Exploration Discovery Value Creation
Investor Presentation
February 2019
District Scale Gold-Copper Exploration First World Mining Jurisdictions
TSX-V: AVG
Investor Presentation February 2019 District Scale Gold-Copper - - PowerPoint PPT Presentation
Investor Presentation February 2019 District Scale Gold-Copper Exploration First World Mining Jurisdictions Exploration Discovery Value Creation TSX-V: AVG Avidian Gold Forward Looking Statements This presentation ( Presentation )
TSX-V: AVG
This presentation (“Presentation”) contains forward-looking information that involves substantial known and unknown risks and uncertainties, most of which are beyond the control of Avidian Gold Corp. (“Avidian”). Forward-looking statements include estimates and statements that describe Avidian’s future plans, objectives or goals, including words to the effect that Avidian or its management expects a stated condition or result to occur. Forward-looking statements may be identified by such terms as “believes”, “anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward-looking statements are based on assumptions and address future events and conditions, by their very nature they involve inherent risks and uncertainties. Although these statements are based on information currently available to Avidian, Avidian provides no assurance that actual results will meet management’s expectations. Risks, uncertainties and
information in this presentation includes, but is not limited to, Avidian’s objectives, goals or future plans, statements, exploration results, potential mineralization, Avidian’s portfolio, treasury, management team and enhanced capital markets profile, the proposed private placement, the timing of the Transaction, the estimation of mineral resources, exploration and mine development plans, timing of the commencement of operations and estimates of market conditions. Factors that could cause actual results to differ materially from such forward-looking information include, but are not limited to, problems, expenses, difficulties, complications and delays frequently encountered in connection with the establishment of any business, failure or inability to complete the Transaction on the terms as proposed, failure to obtain the required approvals of regulators, failure to identify mineral resources, failure to convert estimated mineral resources to reserves, the preliminary nature of metallurgical test results, delays in obtaining or failures to obtain required governmental, regulatory, environmental or other project approvals, political risks, unprofitable efforts resulting not only from the failure to discover mineral deposits but also from finding mineral deposits that, though present, are insufficient in quantity and quality to return a profit from production, uncertainties relating to the availability and costs of financing needed in the future, changes in equity markets, inflation, changes in exchange rates, fluctuations in commodity prices, delays in the development of projects, capital and operating costs varying significantly from estimates and the other risks involved in the mineral exploration and development industry. There is no assurance that Avidian’s mineral exploration and development activities will result in any discoveries of commercial bodies of ore. Mining exploration requires ready access to mining equipment such as drills, and crews to operate that equipment. There can be no assurance that such resources will be available to Avidian on a timely basis or at a reasonable cost. Unusual or infrequent weather phenomena, sabotage, or
projects depends upon Avidian’s ability to obtain financing through equity financing, joint ventures, debt financing, or other means. There is no assurance that Avidian will be successful in obtaining required financing as and when needed. There is no guarantee that Avidian’s title to such properties will not be challenged or impugned or that the appropriate permits and approvals will be obtainable on reasonable terms or on a timely basis; the licenses will be renewed upon their expiry; and that Avidian will be able to explore its properties as permitted or to enforce its rights with respect to its properties. Although Avidian believes that the assumptions and factors used in preparing the forward-looking information in this presentation are reasonable, undue reliance should not be placed on such information, which only applies as of the date of this Presentation, and no assurance can be given that such events will occur in the disclosed time frames or at all. Avidian disclaims any intention or obligation to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, other than as required by law. Notice to Canadian Residents The Presentation is not, and under no circumstances are to be construed as, an advertisement or a public offering of the securities referred to herein. The Presentation is not an offer to sell securities of Avidian and is not a solicitation of
the contrary is an offence. No person has been authorized to give any information or to make any representation other than as provided for herein. Notice to U.S. Persons The Presentation is not, and under no circumstances are to be construed as, an advertisement or a public offering of the securities referred to herein. The Presentation is not an offer to sell any securities of Avidian and is not a solicitation of
No securities commission or similar authority in United States has reviewed or in any way passed on the merits of the securities described herein and any representation to the contrary is an offence. No person has been authorized to give any information or to make any representation other than as provided for herein. U.S. investors are advised that the terms “inferred” and “indicated” resources are recognized and required by Canadian regulations, however the U.S. SEC does not recognize the terms. U.S. investors are cautioned not to assume that any part or all of mineral deposits in these categories would ever be converted to reserves.
