52G05NW2001 2.18390 ILSLEY 010

Diamond Drill Report

on the

Raleigh Lake Project

for

Sterlingmarc Mining Ltd.

Ilsley Township and Hodgson Township

Thunder Bay Mining Division, Ontario

N.T.S 52 C5

2 .18390

April 22,1998 Todd KeastRECEIVED

APR 2 7 1988

GEOSCIENCE ASSESSMENT

52G05NW2001 2.18390 ILSLEY 0 10C

TABLE OF CONTENTS

Page INTRODUCTION........................................................................... lLOCATION AND ACCESS...............................................................lPROPERTY...................................................................................lPREVIOUS EXPLORATION..............................................................2REGIONAL GEOLOGY....................................................................2PROPERTY GEOLOGY....................................................................21998 DRILLING PROGRAM................................................................2CONCLUSIONS AND RECOMMENDATIONS.......................................5CERTIFICATE OF QUALIFICATIONS.................................................6

FIGURES

FIGURE l DDH Location......................................................3

TABLES

TABLE l Claim List..........................................................lTABLE2 DDH Summary....................................................4

APPENDICES

APPENDIX I Diamond Drill Logs and Sections

INTRODUCTION

During April 1998, Sterlingmarc Mining Ltd. completed a 326 metre, 4-hole diamond

drill program on the Raleigh Lake Project. The purpose of the drill program was to test a

number of gold showings with coincident IP geophysical anomalies identified by a

previous operator of the property.

A wide section of quartz sericite schist with S-5% disseminated pyrite was intersected in

DDH RL-98-2. The strong sericite alteration combined with the high sulphide content

suggests a good environment for the development of gold mineralization. Assay results

were pending at the time of completing this report.

LOCATION AND ACCESS

The Raleigh Lake Property is located approximately 29 kilometers west of Ignace,

Ontario. The property is easily accessed as Highway 17 passes through the property. A

number of logging trails access the west portions of the property. The property is located

within NTS 52 C5.

PROPERTY

The Raleigh Lake Project is located in the Thunder Bay Mining Division, within Ilsley

Township (G-1315) and Hodgson Township (G-1313). The property consists of 7 claims

(86 units), covering 1,376 hectares (Table 1 ). The claims are contiguous and recorded in

good standing in the name of S. Stares of Thunder Bay, Ontario.

Table l Claim List

Claim #12249181224919122491711833101208501120850212085037 claims

Units15166416161386 units

Claim Size240 hectares256 hectares96 hectares64 hectares256 hectares256 hectares208 hectares1,376 ha

TownshipHodgson TownshipHodgson TownshipIlsley TownshipIlsley TownshipIlsley TownshipIlsley TownshipIlsley Township

PREVIOUS EXPLORATION

Very little exploration work has been completed on the property. In 1995 Hemlo Gold

completed linecutting, magnetometer, Induced Polarization, prospecting, geological

mapping, soil sampling, and mechanical stripping and channel sampling. A strong zone

of quartz sericite schist was identified which returned a number of anomalous gold

assays. Hemlo did not report any follow up work on the property.

REGIONAL GEOLOGY

The Raleigh Lake Project is situated in the eastern end of the Dryden-Wabigoon

greenstone belt. The belt is an easterly trending assemblage of mafic to ultramafic

volcanic and intrusive rocks, interbedded with clastic and chemical metasediments.

The geology of the region is poorly understood due to the lack of government mapping

programs and lack of exploration work.

PROPERTY GEOLOGY

The Raleigh Lake Project is underlain by quartz-feldspar-biotite sediments (greywacke),

massive amphibolite intrusions/flows, and a quartz-sericite schist. The quartz-sericite

schist is located approximately in the center of the property. The schist is 45 metres wide

and has been traced on surface intermittently for 4 kilometres. The zone contains 2-3 07o

pyrite with traces of chalcopyrite. The zone strikes ISO0 and dips south 650 .

1998 DRILLING PROGRAM

Between April 15, 1998 and April 21, 1998, Sterlingmarc Mining Ltd. completed a 326

metre, four-hole diamond drill program. The work was supervised by T.Keast and D.

Healey of Sterlingmarc. The drilling was completed by Norex Drilling of Porcupine

Ontario. A total of 97 samples were taken for gold analysis.

The drill holes are summarized on Table 2 , with the locations plotted on Figure 1.

Details of individual drill holes are included in the drill logs enclosed in Appendix I. A

brief summary of each hole is enclosed below.

