45
Kennecott Canada Exploration Inc. 2002 REPORT OF AIRBORNE GEOPHYSICS, GROUND TRUTHING and SAMPLING on the EVA KITTO PROPERTY NTS: 052H-09 Thunder Bay Mining Division, Ontario - Prepared by: - ^,,..--; Kennecott Canada Exploration *hc. 354 - 200 Granville StreetX " Vancouver, British Columbia, Canada\V6C 1S4 Phone: (604)669-1880 Fax: (604) 669-5255 - Author - Steven Coombes, P.Geo. - Date of report - December 9, 2002 52H09SE2005 2.24671 EVA 010

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Kennecott Canada Exploration Inc.

2002 REPORT OF AIRBORNE GEOPHYSICS, GROUND TRUTHING and SAMPLINGon the

EVA KITTO PROPERTY

NTS: 052H-09

Thunder Bay Mining Division, Ontario

- Prepared by: - ^,,..--; Kennecott Canada Exploration *hc.

354 - 200 Granville StreetX " Vancouver, British Columbia, Canada\V6C 1S4

Phone: (604)669-1880 Fax: (604) 669-5255

- Author - Steven Coombes, P.Geo.

- Date of report - December 9, 2002

52H09SE2005 2.24671 EVA 010

- CONTENTS -Page No.

INTRODUCTION .............................................................................................................1Project Description ...................................................................................................... 1Geology ............................................................................................................. 1Location and Access.................................................................................................... 1Claim Information ........................................................................................................ 2

EXPLORATION PROGRAM................................................................................................2

Airborne Geophysical Survey....................................................................................... 2

Ground Truthing and Sampling.................................................................................... 2

EXPLORATION RESULTS.................................................................................................. 3

RECOMMMENDATIONS..................................................................................................... 3

REFERENCES .............................................................................................................3

STATEMENT OF QUALIFICATIONS................................................................................... 4

- LIST OF FIGURES - Figure No. Page No.

1 Location Map....................................................................................... after page 12 Sample Locations................................................................................ after page 23 Interpreted Geology and 2002 Ground Truthing Results.......................... in pocket4 TMI Magnetics.......................................................................................... in pocket5 B-Field, Gate 10, X-Component............................................................... in pocket6 B-Field, Gate 10, Z-Component................................................................ in pocket7 B-Field, Gate 16, X-Component............................................................... in pocket8 B-Field, Gate 16, Z-Component................................................................ in pocket

- LIST OF APPENDICES -

A Project Personnel

B Sample Information, Results and Analytical MethodsC Airborne Geophysical Survey Areas and SpecificationsD Airborne Geophysical Survey Technical Specifications

E Cost Statement and Distribution of Costs to Claims

INTRODUCTION

Project Description

The Eva Kitto property was the subject of an airborne MegaTEM and magnetics survey on March 29, 2002. The work was performed by Fugro Airborne Surveys Corp. and supervised by Theo Aravanis, Project Geophysicist, and Steven Coombes, Project Geologist, both employees of Kennecott Canada Exploration Inc.

In September and October 2002, areas chosen from the airborne survey and geology maps were visited for sampling and further evaluation. Evaluation included prospecting for outcrop in areas of magnetic and EM features delineated by the airborne survey and confirmation of anomalous results and mapping of other workers. Work was supervised by Dean Rossell of Kennecott Minerals Inc.

Two new claims were staked on the strength of the airborne survey and ground truthing.

Prior to Kennecott Canada Exploration Inc.'s joint venture with East-West Minerals, anomalous lake sediments containing chromium, nickel and copper were discovered. Geophysics, including EM and magnetics, outlined conductive and magnetic bodies within the structurally favourable area. Mapping in 2001 by the OGS revealed a showing with weak copper, nickel and platinum group element mineralization in a creek on the property.

A option agreement for the Eva Kitto property, held equally by East West Resources of Vancouver, B.C., and Maple Minerals of Toronto, Ontario, was signed by Kennecott Canada Exploration l ne on March 27, 2002.

Geology

The Eva-Kitto property, situated within the Nipigon plate, encompasses a 10 km diameter ultramafic cone intrusive body cutting Quetico metasedimentary/iron formation rock and overlain and intruded by diabase sills. The failed arm of the Keweenawan (-1.1 Ga) North American Midcontinent Rift system, a plume induced growth rift, is interpreted to pass through the Nipigon plate.

Hart et al. (2001) describe the ring-shaped perodotite intrusion as roughly concentrically zoned with an outer margin of wehrlite and a larger inner zone of lherzolite. Dominant mineralogy of the core includes massive, medium-grained cumulus olivine, orthopyroxene and clinopyroxene with areas of up to 507o coarse-grained subhedral orthopyroxene and plagioclase appearing more frequently towards the contact with the wehrlite. The outer wehrlite infrequently contains very coarse-grained poikilitic orthopyroxene phenocrysts. Contacts are not definitive and the body may not be a cone sheet dyke.

Similarities in age, structure (i.e. faulting) and geochemistry between the Eva Kitto rocks and those of the famed Noril'sk region of Siberia are documented in literature; the property is an exploration target for Noril'sk type magmatic Cu-Ni-PGE deposits.

Location and Access

The Eva Kitto Claim Group is on the south-east shore of Lake Nipigon on NTS sheet 052H09, approximately 14 km west of the town of Beardmore, shown in Figure 1.

5434000 mH

Scale: 1:40.0001

!fc kilometres

KENNECOTT CANADA EXPLORATION INC.

Vancouver

Thunder Bay Mining Division

Eva Kitto Claims

Ontario, Canada

Dale: 05/12/02 | Author: SG

File: EvaKittoClaims.Dec2002.wor

Ref: van.00722.MFigure: 1

Access during the airborne geophysical survey was by DeHavilland Dash 7 aircraft from Thunder Bay.

Sample sites and ground check locations were accessed by via logging road or walking through the bush after driving from Nipigon or Beardmore. Samples were collected by boat where practical.

Claim Information

The Eva Kitto claim group is comprised of 18 claims covering 3248 hectares. Claim numbers and particulars are detailed in the following table.

Table 1: Claim Information, Eva Kitto Property

Claim Number124030212403031240304124030512403061245414124541512454171245915124591612459171247044124049212404931233078124953730060733006074

Record Date5/24/20005/24/20006/14/20006/14/20006/14/20007/20/20007/20/20007/20/20001/22/20011/22/20011/22/20015/14/20013/13/20003/13/20002/17/20003/1/200211/04/0211/04/02

Expiry Date

5/24/20035/24/20036/14/20036/14/20036/14/20037/20/20037/20/20037/20/20031/22/20031/22/20031/22/20035/14/20033/13/20033/13/20032/17/20033/1/2004

11/04/200411/04/2004

Units16101211416135121612121212161662

Required Assessment6400.004000.004800.004400.001600.006400.005200.002000.004800.006400.004800.004800.004800.004800.006400.006400.002400.00800.00

EXPLORATION PROGRAM

Airborne Geophysical Survey

The survey specifications and equipment descriptions are included as appendices C and D. The survey was conducted on March 29, 2002 at a total cost of CDNS111,665.00. A portion of this total cost has been applied to new claims staked.

Ground Truthing and Sampling

A total of 47 samples were collected - 46 rock samples and 1 weathered rock sample. Rock samples included of peridotite, pyroxenite, gabbro and diabase. Sample locations are shown in the following figure; descriptions and results are included as appendix B.

5494000 mN

Nipigon

.54SSWO/71N l-jScale: 1:40,000

0 1

kilometres

KENNECOTT CANADA EXPLORATION INC.

