52C08NW2003 2.20457 REDHORSE LAKE Q10

Murgor Resources Inc.

Report on

FALL 1999Blasting, Diamond Drill Intercept Review

and Sampling

2. 204 57

MARK LAKE PROPERTY

Fort Frances AreaNorthwestern, Ontario

N.T.S. 52C/8

JUNE 2000 J. G. Clark, H.BSc.

Summary

TABLE OF CONTENTSloO o00

to oo

l .0 Introduction ............................................................ ll. l Property Location and Access .................................. l ?1.2 Claims .................................................... 3 Il .3 Previous Exploration ......................................... 5l .4 Regional Geology ............................................ 5

UI

2.0 1997 Exploration Program ................................................ 6 g2. l Introduction ................................................ 6 2.2 Property Geology ............................................ 6 j*2.3 Results ..................................................... "

3.0 Spring 1999 Exploration Program .......................................... 73.1 Introduction ................................................ 7 H3.2 Prospecting and Sampling Results ............................... 8 o3.3 Mineral Identification Results of Drill Core Sample ................. 83.4 Lithology and PGE and Gold Mineralogy Results ................... 9

4.0 Fall 1999 Exploration Program ............................................ 103.1 Introduction ............................................... 103.2 Program Results ............................................ 10

5.0 Conclusions and Recommendations ........................................11

6.0 References ............................................................ 12

Statement of Qualifications ..................................................... 13

List of Figures

Figure l. Regional-Scale Location Map ........................................ 2Figure 2. Claim Disposition ................................................. 4

List of Tables

Table l. Claims Summary and Current Status ................................... 3

List of Maps

Map l: Sample and Blasting Map .................................. back pocket

Map 2: Detail Sampling and Drill Section ............................ back pocket

List of Appendices

Appendix I: Red Horse Lake Rock Sample Descriptions and Assay Certificates

SUMMARY

Clark Exploration Consulting, of Thunder Bay, Ontario, was contracted by Murgor Resources Inc. of Montreal, Quebec to review the main showing area to determine the relationship of the 1988 diamond drilling results and the surface expression. The Marr Lake Property is located in the Redhorse Lake Area approximately 65 km southwest of Atikokan, Ontario. The purpose of the program was to assess the potential of the property for hosting economic concentrations of ultramafic hosted magmatic copper-nickel and associated platinum group and gold mineralization. This report presents the results of this exploration program.

The field work was conducted from October 26th to October 29th, 1999 and performed by Garry Clark and Todd Maitland. The work included blasting sample sites on the known ultramafic (pyroxenite) zones and relating the diamond drill (1988) drill results to surface Cu-Ni-Pt-Pd mineralization. Garry Clark reviewed the diamond drill data and core (Ministry Core Library, Thunder Bay) to assist with this report.

All grab samples (20) were assayed for copper, nickel, platinum, palladium and gold content by Acccurassay Laboratories of Thunder Bay, ON.

The geology consists of a gabbro/pyroxenite intrusive hosted in a package of amphibolite grade metamorphosed sediments. The copper-nickel-platinum group mineralization is hosted within the coarse grained strongly magnetic gabbro/pyroxenite/peridotite. The up-dip projections of diamond drill hole 88-3 and 88-4 were examined for the relationship of the platinum-palladium mineralization.

The best platinum group assay result came from sample M-14 which assayed 2171 ppm copper, 433 ppm nickel, 1.134 grams palladium and 0.524 grams platinum.

The relationship of the surface outcrops and the diamond drill intersections is confusing. The diamond drill collar of 88-4 is approximately 25-30 metres north of the surface platinum- palladium showing. The mineralized section within the diamond drill hole is 3.46 to 6.46 metres down the hole and assays 1.44 grams platinum+palladium+gold per ton over 3.0 metres. The updip projection returned a grab sample of 0.86 grams platinum+palladium+gold per ton. Grab samples from the original showing assay up to l .66 grams platinum+palladium+gold per ton but the down dip projection to the drill hole has no comparable values.

The interpretation of the results indicates a possible series of platinum+palladium+gold layers that may be structurally stacked by movement of small late stage faults or shears. Stripping and washing of the main showing area followed by detailed mapping, sampling and a series of short diamond drill holes is required to determine the nature and extent of the platinum+palladium+gold mineralization.

Murgor Resources Inc.________________________Marr Lake Property

LO INTRODUCTION

dark-Exploration Consulting ofThunder Bay, Ontario was contracted by Murgor Resouces Ltd. of Montreal, Quebec to conduct an exploration program on the Marr Lake property located in the Redhorse Lake Area approximately 65 km southwest of Atikokan, Ontario. The purpose of the program was to assess the potential of the property for hosting economic concentrations of magmatic copper-nickel and associated platinum group and gold mineralization. This report presents the results of this exploration program.

