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 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, 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 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 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 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, 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.

Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 The logging bridge at 0.7km on the Slesse-Borden Forest Service Road was damaged during a flood about 2 years ago. This bridge was completely removed in mid-2008. Access to the upper levels by all terrain vehicles (ATV) is still possible above the 0.7km Bridge. Recently Forestry reports no plans to replace the 0.7km bridge which contradicts Forestry plans of 2006 which was to replace the 0.7km bridge and another bridge further up by 2008.

Forestry did suggest that it would be open to sharing the cost of a new 0.7km bridge. The span would be relatively simple 20 to 50 foot in length.

The apparent continuation of the low silica limestone (southeast zone) to the southwest was sampled in 2008. Access to the southwest zone is along Nursey Creek and does not require any bridge crossings.

3 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 This map is a user generated static output from an Internet mapping site and is for general reference only. Data layers that appear on this map may or may not be accurate, current, or otherwise reliable. THIS MAP IS NOT TO BE USED FOR NAVIGATION. CLAIM STATUS

The principal area of interest is covered by the Selesse mineral claims staked under the two-post and Modified Grid and MTO Systems and registered in the name of J.T. Shearer. A bill-of-sale was been executed in the name of Lome Warner, in trust to IG Machine & Fiber Ltd., 1600 - 42nd Ave. S.W., Calgary, Alberta, T2P 2L2. Figure 3 shows the recorded claim block as being immediately south of Mineral Reserve O/C1310,870707 which protects the fish hatchery on the Chilliwack River upstream from Slesse Creek. The claims are located within the New Westminster Mining Division.

TABLE II List of Claims Claim Name Record No. Units Issue Date Expiry Date* Selesse #1 363428 99 ha July 26,1997 Mining Lease Slesse 9 551047 211.69 February 3, 2007 February 3, 2011 Slesse Five 581159 380.96 April 13, 2008 April 13, 2010 Slesse A 567884 21.16 October 12, 2007 October 12, 2012 Slesse Surround 567886 126.97 October 12, 2007 October 12, 2011 Slesse B 567887 21.16 October 12, 2007 October 12, 2012 Slesse 410 576416 402.12 November 18, 2007 November 18, 2012 Total ha 1,263.06

*with application of assessment work documented in this report. - Selesse #1 Claim was reduced to 4 units on May 27,1998 and a Mining Lease was issued having a term of 25 years.

Under the present status of mineral claims in British Columbia, the consideration of industrial minerals requires careful designation of the product's end use. An industrial mineral is a rock or naturally occurring substance that can be mined and processed for its unique qualities and used for industrial purposes (as defined in the Mineral Tenure Act). It does not include "Quarry Resources". Quarry Resources includes earth, soil, marl, peat, sand and gravel, and rock, rip-rap and stone products that are used for construction purposes (as defined in the Land Act). 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. Claims require $4 of assessment work per ha (or cash-in-lieu) each of the first three years and $8 each year after.

4 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 1—

NTS : 92H/4E 10A't: JAN, 1998 |SCALt'AS SHOWN FIGURE T REGIONAL GEOLOGY

The Lower Pennsylvanian to Lower Permian Chilliwack Group (unit 3) consists of slightly metamorphosed pelite, sandstone and minor conglomerate, pyroclastic rock, altered basic volcanic rock known as greenstone, limestone and minor chert. The group was named by Daly in 1912 from the extensive outcrop of these rocks around the Chilliwack Valley, near the proposed quarry. Other rocks belonging to this group are exposed east of the southern part of Harrison Lake, near Agassiz and on the south side of the Fraser Valley near Cheam View Station (Daly, 1912; Cairnes, 1944; Monger, 1966).

There are five stratigraphic and lithologic divisions in the group in the Chilliwack Valley west of the fault zone that runs approximately north-south and crosses the valley seven miles below Chilliwack Lake (just east of the proposed quarry). The oldest division (2a) consists of pelite, siltstone and fine-grained sandstone whose stratigraphic base is nowhere exposed in the map area. Its apparent thickness ranges from 1,000 to 2,500 feet. Overlying this division with a gradational contact is Lower Pennsylvanian limestone (2b) that is commonly about 30m (100 feet) thick and locally absent. Disconformably (?) above this is a clastic division (2c) of pelite, sandstone, and minor conglomerate and tuff, ranging in thickness from 140 to 250 metres (450 to 800 feet). This division is conformably overlain by Lower Permian limestone (2d) whose thickness is generally 60-90 metres (200 to 300 feet), but locally may be as much as 600 metres (2,000 feet). The uppermost division (2e) consists of greenstone, pyroclastic rock and minor chert that in places conformably overlies the Lower Pennsylvanian limestone and elsewhere is stratigraphically equivalent to it. Thickness of this unit ranges from 60 to 600 metres (200 to 2,000 feet).

Slate is most abundant in the lowest division (2c) but comprises the major part of the clastic sequence overlying the Lower Pennsylvanian limestone. It is hard, locally siliceous, dark grey to black and is either massive or thinly bedded.

Sandstone is prominent in the clastic division (2c) where it is typically coarse or medium grained and occurs in massive beds. In the lowest division (2a) it is fine grained, grades to siltstone and forms thin, graded beds within the predominant pelite. The sandstone is typically tan weathering, grey or grey-green, poorly sorted and composed of angular fragments derived mainly from volcanic rocks and plagioclase feldspar (mainly albite or oligodase) that may be wholly or partly altered to carbonate or clay minerals. These are associated with chert clasts and pelite chips. Quartz is notably rare or absent. Sandstone near the top of unit 3b contains shards and pumice fragments and is gradational with lithic tuff.

