XY

Report on

Stripping and Packsack Drilling Program,

Mephisto Marble Property

Mayo and Cashel Townships, Ontario

July and August, 1997

Septembers, 1997

Prepared By:

Upper Canada Stone Company Ltd.

31F04SE0003 2.17876 MAYO 010

Property Description and Access

During the Summer 1997 Exploration Program, the Mephisto Marble Property consisted of 2 unpatented mining claims in Mayo Township: SO 1195054 and SO 1195055, and 3 unpatented mining claims in Cashel Township: SO 1195052, SO 1195053 and SO 1195159, totaling approximately 100 hectares.

Property access can be achieved by automobile north from the settlement of Gunter along the Cashel Lake road.

Property Geology

Cursory prospecting and local bulldozer stripping and pack sack drilling have exposed a white to off white, fine to coarse grained calcite marble with localized graphitic lenses and clastic impurities. The marble unit appears to strike approximately 180 degrees and dip steeply to the east. Outcrops of well- banded amphibolite have been noted outside the property boundary to the west.

Bulldozer Stripping and Pack Sack Drilling Program

Areas to be prospected and sampled by packsack drill holes were stripped using a CAT D6 Bulldozer.

Fifty (50) vertical packsack drill holes were drilled using a Mall Tool Company Pack Sack Drill and 7/8" ID diamond drill bit in five trench areas. Hole locations are plotted on Figure l in relation to stripped areas and claim boundaries. Each hole was drilled to a depth of between 8" and 2 ft., which was sufficient to clear the weathered horizon on the surface of the outcrop. Water was pumped to the drill bit using a small single cylinder 4-stroke water pump from a 250 gallon water tank mounted on a pick-up truck.

Unless noted, the marble is a medium grained calcite marble with a well-defined crystal structure of 2 to 4mm. Pack sack holes are listed and described in order from east to west along the trenches, not necessarily in numerical order.

Five classifications of marble have been noted: white, cream, beige, blue (graphitic) and pink. White and cream would constitute ore grade material, while beige and blue would be acceptable only in small, localized zones. Pink marble could be a mineable as a distinct product if sufficient thickness can be defined.

Sample Descriptions

Trench A

PS-AI White marble with a grayish cast and localized dark sections due to surface weathering and fracturing. Minor dark bedded clastic impurities.

PS-A2 White marble discoloured with an unacceptably high proportion of dark bedded clastic impurities.

PS-A3 Cream marble minor dark clastic bedding.

PS-A4 White marble, no clastic impurities noted. Ore grade.

PS-A5 White marble with minor dark clastic impurities. Ore grade.

PS-A6 Cream marble with minor dark clastic impurities.

PS-A7 Beige marble with trace dark impurities.

PS-A8 Attractive pink marble with trace dark impurities.

PS-A9 Cream marble with trace dark impurities.

PS-A10 Cream marble, no clastic impurities noted.

Trench B

PS-BS White marble with a slight but acceptable creamy cast. Coarse grained crystals up to 7mm. Disintegration of most of the core during drilling provided a very poor core recovery. Ore grade.

PS-B8 B luish-white marble consisting of white, medium grained with disseminated fine grained graphite.

PS-B9 White medium to coarse grained marble.

PS-B7 White medium grained marble. Local disseminated glassy quartz and trace pyrite.

PS-B1 White medium grained marble with local disseminated glassy quartz and trace pyrite.

PS-B6 Cream medium grained marble with local disseminated glassy quartz. Some core lost to disintegration.

PS-B11 Cream medium grained marble with local medium grained glassy quartz nodules.

PS-BIO Bluish-white marble consisting of white, medium grained with disseminated fine grained graphite.

PS-B2 White marble with no impurities noted. Coarse grained crystals up to 7mm.Disintegration of most of the core during drilling provided a very poor core recovery.

PS-B3 Cream marble. Coarse grained crystals up to 7mm. Disintegration of most of the core during drilling provided a very poor core recovery.

PS-B4 Cream marble. Coarse grained crystals up to 7mm. Disintegration of most of the core during drilling provided a very poor core recovery.

