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Page 1: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

001N/07/0979

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Geological Evaluation on the Klondyke Au-Ag Base Metal Property

Summary of 2013-2014 Grassroots Exploration

First year assessment report on

prospecting, geochemical sampling, bedrock mapping, and ground geophysics

Klondyke Au-Ag Base Metal Property

Licences 021616M, 021618M, 021898M, 021617M, 022153M, 021723M, and 022154M

NTS 1N/07

Witless Bay Area, Witless Bay Area, Newfoundland and Labrador

Submitted by

Nicolai Goeppel

Work year 1

Total claims: 29

Total expenditures: $ 27, 833.00

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LIST OF FIGURES ..................................................................................................................................................... 4

LIST OF APPENDICES .............................................................................................................................................. 6

INTRODUCTION ..................................................................................................................................................... 7

LOCATION AND ACCESS ......................................................................................................................................... 8

PREVIOUS WORK HISTORY..................................................................................................................................... 9

GOVERNMENT AND ACADEMIC PROGRAMS ......................................................................................................................... 9

INDUSTRY-RELATED PROGRAMS ...................................................................................................................................... 10

REGIONAL GEOLOGY ............................................................................................................................................ 11

INTRODUCTION ............................................................................................................................................................ 11

Epithermal Au-Ag Mineralization in Avalonia Belt, North American .................................................................. 11

Epithermal Au-Ag Mineralization in Avalonia Belt, Western Newfoundland ..................................................... 12

Epithermal Au-Ag Mineralization in Avalonia Belt, Eastern Newfoundland ....................................................... 13

Epithermal Au-Ag Mineralization of Klondike Area, Eastern Newfoundland ...................................................... 14

Epithermal Au-Ag Mineralization in the Klondyke Au-Ag Base Metal Property .................................................. 15

LOCAL GEOLOGY .................................................................................................................................................. 17

Lithological Map Units ........................................................................................................................................ 19

MINERALIZATION ................................................................................................................................................ 20

2013-2014 WORK PROGRAM AND RESULTS ......................................................................................................... 21

GEOCHEMISTRY ........................................................................................................................................................... 21

PROPERTY OVERVIEW NORTH TO SOUTH ........................................................................................................................... 22

Area 1 - 021616M ............................................................................................................................................... 22

Area 2 -021618M and 021898M ......................................................................................................................... 26

Area 3 -021617M, 022153M, 022154M and 021723M ...................................................................................... 29

CONCLUSIONS AND RECOMMENDATIONS ........................................................................................................... 42

CONCLUSIONS ............................................................................................................................................................. 42

RECOMMENDATIONS .................................................................................................................................................... 43

REFERENCES ......................................................................................................................................................... 45

APPENDIX 1 ......................................................................................................................................................... 47

LIST OF SAMPLE DESCRIPTION ......................................................................................................................................... 47

2014 Rock Samples ............................................................................................................................................. 47

2013 Rocks Samples ............................................................................................................................................ 52

2014 Soil Samples ............................................................................................................................................... 55

APPENDIX 2 ......................................................................................................................................................... 56

ASSAY CERTIFICATES ..................................................................................................................................................... 56

APPENDIX 3 ......................................................................................................................................................... 61

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PERSONNEL AND CONTRACTORS...................................................................................................................................... 61

APPENDIX 4. ........................................................................................................................................................ 63

STATEMENT OF EXPENDITURES........................................................................................................................................ 63

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List of Figures Figure 1. Location of Klondyke Au-Ag Base Metal Property on Avalon Peninsula. ...................................... 8

Figure 2. Claims overview and accessibility. ................................................................................................. 9

Figure 3. Distribution of Avalonian rocks within the Appalachian Orogen and epithermal systems ........ 12

Figure 4. Simplified geological map of the Avalon Peninsula showing distribution of “Avalonian” rocks. 14

Figure 5. Regional geology with mineral licences in red. Regional distribution of Harbour Main Group.. 16

Figure 6. Regional magnetics, first vertical derivative. ........................................................................ 16

Figure 7. Regional property geology map. .................................................................................................. 18

Figure 8: Local geology Area 1 ................................................................................................................... .21

Figure 9. Ground magnetometer results. ................................................................................................... 23

Figure 10. Geochemical assay data. Area 1. ............................................................................................... 24

Figure 11. Amethyst-adularia-rhodonite-chalcedonic quartz (top left), lithophysae filled with amethyst-

opaline silica-rhodonite (top right), specularite (bottom left), clay-pyrite-maroon breccia (bottom

right) .................................................................................................................................................... 25

Figure 12. Local geology and sample locations Area 2. ....................................................................... 25

Figure 13. Geology against Canstar Magnetics. .......................................................................................... 27

Figure 14. Rheomorphic ignimbrite. .................................................................................................. 26

Figure 15. Black hydrothermal breccia. ...................................................................................................... 28

Figure 16. Geochemical data. Area 2. ......................................................................................................... 29

Figure 17. Transition from ferruginous chert “ochre” to Mn-rich “umber”. .............................................. 30

Figure 18: Geochemical data from the exhalite unit. Area 3. ..................................................................... 31

Figure 19. Bedrock map of exhalite exposure and sample locations. ........................................................ 32

Figure 20. Porphyritic ignimbrite with veins ...................................................................................... 30

Figure 21. Epithermal veining with amethyst and adularia. ....................................................................... 34

showing diffuse boundaries ........................................................................................................................ 34

Figure 22. Map of pervasively silicified and clay altered zones in Area 3................................................... 34

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Figure 23. Geochemical results from Area 3. .............................................................................................. 35

Figure 24. Sample of altered ignimbrite and ...................................................................................... 33

Figure 25. Exposure of air-fall ingimbrite with pyritized ............................................................................ 35

Mn-oxide from pyritized horizon. ............................................................................................................... 35

Figure 26. Cyrpto-crystaline quartz and hematite in horizon near top right corner ...................................

Figure 27. Banding of opaline silica and chalcedonic quartz. ..................................................................... 35

tuffacous ignimbrite. ................................................................................................................................... 35

Figure 28. Local map of the ignimbritic units and sample locations. ......................................................... 36

Figure 29. Geochemical results from ignimbrite hosted stockwork veining and alteration. ..................... 37

Figure 30. Lithophysae containing banded vein material within illite matrix. Area 3. ............................... 38

Figure 31. Intense illite alteration in outcrop. Area 3. ................................................................................ 38

Figure 32. One exposure of intense illite alteration and silicification adjacent to rhyolite dome. ............ 39

Figure 33. Geochemical results from lithophysae material. ....................................................................... 39

Figure 34. North, Area 3 pyrophyllite occurrences. .................................................................................... 41

Figure 35. Geochemical results from pyrophyllite material. ...................................................................... 41

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List of Appendices

Appendix 1…………………………………………………………………………………………………………………………………………….47

Appendix 2…………………………………………………………………………………………………………………………………………….55

Appendix 3…………………………………………………………………………………………………………………………………………….61

Appendix 4……………………………………………………………………………………………………………………………………………63

Appendix 5…………………………………………………………………………………………………………………………………………….73

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Introduction The Klondyke Au-Ag Base Metal Property is located in Eastern Newfoundland, Canada. Newfoundland

and Labrador is a mining friendly jurisdiction with a long mining history. The collapse of the cod fisheries

in the early 1990s left an economic void, which has forced the majority of the work force out of province

in search of income. In recent years, the Newfoundland and Labrador government has encouraged

growth through exploitation of the province’s vast underexplored resources. Currently active small and

large-scale commercial extraction projects include such commodities as precious- and base metals,

industrial commodities, dimension stone, off- and on-shore oil and gas. According to the annual global

survey of mining executives released March 2014, by the Fraser Institute, Newfoundland has been

recognised as one of the top three mining jurisdictions in Canada and 9th in the global standing (Fraser

Institute, 2014).

The Klondyke Au-Ag Base Metal Property is situated on the Avalon Peninsula, approximately 45 km

south of St. John’s, Newfoundland (Figure 1). Specifically the project is located in the region west of

Witless Bay, near Country and Gull Pond in the region deemed the Klondike. The property covers 1576

hectares, consisting of 7 mineral licenses: 021616M, 021618M, 021898M, 021617M, 022153M,

021723M, and 022154M. All licenses are currently in good standing with exploration approval held by

Nicolai Goeppel.

The Klondyke Au-Ag Base Metal Property was initially staked in the fall of 2013 with subsequent staking

in winter and spring of 2014. Prior to staking, the area was systematically covered by limited prospecting

and mapping to investigate pronounced geophysical anomalies that corresponded to favourable geology

of known Au-Ag epithermal and Au-rich volcanogenic massive sulphide (VMS) mineralization in the

region. The claims lay within the greater Avalon Trend of the Eastern Appalachians of North America; an

extensive belt of epithermal-related mineralization hosted in Neoproterozoic rocks. The Klondyke

project was staked based on field observations the suggested favorable lithologies, geological setting,

and alteration characteristics of epithermal- and VMS-style of mineralization. New low-sulphidation

discoveries on the western Avalon and recent work on the past producing Hope Brook high-sulphidation

mine has led to a significant increase in staking and exploration for epithermal mineralization across the

Avalon Terrane in Newfoundland.

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Figure 1. Location of Klondyke Au-Ag Base Metal Property on Avalon Peninsula.

Location and Access The Klondyke Au-Ag base metal property is road accessible, situated on the Avalon Peninsula,

approximately 25-35 km southwest of St. John’s, Newfoundland (Figure 2). The region is adjacent to Gull

and Country Pond near the community of Witless Bay, within NTS 001N/07. The claims lie in elevations

between 120 to 280 m. The claim area is characterized by recessive weathering defining structural

linears and numerous prominent rhyolite domes. Lower elevations beyond claim boundaries are

typically marshy areas with abundant small lakes and ponds. Access to the northern extent of property is

by the Trans-Canada highway (Route 1), the Witless Bay line (Route 13), and by a seasonal vehicle-

accessible dirt road to within licence 021616M. Access to the southern extent of the project, is achieved

via the Southern Shore highway (Route 10) and the Gull Pond road a seasonal vehicle-accessible dirt

road. The property is located outside of St. John’s municipal boundaries within a short distance to power

and nearby deep-water ports.

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Figure 2. Claims overview and accessibility.

Previous Work History

Government and Academic Programs

Some of the earliest regional geological work was done by Rose (1952) and McCartney (1969) on the

regional stratigraphic framework of the area. Further work was conducted by Dawson (1963) who

correlated the Oval Pit pyrophyllite deposit with pyrophyllitized and sericitized rhyolitic rocks. In

addition the Earth Science Department of Memorial University of Newfoundland, St. John’s, has

conducted a number of studies on the pyrophyllite deposits in the belt including Vhay (1937), Keats

(1970), and Papezik (1978).

A 1:250,000 scale compilation map was produced by King in 1988, the Geology of the Avalon Peninsula.

During the early 90s, exploration had surged in the region with numerous multi-gram epithermal Au

showings emerging. In 1990, Davenport conducted a government lake sediment survey over the Avalon

Peninsula. Similar to Dawson (1963), Hayes and O’Driscoll (1990) defined a 15-km long north-south

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striking zone of rhyolitic rocks with associated alteration and gold potential, which they called the

eastern Avalon high alumina belt (EAHAB).

O’Brien, Dubé, O’Driscoll and Mills (1998) compared the geological setting of gold mineralization and

related hydrothermal alteration in late Neoproterozoic Avalon rocks of Newfoundland to gold deposits

elsewhere in the Appalachian Avalonian belt. Within the same immediate area as Steep Nap and the

Oval Pit mine, O’ Brien (2002) reported on the newly discovered Bergs showing. Government sampling

included grab samples assaying up to 7220 ppb Au and chip sampling over siliceous zones, which

assayed 250 ppb Au over 20 meters; in turn a low-sulphidation epithermal style of mineralization was

proposed for the Bergs veins and breccias.

Recently, a detailed regional mapping within the central Avalon Peninsula was supplemented by new

geochronology and carried out by O’Brien, Dunning, Dube, O’Driscoll, Sparkes, Israel and Ketchum in

2001. The authors proposed an informal, revised stratigraphic subdivision for the Harbour Main Group

volcanic rocks. Additionally, felsic domes located in the Country Pond area were correlated with the

Manuels Volcanic Suite based on geological field relationships and geochronology. O’Brien and Sparkes

(2003) reported on additional sampling from the Bergs Prospect, which identified discrete zones of

bonanza-grade gold mineralization assaying up to 54.3 g/t Au in bedrock.

Industry-related Programs

In general, the eastern Avalon of Newfoundland is under explored with a brief exploration history. Esso

Minerals Ltd. (1986) carried out geological mapping, rock sampling, and stream sediment sampling over

the entire property within the current Avalon Trend. A total of 80 rock samples were collected with high

assay values of 100 ppb and 190 ppb Au. Additionally 26 stream sediment samples were collected with

the highest gold value of 12 ppb. Furthermore, Avalon Mines Ltd. (1986) carried out line cutting,

detailed geological mapping, soil geochemistry, VLF-EM, and magnetometer geophysical surveys over

the general vicinity of the Roadcut occurrence. This was followed by a subsequent four-hole diamond-

drilling program.

Northstar Exploration Ltd. (1997) acquired much of the area of interest on the Avalon Peninsula.

Exploration was targeted large, open-pit, low-grade deposit, similar to Hope Brook. The program

consisted of geological mapping, prospecting, soil, and till sampling. During the course of this program a

total of 1194 soil samples and 92 rock samples were collected and analyzed for Au and an ICP-30

element package. Furthermore, 27 till samples were processed by Overburden Drilling Management

Limited of Nepean in Ontario. Several of the rock samples taken at Steep Nap were anomalous in gold

and silver, while soil samples returned localized anomalous gold and elevated silver. Chip sampling

conducted on the “road exposure” of the Steep Nap vein returned values of 1564, 1253, 2130, 534,

1699, 1574 and 740 ppb Au. Grab samples taken at the same location returned values up to 4320 ppb

Au.

Fort Knox Gold Resources (1998-1999) initiated an extensive regional prospecting program in the

eastern Avalon high alumina belt. The program consisted of 541 rock samples and grid soil sampling

several regions of the belt. This activity has led to the new Santana discovery, gold-silver mineralization

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with results up to 31.6 g/t Au in angular fly rock. Detailed work included trenching, ground geophysics,

and diamond drilling. Trenching uncovered a narrow zone of mineralization in bedrock assaying 6 g/t Au

and 612 g/t Ag. Five holes were collared in the vicinity of the discovery; however, only narrow zones of

auriferous mineralization were encountered in core. One drill hole tested the Steep Nap vein in

Conception Bay South, and failed to intersect the vein at a shallow depth indicating the vein is cut-off at

depth by a low angle thrust fault.

Prospector-geologist Michael Basha (1999) staked two licenses in the Grog Pond area based on a lake

sediment selenium anomaly. Prospecting resulted in the discovery of a previously unrecognized low-

sulphidation epithermal mineralization. The Grog pond occurrence yielded up to 1850 ppb Au with

elevated Ag, Pb, and Cu occurring as vein swarms or stockwork of narrow veins composed of quartz-

hematite-adularia. Rubicon optioned the property in 2002 to compliment the larger Avalon Trend

project with latter sampling revealing up to 7.5 g/t Au.

In the Country pond area Rubicon (2002-2008) carried out soil, lake, and rock sampling with limited

bedrock mapping. This in turn led to the discovery of the Country Pond and Lookout Pond occurrences.

The most significant discovery was the Big Vein showing, approximately 200 m in length, a hematite-

chalcedonic quartz breccia zone, which yielded up to 80 ppb Au in channel samples. The area is

interpreted as high-level epithermal environment and rhyolite dome complex. Channel sampling of the

breccia zones returned anomalous values (up to): Ag (0.5ppm), As (17.5ppm), Bi (1.26ppm), Cu

(26.1ppm), Ga (15.25ppm), La (31.6ppm), Li (30.3ppm), Mn (443ppm), Mo (6.73ppm), Nb (13.6ppm), Pb

(165ppm), Rb (186.5ppm), Sb (2.44ppm), Ta (1.13ppm), Th (11.3ppm), U (3.5ppm) (Sparkes, 2005). In

the area north of Witless Bay Country Pond, sample RNF15856 returned 9.2 g/t Ag, 1165 ppm Cu, 14

ppm Mo, and 25 ppm Pb.

Regional Geology

Introduction

Epithermal Au-Ag Mineralization in Avalonia Belt, North American

The North American Avalonia Belt (Figure 3) hosts many significant examples of Neoproterozoic (1000–

542 Ma) Au-Ag bearing epithermal systems including Kuroko-style VMS and high- and low-sulphidation

systems (O’Brian et al., 2001). In general, these Neoproterozoic epithermal gold deposits have several

notable differences relative to much younger, circum-pacific epithermal gold deposits. These differences

include: a distinctive geochemical signature, which includes Au, Cu, Ag, Mo, Pb, As, Te, and REE; the

presence of Fe-sulphide and Fe-oxide breccias, layers, stockwork veining; and distinctive hydrothermal

alteration styles. Some of most notable Avalonian gold deposits are located in South Carolina including

several notable deposits such as the Brewer (~0.25 Moz Au), Haile (~ 4.2 Moz Au), Ridgeway (~1.5 Moz

Au) and Barite Hill (0.6 Moz Au) mines (O’Brien et al., 1999).

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Figure 3. Distribution of Avalonian rocks within the Appalachian Orogen and epithermal systems (Sparkes, 2012).

