Silver Phoenix Resources, Inc. Alaska Mineral Property

Transcription

1 Silver Phoenix Resources, Inc. Alaska Mineral Property Tolstoi A Promising Silver-Gold-Copper Polymetallic Project Ready for Exploration and Drill-Testing in 2018 Introduction, Prospect History and Access Precious metal-enriched, polymetallic deposits associated with Late Cretaceous-to-early Tertiary igneous complexes form an important metallogenic region in western and southwestern Alaska. This region is known as the Kuskokwim Mineral Belt (KMB). The KMB is the western-most extension of the Tintina Gold Province, where Drill-indicated reserves and resources amount to at least 65 million ounces (2,020 tonnes) gold in 20 evaluated deposits. The KMB contains the giant Donlin Creek gold deposit, Alaska s largest primary lode gold deposit, with measured and inferred reserves totaling at least 33.7 million ounces (1,050 tonnes) gold. The Silver Phoenix Resources Tolstoi Claim Group in the Beaver Mountains occupies an important mineralized center within the Central KMB. Mineralization in the Beaver Mountains area has been known since the 1970s. After government agencies publicly released geologic mapping and anomalous geochemical data, Anaconda Minerals conducted exploration work there in the Beaver Mountains in but reduced their programs throughout Alaska in early Battle Mountain Gold Mining Company explored in the late 1980s but that firm also terminated their Alaska exploration program and left the 49 th State in No drill programs have been initiated for metallic prospects in the Beaver Mountains project area. From 2007 to 2017, Pacific Rim Geological Consulting, Inc. (PRGCI), contractor for Alaska Ventures, Inc., conducted claim assessment level sampling in the Tolstoi Claim Group. The Beaver Mountains is about 40 mi (60 km) west of McGrath, and 175 mi (280 km) southwest of Fairbanks, the transportation hub for Interior Alaska. Nearly 80 miles of secondary roads connect the Ophir mining district, just 10 miles (15 km) east of the Beaver Mountains, with Candle Landing on the Kuskokwim River near McGrath. There are RS2477 transportation corridors and access roads extending from Ruby on the Yukon River to Crooked Creek on the Kuskokwim River, which are maintained by the State Department of Transportation as part of the Interior Alaska secondary road network. A paved 5,500- foot-long runway at McGrath routinely services large aircraft up to Boeing 737 size; private businesses in McGrath provide for fuel, lodging and services for many exploration companies over the years, including the nearby Nixon Fork Mine. McGrath is one of Alaska s historic mining towns and has been very supportive of mineral exploration. Ownership, and Land Status Silver Phoenix Resources owns State of Alaska mining claims in the north-central Beaver Mountains that include most of the known, high grade, copper-silver-gold (tin) bearing prospects and occurrences. The claims as recorded are the Tolstoi Claim Group, after exposures of copper-silver-gold mineralization exposed at the head of Tolstoi Creek in the northern portion of the claim group. The entire Beaver Mountains upland is owned and managed by the State of Alaska. Geology, Deposit Classification, and Mineralization The Late Cretaceous Beaver Mountains volcanic-plutonic complex constitutes one of the largest igneous complexes in the KMB. Precious metal lodes with significant assay data include: 1) structurally controlled, copper-silver-gold deposits; tourmaline-copper-silver breccias pipes; and 3) stockwork style copper-silver deposits. The Tolstoi Claim Group constitutes a district play. Ore minerals include chalcopyrite, bornite, galena, scheelite, molybdenite, and tetrahedrite are accompanied by gangue minerals tourmaline, quartz, white mica, fluorite, and topaz. Lodes in the Tolstoi Claim Group represent intrusion-hosted, copper-silver-gold mineral deposit types that can be associated with porphyry copper systems.

