Recently Acquired Properties in Rainy River District
Crystal Lake Mining Corp. (“Crystal Lake”) retained Ronacher McKenzie Geoscience Inc. (“Ronacher McKenzie”) and Lightfoot Geoscience Inc. (“Lightfoot Geoscience”) to prepare an Independent Technical Report on Crystal Lake’s Nicobat Project near Fort Frances, Ontario.
The property consists of 27 non-contiguous, unpatented mineral claims covering a total of 4,224 ha in seven townships. Claims 4273688 and 4276458 are fully owned by Crystal Lake. Crystal Lake holds a 15% interest in claim 4271029 with the right to increase its interest to 60% by paying $2,000,000 to Emerald Lake Development Corp. (“Emerald Lake”), the holder of the mineral rights to this claim. Crystal Lake has the right to increase its interest to 85% by paying $8,000,000 to Emerald Lake with the option to obtain the remaining 15%. All other claims are subject to an agreement dated September 27, 2016, in which Emerald Lake granted Crystal Lake the right of first refusal to purchase 100% interest in the claims. Crystal Lake chose to exercise this right of first refusal on September 28, 2017 and Emerald Lake agreed to vend 100% interest in the claims to Crystal Lake in exchange for shares. As of the effective date of this report, the transaction is subject to regulatory approval. The property remains subject to a net smelter return (“NSR”) of 2%.
The area has been explored for Ni-Cu-PGE sulfide mineralization since the early 1950s but no major deposit has been found to date.
The property is located in the Wabigoon subprovince (Superior Province) of the Canadian Shield. The claims in Dobie, Mather, Kingsford, Potts and Tait townships are located in the Rainy River Block, which is characterized by metavolcanic rocks into which large felsic and smaller mafic-ultramafic intrusions were emplaced. The claims in Dogpaw Lake and Heronry Lake areas are located in the Kakagi-Rowan greenstone belt; sills of mafic-ultramafic rocks intruded into metavolcanic rocks. Mineralization was intersected in claim 4271029; it consists of semi-massive breccia and disseminated sulfides, dominantly pyrrhotite (60-70%) with some pentlandite (10%) and minor chalcopyrite. Elsewhere in the area, Ni-Cu-PGE occurrences are associated with mafic-ultramafic intrusions.
Crystal Lake completed a magnetic and VLF survey on claim 4271029 in 2015. No significant magnetic or electromagnetic signatures were noted on the survey apart from that of a powerline. In addition, one diamond drill hole was completed in the same year (A-0-15). The drill hole intersected gabbro and pyroxenite and up to 10% disseminated sulfides (pyrrhotite, pentlandite, chalcopyrite). Twelve drill core samples were collected by Crystal Lake for assaying; grades of up to 0.226% Ni and 0.219% Cu over 0.91 m and 0.547% Ni and 0.218% Cu over 0.42 m were returned.
A personal inspection of the historic drill core was completed by Dr. Peter Lightfoot, P.Geo., and Dr. Elisabeth Ronacher, P.Geo., from June 6 to 8, 2017. They visited claim 4271029, inspected the drill hole collar location and reviewed drill core. Dr. Lightfoot visited the property again from October 22nd, 2017, and collected 22 core samples from drill core A-0-15. Assay results of these samples are comparable with the original samples.
Based on the geological setting of the property, the historic exploration data and the limited current exploration results, Lightfoot and Ronacher conclude that potential exists to discover Ni-Cu-PGE sulfide mineralization on the claims comprising the Nicobat Project.
We recommend an airborne magnetic and electromagnetic (mag-EM) survey over the property to determine magnetic and coincident EM anomalies that could represent mafic-ultramafic intrusions that potentially contain Ni-Cu-PGE sulfide mineralization. We further recommend drill testing these anomalies should any be identified.