1.1 PROPERTY LOCATION AND ACCESS

The Marr Lake Property is located approximately 65 km southwest of Atikokan, Ontario (Figure 1). The approximate centre of the property is located at 92 0 19' longitude and 48 0 25' latitude and lies within N.T.S. block 52C/8.

Access to the area can be gained via highway 11 and secondary pulp-haul roads. About 40 km west of Atikokan on Highway 11, Flanders Road and subsequent haul roads lead south to within 0.5 km of Red Horse Lake. From here a winter road heads south across Red Horse Lake and east to Marr Lake which is located on the western boundary of the property. An ATV trail departs south of the Flanders Lake road for approximately 2.8 kilometres to a small pond 300 metres north of the shore of Marr Lake. A canoe is used to cross the pond and then a boat provides access to all of the property from Marr Lake.

June 2000m.^^^^—^—^^———^^^—^^—l__________Clark Exploration Consultine

— sf

— 5 1

Winisk Lake sf—

51 —

— 49

SachigoLake Big Trout Lake

oL

50 l

Scale

100l

150 l

200 _l

Km

MURGOR RESOURCES INC.

MARR LAKE PROPERTY Regional— scale Location Map

JUNE 2000

Cartography: JGC

CLARK EXPLORATION CONSULTING

Figure 1. Regional—scale location map.

Murgor Resources Inc. Marr Lake Property

1.2 CLAIMS

The Marr Lake Property comprises two unpatented mining claims (32 units) recorded in good standing in the Thunder Bay Mining Division (Redhorse Lake Area Claim Map, G- 552) ( Figure 2).

Table l. Claims summary and current status.

CLAIM NUMBER

TB1 161463

TB1216838

TB1233132

TB1233133

TB1233134

TB1237610

TB1237611

TB1237612

TB1237655

TB1237656

Total

SIZE (units)

16

16

16

12

12

12

15

15

15

12

141

DATE DUE

2000/08/25

2001/02/14

2001/03/23

2001/03/23

2001/03/23

2001/04/27

2001/04/27

2001/04/27

2001/04/27

2001/04/27

ASSESSMENT REQUIRED

6400

6400

6400

4800

4800

4800

6000

6000

6000

4800

56000

June 2000 Clark Exploration Consulting

CHROMITE - BEARING PYROXENITE; 0.59 gram

PD+PT l 1 .0 metres

1237810

400

A

MAGNETIC HIGH

1988DIAMOND DRU. HOLE

MURGOR CLAIMS

.f PT PofcxSum and Platinum

SCALE(nwtre.)

O 400

MURGOR RESOURCES INC.MARR LAKE PROPERTYREDHORSE LAKE AREAMr l* IMf Mk.

CURE imounoH COMSOUING

Murgor Resources Inc.———^—^—^^——^——^^——^^—^Marr Lake Property

1.3 PREVIOUS EXPLORATION

1956: Some staking was carried out in the general area and grab samples assayed of up to t.6% copper and G.35% nickel.

1958: Noranda carried out prospecting in the general area for copper and nickel mineralization but did not stake any claims.

1961: The government flew an airborne magnetic survey outlining a magnetic anomaly coincident with the known copper-nickel showing and several other similar anomalies in the general area.

1980-91: In the early 1980's the Geological Survey of Canada carried out a lakesediment survey which indicated strong copper-nickel-cobalt-gold-silver in the areas related to magnetic highs. They did not published their results till 1991.

1986: Bill Ross and Ray Pitkanen sampled a rusty, malachite stained showing hosted in a coarse grained magnetic gabbro-pyroxenite. The sheared and fractured zone was reported to be 55 metres wide. Their sample ran: 1200 ppb platinum, 790 palladium and 490 gold.

1986: St. Joe Canada Inc. visited the property and collected grab samples. The best result was 1079 ppb Au, 422 ppb Pt and 472 ppb Pd from the main showing.

1987-88: Ashton Operations Inc. carried out an integrated exploration programwhich included: geological mapping, trenching and geophysical surveying around the main showing. This was followed by linecutting and a ground magnetic/VLF-EM survey. A major magnetic anomaly outlined under the lake was drill tested. Number of holes and total metres are not known.

1.4 REGIONAL GEOLOGY

The Marr Lake property occurs within the Archean age (2690 to 2700 Ma) Quetico Subprovince of northwestern Ontario. The Quetico Subprovince is a linear strip of dominantly metasedimentary rocks that young to the north and are rotated and folded into a near vertical orientation. These rocks were subjected to intense shearing, emplacement of sporadic ultramafic rocks, and local intrusion by granitoids.

