Skip to main content

AI assistant

Sign in to chat with this filing

The assistant answers questions, extracts KPIs, and summarises risk factors directly from the filing text.

Grande Portage Resources Ltd. Audit Report / Information 2021

Jun 15, 2021

43734_rns_2021-06-15_e69b0454-7f1f-475c-8938-66c7ab83c546.pdf

Audit Report / Information

Open in viewer

Opens in your device viewer

TECHNICAL REPORT ON THE HERBERT GOLD PROPERTY

JUNEAU DISTRICT, SOUTHEAST ALASKA

Prepared for:

Grande Portage Resources Ltd. Suite 280 – 1090 West Georgia Steet Vancouver, BC V6E 3V7

Prepared by: Dave Webb, Ph.D., P. Geol., P.Eng.

DRW Geological Consultants Ltd.

June 15, 2021

Effective Date: May 12, 2021

Certificate of Qualifications

I, Dave R. Webb, Ph.D., P.Geol., P.Eng. (Lic 601, NAPGEGG), herby certify that:

1) I am a consulting geologist with a business address at 6120 185A St., Surrey, B.C., V3S 7P9

2) I am a graduate of:

    1. the University of Toronto (1981) in Geological Engineering. (B.A.Sc. (Engineering))
    1. Queen's University (1983) in Geological Sciences. (M.Sc.)
    1. The University of Western Ontario (1992) in Geological Sciences. (Ph.D.)

3) I am a registered Professional Geologist in good standing with the Association of Professional Engineers and Geoscientists of the Northwest Territories (NAPEG) (L601) and the Association of Professional Engineers and Geoscientists of the Province of British Columbia (APEGA) (49744) and a registered Professional Engineer in good standing with the Association of Professional Engineers and Geoscientists of the Northwest Territories (NAPEG) (L601).

4) I have worked as a geologist for a total of 40 years since graduation from university. I have work experience in Canada, the United States of America, Mexico, Asia, Europe and Africa. Specific experience with mineralization and resource estimation in lode gold deposits has been:

