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Alberta Mineral Assessment Reporting System

1998 ASSESStvIEt~T REPORT

PREPARED FOR

656405 ALBERTA LTD.

Holder of

Metallic and Industrail Mineral Permit

Nos: 9394030001

ACKi'IOWLEDGEMENTS

Consultant and Scientific Authority

Dr. Norman Haimila, President of Aurora Projects International Inc., British Virgin Islands

Exploration Research and Program Co-ordination

Dr. N. Haimila, Houston, Texas; Raymond Haimila, Canmore, AB.

and Dr. T. Yoshida, Calgary, AB.

Contributions and assistance from the following are acknowledged:

Dr. W. Nassichuk, Institute of Sedimentary and Petroleum Geology, Geological Survey of

Canada, Calgary, AB.

Ashton Mining of Canada Inc., Jeff Ward, Project Geologist

Marcel R. Labonte, Geomathematician, Institute of Sedimentary and Petroleum Geolo,gy,

Geological Survey of Canada, Calgary, AB.

Dr. David Boemer, Research Scientist, Siesmology and Electromagnetism Section, Continental

Geoscience Division, Geological Survey of Canada, Onawa, Ont.

Dr. 1. Cox and Mike Clark, Department of Geology, Mount Royal College, Calgary, AB.

Beth Haverslew, Petrologist, Calgary, AB.

Loring Laboratories, Calgary.AB.

Staff at Earth Sciences Bldg. and Library at the University of Calgary

CF.Minerals, Kel0\\-11a, BC., C. Fipke

' DR. ]\OR.MAN E. HAl:.flLA

Born:

Citiz.:.nship:

Social lnsur11.nr.:e:

EDUCATION

AREAS Of EXPERTISE

Primary through High School, C3nmorc t\l~er1a. B.A. Sc ( J 960) University of British Columbi3 Ph.D. (1974 ~1ichig.&n Stntc Unh·enity

PROSPECT GENERATION, INTERNATIO~AL Al'\D FRONTIER PROSPECT EVAJ.U,.\ TIONS, REGIONAL STI..'DIES, RESOtiRCE ASSESSMENT, STRlJCTuRAL GEOLOGY, RF.~10TF. SENSING, GEOPHYSICAL JNTERPRETATIONS, B.'\SJNAI. STRATIGRAPHY.

PROFESSIONAi. EXPERIENCE

1994 to Present

1980. l994

1978. 1980

1974. 1978

President c:if AlJROR.\ PROJECTS INTERN A TIO~AL l~C.

Genenued drilhshlc prospcC1s in Argentina nnd tJ;e Middle Eest. Of three prosp:tl~ i;encratcd, one is producing oil, one wns n dry hole with shows nnd one rem., ins to be drilled in the, winter of I 995-1996.

Pre$ident \If 7.1 CONSUL'J1~G LIMITED, Ccichr.me, All>em

Consulted for the oil 11nd mineral indus1rics nnd go\'ernment nsencies.

From 1991 to 1994 consulted for nn independent. oil comp:my in Cn.nnd;,. On m)' recommelld3tl<1n this compony acquired two cxplorntion blocks and two exploitAtion blocks in .'\rgcntina. Prospects hove b:cn genemted on these nnd other wbsequently acquired blC1Cks. To date. four wells with vnrious h:,·cls of hydroc:srbon recoveries and four dry wells hn\'c been drilled. Outside Arcentina blocks have been c\•aluatcd for their hydroc!lrbon pt1tmtial in V~nl!t.uda. Colombia. ea111dor, Pcn1, Boli, ·ia, Europe nnd A sin.

From 1987 to 1991 wns the Scni<1r Gct\loi;ist t1n the Sub·Andcan Coopernrive Hydrocnrb<1n Studies T'rojctt managed by Meneley l::nterrrises, Ltd. nnd directed hy Pclro Conndn Jntem<\Tional . As!'ist3nr:I! Cc1r{'Ort1lion, the World Unnk 11nd Assistance Rcdprocs retrolcra Estotnl Lotin Amcritn. This pmjcct consisted Clf bn~in i1nalyses end hydrocnrb(ln endowment studies in Colombia. F.cuador, Pcr.1, Bolivia, Paraguay, Ar;entillll and adjacent 11rc&~ utili1in~ all the pertinent drain held by the nntionnl oil c:ompnnies.

From 1980 to 1987 con~ultcd for indcp:ndent :md n111jcir oil tCln\panlc~ in Canadn in addition tC'I i;on"fT\mcntnl ngencics nnd rc~earth in~titutc~. F.valuatcd the hydrocl\rbon potenti11I for &rcns throughout C:\11.,da and ''thcr international Arc11s.

CDC Oil nnd Gas Ltd. (rcnsni.!d Conl:rrn nnd now p111t of Husky Oil 1111d NCl\'lt Corp.) ColgN"Y. Albe1111.

Held the: positions of Gcologicnl Specialist and Consultant rc~iionsiblc for prospect gcnenitiCln, structural nnnlyscs ~nd rci;ion11l studies in the Conndinn Foo1hills Dclt from lntitudcs .q9•N to 60"N.

Energy Subdh .. ision (rc1rol~um Resource Apprnis;iJ Stcrctnrinl) of rhe Institute e>f Sedimenl.,t)' ;u11.l rc1rolcum Geology (G SC). Cal~ilTY Albe1111.

RcspC111~ihlc: for evnlunting hydroc~rbcm endC1w01tnt in C1meda, c~pocially in 1hc ;. retie, thr Wc.~tt·r:i Canndn Ihsin ~n:i the Ft•l•lhills Reh .

. 1974 All.antic Rlch!icld Company. Dallas, Texas Hc!d tbe po.sit.ion of S::nior Rcsi:arc!'I Geologist in the Geoscic:nces Section. Wo:kcd in ~plii:u research in rcmo1e ~c:n.,ing, structural analysis. regional aucl basinal studi::s. in aduition to cnzinrcrin2 and pctrohJ2kaJ prublcm:s rdacal to the oil and mincrctl indu.'llric.s.

