Proton Magnetics -Caustic Dissolution Summary Report

•

Proton Magnetics - Caustic Dissolution

Summary Report for

3814793 Canada Inc.

Wawa Area, District of Sault Ste. Marie Ontario

NTS 42-C 12

by

F.T. Archibald, B.Sc.Geologlst P.Geo. March 31, 2005

Table of Contents

~ Page

Summary 1 Property Description 3 Property Location & Access 4 Local Resources & Topography 5 History 6 Chart of Gold Occu rrences 9 Chart of Diamond Occurrences 10 Regional Geology 11 Chart of Lithologic Units 13 Local Geology 14 Structural Geology 15 Property Geology 16 Economic Geology 18 Proton Magnetometer Specifics 20 Results of Proton Magnetometer Survey 21 Results of Rock Sampling PrograM 22 Results of Exploration 22 Results of Caustic Dissolution 23 Conclusions & Interpretations 24 Certificate of Author 25 References 26

Appendix A Appendix B Appendix C Appendix D Appendix E

Plate A Plate B Plate C Plate D Plate E

Appendix

Description and Location of Samples X3 SGS Lakefield Microdiamond Analyses X3 SGS Lakefield Study Assay Certificates Expenditures

plates

Property Location Plan Property Location Plan with grid Claim Abstract Information Invoice Copies Property Expenditure Breakdown

Summary-The property is located in the Wawa area of Northcentral Ontario and

covers an area in which several discoveries of gold. iron, and diamonds have been discovered. The property is situated approximately twenty-five kilometers north of Wawa along the east side of Highway #101 and has good accessibility by paved road and gravelled timber roads.

This report consists of proton magnetometer results and caustic dissolution results of samples on claims 1243368 and 1243382 in Leclaire Township. It also contains additional geological compilations and rock chemical compositions (not charged for in this report) which will be detailed and included in follow-up reports.

Sections of the property were mapped several times between 1902 and 1996 by Coleman and Wilmott (1902), Collins (1926), Gledhill (1927), Moore (1931 and 1948), and Ron Sage (Ontario Geological Survey) 1979 through 1985 ,1996). The northern portions of the property are underlain by mafic metavolcanic basalt-'fIows and the southern parts by felsic pyroclastic tuffs; all units intercalated with gabbro and peridotite intrusives.

Diamonds in the Wawa area have been located within three types of rocks: actinolite-spessartite with peridotite xenolith bearing lamproite dykes (sphene-rutile rich, intrusive and extrusive varieties), heterolithic breccia zones related to specific peridotite phases, and biotite-amphibole rich lamprophyres with actinolite-tuff inclusions.

This report has been prepared for 3814793 Canada Inc. for assessment work purposes to keep the property in good standing for at least another year past the anniversary dates of April and May 2005. The work program consists of a proton magnetometer survey and rock analysis for caustic dissolution for diamonds. The proton magnetometer survey was run by F.T. Archibald I F.T. Archibald Consulting Ltd. from January 15 through 22, 2004 and the samples taken during November 14 and 15, 2004.The work was done on claims 1243368 and 1243382. A total of $10,801.15 was expended and applied to the group of claims.

Several heterolithic breccia dykes were sampled; of which three were sampled and sent for caustic dissolution for diamond extraction at SGSLakefield Labs in Lakefield, Ontario.

Some samples were sent in for whole rock determinations and multielement determinations to compare with results of similar diamond-bearing rocks in the area.

It has been determined that rock analyses with the following composition ranges have potential for diamonds. These are:

44.9-59.5% Si02 4.2-8.9% MgO

0.20-1.35% K20 0.53-1.25% Ti02 0.04-0.12% Cr203 12.5-15.3% A1203

2

Rocks from the pyroclastic tuff rocks on claim 1243368 have the following chemical composition (values in percentages): Sample #SjQ2. AI203 QaQ .MgQ Na20 ~ Fe?03 MDQ IiQ2. ~ Cr203

52231 63.44 15.80 4.02 1.57 2.88 0.93 8.33 0.28 0.48 0.07 0.04

None of the samples sent out for caustic fusion returned diamonds.

3 Property Description-

The group of claims is situated within Corbiere Township. This property is situated within the District of Algoma which is situated in the Mining District Sault Ste. Marie area of Northwestern Ontario.

The proton magnetometer surveys were done on claims 1243368 and 1243382 and run during the month of January 2004. The samples for diamond determinations were taken from claim 1243382 and taken during the month of November 2004.

The claim group, in two contiguous groups, is numbered as follows:

3814793 CANADA INC. --- CLAIM STATUS

UNPATENTED CLAIMS - Corblere Township

Claimtl Units t:Jectares Qu~lat~ A~~~~m~nt B~ui~ £lIil Co[lligUgU~ ~[QUg 1 1243399 4 64 April 23,2005 1600 1243398 1 16 April 23,2005 400 1243397 1 16 April 23, 2005 400 1243383 1 16 April 23.2005 400 1243385 3 48 April 23. 2005 1200 1243382 3 48 April 23, 2005 1200

QgDligUQU~ ~[QUg ~ 1243368 1 16 May 27.2005 400

228 hectares total

4 Property Location & Access-

The claim group is two contiguous groups which is made up of seven unpatented crown-land claim groups totalling fourteen units of sixteen hectares each; and within CorbiereTownship.

The property is located approximately twenty-five kilometers north of the town of Wawa . It is accessed from Trans Canada Highway north of the town of Wawa and south of the Dubruilville turnoff. The Magpie Mine road is taken eastward for some five kilometers to the property.

The east side of the property can also be accessed by taking a boat northward on the Magpte River from Steephill Falls.

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5 Local Resources & Topography-

The property is accessed by paved highway and has abundant water supply from lakes within the property boundaries. Power is available from a power-transmission line which traverses along Highway #17 or from lines which traverse the west side of the property.

Skilled and experienced workmen are available in Hawk Junction and Wawa. Several mines have recently closed down, including Algoma Steel and several gold mining producers. Housing and supplies are available in Wawa.

The north and west portions of the property are covered by gently undulating terrain and approximately five percent of the area is exposed outcrop. Tree cover consists of mature birch, poplar and spruce ranging from 10 to 30 centimetres in diameter. Over the southern and southeastern sections of the property are jackpine stands which were planted some twentY-'five years previously. The areas on the east side, northwest side, and south side of the property have been logged within the past five to six years.

6 History-

In 1988, R.P. Sage of the Ontario Geological Survey ( MNDM ) studied and reported on the area. Areas of Corbiere Township were mapped between 1988 and 1992.

In 1991, G.C. Clement Jr. collected samples from the Michipicoten River area near Wawa. Of the sixty possible diamonds observed, two of them approximately 1.13 and 1.05 carats were confirmed as diamonds by the Royal Ontario Museum. One of the diamonds was considered 1/2 of an octahedron, and was probably cracked in half during transport.

In the fall of 1993, Tom Morris of the Ontario Geological Survey, bulk sampled the Dead Creek and Wawa Creek areas, and confirmed that chrome pyrope garnets (G10) and diopside minerals were present. In the summer of 1994, Morris confirmed that diamond indicator minerals were more widespread in the areas northeast and east of the original discovery. This confirmation indicated that the original discovery was not glaciationtransported material but more likely from the Wawa area.

In the fall of 1995, Currie Rose Resources discovered four kimberlite dykes on Lagarde Hill along the boundary of McMurray and Lendrum Townships. The dykes became visible due to a washout caused by a breached beaver dam along Coleman Creek. In the same time, MNDM located another kimberlite dyke to the west of the Curry Rose Resources discovery, called the Nichols Dyke, which is in line of strike with the initial discovery and is possibly part of the same system. This dyke has been has been determined to be of the harzburgite xenolith ultramafic type. These discoveries initiated a staking rush over these nearby townships which are in line of strike with the kimberlite dykes.

In 1995, S. Surmacz sampled Trans Canada Highway #17 roadcuts in Laliberte Township (northwest of the property) and a 4.0 metre wide lamproite dyke returned six diamonds from 18.1 kg. of sample.

In 1996, S. Surmacz (Spider Res. Ltd.) observed 10 diamonds 'from a 31.6 kilogram sample and 54 diamonds from a 36.0 kilogram sample from Menzies Township to the west of the property.

In 1997, Canabrava Diamond Corp. sampled the Whitefish Lake area immediately east of Esquega Township and located two kimberlite dykes and twelve kimberlite dispersion haloes. Kennecott Canada Exploration Inc. optioned these properties in 1998, and since then have announced the discovery of two diamondiferous kimberlite boulders.

In 1988, diamonds were found by KWG in Laliberte Township, and the diamonds were contained in a unit associated with the Mildred Lake Fault, directly northwest of the property. One sample, 308.6 kilograms showed 97 diamonds (14 macrodiamonds).

7 In 1998, Spider Resources observed 95 diamonds (14 macro) from a

164.7 kilogram sample from a showing some 4.0 kilometres south of the Sandor Showing and on the west side of the Trans Canada Highway #17 (Menzies Township).

In the spring of 1998, Pele Mountain Resources Inc. found diamond associated with a 45 metre-wide lamproite dyke associated with the Mildred Lake Fault in La.liberte Township. At least nine other dykes were located in the vicinity the same year.

In early 2000, Band-Ore Resources Ltd. found diamonds in an area paralleling the Mildred Lake Fault. One 63.4 kg. sample yielded 45 diamonds (10 of which are macrodiamonds), and a 70.5 kg. sample yielded 10 diamonds (1 macrodiamond). These discoveries are immediately northwest of the property (in Musquash Twsp.). Additional sampling returned 100 microdiamonds from 108.4 kg. of sample.

A report prepared by Ron Sage dated March, 2000 has concluded that most of the diamond finds occur within younger rocks and that the main kimberlite sources are associated with the older rocks which are found in this area; rocks dating between 2696 Ma and 2705 Ma. Sage also reports that nickel, chromite, and cobalt are good indicator trace elements for diamondiferous kimberlites. Again, these elements are abundant in this area especially surrounding the Sunrise Lake Peridotite Complex.

In May of 2000, Band-Ore Resources Inc. reported 505 diamonds found in a 97.0 kilogram sample of drill core, and another containing 434 diamonds from 30.17 kilogram of drill core. This dyke is estimated to be 8.0 to 20.0 meteres in thickness.

In November 2000, Pele Mountain Resources Inc. recovered 62 diamonds from a 340 kilogram from an east-west trending lamproite dyke some 4.0 kilometres southeast of the original discovery (Northern Miner Nov.23,2000) and possibly associated with the Sandor occurence. All of these lamproite dyke systems are associated with the Mildred Lake Fault system.

In February of 2001, Canabrava Diamond Corp. and Navigator found 7 microdiamonds in 263 kilograms of kimberlite dyke (east of the property), and are presently processing 2.6 tonnes of material from the same dyke.

In March 2001 Band-Ore Resources reported 5119 diamonds (5054 microdiamonds and 65 macrodiamonds) were identified in 96 kilograms of sample from the "E" Zone, and that most of their diamondiferous zones are associated with northwesterly trending heterolithic breccias.

In March 2001 Pele Mountain Resources Inc. reported that five macrodiamonds were located from the P.C. Showing and Dr. Edward Walker (PetroLogic Inc.) indicated that this showing is possibly an overturned diatreme of 2700 Ma years in age. An additional 119.48

8 kilograms of samples from five veins returned 169 diamonds (Kennecott and Lakefield Labs) of which 13 are macrodiamonds. One of these samples was found some 1.5 km northwest of 8andore's "E" Zone and is believed to be an extension of this zone.

ln 2003, Joe Leadbetter reported finding three alluvial diamonds in the area; one averaging 1.04 carats and another averaging 1.4 carats. Through prospecting and bufk sampling techniques, Joe Leadbetter has found a number of diamond-bearing bedrock sources through the direction of F.T. Archibald Consulting Ltd ..