Vancouver

Thunder Bay Mining Division

Eva Kitto Sample Locations

Ontario. Canada

Date: 09/12/02 lAulhor: SGFile: EvaKttoClaims.Dec2002.wor

Ref: van.00722.MFigure: 2

Samples were collected to duplicate previously identified highly anomalous areas and to verify mapping done in past years while investigating surficial expressions of airborne anomalies. Traverses were made by truck as far as possible, then continued on foot or boat where warranted. Where outcrop was seen, rock samples were collected using a hammer and chisel, identified and given sample numbers. The rocks were then placed in drawstring cloth bags with a sample tag and sealed. Rock types and contacts were noted where seen to verify mapping and the relative age of the peridotite. A summary of ground truthing data is shown in Table 2; Figure 3 illustrates the traverses and the prospecting results.

The samples were brought to the exploration office in Thunder Bay and reviewed. On the basis of visual identification of sulphides, seven samples were analysed for gold, platinum, palladium, copper, zinc, nickel, cobalt, chromium, titanium and sulphur. Specific gravity was also measured. Rocks not selected for analysis at this time are stored at Kennecott's Tucson office.

Samples were processed by ALS Chemex Laboratories of Thunder Bay, ON. Each rock was crushed and pulverized; 1000 g was used in the analysis. Elements Au, Pt and Pd were determined using ICP-AES after fire assay and elements Cu, Zn, Ni, Co, Cr, Ti and S were determined using ICP-AES after sodium peroxide fusion. Descriptions of the methods used are included in Appendix B.

EXPLORATION RESULTS

Main points from the data interpretation of the airborne survey are as follows:

* There is an intense magnetic low at the southern peridotite, coincident with an E/W fault.

* The mapped peridotite appears to terminate conductors in the southern half of the area. Conductors in the north appear to terminate within the metavolcanics.

* The diabase is reversely magnetized.

* The area is dominated by E/W trending faults.

Ground truthing and sampling results indicate:

* The peridotite trends further southwest than previously mapped.

* Shape of the intrusion is more likely a sill, dipping to the west.

* The peridotite intrudes the sulphide-rich metasedimentary rocks, yielding a source for sulphur.

* Assays reveal anomalous PGM results.

Table 2: Ground Truthing Traverse Notes

Station1234

5678g101112

1314

1516

1718

192021222324252627282930313233343536373839

4041

424344

Date9/26/029/26/029/26/029/26/02

9/26/029/26/029/26/029/26/029/27/029/27/029/27/029/27/02

9/27/029/27/02

9/27/029/27/02

9/27/029/27/02

9/28/029/28/029/28/029/28/029/28/029/28/029/28/029/28/029/29/029/29/029/29/029/29/029/29/029/29/029/29/029/29/029/29/029/29/029/29/029/29/029/29/02

9/30/029/30/02

10/1/0210/1/0210/1/02

Sample #

vr82952avr82953a

vr82954avr82955avr82956a

vr82959a

vr82966avr82967avr82968a

vr82969avr82970avr82971avr82972a

vr82973avr82974a

vr82975a

vr82976avr82977a

Datumnad 27nad 27nad 27nad 83

nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83

nad 83nad 83

nad 83nad 83

nad 83nad 83

nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83

nad 83nad 83

nad 83nad 83nad 83

zone16161616

1616161616161616

1616

1616

1616

161616161616161616161616161616161616161616

1616

161616

Easting419181419118419081418728

418647418668418415418057418989418999419011419047

418819418799

418773418744

418612418546

421155421125421100420910420864420742420582420641420563420499420310420294420023420070420009420007420161420350420429420444420381

420631420665

418547418389418389

Northing5491960549195154919355491833

54918705491872549185854920035492309549230954923955492431

54924285492437

54925085492540

54927715492863

548927354892735489229548902354890365488959548877754887585488686548864954885555488572548872154886035488438548836554883315488315548835754880175487952

54873445487319

548726754873155487315

Rock Typeperidotiteperidotiteperidotiteperidotite

gabbrogabbrogabbrogabbroperidotiteperidotiteperidotiteperidotite

ol. gabbrogabbro

gabbrogabbro

gabbrogabbro

ol. gabbrogabbrogabbroperidotitegabbroperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotite

peridotiteperidotite

peridotiteperidotiteperidotite

Sulphidenononono

nononononononono

nono

nono

yesno

nonononoyesyesnoyesnonononononononononononono

nono

nonono

NotesDk, greenish gray, m. g, weakly mag., w/ 40-50'?i fresh oldk gray, msv, porphyritic w/ blk cpx up to 1cm, 30"7o whtt fldspr and cpx pegmatioddk gray, weakly porphyritic, w/ abnt granular ol 0.5cm cpx phenocrysts

It. Gray, m.f.g., msv, strongly mag, w/ S-6% mag in plag matrix w/ subophitic cpx. Also minor granophyre dikese.g. , msv, granophyric w/ var. pink fldspr, rare qtz. Intrudes f.g. oxide rich gabbrowht, e.g. fol. Oxide rich w/ uniform oriented plag laths up to 2cm (very BIG like)f.g.-m.g. oxide rich w/ abnt xenoliths of meta-seds up to 15cm longm. g., porphyritic, cpx rich / 0.25m spaced subhor. Joints, minor biot.small exposure e.g. crumbly cpx rich pegmatoiddk gray, mg, porphyritic, msv, mod. Mag. w/ brownish ol and cpx up to 0.5cm. no jointingdk gray, mg., porphyritic, fldspathic w/ scattered pods of peggmatoid and prominent joints

It. Gray, m.g., msv, w/ 40-5007o fldspr, 207oOl , SO-40% cpx and minor mag. Possibly thick n-s dike0.5m thick dike? Of, wht, eg, anorthosite gabbro cutting ol. Gabbro/peridotite. Might not be otc.0.5m thick dike? Of, wht, eg, anorthosite gabbro cutting ol. Gabbro/peridotite. Nearby bldr of gabbro w/ peridotite clastsIt gray, meg, msv, oxide rich w/ no visible olreddish mfg, oxide rich w/ tr. Py-cpy near base of otc of Archean meta-sed. Contact dips v. gently west.gabbro-sed contact similar to1 7dk gry, fg, ol bearing melagabbro /peridotite w/ 5007oplag, 45"7ocpx, 1 -207oOI? Mod. Mag.(unit below nipigon sill)msv, mg gabbro overlying jointed ol. gabbro. Probable near hor. ContactCg, massive ophitic gabbro w/ cpx up to 2cm.dk gray, fg, msv, w/ 20-2507ool in cpx rich matrix, 25-35"7o fldspar, 1 -207obiot.It.gray, eg, ophitic w/ no visible ol or biot. 1-2"7o mag. tr. Cpydk gray, fg, msv, w/ abnt biot, tr. Fg po and cpy (probable subcrop)dk gray, mfg, msv, w/ prominent sub hor. Jointingmg, msv, mod mag, w/ abnt biot. And one v. small bleb po-cpy.dk gray, mfg, msv, ol rich w/ abnt. Biot. Mod mag.dk gry, mg, msv, biot-ol rich, mod mag.mg, msv, ol rich w/ less biot than 28mg, msv, ol rich w/ less biot than 28mg, msv ol rich w/ 1 07obiot ^0 "54 plagmg, ol rich, mod mag, '\Vo biot.mg, ol rich, mod mag, 1 07o biot.mg, ol rich, mod mag, 1"7o biot., 10-20cm spaced near hor joints some filled w/ glassy serp vnsmfg, msv, ol rich w l-2"7obiot, some ol reddish brown in color (alt. ?)dk gray, mfg, ol. Rich w/ 1 07obiot. 10-20cm spaced sub hor jointingdk gray, fg-mfg, msv. Appears more cpx rich than 36. Patches of saprolite like alt.f.g. peridotite bldrs probable subcropsmall probable otcsdk gray, mg, msv, mod mag, w/ cpx xi\, 1 0-2007oplag, prominent sub hor jointing and cpx rich pegmatoidsimilar to station 40dk grnish gray, mod-strongly serp, w/ vcg biot. Probably only a few meters below contact w/ nipigonsillsaprolite like alt. Of peridotite w/ some igneous texture preserved ~2m below nipigon sill contactmg. Mod. Serp. Peridotite w/ eg biot, strongly mag

