REPORT ON THE TEEFY TOWNSHIP

PROPERTY

LARDER LAKE MINING DIVISION

STRIPPING AND SAMPLING PROGRAM

For

Leo Alarie and Sons Limited

Submitted by: Don T. Fudge Fudge Se Associates October 2001

42A15SE2001 2.22392 TEEFY 010

N.T.S. 42A15

17U 0524149 UTM 5402780 NAD 83

RECEIVED"NOV - 8 2001

GEOSCIENCE ASSESSMENTACCITC

Leo Alarie and Sons Limited- Teefy Township Claim Group

TABLE OF CONTENTS

Page No.

l .0 Introduction 3

2.0 Location and Access 3

3.0 Claim Status 4

4.0 Personnel 4

5.0 Previous Work 4

6.0 General Geology 5

7.0 Work Program 5

8.0 Conclusions and Recommendations 6

9.0 Cost Summary 7

List of Figures

Location Map Figure l

Stripping and Sampling Area Map Figure 2

Appendix

Appendix "A" - Laboratory Test Results

October 2001 Fudge & Associates Page 2 of 8

Leo Alarie and Sons Limited- Teefy Township Claim Group

1.0 Introduction

This report deals with the logistics and results of a stripping, mapping, sampling and

laboratory analysis work program carried out on the "Teefy Township Property" of Leo

Alarie and Sons Limited in the Larder Lake Mining Division during June and July 2001.

The Teefy Property is comprised 4 unpatented mining claim units recorded in the name

of Leo Alarie and Sons Limited, Timmins, Ontario Limited. Overburden stripping,

mapping and sampling was carried out under the direction of Fudge *fe Associates of

North Bay, Ontario.

The purpose of the program was to determine if the outcropping & sub-cropping rock

was significantly uniform in composition, and sufficiently chemically and physically

stable to meet specification for coarse fraction concrete stone.

2.0 Location and Access

The Teefy Township Property is located immediately north of the Town of Iroquois Falls

in the North 1/2 of Lot 12, Concession V, Teefy Township. Access to the property is via

the Abitibi Industrial Road to the north side of the bridge spanning the Abitibi River. The

industrial road traverses the property in a north -south direction over the west part of the

claim block. See Figure l. The Twin Falls Access Road running east from the Industrial

Road traverses the southern part of the claim block.

October 2001 Fudge A Associates Page 3 of 8

TEEFY TOWNSHIP

LEGEND:WORK AREA

O 400M 800M

FUDGESi Associates

160 Bryon Rood North Boy. Ontario Canada P1C 1L2

client: LEO ALARIE AND SONS LIMITEDProperty: TEEFY TOWNSHIPTitle:

LOCATION MAP

Scale: 1:15,000Drawn by: Donna Cornick

Date:October 2001

Checked by: Q j. Fudge

Figure: 1

Leo Alarie and Sons Limited- Teefy Township Claim Group

3.0 Claim Status

The Teefy Township claim group is comprised 2-MRO.contiguous mining claims

comprised of 2 units each held 10007o by Leo Alarie and Sons Limited, P.O. Box 912,

Timmins, Ontario. The Claim units are as follows:

Claim

Number

L1236733

Number of Units

2

Registered Owner 1 Interest Held

Leo Alarie and Sons Ltd. II 10007o II

L 1236734 II 2 II Leo Alarie and Sons Ltd. II 10007o

Abitibi Consolidated Inc holds the surface rights in fee simple patent, which is subject to

an Agreement of Purchase and Sale with Leo Alarie and Sons Limited.

4.0 Personnel

The following personnel were directly involved with the stripping, and mapping program:

Don T. Fudge Fudge fc Associates North Bay, Ontario

Mark Alarie Leo Alarie and Sons Limited Timmins, Ontario

Jan Luthe Leo Alarie and Sons Limited Timmins, Ontario

5.0 Previous Work

There is no evidence of earlier work in the Assessment Files of the Ministry of Northern

Development and Mines in the N 1/2 of Lot 12, Concession V. The only recorded work

on the property is a report of mapping published as Map P -155, 1961.

There is field evidence of earlier rock removal(s) from the north side of the Twin Falls

Road; No record of this work was found in literature or assessment files.

