Total Eagle One $ 3,500,000

AT2 (Eagle Two and Blackbird One)

Delineation (for initial resource est.)

Diamond drilling $ 120 3000 $ 3 60,000

Drill support (geos, camp, assays, etc.) $ 5 5 3000 $ 1 65,000

Helicopter support $ 1 75 3000 $ 5 25,000

Diamond drilling $ 120 2500 $ 3 00,000

Drill support (geos, camp, assay, etc.) $ 5 5 2500 $ 1 37,500

Helicopter support $ 1 75 2500 $ 4 37,500

Linecutting $ 650 200 $ 1 30,000

Geophysical surveying $ 5 00 200 $ 1 00,000

camp support (geophysics) $ 2 50 200 $ 50,000

Heli support (geophysics) $ 1,500 100 $ 1 50,000

Drilling $ 1 20 4000 $ 4 80,000

drill support (geos,camp, assays, etc.) $ 5 5 4000 $ 2 20,000

Heli support $ 1 75 4000 $ 7 00,000

Subtotal $ 11,155,000

Contingencies (10%) $ 1,115,500

(1) Subject to permitting

The following report was prepared to provide a Technical Report compliant with the provisions

of National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”), and

an independent Resource Estimate of the nickel, copper, (platinum, palladium, gold- PGE)

mineralization on the Eagle One Deposit, Double Eagle Property, Sachigo Greenstone Belt,

James Bay Lowlands, Ontario. Noront has a 100% outright interest in the property, subject to a

1% Net Smelter Returns (NSR) Royalty on two claims, which be bought back at any time for

$500,000. The Eagle One Deposit lies on one of these two claims.

This report was prepared by P&E Mining Consultants Inc., (“P&E”) at the request of Mr.

Richard Nemis, President and CEO of Noront. Noront is a Toronto based company trading on

the TSX Venture Exchange (TSX-V) under the symbol of “NOT”, with its corporate office at:

15 Toronto Street, Suite 1000

Toronto, Ontario, M5C 2E3

Tel: 416-864-1456

Fax: 416-367-5444

This report is considered current as of July 3, 2008.

Ms. Tracy Armstrong, P. Geo., a qualified person under the terms of NI 43-101, conducted a site

visit to the Property on April 8 and 9, 2008. An independent verification sampling program was

conducted by Ms. Armstrong at that time.

In addition to the site visit, P&E carried out a study of all relevant parts of the available literature

and documented results concerning the Property and held discussions with technical personnel

from Noront regarding all pertinent aspects of the Property. The reader is referred to these data

sources, which are outlined in the “Sources of Information” section of this report, for further

details.

The purpose of the current report is to provide an independent Technical Report and Resource

Estimate of the nickel, copper, PGE mineralization present on the Eagle One Deposit, in

conformance with the standards required by NI 43-101 and Form 43-101F1. The estimate of

mineral resources contained in this report conforms to the CIM Mineral Resource and Mineral

Reserve definitions (December, 2005) referred to in NI 43-101.

This report is based, in part, on internal company technical reports, and maps, published

government reports, company letters and memoranda, and public information as listed in the

“Selected References” Section 19.0 at the conclusion of this report. Several sections from reports

authored by other consultants have been directly quoted in this report, and are so indicated in the

appropriate sections. P&E has not conducted detailed land status evaluations, and has relied upon

public documents and statements by Noront regarding property status and legal title to the

property.

Unless otherwise stated all units used in this report are metric. Nickel and copper assay values

are reported in percent (“%”) and platinum, palladium, gold and silver assays are reported in g/t

unless some other unit is specifically stated. The CDN$ is used throughout this report.

The authors wish to make clear that they are qualified persons only in respect of the areas in this

report identified in their “Certificates of Qualified Persons” submitted with this report to the

Canadian Securities Administrators. The authors have relied, and believe that they have a

reasonable basis to rely, upon the following individuals who have contributed the legal,

environmental, marketing and taxation information stated in this report, as noted below:

Mr. John Harvey, P. Eng.

Chief Operating Officer, Noront Resources Ltd. who provided the general overall Project

information, and;

Mr. Neil Novak, P. Geo.

Vice President Corporate and Aboriginal Affairs, (formerly Vice President Exploration), Noront

Resources Ltd., who provided the general exploration and drilling information and history, and;

Dr. James Mungall, Ph. D., P. Geo.

Chief Geologist, Noront Resources Ltd., who provided the information on the Eagle One Deposit

mineralization and genesis;

Although copies of the licenses, permits and work contracts were reviewed, an independent

verification of land title and tenure was not performed. P&E has not verified the legality of any

underlying agreement(s) that may exist concerning the licenses or other agreement(s) between

third parties.

A draft copy of the report has been reviewed for factual errors by Noront. Any changes made as a

result of these reviews did not involve any alteration to the conclusions made. Hence, the

statement and opinions expressed in this document are given in good faith and in the belief that

such statements and opinions are neither false nor misleading at the date of this report.

The Double Eagle Property, within which sits the Eagle One Deposit, is comprised of 178 claims

for a total of 41,696 hectares. The approximate centre of the property is located at 5,845,000N

and 545,000E in the UTM NAD83 coordinate system. Two of the claims, 3012264 and 3012265

were purchased by Noront, subject to a 1% Net Smelter Returns (NSR) royalty that can be

bought back for $500,000 cash or stock at any time. The Eagle One Deposit lies on claim

3012264.

The remainder of the claims were acquired by Noront by ground staking pursuant to

requirements of the Mining Act R.S.O. 1990, Chapter M.14, attached regulations and

amendments thereto. In the James Bay Lowlands, claims corners are generally established with

the aid of handheld GPS receivers, whose accuracies are in the order of +/- 10 metres, depending

on which type of unit is used. Claim stakers mark out claim block boundaries by navigating,

blazing and flagging their course with the aid of a compass or GPS receiver and placing line

posts along this course every 400 metres. Corner claim posts are established at each corner of the

claim, and positional information is provided on the corner posts with the aid of a GPS receiver.

Noront has 100% rights to the staked claims which can be leased from the Province of Ontario if

a positive decision to mine the deposit is taken.

A map showing the claims is presented in Figure 3.1 and a list of the claims is presented in Table

3-1.

