May 2, 2006

2-3213'1

Report on Sampling Program

Claim 3011297, Arnold Twp Larder Lake Mining Division

Kirkland Lake Minerals Inc.

Prepared by: Katherine Kryklywy

RuEC IVED MAY 0 5 2006

GEOSCIENCE ASSESSMENT OFFICE

•

Property Description Location and Access Regional Geology Past Work Sampling Program

Rational Sample Information

Results of Sampling Recommendations Certificate References

Figures

Figure 1: Key Map Figure 2: Claim Location Figure 3: Regional Geology

Appendixes

Table of Contents

Page

1 1 1 1

5 5 6 6 7 8

2 3 4

Appendix I Appendix II Appendix III Appendix IV Appendix V Appedix VI

Sample and fraction weights and vial reference numbers Summary of microscope observation and picked grains Photographs of picked grains Material handling prior to analysis Probe results Certificate of Analysis

Map Sample Location Map

•

Property Description

The property is located in the northwest part of Arnold Township in the Larder Lake Mining Division, Ontario, Canada. Samples were taken on claim #3011297 , one of three contiguous claims held by Kirkland Lake Minerals, 455 Maple Avenue, Suite 409, Burlington, Ontario. (Figure 1)

Location and Access

Claim #3011297 is located 17 km northeast of the town of Kirkland Lake, Ontario. It is accessible by traveling east from Kirkland Lake by highway 66 for 11 km than north on highway 672 for 15 km. The claim is located to the east of highway 672 and claim post # 4 is visible on the east side of the road. (see Figure 2)

Regional Geology

This area is underlain by the Precambian volcanic rocks of the Abitibi Greenstone belt wh~ch extends from east of Rouyn-Noranda, Quebec to west of Timmins, Ontario. The dominant rock type is intermediate to felsic volcanics ofthe Blake River and Kinojevis Groups with massive and pillow flows. Diorite intrusives of Archean age and late Precambrian diabase dikes are common. Kimberlite pipes are also noted in this area. (Figure 3)

Past Work

Due to deep overburden and swampy conditions, the area covered by these claims have not had any assessment work filed on it. The recent work done by the Discover Abitibi Project revealed a circular magnometer anomaly centered on these claims. Recent advances in diamond exploration in the area has sparked interest in the property as a potential diamond bearing kimberlite pipe.

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Sample Rationale

This claim was staked to investigate a circular feature highlighted by an airborne magnetometer survey conducted by the Ontario Geological Survey as part of its Discover Abitibi Project. This feature apes other similar features in the area which have proven to be diamond bearing kimberlite dikes. Sampling on the property is to test for the presence of heavy mineral indicators to further establish the presence of kimberlite and the potential for a diamond bearing structure. The discovery of a diamond-bearing pipe to the southwest of this property indicates a strong potential for this type of occurrence in this location.

Sample Information On April 18, 2006, 2 samples were taken for testing. One sample was taken in the south part of the property. The wider shallower water flow resulted in a fine grained deposit mixed with vegetation layers. The second sample, farther north was taken where the stream was narrower and faster flowing at a point where flow was inhibited by fallen vegetation and sand size grains had been deposited.

A minimum weight of 5 kg per sample was taken from each location with a small shovel and put in a plastic sample bag for shipment, in a container, to True North Labs in Timmins, by BPX. Samples were then recorded, sieved, washed and subject to microscope observation. (see Apendix IV) Grains of interest (14) were sent for scanning electron microscope (SEM) testing in Kelowna, BC. From this one sample was sent to probe to determine chemical composition.

Sample # KLM-Ol Location: (Nad 83, UTM, Zone 17) Northing: 48 15 225 Easting: 079 52 661 Sampling method: stream sample Depth: 30cm Comments: Sample was taken on the west side of the river in a mixed sand/silt layered bed. Water flow was moderate (spring run) and came from a northern direction with an approximate width of 12m at the point of sample. The sample was taken where the river slowed on a slight bend depositing some heavier materials. Swampy low ground surrounded the river area for approximately 60m on each side. Field observation, later verified by laboratory analysis, showed the sandy particles to be angular in shape indicating a till sample close to source rather than a well rounded fluvial sample.

Sample # KLM-02 Location: (Nad 83, UTM, Zone 17) Location: (Nad 83, UTM, Zone 17) Northing: 48 15 360 Easting: 079 52 723

Sampling method: stream sample Depth: 30cm Comments: Sample was taken on east side of river where a fallen log had restricted water flow. The slower water flow had resulted in a sand deposit formation followed by deeper water. The sample revealed the sand grains were pre-dominantly angular, not rounded in shape.

