The Reliance Gold Property (the "Property") is located 4 kilometres ("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 silicification, quartz-stibnite veining and vein stockwork, quartz-feldspar porphyry, and wide zones of ankerite-sericite-clay alteration. The most explored structure is the Royal Shear which hosts the Imperial, Crown, Senator and Eagle Zones identified by historic surface sampling with associated 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 grams per tonne ("gpt") gold over 4.20 metres ("m) (est 1.8 m true width), 7.05 gpt gold over 5.06 m (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) holes drilling campaign. A RC drilling program was completed in December 2020 with expectations of encouragement based on initial results from the pXRF logging of the chips. Final gold results are pending for this program.
Surface grab, chip and channel sampling results, together with the historic drilling, indicate a mineralized Orogenic-Type gold system within the Royal Shear that extends over at least 1,100 m of strike and 400 m vertically. A systematic exploration program is warranted to thoroughly explore this project. Based on recent rock sampling, soil sampling, biogeochemical sampling, airborne geophysics and a continuous robust alteration system, the Royal Shear remains open and unexplored along strike in both directions.
The Company optioned the Property in September 2019 and announced encouraging surface sampling results from the Property in December 2019. Sampling efforts were largely focused on a small portion of the Royal Shear and assay results have confirmed encouraging gold results on surface. Highlights of the results include 10 gpt gold over 5 m at the Imperial North 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 100 m wide in the Royal Shear consisting of ankerite-sericite-clay alteration with silicification, quartz-stibnite veining, vein stockwork, vein breccia sulphidized shear zones, and associated quartz-feldspar porphyry.
The best December 2019 rock sample result from the Imperial Zone assayed 10 gpt gold over 5 m was collected from a road cut. The sample was a representative chip and grab sample within a panel extending about 5 m of horizontal length and 1 m height on the upper bank. 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.
The best December 2019 rock sample result from the Senator Zone assayed 4.6 gpt gold over 2 m and was collected from a similar road cut about 75 m west-southwest of the above sample. This sample was 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.
2020 Exploration Program
The Company conducted a systematic 2020 exploration program consisting of compilation and location of historic technical data, airborne geophysics, rock, soil and biogeochemical sampling, geological structural mapping and extensive representative channel sampling, followed by a drilling program. The current exploration focus is on the Royal Shear Zone.
Geophysics - The 2020 airborne magnetics survey has identified a magnetic anomaly associated with the best gold occurrences on the Royal Shear which has a contiguous strike length of about 2.5 km on the Property. This airborne magnetics survey data combined with observations from the initial field work has also identified four (4) other subparallel lineaments on the Property named Steep, Treasure, Camp and Nemo. Historical gold mineralization has been reported on the Treasure and Camp lineaments and antimony mineralization has been reported along the Nemo lineament. An IP geophysical survey on the Royal Shear is currently under consideration.
Soil and Vegetation Sampling - The Talus fines/C-horizon soil survey demonstrates a robust and continuous northwest-southeast trending gold, silver, arsenic ("As") and antimony ("Sb") anomaly that exceeds 100 parts per billion ("ppb") gold along a strike length of 1,100 m and width of between 100 and 300 m associated with the Royal Shear. The multielement geochemical anomaly is 1,200 m in length and remains open to expansion along strike in both directions. Of the 236 samples collected to date, 64 samples exceeded 100 ppb gold (27% of total) and 12 samples exceeded 1,000 ppb gold. These 12 over-limit soil samples were re-analyzed and returned peak values of 27 parts per million ("ppm"), 11 ppm, 8.42 ppm, 5.55 ppm, 3.77 ppm and 3.66 ppm gold. There is a strong positive geochemical correlation between gold and associated elements silver (+0.85), As (+0.90) and Sb (+0.85). A 2020 biogeochemical sampling program of Douglas Fir tree branch cuttings, consisting of 129 samples, has identified an anomaly which is coincident with the greater than 100 ppb gold-in-soil anomaly. The biogeochemical anomaly is defined by elevated As (+/-gold, +/-Sb) over a 850 m strike length which is open to expansion. These results indicate that Douglas Fir sampling can be an economical method to detect blind mineralization obscured by the thick volcanic pumice tephra-ash that blankets the Property. Based on these encouraging results, the Company has completed a more extensive biogeochemical sampling program with the goal of discovering new mineralized areas hosted along the extensions of the Royal Shear Zone within the Property. Results from this survey are expected in the first quarter of 2021.