    1. From 1981 to 1986 I was employed part time by Cominco at the Con Mine in Yellowknife (a lode gold deposit) as a research geologist and production geologist. In this capacity I did reconciliation and reserve forecasts (resource estimation).
    1. My education (item 2 (above) included an M.Sc. on structural and stratigraphic controls on gold mineralization at the Con Mine (an orogenic gold deposit, and a Ph.D. on controls on gold mineralization in Yellowknife (an orogenic gold camp with over 14 million ounces of past production.
    1. I staked and vended the Nicholas Lake property and participated in its development to be the largest granite-hosted gold orogenic deposit in the Northwest Territories.
    1. I purchased the Mon Property from Cominco Ltd in 1988 and discovered the down-dip extension of the high-grade A-Zone, completed the ore reserves and with financial and mining support, brought the mine into production. It operated profitably for seven years.
    1. I staked and vended the Discovery Project, and then lead the team as a director and then CEO to the discovery and development of the Ormsby Zone.
    1. As a consultant, I completed the ore reserve portion of a Feasibility Study (with Cominco Engineering Ltd.) on the orogenic Bumbat Gold Mine in Mongolia.
    1. As CEO, I targeted and then developed with my team, the Clan Lake Main Zone, an orogenic gold deposit in the Yellowknife Gold Belt.
    1. As owner, I completed a re-evaluation of the past-producing Mon Gold Mine and identified additional potential. I obtained all permits and licenses needed to recommence mining on a limited basis, making this the most recently permitted orogenic gold deposit in the Northwest Territories.
1 SUMMARY (ITEM 1) 7
2 INTRODUCTION (ITEM 2)9
2.1 TERMS OF REFERENCE AND PURPOSE OF THE REPORT9
2.2 QUALIFICATIONS OF CONSULTANT10
2.3 DETAILS OF SITE INSPECTION10
2.4 EFFECTIVE DATE 10
2.5 SOURCES OF INFORMATION 10
2.6 UNITS OF MEASURE10
3 RELIANCE ON OTHER EXPERTS (ITEM 3) 11
4 PROPERTY LOCATION AND DESCRIPTION (ITEM 4)11
4.1 AREA AND LOCATION 11
4.2 CLAIMS AND AGREEMENTS 12
4.3 CLAIMS ANDOWNERSHIP13
4.4 ENVIRONMENTAL LIABILITIES 16
4.5 OTHER SIGNIFICANT RISKS AND FACTORS 16
4.6 PERMITS 16
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPY (ITEM 5)17
6 HISTORY (ITEM 6) (THIS SECTION HAS LARGELY BEEN EXCERPTED FROM VAN WYCK AND BURNETT, 2012)19
7 GEOLOGICAL SETTING AND MINERALIZATION (ITEM 7) 20
7.1 REGIONAL GEOLOGY20
7.2 PROPERTY GEOLOGY (EXCERPTED FROM VAN WYCK AND BURNETT, 2011) 20
Mineralization 21
8 DEPOSIT TYPES (ITEM 8)23
9 EXPLORATION (ITEM 9)24
10 DRILLING (ITEM 10)25
11 SAMPLE PREPARATION, ANALYSIS AND SECURITY (ITEM 11) 31
11.1 SAMPLE PREPARATION 31
11.2 SECURITY 32
11.3 SAMPLE ANALYSES 32
Preparation Procedures 32
Analytical Procedures 32
12 DATA VERIFICATION (ITEM 12)33
13 MINERAL PROCESSING AND METALLURGICAL TESTING (ITEM 13) 39
14 MINERAL RESOURCE ESTIMATES (ITEM 14)42
14.1 RESOURCE ESTIMATION PROCEDURES 42
Solid Model Construction 43
Assay Database 45
14.1.1.1
Univariate Statistics 46
Density 49
Compositing 50
Treatment of High-grade outliers51
Variography51
Block Model Estimate 52
Interpolation Method52
Estimation Plans52
Validation of the Block Model 53
14.2
RESOURCE STATEMENT59
15 MINERAL RESERVE ESTIMATES (ITEM 15)60
16 MINING METHODS (ITEM 16)60
17 RECOVERY METHODS (ITEM 17)61
18 PROJECT INFRASTRUCTURE (ITEM 18)61
19 MARKET STUDIES AND CONTRACTS (ITEM 19) 61
20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT (ITEM 20)61
21 CAPITAL AND OPERATING COSTS (ITEM 21) 61
22 ECONOMIC ANALYSIS (ITEM 22)61
23 ADJACENT PROPERTIES (ITEM 23) 61
24 OTHER RELEVANT DATA AND INFORMATION (ITEM 24)62
25 INTERPRETATION AND CONCLUSIONS (ITEM 25) 62
26 RECOMMENDATIONS (ITEM 26)62
26.1
2021 EXPLORATION PROGRAM62