1967 Consultt:d for small independent oil and mining companic:s in !vlichi;;an and lnJ1.<u1<.1.

1967 Mic!Jig~1 Scale University. Ea."t Lansing. Michigan. Graduate Assist.am :u1J Assist.a.nee Instrucmr. Taught Introductory Gi;ology and Miuer.a.loEY at the undergraduate h!vc:l.

1966 Britis.b Co!'.l.!Ilbia Depamm:r.t of Yfines and Petrol~um R~ouri.:es. Victeria. British Columbia. Worked en special mineral project!'. Mapped geology and mineral occll!rences :n Ccntr2.1 Vanc.:ouvcr Island and in the: St.c!wart Ar~ of British Columbia.

1963 8.t.emal Aki Office (CIDA). Ottawa. Ontario Technical Advisor tot.he ~inistry of Industries in Ghana under the Spc::da.l Cocunonwt:altb Africa Assistance Program. Part of a two m2..n t.carn mappi11g and evaluating mineral project~ throughout Gha11.a including gold ntining, pla.c:er di.amend exploitation, m<ingane:le occurrences, a.'ld aluminwn and limestone: prospt!,l!!.

l961 Geologicd..i Survey of Canad.a. Ottawa, Ontario Tcctmical Ofticer • assisted in field mapping in Nonbcm M<mitoba and El.lt::-;mere Isli:!Jld N'onhwe.~t Territorit:s. ConcJuct.c.d labor.:itory work on material from tbc ultrab.it'\iC f\foskox Imrusivc Complex of the Nonhwest Territories.

:959 Summer employment with government agencit:s. mining anc.l oil inclusUics in Ca.ua..c.la.

:::SSIONAL AS SOCIA T!O~S - Canadian Society of Pt:troleum Gwlogy • Americ;m Association of Petrokwn Gl!ologists #0132516 - Association of Profcssioll3.l Engineers, Geologist and Gcophysici.st.S of Alberta #28333 • American Institute of Professional Gcolo~ists 114293.

\RCH A."ID REPORTS Gold Distribution, S1.n1ctun: and Scdimentology oft.be Bank.et Deposit in the Vicinity of the Fenti Gold Mine.

Demonstration Equipment and Procedure~ for Exploiting Small Sc:ak A.l.lu\'ia.l Diarnu111..I Wurking.s.

The Asubonl Limestone.

Structure wd Oil Potential of the Trc:uon Limcsmne, Wabash Cou41t)', InJiJr.a.

Structu:t: and Oil Potential of the Trenton Limestone, Ea.ton Count)·. ~1!clliga.n.

Second.a."')' Rt'.~ovcry from :.he Trenton Limestont! of lhi: Lima-Ir.tlian.1 T:-encl.

Structure ..!11d Oil P:ospem of tbe Canadian lt.farittmt! Pr0vlnces anu Offsllor~ Areas.

2

-197-4

-1967

-1967

-1966

-i963

-1961

-1959

Atlantic Rlcillkld Company. Dallc.s. T ellas . Hele the position of Senior Rescan;~ Geologist u1 the G~sc1cncc" .Sccuon. \Vortcetl m apph;:Ll research in remote 3tn.'iing. structural analysis. n:g1ona.I an<l basiual studi::s. iu addition t0

c:n~inc:c:rini and pctralu2iGtl pmbit:m~ rda:c:t.l to th~ oil <Uitl mineral indu.~trit;.~.

Consulted for small mdcpc11de11t oil and mining companies in :Vlichigan anJ lnJi;u1a.

Michigan State Umvcrsily. Ea."t Lan..~mg. Michigan. Gradu.1te ASslsta11t anu Assistar.cc Im;uucwr. Taught Introductory Gt:ology and Mineralogy at the undergraduate lc:vc:l.

British Columbia Deparnner.t of Mint!S an<l Pt:troleum Rt!:iources. Victcria. Btiti:sh Columbia. Worked on special mineral projects. Mapped geology and mineral occU!rences in Ccntr2.1 Vancouver Island and in the Stt!wart Arca of British Columbia.

External Ald Office (CIDA). Ottawa. Ontario Tcchuic.al Advisor to lhe Mini.sit)' oi lndustrie!I in Ghana unuer the Sped:.r.l Coounonwea.lth Afric1 Assistance Program. Part of a two ma.ii l.i!am mapping and evaluating mineral projects throughout Ghana including gold mining, placer diamond exploitation, mangane:it! oci:urrenct!s, aml a.luminwn and lime.stont: prospect.:1.

Geological Survey of Canada. Ottawa, Omario Technical Ofticer - assisted in field mapping in Nonhem Manitoha and EU~:;mere Island Northwest Terrilorit:s. Conduct.G<.I laboratory work on matcrial trom ilic ultmh~o;ic Muskox Imrusive Complex of lhc Northwest Territories.

Summer employment with govemm::m agencies. mining and oil in<lusUll!:i In Caua.da.

FESS ION AL AS SOCIA TIO~S - Canadian Society of Pecrokum Geology · American A:isociatiun of Petrnlt:wn Gcologis~ #0132516 - Association of Profcss1011a.l Engineers, Geologist and Gt:ophysiciscs of A!bena #28333 - American Institute of Professional Gt:0logists 1'4293.

EARCH AND REPORTS Gold Distribution, SU1.lcturc a.11d Scdimenwlogy of the Bank.et Deposit in the Vicinity of me Fanti Gold Mine.

Demonstration Equipment and Procedures fur Exploiting Small Sea.It: Alluvi;r.l DiamuuJ Wmk.ings.

The Asuhoni Limcswnc.

Structure and Oil Potential of the T remon Limestone, \Vab:ish County, InJiar.a.

Strut:turt: anJ Oil Potential of tht: Trenton Limestone, Eaton County. M!clliga.n.

Scrum.Lary Rt:eovcry from the Trcmun Limt!stonc of the Li.ma-lr.dian.a Trend.

Structure and Oil Prospects of the Canadian MC\rttunc Pr0vlnCt!S am.I Offshore Areas.

2

arch and Repom :ont'd)

Gravity Intc:p:-et.zitio:i of a Sa.It Dom~. Off~bcr~ Teu.-..

