Prospecting Report on the Magpie Property By John Buckle, P.Geo. October 25, 2003 REVISED FEBRUARY 15, 2004 2.26586 RECEIVED FEB 1 9 GEOSCIENCE ASSESSMENT j OFFICE—- _ ., 42C02NE2003 2.26586 LECLAIRE 010 Introduction This report covers the work done during the summer and fall of 2003 on the 80 hectar property claim number 1235586. Two 6 claim units were staked November 17 and 18, 2001. Following a declaration from the mining recorder to extend the claim block to enclose the full one square kilometre available in Leclaire township in Sault Ste Marie district, claim map G2782. Mineral claim staking in this township was originally under the control of Algoma Central Railway and subsequently by Wagner Forest Services except for a few claim blocks that predated the ACR agreement. One of these blocks that straddles the Magpie River is Crown Land with mineral rights administered by the Ministry of Northern Development and Mines. The claim block was staked in the name of John Buckle, prospecting license # C39049, client number^ 13252 . The claims were subsequently transferred to Oasis Diamond Exploration the current claim holder. My first visit to the property was prior to staking on November 16, 2001. On this visit I recognized mafic to intermediate breccia on an outcrop in the Magpie River with a field assistant Mr. Constantine Foussekis. The property was subsequently staked the following two days and reconnaissance samples were collected for examination. On May 6, 2003 I revisited with Mr. Nicolas Pedafironimos of Oasis Diamond exploration. On this visit prospecting and geological mapping of the outcropping peninsula and the opposite coastline on the east shore of the Magpie River. On August 6, 7, and 8 I examined the outcrop and other points on the claim block assisted by field assistant Mark Cantelon. The property is accessible by boat on the Magpie River from the Steephill dam road approximately 16 kilometers south of the property. The property can also be accessed from the Dubreiville Road and then by the old Magpie Mine Road to the Magpie River and from there by boat 2 kilometers south. The western section of the claim block can be reached by road and foot from the Magpie Mine Road which joins highway 17 about 20 kilometers north of Wawa. In winter a groomed snowmachine trail passes through the centre of the property and along the old Magpie Mine Road. Geological Mapping A well exposed outcrop, 150 meters by 100 meters outcrops as a peninsula in the Magpie River. The outcrop is mafic to intermediate breccia with clasts carbonate, mafic and gneissic country rock. The clasts vary from angular to sub rounded pebbles graduating to angular cobble clasts. The matrix is dominated by ferro-magnesian minerals, biotite and chlorite, apple green alteration implies chrome rich minerals. Foliation and possible volcanoclastic bedding appears to be east west. This interpretation is corroborated by steeply dipping dykes of similar mafic clastic rocks on the east shoreline of the Magpie River approximately 100 east of the original outcrop. Further mapping of the property during a visit to the site October 5-8 2003 confirms that the breccia rock extends into in the east-west orientation more than 400 meters on the east shore of the Magpie and the south shore of a large bay in the river north of the original outcrop. Photographs of the property location, access and outcrop geology are attached in Appendix C Sampling Approximately 42 kilograms of sample were taken from the peninsula outcrop for analysis at Lakefield Research in Lakefield, Ontario. Reference samples were collected from several locations on the property. Exploration Expenditures May 2002 Travel 1200 kilometers @ S0.30 May 2002 ^5360 Accommodation and meals 2 days @ 150 per day =$30() Labour 4 man days at S500 per day =$2000 S2660 August 2003 Travel 1200 kilometers @ S0.30 Aug 2003 Accommodation and meals 2 days @ 150 per day Labour 4 man days at S500 per day S2660 October 2003 Travel 1200 kilometers @ S0.30 Aug 2003 Accommodation and meals 2 days @ 150 per day Labour 4 man days at S500 per day S2660 Sample analysis S3,900.00 311,880.00 Prospecting Report, Magpie Property, Wawa, Ontario For Oasis Diamond Exploration Inc. August 19, 2003 Property The property is located in Leclaire Township approximately 25 kilometers north of the town of Wawa in Northern Ontario. The property is approximately one square kilometer made up one 80 hectar mining claim number 1235586 staked on November 18, 2001. The claim is 100 meters east-west by 800 meters north-south. This claim block was withdrawn from the Wagner Forest Service concession that includes the majority of Leclaire township. The Magpie river bisects the property north to south. Outcrop exposure is very good along the river shoreline. Access The property is best accessible by boat or canoe on