FIRST YEAR ASSESSMENT REPORT ON

MINERAL LICENSE 15639M

(PROSPECTING AND COMPILATION)

IN THE CHAPEL COVE AREA

OF THE AVALON PENNISULA

NTS 001N/05 & 001N/12

NEWFOUNDLAND AND LABRADOR

BY DENIS F. WALSH, P.Geo.

and KEVIN RYAN

For

KEVIN RYAN (LICENSE HOLDER)

TABLE OF CONTENTS

INTRODUCTION 1

LOCATION, ACCESS, and PHYSIOGRAPHY 1

STATUS OF LICENSE and ADJACENT PROPERTIES 4

LOCAL RESOURCES 4

REGIONAL GEOLOGY 5

LOCAL GEOLOGY 5

CHEMICAL AND PHYSICAL PROPERTIES AND

DEFINITIONS OF LIMESTONES 8

MINERAL POTENTIAL and PAST WORK 9

WORK DONE 11

DISCUSSION 18

RECCOMENDATIONS 19

PERSONNEL EMPLOYED AND EXPENDITURES 20

REFERENCES and INTERNET LINKS 21

APPENDIX A LICENSE INQUIRY

APPENDIX B PHYSICAL and CHEMICAL PROPERTIES and

DEFINITIONS OF LIMESTONES

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INTRODUCTION

Kevin Ryan has map staked 8 mineral exploration claims on license 15639M. The property is being

explored for chemical grade limestone potential as a metallurgical reagent at the processing facility for

nickel presently under construction at Long Harbour, Newfoundland, just a few kilometres south of

Chapel Arm, on Placentia Bay. Mr. Ryan has engaged the services of Denis F. Walsh, P.Geo. to compile

this report in order to meet the requirements for the year assessment credits on the license.

LOCATION, ACCESS and PHYSIOGRAPHY

The property is located near the southeast corner of Trinity Bay within 5 kilometers of the coast. A

section of the abandoned road which connected communities in Trinity Bay and Conception Bay to St.

John’s runs from the present TransCanada Highway through the middle of the property to Chapel Arm.

This road is passable in a vehicle with a high wheel base, four wheel drive or all terrain vehicle is

preferable. An able bodied person should be able to traverse the property in a matter of a few hours

and should also be walk from either the TransCanada Highway in the southeast or outside Chapel Arm

in the northwest to perform assessment work on the claims.

The property is on the west side of a hill which slopes gently towards Trinity Bay in the north west. The

east side of the license is covered by a boggy area and the rest of the property is drained by a couple of

small streams which flow into Trinity Bay.

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LICENSE 15639M IS ALONG THE SLOPE UNDERNEATH THE FAINTLY VISIBLE TRANSMISSION

LINE. THE PROMINENT RIDGE IN THE BACK IS THE MORE RESISTANT MUSGRAVETOWN GROUP WHICH

UNDERLIES THAT SMITH POINT FORMATION (LIMESTONE)

Newfoundland

Kevin Ryan - Spread Eagle

1000 50

kilometers

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1L11I

Lic. 015639MLic. 015639MLic. 015639MLic. 015639MLic. 015639MLic. 015639MLic. 015639MLic. 015639MLic. 015639M

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St John's

Figure 1: Location Map

Date: Oct. 25, 2009Scale 1:3,250,000UTM Zone 21, NAD 27

Lic. 015639M (1N/05&12)

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STATUS OF LICENSE and ADJACENT PROPERTIES

The property is held 100% by Kevin Ryan with no encumbrances’ that the authors are aware of. The

license inquiry report in Appendix A shows the status of the license as of 4 October 2009 and Figure 2

shows the license boundaries on the topographic map. The work reported on here will maintain the

property in good stead until past the first anniversary date of the license.

TABLE 1 STATUS OF PROPERTY (as of 28 Oct 2009)

Licnese # Owner Date Issued Date Report

Required

Expenditures

Required

Expenditures

This Report

Excess

Expenditures

15639M Kevin Ryan 12 Dec 2008 12 Feb 2010 $1,600 $3,457 $1,857

Ivan Mesher holds license 14341M consisting of 14 claims to the north of Kevin Ryan’s property. The

first year assessment report has been accepted for Mr. Mesher’s property and the second year work is

required for Dec 2009, with the report due in Feb 2010.

LOCAL RESOURCES

St. John`s, the capitol of Newfoundland, is approximately 110 kilometers east of property and all the

necessary supplies can be purchased there. Additional items can be purchased locally as required on a

day by day basis, (i.e. from truck stops, restaurants, convenience stores, and local hardware stores.

