RECEIVEDAPR 15 z::--

QEOSCIENCE ASSESSMENT _____DfFlCE______^

PROVINCIAL RECORDING OFFICE - SUDBURY

RECEIVED

APR 1 5A.M.

MECHANICAL STRIPPING REPORT

MAKADA LAKE Pd-Pt-Au-Cu-Ni PROJECT

Waters Township(G-4120)

Sudbury Mining Division Ontario, Canada

Work Completed: November 18th-19th, 2003 April 8th and 13 th, 2004

Prepared For:

M. Kosovsky New York, NY, USA

Prepared By:

and

Scott Jobin-Bevans, M.Sc., P.Geo (ON) 1674 Latimer Crescent Sudbury, ON P3E2V7

April 14th, 2004

41I06NE2014 2.27509 WATERS 010

SUMMARY

The Makada Lake property, located in the central region of Waters Township, is underlain by

a Nipissing Gabbro sill that hosts several Ni-Cu-PGE sulphide showings and several polymetallic

vein showings of Au-Ag-Co-Cu-Ni. The property is road accessible - about 20 minutes from

Sudbury - consists of 5 unpatented mining claims which are held lOO'/'o by Marietta R. Kosovsky.

The current program comprised mechanical stripping to bedrock and geological mapping

(1:500 scale) of the cleared area; no samples were collected at this time. The stripping program

was aimed at elucidating the cause of several east-west trending "Beep Mat" anomalies, identified

in a Fall 2002 exploration program. The Beep Mat survey and prospecting program of Fall 2002

identified 11 new areas with sulphide mineralisation, mainly associated with a northeast trending

(~600 to 800 Az), inclusion-bearing quartz gabbro dyke(s) that occur within mining claims S-

1043226 and S-1043223. The highest assay was from samples WP-180 and CJ02-180 which

returned 0.66 g/t Pt+Pd, Q.03% Cu and G.12% Ni. The current program concentrated on the area

around sample site WP-180/CJ02-180 - now referred to as the "Cecil Johnson" or "CJ" showing.

The northern end of the Makada Lake intrusion underlies the property and is interpreted to

represent an upper limb or near-arch portion of an undulatory sill. The body dips to the

northwest, exposing the lowermost rocks of its stratigraphy along the south-southeast parts of the

property and its uppermost rocks of the stratigraphy occur within the central to northeast regions

of the property; the western part of the property which consists mainly of norite (orthopyroxene-

bearing gabbro), is interpreted to have been uplifted (horst), exposing deeper portions of the

intrusion. Prior to the Fall 2002 prospecting, 4 areas of mineralization had been discovered on

the property. Three of the areas contain very anomalous platinum-group element (PGE), copper

and nickel values associated with highly altered and contaminated (sediment fragments in gabbro)

gabbroic rocks. A single drill hole in one of these areas assayed 1.4 g/t Pt+Pd+Au over 0.2m

with anomalous platinum-palladium values in other portions of the core. The best assay in terms

of base metals is 1.2707o Ni, G.36% Cu and G.17% Co. The 4th area of mineralization is Au-Ag-

Co-Ni-Cu mineralization associated with quartz veining; best assay is 62 ppb Au, 10045 ppm As

and 6.6 ppm Ag. Several other areas of PGE-Cu-Ni and Au-Ag-Co-Ni-Cu mineralization have

been located on the property but historic work on these showings, for the most part, is limited.

Follow-up in the region of the C J showing is recommended with the stripped area requiring

washing, sampling and further geological mapping to fully understand the mineralization

occurring in this area and its relationship, if any, to the east-northeast trending quartz diorite

dyke(s).

INTRODUCTION

The Makada Lake Property, located in Waters Township - a 20 minute drive from Sudbury -

is underlain by a Nipissing Gabbro sill that hosts several showings of Ni-Cu-PGE sulphide and

several polymetallic vein showings of Au-Ag-Co-Cu-Ni. The current mechanical stripping and

geological mapping program was started November 18*, 2003 but could not be completed until

April 2004, due largely to the onset of winter and inclement weather in early Spring.

