Norton Lake

The Norton Lake property is located 34 miles north east of Ft. Hope, Ontario and is therefore 134 miles northeast of the CNR rail line and Hwy 527 at Armstrong, Ontario. New roads are now under construction following existing winter roads that will link Ft. Hope with Pickle Lake to the south west and Nakina to the southeast. Another winter road extends northeast of Ft. Hope and passes 12 km west of the property boundary. The property covers an 11 km strike length of various EM conductors and a chain of magnetic anomalies the reflect other favourable pyroxenite bodies creating a series of new targets along strike to the known part of the Norton zone.

In 2001 a single claim covering the Norton Zone was purchased from R. L. Duess and R. B. Durham by East West Resource Corp., by paying $5000 and issuing 100,000 shares. A 2.0 % NSR is retained by the vendors where 1.0 % may be purchased at any time for 1.0 million and the remaining 1.0 % may be purchased on a first right of refusal. An area of interest of 1 mile (1.6 km) from the original claim will apply to any claims staked by East West. Subsequently a total of 149 additional claims were staked in October 2001 covering a 11 km long trend northeastward and westward from the Norton zone.

In September of 2001, Golden Dragon staked 152 claim units in the Norton Lake area, to the northeast and contiguous to the East West ground (see first Norton diagram). This covered a series of airborne EM conductors. Pyroxinit-ultramafic rocks known to occur on the claims are favourable host rocks for Ni-Cu-PGE-C0 mineralization. The Golden Dragon 152 claims were staked by the company and do not have any NSR interests.

Recontouring the original drill data with the holes completed in 2002 suggested that the sulphide zone actually plunges to the northeast at roughly 45 degrees. Mise-a-la-masse surveys carried out in June 2002 confirmed that the conductive sulphides continue to depth, possibly as far as 550 E which is 300 m beyond the known sulphide intersections. The mise-a-la-masse survey also extended the zone to 100W giving the potential strike of 650 m. VLF EM and magnetic surveys were completed in July - August 2002. Geochemical soil sampling and IP-resistivity surveys were completed by September 2002 to trace the extension of the zone.

Reassaying of the split half of the remaining 1980 AQ drill core for holes U-2 to U-19 was carried out in July - August, 2001 which discovered that important PGE and cobalt values were present. The highest PGE values of 4.38 grams occurred in hole U-12 associated with elevated copper values of 1.6% Cu. As a general observation PGE values increase with increasing nickel and nickel-cobalt correlates. Previous assays of 1.8% nickel obtained by AA assay methods compare with 1.9% obtained by ICP. The general Palladium (Pd) -platinum (Pt) ratio is 4:1 however this reverses in hole U-12 to 3:1 Pt:Pd and this phenomena was seen in U-7 and hole G suggesting a plunge line to the northeast. Most sections with elevated copper yield elevated Pd:Pt above 1.5 grams, but this relationship is not consistent. A follow-up drill program was initiated in July, 2002 to redrill next to hole U-1 (hole A), test the area near U-2 (hole G) and do 25 m centre fill in holes that would define the plunge line. The copper rich zone was located in hole G and F where up to 7% Cu over 1 m were intersected. The drilling in 2002 confirmed PGE values can increase with increasing nickel.

The work carried on above was carried out on the East West property. In February 2003 a joint venture with East West was created whereby East West earned a 20% working interest in the Golden Dragon claims and in turn Golden Dragon earned a 20% interest in the East West.

It was important to accurately determine the plunge in order to do deeper drilling down plunge to trace the extension suggested by the mise-a-la-masse. In addition the drill hole spacing would allow for a more accurate tonnage calculation in the future and would meet the new standards proposed by the CIMM (Canadian Institute of Mining and Metallurgy), adopted in Nat. Policy 43-101. An additional benefit to this approach was the discovery of a thickening of the sulphides in hole D25 which is interpreted to be a new down plunge extension of the zone in U-4 and/or a whole new lens that appears to extend into an area not previously drilled.

Drilling completed in July through October 2003 used a Longyear 28 drill that cored a thinwall B core that is 42 mm in diameter compared with the previous AQ (27 mm). This yielded a better sample and better recovery. Acid tests were done to measure the dip of the holes as previously done on the 1980 U series.

Two sections 1+00E and 0+75E obtained core adjacent to hole U-1 and located the brecciated massive sulphide phases "durchbewegung" texture which typifies the main massive sulphide zone. Evidence of deformation of the pyroxenite-hornblendite host is best observed at the structural hanging wall basalt contact. Previous work on the U series of holes categorized a separate footwall unit as an amphibole tuff. This unit which is shown on the sections and the pyroxenite are now interpreted to be the same unit (ie) a highly deformed pyroxenite now metamorphosed to amphibole (hornblendite). Metamorphic grades have reached amphibolite facies, which starts to obscure the primary rock composition and texture. Copper (chalcopyrite) has definitely been remobilized into stringer zones in the pyroxenite host and in micro folds within the sulphide zone. Therefore there is the possibility for copper to be more highly remobilized along a fold axis that could reflect a plunge line for the zone. Hole D contained 3.3 % Cu over 1 m and occurs where the sulphide zone is thickening, hence indicating a concentration along a lense axis (ie. Boudinage).