27 REFERENCES (ITEM 27)64
FIGURE
1.
LOCATION OF
HERBERT
GOLD
PROJECT12
FIGURE
2.
HERBERT
PROPERTY
CLAIM
MAP
13
FIGURE
3
LOCAL
GEOLOGY OF
HERBERT
PROPERTY
AREA
21
FIGURE
4.
2020
ASSAYS OF BLANKS
34
FIGURE
5.
ASSAYS OF
OREAS
215
STANDARD 34
FIGURE
6.
HISTORIC
ASSAYS OF
OREAS
217
STANDARD35
FIGURE
7.
2020
ASSAYS OF
OREAS
217
STANDARD35
FIGURE
8.
ASSAYS OF
ORAES
10C
STANDARD36
FIGURE
9.
ASSAYS OF
OREAS
221
STANDARD 36
FIGURE
10.
ASSAYS OF
OREAS
229
STANDARD. 37
FIGURE
11.
2020
ASSAYS OF
OREAS
238
STANDARD37
FIGURE
12.
HISTORIC
ASSAYS OF
OREAS
256
STANDARD38
FIGURE
13.
2020
ASSAYS OF
OREAS
256
STANDARD38
FIGURE
14.
SUMMARY OF
GOLD
RECOVERIES
39
FIGURE
15.
ASSAY
HEAD
GRADES OF METALLURGICAL TEST SAMPLES. 40
FIGURE
16.
BOND
WORK
INDEX OF TWO METALLURGICAL SAMPLES
40
FIGURE
17.
WHOLE ORE CYANIDATION PERFORMANCE
40
FIGURE
18.
GOLD AND SILVER LEACH KINETICS41
FIGURE
19.
GRAVITY AND FLOTATION RESPONSE
41
FIGURE
20.
SELECTED ANALYSIS OF FLOTATION CONCENTRATE42
FIGURE
21.
TYPICAL EAST FACING CROSS SECTION SHOWING VEIN CORRELATIONS WITH DRILL HOLE TRACES ON A
100
M GRID44
FIGURE
22.
TYPICAL EAST FACING CROSS SECTION SHOWING VEIN CORRELATIONS WITH DRILL HOLE TRACES ON A
100
M GRID45
FIGURE
23.
LOG NORMAL PROBABILITY PLOT OF THE RAW GOLD SAMPLE DATA. 47
FIGURE
24.
LOG
PROBABILITY OF THE RAW SILVER SAMPLE DATA
48
FIGURE
25.
TOPOGRAPHY OVER DRILL AREA WITH KNOWN VEINS AND
LIDAR
LINEAMENTS. 49
FIGURE
26.
DENSITY MEASUREMENTS ON SAMPLES FROM
HERBERT
GOLD
PROJECT50
FIGURE
27.
THE UNCUT COMPOSITE DATA
(BLUE)
WAS CUT TO 125
GPT (GREEN)
TO ESTIMATE THE BLOCK GRADES (PURPLE)51
FIGURE
28.
VARIOGRAPHY OF
DEEP
TRENCH
VEIN. 52
FIGURE
29.
VIEW OF ALL OF THE VEIN SOLIDS,
ON GENERAL GEOLOGY DRAPED OVER TOPOGRAPHY.
NORTH TO THE TOP,
QUARTZ
DIORITE IS 900M ACROSS. 53
FIGURE
30.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)54
FIGURE
31.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)55
FIGURE
32.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)55
FIGURE
33.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)56
FIGURE
34.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)56
FIGURE
35.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)57
FIGURE
36.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)57
FIGURE
37.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)58
FIGURE
38.
NORTH-FACING INCLINED
40M THICK LONGITUDINAL SECTION SHOWING RESOURCE BLOCKS AND DRILL HOLE SEGMENTS
ON 100M GRID
(RED LINES)58
PHOTO
1.
PHOTOGRAPH OF
HERBERT
PROPERTY18
PHOTO
2.
PHOTO OF THE
GOAT
VEIN STRUCTURE
(PURPLE LINE),
VIEWED TO THE EAST (C.
HALE,
2018). 22
PHOTO
3.
CREW CUTTING A CONVENTIONAL CHANNEL SAMPLE ON THE
GOAT
VEIN.
(C.
HALE,
2018)23
TABLE
1.
SENSITIVITY
TABLE SHOWING
INDICATED
MINERAL
RESOURCE BY CUT-OFF WITH
125
GPT CAP. 8
TABLE
2.
SENSITIVITY
TABLE SHOWING
INFERRED
MINERAL
RESOURCE BY CUT-OFF WITH
125
GPT CAP 8
TABLE
3.
HERBERT
PROPERTY
CLAIM
STATUS
(MAY
15,
2021) 14
TABLE
4.
ALL DRILL HOLE LOCATION IN
NAD
83
Z.8,
AZIMUTH,
DIP AND TOTAL DEPTH (IN METRES). 26
TABLE
5.
LOCATION OF SURFACE CHANNEL SAMPLES
30
TABLE
6.
SELECTED STATISTICS FOR
1988
DRILL HOLES42
TABLE
7.
UNIVARIATE STATISTICS FOR THE ENTIRE DATABASE46
TABLE
8.
UNIVARIATE STATISTICS FOR
1.0
M COMPOSITES AS DESCRIBED46
TABLE
9.
BULK DENSITY MEASUREMENTS ON
30
MINERALIZED INTERSECTIONS FROM THE 2012
DIAMOND DRILLING. 49
TABLE
10.
SENSITIVITY
TABLE SHOWING
INDICATED
MINERAL
RESOURCE BY CUT-OFF WITH
125
GPT CAP. 59
TABLE
11.
SENSITIVITY
TABLE SHOWING
INFERRED
MINERAL
RESOURCE BY CUT-OFF WITH
125
GPT CAP. 59
TABLE
12.
INDICATED
MINERAL
RESOURCE AT
3.00
GPT CUT-0FF,
125
GPT CAP,
BY VEIN 59
TABLE
13.
INFERRED
MINERAL
RESOURCE AT
3.00
GPT CUT-0FF,
125
GPT CAP,
BY VEIN 60
TABLE
14.
PROPOSED BUDGET AND WORK PROGRAM TO CONTINUE TO EXPAND
HERBERT
GOLD
PROJECT RESOURCES63