21

kilometers0

NTS 1N/05 & 12

Lic. 015639M

Kevin Ryan - Spread Eagle

Figure 2: Topography

UTM Zone 22, NAD 27

Date: Oct 26, 2009Scale 1:50,000

5265000N5265000N5265000N5265000N5265000N5265000N5265000N5265000N5265000N30

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REGIONAL GEOLOGY

The Avalon Zone is the easternmost tectonostratigraphic terrain of the Appalachian Orogen exposed in

Newfoundland. In general, the geology consists of a sequence of Late Proterozoic volcanic and

associated sedimentary rocks overlain by both marine and continental sedimentary rocks of late

Proterozoic age. Intrusive rocks in the Avalon Zone range in age from Late Precambrian (e.g. Holyrood

granite) to Carboniferous (e.g. St. Lawrence granite) and in composition from granitic to gabbroic.

LOCAL GEOLOGY

The property is underlain by lower to middle Cambrian Adeytown Group consisting of a sequence of

red, green, and grey shales and slates with interbedded pink, green and grey limestone. Overlying the

Adeytown Group are grey, green, to black silty micaeous shale, slate, and siltstone with calcareous

concretions of the Harcourt Group. Within the Adeytown Group is the Smith Point Formation, - it is

generally between 6 and 15 m and is of dull, pinkish red, thin to fairly thick-bedded limestone. The

Smith Point limestone consists of a massive pink algal limestone in the lower part and pink limestone

alternating with crenulated laminae and thin beds of deep red argillite in the upper section. The reader

is referred to Map 88-01 (King 1988) for details of Avalon Geology.

Figure 3 shows the disposition of the Cambrian beds in the Trinity Bay area with the pink line

representing the important Smith Point Formation. As can be seen the Cambrian beds are folded into a

syncline centred on Chapel Arm with steeply dipping limbs.

Date: Oct 29, 2009

UTM Zone 22, NAD 27

Kevin Ryan - Spread Eagle

Scale: 1:165,000

NTS 1N/05&12

Figure 3: GeologyLic. 015639M

2.5 5

kilometers0

Chap

el A

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Tickle

Bay

Dild

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SpreadEagleBayPl

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NTS 1N/05NTS 1N/12

015639M

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Legend

3 - Smith Point Formation: Pink limestone.

2 - Adeytown Group: Red and green shale with thin limeston interbeds.

1 - Harcourt Group: Grey, green, black micaeous shale minor siltstone & limestone concretions.

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CHEMICAL AND PHYSICAL PROPERTIES AND DEFINITIONS OF LIMESTONES

Chemical and physical properties and definitions of various limestones are given in appendix 2 of this

report as extracted from Report 74-2 of Degrace.

LIMESTONE USES (extracted from various sources on the Internet.)

The physical and chemical properties and widespread distribution make limestone and dolomite so useful

that in 1987 more than 764 mt (840 million tons) of these minerals were produced in the United States.

They were produced in 46 of the 50 states and ranked second to sand and gravel in total tonnage.

About 75% of the land surface of the world is sedimentary rock, and limestone and dolomite compose

about 20% of that area. Limestone and dolomite are exposed near the surface on all continents and range

from Precambrian to Recent in age. Reserves are so large that the numbers become meaningless, but

these reserves are not always where they are needed. For some uses, such as aggregates, other materials

can substitute for limestone and dolomite, but, for uses requiring certain chemical properties, substitution

may not be viable. (from SME Limestone by Carr)

The following is from a Mineral Factsheet issued by the British Geological Survey in 2006.

Limestone is an important raw material and it is often said to be the world's most versatile min-

eral. It has a wide variety of applications, but its primary use is in the construction industry

where it is the principal source of crushed rock aggregate. It is also an essential raw material for

cement manufacture and a source of building stone. Industrial limestone is a commercial term for

limestone used for non-constructional purposes, where its chemical properties or degree of

whiteness are important. Limestone used for industrial purposes accounts for a relatively small

but important proportion of total limestone output (about 9%).

Industrial limestone is an important raw material

• in iron and steel making, glass manufacture, sugar refining, and numerous chemical

processes, notably the manufacture of soda ash (sodium carbonate).

• It is also used as a mineral filler in paper, paints, plastics, rubbers, pharmaceuticals and

cosmetics, and in agricultural and environmental applications. In these industrial appli-

cations, limestone (or lime, derived from the calcination or 'burning' of limestone) may be

used either as a chemically reactive raw material ('chemical stone'), or as an inert filler or

pigment ('limestone powder'). For almost all of these applications, the limestone must

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have a high chemical purity. Most markets for industrial limestone are mature markets

or are shrinking due to the decline in manufacturing.

