2. 3. eceived 4. 2 ,0 5 5. ge05lit: ,tffl

61
SUMMARY REPORT on FOY -HESS OFFSET DIKE PROPERTIES Comprising 1. Banana Lake Grid and 2. Sandcherry Creek Grid 3. Schkowona Lake Grid ECEIVED 4. Venetian Lake Grid 2 ,0 5 5. LaForest Grid GE05LIt: £: A SE SS ,tffl ter, Tyrone, Botha, Sweeny and Beaumont Townships, Ontario OF FICE owne in variable proportions by Dave Beilhartz and Harold Tracanelli Under Option to Tearlach Resources Limited Sudbury Mining Division, Sudbury District Prepared for Tearlach Resources Inc by Malcolm B. Fraser, B.Sc ., M.A ., LLB and Frank Racicot, P.Geo.

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Page 1: 2. 3. ECEIVED 4. 2 ,0 5 5. GE05LIt: ,tffl

SUMMARY REPORT on FOY -HESS OFFSET DIKE PROPERTIES

Comprising

1. Banana Lake Grid and

2. Sandcherry Creek Grid

3. Schkowona Lake Grid

ECEIVED 4. Venetian Lake Grid

2 ,0 5 5. LaForest Grid

GE05LIt: £: A SESS ,tffl ter, Tyrone, Botha, Sweeny and Beaumont Townships, Ontario OFFICE

owne in variable proportions by Dave Beilhartz and Harold Tracanelli

Under Option to Tearlach Resources Limited

Sudbury Mining Division, Sudbury District

Prepared for Tearlach Resources Inc

by

Malcolm B. Fraser, B.Sc ., M.A ., LLB and

Frank Racicot, P.Geo.

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Table of Contents Summary

1.0 Introduction and Terms of Reference 2.0 Disclaimer 3.0 Property Description and Location 4.0 Access, Climate, Local Resources, Infrastructure and Physiography 5.0 History 6.0 Brief Geological History of the Sudbury Basin

6.1 Introduction 6.2 Geology of the Sudbury Basin 6.3 Ore Deposit Types 6.4 The Offset Dikes 6.4.1.The Worthington Dike

7.0 Past Exploration on the Foy-Hess Offset Dike 8.0 Work Accomplished in 2003 8.1 Results of 2003 Work 8.2 Results of 2005 Work 9.0 Sampling Method and Approach 10.0 Sample Preparation, Analyses and Security 11.0 Data Verification 12.0 Adjacent Properties 13.0 Discussion 14.0 Conclusions 15.0 Recommendations 16.0 Budget 17.0 Certificate of Qualifications: Frank Racicot 18,0 Certificate of Qualifications: Malcolm B. Fraser 18.0 References 19.0 Web Site References Appendix A-I: 2003 Assay Certificate, Swastika Laboratories Appendix A-2: 2005 Assay Certificate, Swastika Laboratories Appendix A-3: Sketch Plans, Areas 1 to 10,2005 geological mapping

LIST OF FIGURES

Fig. 1. Sudbury Irruptive and Offset Dikes

Fig. 2. Sudbury Irruptive, Foy-Hess Offset Dike and Properties

Fig. 3. Claims in Leinster, Botha, Tyrone and Sweeny Twp

Fig. 4a. Locations of grids on Hess Offset Foy-Hess Dike junction

Fig. 4b. Grids on Sandcherry and Banana Lake areas

Fig. Sc. Banana Lake grid, soil geochemistry and drill hole location

Fig. 6d. Location of Venetian Lake Grid and Foy Dike

Fig. 7e. LaForest Grid and Foy Dike in Botha and Sweeny Twp

Fig. 8. Magnetics, soil geochemical anomalies and sulfides in QD

Fig. 9. Ground magnetics, sulfides in QD, soil geochemistry anomalies

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4 4 6

10 10 12 12 12 13 14 IS 17 25 31 32 35 35 36 36 36 37 38 38 40 41 4\ 44 45 46 47

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Fig. 10. Banana Lake Grid

Fig. II. Sandcherry Lake Grid

Fig. 12. Schkowona Lake Grid

Fig. 13. LaForest Grid

Fig. 14. Geological Map, Banana Lake area

Fig. 15. Geological Map, Sandcherry Lake and Schkowona Lake area

Fig. 16. Venetian Lake Grid contoured magnetic plan

Fig. 17. LaForest Grid contoured magnetic plan

Fig. 18. Banana Lake Grid Area 1 Geological Sketch Map

Fig. 19. Banana Lake Grid Area 2 Geological Sketch Map Appendix A-3

Fig. 20. Banana Lake Grid Area 3 Geological Sketch Map Appendix A-3

Fig. 21. Banana Lake Grid Area 4 Geological Sketch Map Appendix A-3

Fig. 22. Banana Lake Grid Area 5 Geological Sketch Map Appendix A-3

Fig. 23. Banana Lake Grid Area 6,7,8 Geological Sketch Map Appendix A-3

Fig. 24. Banana Lake Grid Area 9 Geological Sketch Map Appendix A-3

Fig. 25. Banana Lake Grid Area 10 Geological Sketch Map Appendix A-3

LIST OF TABLES

Table 1: Claims Comprising the Beilhartz-Tracanelli Claims

Table 2: Claims Comprising the Beilhartz Claims

Table 3: Grab Assays from Mooihoek Pond and E & W Banana Lake

LIST OF PHOTOS

Photo J: Interstitial sulfides at Tracanelli Showing, E. side Banana Lake

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Summary

Property

Twenty-two claim groups were optioned by Tearlach Resources Limited. from David Beilhartz and Harold TracanellL These cover an approximate 26 km strike length of the Foy-Hess Quartz Diorite Offset dike, over at least 30 square kilometers of land area in Tyrone, Botha, Sweeny, Leinster and Beaumont Townships. Province of Ontario. During 2003, 254 km of line cutting at 50 m spacing was carried out, followed by 195 km magnetometer surveys, geological mapping and assaying. During the first half of 2005, an additional 60 km of ground magnetometer surveying was completed. MegaTEM II airborne EM survey data covering the Banana Lake, Sandcherry Creek and Schkowona Lake survey grids, flown by Furgo Airborne Geophysical, was purchased from Crowflight Minerals Inc. and ten occurrences of the Hess and Foy Offset dikes were stripped and mapped and assays taken.

Geology

1850 million years ago, a major meteorite impact event formed a 250 km wide crater structure with a very large crater melt sheet, now extensively eroded. During the crater excavation phase, shatter cones produced by shock waves permeated the rocks. During relaxation phase pseudotachylyte or Sudbury Breccia (silicate melt zones caused by the grinding of adjacent rock units in mega-slides) intruded adjacent walls and also self-intruded showing distinct phase relationships and "melt pods" (blobs with igneous textures). At a much later stage, evolved portions of the overlying crater melt sheet intruded downwards into fissures in the centre of the impact structure, forming the Offset dikes with associated economic nickel-copper platinum-group-element (PGE) mineralization. The source of the metals in the Sudbury Structure was in the rocks impacted by the meteorite rather than in the meteorite itself. The Offset Dikes (which host almost 50% of the Sudbury mineral resource) extend more than 20 km away from the present-day rim of the Sudbury Basin. They emanate from the Main Mass of the Sudbury Igneous Complex and are disposed radially and concentrically from an originally much more extensive crater and impact melt sheet. Ten such bodies are now known, many of which are directly associated with world class Ni-Cu-PGE deposits. Within different Offset dikes the type and style of brecciation developed in the country rocks plays an important part in controlling distribution of discontinuities in quartz diorite as well as location of orebodies. The mineral potential of the different Offset dikes may have been largely controlled by the availability of magmatic sulfide from the overlying main mass of the Sudbury Igneous complex, and this in turn may have depended on the thickness of the melt sheet.

Access

Access to the Tearlach properties is via logging roads and bush trails from Highway 144 and from Capreol by "4 x 4" quad machines, 4WD vehicles and by boat on Venetian Lake. The area is characterized by cold boreal forest cover. There is no agriculture in the area. Recent logging has resulted in improvement in road conditions, creation of new access roads and additional clear cutting, substantially improving access, particularly to the Schkowona, Sandcherry and Banana grid areas of the offset dikes. Soil coverage is thin. predominantly glacial till with moderate occurrence of rock outcroppings. The northern one third of the area is covered with deeper sandy soils with little outcrop. Relief is typical Shield, up to 50 meters, with rounded plucked outcroppings with moss coverage, interspersed with sphagnum swamps. The Foy and Hess Offset QD dikes often weather recessively.

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Prior Mineral History

Prior local exploration developed two significant occurrences within the Foy Offset to the south of the Properties. The Nickel Offsets Mine (formerly the Ross Mine) produced 208,551 tons with recovered grades approximately 1.1 % Ni and 0.8% Cu. The Maki Showing immediately south of the Sandcherry Creek Property was dril led by Falconbridge in the 1950s and 1967-68. In the Hess Offset dike, 100,000 tons of mineralization was reputedly found at the Rivers Option west of the Sandcherry Creek Property by INCO, more than 30 years ago. The dikes have been the subject of additional sporadic exploration mainly in the Sandcherry Creek Area. Canadian Nickel Company found disseminated Ni-Cu sulphide mineralization near Schkowona Lake. In 1972, Flint Rock Mines Ltd. and Alchib Developments Ltd. carried out geophysical surveys. In 1987-89, BP Resources Canada Ltd. flew airborne electromagnetic surveys and drilled 2745 m in short holes. INCO re-staked the rest of the Foy Offset and during 1987-89 cut a 100 meter-spaced grid, geologically mapped the dike and conducted a surface magnetometer survey. In the late 1990's, Christina Wood mapped the Hess Offset, and its two junctions with the Foy Offset. Her work established that the North Range Offset dikes are evolved Sudbury rocks, that they contain multiple phases (similar to contact deposits) and especially inclusion-bearing phases (IQD) with associated sulfides that are typical of Sudbury-related units. In 1999, David Beilhattz found anomalous rock samples on the Foy Offset between Schkowona Lake and Venetian Lake (the Beilhartz Showing), and optioned the Sandcherry Creek Propetty to Consolidated Venturex who in turn optioned it to Crowflight Minerals Inc. Crowflight drilled some holes and undertook an airborne geophysical survey (Aeroquest Ltd, Magnetics and Aerotem). A Crowflight drill hole adjacent to the Beilhartz showing failed to intersect the QD dike.

Previous property work: I) anomalous soils occur both east and west of Banana Lake (Hess Offset) in the Banana Lake zone, coinciding with disseminated sulfide along a strike length of nearly a kilometer, 2) Both on the east and west sides of Banana Lake (TracanelJi Showing) net­textured and disseminated pyrrhotite-chalcopyrite occurs in outcrop towards the south margin of the QD, 3) airborne and ground gradient magnetic anomalies both east and west of Banana Lake and south of Schkowona Lake, and a distance of 3 km to the north, coincide with disseminated pyrrhotite and chalcopyrite in outcrop.