1 SUMMARY (Item 1)

Grande Portage Resources Ltd. (GPR) has retained DRW Geological Consultants Ltd. to prepare a technical report (the Report) on the Herbert Gold Property (the Property) in accordance with National Instrument 43-101 (NI 43- 101) and Form 43-101F. Grande Portage Resources Ltd. is a publicly traded mineral exploration company focused primarily on precious metals in Alaska. This Report is an update on the last report filed in May 2019. The changes in this Report are the results of the 2020 drilling program.

The Herbert Gold Property consists of 91 federal mining claims covering approximately 1,881 acres located 32 kilometers north of Juneau, Alaska. The infrastructure is well developed in this area. The Property is 6 km from a paved highway, 10 kilometers from a power line and 10 kilometers from tidewater.

The Property is wholly-owned by GPR. An annual advance royalty payment is payable on the property.

The Property is located within the historic, 160 kilometer long Juneau Mining District (JMD) which hosts over 200 gold-quartz-vein deposits with production nearing 7,000,000 ounces of gold since 1880. More than threequarters of Alaska's lode gold was mined from the Juneau gold belt. Most of the prospects and mines within the JMD are in close proximity to the Coastal Range Megalineament – a major crustal structure defined by northwest – striking, moderately to steeply dipping, penetrative foliation. This structure is parallel to the boundary between the Gravina Belt to the west and the Taku terrane to the east. Regional metamorphism and deformation, including the Coastal Range Megalineament, are linked to the emplacement of multiple intrusive bodies of varied composition.

Historic production from the Juneau Mining District was mainly from mesothermal quartz veins and stringers hosted by greenschist to amphibolite – facies metasedimentary rocks and relatively competent igneous bodies. Many of the mineralized veins in the Juneau District extend over significant distances along strike and downdip. The Juneau gold belt has been Alaska's largest lode gold producer, yielding approximately 6.8 million ounces of gold, largely from the Alaska-Juneau and Treadwell mines. The Kensington Mine, owned by Coeur Mining Inc. operates within this belt approximately 45 km north of the Herbert Gold Property.

The empirical relationship between orogeny and gold- vein formation in the Juneau gold belt is well established. A belt of tonalitic plutons intruded approximately 5 km east of the megalineament between 68-61 Ma (Barker et al., 1986; and Wood et al., 1991). Eocene granodiorites intruded 10 km east of the gold belt, and are coeval with the gold mineralization (48 to 55 Ma.) (Miller et al., 1995). The granodiorites are believed to have been the primary source of heat that drove prograde metamorphic reactions devolatizing rocks of the Wrangelia terrane to producethe gold deposits.

The resource estimation was prepared D.R. Webb P. Geol., P.Eng who is the Qualified Person for this report within the meaning of NI 43-101 and is responsible for all aspects of the Technical Report Quality.

Bulk density for the Herbert Property mineralized rock is 2.757 g/cc (average of 30 mineralized samples).

The results are from a total of 175 diamond drill holes, 36 trenches with sawn channel cuts or continuous chip samples on the Herbert Property. Four thousand two hundred sixty two (4,262) ICP gold assays, 130 gold assays with gravimetric finish, 1,083 screened metallic gold assays and 3,301 ICP multi-element (33 element) analyses comprised the digital database for this study. This resource estimate is updated from the Mineral Resource reported in 2019. Several exploratory drill holes also encountered other targets. Utilizing a base case cut-off of 3.0 gpt, the nine veins on the property host an Indicated Mineral Resource of 3,637,000 tonnes at a grade of 10.23 gpt (1,196,800 ounces of gold and 686,700 ounces of silver) and an Inferred Mineral Resource of 1,138,000 tonnes at a grade of 8.91 gpt (325,900 ounces of gold and 169,300 ounces of silver) using a 125 gpt top cut.

