Report On

Helicopter Airborne Magnetic Survey -Geophysical Compilation and Interpretation with

Recommendations for Field Investigation

BLOCK 7(New Liskeard Property)

Northern Ontario

On behalf ofMetalex Ventures Inc.

February 16,2005

RECEIVEDFEB 2 1 ?.OC5

GEOSCIENCE ASSESSMENT ______OFFICE______

ByPolk Geological Services

31M12NW2001 2.29308 BEAUCHAMP 010

TABLE OF CONTENTS

INTRODUCTION..........................................................................................^

1 SURVEY AREA............................................................................................ 2

2 GEOLOGY...................................................................................................^

3 GEOPHYSICAL SURVEY............................................................................ 3

3.1 EQUIPMENT............................................................................................. 3

3.2 PERSONNEL............................................................................................ 5

3.3 AIRCRAFT ................................................................................................5

4 GEOPHYSICAL COMPILATION.................................................................. 5

5 GEOPHYSICAL INTERPRETATION AND RECOMMENDATIONS............. 5

INTRODUCTION

In February of 2005, Scott Hogg A Associates Ltd. carried out a helicopter-borne magnetic survey of the New Liskeard Property in Northern Ontario on behalf of Metalex Ventures Inc. The flight operations were carried out between February 11 and 13, 2005. The data acquisition, compilation and investigative recommendations are the subject of this report.

1 SURVEY AREA

The New Liskeard property is located some 20 kms NW of the Town of New Liskeard, On. (nee. Temiscaming Shores) as illustrated in Figure 1. The fully contiguous property lies within the Townships of Bryce, Beauchamp, Cane and Henwood, all within the Larder Lake Mining Division. For the purposes of the airborne the property is known as Block 7. The survey consisted of 721 line kilometers of actual survey. A flight-line spacing of 50 meters was used. The claims within the survey area are as follows

Beauchamp TWP3000365300036630003803000381300038230081073008108

Bryce TWP300038530103363010337301033830159983017372

Cane TWP30003843000386

Henwood TWP3000383

FIGURE 2 - CLAIMS

BEAUCHAMP TWP

TOWNSHIP f AREA BEAUCHAMP

PLAN H-C412

ADHIKISTIUTIVE DISTRICTS l DIVISIONS

Ljnd TMn/R^riry Oivmon UnMry of Natural RHCHKCM DMrici

TMBKAMtHG KIRKlJVffi LAKE

E S 0

LAND TENURE WITHDRAWAL OESCRIPTIOKS

L MOI tf* ran tt

MANITOBA XS

X X

; ONTARIO

Property 3010336

Norman McBride Dr. John Pollock, , P.O. Bax 2529 H 7 Wellington St., Nor*

Notre-Dome-du-NorJ, Quebec JOZ 380 New liskeard, Ontario POJ l POTel: (81 9) 723-2420 W: (705) 647-8833Fax:(819)723-2860 Fax: (705) 447-7026

Figure l. Project location map

2 GEOLOGY

Regional and General Geology of the Bryce Township Area

The regional geology of the area is dominated by the contact between the Southern Province of the Canadian Shield composed of Huronian supergroup sedimentary rocks and the Superior Province of the Canadian Shield with archean metavolcanics and the large Round Lake Batholith. The Bryce Township claims themselves are covered by a large kame terrace associated with a recessional moraine. The few bedrock exposures on or near the claims suggest the claims are underlain by Gowganda Formation sedimentary rocks of the Huronian supergroup and intermediate to felsic archean metavolcanic rocks. These are both intruded by a prominent early proterozoic Nipissing diabase sill on the southern edge of the claims and associated north trending dikes. The primary structural feature in the area is the Northwest trending Cross Lake fault (associated with the Timiskaming Rift Valley) that bisects the claim block. This fault is visible on topographic maps and air photographs. Historically kimberlite pipes have been spatially associated with this fault in Bucke, Firstbrook and Hudson townships. Kimberlite pipes have also been associated with a large Nipissing diabase sill in Lundy and Klock Townships that seems to control kimberlite emplacement probably from a central feeder to the north. The kimberlite magma probably migrated to mid-crustal depths along common conduits with the Nipissing diabase and subsequent deflection of kimberlite magma by multiple massive diabase sills combining with north trending crustal faults controlled the final diatreme emplacement on surface. The Nipissing diabase sill on the southern edge of the claims in Bryce Twp. represents the northern edge of the same diabase basin structure that is present in Lundy Township and is essentially a mirror image of that environment.

