rpt of work on claim 1174694 jacobson tp

2 222 30

Bulk Sample at the Markes ZoneJacobson Township

Goudreau-Lochalsh areaNE Ontario, Canada

Leased Claim # G500204

RECEIVIOCT 1 o /uOI

GEOSCIENCE ASSESSMENT OFFICE

by qualified persons fulfilling all requirements for assessment credits.

have been met.

the size of the ore down to minus six inches.

then returned to Pele during December, 2000.

writer or Al Shefsky, President of Pele Mountain Resources Inc. at (416) 368-

Resoectfully submitted

Paul-Claude Delisle, B.SC., FGAC Geologist

42C08SW2021 2.22230 JACOBSON 010

2 222 30

^

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Battle Mountain Gold Golden Giant Mine

Pele Mountain Samples

O

ASSAY REPORT

Date: Nov 5/99

Sample ID3490134902349033480434805349063490734908349093491034911349123491334914181803161804181805161808161809161810161813161814161815161801161802161806161807161811161812349153491634Q17349183431934620349213492234923349243492534Q263492734928

GoUgA2.89.98.44.77.46.92.45.915.210.84.82.70.83.72.93.71.22.93.62.43.73.21.712.85.62.56.12.D4.211.12.92.33.95.56.60.61.34.55.57.91.11.42.8

Sample ID ', Gold g/l

3493034831348323493334934349353483834937349383480134802348033480434941349423494334044

0-3 rf

0-3*1 0-7*?.

0-8//I /-o M

s/***)

LEVEL ^Cy/PFAff ro/^T/eoL fVv A

B. S

fpi

^,Q

f 3

TP '

fr-

/OO

/O 3

S t a .

S//33/-^

^//3

1p3

Tp,

/oo

loo

/o l

til

Angle

O' J 2' JO

17 8- 4 1- SO

/SI -3/-/0

17*1-11-40

/2S-- 33-30

/OC-^-30

?vi-2r-lo

~3rt-S')-2o

3o3-n-yo

37-q'l'O*

//O- 7 f - 3 O

Azimuth

90-37- ^C-/.'Nf AZ

tei-n-'X.

80-ot-?(,

e/- 37- ^C

eo-49-A

yk-yj-jL

-?3- X2-/^

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SURVEY RECORD2. 222 30

leKp'^ ^o(OC HEADING

Hor. Dist.

/K-042

ZO-^-;-?

J j/- r/6

2*, 01*

44 - 94 1

143- Mf

1& W

W)14

IV- W&

/7-SM

37- 9^0

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5;gfp2

1Z3

r* f

/00

fa A

lot

/o 3

102.

7s)-!

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xo4

F. S. ElevationIwtrt

l^rrf'if',\ A/A 't i ("A/ 6 Acxtf

j i*b Htfh -,AJ "

'r/ir.LiV^M r-?AM. ST * n

CLPJ^/T^^,

/47C. J3 ^

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1/77?-^' 8

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/^3-r^

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/^4-r/fc*

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//99-3".-/

//?^- r"9

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i t?.:... J -j

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//7J'^J

/oil.-" zyi

f (20-18*)

/H*) 6*7

//9J-^xJ

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779. y oo

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t 7 JL \-i-~l L.

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Check.

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To ^ f n-"?u/

SURVEY CALCULATION SHEET

Level: Heading:

Date:

::;:;i::-:''-:Sil

: iif::mafi'PS B.S. ^031rc::s:?;: ; Stn ^QW.

16-Oct-99 F.S. ^-tptjf

Horiz. Dist :ll4l7iSlllVert

Meas.Dist li;*5S4:I:i:;

Azimuths

Az. B.S. to Stn: 223: c:12l m ! ill s i-/- 180 c 00 m 00 s

Az. Stn to B.S. : j 43 c12 m 16 s

Dist ^m^Qsmm Horiz. Angle: :i;Bft*i(S^38^;mJitO^; s Horiz. Angle: 86 c 38 m 10 sVert. Angle: i;l;;I8;i; ciSSil; m i;:; ?;;;!: s

ElevationsVert Dist 1.554

H.I. : CoordsStn: 101HP. Diff.Diff. 0.984 CoordsF.S. :tp1

Az. Stn to F.S. : 1 129 c 50 m 26 ^North East

-30.598 36.6721122.409 1249.320

EI. Stn P337S53JKEI. F.S. || 1476.515!| Gale. RKL Chk.

2 222 30


Elevations

surfmarc09-NOV-99

Horiz. DistVert Dist

Meas. Dist

Vert DistH.I.

HP.Diff.

EI. Stn EI. F.S.

011143:26*^ggsiis-JlSi:ig|:il8iy;:.QS

-3.219mmmmm::ll;i;:;;;ilS!|;

-3.7391476.096

B.S.Stn

F.S.

Horiz. Angle:Vert Angle:

101tplMm

:::x: **i5*v: w:: :":x:x ;'*Mt' M :: : : : :::-: : : : ' :JI ri ' * SfiZHZ': Ciffi: **: nViSmwU.-. S

sjssiiQi c:;s:f :;::SO; : m;sissS::Qf s

Coords Stn: tp1Diff.

l Coords F. S. :tp2

Gale.

Azimuths

Az. B.S. 1

Az. Stn to

, Horiz. Angle:i

Az. Stn toNorth East

1132.354 1212.317-5.013 -42.973

1127.341 1169.344

Chk.

oStn: 180 */- 180

B.S. : | 0

262

F.S. : J! 263

c 55 m c 00 mc 55 m

c 25 m

c 20 m

6 006

40

46

s s3

s

3

222


Level:; Heading:

Date: 09-Nov-99

Horiz. Dist IJ2ia;656ii: Vert Dist

Meas. Dist ill!

ElevationsVert Dist

H.I. H.P. Diff.

EI. Stn EI. F.S.

1.215

0.565wmmsm

B.S. iip***

Stn F.S.

Horiz. Angle: |:|3p| cippi m ||S0|| s Vert Angle: fjjpjii c-::jO;p m||^f| s

North

Azimuths

Az. B.S. to Stn:

Az. Stn to B.S.:

Horiz. Angle:

Az. Stn to F.S.: East

CoordsStn: 101 Dtff. -;ZO.653 -0.331

CoordsF.S. :tp1 1132.354 1212.317

Gale. RKL Chk.

/- 180 c m 00 s | 43 c 12 m 16 4

137 c 42 m 50 s

| 180 c 55 m 6s

-v o- 9 o t"i ^ Z 6 -3 v '


Level:Heading: ;:;i|s irwrpJSl

Date: 16-Oct-99

Horiz. Dist :l;:::43t16Si?::Vert. Dist jip&MJlli

Meas. Dist ;li;;l#lpi;

ElevationsVert Dist -5.38

H.I.H D -;-:::-:.:-:-:-:-:-:--.-:-:-:-x-:v:v:rt:-:

.P. o::v^::::x-:-:-:-:-x-:-:*i:

Diff. -5.95EI. stn wmmsm

El. F.S. II 1470.5651

B.S. Illisi AzimuthsStn tittplm

F.S. 1^)2?? Az. B.S. t

Az. Stn to

Horiz. Angle: feiiill mli;Sll s Horiz. Angle:Vert Angle: cl:;0il mpjjtllf s

Az. Stn toNorth East

Coords Stn: tp1 ;:;i;|S22;4PSpi:|24^32D;:Diff. 5.365 -42.825

Coords F.S. :tp2 1127.774 1206.495

Gale. RKL Chk.

oStn: ?:89:S;ic47i?m:16!:;:s*/- 180 c 00 m 00 s

B.S. : | 269 c 47 m 16 4

7 c 21 m 10 s

F.S. : || 277 c 8 m 26 4


Level: surfHeading: marc

Date: 16-Oct-99

Horiz. Dist IliiJNVert Dist

Meas. Dist zmm

Elevations Vert. Dist

H.I. mm?H.P.Diff.

EI. Stn 147EI. F.S. imf

B.S. 101Stn tp1

F.S. mtm

5.696mm;:|||Q;; Horiz. Angle: i|l31S^ cl||56;; milllSOS s

Vert Angle: ;?M^O': cMmSi mmg&OH s

-1.03 North15024; Coords Stn: tp1 1122.409Q.828 Diff. -0.1361.226 p Coords F.S. : 11 1122.2736.515 OH! Gale. Chk

Azimuths

Az. B.S. to Stn:

Az. Stn to B.S. :

Horiz. Angle:

Az. Stn to F.S. : East

1249.320 -36.696

1212.624

129 c 50 m 26 s180 c 00 m 00 s

| 309 c 50 m 26 4

319 c 56 m 50 s

i 269 c 47 m 16

XRAL LaboratoriesA Division of SGS Canada Inc. 2 222 30

Leslie Street Don Mills, Ontario Canada M3B 3J4 Telephone (416) 445-5755 Fax (416) 445-4152 CERTIFICATE OF ANALYSIS

Work Order: 056087

To: Pele Mountain Resources Attn: Al Shefsky 20 Richmond St. E. Suite 212 TORONTO ONT., CANADA M5C 2R9

Date 17/08/99

Copy 1 to

Copy 2 to

P.O. No. Project No. No. of Samples Date Submitted Report Comprises

4 ROCKS 27/07/99 Cover Sheet plus Pages 1 to 1

Distribution of unused material:Pujps: Discarded After 90 Days Unless Instructed!!!Rejects: Discarded After 90 Days Unless Instructed!!!

Certified By

Dr. Hugh de Souza, General Manager XRAL Laboratories

ISO 9002 REGISTERED

Report Footer: L.N.R. s Listed not received l.S. = Insufficient Sample n.a. ^ Not applicable - ^ No result INF t* Composition of this sample makes detection impossible by this method M after a result denotes ppb to ppm conversion, 'fa denotes ppm to 'fa conversion

©SGS Member of the SGS Group (Societe Generate de Sutveillanc

42C08SW2021 2.22230 JACOBSON 020

O 992f j . (-..i ,4:. AyXRAL LaboratoriesA Division of SGS Canada Inc.

056087 Date: 17/08/99 FINAL page i of i

AP NNP NP pH SCD S(SO4) SJ CH133A CH133A CH133A CH133A CH133A CH133A CH133A

0.1 0.1 0.1 0.01 0.01 0.1 0.1 ../Units. tCaCO3 tCaCO3 tCaCO3 % % *

2069207020712072 *Dup 2069

2.2:0.l3001742.8

*H-141•+3S.2

*-264.•-69.2

• + 137.

1433328

105141

8.158.245.928.248.15

0.100.1710.15.700.11

O.I0.20.70.1

O.I

O.IO.I

9.45.6

O.I

® SGS Member of the SGS Group (Societe Generate de Surveillance)

XRAL XRAL LaboratoriesA Division of SGS Canada Inc.

2 222 301885 Leslie Street Don Mills, Ontario Canada MSB 3J4 Telephone (416) 445-5755 Fax (416) 445-4152 CERTIFICATE OF ANALYSIS

Work Order: 057690To: Pele Mountain Resources

Attn: Al Shefsky 20 Richmond St. E. Suite 212 TORONTO ONT., CANADA M5C 2R9

Date 03/12/99

Copy 1 to

Copy 2 to

P.O. No. Project No. No. of Samples Date Submitted Report Comprises

2 ROCKS 16/11/99 Cover Sheet plus Pages 1 to 1

Distribution of unused material:Pujps: Discarded After 90 Days Unless Instructed!!!Rejects: Discarded After 90 Days Unless Instructed!!!

