l 52K04SW2005 2.20708 KILGOUR LAKE 010 2.20708 NELSON GRANITE LIMITED Test Quarrying, Sample Block Removal Sawing and Polishing Tests Mining Claim K-l 149856 Kilgour Lake Area NTS: 52K 4SW Kenora Mining Division G. Zebruck Nov. 2000
52K04SW2005 2.20708 KILGOUR LAKE 0 10C TABLE OF CONTENTS Page Introduction... l Location and Access... l Geology... 2 Previous Work... 2 The 2000 Work Program... 4 Equipment Used... 4 Results... 5 LIST OF FIGURES Fig. 1: Geology Mining Claim K-l 149856... 3 Fig. 2: Test Quarry Excavation Area... 7 PLATES Plate l: Test Quarry Kilgour Lake Property... 5 Plate 2: Small Test Block 6 Tonnes... 6 APPENDICES A: Statement of Expenditures B: Employees Names SL Addresses C: Map - Test Quarry Location
Introduction Nelson Granite Limited is the registered holder of a fifteen unit unpatented mining claim K-l 149856 located northeast of the city of Kenora in the Kilgour Lake Area - Claim Map G-2626. The company carried out a work program during February of 2000 which included test quarrying, sampling and saw and polishing tests on the granite from this property. This work program is a follow up to work done in 1999 which included diamond drilling and ground penetrating radar surveys. Location and Access Claim K-l 149856 is located 30 kilometres north and 40 kilometres east of the city of Kenora. Kenora K-l 149856 UTM: 393500 me Zone 15 UTM: 434000 me Zone 15 5514000 mn 5544000 mn Motor vehicle access to the claim is available by proceeding from the junction of the Kenora Bypass Hwy. 17B and the Jones Road a hard surfaced secondary highway, to its intersection with the CPR main line at Jones a distance of 36.9 kilometres. After crossing the rail line continue on the Jones road a further 8.3 kilometres, to the junction of an old logging road, on the right side. It is unmarked but known locally as the Canyon Lake Road. Travel east on the Canyon Lake Road for a further 11.4 kilometres to the junction of a secondary gravel road, which goes north and east a distance of 6. l kilometres to the property.
Geology The area surrounding claim K-1149856 was mapped at reconnaissance scale by Breaks et al 1975 as part of Operation Kenora- Sydney Lake. The rock on and surrounding the claim is type mapped as (massive fine to coarse-grained equigranular) biotite quartz monzonite to granite. Observations made during prospecting, sample drilling and diamond drilling indicate some variety of colour and texture to the granite. Three distinct areas were noted (Fig. 1) In the northwest part of the claim the granite is predominately medium grained red granite with some pegmatitic and streaky areas. These types of defects increase as one proceeds northwest off of the claim area. In the central part of the claim a band of outcrop running in a northeast direction is composed of coarse-grained pink granite. The grain size appears to get gradually larger in the northeast direction. Again there are areas having defects including pegmatites, xenoliths, red and black streaking, and odd quartz veins and patches. In the southeast part of the claim the granite is a medium grained equigranular pink to red granite. There are areas having defects here as well. Previous Work In 1999 Nelson Granite completed a 4 hole diamond drill program followed by a ground penetrating radar survey across three grided areas on the claims. Other than some previous shallow drill samples taken by the company no work had been done on the property to assess its potential for dimension stone.
Fig. 1: Geology Mining Claim K-1 149856 LEGEND H Medium grained red granite H Coarse-grained pink granite t'.", l Medium grained equigranular pink to red g ranite... Limit of Outcrop "~~ Trail./ - ' Creek Swamp Scale l in. s 400 metres h on 1000 400 800 metres
The 2000 Work Program Test quarrying was done on the property in order to: a) Test the results of the ground penetrating radar to confirm that horizontal joints were indeed located at depths indicated by the radar surveys. b) Determine whether the deposit could yield large blocks of consistent colour and texture. c) Determine the nature and distribution of defects. An area 20 metres by 10 metres was excavated to a maximum depth of 2 metres. Two small sample blocks were removed for sawing and polishing tests and the remaining material was left on site. The sawing and polishing tests were done at the company's monument plant in Vermilion Bay, Ontario. Equipment Used A D6 Caterpillar Dozer was rented to open the Canyon Lake Road and the road to the property which had snowed in during the winter. With permission from MNR a temporary culvert was placed in a section of road that had been washed out. After the work was done the culvert was removed. A 215 Cat Backhoe was used to place and remove the culvert, strip the site, remove blocks and waste rock, and load the sample blocks on a truck.