June 2000______________________5__________Clark Exploration Consulting

Murgor Resources Inc.———.^———^-——^^—^^^—^—^—Marr Lake Property____

2.0 1997 EXPLORATION PROGRAM

2.1 INTRODUCTION

Ray Pitkanen of Thunder Bay, Ontario was contracted by Murgor Resouces Ltd. of Montreal, Quebec to conduct a program grid re-establishment and prospecting on the Marr Lake Property located in the Redhorse Lake Area approximately 65 km southwest of Atikokan, Ontario. Clark-Eveleigh consulting of Thunder Bay, Ontario was contracted by Murgor Resources Inc. to rework the geophysical data and write the assessment report. The purpose of the program was to assess the potential of the property for hosting economic concentrations of gabbro associated magmatic copper-nickel and associated platinum group and gold mineralization.

The baseline and grid lines cut over claim 1161463 were walked, flagged, re-cut where necessary and prospected. A total of nine grab samples were analyzed. Four samples were analyzed for copper, nickel, platinum and palladium and five samples were assayed to determine their gold content.

2.2 PROPERTY GEOLOGY

The host rocks in the area are Quetico metasediments. The metasedimenatay rocks exhibit upper amphibolite grade metamorphism. They consist mainly of garnet-magnetite biotite schist l gneiss. The meta-sedimentary rocks are intruded by gabbro-pyroxenite plugs/sills. The copper-nickel-platinum group and gold mineralization is hosted within a black coarse- grained strongly magnetic gabbro/pyroxenite/peridotite.

2.3 RESULTS

The best platinum group assay result came from sample ML-97-8 from the main showing located in 1956. This sample of the gabbro-pyroxenite assayed 2.11 grams palladium and 1.14 grams platinum. The best gold assay was 15 ppb from sample ML-97-3.

June 2000______________________6__________Clark Exploration Consultine

Murgor Resources Inc.———————^————-———————Marr Lake Property____

3.0 SPRING 1999 EXPLORATION PROGRAM

3.1 INTRODUCTION

Clark-Eveleigh Consulting, of Thunder Bay, Ontario, was contracted by Murgor Resouces Ltd. of Montreal, Quebec to re-establish the grid and conduct a prospecting program the Marr Lake Property located in the Redhorse Lake Area approximately 65 km southwest of Atikokan, Ontario. A mineral identification and mineralogical study of the previously drilled core and a sample of the higher grade showing respectively, was carried out by Overburden Drilling Management Limited of Nepean, Ontario. The purpose of the program was to assess the potential of the property for hosting economic concentrations of gabbro associated magmatic copper-nickel and associated platinum group and gold mineralization.

The field work was conducted from April 22nd to April 28th, 1999 and the work was performed by J. Pinksen (prospector) and R. Varrin (prospector) both Clark-Eveleigh Consulting employees. The work included re-establishing ~ 4.5 kilometres of the previously completed grid. Prospecting and sampling were completed on the grid and around Marr Lake on claims TB 1161463 and TB 1216838. The sample of drill core for mineral identification study was attained from the Ministry of Northern Development and Mines drill core library in Thunder Bay, Ontario by Garry Clark. The mineralogical study was completed on a grab sample from the main showing.

All the samples were assayed for platinum, palladium and gold content. Analysis for 32 elements was also completed using an ICAP32 method.

3.2 PROSPECTING AND SAMPLING RESULTS

The prospecting and sampling attempted to verify the previously completed assaying and locate the high magnetic anomalies.

The program focussed on the Marr Lake area and the area on the re-established grid between 800E to 1700E between the baseline and the Red Horse River.

The Marr Lake area has little outcrop except at the main showing and on a peninsula on the northwest shore of the lake (Map 1). Examination of the shoreline and the area immediate to the shoreline revealed only sand, swamp and boulders. The sampling (10 samples) was completed on the main showing and the peninsula. The assays of the main showing ranged from 606 to 1235 ppb palladium, 146 to 458 ppb gold and 548 to 1389 ppb platinum. The best assay assayed 2.999 grams combined platinum, palladium and gold.

The prospecting of the re-established grid failed to locate any gabbro/ultramafic rocks.

June 2000 __ __ 7_________Clark Exploration Consulting

Murgor Resources Inc.——i——————^—^—^——^——Marr Lake Property———-

The magnetic trends had no outcrop expressions and the outcrops were all biotite-bearing gneissic metasediments. A gossan outcrop located north of the baseline at approximately 15 GOE was dominantly gneissic banded metasediment. The gossan is believed to be a result of the iron rich biotite.

3.3 MINERAL IDENTIFICATION RESULTS OF DRILL CORE SAMPLE

The drilling completed in 1988 consisted of one hole under the main platinum-palladium showing. Diamond drill hole Mar-88-4 was drilled grid south at -50 0 dip. The target was the sulfide rich pyroxenite that assays up to 2.999 grams combined platinum, palladium and gold. The drill hole intersected 1.98 grams platinum-palladium combined. Overburden Drilling Management Limited was contracted to complete a mineral identification of a drill core sample from hole Mar-88-4. An 8 centimetre sample was selected for the mineral identification from approximately 4.0 metres down the drill hole. The hand sample is described as a coarse pegmatitic pyroxenite with disseminated and minor veinlets of pyrite-chalcopyrite (3 07o). Previous assaying returned an interval of 863 ppb palladium and 1165 ppb platinum over 1.0 metres. The sample was identified as a pyroxenite. The examination included microscope work, SEM and micro-panning. All the studies failed to identify any PGE minerals.

