Sampling and Laboratory Analysis

For

Mori Diamonds Inc. Mori Diamond Property

Cbabanel and Bailloquet Twps. Sault Ste. Marie Mining Division

P.A.R. Brown P.Geo Nov. 15, 2005

6

RECEIVED I

DEC - 1 2005

GEOSCIENCE ASSESSMENT OFFICE

Table of Contents! List of Illustrations

1 2 3 4 5 6 7 8-33

Table of Contents / List of Illustrations Project description Sample Locations/descriptions Fig. 1 Sample Locations on Claims Fig. 2 Sample Locations on Geology Photo sample 9906 Photo - sample 9908 Laboratory Analysis

I

r ----------------------------- .-,..-.-~--.-.. -~--

Sampling and prospecting Mori Diamonds Chabanel claims.

Two trips were made to Wawa to sample rock types identified on tbe Ron Sage map P. 2439, scale I inch to ~ mile 1982. Se\Ieral f)'lleS of conglomeritic material were identified and l\'lori \\'as interested to ,'erify if diamonds were present in any of them.

The first trip ,,-as 191h may 2005 to 21 may 2005 inclusive with Reg Charron of Hanmer. Rock type lb , a heterolithic breccia, was sampled in Lendrum twp, just west ofhwy 17, and rock type 2d a younger heterolithic breccia was sampled on claim 1235288 just north of the old rail bed in Cbabanel. llTM,s are given in tbe table of samples.

Approximately 20 kilos were taken from each of these localities. Various other hetcrolitbic breccias are shown on map P 2439,

units 2n, 2p, 3b,3z. The second trip was witb Tony Holtz of Callander from 30th May

to l ~I June inclush'e and unit 4h. a volcanic-clast conglomerate was sampled (9908.) AJso rocks (sulphide bearing quartz vcin) were sampled on claim no. 1236758 where a large barium geochem anomaly has been oudined from work carried out by a local prospector H.P Hutten and reported under OP 99-491,2 in May 2001. To the north yarious pebble lampropbyres were noted during access to this area.

Ten samples were taken and seven have been reported on in this report. Samples 9902 to 9908 inclusive. The 2d unit was diamondiferous and requires follow up. The carbonate bearing ultramafic intrusion unit 6p should also be followed up as anomalous gold and palladium were noted with high nickel. copper and chromium.

Assay results are appended

Submitted by P.A.R.Brown P.Geo

2.

Gold Insight Wawa Property. June sampling

Sample no. lJTM Nad83 Map Unit Comments

9902 16lT 0671 J 05, 5328779 2d SE Blueberry Lk chips all over o.c cI#1235288

9903 16ll 0671511,5328481 6p carb altd mafic cI# 1235291

9904 16U 0671600,5328458 6p taJclcb altd c1#1235291

9905 close 10 9904 6p as 9904 + cpy <114% el#1235291

9906 16U 0666271,5329733 QV pyrite 2%+ el# 1236758

9907 100m east of 9906 QV as 9906 cI#1236758

9908 16l.' 0666577,5326577 4h west central Chabanel Twp CI# 1236877

t'}tI -!' 1236874

.) ('> 1236617 , ... ' ~.

qq.,g0

N

t

12367!)9 '%,

l-Qc.A T ,o ,..) S

.t> I A""'-o '" n.r p ~.

o M.

QUh ~~ lIM.-p P.l'fsq .~ tt...-p 19U6-<"'''L fc.i>(fi I" 0 II/<f""'~« .

~OCJ< T'-( I 'i: 4 j.j ~pu; qqo~ .

NOTE:

SGS Lakefield Research Limited

MICRODIAMOND EXTRACTION, SELECTION AND DESCRIPTION AND GEOCHEMICAL ANALYSIS

OF TEN ROCK SAMPLES

prepared for

Gold Insight Resources Ltd. 8901-480 LlMS#MIOOO3~JUN05

This report refers to the samples as received.

The practice of this Company in issuing reports of this nature is to require the recipient not to publish the report or any part thereof without the written consent of SGS Lakefield Research limited.

Lakefield Research

SGS Lakefield Research Limited P.O. Bolt' 4300. 185 Concession Street. Lakefiek1. Ontario. CQnade KOL 2HO Tel: (705) 652-2000 Fax: (705) 652-6365 www.sgslakefielcl.com _.sgs.com

Member of SGS SA Group

July 14, 2005

OF \0 5b.\--\\?\..E~ $~6~ l~\) ~O~

G.."e 0 6,·\:~::' ~ \ c.. ~ L p...~ t::.. ,-,<"5 \'5 ~ A.c.-S 'S b...'('

O\-.l LY -=1- .b.~ U -?~"V \ ~ \l-\. \5 S ~ £3 -

'rJ,,\'5 S\ 0 ~. ~~ C:;;'-.l.OJ. 1 \z..~-S U '-''',5 F=eOK

\l-l. ~ '6 s ~ 'Pl.E= ~ ~O"( \J....seD E1 i 0 t J

qqOCf i:. '1<1 \ 0) &et... BL.b\--l~V Rz..OY\

-n-\E. tL..e:Potz..\.