2 Location Map showing Locations of Tolstoi Claim Group in Kuskokwim Mountains, the Lichen Prospect South of Denali Highway, and Principle Communities and Existing Transportation Infrastructure; from Series E Map of Alaska 2

3 The Tintina Gold Belt TGB) in Yukon Territory and Alaska. has been the focus of systematic mineral exploration and development for nearly 20 years. Drill-indicated reserves and resources in the TGB amount to at least 65 million ounces (2,020 tonnes) gold in 20 evaluated deposits. The Tolstoi Claim Group (location indicated by arrow) occurs in the western portion of the belt, which is known as the Kuskokwim Mineral Belt. Syenite Porphyry Tolstoi North Billy Goat Cirque Geologic map of the Beaver Mountains area, from Miller and Bundtzen, 1994; Showing locations of high-grade silver-gold-copper prospects Beaver Creek Ganes Creek West Lincoln Creek Geologic map of the Beaver Mountains area showing the Kuskokwm Group sedimentary rocks in green, the Beaver Mountains Volcanic Rocks in purple, the Beaver Mountains intrusive complex in red, and Quaternary glacial and fluvial sediments in yellow Historic metallic prospects from ARDF File descriptions are shown. 3

4 Stakes prepared for deployment in Tolstoi Claim Group Historically Known Significant Metallic Lodes in Tolstoi Claim Group The U.S. Geological Survey Alaska Resource Data File (ARDF) for the Iditarod Quadrangle describes a number of copper, silver and gold prospects mineralization from the Tolstoi Claim Group. Selected assay information is summarized below, which show values of up to 1,108 grams/tonne silver, 52.4 g/tonne gold, percent copper, 2,000 ppm bismuth, and 5.0 percent tungsten mainly from shear zones, veins and vein disseminate zones in the intrusive suite. Published selected assay data for selected prospects and occurrences in Tolstoi Claim Group Prospect Gold Silver Copper (percent) Tolstoi West Tolstoi East Syenite Porphyry NA Beaver Creek Ganes Cirque 1.4 1, West Lincoln Billy Goat Summary of Mineral Exploration Work Conducted on Behalf of Silver Phoenix Resources From 2007 to 2017, more than 400 rock and about 100 soil and stream sediment samples have been collected during annual claim assessment activities. Principle lode systems that have been mapped and sampled include: 1) Four (4) copper-silver-gold-bearing vein-fault systems within the Cirque structural zone; 2) gold-silver-arsenic-copper-lead mineralization within the Billy Goat structural zone; 3) gold-silver-copper mineralization within the Beaver Creek structural zone; 4) polymetallic mineralization in the Tolstoi Breccia pipe; 5) sampling of a low grade quartz-stockwork zone in an aureole surrounding the Tolstoi pipe, and 6) chip sampling in the West Lincoln Creek volcanic cap area. The map on page 5 illustrates the distribution of the zones identified and sampled. 4

5 Generalized Distribution of lode mineral zones within Tolstoi Claim Group general area investigated and sampled, Cirque Structural Zone The most important zone of mineralization thus far identified in the Tolstoi Claim Group is the Cirque structural zone, which contains at least four (4) high angle fault structures striking north degrees east and dipping vertica State of Alaska Cirque-Main zone is hosted in intrusive syenite; the zone is traced to the northeast into altered andesite of the Beaver Mountains volcanic field. Conspicuous zones of massive brown carbonate occur in portions of the vein. Assay data from thirty (30) chip samples indicate maximum values of up to 13.6 grams/tonne gold, 1,106 grams/tonne silver, and 21.5 percent copper, with average values of 2.11 grams/tonne gold, grams/tonne silver, and 5.78 percent copper. Up to 83.8 g/t tellurium has been identified in vein samples. Vein-fault widths range from 1.0 to 7.0 meters. Measured surface vertical exposures at the Cirque-Main zone indicate a minimum vertical reach of about 380 m. e PRGCI geologists have identified several new copper-enriched vein-fault deposits that are parallel to but in-between the Cirque-Main ad the Cirque-Lake copper-silver-gold vein-fault deposits. Thus a total of five 5