3.4 LITHOLOGY AND PGE AND GOLD MINERALOGY RESULTS

An individual fist sized grab sample of the main showing (AE-Marr-l)was sent to Overburden Drilling Management Limited to complete a lithology and pge and gold mineralogy identification. The rock was chemically identified as a peridotite and microscopically as an olivine-bearing peridotite. Overburden Drilling Management Limited review of the sample stated:

"The sulphides are finer-grained (0.3-1 mm) than the silicate minerals and tend to occur with the olivine — a common feature of cumulus sulphides. The total sulphide content is 5-7 percent and the sulphide minerals are two-thirds pyrite and one-third chalcopyrite with only minor pyrrhotite and pentlandite.

We mounted four coin-sized rock fragments in epoxy pucks and polished them for SEM/EDS study. This study largely confirmed our binocular microscope observations, provided additional details on the sulphide-olivine relationships (Plates 1, 2) and identified traces of many rare minerals including Pt-, Pd- and Au-bearing minerals but no sperrylite - the most common Pt ore mineral. Consequently a larger, roughly polished slab was prepared and scanned for sperrylite, resulting in the identification of a single grain of this mineral (Plate 3).

The association of the sulphide minerals with the olivine was confirmed (Plate 1) but in detail the sulphides occur throughout the olivine sites (Plate 2) rather than on the rims as expected for primary cumulus mineralization. This suggests that the sulphides were remobilized when the olivine was serpentinized. Moreover, the sulphides are finer-grained than normal cumulus sulphides, have very ragged outlines instead of the usual triple-junctions, and in some cases clearly replace magnetite that was produced by serpentinization of the olivine. As well, the

June 2000 ____________________8__________Clark Exploration Consulting

Murgor Resources Inc.———————^^^—^^^^——————Marr Lake Property____

olivine composition is fayalitic (~Fo50) as forecast from the ubiquitous magnetite inclusions observed by binocular microscope in actinolite derived from the olivine, yet the serpentinized olivine sites contain little secondary magnetite indicating significant consumption of Fe by other minerals - presumably sulphides - during or after serpentinization. Finally, the 2:1 ratio of pyrite to other sulphides in the pyroxenite is much higher than the maximum permissible 1:30 ratio for primary magmatic sulphides.

The rare metallic minerals are listed in Table 3. A few consist primarily of base metals such as Cu, Pb, Zn, Co and Ni with or without Ag and Bi. One (sperrylite) contains Pt, one (michnerite) contains Pd, one (an unresolved sulphosalt) contains Au and one (an unresolved arsenide) contains all three noble metals. No native PGAs were found; in fact the only native mineral observed is bismuth. All of the rare mineral grains are silt-sized (typically 10-20 microns), and with the exception of sperrylite (Plate 3) occur within the coarser sulphide minerals (Plate 2) and thus are difficult to recognize. For some minerals, only one or two grains were found. However, the uniformity of the Pt-Pd-Au analyses for the study sample and its neighbours (Table 1) indicates that such grains are evenly disseminated throughout the mineralized zone; evidently the coin-sized slabs examined by SEM were too small to expose a representative population of grains. The potential for other, unexposed rare mineral species is also high."

The report verified the grade of the original sample, 2.589 grams combined platinum- palladium is probably contained in sperrylite and as inclusions in the sulfides (chalcopyrite, pentlandite and pyrite).

June 2000_______________________9__________Clark Exploration Consulting

Murgor Resources Inc.__________________________Marr Lake Property____

4.0 FALL 1999 EXPLORATION PROGRAM

4.1 INTRODUCTION

Clark Exploration Consulting, of Thunder Bay, Ontario, was contracted by Murgor Resources Ltd. of Montreal, Quebec to evaluate the Marr Lake property and to determine the relationship of the 1988 diamond drill intersection to the surface exposure at the main showing. The program was intended to assess the potential of the property for hosting economic concentrations of gabbro associated magmatic copper-nickel and associated platinum group and gold mineralization.

The field work was conducted from October 26th to October 29th, 1999. The work was performed by G. Clark (geologist) and T. Maitland (prospector). The work comprised examining geological relationships of previous drill results and surface showings, blasting and sampling and prospecting the known showings and the river banks between Marr Lake and Redhorse Lake. Sampling was completed with the aid of explosives in some locations. All work was completed on claims TB 1161463 and TB 1237656.

