RPT ON MANUAL STRIPPING TECK TP · exposure", apparently averaging 0.10 over the length, with one weighted [chip] sample averaging 0.22/10.5'. Several phases of diamond drilling in

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42A01NE2050 2.25774 TECK 010

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GEOSCIENCE ASSESSMENT _____OFFICE

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TECK CLAIMS of B. McCOMBE A P. CULHANE

PART OF FORMER FEDERAL KIRKLAND MINING PROPERTY

Scope of Report: This report is based on files supplied by the owners which were copied from the assessment file submissions at the MNDM office; a summary of the report by the principles is also included. The writer was asked to prepare a preliminary budget for a comprehensive exploration program on the claim groups based on these reports and his extensive knowledge of the Kirkland Lake and area geological environment.

Property: The property comprises 17 claims totalling 25 units in three separate groups as follow: Group claim number (units)

West Group-1227230 (4 units)

Central Grp- 1225890 (1 unit)1227229 (1 unit)1239134 (1 unit)1242940 (1 unit)1242943 (1 unit)1242952 (2 units)1242962 (1 unit)1242967 (1 unit)3004538 (1 unit)3010010 (1 unit)3010012 (2 units)3010013 (4 units)

East Group- 1222223 (1 unit)1199546 (1 unit)1227076 (1 unit)1239355 (1 unit)

Location and Access: The claim groups are located immediately north of the Town of Kirkland Lake with the East Group adjoining, and accessed through the Federal Area of the town; the Central Group lying under and around the former Teck Hughes Mine Tailings Basin reached via bush road from the west side of the airport road; and, the West Group, 400 m west of the boundary of the Central Group and approximately one mile north of the Macassa mill.

General Geology: The general geology of the western and central claim groups is

essentially the same, comprised mainly of Kinojevis Group mafic and intermediate volcanic pillowed and massive flows that strike roughly @ 075 and dip steeply south. The Teck Township map, 1945-1, indicates a syncline and anticline combination cutting the Central Group. The volcanics are unconformably overlain by sediments, greywacke and conglomerate, of the Timiskaming Group. These, in turn, are intruded by various phases of alkalic dikes including augite syenite, felsic syenite and syenite porphyry. The East Group is entirely underlain by Timiskaming Group sediments and intrusive while the unconformity passes through the southernmost claims of the Central Group. The West Group lies entirely within the Kinojevis Group volcanics.

Previous Work: Previous work has been summarized in a brief report by Culhane (attached); early work is summarized by Thomson in his report (Ontario Department of Mines, Vol, Part, 19) on Teck Township.

West Group: The most comprehensive report covering the West Group of claims was completed by G. Mullen as part of an OPAP grant done on his Shamrock group in 1992. Highlights include: the sinking of at least three different shafts ranging from 26- 90 feet in depth beginning in 1923. In addition, a number of pits and trenches had been dug along strike on several quartz veins in porphyry related to the veins tested by the shafts. An assay of S16.80 was reported in 1936. The surveys by Mullen included prospecting and mapping in addition to airborne Mag and VLF surveys that had been done earlier in the year. The mapping uncovered two strong shear zones cutting across the group as well as large blocks of quartz blasted from pits in the 20's.

Central Group: In 1994, a report was prepared by RA Campbell on the Cohiba- Kirkland Prospect, a group of claims that coincides closely with the Central Group. Apparently, very little work is recorded for this area but numerous pits and trenches attest to the past activity. The most comprehensive work was conducted by Newfields Minerals around 1987 on claim 1227229 and immediately to the south both from surface and from underground (3075'L of Lake Shore Mine). The Newfields Break reportedly crosses the southeast corner of the claims. A value of 0.44 opt/ 5.1' was reported in a diamond drill hole in a brown altered zone that lies along the unconformity between the volcanics and the Timiskaming package. Magnetometer, VLF and geological mapping surveys were conducted on the property. The surveys indicated a number of VLF conductors and shears/ faults that needed to be tested.

East Group: The East Group covers part of the former Federal Kirkland Mine located north of, and adjacent to two former producing mines of the Kirkland Lake Camp, the Sylvanite and Toburn Mines. The 745' shaft, now capped, is located on elm 1222223. In addition to the mine development and underground exploration from the Toburn mine as well as extensive early surface work on the group, Goldhunter Exploration carried out a program including power stripping and diamond drilling. Results of this work, which are summarized by Culhane, include power stripping of a vein near the shaft

which reportedly "resulted in high assays over the entire length of the 350 foot exposure", apparently averaging 0.10 over the length, with one weighted [chip] sample averaging 0.22/10.5'. Several phases of diamond drilling in 1986-87 included a number of holes on the current claims. Assays from 6 of these holes ranged from 0.17 to 0.34 over widths of 0.8 to 4.0'.