October 2001 Fudge A Associates Page 4 of 8

Leo Alarie and Sons Limited- Teefy Township Claim Group

6.0 General Geology

R. M. Ginn in his report describes the area thus: " Teefy Township has little topographic

relief except for a rock hill north of Iroquois Falls... Precambrian Rock is exposed in two

areas, the principal area being immediately north and east of Iroquois Falls. A series of

basic and intermediate lava flows is intruded by sills and dykes of old gabbro

(Haileyburian), fledspar prophyry, seynite (Algoman) and younger diabase

(Matachewan). The lavas all strike from N.55 degrees east to east-west, face south but

dip from 25 degrees north to 70 degrees south. The second outcrop is at Twin Falls in the

eastern part of the Township".

The near surface coarse to fine grained massive gabbro and diabase dykes north of the

Abitibi River are the focus of this investigation.

7.0 Work Program

The stripping, mapping and lab work program-followed reconnaissance prospecting

undertaken in August/September 1999. The reconnaissance prospecting confirmed

Guinn's 1961 mapping and validated the author's hypothesis that the massive high-density

gabbro and diabase had potential for a large tonnage chemically stable aggregate source.

A small sampling area was stripped utilizing a JD 690 Backhoe and further cleaned using

hand tools and mapped. See Figure 2. A composite 20 tonnes sample of existing broken

gabbro/diabase rock from an old excavation adjacent to the stripped area was loaded into

a truck and hauled to Custom Concrete's crushing plant in Timmins where it was reduced

to 3/4 " (19 mm). The crushed product was then trucked to the offices of Leo Alarie and

Sons Limited in Timmins wherein a representative sample was taken and sent to John

Emery Geotechnical Engineering Limited in Toronto for analysis. Reference samples

were retained at the office of Leo Alarie and Sons Limited in Timmins.

The sample was tested and reported for:

October 2001 Fudge *fe Associates Page 5 of 8

LEGEND:

^ DIRECTION IN WHICH FLOWS FACE/DIP

Vam MASSIVE BASALT FLOW

D MATACHEWAN DIABASE

———— DEFINED GEOLOGICAL CONTACT

— — APPROXIMATE GEOLOGICAL CONTACT

D

OLD EXCAVATION

20 TONNE SAMPLEBROKEN ROCK -Medium to coarse grain Gabbro/fine grain diabas

TWIN FALLS ROAD

Ol

2i

4 l

8

METERS

FUDGE8i Associates

160 Bryon Rood North Boy, Ontario Conodo P1C 1L2

client: LEO ALARIE AND SONS LIMITEDProperty: TEEFY TOWNSHIPTitle: MAPPING LOCATION

SELECTED SAMPLEScale: 1:200

Drown by: DonnQ Cornick

Date: October 2001

Checked by: Q j. Fudge

Figure: 2

Leo Alarie and Sons Limited - Teefy Township Claim Group

* Bulk Relative Density and Absorption M.T.O. LS-604

* Magnesium Sulphate Soundness M.T.O. LS-606

* Flat and Elongated M.T.O. LS-608

* Petrographic Examination M.T.O. LS-609

* Micro-Deval Abrasion M.T.O. LS-618

* Accelerated Mortar Bar Expansion CSA. A23.2-25A

* Concrete Prism Expansion In Progress

Test Results are listed in Appendix "A"

8.0 Conclusions and Recommendations

Visual examination and laboratory tests confirm the Teefy Gabbros and Diabase, where

sampled met specification for coarse fraction concrete aggregate. The Accelerated Mortar

Bar Expansion test results of Q.037% fall well under the maximum allowable limit of

Q.14%. Bulk Density, Magnesium Sulphate, Flat and Elongated and Micro-Deval tests all

meet specification limits See Appendix "A". Concrete Prism Expansion Tests require a

12 month monitoring program and are currently in progress, however early observations

suggest expansion will be within specification limits.

This is a large tonnage deposit with desirable physical and chemical properties making it

suitable for production of a wide range of high specification stone products.

October 2001 Fudge A Associates Page 6 of 8

Leo Alarie and Sons Limited - Teefy Township Claim Group

9.0 Program Cost Summary

Leo Alarie and Sons Limited Backhoe JC-690 Float Charges (Mob *fc Demob) Tri-axle Truck

Custom ConcreteCrushing sample Sample Prep & Shipping J Luthe -Timmins

John Emery Geotechnical - Lab

Fudge Se AssociatesField Work June/July 3 days @ 3500/day +GST Report Preparation and Filing

8 hours @S65.00/ hour 2 hours (ffi, 380.007 hour 4 hours @ 355.007 hour

20 Tonne (ffi 39.007 tonne

3520.00 3160.00 S220.00

S180.00

SI 00.00

31,671.88

31,605.003700.00

Total Expenditures 35,156.88

October 2001 Fudge *fe Associates Page l of 8

Leo Alarie and Sons Limited- Teefy Township Claim Group

CERTIFICATION

I, Donald Thomas Fudge of the City of North Bay, Ontario hereby certify that:

1. I hold a three year Business Administration Diploma from Cambrian College of

Applied Arts in North Bay, Ontario obtained in 1969 and a Bachelor of Arts

obtained from Carleton University in Ottawa in 1974.

