CHESTER J. KURYLIW, M.Se., CONSULTING; GEOLOGIST 46 INGALL DR. DRYOEN, ONTARIO PUN 3B7 THE KURYLIW CHROME-QUARTZ DEPOSIT SIOUX LOOKOUT AREA

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1 CHESTER J. KURYLIW, M.Se., CONSULTING; GEOLOGIST 46 INGALL DR. DRYOEN, ONTARIO PUN 3B7 I-HONB THE KURYLIW CHROME-QUARTZ DEPOSIT CD r--* CO jd no 9 m SIOUX LOOKOUT AREA NORTHWESTERN, ONTARIO 5 NOVEMBER 18, 1996 CHESTER J. KURYLIW REG y V DEC 12 iqq MINING LANDS ^ 52K01SW WHIPPER LAKE 010

2 TABLE OF CONTENTS Project location Location maps Access to project site Exploration History Regional Geology Local Geology Results of Stripping Economic Geology and Sampling Conclusions Recommendations Certificate LIST OF ILLUSTRATIONS Key Map Road Access Map Claim Map Regional Geology Map Plan of Chrome Quartz deposit Photograph of Chrome-Quartz trench Photograph of Samples miles l"s 8 miles l"s i mile 1'^ 33 miles i"- 2 0 feet 52K01SW WHIPPER LAKE 01OC

3 Ar.aofOntirto-407.2S2 a^vi*. LEGEND ^ E y OPEN PIT QUARTZ OREBODY EMERALD- GREEN QUARTZ

4 ': r " "~k L. - -^r*" ji'c-, 'BLOCK. ^ NO to Miles 8 Scale l : 506^80 or l Inch to 8 Miles Miles ACCESS

5 \ O ^... VERMILION ADDITIONAL FOR STATjS REFER TO TWP PLA

6 KURYLIW CHROME-QUARTZ "NEW EMERALD" DEPOSIT 3 PROJECT LOCATION The deposit is located in claim block , Whipper Lake plan, G-2262, scale l" J mile and NTS-K01, and latitude 50 degrees-04 min. North, and longitude 92 degrees-17 min. West LOCATION MAPS Claim map, Whipper Lake, G-2262 Scale l"^ mile Key Map, Scale l'^200 miles Ontario Regional Geology Map Scale l"s 33 miles (After C.E. Blackburn et al, GAG-1982) Road Map, Scale V ^ 3 0 miles ACCESS The Chrome-Quartz deposit is located 5 miles (8Km.) West of the town of Hudson, Ontario. The town of Hudson can be reached from Highway 72, 8 Km. South of Sioux Lookout, Ontario and then 30 Km. along Highway 664 to Hudson. A previously built road that was overgrown with large alders was cleared to form a l mile (l 172Kms.) truck road to the deposit site. EXPLORATION HISTORY The first recorded report on the Chrome-Quartz deposit was written by H.L King in October 1972, the Resident Geologist for the Kenora district.

7 CHROME-QUARTZ THE NEW EMERALD DEPOSIT OTNAM 9AV \"OU* LOCKOUT VOLCANICS Predominantly volcanic rocxt Pfldominantlv MOMntmarv ro( Granitoid Mate ana ultramalie in Figure t. Stratigraphic units of the western Wabigoon Subprovince and its margins. Blackburn. C.E. Breaks. F.W., Edwards. G.H.. Poulsen. K.H.. Trowell. N.F.. and Wood, J. 1962: Stratigraphy and Structure of the Western Wabigoon Sub-. province and Its Margins. Northwestern Ontario; Geological Association ot Canada. Field Trip Guide Book. Winnipeg.