3 GEOPHYSICAL SURVEY

3,1 EQUIPMENT

The geophysical and ancillary equipment was provided by Flux Geophysics Ltd.

(a) Geophysical Data Acquisition System

A DL-DAS data acquisition system was used for data collection. The system was interfaced with a Glonass GPS, KMAG4 four channel magnetometer counter, a KANA8 eight channel A-D converter and two PC-1O4 uServer computers. One of the computers was used for navigation, the other to handle collection, integration and recording of the data to internal hard drives and /or Compact Flash memory cards.

Digital data string includes Fiducial, Magnetometer clock, GPS pluse, QPS time, Magnetometer. Analog inputs to the A-D converter included the radar altimeter. All data timing and synchronization was to within 0.05 seconds.

(b) Airborne Magnetometer

The magnetometer was a Scintrex CS-2 cesium sensor operated in strap down mode. The measurement range of the magnetometer was 15,000 nT to 100,000 nT with a peak to peak noise envelope of 0.002 nT in the 0.01 to 1 Hz bandwidth.

(c) Base Station

A portable computer was operated as a base station collecting data from a Scintrex CS-2 sensor and a Novatel12 channel GPS receiver. The base station was operated in an area of low magnetic gradient, as free from cultural noise as possible. The sensitivity of the ground magnetometer was 0.001 nT at a sampling interval of 1.0 sec. GPS and magnetic data was recorded continuously throughout the survey flights in digital form. Both the ground and airborne magnetic readings were automatically time stamped with GPS time to within 0.05 seconds.

(d) Altimeter

A Terra 3000 radar altimeter was mounted inside the magnetometer bird. The precision of the altimeter was +/-0.3 meter.

(e) Electronic Navigation

Survey navigation was provided by a DL-NAV navigation system. The system consists of the DL-NAV software running on one of the DL-DAS computers which received positioning information and raw range data from a Novatel Glonass dual frequency 12 channel GPS. The antenna was mounted on the magnetometer bird. Cross track steering information was provided to the pilot via a plasma l dot matrix display.

The raw data was used with the base station GPS data for post flight differential corrections that provide a typical accuracy in the 3 to 5 m. range. The GPS receiver also provided a GPS pulse, time and position to the DAS program.

(f) Flight Video System

The ground track of the aircraft was monitored by a color video camera mounted in the aircraft. The ground track was recorded on standard 8mm video tape. The video had the acquisition system fiducial, flight number, job number, GPS time and latitude and longitude position continuously recorded on the image.

3.2 PERSONNEL

The Geophysical equipment was installed and operated by Syed Shaw of Flux Geophysics. The helicopter pilot was Joel Breton of Abitibi Helicopters Ltd.

3.3 AIRCRAPT

The helicopter was a Bell 206B, owned and operated by Abitibi Helicopters Ltd.

4 GEOPHYSICAL COMPILATION

The data was reviewed for completeness and quality on site by the survey operator. The radar altimeter was calibrated prior to the commencement of thesurvey by flying at several fixed altitudes. The raw radar data was plotted againstthe corrected G PS altitude to determine the conversion factor from raw volts to meters. The GF'S data was differentially corrected and the base station magnetic record was merged with the airborne profile database prior to transmitting the data to the offiQe of Scott Hogg b Associates in Toronto.

The magnetic profile data was corrected for diurnal variation by subtraction of the base station profile and reference to the magnetic differences at the tie lines. The corrected profile data was gridded using the SI-GRID technique developed by Scott Hogg A Associates. The system is designed to provide a map with optimum clarity and detail in areas of geological and geophysical complexity.

Contour maps i)f the magnetic total field were produced and presented together with flight lines and claim boundaries.

5 GEOPHYSICAL INTERPRETATION AND RECOMMENDATIONS

The magnetic anomalies mapped by the survey are believed to be associated with intermediate to mafic volcanic rocks, surrounded by sedimentary rock. The possibility exist^ that some of the smaller, circular, more isolated anomalies may be associated with kimberlite pipes.

Magnetic modelling of the anomalies is suggested. If a steeply dipping source of reasonable width and depth extent and moderate to low susceptibility is confirmed ground investigation is recommended to identify a potential kimberlite source.