Table 2

Raleigh Lake Project 1998 Diamond Drill Summary

DDH#RL-98-1RL-98-2RL-98-3RL-98-4

Line E/WL 96+00 EL 101+10 EL 106+00 EL 82+48 E

N/S1 00+00 N99+60 N1 02+00 N1 00+30 N

Dip/Az-45/Grid N-45/Grid N-45/Grid N-45/Grid N

E.O.H m80927777

326

StartApr- 17Apr-18Apr-19Apr-20

EndApr-18Apr-19Apr- 19Apr-20

Comments3m wide quartz sericite schist, S-5% py.25 m wide section qtz ser schist 7-1007o py.2.5 m wide section qtz ser schist with 7-1007o pySheared amphibolite with 1-307o py, tr-1% po.

DDH RL-98-1 was drilled to test a trenched shear zone with anomalous gold assays, and a

coincident IP anomaly. The hole intersected fine-grained bedded mafic volcanics,

sheared greywacke, and narrow quartz sericite schist. The schist contained S-5%

disseminated pyrite.

DDH RL-98-2 was drilled to test a trenched shear zone with anomalous gold assays, and a

coincident IP anomaly. The hole intersected greywackes, a 34.4m wide quartz-sericite

schist, and weakly sheared greywacke. The quartz sericite schist contains S-7%

disseminated py, locally V-10% py.

DDH RL-98-3 was drilled to test an IP anomaly. The hole intersected sheared greywacke,

and a narrow 2.6m wide quartz sericite schist. The quartz sericite schist contains 3-507o

disseminated py.

DDH RL-98-4 was drilled to test a trenched shear zone with anomalous gold assays. The

hole intersected massive amphibolite, weakly sheared amphibolite, and strongly sheared

amphibolite. l-3 07o disseminated py and po was noted throughout the sheared sections.

CONCLUSSION AND RECOMMENDATIONS

Diamond drilling on the Raleigh Lake Project has intersected a strong shear zone exposed

on surface. The intensity of the alteration, high sulphide content, and strength of the

shear structure indicates good potential for discovery of gold mineraliztion.

Further work on the project will be dependant upon the assay results from the drill

program, and upon a summer prospecting and stripping program planned to further define

the structure.

CERTIFICATE OF QUALIFICATIONS

I, Todd Keast, of 1204 Grace Ave., Porcupine, Ontario, do hereby certify that:

1. I am the author of this report.

2. I am a graduate of the University of Manitoba, Winnipeg, Manitoba, having received an Honors Bachelor of Science (Geology), in 1986.

3. I have practiced in the field of mineral exploration since 1987, for a number of exploration companies throughout Manitoba, Ontario, and Quebec.

4. I am a Fellow of the Geological Association of Canada.

5. I am a member of the Canadian Institute of Mining and Metallurgy.

6. I am a Professional Geoscientist registered with the Association of Professional Engineers and Geoscientists of the Province of British Columbia.

Dated at Ignace, Ontario this 22nd day of April, 1998.

Appendix I

Diamond Drill Logs and Sections

STERLINGMARC MINING LTD. Page : l of 4

Northing: Easting: Elevation:

Collar Azi.: Collar Dip:

Hole Length:

Property: Drilled by: Purpose:

9600100001000

40 -45

80

DRILL HOLE RECORD

*** Dip Tests*** Depth Azi. Dip

80 40 -44

Raleigh Lake ProjectNorex DrillingTest gold showing with coincident IP Anomaly.

Drill Hole:

Easting: Northing: Claim: Core Size: Date Started: Completed: Logged by:

RL-98-1

L 96+00 E100+00 N1208502BQApr 17,1998Apr 18,1998Todd Keast

4-

From (m)

To (m)

Geology Smpl From (m)

To (m)

Lngt (m)

AU PPB

CU PPM

ZN PPM

WR

.00

2.50

2.50

19.82

CASING

FINE GRAINED MAFIC VOLCANIC

Dark green, fine grained, weakly foliated 70 deg to C.A. Fine grained mafic sediment. Moderately banded with scattered 1m wide biotite rich sections, possible greywacke interbeds. Fine grained chloritic matrix. H 3-4 MS 0.55.

6.42 8.11 Feldpar porphyry. Sharp upper contact 75 deg to C.A. Tr-1% py.

12.60 13.90 7-101- qtz veins,

993099319932

6.427.50

12.60

7.508.11

13.90

1.08.61

1.30

RL-98-1 (continued) Page : 2 of 4

From (m)

19.82

To (m)

49.13

Geology

lQ-15% biotite stringers, S-5% poX-3% py. Tr-1% garnet.

