REPORT PREPARED FOR

1179785 ONTARIO LIMITED

ON

MECHCANICAL TRENCHING

CLAIM 1166848, ZARN LAKE AREA,

KENORA MINING DIVISION

a a

August 26, 2003

JOHN WAKEFORD, P. GEOL

RECEIVEDAUG 2 9 2003-

GEOSCIENCE ASSESSMENT ______OFFICE

PROVINCIAL/RECORDINGor K i r: t - SUDBURY

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52J04SE2003 2.26181 ZARN LAKE 010

Summary

A trenching program was completed on daim number 1166848, Zarn Lake Area,Kenora Mining Division Map Sheet G-2277, during the period August 14, 2003 through August 26, 2003. Additional sampling is in progress and wiil be reported at a later tfme. Trenching exposed a series of sulphide bearing quartz veJns near the former Alcona Gold Mine. Trenching was completed to expose the veins to accurately determine orientation, size and mineralization present.

Property Location and Access

Access is good to the claims. The claim trenched is located in the Zarn Lake area, Kenora Mining Division, near the town of Sioux Lookout in northwestern Ontario. The claims are accessed by an all 6 km gravel road extending from the paved highway f 8km east southeast of Sioux Lookout. The CNR railway parallels the paved highway. Property location is shown on figure 1.

REGIONAL GEOLOGY

The Kenora District is entirely underlain by Archean (i.e. greater than 2.5 billion year old) rocks of the Superior Province of the Canadian Shield. These basically fall into four categories which are generally distinguished by the subprovince in which they occur. From north to south, these are:

. English River Subprovince rocks, north of the Winnipeg RiverSubprovince, which are predominantly sedimentary and minor intrusive rocks. Rocks of trie Separation Lake greenstone belt, located within this subprovince, host the rare-metal pegmatite deposits of the Separation Rapids pegmatite field. This fieW is currently being explored and has the potential to host worfd-dass petalite deposits. Other commodities contained wHhin the pegmatites include: tantalum; cesium; rubidium; beryllium and high-purity feldspars;

* Winnipeg River Subprovince rocks, north of Ihe WabigoonSubprovince, which are generally highly metamorphosed gneissic rocks- The Lount Lake batholith, located within this Subprovince, is host to three producing granite quarries This batholith, which covers approximately 1600 so,, km., has the potential to host additional granite deposits;

. Wabigoon Subprovince rocks, underlying most of the District, which are narrow, generally east or north-northeast trending belts of mixed volcanic, intrusive and sedimentary rocks-the so-called "greenstone" bells- separated by large intrusions of generally granitic rock. The majority of historical gold producers are hosted within the Wabigoon subprovince Several advanced gold projects such as Nuinsco's Cameron Lake Deposit, Teck Exploration and Corona Gold Corp.'s joint venture Thunder Lake Deposit, and Falconbridge's Kenbridge Ni-Cu deposit are hosted within the western Wabigoon's supracrustal rocks. Phases of the large granitic batholiths which separate the greenstone baits are host to producing and past-producing granite quarries. Other commodities produced within this subprovince include: soapstone, railway ballast, quartz and peat; and

* Quetico Subprovince rocks, south of the Wabigoon Subprovince, which are predominantly sedimentary and minor intrusive rocks similar to those occurring in the English River Subprovince.

The New Millennium properties all fall within the Wabigoon Subprovince rock units. Figure 3, taken from the Ontario Resident Geologist website illustrates the regional geology of the Kenora District.

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Figure 3Regional Geology Kenora Region

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PROPERTY DETAILS

The property area is underlain by a sequence of mafic flows, mafic

volcan!elastics, tuffaceous units and metasediments. These units have been

intruded by a series of mafic to felsic intrusive porphyries and dikes. The general

stratigraphic trend is north-south with a persistent foliation trending northeast-

southwest. Shearing were present is along the same genera! northeast-

southwest orientation. An earlier more felsic quartz porphyry set of dikes

predates the mineralization and deformation. A later set of mafic and

lamprophyre dikes postdate the mineralization but have been deformed. Quartz

veining accompanied by iron rich carbonization (ankerite) and sericite alteration

has been emplaced along some of the stronger shear zones.

The main area of interest on the claim is the former Alcona Gold Mine.

Alcona Gold Mine

An underground shaft to a depth of 325' evaluated the Alcona deposit with levels

cut on the 180 and 305-foot level The mine was active from 1936 and 1937 at

wnich point operations were suspended lo " conserve the companies funds

during the market depression'. Veins occur in fractures and along shear zones

dose to the contact with a massive andesite and distinctive porphyritic basalt.

