Elephant Mountain Gold Project, Alaska

The Elephant Mountain Project (the "Project") consists of three properties (Elephant, Trout and Wolverine) located in the Rampart-Eureka-Manley Hot Springs placer gold mining districts near Eureka, Alaska. The Project can be accessed by the Elliott all-weather highway and then seasonal road from Eureka, a placer mining area located about 76 miles (123 kilometres ("km")) northwest of Fairbanks.

The Project comprises at least eight targets which are interpreted to be part of the family of reduced intrusion-related gold system (RIRG) similar to the Fort Knox Mine, Pogo, Ryan Lode and True North deposits located in the nearby Fairbanks Gold Mining district in Alaska, as well as the Brewery Creek, Dublin Gulch (Eagle) and Coffee deposits in the Yukon. These RIRG deposits are interpreted to be related to late Cretaceous-aged intrusive events within the Tintina Gold Province of Alaska and the Yukon, and are all associated with historic placer gold mining activity.

The area of the Project, is in part, drained by Eureka, Pioneer and Quail Creeks. Alluvial gold was first discovered in Eureka Creek in 1898 and Eureka, Pioneer and Quail Creeks are three of the most significant alluvial gold bearing creeks in this historic gold district.

Within these three properties, which collectively encompass 7,680 acres, six (6) km-scale gold targets have been advanced to warrant drilling. All are associated with a Cretaceous-aged intrusive complex and related alteration system that extends for at least twelve (12) km from the southwest to the northeast. Two of the gold targets have been drill-tested by the Company resulting in highlights of 4.09 grams per tonne ("gpt") gold over 4.6 metres ("m") in the South Zone and 0.40 gpt gold over 147.1 m in the North Zone, with these intersections in drill holes separated by 1.4 km. Four other priority targets remain untested by drilling.

Background and Exploration History

Prior to the Company acquiring the Elephant Property, a large intrusive-hosted gold-arsenic soil geochemical anomaly was identified in 1992 that extends for at least 6,000 feet (1,830 m) and up to 1,500 feet (457 m) wide, with peak values up to 1,540 parts per billion ("ppb") gold.

South Zone Discovery

On the Elephant Property, the Company focused its exploration attention in 2014 through 2017 on the South Zone Target, with the objective of discovering higher grade structures. The Company completed a deep auger soil sampling program in 2014 and 2015 to better define the South Zone target, which consists of a gold-arsenic-antimony soil anomaly encompassing a 1,000 m by 250 m area with gold values exceeding 100 ppb gold. The highest gold values in rock samples from the Elephant Property come from this target. Prospecting and sampling by the Company has resulted gold values in grab samples of quartz vein material from the intrusive including 12.98 gpt, 5.21 gpt, 4.44 gpt, 3.02 gpt, 2.59 gpt and 2.18 gpt gold. Historically, a stibnite (antimony sulphide) bearing grab sample was reported in the area in 1991 that assayed 12 ounces per ton gold (411.4 gpt gold). This area was drilled in 1992 with two (2) holes without explaining the soil anomaly or high gold-in-rock samples.

In 2016, the Company completed four diamond drill holes from three setups on the South Zone Target. The Company announced encouraging results from the first two drill holes. Weighted average gold results for the mineralized zone in two closely spaced holes are 4.09 gpt gold over 4.6 m and 3.87 gpt gold over 4.6 m. True width is currently unknown.

Summary of Intersections Drill Holes EL 16-14A & EL 16-14B

(Azimuth 235 degrees, Dip -45 degrees)

Drill Hole From (m) To (m) Interval (m) Gold (g/t) Silver (g/t)
EL 16-14A 18.3 22.9 4.6 4.09 2.8
     Includes 18.3 19.3 1.0 3.82 2.2
     Includes 20.7 21.3 0.67 20.39 12.1
EL 16-14B 15.2 19.8 4.6 3.87 2.5
     Includes 15.2 16.1 0.91 3.75 2.8
     Includes 17.8 18.3 0.52 24.90 11.5


The gold mineralization in closely spaced EL16-14 A&B is related to a zone of inter-layered diorite and syenomonzonite associated with pervasive pyrite-arsenopyrite, calcite and silica replacement of the diorite layer with a massive stibnite bearing fault fill that appears to parallel to sub-parallel a contact between a diorite layer and the syenomonzonite with the associated high grade intercepts of 20.39 gpt and 24.9 gpt gold correlated at this location in both drill holes. The structure that hosts the massive stibnite is currently interpreted to be a steeply dipping structural zone striking northwest parallel to the eastern margin of the South Zone soil anomaly.