Certified By

Dr. Hugh de Souza, General Manager XRAL Laboratories

ISO 9002 REGISTERED

Report Footer: L.N.R. = Listed not received l.S. = Insufficient Sample n.a. = Not applicable - - No result *INF s Composition of this sample makes detection impossible by this method M after a result denotes ppb to ppm conversion, 'fo denotes ppm to "/o conversion

@SGS Member of the SGS Group (Societe Generate de Surveillance)

XRAL Laboratories ^ 2 *O ^ 3 ^ A Division of SGS Canada Inc.

Work Order: 057690 Date: 03/12/99 FINAL Page i of i'emetA. AP NNP NP pH S(T) S(SO4) SJ

'Method. CH133A CH133A CH133A CH133A CH133A CH133A CH133ADet.Lim. 0.1 0.1 0.1 0.01 0.01 0.1 0.1Units. tCaC03 tCaCC-3 tCaCC-3 1b Ik lb

BENCH l 4.7 173 179 8.07 0.17 ^.1 0.1BENCH 2 4.1 165 169 8.09 0.15 *C0.1 0.1*DupBENCHl 5.0 174 178 8.06 0.18 -CO.I 0.2

Member of the SGS Group (Societe Generate de Surveillance)

ITS Intertek Testing ServicesChimitec Bondar Clegg Rapport Lab Geochimie

Geochemical Lab Report

u o

CO CO

CO

;-i.-. D—,., oi... nM.B li.™.™. V.l-d'Or. P.Oucbec. J9P 3X6, (819) 825-0178


Geochemical Lab Report

j REPORT: T99-57527.0 ( COMPLETE ) REFERENCE:

i CLIENT: PELE MOUNTAIN RESOURCES

j PROJECT: NONESUBMITTED BY:

DATE RECEIVED: 25-NOV-99 DATE PRINTED: 6-DEC-99

j DATEi APPROVED ELEMENT

i 991130 1 AuSO Gold - 50 grans1991130 2 Ag Silveri 991130 3 Cu Copperi 991130 4 Pb Leadi 991130 5 Zn Zinci 991130 6 Mo Molybderun

i 991130 7 Ni Nickel i 991130 8 Co Cobaltj 991130 9 Cd Cachiiimi 991130 10 Bi Bismuthi 991130 11 As Arsenici 991130 12 Sb Antimony

! 991130 13 Fe Tot Total Ironj 991130 14 Mn Manganesej 991130 15 Te Telluriani 991130 16 Be Bariumi 991130 17 Cr Chromej 991130 18 V Vanadium

i 991130 19 Sn Tinl 991130 20 W Tungsteni 991130 21 La Lantnanun\ 991130 22 Al Aluminumi 991130 23 Mg Magnesiumi 991130 24 Ca Calciun

j 991130 25 Na Sodiumi 991130 26 K Potassiumi 991130 27 Sr Strontiumi 991130 28 Y Yttriuni 991130 29 Ga Galliuni 991130 30 Li Lithium

i 991130 31 Nb Niobiuni 991130 32 Se Scandium1991130 33 Ta Tantalumi 991130 34 Ti Titaniumi 991130 35 Zr Zirconium

i

NUMBER OFAMAI Y*5F*5nlVMb 1 9C9

333333

3 33333

333333

333333

333333

33333

LOUERDETECTION

5 PPB0.5 PPM

1 PPM2 PPM2 PPM1 PPM

1 PPM 1 PPM

1.0 PPM5 PPM5 PPM5 PPM

0.01 PCT5 PPM


20 PPM20 PPM5 PPM

0.01 PCT0.01 PCT0.01 pa0.01 PCT0.01 PCT


5 PPM5 PPM5 PPM

0.01 PCT5 PPM

EXTRACTION

Fire Assay of 50gHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCL

HF-HN03-HCL04-HCL HF-HN03-HCLC4-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCL

HF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCLC4-HCL

HF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-Ha04-HCLHF-HN03-HCL04-Ha

HF-HN03-Ha04-HCLHF-HN03-HCL04-HaHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-Ha04-Ha

HF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-HCL04-HCLHF-HN03-Hao4-HCL

us- Uiimiiec - notuiar HCKK

ycTumFE 1 nUU

SOg Fire Assay - AAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMINDUC. COUP. PLASMA

INDUC. COUP. PLASMA INDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMA

INDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMA



INDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMAINDUC. COUP. PLASMA

SAMPLE TYPES NUMBER SIZE FRACTIONS NUMBER SAMPLE PREPARATIONS NUMBER

DRILL CORE 3 -150 3 CRUSH, SPLITPULVERIZATION

REPORT COPIES TO: ALAN SHEFSKY INVOICE TO: ALAN SHEFSKYALAN SHEFSKYPAUL CLAUDE DELISLE

This report must not be reproduced except in full. The data presented in thisreport is specific to those samples identified under "Sample Number" and isapplicable only to the samples as received expressed on a dry basis unlessotherwise indicated

iHHI************************************************!!****************************

iV)'*- '--'

,

toT* *\CO7\*}t.v*

COf""*\........,................................................................^

33


Geochemical Lab ReportCLIENT: PELE MOUNTAIN RESOURCES

REPORT: T99-57527.0 C COMPLETE ) DATE RECEIVED: 25-NOV-99

PROJECT: NONE DATE PRINTED: 6-OEC-99 PAGE 1 OF 2

SAMPLE

NUMBER

161535161536161537

ELEMENT Ai60 ^J Cu iPbl Zn |MoJ NiUNITS PPB P(ili PPM PW(I PPM iiJjPPM

Cd |Bjl As jjSb.-fe Tot ;A Mn .i Te : ;.Ba:;: Cr Hy? Sn -I W:;: La ;:;?Al ; ; Mg :V te" Ha f|i.|| Sr |t*| Ga lip Nb |jh| Ta llll Zr W* SlilM'H bil reT IPfH pPM W) PPM PW| PPM PfM. PPM i; PCJ PCT |pJC|ir i PCT |(?ci|pPM PPJiPPM (?PJ;PPM IRPji;PPM IpCrlpPM

ITS - Chimitec -Bondar Clegg, iili-u i


Geochemical Lab Report\ CLIENT: PELE MOUNTAIN RESOURCESi REPORT: T99-57527.0 ( COMPLETE )

STANDARD ELEMENT Au50 Ag Cu PbNAME UNITS PPB PpMj PPM ?H||

STD GECCHEM STD 6 - 4i5| 151 |l||Nuiber of Analyses - li 1 liMean Value - O,*; 151 |i||Standard Deviation - f|| - |1|| Accepted Value - 0.2 148 : 20

ANALYTICAL BLANK <5 *.5| <1 |52Nuiber of Analyses 1 111 1 ;;lllMean Value 3 OJ3| <1 |ig|Standard Deviation - lil - ||||Accepted Value 5 0.2 1 il-2-?

Wfxii VxVKfS;;;;;™ SSxxSx

Oxide (Feldspar S, 177 :fl - |||Nuiber of Analyses 1 ill - |flMean Value 177 ||1 - |||f Standard Deviation - H - Hi Accepted Value - |||l - 111

'.•'•'.•'.-.•.•'. '.- •'.•'•:-:-'.-.-:-':

:v: : : : :: ::-'- ::', : :v:Xx

l l11 111xSvXiX :;S.xSx: :

si: ;; li:;;

j : :;:-: ::;:;:-i; ;v'-:":: : : :-i :

::;:o:":-:;:"i : :x :: :x:x|

v-i-xvX-: -•';':v:::':: : m:;?;;: ;;xxxx:

* iSxxK SSSxx

* '5';-:;;;;;;;; SSs;;;*;

PROJECT: NONE :DATE RECEIVED: 25-NOV-99 DATE PRINTED: 6-DEC-99 PAGE 2 OF 2 ;

Zn jijNof Hi iijCfliJ Cd I.B\- As Sb Fe Tot l:: Mn Te ;:'; Ba;' Cr lVx Sn xxWx La 1 A.I- Mg :, Ca Na :;;|||| Sr fl;V| Ga 'li.! Nb 1; Sc| Ta :lTtJ ZrPPM fSflPPM PPH| PPM PPM PPM PW; PCT ;: PPH PPM PPH PPM PPM PPM PPM;PPM j PCT j PCT PCT Pa : P^flPPM PPM PPM PPM JPPM PPMlPPM PCTPFM

159 |ll53 40N1 - 0 N 1W *5 7-67 1558 ^ 187 280 158 ^20 28 10 6,00 2.77 3,82 0.97 1*661106 7^10 29 9 23 5 0.34 59ill i H i ill i li! i sli ; ; i î ; " iiiV: i i i:;' : i} i PT? illl i Ml i Bil 'M i&l i

159 ill 153 40 ; 0.5 Is :149 3 7.67 1558 13 187 280 158 10 28 10 6.00 2.77 3.82 0.97 ilp6|l06 lifci 5 29 9 ; 23; 5 0.34 1 59- H - 111: - III - ill-; - IS - S, - m, - ;l.;l - lil: - Mi - lil - 111 - lil -

148 ||ll55 ;:;?|| 0.1 Iflj - lii.:;' 7.30 WX l 185:.301 ITT)- 5 :^l 12 6i80J2.80 4*QQ:;0.90 I|6||l10 111 5 |jt|l 6SSss !i!;S;S 3*33 -;i:::.f;- ; . :s?S i: -': : : ? : ; ' Vv . '.-": :;:s I'^v: 1 ? -'-':-:.-. : .; ss;;?;;-;;:;? issss SS™5:

K2 ?:*i-s K! V'eiSxl.O ^ ^ ?-*5 *0.01 ^ <25 4 *2 ; -*Z *20 <20 4 <.01 *.01 <.01:<.01 *.6i ;s <1 s*5;*10 :;S2 ; 5 *5m':.--f: j;;:;';:;: ms--: Irt.---'--- 'f,..:*: -'•••: ••••~- , .-.-.:^ ^'••'•- - --:--: -- S;:"':;; SJKJJj; W:;:S^

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;*5J K5 sOll ^lil lilil il3j 3^011 3lil - 1;;;;1| -Si *1 lil X1l -l - ill- i -'-. :-*-;': : ~ '.•'•••:- ^••**"!": ™ 1 H Si-i'X-i-xo;-'

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: : : : :j:|: ii^ 0:;:;S::: '

f t^l"! T:^;x;x'x;x :-;s; :;sx| v;s;-xx: ;s-x'-; : - x- - ' : :'V : ./: : : " - ? .-. -; -SB x-x'x-x-; -: - -- x.;-- x; : :-.. ; : ; ;

Analytlquc Ir":

REPORT DATE: 1999/10/08PROJECT #-.9914375

MAXXAM JOB #: 9905561

JMaxxam ID

PCB IN SOLID (mg/kg)

2878221

Parameter SOLIDSPIKE "/oREC BLANK! DL

07o MoistureArodor 1242Arodor 1248Arodor 1254Arodor 1260Total PCB

36! l•eO.1•cO.IO.1O.1O.1

N/AIN/A lN/AI1021N/A!

1O.1| 0.10. 11 0.1*0.1| 0.1O.1I 0.10.11 N/A

Recovery of Surrogates('/o)

Parameter SOLIDSPIKE! %REci BLANK

Decacmoroblphenyl 1 551 90i 79

N/A = Not Applicable DL a DETECTION LIMIT

All results are calculated on a dry weight basis except where not applicable.

