Mineral Assessment Report 20080027

Wesley Creek Area Peace River Diamond Play (NTS 84C)

Authors: Hawkins, P.

Executive Summary

The Peace River Diamond Play is 350 km north of Edmonton, Alberta. UUC/SUV JV lands are 70 km southwest of the Diamondex/Shore Gold JV holdings, which hosts the K252 kimberlite pipe and an additional 37 pipes of which 25 are diamondiferous. The UUC/SUV exploration program has consisted principally up until now of the collection of heavy-mineral sampling for kimberlitic and diamond indicators, supplemented by analysis of airborne geophysics. Six overburden drillholes were completed, which confirmed overburden thickness on the property was in the range of 30 to 76 m. Indicator-mineral analysis of the cuttings shows anomalous levels of kimberlitic indicators. One micro-diamond diamond was recovered from the basal till. ERT and hammer seismic results show variable overburden thickness, presence of buried channels and structural features within the late Cretaceous sediments of the property area. This report documents preliminary results from this drilling and follow-up ground geophysics conducted in June 2008.

The indicator-mineral suite found is similar in composition to that found on the Diamondex /Shore Gold property, which is not comparable to the classical model for diamondiferous kimberlite with the associated G10 garnets. Other mantle-derived indicators from within the diamond stability field dominate the kimberlitic indicator suite. The craton, which underlies the Peace River area, is obviously not the same as other more conventional plays, but still hosts 25 diamondiferous kimberlitic pipes. The recovery of a micro-diamond, within a basal till unit with angular lithic fragments, suggests a near by diamondiferous kimberlitic source. The next planned stage of exploration is additional follow-up overburden drilling on kimberlitic indicators found in overburden near geophysical targets. Several of the drill targets are accessible from new all-weather roads.