Grassroots Exploration for Gold in Labrador Roger Moss, Nikos Explorations Ltd., Shawn Ryan, RyanWood Exploration, John Clarke, GroundTruth Exploration. Mineral Resources Review November 1 st -4 th 2017 1
Disclaimer Statements contained in this presentation that are not historical facts may be forward-looking statements within the meaning of the US Private Securities Litigation Reform Act of 1995 and forward looking information under similar Canadian legislation (collectively, "Forward Looking Information"). Forward Looking Information includes, but is not limited to, statements regarding the Company s strategic plans, property search and evaluation plans, estimated levels of mineral reserves, mineral resources and expenditures, success of exploration activities, and acquisition targets and commitments. Forward Looking Information is based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, Forward Looking Information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would, and is based on certain factors and assumptions regarding, among other things, the estimation of mineral resources, the realization of resource estimates, the timing and amount of future exploration and development expenditures, the availability of necessary financing and materials to continue to explore and develop properties, the receipt of necessary regulatory approvals, and assumptions with respect to currency fluctuations, environmental risks, title disputes or claims, and other similar matters. While the Company considers these assumptions to be reasonable based on information currently available to it, they may prove to be incorrect. Forward Looking Information involves known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to be materially different from any future results, performance or achievements expressed or implied by the Forward Looking Information. Such factors include risks inherent in the exploration and development of mineral deposits, risks relating to variations in mineral resources, grade or recovery rates resulting from current exploration and development activities, risks relating to changes in metal prices and the worldwide demand for and supply of metals, risks related to increased competition in the mining industry generally, risks related to current global financial conditions, uncertainties inherent in the estimation of mineral resources, access and supply risks, reliance on key personnel, operational risks inherent in the conduct of mining activities, risk of delays or increased costs during the development process and relating to the acquisition of licenses and permits, regulatory risks, risks related to disputes concerning property titles and interest, and environmental risks. This list is not exhaustive of the factors that may affect any of the Company's Forward Looking Information. These and other factors should be considered carefully and readers should not place undue reliance on the Company's Forward Looking Information. The Company does not undertake to update any Forward Looking Information or statements that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws. The technical content of this presentation has been prepared by Roger Moss, Ph.D., P.Geo. the company s qualified person. 2
Labrador Properties Ashuanipi Property Area: 740 square kilometres (Km 2 ) Target: Iron formation hosted gold Nain Property Area: 503km 2 Target: Orogenic gold associated with Nain- Churchill Terrane Boundary Ashuanipi Nain Hopedale Hopedale Property Area: 458km 2 Target: Greenstone hosted lode gold 3
Labrador Golden Opportunity Excellent online geoscience database enabling cost effective area selection Good coverage by government mapping and sampling programs Significantly under-explored for gold compared to other jurisdictions Politically stable jurisdiction supportive of mineral exploration 4
Work to date Area Selection Compilation of geochemistry, geophysics and geology from Geological Survey of Canada and Newfoundland and Labrador Mines Branch databases Recognition of anomalous gold in lake sediments Significant increase in quality of anomalies with increased sampling density Environments of potential gold mineralization outlined based on review of previous work Initial Exploration Program Lake sediment sampling increased density to narrow down areas for follow up Till sampling in areas of known anomalous gold in lake sediments Prospecting in areas of known gold occurrences and potential mineralized zones 5
Ashuanipi Ashuanipi Complex High grade Archean gneiss terrane on eastern edge of the Superior Province adjacent to Labrador Trough Modified after Van Nostrand, 2015 6
