McFauld's Lake Overview
With 875 claims covering approximately 14,000 hectares, Probe Mine's has assembled one of the larger land packages in the McFauld's Lake greenstone belt stratigraphy. The Corporation's holdings are distinguished by their location within all of the prospective settings where major discoveries have been made in the McFauld's area to date, including chromite, nickel, copper, platinum group metals (PGM), base metal volcanogenic massive sulphide (VMS), gold and vanadium. Two of Probe's properties, Tamarack and Black Creek, have demonstrated this potential with the discovery of Cu-rich VMS mineralization and chromite, respectively, while considerable untested potential remains on all properties. Probe's four projects, Tamarack, Victory, Black Creek and McFauld's West, each represent a unique setting, and a unique potential, in the Ring of Fire.
McFauld's Lake Location Map
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The Company's McFauld's Lake area projects lie in a sparsely vegetated area of subdued topography in the James Bay Lowlands of Northern Ontario. Greenstone belt volcanic stratigraphy at McFauld's Lake is overlain by a thin cover of Paleozoic sedimentary rocks, making the identification of geophysical anomalies, followed by diamond drill testing the optimum exploration strategy in this region.
Two main geologic settings have been targeted by mineral exploration: a mixed volcanic sequence hosting base metal VMS mineralization; and an ultramafic horizon located along the contact of the volcanics that is host to nickel-copper, chromite and gold discoveries. The volcanics represent the majority of the rock types found in the 100km long belt, with ultramafic intrusive so far identified only along a 20km zone near the center of the volcanic belt.
In addition to the mixed volcanics and ultramafics, a gabbroic/mafic complex has also been identified, which is spatially associated with the ultramafic intrusive. Significant intercepts of vanadium-rich mineralization have been reported by Noront Resources from the gabbro.
Probe Mine's has assembled a significant land package within all three geologic settings, and has to date identified VMS mineralization on its Tamarack property and chromite mineralization on its Black Creek Project. Owing to the size and location of these properties significant areas remain to be tested and considerable potential exists for the identification of other VMS and chromite deposits, as well as nickel-copper and precious metal deposits.
McFauld's Lake Geology
Very little is known about the geology of the McFauld's Lake area, with most of the information obtained from recent drilling in the area of the VMS, Nickel and chromite discoveries. The McFauld's Belt, commonly referred to as "The Ring of Fire", is an over 100km long, arcuate greenstone belt comprised predominantly of a bimodal population of basaltic and rhylotic-dactic volcanic rocks with minor intercalated sediments. At the center of the midpoint of the arc, situated at the contact of the greenstone belt and granodioritic country rocks, is a 20km long, thin, sill-like body of variably altered and sheared ultramafic intrusive, which hosts all of the known Ni-Cu, PGM and chromite mineralization. The Eagle's Nest Ni-Cu deposit is hosted in an interpreted "feeder dyke", which is thought to have acted as one of the conduits for magma emplacement.
Mineralization in the Ring of Fire is as varied as it is extensive (Insert Map shown above and label map: Magnetic Map showing Probe Mines' properties and selected mineral occurences).
To date, potential economic sources of Cu-Zn, Cu-Ni, Cr2O3, PGM, Au and V have been identified in the felsic volcanic and ultramafic intrusive rocks of the belt.
The most significant VMS deposits occur in two areas of the belt, central and northern,and are distinguished by copper-rich and zinc-rich varieties, respectively. The central VMS deposits are typically associated with highly Mg-metasomatized felsic volcanics, characterized by intense talc alteration. Although some examples contain zones of zinc rich mineralization, most are notable for their high-grade copper. The McFauld's deposit (Spider) reported over 18m of 8% Cu in drill intersections, while Probe's A-Zone discovery hole returned 7.8m at 3.1% Cu.
The discovery of nickel-rich magmatic massive sulphide deposits was a turning point for the McFauld's area. The best example of this mineralization is represented by the Eagle's Nest deposit (Noront) and is characterized by thick, very high-grade intersections, including over 46m of 6.3% Ni, 2.8% Cu and 15.1g/t Pt+Pd+Au. The most recent estimate for Eagle's Nest reports 6.9MM tonnes grading 2.04% Ni, 0.95 and 4.7g/t Pt+Pd in indicated resources and 4.3MM tonnes grading 1.42% Ni, 0.87% Cu and 4.2g/t Pt+Pd in inferred resources.
