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ICAL and CRUSHING ASSESSMENT REPORT for the SSE LIMESTONE

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ICAL and CRUSHING ASSESSMENT REPORT for the SSE LIMESTONE ICAL and CRUSHING ASSESSMENT REPORT for the Gold Commissioner's Office VANCOUV" SSE LIMESTONE QUARRY Mining Permit No.: MX-7-114 Quarry Permit: Q-7-61 CHILLIWACK RIVER - SLESSE CREEK AREA NEW WESTMINSTER MINING DIVISION SOUTHWESTERN BRITISH COLUMBIA Longitude 121°42'38"W/Latitude 49°04'35"N NTS 92H/4E Prepared for I.G. Machine & Fiber Ltd. I.G. Machine & Fiber Ltd. P.O. Box 1325 Ashcroft Granule Plant 1600 42nd Ave. S.E. Box 100 Calgary, Alberta 909 Barnes Lake Road T2P 2L2 Ashcroft, B.C. V0K 1AQ Phone: 403-265-6022 Phone: 250-453-90^ Fax: 403-266-2644 Fax: 250-453-r Prepared by J. T. Shearer, M.Sc, P.Geo. Unit 5 - 2330 Tyner Stre Port Coquitlam, B.pJ^ V3C2Zlg&f Phone: 604-^64^2 Fax: 604-944-6102 E-mail: [email protected] October 30, 2008 Fieldwork completed May 1, 2008 to October 8, 2008 TABLE OF CONTENTS Page LIST OF FIGURES and TABLES Hi SUMMARY iv INTRODUCTION 1 LOCATION and ACCESS 2 CLAIM STATUS 4 REGIONAL GEOLOGY 5 PROPERTY GEOLOGY and CaC03 RESOURCES 6 GEOLOGICAL MAPPING and SAMPLING in 2008 10 ENVIRONMENTAL CONSIDERATIONS 11 CONCLUSIONS and RECOMMENDATIONS 14 COST ESTIMATE for FUTURE WORK 15 REFERENCES 16 APPENDICES Appendix I Statement of Qualifications 18 Appendix II Statement of Costs 19 Appendix III Assay Certificates 20 Appendix IV Sample Descriptions 2008 21 ii Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 LIST of ILLUSTRATIONS and TABLES ILLUSTRATIONS Following FIGURE 1 Location Map 1 FIGURE 2 Access Map - Google Image 2 FIGURE 3 Claim Map, 1:50,000 3 FIGURE 4 Local Geology, 1:2,000 in pocket FIGURE 4a Local Geology (reduced scale) 5 TABLES Page TABLE I List of Claims 3 TABLE II Results of 1997 Sampling, Major Oxides 8 iii Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 SUMMARY 1. Geological mapping later in 2008 concentrated on low silica limestone from the southeast and southwest part of the property covered by Tenure 576416 and 567886. 2. Silica values from the 2007 and 2008 sampling and previous samples returned values less than 1% Si02. 3. The general area is covered by Selesse 1 Mining Lease (Lease # 363428) totalling 99.4 hectares and several Mineral Claims, totalling 1,263.06 hectares. The northeast end of the limestone unit is held as a Special Use Permit by the Ministry of Transportation and Highways amounting to about 3.44 acres. 4. The general carbonate section consists of an upper 60 metre thick limestone member separated from a lower 30 metre thick limestone member by approximately 30 metres of cherty argillite and greywacke. 5. Mining by I.G. in 1997 began with establishment of the northern end of 360m bench level, by drilling and blasting 45,000 tonnes of material. Some oversize was used to construct roads and stockpile-crusher area. Blast holes were up to 40' deep (2.5 to 3" holes) and shot with Anfo. 6. Continued geological mapping to the south and a small bulk sample of 115 tonnes from the southwest area to test the material at the company's roofing products plant in Sumas, Washington was completed in 2008. 7. Assays from the bulk sample suggest Si02 and MgO values which are acceptable to filler requirements and tear strengths of fibreglass shingles. 8. The southeast and southwest zones together are in the 500,000 to 600,000 tonne range of potential which can only be confirmed by drilling. 9. A program of about 1,500 feet of drilling is recommended to further evaluate the southern zones at an estimated cost of $75,000.00. y submitted, \Sheafer, M.Sc, P.Geo. tulting Geologist, Quarry Supervisor Octdber 30, 2008 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 Slesse Mineral Lease Legend I I Mineral Lease 363428 I I Mineral Claims Limestone l^jHwyQuany ^—~— Roads Contours Index Intermediate 0 75 150 300 Meters 1 I I I I I I I I Scale: 1:10,000 Projection: UTM Zone 10 Datum: NAD 83 Produced for: Homegoid Resources Lid- Produced by: Coastal Resource Mapping Ltd. Date: September 16. 2008 Project: Crm1159tProjects\Slesse_Limastone.mxd INTRODUCTION The Slesse 1 Mineral Lease and Slesse mineral claims cover readily available limestone (CaC03) resources immediately southwest of the Slesse Quarry of the Ministry of Highways. Acquisition and preliminary evaluation of the steep sided knoll was started in July 1997 on which two main limestone units are exposed was completed in July and October 1997. The general carbonate section consists of an approximately 60 metre thick Permian limestone member separated from a lower 30 metre thick limestone member by about 30 metres of cherty argillite and greywacke. Sampling in 1997 and previously obtained assays indicate that the upper carbonate unit contains up to 50.59% CaO with very low impurities except for around 8% Si02. The silica content is mainly from the strataform ameboid shaped