Increasing greywacke interbedsdownhole .

SHEARED GREYWACKE

Light grey-brown colour, mediumgrained, sharp upper contact 75deg to C. A. Strongly foliated 75deg to C. A. Well banded (Bedded)with biotite rich bands up to0 . 5cm wide throughout . Grittygranular texture. Quartz feldsparbiotite content with tr-1% dispy, tr-1% po. Rare white qtzvein. S-5% greenamphibole/chlorite stringers upto lcm wide.Hardness H 4-5 MS 0.21 locally upto 30.0 .

28.40 28.64 Amphibole richsection S-5% po .

31.40 35.00 S-7% py, lL-3% po,finegrained disseminated alongfoliation planes. Strong bandingof greywack and mafic amphibolerich unit, weak sericitealteration.

34.95 36.60 Light grey medium

Smpl

9933993499359936993799389939

From (m)

31.4032.5033.5034.5039.3040.5048.00

To (m)

32.5033 .5034.5035.5040.5041.7049.13

Lngt (m)

1.101.001.001.001.201.201.13

AU PPB

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ZN PPM

WR

RL-98-1 (continued) Page: 3 of 4

From (m)

49.13

51.90

To (m)

51.90

80.00

Geology

grained felspar porphyry.

39.30 41.70 S-5% py, 1-3!^ po inmoderately sheared greywacke .

QUARTZ SERICITE SCHIST

Light grey-white fine grainedstrongly foliated. Sharp uppercontact 75 deg to C. A. Weakquartz sericite schist with S-5%disseminated py. Pyrite finegrained, eveny distributed alongfoliation planes. S-5% patchychlorite. Rare white qtz veins upto 1 cm wide parallel tofoliation. H 3-4 MS 0.04.

SHEARED GREYWACKE

Light grey-brown colour, mediumgrained, sharp upper contact 75deg to C. A. Strongly foliated 75deg to C. A. Well banded (Bedded)with biotite rich bands up to0.5cm wide throughout. Grittygranular texture. Quartz feldsparbiotite content with tr-1% dispy, tr-1% po. Rare white qtzvein. S-5% greenamphibole/chlorite stringers upto lcm wide.Hardness H 4-5 MS 0.21 locally up

Smpl

994099419942

99439944994599469947

From (m)

49.1350.0051.00

51.9054.0062.3576.3077.50

To (m)

50.0051.0051.90

53 .0055.5063.0077.5078.13

Lngt (m)

.871.00.90

1.101.50.65

1.20.63

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WR

RL-98-1 (continued) Page: 4 of 4

From (m)

To (m)

Geology

to 30.0.

54.14 55.00 Qts sericite schistS-5% PY, X-2% po, X-3% qtz veins.

Increasing garnet contentdownhole up to n.%, locally S-5%.

62.35 62.80 lQ-15% po S-5% py.

70.00 70.05 lQ-15% po instringers .

76.30 78.13 lQ-15% white qtzveins, S-5% py X-3% po .

E. O.K.

Casing pulled.

Core Store at Stares Contracting,Thunder Bay.

Smpl From (m)

To (m)

Lngt (m)

AU PPB

CU PPM

ZN PPM

WR

CA

C-

f*

J^

X. e

i*

* r

8 .i

rO 3

r o

STERLINGMARC MINING LTD. Page: l of 4

Northing:Easting:Elevation:

Collar Azi.: Collar Dip:

Hole Length:

Property: Drilled by: Purpose:

1010099601000

40 -45

92

DRILL HOLE RECORD

*** Dip Tests*** Depth Azi. Dip

92 40 -44

Raleigh Lake ProjectNorex DrillingTest Gold showing with coincident IP Anomaly.

Drill Hole:

Easting: Northing: Claim: Core Size: Date Started: Completed: Logged by:

RL-98-2

L 101+10 E99+60 N1208503BQApr 18,1998Apr 19,1998Todd Keast

From (m)

To (m)

Geology Smpl From (m)

To (m)

Lngt (m)

AU PPB

CU PPM

ZN PPM

WR

.00

4.50

4.50

27.50

CASING

GREYWACKE

Light grey-brown color with purple tint. Fine grained strongly foliated 75 deg to the C.A. Well banded (Bedded) greywacke.Quartz-feldspar-biotite content with tr-1% fine dis py. Rare white qtz vein. S-5% green amphibole/chlorite stringers up to lcm wide.Hardness H 4-5 MS 0.30, rare magnetite bands 3mm wide MS 20.0

4.50 7.30 Broken blocky core.

