Geology

Like the adjacent Fenelon Property the Grasset Property is located within the Archean aged Harricana-Turgeon greenstone belt, part of the prolific Abitibi Sub-Province of the Canadian Shield. The property covers approximately 30 kilometres of the Detour/Sunday Lake Deformation Zone ("SLDZ") with the western margin of the property located approximately 9 kilometres from the Fenelon Discovery Zone and 80 kilometres east of the Detour Gold Mine development project

The SLDZ is one of four principal, east-west trending "breaks" which are the loci of over 125 million ounces of historic gold production from the Abitibi -- making it the second largest gold-bearing domain in the world. The breaks served as the principal conduits for gold-bearing fluids throughout the Abitibi. Gold deposits in the Abitibi typically exhibit high grades -- on average just under 8 g/t gold -- and tremendous vertical continuity with the Detour Gold deposit having been mined to over 800 metres vertical depth and others in the Abitibi mined to depths exceeding 2,000 metres.

The Grasset Property is almost completely overburden covered. To the west the area is dominated by a relatively high-standing sand plain, while the east the topography falls off toward Lac Grasset. Available geological information is largely limited to historic drilling which is concentrated along the southern margin of the property.

The Grasset area tracks the interpreted eastward extension of both the Detour/Sunday Lake and Lower Detour Deformation Zones for approximately 30 kilometres. The two dominant structural features in the area are separated by an area of low magnetic susceptibility interpret to represent a sedimentary wedge developed between volcanic sequences to the north and south. The volcanic rocks north of the SLDZ have been folded around a series of granitic bodies to north locally developing isoclinal fold structures on a regional scale which allows for the development of axial planar deformation with potential to host gold mineralization.

To the north of the SLDZ the geology of the Grasset Property is dominated by mafic to felsic volcanic rocks which are, at least in the western part of the Property, introduced by a laterally extensive series of mafic to ultramafic intrusions. These intrusive rocks are known to host nickel-PGE mineralization which is an important target on the Grasset Property.

Very little is known about the sedimentary domain which separates the northern volcanic sequence from a second similar sequence to the south. The sedimentary domain is 2-3 kilometres wide at the western end of the property tapering to less than a kilometre in width to the east near Lac Grasset.

The southern volcanic domain is separated from the central sedimentary domain by the Lower Detour Deformation Zone (LDDZ) which also spans some 120+ kilometres in an east-west direction from Ontario across Quebec. To the west there is locally significant gold mineralization associated with this feature but in the Grasset area it is largely untested. The southern volcanic domain is time equivalent with the rocks in the Selbaie and Mattagami VMS camps and therefore highly prospective for this style of mineralization.

Along the northern boundaries of the Grasset property the volcanic rocks are in contact with later felsic plutonic rocks and through much of the property the structural and metamorphic effects of the intrusion of this late plutonic suite are evident.