A Tamrock hydraulic rock drill was used to drill lines of holes prior to blasting and to square blocks. Splitting was done using either explosives or wedges and shims. Explosives employed in the work include 50 grain Trunkline detonating cord, K-pipe explosives, and safety fuse detonators. Plate 1: Test Quarry Kilgour Lake Property Results Test Quarrying confirmed the presence of an open sub-horizontal joint as indicated by the ground penetrating radar survey of 1999. The defects encountered during test quarrying were similar to those observed on surface, including some streaking and xenoliths. Large blocks could be quarried from this property.
Results of sawing and polishing tests were disappointing. The material was difficult to saw and polish. Small hair line micro-fractures were present throughout the material and could not be polished out. It is not known whether these fractures were confined to the surface weathered layer or extends to depth. These micro-fractures make the material unsuitable for any application where a highly polished surface is required; for example monuments, buildings, table and counter tops. Plate 2: Small Test Block 6 Tonnes
Fig. 2: Test Quarry Excavation Area Mining Claim K-1149856 Kilgour Lake Area LEGEND... Drilled Face Excavation Limit 2M Excavation Depth in Meters RADAR SURVEY GRID A Excavation Area 175 m 2 Scale 1:200
APPENDIX A
Statement of Expenditures Type of Equipment Hours Cost/Hour* Total Cat D6 Dozer 65 S75 S 4,875 Cat215Backhoe 90 S90 8,100 Tammrock Commando Rock Drill 54 S85 4,590 Half Ton Truck with Snowplow 5 S45 225 Float Truck 2 trips 807 Haul Truck for sample blocks 90 Sawing at VB plant -24 sq. ft. x 6 in, @ 517/sq. ft. 408-24 sq. ft. x 8 in. @S19.907sq. ft. 478 Polishing at VB plant -48 sq. ft. @ S37sq. ft. 144 * includes fuel and operator ^ ^ Total Equipment Cost S19,717 Consumables - 2 Cases K-pipe explosives @ S3 25 per case - 2 Cases 50 grain detonating cord @ S375 per case - 50 Safety fuse assemblies @ S2.35 each - 2 10 ft. drill steels @ S 10 per foot - 5 drill bits @ S3 O per bit Total Consumables Work Week Ray Hertz Colin Wrighton Hrs. Mileage Hrs. Mileage Feb. 7-11 22 447 Km. 14-18 48 630 21-25 54 655 54 455 Feb. 28 - Mar. 3 36 507 - Total 2,239 Km. 455 Km. Supervision Carter Nelson 2 days at S250 per day S 500 Mileage 650 Km. Report George Zebruck 9 days @ S200 per day S 1,800 Date Mileage 14/09/00 - Kms 15/09/00 18/09/00 30 21/09/00 28/09/00 139 18/10/00 52 01/11/00 25 02/11/00 06/11/00 54 Total 300 Kms.
Mileage Ray Hertz 2,239 Kms. Colin Wrighton 455 Carter Nelson 650 George Zebruck 300 Total 3,644 kilometres @ S.35 per kilometre S 1,275 Equipment Costs S 19,717 Consumables 1,868 Supervision 500 Report 1,800 Mileage ^1.275 Total S 25,160 Summary of Expenditures
APPENDIX B
Employee Names fe Addresses Ray Hertz Hwy.l7West Vermilion Bay, Ont. POV 2VO Colin Wrighton 446 3 rd St. South Kenora, Ontario P9N 1J1 George Zebruck RR#1 Airport Rd. Kenora, Ontario P9N 3W7 Carter Nelson P.O. Box 178 Vermilion Bay, Ont. POV 2VO
APPENDIX C
k.. Ministry of OntariO Northern Development VI l lc" I W and Mines Declaration of Assessment Work Performed on Mining Land Mining Act. SubMCtlon 65(2) and 66(3), R.S.0.1990 Transaction Number (office use) U/OOiO, 00034- Assessment Files Research Imaging subsections 65(2) and 66(3) of the Mining Act. Under section 8 of the wiew the assessment work and correspond with the mining land holder. Recorder, Ministry of Northern Development and Mines, 6th Floor, 52K04SW2005 2.20708 KILGOUR LAKE 900 Instructions: - For work performed on Crown Lands before recording a claim, use form 0240. - Please type or print in ink. 1. Recorded holders) (Attach a list if necessary) 2.20708 Name Address Name Carter B. Nelson P.O. Box 178 Vermilion Bay, Ontario POV 2VO Client Number 175007 Telephone Number (807) 227-2650 Fax Number (807) 227-2722 Client Number Address Telephone Number Fax Number 2. Type of work performed: Check ( ^ ) and report on only ONE of the following groups for this declaration. Work