Conglomerate, in unit 2c, forms massive beds typically a few metres thick but locally up to 30 metres thick (100 feet). It consists of well-rounded cobbles of volcanic rock, chert and locally limestone in a matrix of sandstone.

Limestone in the Chilliwack Group is mainly recrystallized. The Lower Pennsylvanian limestone (2b) is medium to dark grey, argillaceous, and where the primary texture is preserved, is a calcarenite. Most characteristic of this limestone are large crinoid columnals commonly an inch or more in diameter. The Lower Permian limestone (2d) is generally light grey, massive, locally dolomitic and contains large, dark grey chert nodules. Preserved textures indicate that the original rock was an aphanitic or calcarenitic limestone. The uppermost part is locally tuffaceous and contains numerous fusulinids and crinoid columnals.

Volcanic rock is of two main types, altered basalt or andesitic basalt, known as greenstone, and pyroclastic rock, some which is dacitic. It comprises division 2e, although a few tuff beds occur just below the lower Permian limestone (division 2d).

The greenstone is grey-green, massive and typically structureless, although pillows occur in a few places. It is commonly very fine grained and consists of randomly oriented, interlocking laths of altered plagioclase feldspar, making up 80 to 90 per cent of the rock, scattered intergranular or phenocrystic clinopyroxene Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 grains, forming 10 to 20 per cent, and interstitial chlorite and opaque minerals. The feldspar is typically saussuritized and the composition of any plagioclase remaining is albite. The pyroxene is mainly fresh and may be highly fractured, and in many examples is in ophitic or subophitic relationship with the feldspar. Chlorite is common interstitial, fills veins and vesicles and in some rocks is associated with pumpellyite. Calcite occurs in vesicles or rarely, as patches in the groundmass. Skeletal ilmentite displaying all stages of alteration to leucoxene and finely granular sphene is ubiquitous and may make up to 10 per cent of the rock. Some brownish grey or maroon varieties contain fine-grained hematite. Although no chemical analyses are available for these rocks, texturally and mineralogically they have more in common with basalts than andesites (Monger, 1966). Mineralogical assemblages are those of spilites, but typically this appears to be due to saussuritic alteration of the anorthite part of the plagioclase, leaving albite pseudomorphs containing saussurite, rather than to any excess of sodium in the rock.

The most prominent pyroclastic rock is hard, massive, unsorted pale green to olive-green, quartz-bearing crystal-vitric dacite tuff. This rock consists of 40 to 60 per cent pale green altered euhedral to subhedral feldspar, 5 to 10 per cent euhedral, bipyramidal, embayed quartz and a variable but subordinate amount of lithic and vitric fragments, in a fine-grained matrix (Monger, 1966). It grades with decreasing grain size into pale green silicified tuff resembling chert. Other pyroclastic rock contains lithic clasts up to 6 inches in diameter, together with altered vitric clasts.

Pale grey, green, white and maroon thin-bedded chert with argillaceous partings is locally interbedded with these volcanic rocks, but is never abundant.

The Chiiliwack Group east of the fault crossing the eastern end of Chiiliwack Valley are amphibolites, some of which contain relict volcanic textures, cherty pelites and some limestone pods, in part contact metamorphosed by the Chiiliwack Batholith. Structures in a hornfelsed rock of this sequence near the contact with the Chiiliwack Batholith on Williams Peak and to the south, closely resemble altered Permian fusulinids

The Chiiliwack Group in Chiiliwack Valley is highly deformed, having undergone at least two episodes of deformation. It was initially folded, together with Mesozoic rocks, and thrust to the northwest on at least two or possibly three major thrust faults. Folds related to this episode are tight and isoclinal and overturned to the northwest or recumbent, with fold axes trending northeasterly. A penetrative axial plane cleavage was developed in all clastic rocks during this episode. These structures were refolded and faulted during the later, minor deformational episode, which caused the common northeast plunge of early fold axes, and the northeasterly dip of bedding and planar structures produced during the first episode. Minor folds produced during the second episode are conjugate or chevron folds with northwest-trending axes, and major structures are large asymmetric antiforms and reverse faults with northeast-dipping fault planes.

Textural alteration, mainly in clastic rocks, is due to the early deformational episode, and becomes more intense from west to east. A penetrative fracture cleavage parallel to the axial plane of early folds is developed in pelitic and tuffaceous rocks west of the thrust fault that crosses Tamihi Creek, whereas coarser sandstones are little altered. East of and above this thrust the pelitic rocks have a slaty or phyllitic axial plane cleavage and grains in coarser clastic rocks are flattened, producing a crude foliation.

The Chiiliwack Group is overlain disconformably by Upper Triassic rocks of the Cultus Formation. Bedding on both sides of the contact is parallel and both Mesozoic and Paleozoic rocks appear to have undergone two deformational phases and the same degree or metamorphism. The basal contact of the group is not known from the map area, as the oldest rocks in the formation overlie younger rocks on a thrust fault.

Fossils occur in all divisions of the Chiiliwack Group but are rarely abundant. Of these only fusulinids in the Lower Pennsylvanian and Lower Permian limestone give precise stratigraphic ages.

6 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 The fusulinid faunas allow fairly precise correlation with other units in the Western Cordillera. Lower Pennsylvanian limestone outcrops extensively in northwestern Washington, southwest of the map area. Limestone of the Cache Creek Group at Harper Ranch, east of Kamloops, British Columbia and the Coffee Creek Formation of Suplee, Oregon are of the same age. Lower Permian limestone outcrops southwest of the map area and contains similar fusulinids to those in division 3c'. Lithologically the Chilliwack Group is somewhat similar to the Hozameen Group, although it contains more clastic material.