2020 Rock Sampling - The Company has restored the high-bank road outcrop exposures of the known gold zones on the Royal Shear to facilitate channel sampling as well as geological and structural mapping. To access the prospects, about 5 km of previously excavated access trails on the Royal Shear were cleared of underbrush and the outcrops cleaned to facilitate geology and sampling. Highlights of the initial 2020 rock sampling include a chip sample 4.1 gpt Gold over 3.7 m at the Imperial Zone and a chip sample of 8.8 gpt gold over 1.52 m at the Eagle South Zone. Highest grade rock samples result include a chip sample of 24.4 gpt gold over 0.3 m at the Eagle South Zone and 19.2 gpt gold in a grab sample from the Eagle Zone. The Eagle South Zone was subsequently systematically channel sampled.
2020 Channel Sampling - Systematic rock channel sampling has been completed over a significant strike length of the exposed prospects. The channel samples were collected using a hand-held electric hammer "demolition" chisel which extracts a continuous channel in outcrop horizontally across a pre-measured and marked outcrop face. The first channel sample results were reported at the Eagle South Zone and returned 8.9 gpt gold over 9.6 m within a wider mineralized zone of 6.92 gpt gold over 13.4 m. Other excellent 2020 channel sample results at the Eagle Zone returned values of 5.80 gpt gold over 31.5 m including 9.69 gpt gold over 9.1 m at Eagle 1, 4.88 gpt gold over 23.5 m including 8.61 gpt gold over 9.1 m at Eagle 3, and 3.83 gpt gold over 17.1 m including 7.19 gpt gold over 3.7 m at Eagle 0.
Permitting, Archaeological Study & Consultation - The Company's Notice of Work drill permit application, submitted in February 2020, was accepted by the BC Ministry of Energy and Mines in June 2020, and the five-year permit granted in October without concerns raised by any of the affected communities or other resource agencies. The Company is committed to a mutually beneficial relationship with local First Nations. Dialogue has been active throughout 2020 and First Nation contractors were engaged to assist in several aspects of the 2020 exploration activities. A preliminary archaeological study is now complete, and the field-oriented study did not identify any archaeological artifacts, or areas of concern.
Reverse Circulation Drilling - Subsequent to receipt of the drill permit a track-mounted compressed-air assisted Reverse Circulation (RC) drill was mobilized onto the property in November 2020 to test the Eagle, Eagle South and Imperial Zones. Seventeen holes were completed before the planned program finished in mid-December 2020. Nine (9) RC holes tested the Eagle Zone, five (5) RC holes tested the Imperial and Imperial North targets, and two (2) RC holes were completed on the Eagle South Target and one hole was abandoned at the Imperial Zone. Portable X-Ray Fluorescence ("pXRF") of the RC chips has identified interval widths enriched in As and Sb in 14 of the RC drill holes completed on the Eagle, Eagle South and Imperial Zones. The pXRF technique does not report quantifiable gold but previous work by the Company has shown that As and Sb mineralization has a strong positive correlation with gold mineralization. Highlight pXRF results include 3,227 ppm pXRF As and 3,774 ppm pXRF Sb over 24.4 mcommencing at the drill collar of RC20-015 on the Eagle Zone. This RC drill hole was drilled under the Eagle 1 channel sample reported in October 2020 that averaged 5.89 gpt Au and 3,757 ppm As over 31.5 m. Similar pXRF As results over encouraging widths provide reason to expect gold-bearing intervals in the drilling of all 9 RC holes at the Eagle Zone. Laboratory results from the drilling are expected in the first quarter of 2021.