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TSX-V: AVG
Industry experienced leaders Track record of deposit discovery and success Multi-faceted technical & business expertise
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(1) Source: Fraser Institute Annual Survey of Mining Companies 2017 Investment Attractiveness Index
Operate within mining friendly jurisdictions of North America Advance high quality portfolio up the value chain Fill the gap in the discovery pipeline for new deposits
Located within well endowed mineral belts in Alaska and Nevada Alaska ranked 5th worldwide for mineral potential and 10th by the Fraser Institute(1) Nevada ranked 3rd by the Fraser Institute(1)
TSX-V: AVG
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Ticker Symbol TSXV: AVG Issued and Outstanding Shares 57.0 M Warrants Outstanding 6.8 M Options Outstanding 3.5 M (1) Fully Diluted Outstanding 67.4 M Management, Directors & Insider Ownership 40% Debenture (May, 2019) $200K 52 Week Range $0.20 - $0.70 Market Cap $15.0 M
(1) options granted with exercise price primarily at $0.60 – premium to market
Went Public in Dec 2017
Ø District scale property >15 km gold mineralized corridors Ø Numerous high grade occurrences: 5 g/t Au to > 25 g/t Au ± base metals with an expandable NI 43-101 resource base of ~300 Koz Au Ø Analogous setting to the large deposits in the Tintina Belt (Interlayered sediments and mafic volcanics intruded by Cretaceous to Tertiary intrusions) Ø Potential to host the higher-level systems like Donlin Creek (+ 39 Moz) to deeper-level systems like Fort Knox (+ 8 Moz), Dublin Gulch (+ 6 Moz) and Pogo (+ 5 Moz)
Ø Within a mining district that has produced +20 Moz Au Ø Directly on trend to the southwest of the 380,000 oz Au/year (0.45 g/t Au) producing Fort Knox Mine (Kinross) Ø Mineralization style analogous to Fort Knox, with grades > 1.0 g/t Au
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TSX-V: AVG
Alaska
> 25.0
Golden Zone Amanita
Ø Prime Location with Excellent Access
Ø Underexplored Property Package
Ø > 15 km Mineralized Trend with multi-gram high-grade Au mineralization
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TSX-V: AVG
JJ Zone: 6.14 g/t Au, 5.41 g/t, 3.83 g/t, 2.08 g/t Au Copper King to S Long Creek Trend: High-grade Au + base metals Breccia Pipe Deposit + 300 Koz Au 15 km Mineralized Trend Cohio: 9.17 g/t Au, 15.0 g/t Au, 111.0 g/t Au
Ø Golden Zone Corridor (> 12 km mineralized trend)
southwest of Breccia Pipe Deposit, with up to +6 g/t Au
Ø Long Creek Corridor (> 3 km mineralized trend)
mineralized intrusive:
7 Surface Gold Samples G
d e n Z
e C
r i d
Long Creek Corridor
Silver Dikes Corridor
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TSX-V: AVG Long Creek S Long Creek Copper King Impedance Phase Data & Magnetics
Magnetic Low Outline
CSAMT: 2D Inversion Model Profile Interpreted as an Intrusive Related Event
Ø 2018 CSAMT targets coincident with airborne magnetic lows – indicative of destruction of magnetic minerals by intrusive event Ø CSAMT targets also coincident with 1996 airborne low resistivity
Copper King Long Creek S Long Creek Looking Southeast
Ø +3 km long system Ø Mineral occurrences appear to be part
magnetic lows Ø Multiple Coincident Data Filters Point to Shallow Intrusive Related Events
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TSX-V: AVG Impedance Phase Data
Copper King Long Creek
CK18-1 CK18-3 CK18-2
Magnetic Low Outline
LC18-3
3.0 m of 16.08 g/t Au, 50.6 g/t Ag, 0.78% Cu