2. That I am a Prospector and have been practicing my Profession since 1975 in

Ontario, Quebec, Newfoundland, Manitoba, Alberta, British Columbia, The

United States of America, Jamaica and China.

3. That I have been employed directly with Teck Corporation, Metallgessellshaft

Canada Limited, the Ontario Ministry of Natural Resources and I have been self

employed with Fudge & Associates since 1984.

4. That I have based my conclusions and recommendations contained in this report

on knowledge of the area, my previous experience and on the results of fieldwork

conducted on the property in 2001.

5. I hold no interest, directly or indirectly in this property, nor do I expect to receive

any interest or consideration from this property other than for professional fees

rendered.

Dated at North Bay this 30th day of

October, 2001

October 2001 Fudge *fe Associates Page 8 of 8

APPENDIX "AM A M

Sent By: JEGEL; 416 213 1070; Aug-2-01 9:34AM; Page i/a

JOHN EMERY GEOTECHNICAL ENGINEERING LIMITEDCONSULTING ENGINEERS

#1, 109 Woodbine Downs Boulevard, Toronto, Ontario M9W 6Y1 Telephone: [418] 213-1060 Facsimile- [41 R] P13-1O7D C-Mail: jagcl@comnet.CB www.jegel com

August 2, 2001 JEGEL: 101129 JEGEL ID #: 004662

Leo Alarie and Sons Limited P.O. Box 912, Highway 101 West Timmins, Ontario P4N 7HT

Attention: Mi. Jan Lurhe

Dear Sirs:Concrete Aggregate Testing

As requested, John Emery Geotechnical Engineering Limited, Consulting Engineers (JJBGJBL),

has completed testing on V" Concrete Stone from (he Iroquois Falls (M9813).

The testing consisted of:

Bulk Relative Density and Absorption MTO LS-6'04Magnesium Sulphate Soundness Flat and Elongated Petrographic Examination Micro-Deval Abrasion Accelerated Mortar Bar Expansion Concrete Prism Expansion

MTO LS-606 MTO LS-608 MTO LS-609 MTO LS-618 CSAA23.2-25A In Progress

We Trust that the results of this testing are satisfactory for your purposes. If you have

any questions please do not hesitate lo contact this office.

Yours very truly, JOHN EMERY GEOTECHNICAL ENGINEERING LIMITED

David Soanes, CJBT Technology Supervisor

ISO 9001Engineering / Research / Development / Education

Soil / Rock / Aggregates f Slags S Asphalt f Cement / Concrete i ByproductsJEGEt* PAVMATEC

flUG-02-2001 88=51 416 213 1070 P.01

sem by: 4ie i u: 34 AM; page 2/3

JEGEL101128

TABLE l AGGREGATE PHYSICAL PROPERTIES 1P,ST RESULTS

TEST

Hot Mix, Surface, Treatment and Concrete Petrographic NumberCorrected Granular and 16.0 mm Type B Petrographic Number

Bulk Relative Density

Absorption, *J4

Magnesium Sulphate Soundness, Vo Loss

Micrn-Deval Abrasion, U7o Loss

Sample

Control

Sample

Control

Sample

Control

Sample

Control

Flat and Elongated Particles, "/o

Accelerated Mortar Bar Expansion, "/D Expansion @ 14 Days

Sample

Control

TEST RESULT

Concrete Stone, Iroquois Falls Quarry

106

103

3.019

2.676

0.17

0.68

1.5

8.9

3.2

16.0

7.10.037

0.41

SPECIFICATION REQUIREMENT

OPSS/MTO Maximum Limits125- Pavement 140 -Structures

-

M

2.655 - LCL 2.685 - UCL

20.60 - LCL 0.83 - UCL

128.0 - LCL

15.0 -UCL1 3 - Pavement 17 - Structures

15.8 -LCL 18.6- UCL

200.14 ,Qfy

0.30 - LCL 0.54 - UCL

-2-

ISO 9001 MMVW .jagel. com

PUG-02-2001 08:52D u e s i j e i w can: IMW Q tr : i

O ODi. n — n i. — n i.

