RECEIVEDMAR 2 S 2001

GEOSCIENCE ASSESSMENT!

GEOCHEMICAL REPORT:

SAMPLING OF GLACIAL MATERIAL AND ALLUVIUM

PLAUNT LAKE CLAIMS GREEN TP. G2870, JEFFRIES TP. G1151

SAULT STE. MARIE MINING DISTRICT

Wednesday, March 21, 2001.

Report Prepared by:

Kevin Kivi, PGeol.,Principal Geologist - Diamonds

KENNECOTT CANADA EXPLORATION INC354-200 GRANVILLE ST.

VANCOUVER BC V6C 1S4

41012SE2001 2.21013 GREEN 010

Table of Contents

LIST OF ILLUSTRATIONS 2

INTRODUCTION 3

LOCATION AND ACCESS 4

TOPOGRAPHY AND DRAINAGE 4

PREVIOUS WORK 4

PRESENT SURVEY 4

SAMPLING 5

METHODOLOGY 5

SAMPLE OBSERVING RESULTS 6

MINERAL CHEMISTRY 6

RECOMMENDATIONS 6

REFERENCES 8

List of IllustrationsFigure 1: 1998, 1999 and 2000 Sample Sites and Claim Map

AppendicesAppendix I: Qualifications of Crew and Author Appendix H: Sample Information

Table 1: 1998 SamplesTable 2: 1999 SamplesTableS. 2000 Samples

Appendix EH: Lab InformationFigure l. Mineral Processing Lab Flow SheetTable l: Mineral Observation Results

41012SE2001 2.21013 GREEN 0 10C

2

INTRODUCTIONCanabrava Diamond Corporation, in agreement with joint venture partner Paramount Venture and Finance Inc., conducted a regional prospecting program consisting of alluvial system sampling near and in Green and Jeffries Townships, located about 160 km northeast of Sault Ste. Marie, Ontario, during June 1998. Subsequently, twenty-four claims of sixteen units and six claims of four units were staked. Presented in this report is a summary of field activities, including the sample location map and the sample database for the regional samples and for sampling performed on these claims. A total of fourteen regional modern alluvium samples were taken, nine near the claims and five on the current claim group.

In June of 1999, Kennecott Canada Exploration undertook an alluvial system sampling program on the Plaunt Lake Claims to refine and expand the positive results for kimberlite indicator minerals obtained by joint venture partner Canabrava Diamond Corporation during the previous summer. Four samples of various types of material were collected.

To further investigate encouraging results from these samples, six samples of various material were taken on the Plaunt Lake Claims in November of 2000.

Field activities are summarized in this report; figure l. shows the samples in relation to bodies of water and major cultural features and a sample database is included in Appendix II.

Initial interest in the area was based on the reported occurrence of several kimberlite indicator minerals in the region and the location of the area near the structurally favorable Kapuskasing Structural Zone. The Kapuskasing Structural Zone, KSZ, is interpreted as an area of intracratonic uplift along a major listric fault (Percival and Card, 1983, 1985; Leclair, 1990; Percival, 1990) exposing high-grade metamorphosed midcrustal rocks.

Geology of the eastern part of the Wawa Subprovince consists of large areas of granitic rocks between greenstone belts and small plutons (Williams et al., 1991). Rocks vary considerably in composition, structure, and textural styles.

00*744 l 1 22591 ?

Nl 225915

Figure 1: Sample Sites and Claim Map

LOCATION AND ACCESSThe Flaunt Lake claim group is located 160 km northeast of Sault Ste. Marie, Ontario near Chapleau. The 6528 hectare property consists of 30 mining claims, shown in figure l, in Green and Jeffries Townships. The ground was accessed from the town of Chapleau by driving south to Highway l and continuing east onto a dirt highway which led right into the claim group. Numerous cart tracks and old, unused logging roads provided good walking access to some of the samples.

