REPORT ON THE BURDA CLAIM

L 1191963

TYRRELL TOWNSHIP,

SHINING TREE AREA, ONTARIO

David Burda, Prospector # K-19746 Ottawa, Ontario RECEIVED October 27, 2006

NOV 0 7 2006

GBO CI NeE ASSBS.MINT

TABLE OF CONTENTS

Page TABLE OF CONTENTS LIST OF FIGURES 11

LIST OF TABLES 11

LIST OF MAPS 11

LIST OF APPENDICES v SUMMARY VI

1.0 PROPERTY DESCRIPTION AND LOCATION 4 2.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE

AND PHYSIOGRAPHY 5 3.0 HISTORY 5 4.0 GEOLOGICAL SETTING 6 5.0 DEPOSIT TYPES 8 6.0 MINERALIZATION 12 7.0 2006 EXPLORATION PROGRAM 13 8.0 CONCLUSION 39 9.0 RECOMMENDATIONS 39 10.0 REFERENCES 40 11.0 STATEMENTS OF QUALIFICATION 43

LIST OF FIGURES

1 Location of the Burda property in eastern Ontario

Table 1 Table 2:

Map 1

Appendix I

LIST OF TABLES

Shining Tree Area Gold Occurrences Work Plan and Budget Estimate

LIST OF MAPS

Claim 1191963, Outline offield work.

LIST OF APPENDICES

Field Investigation report, by Frank Racicot P.Geol., dated Oct 22, 2006. Field Sketch, Frank Racicot, dated Octl06

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Page 2

SUMMARY

The Burda property consists of one claim unit in southeastern Tyrrell Township, northeastern Ontario. The property is 15 km west-southwest of the town of Gowganda and 100 km south­southeast of Timmins. It occurs in the Shining Tree area, in the southern part of the Abitibi greenstone belt.

The Burda property occurs along the Tyrrell Structural Zone, interpreted to be part of the Cadillac-Larder Lake fault system. This fault system hosts important gold deposits at . Kirkland Lake, Kerr Addison and in the Matachewan area. Abundant feldspar porphyritic dikes, silica, ankerite and albite alteration, quartz-ankerite veins and pyrite occur proximal to the Tyrrell Structural Zone.

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1.0 PROPERTY DESCRIPTION AND LOCATION

The Burda property, the focus of this report, is part of a larger land package owned by Burda in Tyrrell Township. The Burda property is designated on government claim maps as claim number L 1191963. The property covers an area of approximately 45 acres. The mineral rights held by Burda give them the prerogative to mine ore discovered on their properties, subject to a 400' surface rights reservation around all lakes and rivers, and a 300' surface reservation around major roads (this may be waived by the Crown).

The Burda property is located at longitude 80°57'50" W, latitude 47°35'52" N (NAD 27 or 83 UTM co-ordinates 502700 E, 5271400 N, Zone 17) in northeastern Ontario, 15 km west­southwest of the small town of Gowganda, and 100 km south-southeast of Timmins (Fig. 1). The property occurs in the southern part of Tyrrell Township, in the 1 :50,000 scale NTS map 41 PIlO.

2.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

There is excellent access to the property via the Spear Lake Road, a well maintained gravel road that trends south from (paved) Highway 560, transects the Burda lease and passes within 200 m of the main showing on the Burda zone (Fig. 2). A network of logging roads provides additional access to the property; these vary from being passable by truck or ATV to only being accessible by foot.

The climate of the project area is continental in nature, with cold winters (-10 to -35°C) and warm summers (+10 to +35°C). Seasonal variations affect exploration to some extent (geological mapping can not be done in the winter, geophysics and drilling are best done at certain times of the year etc.), but the climate would not significantly hamper mining operations.

The settlements of Sudbury, Timmins and Kirkland Lake are relatively close to the property (Fig. 1); these all have the necessary equipment and trained personnel to support exploration and mining activities. The property has very good access to all infrastructure required for mining. A major hydro line passes along the side of Highway 560, four km north of the property. Water is abundant in the region, and the property contains an all-weather gravel road, and is four kilometers from a paved road. Suitable locations for constructing mineral processing facilities are abundant on the property.

The property has a gently rolling topography with maximum relief of approximately 15 m. Elevation is typically on the order of370 m Above Sea Level. The property has been logged in the past, so the present forest is second growth, a mixture of jackpine, spruce, birch and poplar trees. Portions of the property have been subjected to clear-cut logging within the past five years. Much of the property is covered by significant (>2 m) overburden, and outcrop density is low.