8 4 Mr. King was accompanied by Mr. Edsterom and Mr. Smith who were associated with the deposit that was then known as the Rainbow Quarry. P. A. Palonen, then Resident Geologist as Sioux Lookout wrote a short report on his visit in July, REGIONAL GEOLOGY (In part after C.E. Blackburn et al, 1985) The Chrome-Quartz deposit occurs as a narrow bed and/or a vein that occurs at the Top contact of the Botham Bay Volcanic Group and underneath the Patara Group of Sediments. The above Volcanic-Sedimentary belt occurs near the northern part of the Volcanic-Sedimentary sequences of the Western Wabigoon Sub-Province of Archean Rocks in the Sioux Lookout area of Northwestern, Ontario. The Basal Botham Bay Volcanic Group, on the Northside of the Sub-Province is a dominately South facing series of Mafic flows with local Chert and Iron formation near its top. The Volcanics are overlain unconformably by the Patara Group which is formed of a sequence of Volcaniclastic sedimentary rocks and intermediate to Felsic pyroclastic units that were intruded by Felsic Porphyritic Plutons. LOCAL GEOLOGY - ROCK TYPES - 1. BASALTIC VOLCANIC FLOWS This flow forms the North boundary of the Chrome-Quartz

9 5 Deposit series. This Basaltic flow is dark green, with stretched pillow selvage structures and in parts appears to be a Flow-Top. 2. GREYWACKE SEDIMENT This large Sediment group is located to the South of the Chrome-Quartz deposit contact. The Greywacke is a dark green meta sediment. At its contact with the Chrome-Quartz the Sediment is highly altered to a "pearly" micaceous Sericite Schist. 3. THE CHROME-QUARTZ BED AND/OR VEIN This is an evenly banded rock that at its northern contact portion exhibits regular 2cm thick bands of greenish quartz and bands of white cherty looking quartz. appearance, would be termed a Sediment. This northern portion, in The southern contact area of the Chrome-Quartz deposit has resemblances to both Sedimentary and Hydrothermally introduced Quartz. The original true thickness of the Chrome-Quartz trend was about 6-8 feet. The Chrome-Quartz was later intruded along its trend by a b rown lamprophyre dyke that is 4-5 feet thick. Previous to the intrusion of the Lamprophyre dyke an irregular slightly brownish Quartz veining was emplaced that now occurs near the walls of the dyke. The Chrome-Quartz deposit exhibits its more intense brilliant green colour near its Southern contact and at it narrower western end of its exposed trend.

10 x x / / / / TRENCH l CHROME QUARK STRONGLY snuci-ruhi) DEEP TRENCH IV 0V. LINE 00-N l l l l l l ^y^. ^. ; BASALT LAVA ; t PLAN of CHROME-QUARTZ DEPOSIT KURYLIW CLAIM Pa VERMIL ION - A DDITIONAL T W B- XTo v N-W ONTARIO, CANADA.//^ ^s y o SCALE: 4Sfe FEET g S S 2 g ^Tvy***L/ i i i i i 7^ METERS 0 0 S 8SJ W - ~.. NOV. 15, 1996 CHESTER J. KURYHW, M.Sc., f CONSU1.TINO GEOLOGIST 46 JNGAI.I, Da. DRVDEN, ONTARIO PSN SB ^-^* ^TW

11 PHOTOGRAPH CHROME-QUARTZ TRENCH AT THE WEST END : LOOKING EAST

12 The bright emerald green colour in the Chrome-Quartz is due to the presence of a chrome rich Mica (Mariposite-Fucshite). This southerly side of the Chrome-Quartz deposit is composed of alternating bands of bright-green quartz 1-5 cms. thick interlayered with siliceous bands of Chrome-Mica-l-3mm. thick. Very finely dispersed fine grains of Chrome-Mica gives the green quartz bands its colour. Physically this rock has a hardness of 7, and can be parted along one plane at the location of narrow beds of Chrome-Mica that occurs parallel to the strike, and dip of the bedding of the deposit. There was no recognizable natural jointing or cross fractures. It is expected that facing stone cut parallel to the strike and dip plane will exhibit a strong, cohesive, and tough building stone that would probably be best suited for interior facings. GEOLOGY This writer leans towards the conclusion that the Chrome- Quartz deposit was essentially a Sedimentary Bed that was later modified in part by the introduction of Hydrothermal Quartz. Some support for hydrothermal activity is indicated by the intense Sericitization of the adjoining Greywacke. Mapping indicates that the Chrome-Quartz trend has been folded into a gentle arc but at its Eastern end a severe fold occurs that limits the exposed Eastern trend. This writer is inclined to assume that a Monoclinal

