THE SCHUNDLER COMPANY

Lakefield Research Limited Minerology Group Ontario, Canada December 24, 1996 Mineralogical Examination of Vermiculite Ore Summary A bulk sample of vermiculite ore (sample C) was submitted to the mineralogy laboratory for mineralogical examination and identification of asbestos mineral phases. The procedure followed for the determination of asbestos from bulk samples is outlined in the Occupational Health and Safety Act (Ontario regulation 654/85). An x-ray diffraction (XRD) analysis was performed on the sample to determine the relative proportions of major and minor mineral components, and to determine the presence or absence of asbestos minerals (see attached XRD analysis). The bulk sample was initially examined for fibrous, asbestos mineral phases using a binocular microscope at 160x to 400x magnification. The head sample (sample C) was found to consist primarily of vermiculite, chlorite, and minor hematite, with no evidence of fibrous or asbestos minerals. Due to the large grain size of the bulk sample, it was riffled, screened (at 40 mesh), and re-examined at a smaller size fraction (<425 um). There were no asbestos fibers detected in either the bulk sample or the screened fraction. A polished thin section of the bulk sample was prepared and examined under transmitted light using a petrographic microscope at 160x to 450x magnification. The microscopic examination indicated that vermiculite was the dominant mineral phase, with lesser amounts of chlorite, and minor hermatite. There were no asbestos mineral phases or fibers detected in sample C (detection limit 0.5%). Regards Lakefield Research Lmited Stephanie Downing Mineralogist Edward Walker, Ph.D. Operations Manager Mineralogy

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