Following the nickel discovery, attention focused on the Belt's chromite potential with thick, high-grade drill discoveries by Freewest Resources in 2008. Chromite has surpassed all other commodities in terms of volume, and the recent acquisition of Freewest and Spider by Cliffs Natural Resources indicates its economic importance to the Belt. Chromite occurs as thick massive, semi massive and disseminated layers within the thin, ultramafic horizon situated along the contact of the greenstone belt. A preliminary estimate indicates a current drilled resource(s) of 69.5Mt averaging 31.9% Cr2O3 in the Black Thor zone, with potential to increase these resources significantly through continued exploration. Probe Mine's Black Creek deposit is interpreted to be the southwest extension of the Black Thor horizon, and contains similar mineralization. In 2009 Probe reported drill intersections of up to 62.4m averaging 34.5% Cr2O3.
Maps & Images
McFauld's Lake Location Map
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McFauld Lake Regional Magnetic Map
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Project Summary
The Black Creek chromite discovery, discovered in 2009, lies along the ultramafic horizon containing the main chromite deposits which represents a key segment to future chromite mining operations, lying between the Black Thor (Cliffs) and Big Daddy (Cliffs-Spider-KWG) deposits.
The Black Creek deposit yielded results including 62.4m of 34.5% Cr2O3 and additional core intervals ranging as high as 43.4% Cr2O3. Highly anomalous values of platinum (0.4g/t) and palladium (0.6g/t) were also found, while values for nickel were within the range of ultramafic rocks with a maximum of 0.3%.
Strategically located between the Black Thor (Cliffs) and Big Daddy (Spider-KWG-Cliffs) deposits, the Black Creek deposit is interpreted to represent the southwest extension of the Black Thor horizon. Its strategic importance lies not only in the thick, high-grade mineralization, but also in its location and morphology. The Black Creek deposit lies in the middle of the Black Thor and Big Daddy deposits, separating these two zones. It is also close to bedrock, witnessed by outcrop on the property in close proximity to the deposit. This is important for two reasons, as it provides low stripping ratios for mining and, perhaps more importantly, a stable base for infrastructure and operations. The McFauld's area is characterized by muskeg and it is rare to find stable footings. The morphology of the deposit is also important as it appears, from drilling, to represent a consistent lens of mineralization uninterrupted by faulting or deformation.
43-101 RESOURCE ESTIMATE
The resource estimate, released on August 23, 2010, meets the guidelines for reporting mineral exploration programs as set out in National Instrument 43-101, was based on an initial 15 diamond drill holes that tested the chromite horizon along approximately 200 metres (m) of strike length and to a vertical depth of approximately 175 m at a spacing of approximately 50 m by 50 m. Mineralization at Black Creek is dominated by three massive chromite layers, with subordinate amounts of banded, semi-massive and disseminated chromite found between and below the massive layers. The cumulative thickness of the mineralized zone averages approximately 65 m.
The following table summarizes the Black Creek chromite mineral resource estimate at a cut-off grade of 30% Cr2O3 :
Summary of Black Creek Chromite Resources
| Category | Tonnes | Avg. Cr2O3 % | Cr:Fe Ratio |
| Measured (M) | 3,729,000 | 39.90 | 1.8 |
| Indicated | 1,985,000 | 40.06 | 1.8 |
| Total M & I | 5,714,000 | 40.0 | 1.8 |
| Inferred | 2,726,000 | 40.99 | 1.9 |
The mineralized material was classified into the Measured, Indicated or Inferred mineral resource category on the basis of a combination of the following factors: (a) confidence in the geological and mineralization continuity, (b) position of blocks in relation to the range of influence as defined by the variographic analysis and (c) and the search ellipse ranges
The Black Creek deposit Measured and Indicated resources have been categorized taking into account the search parameters in relation to variographic results, and the observed geological and mineralization continuity based on sectional interpretation. The inferred resource down to a vertical depth of about 360 m is based on drilling intercepts recorded at this depth at the adjacent Big Daddy deposit. The known mineralization in the entire McFaulds Lake sill has been considered in the process of resource categorization.
The cut-off grade of 30% Cr2O3 is based on consideration of chromite operations in South Africa, Zimbabwe and Finland. The lack of infrastructure in the McFauld's Lake area demands an above-average grade deposit to ensure reasonable prospects for economic extraction.
The report also recommends additional diamond drilling to establish the full lateral limits of the deposit and the continuity of chromite horizons down dip. The Company has now mobilized crews to the McFauld's Lake area to begin the drilling recommended by Micon in order to expand the deposit in preparation for updating the current resource estimate. The drilling will comprise six holes designed to test the lateral continuity of the deposit along an additional 100 m to 150 m of strike length and the down-dip continuity to approximately 400 m depth, more than twice the depth of the currently drilled resource.