Summary and Recommendations: Because of the fragmented nature of the land tenure in the past, with individuals owning single patented claims that required no assessment work, much of the land remained sterile. It was difficult to put together a solid group(s) of contiguous claims for comprehensive exploration. The fact that these claims have received little attention over the years, combined with the concept that the best place to explore for a new deposit is within sight of a current headframe and the positive historical results to date, make this an interesting property for exploration.

Exploration should include a mix of prospecting, geological mapping, geophysics and follow up stripping, sampling and diamond drilling.

Initially, a new grid would need to be cut on each claim group on 100m grid line spacing for control. This would be followed up with prospecting of the claims to locate and flag all the old trenches, pits and shafts and then partially cleaning around these features to allow for evaluation and sampling during the geological mapping phase of the program.

Since magnetometer and VLF surveys have already been completed, a real section IP survey, possibly combined with down the hole physical properties should be a valuable tool for outlining potential targets in the areas under the tailings and associated with the BAZ zone and the unconformity between the Kinojevis group and the Timiskaming.

Once the targets have been outlined by prospecting, mapping and geophysics, follow up work should include power stripping and washing to uncover the old veins and structures. A program of rock trenching and channel sampling with a saw should be implemented to evaluate surface potential. The depth component would then be evaluated by a campaign of diamond drilling.

A summary of costs totalling 3305,400 is given in the table below

TECK WORK PROGRAM PROPOSAL

Type of Work Number of Units Cost/ Unit Total Cost

Linecutting 30 Kms S3807km 311,400.00

Prospecting 15 days 3250/day 33,750.00

Geological Mapping 15 days 3350/day 35,250.00

Geophysics- IP Geophysics- mag/em

Helpers-geology/prosp

Stripping- backhoe

Washing

Sampling/ channels Sampling/ saw Sampling/ chips

Trenching/ blasting Trenching/ materials

Drilling- 30 holes Drilling- extra costs

Assays

Supervision

Reports

Miscellaneous

TOTAL

5 days 30 km

40 days

60 hours

25 days

30 days 30 days 1 0 days

1 0 days

15,000 feet mob/ demob/etc

500 per unit

30 days

1 0 days

32500/day 3450/km

3150/day

590/hr

5400/DAY- all in

5250/day n-saw 350/day 5250/day

5250/day +mat'ls

515/ft+extras

515/ea

5350/day

SSSO/day

312,500.00 313,500.00

36,000.00

35,400.00

310,000.00

37,500.00 31,500.00 32,500.00

32,500.00 31,500.00

3225,000.00 315,000.00

37,500.00

510,500.00

33,500.00

355,200.00

3400,000.00

FR Ploeger, BSc, P. Geo.

GOLD PROSPECT- KIRKLAND LAKE, ONTARIO

TECK TWP., LARDER LAKE MINING DIVISION

16 CLAIMS-24 UNITS

PAT C LI l J IA NE BARRY McCOMBE

701 DON MILSS ROAD KIRKLAND LAKE A PT., 1408, TORONTO ONTARIO ONTARIO, M3C 1R8

TEL 416-467-9192 TEL 705-642-3242CEL 416-919-7533E M [email protected]

The land package includes 16 claims, 24 units, Teck Twp., Larder Lake Mining Division, Kirkland Lake, Ontario, listed in appendix A.

The Federal Kirkland Mining Company -1926, former shaft is located in the claim group, claim L 6527, presently claim 1222223, the property adjoins the Sylvanite arid Toburn Mines on the North boundary. The Company sank a shaft, 3 compartments, to a depth of 740 feet and drifted on 3 levels, 220, 500 and 700 foot horizons.

The Federal Kirkland Mining Company and the Toburn Gold Mine in December 1938 combined and jointly carried out exploration work where a crosscut was driven from the 1,100 level of the Toburn and entered the Federal Kirkland property, a cross cut was also driven northwest from (he 2,475 foot level of the T'oburn mine: and entered 251 feet: into the Federal Kirkland property.