The Brewer mine is a well-documented example of a metamorphosed, high-sulphidation epithermal

system (O’Brian et al., 1999). Whereas, Barite Hill represents a sheared and deformed auriferous

volcanogenic massive sulphide deposit, hosted primarily by laminated mudstone and felsic volcanic to

volcaniclastic rocks within the Carolina Slate Belt (Foley and Ayuso, 2012). The style of mineralization at

Ridgeway and Haile mines is unclear, at both syn-metamorphic, metamorphosed epithermal, and

orogenic origins have been argued. However, mineralization at the Halie deposit; explicitly the

Champion pit consists of disseminated low-sulphidation ore occurring in breccias associated with a sub-

volcanic quartz porphyry and within crystal-rich tuffs, ash flows, and sub-volcanic rhyolite (Foley and

Ayuso, 2012).

Epithermal Au-Ag Mineralization in Avalonia Belt, Western Newfoundland

Current exploration within late Neoproterozoic volcanic and associated sedimentary rocks in the

western Avalon Zone of Newfoundland has led to new developments in high- and low-sulphidation

styles of epithermal mineralization. These recent discoveries include exploration at the Big Easy Project

held by Silver Spruce Resources, Puddle Pond Resource’s Heritage Project, and reanalysis of the Hope

Brook past producing mine by Coastal Gold. These new discoveries have led to invigorated exploration

across the Avalon for characteristic Au-Ag epithermal mineralization; resulting in a noticeable increase in

staked claims in recent years, commonly over the favourable regional geology. Majority of exploration is

focused in a region, which spans a distance of approximately 275 km from the southern tip of the Burin

Peninsula to the coastal areas of Bonavista Bay, and contains numerous occurrences of both high- and

low-sulphidation epithermal types. The host rocks consist of volcanic successions and related

sedimentary sequences of the ca. 595–565 Ma Marystown Group, the ca. 570–550 Ma Long Harbour

Group and the post-570 Ma sedimentary rocks of the Musgravetown Group (Sparkes, 2012).

The Big Easy low-sulphidation epithermal property consists of 186 claims (46.5 km2) held by Silver

Spruce Resources, located near Thorburn Lake in east-central Newfoundland. Mineralized zones occur in

sedimentary units of the Rocky Harbour Formation of the Musgravetown Group, which are in contact

with the Love Cove Group mafic and felsic volcanic rocks. Preliminary drilling has intersected high level

low-sulphidation textured veins and breccia zones with banded adularia and black “ganguro” veins.

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Values from drilling including: 7.9 g/t Au, 130 g/t Ag over 1.2 m; and 6 g/t Au, 174 g/t Ag over 1.5m

(Silver Spruce Resources Inc.).

Puddle Pond Resources, Heritage Project is defined as a low-sulphidation epithermal deposit. Bonanza

grade Au-Ag mineralization has been encountered in the early stages of exploration. Grades range up to

117 g/t Au and 2769 g/t Ag are manifested as pervasive quartz vein and hydrothermal breccias with

crustiform and bladed textures. Currently the company has delineated a zone of anomalous Au-Ag and

hydrothermal alteration that has a 3.9 km strike length and up to 1.0 km width (Puddle Pond Resources).

The host rocks consist of volcanic successions and related sedimentary sequences of the ca. 595–565 Ma

Marystown Group.

Hope Brook past producer is located in the south western extent of the Newfoundland Avalon zone. The

deposit is similar to the Brewer mine, consisting of a metamorphosed high-sulphidation epithermal

deposit. The deposit was first discovered in 1983 by BP-Selco Inc., and was mined from 1987 to 1997;

with total production from 1993 to 1997 reported to be 752,163 ounces of gold. As of June 2014 the

current indicated resource at Hope Brook is 1,076,000 oz of gold at 3.05 g/t grade, and an additional

106,000 oz of gold at 4.06 g/t inferred (Coastal Resources).

Epithermal Au-Ag Mineralization in Avalonia Belt, Eastern Newfoundland

The property is regionally situated in the Avalon Zone of the eastern Appalachians within

Neoproterozoic volcanic lithologies of the Harbour Main group (Figure 4). From the early-90s into the

early 2000s the Harbour Main Group had been a target for epithermal and VMS exploration. Hosted

within the Harbour Main Group on the Avalon Peninsula are several notable epithermal occurrences

including: the Berg’s Bonanza grade low-sulphidation multi-stage hematite-quartz epithermal vein

breccia with up to 54.6 g/t Au from grab sample; the adjacent Steep Nap drilled prospect consisting of

banded chalcedonic quartz-adularia low-sulphidation epithermal vein, yielding up to 4 g/t Au locally

with channel samples across the vein averaging 3.3 g/t Au over 1.7 m; and the producing high-

sulphidation Oval Pit pyrophyllite- diaspore mine (Sparkes, 2012). High-sulphidation Au epithermal

systems are historically more productive in the Avalonia Belt; however, in Newfoundland low-

sulphidation systems appear more prevalent.

Situated approximately 30 km south of St. John’s within the Harbour Main Group, low-sulphidation

mineralization at the Santana and Roadcut showings occur as disseminated sulphide, chalcedonic

quartz-hematite stockwork veining in flow-banded rhyolite, pumice-rich lapilli tuff, tuff-breccia, and

lithophysae-bearing epidotized ash-flow material. The Santana occurrence has historic values from grabs

including 11.2 g/t Au and 210 g/t Ag, blasted fly rock returned 31.6 g/t Au, and in addition 6.2 g /t Au

and 612 g /t Ag was returned from trenches. The adjacent Roadcut occurrence returned values up to

11.2 g/t Au and 210 g/t Ag. Furthermore within the same area as Santana and Roadcut is the

Pasturelands occurrence. This occurrence is interpreted as an Au-rich semi-massive VMS, which occurs

in the associated Witch Hazel Pond group. Specifically the showing is hosted within intermediate-mafic

volcanic rocks and grades up to 2.5 g/t Au, 1.5 oz Ag, 1.35% Cu, 8.9% Zn and 5.2% Pb (Sparkes, 2012).

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Figure 4. Simplified geological map of the Avalon Peninsula showing distribution of “Avalonian” rocks, red dots and lines delineate epithermal prospects and/or deposits (Sparkes, 2012).

Epithermal Au-Ag Mineralization of Klondike Area, Eastern Newfoundland

The Klondyke Project has been under exploration through grass roots methods since the fall of 2013. As

a result the determined underlying geology is consistent with a bimodal rhyolite and basalt-andesite rift

environment with accompanying sedimentary basins. Locally claims overlay subareal felsic volcanic,

pyroclastic, and intermediate to mafic volcanic and volcaniclastic units. Lithologies are characteristic of

the Neoproterozoic Manuels Volcanic Suite and Wych Hazel Pond Complex of the Harbour Main Group.

The geological setting is of a favourable and historically fertile environment for generation of epithermal

and VMS systems. In outcrop, wide spread, near-vertical faulting is apparent with more significant

structures forming topographical ledges and linears. Structures in rhyolitic and pyroclastic lithologies

have been investigated across the claim block and typically display wall rock alteration, vein mineralogy

and textures characteristic of low- and intermediate-sulphidation epithermal systems. Lookout Pond

and Country Pond showings are situated in the Klondyke area. Showing consists of a number of large

hematite breccia zones, interpreted as part of an upper level epithermal system. Reinvestigation into

the Lookout Pond showing has indicated that hematite breccia zones are potential ferruginous chert

units with exhalite origin. Geochemical signatures from historic results suggest a similar provenance.

The exhalite unit may represent upper “ochre” of VMS system, the locally observed transition into

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enriched yellow oxidized and black manganese-rich material, which may reflect transition into “umber”

zone. The unit has greater than 1 km strike length to alternate hematite-quartz breccia zones,

observable as a laterally extensive linear low in airborne geophysics. The following sections will detail

the work conducted from fall 2013 to fall 2014 on the Klondyke Au-Ag Base Metal Project; in order to

outline areas of potential mineralization and to provide a current exploration model to increase the

effectiveness of future actions.

Epithermal Au-Ag Mineralization in the Klondyke Au-Ag Base Metal Property

The Klondyke Au-Ag Base Metal Property is situated within the Avalon tectono-stratigraphic zone of the

Newfoundland Appalachians. The Avalon Zone consists of late Proterozoic age units including arc-

related volcanic and plutonic rocks, and associated sedimentary cover sequences. In the eastern region

of the Avalon, late Proterozoic units are unconformably overlain by flat-to gently dipping Paleozoic

platformal marine sedimentary sequences (Myrow, 1993).

The tectonic setting for this region of the Avalon Peninsula is considered a continental back-arc

extension characterized by alternating zones of volcanic islands and deep-marine basins filled by aprons

of volcaniclastic sediments. This is supported in government and academic petrologic and geochemical

studies of volcanic suites and by sedimentological analyses, which indicate that majority of the

sedimentation took place in ensialic rift basins and associated continental arc settings. Neoproterozoic

Avalonian Orogeny is characterized by associated folding and volcanism, and followed by post-orogenic

erosion and deposition of extensive Cambrian siliciclastic deposits (Myrow, 1993).

Specifically in the eastern zone of the Avalon Peninsula Neoproterozoic to Lower Cambrian rocks of the

Avalon Terrane comprise three geologic regions (Figure 5). These regions, with decreasing age are as

follows: rift-related bimodal volcanic rocks of the Harbour Main group; volcaniclastic flysch deposits of

submarine fan and slope origin, make up the Conception and St. John's groups; and coarsening-upward

shallow-marine to proximal alluvial fan molasses deposits of the younger Signal Hill Group.

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Figure 5. Regional geology with mineral licences in red. Regional distribution of Harbour Main Group (green), Holyrood Intrusive Suite (pink), Conception Group (brown), St. John’s Group (light blue), and Signal Hill Group (dark blue).

The Harbour Main group is proven to host ‘classic’ examples high- and Au-Ag low-sulphidation

mineralization. Most evident in the 15 km long north-south trending belt situated along the boundary of

the Harbour Main Group and Holyrood Intrusive Suite, loosely termed the eastern Avalon high alumina

belt (EAHAB). The Harbour Main Group is further subdivided into the Manuels Volcanic Suite and coeval

Wych Hazel Pond Complex. The Manuels Volcanic Suite occurs predominantly as sub-areal rhyolite and

ignimbritic units and hosts all the low-sulphidation epithermal occurrences in the eastern Avalon high

alumina belt. The Wych Hazel Pond Complex hosts the Pasturelands Au-rich VMS showing; units are

characterized by sub-areal mafic lithologies, and associated mafic tuffaeous agglomerates and related

basal sediments.

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The Klondyke project is located east of the EAHAB. Claims overlay geology consistent with a bimodal

rhyolite and basalt-andesite rift environment and dome complex including; subaereal felsic volcanic,

pyroclastic, and intermediate to mafic volcanic and volcaniclastic units. Historically, the felsic volcanic

rocks in the area of focus have been informally referred to as the Country Pond Rhyolite. This unit has

been noted as characteristically similar to the Manuels Volcanic Suite (O’Brian et al., 2001). In addition

intermediate to mafic lithologies in the region are interpreted as lithological equivalents to the Wych

Hazel Complex.

Local Geology Claims overlay bedrock geology consistent with rift related sub-areal bimodal rhyolite to andesite-basalt

volcanic island arc in a back-arc extension, characterized by emplacement of a dome complex. A regional

property bedrock map was produced based on geological field observation collected during the 2013-

2014 field season, interpretation of Canstar Ltd. geophysical data, and by airphoto interpretation (Figure

6 and 7). The area has undergone deformation and subsequent folding, and previous government and

academic mapping suggests that the property is situated in a large anticline (Sparkes, 2012). Field

observations suggest a well-preserved, north-south bimodal rift environment with dome- and flow-

related rhyolites and pyroclastic units trending in a north-south direction and forming a central corridor

at higher elevations in staked areas. To the east and west peripheral to felsic volcanic and pyroclastic

units are marine to sub-areal andesitic to basaltic lithologies; extending beyond these intermediate and

mafic volcanic units to the east and west are surrounding basin fill marine and volcanoclastic cover

sequences. From mapping and geophysical correlation, sediments along the eastern margin of the

claims appear to cover deeper rift related mafic dykes and structures.

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Figure 6. Regional magnetics, first vertical derivative. Figure 7. Regional property geology map.

Wide spread high-angle normal faults including east-west trending horst and graben structures are likely

to form from subsequent collapse and latter reactivation by trans-extensional stress following the initial

island arc formation. High-angle normal faults occupy lithological contacts and alternate zones of

weakness dominantly around dome structures and locally juxtapose lithologies as down drop blocks.

These faults often show alteration where good surface exposure is present. Alteration displays varying

mineralogical assemblages and is described in detail in the Mineralization section of this report.

Structures parallel large-scale regional faults delineated from regional geophysics and topographic

interpretation and typically trend in the north-south and east-west direction.

The sequence of sub-aerial felsic volcanic and pyroclastic rocks are of similar facies to the Manuels

Volcanic Suite and generally observed as exposed domes and flows east of the Topsail Fault,

immediately south of the Witless Bay Line. The succession is assigned the informal designation, Country

Pond Rhyolite. Intermediate units of andesitic composition have similar characteristics to the Triangle

Andesite and descriptions specifically near Triangle pond including; dark green-grey containing calcite

and plagioclase phenocrysts or amygdules, often with pervasive hematization or presence of hematite

and chalcedony filled vesicles and amygdules. In addition, mafic lithologies including mafic agglomerate,

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locally vesicular and typically fine-grained basalt are interpreted from previous studies as lithological

equivalents of the Wych Hazel Complex. Lithologies of mafic and intermediate volcanics locally form

large domes, but are generally less observed in outcrop and mapped as one unit.

Lithological Map Units

Flow rhyolite: fine grained, massive to flow banded red to maroon locally porphyritic rhyolite,

containing frequent lithophysae gas release structures. Separate horizons are more tuffaceous and have

lapilli. Locally flow rhyolite displays brecciation filled by intruding variably porphyritic rhyolite.

Dome rhyolite: red to maroon fine grained rhyolite displays internal folding with inconsistent flow

banding, often brecciated, and locally re-intruded by rhyolite. Pronounced resistive rhyolite domes are

most evident feature throughout the claim blocks.

Hydrothermal Breccia: quartz, chalcedonic silica, and red and maroon hydrothermal hematite form

matrix in structurally associated hydrothermal breccia. Unit is most prominent in Area 2 the middle

region of the claim block. Clasts consist of maroon flow banded tuffacous rhyolite and rheomorphic

ignimbrite.

Coarse Ignimbrite: coarse epidotized tuffaceous matrix containing clasts of rhyolite and ash material

<25 cm. Locally, pyroclastic unit displays air-fall bedding, lapilli, and bombs. Unit in some areas shows

intrusion of rhyolite exhibited as red to maroon variably porphyritic breccias.

Rheomorphic ignimbrite: consists of intensely folded fine grey-black layers, locally fabric conforms

around relic lapilli. Unit has limited exposure, only observed in the mid region, Area 2 of the property.

Porphyritic ignimbrite: grey weathering, pale green fresh porphyritic ignimbrite, with epidotized

tuffacous matrix and tabular plagioclase phenocrysts.

Andesite-Basalt: Andesites are porphyritic, grey weathering, plag-ferric dark grey to green colour fresh

surface, fine-grained matrix locally with amygdaloidal plagioclase and calcite present. Shallow mafic

lithologies are dark green to black; fine to medium grained basalt with amygdaloidal calcite, plagioclase,

and replacement epidote, mafic unit is locally vesicular.

Clastic boulder breccia: clastic boulder breccia is present in float and limited exposures, more recently

the unit likely reflects an intermediate to mafic ignimbrite in the north and mafic agglomerate to the

south. In the north unit clasts are angular, matrix is tuffaceous with minute plagioclase phenocrysts and

hematitic. To the south, unit consists of up to boulder sized clast supported agglomerate; clasts are sub-

rounded to rounded, well sorted consisting of vesicular and amygdaloidal basalt in a grey-black fine

grained matrix.

Outlaying sedimentary units: Several exposures of sedimentary units are exposed along the Gull Pond

road beyond the claim boundaries. East of the property, outcrop at the south end of Gull Pond consist of

pale green-pink fine grained mudstones in laminar beds, geophysics suggest this unit blankets

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underlying mafic rocks. To the west of the property from bedrock exposures in creek beds, green to

grey-green pyritic sandstones have been observed.

Mineralization The Klondyke Project has been under exploration through grass roots methods since the fall of 2013. As

a result the determined underlying geology is consistent with a bimodal rhyolite and basalt-andesite rift

environment and dome complex with accompanying sedimentary basins. Such environments have been

globally identified as a preferential host to low-sulphidation epithermal and Kuroko Au-rich VMS

deposits. The project is in exploration infancy; however, the initial year of exploration has provided

strong evidence for Kuroko-style VMS and epithermal mineralization.

Reinvestigation of the Lookout Pond and Country Pond occurrences showed that the hematite quartz

breccia zones may in fact represent a ferruginous hematite chert exhalite and upper ‘ochre’ zone of a

shallow VMS system. The Lookout Pond occurrence is situated at the contact between rhyolitic and

mafic lithologies; this is represented as an obvious linear low in geophysics, which adjoins the Lookout

Pond showing to alternate hematite breccia zone occurrences in the south, for a greater than one

kilometer strike length. Previously undocumented at the Lookout Pond showing, the ferruginous chert

layer is underpinned by yellow-orange oxidization and invading black manganese-rich mineral, indicating

a possible “ochre” to “umber” transition zone. Geochemical data collected by the author and indicated

from Rubicon channel sampling supports an exhalite origin, which is also indicated by strongly elevated

rare earth elements, U, and Th.