The samples were all sent to Accurassay Lab of Thunder Bay (Appendix I). All the samples were assayed for platinum, palladium, gold, copper and nickel content. Analysis was completed using fire assay with an atomic absorption finish.

4.2 PROGRAM RESULTS

The field work identified the location of gabbro l pyroxenite l peridotite outcrops and the location of the 1988 diamond drill sites.The geology consists of a gabbro/pyroxenite intrusive hosted in a package of amphibolite grade metamorphosed sediments (Map 1). The copper-nickel-platinum group mineralization is hosted within the coarse grained strongly magnetic gabbro/pyroxenite/peridotite. The up-dip projections of diamond drill hole 88-3 and 88-4 were examined for the relationship of the platinum-palladium mineralization.

The best platinum group assay result came from sample M-14 which assayed 2171 ppm copper, 433 ppm nickel, 1.134 grams palladium and 0.524 grams platinum (Appendix I).

The relationship of the surface outcrops and the diamond drill intersections is confusing. The diamond drill collar of 88-4 is approximately 25-30 metres north of the surface platinum-palladium showing. The mineralized section within the diamond drill hole is 3.46 to 6.46 metres down the hole and assays 1.44 grams platinum+palladium+gold per ton over 3.0 metres (Map 2). The updip projection returned a grab sample of 0.86 grams platinum+palladium+gold per ton. Grab samples from the original showing assay up to 1.66 grams platinum+palladium+gold per ton but the down dip projection to the drill hole has no comparable values (Map 2).

June 2000______________________10_________Clark Exploration Consultine

Murgor Resources Inc.^—^—-—-^—^——^——-—^—^———-Marr Lake Property____

5.0 CONCLUSIONS AND RECOMMENDATIONS

The interpretation of the results indicates a possible series of platinum+palladium+gold layers that may be structurally stacked by movement of small late stage faults or shears. A Stripping and washing of the main showing area followed by detailed mapping, sampling and a series of short diamond drill holes is required to determine the nature and extent of the platinum+palladium+gold mineralization.

June 2000 ____ ______________U_________Clark Exploration Consulting

Murgor Resources Inc.,^——-—^-^—.^^—^-—..^——.i^————Marr Lake Property___

6.0 REFERENCES

Clark J.G. 1999 Report on 1999 Prospecting, Sampling and Grid Re-establishment Marr Lake Property Fort Frances Area Northwestern, Ontario N.T.S. 52C/8.

Jones R.K. 1988. A Preliminary Report on the Exploration Programme Undertaken by Ashton Operations Inc. at the Marr Lake Property in Ontario Canada.

Jones R.M. 1986. Pitross Platinum Prospect, Property Examination Report, Ray Pitkanen and Bill Ross Property, Thunder Bay Mining Division.

Middaugh R.D. 1988. Proton Magnetometer and VLF Electromagnetic Surveys, Marr Lake Project, NTS 52-C-8, Phantom Exploration Services Ltd.

Williams H.R.. 1991.Quetico Subprovince; in Geology of Ontario, Ontario Geological Survey, Special Volume 4, Part l, p.383-403.

June 2000______________________12_________Clark Exploration Consulting

Murgor Resources Inc. Marr Lake Property

Statement of Qualifications

I, J. Garry Clark, do hereby certify:

I am a resident of Thunder Bay, Ontario, Canada with address 120 Robinson Drive, P7A 6G5.

I have been engaged in base and precious metal exploration as a geologist since 1983.

I am a graduate of Lakehead University, Thunder Bay, Ontario (H.B.Sc., Geology, 1983).

Date:l l

June 2000 13 Clark Exploration Consulting

APPENDIX I

MARR LAKE SAMPLE DESCRIPTIONSand

ASSAY CERTIFICATES

Page # l of 2

SAMPLE REPORT SHEET

Project Area: MARR LAKE

Sample

M-l

M-2

M-3

M-4

M-5

M-6

M-7

M-8

M-9

M-10

SampleLocation

West of Point,Small outcrop inwater

East side ofpoint

1 .5 metres northof M-2

South end ofPoint

3.0 metres northof M-4, Eastside of point

1.0 metres eastof M-5

Northwest ofdiamond drillhole

North end oftrench

3-4 metres northof diamond drillhole

5 metres north ofM-9

Assays

Auppb

^

^

98

^

^

31

7

^5

37

^

Ptppb

^5

•CIS

^5

^5

•cl5

^5

-CIS

17

599

^0

Pdppb

11

18

18

12

o:lO

•clO

<10

11

552

•cis

Cuppm

36

39

76

55

88

62

27

187

177

136

Nippm

432

226

352

420

335

321

35

312

610

132

Sample Description

Grab, Medium Grained, felty texture, trace pyrite, hornblende replacing pyroxene

Grab, magnetic, medium grained trace pyrite on cleavage, very fine grained plates, hornblendereplacing pyroxene