In Table 1 and Table 2 mineral resources are highlighted above a 3.0 gpt cut off, assuming an average gold price of \$1,400 per ounce. This cut-off reflects the potential economic, marketing and other issues relevant to an underground shrinkage stope mining scenario based on a conventional mill operation.

Cut-off Tonnes Grade Au gpt Grade Ag gpt Ounces Au Ounces Ag
3.0 gpt 3,637,000 10.23 5.87 1,196,800 686,700
2.5 gpt 4,290,000 9.10 5.22 1,255,600 719,700
2.0 gpt 5,239,000 7.86 4.67 1,324,400 786,000

Table 1. Sensitivity Table showing Indicated Mineral Resource by cut-off with 125 gpt cap.

Table 2. Sensitivity Table showing Inferred Mineral Resource by cut-off with 125 gpt cap.

Cut-off Tonnes Grade Au Grade Ag Ounces Au Ounces Ag
3.0 gpt 1,138,000 8.91 4.63 325,900 169,300
2.5 gpt 1,255,000 8.33 4.33 336,000 174,500
2.0 gpt 1,474,000 7.44 4.00 352,300 189,700

Metallic or screened assays were used in all instances where they were available (1,083 samples). All other assays are standard one assay ton results reported using ICP finish or where over limit (>10 gpt) are reported using gravimetric finish. All unsampled drill hole intervals were assigned -9 grade to facilitate resource calculations.

A series of cross sections were developed for each of nine different zones where correlations in gold assays, alteration zones, and multi-element data appear to exist down-dip on section and between sections. These correlations were corrected and modified as supported by surface mapping and geology.

MapInfo's 3D solid generation routine was used to construct three dimensional models from the sections. These were examined to conform to geology and all analytical data and adjusted where necessary.

Some areas of the Main Vein provided multiple options for correlations that were permissive by geology and sample geochemistry. The correlation that best matched surface geology was selected. The Deep Trench vein was remarkable in the simplicity and consistency of a very planar orientation of the correlations.

Block model parameters are based on geostatistical applications. Based on numerous iterations, it was decided that the Inverse Distance Squared (ID2 ) method was appropriate. It was determined that a block model using tabular-shaped blocks 1.5m thick, and 8m x 8m rotated into the plane of the vein provided suitable detail without creating an unnecessarily large database. This was applied to all veins. The raw and composited assay data for the veins display a single population or a dominant population with <1% secondary populations on the lognormal probability plots. These can be modeled smoothly without any obvious outliers that can overinfluence the estimation and to account for the nugget effect. Statistical studies showed that capping could be supported a 125 gpt gold. This was applied to all veins. The resource remains open in multiple directions along these defined veins.

The long axis of the blocks is aligned with the strike of the structural domain, and the shorter dimension is aligned perpendicular to the strike direction. Interpolation parameters are defined based on a combination of geology, drill hole spacing and geostatistical analysis of the data. Individual structural zones, interpreted in the various deposit areas, are segregated for modeling purposes and isotropic search orientations are utilized which retain vein geometry of the gold mineralization in the resource model.

A graphical validation was done on the block model where cross sections, plans, and a 3D examination were conducted, testing intersections, solids and surface boundaries, and geology. Each block appears to be well represented by the immediately adjoining composites as would be expected using the ID2 method. A minimum of 2 and maximum of 8 composites were used to create each block, except for the Goat Main Vein where a minimum of 3 and a maximum of 8 composites were used to create each block. Meaningful variograms could not be generated, likely due to a paucity of data points within individual veins.

The resources are classified according to their proximity to the sample locations and are reported, as required by NI 43-101, according to the CIM Definition Standards for Mineral Resources and Mineral Reserves. Indicated resources comprise blocks that are situated within 60 meters of assays derived from drill holes or trenches. No Measured Resource was determined at this time.