Probe will now focus on expanding the deposit and updating this current resource through the next phase of drilling. The results of this resource estimate show that Black Creek is not only strategically located between the Black Thor and Big Daddy deposits, but is a quality, high-grade deposit with strong economic potential. To date, Probe has only tested the zone down to a 175 m vertical depth and this next program, if successful, will more than double this to 400 m as well as extending the chromite along strike.
The Company will provide an update on the drilling once the program has been completed.
Maps & Images
Magnetic Map Black Creek Discovery
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Selected Mineral Occurances
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Project Summary
The Tamarack Project comprises 360 claims covering over 5,700 hectares of the McFauld's Lake volcanic belt immediately northeast of recent nickel and chromite discoveries made by Noront, Freewest and KWG /Spider.
Tamarack is located in the central part of the McFauld's Belt and contains both the northern extension of the central VMS horizon and the interpreted northeast extension of the mafic complex. The property, therefore, has potential for both
base metal and vanadium-(iron) mineralization.
In 2005 the Company drilled two holes, M6 and M7, which intersected Cu-rich VMS mineralization approximately 2.5 kilometres along the projected northern extension of the central VMS horizon from the McFauld's 1, 2 and 3 deposits. In 2008, Noront Resources reported high-grade vanadium mineralization approximately 5km southwest of the Tamarack property within gabbroic rocks interpreted (from airborne magnetics) to extend into the Tamarack claims.
Maps & Images
Tamarack Magnetic Map
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Project Summary
The Victory project represents Probe's largest property in the area. It is located along an over 70km long V-shaped greenstone belt projecting southeast from the central part of the McFauld's Lake Belt. It is our largest property comprised of 452 claims staked in 2 blocks - east and west. Its relationship to McFauld's is not well known and it may represent an associated belt or the southeast extension of the McFauld's Belt.
Probe is the first company to explore this property. Drilling along the belt has intersected a mixed volcanosedimentary environment similar to that identified on the Tamarack property. Mineralization is also similar, consisting of base metal-bearing massive and stringer sulphide zones hosted by altered felsic volcanics. Unlike the Tamarack property, sulphide mineralized argillites and graphitic argillites have been identified in the Victory volcanics.
Victory/Noranda Comparison Map
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The aerial extent of Probe's land position in the Victory Belt is comparable to that of established VMS camps, most notably the Noranda area of Quebec, which contains numerous deposits and base metal occurrences. Similar to both Noranda and Matagami, which are characterized by multiple deposits within a VMS camp, exploration successes by Probe and others throughout the McFauld's area indicate camp potential in this region. To demonstrate the size of the Victory belt with respect to the Noranda Camp, the two areas are shown to scale in the diagram below. This figure shows the interpreted geology of the Victory project with known conductors at the same scale as the Noranda Camp. Note the similarity in distribution and stratigraphic control of conductors as well as the possible vertical "stacking".
Maps & Images
Victory Magnetic Map
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Victory Drill Locations
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Victory East Magnetic Map
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Project Summary
The McFauld's West project was staked in 2008 following the discovery of the Eagle's Nest deposit and the ensuing staking rush. The property represents a conceptual model based on the potential extension of structures which may control emplacement of the ultramafic conduit hosting nickel-rich massive sulphides at Eagle's Nest.
From Magnetic data, a northwest-trending structure is interpreted near the contact between the northeast-trending ultramafic horizon and the ultramafic intrusives identified at Eagle's Nest and on the adjacent Noront property. As a parallel, the McFauld's West claims were staked at the intersection of the projected northwesttrending structure and the regional magnetic contact approximately 2km to the northwest.
This contact between low (southeast) and high (northwest) magnetic character represents the division between the "Ring of Fire" and the "Central Dome". A number of isolated magnetic highs can be seen along this contact, and it was these that were targeted by staking. The McFauld's West property is considered to represent potential for structurally controlled emplacement of ultramafic intrusives, as is seen to the southwest, and therefore Ni-Cu-PGM mineralization.
A VTEM electromagnetic-magnetic ("EM") survey was completed in June 2010. The property covers magnetic anomalies situated along the projected extension of structures interpreted to be the conduits for the ultramafic magma responsible for the deposition of nickel-bearing massive sulphides. Results of the survey will be used to evaluate the property for potential nickel-copper massive sulphide targets which will be tested by follow-up drilling.
Maps & Images
McFauld's West Map
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