Government of Newfoundland and Labrador

Tewbtthdand Department of Natural Resources

Labrador Mineral Lands Division

Registry File Nos Geological Survey No OOtIj705:1443

Confidential Until: OPENMineral Rights

QLicence QExtended Licence Qlmpost flvlimng Lease Regional El Other

Licence/Property No of Claims Assessment Year Date Issued NTS Map

705 1443 32 2013 (Year 1) 2013-04-01 01 N106

Continued next page Q Yes ElNo

Number of Volumes

Digital Copy Only ElEnclosures (indicate number of each)

CD: DVD: Flash drive: Paper Maps:

Other

Received 2014 032?Signed

Comments Quarry Materials Exploration Licence (1 year) assessment

2018-10-05Date:

ASSESSMENT REPORT

of

POTENTIAL AGGREGATE RESOURCE ESTIMATE &

PROPERTY VISIT

on

QUARRY MATERIALS EXPLORATION LICENCE 705:1443

HOLYROOD

CONCRETE AGGREGATE PROJECT

NTS 1N/06 Holyrood, NL.

by

Brad Dyke, P. Geo., Project Geologist

for

Pennecon Limited

Work Conducted: June, 2013 to March, 2014 Total Expenditures: $6,208.10

Total Hectares: 800 March, 2014

i

TABLE OF CONTENTS

Page 1.0 INTRODUCTION 1 2.0 ACKNOWLEDGEMENTS 1 3.0 LOCATION, ACCESS AND PHYSIOGRAPHY 3 4.0 CLAIMS DESCRIPTION AND STATUS 5 5.0 GEOLOGICAL SETTING 5 5.1 Regional Glaciation 5 5.2 Property Surficial Geology 6 6.0 PREVIOUS WORK 9 6.1 Historic Work 9 7.0 CURRENT QUARRY ACTIVITY 12 8.0 2013 EXPLORATION PROGRAM AND RESULTS 12 8.1 Introduction 12 8.2 Potential Aggregate Assessment 13

8.3 Property Visit 13 8.4 Aerial Imagery 13

9.0 CONCLUSIONS AND RECOMMENDATIONS 16 10.0 REFERENCES 17

ii

LIST OF FIGURES

After Page Figure 1: Property Location Map 1 Figure 2: Claims Location Map 3 Figure 3: Surficial Geology Map 7

Figure 4: Potential Aggregate Map 13 Figure 5: Imagery Map 14

LIST OF TABLES Page Table 1: Personnel and Contractors 1 Table 2: Quarry Materials Exploration Licence Description 5

LIST OF APPENDICES

# of pages

Appendix A Statement of Expenditures 1 Appendix B Photographs 3

1

1.0 INTRODUCTION

This assessment report provides a summary of an initial satellite imagery interpretation of the property area for its aggregate potential followed by a one day field visit in late 2013 to assess some of the identified potential areas of aggregate and develop a general understanding of the surficial geology of the area. This work was completed by the author within quarry materials exploration licence 705:1443 and under what is referred to as the Holyrood Concrete Aggregate Exploration project

The Holyrood project is located in eastern Newfoundland on the Avalon Peninsula off the Holyrood Access Road and is roughly 30 km southwest of the City of St. John’s (Figure 1). The property consists of one quarry materials exploration licence, which covers 800 ha. The exploration licence covers two recently applied for Quarry Leases by Capital Ready Mix Limited and is located in a historically active quarrying area. Throughout the 80’s the majority of the concrete aggregate for the northeast Avalon was sourced from this general vicinity.

Based on the continual and increasing demand for concrete aggregate Pennecon is constantly trying to source high quality aggregate of significant volume in close proximity to the final market to ensure a reasonably priced product to the customer. The 2013 work program was completed in preparation of a 2014 test pitting program. The desktop work and field investigation permitted Pennecon to identify high quality target areas within the exploration licence.

2.0 ACKNOWLEDGEMENTS

A list of personnel and contractors, who worked on the Holyrood project during the 2013 exploration program, is presented in Table 1 below.

