43B12NW2009 2.24993 BMA 526 834 010

DEBEERS De Beers Canada Exploration Inc

993

REPORT ON A GRAVITY SURVEYCONDUCTED OVER THE INDIA-l KIMBERLITE,

ATTAWAPISKAT AREA, ONTARIO

CLAIMS: P1052294, P1052306, P1052307, P1227240, P1246001, P1246002, P1246003, P1246004, P1246005

Doug Winzar and Justin Ward

10 th February, 2003

KEYWORDS: Geophysics, Gravity Survey, Attawapiskat, India-1 Kimberlite

RECEIVEDFEB 1 1

GEOSCIENCE ASSESSMENT

SUMMARY

De Beers Canada Exploration Incorporated conducted a ground gravity survey over the India-l kimberlite. Unstable ground conditions prevented the collection of high quality data.

Two small gravity high anomalies correlate tenuously with the India-1 kimberlite. This may reflect local increases in density of the kimberlite. However, the magnetic response, and to a lesser extent, the electromagnetic response, appears to define the kimberlite country rock contact much better.

11

TABLE OF CONTENTS

l.O INTRODUCTION . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . l1.1 Location and Access.................................... l1.2 Property........................ .. . . . . . . . . . . . . . . . . . . . . . l1.3 General geology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 21.4 Previous Work . . . . . . ................ . . . . . . . . . . . . . . . . . . . . 2

2.O GRAVITY SURVEY . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.1 Survey Team And Period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 42.2 Survey Instrumentation and Method . . . . . . . . . . . . . . . . . . . . . . 42.3 Survey Specifications . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 52.4 Data Acquisition . .. . ............. . . . . . . . . . . . . . . . . . . . . . . 52.5 Data Processing . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 62.6 Survey Results . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

3.O EXPLORATION EXPENDITURES ................................ 74.O CONCLUSIONS AND RECOMMENDATIONS ......................... 85.O REFFERENCES ............................................. 9

LIST OF FIGURES

Figure: l Project Location Map ............. . . . . . . . . . . . . . . . . . . 3

LIST OF MAPS

Map: l Claim Location Map Back PocketMap: 2 Bouguer Gravity Contour Map Back PocketMap: 3 Bouguer Corrected Reading Map Back Pocket

111

1.0 INTRODUCTION

This report describes the specifications and results of a ground gravity survey conducted over the India-l kimberlite by De Beers Canada Exploration Incorporated.

1.1 LOCATION AND ACCESSThe Survey crew and equipment were flown from Timmins to Attawapiskat on a Commercial Aviation Piper Navajo charter Aircraft. Canadian Helicopters then flew the crew from Attawapiskat to the De Beers Victor Project camp 90km west of the First Nation community of Attawapiskat using an A- star helicopter. See Figure l on page three for the project location.

The India-1 kimberlite is located approximately 20km south- southeast of camp and the crew was transported to and from the site using the A-star helicopter.

l. 2 PROPERTYThe India-l kimberlite property consists of nine unpatented, contiguous mining claims listed below:

Claim No. Number of Units Date Recorded1052294 l 1988-02-231052306 l 1988-02-231052307 l 1988-02-231227240 l 1998-10-261246001 16 2001-01-111246002 16 2001-01-111246003 12 2001-01-111246004 4 2001-01-111246005 12 2001-01-11

The spatial distribution of the claims can be seen on Map l in the back pocket. The core claims were originally acquired in 1988 while investigating magnetic anomalies in the area, which led to the discovery of the India-l kimberlite. During a 10-year hiatus in exploration several peripheral claims were abandoned. In 1998 prior to renewed exploration on the Attawapiskat kimberlite cluster one

claim was added to this property. Further claims were acquired in 2001 to secure more ground because of the growing interest in the area due to ongoing work at the Victor kimberlite. De Beers Canada Exploration Inc. One William Morgan Drive, Toronto, Ontario, M4H 1N6 is the recorded holder of 100% interest in the claims.

