$0.07

Elephant Mountain Gold Project, Alaska

The Elephant Mountain property is located in the Rampart-Eureka-Hot Springs placer gold mining district near Eureka, Alaska. The property can be accessed by road from Eureka, a placer mining area located about 76 miles (123 kilometres) northwest of Fairbanks.

The Elephant Mountain area is, in part, drained by Eureka and Pioneer Creeks. Alluvial gold was first discovered in Eureka Creek in 1898 and both Eureka and Pioneer Creeks are two of the most significant alluvial gold bearing creeks in the Eureka-Hot Springs gold district.

The Elephant prospect is interpreted to be part of the family of reduced intrusion-related gold system (RIRG) similar to the Fort Knox Mine, Ryan Lode and True North deposits located in the nearby Fairbanks Gold Mining district in Alaska, as well as the Brewery Creek, Dublin Gulch and Kaminak's Coffee deposits in the Yukon. All of 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 intrusive host to the exploration targets at Elephant Mountain is a multi-phase Cretaceous-aged granodiorite, diorite, syenomonzonite and granite pluton that intrudes quartzite, siltstone and shale.

The Elephant Mountain property was explored for gold by Placer Dome, Inc. ("PDI") between 1989 and 1992. PDI identified a large gold-arsenic soil geochemical anomaly over the intrusive that extends for at least 6,000 feet and up to 1,500 feet wide (1,830 metres ("m") and up to 457 metres wide), with peak values in the PDI soil samples up to 1,540 parts per billion ("ppb") gold.

The Company has focused its exploration attention on the South Zone Soil Anomaly 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 property come from this target. Prospecting and sampling has resulted in the discovery of gold values in grab samples of quartz vein material from the intrusive including 12.98 grams per tonnes ("g/t"), 5.21 g/t, 4.44 g/t. 3.02 g/t, 2.59 g/t and 2.18 g/t gold. PDI collected a stibnite (antimony sulphide) bearing grab sample in 1991 in this area that assayed 12 ounces per ton gold (411.4 g/t gold). PDI drilled two (2) holes in the South Zone in 1992 without explaining the soil anomaly.

The Company completed four diamond drill holes from three setups on the South Zone Anomaly in September 2016. On October 31, 2016 the Company announced encouraging results from the two drill holes. Weighted average gold results for the mineralized zone in two closely spaced holes are 4.09 g/t gold over 4.6 m and 3.87 g/t gold over 4.6 m. True width is currently unknown.

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

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 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 g/t and 24.9 g/t 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.

Drill holes EL 16-14 A&B (Azimuth 235 degrees, Dip -45 degrees) were drilled from the same setup on the eastern margin of the South Zone soil anomaly and are the same target hole that was re-drilled after EL 16-14A was lost and re-drilled as EL 16-14B. After re-establishing the hole, it was re-drilled past the same target at an interpreted slightly shallower angle. Thus, these two drill intersections are estimated to be less than three metres apart. The remaining portions of the drill hole have not been sampled.

The remaining two drill holes (EL 16-15, EL 16-16) that tested the South Zone anomaly have transected primarily sheared and faulted diorite, granodiorite, and/or syenomonzonite with inliers of altered clastic sediments. EL 16-15 which underlies the western portion of the South Zone soil anomaly, intersected a wide oxidized and disrupted zone which includes multiple areas of faulting, brecciation and clay gouge. Only about 68% of the core was recovered for the entire 114 m length of the drill hole EL 16-15. The best assay results from this drilling include an intersection of 0.52 gpt Au over 3.04 m which includes 1.13 gpt Au over 1.06 m. This intersection is associated with one of the zones of clay gouge breccia and fault rubble and 24% of the core was not recovered through this interval suggesting possible loss of oxidized mineralization. EL 16-16 is located on the east side of the South Zone soil anomaly 249 m north west of EL 16-14. The best assay results from this drilling include intersection of 0.59 gpt Au over 2.44 m and second intersection of 0.48 gpt Au over 2.44 m. These intersections are associated with minor pyrite and arsenopyrite associated with a quartz veinlet zone in syenomonzonite and a clay gouge zone in silicified and carbonate altered diorite and sediments.

On the North Zone Soil Anomaly, PDI completed eight (8) drill holes in 1992. On surface, pervasive disseminated pyrite-arsenopyrite with intense sericite alteration of granodiorite covers about one square kilometre outcrop area. The best of the PDI drill holes returned an average grade of 0.514 g/t gold over an interval of 99.4 m and bottomed in mineralization. In September 2016, one diamond drill hole tested the same target as this 1992 Placer Dome Drill hole and also targeted an area south of the 1992 drill hole. In September 2016, Endurance completed one diamond drill hole EL 16-13 (Az 180 Dip-45) which tested the slightly higher grade core of the prior drill section within this broad low-grade zone. EL 16-13 was drilled to a total angled depth of 180.75 m and encountered silicified and phylllic (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 Au over 147.1 m including a 0.63 gpt Au over 48.2 m.

True width of the mineralization at the North Zone s currently unknown although correlation of the greater than 0.50 gpt Au mineralization for the North Zone drilling shows an apparent sub-horizontal orientation over a distance of about 350 m.

The Central Zone Target, an area of no outcrop with no significant soil anomaly, is located between the North and the South Zones and is interpreted to be an area of altered intrusive. PDI completed a gradient induced polarization ("IP") resistivity and dipole-dipole IP geophysical survey which identified this chargeable anomaly with dimensions of about 1,500 m by 500 m between the North and South Zones. This geophysical target was never tested with diamond drilling, and remains unexplained.

The placer gold deposits, gold-in-soil anomalies, elevated gold-in-rock samples, and wide drill intersections in intrusive, and narrower higher grade drill intersections in the South Zone target, indicate that the Elephant Mountain property warrants a systematic exploration program including further drilling to expand the discovery at the South Zone target and test additional targets.

Under the terms of the option agreement with the private vendor, Endurance can earn 100% interest in the Property by completing a total of US$200,000 in exploration expenditures, US$200,000 in cash payments and delivering 400,000 Endurance common shares by December 31, 2017. As of November 2016, the company has completed all of the exploration expenditure requirements, paid US$60,000 in option payments and delivered 100,000 Endurance common shares. The option is subject to a 2% net smelter royalty ("NSR"), and Endurance can purchase half of the NSR at any time.

 

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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