Table 1: Personnel and Contractors

PENNECON PERSONNEL

Name Position Residence Person Days Brad Dyke, P.Geo. Project Geologist St. John’s, NL 7 Rod Mercer, P.Geo. Mineral Resources Manger Bay Roberts, NL 1

Total Person Days = 8

CONTRACTORS

Company Service Location Integrated Informatics Inc. Digital Data Calgary, AB

3

3.0 LOCATION, ACCESS AND PHYSIOGRAPHY The Holyrood project is located in eastern Newfoundland on the Avalon Peninsula on 1:50,000 NTS map sheet 1N/06. The majority of the project area is located east of the Holyrood Access Road (Route 62) and north of the Trans Canada Highway (TCH), approximately 30 km southwest of the City of St. John’s (Figure 2).

The exploration licence can be easily accessed in the south and is slightly more isolated in the north. There is a main gravel access road which leads to several old quarry sites in the south, with an active quarry in the area as of the fall of 2013. Another access road in this area is restricted, as it is a private route to commercial land occupied by Schlumberger with a warehouse facility on it. The extreme southern portion of the property can be accessed via an old quarry site immediately where Route 62 meets the TCH. The northern half of the property is a little trickier to get at. The northeastern section is best accessed through the old quarry workings and the northwest portion can accessed off a transmission line that extends through that corner of the exploration licence from Route 62. These routes and trails provide primary access to a large portion of the property by truck and/or ATV. The remainder of the project area can be accessed on foot.

It should be noted that the entire project area is located within the municipal boundary of the Town of Holyrood.

The project area ranges from 46 m above sea level (asl), located in the northwest portion of the project area, to 229 m asl along the southern boundary. Generally along the eastern margin of the licence elevations are higher, around 168 m asl and 213 m asl, with lower elevations along the western boundary at around 46 m asl in the north to 122 m asl in the south. This terrain gives way to more of a hummocky style depositional environment with in place glacial melt and mounds of aggregate observed throughout.

The property area is forested mainly with balsam fir intermixed with tamarack and some minor white birch. In areas where previous workings are present there is mostly alder growth. Due to the hummocky nature of the area there are sporadic bogs and small ponds throughout. In the north and northwestern portion of the property the topography is more, low lying and there are more marshy areas present with a large pond called Fenelons Pond in the area. Streams generally trend east-west and typically flow to the west, into Mahers River, then north into Conception Bay (Atlantic Ocean). During a brief one day visit by the author no outcrop exposure was observed.

34

4,0

00

mE

Pennecon Limited

NTS: 1N/06

Revised Date:

Project: Holyrood Property (Exploration Licence 705:1443)

Date Drafted: 03/13/2014

CLAIMS LOCATION MAP

Drafted By: B. Dyke

Scale: 1:25,000

Area: Eastern, NL

NAD 83, UTM Zone 22

Figure 2

File: Claims Location Map.wor

Roads & Secondary Trails

Pennecon Ltd. QuarryMaterials Exploration Licence

Municipal BoundaryTown of Holyrood

Abandoned Railway Track

Claims Status as of March 13, 2014

705:1443

CLAIMS LEGEND

Bog/Marsh

5

4.0 CLAIMS DESCRIPTION AND STATUS Quarry materials exploration licence 705:1443 makes up the entire property and covers 800 ha or an area of 8.0 km2 (Table 2). The property is located on 1:50,000 NTS map sheet 1N/06 with the northeast corner located at 342,000mE; 5,250,000mN (NAD 83, UTM Zone 22; Figure 2). Licence 705:1443 was issued on April 2, 2013 to Pennecon Limited. The licence is 100% owned by Pennecon Limited with no underlying agreements. Approximately $6,000 in expenditures are being filed and thus with the acceptance of this report licence 705:1443 will be renewed in full on April 1st, 2014, the expiry date. Table 2: Quarry Materials Exploration Licence Description

Licence Number

Number

of Hectares

Expenditures

Required

Licence Issue

Date

Report Due

Date

Licence Holder

705:1443 800 $4,000 April 2, 2013 April 1, 2014 Pennecon Limited

Total

800

$4,000 (updated March 13, 2014)