2003 property work: 1) line cutting of Sandcherry Lake, Banana Lake, Schkowona Lake and part of Venetian Lake grids, totaling 254 km; 2) ground magnetometer survey of Sandcherry Lake, Banana Lake, Schkowona Lake totaling 195 km; 3) geological mapping, prospecting and sampling on the Sandcherry Lake, Banana Lake, and part of the Schkowona Lake grids. The Foy­Hess QD dike was traced discontinuously from Sandcherry Lake in the east to east of Banana Lake; 4) backhoe stripping of QD on West side and East side of Banana Lake; 5) grab sampling and assaying of three locations: Mooihoek Pond (Sandcherry Lake grid) and West and East Banana Lake (Tracanelli Showing); 6) digitizing of geological maps. Grab sample assays and comparison to the Totten deposit in the South Range are as follows:

Notes Sample No Cu (%) Ni (%) Pt(ppm) Pd(ppm) Au Total PGE Copper Nickel Platinum Palladium (ppm) (gltonne)

Gold 1 33001 0.13 0.105 0.12 0.2 0.1 0.4 2 33002 0.307 0.281 0.24 0.28 0.1 0.61 3 33003 0.163 0.125 0.16 0.23 0.11 0.5

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4 Totten 4.7

5. Totten 110 0.47 Notes: 1. Grab sample located on West shore, Banana Lake. 2. Grab sample located on East shore Banana Lake,

Tracanelli Showing. 3. Grab sample located on cliff, Mooihoek Pond, West of Banana Lake. 4. Published grade of Totten Deposit. Worthington Offset Dike, South Range, Sudbury Basin.5. Totten Grade in Row 4, divided by 10.

2005 property work: 1) 60 line kilometers of ground magnetometer survey on the Venetian and LaForest grids, supervised by Ray Lashbrook, essentially completed all previously cut grid lines, leaving only 7 cut kilometers of grid, mainly over water, not covered by magnetometer survey. The magnetometer survey results are contained in a separate report prepared by John Steele, P. Geo.; 2) acquisition of airborne electromagnetic survey data flown by Furgo Airborne Geophysics for Crowflight Minerals Inc. The data interpretation is contained in a separate report prepared by John Steel, P.Geo.; 3) ten selected areas of the Foy and Hess dykes, including several intersections of the two dykes were stripped. washed and geologically mapped, which results are included in this report. Samples of sulphide mineralization were taken from several locations within the stripped areas to establish metal ratios and content.

Discussion:

1. Geological mapping shows that the dike has previously unrecognized similarities to Offset Dikes of the Sudbury South Range. These similarities consist of parallel dikes. dikes coalescing at right angles and sharp variations in dike thickness from 30 cm to greater than 100 meters. The latter feature is known to correlate with high potential for concentration of mineralization. Intemal textures include flowage differentiation of inclusions and sulfides.

2. The Foy-Hess Offset dikes on the Properties show characteristics similar to Nickel Offsets Mine on the Foy Offset dike south of the claims area. The CufNi/PGE ratios from three grab samples, show close similarities to that of the Totten deposit in the Worthington Offset Dike.

3. The Foy-Hess Offset quartz diorite (QD) and inclusion-bearing quartz diorite (IQD) dikes on the Properties show 110wage differentiation. sulfides with copper (Cu). nickel (Ni), platinum group metals (PGE) metal ratios and other features similar to those in the Worthington Offset dike which hosts significant ore deposits. The inclusions vary widely in composition, from granitic to ultrabasic, in dimensional size, from meters to millimeters, and in shape, from blocky to teardrop to near-spherical.

4. Sulfides in IQD have been found on the properties, but past work was neither extensive nor necessarily appropriate since knowledge of Offset dike mineralization exploration techniques was not available outside INCO expertise until quite recently. The sulphides often appear as staining halos around inclusions to thicker layers about the inclusion to massive sulphide blebs containing pyrrhotite, chalcopyrite and pentlandite.

5. The relatively sharp contrast to surrounding non-magnetic country rock has permitted good delineation of dike systems by ground and airbome magnetometer surveys. Examination of stripped IQD has revealed that many of the magnetic inclusions are fine grained equigranular highly magnetic ultrabasics. with no apparent source within the gneissic granitoid host rocks, providing a good marker horizon for the IQD. The west side of the Foy dike often displays a coarser grained QD phase which is more magnetic.

6. Examination of the contact zones of the Foy and Hess dykes does not indicate any clear cutting relationships and suggests that the dikes are contemporaneous in emplacement. Flowage indicators within the IQD phase, mainly observed imbrication direction of the inclusions becomes random within the contact zone, again suggesting contemporaneous emplacement.

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Conclusions: The properties have the appropriate geology to host economic nickel-copper-POE mineralization of the Sudbury Offset dike type and contain worthwhile exploration targets. Metal ratios and geology show significant similarities between the QD on the Properties and the QD represented by the Worthington Offset and the Copper Cliff South Offset Dyke of the South Range and the Nickel Offset Mine in the North Range Foy Offset dike. To date, fifteen magnetic anomalies and seven conductive anomalies that represent potential drill targets have been identified on the Banana Lake, Sandcherry Lake and Schkowona portions of the Dike.

Recommendations: 1) continue geological mapping and prospecting to further delineate the QD dike and its magnetic phases; 2) contract additional MegaTEM n EM survey to complete the EM data set for the Schkowona, Venetian and LaForest grids, and to identify conductance anomalies; 3) execute backhoe stripping, trenching and sampling of areas demonstrating convergence of magnetic, EM conductance and sulfide mineralization in IQD; 4) drill anomalous conductance areas within the IQD using down-hole geophysics to locate anomalous mineralization down-dip and down-plunge.

Budget Recommendation

A Phase I, budget of $138,250, is recommended. Phase II drilling would cost an estimated $595,900 for a total budget of $ 734,150.

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1.0 Introduction and Terms of Reference

The author of this report, Frank Racicot P.Geo., was retained by Tearlach Resources Inc. to

conduct a program of outcrop stripping of the Foy and Hess dikes at selected locations. The co­

author, Malcolm Fraser, is the President of Tearlach Resources Limited and directed the overall

program, including the acquisition of the magnetometer and EM survey data and writing of this

report.

The information available to the authors consists of plans, maps and geophysical surveys, as well

as some of the documents listed in the References. Both authors are familiar with Sudbury geology. The author, Frank Racicot spent 26 days in April, May and June, 2005 on outcrop

selection, supervision of outcrop stripping and washing, geological mapping, and sampling on the properties covered by this report. The author Malcolm Fraser spent eight days during the same

period on geological supervision, outcrop mapping and report preparation.

Specific acknowledgement is made to Ulrich Kretschmar, P.Geo. and Kretschmar Geoscience

Inc. for the use and adaptation of his prior geological report, dated March 301h, 2004, and

contained maps, prepared for Tearlach Resources Limited and to Mr. Hayden Butler, P.Geo. for

the maps and technical data on the Foy-Hess geology and areas provided by him to Tearlach Resources Limited and Kretschmar Geoscience Inc. at various times in 2002, 2003 and 2004.

2.0 Disclaimer

Frank Racicot, P.Geo. was retained by Tearlach Resources Limited to conduct outcrop stripping on the

Foy-Hess Offset properties of Tearlach Resources Inc. Geological mapping was carried out personally by the authors. Work was confined to the southern part of the properties in the Sandcherry, Banana and southern Schkowona Lake grid areas.

The following objectives were identified: I) continue with magnetometer surveys and geological mapping; 2) contract further EM work for the northern portions of the Schkowona, Venetian and LaForest grid areas; 3) strip, sample and assay sulfide showings; 4) drill high grade areas.

Information on previous work on the properties, was taken from a summary report by Hadyn Butler, P.Geo. (Butler, 2003) and Ulrich Kretschmar, P.Geo. (Kretschmar, 2004). Details of claim ownership is transcribed directly from Ontario Ministry of Mines and Northern Development file reports as at June 5th

, 2005 and is believed accurate at that date. To the best of our knowledge and experience, we believe that this information is correct and as complete as possible. However, we disclaim responsibility for information which we have not personally verified.

The conclusions and recommendation in this report are based on the present authors' discussions with Hadyn Butler, Ulrich Kretschmar and recommendations made in some of the reports on the property and the authors' knowledge of techniques that are in general use in mineral exploration in the Offset dike environment in Sudbury.

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3.0 Property Description and Location

The outline of the Sudbury Basin and Offset dikes is shown as Fig. 1.

The Sandcherry Creek Property comprises a contiguous claim block covering two junctions of the Fay

and Hess Offset dikes.

The following 8 claims are held jointly by David Beilhartz, P.Geo. and Harold Tracanelli.

Table 1: Claims Comprising Beilbartz-TracaneUi Property

Claim No. Units (16 Ha ) Percentage of Ownersbip Due date

Beilbartz Tracanelli

1230790 8 25 75 23 July 2005 3004227 (1241365 10 25 75 24 July 2005

1229651 9 25 75 13 Sept 2005 1229650 7 25 75 13 Sept 2005 1230029 10 75 25 23 July 2005 1230028 6 75 25 23 July 2005 1247344 2 50 50 7 July 2005 1229649 8 75 25 23 July 2005

David Beilhartz also optioned 3 separate blocks (14 claims) that are contiguous with the Sandcherry Creek Property, but separated in space. An outline of the property on an approximate trace of the Offset dikes is shown in Figure 2. The claim blocks cover an approximate 21 km strike length of QD Offset dike, and have at least 30 square ki lometers of land area.

TEARLACH

HR"

k~

10 , 2 0 ,

Fig. 1: Sudbury Basin and Offset Dike system (from Butler, 2003).

N

A

SUDBURY 6 AS);N

B fts;" sed ........... e: n t:s Onaplng FrT'l . Q r ... n oph y r ... n o rl t es

/- OffSets

,-----, -=

PR..E ~IMPA.CT

H .... r on l e n &. Nl p l ".,slng B le::z:e rdla n gre nl t:es A rche ... ....

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Table 2: Claims Comprising Beilhartz Property

Claim No. Units

Township Due date (16 Ha)

Banana Lake Block

I 1241741 14 Leinster, Tyrone 5 April 2006

Hess Offset West

! 3002187 16 Tyrone 22 July 2005

I Eastern Hess Block

! 3004355 8 Tyrone, Botha 23 Aug 2005

• 3004356 9 Botha I 23 Aug 2005

1249376 .. 6 Botha 4 Sept 2005

3004358 12 Botha 4 Sept 2005

3004357 12 Botha 4 Sept 2005

3004359 12 Botha 4 Sept 2005

3004362 16 Botha 20 Sept 2005

3004363 4 Sweeny 12 Sept 2005

3004364 6 Sweeny 12 Sept 2005

Northern Foy Block 3004361 16 Sweeny 20 Sept 2005

3004284 12 Beaumont 23 Aug 2005 3004285 8 Beaumont 23 Aug 2005

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TEARLACH

N

A

E FOY OFFSET EXTENSION

Sweeny Twp

Botha Twp

Bellha rtz

2 km

D

Tyrone Twp

B ESS OFFSET

I Bellhartz Bellhartz &.