9

Chart 1 Gold Producers Located in McMurray Township

Name Rockl)!pe years Mined ronnes Mined Gm. Au Mined

Golden Reed granite (mafic volc.cont) 1907-1908 2.7 206 Cooper Mine mafic volc.{porph.cont) 1898-1939 4,449 44,671 Grace-Darwin mafric volc(granite dyke) 1902-1937 41,430 602,901 Parkhill mafic volcanics 1929-1938 114,458 1,861,601 Minto sheared granite-diorite 1929-1942 167,986 1,291,715 S.B.Smith tuff(porph.cont) 1935-1936 9,228 52,659 Hillside tuff-basalt(porph.cont) 1934-1935 182 7,679 Deep Lake mafic vole. 1936-1938 2,539 55,984 Stanley mafic volc.(granite cont) 1936 1,786 2880 Surluga mafic-porphyry cant. 1968-1989 82,041 274,915

Jub.iJee Mariposa Van Sickle Citadel

sheared granodjorite mafic volc.(granite dyke) granodior(& tuff) sheared granodiorite

(134,903 tonnes @ 10.1 gltonne Au remaining) 1929-1930 2,240 14,461 1904 8.2 579 1936 8,397 58,693 1989-1990 --------- 171,415

(After R.J.Rupert, 1975)

10 Chart 2 Diamond Analyses of LaHbert-Musquash Township Area ZQne Sample wt. Mic[QdjamQnd MacrodjamQnd IQtal Lab Analysis Name (Kg.) (#) (#) (#) Pele Mountain Resources Inc. Crista! 15.0 568 64 Kennecott Cristal 16.0 5 2 7 Lakefield Crista! 16.0 3 0 3 Lakefield Cristal 20.8 - 117 De Boers Cristal 84.5 --- 485 DeBoers Krug 20.10 51 4 55 Kennecott B1 31.98 30 1 31 Lakefield EastPerch 28.92 13 0 13 Lakefield WestPerch 23.48 6 0 6 Lakefield Salon 16.0 34 0 34 Lakefield Salon 8.0 16 0 16 Lakefield Moet 16.0 21 1 3 Lakefield Moet 8.0 6 3 9 SAC Moet 117.1 41 DeBoers Oom Perigo 100.4 422 12 434 SAC Pol Aoger 8.0 37 SAC VeuveCliquot 4.0 48 DeBoers Mumm 66.2 85 De80ers Genesis 17.0 306 2 308 Pele-indep. Deutz 19.3 14 0 14 Pele-indep. Pommery 21.0 18 0 18 Pele-indep. GeneSis West 19.4 50 1 51 Lake1ield-SGS GenesislCrystal 1074.0 2,434 Lakefield-SGS Band-Ore Resources Ltd. A Zone 296.0 - 14 SaskAesearchCouncH A-Zone 212.0 -- 648 SAC A-Zone 48.0kg. 198 9 207 SAC A-Zone 97.0 504 1 505 SAC(drillcore) A-Zone 30.17 434 0 434 SAC(drilicore) B-Zone 300.0 272 SRC C-Zone72.0 3 SAC D-Zone 520.0 76 SAC E-Zone96.0 5045 65 5,110 SAC E-Zone 24.0 5 31 36 SAC E-Zone 249.6 9.094 141 9,235 SAC E-ZoneNW 24.0 404 20 424 SAC E-ZoneNW 17.0 415 1 416 SAC E-ZoneNW 1043.1 20,482 373 20,855 Kennecott Aainbow Zone 54.0 1,700 21 1.721 Kennecott Aainbow Zone 401.9 2,744 7 2,751 Kennecott SE-F 40.7 53 3 56 Kennecott Engagement 406.0 12,000 340 12,340 Kennecott JA-27 69.0 25 0 25 Kennecott New-B 50.6 16 0 16 Kennecott Barnett Zone 270.8 330 3 333 Kennecott

After: (Pele Mtn.E-News Service,2001-07-30 to 2003-17-01, Bandore Press Aeleases 2000-2003)

11 Regional Geology-

The area was initially mapped by Goodwin (1963) followed by Leahy (1971) at a scale of 1: 31 ,680 for the Ontario Department of Mines. The region was last mapped in 1981 through 1984 by R.P. Sage of the Ontario Geotogical Survey at a scare of 1: 15.840. Traverses in the area were done at approximately 1/2 mile intervals but in some cases 1/4 mile intervals.

The.area is.underlain.by.fetgic.metavolcanics ;{m8inlyfapitH tuffs) am mafic metavolcanics (andesites & basalts) which are located within the southern Hmb of th&Michiptcoten Greenstone Bett. This belt occurs within the Wawa Subprovince of the Superior Province of the Canadian Shield. There are four metavolcanic :andmetasediment rock 1ypes r-ecognized within the Michipicoten Greenstone Belt (R.P. Sage, 1994). The belt is comprised of several sequences of Archean felsic to: mafic metavofcamcs with interbedded clastic metasediments and chemical metasediments (iron formation~. The 'maftCandfe·~ic-meta\1C)lpanic -units are of Arehean age. These units have been intruded by numerous stocks of granitic rocks and mafic to uitramafic rocks. Northw~~rlytrfmding ~ cut aUofth:e' other units.

The KaptlSkastng Structural Zone lies'betweerrLake SuperiorarttJ -the Hudson Bay Lowlands. The two major deep-seated faults are the oorthwesterl~rtrendingMildredLakeFauft'and the,Wawa:Lake .. Fauft;.· Kapuskasing Fault trending in an east-west direction. Both faults consists of fractured' crustal material that may host 'kimbertiti:c'roek formations (T.Morris, 1994). Proterozoic lamprophyre dykes formed from alkalic magmaemptacementextending fromtheWawa Lake Faull-Kapuskasing Fault (R.P. Sage, 1994). It is along these zones that there have been several recent di,amond discoveries ; such as the' high~grade'pipe 'at Attawatiskap. The Firesand Creek Fault lies at the contact between the overfyingfersic volcanics. and the underlying mafic volcanics.

Structural faults and rocks with strong or negative magnetic responses were plotted using 1981 airborne data and aerial photog.raphs in combination (OGS series 810006-810034; 1 :20,000). In 1994 and 1995 fiefd reconnaissance of the surrounding area using· this data uncovered several plutons of peridotite, pyroxenite, and gabbro. The peridotite and carbonatite structures are favoured for diamond emplacement and nickelcopper-platinum-palladium mineralization. Most of these units are associated with the two major fautt systems mentioned above previously.

The oldest volcanic cycle is approximately 2900 Ma and is best developed in Esquega Township, the western ·area of Lastheels Township, the eastern area of McMurray Township, and along the southern flank of the Michipicoten Greenstone Befi{A.C. WUson, May2000}. The youngest rocks are 2700 Ma and they underlie approximately fifty percent of the

12 Michipicoten ·GreenstoneBelts Cia ... Magpie 1ron Range} lHSage, 1:996).

Most of the overburden coverage was deposited by Late Wtsconsinian graciation with an ice direction of 165 degrees to 263 degrees (T.Morris, 1994).

Diamond dtscovefles have beenldenUftedin theareasurrourtding Leclaire Township. Since 1996, several diamond-bearing occurrences have been located· along the Mi-Jdred· Lake Fault system to the north (BandOre, KWG, Pele Mountain Resources), and along the Kapuskasing-Wawa Lake -Fault to theeasl(K-ennecott, Canabrava).

Chart 3

Table of Lithologic Units

Cenozoic Recent-stream till Pleistocene- glacial till

unconformity

13

Late Precambrian (Proterozoic) FiresandCarbonatite-d%mitic core rocks

gradational contact Firesand Carbonatite·- sHicocarbonatite rim rOCKS

intrusive contact Diabase Dykes

Early Precambrian (Archean) Fefsi·c rntrusives~ fefdspar porphyry & quartz-feldspar porphyry

intrusive contact lntermediateMetavolcanics- tuff flows Mafic Metavolcanics- basalt flows

14 , l.ocatGeotogy-

The OGS first mapped the area in 1963 (P184) and next in 1971 (P640). fn 1980 and 1981, f,lP. Sage of the OGSmapped the area lithologies surrounding the immediate vicinity of the property. The geology shows northeasterly and easterly trending iron formations within volcanic and sedimentary rocks, segmented by northeasterly, north, and northwesterfy trending faufts.

The area is generally underlain by mafic metavolcanic rocks (pillowed basalts), felsic metavo)canics (tuffs), and felsic intrusives (granite and porphyry). There are also several areas of ultramafic intrusives consisting of gabbro, pyroxenite, and peridotite; most of which are rocated along the Mildred Lake Fault. This fault passes through the property.

The central portions of the property are covered by Recent and Pleistocene glaciofluvial sand and gravel to a thickness exceeding over thirty metres in some rocations. Sampfing of this materiaf by backhoe show the glaciofluvial material to be made of rounded cobbles (5 to 20 centimetres in diameter) generally consisting of granitic rock, mafic volcanics, felsic volcanics, and carbonatite. In areas where bedrock was encountered, a cray fayer (fight brown to Ught grey) was observed for a few meters, mixed with coarse boulders, lying immediately above the bedrock and deposited in a glaciofluvial environment.

The ODM preliminary maps show the local geological trend to be in a northeasterfy direction. The geofogicaf trend observed on the property however, is north -south. To the north and northeast of the claim group the prominant direction is northeasterly, and to the south and southwest of the property the prominent faulting direction is southeasterly. There appears to be a transition of directionaf trend in the centraf section of the property. This may be influenced by the carbonatite complex which is one of the oldest units in the area {R;P. Sage, 1988).

15 Structural Geology-

Rock units and foliation trend northeast and easterly, and parallel with the Hawk Lake Gran'itic Complex. Within the deformation zones, complex deformation consisting of ductile-brittle shearing and multiple folding events is exhibited. The fimited exposure to crosscutting fabric refationships prevents more comprehensive structural interpretation; however at least three phases of deformation have been identified in the area. Most of the important mineralized zones are associated with the unconformity between the Vofcanic Cycre 1 and Cycfe 2. fn generaf the surphide rich iron formation which caps the end of Cycle 1 makes it attractive for gold, copper, and zinc deposits (Densle, 1991). They are characterized by steep schistocity (81) followed by flat schistocity (82) which result in isoclinal reclined to recumbent fords. The F2 fofds are reforded by moderate dipping schistocity (83). The 81 schistocity is locally developed from empacement of intrusions whereas the 82 and 83 schistocity are regional fabrics which correlate with the larger refolded regional structure associated with Volcanic Cycle 2 (Defisfe, 1991).

Faults and shears are grouped in four structural trends. From earliest to latest are: 160 degrees, 030 degrees, 045 to 065 degrees, and 080 to 110 degrees. Shear zones which host refolded quartz veins are characterized by ductife-brittre deformation and represent the rast two trends. The most significant gold-bearing veins in the area coincide with the 080 to 110 degree strains and have strong carbonate-biotite alteration. The 030 and 160 degree fabrics are generally of brittle deformation showing sinistraf dispfacement wheras the others show mainfy dextrar displacement. Younger northwest trending diabases which have cut the northeast trending quartz vein systems and show displacement. 80me structural trends show evidence of reactivation such as the 030 degree shears which cut the diabase. Lamprophyre and famproite dykes are seen within northwesterly trending and east-west trending shears.

Age determination of galena 'isotopes has given this area an age of 2696 Ma to 2705 Ma which indicates an older crustal development in this area of the Wawa Greenstone Beft CR.P.Sage, 1987). The order age corresponds to the ultramafic rich (peridotitic) heterolithic breccias in this area.

16 property Geology-

The property lies within the Abitibi-Michipicoten Greenstone Belt which is made up of intercalated Archean metavolcanics (mafic and felsic) and metasediments. These units have been intruded by younger syenites, granodiorites, gabbro, peridotite, quartz porphyry, and diabase.

The oldest units are rhyolitic pyroclastics, felsic metavolcanics, and iron formation which are found in the northwest portion of the property. These are intercalated with intermediate to mafic metavolcanics which are found in the west and centra[ portions of the property. These rower sequence units have been intruded by gabbro, diorite, and amphibolite. All of the above units have been later 'intruded by ultramafic gabbro, pyroxenites, and peridotites.

The youngest units are northwesterfy trending famprophyre (Iamproite) and quartz-breccia systems, and northwesterly trending diabase dyke systems up to 60 metres in width. Some of these are olivene rich, and some are biotite rich units. With exception of the diabase and ramprophyre units, the trend is northeasterry and dipping steepfy to the southeast.

1) Mafic to Intermediate Metavolcanic Rocks-These are prevafent on the west side and the north side of the cfaim

group. They are generally fine grained and massive to thinly laminated, and occur interbedded with layers of coarse grained flows. ln some cases goldbearing quartz veins occur along the contacts between the coarse and fine grained fractions. Pirrow structures are prevarent within the finer grained phases and also occur as plagioclase-phyric flows. 22 2lEeisic Metavolcanic Rocks-

These rocks are generarry prevarent in the southwestern portions of the property, and occur as interbedded layers up to fifteen metres in thickness. They occur as massive pyroclastic flows and as feldspar crystal tuff / laminated tuff.

3)Mafic / Ultramafic Intrusive Rocks-These occur as fine to coarse grained units, and range from pyroxene

rich to olivine rich. These rocks are generally dark grey to dark green in colour. The peridotite IS generally serpentin1te rich in the outer sections. A swarm of gabbro dykes and plutons occur in a northeasterly trend parallel to the north side of the Kapuskasing Faurt. They are generaffy fine to medium grained and hornblende rich. Some ultramafic fragmentals occur on the southwest side of Reed Lake.

17 4) Felsic lntrusives-

These rocks generally occur as northeasterly trending dykes and occur as quartz-ferdspar , ferdspar , and gromeroporphyritic varieties. Granodiorite plutons are prevalent with one being situated directly northeast of the Magp'ie Mine shaft. These rocks have weak schistoclty of 020 degrees to 040 degrees and are probably part of Volcanogenic Cycle 1.