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250Km

Burda Claim

Figure 1: Location of the Burda Claim in eastern Ontario

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3.0 HISTORY

A compilation plan, titled Tyrrell Project, prepared by W. Corsorphine for Battle Mountain Gold, dated 09/05/97, shows the Shinell gold showing on the property. A reference note on the plan says "Shinell Gold Mines 1946 DD". It also indicates drill hole T97-4 passing through the claim with several weak IP anomalies in the hole. One soil sample is indicated on the claim, with an Au value of>10ppb. A Temiskaming-Keewatin Contact Zone is interpreted as going through the claim, from the number two post to the number four post. Temiskaming Sediments are to the south of the contact zone, while the Keewatin Volcanics lie to the north. To date, no further information, on the Shinell gold showing, has been found by the author.

No work was undertaken on the property between 1984 and 1996 because a moratorium on exploration (the Temagami Land Caution) was in effect.

Claim was staked during the Rush of 1996, however ownership of the claim was not clear and came open for staking in 2000. David Burda staked the claim in October of 2000.

4.0 GEOLOGICAL SETTING

The Burda property occurs within the Shining Tree area, a region of Archean volcanic and sedimentary rocks that occurs south of the main part of the Abitibi greenstone belt. Volcano­sedimentary rocks of the Shining Tree area are intruded in the northwest by the Kenogamissi Batholith, intruded to the southwest by the Ramsey-Algoma granitoid complex, and are unconformably overlain to the east by sediments of the Huronian Supergroup (Jackson and Fyon, 1991; Fig. 4). The geological context of the Shining Tree area has remained unclear until recently; Jackson and Fyon (1991) note that "the relationship of these groups (Shining Tree volcanic and sedimentary rocks) to the other units of the Abitibi greenstone belt is uncertain". Recent geochronological work has enabled the Archean stratigraphy of the Shining Tree area to be correlated with that of the rest of the Abitibi greenstone belt. In the Burda project area, Archean volcanics are thought to be part of the Kidd-Munro assemblage, and the sediments are considered to belong to the Timiskaming assemblage (Ayer and Trowell, 2001). In addition, the Cadillac-Larder Lake Fault is now interpreted to extend westward into the Shining Tree area (Ayer and Trowell, 2001).

The geology of Tyrrell Township was first documented by Graham (1932); more detailed mapping was done by Carter (1977; 1987) and modified by Johns (1999; 2003; Johns and Amelin, 1999). Johns' most recent geological map shows the property to be underlain by Archean mafic and lesser intermediate volcanic rocks, separated from abundant Timiskaming sediments by the west-northwest trending Tyrrell Structural Zone, all overlain/intruded to the east by Proterozoic sediments of the Gowganda Formation and the Nipissing Gabbro (Johns, 2003; Fig. 5). Johns also indicates that feldspar porphyritic dikes and diabase dikes occur on the property. Over most of the length of the Tyrrell Structural Zone (TSZ), a stratigraphy containing ultramafic flows occurs to the north of the TSZ and is juxtaposed against a mafic volcanic stratigraphy to the south. In the south-central part of township, Timiskaming assemblage sediments occur south of the TSZ.

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5.0 DEPOSIT TYPES

The objective of exploration on the Burda property is to discover an economic mesothermal gold deposit. Mesothermal gold deposits are mostly quartz vein-related, gold-only deposits, typically with associated carbonatized wall rocks (Hodgson, 1993). Veins have strike and dip extents of 100 to 1000 m, and may occur alone, or more commonly as parts of complicated networks of veins (Poulsen et aI., 2000). Such deposits are characteristic of low- to medium­grade metamorphic terranes in deformed supracrustal belts of all ages, but are most plentiful in Archean greenstone belts. Mesothermal gold deposits generally occur near major faults and more specifically are sited on splays off the major faults. The large-scale faults associated with gold mineralization are typically part of larger deformation zones as wide as several km and extending up to several hundred km along strike. Felsic intrusions may be spatially associated with mineralization. The main minerals of gold-bearing zones are quartz, carbonates, alkali feldspar (most commonly albite), sericite, pyrite, and a suite of characteristic gold-associated minerals, including tellurides, tourmaline, arsenopyrite, scheelite and molybdenite. The Timmins and Kirkland Lake areas contain a number of world-class mesothermal gold deposits relatively proximal to the Burda property.

Identification of the structural regime is of primary importance in the search for mesothermal gold deposits. Basic geological mapping is useful for such identification, as is examination of semi-regional to regional airborne magnetic data. Airborne EM data can be helpful for mapping structures that contain graphite. Once potentially important structures have been identified, exploration should involve combinations of prospecting and sampling along the structures and geophysical surveying (primarily IP and possibly EM) perpendicular to the structures. Samples should be analyzed for low-level gold, as well as arsenic, which commonly forms a halo around deposits. IP is a particularly useful geophysical technique because the disseminated pyrite which may occur in the veins produces chargeability anomalies and quartz veins which host the gold can be recognized as high apparent resistivity anomalies in some instances.