1221423 Porcupine BMA 526862 256 4225873 Porcupine BMA 526862 256 4226685 Porcupine BMA 526862 256

3005622 Porcupine BMA 526862 256 4225874 Porcupine BMA 526862 256 4226686 Porcupine BMA 526862 256

3005667 Porcupine BMA 527862 256 4225875 Porcupine BMA 526862 256 4226687 Porcupine BMA 526862 256

3005668 Porcupine BMA 527862 144 4225876 Porcupine BMA 526862 256 4226688 Porcupine BMA 526862 256

3005669 Porcupine BMA 527862 256 4225878 Porcupine BMA 525863 (PORC) 256 4226689 Porcupine BMA 527862 256

3005670 Porcupine BMA 527862 256 4225879 Porcupine BMA 525863 (PORC) 256 4226690 Porcupine BMA 527861 256

3008260 Porcupine BMA 526862 256 4225880 Porcupine BMA 525863 (PORC) 256 4226691 Porcupine BMA 526862 256

3008261 Porcupine BMA 526862 256 4225881 Porcupine BMA 525862 256 4226692 Porcupine BMA 526862 256

3008266 Porcupine BMA 527861 256 4225882 Porcupine BMA 525862 256 4226693 Porcupine BMA 526862 256

3008267 Porcupine BMA 527861 256 4225883 Porcupine BMA 525862 256 4226694 Porcupine BMA 526862 256

3008687 Porcupine BMA 527861 256 4225988 Porcupine BMA 527861 64 4226695 Porcupine BMA 526862 256

3008773 Porcupine BMA 526862 256 4226091 Porcupine BMA 527861 112 4226696 Porcupine BMA 526862 256

3008774 Porcupine BMA 526862 256 4226100 Porcupine BMA 526862 256 4226697 Porcupine BMA 526862 256

3011019 Porcupine BMA 527861 240 4226581 Porcupine BMA 526861 256 4226698 Porcupine BMA 526862 256

3011020 Porcupine BMA 527861 240 4226585 Porcupine BMA 526861 160 4226699 Porcupine BMA 526862 256

3011021 Porcupine BMA 527861 240 4226586 Porcupine BMA 526861 256 4226700 Porcupine BMA 526862 256

3011022 Porcupine BMA 527861 240 4226588 Porcupine BMA 527861 64 4226701 Porcupine BMA 527862 256

3011024 Porcupine BMA 527861 256 4226611 Porcupine BMA 527861 256 4226702 Porcupine BMA 527862 256

3011025 Porcupine BMA 527861 256 4226612 Porcupine BMA 526861 256 4226703 Porcupine BMA 527861 256

3011556 Porcupine BMA 526862 256 4226613 Porcupine BMA 526861 32 4226704 Porcupine BMA 527862 256

3011557 Porcupine BMA 526862 256 4226614 Porcupine BMA 526861 160 4226705 Porcupine BMA 527861 256

3011561 Porcupine BMA 526862 256 4226616 Porcupine BMA 527861 256 4226706 Porcupine BMA 526862 256

3011562 Porcupine BMA 526862 256 4226617 Porcupine BMA 526861 256 4226707 Porcupine BMA 526862 256

3012256 Porcupine BMA 527862 256 4226624 Porcupine BMA 527861 256 4226708 Porcupine BMA 526862 256

3012259 Porcupine BMA 526862 256 4226625 Porcupine BMA 527861 256 4226709 Porcupine BMA 526862 256

3012260 Porcupine BMA 526862 256 4226626 Porcupine BMA 527861 256 4226710 Porcupine BMA 527862 256

3012261 Porcupine BMA 526862 256 4226627 Porcupine BMA 527861 240 4229428 Porcupine BMA 527861 64

3012262 Porcupine BMA 526862 256 4226628 Porcupine BMA 527861 256 4229430 Porcupine BMA 528861 64

3012265 Porcupine BMA 526862 64 4226631 Porcupine BMA 526861 256 4229432 Porcupine BMA 528861 32

4218185 Porcupine BMA 526862 256 4226632 Porcupine BMA 526861 256 4229435 Porcupine BMA 527861 16

4218186 Porcupine BMA 526862 256 4226633 Porcupine BMA 526861 256 4229436 Porcupine BMA 528861 240

4218187 Porcupine BMA 526862 256 4226635 Porcupine BMA 526861 256 4229437 Porcupine BMA 528861 256

4218188 Porcupine BMA 526862 256 4226636 Porcupine BMA 526861 256 4229438 Porcupine BMA 527861 64

4218887 Porcupine BMA 527862 256 4226639 Porcupine BMA 526861 256 4229439 Porcupine BMA 528861 192

4218888 Porcupine BMA 527862 256 4226640 Porcupine BMA 526861 256 4229440 Porcupine BMA 528861 240

4218889 Porcupine BMA 527862 256 4226651 Porcupine BMA 527862 256 4229442 Porcupine BMA 528861 160

4218890 Porcupine BMA 527862 256 4226652 Porcupine BMA 527861 256 4229443 Porcupine BMA 528861 192

4218901 Porcupine BMA 527862 256 4226653 Porcupine BMA 527861 256 4229630 Porcupine BMA 528861 192

4218902 Porcupine BMA 527862 256 4226654 Porcupine BMA 527862 256 4229656 Porcupine BMA 528861 256

4218903 Porcupine BMA 527862 256 4226655 Porcupine BMA 527861 192 4229657 Porcupine BMA 528861 256

4218904 Porcupine BMA 527862 192 4226656 Porcupine BMA 527862 256 4229658 Porcupine BMA 528861 256

4221425 Porcupine BMA 527862 256 4226657 Porcupine BMA 527861 256 4229659 Porcupine BMA 528862 256

4221426 Porcupine BMA 527862 256 4226658 Porcupine BMA 527861 224 4229660 Porcupine BMA 528862 256

4221427 Porcupine BMA 527862 256 4226659 Porcupine BMA 527861 256 4229661 Porcupine BMA 528862 256

4221428 Porcupine BMA 527862 256 4226661 Porcupine BMA 526862 256 3011553 Thunder Bay BMA 526863 (TB) 256

4221429 Porcupine BMA 527862 256 4226662 Porcupine BMA 526862 256 3011554 Thunder Bay BMA 526863 (TB) 256

4222499 Porcupine BMA 526862 256 4226663 Porcupine BMA 526861 256 3011555 Thunder Bay BMA 526863 (TB) 256

4222500 Porcupine BMA 526862 256 4226665 Porcupine BMA 526862 256 3011558 Thunder Bay BMA 526863 (TB) 256

4225178 Porcupine BMA 526862 256 4226672 Porcupine BMA 527861 80 3011559 Thunder Bay BMA 526863 (TB) 256

4225861 Porcupine BMA 526862 64 4226675 Porcupine BMA 526861 256 3011560 Thunder Bay BMA 526863 (TB) 256

4225862 Porcupine BMA 526862 64 4226676 Porcupine BMA 526861 192 4218183 Thunder Bay BMA 526863 (TB) 256

4225863 Porcupine BMA 526862 16 4226677 Porcupine BMA 526861 256 4218184 Thunder Bay BMA 526863 (TB) 256

4225864 Porcupine BMA 526863 (PORC) 256 4226678 Porcupine BMA 526861 224 4221421 Thunder Bay BMA 527863 256

4225865 Porcupine BMA 526862 256 4226679 Porcupine BMA 526861 256 4221422 Thunder Bay BMA 527863 256

4225866 Porcupine BMA 526862 224 4226680 Porcupine BMA 526861 160 4221423 Thunder Bay BMA 527863 256

4225868 Porcupine BMA 526863 (PORC) 256 4226681 Porcupine BMA 526862 256 4221424 Thunder Bay BMA 527863 256

4225869 Porcupine BMA 526863 (PORC) 256 4226682 Porcupine BMA 526862 256 4221430 Thunder Bay BMA 526863 (TB) 256

4225870 Porcupine BMA 526863 (PORC) 256 4226683 Porcupine BMA 526862 256 4225176 Thunder Bay BMA 526863 (TB) 256

4225871 Porcupine BMA 526862 256 4226684 Porcupine BMA 526862 256 4225177 Thunder Bay BMA 526863 (TB) 256

The Double Eagle Property is situated to the north and west of the Attawapiskat River some 250

