of diamond drill hole - ontario · with green diamonds typically measuring from 10 to 80 mesh;...

REPORT

ON

CAUSTIC DISSOLUTION TREATMENT

OF DIAMOND DRILL HOLE

DR 95-34

ON CLAIM

1204022

BY

LAKEFIELD RESEARCH LIMITED

FOR

KWG RESOURCES INC.

JUNE 1995

SUBMITTED BY: STEVE MUNRO, B.Sc. Tuesday, September 2, 1997

43F03NW0002 2 17775 010

Table of Contents

Introduction

Processing

Results

Table l - Caustic Dissolution Results

Page 3

Page 3

Page 3

Page 4

r-

43F03NW00022.17775 010C

Introduction

On behalf of KWG Resources Inc., Toronto, Ontario, Midwest Drilling Ltd. drilled a single diamond drill hole, named DR95-34 into claim number 1204022 in March of 1995, in the James Bay Lowlands of Ontario.

A total of thirty-eight sampies were taken from diamond drill hole DR 95-34. Twenty-six of the samples were shipped to Lakefield Research Limited in Lakefield, Ontario. At Lakefield, the samples underwent a caustic dissolution treatment and a total of 15 diamonds were recovered.

Processing

The drill core arrived at Lakefield on May 4, 1995. The core was subsequently crushed, and then dissolved. The residue was treated a second time, and the final residue was sorted into magnetic and non-magnetic fractions. Finally, the fractions were inspected and the diamonds were recovered and measured. Processing was completed onJune?. 1995.

Results

Attached is a chart showing Lakefield Research's findings. Included in the data is the depth and mass of each sample, the number of diamonds recovered and their total octacarat wemht.

TABLE 1 - CAUSTIC DISSOLUTION RESULTS

Sample #95-34-06

05-34-07

95-34-08

95-34-16

95-34-17

95-34- 1 8q 5 .3 4- 1 995-34-20

95-34-21

95-34-2295-34-23

95-34-24

95-34-25

95-34-26

95-34-2795-34-28

95-34-29

95-34- 0

95-34- 195-34- 295-34- 3

95-34- 4

95-34- 595-34- 6

95-34- 795-34-38

Totals

From (m)113

125

137

2iS224

230

236

242

248254

260

266

272

278284

290

302314

326

338

344

350

356362

368

377

To (m)

125137

149

224230

236242

248

254260

26677?

278

284290

302

314

326338

344

350356

362

368377

383

Length (m)12

12

12

66

6

6

6

6

6

6

6

6

6

6

12

12

1212

6

6

6

6

6Q

6

20!

Mass (kg)14.5

15.6

16.7

16144

15.5

14.6

14.7

14.914.5

15.115.9

1515.9

14.6

15.717.)

16.5

16.618.5

15.8

16.2

14.1

15.4

12.1

6.8

392.7

Diamond TotalsMicros

1

J

1

4

2

o

1

12

Macros

1

1

1

3

Octacarats99,876

4,663

51,660

58,892

17,449

93,375

88, 1 66

8,897

266,049

689,027

GradeCarat s/ 100 Tonne

6.8880.299

3.514

4.062

1.097

5.947

5.156

0.563

18.869

1.755

2

Macro: Diamond with one dimension X).5mm

Octacarat^ O"8 Carat

DRILL HOLE LOCATION PLAN

CLAIM 1204022

SHEET 532852

NTS 43F/03

1204022

DR 95-34

383m Vertical

MAGNETIC DECLINATION -12 deg

O 250 500 750— -—

(metres)

Scale 1:10,000

T \ \[ l/1 1/j l^j T~\ A Division of Falconbridge Limited185 Concession Street, Postal Bag 4300

Lakefield, Ontario, Canada KOL 2HO Tel: (705) 652-2000 Fax: (705) 652-6365

KWG Resources Inc. July 10, 1995 Suite 200,1750 Brimley Road Scarborough, Ontario CANADA Ml P 4X7

Attention: Neil Novak

Re: Lakefield Research Project 8900-835 Batch #9

-,"-. ' *^i- ; '" "

Dear Neil: ^ , i { Y ' ^'

Lakefield Research has completed the caustic dissolution treatment of the twenty-six diamond drill core samples identified as 95-34-6 through 95-34-8, and 95-34-16 through 95-34-38.

Fifteen diamonds were identified from nine of the twenty-six caustic dissolution residues; 95-34-28 contained four diamonds with another eight residues containing one or two diamonds. The data sheets are attached.

Procedures

Caustic Dissolution

The caustic dissolution treatment, directly uses diamond's property of high resistance to chemical attack. The procedure was developed, and refined to improve and streamline the process for routine diamond exploration samples, in response to the microdiamond losses attributed to standard attrition milling and also to reduce the weight of final concentrate.