13 7 fold shifts the volcanic sedimentary contact Southwards and to the East. Further prospecting is warranted to locate the Volcanic- Greywacke contact and to determine if extension of the Chrome- Quartz occur. RESULTS OF STRIPPING The site of the Chrome-Quartz deposit was stripped of overburden and the original trenching along the Chrome-Quartz trend was washed using a Wajax pump. Mapping then followed the Chrome- Quartz trend and some clarification of the Geology resulted. A second attempt was made to find the extension of the Chrome-Quartz Westwards by stripping, a long deep trench was excavated with inconclusive results. The flat overburden surface to the West of the exposed Chrome-Quartz falls into a deep cliff-like valley so that bedrock was not reached even at the depth of 1 2 feet. Further stripping must be suspended, until prospecting succeeds in locating near surface extensions. ECONOMIC GEOLOGY AND SAMPLING CHROME QUARTZ. THE "NEW EMERALD" STONE A very unique deposit of Chrome-Quartz that exhibits an attractive bright green colour, located about 75 miles N-E of Dryden, In Northwestern Ontario, is being developed for Quarrying. An access road has been built and the vein-like

14 Deposit has been stripped and washed of overburden over a length of 160 ft.,(50m). 8 The Chrome-Quartz bed is best coloured as its Southern contact and especially the Western 100 ft. length where it is narrower and forms a wedge l -J ft. Thick at its Western end to 3 feet thick 100 feet East of the West end. The Chrome-Quartz thickens to a total of 5-6 feet at its Eastern end over a length of about 60 feet. Physically the Chrome-Quartz has a hardness of 7, It is Cryptocrystalline and tough. It is being called the "New Emerald" Stone because of its bright green colour and because the finely dispersed green Chrome-Mica in the Quartz is the same finely dispersed Chrome Mica that gives Beryl Crystals the green colour of true Emeralds. This writer is still very much into the process of assessing the potential value of this deposit. The known "to-date" available tonnage is not very large, so that specialty products, not bulk products, project the greatest economic viability. The following five different product lines have been considered and initial sampling has been carried out and some inquiries as to marketability have been made, which is still only "scratching the surface" of the broad aspects of markets. This deposit should be considered as an Eastern and as a Western portion. ( 1) S awn Facing stone (2) Split Flagstone

15 CHROME -QUARTZ -THE NEW EMERALD PHOTOGRAPH OF SOME OF THE SAWN SAMPLES OF CHROME-QUARTZ to provide SAMPLES OF STONE-FACINGS and for STONSCRAFTS.

16 9 (3) Crushed Decorative stone (4) Stone-crafts (5) Semi-precious qemstones (1) SAWN FACING STONE The initial assessment of the Western portion of the Chrome- Quartz deposit is that this brighter green quartz of greater clarity should be used in specialty markets. The tonnage per vertical foot is in the order of 17 tons (or 1700 tons to a vertical depth of 100 feet). This small tonnage assumes significant proportions when it is considered for quarrying and sawing into facing stone slabs 2-2 i cms. thick. This 100 ft. length of deposit would provide 1,800 sq. feet of facing per foot of depth. Assuming 1,000 sq. ft of this facing stone was first grade quality, then down to a depth of 100 ft. The deposit should produce 100,000 sq. feet of facing stone. Using "ball park" calculations the facing stone could be produced for under 100. per sq.ft. and be sale priced at 150. per sq.ft. These figures would indicate a gross value of 115,000,000. and a potential profitability of $5,000,000. (2) SPLIT FLAGSTONE The 5-6 ft thick Eastern portion of the Chrome-Quartz deposit lends itself well to coarse stone blasting and shipping to markets for splitting into flagstones that can be used for various architectural decorative stone applications. Down to a depth of