The porphyritic basalt can be seen proximal to the veining, alteration and

shearing as far to the north as 700 meters away. Veins vary in strike (0920 to

130") and dip (22"to 880 south. Quartz is grayish white in colour and contains

variable amounts of pyrite, chalcopyrite, sphalerite, galena and bornite. Veins

and associated shearing lend to be narrow with the largest noted in current

trenching of 1.1m. Sulphides can occur as disseminated grains and narrow :

massive stringers. Historical records on the Number 1 vein record a width ofi

22"(0.6m) grading 0.5 oz Au/ton (17 gm Au/tonne). The Number 2 vein averages '

0.28 oz Au/ton over 18.5" (9.6 gm Au/tonne over 0.5m). The Number 2 vein is \

occurs 50' south of the Number 1 vein. Only the Number 1 vein is currently

exposed. Additional veins vary in width to 80" (2.0m) and carry variable amounts -

of gold mineralization. Two main trench areas have exposed what is likely the i

extension of the Number 1 and/or the Number 2 veins a further 600 meters to the i

north. Generally these trench areas are grown in and rt is difficult to accurately c

measure and sample veins. In 1991 Cream Silver Mines and Valerie Gold l

Resources were involved m a joint venture on a portion of the current property. '

The partners completed a program of geological mapping and drilled 6 shallow [r

and widely spaced diamond drill holes over a larger claim group. The holes were \c

all drilled immediately northeast of the underground workings. Cumulative [

footage for the program was 1075 feet (327m).

All holes encountered significant gold values but over narrow width, the best

being 0.43 oz Au/ton over 2.3' (14.8 gm Au/tonne over 0.7m). The partners ;.c

concluded that they had "identified several features which are indicative of a

promising geologic environment for economic mineralization. The ... property

shows good potential and further work is recommended.* The operators went on

to recommend a two-phase exploration program totaling S230,000 consisting

largely of drilling.

Current Trenching Program.

Trench location is indicated on Figure 4

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Figure 4. CLAIM 1166848 WITH TRENCH LOCATIONS

Four trenches were completed in august 2003. The trenches were dug using a

track-mounted backhoe. Bedrock exposures were washed with a Wajax fire

pump. Some additional clearing by hand was required to complete the trenches.

Sketch maps were prepared to evaluate sample requirements. Trenching

exposed a complex series of sheared mafic volcanic rocks quartz porphyry and

numerous sulphide bearing quartz veins Sulphides noted include chalcopyrite,

pyrite and galena. Sulphides occur in quartz veins and to a lesser extent within

sheared wallrocks. Sheared wallrocks tended to be deeper weathered and not as

svell exposed as veining. The depression, in trench "B' may be deeply weathered

sheared wallrock. Two trenches were dug on the central vein immediately

southeast of the shaft and two trenches v/ere put in on the Number 1 and

Number 2 veins immediately northwest of the shaft. All trenches encountered

mineralized veining and sheared mineralized wallrock. Five maps are included

with this report, a trench location map, and map of each trench. Trench lengths

and depths are outlined below.

TRENCH

A

B

C

D

Totals

TARGET

Central vein

Central Vein

Number 1 8, 2 Veins

Number 1& 2 Veins

LENGTH A DEPTH

16m, 1-2 m deep

60m, 1-5+m deep

22m, 1-2 m deep

20m, 1-2 m deep

118 meters

Personnel working on the project induded:

Joe Riives, Prospector Dryden, 1 day

Sherridon Johnson, Prospector, Dryden, 6 days

Kevin Proudy, Prospector, Dryden, 5 days

Supervision and program design completed by John Wakeford, P. Geo.

Stripping was completed by Mike Aitken Trucking of Dryden , ~T~ ' kr -a "1 *-

RECOMMENDATIONS

Based on presence of mineralization and veining a program of sampling should

be completed. Sampling should evaluate the veining and mineralized sheared

mafic volcanics separately to determine if wallrocks contain appreciable gold.

Estimated cost of the program is as follows:

ITEM

Mapping

Sampling S

Assays

Report

Total

UNITS

3 days

75samples

1 day

UNIT COST

wooS25

S400

TOTAL

S 1200

12000

S400

S3600

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Certificate of Qualifications

John Wakeford, P Geo.

i John Wakeford residing at 724B Kingston Road, Toronto, Ontario,

acknowledge that:

- l am a professional geoscienlist as designated by the Association of

Professional Geoscientist of Ontario

- l have obtained a B.Sc. from the University of Waterloo, Ontario in 1979

- l have been continually practicing as a geologist for the past 24 years

ONTMUO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Transaction No: W0330.01346Recording Date: 2003-AUG-29

Approval Date: 2003-SEP-05

Work Report Summary

Status: APPROVED

Work Done from: 2003-AUG-15

to: 2003-AUG-26

Client(s):400705

Survey Type(s):

1179785 ONTARIO LIMITED

PMAN PTRNCH

Work Report Details:

Claim*

Perform Applied Assign ReserveClaim* Perform Approve Applied Approve Assign Approve Reserve Approve Due Date

PA 1166848 34,456 34,456 33,000 33,000 30 O 31,456 31,456 2004-MAR-02

34,456 34,456 33,000 33,000 30 SO 31,456

External Credits:

Reserve:31,456 Reserve of Work Report*: W0330.01346

31,456

31,456 Total Remaining

Status of claim is based on information currently on record.

