PROVINCIAL RECORDING OFFICE - SUDBURY R E C F © v E D JAN 2 3 2003 A.M. ASSESSMENT REPORT ON THE BASAL TILL SAMPLING PROGRAM MARTEN RIVER DIAMOND PROJECT- SUPERIOR SOUTH DISTRICT FOR JML Resources Ltd. Sudbury Mining District Gooderham, Flett and Hammell Townships Claims: 1219775,1219786, 1235464,1236394,1243159, 1243838,1246304,1246307,1238535 and 1234969 Work Completed: June 5 - August 5, 2002 RECEIVED L Geodigital JAN 2 3 20C3 K Mapping GEOSCIENCF ASSESSMENT l \ Systems .___office LA Inc. Sudbury, Ontario Peter C. Wood (705) 677-6394 January , 2003 31L13SE2004 2.24862 FLETT 010 TABLE OF CONTENTS Page LIST OF FIGURES ...............................................................................................................m 1. SUMMARY.............................................^ 2. INTRODUCTION...............................................................................................................^ 2.1 GENERAL....................................................................................... 3 3. PROPERTY DESCRIPTION AND LOCATION ............................................................4 3.1 PROPERTY LOCATION....................................................................^ 3.2 PROPERTY DESCRIPTION AND OWNERSHIP.......................................4 4. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY..........................................................................................................? 4.1 ACCESS..........................................................................................? 4.2 CLIMATE........................................................................................? 4.3 LOCAL RESOURCES AND INFRASTRUCTURE.....................................7 4.4 PHYSIOGRAPHY..............................................................................8 4.5 ENVIRONMENTAL ISSUES................................................................9 4.6 MINERAL EXPLORATION PERMITS ...................................................9 5. HISTORY ...........................................................................................................................H 5.1 MINERAL EXPLORATION HISTORY................................................ 11 5.2 GOVERNMENT MAPPING............................................................... 11 5.3 TEMAGAMI LAND CAUTION .......................................................... 13 5.4 DIAMOND EXPLORATION.............................................................. 14 6. GEOLOGICAL SETTING ...............................................................................................20 6.1 GENERAL..................................................................................... 20 6.2 BEDROCK GEOLOGY .....................................................................20 6.3 LAKE TIMISKAMING STRUCTURAL ZONE .......................................23 6.4 QUATERNARY GEOLOGY............................................................... 25 7. DEPOSIT TYPES..............................................................................................................26 8. MINERALIZATION .........................................................................................................28 9. JML RESOURCES EXPLORATION RESULTS..........................................................29 9.1 INTRODUCTION............................................................................ 29 9.2 TILL SAMPLING FOR KIMS BY JML ................................................. 29 9.3 AIRBONE SURVEYS BY JML............................................................ 35 10. SAMPLING METHOD................................................................................................36 10.1 JML SAMPLES...................................................................... 36 11. SAMPLE PREPARATION, ANALYSIS AND SECURITY.......................................38 11.1 JML SAMPLES....................................................................... 38 12. INTERPRETATION AND CONCLUSIONS ...............................................................41 12.1 INTERPRETATION PARAMETERS............................................41 12.2 EXPLORATION MODEL.......................................................... 42 12.3 INTERPRETATION................................................................. 43 12.4 CONCLUSIONS...................................................................... 44 13. RECOMMENDATIONS..................................................................................................45 CERTIFICATE .......................................................................................................................46 REFERENCES.......................................................................................................................^? APPENDIX 1: TILL DATABASE AND FIELD SAMPLE SHEETS APPENDIX 2: ODM ANALYSIS OF TILL SAMPLES MAP POCKET: Claim Location Map (1:100,000) Bubble Plot of Total KIMs in Till Sample (1:20,000) LIST OF FIGURES Figure l. Location map ............................................................................. 5 Figure 2. Property map ............................................................................. 6 Figure 3. Regional Geology ......................................................................21 Figure 4. Garnet chemistry of known Kimberlites of the LTSZ........................... 31 Figure 5. Garnet chemistry of Marten River Project compared to Victor Pipe ......... 32 Figure 6. Chromite chemistry of Marten River Project compared to Victor Pipe...... 34 Figure 7. Bulk Till KIM and gold grain processing flowsheet............................. 39 - m - 1. SUMMARY The Marten River Diamond Project initially consisted of 2,446 mining claim units covering approximately 39,100 hectares in 26 townships in northeastern Ontario. This summary report was prepared to meet governmental assessment requirements within the province of Ontario. The Marten River Diamond Project is located in the vicinity of the village of Marten River in northeastern Ontario, 55 km north of the city of North Bay. Access to the project area is by travelling north on Highway 11 from the city of North Bay. The property straddles the Lake Timiskaming Structural Zone ("LTSZ"), which is known to be associated with numerous occurrences of diamondiferous kimberlite and related rocks. These include the Victor pipe in the James Bay Lowlands, which is currently being evaluated by De Beers Canada Exploration Inc. ("De Beers"). The Marten River area was the subject of known diamond exploration by Falconbridge Limited (FL) in the 1980©s and most recently by the Ontario Geological Survey (OGS) in 2000. The Marten River Project is located near the intersection of three main geologic provinces of the Canadian Shield - Superior, Southern and Grenville. The property lies within the LTSZ, a major crustal structure that is known to host numerous diamondiferous kimberlite bodies. Northwest to north-northwest trending lineaments (325 0) characterise the LTSZ and are present in the project area. - l - No kimberlite occurrences have been identified on the property to date. The presence of possibly diamondiferous kimberlites is postulated from the presence of KIMs, including G-10 garnets, in surficial materials. JML has completed several programs of airborne geophysical surveys and till sampling for KIMS to confirm and expand the previous database of the area. Additional parameters to aid in the interpretation and potential discovery of kimberlite at JML©s Martent River Property include: * Topographic linearity as a guide to structure; * Topographic lows as a guide to soft rocks such as kimberlite; * Geology as a guide to structure using as prime the northwest (325 0) faults which are believed to be related to LTSZ fracturing, and intersections of these faults with other structures as loci for kimberlite intrusion; and, * Heavy minerals as a guide to differentiating individual mineral trains (and sources) primarily by incidence of ilmenite versus other KIMs and the study of garnet populations and indicator mineral chemistry. JML©s exploration programs have confirmed that the property has excellent potential to host diamondiferous kimberlites. Additional exploration work is strongly warranted and recommended to advance targets to the drill discovery stage. -2- 2. INTRODUCTION 2.1_______GENERAL The Marten River Diamond Project initially consisted of 2,446 mining claim units covering approximately 39,100 hectares in 26 townships in northeastern Ontario. The claims cover a number of kimberlite exploration targets defined by surficial sampling for Kimberlite Indicator Minerals ("KIMs") and/or geophysical and/or geological data. The properties straddle the Lake Timiskaming Structural Zone ("LTSZ") which is known to be associated with numerous occurrences of kimberlite and related rocks. These include the Victor pipe in the James Bay Lowlands, which is currently being evaluated by De Beers Canada Exploration Inc. ( " De Beers"). A large majority of the content of this report was extracted from an in-house report completed by Watts, Griffis and McOuatt Limited on behalf of the Company in 2001 and an assessment report by Lapierre (2002). -3 - 3. PROPERTY DESCRIPTION AND LOCATION 3.1_______PROPERTY LOCATION The Marten River Diamond Project is located in the vicinity of the village of Marten River in northeastern Ontario, 55 km north of the city of North Bay (Figure 1). The properties cover parts of the following townships: Riddell, Eldridge, Hebert,