LAKEFIELD RESEARCH CHILE SA., Los Ebanistas 8585. Parque Industrial La Reina, Santiago, ChileFono 56-2-273-0487 Facsimil 56-2-273-0250

KWG Resources 8900-835 Lakefield Research Mineralogy - Diamonds

The major advantage of the caustic dissolution process is the ability to recover, without breakage, all of the diamonds contained within the sample regardless of their particle size (+100 mesh), liberation size, quality or origin. The latter may account for actual diamond xenocrysts from the 'kimberlitic' material, and l or quality control stones added by Lakefield Research or by the client, and l or diamonds attributed to the exploratory core drilling equipment.

Diamond losses and modifications to the size distribution profile due to stone breakage are eliminated. A comparison of the efficiency of the caustic dissolution treatment and attrition milling flowsheets was undertaken using 'seeded' kimberlite samples. The results clearly indicated breakage and losses of microdiamonds from the milled samples; the normalized stone frequency (SPFK) and octacarat weights (OCPFK) typically were reduced by a factor of two to ten times. Anomalously high stone frequency data indicating breakage was reported; corresponding stone weights and microdiamond grades were invariably low.

Routine quality control tests are utilized to evaluate the efficiency of the caustic dissolution technique. As such, the samples are blind spiked, prior to the fusion step, with green diamonds typically measuring from 10 to 80 mesh; these stones have been neutron irradiated to produce the distinctive coloration.

Lakefield Research is not responsible for determination of the origin, quality or valuation of any diamonds recovered.

The caustic dissolution is followed by water and acid leaching, and magnetic separations will produce several fractions commonly containing relict indicator minerals and a non magnetic fraction possibly containing microdiamonds.

The Lakefield Research facility has sixteen pottery kilns which can treat up to 8 kg each (using -3/8" to -2" crushed feed material) and are run in a 24 hour cycle. The use of smaller sample charges may be dictated by the abundance of carbonate minerals. Prior to the dissolution stage, a cursory mineralogical examination, by XRD and l or acid leach test (note effervescence), is carried out to identify any potentially deleterious phases. The carbonates, in particular, may exhibit a vigorous reaction to the hot caustic soda.

KWC Resources 8900-835 Lakefleld Research Mineralogy - Diamonds

At the appropriate sodium hydroxide to sample ratio and optimum temperatures, the reaction is allowed to continue overnight. As depicted in the flowsheet, the process consists of dissolving the entire sample in a molten sodium hydroxide bath and typically recovering the +100 mesh residue.

After drying, the dissolution residue is split into three magnetic and non-magnetic fractions using the permanent magnet followed by the Frantz Barrier Magnetic Separator. Extreme care is required as the non-magnetic, diamondiferous, portion of the residue commonly amounts to no more than a few milligrams. The concentrate products are then submitted for microscopy.

Very few minerals survive the harsh attack; therefore weight reductions commonly exceed 9907o of the initial sample weight. The high weight loss with optimum stone recovery is another major advantage of the caustic dissolution technique.

Only highly resistant minerals such as diamond, graphite, moissanite, zircon, chromite, kyanite, etc. survive the caustic attack. Of note, partially dissolved indicator minerals including colorless to opaque spinel, garnet, and ilmenite, as rounded relicts of original coarse grains, may occur in the dissolution residue.

KWG Resources 8900-835 Lakefleld Research Mineralogy - Diamonds

Results

The data sheets are attached.

The residues will be forwarded to Scarborough under separate cover. The original invoice will be forwarded to KWG Resources Inc., Montreal, Quebec.

If there are any questions, please call me.

Best regards LAKEFIELD RESEARCH

Greg Davison Senior Mineralogist PH# 705-652-2019

Caustic Dissolution Package Lakefield Research Mineralogy - Diamonds

DIAMOND FLOWSHEET 1. CAUSTIC DISSOLUTION

CRUSH

SPLIT CHARGES

DISSOLUTION molten NaOH

COLLECT RESIDUE (100 mash screen)

WATER WASH AND ACID LEACH RESIDUE

DRY AND REMOVE FERROMAGNETICS

FRANTZ MAGNETIC SEPARATION

MICROSCOPIC EXAMINATION of Nonmagnetic Fraction

for Microdiamonds

LAKEFIELD RESEARCHA Division of Falconbridge LimitedP.O. Box 4300, 185 Concession St., Lakefield, Ontario, KOL 2HO

Phone : 705-652-2038 - FAX : 705-652-6441

KWG Resources630 Rene Levesque Blvd., Suite 3200Montreal, Quebec, H3B 1S6

Attn : Mr. Neil Novak

Lakefield, June 7, 1995

Date Ree. LR. Ref. Reference Project

May 4, 1995 MAY3005.C95 LR9549635 8900-835 Batch #9

SUMMARY INFORMATION

No.