The current program comprised mechanical stripping to bedrock and geological mapping

(1:500 scale) of the cleared area; no samples were collected at this time. The stripped area is

centered around sample site WP-180/CJ02-180 - now referred to as the "Cecil Johnson" or "CJ"

showing - which assayed as high as 0.66 g/t Pt+Pd, G.03% Cu and G.12% Ni. A Beep Mat

program in Fall 2002 identified several east-west trending anomalies which appear to be caused

by sulphide mineralisation within northeast trending (~600 to 800 Az), inclusion-bearing,

magnetite quartz gabbro dyke(s); these dykes have been noted in mining claims S-1043226 and

S-1043223. The "CJ" showing is located about 20 metres southeast of the main dyke. Two days

were spent supervising the stripping program and establishing a picketed grid on the cleared area.

An additional l .5 days were spent mapping the area at l :500 scale.

LOCATION——————^^^^^—^^^^——-——————————.————

The Makada Lake property is located in the central region of Waters Township, Sudbury

Mining Division, Ontario (Figure 1). The property is accessed by travelling west from Sudbury

on Regional Road 55 (old HWY #17) to Black Lake Road, just south of Lively. Proceed south on

Black Lake Road for ~3.8km then west (right) on North Shore Black Lake Road. Follow this

road ~0.8km, then west (right) on Clark Road; travel ~0.7km to a parking area on the property.

CLAIM OWNERSHIP________________________________________

The Makada Lake property consists of five contiguous, unpatented mining claim blocs

totalling 5.97 units (Table 1; Figure 2). The claims are held I0007o by Marietta R. Kosovsky and

require CDNS2,387 per year in assessment work to keep the claims current.

Table 1. Distribution of the Makada Lake mining claims (claim map G-4120).Claim

S-1043223S-l 043225S-1043226S-1223074S-1223188

Recording DateDec-01-1998Dec-01-1998Dec-01-1998Nov-19-1996Nov-19-1996

Total:

No. Units0.97

1112

5.97

Due DateApr-28-2005Apr-28-2004Apr-28-2005Apr- 15-2004Apr- 15-2004

—

Work S/yearS387S400S400S400S800

S2.387

MAKADA LAKE PROPERTYWaters Township

Sudbury Mining Division

- Location Map -

MAKADA LAKE PROPERTY

Figure 1. Location of the Makada Lake Property in Waters Township, Sudbury Mining Division, south of Lively, Ontario.

; |, - - X - Makada Lake Property

INKS TO UW

KM

0-4120

WATERSSUOftUMY

swauRr

800m

OOfOf ilfH OF WO** MISS

Figure 2. Claim Map G-4120, Waters Twp., showing the location of the Makada Lake mining claims.

PREVIOUS WORK A TARGET

Previous work on the property identified a sulphide showing hosted by Nipissing Gabbro and

located about 20 metres southeast of a +10 metre wide dyke. The new sulphide showing, referred

to as the "Cecil Johnson" or "CJ" showing was sampled in Fall 2002 (sample WP-180 and CJ02-

180). This sample assayed 0.66 g/t Pt+Pd, Q.03% Cu and G.12% Ni; the S/Se ratio of 6,231

suggests that the sulphide component is magmatic but may have undergone some contamination.

The main dyke, a magnetite quartz gabbro, in the area contains abundant (MO'J'o) inclusions or

fragments of sedimentary and possibly intrusive rocks; the abundance of sedimentary inclusions

may account for the elevated S/Se ratio (sample WP-179: 8/86=13,000).

The current stripping and mapping program is aimed at determining the extent of the

sulphide mineralization at the "CJ" showing and its relationship, if any, to the magnetite

quartz gabbro dyke(s).