OF" -4 5p.."",,~'-'E.6 <S"E.\~ l=O'i2. cp..,\....\s,,\\G

1)\5-:;0\....\.1 ,\0\-.\ \ O~~ 1- ~rz£ L~.:-SE.P \ t-.\. \\4\'5

St..i6~tS<£\D~. t:.-s 5\.1(...\-\ I \Z.E:Su..'-T'S ~ \U£....

l S ~M 'V'\.-E ~ b.J2k~ t..\ C\ \ tJ.. C-L\).17E\/.

FRO'1 : m..rEN MILLEN I LIM ~AL TH

Gold Insight Resource& Ltd. 890100480 LlNlS'MI0003.JUN05

Summary

FAX NO. 9052620561 Oct. 135 200S 00:51PM P5

Diamond Exploration Services SGS lakefield Research Limited

Ten rock samples. identified as 9901 through 9910, were submitted for geochemical

analysis. Four of these samples, 9901, 9902. 9908 and 9909. were also submitted for

microdiamond extraction. selection and description.

All samples, with the exception of 9903 and 9905, were crushed to nominal passing 1".

A 1 kg portion was riffled out and submitted, along with samples 9903 and 9905, to SGS

Toronto for further preparation and geochemIcal analysis. All samples were submitted

for a 32 element aqua regia rep scan. Samples 9903, 9904 and 9905 were also

analyzed for Pt. Pd and Au content by fire assay and samples 9906 and 9907 were

analyzed for Au content. All results are reported in Appendix A, along with standards,

blanks and duplicates.

After removing the 1 kg sample for geochemical analysis. the remaining material from

samples 9901, 9902, 9908 and 9909 was sent for microdlamond extraction, selection

and description by caustic dissolution. Caustic dissolution residues were collected on a

150 mesh (105 j.lm) screen, then submitted for Frantz magnetic separation to isolate the

microdiamonds in the non-paramagnetic fraction. All results are reported as a

Certificate of Analysis in Appendix B_

A detailed description of the microdiamond extraction process, as well as a generaliZed

processing flow sheet, may be found in Appendix C.

As part of our on-going commitment to providing a high quality service and to monitor

the recovery efficiency of sample material in each kUn pot, we put spikes in each sample

and recovered these spikes at the end of the process during microdiamond selection.

The recovery of coarse. 35 mesh spikes in this group of samples was 98% and the

recovery of relatively fine. 80 mesh spikes was 95%.

2

'0

FRIl1 G0LrEN MILLEN J UM HEALTH

Gold Insight Re&ourus Ltd. 8901-480 LlMS#MI0003.JUN05

FAX /'l). 90S262ffi61

SGS Lakefield Research Limited July 14.2005

Oct. es 2005 08:52PM PG

Diamond Exploration Services SGS Lakefield Research Limited

uza, Ph.D., P.Geo. er ~ Oiamond Exploration Services

Technical Support: Rob Gill. Scott Young, Zakia AI Haddad, Elena Valeyeva, and Maria Mezei

3

H

FRCtI GaJ:EN MILLEN I UM HEAL TH

Gold Insight Resources 1.teI. 8901-480 1.IMS#MI0003-JUN05

FAX 1'1). 9BS2620561

APPENDIX A

GEOCHEMICAL ANALYSES

4

Oct. ffi 2005 as: 52PM P7

Diamond Exploration Services SGS Lakefield Research limited

FROM GalVEN MILLENIUM HEALTH FAX I'V. 98526213561 Oct. as 2005 00:53PM P8

CERTIFICATE OF ANAL VSIS

Work Order: 084317

To: SGS Lakefield Research Limited Attn: Hugh De Souza 185 Concession Street P.O. Box 4300 LAKEFIELD ONTARIO

Copy' to

P.O. No. Project No. No. of Samples Date Submitted Report Comprises

Gold Reserve 10 Rock 27/06/05 Cover Sheet plus Pages 1 to 4

Distribution of unused material: Pulps: Discarded After 90 Days Unless InstrvctedP! Rejects: Discarded After 90 Days Unless Instructed!!!

Certified BV

ISO 9002 REGISTERED

Tim Elli

ISO 17025 Accredited for Specffic Tests. sec No. 456

Date 22/07/05

Report Fonter: L.N.R. .. listed not roc~iv"d I.S." Insufficient S3mplo n.a. = Not applicebtc '" No result 'INF .. Composition of t"is ~ .. mpl" makeS detection impo&Siblo by this methud M "fter a fel'ull denotes ppb to ppm conversion. % donot"li ppm to % conI/orr-ion

SubjCCt 10 SGS Gene,a' Term .. anci COnditions

SGS Canad<llnC" Mlnera' Setllic::lis 1885 leslie Street Toronto ON M36 2M3 1/41 16) 445·5755 fH 16) 445-4152 WWW.sgs.ca

Mfnt>trollbc SGS13"oUl) ~.G/:ntra lie SUIYeiIll<l:I

13

\\'ork Order:

E.lement. ~·ll:thl)cI.

Del.lim. t:ni($,

99Gl 91)0) 91)04 ?90,S

9906 9901 9908

-Dill> 9901 tB11c BLANK ·Std PGlIl

084317

Au F:\1JOl

I

IlPb

n.:a. 2 2

12 9

n.a.

l1.a. <I 509

Date: 22/07J05 FINAL Page J of "

~ ~ Z 3: -r r m z

I ....

o n t+

\\'ork Ol'del': 084317

E·tc:mcut.. Pt Method. FAl30P Oel.J.im. 10 ':u'1!i. ppb

9902 !l.:t.

