Drilling & Results

Historical drilling has been completed on three properties within Kechika Regional Project, The Mt. Alcock, Bear/Spa and Driftpile South properties. The drilling on the Mt. Alcock and Bear/Spa properties intersected potentially economic Pb-Zn-Ag mineralisation.

Mt. Alcock Advanced Prospect

• Presence of potentially economic Pb-Zn-Ag mineralisation.
• 9.30% Zn+Pb, 1.20 oz/t Ag over 8.8 metres intersected in drill hole AK 89-3 Including 14.20% Zn+Pb, 1.60oz/t Ag over 3.6 metres (*).
• 6.90% Zn+Pb, 0.79oz/t Ag over 10.5 metres intersected in drill hole AK 89-9 (*).
• Limited Drilling. Insufficiently tested.

In 1989 Triumph Resources Ltd. drilled the Mt. Alcock Ba-Pb-Zn-Ag showing with 9 holes totalling 1,111.60 metres with a focus on the prominent white weathered barite kill zone that is present on surface. The first drilling program intersected a significant body of bedded barite with seams of sphalerite and galena. The drilling returned some significant results indicating the potential of economic grades of Pb, Zn, and Ag.

_{Table of significant results from 1989 drilling program (Murrell and Roberts 1990)*}

The 1989 drilling program was followed up by additional drilling in 1990 conducted by Teck Corp. A total of 1,152.50 metres in 8 drill holes was completed. The 1990 program was focused primarily on the drilling of ground based Induced Polarization (IP) geophysical targets along the southeast strike extents of the showing. Other exploration work on the property by Triumph Resources and Teck Corp. has included extensive soil sampling, grab sampling, geological mapping, and ground based geophysical surveys.

The Company feels that the Mt. Alcock advanced prospect represents an exciting opportunity to make a significant and new discovery within the Kechika Trough.

_{(*) Murrell M. and Roberts W., 1990. 1989 Exploration Program on the Mt. Alcock Property in the Kwadacha Recreational Area, Northern British Columbia, Ministry of Energy and Mines, Assessment Report 19829, 111p.}

Bear/Spa Advanced Prospect

• Presence of potentially economic Pb-Zn-Ag mineralisation
• Significant Pb, Zn, and Ag grades encountered
• Limited drilling. Insufficiently tested

There have been two main periods of drilling on the Bear/Spa property, the early 1980’s by Archer Cathro and in 1994 by Teck Corp. A very limited amount of drilling was completed in the 1970's on the eastern edges of the property that tested a very prominent and large iron seep known as the “Red/Spa Showing”. The drilling by Archer Cathro in 1980 tested a distinct Pb soil anomaly. This resulted in the discovery of the Bear Pb-Zn-Ag mineralisation. A total of 822.6 metres of drilling were completed in 5 holes in 1980 and 2 more holes totalling 325.3 metres were completed in 1981. Teck Corp. tested the Bear prospect in 1994 and completed 8 drill holes. Only 2 of the 8 holes were made public so the bulk of the results from 1994 are unknown.

The drilling defined what appears to be two main horizons of mineralisation, an upper and lower separated by barren siliceous shale. Both horizons strike to the southeast and dip steeply to the south west. The upper horizon is comprised of finely crystalline, bedded barite with interstitial sphalerite and galena. The lower horizon is characterised by non-baritic massive bedded pyrite. The drilling also identified a mineralised zone hosted within cherty argillite much higher in the stratigraphy that contains discrete beds of sphalerite and galena. The main mineralised horizon is estimated to have a true thickness of up to 35 metres(*).

_{Table of significant results from the 1980 Archer Cathro drilling of the Bear Prospect (Carne 1980)*}

The early drilling by Archer Cathro demonstrate the presence of potentially economic Pb-Zn-Ag mineralisation. Samples taken showed the potential for high grade mineralisation with Pb grades up to 5.73%*, Zn grade up to 10.7%*. Silver values present within the mineralisation are significantly higher than what is encountered at the Cardiac Creek deposit with grades up to 52.5g/t Ag*. The drilling tested the horizons over a strike length of approximately 800 metres and a very limited dip extent of approximately 100 metres. Historical recommendations stated that additional drilling was required to test the northwest extents of the mineralisation however no further work was pursued. Other exploration work on the property by Archer Cathro and Teck Corp. has included extensive soil sampling across the entire property, grab sampling, geological mapping, and ground based geophysical surveys.

The Company feels that the Bear advanced prospect represents an exciting opportunity to make a significant and new discovery within the Kechika Trough.

_{(*) R. C. Carne, 1980. Report on Diamond Drilling on the Bear and SI Claim Group, Ministry of Energy and Mines, Assessment Report 08626, 51p.}

Exploration

Tremendous potential for new discoveries!

Little to no modern exploration activities have taken place on the Kechika Regional Project over the past 30 years. The majority of exploration took place in the late 1970’s to early 1980’s. To advance the Kechika Regional Project the Company has initiated several efforts to enhance the prospectivity of the project and increase the chances for successful discovery.

Digital Exploration Database

The Company initiated a massive digital compilation effort bringing together a vast amount of public information into a single cohesive database involving data sets at a provincial level down to property scale. Everything from geological mapping, geochemistry (soils, silts, rocks, water, etc), airborne or ground-based geophysics, satellite imagery, air photos, reports, and other datasets have been incorporated into the database in order to be effectively utilized by modern 3D or GIS software packages

A cohesive Digital Exploration Database in excess of 155 GB in size has been compiled to facilitate further discovery!

Some examples of the database that demonstrate its tremendous potential as a tool include:

Airborne Geophysics

VTEM

In 2012 the Company conducted a large scale airborne Vertical Time Domain Electro-Magnetic (VTEM) survey across its southern properties. In 2013 the survey was expanded to include all of the Kechika Regional Project properties with coverage extending the length of the Company’s properties, some 140 kilometres of prospective ground. This dataset provided an immense amount of structural data as well as defined a distinct geophysical signature for the highly prospective Gunsteel Formation black siliceous shales leading to a reassessment of several properties within the project area, notably the Weiss and Kwad properties.

Gravity Gradiometry

In 2015 the Company also conducted an airborne gravity gradiometry survey across its southern properties including Mt. Alcock and Yuen North in order to take advantage of the density contrasts that exist between known mineralisation (eg Cardiac Creek deposit) and the host black shales. Anomalies corresponding with known VTEM response and mapped Gunsteel Formation shales were generated.

Satellite Structural Interpretation

In 2017 the Company engaged Murphy Geological Services to conduct a structural interpretation across the southern properties of the Kechika Regional project based on high resolution satellite imagery in order to define the structural framework of the basin and to identify possible key structures that may have been conduits for hydrothermal fluids that formed Pb-Zn-Ag mineralisation.

The Company continues to integrate and assess the geological data obtained from these surveys as well as the data contained within the digital database in order to generate and refine potential drilling targets as well as directs future exploration programs across the Kechika Regional Project in a cost effective manner.