kilometres west of James Bay. The Property lies in the James Bay Lowlands straddling its

western limit, and ~250 kilometres west of the community of Attawapiskat on James Bay. An

exploration camp was initially established on the northwest corner of McFaulds Lake which is

accessible to float and ski-equipped aircraft and is situated approximately twelve kilometres

north, north-east of the Eagle One Deposit. Since the discovery of the deposit, Noront has

constructed a second camp known as the Esker Camp, which is located 250 metres north-east of

the Eagle One Deposit. Currently exploration is supported from Nakina, 300 kilometres to the

south, where there is a paved, 3,880-foot airstrip, all weather road access and railroad access.

Smaller ponds, closer to work areas, form potential winter ice strips. Snow mobiles afford good

winter access within tens of kilometres of temporary airstrips. Advanced programs require

helicopter support for both moving equipment and ferrying personnel and supplies.

The First Nations communities of Webequie and Ogoki / Marten Falls lie 110 kilometres west

and 130 kilometres SSE of McFaulds Lake respectively. Both are served by scheduled air

services, primarily from Thunder Bay, although both Thunder Bay and Timmins serve as support

centers for the James Bay communities and the projects. Thunder Bay lies 520 kilometres to the

southwest of the project area, and Timmins is located ~570 kilometres south-southeast.

The James Bay Lowlands experience long, cold winters and short, warm summers. Freeze-up of

the major rivers occurs in late October or early November. The mean daily minimum

temperature in January is approximately -27°C. Spring breakup occurs in April. Mean annual

precipitation is approximately 660 millimetres, and mean annual snowfall is approximately 2400

millimetres (snow depth).

River levels reach their maximum during the spring runoff in late April and early May. Water

levels typically drop through the summer and then increase slightly during the fall prior to freeze

up. Water levels fluctuate in response to even modest rainfall and short dry spells.

The James Bay Lowlands are an almost perfectly planar topographic feature that slope slightly

eastwards (0.7 m / km). Major and secondary rivers incise slight trenches into the soft marine

clays that cover much of the Lowlands. Elevations in the project area are in the order of 140

metres ASL.

Drainage is poor due to the lack of relief, and consequently inland areas remain water-logged

throughout the year. Vegetation comprises grasses and sedges, low shrubs and sparse, stunted

trees, predominantly tamarack (larch) and black spruce. Woody species increase in size and

proportion as drainages cut into overburden, forming better-drained banks. Trees reach full size

along stable banks of the major rivers. Extensive string bogs are developed between drainages.

The perennially water logged surface makes effective surface travel impossible except during the

winter months (December to March), however activities continue year round with helicopter

support.

The only infrastructure in the project area is the Esker and McFaulds Lake Camps. The

McFaulds Lake Camp is located on the shore of McFaulds Lake which is shared by several

companies doing work in the area. The Esker Camp is located 250 metres north-east of the Eagle

One Deposit and is used exclusively by Noront. The closest town with infrastructure is Nakina,

300 kilometres to the south.

Noront is required to remove camps, fuel caches and any remaining waste material upon

completing exploration. Drilling is conducted in compliance with environmental standards that

include the removal of all equipment and waste upon completion of each set-up. Currently the

operator backhauls empty containers, garbage and waste on supply flights from Nakina where

there are believed to be approved waste disposal facilities. There are no other existing

environmental liabilities that are known to the writer.

Permits are not required for exploration, however meetings are held on a regular basis with the

First Nations communities in the area to keep them informed of the activities and to address any

specific concerns they may have.

The Geological Survey of Canada and the Ontario Department of Mines carried out regional

studies

staked immediately around the discovery site, to the north-east, and to the north-west. By the

time the drill had completed the second hole, news of the Noront claim-stakers moving into the

area had leaked out and a number of competing groups began arriving. Helicopter assisted

staking ensued in the immediate area, initially involving a group headed up by Temex Resources

Corp. and Baltic Resources Inc., in joint venture with MacDonald Mines Exploration Ltd. After

the visuals for hole NOT-07-05 were reported to Noront’s management in Toronto, a press

release was drafted and disseminated. This caught the attention of several other juniors, all vying

for claims as close to Noront’s discovery site as possible. At one point, there were a minimum of

10 helicopters in the immediate area, staking anything possessing a high magnetic signature, in a

pattern that covered the geophysically interpreted greenstone belt in contact with the centrally

located granodiorite (Precambrian gneissic complex) dome. Staking continued from early

September 2007 until well into 2008, covering most of the area interpreted as being the “Ring of

Fire”, and west toward De Beers Canada’s Victor Diamond Mine.

The mining recorder for the area confirmed to Noront that this was the largest staking rush in the

province of Ontario since the Hemlo discovery.

There have been no feasibility studies done on the Property.

There has been no metallurgical testing done on the Property.

Stott (e.g., 2007) and coworkers have done much to elucidate basement geology under the

Hudson Bay Platform. Public domain aeromagnetic data supported by isotope chemistry of a

small number of diamond drill core samples provided the basis for a preliminary geological base

for the region.

The James Bay Lowlands are defined by flat-lying, Paleozoic platform rocks, which are covered

by a thin but persistent layer of glacial and periglacial sediments. The Paleozoic carbonates are

up to 75 metres thick in the McFaulds Lake area and feather out toward the west.

The Precambrian geology of the area is inferred from airborne geophysical data supplemented by

sparse gravity and diamond drill data. Magnetic patterns suggest a basement complex

comprising volcanic and sedimentary belts between large expanses of granite and gneisses. The

Oxford-Stull Domain (Stott, 2007) extends eastwards under Paleozoic cover and into James Bay.

There are a handful of basement inliers in the Lowlands as follows:

•

•

•

•

The Paleozoic section spans Ordovician to Cretaceous, the latter being developed in the Moose

River basin far to the south-east. In the project area, the section is limited to Ordovician and

Silurian rocks, which are absent along the west edge of the project area but reach ~100 metres to

the south and east. The section in the project area comprises thin, poorly consolidated, basal

sandstone, mudstone overlain by muddy dolomites, and limestone intervals of Ordovician and

Silurian age.