5.0 GEOLOGICAL SETTING 5.1 Regional Glaciation The last ice age during the Late Pleistocene time period covered most of Canada. There were three major ice sheets that covered much of North America during this time and these make up the majority of the most recent glaciation event typically referred to as the Wisconsinan North American ice sheet complex. The three ice sheets include the Laurentide Ice Sheet which was centred on the Canadian Shield and extended west and south into the Interior Plains; the second is the Cordilleran Ice Sheet which was located along the west coast of North America and extended from the northern United States to Alaska and the Yukon; and the third ice sheet was the Innuitian Ice Sheet which blanketed the majority of the Canadian Arctic (Dyke, A., 2004). Separate from these three ice sheets, during the same time period, was an isolated glaciation over Newfoundland and the Maritimes which is referred to as the Appalachian Ice Complex. In this case ice flowed out from local centres and not the Canadian Shield. The mainland portion of Newfoundland and Labrador (NL), that being Labrador, was glaciated by the Laurentide Ice Sheet with a small portion of the ice sheet extending onto the tip of the Great Northern Peninsula. Any evidence of glaciation in

6

Newfoundland & Labrador prior to the Wisconsinan event is limited and there is very little indication of multiple till sheets throughout the province (Dyke, A., 2004). During the Wisconsinan glaciation event all of Labrador was covered by the Laurentide Ice Sheet except for the peaks of the northern Torngat Mountains and Mealy Mountains, south of Lake Melville. Ice generally flowed out from central Labrador in all directions expect for in the north where the Torngats restricted ice flow to major valleys through the mountain range. It was around 6,500 years ago that the Laurentide Ice Sheet finally finished melting in the Schefferville area of western Labrador (Batterson & Liverman, 2000). The majority of the island portion of NL was covered with smaller ice caps independent of the Laurentide Ice Sheet. These independent ice sheets occurred over the Avalon Peninsula, central Newfoundland and the Long Range Mountains. In some cases the ice sheets overlapped at different times generating complicated ice flow patterns. Approximately 12,500 years ago coastal areas became ice free as the glaciers began to melt. There was a brief melting hiatus around 10,500 years ago with the subsequent complete melting of the ice sheets located on the island portion of NL (Batterson & Liverman, 2000). 5.2 Property Surficial Geology The Holyrood exploration licence covers an area that has seen the surficial geology previously mapped on a broad scale. The majority of the project area is classified as being underlain by till veneer. There are also sections of concealed bedrock noted and in the northeast an area of hummocky terrain has been mapped (Figure 3). The till veneer is classified on the Liverman and Taylor Surficial Geology of Insular Newfoundland map as being <1.5 m thick and a discontinuous sheet of poorly sorted sediment containing a mixture of grain sizes from clay to boulders and overlying bedrock with some exposed bedrock and thicker sediment cover also being common. Concealed bedrock is described as being mainly covered by vegetation, patches of till, sand and gravel, and bog with some exposed bedrock. Hummocky terrain is broadly explained as being composed of poorly sorted sediment containing a mixture of grain sizes from clay to boulders or composed of sand and gravel. This hummocky terrain is generally between 2 to 10 m high and mainly composed of poorly sorted sediment but can contain sand and gravel. It is common to find boggy areas between the hummocks as the depositional environment would have been the in situ melting of an ice sheet (Liverman & Taylor, 1990). On a property scale, the one day field visit confirmed the presence of a significant broad hummocky terrain that has yet to be explored. The possibility of a wedge of aggregate in the northeast was also considered. Ricketts, 2001 (Map 2001-04) documents a roughly 700 m wide by 4,000 m long mapped area, within the property, containing