The Flaunt Lake Claims are held by:

Kennecott Canada Exploration Inc. CLIENT NUMBER: 302772 #354-200 Granville Street, Vancouver BC, V6C 1S4

TOPOGRAPHY AND DRAINAGETopography of the area is generally quite flat with a few large lakes and rivers. The area is located proximal to the Atlantic-Arctic Watershed drainage divide. Surface water in the Flaunt Lake Claims area drains into the Atlantic Ocean. Quaternary deposits near Flaunt Lake are typically thin drift l .4 to 6 metres thick over bedrock.

PREVIOUS WORKAreas surrounding the Flaunt Lake Claims have been subject to numerous exploration campaigns for base metals and gold; stripped and trenched mineralized areas and old drill camps are evidence of this.

Bedrock geology and quaternary geology has been mapped by the OGS; these are maps 2543 and 2555, respectively.

PRESENT SURVEYIn June of 1998, fourteen samples were collected on or near what are now the Flaunt Lake Claims. A sampling team consisting of a geologist and an assistant collected samples at about 2500 m spacings along major alluvial systems drainage. Where a road crossed the waterway, samples were taken upstream. Within the stream, exact sample location was chosen based on the material available and local geomorphology; if no streams could be found in areas where a sample was required, a beach sample was taken. All samples were shoveled into 10 L pails and then wet sieved using 4mm and 2mm sieves. This was repeated until a 12 kg sample was obtained; original volume of all samples included in this survey was about 20 liters. The wet sieving effectively washed out the clay and silt fraction and organics. Five samples were taken on what is now the claim group and nine were taken nearby.

In June of 1999, Kennecott Canada Exploration Inc. undertook an alluvial system sampling program to refine and expand the anomaly suggested by the previous field season's results. These samples were collected in the same manner as the 1998 samples. A total of four samples, consisting of two stream, one beach and one glaciolacustrine till, were collected.

In November of 2000, six samples were collected by a sampling team. Twelve liters of glacial material were collected at sites where there was quick access along road systems. Sample sites were originally selected to reproduce the anomalous stream samples in till and to expand the anomaly. Two till samples were obtained. A paucity of good till led to sampling various types of material, including eskers. Three esker samples were taken on the claim block to reveal possible up ice sources of kimberlite indicator minerals. One beach sample was taken. Because of the relatively high ratio of small sand-sized particles in some of the samples, the sample size was decreased from twelve to ten liters.

The sample types, volumes, locations, and site descriptions were recorded in the field and entered into a computer spreadsheet database with the UTM coordinates (Tables 1,2,3 in Appendix II). Locations were recorded on l: 50,000 scale topographical field maps.

The names and addresses of the samplers are provided in the appendix of this report.

SAMPLINGThe area contains a geologically young drainage system with many poorly developed rivers and streams. The fourteen samples collected in 1998 are modern alluvium, as are two of the samples collected in 1999. A single beach sample was collected in 1999 and again in 2000. Quaternary deposits near Flaunt Lake are typically thin drift l .4 to 6 metres thick over bedrock. One glaciolacustrine sample was collected in 1999. In 2000, one till sample, one glaciofluvial sample and three esker samples were taken on the claim group.

Kimberlites and lamproites are typically centred on major lineaments and fault zones like the KSZ.

The boundaries of the project area within the Flaunt Lake Claims was chosen to limit the prospecting to granitic terrain because kimberlites and lamproites are more easily identified from geophysical data in this setting.

Sample locations are provided in Appendix II.

METHODOLOGY1998 and 1999 SamplesTwelve kilograms of material was collected for alluvial and esker samples after processing at the sample site. Processing included washing the clay from the sample while sieving using 4.0 mm and 2.0mm mesh screens. Particles larger than 2.0 mm were identified, noted, and discarded. Particles between 0.2 and 2.0 mm were bagged and labeled. These samples were then sent to Overburden Drilling Management in Nepean, Ontario in 1998 and to Kennecott's Mineral Processing Laboratory in Thunder Bay, Ontario in 1999 for heavy mineral separation and mineral analysis.

