FG Gold

British columbia, canada

The 100% owned FG Gold project is located in the Cariboo region of British Columbia and is easily accessible by gravel road. With $15 million already spent, the property demonstrates a promising mix of high and low-grade gold ribbon veins in an orogenic setting; and porphyry style mineralization on the West and NW boundary of the Main Zone.

Primary MINERALIZATION present at FG GOLD:

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376,000 Oz

M&I*

634,900 Oz

INFERRED*

50,000m

DRILLED

402

CORE HOLES

The 100% owned FG Gold project is adjacent to and on strike with a large, NW-SE trending gold-bearing zone that includes the Quesnel River (“QR”) and the Spanish Mountain projects to the NW. The property demonstrates a mix of high and low-grade gold ribbon veins in an orogenic setting; and porphyry style mineralization NW of the Main Zone.

FG Gold is easily accessible by gravel road.

To date, over $15.0 million of exploration work has been completed on FG Gold, establishing a Measured and Indicated resource of 376,000 ounces of gold at an average grade of 0.776 g/t (using a 0.5 g/t cut-off), and an Inferred resource of 634,900 ounces of gold at an average grade of 0.718 g/t (using a 0.5 g/t cut-off). Mineralization has been outlined over a 3 km strike length, and additional mineralization could extend along an interpreted 10 km strike length. Continuity of gold mineralization is demonstrated along strike to the northwest, with widths of approximately 30 meters. There is potential that high grade intercepts of mineable widths underground could be intercepted and proven with additional close spaced surface drilling.

Five key zones of mineralization (NE Zone, Main Zone, SW Limb, Grouse Creek, Frasergold Creek - below) have been identified along a 10km strike length of the sedimentary horizon. Historical drill results in these zones ranges up to 252 g/t Au (hole 87054,32-32.9m).

 

technical information

Area Map

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Property Description & Location

The FG Gold Property consists of 33 claims, totaling 10,400 ha, in the eastern Cariboo region of central British Columbia, approximately 100 km east of Williams Lake in the Cariboo Mining Division. The claims straddle the MacKay River valley and are centered at approximately 52° 18’N and 120° 35’ W on National Topographic System (NTS) map sheet 093A07 (1:20,000 BCGS map sheets 093A027, 093A028, 093037 and 093A038).

History

The project was originally investigated in the 1960’s and 1970’s as a copper prospect by AMAX, Rio Tinto and Noranda. Geochemical sampling indicated the presence of anomalous copper in several areas of the property with outcrop sampling, several trenches and a shallow diamond drill hole demonstrating copper mineralization of 0.05% to 0.2% in the outer pyritic halo and grab samples containing up to 3.5% copper.** Eureka Resources Inc. had more recently focused on gold mineralization demonstrated in the Main, Northwest and Frasergold Creek Zones, bounded by the MacKay River to the east.

The gold resource and the majority of drilling has focused on the Main Zone, with anomalous gold in soils highlighting extensions to the NW and SE of the Main Zone. The Main Zone near surface resource consists of 376,000 oz Au M&I (ave. grade 0.78 g/t) and Inferred resources of 634,900 oz Au (ave. grade 0.72 g/t)* and demonstrates continuity of gold mineralization along strike to the northwest, with the width of the zone of interest being approximately 30 meters. There is potential that high grade intercepts of mineable widths underground could be intercepted and proven with additional close spaced surface drilling.

Rio Tinto, 1974:

“The Eureka copper prospect has characteristics similar to those of a typical Northern Cordillera porphyry copper deposit. Sampling has indicated a large area (4,000’ x 800’) to contain from 0.13% Cu to 0.44% Cu, and alteration studies indicate that this zone could be as much as 6,000’ long, the potential for finding in excess of 150,000,000 tons of porphyry copper ore is excellent.”**

The first record of work being conducted in the vicinity of the FG Gold property for gold is in the late 1970s, initially attracted to historic references to the placer gold potential of the region. Preliminary soil and rock geochemical survey revealed a 10 kilometer long zone containing anomalous gold values from soil samples that was thought to have a stratigraphic control. In 1983 Eureka acquired the property and in the following years, rock and soil geochemical sampling, trenching and bulk sampling, electromagnetic, I.P. and magnetic surveys, reverse circulation and diamond drilling and metallurgic testing was completed.

It is estimated that over $15 million has been expended on the exploration of the FG Gold property. A total of 49,691 meters of drilling in 402 holes had been completed on the property, along with 294 meters of underground drifts to provide access for bulk sampling and metallurgical testing.

Programs since 2007:

Mineralized Zones interpreted by Eureka Resources prior to KORE staking and data compilation.