1.3 GENERAL GEOLOGYThe property is located in the northwest part of the Moose River Basin on the southeast flank of the Cape Henrietta- Maria Arch. Approximately 275 metres of Palaeozoic sedimentary rocks cover the basement geology. At surface the area is underlain by the Attawapiskat formation, which consists of limestone with bioherm structures. The kimberlite intrudes both the Achaean basement and Palaeozoic rocks. Based on the ages obtained on nearby kimberlites it is estimated that the India-1 kimberlite is Jurassic in age.

The stratigraphy of the overburden based on work at Victor consists of l to 3 metres of organic soils followed by several meters of clay with fragile white marine shells, coarsening upwards to near shore silts and fine sands with remnants of shallow water vegetation (reeds). Below the clay a one to three meter compact till is preserved on top of the bedrock.

1.4 PREVIOUS WORKA fixed wing total intensity and vertical gradiometer magnetic survey was carried out over the area in 1987. This survey defined several magnetic anomalies, which were staked. The anomalies were followed-up by ground total intensity magnetic surveys and the nature of the source of the anomalies was determined by drilling. The India-l anomaly was drill tested in 1988 and proved to be a kimberlite. During 2002 a helicopter magnetic and electromagnetic survey was flown over the kimberlite in an effort to better define the kimberlite by measuring it resistive/conductivity properties.

97'0'0-W 87'0'0'W 77'0'0-W 87'OTrW 54'0'0-N

97'0'0'W 87*0'0"W 77-0'0'W

Figure: l Project Location Map

2.0 GRAVITY SURVEY

The purpose of the survey was to acquire high quality gravity data to determine if the kimberlite has a gravity signature to aid in defining the boundaries of the kimberlite prior to delineation drilling of the intrusion.

2.1 SURVEY TEAM AND PERIODThe survey was supervised and conducted by Jus t in Ward, De Beers Canada Exploration Inc., Unit#4, 2555 Maley Drive, Sudbury, Ontario, P3A 4R7 assisted by Maiko Sell. The survey was carried out from December 2nd to December 9th , 2002. The survey lines only covered a portion of the four core claims (P1052294, P1052306, P1052307, P1227240) .

2.2 SURVEY INSTRUMENTATION AND METHODThe gravity survey was conducted with a Scintrex CG3 Autograv gravity unit in conjunction with a Trimble 5700 Total Station real time kinematic global positioning system. The Trimble system collects accurate position and elevation information required for data correction. The table below lists the instrument specifications.

Gravity SystemManufacturer: Scintrex Ltd Model: CG-3 Autograv Accuracy: 5 microGal

Differential GPSManufacturer: Trimble Navigation Limited Model: Total Station 5700 Type: 24 Channels LI C/A Code, L1/L2

Full Cycle Carrier

Accuracy: Real Time Kinematic Survey Mode* Horizontal: 10 mm + I ppm of baseline

length U500m)* Vertical: 20 mm + l ppm of baseline

length

Cycle Rate : l second update

For this survey the GPS base station was set-up on top of claim 1227240 post #4 near the India-1 kimberlite body. Coordinates for that position are in WGS 84, Zone 17N:

Easting: 310326 mE Northing: 5837083 mN Elevation 49.56 m (HAE)

All gravity station locations were subsequently recorded relative to the base station using the Real Time Kinematic (RTK) GPS unit.

Several days were then spent calibrating the equipment before the crew started the survey.

2.3 SURVEY SPECIFICATIONSThe gravity survey was conducted along 400 metre long east-west lines perpendicular to the long axis of the kimberlite with readings taken at 12.5 and 25 metre intervals. A total of five lines were completed for a total of 2.82 kilometres of survey lines covered and 129 readings taken.

2.4 DATA ACQUISITIONUnfrozen ground conditions reduced the quality of the gravity data considerably. The thick (one to three metre) layer of water-saturated muskeg underlying the property is very unstable causing the gravity instrument, which is sensitive to any movement to produce readings with a large systematic error. Readings were averaged over a longer period of time in order to compensate for this effect. Hence the efficiency of the survey was reduced. Stable, frozen ground conditions are required to take accurate, repeatable readings.

