Graphic1 - Newfoundland and Labradorgis.geosurv.gov.nl.ca/geofilePDFS/ReceivedBatch53/012B_0562.pdf · 7.0 stratigraphy of the st georges subbasin area ... figure 3 maritime carboniferous

Table of Contents

1.0 Introduction 2.0 Location, Access and Topography 3.0 Previous Potash Surveys 4.0 Regional Geology 5.0 2007-2008 Exploration 6.0 Conclusions and Recommendations 7.0 References

List of Figures

Figure 1 General Location Map Figure 2 Claims Location Map Figure 3 Maritime Regional Bedrock Geology Map Figure 5 Geology Map (1 :250,000)

List of Appendices

Appendix 1 List of Expenditures Appendix 2 Expenditures by License Appendix 3 List of Personnel Appendix 4 North Rim Exploration Ltd; Technical Report

cindysaunders

Line

PRELIMINARY ASSESSMENT STUDY OF POTASH

RESOURCE PROSPECTIVITY,

UNIVERSAL URANIUM EXPLORATION LICENCES,

BAY ST. GEORGES SUBBASIN, WESTERN NEWFOUNDLAND

Prepared For:

Mr. Bill Galine

Universal Uranium Ltd.

Vancouver, British Columbia, Canada

Prepared by:

Sandra J. Foster, MSc. P.Geo.

Mr. S. P. (Steve) Halabura, MSc. P.Geo.

North Rim Exploration Ltd

Saskatoon, Saskatchewan, Canada

Date:

September 11, 2008

A report in compliance with National Instrument 43-101

PRESENTATION COPY

PRELIMINARY ASSESSMENT STUDY OF POTASH RESOURCE PROSPECTIVITY,

UNIVERSAL URANIUM EXPLORATION,

BAY ST. GEORGES SUBBASIN, WESTERN NEWFOUNDLAND , CANADA

TABLE OF CONTENTS

1.0 SUMMARY....................................................................................................................................................2

2.0 INTRODUCTION AND TERMS OF REFERENCE ................................................................................3

DISCLAIMER .............................................................................................................................................................4

2.1 DEFINITION OF TERMS.................................................................................................................................6 2.1.1 Explanation of Mineral Names ..............................................................................................................6 2.1.2 Other Terms and Definitions.......................................................................................................................7

3.0 RELIANCE ON OTHER EXPERTS ..........................................................................................................7

4.0 PROPERTY DESCRIPTION AND LOCATION ......................................................................................7

4.1 LAND TENURE.............................................................................................................................................8

5.0 ACCESSIBILITY, CLIMATE, INFRASTRUCTURE, AND PHYSIOGRAPHY..................................9

5.1 TOPOGRAPHY AND PHYSIOGRAPHY.............................................................................................................9 5.2 CLIMATE ...................................................................................................................................................10 6.0 REGIONAL GEOLOGY AND TECTONIC SETTING .....................................................................................11

7.0 STRATIGRAPHY OF THE ST GEORGES SUBBASIN AREA ...........................................................13

7.1 ANGUILLE GROUP .....................................................................................................................................13 7.2 CODROY GROUP ........................................................................................................................................13

7.2.1 Ship Cove Formation...........................................................................................................................14 7.2.2 Journois Pond Formation....................................................................................................................14 7.2.3 Woodville Formation ...........................................................................................................................14 7.2.4 Jeffreys Village Formation ..................................................................................................................14 7.2.5 Summary....................................................................................................................................................14

7.3 STRUCTURAL GEOLOGY ............................................................................................................................14

8.0 HISTORY OF EXPLORATION FOR POTASH IN THE BAY ST GEORGES SUBBASIN .............15

8.1 SUMMARY OF KNOWN “SALT” AND “POTASH” OCCURRENCES IN THE BAY ST GEORGES SUBBASIN........16 8.1.1 Fischells Brook ....................................................................................................................................16 8.1.2 Captain Cook # 1 .................................................................................................................................18 8.1.3 Flat Bay # 2 .........................................................................................................................................19 8.1.4 St. Fintans............................................................................................................................................19 8.1.5 Robinsons.............................................................................................................................................20 8.1.6 Highlands River ...................................................................................................................................21 8.1.7 Potential for Further Discoveries ........................................................................................................21

9.0 DEPOSIT TYPES .......................................................................................................................................22

10.0 MINERALIZATION ..................................................................................................................................22

11.0 EXPLORATION .........................................................................................................................................22

12.0 DRILLING...................................................................................................................................................23

13.0 SAMPLING METHOD AND APPROACH .............................................................................................23

14.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY..................................................................23

15.0 DATA VERIFICATION.............................................................................................................................23

16.0 ADJACENT PROPERTIES.......................................................................................................................23

16.1 OTHER POTASH PROPERTIES WITHIN THE MARITIME BASIN .....................................................................23 16.2 POTASH OCCURRENCES IN THE BAY ST. GEORGES SUBBASIN...................................................................24

17.0 MINERAL PROCESSING METALLURGICAL TESTING .................................................................24

18.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES...................................................24

19.0 OTHER RELEVANT DATA AND INFORMATION.............................................................................24

20.0 CONCLUSIONS AND RECOMMENDATIONS ....................................................................................24

CERTIFICATE OF AUTHORIZATION ...............................................................................................................27

AUTHORIZATION # 3184 21.0 REFERENCES ...............................................................................................27

21.0 REFERENCES ............................................................................................................................................28

22.0 STATEMENT OF CERTIFICATION BY CO-AUTHOR......................................................................32

23.0 STATEMENT OF CERTIFICATION BY PRINCIPAL AUTHOR.....................................................34

APPENDIX 1 ...............................................................................................................................................................1

COPY OF ASSIGNMENT OF MINERAL LICENCES..........................................................................................1

TRANSFER FORM AND...........................................................................................................................................1

ACQUISITION AGREEMENT.................................................................................................................................1

APPENDIX 2 ...............................................................................................................................................................1

SUMMARY OF POTASH CORES AT A.K. SNELGROVE MINERAL CORE LIBRARY ..............................1

PASADENA, NL..........................................................................................................................................................1

APPENDIX 3 ...............................................................................................................................................................2

LETTER TO THE HONOURABLE KATHY DUNDERDALE.............................................................................2

MINISTER OF NATURAL RESOURCES, GOVERNMENT OF NEWFOUNDLAND AND LABRADOR....2

RECOGNIZING OUTSTANDING SERVICE OF GEOLOGICAL SURVEY OF NEWFOUNDLAND AND

LABRADOR ................................................................................................................................................................2

TABLES

TABLE 1 MINERAL NAMES ………………………………….…………………………………………..9

TABLE 2 LAND TENURE……..………………………………..…………………………………………11

FIGURES

FIGURE 1 LOCATION

FIGURE 2 DISPOSITION LOCATIONS

FIGURE 3 MARITIME CARBONIFEROUS BASIN, REGIONAL BEDROCK GEOLOGY

FIGURE 4 CARBONIFEREOUS STRATIGRAPHY BAY ST GEORGES AREA

FIGURE 5 GEOLOGY MAP (1:250,000)

cindysaunders

Line

FIGURE 6 BOUGER GRAVITY

FIGURE 7 MINERAL OCCURRENCES

FIGURE 8 PALISPASTIC RECONSTRUCTION OF CARBONIFEROUS SEDIMENTS

FIGURE 9 GEOLOGY MAP (1:150,000)

APPENDICES

APPENDIX 1 UNIVERSAL URANIUM/ALPHA URANIUM RESOURCES INC. AGREEMENTS

APPENDIX 2 SUMMARY OF DRILL CORES AT NEWFOUNDLAND AND LABRADOR

DEPARTMENT OF MINES, A.K. NELGROVE MINERAL CORE LIBRARY,

PASADENA, NL

APPENDIX 3 NORTH RIM LETTER TO MINISTER DUNDERDALE

Presentation Copy

Preliminary Assessment Study of Potash Resource Prospectivity, Universal Uranium Exploration Licenses,

Bay St. Georges Subbasin, Western Newfoundland

Prepared for Universal Uranium Ltd.

September 15, 2008 Page 2

1.0 SUMMARY

Universal Uranium Ltd (Universal) contracted North Rim Exploration Ltd. (NREL) to

prepare a Preliminary Assessment Study of Potash Resource Prospectivity in the Bay St Georges

Subbasin of Western Newfoundland, Canada. The completed technical report may be used by

Universal Uranium Ltd. toward completion of the requirements of the TSX Venture Exchange.

Universal Uranium Ltd has acquired in seven exploration licences (comprising 816

claims) covering part of the Bay St Georges Subbasin. The subbbasin is a Carboniferous

“graben” structure containing an evaporite sequence within the Mississippian-age Codroy Group.

The Bay St Georges Subbasin is an extension of the larger Carboniferous-age, Maritime Basin

that underlies much of Nova Scotia, New Brunswick and Prince Edward Island. The evaporite-

bearing formations in Newfoundland are believed to be similar in age to potash-producing

formations in the Moncton Subbasin of New Brunswick, which is also part of the Maritime

Basin. Previous exploration for “salt” and potash in the Bay St Georges subbasin was mostly

conducted in the 1970’s, however more recent petroleum exploration has discovered some thick

evaporite formations with associated potash beds.

Based on a review of publicly available information the authors conclude that,

1. Sylvinite and carnallite mineralization has been reported and confirmed by personal

observation from drill holes in the general St. Georges Subbasin of western

Newfoundland and it is therefore it is reasonable to expect the discovery of additional

sylvinite and carnallite mineralization, given the right geological (sedimentological and

structural) conditions, within the St. Georges Subbasin;

2. In the opinion of the authors, the highest prospectivity for potash mineralization in the

subject area is coincident with the lower Codroy Group sediments (Figure 5 and Figure

8). Furthermore, it is the opinion of the authors that the potash mineralization may be

associated with the thickest intersections of evaporite, which also coincide with

geophysical gravity “lows”. If the subject exploration licenses are shown to be the

location of lower Codroy Formation evaporitic sequences it may be reasonable to expect

that exploration of the ground where these sequences are present could result in the

discovery of evaporite minerals that may include sylvinite and carnallite; and

3. While there has been no drilling on the Universal property for potash, it is the opinion of

the authors that further work is justified in testing for the presence of sylvinite and/or

carnallite mineralization within the licenced ground, specifically within the regions

marked by the highlighted area on Figure 9, as investigations to date suggest that these

lands lie within the extent of the prospective lower Codroy Group rocks and may locally

be coincident with a gravity lows.

Presentation Copy





Given the above conclusions, the authors recommend the following further steps in

determining whether or not a potash mineral resource is present on the Universal Uranium Ltd.

mineral exploration licenses:

• Ground truthing and confirmation of the sedimentological and structural

environment on the Universal Uranium mineral licences;

• If appropriate stratigraphy is indicated, a detailed ground gravity survey to

identify and delineate any gravity “low” features on the property could follow;

and

• If suitable gravity features are identified a program of drill testing of these

features may be warranted to confirm the presence of sylvinite and/or carnallite

mineralization.

The St Georges Subbasin is a metallogenically interesting area with regional indications of

several other mineral commodities, including coal, uranium and base metals. The potential for

economic concentrations of these should not be discounted during the proposed work program.

