McCord Gold Project, Livengood District, Alaska
Endurance Gold Corporation owns and has an option to earn 100% interest in 40 Alaska State lode mining claims encompassing 5,178 acres located next to the Elliot Highway in the Fairbanks Mining District, Alaska. The McCord Gold Project (the "Project") is located in the eastern extension of the Livengood gold district and adjoins International Tower Hill's ("ITH") prefeasibility-stage Livengood Gold Property on the eastern side. ITH have reported an in-situ measured and indicated resource of 11.46 million ounces of gold (see the ITH website for complete disclosure).The Project was originally located to cover the stream catchment area for two encouraging gold anomalies (110 and 61 parts per billion ("ppb") gold) in stream sediment samples collected from McCord Creek in 1982 and re-analysed by the State of Alaska Division of Geological and Geophysical Surveys in 2005. The Livengood gold district has not been glaciated and therefore the stream sediment gold anomalies are interpreted to represent a source area within the McCord Creek drainage catchment.
Since acquisition of the initial claims, and prior to 2017, 467 soil and 73 rock samples have been collected from the eastern portions of the Project. These earlier programs have identified seven multi-element soil anomalies, associated with multiple anomalous gold values (>100 ppb), which are considered to be of exploration significance. The two largest multi-element soil anomalies, exceeding 10 ppb gold, are approximately 1,500 by 400 metres ("m"), and 1,100 by 500 m in size. The maximum soil value exceeds 100 ppb gold, which is the upper detection limit for the analytical method used. The two largest soil anomalies shed into the McCord Creek drainage.
In May 2017, the Company optioned 9 claims (the "Optioned Claims") and staked an additional 11 claims. The new claims adjoin the Company's existing claims that formed the Project. The Optioned Claims have been evaluated by the vendor solely for their placer gold potential largely with auger drilling including a program that was completed in March 2017. This program discovered one location in the McCord Creek valley where the auger drill has recovered fine gold, gold-in-quartz, gold-in-oxide wad, and significant amounts of cinnabar in concentrates from auger drill samples down to 20 feet in depth. The gold samples have low abrasion characteristics suggesting proximity to source. To the best of the Company's knowledge, aside from some historic and current placer mining activity, this area of the Project has never been previously evaluated with systematic exploration involving soil sampling, geophysics and diamond drilling.
The Company has reviewed the concentrates collected by the vendor, and plans to conduct a soil sampling program in 2018 on the expanded portions of the Project. The Company will also monitor placer-auger drilling on the Optioned Claims conducted by the vendor during 2018. Results from the soil sampling program will assist in determining a follow-up program of summer geophysics, additional auger and possibly diamond drilling.
Under the terms of the May 24, 2017 letter agreement with the private vendor of the Optioned Claims, Endurance can earn 100% interest by completing a total of US$50,000 in exploration expenditures, and US$40,000 (US$1,000 paid) in cash payments by December 31, 2024. An additional bonus cash payment of US$20,000 is payable if the Company wishes to exercise the option earlier than October 1, 2024. The option is subject to a 2% net smelter royalty ("NSR") and Endurance can purchase half of the NSR at any time. The vendor has the right to conduct placer mining activity during the term of the option and will work with the Company in identifying target areas to test with the vendor's auger drill. The geology in the area is interpreted to consist of Proterozoic to Paleozoic sedimentary and volcanic rocks near an ophiolitic thrust assemblage of mafic volcanics that has been cross-cut by Cretaceous-aged intrusives. Portions of the Project are also underlain by Early Cretaceous clastic sediments in thrust and fault contact with the ophiolitic assemblage. This geological setting is similar to ITH's adjoining property.
Robert T. Boyd, P.Geo. is a qualified person as defined in National Instrument 43-101 and supervised the compilation of the information forming the basis for this summary.