Station45

46

47

48495051

5253545556575859606162

63

64656667686970

71

72737475

767778

79808182

Date10/1/02

10/1/02

10/1/02

10/1/0210/1/0210/1/0210/1/02

10/2/0210/2/02

10/19/0210/19/0210/19/0210/19/0210/19/0210/19/0210/22/0210/22/0210/22/02

10/22/02

10/22/0210/23/0210/23/0210/23/0210/23/0210/23/0210/23/02

10/23/02

10/23/0210/23/0210/25/0210/25/02

10/25/0210/25/0210/25/02

10/25/0210/25/0210/25/0210/25/02

Sample #vr82978a

vr82979a

vr82980a

vr82981avr82982avr82983avr82984a

vr82985avr82986a

vr82988a

vr82989avr82994avr82995avr82996a

vr82990

vr82991a

sample

sample

vr32312a

vr32313a

Datumnad 83

nad 83

nad 83

nad 83nad 83nad 83nad 83

nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83nad 83

nad 83

nad 83nad 83nad 83nad 83nad 83nad 83nad 83

nad 83

nad 83nad 83nad 83nad 83

nad 83nad 83nad 83

nad 83nad 83nad 83nad 83

zone16

16

16

16161616

1616161616161616161616

16

16161616161616

16

16161616

161616

16161616

Easting418389

418372

418311

418300418290418276418186

416829416598420143419764419707419574419419419481416414416297416101

416338

416325416300416420416443416341416271416232

416238

416240416179418758417571

417341417346417289

418368418630418806418983

Northing5487315

5487339

5487396

5487396548740054873945487434

54933685493235548803754881555488235548835754884155488643549241054923005492172

5492662

5492556549238654923625492344549239654925645492599

5492642

5492742549270654874515487184

548726154873195487404

5487336548731254875865487748

Rock Typegabbro

peridotite

peridotite

peridotiteperidotiteperidotitegabbro

gabbroperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotiteperidotite

peridotite

peridotiteperidotiteperidotitemetasedimentgabbroperidotitegabbro

gabbro

gabbroperidotiteperidotiteperidotite

peridotiteperidotiteperidotite

peridotiteperidotiteperidotiteperidotite

Sulphideno

yes

yes

yesyesyesno

nononoyesnonononoyesnono

no

nonononononono

no

nononono

nonono

yesyesnono

Notesblk, aphanitic chilled contact of nipigon sill, weakly mag.dk grnish gray, mg, strongly serp, w/ tr vfg sulfide. Well developed spheroidal weathering in areas of sap like alt.5mx5mx0.5m thick otc of serp. Peridotite w/ 1 -3"7opo and tr cpy a few meters below nipigon sill contact0.5x0.25x0.25m angular bldr of dk grnish gray, mod serp, biot rich peridotite w/ 1-3"7o po and tr cpy (iregular shaped blebs)0.25x0.25x0.25m angular boulder similar to 46small possible otc serp. Peridotite w/ 1-3"7o diss. Blebs of popossible otc of chilled contact(?) nipigon sill(?) w/ 10-2007omagn-s, near vert, mg.msv melagabbro w/ no visible ol or biot. Tr py-cpy. Cuts Archean seds at high angle to fol.mg, cpx rich, fldspathic w/ only tr biot.porphyritic, cpx rich peridotite w/ abnt biot. Well developed sub-hor jointingweakly serp w/ weakly developed sub-hor jointing, scttered 1cm serp veins and tr. Vfg sulfide(?)dk grnish gray, mg-mfg, ol rich w/ prominent poikolitic cpx and abnt biot, v weakly serpmfg, w/ distinctive lumpy weathering pattern (possibly poikolitic cpx weathering out.mfg, ol rich w/ minor biot.sub-hor jointingdk gray.fg, msv, peridotite/pyroxenitef??) or possibly ol melagabbro(??)fg peridotite w/tr po.( Probably near archean contact.)blk, msv, mgmeg, w/ 3-4mm ol (cpx?)med. Gray, msv, (no obvious jointing) mg, feldspathic w/ 25-35 (54plag, and eg granophyric pods and veinsmed. Gray, msv, (no obvious jointing) mg, feldspathic w/ 25-3507oplag, and eg granophyric pods and veinsdk gray, mg, msv, cpx rich. No granophyre.dk gray, mg, msv, cpx rich w/ patches of e.g. granophyric gabbrogreenish gray, vfg, schist (probably Archean metasediments)mg-cg, gabbro with patchy red fldspar and tr. Qtz(?) (granophyric gabbro)feldpathic peridotitevcg, oxide rich gabbro and granophyre w/ plag xtals up to 2cmvcg, oxide rich gabbro and granophyre w/ prominent sub hor jointing (-5m exposed beneath peridotite-no contact visible)contact between gabbro-granophyre sill and porphyritic peridotite w/ cpx phenocrysts up to 2cm. Gabbro has chilled contactsporphyritic peridotite w/ e.g. cpx phenocrysts similar to 72dk grnish gry, mg, ol and biot rich, mod. Serp. Rusty weathering w/ no obvious jointsdk grnish gry, mg, msv ol and biot rich, mod. Serp. Rusty weathering w/ no obvious jointsdk gry, mg, msv, biot-ol rich. Numerous large bldrs of archean voles, (subcrop???) upslope from peridotite otc.abnt angular bldrs of archean volcs(subcrop???) ~ 10m east of peridottie otcmod. Well exposed mg peridotitedk, greenish gray, m. g, weakly mag., msv, mod serp. W/ 5"7o bright wht plag, abnt biot and 0.207ofg diss po and tr cpyDk gry, fg, msv strongly magnetic rock w/ tr sulfide possibly peridotite or chilled Nipigon diabasedk gry, mg, msv, weakly serp.well exposed otcs along north side of E-W gully

RECOMMENDATIONS

Further work on the Eva-Kitto Claim group is essential to acquire additional data. Mapping and prospecting should be made a priority, with special attention paid to ultramafic units previously not mapped as peridotite. Stripping of outcrops could offer insight into contacts and facilitate more sampling in highly prospective areas.

Petrological studies and age determination analysis should be performed on rock samples taken in the fall of 2002. To characteristize the source magma, the whole rock geochemistry should be studied.

Drill testing of the peridotite is required to sample at depth and to best delineate the body.

REFERENCES

East West Resources, 2002. East West Resources Corporation website; Geology of the Eva Kitto Property; www.eastwestres.com/main.asp?section=properties&page=eva

Hart, T.R., terMeer, M., Jolette, C. 2002. Precambrian Geology of Kitto-Eva-Summers- Dorothea-Sandra Townships, Northwestern Ontario, Phoenix Bedrock Mapping; Ontario Geological Survey, Open File Report 6095.

Hart, T.R., terMeer, M., Jolette, C., Duggan, B.M. 2002. Proterozoic Ultramafic-Mafic Intrusions of the Nipigon Plate, Beardmore, Ontario; abstract in Calgary MEG Society Tenth Annual Calgary Mining Forum, April 18+19, 2001.