2.5 DATA PROCESSINGThe gravity data was processed using the Oasis Montaj software package developed by Geosoft Inc. The raw gravity data was reduced using the Xcelleration software package. Drift, free-air, latitude (1984) 6c Bouguer corrections were applied to the data. The gravity values have not been adjusted to the gravity reference field.

2.6 SURVEY RESULTSThe gravity survey covered the southern two thirds of the India-l kimberlite. See Map 2 and 3 back pocket. The large broad gravity low may represent a sinkhole, while the gravity high within it loosely correlates with the southern lobe of the kimberlite. There is no obvious kimberlitic response between the northern and southern portion of the kimberlite. In this case, because of the reduced quality of the data the magnetic and electromagnetic surveys better delineates the body.

3 .0 EXPLORATION EXPENDITURES

The following expenditures were incurred during the gravity Survey:

Exploration Expenditures

1) Survey Costs Total1-Permanent Staff $ 2,550l-Temporary Staff $ 1,000Rental of Gravimeter $ 1,200Total $ 4,750

Unit Cost

36.82 $/reading 1,684 $/km

2) Transportation Costs for SurveyA-Star helicopter4.5 hours @ l,100$/hr $ 4,950 1,100 $/hour

3) Food and Lodging CostsTwo men for seven days@ 400$/day $ 5,600 400 $/man/day

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

2-Navajo flights Timmins-Attawapiskat, return $ 5,0002-Helicopter trips Camp-Attawapiskat return2 hrs @ 1,100 $/hr $ 4,400Travel Costs Torontoto Timmins return $ 2,OOPTotal - $ 11,400 5,700 $/Inan

GRANDTOTAL $ 26,700 207 $/reading

4.0 CONCLUSIONS AND RECOMMENDATIONS

Two small gravity high anomalies correlate tenuously with the India-l kimberlite. This may reflect local increases in density of the kimberlite. However, the magnetic response and, too a lesser extent, the electromagnetic response, appears to define the kimberlite much better. During future gravity surveys it is recommended that the survey be conducted in the middle of the winter when the muskeg is frozen in order to obtain better quality data.

Doug Winzar Geologist

Justin Ward Geophysicist

11 February 2003

5 . O REFFERENCES

Facey-Crowther R. 1988, Report on a Magnetic Survey, Anomaly"Grid I-l", Block M3B/12-04" NTS 43B/12, Assessment Work Report.

Facey-Crowther R. 1988, Diamond Drill Hole Log on Grid 1-1, Assessment Work Report.

Acheson K. 1999, Magnetic Survey Conducted Over India-1Kimberlite, Attawapiskat Area, Ontario, Assessment Work Report.

Winzar D. 2002, Magnetic and Electro-magnetic Survey Conducted Over The India-1 Kimberlite, Attawapiskat, Ontario, Assessment Work Report.

Statement of Qualifications

I __Justin Leigh Ward___ the undersigned attest that I am a graduate geophysicist (Honours) from Monash University, Melbourne, Australia and that I have practised my profession for 6 years.

I have no vested interest in the property

I reside at 29 Boland Avenue, Sudbury, Ontario P3E 1X8

The work was performed using the best business practices of the industry.

Signed the ICT^ofFebruary, 2003

10

ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Transaction No:

Recording Date:

Approval Date:

Client(s):

171748

Survey Type(s):

W0360.00239

2003-FEB-11

2003-MAY-06

Work Report Summary

Status: APPROVED

Work Done from: 2002-DEC-02

to: 2002-DEC-09

DE BEERS CANADA EXPLORATION INC.