5) Mafic Intrusives-These units cut a'll of the other units and are both northwesterly

trending and northeasterly trending (discordant and concordant respectivery). They are generarry bounded by distictive aphanitic chfffed 23 margins. Lamprophyre dykes, black In colour and biotite rich are prevalent structures radiating from the carbonatite complex and are of Proterozoic Age. Carbonatite-sificocarbonatite (carcitic) dykes, dispraying fine grained grey to reddish coloured layers, are also prevalent structures radiating from the carbonatite complex. These latter structures extend for a few kilometers beyond the complex contact. Diabase dykes, both olivine rich and pyroxene rich and ranging from a few metres to sixty metres in width, are found cutting all of the other units in a northwesterly direction. These dykes are generally coarse grained and speckled appearance (feldspar and pyroxene lath mixture).

18 Economic Geo1ogy-

This area has long been known for its gold and base metals potential. Chart 1 summarizes past gofd producers situated in the immediate vicinity. The area has also been known for its iron (siderite) potential. Mineralization has been observed In many different geological rOCK types and settings within the property and occurs as replacement deposits in quartz veins and in shear or breccia zones. The repfacement deposits are within peridotite rock units. The quartz veins are usually within Keewatin lavas near or adjacent to intrusive units. The mineraTIzed shear and breccia zones are within or along the contacts with porphyries or diabase units and within the Keewatin favas.

Copper-nickel-cobalt-platinum-palladium mineralization is associated wHh the contact areas of peridotite diatremes. The most significant of these is the Sunrise Lake Peridotite Complex which is a "wine-glass" shaped body (Tyi ng on its side j with two paraHer zones afong the contact areas and around the rim of this structure.

Diamonds are found within KimberTite host rOCKS and possible lamproite sources. Ultramafic rocks such as peridotites and eclogites fit similar descriptions as kimberrites. Varues are now being reported with average grades of 1.8 to 2.2 carats per ton (CPT) within pyroclastic tuff breccia un'its of considerable size; and diamonds of over 65~o clear and gem quality. Diamonds are found in garnet-bearing harzgurgite and rherzofite peridotitic rock (Gurney, 19S9). Orthopyroxene rich pyroxenites and dunites are however also possible ultramafic source rocks which could contain diamonds; with less than 40% and plus 900/0 oTIvine contents respectively.

Diamonds are thought to have formed before the empracement of the kimberlite bodies, and during rapid magma transit to the surface xenoliths of wall rOCK containing the diamonds are piCKed up and transported. What is unusual about the Wawa rocks is that the heavy minerars (with exception of chromites and a resser extent garnets) have been destroyed by a sufficient number of the gem-quality diamonds have been preserved. 11 is thought that diamonds are formed at depths between 150 to 200 kilometers (peridotitic) and depths greater than 300 kilometers (ecfogite) (Gurney, j9S9). tt is atso thought that during tectonic prate collision, carbon (calcitic limestone) or carbonate-bearing rocks rifted under the upper plates and gave rise to diamond- formation within the Upper Mantle. This is why Carbonatite complexes are significant in diamond expforation. Many of the diamond-bearing pipes In the worrd are rocated in close proximity to Carbonatite complexes; which are associated with deepseated fault structures.

Kimberlite occurs as cone- pipe structures (Kimberly Mine in South

19 Africa). sm structures (Lesotho Mines). and as dyke structures (Sierra Leone). These rocks consist of forty to ninty percent olivine rich ultramafics with heavy minerar suites consiting of pyrope garnet, ilmenite, spiner, corundum, zircon, rutile, and chromite. Lamproites occur with the same mineralogy but occur as flat":lylng bodies rather than '"cone''' shaped bodies.

Most kimberlite pipes range in size from 5 to 30 hectares and occur in crusters ranging from 6to 40 pipes in one area (Gurney, 1991). Most of the pipes in the northern part of Canada are small and less than 100 meters Wide (E.Thomas,2005) The Wawa diamond-bearing rocks are proving to contradictory to this as some primary diamondiferous structures of over 83.0 hectaress and consistentry ruamondiferous have recentry been located.

Carbonatite I potaSSic-rich complexes,especlally calcitic bearing units, are important structures which are commonly located in close proximity to kimberfite comprexes.

In summary, there is economic potential for both diamonds within the heteroTithic breccias (both primary and secondary sources) and base metals-PGE's within the peridotite units in the area. Both of these units are known to be interconnected and It is berreved they are crosery associated.

20

proton Magnetometer Survey-

The survey was completed with the use of the Exploranium

Geometrics "Unimag" proton magnetometer. It has a digital readout with a

sern*-th,4ty of plus Of m~nus ten gammas.

The accuracy of the readings is increased by averaging two or

three readings; or until the readings settle out to a normalized reading. The

range setectO'r ts changed up and down in areas where- there is- a high

magnetic noise, or until a station with a normalized reading is found.

The "world gamma range" setting on the instrument was brought

down to' a scale re.attve to the magnetics of the area when pIotttng the resultant readings. The instrument requires no calibration once the proper

range setting is found. The average range setting for his area is between

57,000 and 57,500 gammas. When pffitttng, the 57,500 is set at zero. Every few hours the readings are checked at a base station (on the base line) and

changes are noticed and corrected for drift.

Resutts are plotted at 1000 gamma tntervats, after plotting

corrections for daily and diurnal drift. Base plans are plotterd at a scale of 1

inch to 50 meters.

Stations are taken eve'ry 1'5.0 meters or 50' feet apart on Hnes

spaced at approximately 50 meters apart. The field work was carried out in

January of 2004. A total of 8.2 kilometers of survey was run on 8.2

kUOtlleters O'f Hoes cut in a northeaster~y dkection acrO'ss the regional strike

of the area.

The survey is useful in delineating iron formation, diabase dykes,

and geoologicat structure.

21

Results of proton Magnetometer Survey-

Approximately five kilometers of proton magnetometer survey

was carried out on cla~m 1243382 and 3.2 kilometers of survey carried out

on claim 1243366 respecttvety. These surveys are northwest and southeast

of the Magpie Iron Range which is an ankerite iron formation some 457

metres in length and 15.0 meters in width (A Lisowyk , 1987}. Both of the

surveys injtersectedthe- extensions of the Magpie Iron Hange.

The grids used bissected the geological strike at approximately

perpendicular or ninety degrees.

On claim 12433&2, a northwester~y trending iron formation of

approximately 15.0 to 30.0 meters in width was traced for some 550 meters

through the central portion of the claim and to the east of Reynolds Lake. In

the mid~portion of thectaim the iron formation is offset by~ some' 30~Oto50~O

meters (left lateral fault). On the same claim is a parallel diabase dyke (20

meter to 30 meter wide) structure to the iron formation which is up to 3000

to 4000 gammas higher than the surrounding rocks.

On claim 1243368, two parallel bands of iron formation were

traced in a northwesterly direction for some 400 to 500 meters across the

property, The main iron formation, associated with the Magpie Mine and

the zone that cut by the east side of Reynolds Lake, is some sixty meters in

width. This iron formation displays values 3000 to 4000 gammas above the

normal magnetic signature for the area.

, .

@ pond I'take

/' geological unit

~ confour

LEGEND • claim post

1000 GAMMA contour interval

mag tow L10S

road

reading station

line #

LECLAIRE TOWNSHIP

5.0 km grid

PROTON

PLATE D

1243382

r i -- .. ,

, 0' . \,\ '

MAGNETOMETER SURVEY

LEGEND

~ mag low

• claim post

D geological unit

pond / lake

Contour in

1000 GAMMA Intervals

3.2 km. grid

'b<":> \.,

PLATE D

LECLAIRE TOWNSHIP

SURVEY

1243368

, i-o 15 30

tETER

22 BockSampUng program-

Three samples of rock outcrop were sampled, using approximately 8.0 kirograms of rock from outcrop in-place, were sent in for caustic dissolution.

"Of interest for diamond potential is the footwall rock ()f the felsic pyroclastic tuft which underlies (and is overturned) the iron formation of the Magpie fron Range. Although this rock has been mapped as massive rhyodacite and rhyodacite breccia, it is in fact pyroclastic lapilli tuft breccia.

Sample DAH-1 was taken 31 0 meters east olPost 114 of claim 1243382 and on the northern claim line (50 meters east of Reynolds Lake).

Sampl"e DAH-':'2 was taken 500 meters east and tOUmeters south of Post #4 of claim 1243382 (140 meters southeast of DAH-1) and on the southwest side of the Magpie Mine Road.

Sample CHAB-15 was taken 550 meters east of Post #4 of claim 1243382 and 270 meters south of the north claim line; some 200 meters southeast of DAH-2 and 55 meters southwest of the Magpie Mine Road.

A description of the rocks are accompagnied in the Appendix of this report.

Although the rock was not sampled on claim t243368, previous owners of this land indicated that there are micro-diamonds in the surrounding rocks (Oasis, 2003).

23 Results of C~austic DissotutiOo-

The three samples sent in for caustic dissolution were supplied by the principa.ls 6f3'814793 Canada Inc. from the 10cations as indicated. These samples were perdsonally taken to SGS Lakefield Labs in Lakefield, OntariO for analysis for diamonds and not heavy minerai indicators. It is observed that the Wawa assemblage of rocks has not a heavy mineral element assemblage (other than Mg-chromite) for diamonds; possibly due to the destruction of the heavy mineral elements. Due to the good quality of the diamonds from the Wawa area, it is possibl"e that many of the inferior I poor quality diamonds are also destroyed. This indicates that some of the Wawa rocks have an extremelyhigh diamond count.

The three samples came back negative for diamonds. Diamond bearing rocks in the Wawa area displ"ay the following

characteristics; averages are as follows:

44.9-59.5% Si02 4.2~a:9% MgO

0.20-1.35% K20 0.53~1 .250/0 Ti02 0.04-0.12% Cr20a

Chemical composition of the felsic pyroclastic tuff breccia on claim 1243368 (central-west section) returned thefollowingcnemical composition (results in percentages):

Sample # SlQz. A1203,QaQ .MgQ Na20 ~ Ee?03 MnQ IiQa EM Cr203

52231 63.44 15.80 4.02 1.57 2.88 0.93 8.33 0.28 0.48 0.07 0.04

Although thrs sample result rs rnctuded to show a possrble relationship,theassayexpenditureisnot -included as.pan.of this "report and wi11 be filed with future ongoing reports. Although the silica content is higher than normal diamond bearing rocks for the area; the other compositions are consistent.

24 Conclusions-

The property is made up of two contiguous groups totalling some 228 hectares and surrounding lheMagpie Iron Mine.

The purpose of this exploration program was to delineate iron formation and diabase structures using ground proton magnetometer surveys. This was accomplished, and the Magpie Iron Range, inparticular the iron formation which underlies the Magpie Iron Mine, has been delineated by this survey.

Of particular interest are the associations of the Bandore and PelaMountain diamondfiferous zones in close proximity to certain diabase dyke structures and units of felsic and! or mafic pyroclastic tuff units which lie within the footwall structure below the iron formations.

The rocks are of hydrogen metasomatism altered within volcanic activity occurring on a marine seafloor environment and cooled by convection currents (Usowyk. 19"87). The Magpie Iron Range,consisting of a 15 meter thick I.mit of ankerite, is underlain by felsic pyroclastic tuff consisting of irregular chlorite 13-15%,mica, epidote T .. 9O/o 100/0, sphene 5%, serecite 22-40% , quartz 35-44%, albite 1-7%, and chert I ankerite 1-70/0 fragments.The "felsic tuff breccia lies under the Iron formation which consists of a siderite base which is overlain by chert. The tuff breccia is indicative of a phreatic event within the upper limits of the felsic volcanics in which the felsic volcanics were leached and the iron formations deposited (Easton, 1-g86). The felsic pyroclastic tuff breccia (within a zone of clastic metasediments) which lies at the faulted contact between basalts (hangwal1) to the north and basalts/felsic volcanics (footwall) to the south. Greenschist facies metamorphism affects the rocks in the area.

Chloritoid basalts and felsic pyrOClastic tuffs with increased Cr,Cu,V, Co, and V, and decreased Zn and Sa are observed around the Magpie Mine as a product of metasomatic alteration during structural deformation and introduction of carbonate and chlorite along the footwall of the Magpie Iron Range (ankerite type iron) (A.Lisowyk, 19"87). As are most of the Michipicoten iron formations the i ron was deposited at the end of a violent felsic pyroclastic succession .

Although the diamond results are negative, it is recommended that more detailed sampling "be done along the footwan contact below the Magpie Iron Range, and that the pyroclastic tuff breccia located at the westcentral location of claim 1243368 be sampled and sent in for caustic dissolution.

Concord, Ontario March 31, 2005 F.T. Archi bald,. S.Sc.P.Geo. APG0#1052

25 Certificate of Qualnjcations 1. I am an independent consulting mineral exploration geologist, and

have been engag~d in the geological profession continuously since graduation in 1978.

2. I have particular experience in exploring for diamonds, gold, base metars~ and other precious and industrial minerals. I have been a management consultant directly involved in the discovery and development of several gold and vermiculite deposits.

3. I am a graduate of Carleton University (B.Sc. 1978) in Geology

4. I was prior registered P.Geo. under OGQ Permit #618

5. I have practised as P.Geo. under Professional Engineers and Geoscientists of Newfoundland (Class A).

6. I am a registered I in good standing P.Geo. under APGO Permit #1052

7. I am qualified for writing reports under the National Instrument 43· 101.

8. I have been registered as Associate Member of the Vermiculite Association since 2000

9. My knowledge of the LeclaireTownship area has been carried on as an independent consultant for several clients since 1978.

