COLE PORPHYRY SYSTEM

OVERVIEW



Location: 399483 E, 6263158 N

Mineral Deposit Type: Porphyry / Epithermal

Commodity: Gold-Copper-Silver

Size: 1000 x 800m Sericitic Alteration and Geochemical Anomaly

Exploration Completed: Remote Sensing, Mapping, Sampling, VTEM Surveys and Drilling (3,536m)

Planned Work: Detailed Mapping, IP Survey and Drilling

GEOLOGICAL FRAMEWORK



The Cole Porphyry system defines the northern extent of the 7.5 km long Hawilson Monzonite (‘HM’) Complex near the Triassic-Jurassic unconformity at Kirkham property. The Cole porphyry system was first mapped in 2017 where Metallis’ geologists outlined a 500m x 200m wide zone of intense sericitic alteration and porphyry style mineralization in multiple crosscutting monzodiorite and diorite intrusions. These intrusions are emplaced as NNE-trending (015º) linear dikes hosted by Stuhini andesitic and clastic sedimentary rocks and unconformably overlain by Hazelton rocks to the west. The first drilling at the Cole target in 2018 intersected multiple cm-scale gold-bearing massive sulphide veins highlighted by 137 g/t Au over 0.6 meters, similar to the gold-bearing veins found at the Snip mine, which produced 1.1 million ounces of gold at an average grade of 27.5 g/t from 1991 to 1999. (MINFILE, 2015: Snip, 104B 250; BC Ministry of Energy and Mines).

LITHOLOGY AND ALTERATION



Field mapping, drilling and petrographic analysis identified Cole as a typical sub-alkalic porphyry copper-gold system with an alteration footprint of 1000 x 800 meters. Porphyry copper-gold mineralization is associated with a series of northerly trending monzodiorite dikes cut by syn-mineral diorite and breccias and late-stage barren diorite dikes. The mapping indicated a zonal pattern of proximal sericitic alteration (QSP), medial Chlorite-Sericite alteration (SC) and peripheral propylitic (chlorite-epidote-carbonate) alteration. The gossan, within the sericitic alteration zone is characterized by pervasive and boxwork hematite-jarosite-limonite ± Manganese and green copper oxide minerals. The historic surface rock samples with 0.2-0.9% Cu and soils with 300 to >600 ppm Cu and 100-500 ppb Au correlate with the sericitic (QSP) alteration and veins in monzodiorite porphyry intrusions. The contact zones of the HM and syn-mineral diorite and feldspar porphyry dikes commonly represents abundant mm-scale scale quartz-carbonate-sulphide veins with gold-rich mineralization. The Cole porphyry system transition outward into gold bearing pyrite-pyrrhotite and epithermal style sheeted quartz veins near Etta area.

STRUCTURAL SETTING AND CONTROL OF MINERALIZATION



Field mapping and 3D geological modeling identified a distinct N15oE trending fault; referred to as the “Adam Fault” recognized as the main control of monzodiorite intrusions and gold-bearing quartz-sulphide veins at Cole porphyry system. Scattered outcrops of sheeted quartz-calcite and quartz-calcite-sulphide veins were mapped further to the west at Etta target near the Triassic-Jurassic unconformity. These veins are tabular in nature and constrained along sub-vertical faults within Hazelton Group sedimentary rocks. Mapping and drill core logging has illustrated linear sub-parallel porphyry intrusions and dikes striking N15°E and dipping ~60° to the east. This tabular geometry of the Cole porphyry dike swarm reflects the characteristics of the outer shell (“Carapace”) of a calc-alkaline porphyry system, which suggest that the untested areas are open both laterally and vertically.

ETTA EPITHERMAL SYSTEM



The Etta epithermal system occurs immediately to the west of the Cole porphyry system near the Triassic-Jurassic, Red Line unconformity (Nelson and Kyba, 2014). Metallis’ exploration team in 2018 identified a narrow NS-trending zones of gold-bearing sheeted epithermal quartz and quartz-carbonate-sulphide veins in Hazelton Group rocks. These veins are temporally and spatially related to the Cole porphyry system to the east. The cm-scale, drusy textured quartz-calcite veins remains open along strike. The tabular sheeted quartz veins at Etta are characterized by drusy textures and exhibit typical gold pathfinder mineralogy typical of epithermal systems. These epithermal veins are responsible for the geochemical gold anomalies of over 1.0 g/t Au assayed in rocks. The field mapping and drilling results established that scattered epithermal veins in Etta are hosted within the propylitic altered sedimentary rocks of the Hazelton Group, which highlight the outer shell of the Cole porphyry system to be tested at deeper levels.

cheap viagra EXPLORATION HIGHLIGHTS

EXPLORATION HIGHLIGHTS



The Cole porphyry system was first mapped in detail during the 2017 exploration program, when Metallis geologists outlined a 500 x 300m wide zone of sericitic alteration and gossans that had never been drilled. The 2018 exploration program identified the Cole Complex as a typical sub-alkalic porphyry copper-gold system with an alteration footprint extending for 1000 x 800 meters. Metallis’ first-ever drilling campaign at the Cole discovered a series of NS-trending mineralized porphyry dikes, hydrothermal breccias and massive sulphide veins cutting across the volcano-sedimentary rocks of Stuhini Group formation.