SPIKE 14 REG = Percent recovery In a laboratory spiked sample. Please note that the above results have not been corrected for the spike recovery, sample surrogate recoveries and laboratory blank values.

Condition of sample(s) upon receipt GOOD

2 222 30

NAWCQ 3

Y LAPORTE

9420 Cflte de Liesse, Lachine. Quebec, Canada H8T 1A1 -Tel.: (514) 636-6213 - Fax: (514) 631-9814

Ce ceit/ffcar ne sto/r pas erre reprotiuit. sinon en enrier, sans I'auiorisation Ocrite du laboramirs. This cefT'ffcare may nor be reproduced, ttcspr in /fs enr/rery. without the wr/rren approval of rfte laboratory.

j.u , o v ra.

,1/Xami jf Aiialytlquc Inc

ooj. OOJ.-1

REPORT DATE: 1999/10/08PROJECT #; 9914375

MAXXAM JOB #: 9905581

PCB IN LIQUID(ug/L)

IMaxxamID

l Parameter

2B7B23I l - i

SPIKEI jLIQUID "/oREcl BLANK! DL

Aroclor 1242Arodor 1246Arodor 1254Arodor 1260Total PCB

l ^M N/A l<Q.1 N/AI•50.1 N/Al0.11 71 io.ii N/AI

O.1 l 0.1O.1I 0.1O.I l 0.1O.1I 0.1O.1I N/A

Recovery of Surrogates

oO;

Parameter LIQUIDiSPIKE l "KREC BLANK!

| Dccachloroblpheny 1 1 1 03 i 88! 103!

N/A = Not Applicable DL a DETECTION LIMIT

SPIKE Vo REG s Percent recovery in a laboratory spiked sample. Please note that the above results have not been corrected for the spike recovery, sample surrogate recoveries and laboratory blank values.

Condition of sample(s) upon receipt; GOOD

\T)r\NCY LAPORTE

9420 Cote de Liesse. Lachine, Quebec, Canada H8T 1AT - Tel.: (514) 636-6218 - Fax: (514) 631-9814

Ce cerr/'fi'csc ne doit pas tire reproduit sinon en ent/er, jany /'auforisat/cn Scn'fe du labora'.oirs. This ceTift'cate may ncf 6e reproduced, except m its enf/rery, w/r/iour the written approval of r/ie laboratory.

MILL OFFICE S1002

Battle Mountain GoldGolden Giant Mine

Custom Milling Report — Leach Tests ft Assays

Customer. Pele Mountain Resources

Date: October 27, 1999

2. 222 30

SampleAssay Head D/S Assay Head N/S

Gold (grt) Assay 1 Assay 2 Assay 3

8.676.75

6.508.87

8.808.26

Average 7.99 7.96

Silver (g/t) Assay

0.94 1.03

Gale. Head Final Solution Leach Tails

Recovery

Test "A"Gold (git)

Test "B" Test "C"7.95

6.80.48

7.206.0

0.47

93.5-/0

B.376.8

0.48

94.2"7c

Average7.846.530.48

Silvar (g/t) Average

TO.3%

Notes:

new C Ginn Metallurgist

42C08SW2021 2.22230 JACOBSON 030

Bottle Mountain GoldGolden Giant Mine

Custom Milling Report—Leach Tests Se Assays

Customer Pele Mountain Resources


2 222 30'



Recovery

Assay 14.464.31

Test "A"4.96

4.30.41

91 .7V.

Gold (g/t) Assay 2 Assay 3

4.444.56

Gold (g/t) Test "B" Test "C"

4.60 4.684.0 4.1

0.45 0.50

90.2V. 89.3'A

Average4.454.44

Average4.754.130.45

90.4V.

Silver (g/t) Assay

0.86 0.86

Silver (g/t) Average

71. r/.

Notes:

Matthew C Ginn Metallurgist

BUG MILL OFFICE ©003


Custom Milling Report—Leach Tests ft Assays



2 ? 2 Q (*~* ! ""' " f,^j*


Assay 14.48 3.82

Gold (git) Assay 2 Assay 3

4.15 3.82

Average4.32 3.32

Silver (g/t) Assau

0.83 1.0S


Recovery

Gold (g/t) Test "A" Test "B" Test "C"

4.343.7

0.41

ao.6%

4.023-6

0.42

8S.6V.

3.933.6

0.40

Bg.8%

Average 4.10 3.63 0.41

M.0%


BO.6%

Notes:


MILL OFFICE


Custom Milling Report—Leach Tests 8t Assays



iiooi


Gale. Head Final Solution Leach Tans

Recovery

Assay 13.733.54

Test "A"

3.843.4

0.41

89.3*7*


3.743.74

Gold (g/t) Test -B" Test "C"

3.80 3.783.4 3.5

0.41 0.40

fi9.20/. 89.4-54

Average3.743.69

Average3.813.430.41

89.39/.

Silver (g/t) Assay

0.87 0.83


es.6%

Notes:


11/05/99 16:39 S807 238 2066 BMG MILL OFFICE 12)001




Date: October 31,1999

2. 222 30

SampleAssay Head 0/S Assay Head N/S


Recovery

Assay 13.673.60

Test "A"3.86

3.40.41

89.4V.

Gold (git)Assay 2 Assay 3

3.323.84

Gold (g/t) Test "B" Tpst "fi-

4.09 3.88 3.3 3.4

0.41 0.42

90.0V. 89.2V.

Average3.503.72

Average3.94 3.370.41

89.5V.

Sliver (g/t) Assay

1.08 0.91

Silver (g/t) A von g o

60.50/.

Notes:

Mattnew C Ginn Metallurgist

11/04/99 17:22 Q807 238 2066 BUG MILL OFFICE

(

Baffle Mountain GoldGolden Giant Mine



Date- November 1,1999


Gold (g/t) Assay 1 Assay 2 Assay 3

3.975.09

3.854.88

Average 3.91 4.99

Silver (g/t) Assay

0.71 0.88


Recovery

Test "A"Gold (git)

Test "B" Test "C" AverageSilver (g/t) Average

Notes:


ll.'08-'99 17:07 "Q8Q7 238 2066 BMG MILL OFFICE

JM Battle Mountain GoldGolden Giant Mine



Date: November 2,1999

SampleAssay Head D/5 Assay Head N/S


Recovery

Assay 14.51

10.80

Test "A"

7.797.0

0.54

93.1 '/t


4.54 10.12


7.41 7.286.7 6.7

0.52 0.47

93.0"/. 93.5V.

Average4.53

10.46

Average7.496.800.51

93.2Vo

Silver (g/t) Assay

1.00 1.20


Notes:


11--10/99 16:28 238 2066 BMG MILL OFFICE BlOOl

Battle Mountain GeldGolden Giant Mine




2 222 30



Recovery

Assay 1

5.96

Test "A"6.22

3.80.87

86.0V.


5.90

Gold (git) Test "B" Test "C"

5.75 6.173.9 3.9

0.46 0.64

92.0V. 89.6V.

Average

S.93

Average6.053.870.66

89.2V.

Silver (gil)Assay

n/a


Notes:Shut down on D/S for mill maintenanceSilver heads not assayed

Assay of reserve samples confirmed the results shown


11/09/99 16:30 ©807 238 2066 BUG MILL OFFICE 12)002

.i ; "

BaWte Mountain GoldGolden Giant Mine

Custom Milling Report—Leach Tests 8c Assays




CalC. Head Final Solution Leach Tails

Recovery

Assay 14.364.79

Test "A"4.72

4.40.43

90.9V.


4.554.86

Gold (gil) Test "B" Test "C"

4.85 4.984.6 4.7

0.43 0.43

91.1V. 91.4V.

Average4.464.83

Average4.854.570.43

91.1V.

Silver (fl/t) Assay


Notes:


BaUle Mountain GoldGolden Giant Mine



Date: Novembers, 1999



Recovery

Assay 15.524.67

Test "A"5.18

4.S0.34

93.4V.


5.594.70


5.27 5.264.6 4.5

0.36 0.35

93.2V. 93.3V.

Average5.564.69

Average5.244.570.35

93.3V.

Silver (g/t) Assay


Notes:

Matthew CGinn Metallurgist




Date. November 6,1999

2 222 30


Gale. Head Final Solution Leacn Tails

Recovery

Assay 14.623.94

Test "A"

4.283.7

0.32

92.5V.


4.474.00


4.28 4.393.8 3.9

0.31 0.31

92.8V. 92.9V.

Average4.553.97

Average4.323.800.31

92.7V.

Silver (g/t) Assay


Notes:


^5/99 11:25 O807 238 2066 BMG MILL OFFICE 121002

.^BE BalHe Mountain GoldGolden Giant Mine

Custom Milling Report—Leach Tests St Assays



o t... x \^v


Assay 13.99 3.71


3.99 3.60

Average3.99 3.66

Silver (g/t) Assay


Recovery

Test "A"Gold (g/t)

Test "B" Test "C"3.81

3.40.24

3.7434

0.23

93.8V.

3.7934

0.25

93.4V.

Average 3.78 3.40 0.24

93.6V.

Silver (g/t) Averaae

Notes:


2066 BMG MILL OFFICE E1003

Bailie Mountain GoldGolden Giant Mine


customer. Pele Mountain Resources

Date. November 8,1999



Recovery

Assay 13.28

n/a

Tsst "A"

3.16 3.2

0.26

91. 80/.

Gold (g/t)Assay 2 Assay 3

3.29n/a —


3.16 3.23 3.2 3.3

0.25 0.25

92.1 '/o 92.3'/.

Average3.294.08

Average3.18 3.230.25

92.1 '/o

Silver (g/t) Assay


Notes:N/S head assay estimated by assay of Nov. 9 D/S


zM Bqrrte Mountain GoldGolden Giant Mine

Custom Milling Report—Leach Tests & Assays


Date. Novembers, 1999

fc. 222 30



Recovery

Notes:End of batch

Gold (g/t) Silver (g/t) Assay 1 Assay 2 Assay 3 Average Assay

4.02 4.13 - 4.08n/a n/a - n/a

Gold (g/t) Silver (g/t) Test "A" Test "B" Test "C" Average Average


BatHe Mountain GoldGolden Giant Mine

Custom Milling Report—Leach Tests fit Assays

r? O

Customer: Pele Mountain Resources

Date: December 1,1999



Recovery

Assay 15.655.65

Test "A"

5.886.5

0.30

95.00/.


5.575.57


5.74 5.736.5 6.4

0.27 0.27

SS.3% SS.3%

Average5.615.61

Average5.786.470.28

95.20/.

Silver (g/t) Assay


ee.7%

Notes:Silver recovery estimated at 66.7e7o——————————————-——————^————.The N/S sample represents 1/3 of D/S and entire N/S. The sampling did not begin until late D/S since Golden Giant ore would contaminate the Pele Mountain Resources sample.________

Jo/31 Marcotte Metallurgist

Hi BoHtoMountainQoldOaMvn elan* Mln*

Custom Milling Report—Leach Tests 4 Assays


Date: December 2,1999



Recovery

Ascayl9.10 5.33

Test 'A"

7.41 7.4

0.28

96.3*

Gold (B/t) Assay 2 Assay 3

8.96 5.26

Qold(gA) Teat 'B' Teat -C'

7.38 7.54 7.4 7.9

0.26 0.26

96.5* 96.6*

Average8.03 5.30

Average7.44 7.570.27

96.5*

Silver (9ft)

SHver(grt) Average

Note*: Silver recovery estimated at 66.7*

Q.kJodiiWarcotte Metallurgist

-* CD CD. os tn uiO W OD CDOD W CD 00

ro fN3 co uJ co M ro3 fO u) O)

S

S -*J -4(71 O)J11 r' r* r*

Ki ro to CB

0) O) OD CO

S f|

g!