The situation at Burda is that all the early stage, sub-regional work has been completed. The presence of a major fault related to the Cadillac-Larder Lake Fault system has been established based on regional geological considerations. Several geophysical campaigns and abundant prospecting have been undertaken over the years. Drilling has indicated the presence of significant quantities of gold. The main task at present is to determine whether or not an economic concentration of gold exists.

Robert (1997) suggests that there may be a distinct class of mesothermal gold deposits associated with monzonitic to syenitic intrusions and formed from large magmatic­hydrothermal (i.e. porphyry) systems; it is possible that the Burda mineralization would fit into this class. Robert noted that a number of the deposits which occur along the Cadillac-Larder Lake or Porcupine-Destor breaks (or splays off the breaks) are proximal to alkalic stocks and/or dikes. Such deposits are almost invariably within or close to sediments of the Timiskaming assemblage, and ankerite and albite are key alteration minerals. The deposits all have pyrite in the percent levels and elevated Cu. All these features occur on the Burda property. Robert (1997) notes that the deposits "tend to be of relatively low grade... but of significant tonnages... their ore zones have significant thicknesses and are amenable to bulk mining."

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6.0 MINERALIZATION

Mineralization on the Burda property occurs predominantly along the Tyrrell Structural Zone, which strikes at 105 to 1150 and has near vertical to vertical dips.

The geology and alteration of the TSZ is similar to that of the Kirkland Lake and Timmins gold camps although the style of gold mineralization is different. The mineralization in these camps is generally associated with high-grade, narrow veins, whereas mineralization within the JMZ is associated with wide zones of ankerite-albite-silica-sericite alteration and variable amounts of fine-grained, disseminated pyrite.

Based on the know mineralization in the Shining Tree area (Table 1) the Burda property is well located to justify a gold exploration program. The potential for base metal mineralization is slightly less favourable but should not be overlooked.

T hi 1 Sh·· TAG Id 0 a e : 10102 ree rea 0 ccurrences Name Past Production (Oz of Au) Current Resource Juby Main Zone 0 8.61 Mt @ 1.73 glt* Tyranite Mine 31,352 1.4 Mt @ 6.17 glt** Matona 0 27,000t @ 12.2 glt** Duncan Gold 0 200,000t @5.02 glt** Duggan Zone 0 70,000 (a), 6.87 g/t**

*These figures are drill indicated and are NI 43-101 compliant. ** These figures are from public reports and are not NI 43-101 compliant.

7.0 2006 EXPLORATION PROGRAM

Field Investigation report written by Frank Racicot P.Geol, dated Oct 22,2006, is attached. Field Sketch, Frank Racicot, is attached. An attempt was made to locate the Shinell gold showing. The approximate co-ordinates were uploaded into a GPS unit and once we were in the vicinity, we spread out our search to find an outcrop. Heavy vegetation prevented us from finding any rocks. Hand digging was abandoned due to time restraints. Evidence of old roads and logging was noticed. Possible old camp area or cleared drilling location was found near the uploaded co-ordinates. Outcrops were located at the north-east and south east portions of the claim.

8.0 CONCLUSION

Strong evidence suggests that the Tyrrell Fault does cross through the claim as projected; however a major stripping program would be required to better map and document the shear zone. Both Goldeye and Temex have displayed success in finding good gold intersections at both ends of the fault structure. Based on the review of the data provided and the local geologic environment this property has enough potential to warrant the work program and budget outlined in Table 2.

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9.0 RECOMMENDATIONS

Table 2: Work Plan and Budget Estimate

Task Unit Cost Cost Data compilation into a digital GIS ---------------- $2,000.00 database Property scale generation of gold and ----------------- $1,000.00 base metal targets 5 kilometers of grid cutting $400/km $2,000.00 5 kilometers of magnetic survey $ 150/km $ 750.00 Mapping and prospecting grid and 2 days @ 600/day $1,200.00 rest of property Refurbishing old trenches and 10 days @ $1 OOO/day $10,000.00 addition of new trenches Rock assay costs 20 samples@ $ 600.00

$30/sample 100 metres of diamond drilling $ 150/metre* $15,000.00

Sub-Total $32,500.00 Logistics (10% of Sub-Total) $ 3,250.00

Final Cost** $35,750.00

*This cost estimate includes drill contractor, geologist, core sampler and assays. **This cost does not include PST or GST.

