CLIFF PORPHYRY SYSTEM

OVERVIEW



Location: 398805 E, 6257215 N

Mineral Deposit Type: Porphyry

Commodity: Copper-Gold (Moly)

Size: 3.5 x 0.5 Km

Exploration Completed: Remote Sensing, Mapping, VTEM Surveys and Drilling (8,267m)

Planned Work: Detailed mapping, sampling, IP survey and drilling

GEOLOGICAL FRAMEWORK



Cliff porphyry system lies on the southern end of the 7.5 km long Hawilson Monzonite (‘HM’) complex at Kirkham Property. Porphyry Cu-Au mineralization at Cliff is associated with a 200-500m wide and 3.5 km long, north-south trending corridor of Jurassic age (191 Ma) monzodiorite porphyry intrusions and breccias hosted by upper Triassic Stuhini Group rocks. The porphyry dikes and hydrothermal alteration footprint is proximate to the Triassic-Jurassic unconformity; referred to as the “Red Line” (Kyba 2014) recognized as an important geological horizon for copper-gold deposits in the Golden Triangle. The geological framework and metallogeny of the Cliff porphyry system is similar to the Kerr Deposit of Seabridge Gold’s KSM project, which has an inferred resource of 1.92 billion tonnes grading 0.41% copper and 0.31 g/t gold, containing 19.0 million ounces of gold and 17.3 billion pounds of copper (Seabridge New Release Feb 16, 2017).

LITHOLOGY AND ALTERATION



Multiphase monzodiorite dikes at Cliff are cut by monzodiorite breccia and feldspar porphyry intrusions, displaying variable proportion of plagioclase feldspars and amphiboles, hydrothermal biotite, chlorite-sericite (clay) alteration minerals. The porphyry intrusions and breccias exhibit pervasive sericitic, and, locally preserved, potassic alteration along with a network of quartz-carbonate veins and disseminated to veinlet pyrite ± pyrrhotite ± chalcopyrite mineralization. The early 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 2019 exploration and drilling program confirmed a very strong structural control of mineralization in Cliff, Miles, and Nina porphyry systems along the Hawilson Monzonite complex. Mineralization tends to occur in both hanging and footwall of the northerly trending Adam fault system, leading to two sub-parallel zones of potassic alteration and Cu-Au mineralization along monzodiorite porphyry intrusions. Elevated gold-grades ranging from 1 to 14 g/t Au are commonly associated with a network of quartz-carbonate-sulphide veins constrained along NW-trending, syn-mineral conjugate faults. The intensity of alteration, veins and chalcopyrite-pyrite ratios and Cu grades increases with depth; a key vector towards a high-temperature potassic core in the porphyry systems. The drilling data provided valuable information to reconstruct the anatomy of faults, porphyry intrusions and alteration patterns, vectoring toward the core zones of the Cliff porphyry system, which may have a vertical extent of approximately 1000m.

EXPLORATION & DRILLING HIGHLIGHTS



The Cliff porphyry system was first drilled in 2017 when hole KH17-08 intersected broad zones of copper-gold mineralization highlighted by 146 meters of 0.34 g/t Au and 0.22% Cu, including 68 meters at 0.52 g/t Au and 0.3% Cu. In 2018, the Company conducted focused geological mapping and sampling and drilling, which confirmed the continuity of Cliff porphyry system for a strike-length of 4 km between Cliff and Nina porphyry centers. The 2019 exploration program expanded the Cliff porphyry system and discovered a massive monzonite porphyry stock named as Miles zone.

The drilling and petrographic observations of the Cliff porphyry system reflects a systematic pattern of hydrothermal alteration zones, veins, and sulfide mineralization. All three holes drilled in 2019, intersected copper-gold mineralization as in hole KH19-30, which returned 126.5m @ 0.51 g/t AuEq. associated with potassic altered monzodiorite porphyry intrusions. High-grade gold intercepts, as in KH19-28, correlates with intense silicification and massive sulphide and/or late-stage quartz-carbonate veins along syn-mineral tensional faults. The intensity of alteration, veins and chalcopyrite-pyrite ratios increases with depth. This pattern vectors towards a deeper, high temperature potassic core to be tested in future exploration programs.

The structural architecture and interplay between porphyry intrusions, breccias and hydrothermal events along the HM are responsible for at least 3 distinct phases of mineralization described as.

    1. The copper-gold mineralization, such as 141 m @ 0.22% Cu and 0.40 g/t Au in KH18-16 is associated with the ore stage potassic alteration along with quartz-sulphide and quartz-carbonate A-type veins (Gustafson and Hunt 1975, Razique et al., 2014).

    2. The gold-rich mineralization ranging from 1 to 14 g/t Au is associated with strong silicification and a network of quartz-carbonate veins, commonly along the syn-mineral faults.

    3. The late-stage massive sulphide veins distal to the HM are interpreted as intrusion related gold-pyrrhotite veins similar to those found in the Snip gold mine adjacent to the Red Bluff porphyry stock.

CLIFF ASSAY HIGHLIGHTS



Cliff Assay Highlights

PRELIMINARY 3D GEOLOGICAL MODEL



The 3D geological modelling and structural reconstruction has revealed that the Cliff is a substantial (3.5 x 0.5 km) porphyry system with continuous porphyry style mineralization for a strike-length of 4 km between Cliff, Miles, and Nina porphyry centers. The Cliff porphyry system represents a series of northeast trending sub-parallel mineralized zones linked to a much larger magmatic-hydrothermal system underneath. Mineralization tends to occur in both hanging and footwall of the northerly trending Adam fault system, leading to two sub-parallel zones of potassic alteration and Cu-Au mineralization along monzodiorite porphyry intrusions.

The geology, structure and alteration distribution reflect that the potassic cores of the Cliff porphyry system are at deeper levels than tested by most of the previous drill holes. The fault bounded porphyry dikes, breccias, alteration patterns and copper-gold grades all suggest features that are characteristics of the outer shell (“Carapace”) of a calc-alkaline porphyry system. The tabular distribution of mineralization down the topographic slope represents an ideal open-pit extraction scenario during the initial development stage.

MAPS & FIGURES