49
Assessment Report Prospecting In Copenace and Marsh Townships Sault Ste. Marie Mining Division Northeastern Ontario NTS: 42 C/1 and 42 C/8 Written by; Claudia Wilck, RR 1, Parry Sound ON, P2A 2W7 July 14, 2008 For Chalice Diamond Corp"

Assessment Report Prospecting Sault Ste. Marie Mining

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Page 1: Assessment Report Prospecting Sault Ste. Marie Mining

• Assessment Report

Prospecting In

Copenace and Marsh Townships

Sault Ste. Marie Mining Division

Northeastern Ontario

NTS: 42 C/1 and 42 C/8

Written by;

• Claudia Wilck, RR 1, Parry Sound ON, P2A 2W7

July 14, 2008

For

Chalice Diamond Corp"

Page 2: Assessment Report Prospecting Sault Ste. Marie Mining

TABLE OF CONTENTS

Introduction - ownership, description and overview Location and Access General Geology Personnel Prospecting Program Sampling Procedures Analytical Procedures Discussion Target Cop_Ol overview, traverse / location map, field log Target Cop _04 overview, traverse / location map, field log Target Cop_l 0 overview, traverse / location map, field log Target Cop_II overview, traverse / location map, field log Target Cop _13 overview, traverse / location map, field log Target Cop _15 overview, traverse / location map, field log Target Cop_I 7 overview, traverse / location map, field log Target M _18 overview, traverse / location map, field log Recommendations Qualifying Statement References

Figures in back pocket

Page 1 1 2 2 3 3

3-11 12-14

15-17

18-20

21-23

24-27

28-30

31-34

35-37 38 38 39

Figure 1: Chalice Diamond Corp. - Access & Target Location Map for Copenace and Marsh Township Claims

Figure 2: Key Location Map of Chalice Diamond Corp. Project Area

APPENDICES

Appendix 1 - True North Mineral Laboratories Inc. / Actlabs: Geochemical Analysis Results with Certificate of Analysis

Page 3: Assessment Report Prospecting Sault Ste. Marie Mining

Introduction - Ownership, Description and Overview

Golden Chalice Resources Inc of Vancouver, British Columbia holds a 100% interest in 7 claims being numbers: 4202734 (16 units/256 ha), 4209541 (15 units/240 ha), 4202742 (16 units/256 ha), 4209532 (15 units/240 ha), 4209533 (15 units/240 ha), 4202733 (16 units/256 hal all situated in Copenace Township and 4202738 (16 units/256 ha) situated in Marsh Township.

Chalice Diamond Corp. of Vancouver, British Columbia holds 100% interest in 1 claim being claim 4217271 (16 units/256 ha) situated in the Township of Copenace.

Golden Chalice Resources Inc and Chalice Diamond Corp. have an approved Plan of Arrangement in place since September 21, 2006 and as a result work may therefore be filed by Chalice Diamond Corp on Golden Chalice Resources Inc claims.

All of the above mentioned claim blocks are contiguous and are located @ 50 km northeast of Wawa in northeastern Ontario. See figure 1 - Access and Location Map for Copenace and Marsh Township Claims.

The prospecting program was conducted over portions of these claims during the summer months of 2006 and 2007. A total of 8 target areas were prospected by teams of two; Dedicated field crews located target areas using hand-held GPS instruments -logging waYPoints, traverse routes and sample locations (See: Traverse waypoints and samples locations map accompanying each target area overview); prospecting notes and sample observations were recorded on formatted sheets. (See Field Logs accompanying each target overview and Fig. 1 for Target Location Map). Target areas Cop_01, Cop_04, Cop_10, Cop_11, Cop_13, Cop_15, Cop_17 and M_18 were prospected (See: Target area overview for each target). 3 rock samples were collected in order to ascertain geochemical analysis for 1 E 1, Au and PGE -The rock samples were processed by True North Mineral Laboratories of Timmins, ON.

The costs associated with conducting the work program outlined in this report are to be applied to claims: 4209194 (16 units/256 ha), 4209183 (2 units/32 ha) and 4209182 (8 units/128 ha) having imminent due dates of October 28, 2008.

As outlined in this report, expenditures made by the company towards exploration activities on their mineral claims are to be applied for assessment work credits, in order to keep these mineral claims in good standing as per the Ontario Mining Act.

Location and Access

The claims are located about 50 km northeast of Wawa in northeastern Ontario, in the Sault Ste. Marie Mining Division. To access the property, from Wawa ON, take Hwy 101 about 65 km east, turning north onto Hwy 651, drive about 36 km to a forest access road and turn east. A portion of the target areas vary between 4 km and 18 km east along the logging roads; continuing north along Hwy 651 for about another 6 km turn west onto forest access roads to access the rest of the target areas which vary between 1 km and 5 km along the logging roads. (See each target for UTM Coordinates for location.) See figure 1 - Access Map to the Copenace and Marsh Township claims. The town of Missanabie is located @ 56 Km north of Hwy 101 along Highway 651 and the field crews were based in Missanabie during the duration of the program. The prospecting teams traveled by truck and may have also used ATV to reach the target areas each day. See: Field Logs accompanying each target overview for traverse waypoints and sample UTM Coordinates.

1

Page 4: Assessment Report Prospecting Sault Ste. Marie Mining

General Geology (after Bennett, Gerald, 1978, GR172 OGS)

The major lithologic units are of Precambrian age. The oldest recognized rocks are metamorphosed basaltic flows, intermediate to felsic pyroclastics and flows, detrital metasediments and minor iron formation which form a metavolcanic-metasedimentary complex of Early Precambrian age. The metavolcanics have been intruded by a variety of metamorphosed intermediate to felsic porphyries and metagabbros.

The metavolcanic-metasedimentary belt is folded into a shallow plunging, generally southeast­trending syncline. The metamorphic grade ranges from lower green-schist in the northwest to almandine-amphibolite in the south and southeast. A variety of syntec-tonic and post-tectonic granitic plutons intrude the metavolcanic-metasedimentary complex.

The presence of extensive areas of catazonal igneous and metamorphic rocks in the southern and southeastern parts of the area indicates considerable uplift relative to the northern part. This uplift may coincide with that of the Kapuskasing structures.

Numerous diabase dikes intrude all of the major lithologic units of the area.

A syenite dike and a few ultramafic lamprophyres are the youngest known rock types of the area.

Personnel

The following personnel worked on this property and conducting the following work activities summarized below:

Personnel Activitx Dates Worked Man Da~s Dan Sullivan Prospecting Sept. 29 106 & May 17 107 2 days Peter Smith Prospecting July 20 106 & May 17 107 2 days Dannica Switzer Prospecting July 15, 2006 1 day

Dakota Souliere Prospecting Aug 15,2007 1 day Josh Guthrie Prospecting May 23,2007 1 day

Katy Richard Compiling Data Aug. 22,2007 1 day Katy Richard Prospecting May 22, 23, 2007 & Aug. 15 /07 3 days

Frank Longpre Prospecting Sept. 9,2006 1 day Jacqueline Jolliffe Prospecting May 22,2007 1 day Jacqueline Jolliffe Compiling Data May 6 & 12, 2007 2 days

Graham Stone Prospecting July 15 & 20, 2006 2 days

Graham Stone Logistics July 16/06 May 6 & 12/07 (in field office-Missianbie) Aug 10(1/2) 2007 3.5 days

Claudia Wilck Report July 12, 13 & 14, 2008 3 days

2

Page 5: Assessment Report Prospecting Sault Ste. Marie Mining

Prospecting Program

In the Copenace and Marsh Township claims possible kimberlite targets have been identified from the residual magnetic intensity data, based on the identification of roughly circular anomalies. This procedure was automated by using a known pattern recognition technique (Keating, 1995), which consists of computing, over a moving window, a first-order regression between a vertical cylinder model anomaly and the gridded magnetic data. Only the results where the absolute value of the correlation coefficient is above a threshold of 75% were retained. The results are depicted as circular symbols, scaled to reflect the correlation value. The most favorable targets are those that exhibit a cluster of high amplitude solutions. Correlation coefficients with a negative value correspond to reversely magnetized sources. It is important to be aware that other magnetic sources may correlate well with the vertical cylinder model, whereas some kimberlite pipes of irregular geometry may not.

Keating Correlation Coefficients (modified from Ontario airborne geophysical surveys, magnetic data, Wawa area; Ontario Geological Survey, Geophysical Data Set 1009-Revised, 2003)

Keating magnetic anomalies were identified from Geological Survey of Canada 2001: First Vertical Derivative of Magnetic Field with Keating Coefficients Map Dumont R., Coyle M., Potvin J., Geological Survey of Canada, 2001 Ontario: Manitowik Lake, NTS 42C/1 Open file 4076/0GS Map 81 719

A total of 8 Keating anomaly target areas were prospected by teams of two; Dedicated field crews located target areas using hand-held GPS instruments - logging waypoints, traverse routes and sample locations (See: Traverse waypoints and samples locations map accompanying each target area overview); prospecting notes and sample observations were recorded on formatted sheets. (See Field Logs accompanying each target overview). Each evening the prospecting team download their GPS into the main data base for the project and write up an overview on each target; prospecting notes and sample observation sheets are entered into the main data base at the Missanabie field office.

Sampling Procedures

Sampling methods of the rock is standard as with most methods of precious and base metal sampling. The objective is to collect a large enough sample to allow a complete geochemical analysis and retain a hand specimen. When enough rock was obtained, a sample number tag was enclosed within the sample and the sample bags were securely closed using double wraps of flagging tape or zip ties. Sample sites were flagged with sample number, sample location UTM Coordinates entered into a hand held GPS and general sample comments noted; such as Sample Number, Zone, Easting, Northing, Claim Number, Township and Sample Comments: i.e. sample colour, grain size, mineralization, magnetiC and acid tests and landform characteristics. Samples were then promptly taken to the field office at the end of each working day. (See: Field Logs accompanying each target area overview)

The samples were secured and controlled at the Chalice Diamond Corp field office located in Missanabie ON. Here the samples were inventoried as a double check against the field data notes so that all samples were accounted for. Subsequently, most of the samples were transported directly to True North Minerals Laboratories Inc. in Timmins ON, on June 7,2007.

Analytical Procedures Discussion

True North Mineral Laboratories Inc, located at 475 Railway Street, Timmins Ontario, P4N 2P5, telephone (705) 268-0303 was engaged to analyse the rock samples (to be crushed - RX2) for 1E1, Au and PGE. True North Mineral Laboratories Inc. I Actlabs - geochemical procedure is as follows:

3

Page 6: Assessment Report Prospecting Sault Ste. Marie Mining

• Sample Preparation

To obtain meaningful analytical results, it is imperative that sample collection and preparation be done properly. ACTLABS can advise on sampling protocol for your field program if requested. Once the samples arrive in the laboratory, ACTLABS will ensure that they are prepared property. As a routine practice with rock and core, the entire sample is crushed to a nominal minus 10 mesh (1.7 mm), mechanically split (riffle) to obtain a representative sample and then pulverized to at least 95% minus 150 mesh (106 microns).

As a routine practice, we will automatically use cleaner sand between each sample at no cost to the customer. Quality of crushing and pulverization is routinely checked as part of our quality assurance program. Randomization of samples in larger orders (>100) provides an excellent means to monitor data for systematic errors. The data is resorted after analysis according

to sample number. Please request Code Random (additional $1.00/sample) if you prefer randomization.

Samples submitted in an unorganized fashion will be subject to a sorting surcharge and may substantially slow turnaround time. Providing an accurate detailed sample list bye-mail will also aid in improving turnaround time and for Quality Control purposes. Additional charges may apply for poorly organized batches. Code CP2 - Sample list not provided for orders over 25 samples

($O.25/sample); Code CP3 - Sorting chaotic shipments ($O.50/sample).

