MEMORANDUM

DATE: October 6, 2014 

PROJECT: Needles Magnesite Deposit

TO: Mike Licata -Owner

FROM: Steve Kupferman -Principal Geologist

SUBJECT: Needles Magnesite Deposit (White Moon)

The U.S. Geological Survey (USGS) evaluated this magnesite deposit in the 1940s as a possible source for magnesium metal. The USGS work confirmed the existence of a high-quality magnesite resource. 

More recently, in 1985, the California Geological Survey (CGS) classified this magnesite deposit as an area underlain by mineral deposits where geologic data indicate that significant measured or indicated resources are present.

The CGS reported that this magnesite deposit is unusually pure (CaO content ranging from 0.48 to 8.5%, Si0₂ not exceeding 6.0 percent, and combined Al₂0₃ and Fe₂0₃ generally less than 1.0 percent) when compared with sedimentary magnesite from other deposits in California and Nevada.

CGS also indicated that there are in excess of 1,000,000 tons of magnesite exposed at the surface of this deposit. With a sizable magnesite resource expected in depth.

The magnesite deposit, known as the White Moon Mine is located on 55 acres of patented land in the eastern Mojave Desert region of San Bernardino County, California. I visited this deposit with you on September 30, 2014.

During the site visit I observed the following: 1) the magnesite beds occur in thinly bedded, very fine-grained sedimentary rocks composed of Tertiary age volcanic tuffs, limestone, dolomites which are underlain by Precambrian gneiss; 2) the white, magnesite beds are exposed over an approximate length of 2,400 feet and a width of 600 feet; and 3) the magnesite deposit appeared to be exposed over a majority of the mine site’s 55-acre parcel.

During the site visit, we also suspect core drilling will show substantial magnesite resources below the surface on your unpatented mining claims located adjacent to the 55-acre parcel. Exploration, test drilling, and sampling of the deposit and adjacent magnesite occurrences should be performed to substantiate and increase the magnesite reserves.

There is currently one company mining magnesite in the US.

Almost one-half of the magnesium compounds consumed in the US are imported, therefore it appears that this deposit, once explored and developed, has the potential to become a significant domestic source of magnesium compounds.

Steven A. Kupferman 

Principal Geologist Lilburn Corporation http://www.lilburncorp.com/

Phone 916-475-3783