3 S.

11/02/99 08:45 O807 238 2066 BUG MILL OFFICE ®001

Battle Mountain Gold Golden Giant Mine

ASSAY REPORT

Date: Nov 2799

Water samples received from Pele Mountain, Nov 1/99

Sample ID_________pH TSS rng/L NH3-N. mg/L

#34939 IN 7.27 25 4.3

a34940OUT 6.79 ^ 0.2

S ,X"

2. 222 30Bottle Mountain Ooid

OMdtn OlMt Mine

Custom Milling Report—SummaryCustomer: Pele Mountain Rosourcni

Dale SWnsun

27-Od Day27-Od Night28Ort Day2 8 -Od Night29-Ocl Day29-Od Nlghl30-Od Day30-Oci Night31 -Od Day

. 31-Od Night01 -Mov Day01-Nov Nlfllil02-Nov Day02-Nov Night03*4ov Day03-Nov Nlghl04-Nov Day04-Nov Night05-Nov Day05-Nov Night00-Mov Dayoe-Nov Nlghl07-Mov Day07-IMov Night08 Nov Day08-Mov NlgN09 -Nov Finish

ToUI

Op.Tkne(hrs)

1021201201201201201201301 2.011.912.012012010516

12012010810212012077

toe12012012085

2*7.1

MINIngTonnage (1)

WetgrrometBr Wet Moisture Dry0.0

341.4 3414 190* 114.*749.4 401.0 190* 4*4.2

- 080 5 331 1 2 05* 314.1- 48B.1 407 7 205* 384.3-•42.1 3S4.0 1.16* 349.*12000 3579 1.15* 151.8:SS60 3560 1.95* 14t.1S 945.4 349.4 1.95* MilZ. 304.4 3490 1.S5* 1S2.42660.9 3566 1.65* 34*.*• 072.0 412.0 1.65* 405.2• 5184 443.5 165* 436.2-974.4 4560 1.S5* 4S0.98363.4 404.0 1.95* 402.784364 550 2.30* S1.7S 904.4 466.0 230* 41118350.4 446.0 1.30* 440 J67089 35*5 130* 1S1.I70219 313.0 140* 30*.614 17 3 395.4 1.40* 31*.*-. 784 3 367.0 1.20* 162.680169 2326 1.20* 21*.*83349 318.0 0.70* 315.886932 3583 0.70* 355.8S 092 2 359.0 1.10S 358.192228 170.6 l.tO* Hi 79 404 8 182.0 100* 180.2

(404.1 1J4* 9260.1

Grind*-400M

78.2*626*77.7*823*81 2*61.7*769*804*81.7*782*776*77.1*77.1*766*74. OH760*78.1*791*81 5*BO 3*768*82.3*606*803*804*80.4*60.7*79.4*

Hod GlideGold (g/l)

Assay Calc Average

7 99 7 84 7.*27.96 7 84 7.894 45 4 75 4.10444 475 4.804 32 4 10 4.21382 410 3.**374 381 3.76369 381 1.753.50 3 94 1.723.72 3.94 3.11391 451 4.214 99 451 4.714 53 7 49 8.01

10.46 7 48 8.885 93 6 OS S.**6.93 605 S.M446 485 4.614 83 4 85 4.845 58 5 24 S 404 69 5 24 4.874 55 4 32 4.44397 432 4.19399 378 3.883.66 378 3.T2329 318 1-244.08 4 08 4.014 08 4 08 4.064J8 4.17 4.93

Slrvtf (g/lAssay

0941030860680631 060870881.08O 910.710881.001.201001001.001 001 00r oo1 DO1 001.001.001001 001 OO0.98

MUI f t tdGold Silver

26524 31463 161 0 412 214916 2789t 836.8 343.41 473.1 290 414010 37501 319.6 303 71 431.8 336 01 310 9 380.61 340.1 318 41 7059 287.72 0720 383 92 709 9 450.936162 4632

321.7 53.72 727 2 455.320513 440.21712.4 35361 Sea 4 308 Bt 837 8 389.9t 809.9 362 6

9537 2?* 81 2285 315613236 355811505 3551

8883 188.77352 1807

45 626.6 8 928.6

Leach Tut RecoveryGold Silver

93 9* 70 3*93 9* 70 3*904* 71.1*80.4* 711*900* 606*900* 606*89.3* 656*89 3* 65.6*89 S* 60 5*89.5* 605*90.1* 06.7*901* earn932* 88. TX932* Mr*692* 68. 7X892* 68. 7*91.1* 88.7*91.1* 66.7*93 3* 68 7*933* 667*927* 84 7H927* 88.7*936* S87X936* 66 7K921* 867*92 f H 66. 7*62. ) S 88.7*91.7* 664*

Accl Owing (g)Gold Silver

24857 19922 939 0 260 81335.1 178516438 219.7

312.5 158.4248 3 204 S1866 179.32858 198.4161.5 2072187.4 173.4

1 521.6 172.71 648.2 230 42 500.4 270.733388 290.1

284.1 32.22 406.4 273 31 860.1 264 31 544.4 212.415392 18531 7899 234 l1477.5 217.7

875.2 13791 138.3 189812285 21361 049 0 213 2

6276 101.36704 1032

41 41X1 5 128*4

Dale SNflStart

01-Oec Day 01 -Dec Nighl 02-Oec Day 02-Oec Nlglil

ToUI

Op. Time (tut)

11.0 11 1 66 76

38.3

MNIng Tonnage (II

Weigh omeinr Wet Moisture Dry0.0

338.9 3369 3.20* 326.1 8738 3369 320* 328.1 9454 271.6 330* 262.6

- 184 2 238 8 3.30* 210.81 1(4.2 3.25* 1 145-7

Grind*-400M

801* 81 2* 81 S* 81.8*(1.0*

Head Gride Gold (gfl)

Asuy Gale Average

561 578 - 8.70 561 578 5.78 903 744 tJ4 530 744 6.176.33 6.SA 6.42

SHveMg/t)Assay

1.00 f 00toof 001.00

Mil Feed Gold SJver

1 858 B 328 1 1 858 8 328 121638 2928 1 470 B 230 97 352.2 1 145.7

Leach Teit Recovery

Gold Silver

952* 68.7* 952* 88754 96 5* 68.7* 985* 68. 7*(5.8* 86.7*

Acct Owing lg)Gold Sivcr

1 751.9 1958 1751.9 1958 20872 1576 1405.2 1 33 S8 971 J 847.1

3

Ballte Mountain GoldGolden Giant Mine

Summary of custom milling of Pele Mountain ore in 1999

MonthOd. 1999 Nov. 1999 Dec. 1999Total

Tonnes milled

4 437.0 4823.1 1 145.7

10405.8

Grind JV. -400M)

79.8*0 79.1 "ft Bl.0%79.6^0

Head Grade (0/0

4.78 5.07 6.425.09

Gold Recovery

C/.)91. oy,,92.3Vo 95.80/,,92.iy0

Payable (g)

19 095.5 22317.6

6 976 248 389.3

(oz)613.9 717.5 224.3

1 555.7

Head Grade (g/t)

0.91 1.02 1.000.97

Silver Recovery

C/.)65.RKtt.7% ee.7%ee.3%

Payable (kg)2 382.5 2 943.9

687.86 014.2

(oz)76.6 94.7 22.1

193.4

MonthCcl. 1999 Nov. 1999 Dec. 1999Total

CS/USJ1.4773 1.4675 1.4733

oz. Payable613.935

717.5 224.3

1 555.735

S S S

Gold USS/oz

310.72 293.18 283.07

Value (CJ)S 281 812.53 S 308 698.38 S 93543.65(684054.56

oz. Payable76.599

94.7 22.1

193.399

Silver USVoz

S 5.42 S 5.19 S 5.21

Value (C J)S 613.33 S 721.27 t 169.64S 1 504.23

TonnesS 82261.98 S 89420.27 S 19476.90S 181 159.15

Processing Charges Assays GST

5 - S 5758.34 S 1 836.00 S 6 387.94 5 130.00 S 1 372.489 1 966.00 S 13 518.76

Total? 88 020.32 S 97644.21 S 20979.38J 206 643.92

222 30L. COTE P. ENG.217 Rue De LA PROMENADEVAL SENNEVILLE. QUEBEC. JOY 2PO(819)825-8614

OPEN PIT SURVEY (BULK SAMPLE)

MARKES ZONE - WAWA PROPERTY

thNovember 11 ,1999

(Includes D. Drill proposal for 3 rd bench).

FOR

PELE MOUNTAIN RESOURCES INC.

thNOVEMBER 11 ,1999

42C08SW2021 2.22230 JACOBSON 040

TABLE OF CONTENTS

Page

1.0 SUMMARY 3 OPEN PIT LONGITUDINAL VIEW

2.0 SURVEY OF ORE 4

3.0 SURVEY OF WASTE 5

4.0 SURVEY OF PRESHEAR DRILLING 6

5.0 OPEN PIT BENCH 3 - D. DRILL PROPOSAL 7

D. DRILL PROPOSAL - LONGITUDINAL 8

APPENDIX \-Sections of the Markes Zone - Open Pit l :200

2 222 301.0 SUMMARY

The Markes zone Open Pit was surveyed by the mine engineer from River Gold mines. The Bench #1 was partly surveyed on October 16th, and the Bench #2 on November 9th 1999. The location of the walls of the pit in relation to some diamond drill holes remain to be checked. The tonnage of waste and ore was calculated by the author using sections at a scale of l: 100. The survey was completed with tape and hand-level measurements taken during the operation of the pit. The results of the calculations are:

TONS ORE BROKEN BENCH #1 6375TBENCH #2 3828TTOTAL 10203T

TONS WASTE BROKEN BENCH #1 1261T (Pele Mountain.)BENCH #1 1296T (Maray construction)BENCH #2 1497TTOTAL 2758T

PRESHEAR DRILLING @3.5 ft c/c 119m2@Z5ftc7c 1100m2

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2 222 302.0 SURVEY OF ORE

Tonnage calculated from X-Section l: 100 and using 2.8T/ m3

SECTION

1421.5-1432.5W1434.0W1435.5W1437.0W1438.5W1440.0W1441.5w1443.0W1444.5W1446.0W1447.5W1449.0W1450.5W1452.0W1453.5W1455.0W1456.5W1458.0W1459.5W1461.0W1462.5W1464.0W1465.5W1467.0W1468.5W1470.0W1471.5W1473.0W1474.5W1476.0W1477.5W1479.0W1480.5W1482.0WS-TOTAL

Internal WasteOre recoveredTOTALTOTAL Bench 1 #

BENCH 1T metric

118136136124124141139146164260266274280276268273277281273279287308287277287211272218147108

818150

6915

(600)55

6375;2

BENCH 2T metric

12051475848574748476781

180196197185197197201209195184196188168159162159154180

3978

(l SOT)O

3828

(Reblast of ramp)

(from blast Octl3 & Nov. 3) (from 2.4m slash of North wall)

10203T

3.0 SURVEY OF WASTE

Tonnage calculated from Surveyed Depth of Ramp, and with no overbreak. The width for the Bench l, asked by Pele Mountain was 3.5m and asked by Maray Construction was 4.6m. On Bench 2 Pele, Mountain asked for a 4.6m minimum width but the blast was narrower.