chert nodules and chert lenses in Upper Limestone member which possibly could be sorted and separated in the pit. Drilling and blasting started on November 4,1998 with initial pioneering work. Crushing was started on December 1,1998 and product was first trucked to the Sumas Plant on December 10,1998. The 1998 Assessment Report documents experience gained while producing material in 1998 and establishing the first open cut bench. A detail plan was outlined for work in 1999 to produce 60,000 tonnes of Limestone and gravel, and rock, rip-rap and stone products that are used for construction purposes (as defined in the Land Act). This plan was not completed and only 40,000 tonnes was produced. Construction means the use of rock or other natural substances for roads, buildings, berms, breakwaters, runways, rip-rap and fills and includes crushed rock. Dimension stone means any rock or stone product that is cut or split on two or more sides, but does not include crushed rock. The apparent expected end use of the CaC03 resource (that of supporting a roofing plant raw materials and fillers) from the Selesse Project of IKO Industries Ltd. comes within the Industrial Use definition and therefore can be considered under the Mineral Tenure Act. Cell claims require $4 per ha of assessment work per cell (or cash-in-lieu) each of the first three years and $8 per ha each year after. Work in 2007 and 2008 consisted of sampling purer limestone located in the southern part of the claims on claims 576416 and 567886. This work suggest the two zones together are in the 500,000 to 600,000 tonne range of potential which can only be confirmed by drilling . 1 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 Slesse Mineral Lease Legend )M ~ [ Hwy Quarry Limestone I I Mineral Lease 363428 I | Mineral Claims ""~mm" Roads Contours Index Intermediate 0 75 150 300 Meters ' ' I ' ' ' ' ' ' Scale: 1:10,000 Projection: UTM Zone 10 Datum: NAD 83 Produced for: Homegold Resources Ltd.. Produced by: Coastal Resource Mapping Ltd. Dale: September 16, 2008 Project: Crm1159VProjects\Slesse_Limestone.mxd LOCATION and ACCESS The Slesse 1-11 mineral claims are situated on a steepsided knoll rising to an elevation of about 215m (700 ft) above the Chilliwack River immediately west of the mouth of Slesse Creek. This point is about 20.9 km (13.1 miles) by road easterly from Vedder Crossing bridge and about 26 km from the railway at Sardis. The claims are covered by second growth forest which has been thinned and may be ready for harvesting again in 20 or 30 years. The Forestry road that passes south along the limestone outcrops switches at higher elevations to the headwaters of Borden Creek. A road log from the Trans Canada Highway near the IKO plant is as follows: Road Log Distance Place Remarks 0 km Trans Canada Exit 92 at Abbotsford, Intersection of B.C. Highway 11 and the Trans Canada Highway #1 Freeway (to Sumas) 13 km Freeway Exit 104 Exit to Cultus lake, Yarrow, No. 3 Road, Follow No. 3 Rd to Yarrow Central Road. 18.5 km Yarrow Central Road Yarrow Townsite 20.7 km Vedder Mountain Road 26.1 km turn off to Cultus Lake 26.8 km Chilliwack River at Vedder Crossing and turn onto Chilliwack Lake Road, Paved Road, 80 km/hr speed limit, (north side of river). 29.1 km "On The Way" Cafe 34.05 km Pointa Vista Cafe & Garage Public Phone available. 35.9 km Private homes general end of Residential Housing Developments 36.5 km Selesse Park turn off small Provincial Campground 37.3 km Bridge across Chilliwack River south side of river -10.5 km from turnoff 43.5 km Corrections Facilities 44.5 km Mount Thurston Forest Service Recreation Campsite 45.9 km Borden Creek Bridge 46.65 km Old Logging Road up west side of claims along Nursey Creek 47.7 km Selesse Creek Bridge and Location of Ministry of Highways Rip-rap Quarry 20.9 km from turn off. Points along West Selesse Creek (& upper Borden Creek) Forestry Road 0 km Chilliwack Lake Road Forestry Road in very good shape even though logging has apparently not taken place for some years. 0.8 km Road to Upper Levels of Highways Limestone Quarry, Selesse Pit, Fraser Valley District. Phone 604-795-8363 for District Highways Manager. 0.85 km Bridge over major tributary of Selesse Creek & old road leading to the east side of Selesse Creek (Bridge out) at steep sided Limestone canyon (This east side Forestry Road leads south up towards the headwaters of Selesse Creek) 1.05 km 1 km sign 2.1 km 2 km sign 2.7 km LCP for Selesse #1 claim is 100m north of this point 4.8 km Junction of road to southeast 4.9 km Upper Bridge over major tributary 5.8 km Initial post for Selesse #10,15m south of road at this point 6.0 km 6 km sign 6.1 km Major dry gully & road closed sign by Forestry 6.3 km final post of Selesse #10 and Initial post of Selesse #11,100m north of road on steep side slope beyond 6.3 km the road continues west to the upper reaches of Borden Creek.
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