Results of Sampling

The <20>40 mesh fraction was used for heavy mineral separation on both samples. (Appendix I) Sample KLM-Ol returned 6 possible indicator minerals which moved on to SEM analysis with 8 possible indicator minerals identified in KLM-02 also sent for SEM analysis. (Appendix II & III) Of most interest is a strong high chrome garnet found in sample KLM-02 with a dark purple colour which has been identified by probe as a G 11-1 garnet. (Appendix V) Other grains identified did not pass the SEM analysis and therefore no probe analysis was done on these grains.

Recommendations

Further exploration of this property is warranted. The presence of a high chromium garnet in sample KLM-02 indicates the potential for diamond bearing kimberlite. This grain was in the bigger faction of the sample. There is still a large portion of the smaller mesh size which may yield more high chromium garnets. A closer look at the smaller faction of this sample may be warranted, with SEM and probe follow-up if anything of interest is discovered. It is recommended that a grid be cut on the property. A ground magnetometer survey is recommended to develop a more precise handle on the location of the anomaly and further sampling may be done as well to define an optimum drill location. Diamond drilling is recommended to test the anomaly once this information is obtained.

CERTIFICATE

THIS IS TO CERTIFY:

1. I am a graduate in geology from the University of Toronto, Ontario, in 1984. I participated in a workshop on Significant Aspects of Kimberlites and Mantle Indicator Minerals given by D. Schulze, UofT, held by the Northeastern Ontario Prospectors Association,2006

2. I am a director ofthe Northern Prospectors Association.

3. I reside and hold office at 1 Athenia Blvd., Swastika, Ontario.

Katherine Kryklywy May, 2006

REFERENCES

Hogg, W.A., Arnold and Katrine Townships, ODM Report 29, 1964

McCormack, Dan, Work Report on Arnold Merrick Property, 1996

Mahood-Greer, Mary, Geological and Geophysical Survey Report on the Motherwell Project, 1991

OGS Map 81 778, Airborne Magnetic and Electromagnetic Surveys, Kidd-Munro, Blake River Area

Appendix I

Sample and Fraction Weights and

Vial Reference Numbers

True North Mineral Laboratories Inc. --

Appendix I -Project: KLM

Client: K.K. Exploration

I Field Selected for Total Total Total Vial # Vial#- Vial#- Vial#-Vial#-

Sample No. I Metal!lic Notes [ Weight HMS Fraction Floats Concentrate Picks R.N.M. Magnetic Select Picks i Grains i (g) (tyler mesh) (g) (g) (g) Concentrate Concentrate Concentrate Concentrate Concentrate

f---------. 182.49 KLM-06-01 i 5645.6 <20>40 173.53 8.96 1013 1015 1014 1020 --

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KLM-06-02 i 7355 <20>40 294 277.56 16.44 1010 1012 1011 1019 --i r-------------------[

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Vial Numbers in Bold text contain picked grains. For photographs of vial contents see Appendix II\, i

Abbreviations Concentrate Floats (g) HMS RNM

#12 Tyler Mesh #20 Tyler Mesh #40 Tyler Mesh #70 Tyler Mesh

True North Mineral Laboratories Inc.

Appendix I

Meaning -mineral grains with specific gravity >2.85g/ml -mineral grains with specific gravity <2.85g/ml . -grams -Heavy Mineral Separation -Remaining Non-Magnetic after concentrate (after

picking) -1.7mm (>12) -0.85mm «12>20) -0.43mm «20>40) -0.21mm «40>70)

Appendix II

Summary of Microscopic Observation and

Picked Grains

True North Mineral Laboratories Inc. -----------!----._------- Aeeendixll

Project: KLM ClientKK Exploration

Summary of Heavy Minerai Observation 1

I GAR i ECL I CPX I CHR Total --------; Observer I Sample No_ ! Fraction Vial # ILM OPX OLi \CLRIWHT Remarks Date

I Number ~- ! KLM-06-01 1 <20>40 1020 1 I 1 I 0 2 i 0 I 0 1 , 1 6 -+ KC 24/04/2006

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KLM-06-02 ---t- <20>40 1019 2 2 0 2 0 0 I 1 1 I 8· aU-Weak, Strong High Chrome GAR, High , KC 23/04/2006

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Appendix II

Where observed concentrates and picked grains from this program were deemed not worthy of further SEM and Microprobe analysis the microscope observations attached, are included in the current report as well as photographs found in Appendix III.