9851985298539854

17.5018.5019.5020.50

18.5019.5020.5021.50

1.001.001.001.00

' RL-98-2 (continued) Page: 2 of 4

From (m)

27.50

To (m)

61.90

Geology

17.70 S-7% White qtz veins 80 degto C. A. Tr-3% fine py. Tr brownfine mineral possible staurolite.

21.50 23.60 Broken blocky corewith IB-20% narrow amphibolitedykes, 10 -15cm wide.

At 24 metres slight increase infoliation intensity, moderateincrease in shearing, moderateincrease in sericite content,increase in py 2-3%.

QUARTZ SERICITE SCHIST

Light grey-white in colour.Gradational upper contact, strongschistosity 75 deg to C. A. Strongalteration consisting of quartzsericite schist with B-7%disseminated py, locally 7-10%.Pyrite is fine grained and evenlydistributed along foliationplanes. B-5% patchy chlorite.Rare creamy white qtz veins up to1 cm wide parallel to foliation.H 3-4 MS 0.04.

27.50 32.00 Strongly shearedgreywacke, moderate biotitecontent S-7% py.

Smpl

985598569857985898599860986198629863986498659866986798689869987098719872

From (m)

29.0030.0031.0032.0033.0034.0035.0036.0037.0038.0039.0040.0041.0042.0043 .0044.0045.0046. 00

To (m)

30.0031.0032.0033 .0034 .0035.0036.0037.0038.0039.0040.0041.0042 .0043 .0044 .0045.0046 .0047.00

Lngt (m)

1.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.001.00

AU PPB

cuPPM

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WR

} RL-98-2 (continued) Page : 3 of 4

From (m)

61.90

To (m)

84.10

Geology

Below 32 metres the strong alteration obliterates thegreywacke banding. High py content ID-15% in disseminationsand weak stringers parallel to foliation. Strong sericite, low biotite content. Grey siliceous bands .

36.00 37.00 Local section withlQ-15% brown-purple wispy biotite bands up to 1 cm. Wide.

At 41.60 biotite contentincreases degree of alteration weakly decreases .

50.28 51.10 Sheared qtz feldspar porphyry dyke .

52.38 53.86 Section of strong qtz secite schist with V-10% whiteqtz veins, l-3% py in veins. Veins 75 deg to C. A.

At 56m biotite content increasesbanding increases, scattered sections of qtz sericite schist, py S-7%.

SHEARED GREYWACKE

Light grey-brown, moderately sheared, gradational upper

Smpl

9873 98749875 98769877 9878 9879 9880988198829883 9884 988598869887

98889889 9890

From (m)

47.00 48.0049.00 50.0051.00 52.00 53.00 54.0055.0056.0057.00 58.00 59.0060.0061.00

61.9063.00 64.00

To (m)

48.00 49.0050.00 51.0052.00 53 .00 54.00 55.0056.0057.0058.00 59.00 60.0061.0061.90

63.0064.00 65.00

Lngt (m)

1.00 1.001.00 1.001.00 1.00 1.00 1.001.001.001.00 1.00 1.001.00.90

1.101.00 1.00

AU PPB

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RL-98-2 (continued) Page: 4 of 4

From (m)

84.10

To (m)

92.00

Geology

contact. Brown-purple colour dueto increasing biotite contentdownhole. S-7% fine py alongfoliation planes, moderatesilicification, weak-moderatesericite. Foliation 75 deg toC. A. Scattered qtz-ser rich bandsup to 15 cm wide.H 4 MS 0.15 .

72.00 77.00 X-3% white qtz veinstr py, tr garnet.

GREYWACKE

Dark brown with purple tint. Finegrained weakly foliated 75 deg toC. A. Well banded (Bedded)greywacke .Quartz-f eldspar-biotite contentwith tr-1% dis py. Rare white qtzvein. S-5% greenamphibole/chlorite bands up tolcm wide. Tr-1% 4mm garnet purpleHardness H 4-5 MS 0.30 with raremagnetite stringers MS 20.0.

E. O.K.

Casing pulled.

Core Store at Stares Contracting,Thunder Bay.

Smpl

989198929893989498959896

From (m)

65.0072.0073.0074.0075.0076.00

To (m)

66.0073.0074.0075.0076.0077.00

Lngt (m)

1.001.001.001.001.001.00

AU PPB

CU PPM

ZN PPM

WR

. V\ \\\ v

Northing:Easting:Elevation:

Collar Azi.: Collar Dip:

Hole Length:

Property: Drilled by: Purpose:

10200106001000

40 -45

77

Raleigh Lake Project Norex Drilling Test IP Anomaly.