CURRENT PROGRAM________________________________________

On November 18th, 2003 Cecil Johnson supervised the stripping which took about 7 hours to

complete, not including the mobilization and demobilization time. A PH+690 excavator was

contracted from Erana Mines Limited of Lively, Ontario (float provided by Albert Transport,

Lively) at the rate of S90.95 per hour including the operator. Two areas were cleared to bedrock:

one is about 30x30 metres and the second is about 15x15 metres (Figure 3 and Map 1). Several

attempts were made to hit bedrock in areas of low relief but no outcrop was encountered at depths

of +2 metres overburden. In addition to supervising the excavator work, Cecil Johnson

established a picketed grid over the cleared area on November 18* and 19th, 2003. Poor weather

and the onset of winter did not allow for clean up of the stripped area so it was decided to leave

this portion of the program until Spring 2004.

On April 8* and 13th, 2004, the picketed grid was re-established and extended, and geological

mapping at 1:500 scale was completed over the cleared area by Scott Jobin-Bevans, assisted by

Cecil Johnson (Map 1). The stripped area requires power washing to property clean up the

exposed bedrock for sampling and further mapping. It is because of this that no samples were

taken at this time.

Future work will include power washing of the cleared area, further 1:500 scale and

detailed geological mapping, and systematic grab and channel sampling of the "CJ" showing

and other areas of mineralization.

i stripped area

1043226

Whitefish Lake Indian Reserve

400 metres

Higure J. Location of the stripped area relative to the mining claim fabric (reciangle). The stripping took plate in unpatented claim S-1043226, about 30 metres east of the Whitefish Lake Indian Reserve boundary line. The outlined area is also the approximate location of the "CJ" sulphide showing(filled circle).

CERTIFICATE OF QUALIFICATION

I, Scott Jobin-Bevans of 1674 Latimer Crescent, Sudbury, Ontario, Canada, do hereby certify that:

1. I am a consulting geologist with the mineral exploration company Caracle Creek International Consulting Inc (CCIC Canada), with an office in Sudbury, Ontario, Canada.

2. I am a graduate of the University of Manitoba, Winnipeg, Manitoba with a B.Sc. (Mons.) Geology -1995, and M.Sc. Geology -1997.

3. I am a member of the Society of Economic Geologists, the Canadian Institute of Mining, Metallurgy and Petroleum and the Prospectors and Developers Association of Canada.

4. I have been an exploration geologist and prospector for more than 14 years.

5.1 am a member (#0183) of the Association of Professional Geoscientists of Ontario.

6. I have an active prospector's license for the province of Ontario (#1001178).

7. This report is intended to be an overview of the potential of the property or properties and/or a

specific geological program carried out on the property or properties with recommendations

and conclusions that are based solely on the available data. As principal author, I take full

responsibility for the information presented herein and for the recommendations made on the

basis of the data.

Scott Jobin-Bevans (B.Sc., M.Sc. Geology) April 14th, 2004, APGO Member #0183

Attachments: Map l (1:500 scale)

LEGENDvery fine-grained; quartz gabbro dyke; sediment inclusions; S-5% pyrite with trace pyrrhotite; sharp contacts with gabbro; 4a. non-magnetic (generally el Ocm wide) 4b. strongly magnetic (generally H Ocm wide)

Nipissing Gabbro; coarse- to medium-grained; altered gabbro; locally pegmatitic; S-5% Cu-Ni sulphide up to 1007o in patches; coarse sulphide mainly associated with pegmatitic areas; CJ SHOWING

Nipissing Gabbro; medium- to coarse-grained; altered gabbro; massive; patches of quartz-feldspar intergrowth occurring as "golfball" size nodules; about 5Vo fine-grained and chloritized mafic matrix

Q Nipissing Gabbro; fine- to medium-grained; massive gabbronorite (orthopyroxene gabbro); generally ^Q'fa orthopyroxene (looks fresh); no magnetite; areas oi^'fa orthopyroxene; trace pyrite/pyrrhotite

MAPIMakada Lake Property Waters Twp., Ontario April 13th, 2004 (drafted by S. Jobin-Bevans)