• Growth areas for limestone (or lime) are in environmental applications and in water and

effluent treatment and pollution control. A particularly important market for high

purity limestone, which has emerged in the last 10 years, is flue- gas desulphurisation.

This involves the removal of sulphur dioxide contained in the flue gases at coal fired

power stations, in a water based slurry of finely ground limestone. Gypsum is produced

as a by-product (see factsheet on Gypsum from BGS).

• More recently granulated limestone has been applied to acid producing effluent from sulphide

mine production, and the hydrometallurgical process proposed at Long Harbour by Vale Inco

for the Voisey’s Bay concentrate will require lime to neutralized the waste from that facility.

From various flow sheets published on hydrometallurical processes of sulfidic ores it appears

gypsum would be a by-product at Long Harbour.

MINERAL POTENTIAL and PAST WORK

All of the limestone deposits around Trinity Bay belong to the Smith Point Formation of Lower Cambrian age.

In general, they are impure and of fairly low tonnage. In the past, a few of the deposits underwent minor

quarrying for local agricultural purposes, but no commercial operations are known to have used them as a

resource.

Dale (1915) refers to the deposits at Smith Sound in his paper on the Cambrian manganese deposits of

Conception and Trinity Bays. Most of the deposits were described in some detail by Bogert (1939) and

discussions of some or all of the deposits were included in reports of the Geological Survey of Canada by

Hutchinson (1953, 1962), Jenness (1963), and McCartney (1967).

Degrace (1974) completed the only comprehensive review of limestone occurrences in Newfoundland

including those of eastern Newfoundland and reviewed work on the Trinity Bay limestone occurrences.

Bogert completed a comprehensive report on the limestone beds in Trinity Bay in 1939. Among the

uses he considered for limestones were as building stones, for road construction, as a fillers the

manufacture of Portland cement and rock wool, as blast furnace fluxes, as a neutralizer for agricultural

purposes

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Bogert first mentions of the Smith Point Limestone as potentially of economic importance to the local

area, not so much because of the large amounts of the unit at any one place, but rather due to the

numerous localities where it is well exposed. (from MODS001N/12/Lst006 )

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WORK DONE

Kevin Ryan and Denis Walsh traversed the property along the old road to ascertain the location and

structural aspect of the limestone beds as recorded in the Mineral Occurrence Database System.

TABLE 3 DATAPOINTS COLLECTED DURING TRAVERSE ALONG ROADWAY SOUTH SIDE OF LICENSE 15639M (KEVIN RYAN)

Stn #

EAST (m)

NORTH (m) COMMENTS STRIK DIP

ELEVATION (meters)

110 299,744 5,265,137 Station on road north west of license 15639M

69

111 300,313 5,264,310

Red shaley limestone shattered along less than 1 cm thick cleavage planes strike 340

dip 62 deg SW

67

112 300,451 5,264,378

Same as above however more massive with noidules up to 2 cm, grey siltstone interbedded continues ~ 50 meters up slope 360 vert

80

113 300,636 5,264,222 corner of bridge 88

114 300,532 5,264,321 photo of outcrop southside of roadway

89

115 300,984 5,263,661

Red shale & grey siltstone fracturiing in siltstone at 070 deg (see photo) 350 vertical

94

116 301,273 5,263,029 north transmission line 110

117 301,355 5,262,863 south transmission line 127

118 301,507 5,262,579 approximate southeast corner of License

121

119 303,166 5,260,078 creek crossing roadway 81

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Near vertical beds of limestone at location #114 (300,532E; 5,264,321N)

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Fracture red and grey interbedded shale and siltstone at location 115.

(300,984E; 5,263,661N)

The Mineral Occurrence Database System (MODS) was reviewed and all limestone occurrences from the

database are listed in table 3 with tonnage potentials and analytical data documented.

Total Limestone Mineral Occurrences- 90 Stratigraphic Unit Estimate (tonnes) SiO2 R2O3 CaO MgO Fe2O3 Al2O3 MnO S LOI

1 001K/13/Lst001 Showing Beckford HD Smith Point Formation 39.9 7 27.9 1

2 001K/13/Lst002 Showing North Red Cove Chamberlains Brook 10.81 37.24 7.5 6.66 2.8 0.18

14.96 27.96 10.26 6.39 8.87 0.17

15.96 30.66 9.61 6.23 5.78 0.18

3 001L/16/Lst001 Showing Point Lance Smith Point Formation 270,000 50 to 70 combined with SiO2 <1