7

aggregate material of granular composition (e.g. sandy tills and colluvium) that contain <15% silt and clay content. This material could be improved for higher grade uses by screening and washing. Map 2001-04 also highlights 49 aggregate samples collected for sieve analysis from within the exploration licence. Of the 49, 19 commonly contained gravel or sand having a silt content <5% and being commonly graded and stratified. The remaining 30 samples typically contained till which was poorly graded and of variable grain size with a silt content >5% and <15% and the stone size exceeding the allowable limits for most geotechnical purposes. The aggregate material would require secondary processing including crushing, screening and washing (Ricketts, 2001). The above noted area coincides with planned test pitting work for 2014 in the northeast and south of the property. It is anticipated, based on the previous work in the area, that suitable aggregate will be discovered. To date, previous test pitting within the project area has identified a mixture of fine, sorted and unsorted sand, gravel, boulders and silt. Test pits show that the aggregate is typically comprised of sand, gravel and boulders with a general composition of 10% boulders, 25% gravel, 50% sand and 15% silt. These observations are based on limited historical test pitting. Overall the surficial geology within the project area is composed primarily of a sandy and gravelly till, deposited as a result of a stagnate ice sheet that generally melted in place and gave way to a hummocky moraine setting. It is important to note that as a result of this the aggregate quality can be varied and unpredictable. The above surficial geology description is based on historical test pits, previous mapping and a one day field visit. The description and understanding of the area, on a property scale, is an evolving work in progress and therefore is somewhat limited at this time.

34

4,0

00

mE

Revised Date:

Pennecon Limited

Date Drafted: 03/13/2014

SURFICIAL GEOLOGY MAP

NTS: 1N/06

Area: Eastern, NL

NAD 83, UTM Zone 22 Drafted By: B. Dyke

Figure 3

Scale: 1:25,000 File: Surficial Geo Map.wor

Project: Holyrood Property, Licence 705:1443

Roads & Secondary Trails

Pennecon Ltd. QuarryMaterials Exploration Licence

Abandoned Railway

Bog/Marsh

LEGEND

705:1443

HUMMOCKY TERRAIN

GLACIOFLUVIAL GRAVELAND SAND

MARINE CLAY, SAND,GRAVEL AND DIAMICTON

EXPOSED BEDROCK

CONCEALED BEDROCK

Note: This map is adapted fromMAP 90-08 compiled by Liverman,D. & Taylor, D.; 1990

TILL VENEER

GEOLOGY LEGEND

TILL BLANKET

RIDGED TILL

BOG

ALLUVIUM

COLLUVIUM

9

6.0 PREVIOUS WORK 6.1 Historic Work A detailed review of all previous work documented under the Government of Newfoundland and Labrador’s GeoScience OnLine website (http://gis.geosurv.gov.nl.ca/) was completed. All relevant Geofiles were downloaded in pdf format (http://gis.geosurv.gov.nl.ca/minesen/geofiles/) or photocopied by the Department of Natural Resources and couriered to the author. This search dated back to the early 1900’s and yielded a relatively significant amount of previous work within and immediately around the exploration licence. 1949 (Summers, W.F.)

Summers provided one of the earliest complete descriptions of glaciation on the Avalon Peninsula. He described eskers and moraine ridges and attempted to reconstruct ice flow patterns. 1953 (McKillop, J.H.)

The earliest documentation of an assessment of the aggregate potential in the Holyrood area was completed by McKillop in 1953. He visited and assessed an area near Hawco’s Pond northeast of Holyrood off Route 60. Through this investigation he noted that the valley south of Hawco’s Pond is underlain by sand and gravel. 1978 (Kirby & Vanderveer) & 1982 (Kirby et. al.)

Between 1975 and 1980 the Department of Mines and Energy was tasked with carrying out a reconnaissance aggregate sampling program within a 6 km corridor of existing and proposed transportation routes across Newfoundland and Labrador. This Gravel Resource Inventory began in ’75 as part of the Surficial and Glacial Project. The results of this work defined areas containing significant aggregate within the 6 km corridor across the island. This enabled construction companies to more easily locate and define material suitable for the work it was required for. The Department of Mines and Energy built on this initial program and work carried well beyond the early 80’s and continues today. This was the first real step in defining and accurately mapping aggregate resources for industrial use throughout the island. 1981 (Blagona, N.)