2000 SamplesTwelve liters of material were collected for till samples. The humus and organic soil were removed from the hole and set aside, as were any cobbles or boulders. Cobbles and boulders were inspected for the presence of kimberlite or other mantle xenolith bearing rocks. Twelve

liters of till from the c-horizon were shoveled into a pre-measured bucket lined with a polyvinyl bag; this was always placed in the bucket to reduce the risk of contamination between samples. The bag was then closed with a zip tie and placed inside a rice bag closed with another zip tie; both bags were labeled with the sample number. Holes were typically less than 50 cm deep. All pits were back filled and the topsoil was replaced.

Beach and esker samples were obtained in a similar manner, however the sample size was decreased to ten liters to compensate for a larger fine-grained sand population. Samples taken from cut banks were typically much deeper in the relative relief, but the pits were dug from the side of the bank not down from the top. Pits into the side of road cuts, etc. were not back filled.

Samples were then sent to Kennecott's Mineral Processing Laboratory in Thunder Bay, Ontario for heavy mineral separation and mineral analyses. A flow chart detailing the procedure at the mineral processing lab is included in Appendix III.

SAMPLE OBSERVING RESULTSAfter heavy mineral separation, sample concentrates were examined by mineral observers at the Thunder Bay mineral processing lab. Grains identified as pyrope garnet, eclogitic garnet, chrome diopside, ecologitic clinopyroxene, orthopyroxene, chromite, olivine, and ilmenite were passed along to a mineralogist who then selected grains for analysis by microprobe. Grains had not been sent for probing at the time of this report and as such are not included. Results are tabulated in the Table l: Mineral Observation Results in appendix III.

MINERAL CHEMISTRYIn 1998 and 1999, garnet, spinel and ilmenite were confirmed by electron microprobe analysis and several compositions suggest mantle origin, which is considered positive when exploring for diamond. Mineral plots are not included in this report as the costs are not being submitted for assessment.

RECOMMENDATIONSMantle derived minerals may be delivered to surface by an intrusion such as kimberlite, which is known to carry diamonds. The presence of such minerals in overburden samples warrants further exploration by additional sampling and prospecting, geophysics and possibly diamond drilling.

Respectfully Submittted:

Kevin R. Kivi, P.Geol.KENNECOTT CANADA EXPLORATION INC.

REFERENCES

Barnett, P. J., Henry, A.P. and Babuin, D. 1991. Quaternary Geology of Ontario, East-central Sheet; Ontario Geological Survey Map 2555, scale 1: 1000 000.

Boissoneau, AX 1962 and 1963. Algoma, Sudbury, Timiskaming and Nipissing Surficial Geology; Research Branch, Ontario Department of Lands and Forests, Map number S5465, scale 1:506880.

Morris, T.F. and Kaszycki, C. A. 1995. A Prospector's Guide to Drift Prospecting for Diamonds, Northern Ontario; Ontario Geological Survey, Open File Report 5933, HOp. page 67.

Ontario Geological Survey 1974 - 1976. Sault Ste. Marie - Elliot Lake, Geological Compilation Series, Map 2419, scale l inch to 200 miles.

Ontario Geological Survey 1991. Bedrock Geology of Ontario, East-central Sheet; Ontario Geological Survey Map 2543, scale l: 1000 000.

Schwerdt Graphic Arts Ltd. 1996 Edition; Peter Heiler Ltd.; Sault Ste. Marie Northern Ontario Road Map, scale 1:1 725 000.

Thurston, P.C., Siragusa, G.M., Sage, R.P. and assistants 1970. Geological Map, Ontario Department of Mines and Northern Affairs, Map P. 675, scale l inch to 2 miles.

Appendix I: Qualifications of Crew and Author

QUALIFICATIONS OF CREW MEMBERS

June 1998 and 1999Crew Leader: Tim SearcyMasters of Science Degree 1995, Geology, University of Toronto Bachelor of Science Honours Degree 1993, Geology, University of Windsor 4 years experience in mineral exploration

Other workers: Mike Byron

The professional address of both workers at the time of the survey:Canabrava Diamond Corporation, #1650-701 W. Georgia St., Vancouver, BC, V7C 1C6

November 2000Jamie McLennan20 years mineral exploration experienceKennecott Canada Exploration Inc, #354-200 Granville St., Vancouver, BC, V6C 1S4