Tracanelll

FOY-HESS Properties

Tearlach o Beilhartz Blocks

o Bellhartz &. Tracanelll Blocks

INCO & Falconbridge Mixed Claims

• Harty (INCO)

D Maki (Falcon bridge)

Other • Nickel Offsets

~ Sudbury Igneous Complex with Offset Dykes

o Known Mineralization

• Highest priority Mag targets, Schkowona Lake Grid (Bob Lo)

0 Other Mag Targets 0 Geochem Targets

Tearlach Grids ~ A. Banana Lake (:) B. Sandcherry Lake

(J C. Schkowona Lake

!) D. Venetian Lake

I!! E La Forest

Fay Twp Bowell Twp Harty

Aurora option

Harty Twp

HRB Sept 16. 2003

Aurora option

5

Fig. 2: Reqional Location Map, showinq Sudbury Irruptive, Foy-Hess Offset Dikes. INCO, Falconbridge, Aurora Platinum, Beilharlz and Tracanelli Claims, as well as Tearlach Grids.

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FOY AND HESS OFFSET DYKES I

OUTLINE OF CLAIM BLOCKS Sandcherry Creek Property (Beilhartz and Trncanelli)

I

Beilhartz

OUler I

............. QD Dyke b-ace

km a 1 2 , , ,

a I

mi les

N

A

LElNSTER Twp.

3 ,

2 ,

TYRONE Twp.

HARTY T""l'.

FOY Twp.

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Fig. 3: Location of Beilhartz. Tracanelli and other claims in Tyrone. Leinster. Botha and Sweeny Townships.

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4.0 Access, Climate, Local Resources, Infrastructure and Physiography

From the west, access to the properties is via of logging roads and bush trails from the Be'Ay

turnoff from Highway 144, approximately 40 km north of Chelmsford, and from the east, via

Capreol (northeast of Sudbury). "4 x 4" quad machines and 4WD vehicles can drive most trails

in the summer, and all trails are accessible by snow machines in the winter. Venetian Lake can

be traveled by boat, but it is shallow and full of shoals. Boreal forest cover varies, and dense

undergrowth in immature secondary growth forest is common. Several areas have been recently

logged rendering access from new logging roads relatively easy, and snow machine trails have

recently been upgraded with bridges across many of the larger streams. Climate is cold boreal

and beyond settled agriculture. The property is, however, close to Sudbury (between 35 and 55

km south) with milling and smelting facilities appropriate to the kind of mineralization likely to

be found on the properties. Topography is varied with a typical Canadian Shield glacigene habit

of bare outcrop, lakes and till-covered landscape. Unlike the Offset dikes in the South Range of

the Sudbury Structure (which often stand out in rugged relief), the Foy and Hess Offset QD dikes

are somewhat recessive topographically and have been mapped by boulder-train tracing and

magnetic survey. Glaciers tended to scour ruts in the Offset dikes where their walls were granitic.

Outcrops of both dikes are very sparse, and this explains the lack of mineral discovery until

relatively recently - there was a hiatus in Sudbury mineralization discovery between the 1890's

and the post World War II era when areas were finally explored away from the Sudbury Basin

proper. Indeed, the extension of the Foy Offset, the Hess Offset, the Worthington Offset

extension, the Manchester Offset, the Parkin Offset extension and the MacLennan Offset ( see

Fig. I) were found (or re-found) during post World War II prospecting campaigns. In fact, new

QD exposures were discovered east of the Frood Mine around 10 years ago. Government

geological mapping in the area is of fair to poor quality only the most general outline of rock

units has been mapped.

At the north end of the claim blocks, a large hydroelectric power line which traverses claims

3004361,3004284, 3004285 and 3004364 converges with the CNR rail line approximately one

kilometer north of the LaForest siding. A gravel road runs from Capreol to LaForest siding

through the claims and crosses the distal portion of the Foy Offset dike.

5.0 History

The following pertains to the Beilhartz and TracaneJli claims and immediately adjacent areas as

compiled by Butler (2003).

In the Foy Offset to the south of the property, the Nickel Offsets Mine (formerly the Ross Mine)

was operated sporadically from 1943 to 1957 with 208,551 tons milled and a production of

4,576,138 Ibs nickel and 3,327,299 lbs copper (recovered grades were approximately Ll % Ni

and 0.8% Cu). Initial production in 1943-44 comprised 10,311 tons grading 4.3% Ni, 3.5% Cu,

0.14% Co, and 0.18 ozlton PGE (Card and Meyn, \969).

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Between 1949 and 1952, FaJconbridge surveyed and drilled the Maki Showing on the Foy Offset

immediately south of the Sandcherry Creek Property no assays can be found in the assessment

files. The Hess Offset dike was discovered by a prospector and mineralization was found at the

Rivers Option west of the Sandcherry Creek Property, an area eventually drilled by INCO and

still held by them. A projected» 00,000 ton shallow mineral resource is believed to have been

outlined by this drilling (more than 30 years ago - actual data is not in the public domain).

In 1950, INCO (then the Canadian Nickel Company) did some limited magnetometer and shallow

drilling on the Foy Offset. They found disseminated Ni-Cu sulphide mineralization as far north

as Schkowona Lake, but assays do not appear to have to be recorded under the assessment

reporting file regime in Ontario at that time.

During 1967-68, FaJconbridge did further drilling on the Maki Showing, and Anaconda American

Brass Ltd. did some surface work on what is now the Sandcherry Creek Property.

In 1967, INCO (Canadian Nickel Company) carried out a further shallow drilling campaign in the

Schkowona Lake area and reported dike mineralization but, once again, no assays were reported.

During 1972, Flint Rock Mines Ltd. and Alchib Developments Ltd. carried out some geophysical

surveys.

In 1987-89, BP Resources Canada Ltd. flew airborne electromagnetic surveys and drilled 2745

meters in short holes on the Sandcherry Creek Property. Disseminated sulfides in inclusion­

bearing QD were reported but, once again, not the assays. In response to BP's presence, INCO

re-staked the rest of the Foy Offset and during 1987-89 cut a 100 meter-spaced grid, geologically

mapped the dike (but only on the cross lines) did a surface magnetometer survey and a largely

irrelevant (VLF) electromagnetic survey. No follow-up assays or drilling were done by INCO

since BP had by then dropped its interest in the area.

In the late J 990' s, as part of an M.Sc. thesis at the University of New Brunswick, Christina

Wood mapped the Hess Offset, and its two junctions with the Foy Offset. Her work established

that the North Range Offset dikes are evolved Sudbury rocks, that they contain multiple phases

(similar to contact deposits) and especially an inclusion-bearing phases (IQD) with associated

sulfides that are typical of Sudbury-related units (Wood C.R. & Spray, J.G., 1998). Other

scientific work from this institution on the Foy Offset is pending publication.

In 1999, David Beilhartz, a self-employed geologist, found anomalous rock samples on the Foy

Offset between Schkowona Lake and Venetian Lake (the Beilhartz Showing), and optioned the

Sandcherry Creek Property to Consolidated Venturex Holdings Ltd. who in turn optioned it to

Crowflight Minerals Inc. Crowflight drilled some holes and undertook an airborne geophysical

survey (Aeroquest Ltd, Magnetics and Aerotem). Beilhartz and Tracanelli filed the airborne

results for the Sandcherry Creek property with the Ministry of Northern Development and Mines.

Crowflight did not pay Aeroquest for the northern half of the airborne survey and this data may

11

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be available for purchase. Due to incorrect positioning, a Crowflight dri\l hole adjacent to the

Beilhartz showing failed to interseet the QD dike itself. Airborne Aerotem surveys are not likely

appropriate electromagnetie channels (150Hz) since the rocks in the region are highly resistive,

and pyrrhotite is a superconductor. However, the airborne magnetic surveys are quite valuable,

and especially the gradient magnetic surveys, and will be discussed below.

In 2002, claims on the Foy Offset that had been staked on behalf of Crowflight Minerals Inc.

lapsed, and some of the ground was re-staked by David Beilhartz, and then optioned to Tearlach.

In late 2002 and early 2003, Tearlach commissioned the cutting of 254 line kilometers of 2 meter

grid lines in five (5) grids entitled the Banana Lake, Sandcherry Creek, Schkowona Lake,

Venetian and LaForest grids, covering all of the 26 km of the Foy and Hess Offset dikes

contained within the areas of the optioned mineral claims. A total of J 95 kilometers of high

sensitivity ground magnetometer surveying was completed on the Banana, Sandcherry,

Schkowona and Venetian grids. In October, 2003, Ulrich Kretschmar, P.Geo. was retained to

carry out a program of geological mapping and stripping on the three southern grids, the Banana,

Sandcherry and Schkowona grids. Kretschmar's work was repOIted in a 2003 NI 43-101

com pi iant report

6.0 Brief Geological History of the Sudbury Basin

6.1 Introduction

The Sudbury Basin represents the largest concentration of copper and nickel sulfides on earth

and, since 1888, approximately 950 million short tons of ore have been mined in the Sudbury

Camp for a total present-day value of major metals recovered of approximately SUS 121.5

billion.

Much has been written on the geology of the Sudbury Basin and its Cu-Ni-PGE deposits and only

the briefest outline of its geology can be presented here. Timely research, and a synthesis of

Offset Dike Type mineralization in South Range Offset Dikes, which includes detailed work on

the Worthington Offset dike has been published in a recent issue of Economic Geology

(Lightfoot & Farrow, 2002). North Range Offset Dikes, specifically the Foy-Hess dike were

studied by Wood & Spray (1998).

6.2 Geology of the Sudbury Basin

The area is underlain by an infrastructure of Archean granites, granitic gneisses, and thin veneers

and remnants of greenstone belts. The greenstone belts contain metamorphosed mafic and felsic volcanics, coarse agglomerates, sediments and iron formations, and host small zinc-rich VMS

deposits (e.g., the Geneva Lake Mine). In tum, the Archean is unconformably overlain by

Proterozoic Huronian Supergroup sedimentary units intruded by Nipissing Diabase. The north­

striking Matachewan Dike swarm traverses the region as well.