Rock, Core and Drill Cuttings

code RX1 crush up to 75% passing 2 mm, split (250 g) and pulverize (hardened stee'l to 85% passing 751! « 5 kg)

code RX1 crush up to 90% passing 2 mm, split (250 g) and Terminator pulverize (hardened steel) to 85% passinR 75)l~< 5 kg) code RX2 crush, split and pulverize with mild steel (100 g)

(best for low contamination) code RX3 oversize charge per kilogram (if required) code RX4 pulverization only (mild steel)

(coarse pulp or crushed rock) code RX5 ~ulverize ceramic (100 0) code RX6 hand pulverize small samples

(agate mortar & pestle) code RX7 crush onlv (solit) code RX8 sample prep only surcharge no analyses • code RX9 compositing (per composite) code RX10 drY drill cuttinQS in plastiC bags code RX11 checking quality of pulps or rejects

prepared by other labs and issuing report

$7.75

$8.50

$8.00

$1.75 $5.75

$14.00 $14.00

$4.00 $3.00 $2.00 $1.75 $7.50

Pulverization Contaminants Added (amount added depends on hardness of material and particle size required)

Mill Type

Mild Steel (best choice) Hardened Steel

Ceramic Tungsten Carbide Agate

Contaminant Added

Fe (up to 0.2%) Fe (uP to 0.2%), Cr (up to 200 ppm), trace Ni, Si, Mn and C AI (up to 0.2%), Sa. trace REE w ( up to 0.1%), Co, C, Ta, Nb and Ti Si (up to 0.3%), AI, Na, Fe, K, Ca, Mg, Pb

Note: Larger sample sizes than listed above can be pulverized at additional cost.

Soils, Stream and Lake Bottom Sediments Biogeochemical Samples

code S1 drying (60°C) and Sieving (-80 mesh) save all portions $3.25 code 61 drying and blending humus

code S1 DIS d"l!ng (60°C) and sieving (-80 meSh), discard oversize $2.75 code 62 drying and macerating vegetation code S1-230 drying (60°C) and sieving (-230 meSh), save oversize $4.25 code 63 dry ashing code S1-230 DIS drying (60°C) and sieving (-230 meSh), discard oversize $4.00 code 64 washing vegetation code 82 lake bottom sediment preparation crush & sieve (-80 mesh) $6.50 code 65 samples submitted in plastiC bags, add

code 83 alternate size fractions and bracket sieving, add $2.00

code 84 Enzyme Leach'" or SGH drying (40°C) & sieving (-60 mesh) $3.50

code 85 wet or damp samples submitted in plastic bags, add $1.50

code S6 separating -2 micron material $65.00 Special Digestion Procedures

code S7 methylene iodide heavy mineral separation $50.00 specific gravity of 3.3 (250 grams) codeMDI Microwave digestion - closed vessel

Sample Storage and Disposal All soil, sediment and vegetation coming from outside Canada require incineration prior to disposal under CFIA regulations. All pulps and rejects will be returned to the client at cost. Disposal costs are additional. Pulps and rejects will incur a storage fee after 6 months .

RTRN Return of all reject portions and/or pulps At cost INCIN Incineration of soil, sediment and vegetation samples from outside Canada $0.25

(for samples up to 0.5 kg; samples over 0.5 kg will have higher inCineration costs) STORE 1 Monthly storage of reject after 6 months $0.20 STORE 2 Monthly storage of pulps after 6 months $0.08 STORE 3 Monthly storage of sieve rejects after 6 months $0.10

$4.00 $5.25 $7.50 $3.50 $1.50

$35.00

Page 7: Assessment Report Prospecting Sault Ste. Marie Mining

~ • PAGE

Precious Metal Geochemistry Gold and Silver Analyses

Code Method

1Al Au Fire Assay-INAA (Qeochem) 1A2 Au Fire Assay-AA (geochem) 1A2-50 Au Fire Assay-AA (qeochem) 1A3-30 Au Fire Assav-Gr<!vimetric (Assav) 1A3-50 Au Fire Assay-Gravimetric (Assay) 1A3-Ag Au, Ag Fire Assay-Gravimetric (Assay)

"1A4 Au Fire Assay-Metallic Screer (Assay) "1A4-1000 Au Fire Assay-Metallic Screen (Assay) 1A6 Au BLEG-ICP/MS (geochem) 1A8 Au Aqua Regla-ICP-MS (geochem) 1E Ag Aqua Regia-ICP (geochem) 8-Ag Ag Fire Assay-Gravimetric (assay)

Sample Weight

30 Q

30 9 50 q

29.16 Q

50 9 29.16 9

500 q

1,000 q

1000 Q

30 9 5g 29.16 9

Imperial

Range

0.001-30 ozlt 0.001-300zlt

10.001-30 oLit (Au) 0.1-30 ozl! (Ag) 0.001-300zl! 0.001-300zlt

0.1-300zl!

Metric Range

1-20000 RPb 5-3,000 ppb 5-3000oob 0.03-1 000 qjmT 0.03-1,000 qlmT 0.03-1,000 glmT (Au) 3-1,000 glmT (Ag) 0.03-1 000 QlmT 0.03-1 000 qlmT 0.1-10000ppb 0.2-2,000 ppb 0.2-100 ppm 3-1,000 glmT

Price

$16.00 $13.50 $15.00 $1750 $18.50 $20.00

$75.00 $100.00

$46.00 $15.00

$5.00 $14.00

Note: Use of 50 gram sample for fire assay may nol provide optimum recovery.

We participate in numerous proficiency testing programs including the CANMET PTP-MAL for ISO 17025. Blanks duplicates and standards are reported in all sample batc~1es.

Sample size used for analysis can be varied. The price may be higher or ,ower depending on sample size. For gold and silver by INAA - see Codes 10, 10 enhanced, 1 EPI, 1 EPI/MS, 1H or 1H2.

Gold, Platinum, Palladium and Rhodium - all ppb

'CIOOtIO

10000

om

Range of ""UDS lor various gold analYSis m8lhoils

I I = S 3 = ~ ~ ~ !

" Code

Code Method Sample Weight Detection limit Price

Au Pt Pd Rh

1 C-exploration Fire Assay-ICPIMS 30 9 2 5 4 $17.50 1C-EXP 2 Fire Assay-ICP/MS 30 9 1 0.5 0.5 $20.00 1 C-research Fire Assay-ICPIMS 30 9 1 0.1 0.1 $28.00

1C-Rhodium Fire Assay-ICPfMS 30 9 5 ! $35.00

Platinum Group Elements (NiS Fire Assay - 50 g)- all ppb

05 Ir Ru Rh Pt Pd Au Re Price

Code 1 B1 1-2 samples INAA Finish 2 OJ 5 0.2 5' 2 0.5 5 3+ samples Code 1B2 1-2 samples ICPIMS Finish 1 1 1 1 1 1 1 3+ samples

Notes: • ~ Code 1M or 1A4-1000 - A representative 500 gram or 1000 gram sample split is sieved at 100 mesh (149 micron),

$275.00 $150.00 $275.00 $15000

with assays performed on the entire +100 mesh fraction and two splits of the -100 mesh fraction. It is important not to overpulverize the sample too finely, as tests have shown gold will plate out on the mill and be lost. When assays have been completed on the coarse and fine portions of the bulk sample, a final assay is calculated based on tre weight of each fraction. Price includes sample screening .Jut not crushing and pulverizing .

• * Code 1 B - Detection limits for ::>j are increased with high Au/Pt ratios and limits for other elements will be affected by abnonTlally high Au, Sb and Cu content. Samples with high Au can be reanalyzed by Code 1 C exploration or research. Zn concentrates are not amenable to the nickel sulphide fire assay.

5

Page 8: Assessment Report Prospecting Sault Ste. Marie Mining

Assay Products Code 8 - Assay Products

Assays provide quantitative determinations of elements in non-processed geological materials. Assays are usually required only when the client knows or suspects higher levels of metals in samples. Geochemical methods generally provide lower detection limits than assays. For lower levels, geochemical methods should be Jsed. All assays are traceable to international reference standards. Prices listed in our fee schedule are for normal geologic materials and are not for metallurgical products. Metallurgical products such as heads and concentrates are handled separately to prevent contamination in the laboratory. These materials are charged at five times the prices listed in our fee schedule.

Element price

Alumina - AhO, $2000

Antimony - Sb $20.00

Arsenic - As $20.00

Barium (Instrumental) - Ba $20.00

Barium (Gravimetric) - Ba $30.00

Beryllium - Be $25.00

Bismuth - Bi $20 .00

Boron - B $25.00

Bromine - Br $20.00

Cadmium - Cd $18.00

Calcium (oxide) - CaO $20.00

Cerium - Ce $20.00

Chlorine - CI $25.00

Chromium - Cr $20.00

Cobalt - Co $10.00

Copper (total) - Cu $10.00

Copper (CN soluble) $11 .00

Copper (ACid soluble) $10.00

Copper (Ferric sulfate soluble) $11 .00

Copper (Sequential Oxide Analysis) $30.00

Fluorine - F $25.00

Gold - Au See Code 1A3

Gold-Silver (Au-Ag) See Code 1A3-Ag

Gallium - Ga $25 .00

Germanium - Ge $35.00

Insolubles $18.00 Iron (oxide) - Fe,O, $15.00

Lanthanum - La $15.00

Lead (total) - Pb $10.00

Lead (oxide) - PbO $20.00

Lithium - Li $20.00 Loss on IgniUon - LOI $9.00

Mercury - Hg $20.00

Manaanese (oxide) - MnO $20.00

Assay Package For Base Metals - aqau regia

Copper-Cu Cobalt-Co

Lead-Pb Nickel-Ni

Assay Package for Base Metals - 4 acid digestion

Code 8 Peroxide Fusion

Sodium peroxide fusion. acid dissolution followed by ICP/OES.

Element Detection Limit (%)

AI 0.01

As 0.01

Ca :1.01 Co 0.002

Cr 0.01

CU 0.005

Fe 0.05 K 0.1

Element

Magnesium (oxide) - MgO

Moisture - H,O Molybde,um (total) - Mo

Molybdenum (oxide)

Molybdenum (sulfide) Nickel - Ni Nickel - Ni Sulphide Niobium - Nb

Price

$20.00 $10.00

$10.00 $20.00

$20.00

Phosphoraus (oxide) - p,O,

Platinum-Palladium-Gold (Pt-Pd-Au)

$10.00 $20.00

$20.00 $20.00 $40.00

Potassium (oxide) - 1(,0

Rhenium - Re (Mo concentrates)

Rhodium - Rh

Selenium - Se Silicon (oxide) - SiO,

Silver -Ag SOdium (oxide) - Na,Q Specific Gravity - S.G.

Stronbum - Sr Sulfur (Infrared)

Sulfur (Gravimetric) - S

Sulfate - SO. Tantalum - Ta

Tellurium - Te

Thallium - TI

Thorium - Th lIn - Sn Titanium (oxide) - TlO, Tungsten (oxide) - WO, Uranium (oxide) - U,O. Vanadium (oxide) - V,O. Zinc (total) - Zn Zinc (oxide) . ZnO

Zinc-Zn Molybdenum-Mo

$20.00 $38.00

See Code 1 C-Rh $20.00

$20.00 $14.00 $20.00 $22.00

$15.00 $25.00 $25.00

$20.00 $20.00

$20.00

$20.00

$20.00 $20.00 $20.00 $20.00 $20.00 $20.00 $10.00 $20.00

Price

One element $10.00 Each additional $3.00

Add $3 . aD/sample

One element Each additional

$14.00 $3 .00

Element

Mg Mn Ni Pb

S Si 11 Zn

Detection Limit (%)

0.01 0.01 0.005 0.01

0.01

0.01 0.01 0.01

P4~F ~

Page 9: Assessment Report Prospecting Sault Ste. Marie Mining

Trace Element Geochemistry All elements are in ppm except where noted.