Epithermal alteration persists throughout the claims exhibited where high-angle normal faults are

exposure in rhyolitic and pyroclastic units. Alteration observed is typical of low-sulphidation epithermal

systems commonly exhibited as pervasive silicification, often seen in combination with intense illite

alteration, minor chlorite and pervasive andularia. Vein material commonly occurs as crypto-crystalline

chalcedonic or opaline silica, forming druse lined cavities, banded, comb or coliform veins and breccia-

fill, often in layers with hydrothermal hematite and/or adularia and locally minor pyrite.

In the northern area of the property (licence 021616M), bedrock exposures exhibit gangue assemblages

that are prevalent in intermediate-sulphidation epithermal deposits. Characteristics of vein material and

alteration resemble the Creede district, specifically the intermediate-sulphidation North Amethyst vein

system, Colorado, USA. Furthermore, intense illite alteration that is characteristic of upper level

mineralized structures at Creede deposit; similar characteristics and intense illite alteration have been in

bedrock exposures. Structurally associated veins and expansion breccias display gangue material

occurring as bands and layers of crypto-crystalline chalcedonic or opaline silica, with bands and layers of

hydrothermal hematite and/or adularia, amethyst, and rhodonite, and locally minor pyrite or

specularite.

In addition, in the southern region of the property locally a minor fault associated with large east-west

linear, shows intensely pyrophyilitized material in dome rhyolite and ignimbrite. Based on the current

understanding of genetic relationship seen between intermediate- and high-sulphidation deposits, in

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several deposits high and intermediate-sulphidation mineralization shows time-space affinity; typically

observed as intermediate veins forming on the margins of high sulphidation deposits or in mineralized

and barren lithocaps. Intermediate alteration may be indicative of areas peripheral to high-sulphidation

centers where fluids equilibrate with wall rock. High-sulphidation centers would be more prone to

erosion and less likely to be preserved.

Often less prominent white “bull” quartz veins with minor epidote and adularia are present overprinting

earlier epithermal veins, typically occurring in mafic-intermediate volcanic lithologies. These veins are

interpreted as Devonian in age and lack epithermal textures and associated minerals and therefore were

not sampled. A total of 81 rock and 11 soil samples were collected from bedrock exposures and localized

faults across the property. Sampling was taken from stringer veins, breccia zones, and commonly from

zones showing epithermal-related alteration; however, due to recessive weathering, alteration centers

and likely ore zones are obscured by overburden. The collected samples provide insight in identifying in

composition of potentially mineralized structures, but since no true ore zones have been sampled, the

mineralizing style of the system cannot be readily identified as alteration zones may display overprint.

Details including geochemical results, property-scale bedrock maps, and alternate notable

characteristics will be outlined in the following sections, and detailed by three areas moving north to

south.

2013-2014 Work Program and Results

Geochemistry

Rock samples collected from 2013 where tested using a 30 element, multi-acid, partial digestion and

analysed using ICP-OES with Au only fire assay and detected using atomic absorption; these samples are

denoted by the prefix 13. Correspondingly, soil and rock samples collected during 2014 are denoted by

the prefix 14; to incorporate analysis for Se a 34 element ICP-OES and Au fire assay was used. Samples

were prepared and analysed by Eastern Analytical’s facility in Springdale, NL. Duplicates and multi-

element standards were routinely inserted as part of analytical packages to ensure quality assurance.

Geochemical sampling was done on epithermal veins, alteration material associated with minor faults,

and on wall rock alteration associated with larger buried structures within the rhyolitic and pyroclastic

lithologies. Samples; therefore, were not taken across centers of any major structures and prospective

ore sites. The area is inferred to represent a high-level epithermal environment. In low-sulphidation

environments where vertical zonation is characteristic, in high-level regions low Au and Ag values are

expected but assays are more inclined to display associated pathfinders. Results consequently were not

expected to return significant values but any anomalies in Au-Ag or associated pathfinders are

encouraging and offer insight to the possible geochemistries of larger buried adjacent linears.

Geochemical associations in low-sulphidation deposits include; anomalously high Au, Ag, As, Ba, Sb, Hg,

Zn, Pb, Se and K (Hedenquist, 1995). Alternatively, high-sulphidation systems show less prominent

zonation due to rapid episodic ascent of reactive fluid and are geochemically associated with elevated

Au, Ag, As, Ba, Cu, Sb, Bi, Hg, Te, Sn, Pb and Mo (Hedenquist, 1995). The intermediate-sulphidation

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subgroup is less understood; visually in regards to alteration and vein assemblages deposits are more

similar to low-sulphidation style, yet recently interpreted as showing coeval time-space affinity with

high-sulphidation systems. Geochemically intermediate-sulphidation deposits will show anomalous Ag-

Au, As, Ba, Cu, Mn, Mo, Sb and Se (Hedenquist and Sillitoe, 2003).

With the fore mentioned criteria results collected from 2013 and 2014 revealed elevated elements

associated with epithermal mineralization including: Au, Ag, Ba, Cu, Hg, Pb, Zn, As and Sb; anomalous Se

and K typical of low-sulphidation; also elevated Sn, Mo and Bi distinctive of high-sulphidation systems;

and most notable in results, highly anomalous Mn. Geochemically results conform to intermediate

sourced fluids to best explain values.

In addition, geochemical results from the Lookout Pond hematite breccia and a review of channel

sampling done on the similar Country Pond showings, lack elevated epithermal pathfinders. Results;

however, reflect elevated REEs, base metals, U and Th; this coupled with field observation may suggest

the unit is a ferruginous chert of exhalite origin. Mapping of elevated REEs in exhalites is practiced to

locate underlying VMS deposits. The interpreted bimodal rifting environment is favourable for Kuroko-

style Au-rich VMS mineralization. These types of deposit especially in shallow submarine environments

show geochemical variation to typical base metal-rich VMS deposits. This is interpreted as a result for

transitioning into a submarine (VMS) to subareal (epithermal) epithermal setting.

Property overview North to South

Area 1 - 021616M

Mineral licence 021616M makes up the northern extent of the property. Area 1 is easily accessible south

off the Witless Bay Line by vehicle-accessible dirt road. Recent commercial logging in the area has

resulted in improved and extended accessibility to the licence; in addition, much of the target area has

been clear cut. Presently, bedrock exposures have been mapped resulting in 19 rock samples from

outcrop and localized float, 7 soils, and ground magnetometer survey covering ~2600 m2 (Figures 8 and

9).

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Figure 8: Local geology Area 1. Figure 9. Ground magnetometer results

Mapping indicates presence of red-pink dome rhyolite, locally in fault contact with intermediate-mafic

ignimbrite (mapped as clastic boulder breccia), and peripheral fine-grained to locally vesicular and

amygdaloidal basalt-andesite. Hydrothermal alteration and expansion breccias are observed in outcrops

of dome rhyolite in association with observable high-angle faults or evident topographic linears.

Alteration is characterized by pervasive silicification, intense illite and/or sericite alteration more

proximal to structures with minor chlorite, pyrite, and clays. In addition, pervasive rhodonite and

andularia alteration is seen locally. Vein material consists of crypto-crystalline chalchedonic quartz and

opaline silica, andularia, jasper, amethyst, rhodonite, and specularite. Assay results from Area 1 are

grouped and displayed in Figure 10. Values returned anomalous Au and Ag values up to 16 ppb and 0.5

ppm respectively; anomalous pathfinders include As, Ba, Hg, Mn, Pb, Sb, Sn, Zn, Se, slightly elevated Mo,

Cu and Bi.

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Figure 10. Geochemical assay data. Area 1.

All anomalous gold values including several samples returning anomalous Ag and pathfinders were

returned from an outcrop exposure displaying a greater than 250 m north-south trending fault zone.

This zone is observed in a dome rhyolite complex in fault contact with possible lenses of relatively un

altered intermediate-mafic ignimbrite (mapped as clastic boulder breccia, Figure 8). Trenching in the

south extent of the fault has revealed a 3 m wide intense illite altered zone. The alteration is in the

hanging wall of the rhyolite dome and it extends up to 3-4 m away from the main structure with

increasing silicification and brecciation. Rhyolite clasts are leached to a chalk white colour with

increasing sericite, locally up to 3 m wide intense pale green illite, and pyrite towards the centre. The

internal zone within the structure is obscured by shallow overburden. Brecciation in wall rock intensifies

closer to the structure, forming expansion jig-saw breccias with matrix consisting of zones or alternating

bands of chalcedonic and opaline silica, jasper, amethyst, adularia, rhodonite, and locally specularite

(Figure 11). Similar breccia zones are seen in outcrops persisting over 400 m along an associated

topographical linear. Amethyst-adularia veining within the intense illite alteration zone locally occurs in

the mapped fault. The most notable breccias consist of silica gel with hematite variations and rhyolitic

clasts.

Sample Easting Northing Au Ag As Ba Bi Ca Cu Fe Hg K La Mn Mo Pb Sb Sn Zn Se

ppb ppm ppm ppm ppm % ppm % ppm % ppm ppm ppm ppm ppm ppm ppm ppm

Amethyst-Rhodonite-Chalcedonic Quartz-Hematite

13CP001 356211 5242835 0 0 0 23 0 0.05 3 0.27 0 0.13 0 41 0 3 0 0 3

13CP002 356242 5243117 0 0 0 16 0 0.08 4 0.27 0 0.08 0 49 0 3 0 0 4

13CP003 356262 5242978 16 0 0 32 0 0.07 3 0.31 0 0.19 0 41 0 0 0 0 8 0

13CP004 356215 5242878 15 0 0 25 0 0.10 3 0.32 0 0.15 0 43 0 0 0 0 9 0

14NG008 356389 5243237 0 0.2 0 56 0 0.12 3 0.61 0 0.55 16 330 2 0 35 42 11 9

14NG009 356389 5243271 0 0.5 20 68 5 0.06 2 0.49 2 0.60 0 186 2 8 37 35 15 21

14NG010 356372 5243248 0 0.0 14 45 0 0.20 3 0.37 0 0.32 0 194 3 15 0 0 10 3

14NG011 356243 5243114 0 0.2 15 82 0 0.18 2 0.38 1 0.44 10 152 2 5 0 0 7 0

14NG016 356282 5243147 0 0.0 9 62 0 0.01 3 0.41 0 0.64 0 124 3 9 0 0 18 11

14NG033 356207 5242974 0 0.0 9 78 0 0.03 2 0.47 0 0.52 0 135 2 10 0 0 28 0

14NG038 356595 5243368 0 0.0 16 79 0 0.05 2 0.54 0 0.77 14 291 1 14 0 0 19 0

14NG039 356617 5243239 0 0.2 0 63 0 0.13 2 0.47 0 0.55 14 221 2 0 0 0 8 12

lithophysae

14NG005 354473 5238467 0 0.2 24 65 3 0.02 3 0.51 0 0.37 0 69 2 0 33 71 9 14

14NG040 356891 5243883 0 0.0 15 101 3 0.08 2 0.46 0 0.79 0 274 2 10 0 0 15 11

Specularite

14NG044 356204 5243000 13 0.0 0 11 0 0.42 3 0.54 0 0.07 0 300 1 17 0 0 3 3

Clay-Altered-Maroon-Breccia

14NG012 356390 5243238 0 0.0 0 69 0 0.08 2 0.67 0 0.68 12 222 3 0 0 24 9 13

14NG013 356391 5243240 0 0.0 20 70 0 0.08 2 0.45 0 0.66 0 191 2 12 0 0 10 5

14NG014 356391 5243229 0 0.2 0 64 3 0.17 1 1.10 0 0.70 19 362 2 20 0 0 22 10

14NG015 356391 5243229 0 0.0 19 78 0 0.12 2 0.80 0 0.76 11 243 2 14 0 0 6 3

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Figure 11. Amethyst-adularia-rhodonite-chalcedonic quartz (top left), lithophysae filled with amethyst-opaline silica-rhodonite (top right), specularite (bottom left), clay-pyrite-maroon breccia (bottom right)

The ground magnetometer survey has outlined significant east-west and north-south linear magmatic

lows that correspond with identified topographical linears and parallel observed structures (Figure 9).

Localized float from primary north-south linears returned anomalous Ag and pathfinder values

exhibiting the same vein mineralogies, alterations, and texture as previously described fault. In addition,

large boulders display intense illite alteration that persists preferentially along flow bands in rhyolite,

and often display relic lapilli and lithophysae. Intense illite also displays localized transitions into

predominantly clay-rich oxidized alteration. Lithophysae are filled with chalcedonic and opaline quartz,

adularia, rhodonite and hematite exhibiting cockade textures, druse lining, and banding. Similar intense

alteration containing lithophysae has been observed in float along the access road.

Conclusions for Area 1

Many of the textures, mineral assembles and alteration characteristics resemble Creede North Amethyst

vein system, intermediate-sulphidation deposit in Colorado, USA. The deposit is hosted in a Tertiary

aged volcanic and related sedimentary sequences; mineralization occupy structures related to rifting

and collapse of caldera (Foley et al., 1993). Mineralization is broadly based on two primary associations;

base-metal-silica (later cross-cutting phase) and Mn-Au (earlier phase) defining the complex episodic

formation of the deposit. Several types of wall-rock alteration have been observed in the North

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Amethyst vein system including; intense sericite-illite alteration at higher levels in the system, two

stages of potassium metasomatism of the wall rock at depth, and silicification and bleaching of the wall

rock adjacent to some vein structures at all levels (Foley et al., 1993).

The high level illite-sericite alteration is characteristically similar to field observations at Area 1. This may

suggest an upper level epithermal environment for the Klondyke project. In the Creede district this

alteration zone appears to overlie the zone of base-metal-rich mineralized rock and cuts across the zone

of Au-bearing mineralized rock, with Au and Mn-silicate-bearing assemblages occur at elevations above

and below the intense alteration zone, but the base-metal-rich later stages are only below (Foley et al.,

1993). Well-developed clay alteration zones cap vein structures throughout much of the central and

southern Creede district; it’s proposed that the caps formed primarily as a result of reaction of the wall

rock with acidic fluid that resulted from condensation of ore fluid that boiled at depth (Foley et al.,

1993). Most interesting parallels between the North Amethyst vein system and Area 1 are the

similarities in texture, alteration, and presence of distinct minerals such as amethyst, rhodonite, and

Mn-oxide. An intermediate-sulphidation system would also explain elevated Mn, Se and geochemical

pathfinders associated with high-sulphidation that appear present.

Area 2 -021618M and 021898M

Mineral licences 021618M and 021898M are situated in the central region of the Klondyke property.

Area 2 is readily accessible by the Gull Pond road and off-shooting ATV tracks. Presently the area has

been bedrock mapped resulting in 12 rock samples from outcrop (Figures 12 and 13). Assays have

returned up to 11 ppb Au, 9.3 g/t Ag and 822 ppm Cu from malachite stained, comb textured quartz

adularia veins. The area is characterized by dome and flow rhyolite, rheomorphic ignimbrite, and

hydrothermal breccia with dome andesite and mafic agglomerate to the northeast. A large resistive red

to maroon rhyolite dome is the most prominent feature in the area.

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Figure 12. Local geology and sample locations Area 2. Figure 13. Geology against Canstar Magnetics.

Silver values up to 0.4 ppm and strong anomalous pathfinders have returned from limited sampling of

extensive hydrothermal breccia which forms over 400 m along a prominent north-south linear on the

west side of the rhyolite dome; parallel and crosscutting faults are seen in breccia zone and also as ring

faults conforming around the north-end of rhyolite dome. Hydrothermal breccias locally have cross

cutting planes of residual quartz, likely result of alteration from volatile-rich fluids. Hydrothermal

breccias display zones of pervasive potassic alteration and silicification in association with minor zones

of pyrite, chlorite, clays, and locally malachite staining. Matrix material in the hydrothermal breccias

varies in composition and texture. Hydrothermal breccias are variably matrix and clast supported.

Matrix consists of zones or alternating bands of chalcedonic silica, jasper, adularia, clay, and fine-grained

black material. Fracture surfaces are oxidized with black manganese oxide. Highest Ag values of 0.4 ppm

from the large hydrothermal breccia zone were returned from a zone of black siliceous matrix (Figure

15). Hydrothermal breccias also occur locally in flow rhyolite and rheomorphic ignimbrite (Figure 14)

with increasing intensity towards larger buried structures.

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Figure 14. Rheomorphic ignimbrite. Figure 15. Black hydrothermal breccia.

Comb textured quartz-adularia veins are typically less than 3 cm wide spanning 80 m across rhyolite

dome in east west direction, returned up to 11 ppb Au, 9.3 g/t Ag and 822 ppm Cu. Alteration

accompanying veins consists of pervasive silicification and adularia-chlorite-pyrite in veins. In addition,

minor black bands occur in chalcedonic veinlets returning up to 1.3 ppm Ag. Rock samples in Area 2 have

returned strongly anomalous Ba, Cu, Mn, Pb, Sn, Zn, Se, and weakly anomalous Mo and Bi (Figure 15).

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Figure 16. Geochemical data. Area 2.

Regional geophysics display distinct linear magmatic lows and ring anomalies within rhyolite-andesite

volcanics in proximity of licence 021898M (Figure 13). These structures may indicate the presence of

sinters, phreatic breccias or larger diatremes common to dome complex environments. Exposure is less

in this region compared to alternate areas; however, structures evident in geophysics reflected in

topography.