2.0 INTRODUCTION AND TERMS OF REFERENCE

This report has been prepared for Universal Uranium Ltd, by Sandra J. Foster P. Geo and

Stephen Halabura P. Geo of North Rim Exploration Limited (NREL) in order to satisfy the

listing requirements of TSX Venture Exchange. NREL reviewed the information supplied by

Universal Uranium Ltd. as well as other publicly available documents. Mr. Halabura visited the

property on August 14, 2008.

Universal Uranium Ltd. acquired (through its agreement with Alpha Uranium Resources

Inc) the seven licences of this study, to assess their prospectivity for economic concentrations of

potash, among other prospective minerals (Appendix 1).

NREL is a geological consulting company based in Saskatoon, Saskatchewan, and was

issued a Certificate of Authorization No. C905 by the Association of Professional Engineers and

Geoscientists of Saskatchewan. The firm was founded in 1984 by Mr. Steve Halabura, P.Geo, as

a private consulting firm holding “Permission to Consult” in the field of geology of petroleum,

potash, and industrial minerals resources. Recently NREL was awarded a Certificate of

Authorization #3184 from the Association of Professional Engineers and Geoscientists of

Newfoundland and Labrador.

The principal author of this report is Sandra Jean Foster, Professional Geologist (P.Geo).

Ms Foster is a consultant registered with APEGS (Member No. 10598) with an authorized scope

of consulting practice defined as Geology: Mineral Exploration and Mining. Ms. Foster has over

20 years experience in the mineral exploration industry in a variety of sedimentary and hard rock

environments as well as several years employment in producing mines. She has been involved in

Presentation Copy





projects in a number of geographic regions including Saskatchewan, Northwest Territories and

Nunavut, eastern United States and West Africa. Her specialties included regional basinal

analysis and regional geological mapping, the planning and execution of exploration programs

for a variety of mineral commodities, and expertise in the field of uranium deposits.

The co-author of this report is Mr. Stephen P. Halabura, Professional Geologist (P.Geo.), owner,

president, and principal consulting geologist of NREL. Mr. Halabura is registered with the

Association of Professional Engineers and Geoscientists of Saskatchewan (Member No. 9981),

the Association of Professional Engineers and Geoscientists of Manitoba (Member No. 23414G),

the Association of Professional Engineers and Geoscientists of New Brunswick (Member No.

3702), the Association of Professional Geoscientists of Ontario (Member No. 1242), and the

Association of Professional Engineers, Geologists and Geophysicists of Alberta (Member

M85169). Mr. Halabura has been a consulting geologist since 1984, and during this period, has

undertaken over 90 potash, halite, and brine projects for a wide number of mining, petroleum,

and private corporations. Mr. Halabura is considered an “Independent Qualified Person” for

purposes of compliance with the NI43-101 standards.

Both Ms Foster and Mr. Halabura are registered members of the Association of Professional

Engineers and Geoscientists of Newfoundland and Labrador.

DISCLAIMER

In the preparation of this report, the authors have relied on historical reports, opinions and

statements not prepared under their supervision; therefore the authors hereby do not take

responsibility specifically for the accuracy of the historical data. These items will be hereinafter

identified in this report as being either “third party reports” or “historical information”.

Analytical procedures, personnel, and facilities used by the previous evaluators were not

necessarily independent and it is not known if the authors of those reports were “Qualified

Persons” as defined by National Instrument 43-101.

Sources of information on prior exploration work in the general mineral exploration licence area

are available as technical reports filed in fulfillment of annual assessment requirements that

become non-confidential after 3 years. These reports do not necessarily provide a complete

record of exploration work. It is not known if the material on file represents the complete record

of all information collected by the previous exploration company.

The Phanerozoic stratigraphy in the Bay St Georges area and the processes of evaporite

precipitation, diagenesis, dissolution, and preservation are topics of both historical and on-going

research by numerous industry, academic, and government bodies.

Property descriptions and land status were obtained from the list of lands as set forth in the on-

line data provided by the Department of Mines and Energy, Newfoundland and Labrador

Mineral Licence Inquiry database. No attempt to independently verify the land tenure

information was made by the present authors.

Presentation Copy





The present Technical Report is prepared for the purposes of meeting the requirements of

National Instrument 43-101. It is based upon a study undertaken by the authors on behalf of

Universal Uranium Ltd.. of the geology of its mineral licences comprising the Bay St Georges

property, the main objectives of the study being to determine the general prospectivity of the

property for potash. Most information comprising the bulk of the investigation was available

through public record sources and derived from the expertise of the authors, which was gained

during their participation in other mining ventures. No engineering designs were produced and

assumptions and estimates were made in many areas given the generic sense of the report and

that the project is still in the early phase of evaluation. Consequently, final grade and tonnage

values based upon a selected mining cut or room height, mill feed calculation and the calculation

of estimated revenue and expense streams were not made, nor was any reference given either to

potash “ore” ,“reserve”, or “resource”, which as yet, does not exist.

Furthermore, the reader is reminded that the term “ore” should not be used, disclosed or implied

unless proven reserves have been estimated on the property. To be called ore, the economic

factor must be taken into account and it must be possible to extract metals or minerals profitably

from the ore. Since no proven reserves have been identified during the course of work

undertaken to prepare this report, the term “ore” will not be used; however, where the term “ore”

is used in this report, it is in the context of a direct quote taken from third-party reports or papers

and as such is not compliant with recommendations set forth in National Instrument 43-101.

The primary use of the technical information contained within the study will be to provide basic

information for additional geological, geophysical, engineering, and economic studies.

Presentation Copy





2.1 Definition of Terms

2.1.1 Explanation of Mineral Names

Names of minerals used throughout this report are as shown in Table 1.

TABLE 1

Mineral and Rock Names and Definitions

Name Chemical Formula/Definition

Halite NaCl

Sylvite KCl

Carnallite KMgCl3 x 6 H2O

Tachyhydrite CaMg2Cl6 x 12 H2O

Bischofite MgCL2 x 6 H2O

Anhydrite CaSO4

Polyhalite Ca2K2Mg(SO4)4 x 2H2O

Kieserite MgSO4 x H2O

Dolomite CaMg(CO3)2

Kainite 4KMg(SO4)Cl x 11H2O

Sylvinite Rock composed of sylvite, halite and minor

amounts of carnallite, clay, dolomite and

anhydrite

Carnallitite Rock composed of carnallite, sylvite, halite and

minor amounts of clay, dolomite and anhydrite

Potash A generic term for the mineral sylvite and the

rock sylvinite, commonly inferring the

fertilizer value of the rocks mineralogy.

Presentation Copy





2.1.2 Other Terms and Definitions

The term “potash” is a colloquial term that is a contraction of “muriate of potash” which

is expressed by the chemical formula “K2O” or “potassium oxide.” The terms “muriate of

potash” and the contraction “K2O” are commonly used in the potash industry to refer to the sales

product (i.e., potassium oxide resulting from the mining and milling of sylvite-bearing rock or

“sylvinite”). “Sylvite” refers to the potassium mineral “sylvite” or potassium chloride (“KCl”).

The product mined and sold is KCl. A ton of KCl contains an equivalent of 0.63 tons of K2O.

In this report, the term “potash” will be used in the generic sense of the minerals that are

potassium chloride-bearing, and the term “sylvinite” will be used to describe the specific mixture

of sylvite (KCl) and halite (NaCl) that is the source of the “potash.” Sylvinite may also contain

clay, anhydrite, and dolomite crystals that are collectively identified in the assay reports as

“water insolubles.” Other impurities include the minerals carnallite (KCl.MgCl2.6H2O) and

kieserite (MgSO4.H2O). The presence of magnesium (Mg) is unfavorable and concentrations

over 0.25% Mg can impact plant performance and require special non-standard processing.

Where these terms are used in quotes, it reflects the use of these terms as per the historical record

or previous authors. The word “salt” is also used as a colloquial term referring to the unspecified

or undifferentiated evaporite minerals. For the purposes of this report the word halite is used

wherever NaCl is known to occur. The term evaporite refers to a generic category of minerals

that have formed as a result of water evaporation, such as halite.

Potash fertilizer is concentrated, >95% pure KCL, but the convention for reporting ore grades is

based on the K2O value of the different potassium-bearing rocks and minerals. To convert from

K2O equivalent tones to actual KCL tonnes, multiply by 1.63.

3.0 RELIANCE ON OTHER EXPERTS

The authors have relied upon information available to the general public and have not undertaken

any work to validate such work. As part of the reporting process, Mr. Halabura undertook a site

visit to the properties during the period August 14 to 15, 2008. During the visit no attempt was

made to physically determine the presence of potash, other than to visit the ground location of

the permits, discuss, in person, the geology of the St. Georges Basin with local geologists, and

visit the offices and the core of the Department of Mineral Resources in Pasadena,

Newfoundland. While at the A.K. Snelgrove Mineral Core Library in Pasadena, NL Mr.

Halabura examined selected cores from the drill holes PF-1, PF-2, Hooker #1 and Captain Cook

#1, and was able to confirm the local presence of sylvinite and carnallitite. No attempt was made

to undertake detailed descriptive core logging.

4.0 PROPERTY DESCRIPTION AND LOCATION

The Universal Uranium Ltd. Bay St Georges Property consists of 816 contiguous mineral

exploration claims issued to Alpha Uranium Resources Inc. under the Mineral Act of

Newfoundland and Labrador in 2007. These licences were subsequently sold to Universal

Uranium Ltd (Appendix 1).

�

�

�

�

�

�

�

�

�

013568M

013572M

013569M

013581M

013570M

013580M

013584M

Highlands River

DDH-03Robinsons

DDH-01St. Fintans

DDH-01Captain Cook #1

DDH-03Fischells Brook

PF-2PF-1

Kippens

Mainland

Flat Bay

St. Teresa

Stephenville

St. George's

Piccadilly Head

Stephenville Crossing

58°30'W

58°30'W

59°W

59°W

48°30'N

48°30'N

48°15'N

48°15'N

0 2 4 6 8 10 km

F:\1_North_America\Canada\Newfoundland\Bay_St_Georges\_Compilation\BYSG08001.mxd

±

Drawn by:

Checked by:

Approved by:

Revision:

File No.:

Date:

Geo. Ref.:

Scale:

BAY ST. GEORGES POTASH

UNIVERSAL URANIUM LTD.

LOCATION MAP

Wally Harildstad

Sandra Foster P. Geo

Steve Halabura P. Geo

BYSG08001.mxd

August 25, 2008

UTM Zone 21N, WGS84

1:250,000

Figure: 1

!

!

! !!!

!

!

!

!!!

!

!

!

Quebec

Newfoundland

Nova Scotia

Gander

Marystown

Stratford

St. John's

Corner Brook

0 100 200 km

Map Area

Location MapScale 1:10,000,000

±

Legend

E Salt Spring

h Drilling Intersection "Potash" Mineralization

Drill Hole Locations

� Pronto Expl.

! Amax Expl. Inc.

! Hooker Chemical

! Leeson Resources Inc.

! NFLD Dept. Mines

! Westminer Canada

Dispositions


Claims Held By Others

Source: - http://gis.geosurv.gov.nl.ca - Newfoundland and Labrador Geological Survey - Geofiles Collection (assessment reports)

013568M

013572M

013569M

013581M

013570M

013580M

013584M

Highlands River

DDH-01St. Fintans

0 1 2 3 4 km


±

Drawn by:

Checked by:

Approved by:

Revision:

File No.:

Date:

Geo. Ref.:

Scale:



UNIVERSAL URANIUM LTD.DISPOSITION LOCATION

Wally Harildstad

Sandra Foster P. Geo.