• Code Au+14 Au+23 Au+34 1EPI 1EPIIMS 10 10 enh. 1E

Aqua Regia Extraction ICP/OES ICP/MS ICP+ICPIMS Near Total

1E1 1E2 1E3 UItratJ'ace 1 UItratJ'ace 2 1F 1F2

Near Total Metals Au+48 Au+53 Au+63 ICPIMS 1 H 1 H2 UItratJ'ace 3 UItratJ'ace 4 UItratJ'ace 5

Ag AI As Au B Ba Be Bi Sr Ca Cd Ce Co Cr Cs Cu Oy Er Eu Fe Ga Gd Ge Hf Hg

Ho In Ir K La Li • Lu Mg Mn Mo Na Nb Nd Ni P Pb Pr Rb Re S Sb Sc Se Sm Sn Sr Ta Tb Te Th TI Ti Tm U V W Y Yb Zn Zr Price

• PAGE

0.2 0.2 5 5 0.2 0.2 0.2 0.2 0.002 0.002 '0.01% '0.01% '0.01% '0.01% '0.01%

2 2 2 0.5 '10 '3 '2 '0.1 '0.1 5 ppb 5ppb 5j)pb 2Jlpb '0.5 ppb 'O.5ppb

'5 '10 '1 '1 100 100 100 50 '1 '1 '10 '0.5 '0.5

'1 '1 '0.5 '0.1 '0.1 0.1 10 2 2 0.02 0.02

1 0.5 '0.01% 1% 1% '0.01% '0.01% '0.01% '0.01% '0.01%

0.5 0.5 0.5 0.5 0.5 0.5 0.01 0.01 3 3 '0.01 '0.01 5 1 '1 '1 '1 '0.1 '0.1 10 5 '2 '2 '1 '0.5 '0.5

0.05 2 1 '0.02 '0.02 1 1 1 1 1 1 0.01 0.01

'0.1 '0.1 '0.1 '0.1

0.2 0.2 '0.1 '0.1 0.02% 0.02% 0.01% '0.01% '0.01% '0.01% '0.01% '0.01% '1 '10 '0.02 '0.02

'0.1 '0.1 0.1 '0.1 '0.1

1 1 '0.1 '0.1 1 1 1 1 1 :) f~::> tJ : 1,5 ;J;JG [3001)1 (5 '}~,b) (50pb; (::J c·pb) (5 pab) (5 ppb) ,50pb) 1(5 pob)

'0.1 '0.1 '0.02 '0.02

Spl'b 5ppb '0.01% '0.01% '0.01% '0.01% 'O.Ol°/c, '0.01%

1 0.5 '1 '10 0.5 '0.5 '0.1 '0.1

0.05 0.05 '0.1 '0.1 '0.01% '0.01% '0.01% '0.01% '0.01%

2 2 '2 '2 '1 '5 '1 '1 2 2 5 1 '2 '2 '2 '1 '0.01 '0.01

0.05% 0.01% '0.01% '0.001% '0.0010/, '0.001% '0.001% '0.1 '0.1

5 5 '0.02 '0.02 '1 '1 50 20 '1 '1 '1 '1 '0.1 '0.1

'0.001· '0.001% '0.001°;' '0.001% 2 2 2 2 2 2 '0.01 '0.01

'0.1 '0.1 30 15 '0.1 '0.1

0.001 0.001 +1DO +10G +100 +100 ~100 +0.01% +10 0.2 0.2 0.2 0.1 '10 '5 '2 '0.02 '0.02

0.1 0.1 '1 '0.1 '1 '0.1 '0.1 0.1 5 3 '0.1 '0.1

0.1 0.1 '0.1 '0.1 0.05% 0.02% '10 '5 '0.05 '0.05 0.1% 0.05% '1 '1 '1 '0.5 '0.5 1 0.5 '0.05 '0.05 0.5 0.5 '0.1 '0.1

0.1 '1 '1 0.02 0.02 0.5 0.2 '0.1 '0.1

'0.1 '2 '2 '0.02 '0.02 '0.01% '0.01% '0.01% '0.01%

'0.1 '0.1 0.5 0.5 10 '0.1 '0.1

'1 '1 '1 '1 '1 4 4 4 1 '10 '1 '10 '0.1 '0.1

'1 '1 '1 '0.01 '0.01 0.2 0.2 '0.1 '0.1

'1 '1 50 50 '1 '1 '1 '2 '0.1 '0.1 '1 '1 '1 '0.1 '0.1

$21.00 $29.00 $15.75 $18.00 $9.25 $9.75 $10.75 $10.75 $18.00 $23.00

, Partial extraction only ,-19 add or' b'/ :::ClcJ \/;3pour ,;:"0. (CODE 1G), add $;'.25

Code 1EPI

0.3 '0.01%

1 2

0.01% 0.3

1

1

'0.01%

-50pb)

0.01%

0.01% 1 1 0.01%

1 0.001% 3

+'100

1

0.01%

2

'1

1

$13.75

0.3 0.3 0.3 0.05 0.05 0.05 '0.01% '0.01% '0.01% '0.01% '0.01% 3 0.5 0.5 0.5 '0.1 '0.5

2 ppb 2 ppb 2~b 2J~pb '1 '7 50 50 '1 '1 '1 1 1 1 0.1 0.1 0.1 2 2 0.1 0.02 0.02 0.02

0.5 0.5 0.5 0.5 0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.3 0.3 0.3 0.1 0.1 0.1

3 3 '0.1 '0.1 '0.1 1 1 1 0.1 0.1 1 1 2 2 1 '0.5 '2

1 1 0.05 0.05 0.05 1 1 1 0.2 0.2 0.2

'0.1 '0.1 '0.1 '0.1 '0.1 '0.1

0.2 0.2 '0.05 '0.05 '0.05 0.01% 0.01% 0.01% 0.01% '0.01% '0.01% '1 0.1 0.1 0.1

'0.1 '0.1 '0.1 0.1 0.1 0.1 0.1 1 1 '0.1 '0.1 '1

1 1 1 1 1 15 ppb: <5 i)0b} :59Cb) (5 ppb) 15 pab) (5 PPlJ)

'0.1 '0.1 '0.1 0.2 0.1 0.1 0.1 5 ppb 5 ppb 5~b ,

0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 0.5 0.5 '0.1 '0.1 0.1

0.5 0.5 0.5 0.05 0.05 '0.1 '0.1 '0.1

0.01% 0.01% 0.01% 0.01% 0.01% 0.01% 1 1 1 1 1 1 1 1 1 1 0.1 0.2 0.01% 0.01% 0.01% 0.01% 0.001% 0.01%

'0.1 '0.1 '0.1 5 5 '0.1 '0.1 '0.1

1 1 1 0.5 0.5 0.5 0.001% 0.001% 0.001% 0.001% 3 3 3 0.5 0.5 0.5

'0.1 '0.1 '0.1 15 15 0.2 0.2 0.2

0.001 0.001 0.001 +100 +100 +100 +100 5 0.1 0.1 0.1 0.1 0.1 4 0.1 0.1 0.1 0.1

3 3 0.1 0.1 0.1 0.1 0.1 '0.1 '0.1 '0.1 0.01% '1 '1 '1 '1

1 1 1 0.2 0.2 0.2 0.5 0.5 '0.1 '0.1 '0.1 0.5 0.5 '0.1 '0.1 '0.1

2 0.1 0.1 0.1 0.1 0.2 0.2 '0.1 '0.1 '0.1

5 0.1 0.05 0.05 0.05 0.01% 0.01% 0.01% 0.01%

'0.1 '0.1 '0.1 '10 0.5 0.5 0.1 0.1 0.1 2 2 2 1 1 1 '5 1 1 1 '0.1 '1 '1 '1 '1 '0.1 '0.1 '0.1

0.2 0.2 '0.1 '0.1 '0.1 1 1 1 0.5 0.2 0.5 '5 '1 '1 '1 $15.75 $26.00 $37.00 $39.00 $20.00 $30.00

Elements in brackets are optional - see notes, page 10-11 + only sulphide sulphur is e>:tracted

The "Au+14" group of elements provides a high quality, low cost package for epithermal gold exploration [by INM (Au, As, Sb, Ba, Hg and VI/), aqua regia ICP (base metals and sulphur) and optional cold vapour FIMS (Hg)j. A sample of ~30 g is used for Au analysis. An enhanced paclreat (Code 1 EPI enhanced) with better detection limits for Au (2 ppb) and As (0.5 ppm) also is available for an additional $2.00 per sample. (35 g required). Sulphur (+) from barite will not be reported. If total S is required, see Code 4F-S. See Code 1 E for notes on base metals.

-:7..

Page 10: Assessment Report Prospecting Sault Ste. Marie Mining

Trace Element Geochemistry Which digestion do I use?

1. AQUA REGIA DIGESTION - This leach uses a combination d concentrated hydrochloric and nitric acids to leach sulphides, some oxides and some silicates. Mineral phases which are hardly (if at all) attacked include barite, zirco~" monazite, sphene, chromite, gahnite, garnet, ilmenite, rutile and cassiterite. The balance of silicates and oxides are only slightly to moderately attacked, depending on the degree of alteratiCin. Generally, but not always, most base metals and gold are usually dissolved if the sample is ground finely enough.

2. "TOTAL" DIGESTIOf'J - This acid attack is the most vigorous used in geochemistry. It will employ hydrochloric, nitric, perchloric and hydrofluoric acids. Even ':iith this digestion, certain minerals (barite, gahnite, chromite and cassiterite) may not go into solution. Other minerals including zircon, sphene and magnetite may not be totally dissolved. Most other silicates will be dissolved, however some elements will be erratically volatilized, including Si, As, Sb, Cr and Au. Total digestions cannot be used for accurate determinations of REE, Ta, Nb, As, Sb, Sn, Hf, Cr, Au and Si.

3. FUSION TECHNIQUE - The most aggressive fU::Hon technique employs a lithium metaborateitetraborate fusion. The resulting molten bead is rapidly digested in a weak nitric acid solution. The fusion ensures that the entire sample is dissolved. It is only with this attack that major oxides including SiD, , REE and other high field strength elements are put into solution. High sulphide bearing rocks may require different treatment, but can still be adequately analyzed.

NOTE: Resuils from aqua regia or total digestions may be lab dependent or lab operator dependent Actlabs has autom<;~ed this aspect of digestion using a microprocessor designed hotbox to accurately reproduce digestion conditions every time.

Code 1 EPIIMS - The " Au+23" group of elements is similar to Code 1 EPI but indudes a suite of elements by ICPIMS to provide virtually all elements used for epithermal gold exploration The multielement acid attack will only dissolve the soluble forms of barium, while INAA will provide the total barium concentration. The total Sa to soluble Sa ratio will be a direct indicator of barite concentration. Code 1 EPI/MS Enhanced is available which offers Au - 2 ppb, As - 0.5 ppm, Sb - 0.1 ppm for an additional $2.00 per sample (35 g required). See Code 1 E for notes on base metals.

Code 1 D - The sample is encapsulated, irradiated and measured in a multielement mode by INAA for Au+34 elements. The elements in this package are determined non-destructively and the total metals help the geologist determine rock types, alteration and pathfinder elements. The 30 9 aliquot provides a 'epresentative sample size for gold analysis (0.5 to 30 g required).

Code 1 D enhanced - This INAA package is similar to Code 10 but has ennanced detection limits. This package has become very popular for rock, soil, lake sediment and stream sediment samples (0.5 to 30 g required) .

Code 1E" This package determines a base metal suite and sulpnide sulpnur by an aqua regia extraction with an ICP/OES finish. If accuracy better than +/- 10-15% is required for higher level samples we recommend assays (Code 8) (+/- 3%) for Cu , Zn and Ni over 10,000 ppm and certainly over 50,000 ppm. Assays are also recommended for Pb >5000 ppm and Ag > 1 00 ppm due to potential solubility problems. Values exceeding these limits are estimates and are provided for !'lformation only. (0.5 9 of sample required). Prices: first element $5.00; each additional element $2.00.

Code 1E1 - This analytical package uses the same digesUon as Code 1E. The same comments apply as in Code 1E for base metals. In addition, a variety of other elements are obtained non"quantitatively since chromite, barite, silicates, magnetite, sphene and some other mineral phases are not soluble with this digestion. Zinc in gahnite or sphene will not be soluble in aqua regia and all Ni in silicate phases may not be totally leachable. (0.5 9 of sample required) .

Code1 E2, 1 E3 - These are simi lar to Code 1 E1, but offer an enhanceo list of analytes. (0.5 g of sample is required). Code 1 F, 1 F2 - These packages uses a "near total" digestior employing HF, HCIO., HNO, and HCI to get as much of the sample into solution as

possible without fusing the sample. "'"he resulting metals are determined by ICP/OES. Sulphide sulphur is induded. The sulphur associated with barite will not be dissolved. Other phases which may not be totally digested include zircon, monazite, sphene, gahnite, chromite, magnetite, barite, cassiterite, ilmenite and rutile. The same comments apply as in Code 1 E for base metals. (0.25 g of sample required) .