Approximate centre of "CJ" showing: 489404mE, 5136490mN NAD83, Zone 17

-100mE

-X , dyke ji \ j i

boundary of stripping apprqx. 15x15m area

87.5mE

grid line: 35 Az

mag. declination^ 1W 1:500 scale

.--""TRAIL /"

Cut Line/Surveyed 350 Az/

Whitefish Lake Reserve Lands

S (covered)

en o

-75mE

-62.5mE

-50mE

37.5mE

CJ SHOWING

-25mE

dyke

-12.5mE

boundary of stripping approx. 30x30m area

OOmE

Southwest portion oi the stripped area at the Makada lake property, Waters Township, Ontario. Cecil Johnson is standing just behind the "CJ" or "Cecil Johnson" showing. Note the thin cover of dirt and rubble that covers the bedrock as well as the patches of snow.

ONTMIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Transaction No:

Recording Date:

Approval Date:

Client(s):

392366

Survey Type(s):

W0470.00579

2004-APR-15

2004-APR-16

Work Report Summary

Status: APPROVED

Work Done from: 2003-NOV-18

to: 2004-APR-09

KOSOVSKY, MARIETTA RAUHALA

GEOL PSTRIP

Work Report Details:

Claim# Perform

S 1043225 SO

S 1043226 52,413

S 1223074 SO

S 1223188 SO

52,413

External Credits:

Reserve:

Perform Approve Applied

SO 5400

52,413 SO

SO S400

SO 5800

52,413 31,600

SO

S813 Reserve of Work

S813 Total Remaining

Applied Approve

S400

SO

S400

S800

31,600

Assign

SO

51,600

SO

SO

51,600

Assign Approve Reserve

0 SO

1,600 S813

0 SO

0 SO

51,600 S813

Reserve Approve Due Date

SO 2005-APR-28

S813 2005-APR-28

SO 2005-APR-15

SO 2005-APR-15

S813

Report*: W0470. 00579

Status of claim is based on information currently on record.

41I06NE2014 2.27509 WATERS 900

2004-Apr-26 09:57 armstrong-d Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date: 2004-APR-22

Ministere du D^veloppement du Nord et des Mines Ontario

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

MARIETTA RAUHALA KOSOVSKY433 EAST, 56 STREET3RD FLOORNEW YORK, NEW YORK10022 UNITED STATES

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

Dear Sir or Madam

Submission Number: 2.27509 Transaction Number(s): W0470.00579

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.

If you have any question regarding this correspondence, please contact STEVEN BENETEAU by email at sieve.beneteau@ndm.gov.on.ea or by phone at (705) 670-5855.

Yours Sincerely,

/P.Ron C. GashinskiSenior Manager, Mining Lands Section

Gc: Resident Geologist

Laurence Scott Jobin-Bevans (Agent)

Assessment File Library

Marietta Rauhala Kosovsky (Claim Holder)

Marietta Rauhala Kosovsky (Assessment Office)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:19326

41I06NE2014 2.27509 WATERS 200

UTM Zona 17 5000m jrld

Those wishing to stake mining claims should consult with the Provincial Mining Recorders' Office of the Ministry of Northern Development and Mines for additional General Information and Limitations Information on the status of the lands shown pereon. This map is not Intended for navigational, survey, or land title determination purposes as the information Contact Information: shown on this map la compiled from various sources. Completeness and accuracy are not guaranteed. Additional information may also be obtained through the local Land Titles or Registry Office., or the Ministry of Natural Resources.

The information shown ts derived from digital data available in the Provincial Mining Recorders' Offioe at the time of downloading from the Ministry of Northern Development and Mines web site.