In the fall of 1981 Geotechical Associates Limited drilled 8 holes in the Holyrood area for Concrete Products (CP). Of the 8 holes drilled 5 were within the current operations of CP. These holes hit bedrock in places at as shallow as 0.6 m and in other places holes were drilled to as deep as 12.8 m without hitting bedrock. The samples from the core were described as being composed of gravel (on average 43.3%), sand (on average 45.3%) and silt (on average 11.4%) with interbedded boulders. It is also

10

important to note that the composition of the aggregate is primarily granite derived. It was noted that the water table level in the area will restrict development to above the 119 m contour. At the time it was estimated that 908,371 tons remained within the current operation area.

There were also 3 exploration holes drilled on Crown Land adjacent to CP’s current operation at the time. All 3 holes were drilled to a depth of 9.0 m and no bedrock was encountered. Samples collected averaged 44% gravel, 44% sand and 12% silt. The primary composition of the aggregate was granite, greywacke and minor andesite. 1988 (Kirby, F.T.)

During 1987 in and around the St. John’s Peninsula and the Conception Bay North area bedrock sampling was completed to assess its potential as an aggregate source. Also, during the same field season a hammer seismic survey was carried out, mainly in areas of known aggregate resources. This was done in an attempt to determine overburden thicknesses so that aggregate reserves could be more easily estimated. A few of the hammer seismic surveys were completed in the general Holyrood area. 1990a (Kirby, F.T.)

During the 1989 field season a test pitting work program, utilizing a backhoe, was completed in the Holyrood area. Test pit samples were collected and sieve, lithological and petrographic analysis were completed. At the time the area was considered a major supplier of concrete aggregate for the northeast Avalon. A total of 17 pits were excavated to an average depth of 3.5 m and contained on average 57.5% gravel, 37.6% sand and 4.9% silt with an average petrographic number of 120. It was noted by Kirby that additional work would be completed to try and extend the aggregate resource to the north. 1990b (Kirby, F.T.) & 1991 (Kirby & McGrath)

In 1990 an additional aggregate assessment was completed along the east side of the Holyrood Access Road adjacent to the quarrying area and north of the 1989 test pits. This work included the collection of 14 samples and was successful in increasing the aggregate reserves present. These pits had an average depth of 3.1 m and on average contained 57% gravel, 37% sand and 6% silt with an average petrographic number of 109.

The surficial geology was summarized as a north-south orientated valley composed of hummocks that range between 5 to 10 m and have shallow bogs in between. Hummocks are typically composed of sandy till with scattered boulders and some gravel.

11

1992 (Catto, N.R.)

Mapping completed by Catto during 1992 in the Holyrood area has indicated the region was affected by glaciation from the southwest, St. Mary’s Bay area, and from the southeast, Witless Bay Line/Avalon Wilderness area. This was determined based on observations of striations and glacially smoothed bedrock in the area. The influence of glaciation from the southeast does not extend beyond the Avondale Access Road located west of the Holyrood Access Road. 1995 (Ricketts, M.J. et. al.)

A summary of significant granular aggregates in 1995 by the Department of Natural Resources, Geological Survey, highlighted the Holyrood Aggregate Deposit. A total of >2 million m3 of washed till and gravel was noted with an average of 59% gravel, 36% sand and 5% silt-clay, including an average petrographic number of 127, based on 50 samples. 2009 (Coates, H.J.)

Atikwa Minerals held a mineral exploration licence just west of the Holyrood quarry area in 2008 and completed a reconnaissance style exploration program. They were successful in identifying elevated gold, silver, copper, molybdenum and uranium values. Based on the exploration work Coates surmised that the property contained the potential to host porphyry Cu-Mo-Ag-Au style mineralization, polymetallic veining and possibly uranium mineralization. 2009 (Cooper & Ryan)

While aggregate exploration work was being completed in 2009, mineral exploration work was also ongoing in the same general area. Prospecting work completed by Ryan was attempting to identify an epithermal gold system in the area. Ryan did identify some anomalous gold values in the region. 2009a (Mercer, R.)