In October 2003 the Norton property was optioned to Cascadia International Resources Inc. where by Cascadia may earn a 51% interest in both claim groups by spending 1.5 million by November 1, 2010 and may earn a 60% interest by completing a feasibility study to the standards of the TSX and may obtain a 70% interest by financing the property to production. Option payments totaling $150,000 over 7 years are to be made in stages.

An extensive helicopter borne time domain EM magnetic survey of the Dragon portion of the Norton Lake property was flown in February 2004 with the purpose of tracing other Cu-Ni bearing pyroxenite bodies and mapping out the structure controls. Several strong EM conductors associated with magnetic anomalies were found near fold nose structures that became potential direct targets.

In April 2004 a special drill was brought in to test the down plunge of the Norton sulphide zone and 9 holes were completed. Hole NL04-02 cut the sulphide zone at the deepest point yet (250 m below surface) and showed that the zone continued to depth with a consistent width and grade leaving the possibility to drill deeper at the 300 m and 400 m depth and quadruple the original resource tonnage four fold from the 100 m depth.

Hole 04-1 and 3 completed this section on 250 E and determined the upper edge of the zone. Holes 4,5 and 6 were drilled on 200E and 7,8 and 9 were on 150E. Hole 9 orinally stopped short of the zone had to be extended to reach the sulphide zone, which has steepened at depth.

Drilling resumed in January 2005 with the objective of determining the depth extent of the massive sulphide Ni-Cu-Co-PGE zone and confirm if the zone reached the 400 m level. This was done at 100 m centre holes at the 300 and 400 m level on section 250E and 200E and on section 150 E, holes extended the zone to the 200 m level. Hole 05-12 intersected a layered phase of the sulphide zone with portions assaying over 2% nickel. Hole 05-14 on line 300E obtained usually high palladium values of 10.4 g Pd/tonne and Cobalt values of 1800 ppm (3.96 lbs/tonne). Hole 15 hit a fault zone and had to be abandoned. Since the zone continued to 400 m elevation a second phase was started in June 2005 to complete sections 150 E and 100 E and test a new pyroxenite zone to the northeast of the main zone and a second IP-magnetic target on L15E.

The summer program discovered a new sulphide zone in hole 18, 100 feet before (north of) the main zone and found a new layered gabbro pyroxenite on the north edge of the geophysical grid, south of a large iron formation as well as a pyroxenite or LISE possibly the equivalent to the host horizon. A mise-a-la-masse survey was conducted to trace the new sulphide zone in August 2005.

In the fall of 2005 Cascadia commissioned and received the results of an "Independent Mineral Resource Estimate" for the Norton Lake Property.  The Independent Mineral Resource Estimate was prepared by Caracle Creek International Consulting Inc. (CCIC) of Sudbury, Ontario.  The Mineral Resource, quoted below, was calculated using a 0.3% Ni cut-off.  The Mineral "Resource" Estimate reported herein is not a mineral "reserve" and as such, does not demonstrate or speak to the economic viability of the project, only to the tonnage and mineralization.

On the Basis of the current Mineral Resource Estimate, the Norton Lake deposit has an in situ metal content comprising:

According to CCIC, the Mineral Resource can be expanded with additional exploration drilling along strike and down plunge toward the northeast, and toward the southwest, near-surface side of the deposit where there exists some sampling gaps and some poorly defined sulphide lenses that appear to be structurally displaced.

The Norton Lake Ni-Cu-Co Deposit has been traced by diamond drilling over a strike length ranging from 225 to 300 metres, and locally to about 400 metres depth, with true widths ranging between 5 and 10 metres. On the basis of geophysical surveys and exploration drilling, the deposit is open to the southwest, northeast and to depth, and other geophysical targets occur along an 11 km strike length.

For comparison, the geological setting is similar to the past-producing Thierry Mine near Pickle Lake, where a 1,100 metre long and 1,000 metre deep structure hosted several lenses of sulphide that were 5-30 metres thick.  At the time of mine closure (1982), UMEX Inc. reported an ore reserve of about 7 million tonnes with an average grade of 1.88% Cu and 0.23% Ni, along with gold, silver and platinum-group element credits.

The Mineral Resource Estimate was based on integrated diamond drill core information collected by Cascadia International Resources Inc. and East West Resource Corp., and from historic drilling by Wasabi Resources Ltd. (de-listed from the TSE, April 1988).  Quality control regimes were scrutinized for reliability and in some cases supplemented through the assaying of coarse rejects derived from the original core and from split drill core.  The deposit was modelled using a 0.1% Ni cut-off, and limited by sample spacing, interpreted structure, and 1:50,000 scale Canadian Digital Elevation Data.  A total of 18.5 metres of sampling gaps were included in the deposit model and these gaps were set to concentrations equalling half of the lower limits of detection for each element.  The assigned Mineral Resource categories conform to the CIM Standards on Mineral Resources and Reserves - Definitions and Guidelines (2000).  Estimation was carried out separately for Ni, Cu, Co, and Pd using ordinary kriging.  Grade-tonnage evaluation, as reported, was executed using a 0.3% Ni cut-off.

A $750,000 drill and geophysical program commenced on the property in the summer of 2007.