Trench C

PS-C1 Glassy quartz and white marble. Abundant quartz stringers and nodules within marble evident in outcrop. Very poor core recovery due to disintegration.

PS-C2 Beige fine to medium grained marble.

PS-C3 A mixture of white, cream and blue marble. Poor core recovery.

PS-C4 White, medium grained marble.

PS-C5 White, medium grained marble.

PS-C6 Cream with beige marble. Beige colouration appeal's to be due to localized fracture weathering.

PS-C7 Cream with beige marble. Again, fracture weathering appears to be the cause of the beige to locally brown marble. Abundant cream to white marble exists in outcrop near the sample hole.

PS-C8 Cream marble.

PS-C9 Cream marble with local pyrite noted.

PS-C10 Beige marble with local blue graphitic sections. Disseminated glassy quartz. Poor core recovery.

PS-C11 Blue marble with local brown weathered stringers (probably due to surface weathering). Poor core recovery.

PS-C12 B lue marble with local cream marble and glassy quartz. Poor core recovery.

Trench D

PS-PI White, medium grained marble. The top three cm of the hole are weathered light beige.

PS-D2 White marble with abundant coarse glassy quartz nodules. Very poor core recovery.

PS-D3 White marble with disseminated medium grained glassy quartz. Poor core recovery.

PS-D4 Cream marble. Very poor core recovery

PS-PS White marble.

PS-D6 Cream marble. Very poor core recovery

PS-D7 Beige marble. Poor core recovery.

PS-D8 White and blue marble, medium to coarse grained. Poor core recovery.

PS-D9 Cream to beige marble - probably ore grade.

Trench E

PS-ADS White marble with local beige alteration zone.

PS-AD4 Cream marble with minor fine grained, disseminated, rusted pyrite.

PS-AD3 White marble, coarse grained, very poor core recovery.

PS-AD2 Cream marble with quartz-rich, blue graphitic sections and fine grained, rusted disseminated pyrite.

PS-API White marble. Medium to coarse grained.

PS-El Cream marble, medium to coarse grained.

PS-E2 Blue marble with minor white marble. Coarse grained, very poor core recovery.

PS-E3 Cream marble, coarse grained, very poor core recovery.

Details of the 1997 Summer Exploration Program

Exploration Expenditures

Pre-field Planning Geologist

Field ProgramBull Dozer StrippingPack Sack DrillPack Sack Drill OperatorGeologistField Consumables

Consumables and Accomodation Geologist Accomodation Food Consumables Truck Rental, Fuel

Total Expenditures

Number of Days Total Hours Cost per hour Expenditure

111212

16 S40 S640

5771012

20424296

656.252040

S 1,300S263S840

53,840S360

S880S480

51,475

510,078

Dates and Hours of Worked Performed

Activity Dates Performed

Pre-field Planning

Field ProgramBull Dozer Stripping Pack Sack Drilling Geologist

26-Jul-27

My 28, Aug. 11, 14,21July 29, 30, Aug. 12, 19, 20, 28, 29July 28-31, Aug 11-13, 18-21, 28-29

A Dubblestein A. Dubblestein P. Hartwick

Total Hours

16

204296

Ontario Ministry ofNorthern Developmentand Mines

Declaration of Assessment Work Performed on Mining LandMining Act, Subsection 65(2) and 66(3), R.S.O. 1900

Transaction Number (office use)

Assessment Files Research Imaging

Personal information collected 01 Mining Act, the information is a pi Questions about this collection 933 Ramsey Lake Road, Sudbur

ie Mining Act. Under section 8 of the ^respond with the mining land holder. Development and Mines.6th Floor,

31F04SE0003 2.17876 MAYO 900

Instructions: - For work performed on Crown Lands before recording a claim, use form 0240. - Please type or print in ink.

