2021 Exploration Work - Georgia River

Following up on bonanza grade gold hits from 2020 drilling, the 2021 exploration program included a 2,155.5 metre diamond drill program on the Georgia Project.  Results from this year’s program include intercepts of 9.56 g/t gold over 9.30 metres, and 13.4 g/t gold over 1.02 metres. The Georgia Project is located on the Portland Canal tidewater, 16 kilometres south of the town of Stewart, BC, in the prolific Golden Triangle.

CEO, Bradley Rourke commented: “We are encouraged by the high-grade intercepts from our first drill program on the Georgia Project. Our drilling on Georgia this season tested a number of new theories on the structural geometry of the main vein system in and around the past-producing mine. The Georgia Project is one of 4 principal targets that we drilled during the 2021 field season, with the other three being the Scottie Gold Mine, Domino, and the rapidly advancing Blueberry Zone. We look forward to reporting on more than 11,000 metres of remaining drill results early in the new year.”

Drill highlights from the 2021 drill program on the Georgia Project

* True thicknesses of mineralized intercepts are undetermined

Table 1: Selected 2021 drill assay results (uncut) from the Georgia Project

The 2021 drill program tested the extent of the SW vein, following up on high-grade results from the 2020 program (Table 2), as well as assessing the extent of a related parallel structure (‘outboard vein’) that was intersected in 2020. The lack of differentiating features between the two veins complicates the distinction and separation of them when modelling and targeting. A comprehensive review of the oriented core measurements taken from the veins will be used to further assess the geometries of the veins, and will help to guide future drilling.

Figure 1: Plan view map of the Georgia Zone show the area drilled and key intercepts from the 2021 and historic drill programs.

About the Georgia Project

Exploration in and around the Georgia River Mine began in 1911 with the majority of work focused on the Bullion, SW, and Gem veins. The mine was put into production in 1937 with a head grade of 22.6 g/t gold. There was a hiatus in mining and exploration activities between 1939 and 1979. Between 1979 and 2003, exploration continued and included geochemical exploration and mapping, drill programs, as well as airborne magnetic and VTEM surveys. The gold mineralization largely occurs in a deformed quartz vein system hosted in volcanic and sedimentary rocks of the Stuhini Formation.

The most recent documented, unclassified historic resource estimate for the SW Vein of the Georgia River Mine was completed in 1990 (BC Assessment Report 1983) and estimated 276,403 tonnes of 27.6 g/t gold and 20.9 g/t silver. The estimate was based on 50 drill holes and considers a minimum mining width of 1.22 metres. The SW Vein historical estimate does not comply with CIM Definition Standards on Mineral Resources and Mineral Reserves as required by NI 43-101 and has no comparable resource classification. The reliability of the historical estimate is considered reasonable, but a qualified person has not done sufficient work to classify the historical estimate as a current mineral resource and the Company is not treating the historical resource as a current resource.

* True thicknesses of mineralized intercepts are undetermined

Table 2: Select historic drill results from the Georgia Project.