The thickness of the Quaternary section ranges from 3.5 to 10 metres in drill holes. It typically

comprises 1 to 2 metres of sandy (Wisconsin) till overlain by sand (proximal varves?) grading up

to clays (distal varves?) and capped by marine clays (Thomas, 2004). Older, pre-Wisconsin,

interglacial sediments and tills are locally preserved (e.g., DR 95-46).

Glacial striae suggest a southwesterly ice flow in east and south parts of the area and to the

south-east, west of 85°W (e.g., Bell, 1872, 1878; Fulton, 1995). More recent work (e.g.,

Thorleifson

A mantle derived, highly magnetic ultramafic intrusion (“the Ring of Fire Intrusion” or “RFI”)

has been emplaced along the margin of a regional scale granodiorite pluton which had been

intruded into and caused a doming of the host Sachigo greenstone belt rocks. The RFI is thus

situated between the granodiorite on one hand (footwall) and the surrounding Sachigo

greenstone belt rocks (hangingwall) on the other. The RFI is magnetically distinct allowing it to

be traced more or less uninterrupted, for tens of kilometres along the granodiorite margin. It

appears that a series of conduits cutting across the granodiorite have acted as feeders to the main

RFI.

The Eagle One Deposit is interpreted as occurring well within a conduit feeder, at some distance

from the main RFI. In addition to the Eagle One Deposit, Noront has also discovered, two

kilometres south-west, the Blackbird One Chromite Deposit, the Eagle Two shear-hosted Ni-Cu-

PGE Deposit (collectively also known as AT2), and most recently the Blackbird Two Chromite

Occurrence. At the time of writing of this report, two drill holes had been completed on

Anomaly AT12, which returned encouraging widths of visual copper-nickel-iron sulphide

mineralization up to 29.2 metres in peridotite host rock. Assays are pending.

The Eagle Two discovery is interpreted as occurring within the “throat or mouth” portion of the

conduit where it empties into the main RFI. The mineralization at this point in the system

consists of mineralized zones that contain numerous thin Ni-Cu bearing sulphide layers or

“fingers” that “feather” out into the main RFI.

The most recent drilling at Eagle Two suggests that the zone of finger-style mineralization is

coalescing and increasing in overall thickness as it is tested to the west, presumably into a

conduit that is part of the original feeder system. The sulphide mineralization is also interpreted

as moving away from the chromite mineralization further suggesting that the Eagle Two

mineralizing environment is moving further away from the RFI and into a possible feeder

conduit environment similar to that at the Eagle One Deposit.

The “Ring of Fire” is clearly an emerging metal district. The McFaulds No. 1 and No. 3 VMS

occurrences, Noront’s Eagle One Magmatic Sulphide Deposit, Noront’s Blackbird One Chromite

Deposit and Blackbird Two Chromite Occurrence, as well as other Cu-Pb-Zn hits (results

pending) by the Metalex Ventures Ltd./WSR Gold Inc. joint venture in the area leave no doubt

about this.

The Eagle One Deposit is clearly a magmatic sulphide deposit, and Section 7.1 presents this

particular deposit type. In addition to the magmatic sulphide type, a chromite and volcanogenic

massive sulphide type are discussed.

A broad group of deposits containing nickel-copper-platinum group elements (PGE) occur as

sulphur segregations associated with a variety of mafic and ultramafic magmatic rocks. Among

such deposits, two main subtypes are distinguishable. In the first, the Ni-Cu sulphide type, nickel

and copper are economic commodities contained in sulphide-rich ores that are associated with

differentiated mafic sills and stocks and ultramafic volcanic (komatiitic) volcanic flows and sills.

The second type, magmatic PGE is mined principally for PGE’s which are associated with

sparsely dispersed sulphides in medium to large, typically layered mafic to ultramafic intrusions.

Nickel-copper sulphide deposits are sulphide concentrations that occur in certain mafic and/or

ultramafic intrusions or volcanic flows. Nickel is the main economic commodity; copper may be

either a co-product or by-product, and platinum group elements (PGEs) are usual by-products.

Other commodities recovered in some cases include gold, silver, cobalt, sulphur, selenium, and

tellurium. These metals are associated with sulphides, which generally make up more than 10%

of the ore.

As a group, magmatic nickel-copper sulphide deposits have accounted for most of the world's

past and current production of nickel. International reserves of magmatic sulphide nickel remain

large, though they are exceeded by those of lateritic nickel deposits, the only other significant

source of nickel.

Most nickel sulphide deposits consist of several closely adjacent, but discrete orebodies,

therefore the definition of “deposit” is rather arbitrary. Individual orebodies may contain from a

few hundred thousand to a few million tonnes of ore, and in some instances tens of millions of

tonnes of ore. Mining grades are generally about 1 to 3% Ni, but may be higher in some small

deposits. Noteworthy exceptions are some of the ore zones in the Talnakh camp of the Noril'sk

area, where substantial orebodies average several per cent Ni and greater than 20% Cu.

There are four subtypes of this deposit and all subtypes have some general similarities. For

example, the host intrusions in all cases are either mafic or ultramafic in composition. In

addition, most deposits occur as sulphide concentrations toward the base of their magmatic host

bodies. Furthermore, all subtypes of nickel sulphide ores usually consist mainly of the simple

sulphide assemblage pyrrhotite-pentlandite-chalcopyrite, either as massive sulphides, sulphidematrix

breccias, or disseminations of sulphides. Nickel-copper sulphide ores of any of the

subtypes that have undergone tectonic remobilization have been converted to similar-appearing

sulphide-matrix breccias. The subtypes differ significantly in their geological-tectonic settings

and in the geometric form and style of differentiation of the host magmatic bodies. They differ

also in that the magmatic hosts in most subtypes are intrusions, but in the komatiitic subtype

most are volcanic flows. Furthermore the ores of the various subtypes show some differences in

composition, most noticeably in their Ni:Cu ratios.

The komatiitic subtype, (to which the Eagle One Deposit belongs) is the third most important

type in the world. Proterozoic komatiitic deposits of the Thompson Nickel Belt in Manitoba

account for one quarter to one third of current nickel production in Canada. Archean komatiitic

deposits at Kambalda and elsewhere in Western Australia yield most of that country's produced

nickel. Several small nickel mines in the Abitibi greenstone belt of Ontario and Quebec are also

Archean komatiitic deposits.