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1,850 million years ago, a major meteorite impact event formed an approximately 250 km wide

structure with a very large crater melt sheet that is now extensively eroded. During the crater

excavation phase (initiation, ~ 1-2 minutes duration), shatter cones produced by shock waves

permeated the rocks, and can be seen on the properties. During the crater's relaxation phase

(final phase, ~2 to 10 minutes duration). pseudotachylyte zones actively formed (also called

Sudbury Breccia silicate melt zones caused by the grinding of adjacent rock units in mega­

slides), and are present as well on the properties. After their production (minutes duration),

pseudotachylyte melts actively intruded their adjacent walls and also self-intruded showing

distinct phase relationships and "melt pods" (blobs with igneous textures). At a much later stage,

evolved portions of the overlying crater melt sheet intruded downwards into fissures in the

centre of the impact structure, and these formed the Offset dikes with associated economic nickel­

copper platinum-group-element (PGE) mineralization. It is postulated that the source of the metals in the Sudbury Structure was in the rocks impacted by the meteorite rather than in the

meteorite itself. Offset dikes contain complex mixed silicate liquid phases, including a sulphide­

free phase of quartz diorite ("QD") commonly on dike walls, an inclusion-bearing phase with

sulphide ("IQD") commonly in the dike centre, and "anatexites"-post-impact evolved melts formed by melting country rock at the base of the crater melt sheet by superheating. In the Offset

dikes, QD, IQD and anatexite penetrate each other. Anatexites can have chilled-margin relationships with QD types. Melt pods (with igneous textures) can also occur in the anatexite. At

the Maki showing just south of the Sandcherry Creek Property. a grey QD dike is seen to chill against an anatexite, both silicate liquids using the same fissure during crater adjustment injection

below the crater melt sheet. Anatexite should not to be confused with pseudotachylyte.

In the Sudbury Structure. all basal units seem to intrude each other - a very complex situation. For instance, footwall "granitic" breccias (melts with footwall clasts and boulders) can intrude

upwards (like diapirs) into felsic norite units (cumulates),

Two subsequent orogenies, the Penokean and the Grenvillian, preserved the remains of the crater

melt sheet as the Sudbury Igneous Complex, and the ore bodies. The current (erosional)

dimensions of the crater are approximately 60 km in a northeast direction by 30 km wide and exploration has focused around and in close proximity to the present crater rim. A northwest­trending olivine diabase dike swarm (the Sudbury Dike Swarm) cuts the claims and is readily

seen as linear magnetic highs on magnetic maps.

6.3 Ore Deposit Types

Genesis of Sudbury mineral deposits can be compared with activity in a blast furnace. Within the

furnace, upon oxidization of the sulphide bearing charge, the molten heavy copper nickel matte

settles as a heavy liquid to the furnace bottom while the lighter silicate components (slag) float to

the top. The separation process is facilitated by the presence of silica, which acts as a flux.

Around the Sudbury Basin, massive sulphide ores form grape-shaped pods and sheets at and

below "mafic norite". An unmapped unit, known as the "footwall breccia" hosts much of the ore. Massive sulphide ore gathered and dripped down into the "footwall breccia" after the sulphides,

13

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exsolving from the silicate- rich melt sheet. without oxidization, coalesced as a separate

immiscible liquid phase (comparable to the furnace matte) in the superheated impact melt sheet

(the slag). The mafic norite can be regarded as the slag in the furnace analogy. This sulphide

matte separated because the high silica content of the impact melt sheet fluxed the sulphide from

the liquid. The nickel originated in the nickel-bearing minerals (olivine and serpentine). the

copper in the "basaltic material" and the PGE from "oxide minerals" in the impact target zone.

Four main ore types are recognized in the Sudbury Camp as follows:

Type 1: "Normal" Footwall Ores. These mainly pyrrhotite ores are found adjacent to and below

the mafic norite. The PGE values are low. Examples include Levack, Murray and Falconbridge mines.

Type 2: "Separated" Footwall Ores. These are "evolved" ores, often containing millerite (NiS)

and showing elevated PGE values (several grams per tonne). They occur beneath Type 1 deposits

and probably evolved from them. e.g. McCreedy East Mine.

Type 3: "Superfault" Ores. Superfault is a new geological term to describe the soles of impact crater-wall landslides. They are crustal collapse features extending under the impact melt sheet and also from the crater wall. These landslides and material from crustal rebound in the crater centre fill much of the cavity excavated by the meteorite impact. The grinding of rocks during

these super landslides generated molten material within the superfauIts. These melts (pseudotachylyte) acted as channels for accumulated massive sulfides dripping down from above.

The sulfides simply ran down into the pseudotachylyte while it was still molten.

Type 4: "Offset" Ores. They occur in cracks that formed during and after crater formation below

the melt sheet. The cracks may be concentric or radial. As the post-impact crustal stress field

deformed the rocks beneath the melt sheet, cracks opened up and were infiltrated from above by molten material, some of which contained ore (matte) concentrations. Fragments of country rock also fell into these cracks "fluxing" additional sulphide from the melt. Offset ores have higher

PGE content than normal footwall ores, with values in their middle to lower levels assaying 3 to 5

glt PGE. Nickel and copper values are also significant. The deposit type is best illustrated by INCO's recently discovered Kelly Lake deposit (Copper Cliff Offset Dike), and by the mines and

deposits in the prolific Worthington Offset Dike, including the Crean mine and the recently

expanded Totten and Victoria deposits.

6.4 The Offset Dikes

The Offset Dikes (which host almost 50% of the Sudbury mineral resource according to Lightfoot

& Farrow, 2002. p.1420) extend more than 20 km away from the present-day rim of the Sudbury Basin. They emanate from the main mass of the Sudbury Igneous Complex and are disposed

radially and concentrically from an originally much more extensive crater and impact melt sheet. Ten such bodies are now known, many of which are directly associated with world class Ni-Cu­

PGE deposits.

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Within different Offset dikes the type and style of brecciation developed in the country rocks

played an important part in controlling the distribution of the discontinuities in the quartz diorite

as well as the location of orebodies.

The mineral potential of the different Offset dikes may have been largely controlled by the

availability of magmatic sulfide from the overlying main mass of the Sudbury Igneous complex,

and this in turn may have depended on the thickness of the melt sheet.

6.4.1. The Worthington Dike

The Worthington Dike in the South Range of the Sudbury structure, is well studied and hosts

several mineral deposits, including from the northeast to the southwest: the Ellen Pit, Crean Hill

Mine, the Victoria Mine, the AERIKidd Mine, the Worthington Mine, the Totten Mine and the

Michener Occurrence, all in a distance of about 15 kilometers in the Denison, Drury and Lome

Townships. It is instructive to study this South Range Dike in order to better understand the

geology of the Foy-Hess properties.

The area of the Worthington dike is underlain by a succession of pelitic metasediments and

metagabbroic rocks. The metapelites lie in normal stratigraphic suecession above, and sometimes

grading into, the quartzite unit in western Denison Township. This unit is about 1700 meters

thick and consists of fine-grained pelitic sediments with lesser amounts of meta-greywacke, sub­

greywacke and quartzite. The rocks are composed mainly of quartz, muscovite, chlorite, biotite

and plagioclase. Generally, these rocks are metamorphosed to the level of the greenschist facies,

though in a few instances, higher greenschist and lower almandine facies have been observed to

the west of the property. Primary structures are still visible.

This pelitic metasedimentary unit is underlain by mafic volcanic rocks. This volcanic unit is a

succession of dark green metamorphosed massive, amygdaloidal, porphyritic and pillowed lavas,

with minor fragmental units. The chemical composition ranges from andesitic to basaltic. The

rocks are now mainly amphibolites, with both hornblende and actinolite, zoned plagioclase

(andesine-oligoclase) and variable amounts of quartz, chlorite, epidote, carbonate, sericite, pyrite,

pyrrhotite, magnetite and ilmenite. The rocks are fine to coarse grained, and display "sieve"

textures. Shearing has produced a well developed foliation and stretching of volcanic structures.

There are areas of brecciation; some of these are primary volcanic features, but there are

indications that others may be later imposed Sudbury-type breccias. (Card, ] 968).

Sulfides are fairly common throughout the above units. Generally, pyrite and pyrrhotite are the

only sulfides present, though some rusty zones, less than a meter in length, may contain minor

chalcopyrite and magnetite. Chemical analyses of the rusty zones show the presence of

anomalous chromium, copper, nickel and lead.

The two units are intruded by several ages of granitic rocks, the most prominent being the

Creighton Pluton, a large quartz monzonite stock with areas of granite and quartz monzonite, as

well as veins and pegmatites.

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The Worthington Dike consists mainly of quartz diorite with fragmental (or inclusion) phases.

The Worthington Dike is intrusive into all the rocks sunounding the Sudbury Basin, mainly

foliated metavolcanic and metasedimentary rocks of the Precambrian Huronian Supergroup and

the Nipissing Intrusions. It is itself cut by later diabase dikes and faulls. It is a somewhat

discontinuous nanow veltical to subvertical body that trends southwesterly through Denison and

Drury Townships, and perhaps through Lome Township. It is commonly about a 30 m wide,

widening in short stretches to 53 m although Card (1986) states that north of the Creighton Fault

it may reach 250 m. It appears to have been displaced by the Creighton Fault, though the

structural relationship is unclear.

The dike is composed of quartz diorite (QD), a fine grained, dark grey rock composed of zoned plagioclase (An

S4 to An

20) hornblende, actinolite, biotite, quartz, sulfides and minor epidote,

chlorite and carbonate. It includes zones of 'inclusion phase' diorite (IQD) with numerous

amphibolitic fragments. The inclusions consist of almost entirely actinolite with minor amounts

of quartz, plagioclase and opaque minerals. These inclusions, generally rounded, range from a

few inches to several feet; and may in patches constitute up to 75% of the rock.

Sulphide mineralization is common in this unit, as fine blebs and disseminations, and in stringers.

In the ore shots, the quartz diorite is entirely replaced by the su lfides, though inclusions seldom

are. This replacement results in an ore 'breccia', with fragments well displayed as well as non­

mineralized fragments. There is a preferential concentration of sulphide mineralization in these

"inclusion phase" diorites, and the geological consensus in the Sudbury Camp appears to be that

the inclusions or fragments are an essential part of the mechanism for trapping the ore.

The massive to semi-massive magmatic sulfides are associated spatially with large meta-gabbro

within the IQD. The iron-rich sulfides occur interstitially to these inclusions. The inclusions

range in size from a few centimeters to 8 to 10 meters. Biotite-rich IQD occurs locally around the

larger inclusions. These biotite grains tend to sub parallel the strike of the dike. Veins of

chalcopyrite occur throughout the IQD; these may crosscut metagabbro inclusions. Veins host

much of the PGEs, gold, lead and zinc minerals. A few chalcopyrite-bearing quartz veins may be

seen up to 15 meters from the QD contact. The major sulfides consist of pyrrhotite, pentlandite,

chalcopyrite, with minor sphalerite and galena. Minor suI ph-arsenides and arsenides cobaltite,

gersdoffite and nickelite are present. The platinum group minerals include michenerite,

spenylite, and froodite. Other precious minerals are hessite and electrum. The PGEs and

gold/silver are hosted in chalcopyrite, amphibole, chlorite pynhotite, quartz and cobaltite I gersdoffite (Stewart et al 1981). The mineralized zones are usually pear-shaped, often en

echelon, and may range from a few tons to a million tons or more.

The quartz diorite of the Offset dikes is very similar petrographically, except for finer grain size,

to the quartz diorite of the Sudbury Igneous Complex at the rim of the Sudbury Basin. There appears to be continuity between the Worthington Offset Dike and the Victoria Mine Embayment

at the edge of the Sudbury Igneous Complex (SIC). The dike appears to occupy a radial fracture

caused by the meteorite impact. The quartz diorite may have moved into the fracture sideways

from the SIC, but also downwards; for the original impact crater was probably several times

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larger than the eroded present day basin.