BENCH lSECTION

1405.0-1411.5W 1411.5-1418.0W 1418.0-1426.5W 1426.5-1433.5W 1454.0-1461.0W S-TOTAL

DIMENSIONS - PELE

3.5 x 1.3 x 6.5 = 80T 3.5x2.5x6.5=1547 3.5x2.6x8.5 = 2097 3.5x3.3x7.0 = 2187 Internal Waste 600T 1261T

DIMENSIONS - MARAY

4.6x1.3x6.5 = 1057 4.6x2.5x6.5 = 2027 4.6x2.6x8.5 = 1027 4.6x3.3x7.0 = 2877 Internal Waste 600T 1296T

BENCH 2SECTION1405.0-1411.5W1421.5-1433.5W1451.0-1461.0W1448.5-1461.OW1461.0-1463.0W1463.0-1374.5WOre recovered from N. wall slashS-TOTAL

DIMENSIONS - PELEBlast of a block = l IT (asked by the Labour's inspector)4.3x2.0x12.0 = 2797Internal waste = l SOT2.4 x 6.2 x 12.5 = 502T ( 8 ft Slash of the North Wall)2.4x6.8x2.0 = 88T2.4x7.0x11.5 = 5227

^557)1497T

2. 222 304.0 SURVEY OF PRESHEAR DRILLING

The preshear drilling was requested for the walls of the pit where there was production of ore. The quantities were calculated on the base of the elevation reached by the blast and along the dip of the drilling.

BENCH l - PRESHEAR DRILLING OF HOLES 3.5 ft apart.SECTION WALL DIMENSIONS b m2 1433.5-1440.0W North 4.9 x 6.5 = 32

South 4.7x6.5 = 31 1440.0-1445.0W North 5.6 x 5.0 = 28

South (80 deg) 5.5 x 5.0 = 28

BENCH l - PRESHEAR DRILLING OF HOLES 2.5 ft apart From surface to bottom of bench 2 on the south wall & from surface to bottom of bench l on the north wall.SECTION WALL DIMENSIONS St m2 1445.0-1452.5W North 5.9 x 8.5 = 50

South (75-80 deg) 10.9 x 7.5 = 82 1452.5-1461.0W North 6.2 x 8.5 = 53

South (75-80 deg) 12.8 x 8.5 = 109 1461.0-1474.5W North 6.8 x 13.5 = 92

South (75 deg) 13.9 x 13.5 = 188 1474.5-1481.5W North 4.0 x 7.0 = 28

South (77 deg) 3.8 x 7.0 = 271447.0-1448.5W Slash of N wall 5.4 x 1.5 = 8 1448.0-1448.5W Slash on East wall 5.4 x 3.5 = 19

NORTH WALL - SLASHING - PRESHEAR HOLES 2.5ft apartSECTION WALL DIMENSIONS & m2 1448.5-1474.5W North 6.3 x 26.0 = 164

East 6.0 x 2.4 = 14 West 6.0 x 2.4 = 14

BENCH 2 - PRESHEAR DRILLING OF HOLES 2.5 ft apartSECTION WALL DIMENSIONS Se m21447.0-1448.5W East 4.8 x 5.0 = 241461.0-1474.5W South 6.0 x 13.5 = 811448.5-1451.0W North 5.2 x 2.5 = 131451.0-1461.0W North 5.8 x 10.0 = 581461.0-1474.5W North 5.6 x 13.5 = 76

TOTAL @ 3.5 FT c/c : 119 M2 (a2.5FTc7c:1100M2

5.0 BENCH #3 - D. DRILL PROPOSAL

The feasibility of taking a third bench depends on the grade and the width of this bench. It may be feasible to take only the footwall of the ore zone without slashing any waste but the equipments used at time of the bench # 2 was inappropriate and/or required rehandling the muck. Part of the south zone (footwall zone) in the narrow part of the ramp is dipping under the North wall of the ramp. A few diamond drill holes are required to see if it's better to mine only the south Zone or the complete zone in the third bench.

The longitudinal section of the South (footwall) zone shows a possible improvement of the grade and the width below the bottom of the pit and a flat plunge of the good values to the East. If this flat plunge is real, the wide portion of the pit could be extended to the East. The grade of the zone (indicated by drill holes) on the bench 2 on Sect. 143 5 W and 1440W was around 4g7T and the hole 99-2 on 1432W shows 6g7T at 7 meters below the actual ramp. I recommend to drill holes on Sect. 143 5 W and 1440 W to see if it's possible to have a Sg/T grade and a better width for a 3rd bench. I recommend also to drill a hole on section 1447 W to see if the grade of the North zone improves for the third bench (as indicated by some chip samples) so the north wall of the actual ramp could be slashed to access entirely the South zone

The last 15 meters of Bench 2 at the west end of the pit returned strong mineralization comparatively to the poor intersections shown in drill Hole 86-19 on section 1469W. The feasibility of a third bench depends on the good grade in this sector. Therefore I recommend to drill holes on sections 1459W and 1469W to define the grade in this area.

The 5 drill holes proposed total 125 meters. Please refer to the appended sections for details on each proposed drill hole.

It is reasonably expected that this diamond drilling proposal will return information to complete the feasibility of a third bench.

Leo Cote, B.Applied Se.. Consulting Geologist Engineer

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2. 222 30

CLOSURE PLAN

BULK SAMPLE AT MARKES ZONESSM 1174694

District of AlgomaJacobson Township

Lat: 84 0 19'Long: 48 0 18'

Pele Mountain Resources Inc.20 Richmond Street East, Suite 212

Toronto, Ontario M5C 2R9Phone: (416)368-7224

Fax: (416)368-7230E-mail: infofS1 pelemountain.com

vvvvw.pelcmountain.com

Submitted on August 23. 1999 on behalf of Pele Mountain Resources Inc.

Alan L. Shsjreky, President

42C08SW2021 2.22230 JACOBSON 060

Table of Contents 2. 222 301.0 Introduction

1.1 Objective of Closure Plan1.2 Rational and Approachl .3 Mine Location and Property1.4 Climate1.5 Surface Geology1.6 Bedrock Geology1.7 Mineralogy1.8 Topography l .9 Hydrology1.10 Land Uses1.11 Mining History

2.0 Pre-Development Environment

2. l Plant and Animal Life 2.2 Surface Water Quality

3.0 Proposed Mining Plan

4.0 Closure

4.1 Temporary Suspension4.2 Inactivity4.3 Closed Out4.4 Cost to Close-Out

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2. 222 30List of Figures

Figure l Location Map

Figure 2 Claim Map and Location

Figure 3 Geology Map

Figure 4 Topographic Map

Figure 5 Pit Plan

Figure 6 Pit Long Section

-i

Appendices

Appendix l Newspaper Ad

Appendix 2 Claim Map and Listing

Appendix 3 Weather Information

Appendix 4 Acid Base Accounting

Appendix 5 Water Quality Analysis

1.0 Introduction

1.1 Objective of Closure Plan

2 222 30

The purpose of this plan is to comply with the requirements of the Mining Act of Ontario and to outline a strategy for dealing with the both short and long-term closure of the site once the proposed advanced exploration is complete.

l .2 Rational and Approach

The project site will be placed in a state of temporary suspension at the completion of the proposed advanced exploration to allow evaluation of the results obtained. The area has been the location of mining activity for 60 years or more and it is hoped that mining at the Markes Zone will be justified following this program. The site would not be closed out in order to allow mining to proceed in the future.

A state of Inactivity may result if commodity prices remain low and do not support production at this time.

Full close out of the site would occur only if results of the advanced exploration indicate that future mining should not be contemplated.

Pele Mountain Resources operates in full compliance with all environmental and safety legislation and regulations and will continue to do so through this project and its closure.

1.3 Mine Location and Property

The Markes occurrence is located in Jacobson Township approximately 55 km northeast of Wawa, Ontario (Figures l, 2). The site is accessible from the town of Dubreuilville by a gravel road that reaches the Edwards Mine, operated by River Gold Mines. An unused logging road is then followed to south of the site and a newly constructed 300 metre road followed in to the zone.

The property consists of 68 contiguous claims blocks totaling 3157 hectares in Jacobson and Riggs townships. A list of claims is attached in Appendix 2 and includes both patented and unpatented mining claims held. Four known gold occurrences exist on the property although only the Markes Zone is being considered for development at this time. The Markes Zone is located on unpatented mining claim number SSM 1174694.

2 222 3 o

290 Km


MARKES ZONEFIGURE l

JACOBSON T\VP,^———^^^^^M^

1164272Laugh hi

SSM 1224573

539077 .634878

MAKKES ZONE l 539879

(•3 l-227 '.-

2233 B396B8

1229923^•i

I'ELE MOUNTAIN CLAIMS

608842 J 608841

2000 (2 KM ) l

935963 . g J865944J 865945

FIGURE 2CO

1.4 Climate2 222 30

The project is located within the Superior Regional climate area, which borders on the north shore of Lake Superior. Daily mean temperatures average +2 degrees with coldest daily mean temperatures of -14 degrees in January and warmest mean temperatures of 15.6 degrees in July. Precipitation averages 945 mm of rain and 278 cm of snow. Details of climate are attached in Appendix 3.

1.5 Surface Geology

Overburden soils are relatively uniform. The stratigraphy is dominated by glacial drift consisting of dense stony sand till directly overlying the bedrock. This includes textures ranging from silt through to cobble and boulder sizes with sand and gravel predominating. Topsoil is poorly developed and classed as black silty sand with moderate organic content. Previous operators of the site have stripped off the soils over the Markes Zone to expose the bedrock.

1.6 Bedrock Geology

The Markes Zone is part of the regional Goudreau - Lochalsh Deformation Zone. This major structure is up to 4.5 km in width and at least 37 km long and trends at N070 to N090. It contains all of the known gold deposits and showings of the region.

The Markes Zone trends at N090 and dips at 70 degrees to the north. It varies in width from 4.5 m at the west end up to 10m and is known for a length of 115 metres. Figure 3 is a geologic map of the area.

The Markes Zone consists of sheared pillow basalt displaying strong calcite- carbonitization moderate chlorite, weak tourmalinization, and strong silicification, sericitization and pyritization. The zone is surrounded by felsic intrusive rocks, to the north, and relatively undeformed, pillowed basalt to the south. The zone also contains a narrow sulphide iron formation interbedded with the pillowed basalt to the east.

Gold mineralization is associated with high silica brecciated zones. The mineralized zones are filled with light grey to white quartz material in the form of veinlets, pods, contorted stringers and crosscutting stringers in an anastomosing pattern. Gold is also associated with pyrite, which ranges up to 12 "/o. Gold occurs as find particles of free gold with very little visible gold being noted.

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LEGEND~**ff" t ^ ^ t

" ." ^ *

MAFIC VOLCANIC FLOW (basalt)

COARSE GRAINED MAFIC FLOWfgabbro'?)

dj INTERMEDIATE VOLCANIC FLOW (andesite)

L i FELSIC VOLCANIC FLOW (rtiyolite)

FELSIC INTRUSIVE (granodiorite)

5 l QUARTZ-FELDSPAR PORPHYRY INTRUSIVE

•l DIABASE INTRUSIVE

HI METASEDIMENT(quartz-sulphides)

QUARTZ VEIN


GEOLOGYWAWA AREA (Ontario)

WESTERN GROUP( Goudreau-Lochalsh Belt)

JACOBSON AND RIGGS TOWNSHIPS

SCALE 1 15000 SONIC SOIL SAMPLING INC

FIGURE 3

1.7 Mineralogy 2 222 30The basaltic host rocks at the Markes Zone are high in silicate minerals and in carbonate minerals. High levels of silica, calcite, and pyrite along with other silicate minerals characterize the mineralized zone. The sulphide iron formation is a semi-massive pyrite- phyrrotite band interbedded with siderite, and iron carbonate. Minor chalcopyrite and sphalerite have been noted in this unit.

