is the only sequence with proven economic base metal mineralization as represented by the South Bay Mine (1.6 MT grading 2.3% Cu, 14.7% Zn). In addition, the Cycle III sequence also hosts a number of significant sub-economic Cu-Zn base metal deposits and prospects (Table II). The Cycle III volcanic sequence consists of interbedded mafic volcanic flows and intermediate to felsic pyroclastics with lesser interflow sediments. The mineralization is largely hosted by altered felsic to intermediate pyroclastics exhibiting chlorite-biotite-garnet-anthophyllite footwall alteration mineral assemblages. Regional lithogeochemical sampling of altered volcanics indicates widespread Na depletion, Mg-enrichment typical of VMS footwall hydrothermal alteration.

Tribute Minerals conducted a 2000m Phase l drill program comprised of four NQ core holes. DX-2002-01 was designed to test the geophysical targets in the Dixie 19 zone, specifically the depth extension of the known mineralization previously intersected between 100 metres and 225 metres below the surface. The target, expected at 300-350 metres below the surface, was intersected in narrow sections of massive sulphide and associated disseminated and stringer Cu-Zn mineralization at a depth of 339 metres. Sulphides were comprised primarily of sphalerite and lesser chalcopyrite with minor pyrrhotite and pyrite; individual sections to 0.25 metres contained upwards of 50-60% sphalerite and generally less than 1% chalcopyrite. High grade zinc analyses to 29% Zn were reported, however the strongly mineralized sections did not exceed 1 metre in thickness. Elevated Ge values to 4.8 ppm were associated with the massive sphalerite. Chalcopyrite mineralization as low grade stringers occurred subjacent to the massive zinc mineralization. As per DX-2002-01, DX-2002-04 was designed to test the geophysical targets in the Dixie 19 zone, specifically the depth extension of the known mineralization previously intersected between 100 metres and 225 metres below the surface, and to provide an indication of lateral continuity of the mineralization identified in DX-2002-01. The target, expected at 375-400 metres below the surface, was intersected in narrow sections of massive sulphide and associated disseminated and stringer Cu-Zn mineralization at a depth of 407 metres. Sulphides were comprised primarily of sphalerite and lesser chalcopyrite with abundant pyrrhotite and minor pyrite; individual sections to 0.25 metres contained upwards of 20-30% sphalerite and generally less than 2-4% chalcopyrite. High grade zinc analyses to 9.65% and copper analyses to 1.95% were reported, however the strongly mineralized sections did not exceed 2-3 metres in thickness. Chalcopyrite mineralization as low grade stringers occurred subjacent to the massive zinc mineralization.

Mineralization in the Dixie 19 zone has been identified by drilling over a 500 metre strike length to a depth of 225 metres.

Conclusions

In the authors opinion, neither the Dixie 17 nor Dixie 19 showings have been adequately explored. Further, the horizon between the two showings is virtually unexplored and warrants additional deep EM and follow-up drilling. The current Snake Falls property hosts 2 kilometers of strike between the two showings as well as the down-dip extension. In lieu of the high grade zinc over significant widths and the current high commodity price in zinc, the Snake Falls property has the potential to contain significant reserves of high-grade zinc/copper that could be amenable to mining.