4.8 g/t Au, 106 g/t Ag, 1.4% Cu 1.44 g/t Au, 87.5 g/t Ag, 3.29% Cu 1.51 g/t Au, 67 g/t Ag, 1.05% Cu
CK18-1 CK18-3 CK18-2
Significant Au & Base Metal Mineralization in Skarns, Hornfels and Related Intrusive Stockwork Mineralization
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TSX-V: AVG CK18-2 : altered stock work porphyry dike at 25 m with Mo, cpy & py
Semi-massive sulphides Stockwork in granite porphyry 9.1 m @ 8.71 g/t Au, 80.8 g/t Ag, 3.57% Cu Adjacent mineralization of 4.8 g/t Au, 106 g/t Ag, 1.4% Cu
4.8 g/t Au, 106 g/t Ag, 1.4% Cu 1.44 g/t Au, 87.5 g/t Ag, 3.29% Cu 1.51 g/t Au, 67 g/t Ag, 1.05% Cu
CK18-1 CK18-3 CK18-2
Widespread Mineralization Proximal to a Quartz-eye Porphyritic Granite
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TSX-V: AVG Long Creek Prospect S Long Creek Prospect
T18-05: 3.0 m of 16.08 g/t Au, 50.6 g/t Ag, 0.78%Cu
Long Creek S Long Creek Copper King
Impedance Phase Data & Magnetics
Magnetic Low Outline
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Copper King to S Long Creek Trend Breccia Pipe Deposit Cohio
Ø New Discovery within the Golden Zone Corridor; 5 km southwest of the Breccia Pipe Deposit Ø 6 km northeast of the Cohio prospect reported to have gold showings highlights of 111.0 g/t Au, 15.0 g/t Au & 9.7 g/t Au TSX-V: AVG
Py-rich Sediment; Values up to 6.14 g/t Au Multiple Zones of Gossanous Pyrite –rich Sediments
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Ø Multiple sulphide-bearing gossan zones, vertical dipping ranging from 0.5 m to +3.0 m Ø Sulphides include disseminated to semi-disseminated pyrite, chalcopyrite and arsenopyrite within siltstones/sandstones, intruded by porphyritic dikes Ø Preliminary Dimensions: 300 m vertical exposure by 150 m width and 450 m – 500 m strike length Ø Early highlight assay results include: 6.14 g/t, 5.41 g/t, 3.83 g/t, 2.08 g/t Au 150 m 300 m vertical exposure from top of mountain peak (not seen here) to valley floor
Looking down into the valley floor
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TSX-V: AVG
West Breccia Area 14.64 g/t Au, 355 g/t Ag
Mayflower Trend:
BLT Shear - Open > 1 km 21.6 m @ 1.46 g/t Au 2.1 m @ 2.4 g/t Au 10.5 m @ 1.54 g/t Au 6.1 m @ 8.31 g/t Au (Trench)
GZ18-04 GZ18-02 & 03 GZ18-01
Breccia Pipe Deposit
17.7 m @ 2.12 g/t Au 17.7 m @ 1.04 g/t Au;
107.3 m @ 4.76 g/t Au 21.6 m @ 1.66 g/t Au;
Conceptual Pit Outline
Breccia Pipe Deposit*
Indicated Resource of 267,400 oz Au
(4.2 million tonnes of 1.99 g/t Au)
Inferred Resource of 35,000 oz Au
(1.4 million tonnes of 0.83 g/t Au)
2018 Drilling
Ø Mayflower Trend (=350 m trend adjacent to the Breccia Pipe Deposit) § Holes GZ81-01 to GZ18 – 03 § Still open internally, southeast to hole GZ17-05 and to the northeast Ø Breccia Pipe Deposit § GZ18-04 – testing down plunge extension of Breccia Pipe & adjacent porphyry intrusive: New breccia discovery (West Breccia Pipe) 400 m west of Breccia Pipe Deposit - yet to be drill tested
* See Appendix for details
§ 2016 Resource. Open–pit mining (3.6 strip ratio) and conventional milling and processing. Majority of the Au mineralization appears free milling. Note: Base metals not analyzed. § Assay capping values : Porphyry- 20 g/t Au, Silica Breccia- 25 g/t Au, Sulphide Breccia- 35 g/t Au; Porphyry- 60 g/t Ag, Silica Breccia- 130 g/t Ag, Sulphide Breccia- 200 g/t Ag, Shear Zone- 40 g/t Ag. § Blocks within a Whittle shell generated using a $1,350/oz gold price are classified as Inferred. Blocks outside of the floating cone are not classified.