At the South Zone, an IP survey completed in 2017 defined a resistivity anomaly associated with the encouraging sulphide intersections in drill holes EL 16-14 A&B. Adjacent and on the east side of this resistivity feature and these discovery drill holes is a near surface chargeability feature with a strike length of between 100 and 200 m. This South Zone chargeability feature remains untested by drilling and is interpreted to represent a preserved sulphide rich zone in the intrusive in this area, not yet explained or tested by the 2016 drilling.

The remaining two drill holes (EL 16-15, EL 16-16) that tested the South Zone anomaly transected primarily well oxidized variably sheared and faulted diorite, granodiorite, and/or syenomonzonite with inliers of altered clastic sediments. The best assay results from EL 16-15 include an intersection of 0.52 gpt gold over 3.04 m which includes 1.13 gpt gold over 1.06 m and the best assay from EL 16-16 includes intersections of 0.59 gpt gold over 2.44 m and 0.48 gpt gold over 2.44 m.

North Zone Discovery

On the North Zone Target, pervasive disseminated pyrite-arsenopyrite with intense sericite alteration of granodiorite is exposed over about one (1) square km area associated with a similar sized gold-arsenic soil anomaly. Eight (8) holes were drilled in this area in 1992, with the best of the holes containing an average grade of 0.015 ounce per ton gold (0.514 gpt gold) over an interval of 326 feet (99.4 m) and bottomed in mineralization. In 2016, the Company completed one diamond drill hole EL 16-13 (Dip -45 degrees) which tested the higher grade core of the best 1992 drill hole. EL 16-13 was drilled to a total depth of 180.75 m and encountered silicified and phyllic (sericite) altered granodiorite throughout the entire core length. About 150 m of this length, starting at surface, encountered up to 1.5% pervasive disseminated pyrite and arsenopyrite with arsenopyrite and pyrite bearing quartz veinlets. The entire length of the drill hole is in-part oxidized with the oxidation related to fractures and oxidized quartz-sulphide veinlets. Assay results are 0.40 gpt gold over 147.1 m including 0.63 gpt gold over 48.2 m. True width is currently unknown.

Directly associated with the soil anomaly and this 2016 drill intersection, the 2017 IP survey defined a two-lobed well-defined chargeability feature estimated at 1,200 x 600 m in size associated with the pervasively sericite altered granodiorite and 1 to 3% disseminated sulphides, quartz veinlets and sulphide-quartz veinlets with associated gold. This IP chargeability feature has two separate target lobes defined by east-west oriented areas of higher chargeability, referred to as the North Zone Target and the Pump Zone Target. A portion of the North Zone Target was tested by the Company's 2016 drill hole and was partially tested with drill holes in 1992. A large portion of the chargeability feature associated with the North Zone Target remains untested by drilling. The Pump Zone Target, located in a covered area, remains entirely untested by trenching or drilling.

Central and Pump Zone Targets

The Central Zone Target, an area of late eluvial cover and no outcrop, is located between the North and the South Zones and is interpreted to be an area of altered and deeply oxidized intrusive associated with a regional scale east-west structure ("Elephant Mountain Fault") that transects the intrusive and is evidenced by a prominent lower resistivity feature. Within this target area elevated chargeabilities were noted in the 2017 IP survey on the largest separation readings primarily on the north side and within the Elephant Mountain fault between the South Zone and combined North Zone - Pump Targets. This Central Zone target area also has anomalous gold-in-soil. This target expresses itself at depth (i.e. largest separation readings) because it is interpreted to lie beneath an area of deeper oxidation associated with the Elephant Mountain Fault. This geophysical target has not yet been tested with diamond drilling.

Other Targets

In 2017, the Company completed soil and rock sampling, trenching and prospecting on the Trout, South Fork and Wolverine targets located on the northern Trout and Wolverine Properties. The 2017 sampling activity advanced the Trout and South Fork targets to drill stage.

The Trout Property is located about nine (9) km northeast of the Elephant Property. This property hosts two of the most significant gold targets acquired through option in 2017. The Trout Target consists of a soil anomaly, with gold values in excess of 100 ppb gold that outline a 1,000 m by 300 m mineralized trend. The best assay results reported included a gold-in-rock grab sample which assayed 9.64 gpt gold associated within shearing in the intrusive. Coincident with the observed shear zone, a 2017 power auger soil sampling survey has defined a 50 m wide (+100 ppb) gold-in-soil anomaly with a strike length of 170 m in the central part of the larger Trout soil anomaly. Within this soil anomaly is a 10 to 15 m wide (+500 ppb) gold-in-soil anomaly with an open strike length of approximately 130 m. Peak values within the +500 ppb gold contour include 2,330 ppb and 2,100 ppb gold, and up to 4.14 ppm silver. The higher gold-in-soil results are associated with higher arsenic-in-soil. Due to oxidation and recessive weathering there is no outcrop within the shear zone but frost boils near the highest gold-in-soil have yielded oxidized quartz veining with small grab samples assaying up to 1.26 ppm and 1.065 ppm gold, and up to 16.4 ppm silver. The shear zone and the +500 ppb gold-in-soil anomaly are open in both directions within the larger Trout soil anomaly. The larger 1,000 m long Trout Target soil anomaly (+100 ppb) also remains open for expansion in size.