123456789

1011121314151617181920212223242526

Sample ID

LAK-95-34(6)LAK-95-34 (7)LAK-95-34 (8)LAK-95-34 (16)LAK-95-34 (17)LAK-95-34 (18)LAK-95-34 (19)LAK-95-34 (20)LAK-95-34 (21)LAK-95-34 (22)LAK-95-34 (23)LAK-95-34 (24)LAK-95-34 (25)LAK-95-34 (26)LAK-95-34 (27)LAK-95-34 (28)LAK-95-34 (29)LAK-95-34 (30)LAK-95-34 (31)LAK-95-34 (32)LAK-95-34 (33)LAK-95-34 (34)LAK-95-34 (35)LAK-95-34 (36)LAK-95-34 (37)LAK-95-34 (38)

Batch

99999999999999999999999999

Wtkg

14.515.616.716.014 .415.514.614.714.914.515.115.915.015.914.815.717.116.516.818.515.816.214.115.412.16.8

# Pours

22222222222222222223222221

#D i amends

11000001010001042000202000

Greg Davison

LAKEFIELD RESEARCHA Division of Falconbridge LimitedP.O. Bag 4300. 185 Concession Street, Lakefield, Ontario, KOL 2HOPhone: 705-652-2000 FAX: 705-652-6365

DIAMOND RECOVERY BY CAUSTIC DISSOLUTION

Project: 8900-835Client : KWG Resources - LAK Series

Sample # : 95-34-6 Batch # Weight:

914.5

Stone Dimension, mmX

0.45

Y

0.42

Z

0.29

Weight(octacarats)

99876

Stone DescriptionColour

White

Clarity

Frosted

Morphology

Octahedron

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments.

Oxides, and minor rock fragments.

Silicates (clear, white, brown), tracae oxides, and sulphides.

Total Weight (octacarats):

Number of Diamonds:

CPHT (Total sample Grade):

SPFM + 100 mesh):

OCPFK(* 100 mesh):

99876

1

6

3

344400

Number of Syndites:

Authorizing Signature

a Notes: 1 carat = 10 octacarats.

Lakefield Research is not responsible for the determination of the origin, quality or valuation of any diamonds recovered.

Page 1 Tuesday, May 16, 1995

LAKEFIELD RESEARCHA Division of Falconbridge LimitedP.O. Bag 4300, 185 Concession Street, Lakefield, Ontario. KOL 2HOPhone: 705-652-2000 FAX: 705-652-6365



Sample # : 95-34-7 Batch # : Weight:

915.6


0.14

Y

0.14

Z

0.13

Weight(octacarats)

4663


White

Clarity

Clear

Morphology

Octahedron with graphite coating

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic


Oxides, and rock fragments.

Silicates (clear, white, brown), trace sulphides, and oxides.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

4663

1

O

3

14947

Number of Syndites:


Notes: 1 carat = 10 octacarats.Lakefield Research is not responsible for the determination of the origin, quality or valuation of any diamonds recovered.


LAKEFIELD RESEARCHA Division of Falconbridge LimitedP.O. Bag 4300, 185 Concession Street, Lakefield, Ontario, KOL 2HOPhone: 705-652-2000 FAX: 705-652-6365


Project: 8900-835 Sample*: 95-34-8 Batch*: 9 Client: KWG Resources - LAK Series Weight: 16.7

Stone Dimension, mmX Y Z

Weight(octacarats)

Stone DescriptionColour Clarity Morphology

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic


Oxides, rock fragments, and trace garnets.

Rock fragments, silicates (clear, white, brown), with trace oxides.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:


8Notes: 1 carat s 10 octacarats.







Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic



Silicates (white, brown, clear), minor rock fragments, trace oxides and sulphides.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:



Page 1 Wednesday, May 24, 1995





Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, silicates (black, white), minor opaque spinel, with trace

corundum.Opaque spinel, rock fragments, minor phlogopite, with trace garnets.

Silicates (white, clear), minor orange rutile, trace phlogopite, opaque spinel, Dyrite, and moissanite.

trace


Number of Diamonds:


SPFK(* 100 mesh):

OCPFM + 100 mesh):

O

O

O

O

O

Number of Syndites:


8Notes: 1 carat = 10 octacarats.