Steve Halabura P. Geo.

BYSG08007.mxd

September 12, 2008

UTM Zone 21N, WGS84

1:100,000

Figure: 2

!

!

! !!!

!

!

!

!!!

!

!

!

Quebec

Newfoundland

Nova Scotia

Gander

Marystown

Stratford

St. John's

Corner Brook

0 100 200 km

Map Area

Location Map

Scale 1:10,000,000

±

Legend

! Drill Cores

E Salt Spring

! Drilling With Potash Mineralization

Dispositions

Universal Uranium Ltd.Source: - http://gis.geosurv.gov.nl.ca - Google Earth

Presentation Copy





The property is entirely located within the 12B/02 National Topographic System map

areas approximately 57 km south of Stephenville and 100 km southwest of Corner Brook, NL.

Canada. The property is centered at approximately Latitude 48○ 10' 44" N and Longitude 58

○ 40'

45" W (Figures 1 and 2).

4.1 Land Tenure

Mineral exploration claims in Newfoundland and Labrador are issued under the

Province’s Mineral Act (amended). Any individual 19 years of age or more and registered with

the Provincial mineral claims on-line staking system, or a comparable registered corporation, can

acquire mineral exploration claims in the Province. Exploration licences are issued for five years

and may be renewed through application, payment of prescribed renewal fees and demonstration

that the required assessment work has been performed. Information presented in Table 1

identifies constituent exploration licences and associated data.

Table 2: Summary of Bay St Georges Property Exploration Licences

LICENCE

NO. HOLDER

NO. OF

CLAIMS

DATE OF

ISSUE

MAP

SHEET

013580M Universal Uranium Ltd. 100 2007/06/08 12B/02






013569 Universal Uranium Ltd. 116 2007/06/06 12B/02

TOTAL 816

Presentation Copy





5.0 ACCESSIBILITY, CLIMATE, INFRASTRUCTURE, AND PHYSIOGRAPHY

5.1 Topography and Physiography

The southern Bay St Georges Subbasin consists of a broad coastal plain covered by till

inland and gravel closer to the coast. In the highland areas, a mix of bedrock, till veneers and

patches of thicker till are found.

St Georges Subbasin with Anguille Mountains in background, looking south

Presentation Copy





Highlands, looking east onto the Universal Uranium Ltd. mineral exploration licenses

5.2 Climate

This part of western Newfoundland is characterized by northern boreal zone climatic

conditions. Dramatic seasonal variations occur, with winter conditions of freezing temperatures

and heavy snowfall expected from late November through late March. Spring and fall seasons

are cool, with frequent periods of rain, while summer conditions can be expected to prevail from

late June through early September and typically provide good working conditions for field

parties. Environment Canada records for the 1971 to 2000 period for nearby Stephenville show

daily mean temperatures in August of 16.2○ Celsius (C) and an average summer maximum daily

temperatures of 29.9○ C. The average daily winter temperature in February is -3.2

○ C. The

extreme winter minimum is -29.5○ C. The average yearly precipitation totals 1392 millimetres of

rainfall. Weather and site conditions during the spring break-up period can prevent some

exploration activities and make forestry access roads impassable. For this reason scheduling of

field activities to avoid this period is advisable. Winter programs can be carried out with normal

consideration given to the noted high snowfall and cold temperature conditions.

Presentation Copy





5.3 Infrastructure

The St Georges Bay physiographic region is relatively sparsely populated region except

for the settlements and communities along the coast of St Georges Bay. The property lies

between the larger communities of Stephenville and Port-aux Basques. Numerous smaller

communities are found along the coast. The property is cut by the Trans Canada highway

(Highway No. 1) as it extends between Corner Brook and Channel-Port-aux-Basques, NL.

Numerous logging roads run from the Trans Canada highway into the foothills of the

Long Range Mountains, and into the Anguille Mountains.

The nearest communities to the property are Jeffery’s and Loch Leven, both coastal

communities along the St Georges Bay west of the property.

The Bay St Georges area has utilized two bulk loading facilities with conveyor systems to

load ships. The Turf Point facility is south of Stephenville beside the town of St George and was

built for the export of gypsum. A second bulk loading facility is located at Lower Cove, at the

midpoint of the south side of the Port au Port Peninsula. This terminal was used for carbonate

aggregate shipping. The authors have not verified the current activity at these ports.

6.0 REGIONAL GEOLOGY AND TECTONIC SETTING

The geological formations which host the evaporite sequences in Newfoundland are a

northeastern extension of the Carboniferous aged Maritime Basin (Figure 3). This

intracontinental basin system covered much of Atlantic Canada about 360 to 300 million years

ago, after the closing of the Proto-Atlantic Ocean. The early and late infilling of this basin was

by non-marine, continental clastic sediments. During the middle of this interval, (the Visean

Epoch, estimated to be approximately 17 million years) there was significant deposition of

marine sediments. In the Maritimes this saline basin is referred to as the Windsor Sea and the

marine sediments are assigned to the Windsor Group. Geology of the Bay St Georges Subbasin

of Newfoundland is considered to be broadly analogous to the geology in New Brunswick

There are two large Carboniferous basins in western Newfoundland – the Deer Lake

Basin in the north and the Bay St Georges Subbasin in the south (Figure 3) there was no

significant marine deposition in the Deer Lake Basin and therefore it is unprospective for

evaporite sequences including potash mineralization.

The greatest thickness of Mississippian sediments within eastern Canada lies in the

Fundy Epieugeosyncline. During late Devonian times this northeasterly trending graben or rift

structure extended from eastern New Brunswick to western Newfoundland. The tectonic activity

referred to as the Maritime Disturbance occurred mainly in the basin areas of the Fundy

Epieugeosyncline. This resulted in fragmentation of the Appalachian Basement followed by

contemporaneous uplift and subsidence, creating source and deposition areas for Carboniferous

sedimentation. The combination of recurring epieugeosyncline subsidence with local uplifts

during Carboniferous sedimentation resulted in onlap of each succeeding rock unit upon the

flanks of positive areas.

!

!

!

!

!

!

!

!

!

!

!

!

!

!!

!

!

!

!

!

!!

!

!

!

!

!!

!

!

Atlantic Ocean

FundyEpieugeosyncline

#![

Proposed PCSPicadilly Potash Mine

PCS SussexOperating Potash Mine

PCS (PCA)Cassidy Lake(Flooded)

New Brunswick

Quebec

Nova Scotia

Newfoundland

Prince Edward Island

Moncton

Deer Lake

Bay St Georges

Amqui

Gaspé

Matane

Moncton

Bathurst

Miramichi

Summerside

Saint John

Fredericton

Campbellton

Corner Brook

Charlottetown

Sainte-Anne-des-Monts--Tourelle

Truro

Dover

Dieppe

Halifax

Amherst

Oromocto

Rothesay

Weymouth

Sackville

Kentville

Stratford

Riverview

Quispamsis

Bible Hill

New Glasgow

Cape Breton

Stephenville

0 20 40 60 80 km


±

Drawn by:

Checked by:

Approved by:

Revision:

File No.:

Date:

Geo. Ref.:

Scale:



MARITIME CARBONIFEROUS BASINREGIONAL BEDROCK GEOLOGY

Wally Harildstad



BYSG08006.mxd

August 27, 2008

UTM Zone 21N, WGS84

1:2,000,000

Figure: 3

!!!

!

!

!

!

!

!!!!

Quebec

Newfoundland

New Brunswick

Nova Scotia

Prince Edward Island

Québec

Saguenay

Sherbrooke

St. John's

0 100 200 300 400 km

Map Area


±

Legend

Fundy Epieugeosyncline (after Roulston - 1981)

Disposition


Bedrock Geology

Various Units

Undivided Carboniferous

Sub-Basin

Bay St Georges

Deer Lake

Moncton

Source: - Geological Map of Canada Map 1860A

Presentation Copy





The Bay St. Georges Subbasin exists within the regional scale Fundy Epieugeosyncline

and lies along the southwest coast of Newfoundland. It is bounded on the northwest by the

folded Cambrian Platform and on the southeast by the Newfoundland Platform (Anderle

1982). These two positive areas stood topographically above the sites of deposition throughout

Carboniferous time. The Long Range Mountains composed of Precambrian igneous and

metamorphic rocks were thrust westward up onto the younger Carboniferous Lowlands, and

subsequently dissected the St. Georges Subbasin to its present surface (Anderle and Rogers,

1981). The Anguille anticline forms mountainous highlands which dominate the southern half of

the basin, from the mouth of the Codroy River, north to the Crabbes River

The Bay St Georges Subbasin formed as a “pull-apart” basin on the western side of the

Long Range Mountains. Its maximum width during the time of the deposition of the Codroy

Group was approximately 60 km. Deformation caused local and regional compression and tilting

of the sedimentary rocks, resulting in broad, open folds, reverse and normal faulting and “salt”

tectonism. Today, the Mississippian and Pennsylvanian formations lie with pronounced angular

unconformity on Paleozoic and Precambrian fault-bounded basement blocks.

Carboniferous rocks in the St. Georges Subbasin area were folded into two northeast-trending

folds. An open anticline involving mainly Mississippian rocks is called the Anguille Anticline

and occupies most of the western central portion of the area. It extends from Flat Bay to

Robinsons. The other fold is an open syncline, called the Codroy Syncline that involves mainly

Pennsylvanian rocks and occupies the eastern portion of the Fischells area. A northeast-trending

fault extending through the centre of the area separates the two open folds. This latter fault

passes between the previous Amax and Hooker drill holes at Fischells Brook. Other small

reverse and normal faults trend northeastwards and northwestwards (Anderle and Rogers, 1981).

This marine-dominated package of rocks is approximately 1000 metres thick with over

half of the section comprised of evaporites. In New Brunswick and Nova Scotia this marine

sequence of rocks are extremely important economically, for it contains mineable deposits of

potash, halite and gypsum, agricultural and metallurgical grade limestone, barite, celestite,

masonry shale and native sulphur deposits. There is ongoing exploration for hydrocarbons in

Carboniferous aged rocks in New Brunswick and Newfoundland.

In the Bay St Georges Subbasin there is an approximately 10,000 metre thick sequence of

sediments that are divided into three groups, namely the lower Anguille Group, the middle

Codroy Group, and the upper Barachois Group. Marine sediments are only present in the Codroy

Group (Figure 4).

In the Bay St Georges Subbasin the prospective zones for marine evaporite deposition are

within the lower Codroy Group which is the only marine portion of the stratigraphic sequence in

this area. At the base of the Codroy Group is the Ship Cove Formation, a subtidal to supratidal

laminated limestone unit from 20 to 45 metres thick and conformably overlying the Anguille

Group. The Ship Cove limestone is overlain by the Codroy Road Formation and the lower

Jeffrey’s Village member of the Robinsons River Formation. These rocks comprise sulphate and

Presentation Copy





chloride evaporites. The upper Jeffrey’s Village and Highland members of the Robinsons River

Formation contain marine sediments and alluvial red beds. Fluvial sandstones of the Barachois

Group overlie the sequence. The most prospective units for evaporite deposits are at the bottom

(zone a) and top (zone b) of the Codroy Road Formation (Figure 4 and Figure 8).

A portion of the Universal Uranium’s mineral lease property coincides with bedrock geology of

the Codroy Group although bedrock of the Barachois Group is present in the north central

licence areas and the Anguille Group is present in licence area 01358M, located on the

southwestern edge of the property (Figure 5).