Sutcliffe, R.H. 1991. Proterozoic geology of the Lake Superior area; in Geology of Ontario, Ontario Geological Survey, Special Volume 4, Part 1.

STATEMENT OF QUALIFICATIONS

l, Steven Coombes, of the city of Vancouver, Province of British Columbia, DO HEREBY CERTIFY THAT:

1) l am a project geologist employed by Kennecott Canada Exploration Inc. with a business office at 354-200 Granville Street, Vancouver, British Columbia, Canada, V6C 1S4.

2) l am a graduate in Geology with a Bachelor of Science degree from the University of British Columbia in 1983.

3) l am a registered member of the Association of Professional Engineers and Geoscientists of the Province of British Columbia (No. 19713).

4) l am a Fellow of the Geological Association of Canada (No. F5457).

5) l have practiced my profession as a geologist for the past 20 years.

Four years pre-graduate field experience in geology, geochemistry, and geophysics with Noranda Exploration Co. Ltd. (seasonal, 1979 to 1982).Two years as exploration geologist with Rhyolite Resources Inc. (1983 to 1985).Five years as exploration geologist with Searchlight Consultants Inc. (1985 to 1990).

Five years as consulting geologist and proprietor of Summit Geological (1990 to 1995).

Eight years as project and principal geologist for Kennecott Canada Exploration Inc. (1995 to 2002).

6) l supervised the 2002 Eva Kitto airborne survey and wrote this report to document the results of work on the claims.

Dated:

December 9, 2002 Steven Coombes, P.Geo.Project Geologist

APPENDIX A Project Personnel

Project Personnel

The following personnel were actively engaged in the exploration of the Eva Kitto claim block.

NAMEDean Rossell

Jamie McLennan

Doug McKay

Kevin Kivi

Steve Coombes

Theo Aravanis

BUSINESS ADDRESSKennecott Exploration SWPS - Tuscon Office, 10861 N. Mavinee Dr., Oro Valley, AZ, U.S.A.Kennecott Canada Exploration Inc., Suite 354-200 Granville St, Vancouver B.C.Eveleigh Geological Consulting, 309 S. Court St., Thunder Bay ONKennecott Canada Exploration Inc., 309 S. Court St., Thunder Bay ONKennecott Canada Exploration Inc., Suite 354-200 Granville St, Vancouver B.C.Kennecott Canada Exploration Inc., Suite 354-200 Granville St, Vancouver B.C.

DATESSept 26 - October 2, October 19 -25, 2002.

Sept 26 - October 2, October 19 -25, 2002.

October 1-2, 2002.

October 21 - 25, 2002.

March 28 - 30, 2002.

March 28 - 30, 2002.

APPENDIX BSample Information, Results and Analytical Methods

Sample Information Table All samples located in Zone 16, NAD 83.Sample Number

VR82951AVR82952AVR82953AVR82954AVR82955AVR82956AVR82957AVR82958AVR82959AVR82960AVR82961AVR82962AVR82963AVR82964AVR82966AVR82967AVR82968AVR82969AVR82970AVR82971AVR82972AVR82973AVR82974AVR82975AVR82976AVR82977AVR82978AVR82979AVR82980AVR82981AVR82982AVR82983AVR82984AVR82985AVR82986AVR82987AVR82988AVR82989AVR82990AVR82991AVR82992AVR82993AVR32309AVR32310AVR32311AVR32312AVR32313A

Easting

419400419081418728418648418668418411418989419016418819418744418612421125421155420910420742420582420641420499420310420294420023420352420429420665418386418386418386418372418311418300418290418276418186418186416829416598419760419483416337416321415921415695415606415758415391417344418368

Northing

54919305491937549183354918735491871549186054923085492398549242754925405492771548927354892735489023548895754887775488758548864954885555488577548872154883205488357548713954873205487320548732054873395487396548740054874005487394548743454874345493368549323554881485488644549265454925635491994549189554924635492133549175154873285487336

Mapsheet

52 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 0952 H 09

Date Sampled26-Sep-0226-Sep-0226-Sep-0226-Sep-0226-Sep-0226-Sep-0227-Sep-0227-Sep-0227-Sep-0227-Sep-0227-Sep-0228-Sep-0228-Sep-0228-Sep-0228-Sep-0228-Sep-0228-Sep-0229-Sep-0229-Sep-0229-Sep-0229-Sep-0229-Sep-0229-Sep-0230-Sep-02

1 -Oct-021-Oct-02

1 -Oct-021 -Oct-021 -Oct-021 -Oct-021 -Oct-021 -Oct-021 -Oct-021 -Oct-022-Oct-022-Oct-02

19-Oct-0219-Oct-0222-Oct-0222-Oct-0223-Oct-0223-Oct-0223-Oct-0223-Oct-0223-Oct-0225-Oct-0225-Oct-02

Sampler

D. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. RossellD. Rossell

K. KiviK. KiviK. KiviK. KiviK. Kivi

D. RossellD. Rossell

Sample TypeRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockSoil

RockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRockRock

Rock Type

PeridotitePeridotiteGabbroGabbroGabbroGabbroPyrox

PeridotiteGabbroGabbroGabbroGabbroGabbro

PeridotitePeridotitePeridotitePeridotitePeridotitePeridotitePeridotitePeridotitePeridotitePeridotite

PyroxSapprolitePeridotiteDiabase

PeridotitePeridotitePeridotitePeridotitePeridotite

Magnetite rich?PeridotiteGabbro

PeridotitePeridotite

PyroxGabbroGabbro

PeridotitePeridotitePeridotitePeridotitePeridotitePeridotitePeridotite

A(AUS)

ALS ChemexAurora Laboratory Services Ltd. Analytical Chemists' Geochemists ' Registered Assayers

212 Brcx)ksbank Ave., North Vancouver British Columbia, Canada V7J 2C1 PHONE: 604-984-0221 FAX: 604-984-0218

To: KENNECOTT CANADA, INC.

354 - 200 GRANVILLE ST. VANCOUVER, BC V6C1S4

Project: Comments:

ONTARIOATTN: PETER ANDEXER

Page Number : 1Total Pages : 1Certificate Date: 17-OCT-2002Invoice No. : 10225536P.O. Number :Account : KAV

GC: DEAN ROSSELL

SAMPLE

VR82976A VR82977A VR82979A VR82980A VR82981A

VRB2982A VR82983A

PREP CODE

9414 9414 9414 9414 9414

9414 9414

234 226 226 226 226

226 226

Spec Gr S. Q.

3.12 2.78 2.97 3.09

2.99 2.92

Au ppbICP

< 2 2

< 2 58 12

12 14

Pt ppb ICP

< 5 < 5 < 5335 105

300 435

Pd ppbICP

2 2 2

556 160

458 630

Cu*

< 0.01 < 0.01 < 0.01

0.22 0.05

0.04 0.07

CERTIFICATE OF ANALYSIS A0225536

Zn*

0.01 0.01

< 0.01 0.01 0.01

< 0.01 < 0.01

Nit

0.120 0.055 0.120 0.265 0.165

0.200 0.250

Co\

0.012 0.008 0.010 0.016 0.014

0.014 0.016

Cr \

0.28 0.12 0.28 0.22 0.22

0.26 0.24

Ti

*

0.28 0.53 0.27 0.27 0.41

0.34 0.29

S*

0.02 0.17 0.07 0.86 0.27

0.43 0.66

\\ - ' i\ t -'.li. -- j - ; .' '

CERTIFICATION:

ALS ChemexAurora Laboratory Services Ltd.Analytical Chemists" Geochemists " Registered Assayers

212 Brooksbank A ve., North Vancouver British Columbia, Canada V7J 2C1 PHON E: 604-984-0221 FAX: 604-984-0218

To: KENNECOTT CANADA, INC.