Gravity :1nd :-..fagnetic Inu:rpn:w.tion of a Concession in Lihya.

S1r..1ctur:il and Sei~::nic Imc:rpretation of a Hydr(>Clrbou Prospc.:t i:i Nc...-atla.

Gr.ivity. !'-fagnetit.:. Si:ismic and Strut.:tura.l Analysis ,..,f West T::x.as amJ tht: Pi:rmian Basin induding Hydrocarbon Pro5JXCl.S.

Review wcl Training ~1anual for Gravity and ~iaBnet.ic !ntc11lret.ati0n.

StnJctur.=.l Interpretation of tl1e Laguna ~1adrc Fic!J, South Texa.c;,

SU"'JCtural A.!ialy~is and Hydrocarboa Prospects in the Montan<! Thru.\t Belt.

StructUial An.:l.lysis oi the EJ..stcrn Brook!! R:mi;t: of Ala.ti:.a.

Pennafrost !n t.hc Subsurface of the :-\onbslupc of A.la.c;ka..

Permafrost ancJ Plc::htocent: Stratigraphy of Cop~<r River B<c>in. Ala.r.k.a for Routing of i..1c Tr<uls Alask3 Pipeline.

Fracture Ar1f.lysis Utilizing Fourier Transforms.

StnJctural Analysis of the Ea.stem Arctli.: I5lands. Canad.a.

Borehole Fractcre Analysis for Secondary R~uvcry Projects.

Fracture Analysis for Mac;~ive Hydraulic Fracturi11g in Low Productivity Ga.Ci Sands.

Side Looking Radar .Study of East Kalimantan, lndon~ia.

Rc:mote Sensing Applicabilicy to Exploration in Ala~ka. Eastern C4I1a<l.u.. Arizoru.i, Peru aud Indonesia.

Mi~ccllwcou.s Pettographic and Mint:ralogical Investigations.

Hydrocarbon Potenti:i.l of the Mackenzie Valley a..'ld the. Great Bear Ba.sin in t!1c Vicinity uf Norman Wells, Nonh\llcst Territories.

Hrdroc.:;txm Potential of t.bc: Sverdrup Ba.c;in of the: Arctic Islands.

Hydrocarbon Potential r.f the Arctic hlands Fold Belt.

Hyd..roC'..1!0011 Putt:nti..al of 1.hc Stable Platform of U1c Ari.:t.ic Is.1.3.nd.s.

Hydrocarbon Potential of the Lower ~fannvillc lnu:rv:i.l in Altx:ru.

Hydroc210011 Pl.l!cnti.al Revi~w.c. of E~t Coa.c;t Olhhurt: Arcac..

ch and R~porL<­ont' d)

Hydrca.rbon Potential of the BritJsh Co!t.nnbia Offshore .~~.

Hydrocarboil Potential of TI1ird World Countries

Structural Style rmd Hydrocarbcm Potential of th! A.lberui and British Columhia Footbil.k

Review anc Training Manual of Structural Styles in C;madian Pt'trolcmn Provinces.

Geology anr.1 Hyd.rocr.rhon Potential of the Canadian Beaufort St:.a and Em·irons.

Hydrc.;.-.arlxin Potential of Arctic ~forth A..-ncrica a..'ld Greenland.

HydrCX".arlxm Potenlia.l, Ge.olo£y a.nd Exp!oralicm History of Seleclt'..d Third World Countries.

Hydroc<..rbo!I Potenti.e.l BJld U'ndisccwcrcd Prospem of Sevt:"ral H ydrocar00n Expl0t1!.Ucm Plays in Alben.a and Northeast.cm British Columtila.

DeltaS cf the World and Their Potential for Containin~ Giant Hydroc:irhon Au:umull!tions.

Cheracu:ristics or H>·drocarbon Accumulations in Four Nonh Sea Sub-basins.

Charsctcristics of Hydrocarbon Acct!Inulations for Typical Exploration Plays in West Texas and Offshore Louisiana.

Hydrogen S~lphldc imd Sulphur Occurrences ln Petroleum Accumulations of Western Canada.

Sedimentar/ Basins and Petrcleum Resource Potential of tbc Arctic Ocean Region.

Geology and HydrOCMbon Potential of the Sub-Andean Basins or Colombia. Ecu.!idor, Peru, Bolivia. Paraguay IUld Argentina.

Geology d..'ld Hydrocarbon Potential of the Ncuqucn Bas:n of Argentina.

Gen~ rc,·icw of the Gulfo San Jorge Basin.

Geology s.nd Hydrocarbon Potential Clf tbc Chsco-Psrana and Loma Del Om~ ree;ions of Argentina.

t\ckno\vledgem_euts

Dr. Haimilats Qt1aliilcations

Introduction ...................................................................................... pg l

Prospecting ........................................................................................ pg 5

Assaying ............................................................................................ pg 5

Seismic ............................................................................................... pg 6

Analysis report .................................................................................... pg 7- I 3

Aeromagnetic map (shaliow target enhancement) .................................. pgl4-l5

Sample location map ........... ·--·----··-··-·-·-······-··-·-·-·---······-·-·-·------·······-···Pg 15

Photos of volcanic breccia and beach concentrated garnets .................... pg 16

.Refrrences ............................................................................................ pg 17

Statement of costs ................................................................................. pg I 8

List of 1 ables and Figures

Figure 2. .. Permit area map ................................................................................ pg 4

Tabie 1 ... fv1icrobe data ...................................................................................... pg IO

~·.'' ') ·~· ' '· .. l aote ___ ..ivucrooe ama ...................................................................................... pg 11

List of CF Mineral's Minerai Code Descriptions ................................................. pg·I2-13

Figure 3 ... Shaliow Target Enhancement of Total i\fasrnetic Intensity ..................... pg 15

.. .Location map of beach concentrated garnets and breccitL ________ ........... pg t 5

Photos of volcanic breccia and beach concentrated garnets ................................. pg 16

INTRODUCTION

Exploration of this ciaim permit and of this area over the last several years has confirmed the

follm.ving:

- il..n abundance of high quality diamond indicator minerals. have been found in the

Calllng Lake area. These include diamond inclusion picroilmenites and clinopyroxenes,

significa.ut d:rromites, sapphire, and GJ ,G5,G7,G9,G I 0 and G i I pyrope garnets

(Haimila,R. 1996~ Haimila,R. 1998).