10.0 REFERENCES

Ayer, 1.A. and Trowell, N.F. 2001. Project unit 95-24: the Abitibi greenstone belt: a program update. Ontario Geological Survey Open File Report 6070 (Summary ofField Work and Other Activities 2001); pp. 4-1 to 4-9.

Carter, M. W. 1977. Geology of Macmurchy and Tyrrell townships, Districts of Sudbury and Timiskaming. Ontario Geological Survey, Report 152,69 p. Accompanied by Map 2365, scale 1:31,680.

Carter, M.W. 1987. Geology of the Shining Tree area, Districts of Sudbury and Timiskaming. Ontario Geological Survey, Report 240, 41 p. Accompanied by Map 2510, scale 1 :50,000.

Graham, A.R. 1932. Tyrrell-Knight area. Annual Report, Ontario Department of Mines, v XLI, Part II, pp. 25-61.

Hodgson, C.J. 1993. Mesothermal lode-gold deposits. Geological Association of Canada, Special Paper 40, pp.635-678.

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Jackson, S.L. and Fyon, J.A. 1991. The western Abitibi subprovince in Ontario. In Geology of Ontario, Ontario Geological Survey Special Volume 4, pp. 405-482.

Johns, G.W. 1999. Precambrian geology, Shining Tree area (east half). Ontario Geological Survey, Preliminary Map P.3389, scale 1 :30,000.

Johns, G.W. 2003. Precambrian geology, Shining Tree area. Ontario Geological Survey, Preliminary Map P.3521, scale 1 :50,000.

Johns, G.W. and Amelin, Y. 1999. Project Unit 96-003. Reappraisal of the geology of the Shining Tree area (east part), Districts of Sudbury and Timiskaming. Ontario Geological Survey Miscellaneous Paper 169 (Summary of Fieldwork and Other Activities), pp. 43-50

Poulsen, K.H., Robert, F. and DuM, B. 2000. Geological classification of Canadian gold deposits. Geological Survey of Canada Bulletin 540, 106 p.

Robert, F. 1997. A preliminary geological model for syenite-associated disseminated gold deposits in the Abitibi belt, Ontario and Quebec. In Current Research 1997-C, Geological Survey of Canada, pp. 201-210.

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11.0 STATEMENTS OF QUALIFICATIONS

I, Dave Burda, Prospector, do hereby certify that:

1. I am a member of the Prospectors & Developers Association of Canada (#11767).

2. I am a member of the Ontario Association of Certified Engineering Technicians and Technologists,OACETT reg. # 57482

3. I have worked, part time, as a prospector for a total of 25 years in the Kirkland Lake, Hemlo, Sudbury and Shining Tree Regions.

4. I authored the assessment report titled "Report on the Burda Claim, Tyrrell Township, Shining Tree Are, Ontario" dated 30/10/06. I have been on the property for a total of two days during 2006.

Dated this 27th Day of October, 2006.

&:a~ David Burda C.E.T., rcsi

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Geological Information taken from Battle Mountain Map, Project 710, dated 1 0/23/97

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Circular Structure Mag Readings every 25 metres

Oct. 24. 2006 6:45AM No. 7480 P. 2

Geological Swnmary ofField Investigations on Claim 1191963 in Tyrrell Township

On Oct 14, 2006 Frank Racicot and Dave Burda investigated a reported gold showing on

Claim 1191963. Several traverses were made across the area of the showing but no

previOUS work was encountered. It became apparent at the time of the on site investiga-

tion that the gold showing was from a 1946 drill hole drilled though a shear zone.

The drilled intersection was then plotted as a surface projection of that intersection.

During the rest of the on site investigation several outcrops of apparent mafic volcanic

were located in. the northeast comer of the claim. One sample (DB No.1)

contained sulphides (1-2% py) in a quartz rich 1 em -vein.

Additional Work and Recommendations

Additionally a small magnetometer SUIVey was done over a small circular survey in the

southwest comer of the township with a Scintrex fluxgate, total field magnetometer .. This

circular structure could have possibly represented a kimberlite pipe. No anomalous values

were detected. A magnetometer "profile-line') was also done along the road across the

projected area of the fault zone that contained the reported gold showing. Slightly erratic

and anomalous values were detected in the area of the zone as well as two brecciated

mafic outcrops on the road. This is certainly an indication of a fault zone. It is

recommended that a few lines of MMI sampling be done across the projected fault zone

and pass near the surface projection of the gold intersection. If these two soil profiles

result in anomalous gold or metal values, this might justify a bigger MMJ soil survey

and additional follow up work.

Frank C. Racicot Oct 22, 2006

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