The Cliff-Miles corridor is represented by a series of porphyry intrusions including an early Medium-grained porphyry (‘MP’) and inter-mineral coarse porphyry (‘CP’) cut by hydrothermal breccias (‘HBX’). The porphyry intrusions and breccias exhibit pervasive sericitic, and, remnant potassic alteration along with a network of quartz-carbonate veins and disseminated to veinlet pyrite ± pyrrhotite ± chalcopyrite mineralization. The mineralized porphyry intrusions and breccias are subsequently cut by typically narrow 1-4 m thick barren diorite and mafic dikes.

Structural Setting and Control of Mineralization

The latest drilling and 3D modelling of the geophysical surveys has highlighted enormous upside potential for the expansion of the Cliff-Miles porphyry corridor. Interpretation of the 2021 drilling assays confirmed a very strong structural control of mineralization. The Cliff-Mile porphyry cluster sits within a fault-bounded graben structure. The graben structure is attributed to the extensional tectonics in the region responsible for hosting some of the well-known porphyry and epithermal gold deposits such as the KSM porphyry cluster and Valley of the Kings gold deposit (Board et al., 2020).

Mineralization tends to occur bother vertically and laterally. The early well-mineralized Medium Porphyry (“MP”) are commonly emplaced as vertical dikes along the northerly-trending Adam Fault and gently east-dipping sills in the Hazelton group rocks. Elevated gold-grades ranging from 1 to 14 g/t Au are mainly associated with silicification and quartz-carbonate-sulphide veins constrained along contact zones and syn-mineral conjugate faults.

The Cliff-Miles Porphyry Complex is highlighted by a central well-mineralized gold-rich zone outlined as 150m-wide, 2,500m-long and 600m-deep. This zone is characterized by extensive sericitic and potassic alteration and gold-rich mineralization. The high-grade gold is commonly associated with silicification in the porphyry and country rocks coincident with resistivity anomalies. Mineralization is constrained within MP and limy siltstone units and remain open in all directions. The 2021 drilling program is highlighted by KH21-42, which intersected the deepest known Quartz A-Vein stockwork mineralization to date, running 0.36 g/t AuEq over 208.00 m, and leaves it open to depth, along strike to the south and southwest. Further to the north in the Miles Block, drill hole KH21-45 cut a substantial intercept of gold-rich mineralization highlighted by 220.7m of 0.43 g/t AuEq including 43m of 1.05 g/t AuEq. The gold zone is open to the north where it overlaps with a prominent IP resistivity high to be followed in the future exploration programs.

Preliminary 3D Geological Model

The entire 4km-long Cliff-Miles porphyry corridor is now divided into 4 minable blocks characterized by similar patterns of alteration and mineralization. The feeder zone to the west and multiple horizons of gold-rich mineralization usually constrains along the Medium-Porphyry (“MP”) dikes and sills. The late-mineral porphyry (“CP”) exists as a major dike on the Western-most margin of system. The on-going 3D modelling has revealed that the Cliff-Miles porphyry system is hosted within a graben structure of multiple blocks. The structural setting and surface alteration footprint suggest a much larger magmatic-hydrothermal system underneath. Mineralization tends to occur in both hanging and footwall of the northerly trending Adam fault system. The potassic core zones at Cliff-Miles appear deeper than tested by most of the previous drill holes. The fault bounded porphyry dikes, breccias, alteration patterns and copper-gold grades all suggest the outer shell (“Carapace”) of a calc-alkaline porphyry system.

The 2021 drilling was designed to expand a large 2000m-long and 300m-wide gold zone and test the cluster of Induced Polarization (“IP”) anomalies and depth potential of the gold-rich mineralization along the 4 km long Cliff Porphyry system. The drill holes are highlighted by broad intercepts of gold-rich mineralization constrained along silicified and stockworked porphyry intrusions and host rocks.  The geological interpretation and assays identified a new model of the Cliff-Miles porphyry system sitting within a fault-bounded graben structure of multiple blocks where porphyry intrusions are emplaced along the Adam Fault, and late-stage gold-bearing veins and silicification occur within the porphyry and Hazelton Group rocks in all 4 structural blocks. Some of the significant drill intersections from 2021 and previous drill campaign are presented below.

The 4 km-long Cliff-Miles Porphyry corridor extends down to an approximate 800m depth. The vein-stockwork and disseminated Cu-sulphide mineralization indicated a gradual increase in copper content with depth. The high-grade gold mineralization constrained along the highly silicified porphyry and host rocks coincident with IP resistivity-highs and gold-in-soil geochemical anomalies.

Highlight Assays

• Miles Block
  • KH21-45 – 220m @ 0.43 g/t AuEq. incl. 43m @ 1.05 g/t AuEq.
  • KH20-37 – 83m @ 0.68 g/t AuEq. incl. 32m @ 1.24 g/t AuEq.

  Block 3

  • KH21-42 – 91m @ 0.38 g/t AuEq. incl. 30m @ 0.63 g/t AuEq.
  • MD09-01 – 331m @ 0.35 g/t AuEq. Stockwork Mineralization
  • KH17-07 – 80m @ 0.40 g/t AuEq. incl. 27m @ 0.60 g/t AuEq.

  Block 2

  • KH20-36 – 490m @ 0.33 g/t AuEq. incl. 56m @ 0.50 g/t AuEq.
  • KH18-13 – 245m @ 0.40 g/t AuEq. Stockwork Mineralization

  Block 1

  • KH18-08 – 172m @ 0.64 g/t AuEq. in Potassic alteration
  • KH18-16 – 141m @ 0.70 g/t AuEq. in Potassic alteration
  • KH19-30 – 126m @ 0.50 g/t AuEq. in Potassic alteration