17 f t., 2,500 tons of deposit are available of which about, 2,000 tons could be used for flagstone. The flagstone could generate a gross value of 11,500,000. and a potential profitability of 3500,000. (Note: Some enquiries from Minneapolis, Minnesota area for this flagstone have been made.) (3) CRUSHED DECORATIVE STONE Coloured crushed architectural stone can be produced as a by product of flagstone mining (using the fines). This is projected to total 500 tons of by-product that can be used for decorative purposes such as architectural stone, fountain and aquarium stones, decorative lawns, gardens etc. This crushed rock could generate about 150,000. gross value and a 50,000. profit. (4) STONE CRAFTS The attractiveness of the Emerald green stone has a ready market for stone Grafting. The total market does not add up to a large tonnage market. Efforts in this direction are limited. (5) SEMI-PRECIOUS GEMSTONES This writer has prepared some samples in a tumbler to produce random shaped stones. These stones will be shown to gem crafters to determine the quality, suitability and marketability. This is a highly speculative potential product and no real assessment can be made at this time.

18 11 CONCLUSIONS The Chrome-Quartz deposit is composed of a very attractive bright Emerald-green Quartz that is essentially unique. There are no known deposits to compete with so that market prices can be established to ensure reasonable profitability. The comparative limited tonnage of this Chrome-Quartz deposit requires the production of specialty products to result in a greater total profitability for the deposit. The greatest profitability would result from the productions of sawn stone facings because a substantial stone-facing area of at least 100,000 sq. feet is available. Considerable efforts to locate markets for this facing stone is required. The production of architectural flagstones is potentially profitable on a smaller scale and initial enquiries indicate marketability. The productions of crushed decorative stone is also marketable but the tonnage production is essentially a by-product of flagstone mining. The coloured stone is attractive enough for use by stone crafters for production of their various products. This market is of limited tonnage. The semi-precious gemstone application is uncertain and speculative because at this time insufficient determinations as to the suitability and marketability, have been carried out.

19 12 A concerted effort should be make to locate markets because the potential for a profitable operation of reasonable size may be established. November 18, 1996 Chester J. Kuryliw, M.Sc.P.Eng,

20 13 RECOMMENDATIONS (1) Prospecting to locate the extensions of the Chrome-Quartz deposit that may continue to occur along the Volcanic- Sedimentary contact should be carried out. (2) A widespread effort should be made to locate markets for facing stone and flagstone and other product uses of the Chrome-Quartz deposit. November 18, 1996 Chester J. Kuryliw,LM.Sc.P.Eng

21 PHONE CHESTER J. KURYLIW, M.Sc., P.EN.;. CONSULTING GEOLOGIST 46 INGALL DR. DRYHEN, ONTARIO PSN 3HT CERTIFICATE I Chester J. Kuryliw of **6 Ingall Drive, Dryden, Ontario do hereby certify that: (1) I am a Professional Engineer and I am currently employed as a Consulting Geologist for several mining companies. (2) I am a graduate of: The University of Manitoba B.Se. Degree, 19^9. The University of Manitoba M.Sc. Degree, (3) I am a registered Engineer of the Association of Profes sional Engineers of Ontario and also Manitoba. I am a fellow of the Geologic Association of Canada, also a mem ber of the Canadian Institute of Mining and Metallurgy. (i*-) I have practiced my profession for over 50 years, most of those years at gold mines, during which time I often plan ned, supervised and directed underground exploration, deve lopment.and. production. (5) My report is based upon my personal direction and supervision of the Prospecting, Backhoe Stripping, Washing, Sample preparations and Mapping of the Deposit. Nov. 18, 1996