Abbreviations CHR CLR/WHT CPX ECL GAR ILM OLI OPX

Meaning -Chromite -Clear/White -Clinopyroxene -Ec1ogitic garnet - Gamet -Illmenite - Olivine - Orthopyroxene

Appendix III

Photographs of Picked Grains

First Pass

First Pass

Vial #1010

Appendix III

KLM-06-01 Final Picks -----_ . ..----'-

Vial #1020

KLM-06-02

Vial #1019

Final Picks -~ ...........

Appendix 111- P2 of P3

Vial #1019

Appendix IV

Material Handling

Appendix IV

Material Handling Prior to Analysis - Methods and Procedures

1. Recording Sample Information

The sample is weighed, information is taken from a field book, sample log and hand written weight logs and entered into appropriate computer spreadsheet(s). Hand written location coordinates are normally cross checked against stored GPS waypoints if available. Often, GPS waypoints are downloaded into a computer and archived at this time as further backup. An effort for completeness is made to properly document the following information prior to the start of sample processing as it is critical sample information:

• Sample location - in NAD83, UTM coordinates including zone number. • Sample logs - type, depth (if auger), material description, observations. • Sample weight - full sample weight as it arrived from the field .

Weighing Field Sample Cleaning sieves Typical sieve arrangement 2. Sieving, Sorting, Pre-wash

The sieves are thoroughly cleaned and inspected to eliminate any possibility of contamination from previous samples. The sample is washed through a stack of sieves. This process provides a preliminary wash for the mineral grains and sorts them by size. Selection of appropriate sieve mesh sizes can vary according to the type of material being sorted. Typical sieve sizes used are (Tyler mesh) #12, #20, #40 and #70.

Stated as metric equivalents: #12 = 1.7mm

#20 = 0.85mm #40 = 0.43mm #70 = 0.21mm

Sieve mesh sizes used for any particular sample can be found in the attached appencies that provide sample weights and mineral grain observations. Normally a lower size limit is determined and accepted beforehand. Sample material smaller than the lowest mesh size is normally washed away. In some cases all of the fine material is kept for possible microscope study, particularly in the case of an expensive sample.

3. Washing

Each resulting size fraction is washed thoroughly with clean water and dish soap as it is removed from the sieves. Any organic material remaining with each fraction is floated off and washed away through repeated washing and rinsing. Washing is complete when the mineral grains are free of any organics, soap and fme silt.

4. Drying

The resulting, washed fractions are then dried. An oven can be used to speed drying time. Once dry each of the size fractions is bagged in a plastic zip-loc bag and weighed. The resulting weight is recorded in both hand written log form and on computer spreadsheet. Clear labels must accompany each fraction through all remaining procedures.

Drying sample fractions Fractions bagged and labelled Fractions weighed 5. Heavy Liquid Separation

The resulting size fractions are looked at to determine which fraction(s) are suitable for heavy liquid separation. Larger size fractions may not contain enough mineral grains to make heavy liquid separation worthwhile. Program budget may limit the number of heavy liquid separations per sample or sample program. Smaller size fractions can provide the greatest number of heavy grains for observation in the resulting heavy mineral concentrate. However, fme grains can be more difficult to handle during microscope work. Each sample will have one ore more size fractions that are better suited for the process than the others.

The selected size fraction is run through a heavy liquid process where all grains having a density greater then 2.85 glml (sinks) are separated from the lighter fraction material (floats). All kimberlite indicator minerals will sink as will many other minerals of economic interest, such as gold.

Both the sinks and floats are rinsed thoroughly in distilled water. The distilled water is saved for recycling as most of the expensive heavy liquid can be recaptured later. Both portions are then dried. An oven can be used to speed drying time. The floats are normally put in storage as the grains may warrant further study should the heavy mineral portion yield positive results. Abrasion due to grain transport for example, can help to determine transport distance. The sinks, or heavy mineral concentrate moves on to the next stage.

Typical yield of Heavy Minerals Floats (less than 2.85 glml) stored 6. Observation and Picking

The microscope observation table and surrounding area must be thoroughly cleaned to ensure there are no grains around from past samples. A clean paper table cover is placed under the microscope to cover the surrounding table top. All grain handling is done on the table cover.

Small portions of heavy mineral concentrate are placed in plastic dishes in preparation for microscope observation. A small hand magnet is used to pull out and separate any magnetic grains from each dish. The magnetic grains are carefully placed into a separate dish for observation. This portion will be stored separately in a numbered plastic vial.