7.0 STRATIGRAPHY OF THE ST GEORGES SUBBASIN AREA

No documentation of the stratigraphy of the immediate property area is known to the

authors, nor have any drill cores from the immediate area been examined to determine the

stratigraphy on the property or its immediate environs. This section is a summary based on a

stratigraphic study by (Worth 1981) and included in Dimmell (1981) and a report on the potash

resources of Newfoundland by Anderle (1982) which also cites Knight (1981). These references

reflect the regional stratigraphic setting in the St Georges subbasin. Variations of the geology on

the exploration leases may include areas where some units were not deposited or preserved or

different units may be present. This could only be determined by onsite core drilling.

In the St Georges Subbasin the basement rocks upon which the Carboniferous sediments

lie are pre-Carboniferous anorthosites and basic gneisses of the Long Range Complex. These

rocks make up the core of the Anguille anticline and fragments of them are present in the

younger clastics of the area.

7.1 Anguille Group

The Anguille Group are the oldest and lower most sedimentary rocks, which were

deposited after the basin was formed, are many fluvial conglomerates and sandstones with minor

marine shales of late Devonian/early Mississippian age..

7.2 Codroy Group

The Lower Carboniferous Codroy Group in the Bay St Georges area was documented by

Hayes and Johnson (1938), Bell (1948), Fong and Knight (1975) and Worth (1981). The most

comprehensive assessment of the stratigraphy in this area is the work by Bell (1948). Bell

studied the fossil fauna of the limestones within the Codroy red beds and compared them with

the type-section area of the Windsor Group in Nova Scotia. The Windsor Group is host to the

most significant evaporite mineralization in the Maritime Basin, including the operating potash

mine at Sussex NB.

The Codroy Group contains up to 2,700 metres of red shales, siltstones, limestones,

gypsum and sandstones which disconformably overly the Anguille Group rocks.

schist

sedimentary

siliciclastic non-marine

siliciclastic non-marine sandstone

plutonic felsic

gneiss

plutonic anorthosite

Highlands River

DDH-03Robinsons

DDH-01St. Fintans



013568M

013572M

013569M

013581M

013570M

013580M

013584M

0 2 4 6 8 10 km


±

Drawn by:

Checked by:

Approved by:

Revision:

File No.:

Date:

Geo. Ref.:

Scale:



GEOLOGY MAP

Wally Harildstad



BYSG08002.mxd

August 28, 2008

UTM Zone 21N, WGS84

1:250,000

Figure: 5

!

!

! !!!

!

!

!

!!!

!

!

!

Quebec

Newfoundland

Nova Scotia

Gander

Marystown

Stratford

St. John's

Corner Brook

0 100 200 km

Map Area


±

Legend

! Drill Cores

E Salt Spring


Dispositions



Geological Contacts

Detailed Geology

Anguille Group (Bay St. George Subbasin)

Barachois Group

Codroy Group

Elsonian anorthosite suites

Fleur de Lys Supergroup

Long Range gneiss complex

Southwest Brook complex

Source: - http://gis.geosurv.gov.nl.ca - Newfoundland and Labrador Geological Survey - Geofiles Collection (assessment reports), MODS Database - Geological Map of Canada Map 1860A

Presentation Copy





The lower Codroy section comprises a basal succession of limestone. gypsum, and fine-

grained clastics overlain by four red bed units, two of which contain relatively thick limestone

units (Figures 4 and 7).

7.2.1 Ship Cove Formation

The Ship Cove lies at the base of the Codroy Group. This sequence includes the basal

Ship Cove arenaceous limestone and sandstone. Other lithologies include the black fossiliferous

Cormorant Limestone and several gypsum horizons ranging from 3 metres to 35 metres in

thickness. These are intercalated with red-brown and grey siltstone, mudstone and shale.

7.2.2 Journois Pond Formation

Rocks of the Journois Pond Formation conformably overlie the Ship Cove Formation. This

formation is composed of mainly gypsum and anhydrite lithologies. Two horizons of gypsum

occur at the base of the Journois Pond Formation. The basal unit is a red and grey gypsiferous

shale overlain by grey marine mudstone.

7.2.3 Woodville Formation

The two lower gypsum/anhydrite units of the Jounois Pond Formation are overlain by the “salt”

and grey shale sequence of the Woodville Formation. This formation is divided into basal,

middle and upper halite members with an overlying grey shale member.

7.2.4 Jeffreys Village Formation

The Woodville Formation evaporites are overlain by the clastic sequence of the Jeffreys Village

Formation. The lower portion was deposited as deltaic channel sediments with minor evaporitic

mudflats and hypersaline ponds and lagoons.

The upper Jeffreys Village Formation is marine limestone and dolomite beds with intercalated

calcareous sandstone and siltstone beds. A thick gypsum bed may be marked by sinkholes at

surface.

7.2.5 Summary

The Ship Cove limestones, Journois Pond anhydrite and the Woodville evaporites and marine

shale comprise the “Windsor A sub-zone” of Bell (1948).

In summary, the sequence most likely to contain sylvinite and carnallite beds within the vicinity

of the Universal exploration licences are within the lower Codroy Group. If the Woodville or

equivalent formations are present on the property they would be the most prospective for potash

mineralization.

7.3 Structural Geology

Worth (1981) points out that based on his interpretation of air photographs of this area,

there is evidence that the Codroy Group is divided into several structural blocks by east-west

trending thrust zones and cut by east-west trending normal (?) faults.

Presentation Copy





Worth (1981) interpreted that the main thrust zones extend from Plaster Cove to French

Brook and along Butter Brook. Early east-west faulting is reported to be most evident in the Ship

Cove area (Figure 1). It trends sub-parallel to the Codroy/Anguille contact. This faulting lies

beneath the Plaster Cover – French Brook thrust Zone. These faults could be genetically related

to the thrust although Worth did not think that these faults extend into the overlying thrust plate.

8.0 HISTORY OF EXPLORATION FOR POTASH IN THE BAY ST GEORGES

SUBBASIN

The following summary of “salt” and potash exploration history of the Bay St Georges

Subbasin is based on conversations between the senior author and Andrew Kerr of the

Newfoundland and Labrador Geological Survey in June, 2008. Where terms are presented in

quotes, the usage reflects the use of the terms as they appear in the historical record.

The presence of “salt” springs in southwest Newfoundland was first noted in the 1930’s.

Regional gravity surveys completed in the 1950’s identified several “gravity lows”, suspected to

be caused by subsurface evaporites. In 1968, a drill hole near Fischells Brook intersected a

sequence of evaporite minerals, primarily halite with sylvite and carnallite. It is the opinion of

the authors that the intersection referred to in the historical record is probably found within lower

strata of the Codroy Group, possibly the Woodville Formation. Further gravity surveys were

then completed, leading to the identification of additional anomalies. Subsequent drilling at St

Fintans and Robinsons also intersected subsurface “salt” deposits. Drill testing of anomalies at St

Teresa, near Fischells Brook, and elsewhere failed to identify “salt” deposits. Other gravity lows

in the subbasin remain untested, as they were interpreted to reflect locally thick overburden,

rather than subsurface evaporites. The most extensive drilling to date was at Fischells Brook, in

the early 1980’s. The locations of this historic drilling are presented on Figures 5 and 6.

Complete details of these exploration programs and their results are provided by Knight (1983)

and Dimmell (2001).

In 2002 and 2004 Vulcan Minerals explored the petroleum potential of the northern Bay St

George Subbasin and completed two drill holes in the Flat Bay area. These holes intersected

thick sequences of “salt”, including several potash-enriched sections (Laracy, 2002). There has

been substantial interest in potash potential recently, due to rising commodity prices, and much

of the prospective ground has been staked.

Selected drill cores from historical drilling programs are preserved at the A.K. Snelgrove

Mineral Core Library at Pasadena NL. A summary spreadsheet and photographs documenting

these cores is included in Appendix 2. Stephen Halabura visited the facility and examined a very

small selection of archived core from the St Georges Bay Subbasin in conjunction with the

property site visit on August 14, 2008.

Presentation Copy





8.1 Summary of Known “Salt” and “Potash” Occurrences in the Bay St

Georges Subbasin

The material under this heading is summarized from Knight (1983), Dimmell (2001),

Mineral Occurrence Data System (MODS) and Laracy (2002). There are presently five “salt”

occurrences listed in MODS, of which four are known to contain associated potash. The sixth

occurrence (Flat Bay #2) is not yet present in the MODS database (Andrew Kerr, 2008 pers

comm.). None of the historic exploration documented in these references was conducted on the

Universal Uranium exploration leases or has been verified by the authors of this report.

8.1.1 Fischells Brook

The Fischells Brook “salt” occurrence is located approximately 4 km due east of the

Trans Canada Highway bridge over Fischells Brook and 300m south of the Trans Canada

Highway, approximately 12 km northeast of the subject exploration leases (Figures 5 and 6). The

area is a wooded, swampy, river valley within the coastal plain region.

This is the most extensively explored evaporite deposit in the province, but it is still

defined by only a few drill holes. Initial drilling by Hooker Chemical in 1968 intersected 750 m

of “salt”, commencing at a depth of 358m below surface, with a potash-bearing zone near the top

of the evaporite sequence (381- 410m) that comprises an upper sylvite-bearing zone and a lower

carnallite-bearing zone. Subsequent drilling in the 1980s also indicated substantial thicknesses of

“salt”, but did not adequately define a resource. This work further confirmed the upper potash-

bearing unit, and also defined a deeper unit (below 515m) dominated by carnallite, rather than

sylvite. Knight (1983) suggested that the deposit could contain as much as 7 billion tonnes of

“salt”, based on earlier interpretation of the associated gravity anomaly. The unusual thickness of

this “salt” deposit suggests that it may be a diapiric “plug” rather than a stratigraphic

accumulation, although such unusual thicknesses could be produced in the latter situation if

sedimentation was accompanied by active subsidence. The potash-bearing zones contain from

3.7% to 15.3% K2O. The highest-grade intersection was 4.1 m averaging 13.2% K2O, reported to

be mostly sylvite; the thickest intersection of interest was 7.8 m at 7.95% K2O. The possibility

that the Fischells Brook deposit is a discordant plug developed through diapiric processes

suggests that potash-rich zones within it may be complex in geometry and/or discontinuous.

Dimmell (2001) considered the area to have potential for further exploration aimed at potash,

rather than “salt”.

Evaporite minerals documented at the Fischells Brook occurrence are halite, polyhalite,

sylvite and carnallite. The “salt” deposit lies on the eastern limb of the northeast-striking

Fischells - Barachois anticline and has a distinct gravity (low) signature associated with it. The

deposit has been intersected by three diamond drill holes which reveal some detail of the

deposit. The 1968 discovery hole drilled by Hooker Chemical was located about 120m south of

the Trans Canada Highway near Fischells Brook, 15km south-southwest of the Town of St.

Presentation Copy





Georges and 10km from the coast. The total depth of the hole was 1099m (3605

feet). Approximately 750m of “salt” was intersected with the hole still in “salt” at 1099m.

The “salt” deposits are within an evaporite sequence of the Codroy Group

(Mississippian)(Woodville Formation?) and appear to constitute domal structures consisting

mainly of halite (NaCl) with some potassium, either as sylvite (KC1) or carnallite (KMgCl3 -

6H20) (Fleming, 1974). The Codroy Group evaporites were intersected at a depth of 337m with

the “salt” section beginning at 358m. Minor potash was located within the “salt” section. A total

of 7.6m (25 feet) grading 6.9% K2O was intersected between 376m (1234 feet) and 383.7m

(1259 feet). The best section was 1.5m (5 feet) grading 13.4% K2O.