7 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 Slesse Mineral Lease

□ '

O PROPERTY GEOLOGY and CaC03 RESOURCES

Geological mapping on the South Slesse Limestone Project indicates that a single recumbent fold plunging - 6° towards 192° is the dominant structure in the existing Highways quarry. This fold accounts for the "double" thickness of the upper limestone unit in the quarry. This structure continues south onto the IG Claims and similar conditions can be expected although the fold hinge will be lower in elevation the farther south it is encountered, Figure 6. Tight isoclinal folding is exposed on the cliffs overlooking the Chilliwack River.

The rusty stain on the upper benches of the Highways Quarry is due to the oxidation of thin, pyritic, black argillite interbeds which appear to be slightly thicker along the hinge region of the recumbent fold structure.

Since the limestone unit is exposed on the IG Claims as a cliff face running along 500m on the southwest part of the quarry knoll, it is unlikely that the limestone unit suddenly disappears at depth. However, from a geological perspective, that without further diamond drill hole control, the project runs the risk of not defining in a timely fashion: A) depth of overburden to the south B) thickness and frequency of pyritic argillite interbeds C) uniformity and composition of the Limestone unit D) location of chert beds and chert nodule horizons E) contact with slate to the east

The cliff on the southwest side of the knoll exposes at least 60m thickness of the upper limestone unit. On precipitous slopes lower on the knoll a lower limestone unit at least 30m thick is also exposed but is almost inaccessible. A belt of greywacke and argillite separates the two exposures of limestone whether the two exposures of limestone are parts of one body repeated by faulting or are two separate bodies remains uncertain. The limestone here strikes 050° dipping 10 to 35° southeast. Chert beds, especially in the upper limestone unit are present.

Three major tectonic units are separated by thrust and reverse faults in the belt south of Fraser River. The lowest unit is believed to be autochthonous and consists mainly of Mesozoic rocks with minor fault across which a narrow sliver of probable pre-Devonian basement has been brought up, and on the south and east by a thrust fault. Minor folds in this unit are tight, overturned to the northwest and have axial planes that dip southeast at moderate angles. Paleozoic rocks overlying the Mesozoic rocks on Church Mountain are believed to be part of this unit as the degree of alteration and development of planar structures is identical to that in the Mesozoic rock below. The Paleozoic rocks may comprise the lower limb of an over turned fold and as such should be called parauthochthonous. Above this unit are allochthonous rocks that overlie a major thrust correlated with the (American) Church Mountain thrust. Within the allochthonous rocks a thick lower sequence of Permian volcanic rocks (unit 3b) is separated by an assumed thrust from overlying Pennsylvanian and Permian strata (unit 3) and Mesozoic rocks (unit 4). Permian limestone (unit 3c') on Mount McGuire and the north side of Chilliwack Valley outlines a major recumbent fold overturned to the northwest. This plunges gently to the northeast, probably as the result of later deformation. The lower limb of the fold is replaced by a thrust, below which is the thick sequence of Permian volcanic rocks. The thrust appears to be genetically related to the recumbent folding. Minor folds in these rocks mirror the geometry of the major structure. Planar structures in the allochthonous rocks are far better developed than those in the autochthon. An axial-plane slaty or phyllitic cleavage is found on both Paleozoic and Mesozoic pelitic rocks and the grains in coarser clastic rocks are flattened, producing a crude foliation. Paleozoic rocks on Cheam Peak, and those that form a klippe to the south of it, appear to be a structurally higher thrust sheet as they overlie Mesozoic rocks. The easternmost tectonic unit includes Paleozoic rocks (unit 2), probable basement rocks and minor ultramafic rocks (units Aa, Ac), and is separated from rocks to the west by a north-south trending fault zone that dips easterly at about 70° where well-exposed near Mount Pierce. This fault appears to truncate structures to the west. Rocks east of the fault probably form the northerly 8 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 continuation of the zone of imbricated Paleozoic rocks and basement slices below the main Shuksan Thrust that is well exposed west of Slesse Creek just south of the International Boundary.

Samples taken in by Mathews (1947) and during the current program are shown in Table II. TABLE II Results of 1997 Sampling, Major Oxides

Upper Limestone Insoluble R203 Fe03 MnO MgO CaO P2Os S H20 Loss

1997 Upper Limestone 8.04 (Si03) 0.67 0.50 0.03 0.91 50.59 0.21 0.15 38.8 9 *1947 Upper 100' 15.1 0.47 0.42 0.05 2.50 43.6 0.03 0.06 37.8 0.06 *1947 Lower 100' 22.5 _j 2.12 0.91 0.63 0.82 40.1 0.07 0.03 33.2 0.07 Lower Limestone *100' 17.8 0.97 0.64 0.13 0.36 43.7 0.09 0.09 35.9 0.11 t Chilliwack River North 8.24 0.44 0.34 0.005 0.29 50.3 0.022 0.119 40.1 Top 61m 1957 of a 120m thick member * from Mathews 1947 p. 48 t from EMPR Bulletin 40 pg. 41 & 42

Note: R203 = Aluminum oxides + TiO, ZrO, BeO, CrO, As and V. For most limestones

R203 is essentially Aluminum oxide.

CaO contains 71.47% Ca by weight, (1% CaO = 1.78% Ca03) Insol = Acid insoluble matter, chiefly silicates.