4 001L/16/Lst002 Showing Muskrat Bk Smith Point Formation 36,000 34.2 low

5 001L/16/Lst003 Showing Green Hills Smith Point Formation 72,000 50%

6 001L/16/Lst004 Showing St. Brides Smith Point Formation 3,510,000 50%

7 001L/16/Lst005 Showing Cuslett Point Smith Point Formation 45,000 57.7

8 001L/16/Lst006 Showing East Cuslett Smith Point Formation 144,000 50

9 001M/03/Lst001 Prospect Whale Cove Pardy Island Formation 181,400 5.24 29.1 19.07 1.14 2.3

2.1 34.66 16.85 0.39 1.07

5.9 2.8 39.8 9.5

8.9 3.2 36.3 10.4

10 001M/05/Lst001 Indication White Point Cinq Isle Formation

11 001M/05/Lst002 Indication Little Bay Head Cinq Isle Formation

12 001M/12/Lst001 Showing Wreck Cove Cinq Isle Formation 12.2 84.29 (CO3) 0.65 1.3

13 001M/16/Lst001 Showing North Harbour LS # 1 Bonavista Formation

14 001M/16/Lst002 Showing North Harbour LS # 2 Bonavista Formation 100,000

15 001N/11/Lst001 Showing Brigus Smith Point Formation 8.46 44.32 3.62 1.03 2.8 0.61 0.23

16 001N/11/Lst002 Prospect Cavendish Smith Point Formation 140,760 27.42 66.4 2.12

19.25 38.9 0.84

17 001N/12/Lst001 Indication Green's Harbour Head Smith Point Formation

18 001N/12/Lst002 Indication Hopeall Island Smith Point Formation

19 001N/12/Lst003 Indication Hopeall Bay Smith Point Formation

20 001N/12/Lst004 Indication Spread Eagle Bay Smith Point Formation

21 001N/12/Lst005 Indication Spread Eagle South Smith Point Formation

22 001N/12/Lst006 Indication Chapel Arm SE Smith Point Formation

23 001N/12/Lst007 Showing Long Cove Smith Point Formation 90,000 13.7 42.1 1.06

23.6 32.9

24 001N/12/Lst008 Indication Thornlea Smith Point Formation

Total Limestone Mineral Occurrences- 90 Stratigraphic Unit Estimate (tonnes) SiO2 R2O3 CaO MgO Fe2O3 Al2O3 MnO S LOI

25 001N/13/Lst001 Indication South McKay island Smith Point Formation

26 001N/13/Lst002 Showing Come-By-Chance Smith Point Formation 500 60.7

41.7

27 001N/13/Lst003 Indication Sunnyside Smith Point Formation

28 001N/14/Lst001 Prospect Islington Smith Point Formation 133,900 17.2 40.1 0.86

27.4 63.5 2.12

29 001N/14/Lst002 Showing Hearts Delight North Smith Point Formation 187,650 15.9 73.94 2.83

4-22% 65-78

14.75 42 0.03

30 002C/04/Lst001 Prospect Clifton Smith Point Formation 90,000 16.1 41.1 0.7 3.67

31 002C/04/Lst002 Prospect Petley Smith Point Formation 90,000 35.2 33.8 1.4

32 002C/04/Lst003 Showing Adeytown Smith Point Formation 16.25 39.3 0.77 3.6

33 002C/04/Lst004 Prospect Smith Point Limestone Smith Point Formation 270,000 18.07 31.6 36 1.1 4.49

39.4 0.84

34 002C/05/Lst001 Showing Morley's Siding Smith Point Formation 26.9 38 1.8

14.8 42.3 0.9

35 002D/12/Lst001 Indication Peter Joe River No data

36 002E/05/Lst001 Indication Gull Island West Shoal Arm Formation

37 002E/05/Lst002 Past Producer Duck Island Sops Head Complex Note: recrystallized limestone

38 002E/05/Lst003 Indication Pretty Island Roberts Arm Group

39 002E/06/Lst001 Indication Hummock Island Boones Point Complex

40 002E/10/Lst001 Past Producer Cobbs Arm Main Quarry Cobbs Arm Limestone180,000 production 2,000,000 tons reserves Note

production to AND Grand Falls>95%

41 002E/10/Lst002 Prospect Cobbs Arm Rogers Pond Cobbs Arm Limestone 96.3

42 002E/10/Lst003 Developed Cobbs Arm Causeway Cobbs Arm Limestone 150,000 to 270,000 97.7

43 002E/10/Lst004 Developed Cobbs Arm NE Cobbs Arm Limestone 290000 to 408,150 tonnes 97

44 002E/10/Lst005 Showing Rogers Cove Cobbs Arm Limestone 90,000 tons (see MODS) ~55 %

45 002E/10/Lst006 Showing Muddy Cove Cobbs Arm Limestone insufficient for quarrying (see MODS) ~55%