Page 1 Monday, May 29, 1995





Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic


Rock fragments

Silicates (white,

, and minor silicates.

brown, clear), with minor rock fragments.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:







Project: Client :

8900-835 Sample #: 95-34-19 Batch # : 9 KWG Resources - LAK Series Weight: 14.6


Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

Rock fragments.

Rock fragments,

Rock fragments,

Description

and silicates.

silicates (white, brown, clear).


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:








914.7


0.51

Y

0.28

, Z

0.20

Weight(octacarats)

51660


Brown

Clarity

ClearMorphology

Fragmented complex crystal

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic



Rock fragments, silicates (white, clear, brown), with trace sulphides.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

51660

1

3

3

175714

Number of Syndites:




LAKEFIELD RESEARCHA Division of Falconbridge LimitedP.O Bag 4300, 185 Concession Street, Lakefield, Ontario, KOL 2HOPhone: 705-652-2000 FAX: 705-652-6365


Project: 8900-835 Sample # : 95-34-21 Batch # : 9 Client: KWG Resources - LAK Series Weight: 14.9


Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic



Rock fragments, silicates (white, sulphides.

brown, clear), minor graphite, trace oxides and


Number of Diamonds:


SPFM + 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:


8Notes. 1 carat = 10 octacarats.







g14.5


0.54

Y

0.22

Z

0.27

Weight(octacarats)

58892


White

Clarity

Clear

Morphology

Highly graphitized fragment

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, white silicates, minor amphible, trace

opaque spinels.Silicates (green, white), rock fragments, minor opaque

sphene, red garnets, and

spinel, with trace garnet.

White silicates, with trace sphene.


Number of Diamonds:


SPFK(* 100 mesh):

100 mesh):

58892

1

4

3

203077

Number of Syndites:


8Notes: 1 carat z 10 octacarats.


Page 1 Wednesday, June 07, 1995





Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, white silicates, trace amphibole and mica,

spinel.Rock fragments, white silicates, amphibole, minor mica and

with trace opaque

opaque spinels.

Small silicates spheres, with trace opaque spinel.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:

O-oAuthorizing Signature

s Notes: 1 carat z 10 octacarats.







weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic


Oxides, and minor rock fragments.

Silicates (clear, white, brown, green), minor rock fragments and oxides.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:


s Notes: 1 carat = 1 0 octacarats.





Project: 8900-835 Sample*: 95-34-25 Batch #: 9 Client: KWG Resources - LAK Series Weight: 15.0


weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, minor orange and red garnets, opaque

silicates.spinel, with trace clear

Opaque spinel, and trace orange and red garnets.

Silicates (clear, white), and trace opaque spinels.


Number of Diamonds:


SPFK^ 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:


Notes: 1 carat z 10 octacarats.Lakefield Research is not responsible for the determination of the origin, quality or valuation of any diamonds recovered.






915.9


0.22

Y

0.22

Z

0.19

Weight(octacarats)

17449


White

Clarity

Clear

Morphology

Twin octahedron with graphite

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, minor white silicates, and opaque spinels.

Opaque spinel, minor rock rragments, clear silicates, and orange and red garnets.

Silicates (clear, white), with trace opaque spinel.


Number of Diamonds:


SPFM + 100 mesh):

100 mesh):

17449

1

1

3

54872

Number of Syndites:




Pagel Monday, May 29, 1995

LAKEFIELD RESEARCHA Division of Falconbridge LimitedP.O. Bag 4300,185 Concession Street, Lakefield, Ontario, KOL 2HOPhone: 705-652-2000 FAX: 705-652-6365


Project: Client :

8900-835 Sample*: 95-34-27 Batch # : 9 KWG Resources - LAK Series Weight: 14.6

SFone Dimension, mmX Y Z

Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionSiliceous rock fragments.

Rock fragments, clear and white silicates, amphibole, minor opaque spinel trace mica.

with

Clear silicates, with trace opaque spinel.


Number of Diamonds:


SPFK(* 100 mesh):

100 mesh):

O

O

O

O

O

Number of Syndites:


8Notes: 1 carat = ^0 octacarats.


Page 1 Wednesday, June 07,1995





915.7


0.25 0.28 0.42 0.42

Y

0.17 0.19 0.22 0.19

Z

0.08 0.18 0.13 0.31

Weight(octacarats)

6199 18081 22386 46709


White White White Brown

Clarity

Milky Milky Milky Milky

Morphology

Fragment with graphite inclusions Fragment with graphite inclusions Fragment with graphite inclusions Fragmented octahedron






915.7

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, trace opaque spinel, and clear silicates.

Clear silicates, opaque spinel, trace chrome diopside, with red garnets.