9903 <: 10 9904 <10 990S <10

9906 ".a. 9901 n.a. "~O8 n.a.

tDur> 9901 n.a. "BII.: BLANK <10 "Sid PGI n 1515

Date:

Pd f'AJ30P

I ppb

n.a. .. 6 4

".SI.

n.J.. n,a.

Il.a.

<I 411

22;07105 F1~AL P'ilge 2 "r 4

~ ~ 3: -r {1; z C 3:

I -

a n ....

...-4 n..

1:

~ q-

~ \\fork O"del': 0843J7 Date: 22/07/05 FD4AL

~ Page 3 of 4

~ Uel'lt'llt. Be :"a MI AI P 1( Ca Sc: Ti V Cr Mn 'Fe Co Ni en \I~thod. ICP12B ICPllB lCP12B JCP12B ICPUB ICP12B ICP128 ICPl2.8 lepUB ICPUB ICPI2-B lC'tlB ICPU8 lepUB ICPUB ICP1ZB

...; OtLLim. O.S O.tI 1).01 0.01 0.01 0.01 0.01 O.S 0.01 2 1 1 0.01 I D.5-0 t .. il~. ppn. ~ Ii % Cjt. % ~ ppm 'it, ppm ppnt ppm ~ ppm ppm ppm Q

1)902 <O.S 0.02 3."10 4.91 0.02 OJ)I 1..58 6.5 0.14 149 28t 1510 3.12 45 121 8.1.0 990) <0.5 0.02 ].75 0.66 0.14 0.19 3.74 ".4 «l.O! 11 161 l181) 5.1.$ J1 236 120.9 !/,)(\4 <0.5 0.01 5.01 3.31 0.10 1.02 1."13 1.1 (1.12 131 948 703- .... 14 19 254 12 . .5 <)C;O~ 0.8 0.04 1.90 2.02 0.13 1.43 0.97 2.4 (l.lO 81 112 485 l.93 21 13 1"26.0

9(1)(- <0.5 0.(1] O.OS 0.4'7 (J.Ol 0.07 0.11 1.4 < IU}l j 142 34 2.37 II '26 11.8 ...-4

2 l32 14 2.'S~ 9 2l 10.1 I.D !J9W?' <O.S <0.01 <0.01 0.01) O.O~ 0.02 0.1)[ 2.3 <0.01

~ 9908 <0.5 O.(lJ 1.7S 1.26 0.09 1.23 1.()9 3.9 O.2~ 7'J III 6S? 3.77 19 49 11.3

~ 1.0 I!l 8 '20 t6.8 0' "D:JP CJ9(H <0.5 0.0) 0.tl8 O.9J O.Ol 0.11 2.61 l.5 <0.01 {j 57 99; '2.50

"Bik SLA,;-{K <0.5 <0.01 <o.m <0.01 <0.01 <IU}l <0.01 <O.S <O.Ot <1 <1 <2 <0.01 <I <1 <0.5

"S~(J XR.~LtlIA <O.~ <D.OI 0.28 0.:54 0.07 0.16 \.C)l 3.2 <fLO! '214 12:! len 1.92 7 41 10'.8

~ X a: lL..

I t-.J <I

~

5 z W .J .J -E

Z ~ cd CJ

~ Q.: lL..

t=

'\:ol'k Order: 084317 Date: 22/07/05 FINAL

EtCI1\t"\lt. Zn As Sr Y Zr Mo Ag Cd ~felh.d. lCPU8 ICP12B ICPlZIl Icpun ICPI28 ICPllB lepUB lePllB Dt't.Lim. 0.5 1 0.5 0.5 0.5 I 2-'~nit.'1, ppm ppnl Pp'D ppm Pilm ppm l'pm ppm

9902 94.8 g 9.2 3. J 5.2- <I <2 <1 9903 76.S 11 461.1 1.4 11.6 < J <2 <I 9904 82.2 S 124.7 6.6 6.9 <I <2 <. 94)05 5l.3 <3 IZO.f} 5.0 4.1 <1 <2 <1

9906 15.1 <3 3l.0 2.1 52.S <~ <2 <I

9907 10.8 3 21.9 2.& 69.5 I <2 <I 91)08 ga.5 <3 21.9 1.8 5.1 <1 <2 <5

"DUI19901 68.4 " 60.9 1.'1 64.8 <2 <I

"Blk BLA:'oIK <O.~ <3 <05 <0.5 <0.5 <I <1 <l

·Std XRAtDIA 181.; 1080 62.6 1).8 7.0 10 '2 '3

PJ.g(: -4 uf 4

Sit Sb 8" (.::\ W ICIJllB ICPll~ ICPIIB fCPl!1J ICPUS

10 5 0.5 10 (lpm ppm pplll ppm ppm

< 10 .5 5 0.5 <10 <10 <~ 61 9.8 <10 <If} <5 391 7.:5 <10 <10 <S SL"l 8.4 < 10

<10 <! U9 199 <10 <10 <5 99 22.4 <HI <If} <S 28,S B.O <10

<10 <5 '39 22.9 <to <10 <5 <J <0.5 <10 <10 100 3620 7.6 1S

Pb Bi ICPUB I(pun

2 :; IJ}Jm ppm

3 <.::; 1 <5 6 <~

5 <5

14 <5 18 <5

3- <!