ONTARIO MINISTRY OF NORTHERN DEVELOPMENT AND MINES

Work Report Summary

Transaction No: W0580.00282

Recording Date: 2005-FEB-17

Approval Date: 2005-MAR-03

Client(s):

166487 MCBRIDE, NORMAN J.

301410 POLLOCK, JOHN W.

Survey Type(s):

AMAG

Work Report Details:

Claim* Perform

L 3000365

L 3000366

L 3000380

L 3000381

L 3000383

L 3000384

L 3000385

L 3000386

L 3008107

L 3008108

L 3010336

L 3010337

L 3010338

L 3015998

L 3017372

External Credits:

Reserve:

S514

32,055

32,055

31,028

3514

31,541

32,055

31,027

32,055

32,055

32,055

31,541

3514

31,541

32,055

322,605

Perform Approve

3514

32,055

32,055

31,028

3514

31,541

32,055

31,027

32,055

32,055

32,055

31,541

3514

31,541

32,055

322,605

30

Applied

SO

SO

sosososososososo

36,400

34,800

31,600

SO

SO

312,800

39,805 Reserve of Work

39,805 Total Remaining

Status: APPROVED

Work Done from: 2005-FEB-1 1

to: 2005-FEB-13

Applied Approve

SO

30

SO

30

30

30

30

SO

30

SO

36,400

54,800

51,600

SO

SO

312,800

Assign

3470

32,055

52,055

SO

SO

SO

32,055

SO

32,055

52,055

SO

SO

SO

SO

52,055

312,800

Assign Approve

470

2,055

2,055

0

0

0

2,055

0

2,055

2,055

0

0

0

0

2,055

512,800

Reserve

S44

SO

SO

S1.028

S514

51,541

SO

51,027

SO

SO

52,055

S1.541

5514

S1,541

so

59,805

Reserve Approve Quo Date

544 2006-JUL-14

SO 2006-JUL-14

SO 2006-MAY-07

S1.028 2006-MAY-07

3514 2006-MAY-07

31,541 2006-MAY-07

SO 2006-MAY-07

S1.027 2006-MAY-07

50 2005-AUG-25

SO 2005-AUG-25

S2.055 2006-FEB-18

31,541 2006-APR-01

3514 2006-APR-01

51,541 2005-AUG-25

SO 2006-SEP-17

39,805

Report*: W0580.00282

Status of claim is based on information currently on record.

31M12NW2001 2.29308 BEAUCHAMP 900

2005-Mar-10 11:45 ARMSTRONG! Page 1 of 1

Mil Jstry ofNorthern Developmentand Mines

Date: 2005-MAR-03

Ministere duDeveloppement du Nord et des Mines Ontario

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

JOHN W. POLLOCK 17 WELLINGTON STREET NORTH NEW LISKEARD, ONTARIO POJ 1PO CANADA

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

Dear Sir or Madam

Submission Number: 2.29308 Transaction Number(s): W0580.00282

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.

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

Yours Sincerely,

/P.Ron Gashinski

Senior Manager, Mining Lands Section

Cc: Resident Geologist

Norman J. Mcbride (Claim Holder)

Assessment File Library

Brian Kenneth Polk (Agent)

John W. Pollock (Claim Holder)

John W. Pollock (Assessment Office)

Visit our website at http://vwvw.gov.on.ca/MNDM/LANDS/mlsmnpge.htm Page: 1 Correspondence 10:20413

ONTMIIOCANADA

MHtlSTKV OP NORTHERN DEVELOPMENT AND MINES

PROVINCIAL MINING RECORDERS OFFICE

Mining Land Tenure Map

UTM Zona 17 ioOOmgrld

f Northern Development and Mines for additional General Information and Limitations determination purposes as the information Contact Information:

information may also be obtained through the

F downloading from the Ministry of Northern

This map may not sriow unregistered land tenure and interests inTolt Free Map Datum: NAD 83 ' an(* including certain patents, leases, easements, right of ways,

Provincial Mining Recorders' Office Tel: 1 (888) 415-9*45 ext 57*toiectlon: UTM (6 degree) flooding rights, licences, or other forms of disposition of rights and Willet Green Miller Centre 933 Ramsay Lake Road Fax: 1 (877) 670-1444 Topographic Data Source: Land Information Ontario interest from the Crown. Also certain land tenure and land uses Sudbury ON P3E 6B5 Mining Land Tenure Source: Provincial Mining Recorders' Office that restrict or prohibit free entry to stake mining daims may not be Home Page: www.mndm.8Ov.on.ca/MNDM/MINES/LANDS/rolsmnpge.htm illustrated.

