Assessment Work Report (Stripping & Mapping) HavikLake Granite Dimension Stone Deposit (Redditt Auburn) Kilgore Lake Area Kenora Mining Division Claim K-3007960 for Redditt Stones Inc. -' 2 3523 1 Prepared by Northwest Mineral Development Services June 14, 2007 RECEI"ED JUN 1 8 2007 ~~ QIOaCIENCE ASSESIMIiNT OPFleE
TABLE OF CONTENTS Summary... 3 Mining Lands Explored... 3 Holder of Mining Lands... 3 Location and Access... 3 Author of Report... 6 Supervisor of the Work... 6 Summary of Work Carried Out... 6 Road Construction... 8 Stripping... 8 Mapping... 8 Results & Conclusions... 8 Recommendations for Future Exploration & Development... 10 Expenditure Summary... 11 References... 12 Appendix "A" Letter of Authorization... 13 Appendix "D" Statement of Expenditures... 14 Appendix "E" Author's Qualifications... 15 Signature Page... 16 Figures Figure 1. Key Map... 4 Figure 2. Claim Map... 5 Figure 3. Two Areas of Interest... 7 Figure 4. Stripping and Mapping Site... 9 2
Summary Redditt Stones Inc. commissioned Northwest Mineral Development Services (NWMDS) to review all available information on the Havik Lake granite deposit and recommend an exploration program to determine if the stone is likely to be commercially viable, and if so, to recommend additional work to determine commercial viability. Based upon this review and on several prior site examinations and previous knowledge of this deposit, NWMDS recommended a reconnaissance, stripping and mapping program to locate suitable areas on the claim for further work. As a result of this work, reported herein, it was concluded that quarry blocks of sufficient size and quality could most likely be quarried from this site, but that a bulk sampling program should be carried out to confirm this. Since the stone is very similar in colour and texture to the stone quarried by Cold Spring Granite (Royal Auburn) immediately adjacent to the Redditt site, there is no reason to believe that the market for the Redditt stone would not be the same. It should sell well in the Asian markets. The stone from the Havik Lake deposit will be known as Redditt Auburn. Mining Lands Explored The work was performed on claim K-3007960, Kilgour Lake Area, claim map G-2626. Holder of Mining Lands The claim is held by: Redditt Stones Inc. (Client #403236) (Mr. Chinsiew Ee, President) 402-1933 Robson Street Vancouver, BC, V6G le7 Location and Access The claim is located off highway 671, approximately 6 km south of the First Nation community of Grassy Narrows, and 71 km northeast of Kenora, Ontario. See Figure 1, Key Map, and Figure 2, Claim Map. 3
R"ddill S/on('.\. Inc. Figure 1 Kc) Map Havik Lake Granite Deposit..,'''' '-'"
" I o, I Reddill Slvne. ~. Inc. Figure 2 Claim Map Havik Lake Granite Deposit
Author of Report The mapping was carried out and the report and maps prepared by: Richard Beard, P.Eng., Northwest Mineral development Services Site 148, Compo 9, RR #1 Kenora, ON P9N3W7 Supervisor of the Work The stripping work was supervised by: Mr. Chinsiew Ee 402-1933 Robson Street Vancouver, BC, V6G le7 Summary of Work Carried Out All available information on the Havik Lake deposit was reviewed and, based on this review and previous knowledge for the deposit and previous site visits, a reconnaissance, stripping and mapping program was recommended to the Company, to be carried out prior to bulk sampling of the deposit. On May 13,2007, the author and the contractor, Mr. Gordon 10licouer carried out reconnaissance on the claim to locate areas most suitable for quarrying. This reconnaissance determined that the stone that makes up the large hill that dominates most of the claim has a sheeting angle too steep for efficient quarrying. However, a lower lying outcrop area in the northern part of the claim was found to have better sheeting, and the stripping and mapping was concentrated in this area. Between May 14,2007 and May 24,2007, a temporary road was constructed from Highway 671 to the area of interest, to provide access for the equipment, and several low outcrop ridges were stripped with a backhoe. Mapping was carried out by the author on June 11 and June 12,2007. There were two areas of interest (Area "A" & Area "B" on Figure 3). Area "B" is a high ridge of granite that would have been difficult to access and test quarry, so work was focused on Area "A". 6