The South Fork Target is located about two km north of the Trout Target on the Trout Property and is an east-west trending structure hosted within hornfels altered sediments. Rock sampling completed in 2017 returned values including 10.35 parts per million ("ppm"), 6.73 ppm, 6.60 ppm, 5.15 ppm, 4.10 ppm and 3.53 ppm gold, confirming gold potential associated with one or more east-west trending structural linear features. The four highest gold-in-rock samples collected in 2017 also returned 0.48% lead, 1.280% lead, 1.94% lead and 1.205% lead respectively. Mineralization is related to oxidized sulphides associated with quartz veining, vein stockwork, and quartz healed breccia hosted in hornfels altered clastic sediments. Hand trenching was also completed in 2017. The most significant area of the trench exposed the quartz-breccia over about 9 m in estimated true width associated with quartz breccia and quartz vein stockwork with slickensides and oxidized sulphides. Chip sampling averaged 0.547 ppm gold over 9.14 m including 0.846 ppm gold over 4.57 m. With the trench assay and other rock samples, the quartz-breccia mineralization has now been confirmed in rocks over an east-west trend distance of 250 m.

The soil signature at the South Fork Target is more subtle for gold and other elements than the Trout Target. Soil sampling has defined an east-west trending 350 m x 25 m (+20 ppb) gold-in-soil anomaly directly associated with the 10.35 ppm and 6.6 ppm gold-in-rock samples. Approximately 90 m to the north, a sub-parallel 200 m x 25 m (+20 ppb) gold-in-soil anomaly has also been defined associated with a gold-in-rock quartz-breccia sample of 6.73 ppm gold.

Other highly prospective targets include visible gold bearing quartz veinlets hosted within intrusive on the Wolverine property with assays up to 11.65 ppm gold.

Option Agreements

Under the terms of the option agreement with the private vendor on the Elephant Property, Endurance can earn a 100% interest by completing a total of US$200,000 in exploration expenditures (incurred), delivering 400,000 Endurance common shares (issued) and US$200,000 in cash payments ($95,000 paid) by December 31, 2019. The option is subject to a 2% net smelter royalty ("Elephant NSR"), and Endurance can purchase half of the Elephant NSR at any time.

Under the terms of the option agreement with the private vendor on the Trout and Wolverine Properties, Endurance can earn a 100% interest on both properties by completing a total of US$200,000 in exploration expenditures, delivering 300,000 Endurance common shares, and US$180,000 ($5,000 paid) in cash payments by December 31, 2024. The option is subject to a 2% net smelter royalty ("Trout NSR"), and Endurance can purchase half of the Trout NSR at any time.

Activity Planned for 2018

The Project warrants drilling on six targets over a 12 km distance as summarized:

  • Complete step-out drilling to build tonnage at the high-grade gold bearing structure intersected in DDH EL16-14 and also explain the strong near-surface IP chargeability anomaly adjoining this discovery at the South Zone Target.
  • Drill test the North Zone Target to discover higher grade structures that are evidenced by a more intense east-west IP chargeability trend.
  • Drill test the Pump Zone IP chargeability anomaly to discover higher grade structures that are evidenced by a more intense east-west IP chargeability trend.
  • Drill test the Central Zone Target to evaluate potential for more intensely oxidized zones of gold mineralization similar to the North Zone discovery.
  • Drill test the Trout Target to discover the bedrock source for the +500 ppb gold-in-soil anomaly.
  • Drill test the high-grade gold in quartz-breccia zone at the South Fork Target.

The Company is planning on conducting a drill program in 2018 to test some or all of these targets. Further soil sampling, geological mapping and regional rock sampling is also warranted.

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. The PDI activity during the period between 1989 and 1992 preceded the implementation of NI 43-101 and furthermore, the original data and reports have not been completely reviewed by the Company. Therefore the historic data summarized in this release should not be relied upon. Bedrock grab samples are selective by nature and are unlikely to represent average grades within the bedrock when drilled.

All 2012 and 2015 rock and soil samples were analyzed at ALS Minerals using Au-ST43, Au-OG43, and ME-MS41. All 2016 split core samples were analyzed at ALS Minerals using Au-AA23, Au-GRA21 (>10 g/t), and ME-MS61L. No assays for antimony or arsenic were completed on core samples with values exceeding 10,000 ppm.



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