22 Ontario Ministry of Northern Development and Mines Ministers du Oeveloppement du Nord et des Mines P.O. Box 3000 Sioux Lookout, ON P8T 1C6 Mr. Chester Kuryliw 46 Ingall Drive Dryden, On. P8N3B7 Dear Chester, The following are the assay results for 2 samples that I took from the Rainbow Quarry this past summer. I had always heard that there was no gold there, but never found any assays to prove it. While this sampling is not by any way conclusive of the whole occurrence, it does indicate that there may be some truth to what was said before. Of possible interest to yourself are the high Barium numbers received. The Chromium and Barium numbers for the sample of the vein suggest that the green mica is a Barium - Chromiumbearing Muscovite. Whether the muscovite is Fuchsite or Mariposite would require analysis of the mica alone to determine the relative Si:Al ratio and the presense of Mg or Fe*1. Sample No. GWS Sample Type Grab Description Rainbow Quarry Quartz sericite schist, Tr. Fe-Carb, Nil Sulphides Assay Results AU-N.D. Ba ppm Cr 487 ppm GWS Grab Rainbow Quarry Chromium mica bearing quartz vein, nil sulphides Au-N.D. Ba-3135 ppm Cr- 749 ppm Zn- 112 ppm Ni - 49 ppm I got out this past week to take a look at the stripping that you did this fall. Unfortunately, all of the rain that we have had recently made the sight realty wet and the excavation filled with water. Incidenuy, the vein looks even more impressive wet I hope that all is well with you and I look forward to your next visit Respectfully yours, ilennseun Acting Resident Geologist Sioux Lookout District Ph. (807) FAX (807)

23 CHESTER J. KURYLIW OPAP CLAIM , CHROME-QUARTZ DEPOSIT nrsrownlinf IMC1JRRED AND CHARGED 4-^ DATE._.WORK.ITEifl. CONTRACTORS. ASSISTANTS. ETC y l AMOUNT GST. (l) PROSPECTING! LOCATING. P C. Kuryliw i!! Assistant Assistant 5 day3^ ff ^ ~- -, ^, ^.^^ days, (J.TarnoWski, Dryden) days (E. Macdonald,Dryden) r ~~~ r ~ -" 'i - ' 1 1 ' ' :. ; : ; i i ' -!. j!! l Charged ^/Kjn ! (2-) -, A \ k- - \\ H - Sub-^otal ~... = $1, ~-.,r STRIPPING.:: WASHING. MAPPING, SAMPLING: j! H J li li li.-uqct -5---^ Car L, Hut chins on^c ontracting^-dry den4 Backh-O e L fc3-, ! j Nov 11. Wilf Perron Contracting, Sioux Lookout i i' " Oct 11 Wa.lax Pump Rental + H oses Stonecrafters Dryd Oct 5-Nov 12 C, Kuryliw 6-days 100/day i- H iii i ' ' li : J;.. Assistant,^U Macdonald- Dry-den- 5-days ^ ,, i;,, Truck mileage 6 trips to property, return! charged ^ per Km s i Sub-Total = S 5 f ii i. i- li li j, j: " (3) SAMPLING AND SAMPLE PREPARATION: Oct 10-Nov 19. C. Kuryliw 8-day s charged; $100.7day ^ June 12, J. K. S. Lamage Diamond Saw Blades Nov.L8,ii,Stonecraft.erB Dry.den.,,...'. ( producing samplesx.. ^ Nov.l8,i Stonecrafters, Dryden (Abrasives for Gem tumbler Nov 4, Oct l" 6 T '"~ 18 '.26 Oct 24 \ 8.52 "B " 1 i. - N ov 1 l Oct - Dryden Print^ing.Kodak.Film.J Safeway...,: Developing Films, Safeway 9*74 * Greyhound shipping.-ups. Shipping. Samples,. ^,. li PICE* ' - - Sub -Total, s- ^ 2l. 091* Nov^lli; 18 Draughting 4 Col or ing, Plans, writing, editing,, typing, "editing, copy ing, bind ing n Report! Accounting b su'bmxssion L...,-.C^. Kuryliw. $100/day $6oo.oo. -Nov-* Miscellaneous r includes typing* copying, for for pump. Electrical for sawing samples, maps, iielepttones to Contractors, MNR, etc " (Estv)"~"~ " Sub^' TOTAL CHARGES & EXPENDITURES... /...X NOTE i FCTT AS"SESSMEHT^ACC OUNf IN G"' TIME per so a^ld $ 1,250. tb^lo, ;