This map may not show unregistered land tenure and interests inToll Free Map Datum: NAD 83 lantl including certain patents, leases, easements, right of ways,

Provincial Mining Recorders' Office Tel: 1 (888) 415-9845 ext 57IPBijection: UTM (6 degree,) flooding rights, licences^or other forms of disposition of rights and Willet Green Miller Centre 933 Ramsey Lake Road Fax; 1 (877) 670-1444 Topographic Data Source: Land Information Ontario Interest from tha Crown. Also certain land tenure and land uses Sudbury ON P3E 6B5 Mining Land Tenure Source: Provincial Mining Recorders' Office lhi" restrict or prohibit free entry to stake mining claims may not be Home Page: www.mndm.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm illustrated.

ONTARIOCANADA

MINISTRY OF NORTHERN DEVELOPMENT AND MINES

PROVINCIAL MININO RECORDER'S OFFICE

Mining Land Tenure Map

Date l Time of Issue: Tue Apr 27 14:53:10 EOT 2004

TOWNSHIP l AREA PLAN WATERS 6-4120

ADMINISTRATIVE DISTRICTS l DIVISIONS

Mining DivisionLand Titles/Registry DivisionMinistry of Natural Resources District

SudburySUDBURY

SUDBURY

TOPOGRAPHIC

j Administrative Boundaries

; i Township

Concession, Lot

Provincial Park

Indian Reserve

ciiff, pit a RIO

e

A

Contour

Mi Shafts

Mine Headframe

Railway

Road

Trail

Natural Gas Pipeline

Utilities

Tower

Land Tenure

Freehold Patent

pjn Surface And Mining Rlohls

FjJ"] Surface Rlohls Only

f" J] Mining Rights Only

Leasehold Patent

(*J~1 Sgrface And Mining Rights

Ffi Surface Rights Only

Pg"l Mining Rights Only

Licence of Occupation

;" ' Uioi Not apeeifled

rf] Surface And Mining Rights

[j "j Surface Right* Only

Miring RiglW OnlyE2Land Use Permit

Ortter In Council (Not open tor slaking)

Water Power Lease Agreement

""" Mining Claim

1234567Plod Only Mining Claim

LAND TENURE WITHDRAWALSf;:::"rr . \"''\

'C ! i?84 ! AfBB* Withdrawn fmm Disposition

Mining Acts Withdrawal Typos Wsm SuHace And Mining Ri(jWa WiHldniwn Ws Suite Rlglib (My Withdrawn Wm Mining Rights Only Wlllldrmm

Order In Connell Withdrawal Types Warn Burtace And Mining Riohb Wttndrawn W"* Surface Rights Oily Withdrawn W"m Mining Rights Only Wllhdrtiwn

! Ns ; ! IMPORTANT NOTICES

8cil* 1:41000

LAND TENURE WITHDRAWAL DESCRIPTIONSIdentifier Type Date Description

7147 Wsm Jan 1,2001 THE CORPORATION OF THE TOWN OF LIVELY7216 Wsm Jan 1,2001 P3128-14W-LL-C1S7 Wsm Jan 30, 2002 ^ href-" http://www.mndm.gov.on.

caMNDMMINESAANDS*vleg^gtlks#002ordersAvllo157-02.htm "* W- C157/02 ONT MiS withdrawal S.35 Mining Act RSO 1999, 30/01/02 B generally depicts area withdrawn Click to view actual area withdrawn <

W-LL-C210 Wsm Feb 26,2002 ea hrvf*" http://www.mndm.gov.on.ra/MNDM/MINES/LANDS/Meg/gtlks/ZQOaorderB/wllcaiD^.htm ^ W- C210 ONT MSS withdrawal S.3S Mining Act RSO 1999. 26/02/02 Bour generally depicts area withdrawn Click to view actual area withdrawn <

W-S-11/94 WS Feb 22, 1994 POTENTIAL ROAD W-S-11/94 22/02/94 S.R.O. 195160W-S-31-02 Wwn M 2, 2002 Sea. 3S RSO 1890 Mining and Surface Rights July 2, 2002 Filo: 18511W.-S-11/94 W* Feb 22, 1994 POTENTIAL ROAD W.-S-11/94 22/02/94 S.R.O. 1951SO