SILVER BASIN GOLD SILVER PROPERTY

The Silver Basin Gold-Silver Property (the “Property”) is located in the Columbia Mountains near Trout Lake in the West Kootenay region, 650 road kilometres east of Vancouver, British Columbia. The property covers the southern part of the historic Silver Cup Mining Camp in the Lardeau District of the Revelstoke Mining Division.

The Silver Cup Mining Camp is near the north end of the Kootenay arc, a geologically and structurally complex zone that forms part of the Purcell Anticlinorium in the southern Rocky Mountains. The Kootenay arc consists of a curving belt of interbedded sedimentary and volcanic strata of Late Proterozoic to Mesozoic age that have been subjected to multiple phases of deformation, metamorphism and intrusion (Fyles and Eastwood, 1962).

The mineral claims that comprise the Property cover 2,268 hectares of ground that includes an 8 km length of the axial trace of the southern Silver Cup Anticline along which many past producing mines in the camp are located. Along this trend, the Property includes nine known precious metal vein occurrences: Morning Star, IXL, Chance, Noble Five, HYM, parts of the Foggy Day, Bonanza, Butte and Gallant Boy. In addition, possible extensions of the adjacent Okanagan, Enderby and Cromwell veins may exist on the Property.

Access

The Property can be accessed from the community of Trout Lake by driving southeast on Highway 31, then turning east onto one of three Forest Service Roads that become ATV trails leading to the alpine. Rudabue (Burg Creek) road provides ATV access to the northwest corner of the Property from which hiking trails can be used to reach some of the northern occurrences (Morning Star, Chance, IXL, Noble Five); Rady Creek road provides ATV access to the central part of the Property (Foggy Day area); American Creek road provides ATV access to the southern part of the Property (Bonanza, Butte and Gallant Boy). Access to other areas of the Property is by helicopter and/or by foot.

Geology

The Property is underlain by lower Paleozoic eugeoclinal strata of the Lardeau Group (Fyles and Eastwood, 1962). It is subdivided into six formations (Index, Triune, Ajax, Sharon Creek, Jowett and Broadview) of which the lowermost (Index) and uppermost (Broadview) are the most widespread. The Triune (siliceous argillite), Ajax (quartzite) and Sharon Creek (siliceous argillite) formations are restricted to the Trout Lake area. The Jowett Formation is a more widespread mafic volcanic unit. The thick sequence is isoclinally folded and intensely deformed, but only weakly metamorphosed.

In the district, the most productive veins occur along or near the northwest-trending axial trace of the Silver Cup anticline and close by in subsidiary fold apices that are accompanied by faults and/or shear zones. The main foliation strikes northwest and dips moderately to steeply northeast.

Mineralization does not appear to be spatially or temporally related to intrusive rocks which are rare in the area. Small dykes and stocks of gabbro and slivers of ultramafic rock do occur along the axial trace of the Silver Cup anticline south of Triune Mountain; their genetic association with mineralization, if any, is not known.

Mineralization

Veins on the property developed within phyllitic to graphitic argillites, slatey to siliceous argillites, siltstones and greenstones in association with faults, shear zones, and occasionally joint sets. They typically trend north-northwest to north-northeast and dip steeply east; however, some mineralized veins have other orientations. They are commonly moderately discordant with respect to the prominent foliation in the host rocks. The resulting veins are vertically and laterally persistent and range in width from centimeter-scale to occasionally more than 5m and can be subject to structural thickening.

Mineralization primarily occurs within discrete veins of white to semi-translucent, massive to drusy quartz with variable amounts of cream ankerite that, upon exposure to the elements, weathers orange-red. Pyrite is typically present in at least trace amounts, but zones of semi-massive to massive pyrite can occur (e.g. Bonanza). The base metal sulphides galena, sphalerite, chalcopyrite, tetrahedrite and chalcocite typically occur in trace amounts, but can form semi-massive to massive seams in richer veins (e.g. Morning Star. IXL, Chance). High concentrations of lead+/-zinc are commonly associated with elevated gold and silver grades (e.g. Foggy Day). Narrow iron-carbonate alteration envelopes are common and are particularly well-developed adjacent to veins enclosed in phyllitic volcanic rocks and to a lesser extent in veins cutting argillites, siltstones and sandstones. Secondary pyrite was noted in the siliceous, slatey argillites that are in contact with some veins located closer to the Silver Cup anticline and is suggestive of the presence of quartz-sericite-pyrite wallrock alteration.

Prominent iron-carbonate zones with variable amounts of quartz veining may also be important hosts to polymetallic mineralization (e.g. Gallant Boy).

Other Mineralization

Significant cobalt values have recently been confirmed to be hosted in the ultramafic intrusions. Recently cobalt and nickel values have been found to occur in an ultramafic intrusion where a sample gave only low gold and silver values but assayed 0.20% cobalt and 0.30% nickel.

Work in 2020 by Spey Resources

Work by Spey Resources in 2020 consisted of locating and sampling mineralization from the IXL, Morning Star, Chance, Foggy Day, Bonanza, Butte and Gallant Boy workings as well as a number of other prospects on the Property. The samples have been submitted for analysis and the resulting data will be reported in due course.