10. My most recent visit to the property was in January, 2004

11 . This report is addressed to the Assessment Office of the Ministry of Northern Development & Mines and is provided for exclUsive use by the owner of the claim herein.

12. I have been given no stock and only consulting fees as consideration and act solety as an agent for 3814793 Canada Inc.

March 31,2005 Concord, Ontario ~

F.T.ArChibald, B.Sc. GeOlogist, B.Sc.P.Geo.

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Williams, F., 2002, Diamonds in Late Archean Calc-Alk. Lamprophyres of Wawa and Cobalt, Universtty of· Sydne-y TOOsis

Winzar,D. 2003. Gravity Survey over India-1 Kimberlite, De Beers Canada ExpJofatton Inc.

\.Alil~nn4 r 1)0(\(\ niam.nnds ~M nia""""nM .I=vnl-nratinn ~n ·thQ \A1!:::au/!:I ·4 ... .Q!:I .. ·V .. """" •• " , .. ""., '- ""v_, LJI I.,,,,,,I,U """.IU....,. "'UIIU ...... ",...,."". '-IV' ..... "'" ..... w,"",ww ...... , \1.....,.'-" ..

Wilton,D.,2002, Kimberlitic and Ultramafic Lamprophyre in Intrusives of Northern Labrador

Zalnierunas, R., 1995 Known Kimberlites in Ontario --- Map P3321

Property Expenditure Breakdown

Claim 1243382

5.0 km. linecutting @ $350Ikm------------5.0 km. proton magnetometer @ $134ikm---2 days A TV Isnowmobile @ $75/day------report + maps @ $350iday---------------Assaying M3695 --SGS Lakefield------Assaying. M3.697 ---SGS Laketiekl------Assaying M3715---SGS Lakefield-------

SUB-TOTAL Expenditures--------------------

Claim 1243368

3.2 km. linecutting @ $350Ikm-------------3.2 km. proton magnetometer @ $134ikm---2 days ATV Isnowmobile @ $75/day---------report + .maps @ $350iday-------------------

SUB-TOTAL Expenditures.----------------------

Total Expend itures--------------------------------

$1750.00 $ 670.00 $ 150.00 $ 685.00 $1802.95 $.1813 .. 65 $1792.25

$8663.85

$1120.00 $ 428.80 $ 150.00 $ 438.50

$2137 .. 30

$10,801.15

Appendix A

SAMPLE DAH-2 Description

Heterollthjc pyroclastic Breccia (mafic tuffaceous matrlx)-H ... -h+ ·h.tH· -b"'g" ..... ".0 .... -hl"' .... ""h"'d .., .... ~ roa ..... o .... '">+" .ric-h'">+ · ...... t4a,..e ,..""", ....... iog +" I .... h+ II~IIL '"'1.1"- vi v ",v, 1.1' ,",lvU""'v UI' .... '" I'"' I 'ULv II " UL ~I.I' I '" ""'U' I~I I LV II~ I.

grey-green with depth at less-oxidized layer with increase with slight chlorite content

with ,depth. Fragments,averaging 2 mm. to. 17 cm. diameter with felsic. fragments.

generally rounded to semi rounded (generally coarser fragments which are parallel

banding and plunging northeasterly) and mafic fragments sub-angular to angular and

finer grained with attitud,~ parallel tosut>-parallel to banding., Fragments average 3.0

percent to 70 percent of matrix. Some fragments. wisps. and shards of pinkish

carbonate. Up to 2.0-3.0% blue quartz eyes in matrixUnit strikes N17deg.W., some

fra9m~nt§ with m~fic(Qigtjt~ riqh ) rimming ~ng f,?i~iq (ffjlg§pathic riqh) rimming.

generally felsic bands with mafic to intermediate bands averaging 4.0 to 20.0 em. thick_

banded at 55 to 80 degrees to core axis (generally at 70 to 80 degrees to core axis), +-50"/0 rounded to semi anguiar fragments whieh average 2.0 to 4.0 em. diameter and.

are elongated with foliation axis, up to 2.0 to 3.0 % pyrite-pyrrhotite and minor

chalcopyrite as replacement within pyrrhotite, pyrite generally coarse cubes and

pyrrhotite generally lenticular I squeezed vugs and seamlets, up to 5.0 to 6.0%

sulphides in locallized sections, biotite I mafic rich vugs and cavities around fragments,

. carbonate rich.$ectLonswith pervasLvecarbonate wisPS, (fragments fel.sIc volcantcs,

syenita ca rhon ate fragments,. mafic volcanic fragments}. fine grained pyroclastics

Sample Coordinates- 5343205N - 668790E

SAMPLE DAH-l Description

Heterollthlc pyroclastic Breccia (mafic tuffaceous matrlx)-lO,..h+h"H h"'i-n'" ~"'~"'U'" bl·"''''·'''hr...-I·.,.n.-I ,..""' .. h .......... + ............ h . .,.+ .. ,.,....:""' ........... han ........... +0 li .... h+ II~II~ ..... UII- ..... vl;:,v ,",VIV I v(Avl'vU (AIIU v(A1 ..... VI 1(A~v Ilvl I (A~ ..JIUI l(Avv vI I I~III~ ~ I~I IL


with. depth. Fragments.averaging2 mm. to. t7 cm, djameter withfelsic.fr.agments.

generally. rounded to .semirounded (generally coarser fragments which are parallel

banding and plunging northeasterly) and mafic fragments sub-angular to angular and

finer grained. with attitude. paralleJ to. suo-paratleJ to banding .. fragments. a\lerage 30.

percent to .70 percent of .matrix. Some fragments. wisps. and shards of pinkish

carbonate. Up to 2.0-3.0% blue quartz eyes in matrixUnit strikes N17deg.W., some

fragments. with mafic (biotite rich). rimming. and. feisic (feJdspathic.rich) rimming.

generally felsic bands with mafic to intermediate bands averaging 4.0 to 20.0 cm. thick_

banded at 55 to 80 degrees to core axis (generally at 70 to 80 degrees to core axis), +-50'%) rounded to semi anguiar fragments which average 2.0 to 4.0 cm. diameter and

are elongated with foliation axis, up to 2.0 to 3.0 % pyrite-pyrrhotite and minor

chalcopyrite .as replacement within pyrrhotite, pyritegeneraHy coarse cubes and

pyrrhotite generally lenticular I squeezed vugs and seam lets, up to 5.0 to 6.0%

sulphides in locallized sections, biotite I mafic rich vugs and cavities around fragments,

carponaterich se.ctiQns witn pervasive car.bonate wiSPS, .(fragments felsiC volcanics,

syenite, carbonate fragments, mafic volcanic fragments), fine grained p.yracJastics

Sample Coordinates- 534331 ON - 668680E

SAMPLE CHAB .. 15 Description

Heterolithlc Pyroclastic Breccia (altered felsic lapllll tUff)-I .... ht h.·.ff h""' ....... .......! ......... bl ....... ·...lo.~· ... .-. f"W'>" .. '""'"' .............. i"""'" ... + ....... f'f. ........... """"' ........ "" ....... ~. li",,""+· II~ ,~ LJ .... II-LJv'~v vv.v..... vc..;';i iv .... c..i iU vc... LJV' .c...v "v" c..~ ,;, .... "c..Vv v"c..I'~I1I~ .V II~I"


with depth. With .inte.roanded ,se.re.cite and .chlorite flow.bandIng. COre gene.raUy

uncrenuJated with odd localized. crenulated section. Fragments averagjng 2 mm. to 17

cm. diameter (generally 1.0 to 4.0 cm. diameter) with felsic fragments generally

round.ed to sami Jounded ,(generally coarser ,fJagments w.hich are paralleJ banding and

plunging. northeasterly) and mafic fJagments sub-angular to angular and finer grained

with attitude parallel to sub-parallel to banding. Fragments average 30 percent to 70

percent of matrix and aithough sections vary .between coarse and fine .fragments the

size of fragments generally increases with depth or to the west Fragments made up of

altered actinolite, altered carbonatite, altered lapilli I crystal tuff, altered peridotite I

uitramafics(shards 3-4 mm iength) , aitered syenite" quartz porphyry. and chert

(generally sharp fragments which are elongated I stretched I aligned with banding

ax.is, Some. fr.agments. intrude. into. other. fragments. Some. feJsic fragments. are

disseminated.,pyrite rich (ie- felsic fragments. Loca II ized sections of pyrite (generally

coarse cubic to 2-3 mm) pyrhhotite (aligned with banding, chalcopyrite (blebs or

replacement. of pyrrt:lotita Pyrr.hotite and. ch.aJCDp.yrita increase with depth, Flow

banding in matrix with mixture of chlorite to carbonate .rich. Some fragments, wisps,

and shards of pinkish carbonate.

Sample Coordinates- 53432015N - 6683135N

Appendix B

NOTE:

SGS Lakefield Research Limited

MICRO DIAMOND EXTRACTION, SELECTION AND DESCRIPTION

prepared for

3814793 Canada Inc.

8901-387 LlMS M10001-DEC04 January 21, 2005

This report refers to the samples as received.

The practice of this Company in issuing reports of this nature is to require the recipient not to publish the report or any part thereof without the written consent of SGS Lakefield Research Limited.

Lakefield Research

SGS Lakefield Research LJmited P.O. Box 4300,185 Concession Street, Lakefield, Ontario, Canada KOL 2HO Tel: (705) 652·2000 Fax: (705) 652·6365 www.sgslakefield.com www.sgs.com

Member of SGS SA Group

'':I' =

3814793 Canada Inc. 8901..Ja7 UMS#MIOOO1-DEC04

, Summary ,

Diamond exploration Services SGS lakefield Research Umited

Microdiamond Extraction, Selection and Description

Microdiamond extraction, selection and description was performed for one sample,

identified as DAH-2. Caustic dissolution residues were collected on a 150 mesh (100

J-lm) screen, then submitted for Frantz magnetic separation to isolate the microdiamonds

in the non-paramagnetic fraction. All results are reported as a Certificate of Analysis in

Appendix A.

A detailed description of the microdiamond extraction process, as well as a generalized

processing 'flow sheet, may be found in Appendix B.

As part of our on-going commitment to providing a high quality service and to monitor

the recovery efficiency of sample material in each kiln pot, we put spikes in each sample

and recovered these spikes at the end of the process during microdiamond selection.

The recovery of coarse, 35 mesh spikes in this group of samples was 100% and the

recovery of relatively fine, 80 mesh spikes was 100%.

SGS Lakefield Research Limited January 18, 2005

Kim Gibbs, .B.Sc. Mineralogist

Hug e ouza, Ph.D., P.Geo. Group Leader· Diamond Exploration Services

Technical Support: Rob Gill, Scott Young, Krista Henderson, Tracy Gill and Zakia AI Haddad

2

"Y =

3314793 Canada Inc. 8901.-387 UMSlMIOOO1·DEC04

APPENDIX A

Diamond Exploration Services 5GS lakefield Research Umlted

CERTIFICATE OF ANALYSIS RESULTS OF MICRODIAMOND

EXTRACTION, SELECTION AND DESCRIPTION

3

~ =

SGS Lakerleld Research Limited P.O. BoX 4300 - 185 Concession SI. Lakefield. Ontario· KOL 2HO Phone: 705·652·2038 FAX: 705-652-6441

Canadalnc.-3814793

307 Michipicoten Ave. PO Box 97 Wawa. ON, POS 1 KO Canada

Phone: Fax:

Lakefield Wednesday, January 19, 2005

Date Rec.: LR Report: Project: Client Ref:

19 January 2005 M19003-JAN05 8901-461 LR2403608

CERTIFICATE OF ANALYSIS

Sample 10 *Caustlc Wt *Dia *Dia *Total - kg # (ct) pours

1: DAH-2 9.01 0 0.000 2

e ei Oiamon Selection Specialist

Email: deb.deluco@ rogers.com

~~ Page lor 1 . rted rep~nts the sample submitted to SGS Lakeneld Research. Reproduction of this analytical report In full or In part Is pn>hlblted without prior written approval.

SG~ SGS Lakefield Research Umited 185 Concession St., Box 4300

Lakefield, Ontario KOL 2HO, CANADA

Tel: (705) 652-2112 Fax: (705) 652-3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901-387 Client: 3814793 Canada Inc.

Mesh Fraction

+6 Ferromagnetic Non-mag

-6+20 Ferromagnetic Non-mag

+ 150 Ferromagnetic Mag

-20+150 Paramagnetic Mag (0.1 amp)

Paramagnetic Mag (0.3 amp)

Diamagnetic Mag (0.5 amp)

Diamagnetic Non-mag (0.5 amp)

Sample Weight: 9.01 kg Num~r of Syndites: 0

Date: January 6, 2005

LIM:S No. MIOOO1-DEC04 Sample No. DAH-2

Dissolution Residue Description

Not applicable

Oxides and silicates

Oxides (scales)

Not applicable

Not applicable

Not applicable


Total Weight (carats)*: 0.000 Number of Diamonds: 0

• Toul Weight (ca.rats) was calculated from mg weights. All reported mg weights are measured to within 0.002 mg.