Silicates (clear, white), trace opaque spinel, and rutile.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

93375

4

5

12

297374

Number of Syndites:









917.1


0.22 0.45

Y

0.22 0.45

Z

0.20 0.19

Weight(octacarats)

18368 69798


Off white White

Clarity

Frosted Clear

Morphology

Octahedron with black inclusions Complex crystal






917.1

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, trace opaque spinels.

Opaque spinel, clear silicates, minor rock fragments.

Clear silicates, trace opaque spinel, with other silicates.


Number of Diamonds:


100 mesh):

100 mesh):

88166

2

5

5

257796

Number of Syndites:

6-9Authorizing Signature

Notes. 1 carat z 10 octacarats.Lakefield Research is not responsible for the determination of the origin, quality or valuation of any diamonds recovered.




Project: 8900-835 Sample*: 95-34-30 Batch*: 9 Client : KWG Resources - LAK Series Weight : 16.5


Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, with trace opaque spinel.

Opaque spinel, minor clear silicates, and rock tragments.

Silicates (clear, white), trace copper, and graphite.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFM + 100 mesh):

O

O

O

O

O

Number of Syndites:


Notes: 1 carat = ^0 octacarats.Lakefield Research is not responsible for the determination of the origin, quality or valuation of any diamonds recovered.

Pagel Thursday, June 01, 1995



Project: 8900-835 Sample #: 95-34-31 Batch*: 9 Client : KWG Resources - LAK Series Weight : 16.6


Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionDark grey porphyritic rock fragments, with trace opaque spinels.

Opaque spinel, minor rock fragments, with clear silicates.

Clear silicates, trace opaque spinel, graphite, and other silicates.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:








Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, with trace opaque spinel.

Clear silicates, opaque spinel, and minor rock fragments.

Clear silicates, with trace opaque spinel.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

O

O

O

O

O

Number of Syndites:



Pagel Thursday, June 01, 1995





915.8


0.22 0.14

Y

0.14 0.11

Z

0.09 0.13

Weight(octacarats)

5166 3731


Off white White

Clarity

Clear Clear

Morphology

Frosted fragmented octahedron Frosted octahedron

Pagel Wednesday, June 07, 1995



Project: 8900-835Client: KWG Resources - LAK Series


915.8

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionPorphyritic rock fragments, minor opaque spinel, and pink silicates.

Opaque spinel, clear and minor yellow silicates, with trace mica.

Clear and minor green silicates, trace mica, and graphites.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

8897

2

O

6

28155

Number of Syndites: O


8Notes: 1 carat z 10 octacarats.



LAKEFIELD RESEARCHA Division of Falconbridge LimitedP.O. Bag 4300,185 Concession Street, Lakefield, Ontario, KOL2HOPhone: 705-652-2000 FAX: 705-652-6365


Project: 8900-835 Sample #: 95-34-34 Batch*: 9 Client : KWG Resources - LAK Series Weight : 16.2


Weight(octacarats)

stone DescriptionColour Clarity Morphology

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, with minor clear silicates.

Rock fragments, opaque spinel, with trace red garnets.

Clear and minor white silicates, rutile, trace opaque spinel, and graphite.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK^ 100 mesh):

O

O

O

O

O

Number of Syndites:


s Notes: 1 carat 3 10 octacarats.







914.1


0.57

0.42

Y

0.54

0.22

Z

0.45

0.12

Weight(octacarats)

245385

20664


Pale brown

White

Clarity

Clear

Clear

Morphology

Frosted octahedron with graphitic nclusionsFrosted fragmented octahedron with

graphitic inclusions






914.1

Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments (white granitic, and grey porphyritic), white silicates, minor clear

silica and mica, with trace opaque spinel.Opaque spinel, rock fragments, minor mica, trace purple garnets, and

silicates.clear

Clear and minor white silicates, with trace mica.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(* 100 mesh):

266049

2

18

7

943436

Number of Syndites:






Project: 8900-835 Sample # : 95-34-36 Batch # : 9 Client: KWG Resources - LAK Series Weight: 15.4


Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, trace purple garnets and opaque spinels.

opaque spinels, rock fragments, with trace purple garnets.

Clear silicates, minor rutile, trace graphite and sulphides.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(-HOOmesh):

O

O

O

O

o

Number of Syndites:


8 Notes: 1 carat z 10 octacarats.





Project: 8900-835 Sample #: 95-34-37 Batch # : 9 Client: KWG Resources - LAK Series Weight: 12.1


Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments (white granitic and pale grey porphyritic), trace red garnets,

opaqufe spinel, and mica.Kock fragments, opaque spinel, mica, with minor green silicates.

Trace clear silicates, opaque spinel, sulphides, and graphite.