Grab, Magnetic, medium grained trace pyrite on cleavage, hornblende replacing pyroxene

Panel Grab, strongly magnetic, medium to coarse grained, fractured, hornblende replacingpyroxene

Grab, magnetic, medium to coarse grained, fractured, hornblende replacing pyroxene

Blast grab, magnetic, fine to medium grained

Grab, fine grained, gabbro-niorite, edge of metasediments

Grab, magnetic, fine to medium grained

Grab, medium grained, minor gossan on fracture

Grab, non-magnetic, medium grained, minor calcite vugs

C:\MyFiles\REPORTS\Redhorsefall 99.wpd

Sample#

M-ll

M-12

M-13

M-14

M-15

M-16

M-17

M-18

M-19

M-20

Sample Location

5 metres behind M-10

West of drill hole, updip

West of drill hole, updip

Main Showing, Gossan cliff

Main Showing, Gossan cliff

15 metres south of trench

Updip of drill hole

Updip of drill hole

Between 12,13 +17J8, Updip of drillhole

25 metres north of drill hole

Assays

Au ppb

^

^

172

^

^

^

^

^

8

<5

Pt ppb

*clO

34

48

524

611

13

^0

<10

307

14

Pd ppb

^5

32

80

1131

392

0

<15

^5

349

<15

Cu ppm

457

525

1237

2171

2099

62

245

196

1884

81

Ni ppm

108

236

317

433

315

117

234

163

924

93

Sample Description

Grab, non-magnetic, coarse grained

Blast Grab, medium-coarse grained hornblende, non-magnetic, trace sulfldes (pyrite), minoi calcite

Blast grab, medium-coarse grained hornblende, non-magnetic, trace sulfldes (pyrite), minor calcite, some euhedral hornblende (2 cm)

Grab, above 270-45 fault, gossanous, magnetic, slightly sheared, sulfldes rotted out

Grab, sheared, 030-85E, gossanous, magnetic, fine grained (milled), sulfide on fracture rotted out

Grab, medium to coarse grained, 1-1 .5 cm, hornblende crystals, ^W/o

Blast grab, magnetic medium grained, minor pyrite blebs (3mm)

Blast grab, magnetic, fine-medium grained, pyrite + trace chalcopyrite (^"/o) on cleavage and as interstitial specks ^Imm)

Grab, magnetic, fine-medium grained, pyrite + trace chalcopyrite (^"/o) on cleavage and as interstitial specks ^Imm)

Blast grab, non-magnetic, medium grained,- lcm, hornblende in fine grained matrix (3-4 mm), calcite vugs

JUL 20 '00 14=18 FR MINING RECORDER TBP'f 807 475 1124 TO PSSES3I1ENT P.04/06

Ontario Declaration of Assessment Work Performed on Mining Land

ifln:~. Art Subsection Uttl and (6(9), R.S.0.USD

Transaction Number (office use)

Assessment Files Research imaging

lections 65(2) am) 66(3) of the Mining Act. Under section 8 of me Mining assesmcnl wark and correspond with the mining land holder. Questions if Northern Development and l?es 8T- M3 to"1*^ L**e Road.

l. use form 0240.Mining Division

JUl 2 O 2000

Name: MURGOR RESOURCES INC.Address: Suite 01525, 800 Rene Levesque Blvd.. W, Montreal. Quebec H3B 1X9

1

Name:

Address:

nCCORDEDijUL l. u iwu 1*1

-—^-———-

ClientHlSr&r'^^ ' ^~

301 4 62Telephone Number

519^78^551Fax Number 519-878-4427

Client Number

Telephone Number:

Fax Number

2. Typ* of work performed: Check (S) and report on only ONE of the following groups for this declaration. ————————————— - ————— ————————————————————— A ————— f\ J"i — ~A —— f t** —————————

y Geotechnical

D

r-j Physical: fe* . f*J \J TC ^ fshabilHalion

Work Type:

Sampling and Blasting. Diamond Drill hole surface results review

i

Dates Work From 25 10 1999 To Performed Day Month Year

i20 07 2000

Day l Month l Year

Global Positioning System Data (if Township/Area available)

REDHORSE LAKE AREAM or G-Plan Number G-552

Office Use

Commodity

Total S Value of *-~ -, : Work Claimed C1 ' c* V

NTS Reference

Mining Division

1 Jll[''tffi: "L* r\r^j^i/Resident Geologist - f ,

Please remember to: - obtain a work permit from the Ministry of Natural Resources as required:- provide proper notice to surface rights holders before starting work:- complete and attach a Statement of Costs, form 0212;- provide a map showing contiguous mining lands that are Pnked for assigning work;- include two copies of your technical report.

3. Penon or companies who prepared the technical report (Attach a list if necessary)

Name: J.G. ClarkAddress. 1000AHoyDrName:

, Thunder Bay.ON P7A 6G5

Address.