In 2009 Mercer excavated 10 test pits by utilizing an excavator and outlined an area of aggregate roughly 500 m by 1,600 m. These pits were generally around 3 m deep with several extending beyond 5 m. Overall the sieve analysis results were encouraging, with the average silt content around 9.5%. Further test pitting work was recommended to complete a more detailed assessment of the area and allow for an accurate volume calculation. 2009b (Mercer, R.)

As a follow up to the test pitting program completed earlier in 2009, Mercer completed a field program where the mapping of glacial features was completed around the previous test pits to aid in calculating a volume of aggregate. It was reported that the area

12

contained 3.53 Mt based on the excavation of 10 test pits and completing the field mapping. Recommendations included the securing of this ground through quarry permits. 2010 (Mercer, R.)

In early 2010, Stantec was contracted to complete sampling within the Holyrood Quarry area for chemical and physical aggregate acceptance testing. This work was done as a result of a potential future customer of Pennecon requiring that the testing be completed. The results of this work were not submitted. It was recommended by Mercer that further test pitting be completed and detailed resource delineation work extended to the south. 2010 (Tract)

During the summer of 2010 Tract Consulting Inc. were contracted to carry out a visual impact assessment in the Holyrood quarry area where Pennecon was proposing two new quarry sites. This work was completed to assess any visual impact the sites might have on the Willows Golf Course, located on the opposite side of the Holyrood Access Road. It was determined that a couple of small pockets within the lease could potentially be seen and as a result these areas were excluded in the lease application. 7.0 CURRENT QUARRY ACTIVITY Within and adjacent to the Holyrood exploration licence there are two current quarry permits held in the area of the historical quarry sites. These are retained by Black Ridge Construction Ltd. and Buckle’s Contracting. Other permit holders, in 2012, included the Town of Holyrood, Vincent Besso Ltd. and JAL Packaging Ltd. Also, of note is an application made by Penncon/Capital Ready Mix for the approval of two separate quarry leases adjacent to the historical workings within the Holyrood project. 8.0 2013 EXPLORATION PROGRAM AND RESULTS

8.1 Introduction The 2013 Holyrood work program included a preliminary desktop aggregate assessment within the exploration licence, a subsequent one day field visit and the acquisition of high resolution aerial imagery for the project area. All of the expenditures related to the above noted work are presented in Appendix A and any relevant digital MapInfo® files have also been submitted with this report and are in UTM projection NAD 83 Zone 22. The exploration work completed to date is of a preliminary nature and was designed to

13

identify areas for subsequent test pitting work with the hopes of outlying a significant concrete aggregate resource. 8.2 Potential Aggregate Assessment Satellite imagery of medium quality resolution available through MapInfo® Software, utilizing Bing, was used to assess the exploration licence for areas that may contain aggregate. This assessment took into consideration various buffer zones around ponds and streams, it excluded marshy areas, excluded anything that looked like private land, excluded all historic and active quarrying and took into consideration any other obvious things that might restrict a quarry operation. The result of completing this digitizing work was an outlined potential aggregate source with a surface area of 4,925,000 m2. Using a conservative 3.0 m thickness over the entire digitized area a very rough estimate of approximately 31 million tonnes is possibly located within the exploration licence (Figure 4). 8.3 Property Visit In late 2013 a one day property visit was completed. The author and Pennecon’s Aggregate and Mineral Resources Manager Rod Mercer spent a day following up on some of the areas that may contain aggregate which were identified above. Mr. Mercer had completed previous test pitting programs within the property and had intimate knowledge of the depositional setting. Through this field visit areas were identified for future work (Figure 5). Also, in Appendix B some photos from the field visit are present. These show historic workings, what the terrain looks like and active quarrying operations. Also, field observations of the two areas where the recently submitted quarry lease applications, under Capital Ready Mix, were made (Figure 5). This included looking at some of the previous test pit sites and developing a better feel for the hummocky nature of the area. 8.4 Aerial Imagery Aerial imagery was acquired through Integrated Informatics Inc. (Figure 5). This digital color orthorectified aerial imagery was sourced from the Surveys and Mapping Division of the Government of Newfoundland and Labrador and the imagery was acquired in 2009 with a 50cm resolution. The source coordinate system for the original files is NAD83 MTM Zone 1. This projection has been re-projected to NAD83 UTM Zone 22 so that the imagery can be used by the author in MapInfo® with the current working coordinate system.