14 <.

<2 < 14 I

Li lcrill)

I IIJm,

]3 9

50S ,.\

<I

.. 0

4 <I

:}

" ;u

~

Cl (S) r ~ z 3-

r r m z C 3

Mi p. -i I

'TI D X

~

~

~ (S) VI tn .....

o n ..

-0 .....

FR()1 : UBU:€N MILLEN lUM HEALTH

Gold Insight ResourceS Ltd. 8901-480 UM$.MIOOO3..JUN05

FAX NO. 905262e561

APPENDIX B

Oct. 05 2005 09:11PM P4

Diamond Exploration SerVices SGS Lakefield Research Limited

CERTIFICATE OF ANALYSIS RESULTS OF MICRODIAMOND

EXTRACTION, SELECTION AND DESCRIPTION

5

18

FROM: GalIEN MIllENIUM HEALTH FAX 1'0. 9052620561 Oct. as 2005 09:11PM P2

NOTE:

SGS Lakefield Research Limited

MICRODIAMOND EXTRACTION, SELECTION AND DESCRIPTION AND GEOCHEMICAL ANAL VSIS

OF TEN ROCK SAMPLES

prepared for

Gold Insight Resources Ltd. 8901-480 LIMS#MI0003~JUN05

This report refers to the samples as received.

The practice of this Company in issuing reports of this nature is to require the recipient not to publish the report or any part thereof without the written consent of SOS Lakefield Research Limited.

Lakefield Research SGS Uikefield ~Elsearcll Limited P .0, Bo)( 4300. 185 Concession Street. Ulkefield. Ontario. Canada l(OL 2HO

Tel: (705) 652·2000 Fax: (705) 652-6365 1NVt'W.sgslakefiek!.com _.&gS,com

Member of SGS SA Group

July 14. 2005

11

FROM : ua..DEN MILLEN I LIM HEALTH

SGS lakefakf ResearCh Umlted P.O. eOt 4300·185 COIlQ&&&iol'l Sf. Ukefield • Ontario· KOL 2HO Phone: 705·652-2038 FAX: 705·652-6441

Gold Insight Resources Ltd. Attn : Richard Mori

RR#l 14778 Niagara Park Niagara On The Lake. Ontario LOS lJO. Canada

Phons:905-984-0128 F'ax:905-262-0561

FAX NO. 9052620561 Oct. 135 2005 09: 12PM PS

Lakefield Thursday, July 07, 2005

Dele Rec.: 02 June 2005 LR Report: MlOOO3-JUN05 Project: 8901-480 Client Ref: lA2501357

CERTIFICATE OF ANALYSIS

!Sample 10 "Caustic Wt r -Dift "OIl I kg.. . , (ct) r 1: 9901

2:9902 13.92 10 0.002 8:9908 3.68 0 0.000

9:9909

Page 1 of 1 Ditta ""'0"'''' r .. pr .... ~ts UI. ~"'Ille sutmllited to SGS Lakefield ReSll.rc:n. A.epfO(luctlon 01 thl, "nal)lth:,,1 ,..pon In 'ull or In pan IS prohil/ited .. itnout prtl)r' .. rflt"" "pproval.

FROM Ga.DEN MILLEN J UM HEALTH FAX NO. 9052620561 Oct. 0S 200S 09: 14PM P1I3

sos Lakefield Research Umitea 185 Concession St., Bol( 4300 Lakefield. Ontario KOl2HO, CANADA

Tel: (705)652·2112 Fax: (705) 652-3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901· 480 Client: Gold Insight Resources Ltd.

Mesh Fraction

+6 Ferromagnelic Non-mag

-6+20 Ferromagnetic Non-mag

+150 Ferromagnetic Mag

-20+150 PlIJ'amagnetic Mag (0.1 amp)

·20+150 PaIllmagnetic Mag (0.3 amp)

·20+150 Diamagnelic Mag (0.5 amp)

-20+150 Diamagnetic Non-mag (O.S amp)

Sample Weight: 13.92 Kg Number of Symdites: 0

Date: July 7, 200S l .. 1MS No. MJOOO3-JUNOS

Sample No. 9902

Dissolution Residue Description

Not Ilpplicable

Rock fragments, smcates. and oxides

Oxides and silicates

Not applicable

Not applicable

Oxides and silicates

Oxides. silicates, and graphite

Tota. Weight (cants)"': 0.002 Number of Diamonds: 10

" Toea! Weight (carats) was calculaled from mg weights. All reponed rug wtighu,lII'e measured to within 0.002 q.

Note:

~\

Selcaion and Description Zakia AI Haddad Mine:ralogy Tectmician

Maria Meze; Diamond Selection Specialist

SGS Lakefleld R~h Limited is nol rCl'ponsible for lhe dclel"minalion of the origin, qualify or "alue of any diamonds r~"ered. Each +351DC)b (Tyler l'ievc; +/J.420 nun) stOlle Wil" individually weighed, ami !he -33 mesh 5l01lCll were weighoo in groups. Slone dimensions arc limited to acevracy of IMle dimensional mcasute:IDCTILS of ;~I'T IiIlapc, using a pelrographic micro~cope.

AccrediMd by the SU1IIdards Council oj CanudQ 10 Ih~ lSOIlEC Gu,ide 25 lllUldard j()r specific reBisrt!rtd luIS.