Name

Address:

Telephone Number: 807-622-3284Fax Number

^ ——————Telephone Number:

Fax Number

Telephone Number

Fax Number.

i^rEcevED^ ' ^Oprvx

JUL l (J JKWGEOSCIENCE ASSESSMENT

OFFICE

4. Certification by Recorded Holder or Agent

l. J.6- Cterfc l have^ersonal knowledge of the facts set forth In this Declaration of Assessment Work having same Vurino. or alter its completion and, to the best of my knowledge, the annexed report is true.

DateJuly 20,2000

Agent's Address l/ l;/ 1000 Alloy Dr.. Thuhaer Efcrf O'

Telephone Number 807-622-3284

Fax Number

JUL 2E '03 14=18 FP "ISING RECORDER TBRY 80? 475 1124 TO PSSESSfEN' P.05/06

5. Work to b* recorded and distributed. Work can only be assigned lo claims that are contiguous (adjoining) to the mining land where work was performed, at the time work was performed. A map showing the contiguous link must accompany this form. i i ^ * . i * . , -, -i f-

U i. uCyO'CCa(O SMining Claim Number. Or if work was done on other eligible mining land, show in ttw column the location number indicated on the claim map

eg

eq

^

1

2

3

4

5

6

7

8

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10

11

12

13

14

15

TB7827

1234567

1234568

TB 1161463

TB 1237656

TB 1216838

Column Totals

Number of Claim linn*. For other mining land, list hectares.

16 ha

12

2

16

12

16

Vahw of work performed on this claim or other mining land.

S26.82S

0

S 8.892

4724

1000

0

1

5724

Value of work applied to this claim.

N/A

124.000

S 4.000

0

0

3000

E rvYf-V.^ W i

III! 2 C

3000———— rffc —————

Value of work aaalgncd to othermining claims.

(24,000

0

0

3000

0

"j rv c r\iUt~~LJ

/•jjy

3000

Bank. Value of work to be distributed at a future date

53.825

0

S4.892

1724

1000

0

2724

J G Clarksubsection 7 (1 ) of the Assessment Work where the work was done

., do hereby certj^iat the abcy^dfcjredfej^

lent lo contiguous claims or for application to the claim

July 20, 2 000

6. Instructions for cutting backSome of the credits claimed in this credits: "

check (/) in the boxes below to show how you wish to prioritize the deletion of

O 1. Credits are to be cut back from the Bank first, followed by option 2 or 3 or 4 as indicated

O 2. Credits are lo be cut back starling with the claims listed last, working backwards; or

O 3. Credits are to be cut back equally over all claims listed in this declaration; or

Q 4. Credits are to be cut back as prioritized on the attached appendix or as follows (describe):

Os. call before cut back

Note: If you have not indicaled how your credits are to be deleted, credits will be cut back from the Bank first followed by option number 2 if necessary.

For office Use OnlyReceived Su mp

RECEIVEDcX - 9-Opyw

JUL 2 3 2X3GEOSCIENCE ASSESSMENT

OFFICE

Deemed Approved Date

Date Approved

Date Notification Sem

Total Value of Credit Approved

Approved for Recording by Mining Recorder (Signature)

J^- 20 ' 03 1 4: 18 FR MINING RECORDER TfctY Bg)7 475 1124 TO ASSESSMENT

Ottfarin JSffi.'owwi-m Statement of Costs WMldMU ^ i*, for Assessment Credit

P.06/06

Transaction Number (office use)

Personal information collected on mis form is obtained under the authority of subsection 6 (1) of lha Assessment Work Regulation 6/96. Undar section 8 ol the Mining Act. this information is a public record. This information will be used to review the assessment work and correspond with the mining land holder. Questions about this collection should be directed to a Provincial Mining Recorder. Ministry of Northern Development and Mines, 3rd Floor. 933 Ramsey Lake Road. Sudbury. Ontario, P3E 6B5.

Units of war* Work Type Depending on the type of work, list the number

of hours/days worked, metre* of drilling, kilometres of grid line, number of samples, etc.

Sampling And Blasting 2 men 3 (10 hour) days

Drill data review on she and at ministry 1 man day (10 hours)Report and maps 4 man days ( 1 0 hours)Supervision 1 man day (10 hours)

Associated Costa (e.g. supplies, mobilization and demobilization).

ExplosivesGPS, Motor and Boat, QUAD Rentals

Fuel

Bags Flagging and tags

Assaying

Transportation Costs — —— . — Truck 1200 km @ 50.35 B-N f 1̂ j'*\

FOOD and Lodging Costs I l L— . Accom and Meals — m

Cost Per Unit of work

550/day * GST

350/day * GST350/day * GST350/day * GST

SK / magnapak and fuse (80)

20 samples

OROEDi-j n .'r-i-ilf l i ,' : - . : i

-.. —————— i

Total Value of Assessment Work

Total Cost

1765

4101390410

104

320

50

20

465

420

370

5724

Calculations of Filing Discounts:

1. Work filed within two years of performance is claimed at Idd"/, of the above Total Value of Assesaftent Work. *^V2. If work is filed after two years and up to five years after performance, it can only be claimed at 5o9rof the Totafj

Value of Assessment Work If this situation applies to your claims, use the calculation below.