46 002E/10/Lst007 Indication Cottles Bay Cobbs Arm Limestone 80,000 high quality

47 002E/11/Lst001 Indication Green Island Boones Point Complex

48 002E/12/Lst001 Showing Lushs Bight Parson Pond Formation 4.88 48.41 2.03 2.09 0.09

49 002E/12/Lst002 Indication Limestone Island Long Tickle Formation

Total Limestone Mineral Occurrences- 90 Stratigraphic Unit Estimate (tonnes) SiO2 R2O3 CaO MgO Fe2O3 Al2O3 MnO S LOI

50 002M/04/Lst001 Showing Little Spring Isalnd Table Head Group 400,000 2.1 53.4 1.2

51 002M/05/Lst001 Indication North Brent Island St. George Group

52 002M/12/Lst001 Showing Cook's harbour Table Head Group 6 million to 2 billion tons 2.1 0.3 53.1 1.1

53 002M/12/Lst002 Showing Burnt Island Table Head Group 70 million to 400 million tons 1.1 0.1 54.2 1.1 43.9

54 011P/09/Lst001 Indication Goblin Head Limestone Baie d'Espoir Group

55 012A/09/Lst001 Prospect Noel Paul's Steady North Pine Falls Formation see MODS

56 012A/09/Lst002 Prospect Tally Pond Limestone Pine Falls Formation 30,000 see MODS

57 012A/13/Lst001 Producer North Star Cement Quarry #1Corner Brook Formation (St.

Georges Group)4,040,103 tons (production 1952 to 1986) 1.8 52.2 1.9 P2O3 0.5 %

58 012A/13/Lst002 Past Producer (Dormant) North Star Cement Quarry #2Corner Brook Formation (St.

Georges Group)combined with above 2 0.17 54.5 1

59 012A/13/Lst003 Past Producer (Dormant) Dormston Quarry Table Head Group15,000 to 20,000 annual for sulfide pulp

(Bowaters)

60 012A/13/Lst004 Past Producer (Dormant) Junction Quarry Hughes Brook Formation St.

Georges Group

6,500 annual over 17 years for sulfide pulp

(Bowaters)2.07 42.41 10.75 0.03 0.11 0.03

61 012A/13/Lst005 Past Producer (Dormant) Leonard House QuarryCorner Brook Formation (St.

Georges Group)25,500 ton/year

62 012B/02/Lst001 Indication N Grand Codroy River Codroy Group

63 012B/02/Lst002 Showing Cartyville Woodville Formation 18.9 10.4 35.5 3

64 012B/07/Lst001 Indication Fischells Station Ship Cove Formation Agricultural use Impure

65 012B/09/Lst001 Indication Fox island River St. George Group

66 012B/09/Lst002 Indication Blanche Brook St. George Group

67 012B/10/Lst001 Developed Prospect North Port au Port Table Head Group 180 million ton 2 0.6 50 1

68 012B/10/Lst002 Past Producer Aguathuna West Brook Quarry White Hills Unit St. George Group 1.18 4.84 50.33 3.9 43.26

0.66 52.48 2.19 0.07 0.22 0.03

69 012B/10/Lst003 Past Producer (Dormant) East and west Quarries Pigeon Head Unit 10 million ton (1959 to 1962) see MODS 1.76 1.1 51.82 1.95 43.22

1.64 1.05 51.88 2.2 42.39

70 012B/10/Lst004 Prospect Cambell's Creek Pigeon Head Unit 2.43 49.14 3.2 0.15 0.46 1.03

71 012B/10/Lst005 Developed Prospect Piccadilly Humber Arm Super Group 400 million ton to 45 metres depth see MODS 0.7 53.75 0.82 0.12 0.28 0.05

72 012B/10/Lst006 Prospect North of Lourdes Long Point Group No Estimates see MODS for analyses

73 012B/11/Lst001 Past Producer (Dormant) Lower Sheaves Cove Pigeon Head Unit 700 million tons see analyses in MODS

74 012B/11/Lst002 Developed North Sheaves Cove White Hills Unit St. George Group 368 million tons see analyses in MODS

75 012B/11/Lst003 Developed North de Grau St. George Group 200 million tons see analyses in MODS 1.95 52.8 0.58 0.13 0.27 0.02

76 012B/11/Lst004 Prospect Lourdes Southwest Long Point Group

77 012B/16/Lst001 Indication Georges Lake Humber Arm Table Head Group

78 012H/03/Lst001 Past Producer (Dormant) Cormack Quarry St. George Group see MODS for production and analyses

Total Limestone Mineral Occurrences- 90 Stratigraphic Unit Estimate (tonnes) SiO2 R2O3 CaO MgO Fe2O3 Al2O3 MnO S LOI

