The Reliance Gold Property is located 5 km east of Gold Bridge and 10 km north of the Bralorne-Pioneer Gold Mining Camp which has historically produced over 4 million ounces of gold.
The Property was previously explored with trenching and diamond drilling from 1985 through 2008. Gold mineralization is associated with wide zones of alteration associated with regional scale subparallel north and northwest trending structures. The most explored structure is the Royal Shear which hosts the Diplomat, Senator, Imperial, Crown and Eagle Zones identified by historic surface sampling as associated with encouraging gold values. The property was last diamond core drilled in 2008 and this campaign, which in part targeted the Imperial Zone, returned highlight drill intersection widths from this zone of 13.30 gpt gold over 4.20m (est. 1.8 m true width), 7.05 gpt gold over 5.06m (est. 2.05 m true width), 5.70 gpt gold over 12.05 m (est. 9.5 m true width), 5.43 gpt gold over 15.35 m (est. 10 m true width), and 2.16 gpt gold over 12.13 m (est. 6.5 m true width), in five (5) drill holes of an eight (8) hole drilling campaign. Historic surface grab and chip sampling results from these zones, together with drilling, indicate a mineralized gold system over at least 750m of strike and 250m vertically that requires a systematic exploration program to evaluate. Based on historic soil sampling and continuing ankerite alteration, the Royal Shear remains open and unexplored along strike in both directions indicating potential for extension of the mineralized system by an additional 1,000 m or more.
In December 2019, the Company announced encouraging surface sampling results from the Reliance Gold Property. Sampling efforts were largely focused on the Royal Shear and recent assay results have confirmed encouraging gold results on surface. Highlights of the results include 10 gpt gold over 5 m at the Imperial Zone and 4.6 gpt gold over 2 m at the Senator Zone prospects. The gold mineralization is hosted within areas of alteration up to 30m wide in the Royal Shear consisting of ankerite-sericite-clay alteration with silicification, quartz-stibnite veining, vein stockwork, vein breccia, and quartz-feldspar porphyry.
The best December 2019 result from the Imperial Zone assayed 10 gpt gold over 5 m (sample reference is RL Imp Area rs) and was collected by the vendor in late 2018 from a road cut as shown on a photo available on the Company website. Total sample weight was 2.11 kilograms consisting of representative chip and grab sampling within a panel extending about 5 m of horizontal length and 1 m height on the upper bank of a road cut. The deeply weathered outcrop is ankerite altered, sheared and brecciated volcanic in the footwall of the Royal Shear. Weathering of this alteration results in exposure of orange, yellow, brown and rusty gouge with some observed fine-grained black sulphide, interpreted to be stibnite. There was no obvious silicification or quartz veining observed in the collected sample. True width of this sampled zone is expected to be narrower than the sampled width, but the horizontal strike of the sample length was approximately perpendicular to the strike of the ankerite altered and sheared volcanic at the Imperial Zone which has a width of approximately 30 m in this area.
The best 2019 sample result from the Senator Zone assayed 4.6 gpt gold over 2 m (sample reference is RL rb 4) and was collected from a similar road cut about 75 m west-southwest of the above sample. Total sample weight was 1.01 kilograms collected from a panel extending over 2 m of horizontal length and 1 m height. At this outcrop, brown to orange weathering ankerite altered, sheared and brecciated volcanic is also present. At this location, fine grained banded silicification and quartz veining is present associated with fine grained black sulphide interpreted to be stibnite.
The Company intends to conduct a 2020 exploration program consisting of mapping, rock sampling, soil sampling and drilling. Initially in the new year as the weather permits, the Company intends to restore the high-bank surface road and trench exposures of the five zones on the Royal Shear to facilitate chip and channel sampling as well as geological and structural mapping. After permitting, a 2020 summer diamond drill program will follow results from the surface program.
The Option Deal
Under the terms of the letter agreement with the Optionor executed in September 2019, the Company can earn a 100% interest in the Reliance Gold Property located near Gold Bridge, British Columbia, for cash consideration in the aggregate amount of $300,000 ($2,500 paid) and exploration expenditures in the aggregate amount of $3,000,000 by December 31, 2024; the allotment and issuance of up to a total of 4,000,000 common shares of the Company by December 31, 2025. The Option is subject to a 2.5% NSR, of which 1.5% NSR can be purchased by the Company at any time for $1,000,000. In addition, the Company agreed to issue up to a maximum of 200,000 Shares to PI Financial Corp. (the "Finder") who introduced the Property to the Company. The Shares will be issued and paid to the Finder in two tranches. The initial 100,000 Shares will be paid on execution of a formal option agreement between the Optionor and the Company, and the second tranche of 100,000 Shares will be issued and paid on or before January 31, 2021 provided that the Option remains in good standing on December 31, 2020.
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 representative chip and grab samples mentioned in this release were analyzed for gold only at SGS Canada by GE_FAA30V5. The single overlimit sample that exceeded 10,000 ppb gold was analyzed by SGS Canada by GO_FAG30V. Confirmation standards were inserted by SGS Canada with each of the two analytical techniques.
Bedrock representative chip and grab samples mentioned in this release are potentially selective by nature and are unlikely to represent average grades within the bedrock when drilled. Except for the drilling completed in 2008, the historic exploration drilling activity cannot be relied upon due to poor quality georeferencing and lack of down-hole dip information. Despite estimates, the drill intersections mentioned in this release may not accurately represent the true width of the intersection. In 2008 all cut and/or split core samples were analyzed by ICP analyses at Ecotech Analytical Laboratory. Samples that exceeded 1,000 ppb Au were rerun by lead collection fire assay at the same laboratory using a preferred 30 gram sub-sample size.