Conclusions of Area 2

Alteration and mineralogy from Area 1 compared to Area 2 is distinctively different. This includes the

lack of minerals rhodonite and amethyst, and the lack of intense illite alteration. Area 2 is characterized

by the presence of pervasive potassic alteration and it strongly parallels to the Creede North Amethyst

deposit, including the occurrence of the “black quartz breccia”. At Creede, this is interpreted as a late

stage breccia, marking the transition between Mn-Au rich assemblages and assemblages of the base

metal-silica association. The black colour is a result of fine-grained sulphide and electrum suspended in

the micro-crystalline quartz matrix. In addition, at Creede, North Amethyst, alteration consisting of

pervasive potassic alteration and quartz-chlorite-hematite-adularia-pyrite vein assemblage is associated

with latter base metal phase at depth. Strong Mn values were encountered as well as alternate

geochemical pathfinders. Area 2 is located in lower elevation relative to Area 1 and based on parallels

with Creede district may indicate a deeper view into the system.

Area 3 -021617M, 022153M, 022154M and 021723M

Area 3 makes up the largest area of the Klondyke property and contains half of all the present

exposures. The southern extent of the property defining Area 3 is made up of mineral licences

021617M, 022153M, 022154M and 021723M. The area is readily accessible by the Gull Pond road with

various ATV tracks criss-crossing the property. Presently the area has been bedrock mapped and

prospected resulting in 48 rock samples from outcrop and 4 bulk sample soils.

Sample Easting Northing Au Ag As Ba Bi Cu Hg K La Mn Mo Pb Sb Sn V Zn Se

ppb ppm ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm ppm ppm

Hydrothermal Breccia

14NG018 356202 5240249 0 0.4 0 107 0 20 0 0.49 0 96 2 9 0 44 24 19 23

14NG029 356243 5240275 0 0.3 0 78 0 5 1 0.53 0 94 0 6 0 0 13 14 8

14NG031 356290 5240286 0 0.3 0 100 0 5 0 0.65 0 165 0 8 0 0 17 42 0

14NG032 356229 5240223 0 0.4 8 50 0 5 0 0.28 0 134 2 12 0 0 16 29 6

13BB-014 356089 5240191 0 0 0 41 0 33 0 0.13 0 88 0 105 0 0 6 53 n/a

13BB-015 356056 5240134 0 0 0 25 0 10 0 0.11 0 61 0 3 0 0 6 38 n/a

13BB-016 356368 5239813 0 0 0 34 0 8 0 0.13 0 259 0 5 0 0 13 103 n/a

Quartz-Adularia-Chlorite-Pyrite

13BB-003 356234 5240219 0 1.3 0 39 0 104 0 0.16 0 72 0 6 0 0 6 31 n/a

14NG017 356234 5240215 11 9.3 0 201 2 822 0 0.85 14 41 2 16 0 0 31 3 0

14NG030 356246 5240208 0 1.3 0 191 3 19 0 0.90 14 69 3 6 0 51 29 3 26

Rheomorphic Ignimbrite

13BB-029 356223 5240202 0 0.3 0 26 0 34 0 0.11 0 99 0 55 0 0 7 39 n/a

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The central region of Area 3 makes up the highest elevations of the property characterized by 7 different

distinct rhyolite domes in contact with the surrounding rhyolite flows and ignimbrites. This area is

interpreted as a well-preserved north-south bimodal rift environment with centralized north-south

trending rhyolite dome complex and pyroclastic units. To the east, west and north extents of the area

intermediate to mafic bedrock is dominate and characterized by the presence of dome features. In the

east and west direction, across strike and beyond the mafic-intermediate volcanic units are surrounding

basin fill marine and volcanoclastic cover sequences (Figure 6 and 7). From mapping and geophysical

correlations, sediments along the eastern margin of the claims appear to cover deeper rift-related mafic

dykes and structures. The region is characterized by numerous high-angle normal faults and east-west

trending horst and graben structures; as well as, large prominent north-south linears. High-angle normal

faults occupy lithological contacts and alternate zones of weakness dominantly around dome structures,

locally juxtaposing lithologies as down drop blocks. Wide spread, high-angle normal and transform faults

including east-west trending horsts and grabens are likely to form from subsequent collapse and latter

reactivation by trans-extensional stress following the initial island arc formation. Exploration work

conducted in 2013-2014 has indicated a strong potential for epithermal and Kuroko style VMS

mineralization.

Lookout Pond occurrence is situated within Area 3. Country Pound showing is located south of the

property within mineral licence belonging to local prospector Jason White with majority of work done

while Rubicon Ltd. held the ground. Occurrences are interpreted as high-level low-sulphidation

epithermal hematite-quartz breccia zones, similar to the Berg’s showing. These showing have

considerable widths greater than 20m and laterally traceable in outcrop for ~200 m. Recent

reinvestigation of these occurrence including review of previous assessment, geophysics coupled with

current mapping; has revealed that several exposures of the Country Pond veins are situated within the

Klondyke property. The Lookout Pond occurrence is near the contact between rhyolitic and mafic

lithologies and the unit represented as an obvious linear magmatic low in the geophysics which adjoins

the Lookout Pond showing to alternate hematite breccia zone occurrences in the south for a greater

than one kilometer strike length and total length of 7.5 km.

Figure 17. Transition from ferruginous chert “ochre” to Mn-rich “umber” (left to right).

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Previously undocumented at the Lookout Pond showing, the hematite-quartz breccia displays locally

pervasive potassic alteration and is underpinned by yellow-orange oxidization and invading black Mn-

rich mineral (Figure 16). Values from this black material yielded up to 0.7 g/t Ag, >2200 ppm As, >1000

ppm Ba, 32.5 ppm Be, 46 ppm Bi, 23 ppm Cd, 48 ppm Ce, 1011 ppm Cu, >1.1% K, 47 ppm La, >22000 Mn,

46 ppm Mo, 118 ppm Pb, >440 ppm Sb, 54 ppm Sn, 162 ppm V, 16ppm W, 48 ppm Se, 18 ppm U, and

362 ppm Zn. Ferruginous chert unit is elevated in Ag and base-metal (Figure 18). Due to lack of

hydrothermal alteration and unusual texture and geochemistry a different interpretation was inspired.

Hematite-quartz breccia may in fact represent a ferruginous chert exhalite unit and upper ‘ochre’ of a

shallow Kuroko-style VMS system characteristic of bimodal rift environments. Black oxidized Mn-rich

material may indicate transition in “umber” zone. The unit is situated near the rhyolite-basalt contact, a

favourable site for this style of mineralization (Figure 17). Furthermore, geochemical results from

Rubicon channel sampling across Country Pond showings support a exhalite origin indicated by strongly

elevated rare earth elements, U, and Th. Anomalous elements include (peak value); Ag (0.5ppm), As

(17.5ppm), Bi (1.26 ppm), Cu (26.1 ppm), Ga (15.25 ppm), La (31.6 ppm), Li (30.3ppm), Mn (443 ppm),

Mo (6.73 ppm), Nb (13.6 ppm), Pb (165 ppm), Rb (186.5 ppm), Sb (2.44 ppm), Ta (1.13ppm), Th (11.3

ppm), U (3.5 ppm).

Figure 18: Geochemical data from the exhalite unit. Area 3.

Sample Easting Northing Ag As Ba Be Bi Cd Ce Cu Fe K La Mn Mo Na Pb Sb Sn Sr V W Zn Se U

ppm ppm ppm ppm ppm ppm ppm ppm % % ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm ppm ppm

Ferruginous Chert13BB-001 355287 5237936 0 727 44 16.1 0 2.2 36 636 7.25 0.03 22 966 0 0.21 24 53 0 5 41 0 51

13BB-002 355325 5237942 0 0 22 0 0 0 27 53 0.52 0.12 0 103 0 0.19 2 0 0 2 4 0 12

14NG023 355271 5237952 0.5 132 110 1.4 2 1.5 20 16 0.75 0.44 0 5155 3 0.30 6 0 0 28 26 0 9 16 0

14NG022 355286 5237939 0.7 >2200 >1000 32.5 46 23.4 48 1011 3.41 >1.10 47 >22000 46 0.26 118 >440 54 >220 162 16 362 48 18

13WB001 353215 5245190 0 0 72 0 0 0.6 22 65 1.90 0.06 0 381 5 0.29 91 0 0 6 27 0 95

14NG024 355290 5237936 0.0 50 118 0.7 2 0.5 11 13 0.91 0.41 0 1807 3 0.19 11 0 0 8 17 0 3 2 0

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Figure 19. Bedrock map of exhalite exposure and sample locations.

Hydrothermal alteration is evident across Area 3 as wide spread pervasive alteration zones in wall rock

or as structurally bounded zones. High angle faults are commonly observed in these zones. Four types of

characteristic alteration assemblages are present in Area 3; pervasive quartz-adularia-chlorite-pyrite,

intense illite-quartz-sericite-pyrite, adularia-quartz-epidote and locally pyrophyllite. The pervasive

quartz-adularia-chlorite-pyrite alteration is well preserved due to high silica content; associated with

prominent north-south trending linears in rhyolites and ignimbrites. Illite-quartz-sericite-chlorite-pyrite

is observed as intense pale green wall rock alteration persisting along flow fabric, liberating lithophysae

and lapilli within primarily illite matrix (similar to Area 1); generally observed in better preserved minor

parallel faults typically in east-west trending direction in rhyolitic and ignimbritic units. Advanced argillic,

pyrophyllite is present in two north-south high-angle faults; nearby structures and veins are

characterized by intense illite alteration that locally displays lateral compositional variations towards

pyrophyllite area. Anomalous values are associated with alterations consisting of pervasive quartz-

adularia-chlorite-pyrite, intense illite-quartz-sericite-pyrite and locally pyrophyllite. The fourth type of

alteration consists of adularia-quartz-epidote and most prevalent in mafic-intermediate volcanic rocks

and locally in ignimbrite. Alteration appears to be related to later Devonian veins and consequently of

little focus.

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Due to recessive weathering, topography reflects presence underlying linear structures often displaying

wall rock alteration and silicification in nearby associated outcrops. This is observed in association with 3

different notable linears. Alteration is over 500 m in north-south structures, primarily in dome and flow

rhyolites and to a lesser extent ignimbritic unit. Typically north-south structures display pervasive zones

of silicification in combination with potassic alteration, and minor chlorite and pyrite. Banded

chalcedonic quartz exhibits episodic growth and are typically interlayered with adularia, and/or

hematite, and/or clays. Sampling across alteration and from vein material has returned anomalous Ag,

As, Pb, Mo and strongly anomalous Ba, Cu, Mn, Zn and Sn.

The ignimbritic units in Area 3 ranges from: porphyritic plag-ferric tuffacous ignimbrite (Figure 20);

matrix supported tuffacous ignimbrite with angular clasts of rhyolite up to 20 cm locally displaying

bombs and air fall bedding; and coarse more matrix supported tuffacous ignimbrite with smaller

subangular clasts of rhyolite. The ignimbrite unit generally shows epidotized matrix and displays varying

degrees of hydrothermal alteration. The ignimbritic units are favourable hosts for disseminated ore due

to greater permeability of unit. This exhibited at the Santana and Road Cut low-sulphidation showings

returning greater than 30 ppm Au and 600 ppm Ag. These showings are hosted within stock work

chalcedony and hematite veins and as sulphides with disseminated pyrite from epidotized tuffacous

ignimbrite. High-sulphidation deposits forming adjacent to rhyolite domes often extend laterally in units

with greater permeability such as ignimbrites. In addition, in such volcanic environments barren and

mineralized lithocaps associated with high-sulphidation fluids display latter crosscutting by intermediate

deposits as fluids become more neutral. This is illustrated at the Masupa Ria deposit in Central

Kalimantan, Indonesia, where intermediate-sulphidation veins cut an extensive and largely barren

lithocap. In 2003 Hedenquist visited the Rubicon properties including the Santana showing stating that

“Santana is typical of intermediate sulphidation epithermal veins that form in a shallow intrusive

environment, potentially related to underlying porphyry deposits that form in an arc environment”

(Hedenquist, 2003).

Figure 22 represents a 100 m X 150 m zone of pervasive silicification and hematization present in

porphyritic ignimbrite. Veins show diffuse boundaries with hematite cores; more intense silicification is

characterized by clay replacement of plagioclase phenocrysts. Two bulk samples were taken across 1 m

intervals at different ends of the exposure but failed in returning any anomalous Au or Ag. However,

they yielded strongly anomalous As, Ba, Mn, Sn moderate Pb, Cu, Zn, and weakly anomalous Mo and Bi

(Figure 23). Thus, it is suggested that alteration is likely to be controlled by fluid migration along north-

south faults that separate the porphyritic ignimbrite and red flow rhyolite. Nearby float sample display

banded veins and vein breccias consisting of amethyst, adularia, crypto-crystalline quartz and minor

rhodonite with pervasive vein boundaries within tuffacous ignimbrite (Figure 21). Sample is likely local,

based on similarities of host rock with nearby ignimbrites.

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Figure 20. Porphyritic ignimbrite with veins Figure 21. Epithermal veining with amethyst and adularia. showing diffuse boundaries

Figure 22. Map of pervasively silicified and clay altered zones in Area 3.

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Figure 23. Geochemical results from Area 3.

Figure 24. Sample of altered ignimbrite and Figure 25. Exposure of air-fall ingimbrite with pyritized Mn-oxide from pyritized horizon. horizon near top right corner .

Figure 26. Cyrpto-crystaline quartz and hematite in Figure 27. Banding of opaline silica and chalcedonic tuffacous ignimbrite. Quartz.

Sample Easting Northing As Ba Be Bi Cu K Mn Mo Pb Sn V Zn

ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm

Pervasive Silicification Minor Clay Alteration

14NG020 354613 5237797 50 141 0.9 3 3 1.01 118 3 10 0 7 13

14NG021 354630 5237826 21 122 0.7 0 2 0.92 93 3 10 63 3 9

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Figure 28 displays the outcrop exposures of ignimbrite units and their alterations. Samples 14NG005 to

14NG007 were taken across the ignimbrite exposure in 1 m intervals. This sample location exhibited

similarities to the mineralization at Santana occurrence. Banded chalcedonic quartz, opaline silica,

hematite, and local black bands make up stockwork and north-south trending veins (Figure 26 and 27).

Values returned 0.2-0.3 ppm Ag, 31 ppm As, 65 ppm Ba, 102 ppm Mn, 16 ppm Pb, 33 Sb, 84 Sn, 14 ppm

Se, and 16 ppm Zn (Figure 29). The other exposure of the ignimbrite unit displays air fall layering (Figure

24) with an extensively weathered pyritic horizon with absent veining. Mn-oxide locally forms selvages

in fractures (Figure 24); sample 14NG041 from the horizon yielded 0.2 ppm Ag, 1215 ppm Mn, and

anomalous As, Ba, Pb, Zn and Se values.

Figure 28. Local map of the ignimbritic units and sample locations.

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Figure 29. Geochemical results from ignimbrite hosted stockwork veining and alteration.

Several exposures within Area 3 display intense illite alteration with liberated lithophysae containing

banded chalcedonic silica, andularia, and hematite showing cockade textures, druse lining, and episodic

growth (Figure 30 and 31). Sampling of the lithophysae material displaying epithermal textures have

returned anomalous Ag, As, Ba, Mn, Pb, Sb, Sn, Zn, and Se (Figure 33). Exposures show similarities to

alteration exhibited in Area 1, but lack distinctive minerals amethyst and rhodonite. Alteration zones are

localized in adjacent rhyolite domes and extend for several meters in rhyolite flows and ignimbrites.

Alteration is generally associated with faulted contacts, structures along rhyolite domes, and within flow

rhyolites. Flow rhyolites appear to be favourable for this type of alteration (Figure 32 of one site).

Sample Easting Northing Au Ag As Ba Bi Cu K Mn Mo Pb Sb Sn Zn Se

ppb ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm

Ignimbrite-hosted

14NG002 354312 5238072 0 0.0 0 153 0 2 0.49 146 1 6 41 81 19 17

14NG005 354473 5238467 0 0.2 24 65 3 3 0.37 69 2 0 33 71 9 14

14NG006 354459 5238443 0 0.3 26 56 3 3 0.44 102 3 7 21 53 16 8

14NG007 354453 5238414 0 0.2 31 52 4 1 0.40 72 2 16 0 84 12 0

14NG028 354892 5237305 0 0.0 12 61 0 3 0.50 84 2 6 0 0 5 0

14NG026 354895 5237306 0 0.0 0 208 0 14 0.74 85 3 13 0 22 0 0

14NG028 354892 5237305 0 0.0 12 61 0 3 0.50 84 2 6 0 0 5 0

14NG041 354736 5238579 0 0.2 8 52 0 1 0.63 1215 2 10 0 0 20 6

13BB-005354940 5238697 0 0 0 15 0 167 0.16 49 0 6 0 0 8 n/a

13BB-006355167 5238489 0 0 0 14 0 4 0.15 38 0 0 0 0 7 n/a

13BB-007354940 5238697 0 0 0 13 0 8 0.12 20 0 0 0 0 4 n/a

13BB-013354722 5238006 7 0 0 17 0 4 0.29 47 0 4 0 0 10 n/a

13BB-024354498 5238664 0 0 0 41 0 0 0.22 26 0 3 0 0 6 n/a

13BB-026354530 5238622 0 0 0 19 0 4 0.07 24 0 3 0 0 0 n/a

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Figure 30. Lithophysae containing banded vein material within illite matrix. Area 3.