2 INTRODUCTION (Item 2)

2.1 Terms of Reference and Purpose of the Report

This technical report was commissioned by Mr. Ian Klassen, President, Grande Portage Resources Ltd. (GPG) to update a mineral resource for the Herbert Property in Southeast Alaska. The new mineral resource estimate described in this report was prepared in accordance the with Canada National Instrument 43-101, Standards of Disclosure for Mineral Projects (NI 43-101) and Canadian Institute of Mining, Metallurgy and Petroleum (CIM) "Best Practices and Reporting Guidelines,

This report makes use of all relevant information provided by GPG and other information gathered by the author. The purpose of this report is to summarize and present applicable information regarding GPG's Herbert Gold Project and provide an estimate of mineral resources contained within the property. The mandate also called for the author to recommend specific areas and methodologies (if warranted) for further exploration. The identification of these areas would be based on their observations and interpretations.

This report has been prepared to support public disclosure of the updated mineral resources and, as such, does not include information normally disclosed in items 15 through 22 of NI 43-101F1. The intended users of this report are GPG and its agents, as well as members of the general public via their company website or the SEDAR information filing system. SEDAR is the official site for public access to most securities documents and information filed with the Canadian Securities Administrator by public companies and investment funds.

2.2 Qualifications of Consultant

The author is familiar with the exploration techniques being applied by GPG on the Herbert Gold Property having been involved in previous technical reports and providing some specific advisory services to GPG in the past. As well, the author has participated in the Resource Estimation of other orogenic gold projects (see Certificate of Qualifications).

Dr. David Webb P.Geol., P.Eng. is a Qualified Person as described by NI 43-101. Dr. Webb completed all sections in this report.

2.3 Details of Site Inspection

Dr. Webb visited the Herbert Property from February 26 to 28, 2018. While on site, he conducted a low-level helicopter overflight (high snow pack at this time of year) seeing the general physical environment and observing two quartz veins with alteration. He also reviewed selected core and evaluated sampling methods and security protocols. A slabbed sample of the Goat vein was collected for assay.

2.4 Effective Date

Data used for the resource estimate were taken from drilling at the Herbert Property through October 2020. GPG provided a drill hole database update with the results of the 2020 exploration activities which were added to the database of previous results in the author's possession. The effective date of this report is June 15, 2021.

2.5 Sources of Information

This report is based upon data and information compiled by the author from a personal site inspection, published geological assessments and maps, raw data and technical reports by geologists and/or engineers (some independent and some in the employ of GPG). These sources of information are presented throughout this report. The Author has no reason to doubt the reliability of the information provided by GPG.

A rock sample was collected by the author and analyzed by Bureau Veritas Laboratories in Vancouver. The analyses were consistent with previous analytical results for the sample location.

2.6 Units of Measure

Unless otherwise stated, all measurements reported in this report are in metric units and currencies are expressed in 2019 US dollars.

3 RELIANCE ON OTHER EXPERTS (Item 3)

This report is based upon personal examination by the Author of all available reports and maps on the Herbert property, as well the site examination carried out on February 2018 to appraise the geological setting and assess its precious metal potential.

The qualified person is not relying on any other experts for technical information material to this report. The Author is not aware of any material fact or material change with respect to the subject matter of this technical report that is not presented in this report, which the omission to disclose would make this report misleading.

All information regarding property ownership and permitting available on the Alaska Government Website is consistent with GPG's records. The author has not made any attempt to verify the legal status and ownership agreements of the Herbert Property, nor are they qualified to do so and have not made any attempt to verify the permitting status of the property. The author has relied upon the Alaska Government Website for information on the status of property title, agreements, permit status and other pertinent conditions.

The author conducted an on-line search of the Herbert Property status by utilizing the Alaska Mapper Program. (http://dnr.alaska.gov/mapper/controller?gsid=AC1E2337E2485E92A31339115284C31D.tomcat-90) results of this search are presented in Item 4. Political, financial or other similar issues are all deemed to be outside the scope of this report for a property at this level of development.

4 PROPERTY LOCATION AND DESCRIPTION (Item 4)

4.1 Area and Location

The Herbert Property is situated in UTM Zone 8 between 516,600m and 521,000 East, 6,485,200m and 6,488,700m North (NAD 83 Alaska) in southeastern Alaska approximately 32 kilometers north of Juneau (Fig. 1). The project lies entirely within the Juneau 1:250,000 map sheet, and within the Juneau C-3 and C-2 1:63,000 quadrangles.