Most of the Canadian Archean nickel deposits are found in the Abitibi greenstone belt of the

Superior province (e.g., Langmuir, Redstone, Marbridge, Texmont, Alexo; Coad, 1979; Barnes,

1985; Barrie

Komatiite-hosted Ni Thompson Ni Belt, MB Proterozoic 89.0 2.50 0.13 INCO Prospectus, 1968; Naldrett, 1994

Komatiite-hosted Ni Amax Area 1 (Nose), MB Proterozoic 7.3 1.33 n/a Roth (1975)

Komatiite-hosted Ni Manibridge, MB Proterozoic 1.4 2.55 0.27 Coats and Brummer (1971)

Komatiite-hosted Ni Bucko, MB Proterozoic 2.5 2.23 0.17 Falconbridge Review, 1991

Komatiite-hosted Ni Bowden, MB Proterozoic 80.0 0.60 n/a Northern Miner, 1970-08-06

Komatiite-hosted Ni Raglan Deposits (6), Ungava, QC Proterozoic 18.5 3.13 0.88 Northern Miner, 1992-11-02

Komatiite-hosted Ni Nunavik Nickel Project, Ungava, QC Proterozoic 19.4 0.97 1.18 Canadian Royalties Press Release 2008

Komatiite-hosted Ni Texmont, ON Archean 3.2 0.93 n/a Coad (1979)

Komatiite-hosted Ni Langmuir (No. 1&2), ON Archean 1.6 2.09 0.08 Coats (1982)

Komatiite-hosted Ni Marbridge, QC Archean 0.8 2.82 0.10 Brett et al. (1976)

Komatiite-hosted Ni Alexo Mine, ON Archean 0.1 3.58 n/a Shklanka (1969)

Komatiite-hosted Ni Redstone, ON Archean 1.2 2.39 0.09 Barrie et al. (1993)

Komatiite-hosted Ni Dumont, QC Archean 150.0 0.50 n/a Duke (1986)

Komatiite-hosted Ni Gordon Lake, ON Archean 1.1 1.62 0.68 Coats (1982)

Komatiite-hosted Ni Shebandowan, ON Archean 15.0 1.50 1.00 Coats (1982)

Komatiite-hosted Ni Namew Lake, MB Proterozoic 2.6 2.44 0.90 Canadian Minerals Yearbook, p. 45.2

Komatiite-hosted Ni Pechenga, Russia Proterozoic 36.0 1.00 0.40 DeYoung et al. (1985)

Komatiite-hosted Ni Kambalda District, Australia Archean 48.0 3.60 0.25 Chen and Mingliang (1987); Naldrett (1994)

Komatiite-hosted Ni Agnew, Australia Archean 46.8 2.08 0.10 Listerud and Meineke (1977)

Komatiite-hosted Ni Windarra District, Australia Archean 13.2 1.45 n/a DeYoung et al. (1985)

Komatiite-hosted Ni Mt. Keith, Australia Archean 270.0 0.60 n/a DeYoung et al. (1985)

Komatiite-hosted Ni Hitura, Finland Proterozoic 12.3 0.56 0.16 DeYoung et al. (1985)

Komatiite-hosted Ni Shangani, Zimbabwe Archean 22.0 0.71 n/a DeYoung et al. (1985)

Komatiite-hosted Ni Trojan, Zimbabwe Archean 20.4 0.68 n/a DeYoung et al. (1985)

Komatiite-hosted Ni Hunter's Road, Zimbabwe Archean 30.0 0.70 n/a DeYoung et al. (1985)

Komatiite-hosted Ni Kabanga, Tanzania Proterozoic 11.7 1.72 0.26 Northern Miner 1993-03-08, p.14

Chromite is mined almost exclusively from massive to semi massive accumulations in ultramafic

or mafic igneous rocks. Hard rock chromite deposits are normally assigned either to stratiform or

podiform on the basis of deposit geometry, petrological character, and tectonic setting.

Stratiform chromite deposits are sheet-like accumulations of chromite that occur in layered

ultramafic to mafic igneous intrusions. The best examples of stratiform chromite deposits in

Canada occur in the Bird River Sill in south-eastern Manitoba and in the Big Trout Lake

intrusion in north-western Ontario. Other intrusions in Canada with chromitite layers include the

Muskox complex in the Northwest Territories, the Lac des Montagnes body in Quebec, and the

Puddy Lake and Crystal Lake intrusions in Ontario.

There is no past or current production from stratiform chromite deposits in Canada apart from

approximately 6000 tons of material which was mined at Puddy Lake, Ontario in the 1930’s.

Stratiform chromite deposits occur in large, layered intrusions which are commonly

differentiated into a lower ultramafic zone and an upper mafic zone. The intrusions fall into two

broad categories with respect to morphology. The first includes essentially tabular bodies which

were emplaced as sill-like intrusions in which igneous layering is conformable to the floor.

Examples include Kemi, Campo Formoso, Stillwater Complex, Bird River Sill, and Big Trout

Lake.

The intrusions which host stratiform chromite deposits occur in a variety of tectonic settings. The

Bushveld Complex, Great Dyke, and Muskox Intrusion are unmetamorphosed and were

emplaced into stable cratonic settings. The Kemi and Campo Formoso intrusions are

prekinematic and occur at the unconformable contact between Archean granitic basement and

overlying, mainly sedimentary Proterozoic supracrustal rocks. The Bird River Sill and Big Trout

Lake body are synvolcanic intrusions in Archean greenstone belt settings.

Most stratiform chromite deposits comprise laterally extensive chromite-rich layers which,

despite local irregularities are generally conformable to and form an integral part of the igneous

layering that characterizes such intrusions. The individual chromite rich layers range from less

than 1 cm to more than 1 m in thickness, but their lateral extent is measured in kilometres or tens

of kilometres. Chromite bearing horizons may be interlayered with a variety of rock types

including dunite, peridodite, orthopyroxenite, anorthosite and norite and may occur at various

stratigraphic levels within the host layered intrusion. However because chromite in the most

primitive rocks tends to be the most Cr –rich mineral species the immediate host rocks of

economically significant chromitites are peridotites, or less commonly, pyroxenites. Orebodies

may comprise discrete layers of massive chromitite rocks as in the Bushveld complex and Kemi

deposit or a number of closely spaced chromite-rich layers separated by UM rocks.

The association of chromite with magmatic platinum group element deposits is well known. The

association is two-fold. Firstly, the intrusions hosting the most prominent PGE “reefs” (Bushveld

Complex, Stillwater Complex, and Great Dyke) also contain significant stratiform chromite

deposits, normally at lower levels in the igneous stratigraphy.

The following description is taken directly from a report by Dr. James E. Mungall, Noront’s

Chief Geologist. In the winter of 2008, Noront encountered massive chromitite mineralization in

boreholes drilled to test airborne anomaly AT2 on the Double Eagle Property. The AT2 anomaly

is a coincident magnetic and conductive feature that was recognized as paired linear AeroTEM

conductors striking parallel to the margins of a highly magnetic body several kilometres long.

The magnetic body is connected directly to the Eagle One magmatic massive sulfide deposit and

as such was considered a prime target for further discoveries of peridotite-hosted magmatic

sulfide mineralization. Diamond drilling into the conductive anomalies confirmed that the

magnetic anomaly corresponds to a large body of metadunite and metaharzburgite that has been

altered to magnetite-rich tremolite serpentinite and talc-carbonate rock. Drill holes encountered

extensive Ni-rich sulphide mineralization hosted by shear zones parallel to the contact between

the ultramafic rocks and their felsic plutonic (granodiorite, sensu lato) host rocks. The sulphide

deposit at the AT2 anomaly area was named the Eagle Two deposit.