The thickness of the upper limestone unit of 60 metres has the potential, based on surface exposures over a 500m strike length and width of 150 metres to contain in excess of several million tonnes of relatively siliceous (>8%) carbonate material that may be accessible by open cut mining immediately south of the existing Highways quarry.

There is also potential to define 62 million tonnes by deeper diamond drilling.

Controlled grinding tests were completed with a final particle size, determined by wet screen assaying, was: 150 micron 99.8% passing 74 micron 93.7% passing 38 micron 77.7% passing The filler grade grinding specifications requirement by IG is as follows: Filler (Beachville) Filler (Madoc) Talc % smaller than % smaller than % smaller than 150 micron - 100 20 Tyler # mesh 0 20 Tyler # mesh 0 74 micron - 73.6 28 Tyler # mesh 0-0.8 40 Tyler # mesh 7-8 45 micron - 67.2 35 Tyler # mesh 0-3 70 Tyler # mesh 22-24 20 micron - 46.0 48 Tyler # mesh 9-15 100 Tyler # mesh 11-12 10 micron - 30.0 65 Tyler # mesh 12-18 200 Tyler # mesh 22-24 5 micron - 8.5 100 Tyler # mesh 10-25 Plus 200 Tyler # mesh 30-38 1 micron - 2.15 200 Tyler # mesh 15-30 PAN 20-50 150 micron = 100 mesh (Tyler #) 75 micron = 200 mesh (Tyler #) Further testing on actual filler in production roofing products by IG at the IG Research Centre in

Brampton, Ontario apparently gave favourable results on the ground Slesse CaC03.

Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 GEOLOGICAL MAPPING and SAMPLING in 2008

In 2007, samples were collected from the drill core (from the 1998 program) which returned higher than

desired Si02 content. Additional samples were collected from a less siliceous zone southeast of the main quarry knoll (refer to Figure 4 in pocket) in early 2008. Although the silica content was within acceptable levels, the bridge was removed by Forestry soon after the sampling was completed.

Further samples were collected to the southwest (refer to Figure 4) using road access from the west which does not require any creek crossings and a 115 tonne mini bulk sample from broken rock was collected in May 2008 and transported to the Company's roofing plant in Sumas, Washington where the material was crushed, pulverized and used to make acceptable tear strength fibreglass shingles.

This southwest zone appears to be a continuation of the less siliceous limestone. Additional geological mapping was completed between these two limestone units.

The southwest zone was traced southwest for approximately 300 metres. The exposure at the end of the logging branch road is a minimum of 4m high. The limestone unit is poorly exposed but can be traced by sinkholes and other karsitc features for about 300 metres to the southwest above the access road. The limestone unit appears to be about 15m wide, [(potential volume 15mx30mmx30m= 135,000m3) which is conceptually 350,000 tonnes using a Specific Gravity (SG) of 2.6 or 2.7. This potential could only be quantified with diamond drilling.]

The southwest zone can not be reliably traced to the northeast (although this is a strong likelyhood) due to overburden and extremely steep terrain (steep canyon walls of over 100m).

The southeast zone (the site of the 2002 bulk sample) appears to be the continuation of the southwest zone across the 0.7km creek. Mapping around the southeast zone suggests a change in direction of the carbonate horizon. This change in direction, due to overburden and logging debris can only be confirmed by diamond drilling.

A rough conceptual potential could be (subject to drill confirmation) would be 200mxl5mx30m=90,000 or about 230,000 tonnes in potential.

The two zones together are in the 500,000 to 600,000 tonne range of potential which can only be confirmed by drilling. A future program of about 1,500 feet of drilling would be required and is recommended. The definition of an increase in limestone resources by further work is considered to be good.

10 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 ENVIRONMENTAL CONSIDERATIONS

Existing Conditions

The project, because of its proximity to Slesse Creek and Chilliwack River riparian environment required careful planning to minimize impacts.

The area is within the Chilliwack Public Sustained Yield Unit and has been extensively logged in the recent past. The largest nearby logging centre is located at Chilliwack. Other land uses include hunting, native food, sports and commercial fishing. There is an active fish hatchery and salmon enhancement facility on the east side of the mouth of Slesse Creek.

The quarry site is located within the Coastal Douglas Fir biogeoclimatic zone. The area receives on the order of 150+ cm of precipitation per year. The site is at an elevation of 100 to 300 metres ASL The on-site upland vegetation is mixed Cedar, Fir and Hemlock forest which is somewhat scrubby due to the presence of rock outcrops. No evidence of wildlife licks or trails has been observed, although bears and deer have been seen on the property during exploration work. Two small drainages convey runoff north from the area. These two appear to dry periodically. The ground slopes away to Slesse Creek on the east, Nursery Creek on the west and the Chilliwack river on the north. The adjacent Ministry of Highways quarry is located just south of the confluence of Slesse Creek and the Chilliwack River. As the quarry slopes up toward the top of a knoll, site drainage could be to either of these three water courses.

The broader area of the Chilliwack River watershed has been altered from its natural state through activities related to forestry, agriculture and urbanization. In particular, the construction of dykes has cut off access to various areas of fish habitat. Due to the significant pressure of population growth, any developments are likely to be scrutinized carefully and should be undertaken with due care and planning to assure minimal environmental impacts.

Environmental Impacts and Planned Mitigation

The rock (limestone) to be quarried is relatively pure and chemically inert. The main knoll will be quarried leaving either level ground, or a quarry which extends down from the ridge crest to avoid the vertical cliffs on the west side of the knoll. The total area to be affected by the quarry, stockpile and loading facilities will be about 16.2 hectares by the end of the 50 year mine life.