Figure 31. Intense illite alteration in outcrop. Area 3.

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Figure 32. One exposure of intense illite alteration and silicification adjacent to rhyolite dome.

Figure 33. Geochemical results from lithophysae material.

Sample Easting Northing Ag As Ba Bi Cu K La Mn Mo Pb Sb Sn V Zn Se

ppm ppm ppm ppm ppm % ppm ppm ppm ppm ppm ppm ppm ppm ppm

Lithophysae

14NG001 354382 5238019 0.2 40 96 4 4 0.59 0 195 4 0 25 69 4 16 0

14NG003 354304 5237990 0.2 45 96 3 3 0.55 12 213 2 5 41 67 2 13 20

14NG004 354373 5238041 0.0 7 104 5 3 0.54 0 148 2 11 34 0 1 8 13

14NG045 356134 5239314 0.0 22 23 0 1 0.47 12 79 1 10 0 0 2 14 0

14NG042 355053 5238462 0.2 23 99 0 2 0.67 0 246 3 9 0 0 16 22 0

14NG043 355053 5238462 0.0 0 77 0 2 0.68 14 595 2 12 0 0 2 22 0

14NG045 356134 5239314 0.0 22 23 0 1 0.47 12 79 1 10 0 0 2 14 0

13BB-012 355167 5238489 0 7 20 0 3 0.18 0 186 0 5 0 0 0 9 n/a

13BB-017 354700 5238041 0 0 23 0 0 0.24 0 75 0 4 6 0 0 13 n/a

13BB-018 354667 5237966 0 0 30 0 5 0.18 0 39 0 3 0 0 0 7 n/a

13BB-019 354809 5237615 0 0 32 0 3 0.19 0 61 0 3 0 0 0 10 n/a

13BB-028 354848 5237961 0 0 20 0 5 0.12 0 72 0 3 0 0 0 9 n/a

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Pyrophyllite occurs in two north-south faults on either side of a large east-west linear characterized by

altered coarse ignimbrite to the south of the linear and dome rhyolite to the north (Figure 35).

Pyrophyllite is locally oxidized to a bright orange colour and displays black variations. Samples taken

from this material yielded up to 0.3 ppm Ag, 74 ppm As, 167 ppm Cu, 129 ppm Mn, 10 ppm Pb, 33 ppm

Se, and 27ppm Zn. This area is characterised by a circular magmatic low in the geophysics. Nearby faults

in sub-parallel direction display wall rock silicification and minor brecciation with intense illite, minor

pyrite, adularia, and chlorite alteration in the center of the structure. Trenching has uncovered one such

structure located approximately 200 m north of the pyrophyllite. This structure hosts a 0.5 m wide

quartz vein and other smaller parallel veins with white ”bull” appearance. These veins display lateral

variation towards the pyrophyllite material by introduction of minor hematite and chalcedonic bands.

Adjacent faults to the north, at lower elevations display vertical changes with intensified brecciation and

increasing illite-quartz-chlorite-pyrite-adularia alteration. The above-mentioned brecciated zones display

chalcedonic crypto-crystalline silica with layers of adularia and minor hematite. Locally, cockade

textures, druse-lined cavities, and dark bands can also be observed within the matrix of these breccias.

The presence of advanced argillic alteration with surrounding argillic alteration may represent the

neutralization of fluids from a high-sulphidation source. There is a co-genetic relationship with time-

space affinity between intermediate- and high-sulphidation mineralization. One example for this

relationship is between the rhodochrosite-bearing intermediate-sulphidation veins at Chiufen-

Wutanshan, Taiwan, which produced 29 t Au and the larger high-sulphidation deposit of Chinkuashih,

which occurs 1 km west within the same overall alteration system and age (Hedenquist, 2003).

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Figure 34. North, Area 3 pyrophyllite occurrences.

Figure 35. Geochemical results from pyrophyllite material.

Sample Easting Northing Ag Al As Ba Cu K La Mn Pb Zn Se ppm % ppm ppm ppm % ppm ppm ppm ppm ppm

Pyrophyllite

14NG036 354925 5238776 0.3 >5.50 0 36 1 0.89 35 129 10 27 33

13BB-011354924 5238774 0 0.51 74 13 0 0.28 13 28 0 11 n/a

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Conclusions and Recommendations

Conclusions

Geology at the Klondyke Au-Ag base metal property is coherent with a bimodal rhyolite and basalt-

andesite rift environment characterized by a dome complex. The property cut by wide spread high-angle

normal faults including east-west trending horsts and grabens structures that are likely to form from the

subsequent collapse and latter reactivation by trans-extensional stress following the initial island arc

formation. Locally, high-angle normal faults occupy lithological contacts and alternate zones of

weakness, dominantly around dome structures, locally juxtaposing lithologies as down drop blocks. The

author has identified the presence of significant epithermal-related alteration and a prospective exhalite

unit that can be traced in geophysics for a 7.5 km strike length during the grassroots exploration work in

fall 2013 to fall 2014. Through careful deliberation and collaboration with Memorial University

professor, Dr. Graham Layne, the first year preliminary program was successful in generating a

comprehensive understanding of mineralization and lithological relationships present on the Klondyke

property.

The exposure of ferruginous chert exhalite and may represent the upper “ochre” of a shallow Kuroko-

style VMS system, characteristic of bimodal rift environments. The oxidized black Mn-rich material may

indicate the transition into “umber” zone and the possibly an underlying fertile VMS deposit. The unit is

situated near the rhyolite-basalt contact, a favourable site for shallow Au-rich VMS mineralization. From

geophysical interpretation the unit coincides with a laterally extensive magnetic low, which also

connects the Lookout Pond showing to the east vein of the Country Pond occurrences, 1 km to the

south. Furthermore, geochemical results from Rubicon channel sampling across Country Pond showings

support an exhalite origin indicated by strongly elevated rare earth elements, U, and Th. Further work is

required to determine the timing of mineralization and the relation to more prominent epithermal

mineralization.

Epithermal alteration encountered in Area 3 shows strong similarities to Area 1 and Area 2, specifically

intense illite alteration and pervasive potassic alteration, respectively. Silicification is the most wide

spread alteration type. Area 3 locally displays advanced argillic alteration, pyrophyllite. Alteration is

commonly associated with high-angle normal faults in both north-south and east-west trending

directions. Definitive amethyst and rhodonite has only been encountered in Area 1 and from float from

Area 3. In relation to nearby epithermal showings, low-sulphidation epithermal veins and breccias

typically show sharp vein-wallrock contacts with little to no wallrock alteration. This sharp transition is

similar to Bergs hematite-quartz breccia and Steep Nap vein. The epithermal alteration encountered

through the Klondyke project is more intense, pervasive, and compositionally different in comparison to

alternate epithermal showings on the Avalon; however, vein textures displaying banded crypto-

crystalline and opaline silica with adularia, hematite, are distinctively similar to vein material seen at

Grog Pond, Santana, and in the Bergs and Steep Nap areas. Locally, minute bands of black “ganguro” like

material have been observed from outcrops in all three areas. In the approximately 11 km long claim

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block, intense and pervasive alteration is commonly observed in outcrop and revealed through

trenching; alteration is common through the property, but characteristically distinct to the area.

During this first year of exploration of the Klondyke project, preliminary interpretations of the timing

and style of mineralization were made. Geochemical results of epithermal related material indicate

typical of both low- and high-sulphidation by the presence of pathfinders and those associated with

intermediate-sulphidation. Vein and breccia mineralogy coupled with associated alterations is analogous

to the definitive alteration characteristics and mineral assemblages observed in the Creede district of

Colorado. Following suite, on the property the vein mineralogy and alteration observed in relation to

Creede, North Amethyst vein would suggest: a high-level epithermal environment for Area 1 (illite); a

deeper transitioning environment in Area 2 (potassic). Area 3 displays alteration and features

characteristic of high (illite) and deeper (potassic) levels. The presence of anomalous pyrophyllite

material in Area 3 is uncharacteristic of the Creede, but a common relationship observed between

intermediate- and high-sulphidation deposits. Generally due to rapid ascent up a large dilate structure

or diatreme-like structure, deeply sourced, highly oxidized, and acidic high-sulphidation fluid reacts with

wallrock producing advanced argillic assemblages, and subsequently equilibrate, producing a more

neutral reduced fluid. High-sulphidation fluids leave gossanous zones of residual quartz and clays that

are prone to weathering; whereas smaller structures are more easily preserved. This would also infer

that alteration and mineral characteristics are more definitive of degree of fluid-rock interaction and

reactivity of fluid. This would explain the presence of illite in minor parallel structures adjacent to larger

pervasive potassic and silicified zones associated with large eroded and buried structural linears. Larger

dilate structures offer faster fluid migration causing higher reactivity, greater alteration and subsequent

erosion. Smaller structures limit fluid migration, which increases the fluid-rock interaction producing less

reactive, reduced fluid. This may explain the erosional patterns and the presence of wide spread fault-

associated illite alteration in outcrop. Extensive linear and circular magnetic lows observed in the

Canstar airborne geophysics underlay rhyolitic and pyroclastic units; In addition, linear structures can be

correlated to topographical linears in satellite imagery generally with sub-parallel minor faults seen in

outcrop. These structures are of high interest; and may represent major dilate structures and high-

sulphidation centers.

The Klondyke Au-Ag Base Metal Property displays favourable environment for epithermal and VMS

mineralization within a fertile belt. Initial exploration has been successful in identifying a zone of

potential VMS mineralization and in delineating areas, which show textures, mineral assemblages, and

alteration characteristic of epithermal mineralization, and have returned anomalous Au-Ag and

pathfinders. This includes potential disseminated ores in tuffacous ignimbritic units and lithophysae

hosted vein material in favourable flow rhyolite.

Recommendations

Future work is recommended. From the 2013-2014 season bedrock mapping, rock chip sampling, and

ground survey magnetometer have been effective methods in delineating possible fault zones and areas

of interest. Several bulk soil sampling methods were applied, however, they were shown to be less

effective and more costly. Further magnetometer work should be done in areas yielding anomalous Au-

Ag and pathfinders to delineate primary fault zones. Due to high magnetic susceptibility of rhyolites and

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intense hydrothermal brecciation and alteration observed in faults ground magnetometer has proven to

be extremely effective in delineating potential mineralization. In addition, the unit can be signed out at

no cost from the Newfoundland Natural Resources Branch, making it a cost-effective tool. Following

magnetic surveys identified structures should be subsequently trenched. A one to two week trenching

program using a small to medium sized excavator would be efficient in following up magnetic anomalies.

Areas yielding anomalous Au-Ag and pathfinders are highest priority targets. Due to recessive

weathering and shallow overburden, associated wall rock alteration structures are readily identifiable in

the field; therefore, it is easy to identify these for magnetic surveys and for trenching. A combined well-

targeted ground magnetometer survey followed by subsequent trenching would prove effective in

delineating lateral extents and in determining mineralization potential of larger structures. Magnetics

and trench should also be carried out across large linear lows and ring anomalies evident in airborne

geophysics. The superior accessibility to the project would make such a program extremely cost-

effective in determining potential drill targets. Prospecting also should be done in the claim margins in

the north and southeast to explore epithermal and VMS potential, respectively. Geophysical anomalies

resembling the pronounced linear magnetic low associated with exhalite unit are shown paralleling the

exhalite unit to the east. This area is underlain by mafic and sedimentary lithologies analogous to a distal

rift setting and may hold significant VMS potential.

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References

Alberta top Canadian jurisdiction in annual global mining survey, Quebec sinking fast. (2013, March 3).

Retrieved October 7, 2014.

Feiss, P. G., Vance, R. K., & Wesolowski, D. J. (1993). Volcanic rock-hosted gold and base-metal

mineralization, associated with Neoproterozoic-Early Paleozoic, back-arc extension in the Carolina

terrane, southern Appalachian Piedmont. Geology, 21(5), 439-442.

Foley, N. K., & Ayuso, R. A. (2012). Gold deposits of the Carolina Slate Belt, Southeastern United States:

Age and origin of the major gold producers. USGS, Open-File Report 2012–1179.

Myrow, Paul M. "Neoproterozoic rocks of the Newfoundland Avalon zone." Precambrian Research 73.1

(1995): 123-136.

O’Brien, S. J., Dunning, G. R., Dube, B., O’Driscoll, C. F., Sparkes, B., Israel, S., & Ketchum, J. (2001). New

insights into the Neoproterozoic geology of the central Avalon Peninsula (parts of NTS map areas 1N/6,

1N/7 and 1N/3), eastern Newfoundland. Current Research–Newfoundland and Labrador Department of

Natural Resources, Geological Survey, Report, 01-1.

O'Brien, S. J., and C. F. O'Driscoll. "Preliminary investigation of Neoproterozoic (Avalonian) rocks,

northeastern Holyrood (NTS IN/6) map area: notes on geology, mineralization and mineral exploration

potentiaL." Current Research. Newfoundland Department of Mines and Energy, Geological Survey,

Report (1996): 97-1.

O'Brien, S. J., Dubé, B., & O'Driscoll, C. F. (1999). High-sulphidation, epithermal-style hydrothermal

systems in late Neoproterozoic Avalonian rocks on the Burin Peninsula, Newfoundland; implications for

gold exploration. Current Research–Newfoundland and Labrador Department of Natural Resources,

Geological Survey, Report, 99-1.

O’Brien, S. J., Dunning, G. R., Dube, B., O’Driscoll, C. F., Sparkes, B., Israel, S., & Ketchum, J. (2001). New

insights into the Neoproterozoic geology of the central Avalon Peninsula (parts of NTS map areas 1N/6,

1N/7 and 1N/3), eastern Newfoundland. Current Research–Newfoundland and Labrador Department of

Natural Resources, Geological Survey, Report, 01-1.

Rowe, R. R., Zhou, X.,2007, Models and Exploration Methods for Major Gold Deposit Types.

Shimizu, T., 2014, Reinterpretation of Quartz Textures in Terms of Hydrothermal Fluid Evolution at the

Koryu Au-Ag Deposit, Japan. Economic Geology 109.7, p. 2051-2065.

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46

Sillitoe, R.H., Hedenquist, J.W., 2003, Linkages between volcanotectonic settings, ore-fluid compositions,

and epithermal precious metal deposits. Special Publication-Society of Economic Geologists 10, p. 315-

343.

Sparkes, G. (2012). NEW DEVELOPMENTS CONCERNING EPITHERMAL ALTERATION AND RELATED

MINERALIZATION ALONG THE WESTERN MARGIN OF THE AVALON ZONE, NEWFOUNDLAND. Current

Research (2012) Newfoundland and Labrador Department of Natural Resources, Geological Survey,

Report 12-1, 103-120.

White, N.C., Hedenquist, J.W., 1995, Epithermal gold deposits: styles, characteristics and exploration.

SEG newsletter, 23.1, p. 9-13.

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Appendix 1

List of Sample Description

2014 Rock Samples

Sample ID Easting Northing Year Sample Description 14NG001 354382 5238019 2014 Maroon coloured dome rhyolite with flow texture,

locally illite, sericite altered, minor clay alteration and brecciation along fractures. Alteration pervasive, some clasts are silicified.

14NG002 354312 5238072 2014 Ignimbrite and porphyritic rhyolite, sample is cross-cut by quartz veins with local chalcedonic veinlets. Clasts are slightly silicified with slight pale green illite alteration.

14NG003 354304 5237990 2014 Sample consists of chalcedonic quartz, hematite, and adularia as veins. Bedding is locally vein filled. Illite, chlorite, and clay alteration is dominant. Alteration is oxidized with black mineral occurring along fractured surfaces with clay and chl., and pyrite.

14NG004 354373 5238041 2014 Maroon coloured dome rhyolite with flow texture, locally illite, sericite altered, minor clay alteration and brecciation along fractures. Alteration pervasive, some clasts are silicified.

14NG005 354473 5238467 2014 Sheared ignimbrite unit showing varying epidotization, silicification, and illite, sericite alteration.

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Veins are up to 4 cm chalcedonic silica, hematite, and lesser adularia. Along veinlets, material is locally oxidized. Outcrop is locally brecciated.

14NG006 354459 5238443 2014 Ignimbrite unit. Chalcedonic quartz veins with minor hematite, adularia. Locally silicified, minor epidote, illite?

14NG007 354453 5238414 2014 Ignimbrite unit. Sample is silicified, matrix has minor chlorite and illite and epidote? Some plagioclase phenocrysts are apparent, locally hematite veined. Some hematite is rimmed by minor pyrite and specularite. Minor adularia in veinlets.

14NG008 356389 5243237 2014 Float sample. Boulder contains hematite, quartz, and rhodonite within red rhyolite. Fresh sulphide in vein hematite, chalcedony, and minor chlorite. Alteration includes radiating epidote, rhodonite, illite, clay. Vein minerals: Chalcedony, hematite, adularia, local oxidation.

14NG009 356389 5243271 2014 Chalcedonic silica, amethysts, rhodonite, adularia from veins and matrix breccias. Alteration is pervasive. Minor oxidation along fractures. Host is red, leached and locally silicified.

14NG010 356372 5243248 2014 Hydrothermal breccia consisting chalcedonic silica gel, hematite, and lesser Adularia. Clasts are leached and silicified, clay altered and +- rhodonite. Dark variations in matrix often with adularia.

14NG011 356243 5243114 2014 Rhyolite leached to white pale green hue. Hematite, chalcedonic quartz, amethysts, and adularia, and rhodonite, minor chlorite, and illite. Some black oxide mineral along fractures.