The work program conducted in 2007 included legal surveys, airborne photogrammetric mapping and generation of colour orthophotos, trench sampling, underground channel sampling, adit rehabilitation, underground bulk sampling and a drill program laid out to test five previously outlined zones of interest, including the Northwest Zone, Main Zone, the Grouse Creek West Zone, the Grouse Creek East Zone and the Frasergold Zone. Drilling focused on the Main Zone and geochemical silt, soil and rock sampling was performed at a number of locations distal to the Main Zone.

Summary of Historic Drilling on the FG Gold Property

In 2011 a geochemical sampling program was undertaken over three gridded areas; the Kusk Grid between Frasergold Ck. and the upper MacKay River, Eureka Bowl Grid in the vicinity of the Northwest Zone and the 18ppm Au Grid in the lower section of Eureka Brook. In total 27 line km were sampled resulting in 565 soil samples, 7 rock grab samples and 6 silt samples.

In the spring of 2015 Eureka completed 4 line km of geochemical soil sampling in the area of the 18ppm Au Grid resulting in 77 soil samples.

Historic Drill Results

Most of the holes were shallow and concentrated on defining the known mineralized areas. Drilling has been conducted along the known 10 kilometre strike length of the mineralized zone, but drill hole density is sparse outward from the key zones.

Five key zones of mineralization have been identified along a 10km strike length of the sedimentary horizon. Gold mineralization within these zones ranges from a minimum value of 0.15g/t Au to an arbitrary established upper level of 31.10g/t Au, with the highest reported gold grade being 252g/t Au. The zones are concentrated around the Main Zone, shown below. Compilation of historic work by KORE has resulted in the discovery of a potential new porphyry zone, the Nova Zone.

 Updated Property Boundary, Geology, Main Zone and Nova Zone

Updated Property Boundary, Geology, Main Zone and Nova Zone

Historic Drilling 1983-1993, 2007-2008.

Main Zone Soils and Drill Collars

Geologic Setting & Mineralization

Regional Quesnel Terrane.

The FG Gold Property is placed in the class of orogenic style of mineralization. World class gold deposits of this type in metamorphic terranes are generally 2 to 10 kilometers long, contain 2 - 5% sulphide minerals and have gold to silver ratios from approximately 5:1 to 10:1. Examples of this deposit type include Kirkland Lake, Hollinger-McIntyre, Campbell-Red Lake and Bralorne-Pioneer camps. The deposit type has worldwide significance, accounting for 12 of the 32 gold camps in the world having production or resources exceeding 600 tonnes of gold or approximately 19 million ounces (Rhys and Lewis, 2004). There are at least two other similar gold occurrences along the eastern margin of the Quesnellia terrane in central British Columbia; at Spanish Mountain, about 54 km to the northwest, and at Hixon, about 180 km northwest of the FG Gold property. The Spanish Mountain occurrence is currently being explored and developed by Spanish Mountain Gold Ltd. The main mineralized zones consist of gold-bearing veins and stockworks in a pyritic and graphitic shaley siltstone.

This occurrence differs in at least two respects from that at FG Gold; one, is that strong carbonate-silica-pyrite alteration, described as listwanitic by Bloodgood (1990), is pervasive. The second is that mineralization probably post-dated the regional metamorphism (Bloodgood, 1990).

The table above outlines the characteristics of the FG Gold deposits as well as they are known.

The FG Gold property straddles the boundary between two major tectonic belts of the Canadian Cordillera: the Omineca Tectonic Belt lies to the east of the property and the Intermontane Belt on the west and central portions of the property. Three regional tectonostratigraphic terranes are present; Kootenay, Slide Mountain and Quesnellia terranes. The Omineca Tectonic Belt is noted for its prevalence of gold and tungsten mineral occurrences such as the Barkerville gold mining camp to the north. The Quesnellia terrane is noted for a prevalence of copper, gold and molybdenum mines and showings, such as those at Highland Valley, Boss Mountain, QR and Cariboo Bell - Mt. Polley (Panteleyev et al, 1996). The dominant structures in the region are the northwest trending, shallowly plunging, Eureka Syncline and Perseus Anticline (Campbell, 1971).