Within the “salt” zone, there are a few “salt”-bearing red and brown mudstone beds. The

evaporite minerals consist mainly of red, orange, pink and gray halite and various amounts of

polyhalite and sylvite.

Gypsum and anhydrite are present in the basal part of this zone. Halite crystals up to

10cm in diameter are common within these beds. The best sylvite mineralization is in the

section from 370m to 393m which contains up to 11% KC1. The content of NaC1 in the same

section ranges from 97% to 98.2%. Assays for the other part of the “salt” zone in this hole are

not available.

In 1980, Pronto Exploration drilled two holes (PF-1 and PF-2) to test the potash potential

of the northern portion of the inland negative gravity anomaly at Fischells Brook (Figure 1 and

Figure 6). The following descriptions are extracted from Anderle (1982).

The first Pronto drill hole (PF-1) was located some 1,066 m (3500 feet) north-northwest

of the Hooker Chemical discovery drill hole. The drill hole collared in rocks of the Highlands

Formation. At 42.7 to 70.1m (140 to 230 feet), a series of thin limestone beds were

intersected. The hole encountered the gypsiferous rocks of the Woodville Formation at 286.5m

(940 feet). The top of the “salt” sequence was encountered at 321.9m (1,056 feet) without

encountering any major anhydrite or gypsum beds.

The upper “salt” member contains interbedded mudstone-siltstone and brown halite from 321.8

to 370.3m (1056 to 1215 feet); banded brown-clear-black halite interbedded with carnallite and

mudstone, with minor sylvite and scattered polyhalite from 370.3 to 706.5m (1215 to 2318

feet). The lower basal “salt” member consists of light orange halite and anhydrite stringers from

706.5 to 720.2m (2318 to 2363 feet) and coarse-grained, grey halite with bands of grey anhydrite

from 720.2 to 879.9m (2363 to 3887 feet). The Lower Basal “salt” contains two sylvite units

between 711.1 to 731.2m (2333 to 2399 feet) that contain 6.3 to 9.2% K2O across 5.6 and 3.0

feet respectively.

The second Pronto drill hole (PF-2) was located some 1200m (3940 feet) north of the

Hooker Chemical discovery hole. This hole encountered dark gray shales and minor gypsum

beds of the Woodville Formation after penetrating 18.2m (60 feet) of glacial till. “Salt” was

encountered at 203.4m (667 feet). “Potash” mineralization consisting of minor sylvite and

013568M

013572M

013569M

013581M

013570M

013580M

013584M

L

L

L

L

L

L

L

L

L

Highlands River

DDH-03Robinsons

DDH-01St. Fintans



0 2 4 6 8 10 km


±

Drawn by:

Checked by:

Approved by:

Revision:

File No.:

Date:

Geo. Ref.:

Scale:



BOUGUER GRAVITY

Wally Harildstad



BYSG08003.mxd

August 28, 2008

UTM Zone 21N, WGS84

1:250,000

Figure: 6

!

!

! !!!

!

!

!

!!!

!

!

!

Quebec

Newfoundland

Nova Scotia

Gander

Marystown

Stratford

St. John's

Corner Brook

0 100 200 km

Map Area


±

Source: - Anderle, 1985 - Kilfoil, per com, 2008

Legend

! Drill Cores

E Salt Spring


Bouguer Gravity Anomaly

Dispositions



Presentation Copy





crystal coatings of carnallite was first encountered at 214.9m (705 feet). A 0 to 30 degree

dipping sylvite horizon was encountered at 230.4 to 465.1m (753 to 1526 feet).

The carnallite horizon, although structurally disturbed, lies immediately below the sylvite

horizon at 551.7 to 565.2m (1810 to 1854.4 feet). It is associated with a sylvite zone at 565.2 to

567.3m (1854.4 to 1861.4 feet) that runs 13.3% K2O. The carnallite zone is at 555.9 to 564.3m

(1824 to 1851.4 feet) averaging 8.33% K2O with 1 to 22% water insolubles.

The upper “salt” member contains interbedded mudstone with brownish halite from 203.3

to 214.9m (667 to 705 feet); interbedded brown to orange halite, mudstone, clear sylvite and

minor red carnallite from 214.9 to 421.5m (705 to 1383 feet); the lower basal “salt” contains a

potash member from 431.3 to 446.8 m (1415 to 1466 feet). The core interval between 465.1 to

545.9m (1526 to 1791 feet) is a faulted and folded section repeating the beds from 417.8 to

564.1m (1371 to 1526 feet). A clear to pink fibrous bed of pure carnallite averaging 17% K2O is

repeated four times between 506.8 to 520.6m (1663 to 1708 feet). The lower basal “salt” is

again recognizable as gray halite with anhydrite stringers and/or blebs at 591.6m (1941 feet).

Repeated portions of these folded zones average 13.2% and 15.3% K2O. Analyses - Oven-dried

basis 105 degrees Celsius.

8.1.2 Captain Cook # 1

This thick evaporite deposit is indicated by a petroleum exploration well completed in the

Flat Bay area in 2002 (Figures 1, 3 and 5). Vulcan Minerals Inc. identified anomalous features

that were suggestive of halite deposits. The single 605.2m drill hole (Captain Cook #1) was

highlighted by the intersection of more than 150m of halite including several potassium-

enriched sections (Laracy, 2002).

Drilling indicated over 165m of “salt” deposits, which appear to be well stratified,

suggesting that there has been little flowage of material. The depth to the top of the “salt” is

about 197m. The descriptions indicate white, homogeneous halite, and thinner pink to red beds

interpreted to contain the minerals sylvite and/or carnallite (Laracy, 2002). The “salt” section is

underlain by almost 250m of anhydrite. No information on potash grades has been released by

the company; however personal examination of the core by Halabura during the August 14, 2008

site visit confirmed the occurrence of sylvite (290.0m to 293.0m) and carnallite (293.5 to

297.0m).

Presentation Copy





8.1.3 Flat Bay # 2

This occurrence was discovered by means of a petroleum exploration well drilled at this

site in 2004. The drill hole, Flat Bay #2, is located approximately 2 km southeast of Captain

Cook #1, and it intersected 200m of primarily halite bearing evaporites. Vulcan Minerals

describe this material as similar to the “salt” zone in Captain Cook #1, and proposes that the two

deposits may be physically connected on the basis of seismic surveys, There is presently no

information on the distribution and/or grades of any potash-rich zones in the evaporite interval,

or if there is a lower section of anhydrite mineralization, as in Captain Cook #1.

8.1.4 St. Fintans

The St Fintans occurrence is located 2.5 km due south of the mouth of Crabbes River,

approximately 200m from the road between St. David’s and St. Fintans (Highway 405) (Figures

1 and 5). It is the closest drilled occurrence of potash to the Universal Uranium mineral leases,

occurring some 10 to 15 kilometers from the western boundary of the Mineral Exploration

Lease 013584M. The occurrence is located in a very flat coastal plane approximately 1.7 km

from the St. Georges Bay coastline. There may be some karst development in the area, manifest

by small sinkholes

Captain Cook #1 drill core:

Potash intersection 279.6m to

297.0 m

Presentation Copy





The drill hole is located on the northern limb of an open symmetrical syncline; with the

trend of the axial plain being NW-SE. Worth's report on the stratigraphy of the Highlands - St.

Fintans area suggests intense deformation of the “salt” and “potash” beds in the St. Fintans ”salt”

body (Dimmell, 1981).

This deposit is defined by a drill hole completed in the 1970s, which intersected

approximately 89m of evaporite mineralization. The top of the deposit is located at about 230m

below surface. The main "salt" zone is flanked by zones containing numerous thin “salt” beds.

The “salt” was not considered to be high enough in quality to warrant economic exploitation, and

individual beds were generally less than 3 m thick. There are 11 “potash”-rich zones, ranging

from < 0.5 m to 4.3 m in thickness, grading from 3.7% to 9.1% K2O. Both sylvite and carnallite

were reported to be present. Anhydrite is also present in the “salt”-rich sections, and the

insoluble content is relatively high. The deposit is overlain by approximately 756 feet of glacial

material and Codroy shale.

The highest potassium assay results from the core were 6.61% (over 2.5 feet) of white

and red “salt” at the 803 to 806 foot depth.

8.1.5 Robinsons

The occurrence is located ENE of the community of Heatherton, between highway 63

and the CNR rail line on the south side of Seal Brook. The occurrence lies in a wooded, low, flat

coastal plain 1.1 km from tidewater. Some karst topography may occur in the area. Outcrop in

the area is very scarce; the drill hole penetrated in excess of 45 m of overburden at the site.

Three anomalies appear in the residual gravity map but only the northernmost was

tested. Gypsum and/or overburden were considered as likely causes for the two minor anomalies

in this area. The existence of “salt” springs in this area and the relatively shallow depths at

which “salt” might have added to the interest in this prospect.

The “salt” deposits are within an evaporite sequence of the Codroy Group (Mississippian

age) and appears to constitute domal structures consisting mainly of halite with some potassium,

either as sylvite (KCl) or carnallite (KMgCl)3 6H20) (Fleming, 1974).

This occurrence was discovered by a drill hole completed in the 1970s which intersected

250 m of “salt” at a “depth of 217m to 467.5m; this section consisted of “salt”, described as

gray, white, off-white or “beautiful salt”, also some sections of mud and some “potash”. From

467.5 to 692m end of the hole) a mixture of “salt”, mud and potash was encountered. Below the

main “salt” zones, are black shales with thin “salt” units, and about 50m of “salt” is present just

above the bottom of the hole (692m). The “salt” was described as of generally poor quality, and

commonly mixed with thin mudstone units. “Potash”-rich zones (14 in total) range from about

1m to 8.5m in thickness, but the grades are relatively low, at 2.7% to 5.6% K2O. Both sylvite

and carnallite were noted in the drill core. Over the length of the hole sodium chloride assays

ranged from 99.08% down to 24.12%. Potassium (K) assays ranged from 4.9% down to 0 .06%.

Presentation Copy





Four grab samples of core four inches long, chosen because of their apparent “potash”

potential returned assays that ranged from 4.4% at 1090 feet up to 12% at 1715 feet.

8.1.6 Highlands River

The occurrence is located on the southern fringe of a major southwest-northeast trending

gravity low that lies between Highlands River and Crabbes River, about 2 km south of the

subject mineral leases. Verrall (1954) also notes the existence of “salt” springs at this location.

This occurrence consists of a series of “salt”-bearing springs indicating the presence of

subsurface evaporites, but apparently it has not been tested through drilling. Interpretation of the

gravity data in this area suggested that the potential size of any “salt” deposits would be limited.

(Fleming, 1974). A series of “salt”-bearing springs of particular interest occur in a zone about

150 m long, about 300 m due east of Cartwheel Turn. Salty and brackish water flows in

considerable volume from several vents. Fresh specimens of the water are crystal clear but on

standing for an hour or two turn cloudy brown with limonite which gradually settles to the

bottom or clings to the sides of a container (Verrall, 1954). A cursory analysis indicates a little

over 1% sodium chloride. The springs issue from strata of the lower Codroy Group of clastic

and carbonate rocks. They strike northeast and dip to the southeast. The beds are folded into

anticlinal/synclinal structures and are faulted locally.