STERLINGMARC MINING LTD.

DRILL HOLE RECORD

*** Dip Tests*** Depth Azi. Dip

Page: l of 4

Drill Hole: RL-98-3

77 40 -43

Easting: Northing: Claim: Core Size: Date Started: Completed: Logged by:

L 106+00 E102+00 N1208503BQApr 19,1998Apr 19,1998Todd Keast

From (m)

To (m)

Geology Smpl From (m)

To (m)

Lngt (m)

AU PPB

CU PPM

ZN PPM

WR

.00

10.83

10.83

44.00

CASING

SHEARED GREYWACKE

Light grey-brown colour with purple tint. Fine grained strongly foliated 75 deg to C.A. Well banded (Bedded) with biotite rich bands up to 3cm wide throughout Quartz feldspar biotite content with tr-1% dis py. Rare white qtz vein. S-5% green amphibole/chlorite stringers up to lcm wide. Hardness H 4-5 MS 0.21.

13.09 13.65 Feldspar porphyry dyke, moderately foliated

989798989899

14.0015.0016.00

15.0016.0017.00

1.001.001.00

RL-98-3 (continued) Page: 2 of 4

From (m)

44.00

To (m)

46.60

Geology

parallel to foliation.

22.35 25.54 Feldpar porphyrydyke, massive. Sharp uppercontact 70 deg to C. A.

30.00 30.27 Feldspar porphry dyke.

Rare scattered dark green wideamphibole rich bands .

QUARTZ SERICITE SCHIST

70% Light grey-white colouredbands, 30ir green/brown bands.Gradational upper contact, strongschistosity 75 deg to C. A. Weakquartz sericite schist with S-5%disseminated py. Pyrite finegrained, eveny distributed alongfoliation planes. S-5% patchychlorite. Rare white qtz veins upto 1 cm wide parallel tofoliation. X-3% 1mm fractureswith weak alteration along thefractures .H 3-4 MS 0.04.

44.20 44.31 eO-65% pyrite in finegrained semi -massive sulphidehorizon, non conductive.

46.40 46.50 35-40!;? fine pyrite insingle wide sulphide band, non

Smpl

990099019902

From (m)

44 .0045.0046.00

To (m)

45.0046.0046.60

Lngt (m)

1.001.00.60

AU PPB

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ZN PPM

WR

RL-98-3 (continued) Page: 3 of 4

From (m)

46.60

To (m)

77. 00

Geology

conductive .

SHEARED GREYWACKE

Light grey-brown colour withpurple tint. Fine grainedstrongly foliated 75 deg to C. A.Well banded (Bedded) with biotiterich bands up to 3cm widethroughout. Quartz feldsparbiotite composition with tr-1%dis py. Rare white qtz vein. S-5%green amphibole/chloritestringers up to lcm wide .Hardness H 4-5 MS 0.21.

50.80 51.70 Weak qtz-seralteration with S-5% fine py.

51.70 52.80 Dark green, coarsegrained amphibolite dyke, 40 degto C. A.

60.08 60.50 Dark green, coarsegrained amphibolite dyke.

63.36 64.00 5 0* white qtz veins75 deg to C. A.

64.32 65.28 Dark green coarsegrained amphibolite dyke.

66.00 67.55 V-10% epidotealteration along fractures, S-5%

Smpl

9903990499059906990799089909

From (m)

46.6047.5050.8051.7063.0064.0065.00

To (m)

47.5048.5051.7053 .0064.0065.0066.00

Lngt (m)

.901. 00.90

1.301.001.001.00

AU PPB

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WR

RL-98-3 (continued) Page: 4 of 4

From (m)

To (m)

Geology

qtz veins, IL-3% py.

E. O.K.

Casing pulled.

Core Store at Stares Contracting,Thunder Bay.

Smpl From (m)

To (m)

Lngt (m)

AU PPB

CU PPM

ZN PPM

WR

STERLINGMARC MINING LTD. Page : l of 4

Northing: Easting: Elevation:

Collar Azi.: Collar Dip:

Hole Length:

Property: Drilled by: Purpose:

82480 * * * * *1000

40 -45

77

DRILL HOLE RECORD

*** Dip Tests*** Depth Azi. Dip

77 40 -44

Raleigh Lake ProjectNorex DrillingTest gold showing with coincident IP Anomaly.