52J04SE2003 2.26181 ZARN LAKE 900

2003-Sep-11 09:31 Armstrong_d Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date: 2003-SEP-08

Ministere du Developpement du Nord et des Mines Ontario

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

1179785 ONTARIO LIMITED SUITE 404, 347 BAY STREET TORONTO, ONTARIO M5H 2R7 CANADA

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

Dear Sir or Madam

Submission Number: 2.26181 Transaction Number(s): W0330.01346

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.

If you have any question regarding this correspondence, please contact PIERRE DESCOTEAUX by email at pierre.descoteaux@ndm.gov.on.ca or by phone at (705) 670-5858.

Yours Sincerely,

Roy DenommeActing Senior Manager, Mining Lands Section

Gc: Resident Geologist

1179785 Ontario Limited (Claim Holder)

Assessment File Library

1179785 Ontario Limited (Assessment Office)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:18631

ONTARIOCANADA

WHtSTRY OF NORTHERN

raoviNcuu. WNIHOMOOHDHra OFFICE

Mining Land Tenure Map

595000E

SSSOOOON 5550000N

5MSOOON

Thoea *l*lng to data mining claims should consul! with the Provincial Mining Recorders' Office of the Ministry of Northern Development and Minos for additional General Information and Limitations This map may not dhow unraglttared land tenure tind Intsrerts InInformation on the status of the lands shown hereon. Thin map l* not Intended for navlflational, survey, or land title determination purposes as the Information contact Information: * Toll Frea Map Datum: NAD 63 land Including certain patents, teases, easernente, ficht of ways,shown oft tNs map K compiled from various sources. Completeness and accuracy are not guaranteed. Additional Information may aHo be obtained through the Provincial Mining Recorders' Office Tel: 1 (888) 415-9848 ert 57iti|ortlon: UTM (6 dojroe) doedng rights, license*, of other form* of disposition of rishts andlocal Lend Titles or RejIXry Office, or the Ministry of Natural Resources. Willet oreefl Miller Centre 633 Ramsey Lake Road Fax: 1 (877) 670-1444 Tofrogmphlo Dete Source: Land Information Ontario Interest from Ihe Crown. Also certain land tenure and (and uses

Sudbury ON P3E 8BS Mlnln j Land Tenure Source: Provincial Mining Recorders' Office thf "J8trtcl OT Prohibit fres entry to atake mining dalrm may not beThe information shown Is derived from digital date available In the Provincial Mining Recorders' Office at the time of downloading from the Ministry of Northern Hortl. Pa ^K nww.mndm.gov.ori.MA^NDMrtHINeS/LANBS/mlsmnpge.hlm Illustrated.^a-jnli* mont amt MinA* wi^i *1M

Date; Time of Issue: Fn Sep 05 09:56:32 EOT 2003 TOWNSHIP l AREA PLAN ZARN LAKE AREA 6.2277

ADMINISTRATIVE DISTRICTS l DIVISIONS

Mining DivisionLand Titles/Registry DivisionMinistry of Natural Resources District

Patricia KENORA SIOUX LOOKOUT

TOPOGRAPHIC

i l Administrative BamdarlBt[ v """j ToWTiShip

f ""1 Concession, to*

Utnd Tenure

fi

i.

Indian R

Cliff, Pit i Pile

Contour

MneShaflt

Mine Hnadlrarw

Railway

Road

,........ Natural Se. Pipsllna

....., utliiles

^. Tower

r*I"j Surface And MMngRtghls

{'•Si SuiAics Rights OnlyIfjn MlnWBRistllsOnly

BurMcs Ant Mining HlghHi

r'^'l M.nlno Rflnts Only

Ucenotof Occupalion

m m

lift! Not SptcM

Surface And Mmmj Rlgrilt

Surface Right. Only

Mining Rigltts Only

draa In Council (Not open fer tttUngl

Watffi Powsr leass Aoeifisnt •---, MWiuCWW

Wed Onty Mnmj Claims

UNO TENURE WITHDRAWALS

Mining Acts wnndrewei Turn Won Sarhcs Aw Mining RliMBWitniln

Onto, in Council Withdrawal Typesw;sm

W'm Mining WflhUOnl!

IMPORTANT NOTICE

Hals 1:4IMa

LAND TENURE WITHDRAWAL DESCRIPTIONSIdentifier Type Dete Description

940 W.8S/77

Wwi Ws

Jan 1, 2001 PUBUIdANDS ACT 2S/11/M S.R.O. Jan 1,1880 SB.43/70W.85/77 2^11ffT.8.R.O. 418B9

52J04SE2003 2.26181 ZARN LAKE 200