Ashuanipi Quebec In 2010, Rockland Minerals (now International Corona) announced a drill intersection of 19.55m of 2.23 g/t Au 30 km north of Ashuanipi property in similar geology Part of a 2km long north-south zone of anomalous gold (Ivanov, 2012) Hole ID From (m) To (m) Intersection (m) Au (g/t) WT09-04 40.39 59.94 19.55 2.23 including 53.85 55.88 2.03 10.21 RL10-17 11.45 19.7 8.25 1.24 49.7 62.25 12.55 1.05 including 57.3 58.4 1.1 9.02 Ivanov, 2012 Higher gold values found in lake sediments in Labrador than around known gold showings on Quebec side Lack of detailed modern day exploration in Labrador portion of Ashuanipi complex compared to Quebec WHY NOT LABRADOR? 7
Ashuanipi Success of exploration in Quebec suggests potential for discovery in Labrador No real modern day systematic exploration program has ever been undertaken in the area, mostly prospecting for rusty outcrop Recent (2014-2016) regional mapping by GSNL indicates similar lithologies on both sides of border Previous work by survey geochemist John McConnell showed that soil sampling works to locate anomalous gold bearing iron formation Modified after van Nostrom, 2016 8
Ashuanipi Geochemistry Geochemical compilation map of anomalous gold in lake sediments (coloured squares) rocks with +100ppb Au (coloured stars) rusty gossans (orange circles) from GSC mapping One of largest areas of lake sediment gold anomalies in Labrador Clear grouping of anomalies are apparent and constitute preliminary targets for follow up in first phase exploration 9
Ashuanipi Magnetics Recent Geological Survey of Canada detailed magnetic survey covers large parts of the Ashuanipi claims Useful to identify potential iron formation and structure 10
Hopedale Hopedale claims cover most of the Hunt River and Florence Lake greenstone belts (~80 km) Under explored for gold despite Thurber dog showing assaying up to 7.5 grams per tonne gold Area of Hunt claims has seen very limited prior staking Good correlation of gold with arsenic in both greenstone belts Nickel exploration identified significant strike length of carbonatized ultramafic volcanic rocks Significant (75%) airborne geophysical coverage from historical surveys completed in the 2006-2010 uranium exploration rush 11
Hopedale Occurrences Thurber Dog Showing (historical assays up to 7.5 g/t Au) in quatz phyric felsic metavolcanic rocks, Florence Lake greenstone belt Gossanous metasedimentary rock with associated iron formation, Hunt River greenstone belt Carbonatized ultramafic volcanic with quartz veining and local arsenopyrite, Florence Lake greenstone belt 12
Nain Sneegamook and Pocket Knife Lake targets lie along the Churchill Nain terrane boundary Orogenic gold target greenschist facies rocks associated with the Churchill-Nain terrane boundary c.f. Aucoin Aucoin Showing Sneegamook and Pocket Knife Lake Claims Modified from Sandeman & McNicoll, 2015 13
Aucoin gold showing Aucoin gold showing situated on the Nain- Churchill terrane boundary Ar-Ar dating of phengite from altered syenite gives an age of 1873±6 Ma for mineralization (Sandeman & McNicoll, 2015) Correlates with a Paleoproterozoic period of gold metallogeny from 1775 to 1900Ma Suggests potential for further gold mineralization along the terrane boundary Modified from Groves et al. 2003. 14
Nain Geochemistry Gold in lake sediments No known gold exploration ever undertaken at Sneegemook or Pocket Knife Lake Sneegemook has largest population of >99% percentile gold in lake sediment in all of Labrador Clusters of gold anomalies on Pocket Knife Lake claim block ready for follow up by till sampling 2017 sampling should provide targets for RAB drilling in 2018 15
2017 Exploration Geochem Ashuanipi Hopedale Nain Prospecting Lake sediment sampling Till sampling ridge and spur Prospecting & rock sampling 16
2017 Exploration Lake Sediment Sampling Ashuanipi: 680 samples 1.1/km2 Nain Boundary: 488 samples 1/km2 Hopedale: 379 Samples 1.2/km2 Till Sampling Ashuanipi: 4,512 Samples Nain Boundary: 2,260 Samples Hopedale: 1,866 Samples 17
In field XRF analyses Portable XRF station set up in base camp Get preliminary qualitative analyses of samples Potential for initial follow up of anomalous samples before leaving area Especially useful in locations remote from assay laboratories 18
Conclusions Use of online data from Newfoundland and Labrador Geoscience Atlas enabled efficient compilation of geochemistry, geophysics and geology to rapidly assess potential areas of interest Online assessment files and associated data provided further screening Three broad areas outlined with specific targets based on known occurrences/deposits in similar environments Initial exploration program during September and October 2017 significantly increased density of lake sediment samples which should produce well defined areas for follow up during 2018 Also started follow up of currently known anomalies using till sampling 2018 program expected to follow up anomalies generated during the recent program with the aim of conducting inital drill testing before the end of the field season 19
Thank You Stay Tuned! 20