PT

TOTAL VALUE OF ASSESSMENT WORK x 0.50 - Total S value of worked claimed.

Note:- Work older than 5 years is not eligible for credit.- A recorded holder may be required to verify expenditures claimed in this statement of costs within 45 days of a request for verification and/or

correction/clarification. If verification and/or correcfion/dariFication is not made, the Minister may reject all or part of the assessment work submitted.

Certification verifying costs:

Carry ClarV -. do hereby certify, that the amounts shown are as accurate as may reasonablyl, ——(please print fuH name)

be determined and the costs were incurred white conducting assessment work on me lands indicated on the accompanying

Declaration of Work form as. Aoent ^— l am authorized to make this certification. (recorded holder, agent, or state company position with sjj

RECEIVED51 : 2~O D TA

GEOSCltNCE ASSESSMENT

i sjgnimrauthoDtv;

** TOTflL PftGE-. 06 **

Ministry ofNorthern Developmentand Mines

Ministere du Developpement du Nord et des Mines Ontario

August 25, 2000

MURGOR RESOURCES INC.800 RENE-LEVESQUE BLVD WEST, SUITE 1525MONTREAL, QUEBECH3B-1X9

Geoscience Assessment Office 933 Ramsey Lake Road 6th Floor Sudbury, Ontario P3E6B5

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

Dear Sir or Madam:

Subject: Transaction Number(s):

Submission Number: 2 .20457

StatusW0040.00205 Approval

We have reviewed your Assessment Work submission with the above noted Transaction Number(s). The attached summary page(s) indicate the results of the review. WE RECOMMEND YOU READ THIS SUMMARY FOR THE DETAILS PERTAINING TO YOUR ASSESSMENT WORK.

If the status for a transaction is a 45 Day Notice, the summary will outline the reasons for the notice, and any steps you can take to remedy deficiencies. The 90-day deemed approval provision, subsection 6(7) of the Assessment Work Regulation, will no longer be in effect for assessment work which has received a 45 Day Notice. Allowable changes to your credit distribution can be made by contacting the Geoscience Assessment Office within this 45 Day period, otherwise assessment credit will be cut back and distributed as outlined in Section #6 of the Declaration of Assessment work form.

Please note any revisions must be submitted in DUPLICATE to the Geoscience Assessment Office, by the response date on the summary.

If you have any questions regarding this correspondence, please contact BRUCE GATES by e-mail at bruce.gates@ndm.gov.on.ca or by telephone at (705) 670-5856.

Yours sincerely,

ORIGINAL SIGNED BYSteve B. BeneteauActing Supervisor, Geoscience Assessment OfficeMining Lands Section

Correspondence ID: 15179

Copy for: Assessment Library

Work Report Assessment Results

Submission Number: 2 .20457

Date Correspondence Sent: August 25, 2000 Assessor: BRUCE GATES

Transaction Number

W0040.00205

Section:12 Geological GEOL

First Claim Number

1161463Township(s) l Area(s)

REDHORSE LAKE

Status

Approval

Approval Date

August 25, 2000

Correspondence to:Resident Geologist Thunder Bay, ON

Assessment Files Library Sudbury, ON

Recorded Holder(s) and/or Agent(s):J.Carry ClarkTHUNDER BAY, ONTARIO, CANADA

MURGOR RESOURCES INC. MONTREAL, QUEBEC

Page: 1Correspondence ID: 15179

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Profile of Drill Hole 88-04 and 1999 Sampling, Looking West

Original Showing M-H 4- 15

,,.jc..—x—x--

2.0 GRAMS PGE Over 2.0 Metres

Metasediments

Drill Hole 88-04

\ Gabbro/Pyroxenite/Peridotite84.45 metres

BOULDERS

MS ,

MARR LAKE

TB 1161463

TB 1233134TB 1237656

52C08NM2003 2.20457 REDHORSE LAKE

RECEIVED

GEOSCIENCE ASSESSMENT OfflCE

TRUE

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,y

GG Gabbro/Pyroxenite/Peridotite

MS Gneissic Metasediment

X Sample Site and Number

-^ Magnetic High88-4

Diamond Drill Hole

oScale

50 100 150 200

METRES

MURGOR RESOURCES INC.

REDHORSE LAKE PROPERTY

SAMPLING AND BLASTING

Nov. 1999

Cartography: JGC

MAP 1 + 2

CLARK EXPLORATION CONSULTING

l i J 7