24 "" CHESTER J. KURYLIW OPAP 96-01^ CLAIM , CHROME-QUARTZ DEPOSIT - --._-WORK.SCHEDULE C.KURYLIS-^1SIAI)TL DATE WORK ITEM, CONTRACTORS! TIIVE TIKE NAME Aporauv* j*f l Snow M :* ^TRUCK Km s. "(T)PROS'PECTING'r "~ """ " Aue- 2, Kobiliz'n, Maps, Permits l-day l-day ij.tarnowski Aug 3, Property access Recon l -day, i.u -day ^5^....jjll Km s, S epl 7...Locating Quarry l -day l -day- i^e.dccleod- 2oQ Sepl 8 NSarking Access-road l day l - da 260 : Sep -day 260 (2) STRIPPING. WASHING. SAMPLING.MAPPING -...Oct-5 C^ Hutchinson Contractor ^-" j Oct 6 ^Dryden, Ont.; ^ i! 1-day^ JL Oct 7 l-day l -day 260 Oct 8,.,,,, ; l-day ^l 26p : : Nov 11 ;^W i l fperron C on trap t or l-day ^...1-day..260 Sioux lookout,ont. - Nov 12 Mapping l-day 260 ID'- SAMPLING ft SAMPLE PREPARATION T -.. -^ ~c- - 1-day?n J...,. Stone Facing.l-day. M i -. " :, l-day ^...:..j,...,,.1.t 3 - L..... ^.-1 * L - 1-day - Nov l -l 9: Sawing-^-Processing- Gems-2-days il. Nov 13 Draughting Plans l-day Nov 1/4- Writing Report Draught^ 1-day i Nov. 15.! Nov 16 Nov 17.Nov..18. Writing.*...E.di.ting. Eepoiiit...l -day_ Typing, editing, Color^Pl's l-day ,^p -~ ^,j. -...^....,. Accounting, Submission!l 1-day Editing, Copying, Binding 1-day. Report l! i 4 -

25 o z O o ~0. r\ m OD Z..- -\ FOR VERMILION TWP. C i c STATUS R EFER TO TWP PLAM VERMILION ADDITIONAL FOR STATUS RFFER TO TWP PLAN tt

26 Ontario Ministry of Northern Development and Mines Report of Work Conducted After Recording Claim Mining Act Transaction Number Personal information collected on this form is obtained under the authority of the Mining Act. This information will be used for correspondence. Questions about this collection should be directed to the Provincial Manager, Mining Lands, Ministry of Northern Development and Mines, Fourth Floor, 159 Cedar Street, Sudbury, Ontario, P3E 6A5, telephone (705) ~ ~" Instructions: - Plea?" "~ ~* " ri"' " nrt - Refe Recc - A se - Tecr -Ask 52K01SW WHIPPER LAKE issessment work or consult the Mining }up. i. pany this form. Recorded Holder(s) Address Client No. Telephone No. Mining Division Township/Area M of G Plan No. Dates Work Performed From: i ' To: Work Performed (Check One Work Group Only) Work Group Type Geotechnical Survey Physical Work, Including Drilling Other Authorized Work Assays Assignment from Reserve Total Assessment Work Claimed on the Attached Statement of Costs / T Note: The Minister may reject for assessment work credit all or part of the assessment work submitted if the recorded holder cannot verify expenditures claimed in the statement of costs within 30 days df a request for verification. Persons and Survey Company Who Performed the Work (Give Name and Address of Author of Report) Name Address C- J C HuTf H Ei Jiaoe 'i? /e CL Xj Sv'T Sioux (attach a schedule if necessary) Certification of Beneficial Interest * See Note No. 1 on reverse side l certify that at the time the work was performed, the claims covered in this work report were recorded in the current holder's name or held under a beneficial interest by the current recorded holder. or AgenUSignature) Certification of Work Report l certify that l have a personal knowledge of the facts set forth in this Work report, having performed the work or witnessed same during and/or after its completion and annexed report is true. ; Name and Address of Person Certifying O- i 0241 (03/S1)