Code uLTRATRACE-1 - This partial extraction is analyzed by ICP/MS to provide lower detection limits. Upper limits are up to 20,000 times the detection limits. (0.5 g of sample is required) .

Code CLTRATRACE-2 - This combines ULTRATRACE"1 with Code 1 E2 to provide a few additional elements from the ICP/OES as well as extend the upper limits of the ULTRATRACE-2 elements. (0.5 g of sample is required).

Code 1 H "Au+48" - This package provides a trace element scan for virtually all types of economic mineralization. It also provides useful information on alteration, rock types, and pathfinder elements. The Code 1 D enhanced (INAA) and Code 1 F (4-acid digestion ICP technique) provide 49 elements. The elements determined by INAA are Au, As, Sa, Sr, Ce, Co, Cr, Cs, Eu, Fe, Hf, Hg, Ir, La, Lu, Na. Nd, Rb, Sb, Sc, Se, Sm, Sn , Ta, Th , Tb, U, W, Yb and Lu. The remaining elements are determined by the 4 acid ICP (Code 1 F above) technique. SiO, is not analyzed due to volatilizatior'. (0.75 - 35 g required depending on sample size you wish to be analyzed for Au).

Code 1H2 "Au+5J" - This package is similar to Code 1 H but also uses ICPIMS on an acid digest solution to obtain additional elements. If Au is important, a larger sample size (up to 35 g) should be submitted.

Code ULTRATRACE..J - This combines INAA, 4-acid digestion ICP and ICP/MS analysis to provide the most comprehensive near total metal package available using an acid digestion. Note that this package is not suitable for chrondrite plots as not all REE are quantitatively extracted from zircon, monazite, etc. (1 .0 to 35 g of sample required).

Code ULTRATRACE4 - Near total digestion employing HF, HCIO., HNO, and HCI with ICP/MS finish (0 .5 g of sample required) This digestion may not be completely total if resistate minerals are present. As. Sb and Cr may be partially volatilized .

Code ULTRATRACE-5 - Combines INAA with a 4-acid digestion (HF, HCIO., HNO, and .-tCI) to attempt to give as total metal as is possible with acids. Some of the resistate elements are provided by INAA.

Page 11: Assessment Report Prospecting Sault Ste. Marie Mining

Lithogeochemistry for Exploration and Research All elements are in ppm except where noted.

(t) Optional elements. see Code 4A

(++) Optional

~g;r:~~I~A~AA . (+) Optional elements by multiacid digestion ICP. Code 481

• PAGE

Code

AbO,

CaO Cr,O,

CuO Fe,O,

K>O MgO MnO Na,O NiO P,O, SiO, TiO, LOI Ag As Au Ba Be Bi Br Ca Cd Co Cr Cs Cu Fe Ga Ge HI :r1

Ir Mo Na Nb Ni Pb Rb S Sb Sc Se Sn Sr Ta Th TI U V W Y Zn Zr La Ce Pr Nd Sm Eu Gd Tb Oy Ho Er Tm Yb Lu

# Samples 1-10 11+

XRF INAA INAA WRA-ICP Trace Element WRA+trace Trace Element WRA+trace WRA-XRF XRF pressed pellet

4A-expl 4A-research 48 482-std 4Litho 482 -research 4Lithoresearch 4C 4C Laterite 4Cl

5 2 5 ppb 100

1 0.5%

1 2 0.5

0.02%

0.5

5 ppb 5 0.01%

100

20

0.2 0.1 3

500 1 0.5

0.5

3

40

0.2 3

5 0.1 0 .1

0.5

0 ,'1

0.05

$26.00 $24.00

2 1 2 ppb 20

0.5 0.2%

0.1 0.5 0.2

0.005%

0.2

2 ppb 2 0.001%

50

10

0.1 0.01 0.5

100 0.3 0.1

0.1

1

10

0.05 1 (to.Ol ) 1 0.01 0.05 (to.Ol ) 0.1 (to.01 ) (to.Ol ) (tD.Ol ) (to.Ol ) 0.05 0.01

$60.00 $57 .00

0.01% 0.01%

0.01% 0.01% 0.01% 0.001% 0.01 %

0.01% 0.01% 0.001% 0.01% (0.5+) 0.5 (0.5++) 5 (0.5++) (2 ppb++ (2 ppb++) 3 3 1 (10+) 0.4 (0.5++) (0.5++)

(05+) (0.5+) (1 ++) 1 (5++) 20 (5++) (1++) 0.5 (1+) 10 (1+)

(0.01%++) 1 1

(1++) 0.2 0.2

(5 ppb++ (5 ppb++) (5++) 2

(0.01%++) 1

(1+) 20 (1+) (5+) 5 (20++) 2 (100+) (100+) (0.2++) 0.5 (0.2++) 1 (0.1++) (3++) (3++)

1 2 2 (05++) 0.1 (0.2++) 0.1

0.1 (0.5++) 0.1 5 5 (1++) 1 2 1 (1+) 30 (1+) 4 5 (0.5++) 0.1 (3++) 0.1

0.05 (5++) 0.1 (0. 1++) 0.1 (0.2++) 0.05

0.1 (0.5++) 0.1

0.1 0.1 0.1 0.05

(02++) 0.1 (0.05++) 0.01

$35.00 $50.00 $30.00 $45.00

0.01% 0.01%

0.01% 0.01% 0.01% 0.001 % 0.01 %

0.01% 0.01% 0.001% 0.01% 0.5 0.5 5 (0.5++) 5 (0.5++) (2 ppb++) (2 ppb++) 3 3

1 0.4 0.1 (0.5++) (0.5++)

(0.5+) (0.5+) 1 1 20 (5++) 20 (5++) 0.5 0.1 10 (1+) 10 (1+)

(0.01%+' ) 1 1

1 0.5 0.2 0.1

0.2 0.1 (5 ppb++) (5 ppb++)

2 2 (0.01%++)

1 0.2 20 (1+) 20 (1 +) 5 5 2 1 (100+) (100+) 0.5 (0 .2++) 0.2 1 (0.1++) (3++) 1 2 0.1 0.1 0.1 0.1 5 1 1 30 (1+) 5 0.1 0.1 0.05 0.1 0.1 0.05 0.1 0.1 0.1 0.1 0.1

0.05 0.1 0.04

$68.00 $58.00

(0.1 ++) (3++) 1 2 0.01 0.05 0.05 0.01 5 0.5 0.5 30 (1 +) 1 0.05 0.05 0.01 0.05 0.01 0.005 0.01 0.01 0.01 0.01 0.01

0.005 0.01 0. 002

$80.00 $70.00

9

0.01% 0.01%

0.01% 0.01 % 0.01 % 0.001 % 0.01 %

0.01% 0.01% 0.001% 0.01% 0.5 5 (0 .5++) (2 ppb++) 3 1 0.1 (0.5++)

(0.5+) 1 20 (5++) 0.1 10 (1+)

1 0.5 0.1

0.1 (5 ppb++) 2

0.2 20 (1+) 5 1 (100+) 0.2 1 (0.1++) (3++) 1 2 0.01 0.05 0.05 0.01 5 0.5 0.5 30 (1+) 1 0.05 0.05 0.01 0.05 0.01 0.005 0.01 0.01 0.01 0.01 0.01 0.005 0.01 0.002

$97.00 $82.00

;

0.01% 0.01% 0.01%

0.01% 0.01 % 0.01% 0.001 % 0.01 %

0.01% 0.01% 0.01% 0.01%

$36.00 $3100

0.01% 0.Q1% 0.01% 0.01% 0.01% 0.01% 0.01 % 0.01 % 0.01% 0.01% 0.01% 0.01% 0.01% 0.01%

$43.50 $38.50

- .

5" 5"

5"

5'

1-

4" 5" 2"

5 2'

5 , .

2' 5" 5"

See Code 4Cl adjacent page

Page 12: Assessment Report Prospecting Sault Ste. Marie Mining

Lithogeochemistry for Exploration and Research

A;,O, Cae SiO, Fe,O, K,O TiO,

MgO MnO Na,O P,O, LOI Ag As Au Ba Be Bi Br Cd Co Cr Cs Cu Ga Ge Hf In Ir Mo Nb Ni Pb Rb Sb Sc Se Sn Sr Ta Th TI U V W Y Zn Zr La Ce Pr Nd Sm Eu Gd Tb Dy Ho Er Tm Yb Lu

# Samples 1·10 11+

Total IDENT Total IDENT Code 4E·expl. Code 4E-research

0.01% 0.01% 0.01% 0.01% 0.01% 0.005% 0.01 % 001% 0.01 % 0.01 % 0.01 % 0.5 2 5"ppb 3 1 10 1 0.5 1 1 0.5 1 (5"')

0.5

5 ppb 5 (2"') 1 5

,20 (2''') 0.2 0.1 3

(5''') 2 1 0.5

0.5 5 3 1 1 4 0.5 3

5 0.1 0.1

0.5

0.1 0.05

$49.00 $45.00

0.01% 0.01% 0.01% 0.01% 0.01% 0.005% 0.0 1% 0.01% 0.01 % 0.01% 0.01% 0.5 1 1 ppb 1 1 10 (0. ,+++)

0.5 0.5 01 0.5 0.2 Ie' .++)

1 (5' '') ,++)

~+~ , 0.2 (I: 1 1 ie \. 1 ppb

'2 (2" ') (0 "'+++J

1 5 10 (2' '') ++, 0.1 0.01 0.5 (5''') 1T+'T")

2 0.3 (00' +++)

0.1 (J 05++"1 Of. +)

0.1 01+++) 5 1 1 1 4 (1+++; 0.05 (OO5+p'l

1 10 05· -(0 (, 'i)

1 to r''i'' )

0.01 0.05 If) )0<';+++)

(('oJ' }

0.1 .j ..... )

(f 'J Ie IJ ., \ l d +) ( 1Cc-_+)

0.05 D;:' +- +)

0.01 J" , _-t-

$108.00 $100.00

Notes: Code 4A - Both the exploration and research grades are detennined by INAA

A minimum sample weight of 2 g is recommended. REE chondrite plots are proVided at no charge with the research grade or at $1.00 per sample for the exploration grade. For elements indicated with t (Code 4A RESIMS) by fusion ICPIMS, add $28.00.

Codes 4B, 482-STD, 4B2·RESEARCH, 4L1THO, 4L1THORESEARCH - Actlabs has developed a lithium metaborate/tetraborate fusion ICP Whole Rock Package Code 48 and a trace element ICP/MS package Code 482 which is unique for scope of elements and detection limits. The two packages are combined for Code 4Litho and Code 4Uthoresearcn. The quality of whole rock data in Code 4B meels or exceeds quality of oata by fusion XRF Code 4C, the old standard in whole rock analysis. The fusion process ensures total metals particularly for elements like REE in resistate phases. (This may not be the case for acid digestions, particularly for heavy rare earths and other elements contained in refractory minerals like zircon, sphene, monazite, chromite , gahnite and several other phases. If refractory minerals are rot digested, a bias may occur for certain REE and HFSE with acid digestions). Quality of data is exceptional and can be used for the most exacting applications. The trace element package by ICPIMS, Codes 482-STD or 482-RESEARCH, on the fusion solution provides research quality data whether using standard or research detection limits. Eu detenninations are semiquantitative in samples having extremely high Ba concentrations (greater than 1 %). This package is intended primarily for unmineralized samples. Mineralized samples can be analyzed, however, data may be semiquantitative for chalcophile elements (Ag, As, Bi, Co, Cu, Mo, Ni, Pb, Sb, Sn, Wand In). When quantitative values for the chalcophile elements are required on mineralized samples, please indicate as Code 4B2-STDQUANT, 4B2-RESEARCHQUANT, 4L1THOQUANT or 4L1THORESEARCHQUANT, and a surcharge of $16.00 per sample will apply. A minimum sample weight of 5 g is required. Elements with (+) are available (Code 481) for an additional $8.25 per sample. Those indicated with (++) are available by INAA (Code 4B-INAA) for an additional $15.00 per sample. Please add 0.5 to 30 g depending on sample size you prefer to analyze for Au with this option. Values on replicates and standards are provided at no cost, as are REE plots.