Ar "S",~, """'--"",-_... -./.-' II II k If Ii " It If 1\ \\ It It q " Q.4311M1 ; - ~ SS48S8S II \I II I' \I \I It It II II II o I SO i 100"" Reddin Stones. Inc. Figure 3 Two Areas of Interest HavikLake Granite Deposit 7
Road Construction In order to access the site with the equipment, a temporary road has been constructed using a backhoe. If bulk samples are to be removed in the future, the road can be upgraded and a culvert put in at the entrance from the highway. The entrance location will be approved by MTO. Stripping Two outcrop areas of interest are shown on map Figure 4. Area "A" consists of a number of low, parallel ridges, largely covered by moss, brush and small trees. Patches of bare outcrop were common along the ridges, but moss and lichen obscured the colour and texture of the stone in most places. Clearing of brush and stripping with a backhoe along sections of these ridges provided, especially at the south end of the easternmost ridge, provided a better opportunity to observe the character of the rocks and the fracturing. Area "B" is a high bare outcrop with only scattered small patches of brush and occasional small trees. Stripping was not required. Mapping Areas "A" was mapped at a scale of 1 cm 10m., as shown on Figure 4. Using compass and hip chain, baselines were laid our along each of three parallel ridges. Vertical to sub-vertical fractures were mapped, and any significant changes in colour or texture were noted. Area "B" was not mapped for the reason noted above. Results & Conclusions The rocks underlying the claim are Archean in age (2.6 to 2.9 billion years old). The property lies within the Lount Lake Batholith, a large (over 2000 square kilometre) elliptical granitoid batholith that extends from near the Manitoba-Ontario border, eastward to Highway 105. This large batholith lies within the dominantly granitoid domain of the Winnipeg River Subprovince, which in tum lies within the central part of the western Superior Province of the Ontario Archean shield (Beakhouse, 1991). Farrow (1996) describes the Lount Lake Batholith as follows: The Lount Lake batholith is an intrusive complex incorporating several rock types including gneiss, granodiorite, monzonite and inclusions of metasediments and mafic meta volcanics, and is the largest batholith in the Wmrupeg River Subprovince (Breaks and 8
.,., ~, I I... Granite OU:. )( )t )( )( Baseline OU:. Ledge J...I..UJ,..IJ Fractures ~ Stripped Area ~ Boulders Tree COVeT,.t Figure 4 Stripping Site Havik Lake Granite Deposit 9
Bond, 1993), covering approximately 2500 square kilometres. The rocks are characteristic of the Southern Potassic Plutonic Suite described by Breaks et ale 1978), and are analogous to the granitic suite ofbeakhouse (1991). The yolulgest and least fractured rocks belong to the late-phase, undeforrned and unmetamolphosed potassitnn-enriched suite, which is subdivided into potphyritic granodiorite, younger potphyritic quartz monzonite and youngest massive, equigranular quartz monzonite (Breaks and Bond, 1993). Because fracturing is an important criterion in quarry site selection, the most promising prospects generally occur in this younger potassic suite of intrusive rocks. " The Havik Lake granite deposit occurs in one of the younger and un-deformed intrusives mentioned above. The stone is described by Farrow as "dark pink to reddish, porphytitic rock containing coarse-grained, pink to dark pink feldspar metacrysts in a grey, mediumto fine-grained quartz-biotite matrix. The megacrysts reach a maximum size of 3 cm and are usually elongate, but sometime approach squareness, and may be angular or rounded. Preferred orientation of the megacrysts is the most common texture observed, but this characteristic varies in intensity and grades locally into areas of random crystal orientation. " The mapping showed the stone to be very uniform in colour and texture, with only occasional "smears" ofbiotitic rock or pegmatite. Orientation of the metacrysts averages 80 to 85 degrees. Fractures are widely spaced and generally orthogonal. Sheeting in the stone is also relatively wide-spaced, and dips to the east at about 25 degrees. In Area "A", this results in a series of north-south trending, low parallel ridges with west-facing ledges that are up to 2 Yz metres high in places. It is concluded that the Redditt Auburn granite deposit should be easily quarried and should provide large gang saw-sized blocks that are relatively consistent in colour and texture, but that the deposit