Bryson Burke Diamond Corporation: Diamond Exploration and Mining in Canada

4.0 PROPERTY HISTORY AND PREVIOUS WORK

4.1 Previous Exploration and Geological Mapping Activity

Prior to 1993 there was little documented geological exploration work in the vicinity of the Properties or, indeed, within the entire Central Gneiss Belt. The discovery of occurrences of uranium-thorium associated with pegmatite dykes at several localities well to the south and southeast of the Properties prompted a general reconnaissance prospecting survey during the mid-1970s uranium exploration surge (Charlton, 1993). Nothing worthy of more-detailed exploration was discovered near the Properties.

The Lynch Lake area, in Forant and Rochefort townships, hosts numerous magnetite-rich pegmatites (Katz, 1976). These were prospected and staked in the 1920s. A few showings of galena and of chalcopyrite are known in the metasediments to the southeast in Mansfield Township. (Katz, 1976). Showings of molybdenite are known along John Bull Creek about 20 kilometers southeast of the Properties.

Native gold occurs sporadically within the gneissic rocks in the area of the Properties and can be panned from some of the local streams, in particular, from the Black River (Rivière Noire) (J. D. Charlton, personal communication). However, no gold prospecting activity is recorded in the area.

The region was partially mapped by R. Marleau of the Quebec Department of Mines in 1959 (RP 383 and RP 420). The area from the Ottawa River north to 46̊30', and covering the bulk of the Properties, was mapped by M. B. Katz (PR 578, RG 170) in the mid 1960s. This mapping forms the basis for much of the geological description in the present report. A structural interpretation of the region to the east and northeast, including the eastern portion of the Properties and based upon analysis of satellite images, was completed by K. Sharma of the Quebec Ministry of Energy and Resources in 1993 (MB 93-50). The area was covered as part of a regional airborne magnetic survey conducted by the Geological Survey of Canada.

4.2 Previous Diamond Exploration Activity (Burke and Bryson-Burke Resources)

Mr. Desmond Burke of Ottawa, Ontario began prospecting for diamonds, essentially as a hobby, in the St. Lawrence Lowlands during the mid-1980s. These efforts ultimately led to the discovery of G9 pyrope garnets in the lower Coulonge River in 1988. In August,1992, Mr. Burke discovered microdiamonds in the sediments of the Coulonge River in Anjou Township. On the basis of this discovery, Mr. Burke formed a private corporation, 2891395 Canada Inc., and began staking an extensive area in the Coulonge River -Bryson Lake area. Several blocks of claims were staked to the north of the discovery area as well. In 1993, 2891395 Canada Inc. became Bryson-Burke Resources Inc. and commenced systematic diamond exploration.

The initial identification of both indicator-minerals and microdiamonds was made by several Russian geologists whose expertise Mr. Burke had retained because of his own limited technical knowledge. This team was led by Dr. Viktor S. Gouchtchine of the University of St. Petersburg, a well-published geoscientist who was working on diamond exploration in the Arkangel Region of northern Russia at that time. These geologists provided Bryson-Burke Resources with expertise in sampling techniques in glaciated terrains, diamond indicator-mineral geochemistry and analyses, regional structural interpretation, and Quaternary glaciation and drainage system analysis. It should be noted that at this time Russian expertise in the areas of diamond exploration in glaciated terrains, in indicator-mineral geochemistry, and in research into the formation and preservation of diamonds in kimberlites was moreavailable and more-advanced than similar expertise within Canada.

Identity of some of the indicator-minerals, including a microdiamond, from early sampling was confirmed by x-ray and microprobe analyses by Dr. Gouchtchine in conjunction with the Department of Earth Sciences at Carleton University. In addition, Consorminex Inc., a Canadian company, collected and confirmed the identity of several pyrope garnets collected from the area southeast of Lamb Lake.

In 1993 Bryson-Burke Resources optioned the 186-claim Gaudreault Creek Property to Garde Exploration Inc. This property was situated 13 kilometers northwest of the present Lac Argent Property.

In early 1994, Garde completed a helicopter-borne magnetic survey of the property using 100-meter line spacings on a north-south grid. Subsequently six (6) targets were selected for ground magnetic delineation and drill testing. Drill results were uniformly negative.

Monopros Ltd. examined the Bryson-Burke Properties in the spring of 1993 and made an offer for the properties that was declined by Bryson-Burke Resources. Monopros subsequently collected a combination of 35 till and glacio-fluvial samples. Most of these were in a line from the Branssat-Bryson Lakes area eastward to the East Coulonge River. Small numbers of ilmenites and chrome diopsides were found in nine (9) samples. No microdiamonds were found in these 35 samples nor in two additional bulk (one cubic meter) samples taken near the Picanoc Road bridge over the Coulonge River where Mr. Burke had previously found microdiamonds.