Number of Diamonds:


SPFK(* 100 mesh):

OCPFK(-MOO mesh):

O

O

O

O

O

Number of Syndites:

GS)Authorizing Signature



LAKEFIELD RESEARCHA Division of Falconbridge LimitedP.O. Bag 4300, 185 Concession Street, Lakefield, Ontario, KOL2HOPhone: 705-652-2000 FAX: 705-652-6365


Project: Client :

8900-835 Sample*: 95-34-38 Batch*: 9 KWG Resources - LAK Series Weight : 6.8


Weight(octacarats)


Caustic Residue:

Mesh+20

-20+100

-20+100

FractionOversize

Magnetic

Non-Magnetic

DescriptionRock fragments, with trace opaque spinels.

Opaque spinels, rock fragments, with trace clear and green silicates.

Clear silicates, trace graphite, and sulphides.


Number of Diamonds:


SPFK(* 100 mesh):

100 mesh):

O

O

O

O

O

Number of Syndites:


Notes: 1 carat s 10 octacarats.Lakefield Research is not responsible for the determination of the origin, quality or valuation of any diamonds recovered.


Ministry ofNorthern Developmentand Mines

Ontario

Report of Work Conducted After Recording Claim

Mining Act

Transaction Number

Personal Information collected on this form Is obtained under the authority of the Mining Act. This Information will be used for correspondence. Questions about this collection should be directed to the Provincial Manager, Mining Lands, Ministry of Northern Development and Mines, Fourth Floor, 169 Cedar Street, Sudbury. Ontario, P3E 6A5, telephone (705) 670-7264.

Instructions: * Please tvotf or nrint F

F

43F03NW0002 2.17775900

ng assessment work or consult the Mining

Group, oate.

. jompany this form.

Recorded Holder^) Client No.

ki*JG K&Soufozs lv\c x^V- "?o \Address Telephone No.

# 2-fOO - Ul fcw^ 5 /. U . tToroô. CM-fon'o MST/sn fY/^) F^-o^Z^Mining Division J Township/Ares M or G Plan No.

Dates ' ' Work From: iL^f - ss /a /-^ To: T, \ /c* r~ Performed H^V/ T/ 7^ Jlxû. X /7 J

r 'Work Performed (Check One Work Group Only)

Work Group

Geotechnical Survey

Physical Work, Including Drilling

Rehabilitation

Other Authorized Work

Assays

Assignment from Reserve

Total Assessment Work

Type

i 1

~~ ' ' -' f '

C C((A.S'r ( (L {^/ISJo(wTfois~\

J (S (T C "?Claimed on the Attached Statement of Costa S f 7 . s ^ 1

Note: The Minister may reject for assessment work credit all or part of the assessment work submitted if the recorded holder cannot verify expenditures claimed In the statement of costs within 30 days of a request for verification.

Persons and Survey Company Who Performed the Work (Give Name and Address of Author of Report)Name

/tikrf.W*/ X?e ScarcUAddress

/^T Gwsessfo* S*. âkc&cU 0*t* x

(attach a schedule If necessary)

Certification of Beneficial Interest * See Note No. 1 on reverse side

RECEivjrrnrj 1 6 1997

GEOSCIENCE ASSESSMENT DFFICF ,

1 certify that at the time the work was performed, the claims covered In this work report were recorded in the current holder's name or held under a beneficial Interest by the current recorded holder.

Date

frtifrfalRecorded Holder oc Agent (Signature)

,^7 '-

Certification of Work Reportl certify that l have a personal knowledge of the facts set forth In this Work report, having performed the work or witnessed same during and/or after Its completion and annexed report Is true.

Name and Address of Person Certifying

206- WTelepone No. Date Certified By (Signature)

For Office Use OnlyTotal Value Cr. Recorded Dale Recorded

Dale Notice for Amendments Sent

0241 (03/91)

otal of Claims l

r

Sr^ tf ^\Ups w

on this

alue

'Total

3U)

Work to be Claimed at a Future Dat

Credits you are claiming in this report may be cut back. In order to minimize the adverse effects of such deletions, please indicate from which claims you wish to prlorize the deletion of credits. Please mark (^) one of the following:

1 . D Credits are to be cut back starting with the claim listed last, working backwards.2. D Credits are to be cut back equally over all claims contained in this report of work.

3. D Credits are to be cut back as priorized on the attached appendix.

In the event that you have not specified your choice of priority, option one will be implemented.

Note l: Examples of beneficial Interest are unrecorded transfers, option agreements, memorandum of agreements, etc., with respect to the mining claims.

Note 2: If work has been performed on patented or leased land, please co/nalete the following:

I certify that the recorded holder had a beneficial Interest in the patented or leased land at the time the work was performed.