Pennecon Limited

Scale: 1:20,000

Date Drafted: 03/13/2014

Revised Date:

NTS: 1N/06

POTENTIAL AGGREGATE MAPFigure 4 Area: Eastern, NL

NAD 83, UTM Zone 22 Drafted By: B. Dyke

Project: Holyrood Property, Licence 705:1443

File: Pot Agg Map.wor

Date Drafted: 03/14/2014

Revised Date:

IMAGERY MAP

Pennecon Limited

NTS: 1N/06

Figure 5 Area: Eastern, NL

NAD 83, UTM Zone 22 Drafted By: B. Dyke

Project: Holyrood Property (Exploration Licence 705:1443)

Scale: 1:20,000 File: Imagery Map.wor

17

10.0 REFERENCES Batterson, M. and Liverman, D. (2000): Contrasting styles of glacial dispersal in Newfoundland and Labrador: methods and case studies, In Current research, Edited by C. P. G. Pereira and D. G. Walsh, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey, Report 2000-1, Geofile Number NFLD/2694, pages 1-31. Blagona, N. (1981): Aggregate Survey, Concrete Products Ltd., Holyrood Pit Operation, Holyrood, Newfoundland, Geotechnical Associates Ltd., 6 pages. Catto, N.R. (1992): Quaternary geological mapping, northwestern Avalon Peninsula, In Report of activities 1992, Edited by C. P. G. Pereira, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey Branch, Report of Activities, Geofile Number NFLD/2490, pages 69. Coates, H.J. (2009): First year assessment report on geological and geochemical exploration for licence 15308M on claims in the Holyrood area, on the Avalon Peninsula, Newfoundland, Atikwa Minerals Corporation, Newfoundland and Labrador Geological Survey, Assessment File 1N/06/0855, 50 pages. Cooper, G.E. and Ryan K.P. (2009): First year assessment report on prospecting and geochemical exploration for licences 14649M, 15062M-15063M, 15360M and 15457M on claims in the Long Gully area, near Holyrood, on the Avalon Peninsula, Newfoundland, Newfoundland and Labrador Geological Survey, Assessment File 1N/06/0834, 25 pages. Dyke, A.S. (2004): An outline of North American Deglaciation with emphasis on central and northern Canada, Geological Survey of Canada, In Quaternary Glaciations - Extent and Chronology, Part II, edited by J. Ehlers and P.L. Gibbard,.Developments in Quaternary Science, Vol. 2, Part II pages 373-424. Kirby, F.T. (1978): Gravel Resource Inventory of Newfoundland Project, In Report of activities for 1977, Edited by R. V. Gibbons, Government of Newfoundland and Labrador, Department of Mines and Energy, Mineral Development Division, Report 78-01, Geofile Number NFLD/0973, pages 172-178. (1988): Detailed aggregate resource assessments-insular Newfoundland, In Current research, Edited by R. S. Hyde, D. G. Walsh and R. F. Blackwood, Government of Newfoundland and Labrador, Department of Mines, Mineral Development Division, Report 88-01, Geofile Number NFLD/1701, pages 373-377.