The Federal Kirkland Mine shaft is adjacent to a vein on which considerable trenching has been completed on surface. The vein is a structure showing some displacement and dips vertically for 70 feet: below where it is inclined to the south, showing on the 200 foot level 25 feet from the shaft, there is 200 feet of drifting in a west direction and some cross cutting on this level, where the vein dips 60 * S, is bounded on the north by porphyry, on the south by lamprophyre, also red tuff masses occur near the west end of the drift. The vein is located on the 700 foot level by a crosscut approximately 80 feet long

GOLDHUNTER EXPLORATION INC. - 1986

Goldhunter carried out an exploration program on the Federal Kirkland shaft area, which included extensive surface power stopping and resulted in high assays over the entire length of the 350 foot exposure, a weighted average of 0.22 opt over 10.5 feet sectional width

A drilling program was carried out including 18 holes, 13 of which are located on claim 1222223

86 1-6,11-15,17,18

DRILL, HOLE ASSAYS

86-5 assay 0.17 opt over 3.5 feet:86-12 assay 0.185 opt over 1.8 feet86-13 assay 0.340 opt over 0.8 feet86-18 assay 0.223 opt over 4.0 feet

.A second drill program was carried out in 1987, including 9 drill holes for a total of 9,000 feet on claim 856544, presently 1227076.

87-G3 assay 0.32 opt over 2.3 feet 87-G4 assay 0.24 opt over 0.8 feet

The geology of the property exhibits many of the characteristic features, ol the Kirkland Lake camp including larnprophyres, conglomerates, wackes, trachytes, augite, syenites and porphyries with alte.rudon. as being serialized, also shearing and faulting. The Sylvanite fault passes north south through the center of claim 1227076. A band of syenite approximately 500 feet wide crosses the property in a east west direction, also patches of sediments and tuffs occur around intrusive bodies on die property.

COLUMBAS KIRKLAND GOLD MINING COMPANY LTD. - 1926

A shaft was sunk to a depth of 26 feet on claim L 3034, presendy claim12227230.

1927, surface trenching, test pits where completed by 6 workmen, and a second shaft was sunk to a depth of 50 feet, also 28 feet of drifting was completed south of the hanging wall.

The area is subject of several studies and encourages continued exploration work on the property.

4.

The studies are available for study on electronic format with reference lo

1937 Blanugruncl study by G C Seaborn

1964 Ontario Dept of Mines, Circular 11, by G M Charlewood

1989 report 2.12900 Shamrock prospect by J E Hansen

1989 report 2.12249 Shamrock prospect by L l. Ahem

1993 report 2.14923 Shamrock prospect by G Mullan

1994 report 2.15659 Coliiba Kirkland prospect by R A Campbell O DM file KL 4361 -4509-4597

1989 Golhunter Exploration

THE ABOVE NOTED REPORTS ARK AVAILABLE ON ELECTRONIC FORMAT FOR STUDY (.by, e mail or disc request)

The following excerpts are form previous reports

Report 2.144923 Shamrock prospect

A previous exploration summary indicates trenches, pits and two shafts are located within the claims and indicate the earlier, unrecorded exploration programs.

The annual report for 1923 ( AR 32-4 ) contains a colored geological map ( # 32e ) for the Kirkland Lake gold area showing the Shamrock claims as then belonging to the Columbas Gold Mining Company.

The mineral deposit inventory ( MDI) file for this name indicates that the initial work was completed in 1922-23 and consisted of the building of

camps and sinking of a shall, further work was completed in 1925 including diamond drilling, an additional claim was acquired ( Cooper # 3034,

presently claim 1227230 , with shaft sinking completed to 26 feet. In 1927 work was directed to areas near the west end of the north arm of the lake. A shaft was sunk to 50 feet with 28 feet of drifting south into the hanging wall ( ODM AR 37-1,1928 page 91).

1930 Lac -Teck Gold Mines Ltd., conducted a substantial program on the claims now included in this package. Newspaper clippings from the Northern Miner for 1936 indicate that the program was substantial in scope.

A new showing described as mineralized quartz and porphyritic vein fill material ( Aug 6, 1939, page 9 ) has been located 400 feet north of the shaft, an assay of l 16.80 gold @ f 20.67 was reported in the discovery, and later reports indicate this vein was located 200 feet further east of the quartz vein in the porphyry.

A summary report dated Oct 15, 1936 ( page 40 ) edition stated that over 500 feet of trenching had been completed, in addition to the cleaning out of older trenches ( 2000 feet) also pits and shafts. The number l shaft was described as being 30 feet deep with 22 feet of crosscut heading south into a 9 inch vein. This vein had been located in trenches and pits further to the west. The 3- compartment #2 shaft was reported to be 42 feet deep, # 3shaft as being 20 feet deep. The best mineralization and most of the gold values are in areas of drag folding within the poiphyry which has been stripped at irregular intervals. A 6 to 12 foot wide shear zone has been located parallel to the porphyry and traced for over 250 in length. The annual report for 1937 ( AR 46-1 ) summarizes work conducted by Lac-Tek.