1.1

FRCl1 G0LDEN M J LLEN I LIM !-EAt.. TH FAX rD. 91352620S61 Oct. 0S 2005 139: 15PM Pll

SGS Lakefield Research Limited 185 Concession St., Box 4300 Lakefield. Ontario KOL 2HO, CANADA

Tel: (70S) 652-2112 Fax: (705) 652-3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901- 480 Client: Gold Insight Resources Ltd.

Diamond Number of Size Fractions Stones in Group

"tI >. +4.7Smm 0 c=: <II ... - 4.75/ ... 3.35 mm 0 )i

- 3.35 I ... 2.36 mm 0 ·c .::

*] - 2.36/ + 1.70 mIll 0 ~1 - 1.70/+ 1.18 mm 0 u DO g 'ii -1.181 + 0.85 rom 0 Ol~

-850 I ~ 600 /lm 0

]-'8 -600 1+ 425 ",m 0 .- >.~ -425 I ... 300 ",rn 2 j ~·o Q:9~ -300 I +212 Jim 2

;. 0-<II .- ::I -212/ +150 /Lm 4 8 -g e 0"'0 -150 I +1051Jll1 2 ~

TOTAL 10

Sample Weight: 13.92 Kg Number of Syndites: 0

Date: July 7, 2005 UMS No. MIOOO3-JUN05

Sample No. 9902

Group Weight Group Carats (mg) (calculated)

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 ·0.000 0.000 0.000 0.186 0.001 0.076 0.000 0.076 0.000 0.018 0.000

0.356 0.002

Total Weight (earats)*: 0.002 Number of Diamonds: 10

'" Total Weight (carats) was calculated from mg weighlS. An reported mg weights are weighed to within 0.002 m4:.

Selection and Description Zakia AJ Haddad Mineralogy Technician

Nore:

-zL ... /'" ,

t •. ~1t L:QlJility -COntrol

Maria Mew Diamond Selecrion Specialist

SGS Lakefield Research limiled ill aot responsible for che determiulttion of che origiu, quality or value of lIDy clillmond~ rccoverr.d. Each +35 ,"em (Tyler sieve: ... 0.420 mm) stone was individually weighed, and the -35 mesh $tona were wciJ;hed in groups.

Acc,ediled by the Standards Council v/Ca'UJda lO the ISO/IEC Gl4ide 25 sto.ndard/oT specific registered lests.

PagQ1

FROM G0LDEN MILLENIUM HEALTH FAX NO. 9052620561 Oct. as 2005 09:15PM P12

.fj c

j 2 i -o

J

Sample No. 9902

Size Distribution

5~-----------------------------------,

Cumu lative Size Distribution

11~------------------------------------~ 10

9

84--'1"-7

6

5

4

3

2 1

o+---------~~~~~~~~~~~----~ '00 1000 10000

Size Greater Than (pm)

Page 2

SGS LAKEFIELD RESEARCH LIMITED P.o. Bag 4100. 185 Com:ession Street. Lakefield, Ontario KOL 2H0

Phone: 705-652-2112 Fax: 705·652·3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION

Project: 8901.480

Client: Gold Insight Resources Ltd.

No.L Stone Dimension, mm J Waight I I X I y I z I mg I Carats I Colour I

+ 4.75 mm fraction o I I I I I 0.000000 I 1 0' 0.000 I 0.000000 ISub-Total

-4.75/ + 3.35 mm frserton o , , I I I 0.000000 I I 01 0.000 '0.000000 ISub-TataI

-3.351 + 2.36 mm fraction o I I I I 1 o.{)OOOOO I I o I C.OOQ I 0.000000 ISub-Total

-2.36/ + 1.70 mm (faction o I I I I I D.OOOOOO 1 I o t 0.000 I 0.000000 lSub-Total

.1. 70 / +- 1.18 mm fraction o I 1 I 1 1 0.000000 I I oJ 0.000 I 0.000000 ISub-Toai

-1. t B I + 0.85 mm frac:tlon o I I I I I 0.000000 I I 01 0.000 I a.Goaooo ISub-Total

-850 / + 600 pm fraction o 1 I I I I 0.000000 1 I

o • 0.000 I 0.000000 ISub-Total

I Percent I Clarity I Prellnallon I

I I

I I

I I

t I

I I

1 I

I l

LlMS No. MIOOO3·JUN05 Sample No. 9902

Sample Weight: 13.92 Kg

Stone Description Morphology

July 7, 2005

Page 1

:3: .... F ~ -

o (') ....

SGS LAKEFIELD RESEARCH LIMITED P.O. B.1g4100, 185 Concession Slloet,laIcefield. Ontario KOt 2HO

Phone: 705·652·21 L2 Fax: 705·652·3L23

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION

Project: 8901· 480

Client: Gold Insight Resou~es Ltd.