The overburden consists of a thin layer of topsoil which can be set aside and used as filter for quarry runoff until reclamation. The limestone, with the exception of a few minor fault areas is fairly pure and the entire amount of quarried material will be shipped out. The minor amount of material in the fault/fold hinge areas is softer and somewhat mineralized and may not be useable. Thus, some minor waste material could be expected. This material can be used to form a base for the stockpile or returned to the pit.

Most of the stockpile may be located above the 230m elevation. Drainage from the quarry and from the stockpile will be directed into a major settling pond. Some filtration through overburden material or settling in a reservoir used for dust control is possible.

The minor silica content is mainly in the form of chert nodules, and thus is not expected to be crystalline in nature. The Workers' Compensation Board requires that workers who may be exposed to more than 50% crystalline silica dust above the regulated limits must wear suitable respiratory protection. Subject to air- bourne dust sampling, in most instances properly fit tested one-half face respirators with High Efficiency Paniculate Arrestor (HEPA) cartridges and disposable coveralls will be acceptable. Workers will be trained in the proper use of the respirators if required as well as the nature of the hazard to comply with Federal

11 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 WHMIS Regulations. IG Machine & Fiber Ltd. is committed to putting in place suitable controls to minimize the effects of dust generation, if necessary.

The material within the fault zones will no be tested for its acid generating capacity. Since it is expected that the abundance of calcium carbonate on site will neutralize any traces of acid generation.

Quarrying, crushing, stockpiling, and loading of the crushed rock are all physical activities. Water spray will be used to control dust if necessary, in which case, some or all of the quarry drainage will be contained to provide a water source. All further processing will be off site.

Reasonable efforts to minimized the visual impact of the project, particularly from the west along the Chilliwack Lake Road, will be made. A screen of vegetation will be preserved wherever possible. Because the material is formed along a knoll, quarrying can be conducted either from the top down or back to front and this will be done subject to practical and economic constraints. The knoll formation also means that rock faces remaining at the end of the project will be low profile and easily screened by vegetation. A conveyor will be required for loading and some clearing and levelling of the immediate loading area will be required.

As a result of the small scale of the project and the relatively benign nature of the environmental impacts, the anticipated environmental concerns from this project are relatively minor.

Fisheries Concerns

The Chilliwack River supports anadromous stocks of sockeye, pink, chum, coho, chinook and steelhead as well as stocks of cutthroat and rainbow trout, Dolly varden, kokanee, whitefish and other non-sports fish. In addition to their contribution to commercial and native fisheries, these stocks form the basis for one of the most important recreational fisheries in the province. A major hatchery is located just upstream of the confluence of Slesse Creek on the left bank.

The mean annual flow for this system is 64 cubic metres per second. Large amounts of gravel, averaging 50,000 cubic metres per year or more move through the system and are removed, primarily downstream of Vedder Crossing as part of the flood protection program operated by the Vedder River Management Committee.

Slesse Creek is an important tributary of this system and provides important rearing and spawning habitat. Stocks are reported to be increasing in Slesse Creek. Nursery Creek is much smaller.

One significant issue is the occurrence of clay slides in the area. These slides have significantly increased turbidity in the Chilliwack river and by covering spawning and rearing areas with an impervious layer prevent food production, damage spawning areas, may smother already spawned salmon eggs and alevins and curtail subgravel flows.

The quarry itself, since it is for limestone is unlikely to produce any water quality problems related to water chemistry.

Careful management of site drainage, removal of vegetation and overburden to prevent downslope impacts, particularly the introduction of silt laden water to any of the three watercourses will be undertaken. Because the site is located at the top of a hill site drainage concerns are limited to the precipitation falling on the site only. Overflow from the settling ponds will not exceed 75mg/l TSS.

As mentioned above, there are very significant fisheries resources in the vicinity. Due, however, to the location of the site on a hilltop and the nature of the material to be quarried, there should not be any

12 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 impacts provided the site drainage is managed to prevent siltation problems. No treatment of site runoff is planned other than settling ponds and filtration required to address this issue.

The actual quarry will cover an area of 16.2 hectares and the vegetation and overburden will be removed from this area sequentially over the life of the quarry. Reclamation will be conducted on disused areas of the quarry using overburden which has been stockpiled or from areas which are to be opened. Replanting will be done using native plants, again from on site areas where possible.

Existing roads and infrastructure are available for this project, thus, physical impacts are limited to the area of the quarry. The hilltop location east of the vertical cliff face eliminates any visual impacts of the project and simplifies final reclamation. Only stepped rock faces will be left at the end of the quarry life.

Reclamation

At the end of the lifespan of this quarry (Phase I and II), it is expected that an excavation extending below 300m elevation will remain. Two possible options for reclamation of the area are outlined below. A thirty thousand dollar bond has been posted.

The first option is that the natural small cliff-scarp topography of the area would be replicated by the quarry walls. Backfilling is considered to be impractical since the limestone product is shipped out in its entirety. The areas where quarrying is completed and the quarry floor at the 300m level will be progressively reclaimed.

The second option is that the level surfaces, once covered in overburden and seeded could form the basis for a forestry-style campsite and destination centre to support the recreational fishing industry.

In the event that the quarry is shut down before it extends to the 300m level, it would be graded and sloped with the overburden material remaining on site and reseeded. The stockpile base will be graded back down to the former level in order to re-establish forest habitat.

13 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 CONCLUSIONS and RECOMMENDATIONS

In 2007 and 2008, samples were collected from the drill core (from the 1998 program) which returned

higher than desired Si02 content. Additional samples were collected in 2008 from a less siliceous zone south of the main quarry knoll (refer to Figure 4). Although the silica content was within acceptable levels, the bridge was removed by Forestry soon after the sampling was completed.