354 - 200 GRANVILLE ST. VANCOUVER, BC V6C1S4

Comments: ATTN: PETER ANDEXER CC: DEAN ROSSELL

A0225536

CERTIFICATE A0225536

(KAV ) - KENNECOTT CANADA, INC.

Project: ONTARIO P.O. # :

Samples submitted to our lab in Thunder Bay, ON This report was printed on 17-OCT-2002.

SAMPLE PREPARATION

METHODCODE

PUL-32226234

3202

NUMBERSAMPLES

7617

DESCRIPTION

Pulv. lOOOg to ^5V-75 micron0-3 Kg crush and split0-7 Kg splitting chargeRock - save entire reject

ANALYTICAL PROCEDURES

METHOD CODE

OA-GRAOBAU-ICP23Pt-ICP23Pd-ICP23CU-ICP81Zn-ICP81N1-ICP81Co-ICPSlCr-ICP81Ti-ICP81

S-ICP81

NUMBER SAMPLES

e7777777777

DETECTION DESCRIPTION METHOD LIMIT

Specific gravity SG: bulk sample GRAVIMETRIC 0.01

Au ppb: FA ICP package FA-ICP 2

Pt ppb: FA ICP package FA-ICP 5

Pd ppb: FA ICP package FA-ICP 2

Cu *: Fusion - ICP-AES FUSION- ICPAES 0.01

Zn *: Fusion - ICP-AES Fusion - ICP-AES 0.01

Hi *: Fusion - ICP-AES Fusion - ICP-AES 0.005

Co *: Fusion - ICP-AES Fusion - ICP-AES 0.002

Cr Hi Fusion - ICP-AES Fusion - ICP-AES 0.02

Ti9t: Fusion - ICP-AES Fusion - ICP-AES 0.01

S *: Fusion - ICP-AES Fusion - ICP-AES 0.01

UPPER LIMIT

20.0100001000010000

30.030.020.0

10.0010.0030.060.0

ALS

ALS ChemexAurora Laboratory Services Ltd. Analytical Chemists * Geochemists * Registered Assayers

212 Brooksbank A ve., North Vancouver British Columbia, Canada V7J 2C1 PHONE: 604-984-0221 FAX: 604-984-0218

To: KENNECOTT CANADA, INC.

354 - 200 GRANVILLE ST. VANCOUVER, BC V6C 1S4

QC Page #: Tot QC Pg: Date: Invoice #: P.O. #:

Project: Comments:

ONTARIOATTN: PETER ANDEXER

1117-OCT-200210225536

KAV

CC: DEAN ROSSELL

STD/DUP/BLANK DESCRIPTION

ICP-SU1A CHEMEX MEAN

PQMA-95 CHEMEX MEAN

QC PAGE TYPE NO.

Stdl

Stdl

1

1

Spec Gr S. G.

Au ppb ICP

384 377

Pt ppbICP

695 725

Pd ppb ICP

644 672

Cu

0.95

QC DATA OF CERTIFICATE A0225536

Zn

0.02 0.03

Ni

1.230 1.230

Co

0.038 0.041

Cr

0.02

Ti

0.30

s56

9.38 9.35

V

CERTIFICATION^

AAssay Procedure ME-ICP81

Evaluation of Ores and High Grade Materials by Fusion- ICP-AES

Sample Decomposition: Sodium Peroxide FusionAnalytical Method: Inductively Coupled Plasma - Atomic Emission Spectroscopy (ICP - AES)

A prepared sample (0.200 gram) is added to sodium peroxide flux (2.6 grams), mixed well and then fused in a 6500C furnace. The resulting melt is cooled and then dissolved in 250ml of 1007o hydrochloric acid. This solution is then analyzed by inductively coupled plasma - atomic emission spectrometry and the results are corrected for spectral interferences.

ALS ChemexCode

AS-ICP81Co-ICPSlCu-ICPSlFe-ICI'81Ni-lCPSlS-ICP81

Pb-ICP81Zn-ICP8i

ChemexCode

1061105810561060 1057106280688069

Element

Arsenic CobaltCopper Iron NickelSulfurLeadZinc

Symbol

As CoCu FeNiS

PbZn

Detection Limit

0.01 7o 0.002 7o0.005 7o

0.1 7o 0.005 07o0.01 7o

0.02 7oQ.01%

Upper Limit

10 7o10 07o

20 07o 40 7o 20 7o60 7o5 07o

57o

NoveiTTbei; 31, 2002W!

AUS ctiemex

Geochemical Procedure - PGM-ICP23 and.PGM-ICP24 Precious Metals Analysis Methods

Sample Decomposition: Fire Assay FusionAnalytical Method: Inductively Coupled Plasma - Atomic Emission Spectrometry (ICP-AES)

A prepared sample is fused with a mixture of lead oxide, sodium carbonate and borax silica, inquarted with 6 mg of gold-free silver and then cupelled to yield a precious metal bead. The bead is digested for 2 minutes at high power by microwave in dilute nitric acid. The solution is cooled and hydrochloric acid is added. The solution is digested for an additional 2 minutes at half power by microwave. The digested solution is then cooled, diluted to 4 ml with 207o hydrochloric acid, homogenized and then analyzed for gold, platinum and palladium by inductively coupled plasma - atomic emission spectrometry.

PGM-ICP23l ALSi Chemex| Method

ALS I lChemex

Parameter || Code Code1 Au-iCP23 f 975

ElementGold

| pt.Jcp23 i 976 i Platinum| Pd-iCP23 ^ 977 j Palladium

i SampleSymbol

AuPtPd

Weight30 g30 g3P. g ...

Detection UpperLimit LimitIppb | 10,000 ppb5ppb | 10,000 ppbIppb | 10,000 ppb

PGM-ICP24ALS

ChemexMethod

CodeAu-ICP24PMCP24Pd-ICP24

ALSChemex

Code966696649665

ElementGold

PlatinumPalladium

1

i Symbol| Aui Pti Pd

1

j Sample1 Weight1 50 Sj 5Qgi 5Q g

——————

DetectionLimit

........ J.PEb ..........

.......l.ppb

........,..lEpb.,,.......

UpperLimit

10,000 ppb16,660 ppb10,666 ppb

November 14, 2002 l

APPENDIX C SURVEY AREAS AND SPECIFICATIONS

Survey Name: Eva Kitto, OntarioGeneral Location: Approximately 14 kilometers west of Beardmore, OntarioBase of Operations: Thunder bay, Ontario

Survey Type: Fixed WingGeophysical Parameters: Total Magnetic Intensity; Time Domain EM

Survey Boundary: (NAD 27 UTM Zone 16)

Point

A

B

C

D

Easting

417800.0

413573.8

419918.0

424144.2

Northing

5484000.0

5493063.1

5496021 .4

5486958.3

Line Specifications:Transect Lines: Direction 155/335Tie Lines: Direction 065/245

Spacing 200 metres Spacing 500 metres

Mean Terrain Clearance: AircraftEM sensor

Magnetometer

120 metres 70 metres 75 meters

Approximate Data Sample Spacing: Magnetic Field 6 metres or 10 sample/secEM 15 metres or 4 sample/sec

Any infill or extensions to the survey area will have a minimum line length of 8 km.