8.1.7 Potential for Further Discoveries

This section is based on correspondence between the principal author and Dr. Andrew

Kerr of the Newfoundland and Labrador Geological Survey in June, 2008 (Kerr, 2008 per

comm.).The presence of evaporite deposits containing lesser amounts of “potash” is well

established in the northern part of the Bay St. Georges Subbasin, but the details and extent of

such deposits are not fully defined. Nevertheless, the thickness of evaporite deposits at Fischells

Brook, and the possible continuity of these deposits between the Captain Cook and Flat Bay

petroleum wells imply the potential for large potential resources. The indicated “potash” grades

are mostly less than 10% K2O, (compared to grades of some 20% to 23% K2O in Saskatchewan

and New Brunswick), and “potash” zones identified to date are relatively thin. These grades were

too low to attract serious interest in the past, but may merit consideration if the current trend

continues and the price of potash is sufficient. As noted by Knight (1983), only the central parts

of most gravity lows have been tested to date, and economic potash deposits in equivalent rocks

in New Brunswick occur on the flanks of associated gravity lows (Knight 1983) and Figure 8. To

date, all known “salt” and/or “potash” deposits are located in the northwestern part of the Bay St

Georges Subbasin, where the prospective rocks lie at relatively shallow depths around the flanks

of the Flat Bay anticline. The interpretations of Knight (1983) suggest that prospective strata also

lie in the deeper subsurface in the northeast, beneath coal-bearing strata of the Barachois Group,

and also in the southeast, beneath the upper terrestrial sedimentary rocks of the Codroy Group.

The depth to rocks with potential to contain evaporites ranges from 1000m in the northeast to as

much as 2000m in the southeast, although the latter estimate is tentative. Given that potash

mining in Saskatchewan currently takes place at depths of approximately 1000m, these

unexplored areas also have potential for economic discoveries, although they represent

intrinsically more challenging targets for exploration and development.

Presentation Copy





9.0 DEPOSIT TYPES

Potash in the Maritime Basin of New Brunswick and Nova Scotia occurs within

structurally complex geological settings which are very different from the settings found in the

Prairie Evaporite sequence of Saskatchewan. It is the opinion of the authors that any occurrences

as described above within the Bay St Georges Basin would likely be similarly complex.

The Carboniferous geology of the Maritime Provinces and Quebec is characterized by a

series of northeast trending fault-bound grabens containing clastics and evaporites (mostly halite)

up to 10 km thick. (Roberts and Williams, 1993) The Windsor Group (Visean) in Nova Scotia

and New Brunswick hosts MgSO4 potash evaporites in several continental intermontaine basins

that were created by extension-driven post-Acadian strike-slip faulting with the evaporite beds

then subjected to plastic deformation, first by extension and then by subsequent compression.

The same evaporite unit that hosts the reported potash beds also acts as a seal to Mississippi

Valley-type deposits at Gays River and Jubilee.

In the Moncton Subbasin, near Sussex New Brunswick the Penobsquis/Piccadilly potash

deposits are hosed in bedded marine evaporite deposits which were precipitated within an Early

Carboniferous rift basin. This depositional complex is believed to have extended from western

Newfoundland southward to the Sussex region of southern New Brunswick where the

Penobsquis / Piccadilly sylvite mineralization is presently being mined. Following deposition,

the horizontally bedded evaporite units were deformed by late Carboniferous thrusting, into

large-scale isoclinal recumbent folds.

10.0 MINERALIZATION

No potash mineralization is known to occur on the subject mineral exploration licenses.

Section 8.1 of this report summarizes results of previous exploration programs conducted in the

Bay St. Georges Subbasin region. During the site visit of August 14, 2008, Mr. Halabura visited

the A.K. Snelgrove core facility at Pasadena, NL and visually inspected selected cores. He

visually identified sylvite and carnallite in PR-1, PF-2 and Captain Cook #1. None of these drill

holes are located on the Universal Uranium Ltd. mineral exploration licenses.

11.0 EXPLORATION

The subject mineral exploration Licence Area is exploratory in that there has been no

production of potash from the area lands. Universal Uranium Ltd. has not undertaken any

exploration on their own behalf, other than to review public-domain geological reports and maps,

and to view cores at the A.K. Snelgrove Mineral Core Library at Pasadena, Newfoundland,

which was done by author Halabura during a site visit undertaken August 14 and 15, 2008.

Given that the potash occurrences described for the St. Georges Subbasin represent

subsurface mineralization, nowhere in the Licences Area does the potash mineralization outcrop

at surface; therefore the only data available for evaluation are existing drill-hole results

consisting of, geological reports, chemical assays of drill core, and interpreted gravity maps

!(

!(

!(

!(

!(

!(

h

h

hhh

h

h

h

See Detail 'A'

schist

sedimentary

siliciclastic non-marine


plutonic felsic

gneiss

plutonic anorthosite

013568M

013572M

013569M

013581M

013570M

013580M

013584M

Highlands River

DDH-03Robinsons

DDH-01St. Fintans


Robinsons

Ship Cove

St Fintans

Jukes Mine

Robinson's

Murray Seam

Cleary Seam

Howley Seam

Codroy Pond

Furlong Seam

Shear's Seam

Gale's Working

Fischells Brook

Highway Showing

Tom Diamond Seam

Knight's ShowingMacdonald Showing

North Grand Codroy River

Highlands River (S St Fintans)

58°30'W

58°30'W

59°W

59°W

48°15'N

48°15'N

48°N

48°N

360000

360000

380000

380000

400000

400000

53

20

00

0

53

20

00

0

53

40

00

0

53

40

00

0

0 2 4 6 km

F:\1_North_America\Canada\Newfoundland\_Compilation\Universal\UNIV08008.mxd

±!

!

!

!!

!

!

!

!!

!

!

!!

!

!

!!

!

!

!

!!

!

!

!!

!

!!!!!!

!

!

!

!

!

!

!!

!

!

!

!

!

!!

!

!

!!

!!

!

!

!!!

!

!

! !!!

!!

!!

!

!

!

!!!!!

!

!

!

!

!

!!

!!

!!

!

!!

!

! !!

!!

!!

!

!

!

!

!

!!!!!

!!

!

!

!

!

! !!!

!

!

!

!!!

!

!

!

Quebec

Newfoundland

Peake

Otter

Mingan

Grifon

Elmira

Tignish

Shallop

Kegaska

Rocky Bay

Cape Cove

Mutton Bay

Havre-Aubert

Port aux Choix

Grande-EntrÃ©e

Gander

Marystown

St. John's

Corner Brook

0 100 200 km

Map Area

Location Map

Scale 1:10,000,000

±

Legend

h Coal

!( Copper

# Lead

! Drill Cores

E Salt Spring


Dispositions


Detailed Geology


Barachois Group

Codroy Group





h

h h

h

h


013568M

013569M

013570M

Jukes Mine

Cleary Seam

Furlong Seam

Gale's Working

Tom Diamond Seam

Detail 'A'

0 1 km

Scale 1:50,000

±

Drawn by:

Checked by:

Approved by:

Revision:

File No.:

Date:

Geo. Ref.:

Scale:



MINERALOCCURRENCES

Wally Harildstad



BYSG08008.mxd

August 28, 2008

UTM Zone 21N, WGS84

1:100,000

Figure: 7


Surface

Potential

"Potash"

Sylvinite

Carnellite

Sylvite

HaliteAnhydrite

Continental

Regression

Marine

Barachois Group

Highlands Sandstone Fm

Intercalated Salt and Mudstone

Woodville Evaporite Fm

Ship Cove Limestone Fm

Basal Grey Salt

Anquille Group

Basement


PALINSPASTIC RECONSTRUCTION OF

Approved by:

Revision:

Checked by:

Drawn by:

Scale:

Geo. Ref.:

Date:

File No.:Figure: 8

Elli Paraszczynec



BYSG08012.dwg

August 29, 2008

Not to scale

NA


CARBONIFEROUS SEDIMENTS

BAY ST. GEORGE AREA

Salt & Mudstone

Legend

Unconformity

Unconformity ?

F:\1_North_America\Canada\Newfoundland\Bay_St_Georges\_Compilation\BYSG08012.dwg

Codroy Group

Presentation Copy





which were recovered from the public records. It is important to note that none of the drill

holes documenting potash mineralization in the Bay St Georges Subbasin were collared on

the subject mineral exploration Licences Area; therefore no mineral resource is present

within the subject lands at the time of writing the report.

12.0 DRILLING

There is no potash exploration or verification drilling within the Universal Uranium Ltd.

mineral exploration Licences Area therefore no mineral resource is present within the

subject lands at the time of writing this report.

13.0 SAMPLING METHOD AND APPROACH

This section is not applicable as no samples of potash have been collected from the

property.

14.0 SAMPLE PREPARATION, ANALYSIS, AND SECURITY

This section is not applicable.

15.0 DATA VERIFICATION

This section is not applicable as no samples of potash have been collected from the property.

Furthermore the authors have not examined or verified any of the descriptions or spot assays

described in the preceding sections.

16.0 ADJACENT PROPERTIES

16.1 Other Potash Properties within the Maritime Basin

The Moncton Subbasin in New Brunswick hosts evaporite mineralization that has been

the subject of exploration since the late 1800’s. Production from the Penobsquis mine belonging

to Potash Corporation of Saskatchewan Inc. (PCS), near Sussex, New Brunswick began in 1983.

The potash seam here is reported to be steeply-dipping and hosted in the Windsor Formation.

The mine operates as a conventional cut and fill underground operation at depths between 300

and 700 metres below surface. From inception until 2008, this mine is reported to have produced

over 46 million tonnes of muriate of potash.

In 2001, another zone of potash mineralization in the vicinity of the Penobsquis mine

(Piccadilly zone) was identified during a natural gas drilling program. Since then PCS has

carried out two potash exploration programs to delineate the zone. The results were sufficiently

encouraging that mine design and feasibility studies were carried out by 2007 (Moore et al,

2008).

Presentation Copy





16.2 Potash Occurrences in the Bay St. Georges Subbasin

Based on information presented by the Geological Survey of Newfoundland and

Labrador (Mineral Occurrences Data System, MODS), there are five “salt” (interpreted by the

authors to mean halite and associated evaporite minerals) occurrences listed, of which four are

known to contain associated potash, i.e. sylvinite. The sixth occurrence (Flat Bay #2) is not yet

present in the MODS database.(Andrew Kerr, 2008 pers comm.). None of the historic “salt” or

potash occurrences are located on the Universal Uranium mineral exploration licences.

A detailed summary of these occurrences is presented under Section 7.1 “Summary of

Known Salt and Potash Occurrences in the Bay St Georges Subbasin”. The most extensively

explored occurrence area is Fischells Brook (Figure 5).

17.0 MINERAL PROCESSING METALLURGICAL TESTING


18.0 MINERAL RESOURCE AND MINERAL RESERVE ESTIMATES

This section is not applicable as there are no known mineral resources or mineral reserves

on the Universal Uranium Ltd. permit area at the time of writing this report.