Further samples and a small bulk sample of 115 tonnes were collected to the southwest (refer to Figure 4) using road access from the west which does not require any creek crossings. Resource potential in the southwest and southeast zones is approximately 500,000 to 600,000 tonnes which requires confirmation by drilling. Potential to expand this tonnage is considered good.

Previously, acquisition and preliminary evaluation of the Slesse Limestone Quarry was undertaken in July

and October 1997 for IG Machine & Fiber Ltd. The CaC03 resource at Slesse Creek is a source for the filler requirements of the new manufacturing plant operated by IKO in Sumas, Washington. A 180m thick Lower Permian sequence of grey, recrystallized limestone with interbedded greywacke, chert and argillite of the Devonian to Permian Chilliwack Group is exposed for 700 metres along the northwest flank of a knoll immediately southwest of the junction of Slesse Creek and the Chilliwack River.

Geological mapping on the South Slesse Limestone Project indicates that a single recumbent fold plunging - 6° towards 192° is the dominant structure in the existing Highways quarry. This fold accounts for the "double" thickness of the upper limestone unit in the quarry. IG Machine & Fiber Ltd. is confident that this structure continues south onto the IG Claims and similar conditions can be expected although the fold hinge will be lower in elevation to the south. Three diamond drill holes were completed along the ridge in 1998 to confirm surface observations.

Since the limestone unit is exposed on the IG Claims as a cliff face running along the southwest part of the quarry knoll for over 700m , it is unlikely that the limestone unit suddenly disappears at depth. However, from a geological perspective, without further diamond drill hole control, the project runs the risk of not defining certain parameters needed for full production.

Previously, approximately 45,000 tonnes of Limestone were drilled and blasted in 1998 on the initial pioneer bench at 360m elevation. Some of this material was used in road construction and establishment of the crusher-stockpile area. Approximately 10,000 tonnes was crushed and screened by year end and a relatively small amount was trucked to the Roofing Plant in Sumas, Washington. This material was not suitable for filler applications but could satisfy aggregate uses.

A program of about 1,500 feet of drilling, in the southeast and southwest zones, is recommended as the next phase of investigation. Respectfully submitted,

J.T. (Jo) Shearer, M.Sc, P.Geo. Consulting Geologist Quarry Supervisor

14 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 COST ESTIMATE for FUTURE WORK

A program of drilling 1,500 feet (450m).

Project Supervision, Core Logging, Follow-up mapping $ 12,500.00 Contract drilling, 1,500 ft. @ $30/ft. 45,000.00 Analytical 5,000.00 Transportation, Room & Board 4,500.00 Report Preparation 3,000.00 Quarry Design, Drafting 5.000.00 Total $ 75,000.00

specnliH / submitted, \0W T.po) Shearer, M.Sc, P.Geo. Iting Geologist er 30, 2008

15 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 REFERENCES

Adams, M. A. and White, I. W., 1990: Fish Habitat Enhancement: A manual for Freshwater, Estuarine, and marine Habitats. Department of Fisheries and Oceans, Canada. DFO 4474.330p.

Bleek, J. A. and Sherar, R. L, 1991: Calcium Carbonate in Paper. Conference Proceedings, 10th Industrial Minerals International Congress, 1991.

Bristow, C. M., 1992: An Introduction to the evaluation of Mineral Filler Deposits. Industrial Minerals Magazine, June 1992.

Cairnes, C. E., 1923: Lucky Four Mining Property, , B.C. Geological Survey of Canada, jn Summary Report, 1922, Part A, Page 127-138.

Fish Habitat Management Branch, 1986: Policy for the Management of Fish Habitat, Minister of Supply and Services Canada 1986. Cat. No. Fs 23- 98/1986E. lonides, G., 1991: Opportunities for High Value-added papermaking mineral pigments in Western , In Conference Proceedings, Industrial Minerals Forum 1991, page 99-102.

McDougall, J. J., 1984: Report on the Pop and Popl Mineral Claims, Bridal Falls - Cheam Peak Area, Private Report for Saturn Energy and Resources Ltd., Jan. 9, 1984,11pp.

Mathews, W. H., 1947: Calcareous Deposits of the Georgia Straight Area. B.C. Dept. of Mines, Bulletin 23, 113 pp.

Ministry of Energy, Mines and Petroleum Resources, 1992: Guidelines for Mineral Exploration: Environmental Reclamation and Approval Requirements. Revised January 1992, 57 pp.

Monger, J. W. H., 1970: Hope Map Area, West Half, Geological Survey of Canada, paper 69-47, 75 pp.

Norman, D. K., 1992: Reclamation of Quarries, Washington Geology Vol. 20, No. 4, Dec. 1992, pp. 3-9.

Ray, G. E., 1982: The Nagy Gold Occurrences, B.C. Department of Mines Paper 1983-1, Geological Fieldwork 1982.

Resource Management Branch, 1992: Health, Safety and Reclamation Code for Mines in British Columbia. Ministry of Energy, Mines and Petroleum Resources, 1992,13 parts plus Index, 200 pp.

16 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 Richards, T. A. and McTaggert, C. C, 1976: Granitic Rocks of the Southern Coast Plutonic Complex and Northern Cascades of British Columbia. Geological Society of America Bulletin 87, p. 935-953.

Shearer, J. T., 1984: Assessment Report on the Hunter Group, Hunter Creek Area. Assessment Report, 1984,12 pp.