1. Recorded hoider(s) (Attach a list if necessary)Name Client Number

Address

/MAfLrLTelephone Number

Fax Number

Name Client Number

Address 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)

Physical: drilling, stripping, trenching and associated assays

. Rehabilitation

Work Office Use

Commodity

Total S Value of Work Claimed

//-/u[

Dates Work Performed

- From

~. , 01

TToDay 1 Month | Year Uay | Month | Year

NTS Reference

Global Positioning System Data (if available) Township/Area

*a-"** Mining Division 6U*

M or G-PlanvNumber Resident Geologist District

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

Uf f6ATelephone Number

Address

36SS ST-Fax Number

T^ M^.CCrVt-AName Telephone Number

Address Fax Number

11forth in Anis D or after/ its coi

_________ , do hereby certify that l have personal knowledge of the facts set

fssessment Work having caused the work to be performed or witnessed the same during 'on artid, to .the best of my knowledge, the annexed report is true.

Date

L5LHTZTelephone Number Fax Number

* ,

5. Work to be recorded and distributed. Work can only be assigned to claims that are contiguous (adjoining; io the mining land where work was performed, at the time work was performed. A map showing the contiguous lii.U 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

3o I WosM

So IH5053

So i W 5055

SO ll^5o5A

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

16 ha

12

2

A) kx

A) k*^0 kc^

.20 k^

i

Column Totals

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

S26, 825

0

S 6, 892

*~ 6,7(1

*3,35^

V o 7 y

Value of work applied to this claim.

N/A

324,000

34,000

* ^ oo* &0

T ^ oo

1 ^00

^^o

Value of work assigned to other mining claims.

S24,000

0

0

* FOO

* loo

\,^00

- ̂ -

Bank. Value of work to be distributed at a future date.

S2,825

0

34,892

^55i^^e* J 5^

',-

?,BF? fcLcvM A - , do hereby certify that the above work credits are eligible under

X J (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 thed 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 ( s ) i n the boxes below to show how

you wish to prioritize the deletion of credits:

0 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated.

O 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

IS 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe):

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 OnlyDeemed Approved DateReceived Stamp

Date Approved

Date Notification Sent

Total Value of Credit Approved

Approved for Recording by Mining Recorder (Signature)

Ontario Ministry ofNorthern Developmentand Mines

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, the 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 the Chief Mining Recorder, Ministry of Northern Development and Mines, 6th Floor, 933 Ramsey Lake Road, Sudbury, Ontario, P3E 685.

2-Work Type

O ^M JJo-fce/v S4cV Pf'/vv

Tkclc ixcL V.-llw*-J Otfxvr^phY^j fuNpfliw*

f vj i 1 I gf

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

c^O Koc/rs

H(L~ l^wrs

^b Ko^r^ ( 6^oi04,'sT)v y '

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

MoWUXw iV.feJJ! Pl^A,^P,- J J ^rvs^/wJkW ^r; \\Uls, fvj/o.'l eh]' " ' ' f t

Transportation Costs

Food and Lodging Costs

-RE5SN/EP1

Cost Per Unit of work

^45/kr.

^ac.5^JL.*HO.oo|(vv

*^o /l-

SEP 0 ?j99fota| vMuV of Assessment Work/O W . ..^Jl7

Total Cost

rfST i ~\* } f J oo. oc

* \,\ 0 3.00

^ ^,B*-|o.oo

*^C.co

- 3ioo.oo

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1, 3 to. co

[Cy07*.ce

Calculations of Filing Discounts:

1. Work filed within two years of performance is claimed at 10007o 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 500Xo 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 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 of costs within 45 days of a request for verification and/or correction/clarification. If verification and/or correction/clarification is not made, the Minister may reject all or part of the assessment work submitted.

Certification verifying costs:

i. r^r^ A- __ , do hereby certify, that the amounts shown are as accurate as mayplfease print full name)

reasonably be determined and the costs were incurred

the accompanying Declaration of Work form as

to make this certification.

(recorded holdsr

sessment work on the lands indicated on

l am authorizedlor state^fompany position with signing authority)

,:^M/

OntarioMinistry ofNorthern Development

Ministers duDeveloppement du Nord et des Mines

ALLEN J. DUBBLESTEIN General Delivery MAPLE LEAF, Ontario KOL-2RO

Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E 6B5

Telephone: (888)415-9846 Fax: (705) 670-5863

Dear Sir or Madam:

Subject: Transaction Number(s):

Submission Number: 2 .17876

StatusW9790.00121 Approval

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.