Vivienne McLennanBachelor of Science Honours Degree 1999, Geology, Lakehead University4 years experience in mineral explorationKennecott Canada Exploration Inc, #354-200 Granville St., Vancouver, BC, V6C 1S4

QUALIFICATIONS OF AUTHOR

Kevin Kivi, P. Geol. (NAPEGG)

Fellow GAC, Member of SEG, AGO, AEG, CIM and PDAC Graduate (1983) BSc. Geology. Lakehead University

17 years Mineral Exploration Experience

10

Appendix H: Sample Information Table 1. 1998 Samples Table 2. 1999 Samples Table 3. 2000 Samples

11

Table 1: 1998 Regional SamplesSampleRI980291RI980293RI980776RI980777RI980778RI980283RI980289RI980290RI980292RI980762RI980763RI980764RI980765RI990790

Date06/02/199806/02/199806/03/199806/03/199806/04/199806/04/199806/05/199806/05/199806/06/199806/06/199806/07/199806/07/199806/08/199806/08/1998

Easting305900309150307805307475309100297800299450302075312400312730316390316100318400303100

Northing52660505270825527031052688205265980526287552654005264300526380052710655271400527150052729155262180

DatumNAD83NAD83NAD83NAD83NAD83NAD83NAD83NAD83NAD83NAD83NAD83NAD83NAD83NAD83

Zone1717171717171717171717171717

Sample TypeModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluviumModern alluvium

Volume2020202020202020202020202020

SamplerTSTSTSTSTSTSTSTSTSTSTSTSTSTS

Comments

Table 2:1999 SamplesSampleKD0716KD0717KD0744KD0745

Date06/06/199906/06/199914/06/199914/06/1999

Easting309350308110308070307750

Northing5271835526968052684605268680

DatumNAD83NAD83NAD83NAD83

Zone17171717

Sample Typebeachglaciolacustrinestreamstream

Volume20202020

SamplerTSTSTSTS

CommentsBeach - clay to cobble, reworked tillvery well sorted v.f.g. - f. g. sandModern Alluvium - f. g. sand - pebbles, mostly m. g. sand ("carbonate grains and pebbles present)Modern Alluvium, mostly organics and m. g. sand (carbonate grains and pebbles present)

Table 3: 2000 SamplesSampleKD1089KD1090KD1091KD1092

KD1093

KD1094

SampleKD1089KD1090KD1091KD1092KD1093KD1094

Date11/09/200011/09/200011/09/200011/09/2000

11/09/2000

11/09/2000

Easting308374307988307729307607

306919

308697

Northing5272671527242852703145269845

5268169

5265937

DatumWGS84WGS84WGS84WGS84

WGS84

WGS84

Zone17171717

17

17

Sample Typetillbeacheskeresker

glaciofluvial

eskerClast Size Vo

boulders50

100

1010

cobbles50

100

1010

pebbles100

10301525

sand455070705555

clay1020

0000

silt2530

00

100

Volume12101010

12

10

SamplerJM/VMJM/VMJM/VMJM/VM

JM/VM

JM/VM

Depth40

-

4030

100

300

colourlight brownbrownbrownlight brown

light brown

light brownClast Lithology "ft

volcanic10

10202020

intrusive80

80605050

meta10

10203030

sed0

0000

Commentssandy silty till, dirt road, ice direction in area is about 200beach on Tenor Lake, sample is decent, no heavy linegravel pit, coarse sandreworked glaciofluvial, sand pit, excavated material, subrounded to well rounded materialcut bank on roadside, stratified, boulders subround to well rounded, 2m high cut bank, section from the top down is as follows: subangular boulders/fine sand and silt/extremely fine sand and silt/coarse sand and gravel/sand. Photo taken.5m relief, discontinuous but well formed remnants, flow direction is approximately east-west

Appendix IQ: Laboratory InformationFigure l: Laboratory Flow Sheet Table l: Mineral Observation Results

12

Kennecott Canada Exploration Inc. Thunder Bay, Ontario

Figure 1: Heavy Mineral Processing Lab Flow Chart

Table 1: Sample ResultsSampleRI980291RI980293RI980776RI980777RI980778RI980283RI980289RI980290RI980292RI980762RI980763RI980764RI980765RI990790KD0716KD0717KD 0744KD 0745KD1089KD1090KD1091KD1092KD1093KD1094