There are two main rock types in the Worthington Offset Dike: 1) Inclusion-bearing Quartz

Diorite (IQD), a medium grained quartz diorite which commonly contains rounded fragments of metasedimentary rock, Nipissing diabase and rarer fragments of gabbro, granite and granite gneiss and; 2) Inclusion-free Quartz Diorite (QD): as above without inclusions.

The IQD tends to be within the QD, often near the top. It is the most important part of the Offset

dike as the sulphide mineralization occurs preferentially within it. The inclusions appear to be a

necessary part of the trapping mechanism for the ore. The sulphide melt phase accumulated

mechanically around large metagabbro inclusions and solidified to form ore. The process responsible for the accumulation is probably the damming effect of these pebbles on the flow of

the sulphide liquids.

While the primary magmatic processes resulted in the accumulation of these nickel copper orebodies, there is evidence that secondary processes helped to enrich these orebodies in copper and precious metals. This is supported by the abundance of copper veins and disseminations that

crosscut the gabbroic intrusions. The metallogenesis is complex, and as the understanding of the processes and timing of these deposits becomes understood, it may help in the exploration and exploitation of new such deposits.

Lightfoot & Farrow, 2003, p. J 419 give the following description:

"The Worthington Offset Dike (Figure 3) extends for approximately 15 km away from the southwestern margin of the

1.85 Ga old Sudburv Igneous Complex. The dike is zoned with respect 10 inclusion and sulfide content. Marginal

chilled quartz diorite is transitional into medium-grained quart;: diorite. These rocks are sulfide under saturated.

contain small inclusions from the wall rocks, and are preserved along much of the dike. Locally, the dike contains a

core of inclusion-rich diorite, which can be choked wilh inclusions surrounded by semi massive to massive sulfides.

The more heavily mineralized inclusion-rich quarl;: diorile contains up to lO to 75% amphibolite inclusions, which are

petrologically and geochemically similar 10 the immediately adjacent country-rock amphibolites, locally termed

"Sudbury gabbros". The semi-massive to massive SUlfide zones form subverlical pipes, much like the deposits of the

Copper Cliff Offset dike, and these are associated with locations where the Worthington dike widens from 2-10 30 m to

50 to 80 m. The average metal tenors of the sU(fide with < 5% sulfur are calculated to be 7 % Ni and 13% Cu. Thus

the dike ores have a much higher CulNi ratio than orebodies within the contact sublayer (CU/Ni approx 1)."

7.0 Past Exploration on the Foy-Hess Offset Dike

Figures 4 to 9 show the grids and magnetometer surveys which were cut during the 2003 program as well as the location of past work on the Properties.

Figs. 4a and 4b, covering Tyrone and parts of adjacent townships show the location of the cut grids, claims and the two junctions of the Foy and Hess QD dikes (on claims 1241369, and 1229651).

17

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TEARLACH Tyrone & Leinster Twps.

REUITIVE LOCATIONS OF GRIDS ON HESS OFFSET DYKE & FOY-HESS DYKE JUNCTIONS

lKm

6.

N ~ ~ ....

A '" .... <lI <lI .... Z

'" 0 Z Ci iU (:: -'

Lit tle Sandcherry Lake

SANDCHERRY LAKE GRID

CLAIM BLOCKS

BEILHARTZ AND TRACANELL

c::::J BEILHARTZ

c:::::J Sept 08, 2003 H

Fig. 4a: Relative locations of grids on Foy & Hess Offset dike an d Optioned Ownership .

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TYROr-.'E TOWNSHIP FOY -HESS QD DYKES

o kilomelres

1 , 0- drill holes DUla from Consolidated Venture;>: Holdings Inc.

C BrKlmalous samples "", QDDyhll1lcc I Pllrnllcl Foy Dyh (not QD)

A Banana Lake Grid B. Sandcherry Lake Grid

Fig. 4b: Hess Offset Dike and Fay-Hess junction on Sandcherry and Banana Lake Grids.

19

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The Hess QD dike has an apparent left-lateral fault displacement along Sandcherry Creek, belonging to the ""02 Onaping Fault Swann" a series ofNW trending Proterozoic faults, usually with the same sense of displacement. Immediately to the west of the first Foy-Hess QD dike junction there are several disseminated and vein sulphide showings around Banana Lake. A soil survey by Bei lhartz and Tracanelli found co incident soi l anomalies in this area, and BP drilled some shallow holes finding sulphide in IQD. Christina Wood (Wood, C.R &Spray J.G , 1998) found a significant inclusion population in the Offset dikes around here including 2-3 em fragments of local Archean Cartier granite, Archean gneiss, plagioclase-rich "exotic" inclusions, metabasic inclusions, fragments of probable SIC main mass, and recrystallized pseudotachylyte fragments. The Hess Offset thickens where it joins the Foy Offset and contains a significant inclusion population with blocks up to 10m in size. Inclusions have been seen both in the centre and along the margin of the Hess QD.

Figs SC, 6D and 7E indicate the location of the Foy-Hess dike, soil geochemical anomalies and drill holes from previous work.

• ,

, " _"-_~I ..

, Ql) ll)"" ..... I P .... II., f ")!"»ke (_Qflj C. SChkOW()ll3 Lake Grid

I I ~"

Fig. SC Banana Lake Grid, location of Foy-Hess dike and location of soil geochemical anomal ies and drill holes from assessment work files.

20

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.,

. ' ,' it,,, .•• -' ,\ -'?,

x.~. i). "'I_ T' ...,..!..- ' '" ':, BolliA TOWNSHIP FQY-HESS QD DYKES

~-,o~' . • ', .

" -. • i'." _ ,t . . ".'. . f. " ' ;i: .-,",

kilomcln:s

o 2

--strong anomaly m~-dium ,,"()Inal), wcak a llomaly

Fig 6D: Location of Venetian Lake Grid and Foy Dike.

-. .>!£.

.' .'

• o • -'. -•

l . Sketch of Ground t-. lagn< using [NCO GOLD DA~

D. Venetian Lake Grid

21

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SWEENY TOWNSHIP FOY-HESS QD DYKES

o kilom<:l= ,

2 I

Dais from INCO GOLD Outcrops of QD Dyke

Illagncl;c Anomaly on QD Dyke E. Laforest Grid

Location of LaForest Grid and Foy Dike in Botha and Sweeny Township

22

HR"

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Previous work is summarized below and in Figures 8 and 9:

1) Anomalous soils occur both east and west of Banana Lake (Hess Offset) in the Banana Lake

zone, which also contains patches of disseminated sulphide along a strike length of nearly a

kilometer.

2) On the east E. side Banana Lake, (Tracanelli Showing) net-textured and disseminated

pyrrhotite-chalcopyrite occurs in outcrop towards the south margin of the QD and similar

mineralization occurs on the west side of Banana Lake.

3) A marked constriction in dike width from 80 m to 10 m occurs where the QD dike crosses

Banana Lake.

4) An airborne survey by Aeroquest (which did not cover the western portion of the Hess QD)

shows strong gradient magnetic anomalies both east and west of Banana Lake. These anomalies

coincide with disseminated pyrrhotite and chalcopyrite, noted above in outcrop. A; similar

magnetic high occurs also north of the Maki Showing (Fig. 9) just south of the lower Foy-Hess

junction.

5) North of the upper Foy-Hess junction there are anomalous soil samples. North of this junction,

drilling was carried out by INCO.

6) Strong gradient magnetic anomalies occur south of Schkowona Lake, coincident with known

mineral ization (lake at boundary between claims 1229650 and 1230029, see Fig 5).

Mineralization was found by prospector Beilhartz up to 2 km north of Schkowona Lake near the

north boundary of claim 1230029 (Figure 3B). The northern limit of known disseminated

mineralization has a strike length of around 3 kilometers.

INCO magnetic highs on claim 3004359 (Figure 8) are in an area reported to have had a nickel

claim in the 1930' s, although the location is now lost.

The Foy QD dike crosses a main transmission power line and the track from Capreol to LaForest

on claim 3004285 (Figure 7E).

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TEARLACH BANANA. LAKE GRID

1230790

Fig 8: Simplified ground magnetics, so li geochemical anomalies and known sulfides in QD

TEARLACH

Join ing Scllkowonl LIke Grid

N

A

3002187

~ Sketch of .. Magnetic Contours

s.>t..-t>e< • 2(0)

!!] Known sulphide In QD t Magnetic ~rI~ets D Foy-Hess Junction m Soli Geochem Anomaly

Fig. 9: Simplified magnetics, known sulfides In QD and soli geochem anomalies from previous work.

24

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8.0 Work Accomplished in 2003

Work to date on the optioned claims, which cover a 26 km strike length of the Foy Offset Dike has consisted of line-cutting, high sensitivity ground magnetometer surveys, mechanical stripping and reconnaissance geological mapping, designed to develop targets for drilling.

This report also updates information on previous work and includes a map summary of recent airborne data flown by Aeroquest Ltd. for the previous option holder on the Sandcherry property (Crowflight Minerals Inc on behalf of Consolidated Venturex, in 2(01).

An outline on MNDM claim maps of the grids cut as part of the current program is given on Figs 10, II, 12 and 13. To date Banana Lake, Sandcherry Lake, Schkowona Lake and Venetian Lake grids have been cut at 50 m line-spacing, and magnetometer surveys and geological mapping was carried out on some of the grids. The following work was accomplished during course of this program.

I. Line cutting of Sandcherry Lake, Banana Lake, Schkowona Lake and part of Venetian and LaForest Lake grids, totaling 254 km.

2. Ground magnetometer survey of Sandcherry Lake, Banana Lake, Schkowona Lake and part of the Venetian grid, totaling] 95 km.

3. Geological mapping, prospecting and sampling on the Sandcherry Lake, Banana Lake, and part of the Schkowona Lake grids. Geological maps of the Sandcherry and Banana Lake areas are shown as Figures 14 and 15. The Foy-Hess QD dike was traced discontinuously from Sandcherry Lake in the east to east of Banana Lake.

4. Backhoe stripping of QD on West side and East side of Banana Lake.

5. Grab sampling and assaying of three locations: Mooihoek Pond (Sandcherry Lake grid) and West and East Banana Lake (Tracanelli Showing).

6. Digitizing of geological maps

25

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A. Banana Lake Grid

·+---lkm )

N

a

05N

00 ~~,--........ ,

01 S OOE f. "~$7 1 ~m~n:t 600 .47 DD~ Hess Offset D~k;

Southwest comer of Tyrone Township

.477 DD~ 478 DO~

Base Line 73° East of North (UTM)

Fig. 10. Banana Lake Grid

26

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B. Sandcherry Lake

(

50E

Hess Offset Dyke Base Line 73° East of North (UTM)

Fig. 11: Sandcherry Lake Grid.

27

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C. Schkowona Lake Glid --:::--~=

' d r .