Drill Hole:

Easting: Northing: Claim: Core Size: Date Started: Completed: Logged by:

RL-98-4

L 82+48 E100+30 N1208501BQApr 20,1998Apr 20,1998Todd Keast

From (m)

To (m)

Geology Smpl From (m)

To (m)

Lngt (m)

AU PPB

CU PPM

ZN PPM

WR

.00

1.15

1.15

8.40

8.40 15.85

CASING

AMPHIBOLITE

Dark green, coarse grained, massive crystalline texture. Large amphibole clots up to lcm in diameter. White qtz-feldspar matrix with tr-1% quartz in veins and irregular patches. Hardness H 3-4 MS 0.45.

WEAKLY SHEARED AMPHIBOLITE

Dark green, fine grained, weakly sheared amphibolite. Local narrow massive sections up to 25cm in

9810 10.00 11.00 1.00

RL-98-4 (continued) Page: 2 of 4

From (m)

15.85

26.20

To (m)

26.20

47.00

Geology

length. Moderate foliation 75 degto C. A. B-5% biotite instringers. Tr-1% quartz in veinsand irregular patches.Hardness H 3-4 MS 0.45.

AMPHIBOLITE

Dark green, coarse grained,massive crystalline texture.Large amphibole clots up to 1.25cm in diameter. Whiteqtz-feldspar matrix with tr-1%quartz in veins and irregularpatches .Hardness H 3-4 MS 0.45.

18.50 19.30 Weakly shearedsection, S-5% biotite in browncorroded stringers.

STRONGLY SHEARED AMPHIBOLITE

Dark grey-brown, fine grained,strongly sheared amphibolite.Local narrow massive sections upto 10cm in length. Strongfoliation 75 deg to C. A.Gradational upper contact. ID-15%biotite in stringers andirregular bands 75 deg to C. A.1-2!?, white quartz veins. T^-3%fine disseminated py, tr-1% po,

Smpl

99119912991399149915991699179918991999209921

From (m)

27.0028.0029.0029.8030.8031.8232.5033 .5034 .2540.5041.50

To (m)

28.0029.0029.8030.8031.8232.5033.5034.2535.0041.5042.50

Lngt (m)

1.001.00.80

1.001.02.68

1.00.75.75

1.001.00

AU PPB

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RL-98-4 (continued) Page: 3 of 4

From (m)

47.00

To (m)

72.70

Geology

generally within the biotite stringers . Hardness H 3-4 MS variable 0.45to 6.5.

29.80 31.82 Highly sheared section 7-10% white qtz veins, S-5% pyrrhotite, X-3% pyrite.

33.00 34.25 Highly sheared section S-7% white qtz veins IL-3% po, S-5% py.

36.00 36.80 Strongly banded section lcm wide chlorite richbands .

40.80 41.00 ID-15% qtz veins ID-15% biotite, S-5% py tr po.

43.10 44.26 S-5% qtz veins, ID-15% biotite, 1-3:^ py tr po .

46.10 46.40 S-5% qtz veins, S-7% biotite, 1 -3* py.

WEAKLY SHEARED AMPHIBOLITE

Dark green, fine grained, weakly sheared amphibolite/gabbro. Local narrow massive sections up to 2m in length. Moderate foliation 75 deg to C. A. Tr-1% biotite in stringers. Tr-1% quartz veins and

Smpl

9922 9923 99249925

99269927 9928 9929

From (m)

42.50 43 .50 44.5045.50

60.5063.54 69.75 70.75

To (m)

43.50 44.50 45.5046.50

61.5064.87 70.75 71.63

Lngt (m)

1.00 1.00 1.001.00

1.001.33 1.00 .88

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RL-98-4 [continued) Page : 4 of 4

From (m)

72.70

To (m)

77.00

Geology

irregular patches. IL-2% py, X-2% po in fine disseminations, li? corroded garnet . Hardness H 3-4 MS 0.45.

60.50 61.15 lS-20% qtz veins, X-3% po, X-3% py, tr cpy.

63.54 64.87 S-5% qtz veins, 1 -3* po, l-3% py.

69.75 71.63 Strongly sheared section. S-5% biotite, B-7% qtz veins, X-3% po, l% cpy, X-3% py.

AMPHIBOLITE

Dark green, coarse grained, massive crystalline texture. Large amphibole clots up to 0 . 5cm in diameter. White qtz-feldspar matrix with tr-1% quartz in veins and irregular patches. Hardness H 3-4 MS 0.65.

E. O.K.

Casing pulled.

Core Store at Stares Contracting, Thunder Bay.