19.0 OTHER RELEVANT DATA AND INFORMATION


20.0 CONCLUSIONS AND RECOMMENDATIONS

The Bay St Georges Subbasin is a subbasin within the Maritime Sedimentary Basin

which extends over substantial portions of the Maritime Provinces of Nova Scotia, New

Brunswick and Newfoundland (Figure 2). In New Brunswick and Nova Scotia significant

deposits of potash mineralization are known and in the case of New Brunswick, actively mined

at Sussex New Brunswick. The Bay St Georges Subbasin has been the subject of several

intervals of exploration and is a metallogenically interesting domain considered to be prospective

for base metals, coal and uranium as well as economic concentrations of evaporite minerals

including halite, gypsum and potash.

The area was drilled for “salt” (halite) in the early 1970’s. Gravity geophysical surveys

were undertaken and selected anomalies were tested. At St Fintans, near the western end of the

Universal Uranium mineral leases, halite, sylvite and carnallite were encountered. The “salt” was

not considered to be of high quality as the insoluble residue content was considered to be too

high to be of economic value.

It is the conclusion of the authors that:

Presentation Copy





1. Sylvinite and carnallite mineralization has been reported from drill holes in the general St.

Georges Subbasin of western Newfoundland and it is therefore it is reasonable to expect the

discovery of additional sylvinite and carnallite mineralization, given the right geological

(sedimentological and structural) conditions, within the St. Georges Subbasin;

Historical drilling has identified sylvinite and carnallite beds, generally some 30 meters

thick with grades less than 10% K2O, however the potash-bearing zones at Fischells

Brook contain from 3.7% to 15.3% K2O. The highest-grade intersection was 4.1m

averaging 13.2% K2O, reported to be mostly sylvite; the thickest intersection of interest

was 7.8m at 7.95% K2O. The reader is cautioned that we are not able to verify these

numbers, nor are we able to comment upon the size, vertical and lateral continuity

or aerial extent of the beds in question.

Furthermore, we are not able to verify anything concerning the sampling and/or

assay methods, and the reader is reminded that such information is not to the

standards set forth in National Instrument 43-101."

2. In the opinion of the authors, the highest prospectivity for potash mineralization in the

subject area is coincident with the lower Codroy Group sediments (Figure 5). Furthermore, it

is the opinion of the authors that the potash mineralization may be associated with the

thickest intersections of evaporite, which also coincide with geophysical gravity “lows”. If

the subject exploration licenses are shown to be the location of lower Codroy Formation

evaporitic sequences it may be reasonable to expect that exploration of the ground where

these sequences are present could result in the discovery of evaporite minerals that may

include sylvinite and carnallite; and

3. While there has been no drilling on the Universal property for potash, it is the opinion of the

authors that further work is justified in testing for the presence of sylvinite and/or carnallite

mineralization within the licenced ground, specifically within the regions marked by the

highlighted area on Figure 9, as investigations to date suggest that these lands lie within the

extent of the prospective lower Codroy Group rocks and may be coincident with a gravity

lows.

Given the above conclusions, the authors recommend the following further steps in

determining whether or not a potash mineral resource is present on the Universal Uranium Ltd.

Exploration Licenses:

1. Previous studies carried out by Worth (1981) and Knight (1983) suggest that the area

between St Fintans and Highlands, including the subject area, have been intensely,

structurally deformed. Because these faults were inferred from interpretations of

photographs, it is recommended that first, a comprehensive interpretation of the structural

geology be undertaken, including ground checks, to confirm the nature of faulting and

better define the structural geology of the licence lands;

2. If the above field mapping program suggests that preserved evaporite may be present in

structurally favorable portions of the licences, then it is recommended as a second step

Interpreted boundary ofpotash - prove evaporite

Codroy Group

013568M

013572M

013569M

013581M

013570M

013580M

013584M

Highlands River

DDH-03Robinsons

DDH-01St. Fintans


58°30'W

58°30'W

59°W

59°W

48°15'N

48°15'N

48°N

48°N

360000

360000

380000

380000

400000

400000

53

20

00

0

53

20

00

0

53

40

00

0

53

40

00

0

0 2 4 6 km


±

Legend

! Drill Cores

E Salt Occurrence


Codroy Group on Property Outline

Dispositions


Codroy Group on Property

Detailed Geology


Barachois Group

Codroy Group





!

!

! !!!

!

!

!

!!!

!

!

!

Quebec

Newfoundland

Nova Scotia

Gander

Marystown

Stratford

St. John's

Corner Brook

0 100 200 km

Map Area


±

Drawn by:

Checked by:

Approved by:

Revision:

File No.:

Date:

Geo. Ref.:

Scale:



GEOLOGY MAP

Wally Harildstad



BYSG08009.mxd

August 29, 2008

UTM Zone 21N, WGS84

1:150,000

Figure: 9


Presentation Copy





that a ground gravity geophysical survey be undertaken over the anomalies identified in

previous episodes of reconnaissance exploration so as to delineate prospective drilling

targets for the drilling of one or several potash exploration drill holes;

3. Although the present mineral resource assessment focused on the potential for potash

mineralization, consideration of the potential for other economic mineral concentrations

should not be overlooked during the exploration work recommended above. The inferred

presence of thrust faulting identified by Dimmell (1981) especially the movement of

strata over the basal Ship Cove and Cormorant Limestones draws attention to the base

metal potential of the area near the Codroy-Anguille contact. This area should be

explored for base metal deposits in the carbonates, where breccias would be expected.

Furthermore, there are reports of coal beds (Figure 9) encountered in the vicinity of the

licences, so attention should be paid to identifying the potential presence of a coal

resource.

Presentation Copy





22.0 DATE AND SIGNATURE

Dated, signed, and sealed by the undersigned this _____ day of September 2008.

Respectfully submitted,

(signed) Sandra Jean Foster, P. Geo. PROFESSIONAL SEAL

_____________________________________

Sandra Jean Foster MSc., P.Geo.

PEG Newfoundland and Labrador Member Number 05048.

(signed) Stephen P. Halabura, P.Geo. PROFESSIONAL SEAL

_____________________________________

Stephen P. Halabura, P.Geo. PEG Newfoundland and Labrador Member Number 05063

CERTIFICATE OF AUTHORIZATION

AUTHORIZATION # 3184

Presentation Copy





21.0 REFERENCES

Anderle, J. P. and Rogers, D. P. 1981: Report on geological evaluation, geophysics and drilling

on claim blocks 1361-1362, 1563, 1565, 1568 and 2121-2123 in the Fischells Brook area,

Newfoundland. Atlantic Analytical Services Limited and Pronto Explorations Limited

Unpublished report [GSB# 012B/0245]

Anderle, J.P. 1980 Potash Exploration in Atlantic Canada. Nova Scotia Department of Mines and

Energy, Open File Report 86-027, 1980, 10 pages.

Anderle, J. P. 1981: Report on data covering drill hole BD-1 for licences 1621-1622 and Reid lot

19 in the Barachois Brook area, Newfoundland. Pronto Explorations Limited Unpublished report

[GSB# 012B/08/0248]

Anderle, J.P 1981: Report on data covering drill hole ST-1 for licence 1650 in the St Theresa

area, Newfoundland. Pronto Explorations Limited Unpublished report [GSB# 012B/07/0251]

Anderle, J.P. 1982: Drilling report for licences 2257-2259 in the St Georges area, Newfoundland.

Pronto Explorations Limited, Noranda Exploration Company Limited, and John P Anderle

Limited Unpublished report, 25 pages. [GSB# 012B/0264]

Anderle, J. P. 1985: Assessment report on compilation of previous drilling and geology for 1986

submission on Reid lot 15 in the Fischells Brook area, Newfoundland. Pronto Explorations

Limited Unpublished report, 72 pages. [GSB# 012B/0285]

Baird, D.M. 1949: Salt possibilities of southwestern Newfoundland. Unpublished report [GSB#

NFLD/0417]

Bell, W.A. 1948 Early Carboniferous Strata of St Georges Bay Area, Newfoundland; GSC

Bulletin No. 10.

Burke, K.B.S. and Worth, J.K. 1981: First year assessment report including geophysical and

geochemical work performed for project 341 for licences 1668-1671, 1722-1723 and 1813 in the

St Georges-Codroy area, Newfoundland. Fundy Geoservices Limited and Noranda Exploration

Company Limited Unpublished report [GSB# 012B/02/0253]

Butler, A.J. and Davenport, P.H. 1980: Lake sediment geochemical survey of southwestern

Newfoundland, NTS 11P, Burgeo area. Mineral Development Division, Department of Mines

and Energy, Government of Newfoundland and Labrador Department of Energy, Mines and

Resources, Department of Regional Economic Expansion, Government of Canada Open File

011P/0062, 31 pages.


Newfoundland, NTS 11O, Port aux Basques area. Mineral Development Division, Department of

Mines and Energy, Government of Newfoundland and Labrador Department of Energy, Mines

Presentation Copy





and Resources, Department of Regional Economic Expansion, Government of Canada Open File

011O/0088, 31 pages.


Newfoundland, NTS 12H, Sandy Lake area. Mineral Development Division, Department of



012H/0570, 31 pages.


Newfoundland, NTS 12G, Bay of Islands area. Mineral Development Division, Department of



012G/0074, 31 pages.


Newfoundland, NTS 12B, Stephenville area. Mineral Development Division, Department of



012B/0237, 31 pages.


Newfoundland, NTS 12A, Red Indian Lake area. Mineral Development Division, Department of



012A/0249, 31 pages.


Newfoundland, 1979, open files 12A[249], 12B[237], 12G[74], 12H[570], 11O[88] and 11P[62].

Mineral Development Division, Department of Mines and Energy, Government of

Newfoundland and Labrador Department of Energy, Mines and Resources, Department of

Regional Economic Expansion, Government of Canada Open File NFLD/1150, 31 pages.

Dimmell Peter, M. (1981) First Year Assessment Report, Geophysics and Geological on Project

341-St Georges Codroy for Noranda Exploration Company, Limited

Dimmell, Peter, M. 2001: Potential for salt mining in western Newfoundland. Report prepared

for the Department of Mines and Energy. (File NFLD/2886)

Fleming, J.M. 1974: Salt exploration in Newfoundland. Mineral Development Division,

Department of Mines and Energy, Province of Newfoundland Unpublished report, 37 pages.

[GSB# 012B/0177]

Fong, C.C.K. 1977: Flat Bay-Main Gut. Unpublished Map 77-4 Open File 012B/0210

Fong, C.C.K. and Knight, I, 1975 St Fintans – Dashwoods Pond Geology Map, 1:150,000

Presentation Copy





Hooker Chemical Nanaimo Limited 1968: Summary report of Potash mineralization at location

Well 1 in the St Georges-Flat Bay area, Newfoundland. Hooker Chemical [Nanaimo] Limited

and Hooker Chemical Corporation Unpublished report [GSB# 012B/07/0100]

Hooker Nanaimo Limited 1971: Report on gravity survey in the Stephenville and Codroy areas

and on the Fischells Brook salt deposit, Newfoundland. Hooker Chemical Corporation and

Hooker Chemical Company Unpublished report [GSB# 012B/0147]

Hayes, A.O. and Johnson, H. 1938: Geology of the Bay St George Carboniferous Area;

Newfoundland Survey Bulletin no. 12

Knight, I. 1983: Geology of the Carboniferous Bay St. George Subbasin, western Newfoundland.