- Geotectonic research indicates-the existance of a d.eep mantle root proximal to these claims (Diamonds-Theory and Exploration-A';Hands-On" Short Course, 1995).

- Lithoprobe Report #4 7, 1995-indicates the existance of a deep transcontinental shear

zone oflate Archean Age. (Snowbird Tectonic Zone) near the south east boundary of

these ci.aims.

An Aeromagnetic survey of this area contracted in January of 1998 shows numerous near

surface magnetic anomalies ( This report as well as Haimila,K 1998).

This report confirms that beach concentrations of garnets and volcanic breccia on the north east

comer of Calling Lake Park shoreline coincide with near surtace magnetic anomalies (Spectra

Geophysic l\ffagnetic survey).

This report concludes that an aggressive diamond exploration program be planned on the Calling

Lake .tvlineral Permits.

I

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..... ...

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1986 OFFICIAL ROAD MAP 10 0 1(1 >0 JI)

...... •o 0

HIGHWAY MARKERS

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e <1nowht.l'1 •i·Oh,..,;,.,

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.-i1l .ro ..... $ne11 ft l''IN 11 Ao ad

ROAD CLASSIFICATION

DIST A NC ES IN KILOMETRES

POPULATION SYMBOLS

0 Unotr 2SO , .. ... 500 to!> 000

* *

50 \;O 10

40 50

SPECIAL FEA Tl

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eel " P•ov ""~mPIJ

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·(j ,·' '. -;-;:-· . ·-- ·i771 -~ ··­.T_

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PROSPECTING

In August of 1997, a 4 day reconnaissance of the shoreline along and near Calling Lake

Provincial Park found several c-0ncentrations of garnets . The greatest concentrations of garnets

appeared to be near the north east comer of CaHing Lake Provincial Park shoreiine.

Coincidental io beach garnets were many samples of volcanic breccia (see photos page 16 ).

Tne concentrations of beach garnets extends for quite a distance past the north east

boundary of Calling Lake Provincial Park The garnets were found up to l 00 metres

inland from the shore of Calling Lake.

The aeromagnetic survey completed in January, 1998-shows several near surface magnetic

anomalies inland and along the shoreline of Calling lake (Fig.3). These anomalies have a

magnetic signature similar to kimberlites (G.S.C. open file 3228, 1996).

ASSAYING

Approximately one kilogram of beach concentrated sand was sent to CF Minerals for magnetic

separation and picking. 21 grains were sent for microprobe analysis (see inciosed analysis).

The corundum grain was a light blue crystal (sapphire). among the G9's and GI l's was a

G 11-1. This according to CF l\11inerals implies a diamond grade estimate that is attributed to

garnetharzhurgite source. (see CF Mineral Research code discriptions for Gl 1-1page12).

The magnetic separations from this sample were ultimately passed on to the

Alberta Geological Survey for further analysing. (Feb/98}-no results from AGS yet.

A further 2 hags of.garnet concentrate were sent to Kennecott Canada for assaying. This was

after meeting with Kennecott representatives in Vancouver in January of 1998. These samples

were sent to their lab in Thunderbay Ont. Because of the high concentrations of garnet and

indicator minerals-the samples were sent on to Kennecott's lab in Australia. Those results were

not_ready Jor this_teport-as ofMarch22, J.998.

5

SEIS.MIC

A review of seismic data at Kary Data Service in Caigary by Dr. N. Haimila and R. Haimila

in January and February of 1998 (in ihe area ofihis permit) showed some ditftaciion in the basement rock but nothing conclusive. The data was not purchased.

AERO.l\'1AGNET1C SURVEY

i\n aeromagnetic survey was flovvn at Calling Lake in January of 1998 for 656405 Alberta Ltd.

(Haimila,R.1998). Spectra Geophysics was contracted to supply a near surface anomaly map

based on the data acquired in the aeromagnetic survey.

figure 3 shows ShaHow Target Enhancement of Tota! .Magnetic Intensity of the area adjacent to

and including the eastern portion of Calling Lake Park. figure 3 clearly shows near surface

magnetic anomalies v.iith magnetic signatures similar to those of kimberlites.. These anomalies

appear along the eastern shoreline of Calling Lake as well as inland from the lake. The beach

concentrations of garnets are proximal to these near surfrtce magnetic anomalies. (see site locations on Fig.3 and see photos on page 16).

CONCLUSION AND RECOl\'II\'IENDA TIONS

This mineral permit covers a small portion of the total permitted lands held in this area by

656405 Aiberta Ltd. This assessment report in combination v.rith previous exploration of this

area over the last several years .has confirmed:

the. presence. of high quality diamond indicator minerals.

the pre.se.nr,e Qf high priority near s.u:rt-2..ce rnagnetic.a..110malies

the ex!stance of a deep mantle root prnx.ima! to the claims

the existance ofa deep transcontinentaLsb.ear z.one of.late Arch.eanAge (Snowbird Tect0nic Zone) near the south east boundary of these claims. The above information implies. .a

high probability Df in.tnlS.ive .bodies in .the Calling Lake .area.

An aggressive exploration program on the Calling Lake perm.its was impiemented this spring. A $200,000 helicopter survey (EM and MAG) started in May on these permits. This survey is to be

followed by a surface sampling of magnetic and .ElVl anomalies, the anomalies with diamond

indicator minerals \Vill become high priority drill targets.

A drill program is planned for the fall of I 998.