Geological Mapping - The Company engaged Oliver Geoscience International Ltd. to complete a geological structural mapping program over a 1.0 km trend of the Royal Shear in the area of the best known gold prospects. The Royal Shear is a multi-strand brittle ductile northwest trending and steeply southwest dipping reverse fault that separates a dominantly mafic volcanic sequence on the northeast from a dominantly ribbon chert argillite sequence on the southeast. The most significant gold occurrences are located in the footwall mafic volcanic that are sheared and iron-carbonate altered resulting in wide zones of modest to intense alteration with the most intense alteration associated with silicification spatially associated with altered feldspar porphyry. Two types of orogenic-type gold mineralization have been observed on surface within the area of the most intense iron-carbonate alteration and shearing. One form is associated with silicification, quartz veins, quartz vein breccia, and often significant stibnite (up to 11% antimony in grab samples) and second type which is hosted within sericite altered brittle-ductile shearing with insignificant silicification but iron oxide oxidation suggesting elevated sulfide contents. It was observed that the later mineralization type is associated with recessive weathering shear zones up to 15 m in width. Follow-up geological mapping along the Royal Shear structural trend was completed in October.
The Option Deal
Under the terms of the agreement with the Optionor, 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 ($40,000 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 (500,000 common shares issued) 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 has issued 200,000 Shares to PI Financial Corp., the Finder, who introduced the Optionors to the Company.
Robert T. Boyd, P.Geo. is a qualified person as defined in National Instrument 43-101 and supervised the compilation of the historic information forming the basis for this summary. The 2020 work program is supervised by Darren O'Brien, P.Geo., an independent consultant and qualified person as defined in National Instrument 43-101.
The 2019 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.
The 2020 rock samples and channel samples were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where they were crushed to 70% <2 mm then up to 250 gram pulverized to <75 microns. Samples were then submitted for four-acid digestion and analyzed for 48 element ICP-MS (ME-MS61) and gold 30g FA ICP-AES finish (AU-ICP21). Over limit samples returning greater than 10 ppm gold were re-analyzed by Au-GRA21 methodology and over limit antimony returning greater than 10,000 ppm Sb were re-analyzed by Sb-AA08 methodology. Grab samples are selective by nature and are unlikely to represent average grades on the property or within the target areas. Bedrock representative chip and grab samples mentioned in this summary 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 2008 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 gold were re-analyzed by lead collection fire assay at the same laboratory using a preferred 30 gram sub-sample size.
The 2020 RC drill samples were collected under the supervision of a geologist at the drilling rig. Drilling was completed using a 3.5 inch hammer bit and rock chip samples were collected using a cyclone. Sample size were reduced to 1/8th size with a riffle splitter at the drilling rig. A second duplicate split and coarse chips were collected for reference material and stored at the property. All RC samples were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where they are crushed to 70% <2 mm then up to 250 gram pulverized to <75 microns. Samples are then submitted for four-acid digestion and analyzed for 48 element ICP-MS (ME-MS61) and gold 30g FA ICP-AES finish (AU-ICP21). Over limit samples returning greater than 10 ppm gold will be re-analyzed by Au-GRA21 methodology and over limit antimony returning greater than 10,000 ppm Sb will be re-analyzed by Sb-AA08 methodology. pXRF analysis was conducted by a Company geotechnician at the project site on the RC coarse chips that were saved as reference material. An Olympus Vanta XRF Analyzer was used for the analysis which is capable of measuring elements from concentrations as low as single parts per million (ppm). Duplicate pXRF analysis was also conducted on a select set of the duplicate split samples to test for reproducibility.
2020 Soil samples were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where they were prepped and screened to -180 micron using method code SCR-41. Samples were then submitted for aqua regia digestion and analyzed for gold and other trace elements with an ICP-MS finish (method code AuME-TL43). Over limit samples returning greater than 1,000 ppb gold were re-analyzed by Au-AROR43 methodology.
For the 2020 biogeochemistry program, Douglas Fir clippings weighing approximately 350 grams per sample were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where the Douglas Fir clippings were prepped for analysis and then air dried. An average homogenized weight of 24 grams of the collected and dried sample was then ashed at 475 degrees centigrade for 24 hours (prep method code VEG-ASH01) for a resultant average weight of 0.6 grams. The ashed samples were then submitted for nitric/hydrochloric acid digestion and analyzed for trace elements and gold with an ICP-MS finish (method code AuME-VEG41a). Analytical results are reported to the Company based on the ashed weight.