Smpl From (m)

To (m)

Lngt (m)

AU PPB

CU PPM

ZN PPM

WR

O

O

. S O

t* l f*

Ministry ofNorthern Developmentand Mines

Declaration of Assessment Work Performed on Mining LandMining Act, Subsection 66(2) and 66(3). R.8.O. 1990

Transaction Number (office use)

Imaging

of subsections 65(2) and 66(3) of the Mining Act. Under section 8 of the ) review the assessment work and correspond with the mining land holder. l Recorder, Ministry of Northern

52G05NW2001 2.18390 ILSLEY 900n Development and Mlf189/^1

^ .1839Instructions: - For work performed on Crown Lands before recording a claim, use form 0240.

- Please type or print in ink.

1. Recorded holder(s) (Attach a list if necessary)Name

Wrckv-fL S /ctr^SAddress

fp3/ ht/'A/^-rfG-ftsi !?V - T h cf *io(jt r B Ct̂ 1 '

ft/l/T " l f C ~ ^ C- (Name

Address

Client Number 1 9 "7 "Z 5 C"**

Telephone Number#0-7-6*3- 2 i 71

Fax Number

H? 5- ?oc"?Client Number

Telephone Number

Fax Number

2. Type of work performed: Check ( s ) and report on only ONE of the following groups for this declaration.

D Geotechnical: prospecting, surveys, assays and work under section 18 (regs)

r-y"Physical: drilling, stripping,l^-J trenching and associated assays Rehabilitation

Work Type

O

Data* Wnrk . ^ *-i Lsatoa w*wti\ c**** l -^ x^/ ** Of ri T** O X\ f \ L* O t/Performed From / f\OLl\ "B To -^ i OT i TO

Dty j Month | Y*v Day | Month | YearGlobal Positioning System Data (II available) Township/Area --^- ,

M or G-Plan Number {y

Office Use

Commodity

Total S Value of . Work Claimed J7/ ^7

, f*

NTS Reference

Mining Dlvisinn ~~r~^^

Resident Geologist , , District T\SJY\jS]i

^j^T^^ '

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.

3. Person or companies who prepared the technical report (Attach a list if necessary)Name Telephone Number705"- "23 SAddress ax Number

Name Telephone Number

Address Fax Number

4. Certification by Recorded Holder or Agent

l. , do hereby certify that l have personal knowledge 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 Recorded Holder or t gent

Agent's Address83 )~

Telephone Number#07-60- z

Fax Number^75"-

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.

eg

eg

eg

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

TB 7827

1234567

1234568

Kl2ogSol

/7o#5b3L

/ZogS*3

i

#

Number of Claim Units. For other mining land, list hectares.

16 ha

12

2

/tIt,13

'

r

Column Totals'

Value ol work performed on this claim or other mining land.

S26, 825

0

$ 8 , 892

**477/.7?77?

f ILJJ9/

*?l, W *

Value of work applied to this claim.

N/A

324,000

S 4,000

- . x J

*S2,#00*ii.i*i7

r3LW7

Value of work assigned to other mining claims.

2.18S24,000

0

0

7677

f*i8o(

^Hl

Bank. Value of work lo. be distributed

sTtrS2,825

0

54,892

r

~ ~~-

l, h ctf (^ 7\ S TV/Is ^ * 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 of Recorded Holder or Agent Authorized In Writing Date

6. Instructions for cutting back credits that are not approved.

Some of the credits claimed in this declaration may be cut back. Please check ( ^ ) 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 appe rif

APR 2f 1998 ji

GEOSCIENCE ASSESSMENT!f\ — ri f* ~

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 OnlyReceived Stamp Deemed Approved Date

Date Approved

Date Notification Sent

Total Value of Credit Approved

Approved for Recording by Mining Recorder (Signature)

Ontario Statement of Costs for Assessment Credit

Transaction Number (office use)

Personal Information collected on this form Is obtained under the authority of subsection 6 (1) of the Assessment Work Regulation 6/96. Under section 8 of the Mining Act, this Information Is a public record. This Information will be used to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to a Provincial Mining Recorder, Ministry of Northern Development and Mines, 3rd Floor, 933 Ramsey Lake Road. Sudbury, Ontario, P3E 6B5.

2.1832Work Type

PlaftuwJ EWta*

^D/Pcwif : /Ve (o* a, m )

/k6;4-fey?{ - Awr s^/a** , ^

Units of work Depending on the type of work, list the number of hours/days worked, metres of drilling, kilometres of grid line, number of samples, etc.

