Leo Alarie and SonsLimited

South BlockNeelon Township

City of SudburySudbury Mining Division

Magnetometer Survey

June 18, 2003

17T512800E UTM5159400NNAD 27

RECEIVEDJUM 2 J Wu

GEOSCIENCE ASSESSMENT OFFICE

41I07NW2005 2.25918 NEELON 010

Leo Alarie and Sons Limited — South Block Property

Table of Contents

Page No. l .0 Introduction ................................................................... l

2.0 Location and Access ......................................................... l

3.0 Claim Status................................................................... l

4.0 Personnel ...................................................................... l

5.0 Previous Work ................................................................. 3

6.0 General Geology .............................................................. 3

7.0 Magnetometer Survey ....................................................... 4

8.0 Magnetometer Survey Results and Recommendations .................. 4

9.0 Certificate ...................................................................... 5

FIGURES

Location Map ............................................................................ Fig. l

Property Location Map ................................................................. Fig. 2

MAPS

Magnetometer Survey - Contour Plan and Posted Data............................ Map l

APPENDIX

GEM System Magnetometer - Specifications ........................ Appendix "A"

Fudge de Associates June 18, 2003 Page l of 6

Leo Alarie and Sons Limited — South Block Property

1.0 Introduction

This report deals with the logistics and results of a Magnetometer Survey carried out on the southern part of the "Coniston Quarry Property, Neelon Township in the City of Sudbury, Sudbury Mining Division.

The " Property" is comprised of one- 4 unit unpatented mining claim S1197701, in the S.E 1A, of S. '/2 , Lot 2, and SW V*, of S. Vi Lot l Con. IV, and NW V* of N. '/2, Lot 2 and N.E. '/4, N. '/2 Lot l, Con. Ill, Neelon Township. The claim is directly south of the Coniston Quarry of Leo Alarie and Sons Limited, recorded 10007o in the name of Leo Alarie and Sons Limited. Fudge & Associates of North Bay, Ontario carried out the magnetometer survey, the subject of this report for Leo Alarie and Sons Limited.

The purpose of the survey was to identify potential sulfide zones within the intrusive to determine if they may be present in deleterious amounts.

2.0 Location and Access

The "Property" is located approximately 1km north-east of the town of Coniston. Highway 17 West cuts through the south-west corner of the claim. See Figure 2.

The property is accessible by Highway 17, which cuts through the southwest corner of the claim, or from the south limit of the Alarie Quarry.

3.0 Claim Status

The property is comprised of one-4 unit unpatented mining claim, (64 Hectares), SI 197701, in the Sudbury Mining Division, and is part of a larger multi unit claim group.

4.0 Personnel

Fudge (fe Associates carried out the Magnetometer Survey June 2nd and 3rd 2003. Field personnel were:

R. Meikle North Bay, Ontario W. Fudge North Bay, Ontario

Fudge A Associates June 18, 2003 Page l of 6

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Leo Alarie and Sons Limited - South Block Property

PROV NCE OF ONTAR 0

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LEO ALARIE AND SONS

Coniston - South Block

LOCATI ON MAPktetjJJl^Jima 2003

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Fudge & Associates June 18, 2003 Pag e 2 of 6

Leo Alarie and Sons Limited - South Block Property

l l Pending Afesnaions

UT!!) Federal Lands

Par*,

Claims

Paodmg Dispositions

[^ J LotiS ConOBbAions

i " "- Off). PH S, Pfe

Administrative Bounrlaries is now the Active Layer

Pail

5.0 Previous Work

In 1967, Executive Exploration completed an Electromagnetic and Magnetometer Survey over the property. The program confirmed the presence of disseminated sulfides.

6.0 General Geology

The West Block Claim Group is thought to be underlain almost entirely by a gabbro and diabase intrusives as indicated on O.D.M. Map 2017. Lesser amounts of quartzite may be present.

The most important feature in the Sudbury Area is an elliptical basin- shaped norite mass some 55 km long in a north east direction and approximately 30 km wide which has hosted several dozen copper-nickel mines. For the most part, these massive sulfide deposits occur in the footwall of the intrusive or in the adjoining basement formations.

Fudge & Associates June 18, 2003 Page 3 of 6

Leo Alarie and Sons Limited - South Block Property

7.0 Magnetometer Survey

The magnetometer survey was carried out on a flagged and picketed grid established using a Garmin OPS 12 Global Positioning System. An east west AZ. 900 Base Line was established along the southern boundary of the claim and lines were turned off at 360 0 100-meter intervals.

The following parameters were employed for the survey.

Instrument: G.S.M. - 19T Proton Magnetometer

Station Interval: 25 meters

Line Interval: 100 meters

Data Presentation: Plan Contour Map at 25 NANO TESLAS

8.0 Magnetic Survey Results and Recommendations

The Magnetometer Survey Results indicate several areas of higher magnetic susceptibility across the surveyed area. Some of them appear to have a linear correlation and are described as follows:

"A" - This is a narrow, linear anomaly striking east west from L2800e79050n, open to the west. It is approximately 400 nano-teslas above background.