GRAV

Work Report Details:

Claim*

P

P

P

P

P

P

P

P

P

1052294

1052306

1052307

1227240

1246001

1246002

1246003

1246004

1246005

Perform

313,187

34,396

32,279

56,838

SO

SO

30

SO

30

326,700

External Credits:

Perform Approve

S13.187

34,396

S2.279

36,838

SO

30

SO

30

SO

326,700

SO

Applied

3400

S400

S400

SO

34,880

34,880

34,420

31,280

53,600

S20.260

Applied Approve

3400

S400

3400

SO

54,880

54,880

54,420

51,280

33,600

520,260

Assign Assign Approve Reserve

S10.800 10

S2.600 2

5600

55,060 5

SO

SO

50

50

50

,800

,600

600

,060

0

0

0

0

0

519,060 S19.060

31,987

31,396

51,279

51,778

50

SO

SO

SO

SO

56,440

Reserve Approve

S1.987

51,396

51,279

51,778

SO

SO

SO

SO

SO

S6.440

Due Date

2004-FEB-23

2004-FEB-23

2004-FEB-23

2008-OCT-26

2004-JAN-1 1

2004-JAN-11

2004-JAN-11

2004-JAN-1 1

2004-JAN-1 1

Reserve:

36,440 Reserve of Work

S6.440 Total

Report*: W0360.00239

Remaining

Status of claim is based on information currently on record.

43B12NW2009 2.24993 BMA 526 834 900

2003-May-08 16:30 Armstrongjd Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date: 2003-MAY-06

Ministers duDeveloppement du Nord et des Mines Ontario

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

DONALD R. BOUCHER 2555 MALEY DRIVE UNIT 4SUDBURY, ONTARIO P3A4R7 CANADA

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

Dear Sir or Madam

Submission Number: 2.24993 Transaction Number(s): W0360.00239

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.

Thank you for replying to the 45 day notice that was issued on February 20, 2003. The documents supporting the costs of S400 per man day for food and lodgings were reviewed. A few points are being brought to your attention for future assessment work filings.

The costs associated with any work program must be job related. Certain costs reported do not appear to have any bearing on the gravity survey. For instance, there does not appear to have been a need for truck drivers for the program yet the cost was calculated in the daily rate. Other items such as the purchase of ATV's are not eligible expenses on any type of assessment work filing. The rental of satellite T.V. is another expense not eligible for credit on any program even though it provides entertainment for the crews on a daily basis.

We understand that working in a remote area of the province is a very expensive venture however any costs associated with assessment work filings have to be reasonable so that they can be justified to your colleagues in the industry. A list of expenses that are not eligible for credit is available on our Internet under the Assessment Work section. You may wish to review the list for future submissions.

The cost of this submission has not been reduced, however, any future submissions may be reduced.

If you have any question regarding this correspondence, please contact LUCILLE JEROME by email at lucille.jerome@ndm.gov.on.ca or by phone at (705) 670-5858.

Yours Sincerely,

Ron GashinskiSenior Manager, Mining Lands Section

Gc: Resident Geologist Assessment File Library

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:18254

Ministry of Ministere duNorthern Development Developpement du Nordand Mines et des Mines Ontario

Donald R. Boucher De Beers Canada Exploration Inc. (Agent) (Claim Holder)

De Beers Canada Exploration Inc. (Assessment Office)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 2 Correspondence 10:18254

43B12NW2009 2.24993 BMA 526 834 200

ONTARIOCANADA

MINISTRY OF NORTHERN DEVELOPMENT AND MINES

PROVINCIAL MINING RECORDER'S OFFICE

Mining Land Tenure Map

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Those wishing to stake mining daims should consult with the Provincial Mining Recorders' Oftico of the Ministry of Northern DovolopmDnt and Minos for additional Gsnerat Information and Limitations This map may not show unregistered land tenurs and interests ininformation on the sttntusof Hit* ianda shown h(*roon. This map la not intended for navigational, survery, or land title determination purposes as the information Contact Information; Toil Free Map Datum; NAD 83 : land including certain patents, laHSws, easements, right of ways,shown on this map is compiled from various sources. Completeness and accuracy are not guaranteed. Additional information may aiao be obtained through the Provincial Mininq Recorders' Offico Tol: 1 (888)415-0845 ext STW&jection; UTM (6 degree) flooding rights, licences, or other form* of disposition of rights andlocal Ltmcl Titles or Registry Office, or tho Ministry of Natural Resources. wHI Bt GrHen Miller Centre 933 Ramsey Lake Road Fax: 1 (877) 670-1444 Topographic Data Source: Land Information Ontario (morest from the Crown. Also certain land tenure and land urns.