Eva Kitto survey area

412500 415000 J17500 420000 J22500 425000

Survey line layout

APPENDIX D TECHNICAL SPECIFICATIONS

1. Items Provided by Contractor1.1. Survey Platform

Aircraft: Fixed wing DeHavilland Dash 7

Registration: C-GJPI (Canadian)

Mean terrain clearance: 120 m

Cruising speed: 130 kn (240 km/hr)

1.2. Airborne Magnetometer

Model: Scintrex CS2

Type: Cesium-vapour

Mean terrain clearance: 75 m (nominal)

Distance behind aircraft: 80 m (nominal)

Sample Interval: 10 Hz (0.1 seconds); 6-7 metres

Sensitivity: 0.01 nT

Noise envelope: *:0.25 nT

Measurement Range: -20-100k nT

Mount: Bird

1.3. EM System

Model: MEGATEMII

Waveform frequency: 90 Hz

Pulse width: 2 ms

Loop: 5 turns

Loop area: 406 m2

Dipole moment: 1,710,000 Am2

Peak-to-peak current: 840 A

Receiver: 3-component induction coils x, y and z

Mean terrain clearance: 70 m (nominal)

Distance behind aircraft: 130 m (nominal)

Effective area: 36,000 m2

Vz waveform samp, rate: 128 per pulse

Sample Interval: 4 Hz (0.25 seconds); 15-16 metres

Channels/Gates: 20 channels approximately as specified in the following

table:

Gate No.

1234567891011121314151617181920

ON or

OFF timeONONONONONOFFOFFOFFOFFOFFOFFOFFOFFOFFOFFOFFOFFOFFOFFOFF

Start point

411263752575961646771757984899499

105111119

End Point

10253651565860636670747883889398

104110118128

Width points

7151115522334445555668

10

Start (fjsec)

130.2434.0

1085.01562.42213.42430.42517.22604.02734.22864.43038.0321 1 .63385.23602.23819.24036.24253.24513.64774.05121.2

End (//sec)

434.01085.01562.42213.42430.42517.22604.02734.22864.43038.0321 1 .63385.23602.23819.24036.24253.24513.64774.05121.25555.2

Centre (//sec)

282.1759.5

1323.71887.92321 .92473.82560.62669.12799.32951.23124.83298.43493.73710.73927.74144.74383.44643.84947.65338.2

Approx. Noise level

(pT/s)

25,00015,00015,00015,00025,00015,00010,00010,0008,0008,0008,0007,0007,0007,0006,0006,0006,0005,0005,0005,000

NOTE: The noise levels quoted for each channel were derived from background values measured at altitude, in calm air, with straight and level flying. Actual noise levels while surveying on line may be higher due to aircraft maneuvering and turbulent conditions at low levels above the ground.

Prestack sampling rate: 64 per pulse

Measured response: dB/dt and B-field

Bandwidth: Base frequency to 10 kHz

Stacking rate: 4 stacks per second

Digital recording: all raw data channels

1.4. Altimeters

1.4.1.Radar Altimeter

Model:

Sample Interval:

Accuracy:

Precision:

Range:

King KRA405

Analog output - recorded at 2 Hz

507o

Equal to or better than 3 metres

0-610 metres

1.4.2. Barometric Altimeter

Model:

Sample Interval:

Accuracy:

Precision:

Range:

Rosemount 1241M

Analog output - recorded at 2 Hz

15 metres

Equal to or better than 3 meters

-305 m to 4570 m barometric

The aircraft altitude will be recorded on digital disk as well as displayed on the aircraft chart recorder. The recorded value will be the average of the altimeter output during the previous second.

1.5. Navigation and Positioning Equipment - GPS

Model: Sercel NR1 03 or NR1 09

Base Station Model: Sercel NR103 or NR109

Number of Channels: 10 C/A code 8t carrier phase

Sample Interval: 1 .66 Hz

Positioning Accuracy: Better than 5 metres horizontal following post

differential processing. Autonomous position accuracy

m if SA disabled and *c100m is SA enabled.

1.6. Video Tracking System

Camera: Panasonic WV-CL302

VCR: Panasonic AG-1070DCE

The videotape is synchronized with the geophysical record by a digital fiducial

display and latitude and longitude values which are recorded on the videotape

and displayed on the bottom left of the video screen. Times are recorded from the

digital information provided by the data acquisition system. Video is recorded in

NTSC (VMS) format.

1.7. Data Acquisition/Flight Control System

Model: GeoDAS

Recording media: Removable hard disk

Time Synchronization: Not greater than 0.005 seconds.

Sample Interval: 0.1 seconds

1 .8. Analogue Chart Recorder

Model: RMS GR33

Chart speed: 2mm7s (Print Dot Roll driven)

Chart Width: 12 inches

Recorded data: Fiducial

Noise monitor

Radar altimeter

Primary field

MEGATEM II channels

Power line monitor

TMI (fine and coarse scales)

Magnetic field 4th difference noise monitor Scales: User selectable

1.9. Base-Station Magnetometer

Model: Scintrex CS2

Type: Cesium-vapor

Sensitivity: less than 0.1 nT

Sample Interval: 1 s

Recording: Digital

Synchronization: G PS correlation with airborne magnetometer. Time

stamped with time accurate to within 0.005 seconds. Location: At the operations base in an area of low magnetic

gradient and no cultural noise.

1.10. Provision of the necessary qualified personnel and field computing equipment required to complete the survey.

1.11. Supply of the technical equipment with spares necessary to fly the survey in an expeditious manner.

2. Items Provided by Kennecott Exploration2.1. Definition of survey boundary in UTM coordinates.

2.2. Digital topographic base.

3. Equipment Calibration 3.1. Airborne Magnetometer System

Parallax Error Parallax will be measured by flying over the same,

sharp anomaly on reciprocal headings. Records of

parallax tests must be provided prior to start of

survey.

3.2. EM System

Calibration

Noise check

Bird Motion

The aircraft transient compensation of the MEGATEM II

system will be checked prior to, and at the end of, each

flight at 600 metres terrain clearance. Aircraft flight attitude

will be monitored and a mean standard low level attitude

will be maintained by adjusting aircraft air speed during

high level calibration tests. Zero levels of the MEGATEM II

channels will be verified at the beginning and end of each

flight.

The "primary/compensation" waveforms for each

component (X, Y and Z) will be recorded digitally for each

flight and in-flight data will be corrected for deviations

from these waveforms. The X, Y and Z primary

waveforms for each flight will be included as deliverable

items at the end of the survey, to facilitate possible further

quantitative processing and interpretation.

The in-flight operator views the data on the analog and

digital displays while surveying, terminating flights when

specifications are exceeded. The quality is then checked, post-flight, on the recovered data. A subset of the data (a

"QC" file) will be provided daily for client review.

The magnitude of residual bird motion noise in the off-

time channels (after compensation), can be estimated by examining the high altitude calibration data. After the

initial compensation, done at altitude, bird-motion noise is induced in the channels by putting the aircraft through a

series of severe pitches. The low frequency oscillations

(of a period of 6 to 8 seconds) in the data observed

during these pitches will always reflect the upper limit of residual bird-motion noise that may be expected while

surveying on line, as the pitches done at altitude are more severe than normal turbulence or altitude corrections

experienced on line. The amplitude of bird-motion noise will be greatest near the turn-off of the pulse and

decrease rapidly to sub-noise level by channels 9 or 10.

The following typical bird-motion noise measured during

high altitude pitches can be expected:

Channel Peak-to-peak amplitude (pT/s)1 to 5 Not applicable

6 75,000

7 30,000

8 10,000

9 5,000

10 3,500

11 to 20 Not apparent

Survey Test Line A survey test line at least 8 km in length (4 km for a

helicopter survey) will be flown at the beginning of each flight in a constant direction at the nominal survey altitude to verify that the system is functioning. In addition, the

test line shall be reflown following any subsequent

calibration of the EM system.