Q

(

N

A

T earlach Resources Ltd

19 at 500 '"

~ Foy Offset Dyke

Tyrone Township ~-L---------:----1

i I I I I I I I I I

Fig. 12: Schkowona Lake Grid.

28

28

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29

N

a

Fay Offset Dy\ce Sweeny T awnship

Fig. 13: LaForest Grid

Geological maps of the Sandcherry, Banana and part of the Schkowona Lake grids are shown as Figs. 14 and 15.

29

Page 33: 2. 3. ECEIVED 4. 2 ,0 5 5. GE05LIt: ,tffl

HRB

~ + +

Tearlach Resources Banana Lake Grid

+ +

+ + 1230790

:~) .

+

Tearladl Resour~s Ltd

a..:"'1z,u1H , U.»J'06. 1C6<l)O r,...._ .. ""=-_. ," ___ '_00'- 4

!Ow. MAO_] IIT'5Hlil4

GEOLOGICAL MA.P G.oIow by UlriC. KT.tschrn ...

Fig. 14: Geolog ical Map of the Hess Offset Dike, Sandcherry Lake area

Tearlacn Resources Ltd.

\!V~OII + N

~ iI.1UOII +

+ +

<1::1' .... ~-... "'"'---"""_."' ... o ~;:;.r:..,:"a

+ + ~

... /-.... &.,.." .. ~ ,

\

GEOlOGiCAl MAP Geoloq'f' by Ukid1 Krelsd'lm ....

Fig. 15: Geolog ical Map, Sandcherry Lake and Schkowona Lake area.

30

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8.1 Results of 2003 Work

A brief summary of findings follows: On the Sandcherry Lake G rid , L 100 area, IQD conta ins •

disseminated chalcopyrite and appears to trend 070 . Detailed stripping and exposure of contact is •

required. Good contact of IQD exposed at L5E 4N trending 110 . 1-5% disseminated sulfides. Excellent exposure of IQD al LlO+OOE 3+50N, 1-5% disseminated sulfides. In vicinity of Ll4+50 4+50N, there are two diabase dikes trending approx N- S. One is older. with textures and weathering characteristics similar to IQD. The younger one contains large zoned olivine crystals. IQD thins to 70 cm to the E of this younger dike.

On the Banana Lake B Grid, N shore, Wend of Banana Lake, there is a good sulfide showing requiring further stripping and washing. QD is up to 100 m thick and has granite fragment inclusions and minor sulfides. It is readi ly accessible by backhoe.

Outcrop stripping was completed from Ll6E to 21 E and exposed one area with significant sulfides at the Tracanelli showing.

Photo I: Tracanelli Showing. East Banana lake, Banana Lake Grid (photo by Hadyn Butler)

Between L20+00 and L27+50E, IQD can be traced continuously, wi th sulfides in several locations. At L27+50 at the shore of the lake, the IQD dike and both contacts are exposed on the face of a cliff.

A diabase dike runs N·S from L28+OO at the BL and appears to Offset the IQD an unknown distance. It does not appear to occur again 10 the east on the Banana Lake grid. Magnetic highs E of L30+00 can be explamed as being related 10 a coarse grained, feldspar porphyritic granite with a high iron oxide content. As there is almost 100% outcrop in the area in thi s area of high relief

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and since the QD was mapped III this area by Christina Woods, further reconnaissance IS

required.

Assays of grab samples from three locations were carried out by Swastika Laboratories. (See Assay sheets, Appendix A).

Table 3: Grab Assays from Mooihoek Pond and E & W Banana Lake

Notes Sample Cu (%) Ni(%) Pt(ppm) Pd(ppm) Au Total PGE No Copper Nickel Platinum Palladium (ppm) (gltonne)

Gold

I I 0.13 0.105 0.12 0.2 0.08 0.4

2 33002 0.307 0.281 0.24 0.28 0.09 0.61

3 33003 0.163 0.125 0.16 0.23 0.11 0.5

4 Totten 1.4 1.9 4.7

5 Totten 0.14 0.19 0.47

110

Notes

I. Grab sample location: West shore Banana Lake 2. Grab sample location: East shore Banana Lake, Tracanelli Showing 3. Grab sample location: cliff, Mooihoek Pond, West of Banana Lake 4. Published grade of Totten Deposit, Worthington Offset Dike, South Range. 5. Totten Grade in Row 4, divided by 10.

8.2 Results of 2005 Work

a) Ground Magnetometer Survey

The ground magnetometer survey was carried out using the same instrumentation and operator as used for the prior ground magnetometer survey to ensure continuity of readings and correlations. Readings were taken on each cross line at 12.5 meter intervals. Cross lines are spaced at 25 meter intervals. The magnetometer survey covered 50 of the remaining 67 line kilometers of grid lines cut on the Schkowona, Venetian and LaForest grids. The remaining 17 line kilometers will be completed in the next ensuing winter as and when ice conditions permit. All corrected data was submitted to Meegwich, Inc. of Temagami for preparation of colour plans at I :5000. Compressed versions of the Venetian and LaForest grid plans appear below as Figures 16 and 17.

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! )

I r..J . ' . '""

I .-1=---1 -------

,

;

, -

f -\

r r

-

~- f

_.-~ . - - . - " -

!

3009847

Figure 16: Venet ian Lake Grid contoured magnetic plan.

I

I

i

i

33

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..... _ 1 .--.

Figure 17: LaForest Grid contoured magnetic plan

34

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A separate interpretive geophysical report, dated June, 2005, has been prepared by John Steele, P.Eng. of Asian Tiger Resources, Toronto, Ontario, incorporating the results of the present magnetometer study, the prior magnetometer study completed in 2003 and the electromagnetic survey data referenced below.

b) Airborne Electromagnetic Survey

In April, 2005, Tearlach Resources Limited purchased MegeTEM II electromagnetic data developed and compiled by Furgo Airborne Geophysical Limited in 2004 under contract to Crowflight Minerals Inc. The MegeTEM II data is purported to have a depth of penetration of approximately 500 feet and has been used with success in identification of buried conductive mineralization on other parts of the Sudbury Igneous Complex. The data acquired covers the southern half of the option Foy Hess areas held under option by Tearlach.

A separate interpretive geophysical report, dated June, 2005 has been prepared by John Steele, P.Eng. Seven areas of conductive anomalies were identified by Steele from the data set and the outcrop stripping program was adjusted to include those anomalous areas in the stripping program.

c) Outcrop Stripping, Washing and Geological Mapping

Ten areas, each containing sections of the Foy and / or Hess Offset dikes. were selected for stripping, washing and mapping, based upon recommendations previously made by Ulrich Kretschmar referred to above, and evaluations by the authors derived from the occurrences of magnetic highs, prior known sulphide occurrences and electromagnetic conductive anomalies as identified by John Steele, P. Eng ..

Each selected area was stripped of overburden and washed with water to provide clean surfaces suitable for geological mapping. Frank Racicot, P.Geo. carried out geological mapping of each of the ten outcrop areas. The mapping has been incorporated into the geological maps previously prepared by Ulrich Kretschmar and Hayden Butler, which appear as Figures 14 and 15. The sketch maps of the stripped outcrops are attached in Appendix A-3 as Areas 1,2,3,4,5,6,.7,8,9 and 10.

9.0 Sampling Method and Approach

The three samples previously taken by Ulrich Kretschmar, P.Geo., reported in Table 3 and the seven samples taken for this report by author Frank Racicot, P.Geo., reported in Table 4, were grab samples, considered representative of sulfide mineralization present at the location sampled. All samples were taken independently of co-author Fraser. The samples were taken with a sledgehammer and chisel. Weathered surfaces were chipped off. Each sample, weighing two or three kilograms, was placed in plastic bags with sample tags. Locations were flagged on the ground with red ribbons.

10.0 Sample Preparation, Analyses and Security

Samples were shipped by courier to Swastika Assay Labs in Swastika, where they were processed and analyzed by their standard techniques.

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11.0 Data Verification

Results of the assays were sent bye-mail from Swastika Jab to Frank Racicot, P.Geo., one of the authors of this report. Original assay sheets and invoice were sent to Tearlach Resources in Vancouver, with copies to Frank Racicot, P.Geo.

12.0 Adjacent Properties

The Nickel Offsets mine (a past producer, reported 208,551 tons) was found on the Foy Offset dike to the south of the claims area, and several sulphide showings have been shallow drilled around and on the properties. The Maki showing occurs to the south of the Foy-Hess junction. The surrounding area was described in Section 7.0.

13.0 Discussion

1. Geological mapping shows that the dike has previously unrecognized similarities to Offset Dikes of the Sudbury South Range. In those portions of the Banana Lake, Sandcherry Lake and Schkowona Lake grids mapped to date (Figs 14, 15), there are parallel dikes, dikes coalescing at right angles and sharp variations in dike thickness from 30 cm to greater than 100 meters. The latter feature is known to correlate with high potential for concentration of mineralization. Intemal textures include flowage differentiation of inclusions and sulfides.

2. The Foy-Hess Offset dikes on the Properties show characteristics similar to Nickel Offsets Mine (a past producer, reported 208,551 tons) on the Foy Offset dike to the south of the claims area. The CulNi/PGE ratios from three grab samples taken by Ulrich Kretschmar, P.Geo., show close similarities to those of the Totten deposit in the Worthington Offset Dike.

3. The Foy-Hess Offset QD and IQD dikes on the Properties show flowage differentiation, sulfides with Cu, Ni, PGE metal ratios and other features similar to those in the Worthington Offset dike which hosts significant ore deposits.

4. Several sulfide showings around and on the Properties have been drilled to shallow depths by previous operators, but results are not available.

5. Sulfides in inclusion-bearing quartz diorite (IQD) have been found on the properties, but past work was neither extensive nor necessarily appropriate. Knowledge of Offset dike mineralization exploration techniques has not been available outside INCO expertise until quite recently.

6. The relatively sharp contrast to surrounding non-magnetic country rock permits good delineation of the dike systems by ground and airbome magnetometer surveys.

7. Correlation of highly magnetic inclusions in the IQD and the occurrence of more magnetic phases of the Foy Offset dike, particularly on the westem side, provide good explanation of the mapped magnetic anomalies and also provide a usable mapping tool for tracing the dike in areas where overburden prevents direct observation, a further provides some ability to differentiate the dike from magnetic intrusive events which appear to have no economic interest.

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Table 4 Grab Assay Results from 2005 Work

Notes Sample Cu Ni Pt Pd Au Total PGE No (ppm) (ppm) (ppm) (ppm) (ppm) (g/tonne)

Copper Nickel Platinum Palladium Gold

1 0251 1020 775 0.19

0252 1360 830 0.13

0253 121 <0.