1990: Assessment Geological and Prospecting Report on the POP#l Mineral Claim, Bridal Falls - Cheam peak Area, Private Report for New Global Resources Ltd., May 25,1990,10 pp.

1995: Geological and Prospecting Report on the Wahleach 1-11 Mineral Claims, (including the Popkum Limestone Quarry) Bridal Falls - Cheam peak Area, Private Report for Steelhead Aggregates Ltd., May 15,1995,10 pp.

1998: Mining Permit Application Summary on the South Slesse Limestone Quarry, MX7-114 for I.G. Machine & Fibers Ltd., dated January 10, 1998, 23 pp.

1998: Geological and Diamond Drilling Assessment Report on the Slesse Limestone Quarry, dated July 15,1998,18 pp. plus drill logs.

Wright, B., 1988: Preliminary Environmental Study, Slesse Limestone Quarry.

17 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 APPENDIX I

STATEMENT OF QUALIFICATIONS

OCTOBER 30, 2008 Appendix I STATEMENT OF QUALIFICATIONS

I, JOHAN T. SHEARER, of 3572 Hamilton Street, in the City of Port Coquitlam, in the Province of British Columbia, do hereby certify:

1. I am a graduate of the University of British Columbia (B.Sc, 1973) in Honours Geology, and the University of London, Imperial College (M.Sc, 1977).

2. I have over 35 years experience in exploration for base and precious metals and industrial mineral commodities in the Cordillera of Western North America with such companies as Mclntyre Mines Ltd., J.C. Stephen Explorations Ltd., Carolin Mines Ltd. and TRM Engineering Ltd.

3. I am a fellow in good standing of the Geological Association of Canada (Fellow No. F439) and I am a member in good standing with the Association of Professional Engineers and Geoscientists of British Columbia (Member No. 19,279).

4. I am an independent consulting geologist employed since December 1986 by Homegold Resources Ltd. at #5-2330 Tyner St., Port Coquitlam, B.C.

5. I am the author of a report entitled "Geological and Geochemical Assessment Report for the South Slesse Limestone Quarry, Chilliwack River-Slesse Creek Area, British Columbia" dated March 2, 2008.

6. In the current program, I visited the property August 13, 31, September 1 and October 1 & 2, 2008 and May 2008 during the mini bulk sample. I have visited the property in July to November, 1997, and throughout 1998 on a daily basis while development and production occurred. I have carried out mapping and sample collection and am familiar with the regional geology and geology of nearby properties. I have become familiar with the previous work conducted on the Slesse claims by examining in detail the available reports and maps and have discussed previous work with persons knowledgeable of the area.

7. I have an Open Pit Supervisor Ticket (#98-3550) for daily supervision duties in the Limestone Quarry.

8. I have no interest in the securities I.G. Machine & Fibers Ltd. or IKO Industries Ltd. or any subsidiary company, nor do I expect to receive any interest in the Selesse Claims. I consent to I.G. Machine & Fibers Ltd. or IKO Industries Ltd. using this report for any corporate purpose.

Dated at Port Coquitlam, British Columbia, this 30th day of October, 2008

18 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 APPENDIX II

STATEMENT OF COSTS

OCTOBER 30, 2008 Appendix II STATEMENT of COSTS Slesse 2008

Wages & Benefits J. T. Shearer, M.Sc, P.Geo., 5 days @ $700/day, Aug. 30, 31, Sept. 1, Oct. 1&2/08 $ 3,500.00 GST 5% 175.00 Wages Subtotal $ 3,765.00

Expenses Truck Rental 4 days @ $89.50/day 358.00 Gasoline 168.00 Field Assistant, S.LShearer, 3 days @ $300/day, Aug. 30, 31, Sept. 1/08 900.00 Meals 9.55 Excavator (Woodside Excavating), May 2008 for Mini Bulk Sample 4,425.00 Crushing on Tracks for Mini Bulk Sample 3,425.00 Trucking (Mac Agg), 10 hrs @$125/hr, to Sumas Plant for Processing 1,250.00 Report Preparation 700.00 Word Processing & Reproduction 150.00 Expenses Subtotal $11,385.55

Expenses & Wages Total $ 15,060.55

Filed 9,500 Applied 11,205.15 PAC 1,705.15

19 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 APPENDIX III

ASSAY CERTIFICATES

OCTOBER 30, 2008 #200 - 11620 Horseshoe Way ($04001:2000 Richmond, B.C. ^ttw Canada V7A4V5 Phone: 604/879-7878 604/272-7818 Fax: 604/879-7898 604/272-0851 Website: www.ipl.ca ^SS^ International Plasma Labs Ltd. Email: info@ip<.ca Intertek ISO 9001:2O0O Certified Company

Certificate*: 08H3722 Client: Homegold Resources Project: Slesse Shipment*: PO#: No. of Samples: 2 Analysis #1:S(T) Analysis #2: Whole Rock Analysis Analysis #3: Comment #1: Comment #2: Date In: Aug 11, 2008 Date Out: Aug 19, 2008

Sample Name SampleType S(tot) AI203 BaO CaO Fe203 K20 MgO % % % % % % %

1 Rock 0.03 2.00 0.01 50.58 0.50 <0.01 0.64 2 Rock 0.02 1.78 <0.01 51.62 0.46 <0.01 0.46 RE1 Repeat 0.03 2.02 0.01 50.38 0.51 <0.01 0.65

Minimum detection 0.01 0.01 0.01 0.01 0.01 0.01 0.01 Maximum detection 20 100 100 100 100 100 100 Method Leco WRock WRock WRock WRock WRock WRock