At the discretion of Kennecott's representative, further

acquisition of test line data may be undertaken. These

additional test lines will be charged to Kennecott at the

nominal line km charge referred to in Attachment D.

Survey Monitoring Reporting The contractor shall maintain an equipment

log noting all equipment serial numbers, equipment

replacements and repairs throughout the survey. All

appropriate calibration and survey test line data should be

recorded digitally and included as deliverables.

Altimeters Radar and barometric altimeters will normally be

calibrated prior to survey commencement, in the survey

area, unless there have been recent calibrations in the

same area, and no errors were noted.

GPS Navigation DGPS navigation will be checked over known control

points, to verify calculated survey coordinates against

published coordinates.

Survey Monitoring Reporting The contractor shall maintain an equipment

log noting all equipment serial numbers, equipment

replacements and repairs throughout the survey. All

appropriate calibration and survey test line data should be

recorded digitally and included as deliverables.

4. Reflight Specifications

Portions of the survey will be reflown at the sole expense of Contractor under any of the conditions listed below. These thresholds may be relaxed only after discussions with the

Kennecott representative on site.

* Contractor supplied equipment failure prevents magnetic, EM, altimeter data

acquisition and/or real time GPS navigation.

* Transect line spacing exceeds more than 30 percent of the nominal spacing over a

continuous distance exceeding 3000 meters unless, (a) in the opinion of the pilot,

to do so would jeopardize the safety of the aircraft or the crew, or (b) the

equipment or would be in contravention of the aviation authority regulations. The

line spacing measurements to be used in determining such reflights will be made

from the field flight path recovery.

* Aircraft terrain clearance varies from specified mean terrain clearance by more

than 20 meters over a distance of 3 km unless, (a) in the opinion of the pilot, to do

so would jeopardize the safety of the aircraft or the crew, or (b) the equipment or

would be in contravention of the aviation authority regulations.

* Where the noise level of the MEGATEM n system, as indicated on the raw traces of

dB/dt channel 20 (last off-time channel), exceeds 3500 pT/s on either the x or z

coil, over a distance of 3 kilometres or more (approximately 50 seceonds), or where

significant bursts of spheric events interfere with data processing or interpretation.

As a result of Contractor supplied equipment failure, noise envelope of

compensated Total Magnetic Intensity data exceeds 0. l nT for a continuous

distance of l km.

If either or both the magnetometer or EM data are not interpretable as a result of

Contractor supplied equipment failure, in the opinion of both the Kennecott and

Contractor representatives.

The departure of the diurnal magnetic field from a straight-line chord, 30 seconds in

length, exceeds 5 nT where the tie line interval is l km. Or, where the tie line interval

is 2.5 km, the departure of the diurnal magnetic field from a straight-line chord, 75

seconds in length, exceeds 5 nT.

APPENDIX ECost Statement and Distribution of Costs to Claims

Cost Statement - Eva Kitto Claim Group

Claims With Both Specific Ground Costs and Regional Costs

(See following note for explanation of specific line items and detailed cost breakdown)

Airborne Geophysical Survey8.68 Line-km on subsequently staked land @ Sl93.5371ine-km S 1,679 301.73 Line-km on crown land @ 25*7c of Sl93.5371ine-km S 14,598

S 16,277

Ground Truthing39 ground truthing samples @ S405.18 per sample S 15,802 l ground truthing sample on new claim @ 8405.18 S 405 7 ground truthing samples @ 25 1b of S405.18 per sample S 709 7 Assay/ICP-AES S 332

517,248

Report Writing and Map Plotting, including materials and communications S 4,400

TOTAL ASSESSMENT COSTS S 37,925

Note to Cost Statement

Airborne Geophysical SurveyThe airborne survey cost includes all applicable expenditures for assessment purposes, including salaries of Kennecott and contractor personnel, room and board, supplies, aircraft time and fuel.

line-km cost per unit total on newly staked claims 8.675 193.53 1678.87on adjacent crown land, @

301.725 193.53 14598.21

16277.08

Sampling and Ground Truthing

Sept 26 - Oct 2

unitwages, per man day 19 food+lodging, per man day 19 mileage, per km 210 supplies (bags, marker, ties, tags) SUBTOTAL

cost per unit3001000.35

total5700190073.5200

7873.5

Applicable mobilization/demobilization costs each way unit cost per unit total mileage-truck 1 179 0.35 62.65 mileage-truck 2 179 0.35 62.65 food+lodging, per man day 3 150 450 SUBTOTAL, both directions 1150.60

Oct 19-25

wages, per man day food+lodging mileage boat rental

unit1818455

supplies (bags, marker, ties, tags) SUBTOTAL

cost per unit total 300 5400 100 1800 0.35 15.75 100 500

2007915.75

Applicable mobilization/demobilization costs each way unit cost per unit total mileage -truck 1, per km 262 0.35 91.7 mileage-truck 2 invoiced amount 510 food+lodging, per man day 3 150 450 SUBTOTAL, both directions

Total Cost of Ground Truthing and Sampling100"7o of value of work on claims (40 samples)10007o of value of work on new claim (1 sample)250Xo of value of work on adjacent crown land (7 samples)

Assays 7

2103.4

19043.2515801.85

405.18709.06

332.10

Report Writing and Map Plottingunit

wages, per manday 16 printing, supplies, communications

cost 250

total4000400

17248.18

4400.00

[TOTAL 37925.26

Kennecott-East West JV: Eva Kitto PropertyEva Kitto Claim Group 2002 Assessment Work Completed

Claim #

124591512459161245917123307812404921240493124704412403021240303124030412403051240306124541412454151245417124953730060733006074

TOTALS

Area

12161216121212161012114

16135

1662

203

Expiry

1/22/031/22/031/22/032/17/033/13/033/13/035/14/035/24/035/24/036/14/036/14/036/14/037/20/037/20/037/20/03

3/1/0411/4/0411/4/04

Record Date

1/22/011/22/011/22/012/17/003/13/003/13/005/14/015/24/005/24/006/14/006/14/006/14/007/20/007/20/007/20/00

3/1/0211/4/0211/4/02

Required Assessment

48006400480064004800480048006400400048004400160064005200200064002400

800

Outstanding

1625172336562167379232503792

00000000

64002400

800

Claim Specific Costs

405.184789.081215.543241 .44

0405.18

00000

1620.724456.98

000

1605.07478.80

Associated/ Regional Costs

97.861156.66293.58782.87

097.86

00000

391.441076.45

000

8041 .297769.28

Total Work Done

503.045945.741509.124024.31

0503.04

00000

2012.165533.43

000

9646.368248.07

Applied

1625172336562167379232503792

000000000

2400800

Banked

26000000000000000

7246.367448.07

81200| 29605| 18217.98) 19707.28) 37925.26) 23205) 14720.26

ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Work Report Summary

Transaction No: W0240.01908 Status: APPROVED

Recording Date: 2002-DEC-16 Work Done from: 2002-SEP-26

Approval Date: 2003-MAR-03 to: 2002-OCT-25

Client(s):

128645 EAST WEST RESOURCE CORPORATION

1 37052 MAPLE MINERALS CORP.