No.1 Stone Olmerwion, mm WeiQ'" I I X V z I RIg I Carats I Colour ClaritY -600 1 + 425 pm ',action

0 I , I 0.000000 I 01 0.000 I 0.000000 ISub-Tout

-4251 + 300 jim fraction 1 0.51 0.46 0.34 0.000000 011 White lransparem 2 0.40 0.29 0.34 0.000000 Yellow T ransltloenl 2 0.186 O.OOO93G Sub-Total

-300 I +- 212 pm fraction 1 0.40 0.34 0.29 (I.OOOOOO Oft While Translucent

2. 0.34 0.26 0.23 0.000000 White TransDsre'li

2 0.076 0.000380 Sub--Total

-2'21+ 160pm fraction 1 0.31 0.23 0.21 0.000000 OIfWhile Translucent

WhIte

I Percent l Preservation I

I

99+% Note 1

85% 75%

85% 85°4

LIMS No. MIOOO3·JUNOS Sample No. 9901

Sample Weight: 13.92 Kg

Stone DescrlDtion MorpholOGV

Octahedral, twinned sulfate !ragmen\, 'If!IY minor cleavages

Fragmet\t an which aysta' faces vnrecD!ll1'iZBble, minor c1eavaDes. (lilted

Fragment with Clyml Faces.lwinned. lilted. minOl deeveges Dodecahedral. twinned surface fragmsnl, VII\' minor deal/ages

rllgment wlltl Cr;slal Faces. 1)raphife Inclusions. minor cleavages

July 7.2005

2 0.26 0.23 0.22. 0.000000 Trallsparert Io~ahedral. twiM«!

3 0.34 0.31 0.16 0.000000 Gff1l Translucent Note 1 Fra;ment on whicb Cl)'Slel faDes unAl~2ab18, graphite indusions. pa11laly IroISled. signllican1 deal/ages

4 0.26 0.20 0.18 0.000000 Yellow TransluOIlnt 62.5% Dodecahedral, twinned. araphile indusiO!l$, piled

4 11.076 OJX)0380 Sub·Total

.1501+ 105 11m fraction t 0.29 0,14 0.11 0.000000 Whae T ransparenl Note 1 Fagmen\ on lIIhid'I ayalal faces unreoognizable. Yet'f minor deavages

Z 0.17 0.17 0.06 0.000000 White 'Transoarent Note 1 FUlglTlerIl an which aystaltaces unrecognilable, very minor cleavages

2 11018 O.ooooeo Sub-Total .

110 I I 0.001780 IrOTAL

Note 1: Diamond Ffagments - No Crystal Faces· Pfeservation (Aesorption) cannot be estimated.

Page 2

I

Cl n l'"'

1) -A

FROM GBlDEN MILLENIUM HEALTH FAX I'D. Oct. B5 2085 89: 17PM P1S

SGS Lakefield Research limited 1 M Concession St., Box 4300

Lakefield. Ontario KoL 2HO. CANADA

Tel: (705) 652-2112 Fax: (705) 652·3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Project: 8901 - 480 Client: Gold Insight Resources Ltd.

Mesh Fraction

+6 Ferromagnetic Non-mag

-6+20 Fenomainetic Non-mag

+150 Ferromagnetic Mal

-20+150 Ferromagnetic Non-mag (Fus. Res.)

-20+150 Paramagnetic Mag (0.3 amp)

-20+150 Diam3gnetic Mag (0.5 amp)

-20+150 Diamagnelic Non-mag (0.5 amp)

Sample Weight: 3.68 Kg Number of Syndites: 0

Date: July 7. 2005 LIMS No. MJOOO3·JUNOS

Sample No. 9908

Dissolution Residue DeseriptiOD

Not applicable

Not applicable

Not applicable

Oxides. silicates. and graphite

Not applicable

Not applicable

Not applicabJe

Total Weight (onls)": 0.000 Numbc!r of Diamonds: 0

" Total Weight (carau.) was calculated from me weight. •. All reported mg wci£lIlS are measured LO within 0.002 mg.

Note;

7-/.~· ~

Selection and Description Zalaa AI Haddad Minmdogy Tl:lChDkian

Maria MC1,ei

Diamond Selection Specialist

50S Lakefield ReSt.'3rCh Umitcd is not msponsible for fh~ d¢lermination of rbe origin, 4uaJily or value of any diamonds .'!!COvered. Each ... 35 ~m (Tyler $i~e; TCA20 nun) $lone wa.~ in.dividulilly weighed. and the ·35 mesh Itooo; were weigbc;d il'l groups. Slone dimensions am Jirniled to accuracy of thJa: dimensional measurement!> of irregul.r 'h:lpes u~ing a peuogrJpbic microscope.

Accredited by lhe Sumdards Council ofCannd4 1.0 the ISO/IE.C Guide 25 srandttrdfor jpecific r~Kilter~d U!lts.

FRCI1 GelLJ:eN MILLENIUM HERL TH FAX I'D. 91352620561 Oct. as 2005 09:17PM P16

SGS lakefield Research Limited 185 Concession St., Box 4300 Lakefield, Ontario KOL 2HO. CANADA

Tel: (705) 652-2112 Fax: (705) 652-3123

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION Projec(: 8901· 480 Client: Gold Insia:bt Resourees Ltd.