Note:

Selection and Description lakia Al Haddad Mineralogy Technician

Quality Control Tracy Gill Mineralogy Technician

-5GS Lakefield Research Limited is not responsible for the determination of the origin. quality or value of any diamonds recovered. Each +35 mesh (Tyler sieve; +0.420 mm) stone was individually weighed. and the ·35 mesh stones were weighed in groups. Stone dimensions are limited to accuracy of three dimensional measurements of irregular shapes using a petrographic microscope. '

Accredited by the Standards Council a/Canada. to the [SOIlEC Guide 25 standard/or specific registered tests.

SG~ SGS Lakefield Research Limited 185 Concession St., Box 4300 Lakefield, Ontario KOL 2HO, CANADA

Tel: (705) 652-2112 Fax: (705) 652-3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901·387

Client: 3814793 Canada Inc.

" >. c:-<II";;j

" ::l 0" .0 .-.- > .... .-u" '" c: II) -

Q" II)

'" .s:: II) 01) c: .-o II)

~~

"0

~-1l .- >..s:: ~ ~.~ o ::l II)

Q:'2~ '" .~ §-~ -g e 9-0 CIl

Diamond Number of Size Fractions Stones in Group

+4.75 nun 0 - 4.75 / + 3.35 nun 0 - 3.35 / + 2.36 nun 0 - 2.36/ + 1.70 nun 0 - 1.70/+ 1.18 nun 0 - 1.18/ + 0.85 nun 0 -850 / + 600 Jl.ID 0

-600 / + 425 fJ.ID 0 -425 / + 300 fJ.ID 0 -300 / +212 fJ.ffi 0 -212/ + 150fJ.ffi 0 -150/ +105 gm 0

TOTAL 0

Sample Weight: 9.01 kg Number of Syndites: 0


LIMS No. MIOOOI-DEC04 Sample No. DAH·2

Group Weight Group Carats (mg) (calculated) 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000

0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000


* Total Weight (carats) was calculated from mg weights. All reported mg weights are weighed to within 0.002 mg.

Selection and Description

Zakia Al Haddad Mineralogy Technician

Note:

Quality Control

Tracy Gill Mineralogy Technician

SGS Lakefield Research Limited is not responsible for the determination of the origin. quality or value of any diamonds recovered. Each +35 mesh (fyler sieve; +0.420 mm) stone was individually weighed, and the ·35 mesh stones were weighed in groups.

Accredited by the Standards Council o/CatUU!.a to the ISOIIEC Guide 25 standard/or specific registered tests.

Page 1

".,," .

-SGS LAKEFIELD RESEARCH LIMITED P.o. Bag 4300, 185 Concession Street, Lakefield, Ontario KOL 2HO

Phone: 705-652-2112 Fax: 705-652-3123

January 6, 2005

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION

Project: 8901·387


No.1 Stone Dimension mm I Weight I I X I y I z I mg I Carats I Colour I

+ 4.75 mm fraction o I I I I I 0.000000 I I a I 0.000 I 0.000000 ,Sub-Total

-4.75/+ 3.35 mm fract/on o I I I I I 0.000000 I I o I 0.000 I 0.000000 ISub-Total

-3.35/ + 2.36 mm fract/on o I I I I I 0.000000 I I o I 0.000 I 0.000000 ) Sub-Total

-2.36/+ 1.70 mm fraction o I I I I I 0.000000 I I 01 0.000 I 0.000000 I Sub-Total

-1.70/+ 1.18 mm fraction o I J I I I 0.000000 I I a I 0.000 I 0.000000 ,Sub-Total

-1.18/+ 0.85 mm fraction o I I I I I 0.000000 I 1 o , 0.000 I 0.000000 ISub-Total

I Percent T Clarity 1 Preservation r

I I

I I

I I

I T

I I

I T

LllvfS No. MIO001·DEC04 Sample No. DAH·2

Sample Weight: 9.01 kg

Stone Description Morphology

,

Page 2

SGS LAKEFIELD RESEARCH LIMITED January 6, 2005 P.o. Bag 4300, 185 Concession Street. Lakefield, Ontario KOL 2HO

Phone; 705-652-2112 Fax: 705·652·3123


Project: 8901-387 LIMS No. MIO001-DEC04 Sample No. DAH-2

Client: 3814793 Canada Inc. Sample Weight: 9.01 kg

No.1 Stone DImension mm I Weight I I Percent I Stone Description

I X I y I z I mg I Carats 1 Colour I Clarity I Preservallon I Morphology

-8501+ 600 JIm fraction o I I I I I 0.000000 I I I I oJ 0.000 I 0.000000 ISub-Total

-6001+ 425 JIm fract/on o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

-4251 + 300 JIm fract/on , o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

-3001+ 212 pm fraction o I I I I I 0.000000 I J I T o I 0.000 I 0.000000 ISub-Total

-212/ + 150 JIm fract/on o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

-150/+ 105Jlm fraction o I I I I I 0.000000 I I I 1 o I 0.000 I 0.000000 I Sub-Total

I 0 I I 0.000000 ITOT AL

Note 1: Diamond Fragments· No Crystal Faces - Preservation (Resorption) cannot be estimated.

"'" Page 3

3814793 Canada Inc. 8901-387 UMS#MIOOO1-DEC04

APPENDIX B

Diamond exploration Services SGS lakefield Research Umlted

EXPLANATION OF MICRODIAMOND EXTRACTION AND SELECTION PROCEDURE AND FLOWSHEET

4

3814793 Canada Inc. 8901-387 UMS'MIOO01·DEC04

Diamond exploration Services SGS Lakefield Research Umlted

DIAMOND EXTRACTION BY CAUSTIC DISSOLUTION ,

Introduction

Caustic dissolution of exploration samples efficiently produces a concentrate from which diamonds can readily be extracted during microscopic examination. The process takes advantage of diamond's property of high resistance to caustic soda (NaOH), eliminating diamond size reduction and loss that often occurs during extraction procedures that rely on crushing and attrition milling.

Procedure

The samples are processed according to the attached flowsheet. Very few minerals survive the harsh chemical attack, therefore weight reductions commonly exceed 99% of the initial sample weight.

As~received samples are divided into equally sized charges of less than 8 kg. Smaller charge if sizes are necessary if the sample contains a high proportion of carbonate minerals, which are vigorously reactive with NaOH (the carbonate content is evaluated by an acid test prior to charge preparation). If a high proportion of the sample is composed of fragments larger than 8 cm, simple breakage, crushing or attrition milling may be required for an effective dissolution, or the length of the dissolution process may be increased. Client consultation and approval is necessary before any size reduction of the sample is initiated.

After digestion in molten caustic soda, the sample is poured onto a large-diameter 150 mesh (100 J.lm) screen. The + 150 mesh residue is liberated from the NaOH by washing the sample in a series of water and acid leach (HCI) baths. Once all of the NaOH is dissolved and removed, the concentrate is dried and screened on a 6 mesh screen to remove undigested material. The undigested material is examined microscopically by a mineralogist. If a significant amount of +6 mesh remains, or if the material consists of possible diamondiferous rock fragments, further digestion may be required. If the undigested material is of inSignificant size or not considered as a possible source of diamonds, the -6 mesh residue is further processed by a two (possibly three if the residue is large) stage magnetic separation prOCedure utilising a permanent magnet and a Frantz Barrier Magnetic Separator.

The magnetically characterised residue is then submitted for microscopic examination and diamond selection. In addition to diamonds, the residue may contain partially undigested indicator minerals, colourless to opaque spinel, garnet, ilmenite, graphite, moissanite, zircon and kyanite. Each of the magnetic fractions is examined at a magnification of 40x using a binocular microscope. Grains of questionable mineralogy are examined using a scanning electron microscope equipped with an energy dispersive spectral (SEM-EDS) analyser. Although each magnetically characterised fraction is examined, particular emphasis is given to the diamagnetiC portion.

The X, Y and Z dimensions of selected microdiamonds are measured in millimetres. Macrodiamonds are weighed individually while microdiamonds are weighed in groups of 20 or 30, with the milligram weight, in each case, converted to carats. The colour, clarity and morphology of each diamond are determined and all observations reported in a Certificate of Analysis. Synthetic diamonds released into a sample by diamond drill bits are selected and reported as "syndites" on the diamond description sheet.

5

3814793 Canada Inc. 8901 ~7 UMSlMlOOO1 -DEC04

Quality Control

Diamond Exploration Services SGS lakefield Research Umited

Routine quality control tests are utilized to evaluate the efficiency of the caustic dissolution processing technique, by spiking client samples with two sizes (35 mesh and 80 mesh) of synthetic diamonds (easily identifiable, colour treated diamond fragments. Recovery of the diamond spikes typically ranges from 97 to 100%, and for 2002 was 98.2%. Further 2002 statistics showed that an average of 1.18 indicator mineral grains (73% of which were oxides, 27% silicates) were carried over into the caustic soda blanks run between different client's samples.

Each caustic dissolution residue is picked twice by separate diamond pickers. Questionable grains are examined by SEM-EDS for verification.

Every effort is made at each stage of sample handling during caustic dissolution, residue preparation and diamond picking to eliminate the possibility of contamination. These steps include:

• A rigorous sample tracking procedure.

• Dedicated screens and equipment for each sample during sample processing.

• Replacement of screens between each sample after pouring caustic soda.

• Thorough washing and scrubbing of all sample containers.

• Thorough cleaning of equipment used to prepare caustic residues between each

processed sample.

• Sandblasting of each kiln pot between clients projects to ensure the removal of any

microdiamonds or indicator minerals.

Customized flowsheets for sample processing utilising caustic dissolution and other sample preparation techniques (magnetic, gravity, flotation, acid leaching, etc.) can be developed, in consultation with the client, to meet specialised requirements.

SGS Lakefield Research limited is not responsible for the determination of the origin, quality or valuation of any diamonds recovered unless otherwise instructed by the client.

6

i

\ \

\

3814793 Canada Inc. 8901-387 UMS'MIOOO1-DEC04

Diamond Exploration Services SGS lakefield Research Umlted

Caustic Dissolution for Microdiamond Recovery

SAMPLE PREPARATION (as instructed by client,

includes drying)

DISSOLUTION (Molten NaOH)

1 Collect Residue

(150 mesh screenl

WATER WASH AND ACID LEACH RESIDUE

HOT ACID LEACH (HCI)

DRY AND REMOVE FERROMAGNETICS

FRANTZ MAGNETIC SEPARATION

1 MICROSCOPE EXAMINATION

DIAMOND SELECTION

7

(373) Canada Inc. - 3814793 307 Michipicoten Ave. PO Box 97 Wllwa,ON Canada, POS lKO Attn : Gary Deluco Reference: LR2403608

Qty Analysis Description

M3695

Printed; January 24, 2005 Received: January 19,2005

Project: 8901-461 Lr. Ref. : MI9003-JAN05

S Unit S Total . - .----.

1 Crushing 10.00 10.00 1 Caustic 1 SO mesh 1st Pour <8 kg 450.00 450.00 1 Caustic ISO mesh Addit. Pours 350.00 350.00

Disposal 0-24 kg 150.00 150.00 1 Concentrate Preparation 150.00 150.00 I Micros Nil Srones 225.00 225.00 1 Ree inventory sple track rpt comp c 200.00 200.00

Project Management 150.00 150.00

SUB TOTAL $ 1685.00

Analysis 1685.00 1685.00 GST7% 117.95 1802.95

TOTALS 1802.95

Invoice refers to the processing and selection of one sample, DAH-2, for cliamond content.

Sample Jogged in under 8901-387 LIMS MlOOOl-DEC04 .

....... Invoice in Canadian Funds unless stated otherwise •••

~

NOTE:

::


MICRO DIAMOND EXTRACTION, SELECTION AND DESCRIPTION

prepared for

3814793 Canada Inc.

8901-387 UMS M10001-NOV04 January 21. 2005



Lakefield Research

SGS Lakefield Research Umited P.O. Box 4300,185 Concession Street, Lakefield, Ontario, Canada KOl2HO Tel: (705) 652-2000 Fax: (705) 652-6365 www.sgslakefield.com www.sgs.com

Member of SGS SA Group

1

I

3814793 Canada Inc. 8901·387 UMS#MI0001-NOV04

Summary

Diamond Exploration Services SGS Lakefield Research Limited



identified as DAH-1. Caustic dissolution residues were collected on a 150 mesh (100

!J.m) screen, then submitted for Frantz magnetic separation to isolate the microdiamonds

in the non-paramagnetic fraction. All results are reported as a Certificate of Analysis in

Appendix A.


processing flow sheet, may be found in Appendix B.





recovery of relatively fine, 80 mesh spikes was 100%.