14NG012 356390 5243238 2014 Alteration in boulder. Rhyolite leached and altered clasts. Hematite, amethyst vein breccia. Minor adularia, illite, and weathered rhodonite +/- clay.

14NG013 356391 5243240 2014 Silica breccia. Hematite, rhodonite, minor adularia, clasts of rhyolite. Some clay and rhodonite.

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14NG014 356391 5243229 2014 Hematite to chalcedonic quartz, amethyst breccia. Clasts are silicified with minor adularia, clay. Local black colouration present in hematite. Oxidized fractures.

14NG015 356391 5243229 2014 Hydrothermal breccia. Hematite, amethysts, quartz, adularia. Clasts are leached to white-pin colour, K-spar altered, and rhodonite is present. Oxidized fractures.

14NG016 356282 5243147 2014 Rhyolite dome with amethyst vein, sericite and illite along fractures, veins, and dome planes. Veins consist of chalcedonic silica, amethysts, and minor adularia.

14NG017 356234 5240215 2014 Slightly flow banded rhyolite. Malachite, adularia, minor oxidization with chlorite. Amethyst is present.

14NG018 356202 5240249 2014 Rhyolite breccia with tuffaceous rhyolite. Flow banded rhyolite is hematitic, silicified. Some chalcedonic black veins along flow texture. Minor clay alteration along fractures.

14NG019 354965 5237310 2014 Pale green to white ignimbrite. Rhodonite along fractures, minor clay alteration. Veins are chalcedonic with amethyst, lesser hematite, and very minor adularia.

14NG020 354613 5237797 2014 Plagioclase-phyrric crystal tuff/rhyolite. Silicified fractures. Clay altered, rhodonite, and pale green illite? Epidote? Pervasive maroon black colouration. Thick clay, hematite in fractures.

14NG021 354630 5237826 2014 Pale green crystal tuff, clay altered, plag phenocrysts, locally silicified with hematite brecciation.

14NG022 355286 5237939 2014 Black mineral with slight oxidation, malachite contains corrosive leached quartz clasts. Quartz hematite breccia.

14NG023 355271 5237952 2014 Ferruginous chert, hematite breccia. Some quartz fragments with adularia.

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Hematite matrix varies red maroon to black.

14NG024 355290 5237936 2014 Hematite-quartz breccia. Same as previous.

14NG025 355000 5237664 2014 Silicified outcrop with illite, sericite alteration. Sample of quartz veins with hematite, and clay. Host is grey to maroon, silicified ignimbrite.

14NG026 354895 5237306 2014 Silicified ignimbrite? K-spar altered material with silica gel and minor hematite, and adularia.

14NG027 354849 5237385 2014 K-spar, silicified, chlorite, lesser illite alteration in ignimbrite. Oxidation and black mineral along fractures associated with chlorite. Disseminated sulphides with minor clay and illite. Black mineral in veins and silicified material.

14NG028 354892 5237305 2014 Ignimbrite with explosive texture. Locally sheared and illite altered. Pale white green altered. Chalcedonic silica veins with minor hematite.

14NG029 356243 5240275 2014 Hydrothermal breccia, angular clasts, of flow banded rhyolite suspended in hematitic, qz., chalcedonic silica. Fractures filled with a black mineral. Silica varies from translucent to grey-red-maroon.

14NG030 356246 5240208 2014 Silicified rhyolite on the E side of the dome. Andularia, quartz, chalcedonic quartz, and maroon qz.-hematite. Veins have chlorite, minor clay and oxidized black mineral? . K-spar, chlorite, -illite. Vein is parallel to malachite stained veins.

14NG031 356290 5240286 2014 Hydrothermal breccia consisting of chalcedonic silica, hematite with red-maroon and black matrix. Silicified, and it has chlorite and adularia. Similar to last station.

14NG032 356229 5240223 2014 Rhyolite breccia, matrix varies from chalcedonic red, hematitic to black green coloration. Unit is vey silicified, and locally has flow texture.

14NG033 356207 5242974 2014 Fault zone between red pink rhyolite and intermediate to mafic subrounded conglomerate: clast supported, illite-sericite altered with varying silicification from zones ranging from 3 m wide to cm wide.

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Silica gel is grey-grey brown, chalcedonic silica with locally leached rhyolite clasts. Semi translucent gel contains hematite, adularia, and rhodonite.

14NG034 354981 5238887 2014 Large, m-wide quartz vein with minor hematite, and "dull" quartz. Illite, and silicification in host rhyolite changes laterally.

14NG035 354963 5239001 2014 Pink-maroon rhyolite. Near vertical fault. Green illite, sericite, +- chlorite and silicification. Grey-green-orange chalcedonic silica.

14NG036 354925 5238776 2014 Pyrophylitized fault across rhyolite. Soft, pale green with black colouration. Local quartz fragments. Minor clay alteration in fractures.

14NG037 354921 5238900 2014 Illite, sericite, minor adularia, chalcedonic hematitic qtz. Minor clay alteration on surface, silicified locally leached rhyolite.

14NG038 356595 5243368 2014 Oxidized silicified rhyolite, with quartz, hematite, amethysts, and "thick" chalcedonic qtz. Minor black mineral in fractures.

14NG039 356617 5243239 2014 Silicified rhyolite with banded adularia, rhodonite, and chalcedonic quartz, rhodonite.

14NG040 356891 5243883 2014 Amethysts, rhodonite, with chalcedonic quartz. Intense illite, minor sericite alteration. Brecciated rhyolite.

14NG041 354736 5238579 2014 Ignimbrite oxidized along fractures. Silicified +- illite.

14NG042 355053 5238462 2014 Matrix supported ignimbrite. Rhyolite clasts are variably silicified and oxidized, illite altered.

14NG043 355053 5238462 2014 Fault across rhyolite with intense illite alteration and minor sericite, and clay. Hematite and chalcedonic quartz filling.

14NG044 356204 5243000 2014 Brecciated rhyolite. Silicified zone with abundant quartz veining. Some specularite in veins as matrix. Minor alteration.

14NG045 356134 5239314 2014 Brecciated rhyolite. Oxidized matrix with illite? Minor dark amethysts with hematite. Rounded clasts

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2013 Rocks Samples

Sample ID

Easting Northing Year Sample Description

13BB-001 355287 5237936 2013 Oxidized hematitic breccia.

13BB-002 355325 5237942 2013 Oxidized parallel set of veins. Bulk sample.

13BB-003 356234 5240219 2013 Alunite, malachite staining in quartz veins within rhyolite breccia.

13BB-004 354932 5238261 2013 Oxidized, sheared rhyolite breccia, maroon hematitic, flow banded clasts, locally silicified and chloritized.

13BB-005 354940 5238697 2013 Pale green, pistachio coloured material from shear zone, pyrite in matrix. Hematitic material beside shear zone.

13BB-006 355167 5238489 2013 Parallel quartz veins in pale green altered breccia, hematitic shear zone.

13BB-007 354940 5238697 2013 South side of E-W linear. Rhyolite and hematite breccia with adularia and chalcedonic quartz. Altered agglomerate with pale green white colour?

13BB-008 354938 5238284 2013 Pyrite in pyrophylitized material, dyke? Oxidized weathered surface.

13BB-009 354976 5238380 2013 K-metasomatism in maroon rhyolite. Moderate to intense zone of K alteration for 200 m along N-S trending linear next to dome.

13BB-010 354992 5238894 2013 Set of parallel quartz veins in o/c next to OSO linear. Pale green alteration along veins. One vein is 6 inch. Wide with minor oxidation, next to clay alteration no banding and chalcedonic appearance.

13BB-011 354924 5238774 2013 Shear zone with pale green pyrophylite zone. Trenched. Minor oxidation and clay horizon.

13BB-012 355167 5238489 2013 Pyrophyllite alteration, intense grey appearance. Banded chalcedonic quartz veins generally clasts of hematite within then matrix. Some clay and oxidation.

13BB-013 354722 5238006 2013 Felsic material, possible agglomerate, close to silicified heavy, purple maroon and grey groundmass.

13BB-014 356089 5240191 2013 Maroon rhyolite breccia, clasts are flow banded, flow rhyolite. Very siliceous, oxidized with local malachite staining. Oxidization is

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Sample ID

Easting Northing Year Sample Description

along fractures. K-alteration along with chalcedonic quartz as matrix.

13BB-015 356056 5240134 2013 Rhyolite breccia to rheomorphic rhyolite. Hematitic and chalcedonic quartz veins, 1.5 cm wide. Near N-S linear.

13BB-016 356368 5239813 2013 232 m from shear zone. K-metasomatism in footwall cross-cutting veins of quartz and chalcedonic quartz. Maroon rhyolite on the side. N-side is orange to brown coloured silicified. Oxidization and black staining on fractures. Some breccia with qz. Matrix.

13BB-017 354700 5238041 2013 Shear zone. 197, S-trending. Pyrophyllite pale green alteration and minor clay. Rock is hematitic, red to maroon with pale green staining. Rounded clasts look like filled lithophysae. Silicified, and it has minor oxidation.

13BB-018 354667 5237966 2013 Hematitic breccia in float. Chalcedonic quartz as matrix and pyrophyllitized clasts.

13BB-019 354809 5237615 2013 Zone of foliated prophyllitized matrix with variable clasts of hematitic and chalcedonic quartz. Minor adularia banding clay alteration in veins.

13BB-020 354944 5237875 2013 Alteration zone, N-S trending linear zone of intense silicification and potassic alteration, banded adularia. Illite alteration on filled lithophysae. Alunite?

13BB-021 355005 5237699 2013 Silicified alteration zone, adjacent to illite alteration zone. Chalcedonic veins 1 cm wide, with banded milky hematitic and minor clay in centre.

13BB-022 354932 5237682 2013 Alteration zone, intensely silicified, K-altered, with banding, purple-red to cream white bands with some round clasts within bands.

13BB-023 354932 5257682 2013 Alteration zone. Sample is illitized and silicified. Chlorite and pyrite in matrix with filled lithophysaes. Alunite? Oxidized soft, pale green minor white clay.

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Sample ID

Easting Northing Year Sample Description

13BB-024 354498 5238664 2013 Pale green tuffaceous rock in gradual contact with agglomerate. Orange oxidation on fractures and on clasts. Clasts are mainly rhyolite, hematitic with some andesitic clasts.

13BB-025 354992 5238441 2013 Parallel quartz veins with fragments in veins. Andularia, alunite?, pale green clay, and white sericite altered host rock.

13BB-026 354530 5238622 2013 Hematitic hydrothermal breccia in pale green agglomerate, clasts are mainly rhyolite. Quartz, adularia, and sericite altered veins.

13BB-027 354722 5238167 2013 Oxidized, strongly weathered chloritic granite with quartz veins. 20 % disseminated pyrite in matrix.

13BB-028 354848 5237961 2013 Rounded clasts of hemamtitic rhyolite. Pale green spheroidal alteration on clasts surface. Chalcedonic quartz with black to rusty brown weathering.

13BB-029 356223 5240202 2013 Rheomorphic rhyolite flow with multiple breccia, and boxwork silicification. Maroon weathering. Black bands with minor quartz veining. Hematite?

13BB-030 354720 5238134 2013 Intensely silicified, tuffaceous unit from float. Pale green sericite alteration with minor clay.

13CP001 356211 5242835 2013 Zone of illite alteration, breccia with hematitic rhyolite -andesite. Amethysts and adularia, chalcedonic quartz.

13CP002 356242 5243117 2013 Chalcedonic quartz with fragments and bands of andularia. Amethyst and jasper in matrix. Minor white clay alteration.

13CP003 356262 5242978 2013 From fault contact with rhyolite and clastic pebble-boulder breccia. Intense illite-sericite alteration, hematite breccia, cross-cutting chalcedonic quartz veins. 305/84 orientations on vein set. Trenched the contact and hit clay horizon. Amethysts locally above alteration zone.

13CP004 356215 5242878 2013 Intense silicification, hematitic breccia with minor amethyst, chalcedonic quartz. Intense alteration and brecciation of rhyolite along fault.

13CP005 356911 5244028 2013 Amethysts, chalcedonic quartz, illite alteration. Round grey, filled lithophysaes.

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Sample ID

Easting Northing Year Sample Description

13WB001 353215 5245190 2013 Oxidized o/c near linear.< 30 % disseminated pyrite within parallel quartz veins, sheared mafic agglomerate.

2014 Soil Samples

Sample ID Easting Northing Colour Horizon Description

14J5001 354792 5237996 red-brown B Bulk sample across 5m, under leached white clay horizon

14J5002 354812 5238044 red-brown B Bulk sample across 5m, under leached white clay horizon

14J5003 354811 5238095 red-brown B Bulk sample across 5m, under leached white clay horizon

14KG5001 356386 5243307 red-brown B fine silty, minor clay, under leached white clay horizon

14KG5002 356333 5243267 red-brown B fine silty, minor clay, under leached white clay horizon

14KG5003 356291 5243236 red-brown B fine silty, minor clay, under leached white clay horizon

14KG5004 356267 5243192 red-brown B fine silty, minor clay, under leached white clay horizon

14KG5005 356246 5243146 red-brown B fine silty, minor clay, under leached white clay horizon

14KG5006 356217 5243101 red-brown B fine silty, minor clay, under leached white clay horizon

14KG5007 356193 5243057 red-brown B fine silty, minor clay, under leached white clay horizon

14KG5008 354925 5238777 red-brown B From hand trench, oxidized soil, white leached clay horizon present

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Appendix 2

Assay Certificates

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1 of 2 Au Fire Assay / ICP Geochemistry Certificate

Client: Nicolai Goeppel

Geologist:

Project:

Sample: Rock Signed by:______________________

DskFile: 230-1408291 Results apply to samples as submitted.

Email: [email protected]

DateIn: October 30, 2014 P.O. Box 187 Concentrations in assay range may cause

DateOut: November 13, 2014 403 Little Bay Road Springdale, NL A0J 1T0 interferences in associated elements.

Phone: 709-673-3909 / Fax: 709-673-3408 ISO 17025------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------

Sample Au Ag Al As Ba Be Bi Ca Cd Ce Co Cr Cu Fe Hg In K La Mg Mn Mo Na Ni P Pb S Sb Se Sn Sr Ti U V W Zn

Number ppb ppm % ppm ppm ppm ppm % ppm ppm ppm ppm ppm % ppm ppm % ppm % ppm ppm % ppm % ppm % ppm ppm ppm ppm % ppm ppm ppm ppm

------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------

BLANK - AU 5 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

STD - GS - 5P 4370 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

BLANK --- <0.2 0.01 <5 <10 <0.5 4 0.01 <0.5 <10 <1 3 <1 0.02 3 <1 0.07 <10 0.02 <5 3 0.01 8 <0.01 6 0.01 <5 <1 <20 1 <0.01 <1 <1 <10 <2

STD TILL-3 --- 1.5 >5.50 108 43 0.5 3 0.50 1.2 34 12 69 21 2.23 <1 <1 0.15 11 1.19 478 3 0.15 40 0.05 22 0.03 <5 19 <20 20 0.49 3 66 <10 55

14NG001 <5 0.2 3.60 40 96 <0.5 4 0.08 <0.5 20 1 213 4 0.78 <1 <1 0.59 <10 0.12 195 4 0.23 13 <0.01 <5 0.21 25 <1 69 7 0.21 <1 4 <10 16

14NG002 <5 <0.2 3.53 <5 153 0.5 <2 0.01 <0.5 19 1 142 2 0.46 <1 <1 0.49 <10 0.09 146 1 0.25 16 <0.01 6 0.05 41 17 81 6 0.23 3 2 <10 19

14NG003 <5 0.2 3.11 45 96 1.3 3 0.06 <0.5 38 1 179 3 0.52 <1 <1 0.55 12 0.07 213 2 0.18 11 <0.01 5 0.04 41 20 67 7 0.25 1 2 <10 13

14NG004 <5 <0.2 2.83 7 104 <0.5 5 0.01 <0.5 11 <1 206 3 0.49 <1 <1 0.54 <10 0.04 148 2 0.18 13 <0.01 11 0.02 34 13 <20 4 0.13 5 1 <10 8

14NG005 <5 0.2 3.62 24 65 0.7 3 0.02 <0.5 21 <1 184 3 0.51 <1 <1 0.37 <10 0.14 69 2 0.27 12 <0.01 <5 0.04 33 14 71 4 0.31 5 4 <10 9

14NG006 <5 0.3 4.11 26 56 0.6 3 0.03 <0.5 29 <1 147 3 0.48 <1 <1 0.44 <10 0.16 102 3 0.29 12 0.01 7 0.05 21 8 53 5 0.30 3 5 <10 16

14NG007 <5 0.2 4.44 31 52 0.7 4 0.03 <0.5 30 <1 162 1 0.45 <1 <1 0.40 10 0.16 72 2 0.32 6 0.01 16 0.05 <5 <1 84 4 0.32 4 5 <10 12

14NG008 <5 0.2 3.54 <5 56 0.7 <2 0.12 0.5 34 <1 165 3 0.61 <1 <1 0.55 16 0.05 330 2 0.23 12 <0.01 <5 0.03 35 9 42 42 0.33 1 3 <10 11

14NG009 <5 0.5 3.94 20 68 0.7 5 0.06 <0.5 24 <1 165 2 0.49 2 <1 0.60 <10 0.03 186 2 0.27 16 <0.01 8 0.05 37 21 35 19 0.28 <1 3 <10 15