Code 4C - The tried ,md true fusion XRF whole rock package. Samples containing high barite or high sulphide (greater tllan 1 %) should be analyzed with Code 4B. A minimum sample weight of 3 g is required. We reserve the right to change analytical method to Code 4B if required by the sample composition.

Code 4C1 - This XRF pressed pellet method requires a minimum sample weight of 6 g. The XRF pressed pellet method is only suitable for low metal content of below 1% for each element listed. Prices: 1" element - $10.00; each additional- $3.00; H lot - $1 8.00; ' Iot­$18.00. Each element not in • or " , add $3.00 per element.

Code 4E - This unique package uses ICP, INAA, ICPIMS and XRF technologies to completely characterize geological samoles. Two different grades of analysis (exploration and research) are provided depending upon your requirements. This package is not suitable for analyzing concentrates or mill products. A minimum sample weight of 5 g is required) .

Code 4E Options • Ga, Pb, Sn, Nb and Rb (Code 4E-XRF) indicated by (* .) by Pressed Pellet XRF add $18.00. This package can be added to Code 4E exploration or Code 4E research (please add 6 9 of sample). • The Sode 4E ICPIMS add-on option (detection limits indicated by -+-) can only be added to Code 4E research grade at an additional cost of $30.00. • Any selections from Code 4F can be added to Code 4E exploration or research

Code 4F - Other analyses associated with WRA (can be added to any Code 4 package). Add 1 gram for each option chosen .

FeO (0.1 %) by Titration $15.00 CO, (0.01%) by Coulometry $15.00 S (0.01%) by Infrared $15.00 H,O +/. (0.1%) by Gravimetric $20.00 SO. (0.05%) by Infrared $20.00 C. S (0.01 %) by Infrared $20.00 CI (0.01 %) by INAA $22.00 B (0.5 ppm) by PGNAA $28.00 Hg by Cold Vapour FIMS $7.50 B (2 ppm) by PGNAA $18.00 F (0.01%) by ISE $10.00 N (total) Thermal Conductivity $35.00

10 D~ _

Page 13: Assessment Report Prospecting Sault Ste. Marie Mining

General Information ~ms and Conditions

AII prices in this pricelist are exclusive of GST, are in Canadian dollars and apply only to clients submitting samples from Canada. These prices apply to most geological materials for routine analyses. A surCharge may apply for abnormal matrices or non routine analytical requirements.

For direct bank deposit, pay to the account of Activation Laboratories Ltd. at:

Royal Bank of Canada 59 Wilson Street West Ancaster, Ontario CANADA L9G 1N1

The client will be advised of any such conditions prior to performing the analytical work. A minimum charge of $75.00 will be effective on all orders. Payment should accompany the order unless credit has been established. Terms are net 30 days. Prices and packages are subject to change without notice. We reserve the right to subcontract work to affiliated laboratories. Clients can pay invoices by cheque, bank draft, Visa, Mastercard or direct bank deposit (EFT).

Tel: (905) 648-4411 Transit # 00102 003 Account # 100 154 4

Quality Assurance/Quality Control (OA/QC) Activation Laboratories Ltd. has achieved the ultimate accreditation to international standards. the ISO 17025 standard for specific registered tests. ISO 17025 evaluates the quality system and specific analytical methodologies through proficiency testing and routine audits of the laboratory. In addition, we have achieved accreditaiton to CAN-P-1579, specific to mineral analysis laboratories. We are one of the few commercial laboratories which have achieved this distinction. Activation Laboratories Ltd. can also advise on methods you can use to ensure security of samples during transport to the laboratory. We have a rigorous chain of custody protocol in place to ensure security of your samples once we receive them.

Liability Any analysis, testing, inspection or investigation in connection with any work performed by Activation Laboratories Ltd. shall be conducted in accordance with recognized professional analytical standards. Neither Activation Laboratories Ltd., nor its subcontractors, consultants, agents, officers or employees shall be held responsible for any loss or damage resulting directly or indirectly from any default, negligence, error or omission. While every effort will be taken to store the unused portion of your samples, Activation Laboratories Ltd. cannot bear any responsibility for loss or damage, regardless of the cause. The liability, if any, of Activation Laboratories Ltd. shalf be limited to the cost of performing the analyses.

Sample Packaging and Shipping Instructions For convenience and to improve turnaround time, a sample submittal sheet can be filled out on-line and e-mailed. Make sure to include date of shipment, carrier or shipment method and the waybill number so that we can track delayed shipments. An accurate sample list can be sent as an e­mail attachment and will speed up order processing. Please ensure all samples are identified clearly with sample numbers. This can be accomplished with waterproof ink on the sample bags or with sample tags in the sample bags. Turnaround time will be improved by packaging

~ samples in order, neatly in shipping containers and providing a list of all sample numbers, preferably with a hard copy or bye-mail. If using pop top

• vials or glass bottles, ensure that they are taped shut and protected from breakage. Sealed plastiC bags are best for shipping pulps. If using Bus Parcel Express, the bus station of destination is Hamilton, Ontario. For most efficient delivery, we recommend the use of couriers, or transport companies for heavier shipments.

Samples should be shipped to:

Activation Laboratories Ltd. 1428 Sandhill Drive Ancaster, Ontario Canada L9G 4V5

Tel 1-888-ACTLABS (1-888-228-5227) or 1 (905) 648-9611

Fax 1 (905) 648-9613 E-mail [email protected]

Instructions for report and invoice distribution should be included with each shipment, or can be sent to our e-mail [email protected]. Complimentary shipping labels are available upon request. Heavy duty plastiC sample bags, cloth sample bags, soil envelopes and sample books are available at cost. Filling out a Request for Analysis form will provide all of the information required. Sample submissions poorly labelled or packaged, or having incomplete or no submission sheets may not be processed until adequate written instructions are received from the client and may incur additional sorting charges.

Sample Storage When submitting samples, please indicate on the Request for Analysis form if you require sample storage, disposal or if you require samples to be returned after analYSis. For returns, please include all necessary shipping information e.g., courier, account number, etc. Return of samples is done at cost. The reject portion of samples prepared by Actlabs will be retained for a period of not more than 6 months from the date of final report. Pulps (prepared material) will also be kept for a period of 6 months. Crusher reject or oversized sieve rejects will be saved on request only. Pulps and rejects stored at the customers request will be subject to a storage charge (see sample submittal sheet for charges) billed quarterly. Irradiated material will be discarded after 30 days unless prior arrangements are made. Return of radioactive material requires a Nuclear Safety Commission licence. Cost per shipment of radioactive materials is $100.00 plus shipping costs. Disposal of soil, sediment or vegetation samples, which have entered Canada under a CFIA penn it, will incur a disposal cost for larger sample volumes.

Return of Data Analytical reports can be returned via hard copy, CD-ROM, electronic mail (internet) or fax copy at the customers' discretion for no additional charge. Data is normally available in Excel format. Other formats are available on request. We have implemented a Laboratory Information Management System (L1MS). Clients can track samples from sample reception and logging through to preparation, analysis and reporting.

-~f1around Time

• Most analytical data is usually available within 2 weeks of receipt of samples. Certain analyses that may take longer periods of time. or abnormal volume of samples in the laboratory may also slow turnaround time. Excessively wet samples may slow turnaround time, as will undocumented and unorganized shipments. If you require analyses by a certain date, please ensure that this is noted clearly on the request form. We will make

PAGE

every effort to meet your requirements, however, rush conditions may require payment of a surcharge and must be arranged in advance with the lab manager. We will contact you if we are unable to meet your requirements or if a surcharge is necessary.

II

Page 14: Assessment Report Prospecting Sault Ste. Marie Mining

Location : Cop _01 Name(s) :Graham Stone & Dannica Switzer Date: July 15,2006 Datum : NAD 27 UTM Zone: 17U Easting: 273482 Northing: 5344587 Township: Copenace Claim # 4202734 Joint Venture: Klondike Gold Echum

Comments; • The cause of the anomally is uncertain, since there are three magnetic to slightly

magnetic rock types on the target area. • The mag survey of the grid shows no distinguishable circular feature, although

there does appear to be a dyke running northwesterly through the area. • The southwest portion of the grid is lower lying and is drift covered with boulders

and no outcrop. • No samples taken

Recommendations: • The Keating anomally should be replotted to ensure coverage, however, if plotted

correctly this target seems low priority.

12

Page 15: Assessment Report Prospecting Sault Ste. Marie Mining

Claim 4202734

~~_-J ._ .~_ ._ •• ~ ~ •• _ .~ ,.. • • •• __ ~ __ .~ __ • ._ ~_ ~" _. _~_ ••• ,, __ .~. _ •• ______ ._,. ______ • ___ "._. _.._0_ •• __ '_'_~'" • ~ ____ • __ ~ ________ • ________ • ___ ._ ••• ______ __ __ •••••• " ___ , __ •• _ ..... _._ ••• _._ •• ~ ___ ._ •••• __ • _____ , __ • _. _ •••• _ _ ____ ~ _ ". _~o~erzoom

••••••• • A

Traverse

Waypolnt or sample location Sample

Target Cop_01 CopenaceTownship July 15, 2006

CsnMaplBl, DMTI Spatial and the DMTI Spatiellogo are trademarks of DMTI Spatial Inc .. Markham. OntariO. @GarminLtd.oritssubsldiaries 1995-2004. @21l03DMTI Spatial Inc. • •• •

Page 16: Assessment Report Prospecting Sault Ste. Marie Mining

Waypointor Zone Nad27 Nad27 Rock or Sample Magnetic Acid Test Comments Twp Joint Venture date

Sample# NAD27 Easting Northing Type

GS_099 17 273496 5344728 Kimberlite? magnetic +'ve acid

Float < 1 ftsq in road fill Copenace Klondike Gold

15-Jul-06 test Echum

GS_100 17 273510 5344587 Mafic Dyke magnetic tr pyrrhotite Copenace Klondike Gold

15-Jul-06 Echum

strongly Klondike Gold

GS_101 17 273492 5344538 Int Volcanic magnetic in Outcrop Copenace Echum

15-Jul-06 patches

weak to Klondike Gold

GS_102 17 273531 5344474 Diorite strongly olc porphyritic texture Copenace Echum

15-Jul-06 magnetic

• • •

Page 17: Assessment Report Prospecting Sault Ste. Marie Mining

Location: Cop _04 Name(s): Frank Longpre Date: September 9, 2006 Datum : NAD 27 UTM Zone: 17U Easting: 270255 Township: Copenace Claim # 4209541 Joint Venture: Kootenay Gold Copenace

Comments:

Northing: 5347573

• The Southern portion of the grid consists mostly of massive granitic outcrops. • The North end has some diabase and a large, strong magnetic gabbro outcropping. • These magnetic rocks are the most likely source of the anomally. • No samples taken

Recommendations: • No further work should be undertaken on this target.

Page 18: Assessment Report Prospecting Sault Ste. Marie Mining

r

i

I Claim 4209541

I

I I I !KIDI

I • ~ ~~ ._." __ ~ _______________ .. __ .. " __ ._ ._._. __ ~. _______ ' .. _~~ __ ._._. ___ ... ____ _ _______ , .. _______ . __ ._._." . _____ . __________ . ________ . __ ~_~ _______ .. ____ ... _____ . ___ ~ ________ ~ ... ~~~z~~ .. _ ..

••••••• • •

Traverse

Waypolnt or sample location Sample

Target Cop_04 Copenace Township September 9,2006

CanMap®, OMT! Spatial and the OMTI Spada! logo are trademarks of OMTI Spatial Inc., Markham, Ontario. II:> Garmln Ltd. or its subsidiaries 1995-2004. C2003 OMTI Spade! Inc.