"B" - This is a two line, linear, linear anomaly, striking east west on L2700e79300n and L2800e79300n. It has a magnetic signature of approximately 200 nano-teslas above background

"C" - This anomaly strikes east west from L2900e78850n, open to the east. It has a higher magnetic susceptibility of approximately 1200+ nano-teslas above background. It also appears to be narrow and linear.

Because of the high percentage of outcrop exposure on the property, it is recommended that the above-described anomalies be ground prospected to try and explain the cause of each.

Fudge A Associates June 18, 2003 Page 4 of 6

Leo Alarie and Sons Limited - South Block Property

CERTIFICATION

1. Raymond Joseph Meikle of North Bay, Ontario hereby certify that:

l. I hold a three-year Technologist Diploma from the Haileybury School of Mines, Hailiybury, Ontario, obtained in May 1975.

2. I have been practising my profession since 1973 in Ontario, Quebec, Nova Scotia, New Brunswick, Newfoundland, NWT, Manitoba, Germany and Chile.

3. I have been employed directly with Teck Corporation, Metallgessellschaft Canada Ltd. Sabina Industries, .S. Middleton Exploration Services Ltd., self employed 1979-1997 (Rayan Exploration Ltd.) and currently with Fudge 8i Associates.

4. I have based conclusions and recommendations contained in this report on knowledge of the area, my previous experience and on the results of the fieldwork conducted on the property during 2003.

5. I hold no interest, directly or indirectly in this property, nor do I expect to receive any interest or considerations from the property, other than for professional fees rendered.

Dated this 18th day of June, 2003 at North Bay, Ontario.

R.J. Meikle

Fudge A Associates June 18, 2003 Page 5 of 6

Appendix "A"

GSM-19 Inslrucliuii Manual 63

INSTRUMENT SPECIFICATIONS

MAGNETOMETER l GRADIOMETER

Resolution:

Accuracy:Range:

Gradient Tolerance:

Operating Interval:

Input /Output:

Power Requirements:

Power Source:

Battery Charger:

Operating Ranges:

Storage Temperature: Display:

Dimensions:

VI.FFrequency Range:Parameters Measured:

Resolution: Number of Stations: Storage:

Terrain Slope Range: Sensor Dimensions: Sensor Weight:

O.OInT (gamma), magnetic field and gradient.0.2nT over operating range.20.000 to 120,OOOnT.

Over 10. OOOnT/m

.1 seconds minimum, faster optional Readings initiated from keylioaid,

external trigger, or carriage return via RS-232C.6 pin weatherproof connector, RS-232C, and (optional) analog output.

12V, 200mA peak (during polarization), 30mA standby. 300mA peak ingradiometer mode.Internal 12V, 2 6Ah sealed lead-acid battery standard, others optional.An External 12V power source can also be used.Input: 110 VAC. 60Hz. Optional 110 t 220 VAC, SO 1 601 IzOutput: dual level charging.Temperature: - 40'C to *60"C.Battery Voltage: 10.0V minimum lo 15V maximum.Humidity: up lo 90V* relative, BOD condensing.-50"C lo +65-C.

LCD: 240 X 64 pixels, OR 8 X 30 characters. Built in heater for operationbelow -20T.Console: 223 x 69 x 240mm.Sensor Slaff: 4 x 450mm sections.Senior: 170 x 71 mm dia.Weight: console 2.1kg, Staff 0.9kg, Sensors l.Ikg each.

IS - 300 kHz plus 57.9 kHz (Alaskan station)Vertical in-phase and out-of-phase components as percentage of total field2 relative components of horizontal field. Absolute amplitude of total field.O.IVn.

Up to 3 at a time.Automatic with: time, coordinates, magnetic field / gradient, slope, EM field.frequency, in- and out-of-phase vertical, and both horizontal components foreach selected station.O" - 90* (entered manually).140 x ISO x 90 mm. (5.5 x 6 x 3 inches).1.0 kg (2.2 Ib).

9V 1997

GEM System Inc.

APPENDIX G

GSM-lWMAGNETOiyiETER/GRAUIOIVIETER

THEORETICAL DESCRIPTION

Introduction

The GSM-OT is a portable standard proton mnpnctnmelcr/gradiomcler designed for handheld or base station use for geophysical, geotechnical or archaeological exploration, long term magnetic field monitoring at Magnetic Observatories, volcanological and seismic research, etc. The GSM-OT is a secondary for measurement of Ihe Earth's magnetic field, having 0.2nT resolution, and InT absolute accuracy over its full temperature range.

llie(iSM-IT is a microprocessor based instruments with storing capabilities Large memory storage is available (up to ^Mbytes) Synchronized operation between hand held and base station units is possible, and the corrections for diurnal variations of magnetic Held are done automatically l lie results nf measurements arc made available in serial form (RS-232-C interface) for collection by data acquisition systems, terminal] or computers. Both on-line and post-operation transfer are possible.

ITie measurement of two magnetic Fields for determination of gradient is done concurrently uiili strict control of measuring intervals. The result is a high quality gradient reading, independent of diurnal variations of magnetic field.