6 (5) vein-fault deposits are now know proximal to the main Cirque discovery made in previous years. Additional mineralized zones were also sampled at the main Cirque discovery area and along strike to both the northeast and o the southwest. During June, 2017, we sampled a 3.0 meter wide zone at the Cirque- Main zone, which yielded 2,39 percent copper, 137 g/t silver, and g/t gold. The table below summarizes the results of 30 chip-channel samples from the Cirque Main Zone. be or at least 1,400 feet (427 m) Analytical Results Summary, Cirque-Main Zone Type Au Ag As Bi Cu Pb Sb Te Maximum Values , , Average Values (Number of sample stations) (N=30) (N=30) 1.51 (N=30) (N=30) 5.78 (N=30) 0.78 (N=30) 0.27 (N=17) 8.66 (N=20) The Cirque-Lake zone was discovered by PRGCI geologists in It consists of semi-massive chalcopyrite, and disseminated bornite, galena, and sulfosalts enclosed within a tourmaline-quartz gangue for a distance of 2.9 km (1.8 mi). The Cirque-Lake zone is hosted in intrusive rocks along it s central and southwestern locations but cuts altered andesite and basalt in Ganes Creek to the northeast. Assay data from eighteen (18) chip sample sites indicate maximum values of 5.03 grams/tonne gold, grams/tonne silver, and 20.4 percent copper, with average values of 0.81 grams/tonne gold, grams/tonne silver and 3.68 percent copper. Copper values in the Cirque-Lake zone are comparable to those in the Cirque-Main zone, although gold values are lower. Sampled vein-fault widths, where measured, range from 0.75 to 2.70 meters. Mineralization can be traced for 366 m vertically. Analytical Results Summary, Cirque-Lake Zone Type Au Ag As Bi Cu Pb Sb Te Maximum Values Average Values (Number of sample stations) (N=18) (N=18) 0.32 (N=18) (N=18) 3.68 (N=18) 0.25 (N=18) 0.15 (N=18) 0.41 (N=18) Two subsidiary, lower grade, metallic prospects, the Cirque-North Stockwork and Cirque-South Stockwork zones, were identified during recent mapping efforts. Both occur in north-east striking fractures that parallel the Cirque-Main and Cirque Lake vein-faults, and are characterized by stockwork quartz-sulfide veinlet zones with disseminated rather than semi-massive sulfides. Both zones are about 2.2 km long and of unknown width, and documented by fewer sample sites than the Cirque-Main and Cirque-Lake deposits. Close-up of in-place mineralization at sample site #203824, from the Cirque-Lake zone in Cirque structural zone. A 1.00 m composite chip sample across the zone contained 5.70 percent copper, 400 g/t silver, and 5.03 g/ton gold. 6

7 In-place exposure of Cirque-Main mineralization showing semi-massive chalcopyrite near the footwall zone. A 3.0 meter chip-channel sample (290397) across the footwall portion of the zone collected in June, 2017 ran 2.39 percent copper, 147 g/t silver, and g/t gold. PRGCI Contractor Larry Nichols samples a new, as yet-unnamed chalcopyrite-bornite-bearing veinfault zone between and sub-parallel to the Lake and Main zones of the Cirque Mineralized system, Tolstoi Claim Group. Analytical Results Summary, Cirque North Stockwork Veinlet Zone Type Au Ag As Bi Cu Pb Sb Te Maximum Values Average Values (Number of sample stations) (N=6) 24.2 (N=6) (N=6) 21.7 (N=6) 0.49 (N= (N= (N=6) 0.05 (N=6) 7