----~.~--------------------~.~--------------------~.~----

Page 19: Assessment Report Prospecting Sault Ste. Marie Mining

Waypointor Zone Nad27 Nad27 Rock or Sample Magnetic Acid Test Comments Twp Joint Venture date

Sample# NAD27 fasting Northing Type

FL_118 17 270397 5347434 Massive

not magnetic rounded Copenace Klondike Gold

9-Sep-06 granite Echum

FL_119 17 270399 5347521 Massive

not magnetic Copenace Kootenay Gold

9-Sep-06 granite Copenace

FL_120 17 270358 5347637 Diabase strongly

strk 262deg dip vertical Copenace Kootenay Gold

9-Sep-06 magnetic Copenace

Fl_121 17 270353 5347591 Massive

not magnetic Copenace Kootenay Gold

9-Sep-06 granite ridge Copenace

FL_122 17 270377 5347565 Gabbro magnetic Copenace Kootenay Gold

9-Sep-06 Copenace

Fl_123 17 270359 5347563 major compass deflection Copenace Kootenay Gold

9-Sep-06 -'

Copenace I r

Fl_124 17 270318 5347603 granite strike 234deg Copenace Kootenay Gold

9-Sep-06 Copenace

FL_125 17 270297 5347686 boulder

Copenace Kootenay Gold

9-Sep-06 pavement Copenace

FL_126 17 270190 5347677 granite strike 168deg Copenace Kootenay Gold

9-Sep-06 Copenace

FL_127 17 270115 5347449 boulders in till Copenace Klondike Gold

9-Sep-06 Echum

FL_128 17 270137 5347517 diabase moderately

Copenace Kootenay Gold

9-Sep-06 magnetic Copenace

FL_129 17 270239 5347466 granite Copenace Klondike Gold

9-Sep-06 Echum

• • •

Page 20: Assessment Report Prospecting Sault Ste. Marie Mining

Location: Cop _10 Name(s) : Dan Sullivan Date: September 29,2006 Datum: NAD 27 VTM Zone: 17V Easting: 276022 Township: Copenace Claim # 4202742 Joint Venture: Kootenay Gold Copenace

Comments:

Northing: 5349804

• The area is predominately covered with poorly sorted unstradified till with abundant pebbles, cobbles and boulders.

• Erratics are prevalent within the grid. • These erratics are granitic gneiss and diabase, the latter which may contribute to

the magnetic high. • No samples taken

Recommendations: • Down-ice sampling results to be reviewed .

I~

Page 21: Assessment Report Prospecting Sault Ste. Marie Mining

Claim 4202742

.rom:::J:32l

.!IWQlll

L. __ ._~o..!..~ __ ~ _. __ ._ .... _.~._~ _. __ .. ~ ____ . __ . ___ "_ .... _. _~ __________ .~ _______ .... ___ ' ___ "'.' __ ... ,. __ .. _. __ .. ~ .. _._ .. _ ...... ______ . __ ._. __ ... _ .. __ ... ______ ._~ _________ ~ ___ ._. __ .~~ _~_. ___ . __ . ____ ~. ______ ~ ____ ~. ____ ._ O~!!~5!0m ___ .

••••••• • •

Traverse

Waypoint or sample location Sample

Target Cop_1 0 Copenace Township Septem ber 29, 2006

CanMep®, DMTI Spatial and the DMTI Spatial logo are trademarks of DMTI Spatial Inc., Markham, Ontario. @Garmln ltd. or Its subsidiaries 1995-2004. @2003 DMTI Spatiallnc. • • •

Page 22: Assessment Report Prospecting Sault Ste. Marie Mining

Waypointor Zone Nad27 Nad27 Rock or Sample Magnetic Acid Test Comments Twp Joint Venture date

Sample# NAD27 fasting Northing Type

DAN_131 17 275887 5349792 granite nil -'ve acid granite striking 270 Copenace Kootenay Gold-

29-Sep-06 Copenace

DAN_132 17 275917 5349966 diabase nil -'ve acid diabase Copenace Kootenay Gold-

29-Sep-06 Copenace

DAN_133 17 275906 5349863 MV nil -'ve acid very fine grained mafic Copenace Kootenay Gold-

29-Sep-06 Copenace

DAN_134 17 275999 5349741 diabase nil -'ve acid diabase Copenace Kootenay Gold-

29-Sep-06 Copenace

DAN_135 17 275976 5349704 granite nil -'ve acid granite Copenace Kootenay Gold-

29-Sep-06 Copenace

DAN_136 17 276180 5349704 granite nil -'ve acid granite Copenace Kootenay Gold-

29-Sep-06 Copenace

~ - '(

• • •

Page 23: Assessment Report Prospecting Sault Ste. Marie Mining

Location : Cop_II Name(s) : Dan Sullivan & Peter Smith Date: May 17, 2007 Datum : NAD 27 UTM Zone: l7U Easting: 275786 Township: Copenace Claim # 4217271 Joint Venture: Kootenay Gold Copenace

Comments:

Northing: 5350625

• The West end of the grid is covered with swamp. • The South end of the swamp is bordered with an East-West striking diabase ridge. • The South-West and the grid centre also have highly magnetic diabase outcrop. • No samples taken

Recommendations: • Review down-ice sample results .

71

Page 24: Assessment Report Prospecting Sault Ste. Marie Mining

--~ ... ,. '~----------- .. -.-- .. - -- - .--- -,._. __ ._-------------_._ ... -.~ .- .. -----~-.---. ------------

\ i · i r • ~ i i · .; I

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Claim 42.11211

L--2rJ.!2!LJ •• __ " __ • ____ ._." •. ____ ,.-. __ . __ J,._~_ •• ___ . ___ •. _. __ ~_.'_'_'_' ____ ._ .. _~ •.• ~ __ . ____ •. ___ • ______ . __ . _____ -. ________________ •. ____ ,._ .•. ___ • ______ • _____ .... ________ • __ ._ •.•..• _ .. _. __ ~~_r:o_0ll!_ .. __

••••••• Traverse

• Waypoint or sample location ... Sample

Target Cop_11 Copenace Township

MAY 17, 2001

CenMep®, OMTI Spatial and the DM" Spallallogo are trademarks 01 DMTI Spatial Inc" Markham, Ontario, @Garmln Ltd. or Its subsidiaries 1995-2004. 02003 DMTI Spatlallnc.

• • •

Page 25: Assessment Report Prospecting Sault Ste. Marie Mining

Waypoint or Zone Nad27 Nad27 Rock or Sample Magnetic Acid Test Comments Twp Joint Venture date

Sample# NAD27 Easting Northing Type

DAN_138 17 275928 5350549 mafic

magnetic -'ve highly magnetic MV with a granite contact striking

Copenace Kootaney Gold

17-May-07 volcanic 280 Copenace

DAN_139 17 275785 5350626 diabase magnetic -'ve contact with WN with flow banding Copenace Kootaney Gold

17-May-07 Copenace

DAN_140 17 275743 5350688 diabase magnetic -'ve Copenace Kootaney Gold

17-May-07 Copenace

DAN_141 17 275724 5350394 pink granite non-magnetic -'ve Copenace Kootaney Gold

17-May-07 Copenace

DAN_142 17 275640 5350396 granite non-magnetic +'ve mild Copenace Kootaney Gold

17-May-07 Copenace

DAN_143 17 275620 5350774 Mafic Volcnic magnetic +'ve mod with qrtz veinlets Copenace Kootaney Gold

17-May-07 ('{) Copenace ~

• • •

Page 26: Assessment Report Prospecting Sault Ste. Marie Mining

r

Location: COP 13 Name(s): Katy Richard & Josh Guthrie Date: May 23, 2007 Datum: NAD 27 VTM Zone: 16 Township: Copenace Claim #: 4209541 Joint Venture: Klondike Gold Echum Comments:

• Target was a massive outcrop of diabase (25m-30m in diameter) • Prospected creek north of target to Murray Lake • Prospected creek running south of the road for 500m. • Sample #: 55351 (sent in for 1 E 1 )=> dark grey boulder resembling diabase

fizzed; has light-coloured intrusions approximately 0.5 cm in diameter • NO follow-up recommended

24

Page 27: Assessment Report Prospecting Sault Ste. Marie Mining

Murlay Lake

/

/

:anMap®, DMTI

/'

j '

( •••••••

• ... Traverse

Waypoint or sample loca~on Sample i

/

/( Target Cop_13 Copenace Township May 23,2007

the DMTI Spatial logo are trademarks of DMTI Spatial Inc., Markham, Ontario. © Garmin Ltd. I subsidiaries 1995-2004. ©2003 DMTI Spatial Inc.

Claim 4~}541 /

Page 28: Assessment Report Prospecting Sault Ste. Marie Mining

Waypointor Zona Nad27 Nad27 Rock or Sample Magnetic Acid Test Comments Twp Joint Venture date

Sample# NAD27 Easting Northing Type Claim

JG_001 16 716411 5347693 diabase outcrop 150m S of Cop_13 Copenace Kootenay Gold

23-May-07 4209541 Copenace

JG_002 16 716402 5347720 diabase outcrop 120m S of Cop_13 Copenace Kootenay Gold

23-May-07 4209541 Copenace

JG_003 16 716469 5347829 large coarse grained boulder with possible

Copenace Kootenay Gold

23-May-07 4209541 carbonatite vein in swamp 60 m E of Cop_13 Copenace

JG_004 16 716515 5347843 diabase mulitple diabase boulders on edge of swamp along

Copenace Kootenay Gold

23-May-07 4209541 dam approx 50N 100E of Cop_13 Copenace

Gabbro/Diab large boulder of gabbro diabase with many

Kootenay Gold JG_005 16 716618 5347749

ase? magnetic inclusions along creek approximately 250 m E of Copenace

Copen ace 23-May-07 4209541

Cop_13

KR_074 16 716407 5347840 diabase magnetic very very very large outcrop of diabase- 25-30 m in

Copenace Kootenay Gold

23-May-07 4209541 diameter Copenace '.9

~

KR_075 16 716390 5347677 diabase magnetic 10m diameter diabase outcrop 160 m south of

Copenace Kootenay Gold

23-May-07 4209541 COP_13 Copenace

KR_076 16 716367 5347700 granite

non-magnetic 20 m granite outcrop running NE-SW, 140m S of

Copenace Kootenay Gold

23-May-07 4209541 outcrop Cop_13 Copenace

KR_077 16 716424 5347743 granite

non-magnetic 10m long granite outcrop runs NW_SE 110m S of

Copenace Kootenay Gold

23-May-07 4209541 outcrop COP_13 Copenace

KR_078 16 716273 5347764 granite

non-magnetic 5 m diameter granite subcrop 150m SW of cop_13 Copenace Kootenay Gold

23-May-07 4209541 subcrop Copenace

KR_079 16 716284 5347804 Diabase magnetic 15m X 5m diabase outcrop 130 m W of Cop_13 Copenace Kootenay Gold

23-May-07 4209541 Copenace

KR_080 16 716380 5347784 diabase magnetic 20 m diameter diabase outcrop 60m SW of Cop_13 Copenace Kootenay Gold

23-May-07 4209541 Copenace

KR_081 16 716268 5347850 granite 20 m granite outcrop 140 m west of cop_13 Copenace Kootenay Gold

23-May-07 4209541 Copenace

• • •

Page 29: Assessment Report Prospecting Sault Ste. Marie Mining

KR_082 16 716275 5347870 diabase 15 m diameter diabase outcrop 140 m W of Cop_13 Copenace Kootenay Gold

23-May-07 4209541 Copenace

KR_083 16 716370 5347898 diabase magnetic 10m long diabase 75 m NW of COP _13 Copenace Kootenay Gold

23-May-07 4209541 Copenace

KR_084 16 716487 5347915 Diabase/gabb diabase/gabbro boulder with inclusions found on

Copenace Kootenay Gold

23-May-07 4209541 ro traverse of stream, east of Cop _13 Copenace

dark grey medium grained diabase weathered along Kootenay Gold

55351 17 271070 5348351 Diabase magnetic positive perpendicular lines of cleave with light coloured Copenace 23-May-07 4209541 inclusions

Copenace

• • •

Page 30: Assessment Report Prospecting Sault Ste. Marie Mining

Location: COP 15 Name(s): Katy Richard & Dakota Souliere Date: August 15,2007 Datum: NAD27 UTM Zone: 17 Easting: 267665 Township: Copenace Claim #: %: 4209533 & V4 :4209532 Joint Venture: Klondike Gold Echum

Comments: • NO follow-up recommended

Northing: 5345613

• Target is located just south of Murray Lake; ATV's are required to get across a questionable bridge and can be taken to within 600m of the anomaly. ATV trail is located to the south of the target; truck can get to within 2.7 km of the anomaly

• Target was situated just east of a long (>50m) diabase outcrop (both coarse- and fine-grained); the ridge of diabase had shear, steep cliffs to the east

• There was some manganese and iron staining found inside the diabase • Only the one diabase outcrop west of the anomaly was found; all other outcrops

were granites and granitic gneisses • No samples were taken

Page 31: Assessment Report Prospecting Sault Ste. Marie Mining

,---_ ... __ .................... -. I

Claim 4209533 Claim 4209532

~",

314 percent 114 percent

••••••• • •

.------ -- -_. •. -.. ----.------;---------

c1Urn 4Z0~5 33

Traverse

Way point or sample location Sample

claUn 4209532.