Acid base accounting tests were carried out on the major rock types found at the Markes Zone. Rock samples were taken from the outcrop and analytic results are attached in Appendix 4.

The host rocks were found to be net acid consumers as they contained little if any sulphides and are extensively carbonatized. The mineralized zone was found to be a net acid generator as it contains significant sulphides as well as significant carbonate. The iron formation is a net acid generator due to its high sulphide content. A small amount of iron formation may be encountered in the pit but will be shipped to the mill as ore, no iron formation will be produced from the pit as waste.

1.8 Topography

The region is characterized by rolling upland of mostly exposed bedrock knobs with thin till cover. Lower areas between rocks have been filled to a greater depth with the same sand and gravel mix. Local eskers of sand and gravel trend east-west. Figure 4 is a portion of Map 42C/8 (Franz) and shows local topography.

The highest point locally is 432 metres above mean sea level with the Markes Zone located at about 415 metres elevation. The site is near a local divide with a gentle slope from the site to the east and a gentle rise to the west.

1.9 Hydrology

The site is at a local topographic high and drains to the north. The wetland occupies a low area about 100 metres north of the zone. This wetland drains to the east through a small creek and abandoned beaver pond into the west end of Godin Lake. Godin Lake is a part of the Tehoma River which drains the area south of the project site northeast into Wabatongushi Lake. Wabatongushi Lake drains into Dog Lake and into the Michipicoten River to Lake Superior. Figure 4 is a portion of Map 42C/8 (Franz) and shows this drainage.

The Markes Zone is several metres above the water level in the wetland and there will be no drainage into the proposed pit from the wetland. The bedrock at the site is very tight, with no evidence of groundwater flowing from any of the drilling into the proposed pit area. No inflows to the pit are expected from surface or groundwater sources.

; •••••: ' 'o 'j~

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TOPOGRAPHIC MAP FIGURE 4

l l l 1

222 301.10 Land Uses

No industrial or residential use is made of the site at this time. River Gold Mines is operating the Edwards Mine about 3 km west of the site. The property is covered by a forest management area operated by Dubreuil forest products and has been extensively logged in the past. No logging operations have taken place recently and none are expected in the near future.

The nearest residents live in the townsite of Lochalsh about 5 km to the northeast of the site. The area is used mostly for recreational purposes by local residents, as well as by tourists. The main activities include camping and fishing in the summer, hunting in the fall and snowmobiling in the winter.

1.11 Mining History

Gold was discovered in the region in the late 1800's and the area has been actively explored since that time. Some exploration for iron and copper took place in the early part of this century but recent work has focused on gold. Mining operations have taken place from time to time since the 1920's with recent major developments taking place in the mid 1980's. The most recent development is at the very successful Edwards Mine operated by River Gold Mines.

The Markes Zone was discovered in 1937 by William E. Markes and optioned to Erie Canadian Mines Limited. Erie Canadian completed a stripping program and drilled 13 holes before abandoning the property. In 1979 Prospection Limited explored the property with 9 drillholes. In the early 80's the property was acquired by Cline Development Corp and optioned to Esso Minerals who drilled the property in 1986-87. Pele Mountain Resources acquired the property in 1997 and has explored it since that time.

l

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l

O2.0 Pre-development Environment

2.1 Plant and Animal Life

The information in this section has been taken from various sources including "local" knowledge.

Jack Pine communities dominate the better-drained areas with some White Birch and Trembling Aspen, and grade into mixed forest, as drainage becomes poorer. Black Spruce and White Cedar dominate the poorly drained areas, with sedge and muskeg communities dominating very poorly drained areas. Vegetation has been controlled by logging and by forest fires, with more mature forest species being absent.

Wildlife populations are regionally typical with habitat favourable to moose being developed as a result of forestry operations. This has resulted in hunting activity near the site. Moose activity is noted at the site as well as the presence of black bears and wolves. Trapping occurs in the area with beaver, otter, marten and mink the main species targeted. The level of trapping activity varies widely depending on the prices available for pelts.

2.2 Surface Water Quality

A limited program of water quality analysis was undertaken to determine existing conditions. Sampling was carried out in the wetland nearest to the project site and in the bay at the west end of Godin Lake where drainage from the site would enter the lake. Results of the analysis are included in Appendix 5.

Water quality is typical of undisturbed sites with neutral pH and low contaminant levels. Heavy metal levels were at or near detection limit with slightly elevated copper near the site and slightly elevated iron in Godin Lake.

.1 l l

l

2. 222 383.0 Mining Plan

An open pit mining plan for the development and removal of a bulk sample of 6200 tons of material has been prepared by L. Cote, P.Eng. The bulk sample would be removed from the site for milling at the Golden Giant Mill of Battle Mountain Canada Limited at Hemlo. A total of 1200 tons of waste rock would be produced from the pit as part of the bulk sampling process. Figures 5 and 6 illustrate the proposed pit, which would be 60 metres long, a maximum of 10 metres wide and up to 10 metres deep.

The entire operation of the project will be by contractor, with no permanent facilities constructed at the site and any temporary facilities required by the contractor removed at the end of the project. The duration of site activities is expected to be six weeks from start to finish. No explosive or fuel storage is planned at the site and the contractor will provide for his requirements on a daily basis. The Contractor will be expected to comply with best environmental practices for this type of work and keep the site clean at all times.

Operation will be by conventional surface mining equipment i.e.: air-track, backhoe and truck. Haulage will be by conventional highway trucking equipment.

Ore material will be stockpiled in an area south of the pit for removal to the milling site. Waste rock will be used to create a berm around the pit to prevent inadvertent access. The berm will be approximately 1.5 metres high and protect all areas of the pit deeper than 3 metres. The berm will consume all of the waste rock to be produced and no separate, waste rock storage area will be created. The berm will be located 10 metres back from the toe of the pit.

Garbage generated during the operation will be disposed of at the Magino Mine landfill site 15 km to the west of the project site or another approved site. Portable toilet facilities will be provided as required by the contractor.

Disposal of oil and grease from equipment maintenance will be the responsibility of the contractor. Spill prevention and clean-up will be the responsibility of the contractor.

0 9. o O

Sketch #1; Surface main and drill holes location of the Markes zone

^I^SSf ̂ *^.i,? : '- '.* ^/?^??^^-]j^^Jl^jlj^,- ~'~^l -" -"'. T ' --"^ T^"""""1*" "•'

^ll!|f^|*:if*?

so/?;(2.

FIGURE 6

2.22230

JJ J J J

4.0 Closure

This section details closure measures to be undertaken at each stage of closure.

4.1 Temporary Suspension—————————*—————-—————*———————— f-

Upon completion of the bulk sampling program the site will move into a state of temporary suspension. At this point in time all of the contractor's equipment will have been removed from the site. All ore material will have been removed from the site to the mill and no stockpiles will remain. The berm around the pit opening will remain in place to prevent inadvertent access. This berm is set back from the toe of the pit a sufficient distance to allow for any potential instability in the pit walls. There is no indication that instability will develop and the rock appears massive and solid. The ramp into the pit will be blocked with waste rock. Signs will be posted in visible locations warning of the presence of the pit. The road leading to the pit will be ditched and bermed to discourage access and warning signs posted.

Since ongoing exploration activities are planned for the Markes Zone and other zones on the property routine inspections of the site to ensure closure measures are still in place will be performed.

4.2 Inactivity

Additional closure measures beyond those outlined for Temporary Suspension are not expected to be required for a state of Inactivity.

At this time inspections will be reduced to semi-annually to ensure closure measures are remaining in place.

4.3 Closed Out

Final closure of the site will only take place when a decision has been made to abandon the project and not continue further exploration or production.

The pit will be partially filled and graded to a stable slope leaving a depression of less than 2 metres with sides at an angle less than the angle of repose of gravel. This will be accomplished by pushing the waste rock berm into the pit and filling the remainder of the pit with locally available sand and gravel. A total of 1500 cubic metres of gravel should be adequate for this purpose.

The road to the site will be scoured and left to vegetate naturally. The road base is silt with a high content of organic matter and is not expected to require fertilization to grow in quickly.

4.4 Cost to Close-out

The cost to close out the site is estimated as follows:

Haul sand and gravel and dump 1500 cu.m @ S 3.00 Push Waste rock Berm into Pit l day @ S 500 Supervision

Total S

2. 222 30

4,500.00500.00500.00

5,000.00

Pele Mountain will enter into discussions with the Ministry of Northern Development and Mines regarding the posting of Financial Assurance.

JJJ J J J

1 /•"

JJ J J \

APPENDIX 1

NEWSPAPER AD

1l l l

3

ll

lose a lotmore chan

your licencedrinking

anddriving.

Supperttag local prelects InailBbalcflDtext

Coif1-800-5656-t/SCw/fri your pledge today

56 SporW S/reef. Ottawa. ONKIP 5B1

ran MOUNTAIN RESOURCES

Pele Mountain To Mine Bulk SamplePele Mountain Resources Inc. is planning to mine a Bulk Sample of up lo 10,000 tonnes of gold ore, under the Mining Act of Ontario, from its 10Q9fc owned Markes Zone. The Bulk Sample will be mined from an open pit and processed at Battle Mountain's Golden Giant Mill, at Hemlo pending MOE approvals. The project is scheduled to begin during October 1999 and to be completed within two months. The property is located near the Goudrcau Lochalsh road past the Edwards Mine. A public information session will be held at OSS1, Lot 16, Main Street. Lochalsh from 2:00 - 6:00 p.m. on August 27. 1999. Company personnel will be available to answer any questions.

JACOBSON TWP.Tf^TJM3 l i

1?1J"- Jk. l

^ Oa

J J

ii^j i*- ""' " -V^V" "" ". — .._..i .....^ \ ' i N B l A i

For funher information, please contact:Alan Shefsky, President

Pele Mountain Resources Inc.20 Richmond Street East, Suite 212

Toronto, Ontario M5C2R9Phone: (416)368-7224www.pelemountain.com

Canadian Dealing Network symbol: PELE

Discovering Ontario's Golden Heritage

of the world on the the single colour, g trates the single territi by UPU, permittinc flow of mail." The ei inspired by Rene Marceau's turn-of-t sculpture depicting fi1

At some point in oui tistics show tha Canadians will experif threatening critical illn be cancer, a heart atte or one of a number o In fact, the chances of a major illness are f now than in the pa; advances in medical helping us live longer.

A critical illness is harmful to your h( lifestyle, it can have a impact on your family' affairs. In fact, a long ness could place a gre; burden on your (am you are sick, and possi to work, you may costs for private he home care, special treatments or eve: retraining. These co: addition to your regi expenses.

Many people rely or insurance to assist th cially during a prolong But this insurance v benefits if you are st work. Even when i work, your policy's may not come into some time.