Fraction * Size-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 *0.250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 *0.250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 +0. 250mm Mag-0.500 *0.250mm Mag-0.500 +0.250mm Mag-0.500 +0. 250mm Mag

Pyrope000200000001000001000000

Eclogitic Garnet000000000000000000000000

Clinopyroxene000000001001101012007010

Omphacite000000000000000000000000

Ilmenite000000000000000000000000

Chromite000000101000009104004000

Orthopyroxene000000000000000000000000

Olivine00000000000000021020

2509

20

ONTMIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Transaction No:

Recording Date:

Approval Date:

Client(s):

302772

Survey Type(s):

W0150.00023

2001-MAR-26

2001-JUN-19

Work Report Summary

Status: APPROVED

Work Done from: 1999-JUN-06

to: 2000-SEP-11

KENNECOTT CANADA EXPLORATION INC.

BENEF

Work Report Details:

Claim*

P 1225907

P 1225908

P 1225917

SSM

SSM

SSM

SSM

SSM

SSM

1225904

1225905

1225911

1225914

1225921

1225925

Perform

SO

soso

52,338

31,170

S3.506

S2.338

51,170

51,170

511,692

External Credits:

Perform Approve

52

51

53

52

51

51

511

SO

SO

SO

SO

,338

.170

,506

,338

,170

,170

,692

Applied

51,600

51,600

S1,600

SO

56,400

50

SO

50

SO

511,200

Applied Approve

S1.600

51,600

31,600

SO

56,400

SO

SO

SO

SO

311,200

Assign

Assign Approve Reserve

SO

soSO

S2.338 2,

50

53,506 3,

52,338 2,

51,170 1,

51,170 1,

510,522 510,

0

0

0

338

0

506

338

170

170

522

SO

SO

SO

SO

S492

SO

SO

SO

SO

5492

Reserve Approve

so50

soso

S492

SO

SO

50

so

S492

Due Date

2002-MAR-26

2002-MAR-26

2002-MAR-26

2001 -MAR-26

2002-MAR-26

2001 -MAR-26

2001 -MAR-26

2001 -MAR-26

2001 -MAR-26

Reserve:

5492

5492

Reserve of Work Report*: W0150.00023

Total Remaining

Status of claim is based on information currently on record.

41012SE2001 2.21013 GREEN 900

2001-Jun-20 16:34 Armstrongjj Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date: 2001-JUN-20

Ministers du Developpement du Nord et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

KENNECOTT CANADA EXPLORATION INC. 354 - 200 GRANVILLE STREET VANCOUVER, BRITISH COLUMBIA V6C1S4 CANADA

Tel: (888) 415-9845 Fax:(877)670-1555

Dear Sir or Madam

Submission Number: 2 .21013 Transaction Number(s): W0150.00023

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time.

Future submissions should include a sample location map at a scale of between 1:100 and 1:5,000.

If you have any question regarding this correspondence, please contact BRUCE GATES by email at bruce.gates@ndm.gov.on.ca or by phone at (705) 670-5856.

Yours Sincerely,

Ron GashinskiSupervisor, Geoscience Assessment Office

Gc: Resident Geologist

Kevin Robert Kivi (Agent)

Kennecott Canada Exploration Inc. (Assessment Office)

Assessment File Library

Kennecott Canada Exploration Inc. (Claim Holder)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:16055

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NORTMEHN OrVELOI'MENI

AHDMNES

PROVINCIAL MNWC

MINING LAND TENURE

MAP

Dale/Time of Issue Mar 27 2001

TOWNSHIP l AREA

GREEN

09:45h Eastern

PLAN

G-2870

ADMINISTRATIVE DISTRICTS l D IVISIONS

Mining D ivision S ault Ste. Marie

Land Thtes/Registry Division S UDBURY

Ministry of Natural Resources District CHAPLEAU

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LAND TENURE WITHDRAWAL DESCRIPTIONS

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41012SE2001 2.21013 GREEN 200