27 l x- TB li 3 i&j^ 3*S ** 8 c fit" 1* V S' -i I i -t s a N^ OTN. ^ i" Q LU HI O Lil ac CD CM -H O LU O imuhb s im i 3 CD Z BMOHn-" x. ( X H ^ ^) ^0 lgb 1 s.* DB ~nf S-Ti Ifii Credits you are claiming in this report may be cut back. In order to minimize the adverse effects of such deletions, please indicate from which claims you wish to priorize the deletion of credits. Please mark (s) one of the following: 1. D Credits are to be cut back starting with the claim listed last, working backwards. 2. O Credits are to be cut back equally over all claims contained in this report of work. 3. D Credits are to be cut back as priorized on the attached appendix. In the event that.you have not specified your choice of priority, option one will be implemented. Note 1: Note 2: Examples of beneficial interest are unrecorded transfers, option agreements, memorandum of agreements, etc., with respect to the mining claims. ' -' v *...' *~. If work has been performed on patented or leased land, please complete the following: l certify that the recorded holder had ^beneficial interest in the patented or leased land at the time the work was performed. Signa Date

28 Ontario Ministry ot Northern Development and Mines Ministere du Developpement du Nord et des mines Statement of Costs for Assessment Credit Etat des couts aux fins du credit devaluation Mining Act/Loi sur les mines Transaction No./N" de transaction. OOP Personal information collected on this form is obtained under the authority ol the Mining Act. This information will be used lo maintain a record and ongoing status of the mining claim(s). Questions about this collection should be directed to the Provincial Manager, Minings Lands, Ministry ol Northern Development and Mines, 4th Floor, 159 Cedar Street, Sudbury, Ontario P3E 6A5. telephone (705) Les renseignements personnels contenus dans la presente lormule son l recueillis en vertu de la Lol sur les mines et serviront d tenir a jour un registre des concessions minieres. Adresser loute quesiton sur la collece de ces renseignements au chef provincial des terrains miniers, ministere du Developpement du Nord et des Mines, 159, rue Cedar, 4e etage. Sudbury (Ontario) P3E 6A5, telephone (705) Direct Costs/Couts directs Type Wages Salaires Contractor's and Consultant's Fees Drolls de ('entrepreneur et de I'expertconseil Supplies Used Fournitures utilisees Equipment Rental Location de materiel Description Labour Main-d'oeuvre Field Supervision c."*. Supervision sur le terrain Type fifctfho'l? hw/f #rtcjo-u t? C c*t2 Type SA*Vij^i.(C- P*.ef Vi Type ujflo/** fvnp Amount Montan! ^Sfc 375*3. f 3.^2,7^. Us. \ML j ' ^r, 7S 4 r,v Total Direct Costs Total des couts directs Totals Total global 4,7Dft i/m* ) ',6H 7J, Indirect Costs/Couts indirects * * Note: When claiming Rehabilitation work Indirect costs are not allowable as assessment work. Pour le remboursement des travaux de rehabilitation, les couts indirects ne sent pas admissibles en (ant que travaux devaluation. Type Transportation Transport Food and Lodging Nourriture et hebergement ' Mobilization and Demobilization Mobilisation et demobilisation Type Description RECEIVE DEC K ^ ~ i\j*j\j MINING LANDS BRAfx Amount Montan! -783, :o crv ^ H L -i. Sub Total of Indirect Costs Total partiel des couts indirects Amount Allowable (not greater than 20H of Direct Costs) Montant admissible (n'excvdant pas 20 tt des couts directs) Total Value of Assessment Credit (Total of Direct and Allowable Indirect coat*) Valeur totale du credit d'evaluation ftotil du coots directs tt indirect* sdmiulblet Totals Total global 79?o. 7&S Note: T he recorded holder will be required to verify expenditures claimed in this statement of costs within 30 days of a request for verification. If _- verification is not made, the Minister may reject for assessment work all or part of the assessment work submitted. Note : Le titulaire enregistre sera tenu de verifier les depenses demandees dans le present etat des couts dans les 30 jours suivant une demande A cet effet Si la verification n'est pas effecluee. le ministre peut rejeter lout ou une partie des travaux devaluation pr6sentes. Filing Discounts 1.JM 'ork filed within two years of completion is claimed at loovo of V^th, the above Total Value of Assessment Credit. Work filed three, four or five years after completion is claimed at SO 0/* of the above Total Value of Assessment Credit. See calculations below: Remises pour depdt 1. Les travaux deposes dans les deux ans suivant leur achievement sent rembourses a 100 0A de la valeur totale susmentionnee du credit devaluation. 2. Les travaux deposes trois, quatre ou cinq ans apres leur achievement sont rembourses a 50 'to de la valeur totale du credit devaluation susmentionne. Voir les calculs ci-dessous. Total Value of Assessment Credil 0.50 Total Assessment Claimed Valeur totale du credit devaluation x Evaluation tolale demandee Certification Verifying Statement of Costs Attestation de l'etat des couts l hereby certify: that the amounts shown are as accurate as possible and these costs were incurred while conducting assessment work on the lands shown on the accompanying Report of Work form. that as n B- r X"* (Recorded Holder. Agent. Position in Company) J'atteste par la presente : que les montants indiques sont le plus exact possible et que ces depenses ont ete engagees pour effectuer les travaux d'evaluation sur les terrains indiques dans la lormule de rapport de travail ci-joint. L&F& \ am authorized Et qu'ft litre de. je suis autorise (titulaire enregistre, representant. poste occupe dans la compagnie) to make this certification d faire cette attestation. 0?12(04;9II Nota : Dans cette personnes. le masculm est utilise au sens neutre