Date / Time of Issue: Fri Mar 04 10:11:31 EST 2005

TOWNSHIP l AREA PLAN BRYCE M-0282

ADMINISTRATIVE DISTRICTS 7 DIVISIONS

Mining DivisionLand Titles/Registry DivisionMinistry of Natural Resources District

Larder Lake TIMISKAMING KIRKLAND LAKE

TOPOGRAPHIC

i l Administrative Boundaries

: Township

Concession, Lot

QO Provincial PartiiCa

KJj Indian Reserve

i"": Cliff, Pit li Pila

n

A

Contour

Mine Shafts

Mine Haadfmme

Raflway

Road

Trail

Natural Gas Pipeline

Utilities

Tower

Land Tenure

Freehold Patent

r^l Surfaco And Mining Rights

. . Surface Right) Only

( n Mining RigMs Only

LeasohoW Patent

m Surface And Mining FBuriU

("J,! Surfseo Rights Only

ra "j Mining Rights Only

Licence of Occupation

Fin Uses Not Opeciflad

[ Surface And Mining Rights

! Surface Rights Only

E3

12*4567

1234567

Mining Rights Only

Land Uno Permit

Order In Council (Not open for Making)

Water Powar Leasa Agreement

Mining Cfaim

Fitad Only Mining Claims

LAND TENURi WITHDRAWALS

i 1234 l Areas Withdrawn from Disposition

Mining Acts Withdrawal TypaaWsm Surface Ann Mining mpw* ffHhOfawn Ws Surface Righto Oty WrtrKfrawnWm Mining Righto Only Withdrawn

Oder In Council Withdrawal Types W" B Mi Surface And Mining Rights Withdrawn W" 8 Surface Rights Only Withdrawn W'rn Mnfng RKjMs Only Withdrawn

Ns i IMPORTANT NOTICES

tail* 1:40(01

LAND TENURE WITHDRAWAL DESCRIPTIONS

43434366

44114419

Type

Wsm W em

4426 WsCon Reserve WsmW-LL-C1613 Wsm

Jan 1, 2001 Jan 1. 2001

Jan 1, 2001

Jan 1, 2001 Jan 1 , 2001

Jan 1, 2001 Apr 3, 2001 Aug 31. 2001

Description

S.R.O. WITHDRAWN FROM STAKING SEC.42 MQ.ACT FILE 31283400 FEET SURFACE RIGHTS RESERVATION AROUND ALL LAKES t,RIVERS400 FT SURFACE RIGHTS RESERVATION ALONG THE SHORES OF ALLLAKES S RIVERSAPRESERVED FOR THE ONTARIO NORTHLAND RAILWAY FOR BALLASTPITS.R.O. WITHDRAWN FROM STAKING SEC.42 MG.ACT FILE 31283Bryce And Cane Township Wetland Lacustrine Conservation Reserveo href*" http://www.mndm.oov.on.

-01613-99 26/04/00 M+S Notice: area is now regulated as Con. Res. consult Recorder's Office for new boundary as It goes beyond this Withdrawal

31M12NW2001 2.29308 BEAUCHAMP 200

Oo(N

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570000 570500 571000 571500 572000-80-2'

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570500 571000 571500 572000 572500 573000 573500 574000 574500-80'3' -8002'

575000 575500o" r 576000-80" 576500

-79*59'

Survey Flown By: Flux Geophysics Ltd.

February 11-13, 2005

-N

200Scale 1:10000

200 400 600

metres NADS3 /UTM erne 17N

Contour Intervals: 10,50 and 250 nT

Met a le x Ventures Ltd.

Helimag Survey New Liskeard, Ontario

Total Magnetic Field

Scott Hogg 8c Associates LtdGeophysical Services

shageophysics.com

31M12NW2001 2.29308 BEAUCHAMP 210

-80'4'

570000-SO 0 ?'

574000 574500-80'

575000 575500-79"59'

576000 576500

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575000 575500 576000-80T -80' 576500

Survey Flown By: Flux Geophysics Ltd.

February 11-13, 2005

\

-N

200

Scale 1:10000O 200 400 600

NADS3/UTM zone 17N

Contour Intervals: 0.1, 0.5 and 2.5 nT/m

Metalex Ventures Ltd.

Helimag Survey New Liskeard, Ontario

Calculated Vertical Derivative

Scott Hogg 8c Associates LtdGeophysical Services

shageophysics.com

31M12NW2001 2.29308 BEAUCHAMP 220