THE DARNLEY BAY MAGNETIC AND GRAVITY ANOMALY

Base Metals: The Geological Survey of Canada (GSC), in 1994, assigned a moderate to a high rating for the Anomaly to be a major mineral complex comparable to the Sudbury Basin in Ontario, Norilsk in Russia, and to the Bushveld Complex in South Africa. These are mining districts known primarily for their great Nickel, (Ni) and Copper (Cu) production and are also prime platinum/palladium (PGE) producers.
Ref.: GSC. Open File 2789

At 130 milligals, the gravity anomaly is:

• four times stronger than the Sudbury Basin gravity anomaly, host of the world's largest Ni and Cu deposits.
• five times stronger than the Norilsk deposits where the mined grade of Ni and Cu is the highest in the world.
• twice as strong as the Bushveld Complex, estimated to contain 70% of the world's platinum group elements (PGE).

The estimated resources (including that already mined) of the compared world class deposits of Ni-Cu and PGE sulfide ores are as follows; Sudbury Basin in Ontario, 1648.0 million tonnes @ 1.20% Ni, 1.08% Cu, 1.17 g/t PGE, Norilsk region in Russia, 1309.3 million tonnes @ 1.77% Ni, 3.57% Cu, 9.50 g/t PGE, Bushveld Complex in South Africa, 11,549.9 million tonnes @ 0.13% Ni, 0.06% Cu, 5.67 g/t PGE.
Ref: Anthony J. Naldrett, Magmatic Sulphide Deposits 2004.

Review: DBR has undertaken a review of all available geophysical and geological data of the Anomaly and surrounding area. The available geophysical data indicate a large intrusive complex with interpreted similarities to the Sudbury Basin, the Norilsk deposits, the Bushveld Complex. The discovery of diamonds on surface within the Anomaly, and diamondiferous kimberlites on the nearby Parry Peninsula to the northwest, indicate the potential for a new diamond district in the NWT.

In the past, placer miners recovered gold and sulphides in the area of the Anomlay from local river bed alluvials. These minerals could have been derived from an overburden covered mineralized intrusive.

In 1997 DBR completed a high-resolution aeromagnetic survey within and around the area of the Anomaly. The survey covered 1,500,00 acres (607,050 ha) and was flown at an elevation of 120 metres in an east-west direction with a line spacing generally 800 metres apart, tightened to 400 metres over the core of the Anomaly, and loosened up to 1,600 metres apart northwest of the Anomaly.

The survey over the Anomaly indicated that, the main source is a buried intrusive body lying 1,000-3,000 metres below surface, and that it is complex and may be a multiple injection intrusion with parts re-mobilized after the original event. The magnetic data suggest that there are several high angle fault zones and dyke systems that show both vertical and horizontal displacements. The data indicated that the project area has been well prepared structurally to host mineral deposits.