Sudbury ON P3E 6B5 Mining Land Tenure Source: Provincial Mining Recorders' Office *at restrict or prohibit free entry to stake mining dalmsmay not boThe information shown is derived from digitai date available in the Provincial Mining Recorders' Office at the time of downloading from the Ministry of Northern Homo Page; www.mndm.gov.on.ca/MNDM/MINES/LANDS^mismnpge.hlm Illustrated. Development and Minos web situ,

Date l Time of Issue: Thu Feb 20 14:19:34 EST 2003

TOWNSHIP l AREA PLAN BMA 526 834 AREA G-3852

ADMINISTRATIVE DISTRICTS l DIVISIONS

Mining DivisionLand Titles/Registry DivisionMinistry of Natural Resources District

Porcupine KENORA COCHRANE

TOPOGRAPHIC

Administrative Boundsrlea

f" '"'\ Township

^ '. Cuncetisiuri, Lut

IE Provincial Park

|v ' | indian Reaerw

i"' : Cliff, Pit * Pile

r

4

Contour

Mmn S hails

Mine HoodTrnmo

RflilwEiy

Road

Trait

Natural Ows Pipaiitia

Land Tenure

FrBehato Patent

al

Surfaw And Mining Riahte

Surface Rights Onry

Mining Riyhts Only

nit

Surfnw And Mining Rights

Stirfsc* Rights Only

Mining Hlghli Oniy

o of Occupation

Uses Not Spotted

Surface And Mini

Surtncflt Rights Only

Mintng Righti Only

Land U*e PgriTiil

Order Irt Council (Not open for B

Wfltar Power Lease Agre&mant

Mining Claim

Filed Only Mining Claim*

LAND TENURE WITHDRAWALS

1234 'if ArwiB Wlttidrawnfrom

Mining ActsWttidrawa Wsm Syrtac* And Minina Rigtiit Ws Surfooe Rtflhla On!v Withdrawn Wm Mining Rictus Orfiy Wittourwn

Onter in Council Withdrawal TypesW*S(D Suriac^i Am Mirfina Rights WilhdraiwiW'V Surface Rights Only WHharawnW^m Wlnlnfi R^te Only Withdrawn

IMPORTANT NOTICES

Sctl* 1; 244*8

309600 i

309700 l

309800 l

309900 i

310000 310100 3102004

310300 l

310400 l

310500 310600

Legend

0.005 mGal Contour Interval

Reading Locations

Kimberlite Body

DBCEI Claims

fi

0.1 0.2 km

DE BEERS CANADA EXPLORATION INC.

MAP 2

Bouguer Gravity Contour Map

WGS84, Zone 17

Author: DRB

Drawn By: ACB

1:2,500

NTS:43B

Date: 10/02/03

Revised Date:

Hie Name: India-assesment-2003-map2310400 310500 310600 310700 310800 310900

310900

. .1 9 9 9 9 9 o ,

Legend

Reading Locations

Kimberlite Body

DBCEI Claims

rti

0.1 0.2 km

DE BEERS CANADA EXPLORATION INC.

MAPS

Bouguer Corrected Readings Map

Projection: WGS84, ZOfUJ 17

Author. DRB

Drawn By: ACB

Scale: 1:2,500

NTS:43B

Date: 10/02/03

Revised Date:

File Name: India-assesment-2003-map3

309600 309700 309800 309900 310000 310100 310200 310300 310400 310500 310600 310700 310800 310900