BLANK --- <0.2 0.01 <5 <10 <0.5 <2 0.01 <0.5 <10 1 1 <1 <0.01 <1 <1 0.08 <10 0.01 <5 <1 0.01 <1 <0.01 6 0.01 <5 <1 <20 1 <0.01 <1 <1 <10 <2

STD LKSD-3 --- 2.5 >5.50 32 167 0.8 3 0.74 0.7 82 25 44 36 2.83 <1 <1 0.35 33 1.24 1467 3 0.16 44 0.10 26 0.17 <5 <1 72 38 0.60 5 85 <10 139

14NG010 <5 <0.2 4.30 <5 44 0.7 <2 0.19 <0.5 17 1 110 3 0.37 <1 3 0.31 <10 0.10 194 3 0.29 6 <0.01 15 0.03 <5 <1 <20 51 0.28 3 4 <10 9

14NG010 DUP-P <5 <0.2 4.65 14 45 0.7 <2 0.20 <0.5 18 2 112 2 0.36 <1 <1 0.32 <10 0.09 194 2 0.31 4 <0.01 12 0.03 <5 3 <20 56 0.29 2 3 <10 10

14NG011 <5 0.2 >5.50 15 82 0.9 <2 0.18 <0.5 24 <1 103 2 0.38 1 <1 0.44 10 0.12 152 2 >0.50 6 <0.01 5 0.04 <5 <1 <20 61 0.33 6 4 <10 7

14NG012 <5 <0.2 3.51 <5 69 0.7 <2 0.08 <0.5 30 1 129 2 0.67 <1 <1 0.68 12 0.04 222 3 0.19 2 <0.01 <5 <0.01 <5 13 24 28 0.34 <1 4 <10 9

14NG013 <5 <0.2 3.43 20 70 0.7 <2 0.08 <0.5 17 1 154 2 0.45 <1 <1 0.66 <10 0.03 191 2 0.15 7 <0.01 12 0.02 <5 5 <20 28 0.20 1 2 <10 10

14NG014 <5 0.2 4.41 <5 64 1.2 3 0.17 <0.5 36 1 85 1 1.10 <1 <1 0.70 19 0.10 362 2 0.13 3 <0.01 20 0.03 <5 10 <20 51 0.47 2 6 <10 22

14NG015 <5 <0.2 3.99 19 78 0.8 <2 0.12 <0.5 20 1 143 2 0.80 <1 <1 0.76 11 0.04 243 2 0.21 5 <0.01 14 0.05 <5 3 <20 36 0.27 2 3 <10 6

14NG016 <5 <0.2 4.03 9 62 0.7 <2 0.01 <0.5 13 1 137 3 0.41 <1 <1 0.64 <10 0.07 124 3 0.13 7 <0.01 9 0.03 <5 11 <20 7 0.15 <1 2 <10 18

14NG017 11 >6.0 3.62 <5 201 0.7 2 0.11 <0.5 50 1 133 822 0.46 <1 <1 0.85 14 0.01 41 2 0.19 3 0.01 16 0.03 <5 <1 <20 9 0.58 1 31 <10 3

14NG018 <5 0.4 3.73 <5 107 0.5 <2 0.10 <0.5 31 2 135 20 0.54 <1 <1 0.49 <10 0.05 96 2 0.43 5 0.01 9 0.05 <5 23 44 6 0.60 1 24 <10 19

14NG019 <5 <0.2 >5.50 <5 56 1.5 <2 0.01 <0.5 15 1 92 5 0.61 <1 6 0.94 <10 0.57 113 2 0.25 4 <0.01 5 0.03 <5 <1 <20 2 0.09 <1 17 <10 19

14NG020 <5 <0.2 >5.50 <5 132 0.9 3 <0.01 <0.5 32 1 115 3 0.54 <1 <1 0.97 10 0.15 115 3 0.30 8 <0.01 10 0.05 <5 <1 <20 7 0.06 1 7 <10 12

14NG020 DUP-C <5 <0.2 >5.50 50 141 0.9 <2 0.01 <0.5 32 1 132 3 0.54 <1 <1 1.01 10 0.15 118 1 0.31 6 <0.01 10 0.05 <5 <1 <20 8 0.06 1 7 <10 13

14NG021 <5 <0.2 >5.50 21 122 0.7 <2 0.01 <0.5 24 1 129 2 0.48 <1 <1 0.92 <10 0.13 93 3 0.35 <1 <0.01 10 0.04 <5 <1 63 6 0.12 <1 3 <10 9

14NG022 <5 0.7 1.95 >2200 >1000 32.5 46 0.08 23.4 48 10 70 1011 3.41 <1 <1 >1.10 47 0.04 >22000 46 0.26 12 0.08 118 0.07 >440 48 54 >220 0.06 18 162 16 362

14NG023 <5 0.5 2.80 132 110 1.4 2 0.07 1.5 20 2 246 16 0.75 <1 <1 0.44 <10 0.08 5155 3 0.30 7 <0.01 6 0.04 <5 16 <20 28 0.07 <1 26 <10 9

14NG024 <5 <0.2 2.01 50 118 0.7 2 0.02 0.5 11 <1 252 13 0.91 <1 <1 0.41 <10 0.03 1807 3 0.19 5 <0.01 11 0.03 <5 2 <20 8 0.05 <1 17 <10 3

14NG025 <5 <0.2 3.59 40 152 0.6 <2 0.01 <0.5 27 1 156 3 0.50 <1 <1 0.83 <10 0.06 352 2 0.20 5 <0.01 6 0.05 <5 <1 <20 6 0.24 <1 2 <10 5

14NG026 <5 <0.2 3.47 <5 208 <0.5 <2 0.04 <0.5 24 <1 182 14 0.35 <1 <1 0.74 <10 0.03 85 3 0.20 6 <0.01 13 0.04 <5 <1 22 20 0.25 1 21 <10 <2

BLANK --- <0.2 0.01 <5 <10 <0.5 <2 0.01 <0.5 <10 <1 3 <1 0.01 <1 <1 0.01 <10 0.02 9 <1 0.01 <1 <0.01 8 0.01 <5 <1 <20 1 <0.01 <1 <1 <10 <2

STD LKSD-4 --- <0.2 >5.50 25 133 0.6 2 0.84 2.0 39 8 19 30 2.31 <1 <1 0.22 18 0.72 550 2 0.19 28 0.14 76 0.96 <5 10 21 54 0.30 33 55 <10 186

14NG027 <5 0.4 4.38 9 131 0.5 <2 0.02 <0.5 50 1 152 14 0.66 <1 2 0.76 19 0.17 252 3 0.26 <1 <0.01 46 0.06 <5 <1 <20 5 0.10 2 13 <10 20

14NG028 <5 <0.2 4.65 12 61 0.7 <2 0.02 <0.5 25 <1 142 3 0.39 <1 <1 0.50 12 0.24 84 2 0.33 2 <0.01 6 0.05 <5 <1 <20 6 0.21 1 6 <10 5

14NG029 <5 0.3 3.76 <5 78 <0.5 <2 0.07 <0.5 20 1 113 5 0.68 1 <1 0.53 <10 0.04 94 <1 0.46 7 <0.01 6 0.05 <5 8 <20 4 0.50 4 13 <10 14

14NG030 <5 1.2 3.96 <5 191 <0.5 3 0.10 <0.5 48 1 114 19 0.45 <1 <1 0.90 14 0.02 69 3 0.20 <1 <0.01 6 0.02 <5 26 <20 8 0.65 <1 29 <10 3

14NG030 DUP-P <5 1.3 3.97 <5 190 <0.5 3 0.10 <0.5 47 1 108 19 0.43 <1 <1 0.90 14 0.02 64 3 0.21 5 <0.01 6 0.04 <5 <1 51 8 0.65 <1 29 <10 2

14NG031 <5 0.3 4.67 <5 100 <0.5 <2 0.08 <0.5 27 2 120 5 0.65 <1 <1 0.65 <10 0.09 165 <1 0.48 2 0.01 8 0.03 <5 <1 <20 5 0.56 1 17 <10 42

14NG032 <5 0.4 3.01 8 50 <0.5 <2 0.08 <0.5 22 1 144 5 0.67 <1 <1 0.28 <10 0.07 134 2 0.41 7 0.01 12 0.05 <5 6 <20 3 0.55 4 16 <10 29

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59

2 of 2 Au Fire Assay / ICP Geochemistry Certificate

Client: Nicolai Goeppel

Geologist:

Project:

Sample: Rock Signed by:______________________

DskFile: 230-1408291 Results apply to samples as submitted.

Email: [email protected]

DateIn: October 30, 2014 P.O. Box 187 Concentrations in assay range may cause

DateOut: November 13, 2014 403 Little Bay Road Springdale, NL A0J 1T0 interferences in associated elements.

Phone: 709-673-3909 / Fax: 709-673-3408 ISO 17025------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------

Sample Au Ag Al As Ba Be Bi Ca Cd Ce Co Cr Cu Fe Hg In K La Mg Mn Mo Na Ni P Pb S Sb Se Sn Sr Ti U V W Zn

Number ppb ppm % ppm ppm ppm ppm % ppm ppm ppm ppm ppm % ppm ppm % ppm % ppm ppm % ppm % ppm % ppm ppm ppm ppm % ppm ppm ppm ppm

------------------------------ ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------------------------------------------------------------------------------------------------------------------------------------------

14NG033 <5 <0.2 4.87 9 78 0.7 <2 0.03 <0.5 15 2 146 2 0.47 <1 <1 0.52 <10 0.24 135 2 0.24 8 <0.01 10 0.04 <5 <1 <20 10 0.18 1 33 <10 28

14NG034 <5 <0.2 1.08 <5 20 <0.5 2 0.01 <0.5 <10 1 230 3 0.34 <1 <1 0.17 <10 0.01 36 3 0.23 6 <0.01 7 0.03 <5 28 <20 2 0.01 <1 1 <10 <2

14NG035 <5 <0.2 3.52 13 121 <0.5 <2 0.02 <0.5 23 1 84 1 0.39 1 <1 0.65 <10 0.12 59 2 0.18 4 <0.01 5 0.03 <5 <1 <20 4 0.21 1 6 <10 7

14NG036 <5 0.3 >5.50 <5 36 1.1 <2 0.01 <0.5 101 1 24 1 0.34 <1 <1 0.89 35 0.25 129 <1 0.22 <1 <0.01 10 0.04 <5 33 <20 1 0.05 <1 4 <10 27

14NG037 <5 <0.2 4.43 8 120 0.5 4 0.18 <0.5 22 <1 84 2 0.46 <1 <1 0.80 <10 0.16 65 2 0.17 8 0.09 14 0.05 <5 8 <20 4 0.12 6 7 <10 11

14NG038 <5 <0.2 4.66 16 79 1.4 <2 0.05 <0.5 39 <1 141 2 0.54 <1 <1 0.77 14 0.13 291 1 0.17 4 <0.01 14 0.03 <5 <1 <20 12 0.26 1 4 <10 19

14NG039 <5 0.2 3.42 <5 63 0.8 <2 0.13 <0.5 34 1 146 2 0.47 <1 <1 0.55 14 0.03 221 2 0.20 4 <0.01 <5 0.03 <5 12 <20 28 0.27 <1 3 <10 8

14NG040 <5 <0.2 >5.50 <5 101 1.3 <2 0.08 <0.5 28 1 143 2 0.46 <1 <1 0.79 <10 0.13 274 2 0.29 8 <0.01 10 0.03 <5 7 <20 25 0.24 <1 3 <10 15

14NG040 DUP-C <5 <0.2 4.04 15 62 1.1 3 0.07 <0.5 26 1 156 2 0.46 <1 <1 0.52 <10 0.12 242 2 0.22 5 <0.01 5 <0.01 <5 11 <20 19 0.24 <1 3 <10 12

BLANK - AU 5 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

STD GS - 7F 6727 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

14NG041 <5 0.2 5.15 8 52 1.6 <2 0.02 <0.5 23 1 58 1 0.51 <1 <1 0.63 <10 0.28 1215 2 0.25 <1 <0.01 10 0.04 <5 6 <20 5 0.35 3 7 <10 20

14NG042 <5 0.2 5.44 23 99 1.2 <2 0.12 <0.5 23 2 54 2 0.85 <1 <1 0.67 <10 0.38 246 3 0.22 7 0.01 9 0.05 <5 <1 <20 32 0.76 1 16 <10 22

14NG043 <5 <0.2 4.38 <5 77 1.3 <2 0.01 <0.5 37 <1 133 2 0.76 <1 <1 0.68 14 0.23 595 2 0.21 7 <0.01 12 0.04 <5 <1 <20 5 0.18 2 2 <10 22

14NG044 13 <0.2 3.97 <5 11 0.8 <2 0.42 <0.5 15 1 162 3 0.54 <1 <1 0.07 <10 0.02 300 1 0.45 7 <0.01 17 0.04 <5 3 <20 94 0.20 5 28 <10 3

14NG045 <5 <0.2 5.22 22 23 0.5 <2 0.01 <0.5 39 <1 84 1 0.38 <1 <1 0.47 12 0.14 79 1 0.30 <1 <0.01 10 0.03 <5 <1 <20 4 0.09 3 2 <10 14

1 of 1 Assay Certificate

Client: Nicolai Goeppel

Geologist:

Project:

Sample: Rock Signed by:______________________

DskFile: 230-1408388 Results apply to samples as submitted.

Email: [email protected]

DateIn: October 30, 2014 P.O. Box 187

DateOut: November 13, 2014 403 Little Bay Road Springdale, NL A0J 1T0

Phone: 709-673-3909 / Fax: 709-673-3408 ISO 17025-------------------------------- ------------------- -------------- -------------- -------------- -------------- -------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------

SAMPLE Sb Ag

NUMBER % g/t

-------------------------------- ------------------- -------------- -------------- -------------- -------------- -------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ---------------- ----------------

BLANK <0.01 <0.1

STD FCM-6 --- 161.2

STD FCM-7 --- 65.7

STD MP-1b --- 49.2

STD CCU-1d --- 121.5

STD CD - 1 3.55 ---

14NG017 --- 9.3

14NG022 0.04 ---

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1 of 1 Au Fire Assay / ICP Geochemistry Certificate

Client: Nicolai Goeppel

Geologist:

Project:

Sample: Soil Signed by:______________________

DskFile: 230-1408290 Results apply to samples as submitted.

Email: [email protected]

DateIn: October 30, 2014 P.O. Box 187 Concentrations in assay range may cause

DateOut: November 19, 2014 403 Little Bay Road Springdale, NL A0J 1T0 interferences in associated elements.

Phone: 709-673-3909 / Fax: 709-673-3408 ISO 17025----------------------------- -------------------- --------- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------

Sample Au Ag Al As Ba Be Bi Ca Cd Ce Co Cr Cu Fe Hg In K La Mg Mn Mo Na Ni P Pb S Sb Se Sn Sr Ti U V W Zn

Number ppb ppm % ppm ppm ppm ppm % ppm ppm ppm ppm ppm % ppm ppm % ppm % ppm ppm % ppm % ppm % ppm ppm ppm ppm % ppm ppm ppm ppm

----------------------------- -------------------- --------- --------- ---------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- --------- ---------

BLANK - AU 5 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

STD - GS - P5C 535 --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---

BLANK --- <0.2 0.01 <5 <10 <0.5 <2 0.01 <0.5 <10 1 7 1 0.03 <1 <1 0.09 <10 0.02 <5 <1 0.01 <1 <0.01 <5 <0.01 <5 <1 <20 1 <0.01 1 1 <10 <2

STD LKSD-3 --- 2.3 >5.50 31 161 1.3 <2 0.69 1.0 89 27 50 53 3.11 <1 6 0.36 36 1.31 1532 1 0.21 46 0.10 28 0.19 <5 3 <20 35 0.75 11 90 <10 153

14KG5001 <5 <0.2 >5.50 16 34 0.5 <2 0.05 <0.5 15 3 14 4 3.24 <1 3 0.16 <10 0.45 206 <1 0.14 9 0.02 17 0.04 <5 <1 69 9 >1.00 6 72 <10 22

14KG5002 <5 0.2 >5.50 17 17 0.7 <2 0.04 <0.5 26 4 25 7 3.62 <1 <1 0.10 <10 0.36 286 1 0.11 11 0.06 16 0.07 <5 <1 <20 5 >1.00 7 67 <10 25

14KG5003 <5 <0.2 >5.50 14 36 <0.5 <2 0.03 <0.5 12 3 16 5 4.26 <1 <1 0.16 <10 0.26 176 <1 0.13 8 0.04 17 0.04 <5 <1 <20 6 >1.00 6 92 <10 17

14KG5004 <5 0.2 >5.50 5 45 <0.5 <2 0.04 <0.5 12 3 12 4 3.89 <1 <1 0.18 <10 0.32 170 <1 0.16 7 0.02 20 0.04 <5 <1 56 9 >1.00 5 84 <10 15

14KG5005 <5 <0.2 >5.50 12 27 0.5 <2 0.04 <0.5 26 4 17 4 3.67 <1 <1 0.13 <10 0.39 227 <1 0.13 5 0.04 15 0.10 <5 7 <20 7 >1.00 5 72 <10 22

14KG5006 <5 <0.2 >5.50 19 124 0.6 <2 0.07 <0.5 21 3 15 4 3.88 <1 2 0.42 <10 0.38 202 <1 0.44 6 0.04 14 0.06 <5 <1 <20 21 >1.00 6 74 <10 23

14KG5007 <5 0.2 >5.50 17 18 0.6 <2 0.04 <0.5 40 7 17 12 5.91 <1 <1 0.11 13 0.37 420 <1 0.11 8 0.11 13 0.10 <5 5 <20 6 >1.00 10 82 <10 39

14KG5008 <5 <0.2 >5.50 10 41 <0.5 <2 0.06 <0.5 26 4 16 5 3.99 <1 <1 0.16 <10 0.57 246 <1 0.15 8 0.01 11 0.04 13 <1 39 11 >1.00 5 75 <10 22

14J5001 <5 <0.2 >5.50 15 46 <0.5 <2 0.07 <0.5 21 3 13 4 2.23 <1 <1 0.16 <10 0.37 161 <1 0.17 3 0.02 10 0.04 <5 <1 43 11 >1.00 4 66 <10 15

14J5002 <5 <0.2 >5.50 16 41 <0.5 <2 0.09 <0.5 23 3 12 5 2.04 <1 <1 0.15 <10 0.41 202 <1 0.18 11 0.02 163 0.04 7 <1 33 11 >1.00 4 52 <10 16

14J5003 <5 <0.2 >5.50 8 63 <0.5 <2 0.08 <0.5 22 2 14 8 1.84 <1 <1 0.21 <10 0.37 163 1 0.19 4 0.02 11 0.02 <5 <1 <20 13 >1.00 3 61 <10 14

14J5003 DUP <5 <0.2 >5.50 9 66 <0.5 <2 0.08 <0.5 21 2 18 8 1.86 <1 <1 0.22 <10 0.38 164 1 0.21 8 0.02 10 0.03 <5 <1 28 13 >1.00 4 61 <10 14

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Appendix 3

Personnel and Contractors

Personnel

Name Location Title Work Completed Total Number of Days

Nicolai Goeppel St. John's, NL Prospector / Junior Geologist Bedrock mapping, GIS drafting, rock/soil sampling, ground magnetometer, hand trenching, report preparation and prospecting

63

Graham Layne St. John's, NL Dr. Graham Layne, Memorial University Property visit and consultation

5

Norm Mercer St. John's, NL Geologist Property visit 1

Nikolett Kovacs St. John's, NL Junior Geologist Mapping 3

Chris Voisey Mount Pearl, NL Assistant Ground magnetometer survey

2

Justin Smith Conception Bay, NL Assistant Ground magnetometer survey, trenching, and soil sampling

5

Dylan Abbott St. John's, NL Assistant prospecting assistant 1

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Contractors

Name Location Work Completed

Eastern Analytical Limited

Springdale, NL Rock and soil sample preparation and assay

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63

Appendix 4.