ANALYSIS

REPORTS

C.F. MINERAL RESEARCH (1996) 1677 POWICK ROAD

KELOWNA, BRITISH COLUMBIA CANADA VlX 4Ll

September 26, 1997

Ray Haimila 656405 Alber ta Ltd. P.O.Box 8471 Canmore

Alberta, Tl~ Tel:Vernon--

Tel: (250) 860-8525 Fax: (250)862-9435

I NVOICE#: 97-991

Project:N .Alberta

INVOICE RE: PROCESSING, PICKING & SX-50 MICROPROBE ANALYSIS -CFM:97-998 Northern Alberta, Beach Sand, Sample size 1 Kg

-Wet Sieving , Sizing and semigravity concentration @$35 . 50 /sampl e

- Drying & Dry sieving @$19 . 50 /sample -Tetrabromoethane separations using 0 . 5 - 1.0 micron double filtration:

first 3000 gms sized cone . @$25 .75 /sample -Methylene Iodide separations using 0.5 - 1.0 micron double filtration:

First sized concentrate @$36 . 50 /sample - Sieving sample 1 time @$ 4.50 ea/sample -Electromagnetic separations for diamond indicators:

1 sized heavy concentrates @$23.50 ea/sample -Completion of sample record forms@$ 5.00 /sample

-Binocular Microscope Picking: 1 hrs @$32.60/hr - Mounting grains in cells for polishing,

carbon -coating, scanning & analysi s : 1 mount @$ 79.90 ea

-Making pol i sh section @$ 79.90 ea -Carbon coating of polish sections@$ 29.30 ea -Scanning Electron Microscope scans-

hrs. @$146.00/hr -Marking maps illustrat ing grains in cel ls on

mounts to be analyzed by SX-50 Microprobe: mounts@$ 27.40 ea

- Completing SX-50 Microprobe analysis on 3 grains@$ 16 . 50/grain

-Completing Low Level Na analysis on oranges garnet grains@$ 3.30 ea

-Data Manipulat i on & preparation o f different charts (digitized & hard copy) hrs @$ 61.00/hr

SUB - TOTAL 7% GST (#RlOO 905 777)

Total this billing in Canadian funds

C$

35.50 19.50

25 . 75

36.50 4.50

23 . 50 5.00

32.60

79.90

49.50

312 .25 21.86

C$33 4.11

C.F.MINERAL RESEAPCH LTr_

KELOWNA, BRITISH COLUMBIA

RAY HAIMILA

7 fL:(2SC 260-85?5 FAX:(250 8~2-9435

C.F.M. 97-998 PROJECT: ALBERTA-BEACH SAND

19-SEPT-1997

SAMPLE NUMBER

HA IM ILA HAI MILA

HAI MILA HAIMILA HAIMJLA HAIMILA HAIMILA

HAI MT LA

ORIGINAL WEIGHT

(KG)

0.00

FRACTION

-20L -20I

-20+80HM =20+80H - TL. -20+80H PY.CRD -20+80H - D.

-:i()H

WEIGHT (GMS}

268.99 7.00

8.80 597.01

18.98 13.58

70.95

'

Customer:Ray Haimila(656405 Alberta Ltd.) ELECTRON MICROPROBE ANALYSIS FROM C.F. MINERAL RESEARCH LTD. 16-0ct-1997, 10:57 nm Fi le:haimi la lnv#:97-991 Batch Fi le 1197-998" Mox

Classifications Trace Sample II Mount Cell Groin SA 0 l CFM Sf02 T f02 Al203 V203 Cr203 Fc203 FcO MgO coo MnO NfO ZnO Nb205 No20 No20 K20 Toto ls .. -.. -..... ------ ++++++

HAI Ml LA 2362 6 19 SPNL .02 .03 70.93 .00 3.44 24. 18 .00 .04 . 01 .000 .00 98.66 HAI MILA 2362 6 17 p G 9 41.88 .02 21.02 4.08 8.24 18. 74 5.88 .46 .01 .020 .00 100.35 HAI MILA 2362 6 18 p G11 41.43 .06 19.69 5.83 7.29 18.73 6.34 .49 .02 .024 .00 99.89

c •

--

Page:

Customer:RAY HAIMILA File:haimila lnv#:97-1015

Classifications

ELECTRON MICROPROBE ANALYSIS FROM C.F. MINERAL RESEARCH LTD. Batch Fi le 11 97-1030 11

Sample # Mount Cell Grain SA DI CFM Si02 Ti02 Al203 V203 Cr203 Fe203 FeO MgO Cao MnO NiO

HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA HAIMILA

23B4 4 23B4 4 2362 6 23B4 4 23B4 4 23B4 4 23B4 4 23B4 4 23B4 4 23B4 4 2362 6 2362 6 23B4 4 23B4 4 23B4 4 23B4 4 23B4 4 23B4 4

1B 11 19 10 16 17 13 14 15 12

CE CP CP CP CP CV

17 p 1B p

9 p B p

19 R 20 R 21 R 22 R

CORU RUTL SPNL SPNL CPX CP2 CPX CPX CPX CPX G 9 G11 G11 G11-1 ALM ALM ALM ALM

.02 .OB 101.44

.00 97.55 .10

.02 .03 70.93

.01 .OB 69.B3 53.0B .02 1.04 52.31 .14 2.65 53.11 .06 1.65 53.39 .09 1.00 53.25 .17 1.43 52.51 .15 3.73 41.BB .02 21.02 41.43 .06 19.69 40.3B .OB 1B.57 41.40 .33 19.76 39.01 .07 22.49 36.31 .02 20.14 3 7. 11 . 04 20. 91 36.40 .03 20.B7

.07

.04

.00

.OB

.24

.BS

.70

.65

.70

.SB 4.0B 5.B3 6.57 5. 19

.04

.02

.00

.00

Page: 1

.25 .01 .00 1.1B .00 .01 3.44 24.1B .00 5.SB 23.00 .00 5.6B 15.15 22.73 3.B3 16.7B 21.46 5.14 15.12 22.17 2.66 17.01 23.99 3.09 17.00 23.43 5.16 14.0B 22.00