79 012H/11/Lst001 Showing Taylor PondDoucers Formation Coney Arm

Group2.68 51.66 1.24 0.23 0.64 0.04

80 012H/12/Lst001 Showing Neddy Harbour St. George Group 5.3 0.6 49 1.9

10.3 0.9 46.7 2.5

4.6 0.5 49.7 1.7

9.5 1 38.5 9.2

81 012H/13/Lst001 Past Producer (Dormant) Parsons Pond Hill Cow Head Group 5 million 7.97 89 TNP? 47.7 1.66

82 012H/13/Lst002 Developed Prospect Broom Point Cow Head Group 600,000 tons

83 012H/13/Lst003 Past Producer Cow Head Cow Head Group 35 million 30.9 ~2.3 26.3 5.12 2.24 5.6 25.42

84 012H/15/Lst001 Developed Prospect Coney Arm Coney Arm Group 32 million tonnes ave 97% CaCO3 & 1.2 % MgO 0.72 54.42 0.57 0.19 0.22 43.29 (CO2)

85 012H/15/Lst002 Indication Jackson's Arm Pond Coney Arm Group

86 012I/05/Lst001 Indication Bellburns St. George Group at least 100 million tons (see MODS for analyses)

87 012I/14/Lst001 Prospect Menhir Point Table Head Group 689 milion tonnes 3.8 0.6 50.8 1.6

3 2.4 49 2.1

88 012P/08/Lst001 Showing Hare Island Table Head Group 9,144,000 tonnes 1.1 0.4 54.1 0.6

89 012P/08/Lst002 Indication Blanch Point (Hare Bay) Table Head Group

90 013A/09/Lst001 Indication PHS No data

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DISCUSSION

• Limestone has many industrial uses and applications.

• The Chapel Arm Deposit is located in an area with developed infrastructure; (transportation,

communications, manpower, etc.

• The deposit is located near the Long Harbour Vale Inco Hydro-Met Smelter currently being

constructed.

• Does the deposit’s Limestone Grade meet the requirements for use in smelting? During research

for this report the writers were unable to ascertain the chemical specifications for limestone used

for such processes

• Examination of the geological map in this report shows that only a small portion of the license is

underlain by Smith Point Formation limestone on the west side of the property, The remainder of

the property is underlain by Precambrian which are unlikely to be calcareous. However, there is a

limestone occurrence on license 14341M

• Is there enough deposit reserve estimated at (300,000 tonnes) make it viable? Tonnages and CaO

grades of various limestone occurrences from the MODS files indicate large tonnages and higher

quality limestone are located in the carbonate platforms of western Newfoundland.

• If yes, a work option agreement should be sought with interested parties.

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RECOMMENDATIONS

• Ascertain the quantity and quality of limestone required at the Long Harbour plant to neutralize

the effluent.

• Determine the grade of CaO2 and the available tonnage in the Smith Point Formation at the

Spreadeagle occurrences and determine how much of the occurrence has been staked either by

Kevin Ryan or others.

• If any of the available resource is still available for staking and if the above recommendations are

positive, at that time additional staking should be undertaken.

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TABLE 4 Personnel Employed and Expenditures

Name Duties Expenditures

Kevin Ryan Field visits and reviewed report (4 days @ $100/d) $400

Denis F. Walsh Field visits and compilation of report (5 days @ $500) $2,500

Peter Bruce Prepare Maps $50

$100 Vechicle, gas, and meals to Spreadeagle

Sub Total $3,050

Plus 15 % $457

TOTAL $ 3,507

Year 1 requirements $1,600

Excess expenditures $1,857

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REFERENCES and INTERNET LINKS

Bogert, J C.

1939: Limestone deposits of Trinity Bay, Newfoundland. Unpublished report

[GSB# 001N/14/0015]

Carr, Donald D.

Date unknown. Industrial Minerals Richard H. Olson, Edwin H. Bentzen, III, and Gordon C.

Presley, Editors 2.10.11. Limestone and Dolomite by Donald D. Carr

DeGrace, J. R.

1974 Limestone Resources of Newfoundland and Labrador

King, A.F.