Diamond Number of Size Fradions Stones in Group

]B +4.75 mm 0 ~ '" - 4.75 1+ 3.35 mID 0 13-6

.0 .- • 3.35 1 + 2.36 nun 0 .~ :a ~ c: - 2.361 + 1.70 mm 0 u-Q'3

- L 70 I + U8 mm 0 "-ib I: .- - 1.18 I + 0.85 nun 0 g ,u tf.Ir$

0 -850 I + 600 11m

],ii -600 I + 425 pm 0 '- >...c -425 1 + 300 p.m 0 g - aD CiS ~iJ

Q~~ -300 1 +212 ",m 0 ~ .!: !t -2121 +1.50 ",m 0 1:] 0 .e-Cl -150 I +1051lm 0 tf.I

TOTAL 0

Sample Weight: 3.68 Kg Number of Syndites: 0

Date: July 7, 200S UMS No. MlOOO3-JUNOS

Sample No. 9908

Group Weight Group CarafB (mg) (~alculated)

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000 0.000

0.000 0.000

Total Weight (earats)*: 0.000 Number of Diamonds: 0

.. Total Weight (carats) was calculated from mg weights. All reported mg weights are weighed to within 0.002 mg.

SeJection and Descriprion

ZaJda Al Haddad Mineralogy Technician

Note:

~ --QUJitKontroi Marla Mezei Diamond Selection Specialist

SOS Lakefield Rescan;h Limited is noc responsible for the determination of the Origin, quality or v:uue of any diamonds recovered. Each +35 mesh (Tyler sic~e: +0.420 mm) SlOne was individually weighed. and the ·35 mesh stones were weighc::4 ill grollPll·

Accredit~d by Ih~ StQndard~ Council ojCanQda to fhl! ISOllt:C Guide 25 $laMardjo,. s(HCific rl!gtni!red zests.

Page 1

SGS LAKEFIELD RESEARCH LIMITED P.o. Bag 4300, 18S Concession Street, Lakefield, ODtario KOL 2RO

Phone: 705·652-2112 POll:: 705-652·3123

July 7,2005

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION

Project: 8901- 480

Client: Gold Insight Resources Ltd.

NoJ Stone Dimension. mm 1 Welaht • r X 1 y I z 1 rna I Carats 1 Colour I + 4.75 mm traction

01 I l I I 0.000000 , I 01 0.000 I 0.000000 ,Sub-Total

-4.751 + 3.35 mm traction a1 , I , I 0.000000 , I o. 0.000 1 0.000000 [SUb-To'"

-3.351 + 2.36 mm fraction 01 1 I I I 0.000000 , I 01 0.000 1 0.000000 lSub--Tota'

-2.36/+ 1.70mm fraeflon 01 1 I I 1 0.000000 I I (J I 0.000 1 OlmlOO ISUb--Total

-1.701+ 1.18 mm (rllerion o I I I I I 0.000001) • I o I 0.000 • 0.000000 ISub-Total

-1.18 I + 0.85 mm traction 01 I ( I , 0.000000 , , o~ 0.000 ·1 0.000000 ,Sub-Total

t Percent 1 Clarity 1 Preservation I

1 , t I

I I

I 1

I I

I I

LlMS No. MI8003-JUNOS Sample No. 9908

Sample Weight: 3.68 Kg

Stone DelcrlDtion Momholoav

Page 1

:I -r r m z

o o :+

SGS LAKEFIELD RESEARCH LIMITED P.O. Bag 4300, l8S Co1lcession Street, Lakefield, Ontario KOL 2HO

Pilone: 105-652-2112 Fax: '705-652-3123

July 7, 2005

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION

Project: 8901- 480

Client: Gold Insiglrt ltesoUKe8 Ltd.

No.1 Stone Dimension, mm I WeIGht I I PerceIIt 1 I X I Y I Z I mg I Carats ) Colour I Clarity I Prt,emtlo" I -850 1 + 600 pm frat:lton

rH I I I 1 0.000000 I I I • 01 0.000 I 0.000000 ISub-Totai -600 / + 425 pm fraction

o I I I I I 0.000000 I J I I o I 0.000 1 0.000000 (Sub-Total

-425/ + 300llm ".ctlon o I I I I I 0.000000 I , I I o I 0.000 I 0.000000 ISub-Total

·300 / + 212 pm traction o , I J I I 0.000000 1 I I I o t 0.000 • 6.000000 ISub-Totai

-2121 + 150 11m ftactlon o J 1 I I I 0.000000 I 1 I • o I IUlOO I Q.oooooo ISub-To'IIIl

-150/+ 105pm fraction o I I I I I 0.000000 • I I I 01 0.000 t 0.000000 ISub-Total

I 0.000000 IfOTAL

Note 1: Diamond Ffagments· No Crystal Faces· Preservation (Resorption) camot be estimated. -

LIMS No. MI1OO3-JUNOS Sample No. 9908

Sample Weight: 3.'1 Kg

Stone DescrtDtlon Morphology

Page 2

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o o r+

FRa1 : OOU:eN M J LLEN I UM HEfl.. TH

Gold Insight Resources Ltd. 8901-480 UMS.MIOOOl-JUN05

FAX I'D. : SlB52620561

APPENDIX C

Oct. 05 2005 09:21PM P25

Diamond Exploration $entices SGS Lakefield Research Limited

EXPLANATION OF MICRODIAMOND EXTRACTION AND SELECTION PROCEDURE AND FLOWSHEET

6

FROM Ga..DEN MILLEN I UM I-EAL TH

Gold Insight ftesources Ltd. 8901-480 UMS#MtOO03..JUN05

FAX NO. 9052620S61 Oct. es 200S 09:22PM P26

Diamond Exploration Service, SGS Lakefield Research Limited

DIAMOND EXTRACTION BY CAUSTIC DISSOLUTION

Introduction

Caustic dissolution of exploration samples efficiently produces a concentrate from which diamonds can readily be extracted during microscopic examination_ The process takes advantage of diamond's property of high resistance to caustic soda (NaOH). eliminating diamond size reduction and loss that often oCC\Jrs during extraction procedures that rely on crushing and attrition milling.