18

(1990a): Detailed aggregate-resource assessment project, Newfoundland and Labrador, In Current research, Edited by C. P. G. Pereira, D. G. Walsh and R. F. Blackwood, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey Branch, Report 90-01, Geofile Number NFLD/2493, pages 19-26. (1990b): Detailed aggregate-resource assessments, insular Newfoundland, In Report of activities 1990, Compiled by C. P. G. Pereira, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey Branch, Report of Activities, Geofile Number NFLD/2488, pages 64-65. Kirby, F.T., Ricketts, R.J. and Vanderveer, D.G. (1982): Inventory of aggregate resources, In Current research, Edited by C. F. O'Driscoll and R. V. Gibbons, Government of Newfoundland and Labrador, Department of Mines and Energy, Mineral Development Division, Report 82-01, Geofile Number NFLD/1288, pages 224-227. Kirby, F.T., and McGrath, B. (1991): Detailed aggregate-resource assessment project, insular Newfoundland, In Current research, Edited by C. P. G. Pereira, D. G. Walsh and R. F. Blackwood, Government of Newfoundland and Labrador, Department of Mines and Energy, Geological Survey Branch, Report 91-01, Geofile Number NFLD/2494, pages 19-27. Liverman, D. & Taylor, D. (1990): Surficial geology of insular Newfoundland, preliminary version, Newfoundland and Labrador Geological Survey, Map 90-008, Geofile Number NFLD/1994, 1 page - map. McKillop, J.H. (1953): Report on sand occurrence southside Holyrood, Conception Bay, Newfoundland, Geofile Number 001N/12/0039, 2 pages. Mercer, R.

(2009a): Assessment report on sampling and industrial mineral quality for 2009 submission for quarry materials exploration licence in the Holyrood area, on the Avalon Peninsula, Newfoundland, Pennecon Limited, Newfoundland and Labrador Geological Survey, Assessment File 1N/06/0852, 24 pages.

(2009b): Assessment report on resource estimation for 2009 submission for quarry materials exploration licence in the Holyrood area, on the Avalon Peninsula, Newfoundland, Pennecon Limited, Newfoundland and Labrador Geological Survey, Assessment File 1N/06/0861, 8 pages.

(2010): Assessment report on aggregate sampling for 2010 submission for quarry materials exploration licence in the Holyrood area, on the Avalon Peninsula, Newfoundland, Pennecon Limited, Newfoundland and Labrador Geological Survey, Confidential Report, 7 pages.

19

Ricketts, M.J. (2001): Granular-aggregate resources of the Holyrood map sheet (NTS 1N/06), Newfoundland, Newfoundland and Labrador Geological Survey, Open File 1N/06/0668, Map 2001-04. Ricketts, J., Kirby, F. & Batterson, M.J. (1995): Granular aggregates in Newfoundland and Labrador, Department of Natural Resources, Government of Newfoundland and Labrador, Geofile Number NFLD/2531, 8 pages. Summers, W.F. (1949): The physical geography of the Avalon Peninsula of Newfoundland, MSc, Mcgill University, Montreal, Quebec, Geofile Number 001N/0030, 210 pages. Tract (2010): Visual Impact Assessment, Holyrood Quarry Site, Pennecon Limted, Tract Consulting Inc., Internal Report, 16 pages.

APPENDIX A

STATEMENT OF EXPENDITURES

Statement of ExpendituresHolyrood Project, Licence 705:1443

Description Assessment Details ExpenditureGeologist - Project Geologist Brad Dyke 7 man daysGeologist - Mineral Resource Manager Rod Mercer 1 man day

Subtotal for Salaries 3,671.35$ Digital Data Integrated Infomatics Inc. 1,525.00$ Test Pit Excavation -$ Sieve Analysis -$ Surveying Test Pit Sites -$ Reclamation -$ Freight/Courier/Postage -$ Consulting Report -$ Road Access / Improvements -$ Meals, Accommodations & Airfare -$ Communication (phone) blackberry usage 25.00$ Equipment Operating/Maintenance -$ Equipment Rental -$ ATV Rental $50/day -$ Vehicle Rental and Operating 102.00$ Field/Office/Safety Supplies -$ Map Production Expenses/Digitizing Equipment, Supplies, etc. 1 day @ $150/day) 75.00$

Subtotal 5,398.35$ Administration Fee (15%) 809.75$ Total 6,208.10$

Required Expenditures 800 hectares 4,000.00$ Excess Expenditures 2,208.10$

(April 1st, 2014 Anniversary Date)

APPENDIX B

PHOTOGRAPHS

 

Plate 1: Historical Workings 

 

Plate 2: Historical Workings 

 

 

 

Plate 3: Typical Landscape within Exploration Licence (looking northeast)  

 

Plate 4: Historical Test Pit 

 

 

Plate 5: Active Quarry Operation 

 

Plate 6: Active Quarry Operation