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 Bruce Gates by e-mail at gatesb2@epo.gov.on.ea or by telephone at (705) 670-5856.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 11623

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2 .17876

Date Correspondence Sent: December 03, 1997 Assessor:Bruce Gates

Transaction Number

W9790.00121

Section:10 Physical PSTRIP 10 Physical PMECH

First Claim Number

1195054

Township(s) l Area(s)

MAYO, CASHEL

Status

Approval

Approval Date

December 03, 1997

Correspondence to:Resident Geologist Tweed, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):Perry HartwickMISSISSAUGA, ONTARIO, CANADA

ALLEN J. DUBBLESTEIN MAPLE LEAF, Ontario

Page: 1Correspondence ID: 11623

DEC

Mayo Twp. (M. 125)

31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14N69 0 08 '20"E 13 12 II 10 9 8 7

XVI

XV

XIV

XIII

XII

x

x

IX

S VIIIO)

E

VII

VI

V

V

III

II

Poe O Vi

Lake

31 30 29 28 27 26 25 24 23 22 21 20 19 18 17 16 15 14 13 12 II l 5 '4 VJ3 2 l

Grimsthorpe Twp.(M.97)

THE TOWNSHIP OF

CASHELCOUNTY OF

HASTINGS

SOUTHERN ONTARIOMINING DIVISION

SCALD 1-^^=40 CHAINSLAND USE PERMITSPUBLIC MARME ACCESS POMTS

LEGENDWASTE DISPOSAL SITESPATENTED LANDCROWN LAND SALELEASESLOCATED LANDLICENSE OF OCCUPATION

MINING RIGHTS ONLY

SURFACE RIGHTS ONLY

ROADS

IMPROVED ROADSKING'S HIGHWAYS

RAILWAYS

POWER LINES

MARSH OR MUSKEG

MINES

CANCELLED

TRAILSPATENTED for S. R.O.

C S

Loc. LO.

M.R.O.

SR.O.

r"

c.

NOTESThis Map Is Not To Be UsedFOR-SURy E^ PURPOSES.

Lot And Concession Lines Shown Hereon Are

Projected From The Best Informations Available, But Their True Position Is Not Guaranteed. For Official Survey Purposes Consult The Original Survey Plans And Field Notes Of

Records In The Dept. Of Lands fi Forests.

400' Surface rights reservation around all

Lakes and Rivers.

Lakes And Rood Allowance Shown Thus: ^

Are Shown On Original Plan Of Survey l

Dated May 17, 1861 But Are Not Shown On

The Map Series Of The Ontario Forests

Resourses Inventory Sheets.

AREAS WITHDRAWN FROM DISPOSITION

S.R.-SURFACE RIGHTS M.R. -MINING RIGHTS

Description Order No. Date Disposition File

(Jj) MMR Reserve (Public Aceil) 15/6/78 188503

(^2) SEC 36/8O 14/2/85 S R O

(**3l R eserve for Reforeitation . 47I3O

J.o

TH( ITjFf IMMATION THAI

Af'PFAHS ON THIS MAPMA;; m F N C.OMCM F rif ROM VARIOUS SOURCFS AND ACCURACY IS NOF t.UARANTFFD THOSE WISHING TO STAKF MIN

ING CI AIMS SHCi CON Mil f WITH THF MININC. HI CORDFF* MINIS I MY OF rjOMTHF.flN DF Vi l OF' MF NT AND MINFS FOR AD DITIONAl INF'OHMATION ON THF STATUS C)F THF