0254 101 152 <0.005

0255 2670 1370 0.3

6 0256 84 80 <o.o~ 7 0257 1370 952 0.1

Notes

1. Grab sample location: Foy Hess intersection, Banana Lake grid 2. Grab sample location: Foy Hess intersection, Banana Lake grid 3. Grab sample location: Foy dike, road outcrop, Schkowona grid: 4. Grab sample location: Foy dike, road outcrop, Schkowona grid: 5. Grab Sample location: Foy dike, road outcrop, Sandcherry grid: 6. Grab Sample location: Hess dike, outcrop, Sandcherry grid: 7. Grab Sample location: Hess dike, north side Banana Lake:

14.0 Conclusions

0.11 0.03

0.15 0.04

0.01 Nil

0.01 0.Q1

0.29 0.08

<0.005 0.01

0.13 0.05

23+47E; 1 +03N 23+48E; 1 +02N 45+54S; 2+46E 45+72S; 2+06E 47+71E; 1+48N 47+96E; 18+63N 16+ 75E; 2+00N

The properties have the appropriate geology to host economic nickel-copper-PGE mineralization of the Sudbury Offset dike type and are worthwhile exploration targets. There are significant similarities between the IQD on the Properties and the IQD represented by the Worthington Offset and the Nickel Offset Mine in the Foy Offset dike.

To date, fifteen magnetic anomalies that represent potential drill targets have been identified on the Banana Lake and Sandcherry Lake portions of the Dike. Additional magnetic anomalies have been identified on the distal portions of the Venetian and LaForest grids.

Grab samples of disseminated sulfides outcropping over a distance of 1 km. were taken from

three magnetic anomalies on the Banana Lake grid. Sample 33003 is from a cliff on the shore of a pond (Mooihoek Pond) west of Banana Lake. Sample 33001 is from a recently stripped 100 m thick section of the dike on the west shore of Banana Lake and sample 33002 is from the east side of Banana Lake.

These assays are similar to those encountered in disseminated sulfides within the Worthington and Copper Cliff South Offset dikes on the south range of the Sudbury basin. A comparison to the Totten deposit in the Worthington Offset Dike is given below.

37

0.33

0.32

0.01

0.02

0.01

0.31

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Nickel to copper and platinum group metals ratios are within the same ranges as found elsewhere

within Offset Dikes in both North and South Range.

15.0 Recommendations

I. Continue with backhoe stripping and trenching should be done in those areas of high magnetic response accessible by road where sulfides and IQD are visible.

2. In areas where sulfide mineralization is found, the dike should be sampled across its width or across the width of mineralization by trenching, blasting and channel sampling.

3. Continue with the program of geological mapping and prospecting to find the exact position of the QD dike by outcrop and boulder-tracing (rock-chip sampling of sulphide­containing samples, finding the presence of IQD), a detailed magnetometer survey following local pyrrhotite OCCUITences and veins, and GPS - as well as prospecting between the lines in areas of sulphide and magnetic anomalies.

4. Complete further MegeTEM II airborne survey work on the northern half of the Foy Offset dike (Schkowona Lake, Venetian and LaForest grid areas).

5. Conduct ground Transient Electromagnetic ("TEM") surveys on areas of conductance identified from the airborne survey work. This work will serve to more closely define the target

areas and confirm the potential for massive sulphides.

6. Drilling of anomalous areas is warranted after full evaluation of surface exploration. Drill hole depth and separation should be set to secure maximum coverage of potential target zones from down hole geophysical surveys.

16.0 Budget

Phase 1

Geologist (days) 35 400 $14,000

Geological Assistant (days) 35 300 $10,500

Camp Costs (days) 40 100 $4,000

EfA, travel (km) 15,000 0.45 $6,750

Equipment, gas, propane $2,500

Rentals (trailer, canoe, motor) 30 100 $3,000

Assays $2,500 Stripping, Trenching $35,000 Airborne - MegeTEM II (km) 100 $350 $35,000 Ground TEM Surveys (km) 10 $2,500 $25,000

Subtotal Phase 1 $138,250

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Phase 2

Drilling (all in costs/m)

Geological Supervision Travel

Down hole Geophysics Reports, drafting, secretarial

Subtotal Phase 2

TOTAL Phase 1 & 2

3,000

60 60

150

400 90

$450,000

$24,000 $5,400

$100,000 $15,000

$1,500 $595,900

$734,150

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17.0 CERTIFICATE OF QUALU'ICATIONS - Frank Racicot, P. Geo.

I, Frank Racicot, do hereby certify that:

I. I reside at 54 Kathleen Street, Sudbury, Ontario.

2. 1 graduated from Laurentian University in Sudbury, Ontario in 1974 with a B.Sc. in Earth Sciences J 974.

3. I am a member in good standing with "The Association of Professional Geoscientists of Ontario" since July, 2003.

4. [ was employed as project geologist by Tearlach Resources Limited for a period of 26 days between April 25th

, 2005 and June 6th, 2005 on stripping and mapping of trences in

Tyrone Township.

5. 1 am a "qualified person" for the purpose of this report.

6. I was the supervising geologist for this project. Work included locating areas of the Foy or Hess offset dykes for the excavator to remove the overburden from, supervising the washing of the stripped off outcrops, mapping the washed outcrops, sampling areas containing visihle and anomalous sulphide sand dispatching samples to the laboratory for assay in Swastika.

7. J have no personal knowledge as of the date of this certificate of any material fact or change which is not reflected in this report.

8. I am a private consultant and carried out the work described above. I do not own, directly or indirectly, nor do I expect to receive, any .interest in the properties or securities of Tearlach Resources Limited, or any associated or affiliated companies.

Dated at Sudbury, Ontario this 25th day of June, 2005.

"Frank C. Racicot, P.Geol".

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18.0 CERTIFICATE OF QUALIFICATIONS - Malcolm B, Fraser.

I, Malcolm B. Fraser, residing at 171 Pike Road, Gibsons, British Columbia, do hereby certify that:

I. I am a consulting mineral exploration geologist, and have been engaged in the geological profession continuously since graduation with particular experience in exploration for and development of and marketing of non-ferrous base metals, precious and platinum group metals and various industrial minerals in Canada, the United States, Australia, Africa, China and elsewhere, world wide.

2. J am a graduate of (i) Queens University with a B.Sc. (1960) in Geological Engineering, Oi) Harvard University M.A. in Economic Geology (1962) and (iii) Osgood Hall Law School (1964) and (iv) was called to the Bar of Upper Canada in 1966.

3. With my co-author, Frank Racicot, P.Geo., I accept responsibility for the compilation of data and hypotheses expressed in this report and for the work carried out by me and under my supervision.

4. My knowledge of the Foy-Hess Offset Dike propelties was acquired from working on the propelties, exploration of other similar Offset dikes on the South Range of the Sudbury Basin, from a study of publications and information sources described under References of the repon to which this certificate is attached, and discussions with Ulrich Kretschmar, P.Geo and Haydn Butler, P.Geo;

5. 1 spent two days in May and J LIne 2005 on the Foy-Hess properties and prepared this report in collaboration with Frank Racicot, P.Geo ..

6. 1 am not aware of any material fact or material change with respect to the Foy-Hess Properties which is not reflected in this report, the omission to disclose which might render this report misleading;

7. I am a private consultant and carried out the work described in this report. I have no interest in the claims. I am the President of the client company which has an option to acquire 100% ownership of the mineral claims. I have received no remuneration for the preparation of th is report, nor do I expect to recei ve any.

9. I have read Instrument and Form 43-101 and Form 43-101 F, and the sections regarding the preparation of techn ical reports for wh ich I am responsible and confirm that this report has been prepared in compliance with the same;

10. This report has been prepared for and is addressed to the TSX Venture Exchange and Tearlach Resources Limited of Vancouver, British Columbia and will be used in filing for Assessment Work in the Sudbury Mining Division of the Province of Ontario.

11. I hereby consent to the use of this report to satisfy the requirements of any Securities Commission or Stock Exchange anywhere.

Dated at Sudbury, Ontario this 25th day of June, 2005.

"Malcolm B. Fraser"

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18.0 References (Not all of these were examined by the present author)

Aurora Platinum Corp. News Releases 1. Massive Nickel-Copper-PGE Sulfides Discovered at Nickel Lake, Foy Offset,

Sudbury Option/Joint Venture Agreement Signed with INCO,. May 15,2002.

Beilhartz, David E. 1999 Sandcherry Creek Property (Foy Offset), Sp

Beilhartz, David, E. and Harold J. Tracanelli (September, 2000) Prospecting and Soil Geochemistry Exploration Program on the Consolidated Ventures

Holdings Inc. Sandcherry Creek Property, Tyrone Township, SOp text and tables, plus

maps

Burrows, A.G. and Rickaby, H.C. 1935 Sudbury Nickel Field Restudied. Annual Report No.

43, Ont. Dept. of Mines, page 28.

Butler, Hadyn 2003 Work Report No. I on Foy-Hess Offset Dike Properties.

Unpublished report prepared for Tearlach Resources Ltd. January 27,

2003.

Card, K. D. and Meyn, H. D., 1969 Geology of the Leinster-Bowell Area, Ontario Dept. of

Mines, Geological Report 6S.

Card, K.D., 1965 Hyman and Drury Townships. Geological Report No. 34, Ont. Dept of Mines,

pp 31-33.

Card, K.D. 1968 Denison-Waters Area. Geological Report No. 60, Ont. Dept. of Mines, pp 49-52.

Coleman, A.P. 1913 The Nickel Industry. The Department of Mines, Ottawa,

p.46.

Coleman, A.P., More, E.S. and Walker, T.L. 1929 The Sudbury Nickel Intrusive. Univ. of

Toronto Studies, Geo!. Series No. 28, pp 46-48.

Crowflight Minerals Inc. News Releases 1. Crowflight Updates Exploration Activities in the Sudbury Basin and Announces

Conference Call on Wednesday, March 24, 2004 at 10

a.m.E.S.T.

FNX Mining Company Inc. News Releases 1. FNX Mining Expands Open Pit Potential and Extends High Grade Zone at Victoria. News Release August 6,2002.

43

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2. 2. FNX-DYNATEC Sudbury Joint Venture Intersects 463 feet of Cu-Ni-Pt-Pd-Au Mineralization at Norman. News Release Sept. 18, 2002. 3. 3. FNX-Dynatec Sudbury Joint Venture Discovers "Powerline" Deposit at Victoria. News Release November 21,2002.

INCO Ltd. News Releases

I. 1. INCO exploration yields new zone in Ontario division. News Release October 19, 1999. 2. 2. INCO Totten Mine exploration results. News Release April II, 2000. 3. 3. Palladium, Platinum discoveries expected to payoff for INCO. News Release January 18, 2001.

Jagodits, Francis, L. 2001 Report on helicopter-borne Aerotem Electromagnetic-magnetic

survey for Consolidated Venturex Holdings Ltd., Sandcherry Option.

Knight, e.W., 1917 Report of the Royal Ontario Nickel Commission, pages 35, 44, 132; 189-

190; 497. Toronto.

Kretschmar, Ulrich, 2003 Summary Report on the AERIKidd Property, Sudbury Area;

unpublished NI43-101 report prepared for Crowfiight Minerals Inc., May 2003.