3^-fo pu e{( fS,

D r * J^cT m a nat**"*r prit~ ̂ -^raufl1 ~*J . J l

tt x t f Q A

r

Associated Costs (e.g. supplies, mobilization and demobilization).

MoO, \ liaii On T dfnttloflfZaTffi/l ~~ tfrttlfr";.

Core *?ha cfC fi f/i ra. ' ^u rt? ̂ ^

\\ffloC\-t UCAt^tifA ^- ^Ay^1 J t

f ( if \c\ ~\~ r r^) t f cT[ ^L 6 ̂ ( ^ ( (^ ̂ -^ O* ci */^vj tj '

Transportation Costs

Trac/t /^^r^f ft^vl

(r J " 4 ( K K-t J Z /V .Z~ a. .^2^.., ^ T., .,, , .. *rr ^"^^Food and Lodging Costs

rood tind ^0dai/!* 14 manday^ ~J ^-1 1

Cost Per Unit of work

fa *r*r S y4P -*- * *-J f fyn t* i r 0

X 3oo /^a^T

'

fi Ibo/,^**

l* go/ Ja ,' f

^ //c /^^i if

Total Value of Assessment Work

0Total Cost

fa /g 020,28

{ 7 524 6

jrf 1 ,7/ZAO

g Siso.&i

tt Z^ oo

P SCO. co

fc SCO. oo

If TIP ^o

t/.fC&.oo

tt /,5-40,co

i 3 i. -937- 2^

Calculations of Filing Discounts:

1. Work filed within two years of performance is claimed at lOO1}*) of the above Total Value of Assessment Work.2. If work is filed after two years and up to five years after performance, it can only be claimed at SOTo of the Total

Value of Assessment Work. If this situation applies to your claims, use the calculation below:

TOTAL VALUE OF ASSESSMENT WORK x 0.50 s Total S value of worked claimed.

Note:- Work older than 5 years is not eligible for credit.- A recorded holder may be required to verify expenditures claimed in this statement

request for verification and/or correction/clarification. If verification and/or correction Minister may reject all or part of the assessment work submitted.

^clarification is not made.Tfie

23-1998

a-- 'r

GEOSCIENCE ASSESSMENT*

JCertification verifying costs:

l,___(please print full name)

be determined and the costs were incurred while conducting assessment work on the lands indicated on the accompanying

. do hereby certify, that the amounts shown are as accurate as may reasonably

Declaration of Work form as. Md f r(recorded holder, agent, or stale company position wHh signing authority)

l am authorized to make this certification.

0212(03/97)

Signature Date

OntarioMinistry of Ministere duNorthern Development Developpement du Nordand Mines et des Mines

Geoscience Assessment Office 933 Ramsey Lake Road

September 14, 1998 6th FloorSudbury, Ontario

MICHAEL ROBERT STARES P3E 6B5831 MINNESOTA ST.THUNDER BAY, Ontario Telephone: (888) 415-9846P7C-3L7 Fax: (877)670-1555

Visit our website at: www.gov.on.ca/MNDM/MINES/LANDS/mlsmnpge.htm

Dear Sir or Madam: Submission Number: 2 .18390

Status Subject: Transaction Number(s): W9810.00078 Approval After Notice

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 Lucille Jerome by e-mail at jeromel2@epo.gov.on.ca or by telephone at (705) 670-5858.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 12783

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2.18390

Date Correspondence Sent: September 14, 1998___________________Assessor: Lucille Jerome^^^^^^^^^^^^^^^^^

Transaction First ClaimNumber Number Township(s) l Area(s) Status Approval Date

W9810.00078 1208501 RALEIGH LAKE Approval After Notice September 01, 1998

Section:16 Drilling PDRILL

In all future diamond drilling submissions please ensure that relocation of the drill hole is simplified in the field by providing the following on your drill plans:

- a scale between 1:5,000 and 1:10;- contain a graphic or bar scale and show the magnetic north and the declination;- show all lakes, streams and other notable topographic features, and all relative cultural features such as railways and power lines;- accurately show all mining land boundaries, claim posts, township boundary lines, roads, lot and concession lines, base lines, picket lines and survey boundaries and stations, where indentifiable, in relation to topographic features;- show the location of drill hole collars and the numbers, angles and depths of all drill holes

Correspondence to: Recorded Holder(s) and/or Agent(s):

Resident Geologist MICHAEL ROBERT STARESKenora, ON THUNDER BAY, Ontario

Assessment Files Library Sudbury, ON

Page: 1Correspondence ID: 12783

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