Below the Eagle Two shear-hosted sulphide deposit the drilling unexpectedly intersected

chromite mineralization. The chromite mineralization has been named the Blackbird One

Deposit. Blackbird One mineralization consists of massive chromitite layers interbedded with

chromite-rich metadunite, now entirely replaced by talc carbonate minerals, chromite, and minor

ferrochrome overgrowths.

Several drill holes intersected massive chromitite mineralization. The layers vary widely in

thickness, from centimetres on the margins of the Blackbird One deposit to continuous massive

chromitite intersections approaching true thicknesses of 30 metres at its central axis. The

mineralization is thickest along an axis plunging steeply to the northwest from a near-surface

expression near the southeast extremity of the drill pattern. To the southwest of this axis the

mineralization thins rapidly to nothing; along the northeast side there are insufficient data to tell

the shape of the body at the time of writing.

The chromite mineralization at Blackbird One shows several different textural and structural

styles. In the host ultramafic silicate rocks there is abundant chromite which stands out in drill

core as isolated or disseminated submillimetric black euhedra in the white talc-carbonate host

rock. The modal abundance of chromite varies from less than 1% to as much as 25% and locally

shows evidence of primary layering. When chromite abundance reaches 25% the rock typically

shows antinodular texture, with submillimetre chromite grains forming a closely packed matrix

around larger pseudomorphs of olivine. Within domains showing disseminated or antinodular

texture there are common cognate xenoliths of chromitite or dunite up to several centimetres in

size. Where xenoliths are larger than the diameter of the core they may become difficult to

distinguish from primary layers, however, most primary layering preserves some combination of

centimetric layering and fine laminations, which make identification unequivocal.

The chromitite mineralization does not have a notably strong magnetic susceptibility, compared

with serpentinized dunite and peridotite which are both common in the area around Eagle One,

Eagle Two, and the Blackbird One Deposits. Chromite is an electrical insulator hence there is no

EM expression from the chromite deposit despite the presence of traces of interstitial sulfide

minerals in the massive chromitite.

A useful characteristic of chromite is its high density, around 4.5, which is similar to that of

magnetite and pyrrhotite. Massive chromite therefore has an anomalously high density

compared even with ultramafic rocks and is detectable by gravity survey when it exists in

sufficient tonnages.

The demonstration of a detectable gravitational response to the massive chromitite at the

Blackbird One Deposit has been used to infer the presence of another body of chromitite some

900 metres long striking 60° away from the AT2 area. A single diamond drill hole through the

highest part of the density anomaly at line 4000E cut two bodies of massive chromitite, each

with apparent thicknesses of approximately 20 metres. The new mineralized zone has been

named the Blackbird Two Deposit.

Massive layers of chromitite vary in thickness from centimetres to apparent thicknesses

exceeding 70 metres and true thicknesses probably exceeding 30 metres. Within massive layers

there are occasional xenoliths and thin beds of talc after olivine. The chemical composition of

the chromitite mineralization has been assessed by three methods; whole-rock assay by

instrumental neutron activation analysis (INAA), electron microprobe analysis of individual

chromite grains (EMP), and hand-held semi-quantitative X-ray fluorescence spectrometry (HXRF).

Assay results through the chromitite zone in drillhole 1G17 are shown in Figure 7.3. Cr was

determined by INAA and is not subject to matrix effects; the results are therefore considered to

be quantitative. The main mineralized zone remains well above 40% Cr2O3 for more than 30

metres, and includes a zone greater than 5 metres wide that averages above 45% Cr2O3. Similar

results have been reported in other holes, and further assay results are pending. The Cr/Fe

elemental weight percent ratio in the whole rock is consistently above 2 and averages about 2.6

over the massive chromitite interval.

Electron microprobe analyses were conducted on polished thin sections of samples taken at

intervals through several chromitite intersections. Ten grains were analyzed at random from

each thin section. Notable results include the observations that the Cr/Fe ratio of the chromite

ranges from 1.6 to 2.2, and that the Cr2O3 concentration in a chromite mineral concentrate

would exceed 52%.

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Annual production of chromite ores is approximately 19 Mt, 90% of which is used to make

ferrochrome alloy for use in steel. Chromium ores and products are sold in three principal forms

worldwide. Direct shipping ore is referred to as lumpy ore and is sold by contract only. The

lump ore is defined as the > 6 mm size fraction; < 6 mm fractions are sold as fines and carry a

lower price. High-grade lump ore can be fed directly into smelters and there is a global trade in

this material, particularly from developing countries to a growing metallurgical market in China.

Fine-grained chromite concentrates are not amenable to smelting and must be pelletized first;

most pelletizing operations are integrated with smelters and there is little trade in concentrates.

However, the bulk of trade in chromium products is in the ferrochrome product of smelting.

Most ferrochrome is produced by vertically integrated large-scale mining, pelletizing and

smelting operations that produce the ferrochrome on site or very near to the mine site.

The dominant player in the world ferrochrome market is South Africa, which accounted for 43%

of global production in 2005. Major producers include Assmang Ltd., Kermas Group Ltd.,

(formerly Samancor Chrome Mines, South Africa), Xstrata South Africa Proprietary Ltd., and

International Ferro Metals Ltd. Most ferrochrome produced in South Africa is made from ores

mined from the stratiform chromitite deposits of the Bushveld Complex of South Africa.

Annual production in 2005 was 7.645 Mt. These ores have moderate grades compared with

some smaller deposits worldwide but are economic due to economies of scale and simple deposit

geometry. Other important producers are India (3.640 Mt), Kazakhstan (3.566 Mt), Finland

(0.572 Mt), Turkey and India.

Lump ore prices are reported in units called dry metric ton units (dmtu). The price of an ore is

found by multiplying the concentration of Cr2O3 in wt% by the price in dmtu; for example, a

Turkish lump ore containing 39% Cr2O3 was sold in May 2008 at a price of USD14.97/dmtu for

a price of $583/Mt ex ports (http://www.asianmetals.com). The value of lump ore increases

dramatically as the grade increases above 30%; no significant international trade takes place at

grades below this value. The value of a concentrate containing 50% Cr2O3 is approximately

$750/ton (http://www.asianmetals.com).

The smelting process adds considerable value to chromite ores if a deposit is large enough to

justify the capital cost of a smelter. The product of smelting is ferrochrome alloy, whose price

has rapidly increased in recent years due to interruptions of the electricity supply in South Africa

and mounting demand from China. The Q3 contract price for high-carbon 65% ferrochrome is

$US $2.05, up from about $US 0.60 in mid-2005

(http://www.metalprices.com/FreeSite/... The contained metal value in a ton of

ore at 40% Cr2O3 therefore is $1,890 a considerable increase over the May 2008 lump ore value

of about $600 ex ports.