Procedure

The samples are processed according to the attached f10wsheet Very few minerals survive the harsh chemical attack, therefore weight reductions commonly exceed 99% of the initial sample weight.

Aswreceived samples are divided into squally sized charges of less than 8 kg. Smaller Charge sizes are necessary if the sample contains a high proportion of carbonate minerals, whiCh are vigorously reactive with NaOH (the carbonate content is evaluated by an acid test 'prior to charge preparation). If a high proportion of the sample is compos.ed of fragments larger than 8 em. simple breakage, crushing or attrition milling may be required for an effective dissolution, or the length of the dissolution process may be increased. Client consultation and approval is necessary before any size reduction of the sample is initiated.

After digestion in molten caustic soda, the sample is poured onto a largewdiameter 150 mesh (100 ~,m) screen. The. 150 mesh residue is liberated from the NaOH by washing the sample in a series of water and acid leach (Her) baths. Once ell of tne NeOH is dissolved and removed, the concentrate is dried and screened on a 6 mesh screen to remove undigested material. The undigested material is examined microscopically by a mineralogist If a significant amount of +6 mesh remains, or if the material consists of possible diamondiferous rock fragments, further digestion may be required. If the undigested material is of insignificant size or not considered as a possible source of diamonds. the -6 mesh residue is further processed by a two {possibly three if the residue is large) stage magnetic separation procedure utilising a permanent magnet and a Frantz Barrier Magnetic Separator.

The magnetically characterised residue is then submitted for microscopic examination and diamond selection- In addition to diamonds. the residue may contain partially undigested indicator minerals, colourtess to opaque spinel. garnet. ilmenite. graphite, moissanite, zircon and kyanite. Each of the magnetic fractions is examined at a magnification of 40x using a binocular microscope_ Grains of questionable mineralogy are examined using a scanning electron microscope equipped with an energy dispersive spectral (SEM·EDS) analyser. Although each magnetically characterised fraction is examined. particular emphasis is given 10 the diamagnetic portion.

The X, Y and Z dimensions of selected microdiamonds are measured in millimetres_ Macrodiamonds are weighed individually while microdiamonds are weighed in groups of 20 or 30. with the milligram weight. in each case, converted to carats_ The colour, clarity and morphology of each diamond are determined and all observations reported in a Certificate of Analysis. SynthetiC diamonds released into a sample by diamond drill bits are selected and reported as "syndites" on the diamond description sheet.

7

FRfJ'1 GaLIEN MILLEN J UM t-EAL TH

Gold Insight Resources Ltd. 8901-480 lIMSIUIO003.JUN05

Quality Control

FAX I'D. 9B52620561 Oct. 05 2005 139: 20PM P23

Diamond Exploration Services SGS Lakefield ReseatGh Limited

Routine Quality control tests are utilized to evaluate the efficiency of the caustic dissolution processing technique. by spiking client samples with two sizes (35 mesh and 80 mesh) of synthetic diamonds (easily identifiable, colour treated diamond fragments. Recovery of the diamond spikes typically ranges from 97 to 100%, and for 2004 was 91.3%. Further, 2002 statistics showed that an average of 1.18 indicator mineral grains (73% of whiCh were oxides, 27% silicates) were carried over into the caustic soda blanks run between different client's samples.

Each caustic dissolution residue is picked twice by separate diamond pickers. Questionable grains are examined by SEM-EDS for verification.

Every effort is made at each stage of sample handling during caustic dissolution, residue preparation and diamond picking to eliminate the possibility of contamination. These steps include:

• A rigorous sample tracking procedure.

• Dedicated screens and equipment for each semple during sample processing.

• Replacement of screens between each sample after pouring caustic sOda.

• Thorough washing and scrubbing of all sample containers.

• Thorough cleaning of equipment used to prepare caustic residues between each

processed sample.

• Sandblasting of each kiln pot between clients projects to ensure the removal of any microdiamonds or indicator minerals.

Customized flowsneets for sample processing utilising caustic dissotution and other sample preparation techniques (magnetic. gravity, flotation, acid leaching, etc.) can be developed. in consultation with the client. to meet specialised requirements.

SGS Lakefield Research Limited is not responsible for the determination of the origin. quality or valuation of any diamonds recovered unless otherwise instructed by the client.

8

FRCr1 : GBLIX:N MILLEN I UM HEALTH

Gold Insight Resoutc:es Ltd. 8901-480 LIMSNIO003.JUN05

FAX t-ll. : 9052620561 Oct. B5 2005 B9:21PM P24

Diamond Exploration Services SGS Lakefield Research Limited

Caustic Dissolution for Microdiamond Recovery

[

SAMPLE PREPARATION (as instructed by client.

Includes dryjn91

DISSOLUTION (Molten NaOH)

1 Collect Residue

150 mesh screen)

WATER WASH AND ACtO LEACH RESIDUE

1

DRY AND REMOVE FERROMAGNETICS

FRANTZ MAGNETIC SEPARATION

1 MICROSCOPE EXAMINATION

DIAMOND SELECTION

9

J