SGS Lakefield Research Limited January 18, 2005

..v_I Hug e Souza, Ph.D., P.Geo. lfcJ Group Leader· Diamond Exploration Services

Technical Support: Rob Gill, Scott Young, Wade Pogue, Tracy Gill and Zakia AI Haddad

2

3814793 Canada Inc. 8901-387 L1MS#MI0001-NOV04

---

APPENDIX A




3

SIiS SGS lakefield Research Limited P.O. Box 4300 - 185 Concession 51. Lakefield - Ontario· KOL 2HO Phone: 705-652-2038 FAX: 705·652·6441

Canadalnc.-3814793

c.;anaaa, t"'V" I I"\V

Phone: , Fax:

Lakefield Wednesday, January 19, 2005


18 January 2005 MI900o-JAN05 8901-461 F.T. Archibald Consutling Ltd.

CERTIFICATE OF ANALYSIS

Sample 10 *Caustic WI *Dia *Dia *Total I kg # (ct) pours

1: DAH-1 Comp 8.00 a 0.000 2 I

Maria el Diamond Selection Specialist

Email: [email protected]

o Page 1 of 1 ata reported represents the sample submitted to SGS Lakefleld Research. Reproduction of this analytical report In full or In part Is prohibited without prior written appro'.

SG$ SGS Lakefield Research Limited 185 Concession St.. Box 4300

Lakefield. Ontario KOL2HO.CANADA

Tel: (705) 652-2112 Fax: (705) 652-3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901-387


Mesh Fraction



+150 Ferromagnetic Mag



-20+150 Diamagnetic Mag (0.5 amp)

-20+150 Diamagnetic Non-mag (0.5 amp)


Date: January 6,2005

LIMS No. MIOOOI-NOV04 Sample No. DAH-l


Not applicable

Oxides, silicates and rock fragments


Not applicable

Not applicable

Not applicable

Oxides, silicates and graphite


* Total Weight (carats) was calculated from mg weights. All reported mg weights are measured to within 0.002 mg.

Note:

Selection and Description Zakia Al Haddad Mineralogy Technician

(llj e I Quality Control Tracy Gill Mineralogy Technician

SGS Lakefield Research Limited is not responsible for the detennination of the origin. quality or value of any diamonds recovered. Each +35 mesh (Tyler sie~e; +(lA20 mm) stone was individually weighed. and the ·35 mesh stones were weighed in groups. Stone dimensions are limited to accuracy of three dimensional measurements of irregular shapes using a petrographic microscope.

Accredited by the Standards Council a/Canada to the ISOIIEC Guide 25 standard/or specific registered tests.

SG$ SGS Lakefield Research Limited 185 Concession St., Box 4300 Lakefield, Ontario KOL 2HO, CANADA

Tel: (705) 652-2112 Fax: (705) 652-3123



'0 ;>., c:= <U <U '0 :::I u~ :e :> ... .-c,)'O

'" c: U -0'0

4)

'" .c U 0.0 c: .-o U

eli;:!:

'0 u '0 .c-- U

'- ;>.,.c ..... - e.o c,) <U .-~ ::s !U

0'O;:!: ",.:: §-~ ~ e 2-0 <:.Il


+4.75 mm 0 - 4.75 / + 3.35 rnm 0 - 3.35 / + 2.36 mm 0 - 2.36/ + 1.70 mm 0 - 1.70/+ 1.18 mm 0 - 1.18/ + 0.85 mm 0

-850 / + 600 J.lm 0

-600 / + 425 fJ.m 0 -425 / + 300 11m 0 -300/+212 fJ.m 0 -212/ +150 fJ.m 0 -150/ +105 fJ.m 0

TOTAL 0

Sample Weight: 8.0 kg Number of Synditcs: 0


LIMS No. M1000l-NOV04 Sample No. DAB-l

Group Weight Group Carats (mg) ( calculated)

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000




Zakia Al Haddad Mineralogy Technician

Note:

Quality Control

Tracy Gill Mineralogy Technician

SGS Lakefield Research Limited is not responsible for the determination of the origin, quality or value of any diamonds recovered. Each +35 mesh (Tyler sieve; +0.420 mm) stone was individually weighed, and the -35 mesh stones were weighed in groups.

Accredited by the Standards Council a/Canada to the ISO/IEC Guide 25 standard/or specific registered tests.

., ..

Page 1

SGS LAKEFIELD RESEARCH LIMITED P.o. Dag 4300, 185 Concession Street. Lakefield, Ontario KOL 2HO

Phone: 705-652-2112 Fax: 705-652-3123

January 6, 2005


Project: 8901·387


No.1 Stone DImension, mm I Weight I I X I V I z I mg I Carats I Colour I

+ 4.75 mm fraction o I I I I I 0.000000 I I o I 0.000 I 0.000000 ISub-Total

-4.75/+ 3.35 mm fraction o I I I I I 0.000000 I I o I 0.000 I 0.000000 ISub-Total

-3.35/+ 2.36 mm fraction o I I I I . I 0.000000 I I o I 0.000 I 0.000000 ISub-Total




I Percent I Clarity I Preservallon I

J I

I I

I I

I I

I I

I I

"

LIMS No. MIO001-NOV04 Sample No. DAH·1



"

" Page 2

.. -~.....-----~------ ---------RPM: ·i~.~ii'>, SGS LAKEFIELD RESEARCH LIMITED

P.o. Bag 4300. 185 Concession Streel. Lakefield. Qmario KOL 2I10 Phone: 705-652-2112

Fax: 705-652-3123

January 6, 2005


Project: 8901-387


No.1 Stone Dimension mm I Weight I 1 Percent I I X 1 y 1 z I mg I Carats I Colour 1 Clarity 1 Preservation I

-850/+ 600 JIm fraction o I I I I I 0.000000 1 I I I o I 0.000 1 0.000000 ISub-Total

-600/+ 425 JIm fraction o I I I I I 0.000000 I I I I o I 0.000 1 0.000000 ISub-Total

-425/+ 300 JIm fraction o I I I I I 0.000000 I I I I o I 0.000 1 0.000000 I Sub-Total

-300/+ 212 JIm fraction o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

-212/+ 150 JIm fraction o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

-150/+ 105 JIm fraction o I I I I I 0.000000 I I I I 01 0.000 I 0.000000 ISub-Total

I 0 I I 0.000000 ITOT AL

Nole 1: Diamond Fragments - No Crystal Faces - Preservation (Resorption) cannot be estimated.

LIMS No. MIOOOI-NOV04 Sample No. DAH-l



f Ii I

Page 3

3814793 Canada Inc. 8901·387 UMS#MI0001-NOV04

- -.

APPENDIX B

Diamond Exploration Services SGS Lakefield Research Umited

EXPLANATION OF MICRODIAMOND EXTRACT10N AND SELECTION PROCEDURE AND FLOWSHEET

4

3814793 Canada Inc. 8901-387 L1MS#MI0001-NOV04

Diamond exploration Services SGS Lakefield Research LImited

DIAMOND EXTRACTION BY CAUSTIC/DISSOLUTION

Introduction

Caustic dissolution of exploration samples efficiently produces a concentrate from which diamonds can readily be extracted during microscopic exa.mination. The process takes advantage of diamond's property of high resistance to caustic soda (NaOH). eliminating diamond size reduction and loss that often occurs during extraction procedures that rely on crushing and attrition milling.

Procedure


As-received samples are divided into equally sized charges of less than 8 kg. Smaller charge; sizes are necessary if the sample contains a high proportion of carbonate minerals, which are vigorously reactive with NaOH (the carbonate content is evaluated by an acid test prior to charge preparation). If a high proportion of the sample is composed of fragments larger than 8 cm, simple breakage, crushing or attrition milling may be required for an effective dissolution, or the length of the dissolution process may be increased. Client consultation and approval is necessary before any size reduction of the sample is initiated.

After digestion in molten caustic soda, the sample is poured onto a large-diameter 150 mesh (100 )lm) screen. The + 150 mesh residue is liberated from the NaOH by washing the sample in a series of water and acid leach (HCI) baths. Once all of the NaOH is dissolved and removed, the concentrate is dried and screened on a 6 mesh screen to remove undigested material. The undigested material is examined microscopically by a mineralogist. If a significant amount of +6 mesh remains, or if the material consists of possible diamondiferous rock fragments, further digestion may be required. If the undigested material is of insignificant size or not considered as a possible source of diamonds, the -6 mesh residue is further processed by a two (possibly three if the residue is large) stage magnetic separation procedure utilising a permanent magnet and a Frantz Barrier Magnetic Separator.

The magnetically characterised residue is then submitted for microscopic examination and diamond selection. In addition to diamonds, the residue may contain partially undigested indicator minerals, colourless to opaque spinel, garnet, ilmenite, graphite, moissanite, zircon and kyanite. Each of the magnetic fractions is examined at a magnification of 40x using a binocular microscope. Grains of questionable mineralogy are examined using a scanning electron microscope equipped with an energy dispersive spectral (SEM-EDS) analyser. Although each magnetically characterised fraction is examined, particular emphasis is given to the diamagnetic portion.

The X, Y and Z dimensions of selected microdiamonds are measured in millimetres. Macrodiamonds are weighed individually while microdiamonds are weighed in groups of 20 or 30, with the milligram weight, in each case, converted to carats. The colour, clarity and morphology of each diamond are determined and all observations reported in a Certificate of Analysis. SynthetiC diamonds released into a sample by diamond drill bits are selected and reported as "syndites" on the diamond description sheet.

5

3814793 Canada Inc. 8901-387 LlMS#MI0001·NOV04

Quality Control

Diamond Exploration Services SGS lakefield Research llmited

Routine quality control tests are utilized to evaluate the efficiency of the caustic dissolution processing technique. by spiking client samples with two sizes (35 mesh and 80 mesh) of synthetic diamonds (easily identifiable, colour treated diamond fragments. Recovery of the diamond spikes typically ranges from 97 to 100%. and for 2002 was 98.2%. Further 2002 statistics showed that an average of 1.18 indicator mineral grains (73% of which were oxides, 27% silicates) were carried over into the caustic soda blanks run between different client's samples.


Every effort is made at each stage of sample handling during caustic dissolution. residue preparation and diamond picking to eliminate the possibility of contamination. These steps include:






processed sample.



Customized flowsheets for sample processing utilising caustic dissolution and other sample preparation techniques (magnetic. gravity, flotation, acid leaching. etc.) can be developed. in consultation with the client, to meet specialised requirements.

SGS Lakefield Research limited is not responsible for the determination of the origin. quality or valuation of any diamonds recovered unless otherwise instructed by the client.

6

, ,

3814793 Canada Inc. 8901-387 L1MS#MIOOO 1-NOV04




includes drying)

Ir


! Collect Residue

(150 mesh screen)

1 WATER WASH AND

IDUE

1 HOT ACID LEACH

(HCI)




DIAMOND SELECTION

7

\ ..

(373) Canada Inc. - 3814793 307 Michipicoten Ave. PO Box 97 Wawa,ON Canada, POS 1KO Attn : Gary Deluco Reference: F.T. Archibald Consutling Ltd.


Crush and rime sample Caustic 150 mesh 1st Pour <8 kg Caustic 150 mesh Addit. Pours Disposal 0-24 kg Concentrate Preparation Micros Nil Stones Rec inventory sple track rpt comp c Project Management

Analysis GST7%

M3697

Printed: January 24, 2005 Received: January 18,2005


$ Unit $ Total

20.00 20.00 450.00 450.00 350.00 350.00 150.00 150.00 150.00 150.00 225.00 225.00 200.00 200.00 150.00 150.00

SUBTOTAL $ 1695.00

1695.00 1695.00 118.65 1813.65

TOTAL $ 1813.65

Invoice refers to processing and selection of one sample (DAH-l) for diamond content.

Sample logged in under 8901-387 LIMS MIOOOI-NOV04.

*** Invoice in Canadian Funds unless stated otherwise ***

't "-

NOTE:


MICRODIAMOND EXTRACTION, SELECTION AND DESCRIPTION

prepared for

3814793 Canada Inc.

8901-387 L1MS M10008-NOV04



Lakefield Research

SGS Lakefield Research Umited P.O. Box 4300,185 Concession Street, Lakefield, Ontario, Canada KOL 2HO Tel: [705) 652·2000 Fax: [705) 652·6365 www.sgslakefield.com www.sgs.com

Member of SOS SA Group

January 25. 2005

3814796 Canada Inc. 8901-387 UMS#MIOOO8-NOV04 -------------------------------------------Summary


Diamond exploration Services SGS Lakefield Research Umited


identified as CHAB-15.' The sample was crushed to nominal passing 1" prior to

processing. Caustic dissolution residues were collected on a 150 mesh (100 ).lm)

screen, then submitted for Frantz magnetic separation to isolate the microdiamonds in

the non-paramagnetic fraction. All results are reported as a Certificate of Analysis in

Appendix A.


processing flow sheet, may be found in Appendix B.





recovery of relatively fine, 80 mesh spikes was 70%. The spike results are significantly

lower than our acceptable limits. We therefore have re-examined the sample residue

but did not recover any spike fragments or additional microdiamonds that would explain

the discrepancy.