Type Geotechnical: prospecting, surveys, assays and work under section 18 (regs) Test Quarrying, sample block removal sawing and polishing tests V Dates Work. - Performed From 07 02 i 00 To 06 l 11 1 00 Day Month Y**r Day Monfli Year Global Positioning System Data (If available) UTM: 434000 me Zone 15 5544000 mn Township/Area Kilgour Lake Area M or G-Plan Number G-2626 Physical: drilling, stripping, trenching and associated assays Commodity Total S Value of Work Claimed NTS Reference Mining Division Office Use ^Sf (^O I^AAAOA Resident Geologist. District fa r\0 fi A Please remember to: - obtain a work permit from the Ministry of Natural Resources as required; - provide proper notice to surface rights holders before starting work; - complete and attach a Statement of Costs, form 0212; - provide a map showing contiguous mining lands that are linked for assigning work; - include two copies of your technical report. Rehabilitation 3. Pereon or companies who prepared the technical report (Attach a list if necessary) Name Telephone Number George R. Zebruck (807) 548-4298 Address Fax Number Name RRI1 Airport Rd. Kenora. Ont. P9N 3W7 (807) 548-1584 Telephone Number Address Fax Number Name Address 4. Certification by Recorded Holder or Agent Fax NOV t ** 2000 GEOSCIENCE ASSESSMENT OFFICE i George R. Zebruck Ho hereby certify that 1 have personal knnmilehne of the facts set (Print Name) forth in this Declaration of Assessment Work having caused the work to be performed or witnessed the same during or after its completion and, to the best of my knowledge, the annexed report is true. /** Signature of Reabded Holder or Agent Agent's Address RRI1 J f V Airport Rd. Kenora, Ont. Telephone Number ;807) 548-4298 Date Nov. 7, 2000 Fax Number (807) 548-1584 0241 (02/96)
5. Work to be recorded and distributed. Work can only be assigned to claims that are contiguous (adjoining) to the mining land where work was performed, at the time work was performed. A map showing the contiguous link must accompany this form. Mining Claim Number. Or if work was done on other eligible mining land, show in this column the location number indicated on the claim map. Number of Claim Units. For other mining land, list hectares. Value of work performed on this claim or other mining land. Value of work applied to this claim. Value of work assigned to other mining claims. Bank. Value of work to be distributed at a future date. eg TB 7827 16 ha S26, 825 N/A 324,000 S2.825 eg 1234567 12 0 S24,000 0 0 eg 1234568 2 S 8, 892 S 4,000 0 S4.892 1 K-1149856 15 $25,160 125,160 0 0 2 3 4 5 6 7 8 9 10 11 12 13 14 15 Column Totals S25,160 $25 t 160 0 0 George R. Zebruck, do hereby certify that the above work credits are eligible under (Print Full Name) subsection 7 (1) of the Assessment Work Regulation 6/96 for assignment to contiguous claims or for application to the claim where the work was done. Signature 6. Instructions for cutting back credits that are not approved. Date Nov. 7, 2000 Some of the credits claimed in this declaration may be cut back. Please check ( s ) in the boxes below to show how you wish to prioritize the deletion of credits: D 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated. D 2. Credits are to be cut back starting with the claims listed last, working backwards; or D 3. Credits are to be cut back equally over all claims listed in this declaration; or D 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe): Note: If you have not indicated how your credits are to be deleted, credits will be cut back from the Bank first, followed by option number 2 if necessary. For Office Use Only Received Stamp "RECEIVED NOV 1 \ 2000 Deemed Approved Date Date Notification S*nt Date Approved Total Value of Credit Approved Approved for Recording by Mining Recorder (Signature) 0241 (02/96) GEOSCIENCE ASSESSMENT OFFICE