Target Cop_iS Copenace Township August1S,2007

CanMap®, OMTI spa. the DMTI Spatial logo are trademarks of OMTI SpBtiellnc., Markham. Ontario. C GBrmio Ltd. 01 its su.es 1995-2004. 02003 OMTl Spatial Inc. •

Page 32: Assessment Report Prospecting Sault Ste. Marie Mining

Waypointor Zone Nad27 Nad27 Rock or Sample Magnetic Acid Test Comments Twp Joint Venture

Sample# NAD27 Easting Northing Type date

OS_071 17 267752 5345780 diabase magnetic negative diabase boulder cluster 3m X 3m, 190m Northeast

Copence Klondike Gold

15-Aug-07 ofCOP_15 Echum

OS_072 17 267683 5345462 granite magnetic in

negative granite outcrop 10m X 5m, 150m South of COP _15 Copence Klondike Gold

15-Aug-07 outcrop spots Echum

OS_073 17 267608 5345497 diabase

magnetic negative diabase outcrop 30m X15m, 130m Southwest from

Copence Klondike Gold

15-Aug-07 outcrop target COP _ 15 Echum

granite granite outcrop with some epidote,

Klondike Gold KR_341 17 267652 5345628 4209533,4209532, outcrop is about 7m tall X15m Copenace 15-Aug-07

outcrop long, 18m Northweast of COP _15

Echum

KR_342 17 267677 5345774 granite granite outcrop, 2m tall 15m long, 150m North of

Copenace Klondike Gold

15-Aug-07 outcrop COP _15 Echum

KR_343 17 267645 5345756 granite granite outcrop, 0.5m tall X 10m long, 135m North

Copenace Klondike Gold

15-Aug-07 outcrop ofCOP_15 Echum

granite outcrop, this one is more rounded shaped as

KR_344 17 267682 5345703 granite opposed to being a ridge, 8m in diameter, quite a

Copenace Klondike Gold

15-Aug-07 outcrop few large boulders (granite as well) surrounding the Echum

outcrop, 95m North of COP _15 0 r'J

KR_345 17 267591 5345702 diabase magnetic diabase outcrop 15m in diameter, iron & manganse

Copenace Klondike Gold

15-Aug-07 staining, 115m Northwest of COP _15 Echum

KR_346 17 267527 5345637 granite granite outcrop (cliff), very shear face; some iron

Copen ace Klondike Gold

15-Aug-07 staining, 2 m tall 10m long, 125m West of COP _15 Echum

KR_347 17 267586 5345311 diabase magnetic diabase outcrop 10m diameter, 55m West of

Copen ace Klondike Gold

15-Aug-07 COP_15 Echum

diabase outcrop, massive cliff, 5 m tall, 30m long, Klondike Gold

KR_348 17 267609 5345578 diabase magnetic some manganse and iron staining, 75m Southwest Copenace Echum

15-Aug-07 of COP _15

granite and diabase outcrop, mostly granite but

KR_349 17 267626 5345482 granite&diaba about 5m diameter patch of diabase, lots of

Copenace Klondike Gold

15-Aug-07 se manganese staining as well as some iron, 135 m Echum

south of COP _15

• • •

Page 33: Assessment Report Prospecting Sault Ste. Marie Mining

I

Location: COP 17 Name(s): Katy Richard & Jacqueline Jolliffe Date: May 22, 2007 Dahm): NAD 27 UTM Zone: 16 Township: Copenace Claim #: 4202733 Joint Venture: Klondike Gold Echum Comments:

• Target was a large outcrop of granitic gneiss~ only one, small. weakly magnetic band was found at the target-nothing else magnetic

• One outcrop of diabase/gabbro was found 145m northeast of the target • A few diabase boulders were found sitting atop granite outcrops • Follow-up recommended; not enough magnetic material was found to satisfy the

anomaly.

• S<l.mpks 55222 ~ 55223 tohn -for ass'J'

::z.t

Page 34: Assessment Report Prospecting Sault Ste. Marie Mining

" \ \

\.

CanMap®, DMTI

\ j

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------..-.... ..------\Al~,.,. lake

. '~\__________________ 1250

~----/ . --..~

j ' ~"-. . ~" j \ \ ~ KR07'· \

, JJ007 -. \ iii ,.' ~

}~ \ I ./ I ,, ~

I • , . - • .• ~ KR066

---~'." i./ JJ006. KR069 /' . 1:5522 31" ., \.. ,/

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,/ '- /e

• Waypoint or sample lo~,U6n i.1 May 22, 2007 .. Sample --

the DMTI Spatial logo are trademarks of DMTI Spatial Inc., Markham, Ontario. © Garmin Ltd. subsidiaries 1995·2004. ©2003 DMTI Spatial Inc.

/~ /

Page 35: Assessment Report Prospecting Sault Ste. Marie Mining

Waypointor Zone Nad27 Nad27 Rock or Sample Magnetic Acid Test Comments Twp Joint Venture date

Sample# NAD27 Easting Northing Type

altered waxy altered diabase or peridotite boulder with

Klondike Gold 55222 17 274673 5344141

peridotite magnetic positive coarse grain and read weathering. Powdery when Copenace

Echum 22-May-07

breaking. Subangular.

55223 17 274654 5344244 sheared

magnetic negative oxidized highly sheared, fine grained, outcrop of

Copenace Klondike Gold

22-May-07 sulphide gabbro? Chemically weathered appearance Echum

JJ_001 17 274900 5344238 granitic

non-magnetic negative gneiss has some diabase veins seen by Katy

Copen ace Klondike Gold

22-May-07 gneiss Richard at target COP _17 Echum

JJ_002 17 274970 5344083 gneissic

non-magnetic gneissic granite angular boulder with rusty

Copenace Klondike Gold

22-May-07 granite oxidization, large platy mica Echum

JJ_003 17 274917 5344050 diabase magnetic negative angular boulder of diabase next to gneissic granite

Copenace Klondike Gold

22-May-07 outcrop Echum

JJ_004 17 274769 5344052 diabase magnetic negative coarse grained diabase subcrop Copenace Klondike Gold

22-May-07 Echum

JJ_005 17 274754 5344059 quartz vein non-magnetic negative 50cm high, 1.5 m wide quartz veinlsubcrop with

Copenace Klondike Gold

22-May-07 large grained mica and iron staining Echum I'D

JJ_OO6 17 274835 5344255 gneiss non-magnetic negative outcrop of coarse grained gneiss Copenace Klondike Gold

22-May-07 (V)

Echum

JJ_007 17 274781 5344350 gabbro non-magnetic negative large grained gabbro outcrop with minor lineation,

Copenace Klondike Gold

22-May-07 50/50 black/white Echum

JJ_008 17 274669 5344544 sheared

non-magnetic outcrop of medium grained sheared gabbro Copenace Klondike Gold

22-May-07 gabbro Echum

KR_065 17 274931 5344224 felsic non-magnetic very felsic outcrop 40m SE of COP _17 Copenace Klondike Gold

22-May-07 Echum

KR_066 17 274983 5344262 granitic

non-magnetic negative large boulders and outcrop 90m E of Cop_17 and

Copenace Klondike Gold

22-May-07 gneiss one toaster sized hunk of diabase 5 m from outcrop Echum

KR_067 17 274988 5344355 gabbro very magnetic negative 20m long outcrop with MnO and Fe staining 145 m

Copenace Klondike Gold

22-May-07 NE ofCOP_17 Echum

KR_068 17 274945 5344353 granite non-magnetic large granite outcrop 10 m north of gabbro outcrop Copenace Klondike Gold

22-May-07 Echum

KR_069 17 274897 5344248 altered weakly at COP _17 found dark bands in gneiss that were

Copenace Klondike Gold

22-May-07 gabbro magnetic weakly magnetic, looks like altered gabbro Echum

KR_070 17 274922 5344328 granite large granite outcrop with small diabase boulders

Copenace Klondike Gold

22-May-07 and cobbles on top, 90m N of Cop_17 Echum

KR_071 17 274855 5344365 granite non-magnetic large granite boulders, 135m N of Cop_17 Copenace Klondike Gold

22-May-07 Echum

• • •

Page 36: Assessment Report Prospecting Sault Ste. Marie Mining

17 274598 5344565 gabbro magnetic

17 274523 5344618 diabase magnetic

green on inside, funny weathering pattern. 300m NWofCOP_17

diabase boulders and outcrop 85 m S of road, 534 m from COP_17

Copenace

Copenace

Klondike Gold Echum

Klondike Gold Echum

22-May-07

22-May-07

Page 37: Assessment Report Prospecting Sault Ste. Marie Mining

Location: M 18 Name(s): Graham Stone & Peter Smith Date: July 20,2006 Datum : NAD 27 UTM Zone: 17U Easting: 277113 Township: Marsh Claim # 4202738 Joint Venture: Kootenay Gold Copenace

Comments:

Northing: 5348365

• A NE trending mag high runs through the centre of this target. • There is not much rock exposure, but it appears that the high is caused by a

diabase dyke. • There are a couple of subtle mag features that could be dykes that also appear, and

may warrant further attention. • No samples taken

Recommendations: • A follow up of these subtle features is warranted. • Since the area is drift covered, a couple of shovel holes in strategic places may

oncover the source.

Page 38: Assessment Report Prospecting Sault Ste. Marie Mining

.~

.~

••••••• Traverse

• Way point or sample location • Sample

Target M_18 MarshTownship

July 20,2006

CanMap®, DMTI Spatial and the DMTI Spatlallogo are trademarks of DMTI Spatial loc., Markham, Ontario. C Garmin Ltd. or its subsidiaries 1995-2004. C2003 DMTI Spatial Inc. • •

Claim 4202738

SOm overzoom

~-----~---.--- .. _ .....

Page 39: Assessment Report Prospecting Sault Ste. Marie Mining

Waypointor Zone Nad27 Nad27 Rock or Sample Magnetic Acid Test Comments Twp Joint Venture date

Sample# NA027 Easting Northing Type

GS_110 17 277120 5348470 Diabase Bldr magnetic large bldr beside road Marsh Kootenay Gold

20-Jul-06 Copen ace

GS_111 17 277102 5348251 Gneiss spotty

ole magnetic along the mafic bands strk30 Marsh Kootenay Gold

20-Jul-06 magnetic Copenace

GS_112 17 277111 5348302 Felsic gneiss non-magnetic olc Marsh Kootenay Gold

20-Jul-06 Copenace

GS_113 17 277268 5348395 diabase magnetic ole Marsh Kootenay Gold

20-Jul-06 Copenace

GS_114 17 277132 5348511 diabase magnetic olc north side of road Marsh Kootenay Gold

20-Jul-06 Copenace

spotty Kootenay Gold rt GS_115 17 277023 5348392 granite

magnetic olc mafic bands are magnetic Marsh

Copenace 20-Jul-06 {'1

GS_116 17 277019 5348372 diabase magnetic large bldrs@3sq m subcrop? Marsh Kootenay Gold

20-Jul-06 Copenace

GS_117 17 277235 5348560 kimberlitic

magnetic +'ve acid well rounded small bldr in till beside road Marsh Kootenay Gold

20-Jul-06 float Copenace

• • •

Page 40: Assessment Report Prospecting Sault Ste. Marie Mining

Rock Sample Results

A total of 3 samples were run for analysis by True North Mineral Laboratories Inc, located in Timmins ON. Samples are presented in: Appendix 1: - True North Mineral Laboratories Inc. -Actlabs - for the detailed analysis of each sample and the attached Certificate of Analysis

For the current work report the rock sample sites are plotted on Traverse waypoints and samples locations map accompanying each target area overview.

