Beaufield Resources Inc

Canadian Resource Exploration Company

Details

Located in the historic Thunder Bay Mining District in Northern Ontario, the Hemlo property has excellent access to transportation infrastructure including highway access, and close proximity to rail, air, and power. Barrick’s world class Hemlo Gold Mines are located only 15 kilometres east of the property’s boundary.

The Hemlo project consists 218 staked claims, totalling 3488 hectares (34.9 km2) and is located on the north shore of Lake Superior, 10 km east of the town of Marathon, approximately 770 kilometres northwest of Toronto. The property is situated along the Trans-Canada Highway and the main transcontinental line of the Canadian Pacific Railroad crosses the southern part of the property. A 115 kilovolt power line is located in the northern portion of the property.

The property, located in the western Superior Province, lies within the northern part of the Wawa Subprovince, in the Neoarchean Hemlo greenstone belt. The greenstone belt is bounded to the north, south and east by large granitoïd batholiths. The western limits of the belt and its continuity with the Terrace Bay-Schreiber greenstone belt, is intruded by the Proterozoic Coldwell alkalic intrusion and obscured by the water of the Lake Superior

Location and Infrastructure

The Hemlo property is located in Ontario, on the north shore of Lake Superior, 10 km east of the town of Marathon and approximately 770 kilometres northwest of Toronto. It is accessible by road all year round.

Infrastructure is excellent and conductive for low cost exploration and lower cost mine development, as the Trans-Canada Highway, a CPR rail line and a high voltage power line cross the property and the Hemlo gold mining operations of Barrick Gold Corp. are nearby.

Geology and Resources

Regional Geology

The Hemlo Property is located in the east-central part of the Archean Schreiber-Hemlo greenstone belt which is situated in the northern part of the Wawa Subprovince, Superior Province of the Canadian Precambrian shield. The Hemlo portion of this greenstone belt is bounded to the north, south and east by large granitoid complexes which are the same age or older than the metavolcanics. Metamorphosed mafic volcanic flow rocks and intermediate to felsic calcalkaline volcaniclastite sedimentary rocks form the western part of the Hemlo greenstone belt, whereas metamorphosed greywacke-mudstone and minor metaconglomerate sedimentary rocks are predominant over metavolcanic rocks in the eastern part. The rock units strike easterly, have steep to vertical dips, are isoclinally folded and normal faulted. Metamorphism is lower greenschist in the west part of the Hemlo belt up to upper amphibolite facies in the east.

Property Geology

The property is underlain by metavolcanic and metasedimentary rocks having been intruded by the Heron Bay Pluton granodiorite on the south and the Melgund Stock tonalite on the north-east. These rock units and their alteration, as observed in outcrop and drill core, bear a close similarity to those rocks and alteration at the Hemlo gold deposit located about 15 km on strike to the east. The property rock units strike east to north-easterly across the property and dip steeply to the south. Isoclinal folding has been observed in outcrop and the magnetic trends underlying the property suggests tight isoclinal-like folding of the rocks. The Hemlo-Heron Bay regional fault crosses the property on the south and a splay fault having an associated barite alteration zone with trace element signatures similar to the Hemlo gold deposit crosses on the north.

Deposit Model

The World-Class Hemlo gold deposit is the exploration target and deposit model for the Northern Eagle Gold Property exploration and is located about 15 km to the east. The Hemlo gold deposit was discovered in 1981 after years of largely unsuccessful exploration attributed to the lack of a surface exposure and any distinct geophysical response. Tom Muir of the Ontario Geological Survey has proposed that the Hemlo gold deposit is “ an atypical, mesozonal-orogenic, disseminated-replacement-stockwork deposit, broadly synchronous with D2 [second stage deformation] and “middle” stage granitoid plutonism, prior to or synchronous with peak regional metamorphism, and involving magmatic ± metamorphic fluids”.

Total production from the three mines on this deposit (David Bell, Golden Giant and Williams Mines) to December 31, 2008 is 626 669 kg (20,147,393 ounces) of gold and reserves/resources are stated to be 35 119 kg (1,129,048 ounces) for an overall total of 661 788 kg (21,276,441 ounces) of gold. Grades and tonnages vary with open pit versus underground operations and within the different locations of underground operations.

The Hemlo gold deposit varies from 5 to 50 metres in thickness extending for approximately 3 000 metres in length to about 2 000 metres deep and dipping at 60 to 70o to the northeast. The ore zone gets thicker moving from the east to the west with a general decrease in average grade. The deposit plunges moderately to the west and is rarely exposed on surface. About 90% of the ore is below 500 vertical metres deep.

The predominant gold emplacement controls appear to be the restraining bend in the Hemlo greenstone belt, a competency contrast at a major rock contact and a permeable fragmental unit. Barite is associated with the deposit and is believed to be a product of the mineralizing hydrothermal system.

The deposit has a West Segment which exhibits many, lower-grade, irregularly mineralized zones with fracture-controlled or disseminated gold mineralization and a Main Segment consisting of two main tabular zones with mainly disseminated mineralization. The Main Segment contains most of the ore. The Hemlo deposit is enveloped by an inner potassic-feldspar alteration zone grading out into a sericitic alteration zone, both combined having dimensions of about 4 kilometres long and up to 400 metres wide.