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Proximity to Fort Knox Mine
Ø Excellent access and infrastructure - approximately 15 km northeast of Fairbanks city limits Ø Adjacent and contiguous with Fort Knox that produces approx. 380,000 oz/yr at an avg. grade of approximately 0.45 g/t Au Ø Intrusion Related Gold System, structurally controlled, sheared sheeted vein/stock work mineralization similar to Fort Knox Ø Proterozoic schists and amphibolite intruded by Cretaceous age granitoid Ø The main mineralized zone (Tonsina Trend) is approximately 5.6 km southwest of Fort Knox in the same NE trending corridor
TSX-V: AVG
Tonsina Mineralized Trend
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Selected Drill Holes and Grab Samples
10.57 m @ 1.08 g/t Au 1.52 m @ 1.13 g/t Au 3.05 m @ 0.48 g/t Au 1.52 m @ 2.23 g/t Au 3.05 m @ 14.04 g/t Au 13.72 m @ 3.02 g/t Au 6.10 m @ 1.0 g/t Au 3.05 m @ 1.39 g/t Au 4.57 m @ 2.3 g/t Au 3.05 m @ 0.96 g/t Au
Drill Hole Collar Gold Soil Anomaly Area (40 to >500 ppb) 26.4 g/t Au 64.4 g/t Au 40.6 g/t Au 103 g/t Au
Gold (g/t)
! <0.25
0.25-1.0
! 1.0-5.0
5.0-20.0
!
#>20.0
!
Ø Very limited and unevenly distributed drilling within the 1.6 km long Tonsina Trend Ø 30 of 39 holes intersected >1.0 g/t Au over 1.5 m: 6 holes with VG Ø Drill tested to less than 150 m depth, all oxide mineralization
Ø Several other untested targets on the property discovered from prospecting (in blue)
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Reno Las Vegas
Walker Lane Trend B a t t l e M t
u r e k a T r e n d Carlin Trend Getchill Trend H u m b
d t T r e n d
Elko
Independence Trend
Past & Present Au Producers ! Carlin Trend: +100 Moz ! Battle Mt/Eureka Trend: +50 Moz ! Walker Lane Trend: 50 Moz
100 km
Jungo Dome Hill
Project Jungo Dome Hill Ownership 100% 100% Claims / Size 235 claims (1,960 ha) 78 claims (600 ha) Target 5 km long gold-copper system with mineralization in a magmatic-hydrothermal environment between the Hycroft (25 Moz Au) and Sleeper (7 Moz Au) deposits Island arc, intrusion-related system with structurally controlled Au-Cu mineralization along NNE trending structures +6 km of known high sulphidation vein systems, all open and untested Numerous high-grade grab samples: 45.7 g/t Au, 31.8 g/t Au, 27.5 g/t Au Previous Drilling 4.3 m @ 1.7 g/t Au, 57.7 g/t Ag and 2.7% Cu 1.5 m @ 2.5 g/t Au, 71.6 g/t Ag and 0.7% Cu 12.2 m @ 1.3 g/t Au, 28.6 g/t Ag and 0.7% Cu 4.6 m @ 4.7 g/t Au 1.5 m @ 9.7 g/t Au
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Management Experience Achievements
David Anderson, B.Sc. P.Geo, Chairman & CEO, Director +35 years Geophysicist with international experience in mining sector as both a consultant and in corporate roles Founding shareholder in Quantec Geoscienes Ltd, QGX Ltd., and Antares Minerals Inc. QGX and Antares were public companies subsequently sold to major mining companies after successfully discovering economic mineral
assistance for women and children in underprivileged situations. Former executive positions and currently an entrepreneur who continues to identify and invest in junior mining exploration companies that are focused on gold and copper opportunities. Donna R. McLean, BA CFO +25 years International experience with junior and intermediate exploration companies Specializing in the areas of financial reporting, controls and administration. She has held the positions of Chief Financial Officer and Controller for several mineral exploration companies, including Intrepid Mines Ltd., Metalla Royalty & Streaming Ltd. (formerly Excalibur Resources Ltd.), Firestone Ventures Inc. and Aurania Resources Ltd.
financial and administrative services to established and emergent businesses, operating in a variety of sectors and industries.