SGS Lakefield Research Limited January 25,2005

Mineralogist Hugh e ouza, Ph.D., P.Geo. Group Leader· Diamond Exploration Services

Technical Support: Rob Gill, Scott Young, Krista Henderson, Tracy Gill and Zakia AI Haddad

2

jJ:

""

3814796 Canada Inc. 8901-387 UMSlMIOOO8-NOV04

APPENDIX A

Diamond Exploration Services SGS lakefield Research Umtted



3

SG~ SGS lakefield Research Limited P.O. Box 4300 - 185 Concession SI. Lakefield - Ontario - KOL 2HO Phone: 705-652·2038 FAX: 705-652-6441

Canadalnc.-3814793 )

3vI IVIIl;nlplcoten Ave. PO Box 97, Wawa, ON Canada, POS 1 KO Phone: , Fax:

CERTIFICATE

1: CHAB-15 7.77

Email: deb.deluco@ rogers.com

Lakefield Tuesday, January 25, 2005


18 January 2005 MI9002-JANOS 8901-461 F.T. Archibald Consutling Ltd.

OF ANALYSIS

o 0.000 2

Maria Mezei Diamond Selection Specialist

Page 1 of 1 Data reported represents the sample submitted to SGS Lakefield Research. ReproduaJon 01 this analytical report In lull or In part 15 prohibited without prior written approval.

SG$ SGS Lakefield Research Limited 185 Concession St., Box 4300

Lakefield. Ontario KOL 2HO, CANADA

Tel: (705) 652-2112 Fax: (705) 652-3123



Mesh Fraction



+150 Ferromagnetic Mag


-20+ 150 .Pararnagnetic Mag (0.3 amp)

-20+150 Diamagnetic Mag (0.5 amp)

-20+150 Diamagnetic Non-mag (0.5 amp)



LIMS No. MIOO08-NOV04 Sample No. CHAB-15


Not applicable

Oxides

Ox.ides

Not applicable

Not applicable

Ox.ides and silicates

Ox.ides and silicates


* Tota! Weight (carats) was calculated from mg weights. All reported mg weights are measured to within 0.002 mg,

Note:


2akia Al Haddad Mineralogy Technician

Quality Control

Tracy Gill

Mineralogy Technician

SGS Lakefield Research Limited is not responsible for the determination of the origin. quality or value of any diamonds

recovered, Each +35 mesh (Tyler sieve: +0.420 nun) stone was individually weighed. and the -35 mesh stones were

weighed in groups. Slone dimensions are limited to accuracy of three dimensional measurements of irregular shapes

using a petrographic microscope. Accredited by the Standards Council o/Canada to the ISOflEC Guide 25 standard/or specific registered tests.

SG$ SGS Lakefield Research Limited 185 Concession St., Box 4300 Lakefield, Ontario KOL 2HO, CANADA

Tel: (705) 652-2112 Fax: (705) 652-3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901·387 Client: 3814793 Canada Inc.

" >. 1:-C!lo; " ::1 0" .0 .-·c .~ 0" '" I: 0 .....

013 til ..c: o ot) I: .-a 0

Cii~

13 " .0 ...... 10 .- >...c: .... - ot) o 0; .-~ ::1 10

o:s:~ til .~ §-~ -g e 9-0 en


+ 4.75 nun a - 4.75 / + 3.35 rnm a - 3.35 / + 2.36 rnm a - 2.36 / + 1.70 rnm a - 1.70/+ 1.18 rnm a - L18 / + 0.85 rnm a -850 / + 600 fJ.m a -600/ + 425 fJ.ffi 0 -425 / + 300 fJ.ffi a -300 / +212 fJ.ffi 0 -212/ +150 P.ffi a -150/ +105 P.ffi a

TOTAL 0


Date: January 25, 2005 I..J1v1S No. MI0008-NOV04

Sample No. CHAB-IS

Group Weight Group Carats (mg) (calculated)

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000



Selection and Description Zakia Al Haddad Mineralogy Technician

Note:

Quality Control Tracy Gill Mineralogy Technician

SGS Lakefield Research Limited is not responsible for the detennination of the origin, quality or value of any diamonds recovered. Each +35 mesh (Tyler sieve; +0.420 mm) stone was individually weighed, and the -35 mesh stones were weighed in groups.

Accredited by the Standards Council o/Canada to the ISOIIEC Guide 25 standard/or specific resistered tests.

Page 1

SGS LAKEFIELD RESEARCH LIMITED P.o. Bag 4300, 185 Concession Street, Lakefield, Ontario KOL 2HO

Phone: 705·652·2112 Fax: 705·652·3123

January 25. 2005


Project: 8901·387


No.1 Stone Dimension mm I Weight I I X I V I z I mg I Carats I Colour I

+ 4.75 mm fract/on o 1 I I I I 0.000000 I I 01 0.000 I 0.000000 ISub-Total



-2.36/+ 1.70 mm fract/on o I I I I - I 0.000000 I I o I 0.000 J 0.000000 ISub-Total

-1.70/ + 1.18 mm fraction o 1 I I 1 I 0.000000 I I o 1 0.000 I 0.000000 ISub-Total

-1.18/+ 0.85 mm fraction o I I I 1 I 0.000000 I I o 1 0.000 J 0.000000 ISub-Total

I Percent I Clarlty_ I Preservation I

I 1

I 1

I I

I 1

I I

I I

LIMS No. MIO008·NOV04 Sample No. CHAB·IS


Stone DescrIption Morphology

,

Page 2

SGS LAKEFIELD RESEARCH LIMITED January 25,2005 P.O. Bag 4300, 185 Concession Street, Lakefield, DOIano KOL 2HO

Phone: 705-652-2112 Fax: 705-652-3123


Project: 8901·387 LIMS No. MIO008·NOV04 Sample No. CHAB-15

Client: 3814793 Canada Inc. Sample Weight: 7.77 kg

No.1 Stone Dimension, mm I Weight J I Percent I Stone Description I X I y I z I mg I Carats I Colour I Clarity I Preservation I Morphology

·850/+ 600 pm frsctlon o I I I I I 0.000000 J I I I o I 0.000 J 0.000000 ISub-Total

-600 / + 425 pm frsct/on ,

o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

425/ + 300 pm fraction o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

·300/+ 212 pm fraction o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

-212/+ 150 pm fraction o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

·150/+ 105pm fraction o I I I I I 0.000000 I I I I o I 0.000 I 0.000000 ISub-Total

I 0 I , 0.000000 ITOT AL

Note 1: Diamond Fragments - No Crystal Faces - Preservation (Resorption) cannot be estimated.

Page 3

3814796 Canada Inc. 8901-387 UMS#MIQOO8-NOV04

APPENDIX B

Diamond Exploration Services SGS Lakefield Research Umlted

EXPLANATION OF MICRODIAMOND EXTRACTION AND SELECTION PROCEDURE AND FLOWSHEET

4

3814796 Canada Inc. 8901-387 UMS#MIOO08-NOV04

Diamond Exploration Services SGS Lakefield Research Umlted

DIAMOND ExTRACTION BY CAUSTIC DISSOLUTION

Introduction

Caustic dissolution of exploration samples efficiently produces a concentrate from which diamonds can readily be extracted during microscopic examination. The process takes advantage of diamond's property of high resistance to caustic soda (NaOH), eliminating diamond size reduction and loss that often occurs during extraction procedures that rely on crushing and attrition milling.

Procedure


As-received samples are divided into equally sized charges of less than 8 kg. Smaller charge !,.

sizes are necessary if the sample contains a high proportion of carbonate minerals, which are vigorously reactive with NaOH (the carbonate content is evaluated by an acid test prior to charge preparation). If a high proportion of the sample is composed of fragments larger than 8 cm, simple breakage, crushing or attrition milling may be required for an effective dissolution, or the length of the dissolution process may be increased. Client consultation and approval is necessary before any size reduction of the sample is initiated.

After digestion in molten caustic soda, the sample is poured onto a large-diameter 150 mesh (1 00 ~m) screen. The + 150 mesh residue is liberated from the NaOH by washing the sample in a series of water and acid leach (HCI) baths. Once all of the NaOH is dissolved and removed, the concentrate is dried and screened on a 6 mesh screen to remove undigested material. The undigested material is examined microscopically by a mineralogist. If a significant amount of +6 mesh remains, or if the material consists of possible diamondiferous rock fragments, further digestion may be required. If the undigested material is of insignificant size or not considered as a possible source of diamonds, the -6 mesh residue is further processed by a two (possibly three if the residue is large) stage magnetic separation procedure utilising a permanent magnet and a Frantz Barrier Magnetic Separator.

The magnetically characterised residue is then submitted for microscopic examination and diamond selection. In addition to diamonds, the residue may contain partially undigested indicator minerals, colourless to opaque spinel, garnet, ilmenite, graphite, moissanite, zircon and kyanite. Each of the magnetic fractions is examined at a magnification of 40x using a binocular microscope. Grains of questionable mineralogy are examined using a scanning electron microscope equipped with an energy dispersive spectral (SEM-EDS) analyser. Although each magnetically characterised fraction is examined. particular emphasis is given to the diamagnetic portion.

The X, Y and Z dimensions of selected microdiamonds are measured in millimetres. Macrodiamonds are weighed individually while microdiamonds are weighed in groups of 20 or 30, with the milligram weight, in each case, converted to carats. The colour, clarity and morphology of each diamond are determined and all observations reported in a Certificate of Analysis. Synthetic diamonds released into a sample by diamond drill bits are selected and reported as "syndites" on the diamond description sheet.

5

3814796 Canada Inc. 8901-387 UMS#MIOOO8-NOV04

Quality Control

Diamond Exploratlon Services SGS lakefield Research Umlted

Routine quality control tests are utilized to evaluate the efficiency of the caustic dissolution processing technique, by spiking client samples with two sizes (35 mesh and 80 mesh) of synthetic diamonds (easily identifiable, colour treated diamond fragments. Recovery of the diamond spikes typically ranges from 97 to 100%, and for 2002 was 98.2%. Further 2002 statistics showed that an average of 1.18 indicator mineral grains (73% of which were oxides, 27% silicates) were carried over into the caustic soda blanks run between different client's samples.


Every effort is made at each stage of sample handling during caustic dissolution, residue preparation and diamond picking to eliminate the possibility of contamination. These steps include:






processed sample.



Customized flowsheets for sample processing utilising caustic dissolution and other sample preparation techniques (magnetic, gravity, flotation, acid leaching. etc.) can be developed, in consultation with the client, to meet specialised requirements.

SGS Lakefield Research Limited is not responsible for the determination of the origin, quality or valuation of any diamonds recovered unless otherwise instructed by the client.

6

3814796 Canada Inc. 8901-387 UMSlMIOOO8-NOV04

Diamond ExploratJon Services SGS lakefield Research Umlted



includes dryir}9)


1 Collect Residue

(150 mesh screen)

WATER WASH AND ACID LEACH RESIDUE

! HOT ACID LEACH

(HCI)




DIAMOND SELECTION

7

Appendix C

Untitled Document 3113/05 10~16 AM

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STAKER 2003-Apr-23 RECORDEOSV lEADSET1'E.R, JOHN; JOSEPH (D20566)

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ilr'"qmm;m~iW.i:.loal R0350.01804

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WHO. WE ARE ~ MINES .~~iD 1Jil~.ERAi.S f f-;ORTHfR,~ Of'VELOPMENf , ThE M~>OM ]\lfT',hORl< i :'!8NS RELEASES

: Ot.&e Date:.

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2Q05~R-23

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; letat. \¥ot'ft: ~

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- --~, .. , .. ~ . -'-~

3814793 CANADA INC. ( 1UO.00 '%)

Transaction Listing iiPtW !lm;i'i,iii .. ifil!fmji'f,!iii,Iir."s

STAKER 2003-Apc-23.

v

RECORDED BY I:..EADBE:l:fERI.. JOH~· JOSEPH {020566)

LEADUL H£R, JOHN JOSEPH(~)RECOROS 100.00.%JN .THE.NAMEOF 3a141S3 CANADA.~, (39-3199)

0:1- 4O.£l!. surfae~ ri§hts, f%er:vationc aroclf.!d aU, lakes; aoo. f!~ers., . ,

02 Sand and gravel: reserved

03fi;at~

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0'5 tnc1uding: l'snd' und'er water

'~mm 393100

flZH.ttrnl R035Q.Q1804

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lot Description:

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aTAKER 2.OQ.3.~Apr-23-

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RECORDED"BY. lEADSE:TrER,J(}HNt JOSEPH (D20566j :[EAD6£1 -IER, J'OHN JOSEPH(3~)RECOROS 1 OQQQ %.IN THENAMEOF 3a141S3 C'ANADA lNC, {393t99}

Q;1: 400 sudaca,l'ights.res.eoIatioo'.aro\;IfldaU,\akes.andri~

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03·Raat~

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i~mlfeedbas:*i~I~I~1

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-tooaIcn:'Minjstrytiome ,. Mines and MinetaH'iV!siro :.Mininq l.imd&"'-Mining-olaims . ". ", .-&wJay.March ~ JIh, 2005 Information . .

Active Mining Claim Abstract I Main Menu I~I

----_._--------_ .. _-----_ .. _-_._----._----_._._---. SAULT STE. MARIE.Mining.Division Claim No: SSM 1243383 Status: ACTiVE

i Total WorK; $. Q. :

Total Reserve: .iQ

: ; Present Work Assignment: $·0

~ : Claim Bank: $ 0

Claim Holders

Township/Area:: LE:C.LAIRE(G,..2:782:)

Lot Description:

,Claim Uni:ts:l

Recorded'Holde1"(s Percerita e' ". . . Client Number 3814793 CANADA INC. ( 100.00 %)

Transaction Listing ~~l"'IIfJ-~mmDlI'!III·lII'I, ST AKER 2003-Apr-23

Description' . . .