8 Analytical Results Summary, Cirque South Stockwork Veinlet Zone Type Au Ag As Bi Maximum Values Average Values (Number of sample stations) Cu Pb Sb (ppm) Te (N=9) 11.7 (N=9) (N=8) 84.2 (N=8) 0.25 (N=8) Beaver Creek Structural Zone (N=9) 35 (N=8) (N=8) The Beaver Creek structural zone parallels the Cirque structural zone in the northern part of the claim group, and is marked by a fault zone striking north 70 degrees east and dipping essentially vertically for a minimum distance of 5.0 km (3.0 mi); the thickest part of the zone is exposed in upper Beaver Creek. During , thirty one (31) samples were taken along 255 meters (836 feet) of strike length, and true widths of the vein structure zone were estimated. PRGCI now has data control in the Beaver Creek structure similar to that in the Cirque Main deposit. The very high precious metal values of up to 142 g/t gold and 295 g/t silver found at 2009 station # were verified with the 2010 sample program. High grade sulfide mineralization at a 2010 station (#204911) contained 86.5 g/t gold and 242 g/t silver, and 8.46 percent copper. Another zone (#204968) contained 15.9 g/t gold, 3.83 percent copper, and 66 g/t silver. The Beaver Creek structural zone was also found approximately 800 meters to the northeast across a wide glacial valley of upper Beaver Creek thus extending mineralized strike length. PRGCI now believes that the Beaver Creek structural zone is linked to the Tolstoi breccia pipe to the north. Tourmaline-charged breccias identical to those found at the latter locality exist in the Beaver Creek zone. A 3.0 meter chip sample (290399) across the footwall of the Beaver Creek structural zone west of Beaver Creek contained 1.64 percent copper, 85.1 g/t silver, and 1.77 g/t gold. Analytical Results Summary, Beaver Creek Structural Zone Type Au Ag As Bi Cu Pb (ppm) Sb (ppm) Te Maximum Values , , Average Values (Number of Sample Intervals) 6.34 (N=55) 39.1 N=55) 0.16 (N=55) (N=53) 0.95 (N=55) 276 (N=55) 129 (N=55) 1.46 (N=24) Tolstoi Breccia Pipe A funnel-shaped mass of tourmaline-charged, hydrothermal intrusive breccia covers nearly one square kilometer at the head of Tolstoi Creek in the northernmost portion of the claim group. The zone is projected vertically for at least 300 meters. Known since 1979, the Tolstoi prospect consists of pockets of sulfide-tourmaline quartz veins, sulfide coated fractures, and disseminations within various parts of the Tolstoi Breccia Pipe. Metal grades are patchy and not uniformly distributed; yet the size potential of the target is judged to be significant. Analytical Results Summary, Tolstoi Breccia Pipe System Sample # Au Ag As Bi Cu Pb Sb (ppm) Te Maximum Values , Average Values (Number of Sample intervals) (N=29) 95.8 (N=31) 0.20 (N=31) 9.0 (N=31) 0.73 (N=31) 0.19 (N=31) 13.9 (N=31) 0.76 (N=31) 8

9 Sampling of in-place rubble and scree of the Beaver Creek structural zone. The dark colored, reddish brown rock material largely consists of tourmaline-quartz vein-fault mineralization in a zone averaging 12 meters across (approximate width bracketed). Host rock for the Beaver Creek structure, which trends from the upper left to the lower right corners of the photo is monzonite porphyry. A 3.0 meter chip sample collected during June, 2017 across the footwall zone (290399) ran 1.64 percent copper, 85.1 g/t silver, and 1.77 g/t gold. Grab samples in this zone have yielded up to 142 g/t gold, 321 g/t silver, 8.46 percent copper, and 2,130 ppm bismuth. Massive tourmaline-sulfide replacements (in black) in joints and fractures in syenite Station #290383, Tolstoi-North Claim Group, Beaver Mountains; along eastern edge of Tolstoi Breccia pipe. 9

10 Molybdenum-Gold-Rhenium-Quartz Stockwork, Upper Beaver Creek During , PRGCI discovered and sampled a molybdenum-bearing, quartz stockwork in syenite porphyry near the southeast boundary of the Tolstoi Breccia pipe; within the Beaver Creek structural zone. The most prominent quartz veins strike north o east and dip nearly vertically. A secondary quartz vein set strikes north 50 o west and dips vertically. Stations with visible molybdenum-bearing mineralization occur in a rectangular, 150 meter by 90 meter area. Zones of weaker stockwork versus stronger stockwork are shown on the accompanying geologic sketch. The molybdenum-bearing zone contains elevated gold and highly rhenium, the latter of which has a high correlation with high molybdenum values. The most significant observation of the analytical data is that elevated gold occurs in nearly all chip samples. Gold ranges from g/t to 6.76 g/t and averages 1.38 g/t. Four samples contain elevated molybdenum values ranging from to-1,730 ppm and average 0.075% molybdenum. Elevated rhenium occurs in the same samples that contain elevated molybdenum. Those four samples average 3.13 g/t. rhenium. Five samples contained elevated copper but they were not found in the molybdenite-rich samples. Those samples average 180 ppm copper. Selected analytical results, molybdenite-bearing quartz stockwork zone, northern Tolstoi Claim Group, Beaver Mountains area, Alaska collected during ; analyses by ALS Minerals, Nevada; anomalies by inspection in bold Sample # Year Collected Au Ag Bi (ppm) Cu (ppm) Mo (ppm) Re Sample Type , Chip Chip Chip m Chip m Chip m Chip m Chip m Chip m Chip m Chip m Chip Quartz vein with 1.0 percent molybdenite cuts syenite station , Tolstoi-North Claim Group, Beaver Mountains. Contains 1,730 ppm Mo, 7.7 ppm Re, and 41 ppb Au. Sampled August

