July 21, 2020
TO OUR VALUED SHAREHOLDERS
The Company has been receiving requests for information on the planned program for this summer on the Del Norte property. It has also received requests for updates on other properties as well. In this letter, I am going to address the questions for the Del Norte project in the short summary below:
Del Norte Project
The Company had an opportunity to farm into a highly regarded but underexplored gold-silver property in the Stewart area. The Company executed a farm-in agreement on this property in December 2019 and applied for drill permits in January 2020. With the Covid-19 virus, applications have been delayed but the drill permit is eminent.
Del Norte is a large property cut by three gold-bearing streams and featuring multiple styles of mineralization: vein, breccia, massive sulfide and porphyry. Each area in the Stewart area that has placer gold also has a mine/deposit associated with it. At Pretivm/Seabridge you have placer gold in Mitchell and Sulphurets creek that drains those properties; at the Premier and Big Missouri gold mines, you can find placer gold below them in the Salmon River; at the Red Mountain gold deposit, you can find placer gold below it in Bitter Creek. All three streams cutting across the Del Norte property contain placer gold: Nelson Creek, Porter/Del Norte Creek and Willoughby Creek. Nelson Creek was reportedly quite rich in placer, and placer mining was conducted by Cominco in the 1930's, with a fair amount of coarse gold reported. To date, the source of that gold has never been discovered.
Large areas of the Del Norte property have been weakly explored due to extensive ice and snow coverage. However, the rapidly receding ice has enabled better access to these areas which may host more mineralized zones in addition to those already identified. The attached map shows the various mineralized zones on the property. Drilling has taken place on the property in the period 1990 to 2018, with drilling mostly on the LG vein. Drilling for porphyry copper-gold has taken place in Del Norte Creek in the Hardpan mineral showings. Drilling for VMS deposits has taken place just to the east of the LG and LG Extension veins.
The presence of chalcedonic quartz, vuggy cavities, realgar, silver sulphosalts and electrum within LG vein and Kosciuszko zone unequivocally point to a low-sulphidation epithermal environment. Considering its epithermal origin, the LG vein shows remarkable horizontal and vertical continuity. Silver sulfosalts and native gold of the LG vein often occur within soft, black, graphitic matrix which fills interstices between breccia fragments. Mineralization in the Kosciuszko zone (K-zone) is similar to that for the LG vein except it is much wider and entirely in the sediments versus being at the contact with the volcanic-sediment contact for the LG zone.
Significant drill hole intersections from previous work includes the following:
|Area Tested||Previous Drill holes||Width (m)||Gold g/t||Silver g/t|
|SP zone||DDH 06-11||4.05||26.54||1208|
|SP zone||DDH 06-12||3.97||1.35||20.7|
|LG vein||DDH 05-02||15.54||6.47||346.02|
|LG vein||DDH 0-036||8.60||3.02||270.50|
|LG vein||DDH 05-05||4.27||4.48||476.45|
|LG vein||DDH 0-20||8.75||7.1||512.4|
The above assays are historical and have not been confirmed by the Company and are used for reference purposes. The Company believes that the results are an indication of the mineralization present in the property area.
The SP zone is farthest south being 400 m south of the K-zone which in turn is 450 m south of the results in DDD-05-02.
The Company plans to test the K-zone and the area between the LG vein and K-zone with the bulk of a 20,000 foot program in this area.
In addition the Company will conduct a surface sampling program over the Crackle zone prior to drilling. In the course of the program, the Company plans to sample numerous mineralized outcrops indicated in historic sampling.
A photo showing the K-zone mineralization is attached below:
Since 2002, no drilling has tested this exciting target. The zone is open to the north and south as well as depth. It occurs entirely in the sediments pictured here near the contact with felsic volcanic rocks. Drilling will occur from the east side (far side of photo) towards the viewer. Hole depths will likely be 200 m or more.