The closest geological analogs to the Blackbird One Deposit are the Kemi Mine in Finland, the

Ipueira-Medrados Deposit in Brazil, and the Sukinda Valley Deposit in India. All consist of

massive chromitite bodies up to several tens of metres thick and hundreds of metres long, hosted

by ultramafic rocks predominantly consisting of dunite and harzburgite, and all are currently

being mined.

The Kemi Mine is the best described of these similar deposits. It is a massive body 40 metres

thick dipping 70°. Ore reserves in January 2006 were 41.1 Mt grading 24.5% Cr2O3 and

Inferred Resources of 86.1 Mt at 29% Cr2O3. The Cr/Fe ratio is 1.53. From 1968 to 2005

mining was from an open pit, but with stripping ratios becoming intolerable in the late 1990's, an

underground operation was begun, and since 2006 all production has been from underground,

(Duke, 1998).

Production from Kemi in 2005 was 1.1 Mt, recovering 572,000 t of lumpy ore (36% Cr2O3) and

metallurgical grade concentrate with a grade of 44% Cr2O3, which were used to produce

235,000 t of ferrochrome (Duke, 1998).

Grades at Noront’s Blackbird One compare favourably with those at the world's most important

chromite producers. The deposit is the latest example of the Kemi Deposit type, represented by

important producing mines on three continents that collectively account for approximately one

third of global chromite production. A geophysical anomaly known to correspond to the

presence of massive chromitite persists for more than one kilometre along strike from the

Blackbird One Deposit, indicating that the potential exists for a multimillion ton resource

comparable in size to the Kemi, Sukinda Valley, or Ipueira-Medrados Deposits.

All volcanic-associated massive sulphide deposits occur in terranes dominated by volcanic rocks.

The individual deposits however may be hosted predominantly by volcanic or sedimentary strata,

all of which form integral parts of a volcanic complex. Such deposits are also commonly referred

to as volcanogenic massive sulphides, or simply as VMS.

These deposits are important sources of base metals and precious metals in Canada. In 1988 they

produced 32.8% of Canada's copper, 29.4% of its lead, 56.3% of its zinc, 3.6% of its gold, and

30.4% of its silver.

The deposits occur in two distinct compositional groups, the

prominent immediately below the deposits, and felsic domes may immediately underlie or

enclose the ore. However, the amount of felsic rock in the footwall sequence may be only minor

(Flin Flon, Manitoba), or comprise as much as 30% (e.g. Noranda);

2) A second group of deposits, typified by those near Sturgeon Lake, Ontario, Hackett River,

Northwest Territories, and possibly the Kidd Creek Mine near Timmins, Ontario, are associated

with volcanic rocks deposited in subaerial to shallow marine environments (<500 metres). These

include mafic and felsic amygdaloidal and scoriaceous flows and pyroclastic rocks, volcanic

breccia, and epiclastic strata. Felsic rocks typically comprise 30% of the footwall sequence.

Both groups of deposits occur in volcanic sequences that have prominent subvolcanic intrusions

near their base. Trondhjemitic intrusions predominate (Noranda, Sturgeon Lake, Flin Flon, Snow

Lake), but a layered mafic intrusion forms the base of the Matagami Lake Sequence.

The Eagle One Deposit is comprised of massive and net textured sulphides with little to no

disseminated sulphides in the deposit. Descriptions of the mineralization that follow are taken

directly from reports by Dr. James E. Mungall, Chief Geologist for Noront.

Massive sulphides at the Eagle One Deposit comprise pyrrhotite, pentlandite, and chalcopyrite,

with subsidiary amounts of equant millimetric magnetite. In most examples the rocks are very

coarse-grained, with grain sizes up to 1 centimetre and well-formed pentlandite “eyes”.

Sometimes the pentlandite is seen to be aligned along microfractures. At peak metamorphic

conditions, all the Ni and perhaps all the Cu in the sulphide was probably present within a

homogeneous monosulphide solid solution. The pentlandite probably nucleated and grew during

retrogression from peak metamorphic conditions, and its occasional habit of forming along the

margins of fractures probably indicates that it was more easily nucleated on discontinuities. The

significance of these textural features is as follows: since the pentlandite that nucleated along

fractures is as coarse as the large isolated porphyroblasts (“eyes”), it is likely that all of the

pentlandite and hence all of the pyrrhotite show metamorphic texture and has been completely

annealed since peak metamorphic conditions. It is therefore important to recognize that even

extreme deformational textures that may have existed in the sulphide at peak conditions will

have been erased by recrystallization.

There are many instances in the deposit of medium to very fine-grained massive sulphide veins

that are rich in inclusions of silicates and which may display pronounced gneissic foliation that

wraps around the clasts; in light of the comments above, these veins clearly must have

undergone extreme ductile deformation at post-peak metamorphic conditions. Motion along

these zones therefore was very late. Since sulphide minerals are very ductile at upper

greenschist or amphibolite facies conditions, massive sulphide bodies commonly serve as

nucleation points for faults. Once faulting begins along a surface that includes a massive

sulphide body, it is not unusual for the sulphides to be squeezed laterally into the fault plane for

distances of hundreds of metres away from their original sites. Under the same conditions that

allow rapid ductile deformation of the sulphides, the host silicate rocks will have been brittle. As

a result, the sulphide bodies tend to contain a mixture of brittle angular clasts and wavy schistose

clasts of host silicate rock.

In some cases the massive sulphide texture grades into peridotite through a marginal zone in

which silicate minerals are completely bathed in sulphide and are not in mutual grain contact.

Rocks like this may preserve the textures formed at the point where immiscible sulphide liquid

was becoming fully separated from the hosting silicate crystal mush. However it is also possible

that this texture has resulted in part from tectonic disaggregation of net-textured sulphides (see

below), followed by complete annealing of the texture which would remove all textural evidence

of deformation.

In this texture the silicate minerals form a closely-packed orthocumulate-textured framework, the

interstices of which are fully occupied by sulphide minerals. This arrangement is generally

understood to result from the invasion of a silicate crystal mush by dense immiscible sulphide

melt that has effectively expelled all the interstitial silicate melt. In a few examples at Eagle One

this net texture is observed to be occupied by large (up to 10 cm) pyrrhotite oikocrysts that

completely fill the interstices of the peridotite orthocumulate texture. Such large oikocrysts may

represent primary growth of monosulphide solid solution from the original sulphide melt.

Much of the net-textured sulphide mineralization at the Eagle One Deposit shows a distinct

metamorphic fabric. Subparallel wavy veinlets of sulphide minerals are present throughout the

rock, apparently the result of transfer of sulphide on the grain-scale from the net texture into

extensional features. This might have occurred by ductile flow of the sulphides or through

pressure solution. This foliation is commonly best developed in parts of the deposit that also

contain fine-grained sulphide breccias; the combination of metamorphic foliation and discrete

ductile shear zones indicates that significant deformation has taken place.