.01

.02

.04

.04

.15

.15

.17

.05

.OB

.13 B.24 1B.74 5.BB .46 7.29 1B.73 6.34 .49 B.40 17.SB 7.01 .4B 7.76 19.53 5.31 .37

27.99 9.50 1.05 .51 34.26 .95 7.53 .4B 30.BS 2.10 7.39 1.77 35.76 2.30 4.15 .2B

.02

.00

.01

.01

.OB

.04

.12

.01

.00

.07

.01

.02

.00

.03

.03

.00

.00

.00

ZnO

4-Nov-1997, 2:30 pm Max Trace

Nb205 Na20 Na20 K20 Totals ++++++

.003

.011

.000

.004

.3B3

.30B

. 720

.16B

.157 1.070

.020

.024

.002

.057

.012

.002

.OOB

.003

.00 101.91 #

.00 9B.92

.DO 9B.66

.00 9B.63

.OD 9B.55

.01 9B.52

.01 9B.97

.01 99.04 •

.00 99.30 •

.00 99.4B

.OD 100.35

.00 99.B9

.00 99.07

.oo 99. 74

.00 100.69

.OD 99. 71

.00 100.1B

.00 99. 7B

C.F. Mineral Research Ltd. Mineral Code Descriptions

Mineral Description Mineral Description

1 ACTN Actinolite S9 CP DI" Favorable high pressure CPX with diamond indus1on c::imposition 2 AEG-AUGT Aeg-Augite 60 CP D10· High pressure CPX with diamond indusion composition

that overlap w.th fields of CPX·s that dassify from non diamond indusion sources

3 AEGR Aegirine 61 CR Chromite 4 AKER Akermanite 62 CR-01 Chromites with major element diamond indusion composition s Al-SI Al-Silicate 63 CR-DI" Diamond indusion chromite from favorable harzburgite sources 6 ALBT Al bite 64 CR-Tl High Tt-Cr Chromite (magmatic) 7 ALM Almandine 6S CRIC Crichtonite 8 AMPH Am phi bole 66 CUMN Cummingtonite 9 AM PH-Al Al-Amphibole 67 CUMN-NA Na-Cummingtonite

10 AMPH-AL2 Al-Amphibole 2 68 CV Volcanic Clinopyroxene 11 ANAL Analcime 69 DIOP Diopside 12 ANOR Andradite 70 DOLM Dolomite 13 ANOR-TI n-Andradite 71 E Edogitic Garnet 14 ANKR Ankeriie 72 ECKR Eckermannite 1S APAT Apatite 73 ENST Enstatite 16 APAT-WlLK Apatite, Wilkei1e Series 74 ENST-L Lampro1tic Enstatite 17 APOP ApophyUite ;;_. 7S EPIO Epidote - Clino:zois1te 18 ARFY Arivedsornte 76 FLSP Feldspar 19 ARFV-K Potassium Arivedsonite 77 FLSP-BA Sa-Feldspar 20 ARMA Armalcolite 78 FORS Forsterite 21 ASTR Astropnyllite Senes 79 G 1 CFM modification after Dawson's Gr. 1 22 AUGT Augite so G2 CFM modification ai!er Dawson's Gr. 2 23 AUGT-TI Ti-Augite 51 G3 CFM modification after Dawson·s Gr. 3 24 BADL Baddeleyote 82 G4 CFM modification after Dawson's Gr. 4

25 BARK BarkeVlkite B3 GS CFM modification after Dawson's Gr. 5 26 BART Bame 84 G6 CFM modification after Dawson's Gr. 5 27 BART-SI Silica-Bame BS G7 CFM modification after Dawson's Gr. 7 2B BART-SR Sr Bante B6 GB CFM modification after Dawsan·s Gr. a 29 BARY Barytocalcite B7 G9 CFM modificauon after Dawson's Gr. 9 30 SIOT Biotite BB G11 CFM modification after Dawson's Gr. 11 31 BIOT-TI Ti-Biotite B9 G12 CFM modification after Dawson's Gr. 12 32 BUST Bustamote 90 G10 Gurney Graue 10 Pyrope 33 CALC Calote 91 G10-10· Gurney (Best) 10 score category ofG10 garnet 34 CANC Cancrini!e 92 G10-9 Gurney 9 score category of G10 garnet 3S co Chrome Diops1de 93 G10-a Gurney B score category of G10 garnet 36 CORT Cordiente 94 G10-7 Gurney 7 score category of G10 garnet 37 CE Eclogotic Clinopyroxene 9S G10-6 Gurney 6 score category of G10 garnet 38 CE· High Pressure Clinopyroxene al Eciogitic Paragenesis 96 G10-S Gurney 5 score category of G10 garnet 39 CELS Celestite 97 G10-4 Gurney 4 score category of G10 garnet 40 CHLORT Chlonte 9B G10-3 Gurney 3 score category of G10 garnet 41 · CHLRTD Chloritood 99 G10-2 Gurney (least) 2 score category of G 1 O garnet 42 CORO Coronadite 100 G11-1 Gurney 1 score category of G11 garnet 43 CORU Corundum 101 G 9-1 Gurney 1 score category of G 9 garnet 44 CP Peridotitic Clinopyroxene 4S C?· High Pressure Clinopyroxene al Peridotitic Paragenesis NOTE To calculate the pyrope score of a kimberlite, add up the total point score. 46 CP 1 Clinopyroxene - Dawson's (modified by CFM) Gr. 1 then divide by the number of garnets that scored and multiply by a factor 47 CP 2 Clinopyroxene - Dawson's (modified by CFM) Gr. 2 of 1.3. An average pyrope score of 5, for example, implies a grade 4B CP 3 Clinopyroxene • Dawson's (modified by CFM) Gr. 3 estimate of about 7S carats/100 tonnes attributable to garnet harzburgite. 49 CP 4 Clinopyroxene - Dawson's (modified by CFM) Gr. 4 so CP 5 Clinopyroxene - Dawson's (modified by CFM) Gr. 5 51 CP 6 Clinopyroxene - Dawson's (modified by CFM) Gr. 6 102 G1" Eciogitic Gamet - Best diamond inclusion composition

52 CP 7 Clinopyroxene - Dawson's (modified by CFM) Gr. 7 103 G1 Edogitic Gamet Group 1 - 2nd Best diamond inclusion

S3 CP B Clinopyroxene - Dawson's (modified by CFM) Gr. B composition

S4 CP 9 Clinopyroxene - Dawson's (modified by CFM) Gr. 9 104 G2 Edogitic Gamet Group 2 - non diamond bearing

55 CP10 Clinopyroxene - Dawson's (modified by CFM) Gr. 10 10S GLAS Glass

56 CPX Clinopyroxene 106 GROS Grossular

57 CP DI Clinopyroxene with diamond inclusion composition 107 GT General Gamet

58 CPOIO CPX with diamond inclusion composition that overlaps 10B GT-ZR-Tl Zr-n Garnet

with fields al CPX's that dassify from non diamond indusion sources

Rev. Sepl 10, 1997 Page 1 Ml NC ODES.XLS

C.F. Mineral Research Ltd.