Department of Mines and Energy, Mineral Development Division, Memoir 1, 358 pages

Knight, I and Fong, C.C.K. 1977: St Fintans-Dashwood Pond, St Georges District. Unpublished

Map 77-3 Open File 012B/0209

Knight, I. and Gibbons, R.V. 1983: Geology of the Carboniferous Bay St George Subbasin,

western Newfoundland. Mineral Development Division, Department of Mines and Energy,

Government of Newfoundland and Labrador Department of Mines and Energy, Mineral

Development Division, Memoir 01, 382 pages. [GSB# NFLD/1314]

Laracy, P. 2002: Flat Bay salt property: Fourth year work report of drilling results for licence

6107M, Flat Bay, St. Georges area, western Newfoundland. Unpublished assessment report

submitted to Newfoundland and Labrador Department of Natural Resources. (File 12B/07/0472).

Lozej, G.P. 1977: Stratigraphy and mineralization in the Paleozoic carbonates of western

Newfoundland. British Newfoundland Exploration Limited Unpublished report [GSB#

NFLD/0954]

Moore, Garth, 2008: PCS Potash, New Brunswick Division, National Instrument 43-101

Technical Report on Penobsquis & Piccadilly Potash, King’s County, New Brunswick, Canada

Newfoundland Department Industrial Development 1979: A study of the economic potential of

the Stephenville area, Port au Port-Bay St George area. Unpublished report [GSB# 012B/0231]

Geological Survey of Newfoundland and Labrador, Mineral Occurrences Data System (MODS)

Files http://gis.geosurv.gov.nl.ca/mods/mods.asp

Peacon, D.R. 1973: Report on St Fintans salt deposit, Newfoundland. University of Michigan.

Hooker Chemical [Nanaimo] Limited Unpublished report [GSB# 012B/02/0178]

Presentation Copy





Roberts, W., and P.F. Williams, 1993: Evidence for early Mesozoic extensional faulting in

Carboniferous rocks, southern New Brunswick, Canada: Canadian Journal of Earth Science, v.

30, p.1324-1331

Smith, B.L. 1953: Brine seeps south of St Fintans, Newfoundland. Rutgers University and Mines

Branch, Department of Mines and Resources, Province of Newfoundland Unpublished report, 22

pages. [GSB# 012B/02/0059]

Steele, J. P. 1982: Assessment report for 1982 on a geophysical survey for the Codroy project

near Robinsons, Newfoundland. Pronto Explorations Limited, Chevron Standard Limited, Ager,

Berretta and Associates, and Chevron Canada Limited Unpublished report, 26 pages. [GSB#

012B/02/0258]

Verrall, P. 1954: Gravity survey of Bay St Georges area, SW Newfoundland. Unpublished report

[GSB# 012B/0063]

Worth, J.K. 1981: Stratigraphic Study of the Lower Carboniferous Codroy Group, Highland and

St Fintans area southwest Newfoundland, in Dimmell Peter, M. (1981) First Year Assessment

Report, Geophysics and Geological Report on Project 341-St Georges - Codroy for Noranda

Exploration Company, Limited

1982: Potash in Newfoundland. (Paper presented at the spring meeting, April 1-3, Geological

Association of Canada, Newfoundland Section, St. John's, Newfoundland). [GSB# N/A]

Presentation Copy





22.0 STATEMENT OF CERTIFICATION BY CO-AUTHOR

I, Stephen P. Halabura P.Geo. do hereby certify that:

1. I am a consulting geologist and principal of North Rim Exploration, Ltd., with an office

located in Suite 210 – 3502 Taylor Street East, Saskatoon, Saskatchewan, Canada

S7H 5H9, and co-author of the report “Preliminary Assessment Study of the Potash

Resource Prospectivity of the Universal Uranium Exploration Licences, Bay St.

Georges Subbasin, Western Newfoundland

2. I am a member in good standing of the Association of Professional Engineers and

Geoscientists of Saskatchewan registered as “Professional Geoscientist” (Number

9981). North Rim Exploration, Ltd., is the holder in good standing of Certificate of

Authorization C905 issued by the Association of Professional Engineers and

Geoscientists of Saskatchewan, and Professional Engineers and Geoscientists of

Newfoundland and Labrador (Member Number 05063).

3. I am also a member in good standing of the Association of Professional Engineers and

Geoscientists of Manitoba registered as “Professional Geoscientist” (Number 23414G),

the Association of Professional Engineers and Geoscientists of New Brunswick

registered as “Professional Geoscientist” (Number L3702), the Association of

Professional Geoscientists of Ontario registered as “Professional Geoscientist”

(Number 1242G), and the Association of Professional Engineers, Geologists and

Geophysicists of Alberta (Number M85169).

4. I have practiced my profession since 1980.

5. I am a consulting geologist and have been practicing in this capacity since July 1984.

6. I am a graduate of the Faculty of Arts and Science at the University of Saskatchewan

and earned a Bachelor of Science (Honours) Degree in Geology in 1980 and a Master

of Science degree in geology in 1983.

7. I am a member of the Canadian Society of Petroleum Geologists and the American

Association of Petroleum Geologists and the Solution Mining Research Institute.

8. As a consulting geologist, I have been involved with potash exploration and

development geology in Saskatchewan since 1989. My tasks as undertaken in the

above studies may best be described as the investigation of geological issues pertaining

to bedded potash and/or halite deposits, specifically the regional and local geological

setting, detailed examination of the local stratigraphy as determined from drill holes

and other geophysical tools such as surface are ”2D” and “3D” seismic surveys, the in-

depth examination and interpretation of surface drill holes so as to form an opinion as

to mining potential of selected ground, geological supervision of exploratory and

Presentation Copy





service drill holes, subsurface disposal of brines and insoluble mining waste, and

review of potash ore grades.

9. As a result of my experience and qualifications, I am a Qualified Person as defined in

National Instrument 43-101.

10. I am “Independent” of the Issuer as per any and all tests and definitions set forth in

National Instrument NI43-101

11. I visited the Exploration Licence Permit area and also inspected the selected drill cores

during a site visit to the property undertaken during the period August 14 and 15, 2008

12. Opinions and geological interpretations expressed herein are based on the information

provided and the general experience and expertise possessed by the consultant. These

opinions are offered up as further information for the consideration of the general

public and are subject to change as new data is acquired and digested.

13. As of the date of this certificate, to the best of my knowledge, information and belief,

the technical report contains all scientific and technical information that is required to

be disclosed to make the technical report not misleading.

14. I have read National Instrument 43-101 and Form 43-101 F1, and the written disclosure

being filed and believe that it fairly and accurately represents the information in the

technical report that supports the disclosure.

15. I consent to the filing of the Technical Report with any stock exchange and other

regulatory authority and any publication by them for regulatory purposes, including

electronic publication in the public company files on their websites accessible by the

public, of the Report.

Dated this 15th day of September, 2008.

(signed) Stephen P. Halabura, P.Geo....................................................... PROFESSIONAL SEAL

Presentation Copy





23.0 STATEMENT OF CERTIFICATION BY PRINCIPAL AUTHOR

I, Sandra Jean Foster P.Geo. do hereby certify that:

1. I am a consulting geologist providing consulting services to North Rim Exploration,

Ltd., with an office located in Suite 210 – 3502 Taylor Street East, Saskatoon,

Saskatchewan, Canada S7H 5H9, and co-author of the report “Preliminary

Assessment Study of the Potash Resource Prospectivity of the Universal Uranium

Exploration Licences, Bay St. Georges Subbasin, Western Newfoundland

2. I am a member in good standing of the Association of Professional Engineers and

Geoscientists of Saskatchewan registered as “Professional Geoscientist” (Number

10598). North Rim Exploration, Ltd., is the holder in good standing of Certificate of

Authorization C905 issued by the Association of Professional Engineers and

Geoscientists of Saskatchewan.

3. I am also a member in good standing of the Northwest Territories and Nunavut

Association of Professional Engineers and Geoscientists registered as “Licencee”

(License Number LI611), and a registered member of the Professional Engineers and

Geoscientists of Newfoundland and Labrador (Member Number 05048).

4. I have practiced my profession since 1980.

5. I am a geological consultant and have been practicing in this capacity since June 2008.

6. I am a graduate of the Faculty of Arts and Science at the University of Saskatchewan

and earned a Bachelor of Science (Advanced) Degree in Geology in 1980 and a

Master of Science degree in geology in 1989.

7. I am a Fellow of the Society of Economic Geologists.

8. Opinions and geological interpretations expressed herein are based on the information

provided and the general experience and expertise possessed by the consultant. These

opinions are offered up as further information for the consideration of the general

public and are subject to change as new data is acquired and digested.

9. As of the date of this certificate, to the best of my knowledge, information and belief,

the technical report contains all scientific and technical information that is required to

be disclosed to make the technical report not misleading.

10. I have read National Instrument 43-101 and Form 43-101 F1, and the written disclosure

being filed and believe that it fairly and accurately represents the information in the

technical report that supports the disclosure.

Presentation Copy





11. I consent to the filing of the Technical Report with any stock exchange and other

regulatory authority and any publication by them for regulatory purposes, including

electronic publication in the public company files on their websites accessible by the

public, of the Report.

Dated this 15th

Day of September, 2008.

(signed) Sandra Jean Foster, P.Geo......................................................... PROFESSIONAL SEAL

APPENDIX 1

COPY OF ASSIGNMENT OF MINERAL LICENCES

TRANSFER FORM AND

ACQUISITION AGREEMENT

cindysaunders

Text Box

not submitted

APPENDIX 2

SUMMARY OF POTASH CORES AT A.K. SNELGROVE MINERAL CORE LIBRARY

PASADENA, NL

Presentation Copy





cindysaunders

Sticky Note

For Appendix 2, only this photo was submitted

APPENDIX 3

LETTER TO THE HONOURABLE KATHY DUNDERDALE

MINISTER OF NATURAL RESOURCES, GOVERNMENT OF NEWFOUNDLAND AND

LABRADOR

RECOGNIZING OUTSTANDING SERVICE OF GEOLOGICAL SURVEY OF

NEWFOUNDLAND AND LABRADOR

The Honourable Kathy Dunderdale

Ministry of Natural Resources

Box 8700, St John's, NL

A1B 4J6

In regards to: the services of Geological Survey of Newfoundland and Labrador

Dear Minister,

Subject: Quality Information and Outstanding Service

I wish to communicate the high degree of satisfaction that we experience whenever dealing with

the Newfoundland and Labrador Geological Survey. I have dealt with several individuals in the”

Survey”, most often in the Mineral Deposits Section. I have the privilege of dealing with similar

organizations across Canada and internationally. The information platform provided by the

Geological Survey portion of the Natural Resources web site is the most complete and accessible

I have encountered. The staff of the Geological Survey have the depth of experience and

dedication to provide a high level of service. We have recently enjoyed excellent service from

Dr. Andrew Kerr, Senior Geologist, Mineral Deposits Section and Dr. Ian Knight, Project

Geologist, Regional Geology Section.

The services and resources provided by the Geological Survey are critical to the development of

the mineral resources industry in Newfoundland and Labrador. The levels of funding for

mapping and information delivery to the mineral industry must be kept up in order to continue

and expand the level of service that has been established. I commend you and your government

on your commitment to date and encourage the continued support of this highly motivated and

successful team to the fullest extent possible.

Respectfully,

Sandra Foster

Consulting Geologist

North Rim Exploration

SJF

cc: Andrew Kerr Ian Knight

Bill Galine

Documents

Graphic1 - Newfoundland and Labradorgis.geosurv.gov.nl.ca/geofilePDFS/ReceivedBatch53/012B_0562.pdf · 7.0 stratigraphy of the st georges subbasin area ... figure 3 maritime carboniferous