should be test quarried to confirm this. Since this stone is basically the same stone as that quarried by Cold Spring Granite (Royal Auburn) under an Aggregate Permit located immediately to the east of the Redditt Stones site, it is reasonable to expect that Redditt Auburn will be received by the market in the same manner as Royal Auburn. It should be especially well received in the Chinese market where similar stones are very popular. The stone would be used for largely for construction purposes. Recommendations for Future Exploration & Development It is recommended that the Company undertake a program of bulk sampling of quarry blocks, carried our under Sec. 52 of the Mining Act, followed by market testing, to 10
confirm the conclusions reached from this current work. Assuming that results of the bulk sampling will be positive, in order to save time, it is further recommended that an application for an Aggregate Permit under the Aggregate Resources Act be fijed with the Ministry of Natural Resources concurrent with the bulk sampling. Expenditure Summary Technical consulting, mapping & report preparation. Stripping & road construction Labour Equipment Mileage $1,111.69 $ 1,980.00 $ 1,250.00 $ 203.70 Total expenditures $ 4,545.39 11
References Beakhouse, R.L. 1991. Winnipeg River Subprovince; in Geology of Ontario, Ontario Geological Survey, Special Volume 4, Part I, P.279-301 Breaks, F.W., Bond, W.D., and Stone, D. 1978. Preliminary geological synthesis of the English River Subprovince, Northwestern Ontario and its bearing upon mineral exploration; Ontario Geological Survey, Misc. Paper MP 72, S5p. Accompanied by Map P.1971, Scale 1 :253440. Breaks, F.W. and Bond, W.D. 1993. The English River Subprovince - An Archean gneiss belt; geology, geochemistry and associated mineralization; Ontario Geological Survey, Open File Report 5846, vols. 1&2, 884p. Farrow, D.G., 1996. Potential dimension stone quarry sites in the Kenora, Ignace and Rainy River areas of northwestern Ontario: Ontario Geological Survey, Open file Report 5949,139p. Hinz, P., Landry, R.M., and Gerow, M.C. 1994. Dimension stone occurrences and deposits in northwestern Ontario: Ontario Geological Survey, Open File Report 5890, 191p. Kennedy, M.C. and Sherlock, E.J. 1988. Northwestern Region Industrial Minerals Program-1987; in Report of Activities 1987, Resident Geologists; Ontario Geological Survey, Misc. Paper 138, p.161-174. Robert Dodds Consulting Engineers 1989. Environmental impact analysis, granite quarry operations, English River Road and Lount Lake Road, Kenora District; unpublished report prepared for the Ministry of North em Development and Mines, 29p. 12
Appendix "E" Author's Qualifications RICHARD C. BEARD, P.Eng. Principal Consultant, Northwest Mineral Development Services Qualifications: 47 years experience in the mineral industry, working in both the exploration and the mine development sectors ofthe industry. This work has including 26 years with the geology and mining departments of the Government of Ontario, the last 6 of which were with the Mineral Development Program. From 1999 to the present, has provided consulting services to the stone industry through Northwest Mineral Development Services. From 1981 to the present, worked closely with the dimension stone industry in the Northwestern Region. From of this work experience, the principal consultant has gained: Good knowledge and understanding of the granite industry. Familiarity with all aspects of regulatory (permitting) requirements for bringing stone quarries to production. Has well-established contacts in the offices of most of the permitting agencies. Familiarity with producing and past producing granite quarries, identified deposits, and high potential granite areas in northwestern Ontario. Some knowledge of quarries and deposits in northeastern and southern Ontario, Minnesota, Vermont and New Hampshire, and Quebec, based upon a number of fact-finding trips to these areas. Experience in planning, supervising, and carrying out stone inventory and evaluation projects. Experience in claim staking and optioning of mineral properties, based upon 12 years experience in the mineral exploration industry. Experience in promoting and marketing granite development opportunities, both on the North American and International scenes. 15
Signature Page Submitted:~ay18,2007 Richard Beard, P.Eng. Northwest ~ineral Development Services 16