1988 Geology of the Avalon Penninsula, Newfoundland (parts of 1K, 1L, 1M, 1N, and 2C)

Newfoundland Department of Mines, Mineral Development Division Map 88-01

Links to useful documents pertaining to lime and limestone.

http://books.smenet.org/Surf_Min_2ndEd/sm-ch02-sc10-ss11-bod.cfm from Industrial Mineral volume of

Society of Mining Engineers

http://www.google.ca/search?hl=en&num=100&q=Limestone+Factsheet+BGS&btnG=Search&meta=&aq=f&oq=

Useful summary of limestone from British Geological Survey.

http://www.nrcan.gc.ca/mms-smm/busi-indu/cmy-amc/content/2005/34.pdf

Lime report From Mineral Yearbook of Natural Resources Canada

http://www.nrcan.gc.ca/mms-smm/busi-indu/cmy-amc/content/2005/56.pdf

Stone report From Mineral Yearbook of Natural Resources Canada

APPENDIX A

LICENSE INQUIRY

Mineral Rights Inquiry Report

Natural Resources

Government Home Search Contact Us

Geological Survey

Last Updated: 2008/12/15

Licence Number: 015639M

File Number: 775:0006

Original Holder: Ryan, Kevin

Licence Holder: Ryan, Kevin

Address: 15 Hopedale Crescent

St. John's, NL

Canada, A1B 0B3

Licence Status: Issued

Location: Spread Eagle,Avalon Peninsula

Electoral Dist.: 22 Bellevue

Recorded Date: 2008/11/12

Issuance Date: 2008/12/12

Renewal Date: 2013/12/12

Report Due Date: 2010/02/10

Org. No. Claims: 8.0000

Cur. No. Claims: 8.0000

Recording Fee: $80.00

Receipt(s): 56553197 (2008/11/12) $80.00

Deposit Amount: $400.00

Deposit: 56553197 (2008/11/12) $400.00

Map Sheet No(s): 01N/05 01N/12

Comments:

Mapped Claim Description:

Beginning at the Northeast corner of the herein described parcel of land, and said corner having

UTM coordinates of 5 264 500 N, 301 500 E; of Zone 22; thence South 2,000 metres, thence West

500 metres, thence North 500 metres, thence West 500 metres, thence North 1,000 metres, thence

West 500 metres, thence North 500 metres, thence East 1,500 metres to the point of beginning. All

bearings are referred to the UTM grid, Zone 22. NAD27.

Land Claims (effective 2005/12/01):

LISA: 0.00% LIL: 0.00% VBP: 0.00% Crown: 100.00%

Extensions: None

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10/28/2009file://C:\Users\Donna\Desktop\Mineral Rights Inquiry Report.htm

Work Reports: None

$1,600.00 to be expended on this license by 2009/12/12

Licence Transfers: None

Partial Surrenders: None

This Licence replaces Licence Number(s): None

This Licence is replaced by Licence Number(s): None

Work Report Descriptions: None

Detailed breakdown of projected required expenditure:

Actual Year Actual Expenditure Work Year Excess Expenditure Claims

1 $0.00

1 -$1,600.00 8.0000

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APPENDIX B

CHEMICAL AND PHYSICAL PROPERTIES AND DEFINITIONS OF LIMESTONE(from Degrace 1974)

23

CHEMICAL AND PHYSICAL PROPERTIES

AND DEFINITIONS OF LIMESTONE(from Degrace 1974)

From the point of view of a potential consumer, limestone deposits are of interest not so much for their geological significance as for their structure, composition, size (tonnage) and accessibility; these are the factors which concern this report.

Structure includes the present attitude of a deposit and the extent to which it has been folded and faulted. The attitudes of joint sets in the rock are also important as these affect the behaviour of the stone when blasted. Composition refers to the nature and proportions of the various physical and chemical constituents of the stone, and to such physical variables as bedding and porosity. The size of a deposit is, of course, not only governed by geological factors, but also by practical considerations such as reasonable maximum depths of quarrying. Accessibility includes-in addition to the major consideration of distances to potential markets-such local factors as the presence or absence of natural harbours, or potential problems in road-building.

The chemical constraints on the definitions of carbonate rocks for industrial purposes are arbitrary. Pure high-calcium limestone is composed entirely of calcium carbonate (CaCO3), but natural limestones are never that pure. For practical purposes, a rock of 97 to 99 per cent CaCO3 by weight with 1 to 3 per cent impurities is considered high calcium stone. Similarly, pure dolomite (54.3 per cent CaCO3 and 45.7 per cent MgCO3) is practically non-existent, and 40 to 44 per cent MgCO3 is considered to be a high-purity stone.

More often than not the chemical compositions of carbonate rocks, like all rocks, are stated in terms of weight per cent of oxide constituents. Carbonates may be recalculated as oxides or vice versa as follows:

1% CaO is equivalent to 1.78% CaCO3

1% MgO is equivalent to 2.09% MgCO3

1% CaCO3 is equivalent to 0.560% Ca0

1% MgCO3 is equivalent to 0.478% MgO

The most common impurities in limestones are silica (Si02) as quartz or silicate minerals, aluminum (usually in silicate minerals) and iron (as oxides, sulphides, carbonates and silicates). Sulphur and phosphorus, while generally present only in minute quantities, are nevertheless important negative considerations for some limestone uses. Impurities are frequently summarized as Si02 and R203. The latter abbreviation represents all impurities not directly accounted for in the analysis, and is usually aluminum oxide with some iron oxides and very low percentages of other impurities.