Mineral

109 HEON

110 HOLN

111 HORN

112 HUMI

113 IL 114 IL-CA

115 JL~\1N

116 KAER

117 KALS

118 KAOL

119 KNEB

120 KUfN

121 KYAN

122 LEUC

123 LEUC-L 124 LM

125 M 125 MAGN

127 MAGN-TI

128 MARG 129 MELAN 130 MELI 131 MG1

132 MONT

133 NEPH 134 NEPT

135 NOSN

136 OLV 137 OLV-01

:38 OP1

139 OP2 140 OP3 141 OP4

142 OPS

143 OPX 144 OPX-01

145 OPX-ENS 146 OPX-HY

147 ORTH 148 p 149 PERC

150 PERV

151 PHLG

152 PHLG-TI

153 PIEM

154 PIL

155 PLAG

156 PLEU 157 PREH

-15a PRIO

159 PSBK 160 PSBK-FE

161 PYRL ~162 PYROPH

163 PYROX

164 PYRP

165 QRTZ

- 166 QRTZ-IMP 167 R

Description

Hedenbergite

Hollandite

Hornblende Humite Group

Ilmenite - Regional

Ca-Ilmenite

Mn-Ilmenite

Kaersutite

Kalsilite Kaolinite

Knebelite

Kutnohorite ' Kyanite/Andalusite/Sillimanite

Leucite Lamproitic Leucile

Megacryst Low Pressure Megacryst High Pressure (magmatic)

Magnetite

Ti-Magnetite

Margante Melanite Melilite E Gamet Megacryst with G 1 overlap

Monticellite Nepheline

Nepturnte

Nosean-Hauyne Olivine Diamond inclusion composition Olivine

Orthopyroxene - Oawson·s Gr. 1

Orthooyroxene - Dawson's Gr. 2

Orthopyroxene - Dawson's Gr. 3 Orthopyroxene - Dawson's Gr. 4

Orthopyroxene - Dawson's Gr. 5 Orthopyroxene Diamond indus1on composition Orthopyroxene

Enstatite

Hypersthene ~ .. Orthopyroxene .£. :. Peridotitic Garnet Peridase Perovskite

Phlogopite

Titanium Phlogopite

Piemontite

Picroilmenite

Plagiodase

Pseudoleucite " Prehnite

Priderite

Pseudobrookite lron-Pseudobrookite

Pyrolusite

Pyrophanite

Pyroxmangite

Pyrope

Quartz Impure Quartz Regional Gamet

Rev. Sepl 10, 1997

Mineral Code Descriptions

Mineral Description

168 RHOO

169 RICT

170 RICT-K 171 RIEB

172 RIEB-K 173 RUTL

174 RUTL-NB

175 RUTL-SI 176 SALT 177 SANO

178 SANO"L 179 SAN02 _ ....

180 SAPH

181 SERP 182 SHCH

183 SI-ZR

184 SOOL

185 SPES 186 SPES"

187 SPHENE 188 SPNL 189 SPNL-Sl-AL 190 STAU 191 STRN

192 TALC 193 TEPH

194 TOPZ

195 Tour-0

196 Tour-R 197 Tourmalin

198 TREM 199 UN01

200 UN02 201 UN03

202 UN04 203 UN05

204 UN06 205 UN07

206 UN08 207 UN09

208 UN10 209 UN11

210 UN12

211 UN13

212 UN14

213 UN16 214 UN21

215 UN24

216 WAR

217 WAD

218 WAOT 219 WILK 220 WILM

221 WOLA

222 ZOIS 223 ZR·Tl-GT

Page 2

Rhodonite

Richterite

K-Richtente Riebeckite

K-Riebeckite Ru tile NtrRutile

Si-Rutile Salite

Sanidine

Lamproitic Sanidine Sanidine 2 Sapphirine

Serpentine

Shcherbakovite

Silica-Zircon Sodalite

Spessartine

Spessartine of Broken Hill Mine composition Sohene Spmel Si-Al Spine! Staurolite

Strontianite Talc Tephro1te

Topaz Tourmaline with composition equivalent to diatreme tourmaline

Tourmaline with composition equivalent to rei;1onal tourmaline

Tourmaline with no Beran analysis Tremolite ·\

Ca-Ti Silicate K-Ti-Si Shcherbakov1te like Mn-Ti-Si

Ti Silicate Altered Sphene Cr-Fe-Si-Mg-Al Si Altered Cr. spinel Siliceous Titanites

Ca-Mg-Fe-Si Si Carbonate

Na-Fe-Si

Si Corundum Ca-Ti-Fe Silicate Altered Sphene Fe-Ti-Zr Silicate

W-Ntr Ti-Fe Oxide

Ntr Ti-Fe-Si Fe-Mg-Al-Si

Na-AJ-Si

Mg-Ca-Ti Oxide

Ca-AJ-Si Uvarovite

Wad

Wadeite Wilkeite Willemite

Wollastonite

Zoisite

Zr-Ti Garnet

MINCOOES.XLS

13

Sh~llow T~rget Enhancement

(aeromagnetic survey map)

and

Sample Location lV[ap

CAL 11\.J C)

lfltle

DOO

0 0

0 -

PARK

s r 1n· Er r A RAM ET EH s I

TKAf£KSF LI~£ SPACING : 200 ~ETERS F/ W C O~TROL LINE SPACING : 1000 ~ETER S ~/S

PLVl~C llEICll'f : 100 " ETERS DRAPE

DATO!: NAll-2?

