SOUTH JUMBO

System Type:

Low sulfidation, volcanic hosted, epithermal system, comprising of occasional quartz-calcite veins within broad zones of brecciation and stockwork veining.

Strike-Length:

South Jumbo has an exposed north-south strike length of 1,300 metres, half of which has been drilled. The system goes under cover to the north and south.

Resource:

The South Jumbo mineral resource has an effective date of May 1, 2020. The inferred resource is in addition to the measured and indicated resource. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Numbers have been rounded, which may lead to some numbers not adding up exactly. The resource estimate reflects gross metal content that is not adjusted for metallurgical recoveries.

Location:

The South Jumbo resource is located on the Utah side of the Gold Springs project 1,500 metres south of the North Jumbo resource.

Drilling:

A total of 37 holes have been drilled at South Jumbo for a total of 5,153 metres. The drill-holes are concentrated in the northern 500 metres of the exposed portion of the South Jumbo target with the southern 600 metres having seen only a few wide-spaced drill holes. The southern area will be the focus of the next drill campaign which will be designed to expand the current resource.

Geophysics:

The gold mineralization at the South Jumbo resource is closely associated with strong north-northwest trending ZTEM (airborne geophysical survey) and CSAMT (ground geophysical survey) resistivity highs. The resource is located along the western boundary of these high resistivity features (see Maps below).

Geology:

The South Jumbo resource area is located on the southern end of the Jumbo Trend, as defined by the ZTEM and CSAMT geophysical surveys and the surface exposures of the mineralized zone. The system may extend southward under the gravel cover near Newell Springs. Mineralization at South Jumbo occurs primarily as quartz stockwork, sheeted quartz veins, and in hydrothermally brecciated andesite forming the prominent Etna Ridge which extends from Newell Springs, on the south, for 1,300 metres to the north, where it is covered by post mineral andesite flows near the historic Etna Mine. The surface exposures of the South Jumbo mineralized zone range from 75 to 140 metres wide, with the greatest widths present along the north end of the zone. The silicified andesite locally forms large cliff outcrops along the eastern side of the ridge, where a possible fault has displaced mineralization to the east below post-mineral cover.

Structural Geology:

Gold mineralization at South Jumbo and in the Etna Mine area is not characterized by a single prominent vein, unlike other targets in the project area where the quartz vein structures are one of the dominant mineralized features. The mineralized zone consists of silicification and re-cemented breccias and stockwork zones. With no single dominant vein in the South Jumbo system, the mineralization is characterized by a large block of silicified andesite that was shattered, stockwork veined, and brecciated by movement along two north-south structures, the Etna fault on the west and the Jumbo fault on the east. Movement along these faults created areas of extension which now host the resource at South Jumbo. Secondary structures are low-angle features dipping west and intersecting the South Jumbo zone. These structural intersections are conducive for horizontal, cigar-shaped areas of higher-grade mineralization.

Historical Mining:

The most notable historic working on the South Jumbo target is the Etna mine and shaft. The Etna mine was developed through the incline shaft where there are 79 metres of tunneling 30 metres below surface. The tunneling was done on the Etna vein which was mined from the 30-metre level to near the surface. There are also numerous pits and one tunnel which is now caved and inaccessible.

Geochemistry:

There has been extensive rock chip sampling along the exposure of the South Jumbo resource. Samples above 1.0 g/t gold are presented below. This represents 12.5% of the sample population.