The main and lower ore zones of the Hemlo deposit are associated with a tight to isoclinal fold in the Moose Lake porphyry and occur at the geological contacts between the porphyry and metasedimentary rocks. Barite is associated with both ore zones and forms part of the barite ore. Both the main and lower ore zones of the Hemlo deposit have feldspathic ore, sericitic ore and several minor types. The ore is variably enriched in molybdenum (as molybdenite), gold (in the native state), arsenic (as realgar), mercury (as cinnabar), antimony (both native and as stibnite), barium (as barite and barium-rich microcline), vanadium (as green vanadium-rich mica) and minor biotite. The ore normally contains 3 to 35 percent pyrite and molybdenite. The molybdenite imparts a bluish color to the ore and is a good indicator of the presence of gold. The feldspathic ore is typically of higher grade.

Mineralization

The Hemlo Property has two targets zones to explore for Hemlo-style gold deposits: the primary target is the baritic zone and the proposed Melgund Zone represents a second less defined sericitic-biotitic alteration zone target. The baritic zone is within an alteration zone situated at the contact between mafic metavolcanics and metasediments, which crosses the northern part of the claims for a distance of approximately seven kilometres. The Melgund alteration zone is situated within a band of metasedimentary/volcaniclastic rocks crossing the southern part of the Property for a distance of about five kilometres, and is near the Hemlo-Heron Bay regional fault. Geochemically-anomalous gold values are infrequently noted from historical analytical results given for surface rock and drill core samples across the Property. However, trace elements noted at the Hemlo gold deposit, such as arsenic, barium, chromium, mercury, molybdenum and antimony, are anomalous especially in the barite zone. One significantly high gold value was noted within the Melgund alteration zone.

History

After the initial discovery of the Hemlo gold deposit by Corona Resources Inc. during a winter 1981 drilling program, thousands of mining claims were staked. In 1983, the current Northern Eagle Gold Property was covered by fourteen different claim blocks of which most were subjected to surface and drilling exploration work. Work has continued intermittently at a reduced level of activity up to present with a large data base of 100+ exploration reports having been filed with the Ontario government.

Beaufield Resources Inc. completed ground magnetic surveys, geological mapping, rock sampling and assaying and diamond drilling from 2004 to 2007. In January 2009, Beaufield had an airborne versatile time-domain electromagnetic (VTEM) system and aeromagnetic survey flown over the Northern Eagle Gold Property.

In April 2009, Beaufield signed a letter of intent agreement whereby Jiminex Inc. (“have an option (the “Option”) to acquire an undivided 50% of Beaufield’s undivided 100% interest in the Northern Eagle gold property (earlier referred to as the Hemlo property) by paying a non refundable cash deposit of $10,000 on signing the letter of intent and a further $90,000 cash or Jiminex common share equivalent. In addition, Jiminex must make exploration expenditures of $1,300,000 over a three year period all subject to an up to 2 % net smelter royalty to outside non-related parties. Jiminex will be operator during the Option earn-in period. Jimininex fulfilled the earn-in in the summer of 2013.

Exploration and Outlook

The Hemlo Property is interpreted to be similar in geology, as to rock types, structures and alteration, to that occurring at the World-Class Hemlo gold deposit located approximately 15 kilometres to the east. It is concluded that the Property has an excellent potential for hosting economic Hemlo-style gold mineralization and, therefore, requires further exploration for the following reasons:

a.) The geological environment resembles that occurring at the Hemlo gold deposit with the presence of clastic and volcaniclastic sediments, mafic to intermediate volcanics, frequent quartz feldspar dykes, a nearby major granitic body (Heron Bay Pluton – one theoretical source for the Hemlo gold mineralization), isoclinal-folding, the Hemlo-Heron Bay regional fault and a barite alteration zone with anomalous levels of potassium oxide, arsenic, barium, chromium, mercury, molybdenum and antimony which are significant oxides and trace elements in the rocks in and surrounding the Hemlo gold deposit. A restraining bend of the Hemlo greenstone belt, as favorably occurs at the Hemlo deposit, also appears to exist on the Northern Eagle Gold Property. Gold having geochemically-anomalous values (30-50 ppb, less frequently 50 ppb+ to a high of 500 ppb) is infrequently noted in the historical database, including one high value of 11.65 g/t over 1.12 metres (0.34 ounces per ton over 3.7 feet) in a intrusive porphyry.

b.) Approximately 90% of the Hemlo gold deposit occurs 500 metres below ground surface and less than 1% of the target zones on the Property have been drill-tested below (if tested at all) 500 metres deep. The western part of the Hemlo greenstone belt, which covers the Northern Eagle Gold Property, is considered to be at a higher structural level than the eastern part, where the higher grade disseminated gold replacement segment of the Hemlo gold deposit is situated. This adds to the need for deeper drill exploration on the Northern Eagle claims.

c.) Significant gold mineralization in a similar geological environment exists on the Stenlund gold property located about three kilometres to the southwest of the Northern Eagle Gold Property.

d.) Lower cost exploration and lower cost for potential mine development exists for the Property having an excellent infrastructure of nearby gold mining operations and towns, and the presence of the Trans-Canada paved highway, a rail line of Canadian Pacific and a high voltage power transmission line all crossing the claims. Aboriginal and environmental concerns should be less difficult in this progressive area.

A large amount of widespread deep ( greater than 500 vertical metres ) diamond drilling is required to test for Hemlo-style gold mineralization on the Hemlo Property. However, at this stage no details, including budget proposal, can be stated as the specific targets and the amount of drilling required will depend greatly on preliminary exploration work.

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