To ensure adequate p more and more Cane opting for critical illn ance. This type of : which has been av. Canada since 1996, i lump sum payment short time of the diag critical health conditioi less of your ability to working. Critical ill™ ance is available on it sometimes as a ridt insurance or disability policies.

Here's how critic, insurance works:

ALGOMA NEWS REVIEW August 18,1999

222 30 ll l l l

APPENDIX 2

l l

CLAIM MAP AND LISTING

l l l

SSM 11b4272

l.oughtin

l63754

'llSl \ 835963 ! S '865944,8*5945 S ' '

toV

toto to

JACOBSON TWP.

164268 ! 1164269.

"""'V ' '^r"*V ' tr .\tlL ,Jr^5f^.—''^

( ' . ' ,' . ^r'rv.gf'*'^'" l "1M13../- - — ''-- -'-L - -.-'-^a-

:1..1ai-8072

' -V 121.8073^\ l o 1 '1 '-^'" ' I1B38JI ^.jl—. — -tL^——-!-r- -

11R.1RR7 ' ;-'V

RIGGS TWP.

j Mining Lands - Mining Claims Client Report2223

Page 1 of 3

Mining Lands - Mining Claims Client Report

Sault Ste. Marie - Division 50

1J]JJ J111]lJ] ]]]

CLIENT: 302937 - PELE MOUNTAIN RESOURCES INC.

TOWNSHIP 1AREA

JACOBSON

JACOBSON

JACOBSON

JACOBSON

JACOBSON

JACOBSON

JACOBSON

JACOBSON

JACOBSON

RIGGS

RIGGS

RIGGS

Claim Number

SSM 1163305

SSM 1163415

SSM 1163754

SSM 1164272

SSM 1174694

SSM 1174695

SSM 1218002

Recording Date

1994- DEC-131994- DEC-301995- OCT- 191997- JAN-301994- DEC-071994- DEC-071997- FEB-07

SSM 1997- 1218068 APR-23

SSM 1999- 1229923 JAN-25

SSM 1163306

SSM 1164264

SSM 1164265

1996- DEC- 131996- DEC- 131996- DEC- 13

Claim Due Date

2001- DEC-132001- DEC-302001- OCT- 192001- JAN- 302007- DEC-072002- DEC-072001- FEB- 072000- APR- 232001- JAN- 252001- DEC- 132002- DEC- 132000- DEC- 13

Stall

A

A

A

A

A

A

A

A

A

A

A

A

JS Percent Work Total— Option Required Applied

100 07oN

1000XnN

100 07oN

100 07oN

100o/nN

100 '/oN

100 07oN

100 07oN

100 07oN

100 07oN

100 D7oN

100 07oN

1600

400

2400

4800

2400

400

1200

800

1200

3200

400

3200

8000

2000

9600

9600

26400

2400

2400

800

0

9600

1600

6400

TotalReserve

0

0

0

0

176310

4314

0

0

0

0

0

0

Claim Bank

n

0

0

0

0

0

0

0

0

0

0

0

•j Mining Lands - Mining Claims Client Report ?. . "'^'Page 2 of 3

J] ]]]]]]]]] ]]JJJ]1

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

RIGGS

SSM IJ33D ~ ^uuu-11 64266 ?EC- DEC- A

13 13SSM l 996' 2000-11 64267 ?EC- DEC- A

13 13SSM i996- 2000-11 64268 ?EC- DEC- A

13 13SSM i! 996- 2000-11 64269 ?EC- DEC- A

13 13SSM 1997- 2001 -11 64274 F-EB-07^p- A

SSM 1997- 20QD1 - 1218001 FEB-07[jp- A

SSM 1997- 2^0D1 -1218012 FEB-07^p- A

SSM 1997- 2001 -1218013 FEB-07^p- A

SSM 1997- 2000- 1218014 FEB-07™" A

SSM 1997- 20 QJ- 1218015FEB-07[jp- A

SSM 1997- 2 0̂-1218016 FEB-07^p- A

SSM 1997- 2000- A1218069 JUL-04 JUL-04 ASSM 1997- 19"- 121 8072 OCT- OCT- A

SSM ;997- I 9"- 1218073 OCT- OCT- A

SSM X997- 19"-

SSM i9c9T7: ^T9: A

100 07oN

100 07oN

100 07oN

100 07oN

10007oN

100 07oN

10007oN

10007oN

100 07o N

100 . 07oN -

10007oN

10007oN

100 07oN

100 07oN

100 07oN

100

400

1200

400

1200

3600

400

1200

800

400

400

1942

98

4800

1600

2400

A r\r\

9200 0

9600 0

9200 0

132000

7200 0

800 0

2400 0

1600 0

2000 0

800 0

7658 0

702 0

0 0

0 0

0 0

r\ o

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

O O

o 222 3U] - .Mining Lands - Mining Claims Client Report * ' Paqe 3 of 3

RIGGS

M. 1 RIGGS

•i RIGGS

"| RIGGS

1223014 06

SSM 1997-1 229807 yp'-

UbSSM 1997-1230143 "P1'

UbSSM I"7- 12301 46 ?CCT-

Ub

06 A 07oN 400 0 0 0

1999-OCT- A 100 1200 0 0 0 06 /o N u

1999-

?6CT- A y?N BOO o o o .1999- OCT- A 100 800 0 0 0QQ /O IN

1 " — — — — —— —— —- — — —— SM— ——razx—i^. _ .^ 1 Back 1 Main Monn 1 M;,-.;r,~ i ^-j- i

-i

© Copyright 1998 Queen's Printer for Ontario

This information is provided as a public service, but we cannot guarantee that the information is current or accurate. Readers should verify the information before acting on it.

2*2 S

l Pele Mountain Resources Inc.

Crown Patents (Mining Properties) in the Township of Jacobson (Twp. 48)

] District of Algoma Land Titles Office of Sault Ste. Marie, Ontario

Claim Number Parcel Number Crown Patent No. Acreage

J SSM2231 - 1452 A3644 36.570

~j SSM2232 1452 A3645 53.620

SSM2233 1452 A3646 36.950

J

J

J

J

J

Pele Mountain Resources Inc.CriMvii Lease - I'ulcnlcil Mining t 'hiims in TiMviisliips ol Jacobson :uul Higgs

District ol Algnma ,S:!iill Sic. Mill le jMinitm Division. Ontario

CmwiiLeascseaeltdalcilMay.il. I'J'JI 'l eini --!2 l yeais bom .hine I.JV9I anil Registcicd August Id, 1991

2.222 30

L'l' = Lund Registry Ullicc lin l lie l.ami MM = Mining l Ji vision. Mining l,amis Sect ion.Titles Division uf Algoma (No. l J, Ministry Dl'Nuilhcin Development and Mines Sault Ste. Marie, Ontario

Claim Number

SSM 537496

SSM 537498

SSM 539871

SSM 539872

SSM 539873

SSM 539874

SSM 539875

SSM 539876

SSM 539877

SSM 539878

SSM 539879

SSM 53988U

SSM 539KKI

SSM 539882

I'M rt

Parts 1 and 6U

Part 2

I'ail 3

1'ait 4

1'ail 5

Tart 6

I'ait 7

1'ail 8

I'aiiy

Tail 1U

I'm l 1 1

I'art 12

I'ail 13

I'ail 14

Clan

IR-SDlo

IK-8UIG

IR-SDIt,

IR-Stllu

IK-Kl)l()

lil-8UI(i

IK-KlHo

IK-80 It.

IR-8()I()

IK-8UU)

IK-Hl)l(,

IR-H()I(.

IR-KUhi

IK-HUh.

I'aiLL-l Niiniher

1821)

1821

IK22

182.1

IK24

1825

IX2d

1827

1828

1829,

IK.H)

I8.H

IK32

183.1

'1 invn.slii|)

.laetibson it Riggs

jacobsun

.laeiibsdii

.hiculisnn

jaeuhsiin

Jacolison

.hietibson

Jacobson

Jacobson

Jacobson

Jacobson

Jacobson

Jacobson

Jacobson

Lease Uc^isti aliiiii Number

177446 i L'l') IU6273 (MD)

1 77447 (LT) l()(.274 (Ml J j

I7744X (L'\') IU6275 (MU)

177-149 iL'l") ll)()27t. (MU)

I7745U i L'l') IU(.277 (MIJ)

177451 (LT) 101)278 (MD)

177452 IL'I) 106279 (MIJ)

177453 ILTJ 106280 (ML))

177454 (LT) 106281 (MIJ)

1 77455 (LT) 106282 (MU)

177456 (L'l) 106283 (MU)

177457 (LT) IU6284 (MU)

177458 (LT) 1 06285 (MU)

177459(1/1) IU()2X(. (MU)

Acreage

30.650

4U.3(iO

OO.U7U

70.2X0

42.530

25.700

09.090

11 I.73U

30.620

3 1 .090

38.000

48.150

50.270

XI.3.H)

Tali

1

2

3

4

5

d

7

8

y

1U

n

12

U

14

UDMAM-I IIU(

. T

x O

l

1J

1

1

1T

J

1

1

J

1

1

1

J

1

JJ

j

l

J

Claim Number

SSM 539883

SSM 539884

SSM 539885

SSM 539880

SSM 539887

SSM 539888

SSM 539889

SSM 539890

SSM 543090

SSM 543091

SSM 568074

SSM 568075

SSM 5825 II

SSM 5825 12

SSM 5825 13

SSM 582514

Pail

Pail15

Pail16

Pail17

Pails18 and61

Pails19 and56

'arts20 and57

'arts21 and58

'ails22 and59

'ails23,44,45,46,49, 50,51.52,53,54and 55

Pail24

'ails25, 40and 41

'ail

26

Pail27

Purl28

'ail

29

'ail

Phut

IK-8016

IK-8010

IK-8010

IK-8010

IK-8010

IK-8010

IK-8016

K-8010

K-8016

K-8010

IK-8016

K-8016

K-8010

K-8016

K-8016

K-8016

Pan-elNumber

1834

18.15

I83o

I8.1/

18.18

1839

1840

841

842

843

844

845

84o

1847

848

849

Ton iisluj)

Jacobson

Jacobson

Jacobson

Jacobsonit Kiggs

Jacobsonit Kiggs

Jacobsonit Kiggs

Jacobsontt Kiggs

Jacobson

. acobson

. acobson

Kiyys

Kigys

Jacobson

. acobson

. acobson

. acobson

LeaseKegislraliiiiiNumber

1 77460 (LT)106287 (MU)

I774ol (LI)106288 (MU)

177402 (LT)I00289(MU)

I774o.l (LI )100290 (MU)

177404 (LT)100291 (MU)

177465 (LT)01*292 (MU)

77466 (LT)06293 (Ml;)

77467 (LT)100294 (MU)

77468 (LT)100295 (MU)

77409 (LT)06296 (MU)

1 77470 (LT)06297 (MU)

77471 (LT)106298 (MU)

77472 (LT)1 06299 (MU)

77473 (LT)06300 (MU)

77474 (LT)106301 (MU)

77475 (LT)

Acreage

33.420

53.580

00.990

J.V.MO

40.210

37.500

49.320

43.440

53.170

37.440

26.990

40.700

31.1 10

27.560

31.31 0

37.800

Tab

15

li.