PhD, P.Geo VP Exploration +35 years International exploration experience and is considered an expert in IOCG, epithermal Au and VMS deposit types. Integral to the acquisition of the Golden Hills gold-rich VMS deposit, Mongolia, that is presently being developed. Co-founder and principal with GeoVector Management Inc and has acted as VP Exploration for public and private companies.
Leading Technical Advisors Experience Achievements
Alexander Davidson, M.Sc + 35 years Experience in designing, implementing and managing gold and base metal exploration and acquisition programs throughout the world. Was Barrick Gold Corporation’s Executive Vice President, Exploration and Corporate Development responsible for international exploration programs and corporate development activities. Received the Prospector of the Year Award (2003) for his team's discovery of the Lagunas Norte Project and the Dufresne Award (2005) for exceptional achievement and distinguished contributions to mining exploration in Canada from the Canadian Institute of Mining, Metallurgy and Petroleum and the Charles F. Rand Memorial Gold Medal (2019) from the American Institute of Mining, Metallurgical, and Petroleum Engineers for achievement in mining administration, including metallurgy and petroleum.
TSX-V: AVG
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Experience Achievements
David Anderson B.Sc. P.Geo, Chairman & CEO, Director See Management James Polson MBA Director +20 years Mining service industry and studied Mechanical and Mechatronic Engineering CEO of a Hong Kong based Construction and Mining Services company and board member of the Hong Kong Construction Industry Council Training Association Civil Engineering Sub-Committee. Was a co- founder of AIDD Group which went on to become leading international mining service group in the North East and Central Asian region. Founding member of MISA (Mineral Industry Safety Association) in Mongolia. Awarded the Emerging Leaders award for Entrepreneurship from the IVEY School of Business in 2011. Douglas J. Kirwin, B.Sc., M.Sc., FSEG. +45 years International exploration
positions with Anglo American, Amax, Indochina Goldfields and Ivanhoe Mines Limited. Member of the joint discovery team for the Hugo Dummett deposit at Oyu Tolgoi in Mongolia, Other mineral discoveries made by his exploration team include the Jelai-Mewet and Seryung epithermal deposits in northeast Kalimantan, the Eunsan-Moisan gold mines in South Korea, the Moditaung gold deposits in Myanmar and the Merlin Re-Mo deposit in Australia. Co-recipient of the PDAC inaugural Thayer Lindsley medal awarded for the most significant international mineral discovery in 2004. Dino Titaro, M.Sc., P.Geo Director +35 years International experience in mineral exploration, mining
Co-discoverer of 2 major deposits, a gold-copper and gold-sliver deposit (currently in production) totalling 8.4 million oz of Au and 1.4 billion pounds of Cu. Former executive positions and current board
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All properties located within top tier, mine friendly, politically stable jurisdictions
All properties hosted within well known, well endowed mineral terranes
Multi-million ounce gold potential at each property, with possible nearer term production within the district scale land package of the Golden Zone Property, Alaska
Backed by Industry Experienced Leaders with a track record of success and multi-faceted technical & business expertise
Management, Directors & Insiders vested with approx. 40% of the outstanding shares
TSX-V: AVG
David Anderson, Chairman & CEO, Director 403 688 8863 Email: danderson@avidiangold.com Avidian Gold Corp. 18 King St East, Suite 902 Toronto, Ontario Canada M5C 1C4 Tel: +1 647 259 1786 Fax: +1 647 259 1785 e-mail: info@avidiangold.com