Statement of Expenditures Type of Equipment Hours Cost/Hour* Tpjal Cat D6 Dozer 65 575 54,875 Cat215Backhoe 90 590 8,100 Tammrock Commando Rock Drill 54 585 4,590 Half Ton Track with Snowplow 5 545 225 Float Truck 2 trips 807 Haul Truck for sample blocks, 90 Sawing at VB plant -24 sq. ft. x 6 in, @ 517/sq, ft. 408-24 sq. ft. x 8 in. @ 519.90/sq. ft. 478 Polishing at VB plant -48 sq. ft. @ 53/sq. ft. 144 * includes fuel and operator.. Total Equipment Cost 519,717 Consumables - 2 Cases K-pipe explosives @ 5325 per case S 650-2 Cases 50 grain detonating cord @ 5375 per case 750-50 Safety fuse assemblies @ 52.35 each 118-2 10 ft. drill steels @ 5 l O per foot 200-5 drill bits @ 530 per bit 150 Total Consumables 5 1,868 WorkWeek Feb. 7-11 14-18 21-25 Feb. 28-Mar. 3 Ray Hertz Hrs. Mileage 22 447 Km. 48 54 630 655 26 507 Total 2,239 Km. Colin Wrighton Hrs. Mileage 54 455 455 Km. Supervision Carter Nelson 2 days at 5250 per day Mileage 650 Km. George Zebruck 9 days @ 5200 per day Date Mileage 14/09/00 - Kms 15/09/00 18/09/00 30 21/09/00 28/09/00 139 18/10/00 52 01/11/00 25 02/11/00 06/11/00 54 Total 300 Kms. 5 500 S 1,800 RECEIVED NOV! 4 2000 GEOSCIENCE ASSESSMENT. 'ri ICE NOU 14 '00 11=48 PfiGE.13
MOV 14 00 T U E 10:52 F*. Mileage Ray Hertz Colin Wrighton Carter Nelson George Zebruck Total 2 455 650 300 3,644 kilometres @ 3. 35 per kilometre S J,275 Summary of Expenditures Equipment Costs Consumables Supervision Report Mileage Total S 19,717 1,868 500 1,800 S 25, 1 60 RECEIVED NOV 1 4 2000 GEOSCIENCE ASSESSMENT OFFICE
Ministry of Northern Development and Mines Minlstere du Developpement du Nord et des Mines Ontario March 15, 2001 CARTER BRENT NELSON BOX 178-66 ARMSTRONG STREET VERMILION BAY, Ontario POV-2VO Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6B5 Telephone: (888)415-9845 Fax: (877)670-1555 Dear Sir or Madam: Subject: Transaction Number(s): Status W0010.00094 Approval After Notice Submission Number: 2.20708 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. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form. Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary. If you have any questions regarding this correspondence, please contact JIM MCAULEY by e-mail at james.mcauley@ndm.gov.on.ea or by telephone at (705) 670-5858. Yours sincerely, ORIGINAL SIGNED BY Lucille Jerome Acting Supervisor, Geoscience Assessment Office Mining Lands Section Correspondence ID: 15774 Copy for: Assessment Library
Work Report Assessment Results Submission Number: 2.20708 Date Correspondence Sent: March 15, 2001 Assessor: JIM MCAULEY ^^ ^ ^ ^^_^ Transaction First Claim Number Number Township(s) l Area(s) Status Approval Date W0010.00094 1149856 KILGOUR LAKE Approval After Notice March 12,2001 Section: 18 Other INDUS The 45 days outlined in the Notice dated January 26, 2001 have passed. The information that has been provided has been reviewed. Assessment work credit has been approved as outlined on the attached Distribution of Assessment Work Credit sheet. The assessment credit is being reduced by S1,025. The TOTAL VALUE of assessment credit that will be allowed, based on the information provided in this submission, is S24,135. 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. Correspondence to: Resident Geologist Kenora, ON Assessment Files Library Sudbury, ON Recorded Holder(s) and/or Agent(s): George R. Zebruck KENORA, ONTARIO CARTER BRENT NELSON VERMILION BAY, Ontario Page: 1 Correspondence ID: 15774
Distribution of Assessment Work Credit The following credit distribution reflects the value of assessment work performed on the mining land(s). Date: March 15, 2001 Submission Number: 2.20708 Transaction Number: W0010.00094 Claim Number Value Of Work Performed 1149856 24,135.00 Total: S 24,135.00 Page: l Correspondence ID: 1 5774
2.0 DEWI5H LAKE MEA - 11-1*1 KILGOUR LAKE 52K04SW2005 2.20708 KILGOUR LAKE 200
NELSON GRANITE LIMITED 1999 GROUND PENETRATING RADAR GRID LOCATION 1999 DIAMOND DRILL HOLE LOCATIONS T 700 MN GRID A 2000 TEST QUARRY LOCATION GRID C DDH K-99-03 -t- 600 MN DDH K-99-01 o w 3 r- 5' / DDH K-99-04 *T 500 MN 100 ME 200 ME Scale 1:500 lo p ziziiizizjz: o 30. i_,* r to LINE POST 400 MN of #3 POST K-1149856 52K04SW200S 2.20708 KILC5OUR LAKE 210