The large amounts of sulphide and of ultramafic cumulate make it absolutely clear that the Eagle

One Deposit formed in a magmatic conduit. No magma could have carried the observed amount

of sulphide in solution, therefore the sulphides have been left behind by a through-going volume

of magma much greater than what presently remains in the intrusion. Similarly, the mafic

chilled margins can be interpreted to represent samples of the liquid from which the intrusion

formed; the ultramafic rocks are cumulates that were gleaned from large volumes of mafic liquid

that deposited small increments of olivine and pyroxene as it passed by.

If the intrusion is accepted to be a conduit then it must be continuous over considerable distances

likely measurable in kilometres. Since diamond drilling has shown that it is surrounded on all

sides by older felsic intrusive rocks at surface, logic dictates that it must continue at depth. The

prospects for continued extension of the mineralized body to depth are excellent, as long as it is

not lost in a fault zone. In this regard it is encouraging to note that although the western margin

has been extensively modified by faulting, it is fundamentally an intrusive contact that is

preserved in situ. There is thus no immediate indication of a structural termination of the

mineralization.

The origins of the sulphides are slightly problematic. It is generally accepted that in order to

form a mass of immiscible sulphide liquid on the scale observed at the Eagle One Deposit, a

mafic or ultramafic magma must become contaminated by sulphide-rich crustal rock. At its

present level of exposure the mineralized intrusion is entirely surrounded by sulphur-poor felsic

intrusive rocks, leaving the origin of the required sulphide in doubt. Mungall suggests that the

presence of abundant magnetite-rich xenoliths in the intrusion records a previous episode of

assimilation of iron formation, which has added sufficient sulphide to the magma to induce

sulphide liquid saturation. The conduit has carried the slurry of sulphide droplets and small

xenoliths to their current location, requiring transport over considerable distances. This in turn

suggests that the Eagle One Deposit resides in a large magmatic system with lateral extents at

least as great as the distance to this same iron formation, which may be represented by the very

prominent magnetic lineament to the south of the deposit.

On-going exploration work on the Double Eagle Property is partly predicated upon a conceptual

model of the mineralizing systems associated with the Ring of Fire. This model has been

formulated by incorporating recent drill data along with geophysical, geological and other

technical survey results. Salient features from other established geological models for similar

mineralizing systems from around the world have also been incorporated into the conceptual

model, which is in a constant state of revision as new data become available. Key points of the

Ring of Fire model are as follows:

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•

•

•

•

•

•

•

•

Since Noront acquired the Double Eagle Property in 2003, there have been a total of six airborne

and ground geophysical surveys undertaken as well as an 11 hole diamond drill program

completed by Probe in 2006, (prior to the 2007 diamond drill program undertaken by Noront). A

summary of each of the programs is presented in this section. Sub-sections 9.1, 9.2, 9.3 and 9.4

predate the discovery of the Eagle One Deposit, while sub-sections 9.5, 9.6 and 9.7 postdate it.

No other exploration work has been done on the Property apart from diamond drilling which is

presented in Section 10.0 of this report.

An airborne magnetic and electromagnetic survey over the McFaulds Lake Area was carried out

by Fugro Airborne Surveys, (“Fugro”) between July 26th and August 10th 2003 from an

operating base at Pickle Lake, Ontario. A total of 2,148 line kilometres of data was collected,

which provided among other things, added detail to the sparse geologic information available for

the area.

The airborne magnetic and electromagnetic survey identified a number of interpreted bedrock

conductors that closely correlate with magnetic anomalies. The associated conductance estimates

are typically in the range of 30 to 50 siemens which is reasonable for sulphide mineralization. A

ground survey using a horizontal loop electromagnetic system and magnetometer was suggested

at the recommended locations and was completed in 2004.

In March and April 2004, Noront carried out two ground geophysical surveys on two separate

grids over its mineral claims in the McFaulds Lake area. The data were compiled and interpreted

by Scott Hogg & Associates Ltd. (“SHA”) of Toronto, Ontario.

Ground survey grids were cut with a line interval of 200 metres, perpendicular to a base line,

which was established using a GPS reference. The data were collected and presented with

reference to line and station.

The ground magnetic survey was carried out using a Scintrex MP3 proton recession

magnetometer. Readings were taken at 12.5 metre intervals along the line and recorded digitally

by the instrument. A second MP3 magnetometer, at a fixed location at the camp recorded diurnal

magnetic variation and a correction was applied in the field. The corrected digital magnetic files

were recorded on disk and sent to SHA in Toronto for compilation and analysis.

The magnetic data, collected as profiles, were gridded using the SI-Grid process developed by

SHA. This interpolation technique preserves all of the detail of the profile data and optimizes the

correlation of information between adjacent survey lines. The SI-Grid output was contoured at a

50 nT interval and presented in colour together with survey lines and geographic reference at

1:20,000 scale.

The ground horizontal loop electromagnetic survey was carried out using a MaxMin II

instrument. A coil spacing of 150 metres was used and the in-phase and quadrature response

amplitudes were recorded at 3 frequencies: 444, 1777 and 3555 Hz. Measurements were made

every 25 metres and recorded manually. The field notes were converted to digital files and sent

to SHA.

On both grids, conductive axes of bedrock origin were mapped within and adjacent to magnetic

anomalies typical of metavolcanic rocks. It is possible that some or all of these conductors are

associated with sulphide mineralization. The weaker conductors may be indicative of minor

pyrite that can occur with gold mineralization and the stronger conductors with massive

sulphides. Further investigation is warranted but specific anomaly recommendations and

prioritization cannot be made solely on the basis of the available geophysical information. It is

also suggested that the circular magnetic anomaly in the northwest corner of Grid 2 might be

associated with a kimberlite pipe. Magnetic modelling, to determine whether the anomaly dip,

width and susceptibility is consistent with typical kimberlite, is recommended.

In 2003, Condor Diamond Corp., (“Condor”) staked several mining claims in the McFaulds Lake

area based on a regional aeromagnetic survey, (two of the claims were later optioned to Noront

and the Eagle One Deposit discovery was made on claim number 3012264). In early 2004,

Condor took part in a ground magnetic and horizontal loop electromagnetic survey that partially

covered one of these claims. Their target was kimberlite pipes. The claim was one of a

contiguous pair of four-unit claims that captured two aeromagnetic anomalies. The survey

revealed an elliptically shaped magnetic anomaly with an associated EM response. The original

line spacing was 200 metres and was considered insufficient to site a drill hole, and infill lines

were therefore recommended.

In February 2006, Condor contracted Greenstone Exploration Ltd. to survey infill lines and to

extend the survey to include the northwest claim. Work began on February 23