PHO ,J ECT J OK PARAMETERS

PROJECTION: un1 ELLIPSOID : CLARICE 1886 UN ITS. Ul:TERS CENTRAL MERIDIAN . -111 DECREES JEST LATITUDt:: OHIGll\ . 0. 0 UtGKt;t;~

SCHE FACTOR· 0.9996 FALSF EASTl~C 500000 . 0 METIERS PALS£ NORTHING : 0 . 0 METERS

. , , ..

... ,..___.___-......1 ___ 11L., -, -.......L..lu·~

\LBERTA LTD.

CA I. L I ~ G LAKE H HA ~1 S l H \' E Y

Explorat:J'on Sp E CTR A Geoscfence Corp.

S II A L L 0 W T ,\ R G E T r; N 11 t\ ~ C E ~IE '\ T

of TOl~L MA G~£TIC l~TE~ S ITY

Q -113'1 0 C>

\" okamc bre'-cia and beach concentrates of garnets- found on the

llOI thea~l ~hc...>1 e ur l'aHing La"-e Park

I e:,

Refrrences

Bruton, E_ l 9715., Diamonds Znd edition, P-ubtished in Radnor, Pennsylvania by Chliion Book Co_

Dufresne, lVLB_,_ oison, RA.,_ Schmitt, DR.,. Mckinstry, b., Eccles, D.R., Fenton, MJ.\'LYawtowicz,J.G.,

Ectwards,w WAD., and Rlchardson, RJ.H. the Diamond P-otendal of Alberta; A Regional Synthesis of the Structural and Straiigraµhic Setting, and other Preliminary Indications of Diamond Potential_ Alberta Research

Council Open file report 1994-W

Dunne, K, and Grant.B., (editors). i993, IVtid-continent Diamond:;; GAC-IV1A.C Symp0sium Voiume, Edmonto1L Alberta. Geoiogicai Association of Canada Minerai Deposits Division.

fipke,C., 1989, Llle Deveiopment of Sedimentary and Petroleum Geoiogy, Geological Survey of Canada {GSC)

Caigary, Alberta.

Haimiia,R.( 1995). 1995 Assessment Report, Metailic and Industriai Permits Nos:93930S0543 to 93930S054i~

ill# 1995 0029.

Haimila,R. (l 996). Assessmem Report Metallic and Industrial Perrnits Nos:5i394 ll 0001 ro 9"39"4 l W004;

lD# l 997000 L I !

Haimita, R. ( 1997}. 1996 Assessment Repory'Met.allic and Industrial Permits Nos; 9394020021 to 9394020023

and 939403000 l ;R Haimiia.

Heimstaedt.H.H., and GurneyJ.J., 1992. Geotectortic controls on the formation of diamonds and then kimberlitic and lamproitic host rocks. Applications to diamond e.xplon~tion. In Proceedings Volume, Fifth International Kimberlite

Conference, Araxa, Brazil. Edited by H.R. Meyer, in press.

Helmstaedt,H.H_, Schulze,D J ., and Kaminsky .F ., 1995. Diamonds-Theory and Exµioration--A "Hands-On' Short

Course 20, Cordillet:an. Section, Geological_Association. of Canada. Vancouver, B. C

LeCheminanLA..N.,_Richardson,D.G.,Dilabio,R..N.W .,.Richardson,KA (edited by) _l9% searching_for_Diamonds in Canada_ GSC open file 3228.

J\'ntcheli,R.K, l989. Kimberliies Plenum Ress. New York anrl London.

IVIichell,R.H., and Bergman,S., 1991. Petrology ofLamproites. Plenum Press. new York and London

Mitchell,R.H. 1995. Kimbertites, Orangeites~ and Related Rocks. Plenum Press. New York

Ross,G.lVL, (editor), 1995. Alberta Basement Transects Workshop, Lithoprobe Report# 47

Lithoprobe Secretariat, University of Brithish Columbia.

Viiteneuve.ivf.E., Ross.G.M., Theriault,R.J., l\1iles,W., Parrish,R.R. and Boone,J,, 1993. Geological Survey of Canada Bulletin 447. Tectonic Subdi..,ision and U-~h Geochmoolgy of the Crystalline

Basement of the Afberta Basin, Western Canada.

17

STA TFJv1ENi Of COSTS

Pmspectin5'- 2 men , equipment, and 4x4 vehicle

(4 days@ 10 hrsfday@$50.00/hr/man} .................................................................. $4,000.00

(mobilization and demobilization) ..................................................................................... $150.00

Assay and electron probe (processsing, picking, and microbe of11 grains). ...................................................... $680.60

(transportation costs of sample to CF Minerals) ........................................................... $7-0.00

Seismic Data Review (0.5 day@ $650.00/day) ........................................................................................... $325.00

Meeting \vlth. Kennecott Representatives in Vancouver . . ~ "'! - , ' -. "'! "gh ') -·17 .... (trip tor .... to~ ancouver tor - m ts ............................................................................ $ ..:.UO.UU

(time and sample preparati-0n to Kennecott from Calgary) ............................................. $150.00

Report Costs (digital color printing, preparation time and binding costs) .............................................. .$800. 00

"·1 ··15°'· $'56 7''\ i .... anagement \ :10) ...................................................................................................... 9 .. ~-

Total to be applied to Mineral Permit No. 939403000] ............................................... $7531.25

Also to be awlied to Mineral Permit No. 939403000 l Credit from 1996 Assessment Report for PernlitNos. 9394020021 to 9394020023 and 9394030001 ............................................................................................................ $2-00(J.00

Credit fr.om the 1998 Assessment Report for Permit Nos.9394020021 to 9394020023 ................................................................... ······· ......................................... $4000.00

T~c~I t-0~11~plwd m Minerai Per&it N-0. 9'394030001 .......... ___ ....................... $13,sJl.25

Value of Assessment dae oo permit N6. 9394Cr3000l (75 sections@$2560.{J()=$l9,200.00)

Monies in Heu of work ............................... $.19,200.00- $13,531.25= S~668.75

IB