Loss on ignition (L.O.I.) is often included with those analyses done by wet-chemical means and refers to the total weight per cent of carbon dioxide (CO2) and water (H20) evolved when the sample is calcined before analysis.

For the purposes of this report, all analytical results stated are given in terms of weight percent. Analyses were done at various laboratories, at different times and by a number of different techniques.

24

Most of the results could not be checked, and the analyses are therefore presented without comment as to analytical methods or accuracy. Where sampling procedure and the extent of investigation of a deposit have been such that the analytical techniques used are of real concern, these are stated to the extent that they are known.

Terms used in this report which require definition are listed as follows (after Boynton, 1966, except where otherwise stated):

Argillaceous limestone is an impure type of limestone, containing considerable clay or shale, and as a result, has a relatively high silica and alumina content.

Cementstone is an impure limestone, usually argillaceous, possessing the ideal balance of silica, alumina, and calcium carbonate needed for portland cement manufacture. When calcined it produces a hydraulic cementing material.

Dolomitic limestone contains considerable magnesium carbonate. Pure dolomite stone contains a ratio of 40 to 44 per cent MgCO3 to 54 percent CaCO3. The term is more loosely used, however, so that any carbonate rock containing 20 per cent or more MgCO3 is regarded as "dolomite". It varies in purity, hardness and colour.

Fossiliferous limestone is a very general term denoting any carbonate stone in which fossil content is visually evident.

High-calcium limestone is a general term for stone comprised largely of calcium carbonate with not much magnesium carbonate (only 2 to 5 percent, depending on the point of view). It occurs in varying degrees of purity.

Hydrated lime is a dry powder obtained by hydrating quicklime with enough water to satisfy its chemical affinity, forming a hydroxide due to its chemically combined water. It may be high-calcium, magnesian, dolomitic, or hydraulic (impure).Lime is a general term which connotes a burned form of lime, usually quicklime, but which may also refer to hydrated lime. It may be calcitic, magnesian, or dolomitic.

Limestone (after Chillingar, Bissel, and Fairbridge, eds., 1967, p. 159) is a carbonate rock composed of more than 50 percent by weight of the mineral calcite.

Magnesia is the chemical compound, magnesium oxide (MgO), that is an important constituent in dolomitic and magnesian limes and limestones.

Magnesian limestone contains more magnesian carbonate than high-calcium stone but less than dolomite. Authorities are not in full agreement as to its range of magnesium carbonate, but the consensus favours 5 to 20 percent. It occurs in varying degrees of purity.

Marble is a metamorphic, highly crystalline carbonate rock which may be high-calcium or dolomitic. It may be extremely pure or rather impure. It occurs in virtually every colour in varying mottled effects and is the most beautiful form of limestone. Its unique texture permits it to be cut more precisely and polished to a smoother surface than any other stone. Varieties with more poorly interlocking crystals are often called crystalline limestone.

Quicklime is a lime oxide formed by calcining limestone so that carbon dioxide is liberated. It may be high-calcium, magnesian, or dolomitic and of varying degrees of chemical purity.

25

Slaked lime is a hydrated form of lime, in the form of a dry powder, putty, or aqueous suspension.

For far more complete discussions of the chemical and physical properties of carbonate rocks the reader is referred to Boynton (1966); Chilingar, Bissell, and Fairbridge, eds. (1967); and Ham, ed. (1962).

The following description of Chemical Properties is from Carr.

Although the chemical and physical attributes are independent properties, a carbonate rock is

seldom considered only for its chemical properties. For most uses in which chemical attributes

are specified, however, the degree of purity stands as the most important property. The chemical

requirements for some uses do not easily fit into a pigeonhole classification. Although the

minimum composition may indeed need to be specified, classification is useful for discussion

and evaluation. The terminology used in this article is as follows:

High-calcium limestone: greater than 95% CaCO3

High-magnesium dolomite: greater than 42% MgCO3

High-purity carbonate: greater than 95% combined CaCO3 and MgCO3

Accurate chemical determinations in ranges greater than 95% (CaCO3); are difficult and should

be entrusted only to a reliable laboratory. A useful list of testing companies capable of making

chemical and physical determinations of carbonate rocks can be found in the Directory of Testing Laboratories, Commercial-Institutional (American Society for Testing and Materials,

1987).