The property is located within the middle to upper Triassic Quesnel River Group and is underlain by a thick sequence of dark grey to black; lustrous phyllites with iron-bearing carbonate porphyoblasts, locally referred to as the “knotted phyllite”. The knotted phyllite contains minor intercalations of grey phyllite, thin lenses and layers of light grey massive to phyllitic siltstone and thin lenses of grey silty limestone. Underlying this sequence is a grey silty and locally calcareous phyllite. At the base of the knotted phyllite unit in the Northwest extension area of the FG Gold property lies a unit of pale carbonate-quartzsericite-chlorite schist which are possibly metavolcaniclastics.***

Gold mineralization at the FG Gold property is classified as an orogenic lode-gold deposit type. Lodegold deposits generally occur in metamorphic terranes delineated by a regional fault system. The deposits are often regularly spaced along a zone hundreds of kilometers long, although economic ores may only be present over a short distance. Many of the most productive ore bodies of this type exceed one kilometer in vertical extent with little change in gold grade with depth (Goldfarb et al, 1986). There is a spatial association of this type of gold deposit with greenschist grade of metamorphism, possibly due to the large fluid volume required during the amphibolite and/or greenschist transition (Goldfarb et al, 2005).

Gold mineralization on the FG Gold property occurs within, or is spatially associated with, sets of white quartz + Fe-carbonate + muscovite + pyrite veins that are developed in the knotted Fe-carbonate porphyroblastic carbonaceous phyllite unit. The veins form complex sets and networks that are developed in concentrated zones several meters to tens of meters wide. Zones of veining are generally stratabound and overall have shallow to moderate westerly dips. Apart from the presence of the carbonate porphyroblasts in the knotted phyllite unit and widespread Fe-carbonate alteration of siltstone and sandstone lamina which extend well outside the immediate areas of veining, no visually obvious alteration affects the host phyllitic sediments at FG Gold in areas of gold mineralization, although slightly elevated disseminated pyrite content was observed near some veins (Rhys, 2007).

Two general styles of veining are recognized in mineralized areas at FG Gold; ribbon veins and dilational veins (Rhys, 2007).

Resource

Table: Summary of FG Gold resource at a 0.5 g/t Au cut-off*:

Size (tonnes)Grade (g/t)Au (oz)SourceAu Cutoff (g/t)
Measured5,600,0000.812145,0002015 Resource0.50
Indicated9,570,0000.755231,0002015 Resource0.50
Total M&I15,170,0000.776376,0002015 Resource0.50
Inferred27,493,0000.718634,9002015 Resource0.50
Total Inferred27,493,0000.718634,9002015 Resource0.50

Work Program

Standby for news. Updates coming soon!

Disclaimers

* The information is summarized from the Technical Report entitled “NI43-101 Technical Report, Frasergold Exploration Project, Cariboo Mining Division B.C.” dated July 20, 2015 and amended July 27, 2015 and prepared for Eureka Resources Inc. by K.V. Campbell and G.H. Giroux of ERSi Earth Resource Surveys Inc. and Giroux Consultants Ltd. in accordance with National Instrument 43-101.

The estimate of gold resources was done by Vincent Campbell, Ph.D., P.Geo. who is considered a Qualified Person by the definitions and criteria set forth in NI 43-101. There was no affiliation between Mr. Campbell and Eureka except that of an independent consultant/client relationship.

The resources stated conform to the definitions adopted by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2014, and meet the criteria of those definitions, where:

·       A Mineral Resource is a concentration or occurrence of natural, solid, inorganic or fossilized organic material in or on the Earth’s crust in such form and quantity and of such a grade or quality that it has reasonable prospects for economic extraction. The location, quantity, grade, geological characteristics and continuity of a Mineral Resource are known, estimated or interpreted from specific geological evidence and knowledge.

·       A ‘Measured Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, physical characteristics are so well established that they can be estimated with confidence sufficient to allow the appropriate application of technical and economic parameters, to support production planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration, sampling and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough to confirm both geological and grade continuity.

·       An ‘Indicated Mineral Resource’ is that part of a Mineral Resource for which quantity, grade or quality, densities, shape, physical characteristics can be estimated with a level of confidence sufficient to allow the appropriate application of technical and economic parameters, to support mine planning and evaluation of the economic viability of the deposit. The estimate is based on detailed and reliable exploration and testing information gathered through appropriate techniques from locations such as outcrops, trenches, pits, workings and drill holes that are spaced closely enough for geological and grade continuity to be reasonably assumed.

· An ‘Inferred Mineral Resource’ is that part of a Mineral Resource for which quantity and grade or quality can be estimated on the basis of geological evidence and limited sampling and reasonably assumed, but not verified, geological and grade continuity. The estimate is based on limited information and sampling gathered through appropriate techniques for locations such as outcrops, trenches, pits, workings and drill holes.

** AMAX 1970 Geological and Geochemical Assessment Report #2662. Rio Tinto

*** The geology of the Frasergold property has been mapped in by Kerr Dawson & Associates (1981), G. Belik & Associates, 1984, Read (1988), Campbell (1989), Kerr and Campbell (1990) and Campbell et al (1991).