;; SHOWN Fit nroN

SAND S GRAVEL

MMR Grovel Pit No.IOZ

GRAVEL

M.N.R. GRAVEL PIT No. 103

QUARRY PERMIT

M.N.R. GRAVEL RESERVE

M.N.R. GRAVEL RES. No.LBO

M.NR. GRAVEL RESERVE

M.N.R. GRAVEL RESERVE

QUARRY PERMIT

FILE- 177354

FILE' 150079

FILE ' 150079

FILE : 121257

FILE : 168983

FILE: 21780

PLAN NO.-M.7IONTARIO

MINISTRY OF NATURAL RESOURCES

SURVEYS AND MAPPING BRANCH

M.R.O. - MINING RIGHTS ONLY

S.R.O. - SURFACE RIGHTS ONLY

M.+ S. - MINING AND SURFACE RIGHTS

DeKription Order No. Dete Dnpoiition File

(5) M.N.R. RES. 16/6/78 PUBLIC ACCESS 188503

PUBLIC RES 74143

NOTEFLOODING RIGHTS, UP TO CONTOUR 985', RESERVED TO ONTARIO HYDRO

File: 22311

Carlow Twp.

19 20 121 22 23 24 25 26 27 28 29 30See Notes Re. Flooding

Q.

o

o

'2 13 , 14 15 16 17

Ltft/0O C

Mayo )Lalttl

Oa:

C/)

12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

Cashel Twp.

PUBLIC MAMNE ACCESS POWT3HIGHWAY AND ROUTE No.OTHER ROADS TRAILS SURVEYED LINES:

TOWNSHIPS. BASE LINES, ETC.LOTS. MINING CLAIMS, PARCELS. ETC

UNSURVEYED LINES:LOT LINESPARCEL BOUNDARYMINING CLAIMS ETC

R Al LWAY AND R IGHT OF WAY UTILITY LINES NON-PERENNIAL STREAM FLOODING OR FLOODING RIGHTS SUBDIVISION OR COMPOSITE PLAN RESERVATIONS ORIGINAL SHORELINE MARSH OR MUSKEG MINES

W/////////////////////.

X

WASTE DISPOSAL SITE

DISPOSITION OF CROWN LANDS

TYPE OF DOCUMENT SYMBOL

PATENT. SURFACE ft MINING RIGHTS ....,.,... ....... *.SURFACE RIGHTS ONLY.___—-,............ O.MINING RIGHTS ONLY ^..,......,........._. O

LEASE, SURFACE Si MINING RIGHTS ————..——. B" .SURFACE RIGHTS ONLY._.—————,—...._. B" .MINING RIGHTS ONLY....——————............ y

LICENCE OF OCCUPATION ............................,.. TORDER IN COUNCIL ——.—..—————————...——— OC RESERVATION ___......,._........................... 0CANCELLED ___.———_-.,......................... ®SAND 8. GRAVEL ...—.. —..., ————,—.—......—. 0

NOTE: MINING RIGHTS IN PARCELS PATENTED PRIOR TO MAY 6. 1913. VESTED IN ORIGINAL PATENTEE BY THE PUBLIC LANDS ACT. R SO 1970. CHAP 38O. SEC. 63. SUBSEC 1.

SCALE: 1 INCH = 40 CHAINS

FEETO l OOO 2OOO 4OOO 6OOO 8000

O 2OO METRES

1OOOl 1 KM)

2000(2 KM)

2.17876

THT INFORMATION THAI

APF'f AHS ON THIS MAP

HAT, F1FEN COMPIl F H

FROM VARIOUS SOIIHCfS

AND ACCURACY IS NOT

(, l. i A l f A N l F F O T H ( i', F

Wir.HINCi TO ",TAKf MIN

IN(, ( l AIMS SHOUI f) (,f IN

SUIT WITH THF MININC,

HfCOIUlFR MINISTRY OF

NORTHERN Df Vt l Of

Mf NT AND MINES. F OH AU

niriONAl INFORMATION

ON THF STATUS OF THF

l ANDS SHOWN HERf ON

si

TOWNSHIP

MAYOM.N.R. ADMINISTRATIVE DISTRICT

BANCROFTMINING DIVISION

SOUTHERN ONTARIOLAND TITLES/ REGISTRY DIVISION

HASTINGS

Ministry of Ministry ofNatural Northern DevelopmentResources and Mines

Ontario

Dili OCTOBER 1986 Number

G-3054

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