Ø Golden Zone (100%) § 105.5 sq km § Avidian owns 29.4%
balance of 70.6% for US $875,000 in cash ($225K paid to date) & US $1,125,000 of stock ($325K paid to date) over a 7 year period (to 2023), plus a work commitment
commitment already completed) § 3 % NSR of which 1.4% can be bought out for US $1,400,000 at Avidian’s option and an additional 1.6% for US $1,600,000 at vendors option on 59.9 sq km and 1% NSR on 12 sq km. § Holding Cost of approx. US$ 35,000 per year (lease and claims rentals costs & general overhead costs) Ø Amanita (100%) § 88 Claims (14.6 sq km) § 3% NSR that can be bought for US $1 million per % point § Lease payments totaling US $1,235,000 spread out over 15 years (starts at $15,000 in 2016, $25,000 in 2017, $30,000 in 2018 and escalates $10,000 per year to the 15th year) with a US $3 million buyout. § Holding Cost/land fees of approx. US $25,000 per year
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Ø Jungo (100%) § 235 Claims (19.6 sq km): NSR:2% NSR on 35 Claims § Holding Cost/land fees of approx. US $40,000 per year Ø Dome Hill (100%) § 78 Claims (6 sq km): 2% NSR on 20 acres, buyout of 1% for US $250,000; § Holding Cost of approx. US$17,000 per year (includes annual lease payments on 40 acres of US $2,000 per year) TSX-V: AVG
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Shallow level systems
sills, and dikes Peripheral
Intrusion-hosted
Skarn - Replacement Distal Veins Au – Ag – Cu – Bi ± Pb - Zn Sheeted/Stockwork Veins Breccia - Sheeted Veins ~1 km Distal Veins Au – Ag - As – Bi ± Zn, Cu, Pb Sheer Zone Veins
Greisen - Disseminated Possible Mineralized Intrusives
“All 3 mineralization types found on the property, potential for large multi-million Au deposit(s)”
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0.5 g/t Au Cut-off (as of Nov 2016)
Category Deposit Type Tonnes Au Ag
Grade (g/t) Ozs Grade (g/t) Ozs
Indicated
Porphyry 1,811,000 0.89 52,200 3.2 186,300 Silica Breccia 369,000 0.93 11,100 8.64 102,500 Sulphide 2,007,000 3.17 204,300 17.19 1,109,000 TOTAL 4,187,000 1.99 267,400 10.38 1,397,800
Inferred
Porphyry 142,000 0.75 3,400 1.84 8,400 Shear Zone 1,216,000 0.83 32,600 2.65 103,400 TOTAL 1,353,000 0.83 35,900 2.56 111,400
§ Open–pit mining (3.6 strip ratio) and conventional milling and processing. Majority of the Au mineralization appears free milling. Note: Base metals not analyzed. § Assay capping values : Porphyry- 20 g/t Au, Silica Breccia- 25 g/t Au, Sulphide Breccia- 35 g/t Au; Porphyry- 60 g/t Ag, Silica Breccia- 130 g/t Ag, Sulphide Breccia- 200 g/t Ag, Shear Zone- 40 g/t Ag. § Blocks within a Whittle shell generated using a $1,350/oz gold price are classified as Inferred. Blocks outside of the floating cone are not classified.
High Grade Feeder Not Fully Tested
GZ18-4
4 5 2 m
Proposed
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Operation Fort Knox (Kinross) Amanita Contained Gold +8 Moz Gold Undetermined Geology Gold in Cretaceous Granite Gold adjacent to or on top of interpreted buried granite at Tonsina Trend Corridor Within Corridor of Two NE Structures Along Strike in Same Corridor Mine Type Open pit mine Known gold mineralization all in open pit-able setting Host Rock Extensive Biotite Hornfels Aureole Extensive Biotite Hornfels Aureole Indicator Gold occurs with Bismuthinite, Scheelite, Arsenopyrite and Quartz-feldspar Veins Gold occurs with Bismuthinite, Scheelite, Arsenopyrite and Quartz-Feldspar Veins Metallurgy Model shows inner Au-Bi, halo of Sb-As Soils show inner Au-Bi, halo of Sb-As Stage Present grade of approx. 0.5 g/t Au; Cut-off Grade 0.16 g/t Au 30 of 39 drill holes intersected >1.0 g/t Au over 1.5 m: VG reported in several holes and seen in local float
TSX-V: AVG