JOHN EMERY GEOTECHNICAL ENGINEERING LIMITEDCONSULTING ENGINEERS

#1, IDS Woodbine Downs Boulevard, Toronto, Ontario M9W 6Y1 Telephone: [416] 213-1060 Facsimile: [416) 213-1070 E-mail: jegel@jegel.com www.jegel.com

1198)3

Leo Alarie *fe Sons LimitedP.O. Box 912, Highway 101 WestTimmins, Ontario P4N 7H1

Attention: JanLuthe _________Head of Operations

SEP l 6 2001Redd: Uo Alarie * sot i

August 31, 2001 JEGEL Project: 101129 Invoice: 1/403

Tel: 705-268-2106 Fax: 705-268-2541

INVOICE FOR PROFESSIONAL SERVICES

Laboratory Testing of 3A" Stone from the Iroquois Falls (Quarried Rock).

Engineering ServicesPrinicpal Geotechnical Engineer (Mike MacKay)

Laboratory Services [JEGEL #4662] Concrete Aggregate Approvals, Coarse

.5 hours @ S 135.00 S 67.50

l @ 31,495.00 1.495.00

Subtotal S 1,562.50GST 109.38

TOTAL THIS INVOICE

(This total includes S 1 09.3 8 GST. Our GST Number is 1026871 1 8RT.)

per month (19.6"?^ per annum) surchargeNotes: l . Net 15 days from receipt of this Invoice,on overdue accounts.

2. We appreciate the opportunity to be of service and trust this Invoice is in order.

RETURNr FROM: Giao Baka

ISO 9001Engineering / Research / Development / Education

Soil / Rock / Aggregates / Slags / Asphalt 7 Cement 7 Concrete / ByproductsJEGEL' PAVMATEC

' cc-oovcn t i r\ — i~\ i — f

(D 3 rf

CD

FIGURE 1 Lm

Accelerated Mortar Bar Expansion TestCSA Test Method A23.2-25A

0.30

IV)K*

LJ

I-*(O O

82

o01J

5<(D ^

0)

.0 0.204- "wc re

UJ

g 0.10 oQ)

Q- 0.05-l-

6 8

Time (Days)12 14

o l\b

C

C

lE

(C.

r c

Bar A 'A Bar B o Bar C Average Expansion

LEO ALARIE - Iroquois Falls, Concrete Stone

ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Transaction No:

Recording Date:

Approval Date:

Cllent(s):159410

Survey Type(s):

W0180.31060

2001-NOV-08

2002-JAN-10

Work Report Summary

Status: APPROVED

Work Done from: 2001 -J U L-24

to: 2001-JUL-27

LEO ALARIE AND SONS LIMITED

ASSAY BULK

Work Report Details:Perform Applied

Claim* Perform Approve Applied Approve

L 1236734 S5.806 S5.806 S4.800 S4,800

Assign ReserveAssign Approve Reserve Approve Due Date

SO O 51,006 S1.006 2007-NOV-17

35,806 35,806 S4.800 54,800 SO S1.006 S1.006

Status of claim is based on information currently on record.

42A15SE2001 2.22392 TEEFY 900

2002-Jan-18 14:55 Armstrong-d Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date:2002-JAN-14

Ministere duDeveloppement du Nord et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E 6B5

LEO ALARIE AND SONS LIMITED BOX 912TIMMINS, ONTARIO P4N 7H1 CANADA

Tel: (888) 415-9845 Fax:(877)670-1555

Dear Sir or Madam

Submission Number: 2.22392 Transaction Number(s): W0180.31060

Subject: Approval of Assessment Work

We have approved your Assessment Work Submission with the above noted Transaction Number(s). The attached Work Report Summary indicates the results of the approval.

At the discretion of the Ministry, the assessment work performed on the mining lands noted in this work report may be subject to inspection and/or investigation at any time.

Please note that removing a bulk sample in excess of 10 tonnes requires Ministerial permission, as outlined in Section 52 of the Mining Act. Accordingly, assessment credit can only be granted for bulk sampling up to 10 tonnes. In this particular case, the removal and analysis of 20 tonnes is almost identical to the cost to process 10 tonnes. Therefore, this submission has been approved as submitted.

If you have any question regarding this correspondence, please contact STEVEN BENETEAU by email at sieve.beneteau@ndm.gov.on.ea or by phone at (705) 670-5855.

Yours Sincerely,

Ron GashinskiSenior Manager, Mining Lands Section

Cc: Resident Geologist

Don Thomas Fudge (Agent)Leo Alarie And Sons Limited (Assessment Office)

Assessment File Library

Leo Alarie And Sons Limited (Claim Holder)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:16756

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