In 1993, Watts, Griffis, McOuat Limited (WGM) was retained by Bryson-Burke Resources to prepare a qualifying report on the Coulonge River area properties, the purpose of which was the substantiation of the 1992 discovery of microdiamonds by Mr. Burke in the Coulonge River southeast of Bryson Lake. This report was completed as requested, but in 1995, WGM withdrew their consent for Bryson-Burke Resources to reference either their name or the report in the prospectus that was being prepared at that time.

WGM has also refused to permit inclusion in this report of the technical findings of their 1993 sampling program and their rationale for the subsequent withdrawl of consent for usage of said report by Bryson-Burke Resources. The WGM report and subsequent, relevant correspondence between WGM and Bryson-Burke Resources et al, have been reviewed by the present author. Within the constraints imposed by the WGM interdiction, it is the opinion of this author that the technical results obtained by WGM were consistent with exploration results obtained elsewhere in the area and with the present author’s interpretation of the geological and glacial history of the area.

In 1994, Monopros Limited examined 17 microdiamond fragments that had been recovered from a sample collected at the confluence of the paleodrainage leading southeast from Bryson Lake, and the Coulonge River. Their examination led them to conclude that the source was unlikely to be proximal and, on the basis of that conclusion, declined the opportunity to participate if further exploration of the Bryson-Burke properties. This withdrawl of interest followed by approximately one year their initial offer of an option agreement by Bryson-Burke Resources Ltd.

Bryson-Burke Resources Inc. carried out regional "grassroots" exploration during the period June 1, 1994 to December 31, 1995 (GM-55399). This included collection of 248 soil samples and ground magnetometer profile surveys of 53 magnetic targets.

Consulting geologist Mousseau Tremblay aided Bryson-Burke Resources in the design and planning of the sampling program. The intent of this program was to constrain the source of indicator-minerals by circumscribing the core discovery area with sample lines so as to establish the limits of distribution of indicator-minerals and diamonds. This was achieved to the north, east, and southwest of the area of primary interest. Unclosed gaps remain to the west-northwest, west of the Lamb Lake area, and to the east-southeast, across to the Ward Lake area, a line that coincides with the trace of the Murtagh Creek Fault (Section 5.1.6, below). Sampling concentrated on basal tills, which remain only in areas of higher topography, and on fluvio-glacial sediments, which occur in low-lying areas.

Samples averaged 40 kilograms by weight, and were processed at the Bryson-Burke base camp using screens and panning. Good heavy-mineral concentrate samples were obtained from the fluvio-glacial material in this way, but the basal till samples required further jigging, which was done at the Bryson-Burke lab in Ottawa using a mechanical (INEX) jig. The concentrates were processed through a heavy liquid (methyl iodide) to further concentrate the heavy-mineral grains.

As of July, 1995, when the final project report (GM-55399), was written, Bryson-Burke personnel had processed all 248 samples by screening, hand-jigging and further concentration by INEX jigging to produce heavy-mineral concentrates, and 189 of the samples had been additionally concentrated using methyl iodide. Most of the samples were examined in a preliminary fashion during processing and 75 samples had further been examined for indicator-minerals by Geon Laboratories of Montreal. No classic kimberlite indicator-minerals were identified although abundant chrome diopsides and garnets from probable crustal sources were noted.

During the winter of 1994, 53 magnetic targets were checked by ground magnetometer profile surveys consisting of a north-south line and an east-west line over each target. This program was the last conducted by Bryson-Burke Resources Inc. The company went into bankruptcy in March,1996.

Subsequent to the settlement of the bankruptcy of Bryson-Burke Resources Inc. in 1996, Mr. Desmond Burke purchased all of the exploration data Bryson-Burke Resources had accumulated during the 1993-95 work programs. Bryson-Burke Resources Inc. had been a private Canadian corporation and therefore, with the exception of GM-55399, little of this information had been made public. The Bryson-Burke Resources Inc. work, in particular the sampling data and resultant indicator-mineral analyses, formed the basis upon which subsequent sampling programs were planned and executed.

4.3 Other Area Exploration (1993 - 1995)

Two other publicly-traded companies acquired properties in and around the Bryson-Burke Properties in 1993. Abior Explorations Inc. (50%) and an associated company, KWG Resources Inc. (50%) staked 496 claims in fifteen (15) groups in Pontiac County during July and August of 1993 (referred to herein as the Abior blocks). Dianor Resources Inc. acquired seven (7) blocks comprising 246 claims in the summer of 1993 as well. They were subsequently dealt to a related company, Ecudor Mining Co. Inc., but are referred to herein as the Dianor blocks.