* Values highlighted (in yellow) are over the high detection limit for the corresponding methods. Other testing methods would be suggested. Please MnO Na20 P205 Si02 Ti02 LOI Total % % % % % % %

0.02 0.05 <0.01 6.32 0.05 40.43 100.59 0.02 <0.01 <0.01 4.94 0.03 40.89 100.19 0.02 0.05 <0.01 6.34 0.05 40.81 100.83

0.01 0.01 0.01 0.01 0.01 0.01 0.01 100 100 100 100 100 100 105 WRock WRock WRock WRock WRock 2000 F WRock

J call for details. APPENDIX IV

SAMPLE DESCRIPTIONS 2002

OCTOBER 30, 2008 APPENDIX IV

Sample Descriptions 2007 Slesse Limestone Project March 2008

All Samples assayed for whole rock at SGS Labs in Ontario.

Sample Descriptions

(A) High CaCo3 - Low Silica South Area - Light grey, medium crystalline limestone, mostly well bedded, all samples similar, has also very low MgO

(B) GPS Location 0594276E+5435454N, Elevation 525m, Southwest Area, Slesse 1 & 2 - dark grey, mainly fine grained limestone, well bedded to thin bedded rubbly outcrop, low MtO but relatively

high Si02.

Refer to Figure 7 for Locations.

Elevation 1 0593340E 5435953N Crusher site 320m 2 0594284E 5435451N On top limestone exposure, massive black sugary 525m Location of 115 limestone with numerous white veinlets and patches, tonne bulk sample some more sandy layers observed 3 0594260E 5435448N 15m or so south, massive unit overlying thin bedded unit with abundant black shale partings 4 05994242E 5435443N Thin bedded, dips to SE, strike about 214°, some thicker beds 5 0594234E 05435436N West end of thin bedded unit, more shaly toward west end 6 0594214 5435450N Thin bedded unit contact with conglomerate and green 523m sandstone, phyllitic, slaty 7 0594196E 5435446N End of conglomerate and sandstone outcrop, covered 521m down to small exposures of greenish weathering sandstone and conglomerate 8 0594152E 54354437N White weathering chert pebbles 515m 9 0594316E 5435453N Most easterly burn pile, east of bulk sample, covered in middle of clear cut 10 094315E 5435409N 30m to 50m down slope from top of clear cut outcrop 549m of blocky jointed green sandstone 11 0594305E 5435414N West back to small gully above limestone, green 568m sandstone same as #10, tiny yA metre "scarp" or might be very old road-trail-historical road 12 594275E 5435435N West side of clear cut south of limestone, trial - over 80 568m years old 13 0594235E 5435415N Mini karst west and south of road exposure in timber, 536m south of the mini karst there is a wide relatively flat area which is covered back along karst topo

21 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008 14 0594212E 5435397N Black limestone with white sparry veinlets 552m 15 0594248E 5435429N East through timber back to clear cut above Truck 541m 0593740E 5435967N Down logging road to tepee road, road to I.G. test 342m quarry junction 16 0593552E 5435920N Edge of large clear cut going down road, near sign "Cut 335m block 402, cutting permit 200, timber mark EAZ200" 17 0593355E 5436716N On highway pavement at end of access road 223m 18 594371E 5436853N At bottom of highway quarry near Slesse Creek 241m 21 0594352E 5435470N On east side of clear cut near creek, indurated grey 525m sandstone, crsgrit 22 0594319E 5435522N Top of 30m cliff, traverse east, creek has 300 foot 522m canyon 0594398+5435502, north back to start, 15m cliff at sandstone 23 Karstic weathering and grit 24 0594274 5435510 Just a little to the west, grey-brown "greywacke", 506m pyritic, bot off cliff 25 Bench below, still greywacke, cliff forming 26 0594190 5435616 At corner near burnt out car 451m 27 0593783 5435702 Large limestone blocks near lower corner 417m 28 0593888 5436047 On south west end of I.G. quarry, large orange-brown 364m top 0595480E 5436091N NW Slesse at lower logging road, WP 057 299-304m Outcrop on main road, WP 058, NW Slesse, sandstone 337m brown with rare pebbles up to 10mm WP 059 more sandstone outcrop on main road 347m 0594758 5436010 Sandstone clean, NW Slesse 359m 0594787 5435998 Limey chert, NW Slesse 365m 0595099 5435750 WP060 WP 061 indurated sandstone, NW Slesse 0595269 5435640 WP 062, 2006 road junction 441m 0595128 5435658 WP 063 on road 445 m 0594994 545688 WP 064, along main road WP 065, NW Slesse, limestone 0594785 5435714 WP066, limestone, at junction with branch down to 482m 2005 bulk sample 0594773 5435725 WP 067, clean looking limestone 478m 0594687 5435753 WO 068, large outcrop, buff weathering sandstone, 471m blocky, jointed WP 069, at od crusher site, orange-buff sandstone at south east end 0594633 5435819 070, at broken limestone muck pile, straight line from 455m 069, NW Slesse 09, muck pile 0594638 5435850 071 WP, on prominent Point, white sparry banded 456m limestone, old sample taken hear overlooking clear cut and IKO quarry work, NW Slesse 10 sample 0594668 5435838 NW Slesse 011, WP 072, at nowrth west corner of bulk sample cut, black limestone with lots of white veining, SC #1 & 2 Jon Stewart samples Bulk sample site, 3-4m high face, back to clean looking limestone at junction, might be 20m wide? Strike 152°

22 Geological and Crushing Assessment Report for the South Slesse Limestone Quarry October 30, 2008