29 Ministry of Ministere du Ontario Northern Development Developpement du Nord and Mines et des Mines February 7, 1997 Sharon Kemash Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6 B5 alteenand^ourth Telephone: (705) P.O. Box 3000 Fax: (705 ) Sioux Lookout, ON P8T 1C6 Dear Sir or Madam: Submission Number: Status Subject: Transaction Number(s): W Approval We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK. If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary. NOTE: This correspondence may affect the status of your mining lands. Please contact the Mining Recorder to determine the available options and the status of your claims. If you have any questions regarding this correspondence, please contact Lucille Jerome by at jeromej@torv05.ndm.gov.on.ea or by telephone at (705) Yours sincerely, ORIGINAL SIGNED BY Ron C. Gashinski Senior Manager, Mining Lands Section Mines and Minerals Division Correspondence ID: Copy for: Assessment Library

30 Work Report Assessment Results Submission Number: Date Correspondence Sent: February 07, 1997 Assessor: Lucille Jerome Transaction Number W First Claim Number Township(s) l A rea(s) WHIPPER LAKE Status Approval Approval Date February 05, 1997 Section: 18 Other INDUS All future submissions should be submitted for assessment without colored maps. The colors are difficult to differentiate once the work is scanned in the ERLIS database. Correspondence to: Mining Recorder Sioux Lookout, ON Recorded Holder(s) and/or Agent(s): CHESTER J. KURYLIW DRYDEN, Ontario Resident Geologist Sioux Lookout, ON Assessment Files Library Sudbury, ON Page: l Correspondence ID: 10553

31 ROUTE LAKE AREA C-251 b VERMILION TWP. FOR STATUS REFER TO TWP PLAN 400*09* 52K01SW WHIPPER LAKE 200