the Magpie river. Access points to the Magpie River are available at Steephill dam or by road from the Dubreiville road. The old Magpie mine road approaches the claim block from the east. Active logging in the area has improved road access to the eastern boundary of Leclaire township however beyond this point access is limited to ATV via overgrown and washed-out roadbed. Geology The rocks are archean volcanic rocks of the Wawa greenstone belt and range from mafic flows to volcanic breccia. The formation appears to be oriented east-west although stragraphic tops and flow orientation was not determined during this site visit. Reconnaissance and Sampling I arrived on site late in the evening of August 9, 2003.1 visited the property on Aug. 10, Aug. II and on the morning of Sunday August 12, 2003. My field assistant, Mr. Robert Whiteman and I launched a 16 foot aluminium boat at the Steephill dam on the Magpie River for the 17 kilometre trip to the outcrop location previously reported to Oasis Diamond exploration. Mr. Nick Pedafronimos and Mr. Lampros Pedafronimos accompanied us to the site. Due to motor difficulties we arrived at the sample site at 11 am. Samples were taken from the original sample site #479 and other samples were taken in the immediate vicinity. We returned to the Steephill dam at 1pm at which time the Pedafronimos returned home. Mr. Whiteman and myself returned to the sample site, (in a heavy thunderstorm downpour) to continue the sampling. Two kilogram samples were taken at approximately 25 meter intervals around the outcrop in the Magpie River. The peninsula in the river is a mafic volcanic breccia with predominantly angular clasts of intermediate to felsic xenoliths. The matrix is carbonate rich with thin alteration surface. The rock is moderately to well foliated oriented east west. Flow directions or bedding surfaces could not be determined. The outcrop is well exposed over a 100 meter by 50 meter site. The outcrop disappears under the water of the Magpie River on the North, East and South edges of the occurrence. To the west the breccia is covered by fluvial cobble beach. Samples were consolidated into 3 separate packages, one sample compilation from samples 479 to 485 (no sample 482) 11 kilograms, 486 to 492 (no sample 489)11 kilograms and sample 500 12 kilograms. Sample Locations Magpie Property GPS Posistions NAD 27 Zone 16 Sample* Northing Easting Elevation Description 478 668782 5332092 320 Mafic breccia Composite #1 479 672132 5340957 321 480 672132 5340952 316 481 672148 5340946 320 482 672149 5340936 317 No sample 483 672130 5340957 327 Mafic breccia 484 672148 5340924 344 485 672162 5340989 295 486 672158 5340997 310 Composite #2 487 672173 5340991 308 488 672181 5340990 315 489 672190 5340969 314 No sample 490 672190 5340969 314 Mafic breccia 491 672193 5340960 315 492 672181 5340956 314 500 672132 5340957 321 Composite #3 Sample locations are shown on the sketch map attached as Appendix B. Samples were sealed on site and personally transported by me to Lakefield Research Laboratory in Lakefield, Ontario for caustic fusion analysis for diamond recovery. Two sets of archive hand samples from each of the above sample locations were packaged for future reference. One set of samples was sent by courier to Dia Bras Exploration Inc. the second set remains in my care. Sample results from caustic dissolution analysis at SGS Laboratories in Lakefield, Ontario did not recover any microdiamonds from samples collected during this program. Results and analysis certificate are attached in Appendix A. Recommendations and Conclusions Although the analysis of these rock samples did not recover diamonds, the property has diamond exploration potential. Due to extreme variability in diamond distribution within diamond host rocks, results from small samples, ie. less than several hundred kilograms, are not conclusive regarding the diamond potential, l therefore recommend additional sampling of the known outcrops of mafic hetrolithic breccia and continued geological mapping and subsequent sampling of the claim block on the east side of the Magpie River. Preliminary indication from reconnaissance prospecting indicate that the formation may continue east on the property. Examination of the Ontario Airborne Geophysical Surveys, Magnetic and Electromagnetic Data, Wawa Area, number 1009, available from the Ontario Geological Survey is also recommended as a means of identifying favourable geological units to guide exploration of the claim block. Expenses Travel (km) 1700km SO.SO/km S 510 Meals XI Aug. 9&12 530/day S 60 Meals X2 Aug. 10&11 S607day S 120 Supplies Sample bags etc. 55/ea S 60 ATV rental Aug. 1 1 SSO/day S 50 Prof. Fees Aug9-12 S3507day S 1,400 Assistant wage Aug. 10&11 S1207day S 240 Total expenses for sample collection Dia Bras Magpie S2,440 lls-\ JohnE^uckle, P.Gefb.