Optionally the addition of a VLF sensor for combined magnetomeler/gradiometer-VLF measurement is available.

Magnetic Filed Measurement *

The magnetic field measuring process consist of the following steps:

a) Polarization: A strong DC current is passed through Ihe sensor creating polarization of a proton-rich fluid in the sensor.

b) Pause: The pause allows the electrical transient lo die off, leaving a slowly decaying proton precession signal above Ihe noise level.

c) Counting: The proton precession frequency is measured and converted into magnetic field units.

d) Storage: The result are storage in memory together with dale, time and coordinates of measurements. In base station mode, only the lime and total field are stored.

' See Appendix A for sensor orientation requirements.

ONTM.IO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Transaction No: W0370.01104

Recording Date: 2003-JUN-24

Approval Date: 2003-JUL-07

Work Report Summary

Status: APPROVED

Work Done from: 2003-JUN-02

to: 2003-JUN-03

Client(s):

159410

Survey Type(s):

LEO ALARIE AND SONS LIMITED

MAG

Work Report Details:

Perform Applied Claim* Perform Approve Applied Approve

S 1197701 52,575 52,575 SO SO

Assign Reserve Approve Reserve Approve Due Date

SO O S2.575 52,575 2007-NOV-22

S2.575 S2.575 SO SO SO SO 52,575 S2.575

External Credits:

Reserve:

so

S2.575 Reserve of Work Report#: W0370.01104

52,575 Total Remaining

Status of claim is based on information currently on record.

41I07NW2005 2.25918 NEELON 900

2003-Jul-10 15:01 Armstrong-d Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date: 2003-JUL-07

Ministers du Developpement du Nord et des Mines Ontario

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

LEO ALARIE AND SONS LIMITED BOX 912TIMMINS, ONTARIO P4N 7H1 CANADA

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

Dear Sir or Madam

Submission Number: 2.25918 Transaction Number(s): W0370.01104

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time.

If you have any question regarding this correspondence, please contact STEVEN BENETEAU by email at steve.beneteau@ndm.gov.on.ca or by phone at (705) 670-5855.

Yours Sincerely,

Ron Gashinski

Senior Manager, Mining Lands Section

Cc: Resident Geologist

Don Thomas Fudge (Agent)

Assessment File Library

Leo Alarie And Sons Limited (Claim Holder)

Leo Alarie And Sons Limited (Assessment Office)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:18470

41I07NM2005 2.25918 NEELON 200

ThoH wlthlne to ut*** Mnlng dalml IhouM coneult with th* Provincial Mining RKordm* Offic* of th* Minlttiy of Nonhwn Dm*lopm*M and Mlnas for addHlonal Oerwral Information and LlmltatlontIntermatloo on th* atatu. of th* land, ahown h*r*on, Ttil. map la nw mtandcd for navigational, *urv*y, or land tw* d*u*mln*Uon purpoa*a aa th* Infixmatloo contact Information: Toll Fra* Map Datum: NAD 13ahovm on tNa map It compiled *om yirtout *ourc*t. Compl*t*nM* anil icouncy aw not guirantmd. Additional mfbnnation way alio b* obtam*d through m* Provincial Mining R*eord*ra' OBo* T* 1 (M*) 415-9846 axt 57tfcjaction: UTM (6 d*gr**)lout tind TW*a or RcgtalryOflU*, or thcMinlitry of Natural RBKuran. WW*t Sr**n MIHvr C*ntr* 933 Rmxy L*k* Road Fax: 1 (177) 870-1444 Topographic DM* Source: Land Information Ontario

Sudbury ON P3E 685 Mining Land Ttnur* Sourca: Provincial Mining RMordw*' OMe*Th. Information ahown la dwKwd from digital data avaUabl. In th* ProvlnclK Mining R*oord*rt' Ofdc. at th* Urn* of downloading Irom th* MWatry of Northam H^, B,,,, w^jw*,4Cv.on.caVMNDMMINtMANDSMilawi|)g*.htm

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SudburySUDIURYSUDBURY

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LAND TENURE WITHDRAWAL DESCRIPTIONSTypf DM* D*tortpOon

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LEGEND:

" CLAIM POST LOCATED

——— - . ——— LOT AND CONCESSION LINE

— — — — — PROPERTY BOUNDARY

SURVEY NOTES:

INSTRUMENT: GEM GSM-19 PROTON MAGNETOMETER

CONTOUR INTERVAL: 25 NANO-TESLAS

GRID LINES ESTABLISHED BY GPS, STATIONS FLAGGED

NAD 83

OPERATOR: R. J. MEIKLE

MAGNETOMETER SURVEY

o~ Associates

160 Bryan Road North Bay, Ontario Canada P1C 1L2

MAGNOMETER SURVEYCONISTON NEELON TWP. PROPERTY

CLAIM NO. S 1197701NEELON TWP.

OWNER: LEO ALARIE SeHWY 101 WEST TIMMINS, ONTARIO P4N 7H1

SONS

Drawn By: p. Qprnick

iDate: JUNE 17, 2003Checked by: p. Fudge

Scale: 1:5000

41I07NW2005 2.25918 210