The non-magnetic portion of the heavy mineral concentrate is observed using binocular microscope and a good light source. When visually identified, kimberlite indicator minerals or any mineral grains of interest are manually picked using tweezers and placed in a numbered plastic vial. A computer log is maintained during observation where notes are linked to sample number, fraction, vial number and other basic information. When observation of each dish is complete, any remaining, unpicked grains are placed into a separate, numbered plastic vial using a small funnel. Observation notes are backed up regularly onto CD and archived. All vials are weighed on a fine scale and documented by hand written log and computer spreadsheet before storage.

Important grains or vials of picked grains that are selected for further analysis, such as SEM and microprobe are photographed through the microscope using a digital camera. Total number of grains to be sent for analysis is verified by counting them on the digital image using suitable graphics software. Normally all grains sent for SEM or microprobe analysis are returned, mounted on a slide or plug. The digital photograph, observation notes and grain count can be used at that time for basic verification and identification of analyzed grains. Copies ofthe digital photographs can be shipped to the analytical lab along with the selected vials of grains. This helps the receiver to confirm all grains were received and discrepancies can be noted by both parties.

Grains in vials

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Appendix V

Probe Results

• Electron Microscope Analysis from C.r. Mineral Research Ltd. Received: May " 2006.

Name Fraction Mount Cell Grain SA V1016 4996 101

CFM 01 SiOZ Ti02 AIZ03 V203 Cr203 Fa203 FeO MgO CaO MnO NiO ZnO Nb205 NaZO MaxNaZO K20 Total

V1016 4996 102 V1016 4998 103 V1016 4996 104 Vl017 4996 105 V1017 4998 106 Vl017 4998 107 Vl017 4998 201 V1018 4998 202 V1018 4998 203 Vl016 4998 204 V1019 4998 206 V1019 4998 207 V1019 4998 208 V1Q19 4998 301 V1019 4998 302 V1019 4998 303 V1019 4998 304 V1019 4998 205 P V10Z0 4998 305

GIl-I 41.19 0.39 18.02 7.1 6.16 19.77 6.1 0.Z9 0.03 0.02 99.05

V10Z0 4998 306 V1020 4998 307 V10Z0 4998 308 V1020 4998 401 V1020 4998 402 V1023 4998 403 V1023 4998 404 V1023 4998 405 Vl023 4998 406 Vl023 4998 407 Vl023 4998 406 V1023 4998 409 VI 023 4998 410

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Appendix VI

Certificate of Analysis

05;83/~005 13:00 70521:,81098

• ' It

TR\/E NOR1"H MINERAL

it LABORATORIES 475 Railway 5t.

Timmins,Ontru'io P4N 2P5

Telephone (705)268·rn03 Fax (705)268-1098

On May 1, 2000, seven (7) Microprobe analyses were completed fo~ True North

Mineral Laboratories, 475 Railway Street, Timmins, ON, P4N 2P5

By: CF Minerai Research limited, 1677 Powick Road, BC, V1X 4L 1

as indicated by the attached certificate number: PW06GA39009093.

Out of the 7 analyses completed, under batch number 06~3174, only one (1) was

for K.K. Exploration and Management Services, 1 Athenia Blvd., Swastika, ON,

POKITO.

Signed by: &2---~-' Kevin Coot

Date: May 3, 2000.

F'AGE 02(03

85/03/2005 13:08 7052681098 TRUEtjORTHtvtHjERALLABS '"1 ~ No· 12, ~

PAGE [13/(')3

. . " ~ay, 3. 2006 9:54AM

G= C.F. MINERAL RESEARCH LIMITED

1677 POWICK ROAD KELOWNA.. BRITISH COLUMB4A

CANADA V1X 41..1

Client: True North Minerai LaboratQries 415 RaHway Street Timmone, Ont. P4N 2P3

CERTIFICATE PW06GA39009093

This certificate rekns \0 • report of ., fuM electron microprobe analyHe (and

TEL (250) 880-8526 FAX (250) 862·9435

associated work) carried out within C.F. MineraI Research batd1es OW17A(1). The report was completed on the 1 May 2006,

AI resutl$ apply to samples/fract/ontlgralna as submitted and s,. eontldered to be the confidential property of the Client and superHde any preliminary report with tt* certiflclte number.

The certtficaw gives K.vin Cool full aceeu to all oited resulD.

Signed b)': 1rJ. ~ ~Dr. M.E. Whitehead

Date: 2 May 2006 I

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Sample Location Map

May, 2006 ; 2500

Prepared by: Katherine Kryklywy