The Dianor Resources Inc. properties were staked based upon selection of magnetic anomalies from the federal (GSC) regional airborne magnetic survey, flown at flightline spacings of 800m, as well as on the west-northwest trending extensional faults in the area. Four (4) of the Dianor blocks (Blocks 1-4) were located within the present Properties. The other three (3) were located to the southeast in the Wright Lake - Lac Bertrand area.

Dianor found and investigated all of the magnetic anomalies located on their claims by reconnaissance ground magnetics, geologically identified the sources of the anomalies, did thin-section examinations of selected samples, and geologically mapped Block 1(GM-52684). This work included the identification and sampling of a pre-orogenic meta-pyroxenite on Block 1 near Gerland Lake west of Bryson Lake, as well as the identification of several late diabase dykes and mafic to ultramafic outcrops, also in the area of Gerland Lake.

Dianor also took forty-five (45) alluvial samples from local streams. Most of these samples were comprised of fine to silty sand. The samples were screened on-site to eliminate the coarse fraction, and were then processed by Consorminex Inc. of Gatineau, Quebec, where they were further screened, and gravity-separation was carried out on the medium-fine size fraction (2 millimeters to 500 microns). The heavy portion of this size fraction was examined by binocular microscope and suspected diamond indicator-minerals were picked. Seventeen (17) grains were selected and sent to Carleton University for scanning electron microprobe analysis. None of the grains was found to be a diamond indicator-mineral.

Upon completion of this work program Dianor recommended a high-density airborne magnetic and electromagnetic survey, till sampling, ground magnetic follow-up on selected airborne targets, and drill testing of selected targets if warranted. However, a much more limited program was actually carried out, consisting of ground-magnetometer surveys on specific targets on Blocks 1 to 4, and the collection and analysis of sixteen (16) till samples (GM-53439). This work was completed during the summer of 1994. No diamond indicator-minerals or microdiamonds were found in the till samples, however, the microdiamond search was limited to visual examination. No kimberlitic rocks were found in the vicinity of the magnetic anomalies. No further work was done by Dianor/Ecudor and their claims were allowed to expire.

With the exception of the Rochefort 1 and 2 Blocks, none of the Abior/KWG claim blocks staked in 1993 was in the immediate area of the current Properties. In any case, no exploration work was filed on any of the Abior/KWG claim blocks, and all of these claims were allowed to expire.

Jack Charlton Management Inc., a private company, staked eleven (11) blocks of claims for private investors in the area in 1993. These blocks were also distant from the current Properties. Prospecting and limited magnetometer and VLF surveys were completed on portions of these blocks. All of the claims were allowed to expire.

An investigation of selected airborne magnetic anomalies was carried out by three prospectors in 1996 (GM-56787). All of these anomalies are to the east and south of the current Properties.

4.4 Recent Diamond Exploration (Burke, 1996 to Present)

Mr. Burke resumed till- and glacio-fluvial sampling in 1997 in order to fill gaps that remained in the Bryson-Burke Resources sampling coverage. Approximately 500 geochemical till and stream-sediment samples were collected and processed by Mr.Burke using conventional screening, gravity separation, and indicator-mineral picking.

In August 2001, Mr. Burke formed 3929311 Canada Inc. and began staking claims and conducting ground-magnetic-profile surveys of selected magnetic targets. These surveys typically consisted of one north-south line crossed by one east-west line using base-station and field magnetometers.

In the autumn and early winter, 2001, three (3) attempts were made by Mr. Burke to drill-test two magnetic targets at Lamb Lake, on the current Lamb Lake Property of 3929311 Canada Inc., where G9 and G10 garnets had been found down-ice from both targets.

The first attempt, using a small prospecting drill, failed to reach bedrock due to heavy sand in overburden. The second attempt, by a contractor (Orbit Drilling Inc. of Val d'Or, Quebec) using a "Gopher" drill, was also aborted because of the deep sandy overburden. The third effort, by the same contractor using a Longyear 38 drill, was successful in penetrating bedrock on both targets. Twenty (20) meters of quartzofeldpathic gneisses with magnetite-bearing amphibolitic layers was intersected in both holes beneath about 45 meters of sand overburden. The first hole also intersected a one-meter long, structurallycontrolled interval of magnetic, micaceous (probably phlogopite), dark green-black rock which has yet to be identified.