Progress Report of Phase I by James W. McLeod


    Exhibit
      10.1


     

    
       
Progress
      Report

    Lucky
      Strike M. C.# 530018

    Similkameen
      Region

    Jura,
      B.C Project Area

     

     

    Prepared
      by:                       
James
      W. McLeod, P. Geo. (BC)

     

    For:                                     
      Nilam
      Resources Inc.

    Suite
      503,42 Camden Street 

    Toronto,
      Ontario MSV 1V1

     

    
      	
              Content:                              
                Text

            	
              Page
                2

            
	
              Figure
                1

            	
              Page
                5

            
	
              Figure
                2

            	
              Page
                6

            
	
              Figure
                3

            	
              Page
                7

            
	
              ICP
                Analyses

            	
              Page
                8

            
	
              Geochemical
                Analyses

            	
              Page
                9

            


    

    


     

    
      Dated:
        May 1, 2006

      
 

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Introduction:

    


    The
      following progress report describes the Phase 1 exploration program
conducted
      on the Lucky Strike
      mineral claim No. 530018, Similkameen Region, Jura, B.C. Project Area during
      April, 2006.

    


    Overview:

    


    The
      Lucky Strike mineral claim, tenure # 530018 consists of 6 mineral cells
in
      one contiguous group covering an area of 310 acres. The mineral claim
      is
      100% owned by the Company who commissioned the Phase 1 exploration program
      described in this report. The author previously recommended that the Phase
      1-3
      work programs be conduced on the property in his report to the
      Company dated, April 10, 2006. The recommendation outlined a
      possible mineral
      exploration scenario of three phases of preliminary exploration
      work
      with successive stages being contingent on the results obtained by the preceding
      one.

    


    The
      mineral property was accessed by traveling north-northeast of
      Princeton,
      British Columbia, along the Osprey Lake road for 6 miles. At the Jura, B.C.
      cut-off the
      first
      dirt road traveling south of the paved road offers access to the
mineral
      claim.

    


    Current
      Work
      Program

    


    The
      current exploration work program was carried-out over the Lucky
      Strike mineral
      claim. The work consisted of reconnaissance prospecting, hand
      trenching
      and sampling of the mineralized material encountered during
      the program.
      The work program was conducted by New Zone Resources Ltd.
      of
      Vancouver, B.C. during the period April 18-25, 2006.

    


    Results:

    


    The
      rock exposures encountered at the four sample locations, Lucky Strike
      l-4
      (see Figure 3) are of altered and
      oxidized crystalline volcanic and/or tuffaceous clastic units thought to be
      members of the upper Triassic age Nicola Group:

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     


    
      	
              Sample Number 

            	
              Type.

            	
              Remarks

            	
              Description

            
	 	 	 	 
	
              Lucky
                Strike 1

            	
              Grab-chip
                

            	
              Dump,
                possibly

              an
                old trench

            	
              Fine
                grained,

              brown,
                rusty tuff.

            
	 	 	 	 
	
              Lucky Strike
                2 

            	
              Grab-chip

            	
              Small
                shaft? or trench

            	
              Clastic,
                fragmental 

              flow,
                rusty color. 

            
	 	 	 	 
	
              Lucky
                Strike 3

            	
              Gr
                ab-chip 

            	
              Trench

            	
              Rusty
                flow rock.

            
	 	 	 	 
	
              Lucky
                Strike 4

            	
              Grab-chip

            	
              Trench

            	
              Rusty
                crystal tuff.

            


    

    


    The
      attached induction coupled plasma (ICP) and geochemical analyses for the above
      listed samples reveal a number of anomalous results. All four of the samples
      are
      anomalous in copper where the threshold value for the Nicola volcanic rocks
      in
      this area is likely in the range of 150 ppm - 400 ppm (parts per million).
      Two
      samples LS 2 & 3 are >1% copper and gold values of 131 ppb and 60 ppb
      (parts per billion), respectively are also anomalous. Sample LS 2 is also higher
      in molybdenum and tungsten, 251 ppm and 140 ppm,
      respectively.

    


    Conclusions:

    


    A
      zone(s) of anomalous copper and minor gold values has been revealed during
      the
      current reconnaissance prospecting trenching and sampling program conducted
      over
      the Lucky Strike mineral claim. On the basis of a confirmation of historical
      reports of copper (gold) mineralization, the author presents, for the Company's
      consideration fire following recommendations.

    


    Recommendations:

    


    The
      following Phase 2 program was previously presented to the Company by the author,
      April 10, 2006 and may be undertaken by the Company when and if they are in
      a
      position to do so.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    Phase
      2

    


    Magnetometer
      and VLF electromagnetic, grid controlled surveys over the areas
      of interest determined by the Phase 1 survey. Included in this
      estimated
      cost are transportation, accommodation, board,
      grid installation,
      both of the surveys, maps and report.

    


    Total                $12,500

     

     

     

     

     

    Respectfully
      submitted;

    


    


    /s/
      James W. McLeod, P. Geo.

    James
      W. McLeod, P. Geo.

    Qualified
      Person

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

    
 

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
              ASSAYERS

              CANADA

            	Assayers
              Canada
              8282
                Sherbrooke St.

              Vancouver,
                B.C.

              V5X
                4R6

              Tel:
                (604) 327-3436

              Fax:
                (604) 327-3423

            
	     	   
              
	 	 


    

    
       

       

    

    Geochemical
      Analysis Certificate                     6V-0562-RG1

     

    Company:    
      New
      Zone Resources
      Ltd.                                                                             
May-01-06

    Project:        
      Lucky
      Strike

    Attn:

     

    We
      hereby certify the
      following geochemical analysis of 4 rock samples submitted
      Apr-29-06


     

    
      	
              Sample

            	 	
              Au

            	
              Cu

            	 
	
              Name

            	 	
              ppb

            	
              %

            	 
	
              Lucky
                Strike

            	
              1

            	
              36

            	 	 
	
              Lucky
                Strike

            	
              2

            	
              131

            	
              1.38

            	 
	
              Lucky
                Strike

            	
              3

            	
              60

            	
              1.02

            	 
	
              Lucky
                Strike

            	
              4

            	
              52

            	 	 
	
              *Au5

            	 	
              1394

            	 	 
	
              *BLANK

            	 	
              <1

            	 	 


    

    


     

    


     

    *Cu
      value
      was extracted from ICP data base.

     

     

     

    Certified
      by       [SIGNATURE
      ILLEGIBLE]