Lo, Bob (1988) Magnetometer survey maps filed by INCO for assessment Foy Offset dike.

Lightfoot, P.e. and Catharine E.G. Farrow, 2002 Geology, Geochemistry, and Mineralogy of

the Worthington Offset Dike: A Genetic Model for Offset Dike Mineralization in the

Sudbury Igneous Complex. Economic Geology Vol. 97, 2002, pp 1419-1446.

Lightfoot, P.e., and Naldrett, A.J. editors 1994 Proceedings of the Sudbury

- Noril'sk Symposium. Special Volume 5, Ontario Geological Survey, Toronto

Makela, Everett (1988) Geological survey maps filed by INCO for assessment Foy Offset dike.

Wood, Christina, R. and John G. Spray (1998) Origin and emplacement of Offset Dikes in the

Sudbury impact structure: Constraints from Hess, in Meteoritics and Planetary Science

33, pp.337-347.

Map P.2469, Sudbury Data Series, Tyrone Township, MNR, Ontario.

Ontario Bureau Of Mines, Toronto, 1892 First Report of the Bureau of Mines, pp 232 - 233.

Ont. Bureau of Mines, Toronto.

Pye, E.G., Naldrett, A.J., and Giblin, P.E. editors 1984 The Geology and Ore Deposits of the

Sudbury Structure. Special Volume 1, Ontario Geological Survey, Toronto.

Quantec Geoscience Inc. 2001 3D Fixed Loop Borehole TEM Surveys, AER-9 and AER-IO.

44

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Charts and plots for TearIach Resources Inc.

Stewart M.C., Watkinson, D.H., Jones, P.C. 2001 Cu-Ni-PGE ores of the Totten Property,

Worthington Offset, Sudbury. Abstract in: AJ. Naldrett Symposium, First Annual Short

Course. Society of Economic Geologists I Laurentian University Student Chapter I Laurentian University Department of Geology, Sudbury.

Tearlach Resources Ltd. News Releases

1. 100 m width Inclusion-Bearing Quartz Diorite with sulfides found on Banana Lake

Offset Dike, December 8,2003.

2. Assay results from grab sampling of l00-metre wide inclusion-bearing quartz diorite found on Banana Lake Offset Dike. February 16, 2004

Tracanelli, Harold J. (April, 2002) Three drill hole records of Tearlach Resources Inc.

Trow Consulting Engineers Ltd. 2000 Baseline Environmental Evaluation, Kidd Copper Mine Property, Worthington, Ontario. Private Report for CrowfJight Minerals Inc.

]9.0 Web Site References

www.fnxmining.com www.tearlach.ca www.wallbridgemining.com www.crownightminerals.com

www.auroraplatinum.com

Appendix A Assay certificates

Assay certificates for analyses of grab sample (see Tables 3 and 4) carried out by Swastika Laboratories Ltd., Swastika, Ontario.

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S'wastika Laboratories Ltd N>~ayillg - CoI\SUff!rn1. ·'RCJID!5I;!1taIIQIl

A.ssay Certifi£tUe

COmpany TEARLACIl jlli. 6-UR ES JNC. Prjlj,.'!:

3'~ '~Il-RAl

.0,,* DEP-19-03

"'" Iv!' Frasr

lVlIlI~rel1y cerrffJ' the {.olIo", ing: Assay 9 ·3 'R $8JUptcs 5ubmim:d D'EC.I 8-OJ by .

SlImpl II U All Olen Ql J PI Pd ~~~t .... _ ••••• _ .... • ~t~~ne~ ... . ~ ~ !!2~e~,. ____ ~. _ .~ ... _ .. .•• ~._.~ ~!l~~~ . . . ~~ !~~~.c __ .... 3'~\)Q1 · o.oa· :p.J3ll 0.105 IO. 1a;--- o,'2iJ1 '.!3QOZ O.J}9(J. 307 p.:UH O .. l~ (US ;33063 0 , /1 O.H tl.l6!! 0<1'2 '0>1,6 0 n

-. - - . .. . . ...... __ ... . _-.,. - .. --- --... -_ ..... .. . ---_ ..... _-- ... ..-- .. "" ...... _ .... --- . .. .. . .. _ ... .............. _ .............. _ .. _-_ .... -, . .. ..

I Cameron A,e .. P,O BQ •. 10, Swasli\tB. 0'1'"'''0 PQ.l( 110 Tel<i>]>one (70S) 61N,pI4 l'iIII (:lOS) & ~·3lO(l

Appendix A-I: 2003 Assay Certificate - Swastika Laboratories Ltd .

46

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Appendix A - 2: 2005 Assay Certificate - Swastika Laboratories Ltd.

~A~IIKA LAJ::jlJt.!AIlJt.!ll::.

Swastika Laboratories Ltd I3Hablisned 1928 Assaying - Consulting Representation

Assay Certificate

C,ll1lpaIlY: TEARLACH RESOURCES Pr"jcct: Aun: M. Fraser

We hereby cenify the following Assay of 7 Rock samples submitted JUN-17-05 by .

Ni Pt

5W-1446-RAI

Date: JUN-23-0.5

Pd Sample Nwnher

0251 0252 0253 0254 0255

Au ___ ._.~{t?nne

0.03 0.04

Cu PFM

1020 1360

139 101

2670

~~ .. -~~ :~~~~-775 0.19

-~~!~~~~-.-~-0.11

0256 0257

Nil 0.01 0.08

0.01 0,05

- ........ - - .. - - .. -84

1370

830 0.13 121 <O.OOS 152 <0.005

1370 0.30 .. _ ...................... "i - .. _

80 <0.005 952 0.13

0.15 0.01 0.01 0.29

<0.005 0.13

1 Cameron Ave., P.O. Box 10, Swastika, Ontario POK lTO Telephone (70S) 642-3244 Fax (705) 642·3300

47

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Appendix A - 3: Sketch Plans Areas 1 - 10, 2005 - Geological Mapping

L,'''t O"t$V;L--------+---------+--I+------­l't-of"5"E

I & (J • I.,....d lAS','"" 014 () r12 {JI'" r,'if

". - 5""'." J.,....cllA,S,UoI'I' o D

5"" ph,'Jes

Q()

{/t"' fl1l'l\j

At 6(}~ 40"

(/: 500)

Q S ,0 I~ 20_

r, ~tlc.:("f '1I1V'1t!lJ~

Figure 18 Banana Lake Grid Stripped Area 1 Geological Sketch Map

48

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..:r- 6t 0 (SO_f> L.I'~t!

:1.,... c I Ksi f"j )

GO ____ ~------------_+~----------~~4r~~---------DTS05

2 't-."1IJE:

Lt,~'" J o () - Q""f'n 0,_,...;+" :r QrJ* '1'/\ .::,Itt,,' 0", QI.M. ,,1, 01'"",; 1,

.... ·5"".U I.t"\ d·M (/. ""J

5 ~. L ~I"~" :t" t.f",fillt'S

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Figure 19 Banana Lake Grid Area 3 Geological Sketch Map

50

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Figure 21 Banana lake Grid Area 4 Geological Sketch Map

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Figure 23 Sandcherry Lake Grid Areas 6,7,8 Geological Sketch Map

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Figure 24 Sandcherry Lake Grid Area 9 Geological Sketch Map

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Con','~l l nlO"mlion

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ONTA.'lQ.IO MINISTRY OF NORTHERN DEVELOPMENT AND MINES Mining Land Tenure

Map C ANADA PROVINCI A L MININ G RECORDER'S OFFICE

Date I Time of Issue: Thu Jul 07 14 :21 :00 EDT 2005

TOWNSHIP I AREA TYRONE

PLAN G-4116

ADMINISTRATIVE DISTRICTS I DIVISIONS

Mining Division Land Titles/Registry Division

Sudbury SUDBURY SUDBURY Ministry of Natural Resources District

TOPOGRAPHIC

noll

U~lI lo'

+

'.:.. '

.:... ;:_..! __ ._.-

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Land Tenure

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[------, I 12:1-1001 I L _____ ~

LAND TENURE WITHDRAWALS

r--:~';'l .....,,,. Wilhdrn .. n frurn Onpc " llon ___ . .. .1

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IMPORTANT NOTICES

LAND TENURE WITHDRAWAL DESCRIPTIONS l<1onl ll lo, T),," Do1l~

03OO9tlUO l'I',m 1.10, ~~. 2 001

c",nn ...... ...., W,m Il<>:> 2 1. 2000

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UTM Zone 17 1000m grid

--475000E 476000E

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General Information and Limitations

Corllotl lnlOltll1l101l TDltFJo>O ~~",o..", ... tll.DH)

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ONT~lO CANADA

MINISTRY OF NORTHERN DEVELOPMENT AND MINES

PROVINCIAL MINING RECORDER'S OFFICE

Mining Land Tenure Map

Date I Time of Issue: Thu Jul 07 14:56:25 EDT 2005

TOWNSHIP I AREA SWEENY

PLAN G-411 0

ADMINISTRATIVE DISTRICTS I DIVISIONS

Mining Division Sudbury SUDBURY SUDBURY

Land Titles/Registry Division Ministry of Natural Resources District

TOPOGRAPHIC Land Tenure

o C'

Co"c.o'''"n.LuI

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rrn ll

+

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1------1

I IU4~61 I L _____ ~

1---- - - 1

I 11l<1'~7 I L __ ___ ,

LAND TENURE WITHDRAWALS

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IMPORTANT NOTICES

2.am

LAND TENURE WITHDRAWAL DESCRIPTIONS I~onl .h>' '-~a27 Worn ,J.' n 1.2\'»)1 wm RE S E RVE S R.O IGgOO;-4~:!II Vhm J"n 1.::001 IJURRE ZE RV E S RO 169005

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General Information and Limitations

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ONTAIlRIO MINISTRY OF NORHIERN DEVEI...O PMENT AND MINES Mining Land Tenure

Map CANADA PROVlNCIO\L MINING RECORDER'S OFFICE

Date I Time of Issue: Wed Jul20 13:53:07 EDT 2005

TOWNSHIP I AREA BOTHA

PLAN G-4014

ADMINISTRATIVE DISTRICTS I DIVISIONS

Mining Division Land Titles/Registry Division

Sudbury SUDBURY SUDBURY Ministry of Natural Resources District

TOPOGRAPHIC

o l um>!hlp

cr.tI. I~r&I>;f"

•. Min~ S"oll>

• R"I'".y

+

700 ... Om

Land Tenure

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~ S"".ltulU~~IsOn"

~ ~II""'~ ROUtl" OnIv

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rn s" 'I."urtll~"·C.\ly

[iJ 1.' I I1 I"~ 1lI~"1o Cniy

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,------/ I 12l-1:.6r I L _____ J

.... ""'l1C1~

LAND TENURE WITHDRAWALS

l I:I"J..I : ......,> w,v.:r·~wn"""'D;,",...;_ -~

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IMPORTANT NOTICES

LAND TENURE WITHDRAWAL DESCRIPTIONS Id"nl~"''' T}""

G..'Oo»JllO ,,-~- W<m

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