Project Advancement - "Exploration Timed with Market Conditions to Preserve Value"

Gnome Project, a 100% owned Cobalt/Zinc exploration property encompassing four (4) mineral claims (1,996 hectares)  in the heart of an area that is home to both the Cirque and the Cardiac Creek Deposits is located 35 kilometers SE along trend from Teck Resources Limited ("Teck") & Korea Zinc's ("Korea Zinc") joint ventured ("T-KZ-JV" - 50% each) Cirque deposit ("Cirque Deposit") and 15 kilometers south east from ZincX Resources ("ZincX") Cardiac deposit ("Cardiac Creek Deposit").  

The Cirque Deposit, the Cardiac Creek Deposit, Pie, Cirque East and Yuen properties, the Cirque Property and the Gnome property are all in the same geological belt, NE of Williston Lake, in northeastern British Columbia, Canada, within a north-northwest-south-southwest-oriented geological trend in the southernmost part of the Kechika trough (the "Kechica Trough") of the regionally extensive Paleozic Selwyn basin (the "Selwyn Basin").

The Selwyn Basin is already recognized as of the most prolific sedimentary basins in the world for the occurrence of sedex zinc-lead-silver  and strataform barite deposits discovered in the heday of northern B.C., Canada, Pb-Zn-Ag exploration (late 1970's and early 1980's).

The Company will test the property through deeper drilling when the adjacent deposits proceed towards build out to production.

Raj Chowdhry, the founding director, Chairman, CEO and President stated, “Although the 2019 drilling results did not meet our expectations of identifying a shallow mineralization possibly amenable to open pit mining, the discovery of a new target area and the remaining targets in other areas identified to date on the Gnome property continue to present a good chance of a discovery for cobalt and zinc at shallow or deeper depths. The Company intends to advance this project in congruence with market conditions and the timing of when the neighboring projects (Cirque & Cardiac Creek deposits), specifically the Cardiac Creek deposit is permitted for possible production."

The Ni-43-101 Technical  Report (March 5, 2020) is provided in the document library section of the website.

With all deposits in the region having been discovered only through deep drilling (350m or more), and since the Gnome property comparatively slopes down in elevation, the Company wanted to test the property only through a relatively shallow hole (80m true depth).  

As such, the Company has drill tested only area C with a shallow hole only, and believes that a deeper hole and exploration on the other six areas is warranted.

The 2019 exploration program also included the drilling of one 140m hole (true depth of 80m) (Azimuth 270, dip -50, location: 6345164N, 406023E on NAD 83 Zone 10) to test for shallow targets in Area C. 

Although the drill hole intersected favourable lithological unit of Gunsteel Formation comprising of grey to black carbonaceous shales with 1-3% sulphides, the assay results indicated no significant anomalous values of target metals.

With the inclusion of Area G, seven potential target areas to date have been identified on the property where topsoil has shown limonitic and hematitic alteration with high nickel, cobalt, manganese and zinc mineralization (see Figure 1). The Company has drill tested only Area C with a shallow hole, and believes that a deeper hole and exploration on the other six areas is warranted.

British Columbia Geological Survey Information Circular 2015-12 

 The British Columbia Ministry of Energy and Mines MINFILE database contains 4510 zinc occurrences; of these occurrences, 589 list zinc as the primary commodity. There are 569 past producers, and one recent producer, Myra Falls (092F 330). B.C.’s largest producer was the Sullivan Mine (082FNE052), which yielded nearly 8 million tonnes of zinc over 100 years of production. Global production of zinc in 2014 was approximately 12 million tonnes. Most (60%) is used for galvanizing steel, 15% for zinc based alloys used in die casting, 14% for brass and bronze, 8% for compounds containing zinc oxide or zinc sulphate, and most of the remainder is used in other alloys (source: International Zinc Association). View Zinc in British Columbia Geological Survey Information Circular 2015-12 

The following are applicable and form part of the information provided above

Note 1:There can be no assurance that the Company will obtain similar results on the Gnome Property. The PEA is considered preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral resources that are not mineral reserves have not yet demonstrated economic viability. Due to the uncertainty that may be attached to mineral resources, it cannot be assumed that all or any part of a mineral resource will be upgraded to mineral reserves. Therefore, there is no certainty that the results concluded in the PEA will be realized. Mineralization hosted on the Cirque and Cardiac Creek Properties is not indicative of the mineralization hosted on the Company’s Gnome Zinc Project at its current stage of exploration. 

Note 2:  "Qualified Person" information is provided, as required by regulatory authorities, in the "Disclaimer" section of this website under the heading "Technical Information".