1988 work conducted includes airborne surveys, grid cutting, magnetic and VLF surveys and 2 drill holes, completed by Tundra Gold Mines Ltd., surveys resulted in. several high priority targets. Anomaly VA-1 correlates well with the shear observed in several pits and the main ( 2 compartment shaft. Anomaly VA-2 is displaced slightly to the north and appears to follow

Uie contact between die gabbro ( 3G ) and the volcanics ( V7 ), total strike length of these two features together is approximately l 800 feet.

Report 2.15659- COH1BA-KIRKLAND PROSPECT R.A. Campbell 1994

1987, Newfields Minerals completed an exploration program on claim 1187007, presently claim # 1227229, work was concentrated on four parallel 095* striking structures, 04 break, narrows break, 29 break and die Newfields break. The Newfields break crosses the southern part of claim 1187007 , ( 1227229 ) , gold is found in the BAZ ( brown altered zone ) within the 150 wide Newfields break, hole 17 drilled towards die southeast corner of claim 1187007 (1227229 ) intersected 0.44 ox/ton over 5.1 feet near the property boundary.

SUMMARY

The surveys have identified 9 targets widi very strong recommendations for further exploration study.

A budget proposal and work schedule are presently being compiled for the season exploration work.

PROPERTY LIST

TECK TWP,. KIRKLAND LAKE

CLAIM NUMBER

1222223

1227076

1227229

1227230

1239355

1242940

1242943

1242952

1242960replaced with new claiin-

1424962

1242967

3010010

3010012

3010013

1199546

UNIT' SIZE

1

1

1

4

1

1

1

2

1-12391 34- -.

i. s--i^J X J. ,S T

1

1

1

2

4

1

WO J

293

308

400

1 600

400

400

400

800

400 - 400

-400

400

400

800

1 600

400

WORK REQ., DUE DATE

2003 Aug 10

2003 Aug l O

2003 Get 12

2004 J un 28

2003 Aug 24

2003 J un 19

2003 J un 07

2003 Jun 07

2002 Dec 22 2004 Mar 28

2004 Apr 03

2004 Apr 03

2004 Get 04

2004 Get 28

2004 Get 28

2003 Nov 03also 5007o o/b Mike Lcheay

3004538 l '100 2004 Get 25

confirm claims and numbers , amend dlr agreement

16 claims 24 units

ONTMIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Transaction No:

Recording Date:

Approval Date:

Client(s):

392582

Survey Type(s):

W0380.00966

2003-JUN-06

2003-SEP-19

Work Report Summary

Status: APPROVED

Work Done from: 2003-JUN-03

to: 2003-JUN-06

DIAMOND LAKE RESOURCES INC.

PSTRIP

Work Report Details:

Claim* Perform

L 1242940 SO

L 1242943 SO

L 1242952 54,387

54,387

External Credits:

Reserve:

Perform Approve Applied

SO S800

SO 51,187

S3.187 52,400

53,187 S4.387

SO

SO Reserve of Work

SO Total Remaining

Applied Approve

S400

5787

52,000

53,187

Assign

SO

SO

S1.987

51,987

Assign Approve Reserve

o soo so

1,187 SO

S1.187 SO

Reserve Approve Due Date

SO 2004-JUN-19

SO 2004-JUN-07

SO 2005- J UN-07

SO

Report*: W0380.00966

Status of claim is based on information currently on record.

42A01NE2050 2.25774 TECK 900

2003-Sep-24 15:03 Armstrong-a Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date: 2003-SEP-23

Ministere du Developpement du Nord etdes Mines Ontario

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

DIAMOND LAKE RESOURCES INC. BOX 385, 53-8TH AVE., LARDER LAKE, ONTARIO POK 1 LO CANADA

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

Dear Sir or Madam

Submission Number: 2.25774 Transaction Number(s): W0380.00966

Subject: Approval of Assessment Work

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

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

The revisions outlined in the Notice dated August 05, 2003 have been corrected. Accordingly, assessment work credit has been approved as outlined on the attached Distribution of Assessment Work Form.

If you have any question regarding this correspondence, please contact STEVEN BENETEAU by email at [email protected] or by phone at (705) 670-5855.