Date

Ontario


Ministers du Developpement du Nord et des mines

Statement of Costs for Assessment Credit

Etat des coGts aux fins du credit devaluation

Mining Act/Lol sur les mines

Transaction No./N0 de transaction

Personal Information collected on this form is obtained under the authority of the Mining Act. This Information will be used to maintain a record and ongoing status of the mining clalm(s). Questions about this collection should be directed to the Provincial Manager, Minings Lands, Ministry of Northern Development and Mines, 4th ROOT, 159 Cedar Street, Sudbury, Ontario P3E 6AS, telephone (705) 670-7264.

Les renseignements personnel! recueillls en vertu de la Lol cur to

PROVINCIAL RECORDING OFFICE - SUDBURY

RECEIVEDOCT 1 6 1397

A.M. p.M.le sont eglstre

des concessions minieres. Adresser toute quesiton sur la collece de ces renseignements au chef provincial des terrains mlniers, ministere du Developpement du Nord et des Mines, 159, rue Cedar, 4e etage, Sudbury (Ontario) P3E 6A5, telephone (705) 670-7264.

1. Direct Costs/CoOts directs

Type

Wages Salalres

Contractor's and Consultant's Fees Drolls de ('entrepreneur et de I'expert- conseil

Supplies Used Foumltures utilise**

Equipment Rental Location de materiel

Description

Labour Maln-d'oeuvre

Reid Supervision Supervision sur le terrain

Type

/)tt*N/i

Typ*

Type

Amount Montant

ft/ct

Totals Total global

l&^/iffVf

V-?*"-*!!*'*^^'

Ipil^tp"f "jf" ilL ' : .J"'i

Total Direct Costs Total des couts directs

2. Indirect Costs/CoOts indirects* * Note: When claiming Rehabilitation work Indirect costs are not

allowable as assessment work.Pour le remboursement des travaux de rehabilitation, les coOts indirects ne sont pas admlsslbles en tant quo travaux devaluation.

,.

Type

Transportation Transport

Food and Lodging NourrHure hebergemMoblllzatli Demoblllz

RI tnt

*3*estlon

Mobilisation^, i demobilisation

Description

Type

ECEIVEDOGT 1 6 1997

CIENCEASSESSMEN" OFFICF

Amount Montan!

Sub Total of Indirect Costs Total partlel des coOts indirects

Amount Allowable (not greater than 20H of Direct Costs) Montant admissible (n'excedant pas 20 H das coOts directs)

Total Value of Assessment Credit Valeur totale du credit (Total of Direct end Allowable devaluation Indirect coat!) (Total dM coOli direct!

Totals Total global

tt Indirect* tdmlMMtt

Note: The recorded holder will be required to verify expenditures claimed in this statement of costs within 30 days of a request for verification. If verification Is not made, the Minister may reject for assessment work all or part of the assessment work submitted.

Note : Le titulatre enregistre sera tenu-de verifier les depenses demandees dans le present etat des coOts dans les 30 jours suivant une demande a cet effet. SI la verification n'est pas effectuee, le ministre peut rejeter tout ou une partie des travaux devaluation presented.

Filing Discounts

1 . Work filed within two years of completion is claimed at the above Total Value of Assessment Credit.

of

Remises pour depdt

1. Les travaux deposes dans les deux ans suivant leur achievement sont rembourses a 100 "ft de la valeur totale susmentionnee du credit d'evaluation.

2. Work filed three, four or five years after completion is claimed at 50Vo of the above Total Value of Assessment Credit. See calculations below:

Total Value of Assessment Credit Total Assessment Claimed

X 0.50 -

2. Les travaux deposes trois, quatre ou cinq ans apres leur achievement sont rembourses a 50 "to de la valeur totale du credit devaluation susmentionne. Voir les calculs ci-dessous.

Valeur totale du credit devaluation

X 0.50

Evaluation totale demandee

Certification Verifying Statement of Costs Attestation de I'etat des coOts

l hereby certify:that the amounts shown are as accurate as possible and these costs were Incurred while conducting assessment work on the lands shown on the accompanying Report of Work form.

that as(Recorded Holder, Agent, Petition In Company)

to make this certification

J'atteste par la presente :que les montants indiques sont le plus exact possible et que ces depenses ont ete engagees pour effectuer les travaux devaluation sur les terrains indiques dans la formule de rapport de travail ci-jolnt.

l am authorized Et qu'a titre de je suls autoris6(titulaire enregistre, representant, poste occupe dans la compagnie)

a falre cette attestation.

Signature Date

0212 (04/81) Nota : Dana cette formula, lorsqu'll designs des personnes, le masculln est utilise au sans neulre.