RECORDED BY LEADBETTER, JOHN JOSEPH (020566)

393199

Performed Number .

i l

STAKER 2003-Apr-2:3 LEADBETTER, JOHN JOSEPH (300909) RECORDS 100.00 % IN THE NAME OF 3814793 CANADA INC. (393199)

R0350.01.809

0.1 400' surfaca..rights.-reservation around.aU lakes-andJiverso


roPea! .reserved 04 Other reservations under the Mining Act may apply

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Active Mining Claim Abstract I Main Menu t~1

j r-------.~-·----~-~----------·----·-------------··---·"'---'-'-'-'-~--'--'\ i! Due Date: 2005-APR-23' Recorded: 2003-Apr-23 :;

i' Wor1< Required: $ 1,200 Staked: !~=~~~.,~=~===~=:~=~==~~~~==~~=====::=~===~===~:~~~=~=~==~:=~=~:~~~==~=~=~~; i : TotalWodc. $ Q

:; Totat Reserve: II i Lftn!8enUN'oAt-Assi9'tmem:.$O

TaWDSbiplArea:. lECU\iRE~G-27.'82l

Lot Description: ,.Qaim.·umt&: -3

1 Claim Banlc $ 0

Cfaim Holders

3814793 CANADA iNC. ( 100.00 %)

Transaction Listing mm.~~Ir'II. -, .f'!!II.", STAKER 2.003-Apc-2.3

STAKER 2:003-Apr-23

RECORDED BY LEADBE i i ER: JOHNJOSEPH (020566)

tEADBtTTER, JOHN JOSEPH (300909) RECORDS tOO.OO % IN. THE NAME OF 38"1'4793' CANAOJ'll iNC. (393199}

0:1: 400' ~aca ~~ ~~ atOtJnC aU: lakes. and: ~~s:


:03 ~ reser>red

04 Other reservations under the Mining Act may apply

as Fnetttdtn-g j:and .. ~. wafer

tcenl:r3l rnte t feedba~ t search ('site- mm;r t~ais t

393199

RQ350.0 1. 804.

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,Page J ..of :2

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RELEASES

Location: Ministry Home "> Mines andMin'era! QMsjoo' ">Mjnjng Lands "> Mining Claims Infoonalion

Active Mining Claim Abstract I Main Meny I~I

SAULT STE. MARIE Mining Division Claim No: SSM 1243382 Status: ACTIVE i r-----..... ---------....... -----,--.... ~,..-- .. -----------.' ... ""-.--.. -.. -----....... -.-- .. ~.~ ....------.. -:~ : ' Due Date: 2005-APR-23 Recorded: 2003-Apr-23 ~! i, II

; i Work Required: $ 1,200 Staked:

I! Total Worle $ 0

Total Reserve: II TownshiplArea~ LECLAIRE (G-2782)

lot Description:

\ : ,Present Work Assignme.nt~$ Q

; , Claim Bank: $ 0

Claim Holders

Claim Units: 3

Recorded Hofdel'ts) Percenta e ' 3814793 CANADA INC, ( 100,00 %)

Client Number 393199

Transaction Listing

~~·a·b·iUf£lfta.". Desc~ tion' , , '" Performed Number STAKER 2003-Apr-23 RECORDED BY

LEADBETTER, JOHN JOSEPH (D20566)

STAKER 2003-Apr.23 LEADBETTER, JOHN JOSEPH (300909) RECORDS 100,00 % IN THE NAME OF 3814793 CANADA INC: (393199)

Clalm R-eservations

01 400' surface rights reservation around an lakes and rivers


03 Peat reserved


05 Including land under water

06 Excluding road

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R0350.01804

R0350,01809

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Untitled Document 3/13/05 10:10 AM

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Development and Mines central site ! feedback I search I site map! fransais I

WHO WE ARE I MINES AND MINERALS I NORTHERN DEVELOPMENT I THE MNDM NETWORK I NEWS RELEASES

Location: Ministry Home> Mines and Mineral QMsi9fl > Minina lands> Mining Claims Information

Active Mining Claim Abstract I Main Menu I~I

Sunday, March 13th,2OO5

SAULT STE. MARIE Mining Division Claim No: SSM 1243368 Status: ACTIVE j '! ; r"-~-"---~--------------""""---"""-.-'--'---''''~---------'''-~--_""'" ___ .' __ "'_'_ .... _w_~~ : : Due Date: 2005-MA Y -27 Recorded: 2003-May-27 !\ j !!

; Work Required: $ 400 Staked: '! j .:~-:::;--=.:.: .. :.=-::".~~~-==-:-..:..-~:::-=~;-:;;.::::.~--.:==:= .. -~-;;:=.:::.:.-"'::;:::."':.-::.::::-::::::;;:.-::::=.:-...;;!";:;-.."":"'-;;:;:-~;,:,::=::,-===::-"..:==;:::;'~'::;:-::;.=:.: .. :;:::;:= .. :.,:::;,:::,::;'::=.;;;::;:::=::'::::::::::=;'::,::":---::;::::",-:.,-::-.::::::"::.:-=-.:..-::::::...::::!

i; Total Work: $ 0 Township/Area: LECLAIRE (G-2782) ;! • I !i

i: Total Reserve: II Lot Description: i! : 1 Present Work Assignment: $ 0 Claim Units: 1 ::

! : Claim Bank: $ 0 --_ ... -.' .... -.... ,,, , ...... _ ... ,""- -, - -"-' ". - --._. -_. ~------ .~~-.------- -~-'--" .-, .. -~-.~- ~-.--.. -----~~-.. ~.-- "~--'--~-'-'~---'-'-'- '~-"'-'- ~ '--.--'_- -- ------. --'-.- .--. ,,.,....,_. -"'''---'~~-'-''--- ' .~---~ ~ ... -.,.'

Claim Holders Recorded Holder(s Percenta e 3814793 CANADA INC. ( 100.00 %)

Transaction Listing ~ ~tml···liifitJ ... ·II'I· Descri tion STAKER 2003-May-27 RECORDED BY

LEADBETrER. JOHN JOSEPH (D20566)

STAKER 2003-May-27

ORDER 2003-Jul-31

OTHER 2003-Aug-12

Claim Reservations

LEADBETTER, JOHN JOSEPH (300909) RECORDS 100.00 % IN THE NAME OF 3814793 CANADA INC. (393199)

APPLICATION TO RECORD ACCEPTED AS 'FILED ONLY'

ENTRY - 0035000300 ENTERED IN ERROR

01 400' surface rights reservation around all lakes and rivers 02 Sand and gravel reserved

03 Peat reserved


05 Including land under water

Client Numbe 393199

Performed Number R0350.02495

R0350.02496

00350.00300

U0350.00029

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Appendix 0

F.T.Archibald Consulting Ltd. 668 Millway Ave. Unit 15 Concord, Ontario L4K 3V2

IN ACCOUNT WITH

3814793 Canada Inc. Attn- Gary Deluco PO Box 97 Wawa Ontario POS 1KO

INVOICE 05-05

March 31 , 2005

Re: Assessment Work on Leclaire Townshjp Group 8.2 km. proton Magnetometer (Exploranium Unimag)

@ $134.00 per kilometer---January 15-21.2004----- $1098.80

8.2 km. linecutting @ $350/km. subcontracted to J.J. Leadbetter @ $350 per kilometer---Jan.1-14,2004----- $2870.00

Report Compilation I mag maps I geological maps compilation 3 days @ $350 per day--March 23-31,2005------ $1050.00

GST on services (RT#10190190B)-------------------------- $ 73.50

Snowmobile rental 4 days Jan.15-21 ,2004 @ $75/day---------- $ 300.00

SGS Lakefield Labs M3695-----------------------SGS Lakefield Labs M3697 -----------------------SGS Lakefield Labs M3715-----------------------Fedex report to assessment-----------------------

TOTAL Expenditures--------------

$1802.95 $1813.65 $1792.25

NS

$10,801.15

2 copies sent in for assessment work prior April 23, 2005

(373) Canada Inc. - 3814793 307 Micbipicoten Ave. PO Box 97 Wawa,ON Canada, POS 1KO Attn : Gary Deluco Reference: F.T. Archibald Consutling Ltd.


1 Crush and riffle sample 1 Caustic 150 mesh 1st Pour <8 kg 1 Caustic 150 mesh Addit. Pours 1 Disposal 0-24 kg 1 Concentrate Preparation 1 Micros Nil Stones 1 Rec inventory sple track rpt comp c 1 Project Management

Analysis GST7%

M3697

Printed: January 24, 2005 Received: January 18, 2005

Project: 8901-461 Lr. Ref. : MI9OO0-JAN05

$ Unit $ Total

20.00 20.00 450.00 450.00 350.00 350.00 150.00 150.00 150.00 150.00 225.00 225.00 200.00 200.00 150.00 150.00

SUB TOTAL $ 1695.00

1695.00 1695.00 118.65 1813.65

TOTAL $ 1813.65

Invoice refers to processing and selection of one sample (DAR-!) for diamond content.

Sample logged in under 8901-387 LIMS MIOOOI-NOV04.


"'t .,.

(373) Canada Inc. - 3814793 307 Michipicoten Ave. PO BOI 97 Wawa,ON Canada, POS lKO Attn : Gary Deluco Reference: LR2403608


M3695

Printed; January 24, 2005 Received: January 19, 2005


$ Unit :$ Total - .----.

1 Crushing 10.00 10.00 1 Caustic 150 mesh 1 st Pour <8 kg 450.00 450.00 1 Caustic 150 mesh Addit. Pours 350.00 350.00 1 Disposal 0-24 kg 150.00 )SO.OO 1 Concentrate Preparation IS0.00 150.00 J Micros Nil Stones 225.00 225.00 1 Rec inventory sple track rpt comp c 200.00 200.00 1 Project Management 150.00 150.00

SUBTOTALS 1685.00

Analysis 1685.00 1685.00 GST7% 117.95 1802.95

TOTAL $ 1802.95

Invoice refers to the processing and selection of one sample. DAH-2. for diamond content.

Sample Jogged in under 8901-387 LIMS MIOOOl-DEeM .

... Invoice in Canadian Funds unless stated otherwise ...

~

(373) Canada Inc. - 3814793 307 Michipicoten Ave. PO Box 97 Wawa,ON Canada, POS 1KO Attn : Gary Deluco Reference: F.T. Archibald Consutling Ltd.


1 Caustic 150 mesh 1st Pour <8 kg 1 Caustic 150 mesh Addit. Pours 1 Disposal 0-24 kg 1 Concentrate Preparation 1 Micros Nil Stones 1 Rec inventory sple track rpt comp c 1 Project Management

Analysis GST7%

,

M3715

Printed: February 07, 2005 Received: January 18,2005


$ Unit $ Total

450.00 450.00 350.00 350.00 150.00 150.00 150.00 150.00 225.00 225.00 200.00 200.00 150.00 150.00

SUB TOTAL $ 1675.00

1675.00 1675.00 117.25 1792.25

TOTAL $ 1792.25

Invoice refers to the processing and selection of one sample, CHAB-15, for diamond content.

Sample is reported under 8901-387 MIO008-NOV04.


..

":if: ....

Appendix E

Property Expenditure Breakdown

Claim 1243382

5.0 km. linecutting @ $350lkm------------5.0 km. proton magnetometer @ $134lkm---2 days ATV Isnowmobile @ $75/day------report + maps @ $350/day---------------Assaying M3695 --SGS Lakefield------Assaying M3697---SGS Lakefield------Assaying M3715---SGS Lakefield-------

SUB-TOTAL Expenditures--------------------

Claim 1243368

3.2 km. linecutting @ $350/km-------------3.2 km. proton magnetometer @ $134lkm---2 days A TV Isnowmobile @ $75/day---------report + maps @ $350/day-------------------

S U B-TOT A L Expenditu res----------------------

Total Expend itu res--------------------------------

3814793 CANADA INC. u_ CLAIM STATUS

UNPATENTED CLAIMS - Corblere Township

$1750.00 $ 670.00 $ 150.00 $ 685.00 $1802.95 $1813.65 $1792.25

$8663.85

$1120.00 $ 428.80 $ 150.00 $ 438.50

$2137.30

$10,801.15

Claim Ii. Units Hectar~ Qw QatSl AssSlssmSlnt RSlQujrSld ($) QQntigUQ!'!~ ~rQUP 1 1243399 4 64 April 23.2005 1600 1243398 1 16 April 23.2005 400 1243397 1 16 April 23, 2005 400 1243383 1 16 April 23,2005 400 1243385 3 48 April 23, 2005 1200 1243382 3 48 April 23, 2005 1200

QQntigUQ!'!~ ~rQl.!g 2 1243368 1 16 May 27,2005 400

Documents

Proton Magnetics -Caustic Dissolution Summary Report