17

KS

19

211

21

22

2.1

24

25

2 O

27

28

29

311

l

l l l l 1

Claim Number

SSM 582515

SSM582516

SSM 582517

SSM 582518

SSM 60U904

SSM 600910

SSM 612548

SSM 6 12549

SSM 612550

Part

Part 31

Tart32

Pail33

Tail 34

Pails 35,42, 43,47 and 48

Part 36

Parts 37 and62

Part 38

Part 39

I'lan

IK-8016

Ik-80 lo

Ik-8016

Ik-80 K)

Ik-8016

Ik-80 K)

Ik-8016

Ik-8016

Ik-8010

Parcel Number

1850

1851

1852

1853

1854

1855

1856

1857

1858

Township

Jacobson

Jacobson

Jacobson

Jacobson

Jacobson

Jacobson

Jacobsonit kiggS

kiggs

Riggs

Lease Registration Number

1 77476 (LTj 106303 (MD)

1 77477 (LT) I0()304 (MD)

177478 (LT) 106305 (MD)

177479 (LT) 106306 (MD)

1774X0 (LT) 106307 (MD)

177481 (LT) 106308 (MD)

1 77482 (LT) 1U6309(MDJ

177483 (LT) 106310 (MD)

177484 (LT) 10631 1 (MD)

TOTAL ACREAGE

Acreage

33.930

3 1 .950

36.250

30.970

60.940

41.450

34.540

23.400

45.010

1717.39

Tab

31

32

33

34

35

36

37

38

39

3

j 2.222301 l l .1

l

l

APPENDIX 3

- WEATHER INFORMATION

TEMPERATURE AND PRECIPITATION

KAVA, OHTAfilO

Hean Daily Temperature ( C)

Hean Dally Max. Tenp.

Hean Dally Hln. Teip.

Extreme Max. Temp.

Extreme Hln. Temp.

Hean Rainfall (ma)

Hean Snowfall (en)

Hean Total Precip. (ma)

Greatest 24 hour Rainfall (mn)

JAN PSB HAR APH HAY JUH JUL AUU SBP OCT NOV DEC YEAR

-H.I -12.4 -7.1 1.4 8.2 13.4 15.6 15.2 10.9 5.7 -2.2 -10.3 2.0

-9.2 -7.0 -1.8 5.9 13.2 18.5 20.3 19.7 15.2 9.2 1.2 -5.9 6.6

-18.9 -17.7 -12.3 -3.1 3.1 8.2 10.8 10.7 6.5 2.1 -5.5 -H.5 -2.6

6.7 8.9 20.0 27.2 26.7 29.4 31.1 31.1 31.1 25.0 19.4 14.4 31.1

-38.9 -41.1 -33.3 -23.3 -8.9 -3.9 -3.3 0.0 -5.0 -12.2 -27.2 -34.4 41.1

2.6 5.2 13.6 50.8 82.3 84.2 84.2 103.2 112.5 77.6 40.2 12.4 668.8

61.6 52.5 43.1 13.3 4.5 O O O 0.4 9.0 39.5 54.1 278.0

61.4 55.9 57.5 63.1 88.8 84.2 84.2 103.2 113.8 88.0 79.7 66.1 945.9

20.3 29.2 25.4 43.2 75.7 52.8 51.6 56.4 61.0 76.2 100.3 48.0 100.3

'Reference (21: Canadian Climate Normals, Volumes, 2, 3 and 5, 1951 - 1980, Environment Canada, Atmospheric environment Service.

LJC.]

l i

i i

222 30

APPENDIX 4

ACID BASE ACCOUNTING

1.ii j jj i

l l l 1

i*.'.

XRAL XRAL LaboratoriesA Division of SGS Canada Inc.

Work Order: 056087 Date: 17/08/99 FINAL Page l of l

Element. Method. Det.Lim. Units.

AP NNP NP pH S(T) S(S04) S 2CH133A CH133A CH133A CH133A CH133A CH133A CH133A

0.1 0.1 0.1 0.01 0.01 0.1 0.1tCaCO3 tCaCO3 tCaCO3 Vo Vo Ve

2069207020712072 *Dup 2069

2.2O.I3001742.8

* + 141t + 33.2*-264.*-69.2

*4-137.

1433328105141

8.158.245.928.248.15

0.100.1710.15.700.11

O.I0.20.70.1

0.1

0.1O.I9.45.6

O.I

© SGS Member of the SGS Group (Societe Generate de Surveillance)

l

J

Sample number

2069

2070

2071

2072

Location

5m south of 98-5

1m east of 98-5

3m south of 98-6

98-19

Description

Basalt. Iron Carbonate. Chlorite. 207o biotite. Traces Pyrite

Felsic dike. Iron Carbonate. 207o biotite. Traces pyrrhotite -t- pyriteIron formation: gossanous basalt containing massive sulphide. Most of it is pyrite. Minor chalcopyrite * sphalerite.

20"7o bedded pyrrhotite +

Ore: 50 07o iron carbonatized basalt + 5007o quart breccia containing IQ-15% pyrite and 2 07o tourmaline.

J J JJ

1 2.22230

1 l l lJ

|;]

APPENDIX 5

WATER QUALITY ANALYSIS

J ]

Near North Laboratories Inc.

c- , o .-, O. t....' . i '

STATEMENT OF ANALYTICAL RESULTS

J

l

J l l l

dent:Contact:Address:

Pele Mountain ResourcesAlan ShefakySuite 21 220 Richmond Street EastToronto, ONM5C2R9

Project:Dale Sampled:Sampled By:Date Received:Report Dale:Status:Report*1 ;

MarKeaJuly 24. 1999S. MlotJuly 26, 1069August 16, 1999Final0090676,0670

Preparation: All sample* were processed In accordance lo the recommendations of -Standard Method* for the Examination of Water and Wastewatef, AWWA, 16th Ed. and Ontario Ministry of the Environment and Energy protocols.

Notes: TOS denotes Total Dissolved Solids; TSS denotes Total Suspended

BwKla MoUy Prloto, Director

LAB*: DATE SAMPLED. DATE RECEIVED: DESCRIPTION.

AlkalinityAmmoniaConductivitycyanide. TotalrUrdnetsOH 4. Of ease. TotalPHPhosphorous, TotalSulfateTD6TS8AluminumCadmiumCalciumCopperIronLeadMagnaalurnMolybdenumNickelZincArsenicMercury

99G0676 July 24, 1999 July 20, 1999

SW1

820.06186

cO.00578^

7.220.037

*11069

0.050.0001

28.70.0029

0.05O.0002

1.48O.002O.02

0.0010.0001

99O0679 July 24, 1999 Jury 20, 1999

SW2

500.0991

O.00546*1

7.630.006^602

0.05O.0001

15.50.00090.10

O.00021.61

O.002*0.02K0.01O.0010.0001

Unlta

mg/Lmg/L

uS/cmZmg/Lmg/Lmg/L

-mgfl.man.mg/Lmg/Lmg/Lmg/Lmg/Lmj/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/Lmg/L

Method of Analysis

mrsUonphotometric

meterprobe

coloulaltonsolvent exirscUon

probephotometricturbWirrutrtogravimetricgravimetric

ICPgrapnue fumac*

ICPgraphite furnace

ICPgraphite furnace

ICPICPICP

atomic absorptionhydride

cold vapour

Method Detection

Unit

(mm)1

0.031

0.00511-

0.0061

101

0.010.00010.03

0.00050.02

0.00020.010.0020.020.01

0.0010.0001

ENVIRONMENTAL TESTING SERVICESCACAL Accredited for Specific Environmental Analyses

Unii 11-191 Booth Road, RR#5, North Bay, Omario PI A 4K3 Phone (705) 497-0550 Fnx (705) 497-0549

ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Work Report Summary

Transaction No: W0150.30905 Status: APPROVED

Recording Date: 2001-OCT-15 Work Done from: 1999-SEP-07

Approval Date: 2002-JAN-30 to: 2000-NOV-01

Client(s):

302937 PELE MOUNTAIN RESOURCES INC.

Survey Type(s):

ASSAY BULK OREHAB PSTRIP

Work Report Details:

Claim*

G 5000204

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

SSM

1163306

1163754

1164266

1164267

1164268

1164269

1164274

1218012

1218013

1218016

1230143

1235237

1235242

1235243

1235246

1235437

Perform

3600,275

SO

SO

SO

SO

SO

sososoSO

sosoSO

sosososo

5600,275

External Credits:

Perform Approve

S436,196

SO

SO

SO

SO

SO

SO

SO

SO

soSO

SO

sosoSO

soso

S436.196

SO

Applied

SO

S3.200

81,600

S1.200

81,200

S400

S800

S3.600

81,200

S800

54,800

S800

54,800

81,600

54,800

54,800

S400

536,000

Applied Approve

SO

53,200

51,600

51,200

81,200

S400

8800

53,600

51,200

S800

54,800

S800

54,800

81,600

54,800

S4.800

S400

536,000

Assign

536,000

SO

50

SO

SO

SO

SO

SO

50

SO

SO

SO

SO

SO

50

SO

50

536,000

Assign Approve

36,000

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

0

536,000

Reserve

5564,275

SO

SO

50

SO

SO

SO

SO

SO

SO

SO

SO

SO

SO

sososo

5564,275

Reserve Approve

5400,196

SO

SO

50

SO

SO

SO

SO

SO

50

50

SO

50

SO

SO

SO

SO

5400,196

Due Date

2003-DEC-13

2003-OCT-1 9

2003-DEC-13

2003-DEC-13

2003-DEC-13

2003-DEC-13

2003-FEB-07

2003-FEB-07

2003-FEB-07

2003-FEB-07

2003-OCT-06

2003-FEB-18

2003-FEB-18

2003-FEB-18

2003-FEB-18

2003-FEB-18

Reserve:3400, 1 96 Reserve of Work

(58,

S391

Report*: W0 150. 30905

800) Applied by W0250.00272 2002-FEB-14

,396 Total Remaining

Status of claim is based on information currently on record.

42C08SW2021 2.22230 JACOBSON 900

2002-Feb-21 10:47 Armstrong-d Page 1 of 1

Ministry ofNorthern Developmentand Mines

Date: 2002-FEB-14

Ministere duDeveloppement du Nord et des Mines Ontario

GEOSCIENCE ASSESSMENT OFFICE 933 RAMSEY LAKE ROAD, 6th FLOOR SUDBURY, ONTARIO P3E6B5

PELE MOUNTAIN RESOURCES INC. 2200 YONGE STREET #1002 TORONTO, ONTARIO M4S 2C6 CANADA

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

Dear Sir or Madam

Submission Number: 2.22230 Transaction Number(s): W0150.30905

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.

The assessment credit is being reduced by S164,079.00. The TOTAL VALUE of assessment credit allowed, based on the information provided in this submission, is S436,196.00.

If you have any question regarding this correspondence, please contact LUCILLE JEROME by email at [email protected] or by phone at (705) 670-5858.

Yours Sincerely,

Ron GashinskiSenior Manager, Mining Lands Section

Cc: Resident Geologist

Pele Mountain Resources Inc. (Claim Holder)

Assessment File Library

Pele Mountain Resources Inc. (Assessment Office)

Visit our website at http://www.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:16843

no

M M

SotdEfl

K) O O

MINING LAND TENURE

MAP

Data /Time of Issue No* 20 2001

TOWNSHIP/AREA

JACOBSON

14:03h Eastern

PLAN

M-1583

ADMINISTRATIVE DISTRICTS /DIVISIONSMining Division Sault Ste. MarieLand Titles/Registry Division ALGOMA

Ministry of Natural R*iourc*i District WAWA

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&^^iSijJifkiitiaUii^i!!LAND TENURE WITHDRAWALS

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LAND TENURE WITHDRAWAL DESCRIPTIONS

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