Statement of Expenditures

List of Expenditures 2013-2014

Personnel

Name Work Completed (days) Rate/Day Number of Days Total

Nicolai Goeppel Property scale bedrock mapping (14), GIS drafting (10), soil sampling (2), ground magnetometer (3), hand trenching (7), report preparation (5) and prospecting/rock sampling (25)

$250/day 63 $ 15,750.00

Graham Layne Property visit (1) and consultation (4) $300/day 5 $ 1,500.00

Norm Mercer Property visit $270/day 1 $ 270.00

Nikolett Kovacs Mapping $250/day 3 $ 750.00

Chris Voisey Ground magnetometer survey (2) $180/day 2 $ 360.00

Justin Smith Ground magnetometer survey (2), trenching (1), and soil sampling (2)

$180/day 5 $ 900.00

Dylan Abbott prospecting assistant $125/day 1 $ 125.00

Subtotal: $ 19,655.00

Analytical Expenses

Name Sample Type Number of Samples Year Total

Eastern Analytical Limited Rock 36 2013 $ 1,309.22

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Eastern Analytical Limited Rock 45 2014 $ 1,759.07

Eastern Analytical Limited Soil 11 2014 $ 366.75

Subtotal: $ 3,435.04

Field Expenses

Item Rate/Day Number of Days Total

Vehical Rental 60/day 48 $ 2,880.00

Gas 65km roundtrip 18L/trip @ average $1.15/L = 20.70/day

48 $ 993.60

Sample Bags and Field Supplies

$5/day per person 61 $ 305.00

Trenching and Sampling Equipment Rental

$10/day 9 $ 90.00

Magnetometer Rental $50/day 3 $ 150.00

Sample Shipping $ 300.00

Office Costs $5/day 5 $ 25.00

Subtotal: $ 4,743.60

Total Expenditures

Personnel $ 19,655.00

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Analytical Expenses $ 3,435.04

Field Costs $ 4,743.60

Final Total: $ 27,833.64

Required Assessment: $ 5,800.00

Excess for carry-over: $ 22,033.64

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Personnel

021617M Total

Bedrock mapping $ 1,574.00

Prospecting $ 2,080.00

Sampling $ 430.00

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 4,406.00

Analytical Expenses

021617M

Name Sample Type Total

Eastern Analytical Limited Rock $ 1,852.00

Soil $ 133.00

Subtotal $ 1,985.00

Field Expenses

021617M

Item Total

Vehical Rental $ 993.00

Gas $ 343.00

Sample Bags and Field Supplies $ 105.00

Trenching and Sampling Equipment Rental $ 31.00

Magnetometer Rental $ 51.00

Sample Shipping $ 103.00

Office Costs $ 9.00

Subtotal $ 1,635.00

Total $ 8,026.00

Required Assesment $ 2,000.00

Carry over $ 6,026.00

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Personnel

021616M Total

Bedrock mapping $ 1,101.00

Prospecting $ 1,456.00

Sampling $ 430.00

Trenching $ 322.00

Ground geophysiscs $ 1,470.00

Subtotal $ 3,309.00

Analytical Expenses

021617M

Name Sample Type Total

Eastern Analytical Limited Rock $ 718.00

Soil $ 233.00

Subtotal $ 951.00

Field Expenses

021616M

Item Total

Vehical Rental $695

Gas $240

Sample Bags and Field Supplies $73

Trenching and Sampling Equipment Rental $22

Magnetometer Rental $36

Sample Shipping $72

Office Costs $6

Subtotal $1,144

Total $ 5,404.00

Required Assessment $ 1,400.00

Carry over $ 4,004.00

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Personnel

021898M Total

Bedrock mapping $ 472.00

Prospecting $ 733.00

Sampling

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 1,527.00

Analytical Expenses

021898M

Name Sample Type Total

Eastern Analytical Limited Rock $ 40.00

Subtotal $ 40.00

Field Expenses

021898M

Item Total

Vehical Rental $ 298.00

Gas $ 103.00

Sample Bags and Field Supplies $ 32.00

Trenching and Sampling Equipment Rental $ 9.00

Magnetometer Rental $ 16.00

Sample Shipping $ 31.00

Office Costs $ 2.00

Subtotal $ 491.00

Total $ 2,058.00

Required Assesment $ 600.00

Carry over $ 1,458.00

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4

Personnel

021618M Total

Bedrock mapping $ 629.00

Prospecting $ 832.00

Sampling

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 1,783.00

Analytical Expenses

021618M

Name Sample Type Total

Eastern Analytical Limited Rock $ 418.00

Subtotal $ 418.00

Field Expenses

021618M

Item Total

Vehical Rental $ 397.00

Gas $ 137.00

Sample Bags and Field Supplies $ 42.00

Trenching and Sampling Equipment Rental $ 12.00

Magnetometer Rental $ 20.00

Sample Shipping $ 41.00

Office Costs $ 3.00

Subtotal $ 652.00

Total $ 2,853.00

Required Assessment $ 800.00

Carry over $ 2,053.00

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5

Personnel

022153M Total

Bedrock mapping

Prospecting $ 488.00

Sampling

Trenching

Ground geophysiscs

Subtotal $ 488.00

Analytical Expenses

022153M

Name Sample Type Total

Eastern Analytical Limited Rock $ -

Subtotal $ -

Field Expenses 022153M

Item Total

Vehical Rental $ 199.00

Gas $ 68.00

Sample Bags and Field Supplies $ 21.00

Trenching and Sampling Equipment Rental $ 6.00

Magnetometer Rental $ 11.00

Sample Shipping $ 21.00

Office Costs $ 2.00

Subtotal $ 328.00

Total $ 816.00

Required Assessment $ 400.00

Carry over $ 416.00

Page 72: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

6

Personnel

022154M Total

Bedrock mapping $ 315.00

Prospecting $ 448.00

Sampling

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 1,085.00

Analytical Expenses

022154M

Name Sample Type Total

Eastern Analytical Limited Rock $ -

Subtotal $ -

Field Expenses 022154M

Item Total

Vehicle Rental $ 199.00

Gas $ 68.00

Sample Bags and Field Supplies $ 21.00

Trenching and Sampling Equipment Rental $ 6.00

Magnetometer Rental $ 11.00

Sample Shipping $ 21.00

Office Costs $ 2.00

Subtotal $ 328.00

Total $ 1,413.00

Required Assessment $ 400.00

Carry over $ 1,013.00

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7

Personnel

022173M Total

Bedrock mapping $ 157.00

Prospecting $ 208.00

Sampling

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 687.00

Analytical Expenses

022173M

Name Sample Type Total

Eastern Analytical Limited Rock $ 40.00

Subtotal $ 40.00

Field Expenses 022173M

Item Total

Vehicle Rental $ 99.00

Gas $ 34.00

Sample Bags and Field Supplies $ 11.00

Trenching and Sampling Equipment Rental $ 4.00

Magnetometer Rental $ 5.00

Sample Shipping $ 11.00

Office Costs $ 1.00

Subtotal $ 165.00

Total $ 892.00

Required Assessment $ 200.00

Carry over $ 692.00

Page 74: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

List of Expenditures2013-2014

Personnel

Name Work Completed (days) Rate/Day Number of Days Total

Nicolai Goeppel Property scale bedrock mapping (14), GIS $250/day 63 $drafting (10), soil sampling (2), groundmagnetometer (3), hand trenching (7), reportpreparation (5) and prospecting/rocksampling (25)

Graham Layne Property visit (1) and consultation (4) $300/day 5 $1,500.00

Norm Mercer Property visit $270/day 1 $270.00

Nikolett Kovacs Mapping $250/day 3 $750.00

Chris Voisey Ground magnetometer survey (2) $180/day 2 $360.00

]ustin Smith Ground magnetometer survey (2), trenching $180/day 5 $(1), and soil sampling (2) 900.00

Dylan Abbott prospecting assistant $125/day 1 $125.00

Subtotal: $49765O

Analytical Expenses

Name Sample Type Number of Samples Year Total

Eastern Analytical Limited Rock 36 2013 $1,309.22

)r ic-c Vezt\L\ e>cç €*— i qc:cct: cje

€qc --t-+ çi lv’- (I%1ccj

‘‘ ? ‘‘ °t CY’-

Appendix 4.

Statement ofExpenditures

____________________

(‘,o.o

C 2.05

::- c,5IqIo3

Cckr\0fr

63c,c

1? . çkcw enc

Page 75: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

Eastern Analytical Limited Rock 45 2014 $1,759.07

Eastern Analytical Limited Soil 11 2014 $366.75

Subtotal: $3,435.04

Field Expenses

Item Rate/Day Number of Days Total

Vehical Rental 60/day 48 $2,880.00

Gas 65km roundtrip 12L/trip @ average $1.15/L = 48 $20.70/day 993.60

Sample Bags and Field $5/day per person 61 $Supplies 305.00

Trenching and Sampling $10/day 9 $Equipment Rental 90.00

Magnetometer Rental $50/day 3 $150.00

Sample Shipping $300.00

Office Costs $5/day 5 $25.00

Subtotal: $4,743.60

Total Expenditures

Personnel $19,655.00

64

Page 76: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

Analytical Expenses $3,435.04

Field Costs $4,743.60

Final Total: $27,833.64

Required Assessment: $5,800.00

Excess for carry-over: $22,033.64

65

Page 77: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

Personnel

Q

0

021617M Total

Bedrock mapping $ 1,574.00

Prospecting $ 2,080.00

Sampling $ 430.00

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 4,406.00

— ZL1 L.2Analytical Expenses I021617M

Name Sample Type Total

Eastern Analytical Limited Rock $ 1,852.00

Soil $ 133.00

Subtotal $ 1,985.00

Field Expenses

021617M

Item Total

Vehical Rental $ 993.00

Gas $ 343.00

Sample Bags and Field Supplies $ 105.00

Trenching and Sampling Equipment Rental $ 31.00

Magnetometer Rental $ 51.00

Sample Shipping $ 103.00

Office Costs $ 9.00

Subtotal $ 1,635.00

Required Assesment

Total $ 8,026.00 .S7;8 ,-i7I

Carry over $ 6,026.OQ$ 2,000.00 (ro.95(,

L(5qq j—

o

Page 78: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

o9 ct)

021616M

Bedrock mapping

Prospecting

Sampling

Total

$

Trench ing

$

Ground geophysiscs

1,101.00

$1,456.00

Subtotal

$430.00

$

cd322.00 \\

Analytical Expenses

1,470.00

021617M

J

$

Name

4-779’

Eastern Analytical Limited

?L4çj 9 L, Cf

Sample Typejq7 -

Rock

t

Soil

Total

$

Field Expenses

02161GM

718.00

$

Subtotal

Item

233.00

Personnel

Total $ -5A0409 q21iRequired Assessment $ 1,400.00

Carry over $ 4,004.00 2-

Vehical Rental

$ 951.00

Gas

Total

Sample Bags and Field Supplies

Trenching and Sampling Equipment Rental

$695

Magnetometer Rental

$240

Sample Shipping

$73

Office Costs

$22

Subtotal

$36

$72

$6

$1,144

2

Page 79: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

Personnel

72

021$98M Total

Bedrock mapping $ 472.00

Prospecting $ 733.00

Sampling

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 1,527.00

2

Analytical Expenses

021898M

Name Sample Type Total

Eastern Analytical Limited Rock $ 40.00

Subtotal $ 40.00

Field Expenses

021898M

Item Total

Vehical Rental $ 298.00

Gas $ 103.00

Sample Bags and Field Supplies $ 32.00

Trenching and Sampling Equipment Rental $ 9.00

Magnetometer Rental $ 16.00

Sample Shipping $ 31.00

Office Costs $ 2.00

Subtotal $ 491.00

Total $ -ze&oo \Icoc.jRequired Assesment $ 60000

Carryover $ 1,458.00 L.f5Lt5

3

Page 80: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

Personnel

021618M Total

Bedrock mapping $ 629.00

Prospecting $ 832.00

Sampling

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 1,783.00

57 .l5’f€Analytical Expenses

021618M

Name Sample Type Total

Eastern Analytical Limited Rock $ 418.00

Subtotal $ 418.00

Field Expenses

021618M

Item Total

Vehical Rental $ 397.00

Gas $ 137.00

Sample Bags and Field Supplies $ 42.00

Trenching and Sampling Equipment Rental $ 12.00

Magnetometer Rental $ 20.00

Sample Shipping $ 41.00

Office Costs $ 3.00

Subtotal $ 652.00

Total $ Z18S&00

Required Assessment $ 80000’

Carry over $ 2O30

4

Page 81: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

Personnel

022153M Total

Bedrock mapping

Prospecting

Sampling

$ 488.00

Trenching

Ground geophysiscs

Subtotal $ 488.00

- l5 1_Analytical Expenses h 2022153M

Name Sample Type Total

Eastern Analytical Limited Rock $ -

Subtotal $ -

Field Expenses 022153M

Item Total

Vehical Rental $ 199.00

Gas $ 68.00

Sample Bags and Field Supplies

Trenching and Sampling Equipment Rental$ 21.00

$ 6.00

Magnetometer Rental $ 11.00

Sample Shipping

Office Costs

$ 21.00

$ 2.00

Subtotal $ 328.00

Total $ .816.00 .:

Required Assessment $ 400,00 ::j — 9Carryover $ 4-16O0

5

Page 82: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

Personnel

022154M Total

Bedrock mapping $ 315.00

Prospecting $ 448.00

Sampling

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 1,085.00

—__5(Analytical Expenses

022154M

Name Sample Type Total

Eastern Analytical Limited Rock $ -

Subtotal $ -

Field Expenses 022154M

Item Total

Vehicle Rental $ 199.00

Gas $ 68.00

Sample Bags and Field Supplies $Trenching and Sampling Equipment Rental

21.00

$ 6.00

Magnetometer Rental $ 11.00

Sample Shipping $ 21.00

Office Costs $ 2.00

Subtotal $ 328.00

Total $ 1,4.13.O0 9jc1

Required Assessment $ 4OO00 j4Carry over $ IOI3t

6

Page 83: gis.geosurv.gov.nl.ca · 2018-11-19 · 001N/07/0979. Geological Evaluation on the Klondyke Au-Ag Base Metal Property Summary of 2013-2014 Grassroots Exploration First year assessment

Personnel

022173M Total

Bedrock mapping $ 157.00

Prospecting $ 208.00

Sampling

Trenching $ 322.00

Ground geophysiscs

Subtotal $ 687.00

-%5 (,, q_Analytical Expenses . , ( )022173M

Name Sample Type Total

Eastern Analytical Limited Rock $ 40.00

Subtotal $ 40.00

Field Expenses 022173M

Item Total

Vehicle Rental $ 99.00

Gas $ 34.00

Sample Bags and Field Supplies $ 11.00

Trenching and Sampling Equipment Rental $ 4.00

Magnetometer Rental $ 5.00

Sample Shipping $ 11.00

Office Costs $ 1.00

Subtotal $ 165.00

Total $ 9L0O

Required Assessment $ ZGO.O0-

Carry over $ 69201 (ç (a’°

7

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8

Appendix 5

Overview Map