Yours Sincerely,

Ron GashinskiSenior Manager, Mining Lands Section

Cc: Resident Geologist

Diamond Lake Resources Inc. (Claim Holder)

Assessment File Library

Diamond Lake Resources Inc. (Assessment Office)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:18697

42A01NE2050 2.25774 TECK 200

MSOOOE

UTM Zone 17 5000m gr d

a wishing to stake mining claims should consult with the Provincial Mining Recorder*' Office of the Ministry of Northern Development and Minx for additional Genera! Information and Limitationsnatlnn nnlhtt fttahift nf the lands shown human. Thlsmao ft not inMndAd for njiviaatlonal. Rurvav. or landtttto datnrfnlnatfan DtirooMS ax thn Information n^.*..* i.f 11^.,

This map may not show unregistered land tenurei nosa Wlfinmg to siaKa mining claims enouio consult wnn ma rrovmciai Mining Kaooroari' i/mce OT ma Ministry or nonnarn uavaiopmem ana Mines Tor aaamonai general inrarrnBiiInformation on the statu* of the lands shown hareon. Thltmap i* not Intended for navigational, aurvey, or land tttte determination purposes as the Information Contact Information: Toll free Map Datum: NAD 83 land Including cartaln patenta, laaaes, easements, right of way*, shown on this map Is compiled from various sources. Completeness and accuracy are not guaranteed. Additional Information may also be obtained through the Provincial Mining Recorders' Office Tel: 1 (868)415-9846 ext 67*itojeetion: UTM (6 degree) flooding rights, licences, or other f *ms of disposition of rights and local Land Titles or Reality Office, or the Ministry of Natural Resources. willet Oreen Miller Centre 933 Ramsey Lake Rond Fax: 1 (877) 670-1444 Topographic Data Source: Land Inforrratlon Ontario Interest from the Crown. Also cert lin land tenure and land usos

Sudbury ON P3E8B5 Mining Land Tenure Source: Provincial Mining Recorders' OHc* "tat restrict or prohibit free entry ti make mining dalms may not be The Information shown Is derived from digital data available In the Provincial Mining Recorders' Office at the time of downloading from the Ministry of Northern Home Page: www,mndm.gov.on.ca*INDM;MiNeSA.ANDSAiilsmnpgewm Illustrated.D*v*lopm*rrt and Mines web sit*.

ONIMUO WIIISTItr OF MO*tHMtN WVILOPMIMT WO WMEO

-,-'-,l'.-r, f ~ M10VWICtAt.llllllli)C A N A DA neconoeiri omce

Mining Land Tenure Map

Date l Time of linue: Thu Sep 25 10:43:45 EDT 2003

TOWNSHIP / AREA PLAN TECK G-3719

ADMINISTRATIVE DISTRICTS l DIVISIONS

Mining Division Larder LakeLand Titles/Registry Division TIMISKAMINGMinistry k Natural Resources District KIRKLAND LAKE

TOPOGRAPHIC Land Tenure

Sur-tMAnd Mining Rlgm*

F"] Coocisiitm, Ut

f """j PravMal P*rk P"!Mining RigMs Only

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Mining Rights Only

Land Us* Psrmit

Oroir In CouirJ (NM opan for Making)

Waiar Power Lease Agreement

Mining cwm

FMOnlyMMngaam

LAND TENURE WITHDRAWALS

Wl

Onfei In Council WMrawM Ty|xs V/fcrn HurfAM And Mining RlgnutWItHtlrBWfl Wl S 14fc.RIBI.UCmyWftrdTOnW*m MlmnQ mg** Only wilhorMvii

IMPORTANT NOTICES

LAND TINURE WITHDRAWAL DESCRIPTIONSIdentifier Type Date DeuHptlon

385! w*ffl ConReswve vVtrn W 20/78 Wsm W 66/80

W-L-17/00 W-L-18TO W-L-31/88 W-L -46/96

Wm Wsm Wsrn Wm Ws

Jan 1,2001 Apr e. 2001 Jan 1,2001 Jan 3,1980 May 27,2000 Apr 27,2000 Aug 11,1998 Oct 27,1998

MNR RES. FILE 101409

Mfltonvllle Bernhardt Muskeg Mspie Moraine Conservation ReserveSECTION 36/60 NR W 20(76 C-3-7* SR t MR 16070SSECTION 38/80 NR W 66/80 3-1-80 M.R.0.1807058EC.35 W4.-17VOO 2000/06/27 S*M 1(8160Sec. 35 W-L -18700 2000/04/27 M+S 1661 SOSBC. M W-L-31/98 1W8W6 MROSEC.35 W-L-48/98 OCT 27/98 S.R.0.1951SO

IMPORTANT NOTICES

Area* under which ipftdfl! regulation, (imitations or conditions exist that affect normnt prospecting. srt*Wnp and minoml dsvetopme

t, 5Crd*tCOMDITIOM* ACHV