Recommendations

Comprehensive interpretation and presentation of all the geochemical analysis data; combined with the interpretation of VTEM airborne survey flown in winter of 2007-2008.

The results and interpretation of the above noted compilations will dictate the approach to further field work.

Qualifying Statement

I, Claudia Wilck, residing at RR #1, Parry Sound, ON, P2A 2W7 state the following with respects to this report:

I wrote this report and produced the accompanying tables and maps based on information provided by Chalice Diamond Corp. of 771 - 675 West Hastings Street Vancouver, British Columbia V6B 1 N2.

That I hold no beneficial interest in these properties held by Chalice Diamond Corp. as stated in this report.

Respectfully Submitted

Claudia Wilck Geological Technician

in Parry Sound, ON 14, July, 2008

Page 41: Assessment Report Prospecting Sault Ste. Marie Mining

References

First Vertical Derivative of Magnetic Field with Keating Coefficients Map Dumont R., Coyle M., Potvin J., Geological Survey of Canada, 2001 Ontario: Manitowik Lake, NTS 42C/1 Open file 4076/0GS Map 81 719

Ontario airborne geophysical surveys, magnetic data, Wawa area; Ontario Geological Survey, Geophysical Data Set 1009 - Revised 2003

Bennett, Gerald, 1978: Geology of the Crooked Lake Area, District of Sudbury; Ontario Geological Survey Report 172, 46p. Accompanied by Maps 2380 and 2381, scale 1inch to ~ mile

Page 42: Assessment Report Prospecting Sault Ste. Marie Mining

Appendix 1

True North Mineral Laboratories Inc. I Actlabs

Geochemical Analysis Results

Page 43: Assessment Report Prospecting Sault Ste. Marie Mining

1

Quality Analysis ...

Expert Lab

127, boul. Industriel Rouyn-Noranda Qc J9X 6P2 Canada

AnN: Micheline Croteau

Innovative Technologies

Date Submitted: 25-Jun-07

Invoice No.: A07-2459

Invoice Date: 16-Jul-07

Your Reference: Dossier 18627

CERTIFICATE OF ANALYSIS

9 Pulp samples were submitted for analysis.

The following analytical package was requested: Code 1 E1 Aqua Regia ICP(AQUAGEO)

REPORT A07-2459

This report may be reproduced without our consent. If only selected portions of the report are reproduced, permission must be obtained. If no instructions were given at time of sample submittal regarding excess material, it will be discarded within 90 days of this report. Our liebility is limited solely to the analytical cost of these analyses. Test results are representative only of material submitted for analysis.

Notes: Values which exceed the upper limit should be assayed for accurate numbers.

ACTIVATION LABORATORIES LTD.

CERTIFIED BY :

Eric Hoffman, Ph.D.

President/General Manager

1336 Sandhill Drive. Ancaster, Onlario Canada L9G 4V5 TELEPHONE +1.905.648.9611 or +1.888.228.5227 FAX +1.905.648.9613

E-MAIL [email protected] ACTLABS GROUP WEBSITE http://www.aCOabsint.com

Page 44: Assessment Report Prospecting Sault Ste. Marie Mining

Analyle Symbol

I,Unlt Symbol I :Detaction Limit

l~aly.1s Me!~~_

55222

55223

55301

55351

55352

55353

55354

78299

55302

Ag

ppm

0.2

AR-ICP

<;0.2

<0.2

<0.2

<0.2

<0.2

<0.2

<0.2

<0.2

<02

Cd

ppm

0.5

AR·ICP

<0.5

< 0.5

< 0.5

< 0.5

<0.5

< 0.5

<0.5

< 0.5

<: 0.5

C.

ppm

AR-ICP

76

269

15

172

65

48

43

54

46

No

ppm

2

AR-ICP

1120

615

457

261

513

26,

262

530

410

Mo

ppm

AR-ICP

<2

<2

<2

<, <2

<,

NI

ppm

1

AR-ICP

1300

35

26

30

50

18

21

1130

18

Activation Laboratories Ltd. Pb

ppm

AR-ICP

48

<2

<2

<2

<2

Zo

ppm

AR-ICP

64

194

54

43

66

28

67

28

AI

%

0.01

AR-ICP

0.18

0.62

0.31

1.12

0.62

0.21

0.32

0.20

0.39

i'i ppm

10

AR-ICP

< 10

<10

< 10

< 10

< 10

< 10

< 10

< 10

< 10

B.

ppm

AR-CP

33

68

266

70

41

34

272

24

10

ppm

AR-ICP

< 1

< 1

< 1

< 1

< 1

< 1

< 1

< 1

<1

Page 2 of5

Report: BI

ppm

10

AR-ICP

<10

< 10

< 10

< 10

< 10

< 10

< 10

< 10

< 10

Ca

%

0.Q1

AR-ICP

0.49

1.09

1.80

1.80

1.26

0.41

0.65

0.27

1.09

A07·2459 Co Cr Fe

ppm ppm %

0.01

AR-JCP AR-ICP AR-tCP

111

33

10

21

23

13

89

24

1240

31

51

32

85

114

57

1870

82

7.95

5.09

1.48

3.23

2.81

1.14

1.74

4.11

2.78

%

0.01

AR-ICP

< 0,01

0.12

0.54

0.16

0.11

0.07

0.44

< am 0.04

Mg

%

0.01

AR-ICP

0.97

0.54

0.46

0.33

0.62

0.27

0.47

1.01

0.46

Na

%

0.01

AR-ICP

0.02

0.12

0.08

0.57

0.04

0.03

0.08

0,02

0.21

Sb

% ppm

0.001 10

AR-lCP AR-ICP

0.007

0.077

0.050

0.038

0.056

0.024

0.051

0.004

0.022

< 10

< 10

<10

< 10

< 10

< 10

< 10

< 10

< 10

SC-~Sl

ppm ppmi

1 101

AR-ICP

12

AR-ICP! ___ J

< 10

14

< 10

< 10

< 10

< 10

< 10

< 10

< 10

Page 45: Assessment Report Prospecting Sault Ste. Marie Mining

Activation Laboratories Ltd. Report: A07·2459 Sr To V W Y Zr

--- ----~.-~- ----------- --, !Analyte Symbol I

,UnIt Symbol ppm % ppm pp-n ppm ppm %

lOetection Limit 0_01 10 0.001

!An~~Is~!h"d __ AR-ICP "R-Ie? AR-ICP AR-Ie? AR~lCP AR-IC? AR-Ie? -- - -. -----~--- -- ------.--~-- ----------

55222 0-01 36 < 10 3 0_252

55223 61 031 244 < 10 21 20 0048

55301 1,. 0_09 39 < 10 0_143

55351 67 0_12 169 < 10 0_108

55352 40 0_15 41! < 10 0-015

55353 ,. 0_04 13 <10 0_020

55354 55 0_09 49 < 10 0.221

78299 < 0.01 26 < 10 0-028

55302 20 0.15 113 < 10 0-051

Page 30f5

• • •

Page 46: Assessment Report Prospecting Sault Ste. Marie Mining

[Quality Control i iAnalyle Symbol ;Unlt Symbol

IOatactlon LImit

~a!ys~~~~_ GXR·1 Meal

GXR-1 c.rt GXR4Meas

GXR04Cert

GXR·2 Mess

GXR·2Cart

GXR..sMtta5 GXR--6Cart

CON·FCM-1 Meas

CON-FCM·1 Cart

Method Blank Method Blank

Ag Cd

ppm ppm

0.2 0.5

AR·ICP AR·ICP

24.5

31.0

3.4

4.00

17.9-

17.0

0.3

1.30

56.5

86.3

<0.2

44

3.30

0.9

0.860

4.2

4.10

1.5

1.00

< 0,5

C" Mn

ppm ppm

AR·ICP .'.R·ICP

1030

1110

8430

8520

18

16.0

62

66.0

8080

9400

< 1

666

852

132

155

942

1010

932

1010

<2

Mo

ppm

2

AR·\CP

13

18.0

339

310

<2

2.10

<2

2.40

<2

NI

ppm

1

AR-1C?

31

41.0

31

42.0

11

21.0

23

27.0

< 1

Activation Laboratories ltd.

Pb

ppm

AR·IC?

Zn

ppm

580 539

130 760

43 64

52.0 73.0

710 471

690 530

88 102

101 118

3890 > 10000

5100 19300

<2 < 1

AI As Ba

% ppm Wm

0,01 10 1

M·lep AR-ICP AR-ICP

0.15

3.52

0.75

7.20

0.94

16.5

1.89

17.7

< 0.01

302

427

95

98.0

11

25.0

208

330

< 10

805

750

80

1840

1310

2240

1110

1300

Be

ppm

AR·ICP

< 1

1.22

1.90

1

1.70

< 1

1.40

< 1

Page 40f5

Report:

Bi

ppm

10

AR-ICP

1250

1380

14

19.0

< 10

0.690

< 10

0.290

< 10

Ca

%

0.01

AR·ICP

0.52

0.980

0.61

1.01

0.52

0.930

0.13

0.180

< 0.01

A07-2459

Co

ppm

AR-tCP

10

8.20 16

14.6

10

8.60

15

13.8

< 1

C,

ppm

2

AR·ICP

12.0

55

84.0

24

36.0

76

96,0

<2

F. K Me Na

% % % % %

0.01

.'.~·ICP

0.01 0.01 0.01 0.001

AR·ICP AR·ICP AR-ICP AR·ICP

16.4 0.03 0.'1 007 0030

23.6 0.0500 0.217 0.0520 0.0650

2.45 1.37 0.81 0.13 0.107

3.09 4.01 1.66 0.584 0.120

1.46 0.52 0.30 0.17 0.046

1.86 1.37 0.850 0.556 0.105

4.21 0.86 0.27 0.09 0.026

5.58 1.87 0.809 0.104 0.0350

<: 0.01 < 0.01 < 0.01 0.01 < 0.001

57

122

< 10

4.80

29

48.0

< 10

3.60

< 10

Sc

ppm

AR-ICP

1.58

8

7.70

5 6.88

24

27.6

< 1

snl ppm)

10i

AR.'CP!

22

54.0

< 10

5.60

< 10

1.70

< 10

1.70

< 10

Page 47: Assessment Report Prospecting Sault Ste. Marie Mining

Activation Laboratories Ltd. Report: A07·2459 ------- ~---------<----- ---- - --

fQuality Control I

IAnalyle Symbol s, To V W Y Z,

iUnlt Symbol ppm % ppm ppm ppm ppm %

IDelectlon Limit 1 0.01 10 1 0.()()1

~·')'·ia ~"-0<1 AR-ICP AR-ICP AR-ICP AR-ICP AR~ICP AR-ICP AR-ICP ---._--_. -- ---- --------

GXR-1 Mess 185 61 113 24 11 0.182 GXR-1 Cart 275 80.0 184 32.0 38.0 0.251 GXR-4Meas 60 80 10 13 10 1.798

GXR-4 Cert 221 81.0 30.8 14.0 186 1.77 GXR-2 Mess 100 44 < 10 11 11 0.034

GXR-2 Cart 160 52.0 1.90 11.0 26. 0.0313

GXR..s Mess 3. 151 < 10 14 0.015

GXR-6 Cart 35.0 186 1.90 14,0 110 0.0160

CON-FCM-l Meas

CDN-FCM-1 Cert

Method Blank Method < 1 < 0.01 < 1 < 10 < 1 < 1 < 0.001 Blank

Page 5 of5

• • •

Page 48: Assessment Report Prospecting Sault Ste. Marie Mining

,L.,_

i

/,'

b6g,L§k!3 .f ~~

FOl:( Islands '

.. '/, t;.,;

Kabinakag{,mi Lake '~ l' '.- ) .

! , I : r ' : ,';:" J !"1issioaibi Lake ,

G,eat la Qoche Island •

, Great Duck Islands Lake Ma~itou '

South Bay

Fitzwiltiam ,I sl~nds

Mj. Z ~ KEY LOCATION MAP of' CHAL.ICE DIAMOND CORP.-Cho.~l>i~onJ.. PROTE.CT AREA.

I Garmin ltd, or Its s. ees 1995-2004 •

Iroquois 't7.alls

Page 49: Assessment Report Prospecting Sault Ste. Marie Mining

1243338

1243337