11 Geologic sketch and chip sample locations within molybdenite gold-quartz-stockwork zone about 200 meters southeast of Tolstoi breccia pipe, Tolstoi Claim Group, Beaver Mountains, western Alaska Geochemical data shown on page

12 Stockwork veining in syenite at sample site For analytical information, see accompanying table on page 10 and geologic sketch on page

13 Tolstoi Claim Group Hi-Lights High Grade Copper-Silver-Gold-Polymetallic Mineralization in the Kuskokwim Mineral Belt of Southwest Alaska, where more than 1,050 tonnes gold has been identified (mainly at Donlin Creek). Tolstoi Prospects same age (Late Cretaceous) and geologically similar to Donlin Creek. On lands owned and managed by State of Alaska, which is supportive of mineral resource development. In the historic Iditarod and Ophir mining districts where gold is being mined today. Modern aircraft and mining road system nearby available for logistical access. Mining friendly community of McGrath just 40 miles away. Multiple geologic targets in Silver Phoenix Resources claimed area including veins, tourmaline-sulfide breccia pipes and stockwork. Should be considered a district-level play. Up to 20.5% copper, 1,108 grams/tonne silver, 140 grams/tonne gold, 7 grams/tonne rhenium, and 0.17% molybdenum found in mineralized zones. Three prospects ready to be drill-tested with a 2,800 meter, first phase core drilling program (10 holes). We recommend that Induced Polarization (IP) lines should test chargeability responses in both the Cirque and Beaver Creek Structural Zone areas. Subsequently, spatially separated zones of high grade mineralization along the Cirque Structural Zone should be drill-tested over a strike length of about 2.4 kilometers. Drill testing should also commence on the gold-bearing Beaver Creek Structure, and mineralized zones associated with the Tolstoi Breccia Pipe, including the newly discovered Mo-Au stockwork zone. 13

14 Additional Selected Photographs of Mineralization, Tolstoi Claim Group Photomicrographs of 07BT305/# station showing, on left, silver selenide weibullite in arsenopyrite; on right, chalcopyrite in quartz-muscovite matrix. Images from Cannon Microprobe, Seattle, Washington. Semi-massive chalcopyrite and quartz gangue from Cirque-Main #203822, which contained 9.06 percent copper, 703 grams/tonne silver, and grams/tonne gold. 14

15 Left: clast of chalcopyrite and galena encased in brown carbonate from Cirque-Main #203811, which contained 2.30 percent copper, 0.81 percent lead, 604 grams/tonne silver, and 3.52 grams/tonne gold. Right: Epithermal-like textures from Cirque-Lake # with clasts of chalcopyrite and malachite stain (hand specimen only--no assay data) Cirque structural zone west of Ganes Creek illustrating epithermal texture in volcanic host lithology #204831, which contained 2.80 percent copper, 3.66 percent lead, 3.95 percent arsenic, 274 grams/tonne silver, and 2.93 grams/tonne gold. 15

16 For Further Information Concerning the Tolstoi Claim Group, Contact: William Murray Silver Phoenix Resources, Inc. (Silver Phoenix) th Avenue, N.E., Box 134, Canoe, British Columbia, CANADA V0E 1K0 Phone: This Technical Summary (1) Was Prepared by: Thomas K. Bundtzen, CPG Pacific Rim Geological Consulting, Inc. (PRGCI) P.O. Box Fairbanks, Alaska, USA, Phone: (cell ) Website: (1) In February, 2017, PRGCI issued a NI Technical Report for Silver Phoenix Resources, Inc. that summarizes mineral resource information available for the Tolstoi Claim Group area. 16