145589 HOLT, LYLE HENRY

Survey Type(s):

ASSAY GEOL

Work Report Details:

Claim*

TB

TB

TB

TB

TB

TB

TB

TB

TB

1233078

1240306

1240492

1240493

1245414

1245915

1245916

1245917

1247044

Perform

34,024

82,012

SO

S503

35,533

S503

S5.946

81,509

SO

520,030

External Credits:

Perform Approve

S4.024

S2.012

SO

S503

S5.533

S503

55,946

51,509

SO

520,030

SO

Applied

52,167

SO

53,792

S3.250

SO

51,625

51,723

53,656

53,792

520,005

Applied Approve

S2

S3

S3

S1

S1

S3

S3

520

,167

SO

,792

.250

SO

,625

,723

,656

,792

,005

Assign Reserve Assign Approve Reserve Approve

51,857 1,

52,012 2,

SO

SO

55,533 5,

SO

S4.223 4,

SO

SO

S13.625 513,

857

012

0

0

533

0

223

0

0

625

SO

SO

SO

SO

50

525

SO

SO

SO

S25

SO

SO

SO

50

so525

SO

SO

so

S25

Due Date

2004-FEB-17

2003- J UN- 14

2004-MAR-13

2004-MAR-13

2003-JUL-20

2004-JAN-22

2004-JAN-22

2004-JAN-22

2004-MAY-14

Reserve:S25 Reserve of Work Report#: W0240.01 908

S25 Total Remaining

Status of claim is based on information currently on record.

52H09SE2005 2.24671 EVA 900

2003-Mar-04 09:44 Armstrong-d Page 1 of 1

ONTMIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Transaction No:

Recording Date:

Approval Date:

Client(s):

128645

Survey Type(s):

W0240.01922

2002-DEC-16

2003-MAR-03

Work Report Summary

Status: APPROVED

Work Done from: 2002-MAR-20

to: 2002-OCT-25

EAST WEST RESOURCE CORPORATION

AEM AMAG PROSP

Work Report Details:

Claim*

TB 3006073

TB 3006074

External Credits:

Reserve:

Perform Perform Approve

31,605 31,605

S479 S479

S2.084 82,084

315,810

Applied

32,400

3800

33,200

814,694 Reserve of Work

314,694 Total Remaining

Applied Approve

32,400

3800

33,200

Assign

SO

so

SO

Assign Approve

0

0

so

Reserve Reserve Approve

37,246 37,246

37,448 37,448

314,694 314,694

Due Date

2005-NOV-04

2005-NOV-04

Report#: W0240.01922

Status of claim is based on information currently on record.

2003-Mar-04 09:54 ArmstrongjJ Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date: 2003-MAR-03

Ministere du Developpement du Nord et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

EAST WEST RESOURCE CORPORATION905 WEST RENDERAPT 402VANCOUVER, BRITISH COLUMBIAV6C 1L6 CANADA

Tel: (888) 415-9845 Fax:(877)670-1555

Dear Sir or Madam

Submission Number: 2.24671 Transaction Number(s): W0240.01908

W0240.01922

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time.

NOTE: The work start and end dates from the forms have been changed in the Claims database to better reflect the actual work dates, as contained in the report.

If you have any question regarding this correspondence, please contact BRUCE GATES by email at [email protected] or by phone at (705) 670-5856.

Yours Sincerely,

Ron GashinskiSenior Manager, Mining Lands Section

Gc: Resident Geologist

East West Resource Corporation (Claim Holder)

Assessment File Library

East West Resource Corporation (Assessment Office)

Maple Minerals Corp. (Claim Holder)

Lyle Henry Holt (Claim Holder)

Steve Coombes (Agent)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:18021

o o

Dale r Time of Issue 1 Won Mar 03 14-14:10 E3T 2003

TOWNSHIP l AREA PLAN

MARYJANE LAKE AREA G-0080

ADMINISTRATIVE DISTRICTS i DIVISIONS

Mining Division Thunder BayLand Titles/Registry Division THUNDER BAYMinistry of Natural Resources District NIPIGON

LAND TENURE WITHDRAWALS

r- IMPORTANT NOTICES

LAND TENURE WITHDRAWAL DESCRIPTIONS

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li i i|i|i|i|i ii !ijiii!i!iiiiijiij!i ilHili i il ililHHil i !j^i!i!iii!iiiii i i II i i Ijijiji li ii iliiiitiii |?iil !iiiiliiil!liiiiiili! ii!i!iii iiiiiiii iHiiilli i Hi y lil; ji iHiliili^l i iigHH;.g iiliiii-Jiili^i^!;:;^ iU . :;:h; : :::. i: s&fr-M-lij: - ^. ni-j^.-j;.. .^ij;^______

Thunder Bay Mining Division

Ontario, Canada——- Geologic contact, assumed ~—— Geologic contact, inferred

— — Traverse* m Traverse station

52H09SE2005 2 .24671 EVA 210

5496000 mN. .

N

5494000 rn.N 5494000 mN.

54900.00 .mN.

mN

5486000 mN.....

m.N

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5482000. mN.

KENNECOTT CANADA EXPLORATION INC.Vancouver

EVA KITTO

TMI MAGNETICS (nT)

Ontario, Canada

Author. SC

Date: MAY 22, 2002

NTS: 052H09

l Drawn by: SC

Projection: UTM NAD83 ZONE 16 Ref: van.OOxxx.X Figi

File: first Sine second iine

gure: (j

0.5

Scale: 1:20,000

1

kilometres

52H09SE2005 2.24671 EVA 220

5436000 mM.

N

5454000. mNmN.

mN.

mN

mJ\L.mN

ft- WlV C" x

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KENNECOTT CANADA EXPLORATION INC.Vancouver

EVA KITTO

B-FIELD-GATE10 X COMPONENT (fT)

Ontario, Canada

Author SC

Date: MAY 22.2002

i NTS: 052H09

Drawn by: SC

File: first tine second tine

Projection: UTM NAD83 ZONE 16 Ref: van.OQxxx.X \ Figure:

Scale: 1:20,000

0.5 1

kilometres

52H09SE2005 2.24671 EVA 230

5496000 mN.

N

m FM 5494000 mN

mN.

54813000, mN.

mN

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5482000 mN

KENNECOTT CANADA EXPLORATION INC.Vancouver

EVA KITTO

B-FIELD-GATE10 Z COMPONENT (TT)

Ontario, CanadaProjection: UTM NAD83ZONE 16 Ref: van.OOxxx.X

Author SC

Date: MAY 22, 2002

NTS: 052H09

Drawn by: SC

File: first iine second line

Figure: I..

Scale: 1:20,000

0.5 1

kilometres

52H09SE2005 2.24671 EVA 240

mN

N

5494000.mN

5492000 m Psi.

549QQOOjnM.mN..

5488000 mN

mN,

mN..

y j E

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5482QOQ.m.N

KENNECOTT CANADA EXPLORATION INC.Vancouver

EVA KITTO

B-FIELD-GATE16 X COMPONENT (fT)

Ontario, Canada

Author SG

Date. MAY 22, 2002

NTS: 052H09

Drawn by; SG

Fiie: first tine second tine

Projection: UTM NAD83 ZONE 16 Ref: van.OOxxx.X Figure:

Scale: 1:20,000

0.5 1a

kilometres

52H09SE2005 2.24671 EVA 250

5496000 mN

N

mN mN.

5492000 mN.

mN

5486000. mN .5486000. mN.

CI fmN

mo o o

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m.N.

KENNECOTT CANADA EXPLORATION INC.Vancouver

EVA KITTO

B-FIELD-GATE16 Z COMPONENT (fT)

Ontario, Canada

Author SC

Date: MAY 22, 2002

NTS: 052H09

| Drawn by: SC

| File: first tine

! second tine

Projection: UTM NAD83ZONE 16 Ref: van.OOxxx.X j Figure: Q

0.5

Scale: 1:20,000

1

kilometres

52H09SE2005 2.24671 EVA 260