The 2018 drilling assays at the Cole target indicated a high-grade gold zone containing 11.18 g/t Au over 7.7m including 137 g/t Au over 0.6m. The cm-scale massive sulphide veins in both KH18-18 and KH18-19 drill holes appear similar to the gold-bearing veins found in Snip mine. These mineralized veins exhibit a classic suite of elevated epithermal gold pathfinder elements such as As, Ag, Bi, Sb, Se, and Te, which suggest an outer shell (“Carapace”) of Cole porphyry system. Field mapping and 3D geological modelling has illustrated multiple sub-parallel porphyry intrusions striking N15°E and dips ~60° to the east demonstrating that untested areas are open laterally and vertically.

2018 DRILLING HIGHLIGHTS



The 2018 drilling program intersected both porphyry and epithermal style mineralization. Drill hole KH18-18 intersected a series of up to 10m-thick monzodiorite intrusions and stock work quartz-carbonate-sulphide zones carrying elevated gold mineralization ranging from 0.4 to 0.94 g/t Au.

The high-grade gold intercept of 11.18 g/t Au over 7.7m including 137 g/t Au over 0.6m in KH18-19 is associated with shallow, intrusion-related massive sulphide veins. These veins transition outward into epithermal sheeted veins located at the Etta target to the west. (MTS New Release – Nov 20, 2018). Drill hole KH18-20 was drilled along and across the Adam fault cutting through a series of 4-9m gold intercepts ranging from 0.40 to 0.74 g/t AuEq, associated with similar centimeter-scale massive sulphide veins as in KH18-19. The surface geology, alteration patterns and geophysical signatures at Cole target vector towards a deeper mineralized system off to the southeast.

2019 DRILLING HIGHLIGHTS



Building on 2018’s high-grade drill intercept of 137 g/t Au over 0.6m, in 2019, the exploration team outlined a 1 km long by 200m wide zone of NE oriented faults and epithermal veins along the Cole porphyry system. Over 200 continuous rock-chip samples were collected from 21 trenches hand-excavated along the historic copper and gold geochemical anomalies. Several 2m intervals of continuous trench samples assayed anomalous gold ranging from 0.5 g/t to 1.25 g/t Au in the Cole porphyry system.

The 2019 program was designed to test the continuity of epithermal high-grade gold and porphyry copper-gold mineralization at the Cole Target. Six drill holes totaling 2,235m were drilled to test the porphyry-epithermal transition at the Cole Porphyry system, including the nearby Etta target. The drilling highlights are as follows:

• High-grade gold intervals ranging from 1.34 g/t AuEq* to 2.85 g/t AuEq* in the 2019 drill holes (See Table 1) along with the 137 g/t in KH18-19 from the 2018 program (MTS News Release Nov 29, 2018), have now confirmed the presence of multiple sub-parallel epithermal gold zones along the Adam fault;

• The broad drilling intercepts with up to 0.47 g/t AuEq* (See Table 1) correlate with pervasive green and grey sericitic altered and silicified monzonite dikes highlighting the strong potential of substantial porphyry-type mineralization at depth;

• Remnants of hydrothermal magnetite identified in holes KH19-31 and KH19-33 are now believed to be linked to a very large (2 km x 2 km) magnetic anomaly at the King East target, coincident with low resistivity and anomalous Cu, Au and Mo from soil and rock samples from previous programs.

Drill holes KH19-31 and KH19-33 tested a magnetic anomaly on the eastern fringe of the Cole porphyry system. The disseminated pyrrhotite and magnetite in KH19-31 appear to be the source of mag anomaly, whereas, KH19-33 intersected a section of mineralized monzonite with hydrothermal biotite and magnetite. This magnetic feature is probably linked to the King East target, which represents a very large coincident magnetic-high and resistivity-low anomaly extending over an area of 2 x 2 km. The calculated vertical gradient (‘CVG”) magnetic data show multiple north-south trending magnetic lineaments at King East, which reflect the structurally controlled intrusions propagated between Cole and King East targets. The exploration efforts will aim to test the copper-gold mineralization in both the high and low magnetic responses.

EXPLORATION POTENTIAL



The exploration and drilling results to date established that the Cole target is a structurally controlled porphyry system transitioning westward into epithermal gold veins. Multiple sub-parallel porphyry intrusions and hydrothermal breccia bodies along faults result in an extensive (800m x 300m) footprint of sericitic alteration including a linear (300m x 50m) zone and gold-bearing pyrrhotite-pyrite and quartz-carbonate veins. These linear zones are characterized by intense quartz stock work, disseminations, and veins of pyrite + pyrrhotite ± chalcopyrite and 0.35 to 1.0 g/t gold mineralization and subsequently cut by swarm of late-mineral barren dikes.

Mineralization including 1.34 g/t AuEq* to 2.85 g/t AuEq* in the 2019 drill holes and 137 g/t Au in KH18-19 assayed from the 2018 program (MTS News Release Nov 2018), confirmed the emplacement of multiple sub-parallel epithermal gold veins along the Adam fault. These veins mainly occur along the footwall of the Adam fault and remain open at depth and to the south. The on-going advanced porphyry vectoring and fertility tools (“PVFT”) coupled with field observations and drill logs suggest both porphyry copper-gold and epithermal-type gold potential at Cole target.

Results from the field mapping and drill data has provided significant information to reconstruct the anatomy of faults, porphyry intrusions and alteration patterns. These features commonly vector toward the core zones of the Cole porphyry system, which may have a vertical extent of approximately 1,000m. The drilling assays provided a much better understanding of the control of mineralization. Metallis’ technical team is planning a strategic exploration and drilling program, supported by IP survey, that will test the expansion of near surface epithermal gold mineralization whilst simultaneously targeting the deeper core zones of the Cole porphyry system.