February 23, 1998

Steve MunroRESSOURCES KWG INC. 350 BAY STREET SUITE 1000 TORONTO, ONTARIO M5H-2S6

Ministere du Developpement du Nord et des Mines Ontario

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

Telephone: (888)415-9846 Fax: (705) 670-5881

Dear Sir or Madam:

Subject: Transaction Number(s):

Submission Number: 2 .17775

StatusW9760.00451 Approval After Notice

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact Lucille Jerome by e-mail at [email protected] or by telephone at (705) 670-5858.

Yours sincerely,

ORIGINAL SIGNED BYBlair KiteSupervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 1 1934

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2 .17775

Date Correspondence Sent: February 23, 1998 AssessonLucille Jerome^^^^^^^^^^^^^^^^^^^^^^

Transaction First ClaimNumber Number Township(s); Area(s) Status Approval Date

W9760.00451 1204022 ATTAWAPISKAT Approval After Notice February 23, 1998

Section:17 Assays ASSAY

The revisions outlined in the Notice dated January 8, 1998, have been corrected. Accordingly, assessment work credit has been approved as outlined on the Declaration of Assessment Work Form accompanying this submission.

Correspondence to: Recorded Holder(s) and/or Agent(s):

Resident Geologist Steve MunroSouth Porcupine, ON RESSOURCES KWG INC.

TORONTO, ONTARIO Assessment Files Library Sudbury, ON

Page: 1Correspondence ID: 11934

533852 G-4238

85 0 30' 850 I5'

530 I5' 53 0 I5'

co'sT fAJ^r

Io

10IO GO CM fO LO

HE INFORMATION THAT APPEARS ON THIS MAP HAS BEEN COMPILED FROM VARIOUS SOURCES fl,ND ACCURACY IS NOT GUARANTEED. THOSE WISHING TO STAKE MINNG CLAIMS SHOULD CON 5ULT WITH THE MINING RECORDER. MINISTRY OF NORTHERN DEVELOP MENT AND MINES. FOR AD DITIONAL INFORMATION ON THE STATUS OF THE LANDS SHOWN HEREON

SMD 4247

53 007'30"

ATTAWAPISKAT

ro oo 01

CD i

O")

53 0 07 30850 I5'

531852 G -4244

532852

LEGEND

HIGHWAY AND ROUTF No

OTHER ROADS

TRAILS

SURVEYED LINES:

TOWNSHIPS. BASE LINES. ETCLOTS MINING CLAIMS. PARCELS. ETC

UNSURVEYED LINESLOT LINES

PARCEL BOUNDARYMINING CLAIMS ETC

RAILWAY AND RIGHT OF WAY -

UTILITY LINES

NON-PERENNIAL STREAM

FLOODING OR FLOODING RIGHTS

SUBDIVISION OR COMPOSITE PLAN

RESERVATIONS

ORIGINAL SHORELINE

MARSH OR MUSKEG

MINES

TRAVERSE MONUMENT

DISPOSITION OF CROWN LANDS

TYPE OF DOCUMENT SYMBOL

PATENT. SURFACES. MINING RIGHTS....... ... .. 0

, SURFACE RIGHTS ONLY_.___..,, ^

.MINING RIGHTS ONLY___..,, .. Q

LEASE. SURFACE 81 MINING RIGHTS.. . . . ... H

" .SURFACE RIGHTS ONLY._... ... ...,. .. H

" .MINING RIGHTS ONLY..........................,. y

LICENCE OF OCCUPATION .._......_................. T

ORDER IN COUNCIL - ...-.-..-... .. .. .^. OC

RESERVATION ......... ..............,.. ........ (J)

CANCELLED __..^.. ..... .^,

SAND 8. GRAVEL ..................................^ (T)

AREAS WITHDRAWN F ROM DISPOSITION

M.R.O. - MINING RIGHTS ONLY

S.R.O. -SURFACE RIGHTS ONLY

M.+ S. - MINING AND SURFACE RIGHTS

Description Order No. Date Disposition File

f EB

SCALE: 1 INCH = 40 CHAINS

ft t -1 OOO 20OO 6OOO 8000

O 200 METRES

l OOOl 1 KM)

2 OOO(2 KM l

AREA

532852M.M.R. ADMINISTRATIVE DISTRICT

NIPIGONMINING DIVISION

PORCUPINELAND TITLES/ REGISTRY DIVISION

KENORA/PATRICIA PORTION

Ministry ofNaturalResources


Ontario

Oale JULY, 1995

AC T !VATr.D NOV. 7/95 BY D.C.

oH-CKED BY- O.K.

Number

G-4247

43F03NW0002 2.17775 200

of diamond drill hole - ontario · with green diamonds typically measuring from 10 to 80 mesh;...

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