Elevations on the property range from 40m to 1,200m above mean sea level. The property comprises 91 Federal claims registered under the legal names listed in Table 1. The aggregate area of the claims is 761.5 hectares (1881 acres). The claims are situated within Townships 38 and 39S and Range 65E of the Copper River Meridian.

Annual fees of \$13,000 are payable to the Alaska Bureau of Lands for claim fees. This amount was paid in August 2018 and GPG intends to pay these fees in the coming years.

4.2 Claims and Agreements

Figure 1. Location of Herbert Gold Project.

4.3 Claims and Ownership

The Herbert Gold Property consists of three groups of claims. Figure 2 lists the currently active claims at the effective date. The central 17 claims, shown in yellow, were the original claims acquired by Juneau Exploration and Development Inc. ("JEDI") from Echo Bay Exploration Inc. in 1997. Quaterra Resources Ltd. (QR) and JEDI signed a mining lease agreement in April 2007, at which time 67 additional claims were staked and an area of interest around the 17 core claims agreed upon. A final set of 7 claims were added by QR in February 2008, bringing the current total to 91 active claims. There is no distinction between the claims within the agreements and all claims lie within the proscribed area of interest.

Figure 2. Herbert Property Claim Map

Table 3. Herbert Property Claim Status (May 15, 2021)

Refresh
Claim Name Claim Number Claimant Date Status
HERBERT # 1 AKAA
059363
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 2 AKAA
059364
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 3 AKAA
059365
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 4 AKAA
059366
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 5 AKAA
059367
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 7 AKAA
059369
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 8 AKAA
059370
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 9 AKAA
059371
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 21 WITNESS AKAA
059383
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT # 32 AKAA
059394
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT #33 AKAA
059981
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT #34 AKAA
059982
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT #35 AKAA
059983
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT #41 AKAA
059989
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT #42 AKAA
059990
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT #43 AKAA
059991
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT #44 AKAA
059992
JUNEAU EXPLORATION AND DEVELOPMENT INC 05/02/2021 RECORDED
HERBERT 1 AKAA
087165
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 2 AKAA
087166
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 3 AKAA
087167
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 4 AKAA
087168
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 5 AKAA
087169
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 6 AKAA
087170
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 7 AKAA
087171
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 8 AKAA
087172
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 9 AKAA
087173
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 10 AKAA
087174
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 11 AKAA
087175
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 12 AKAA
087176
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 13 AKAA
087177
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 14 AKAA
087178
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 15 AKAA
087179
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 16 AKAA
087180
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 17 AKAA
087181
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 18 AKAA
087182
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 19 AKAA
087183
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 20 AKAA
087184
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 21 AKAA
087185
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 22 AKAA
087186
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 23 AKAA
087187
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 24 AKAA
087188
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 25 AKAA
087189
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 26 AKAA
087190
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 27 AKAA
087191
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 28 AKAA
087192
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 29 AKAA
087193
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 30 AKAA
087194
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 31 AKAA
087195
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 32 AKAA
087196
GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 33 AKAA 087197 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 34 AKAA 087198 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 35 AKAA 087199 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 36 AKAA 087200 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 37 AKAA 087201 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 38 AKAA 087202 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 39 AKAA 087203 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 40 AKAA 087204 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 41 AKAA 087205 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 42 AKAA 087206 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 43 AKAA 087207 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 44 AKAA 087208 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 45 AKAA 087209 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 46 AKAA 087210 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 47 AKAA 087211 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 48 AKAA 087212 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 49 AKAA 087213 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 50 AKAA 087214 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 51 AKAA 087215 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 52 AKAA 087216 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 53 AKAA 087217 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 54 AKAA 087218 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 55 AKAA 087219 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 56 AKAA 087220 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 57 AKAA 087221 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 58 AKAA 087222 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 59 AKAA 087223 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 60 AKAA 087224 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 61 AKAA 087225 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 62 AKAA 087226 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 63 AKAA 087227 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 64 AKAA 087228 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 65 AKAA 087229 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 66 AKAA 087230 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 67 AKAA 087231 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 68 AKAA 087875 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 69 AKAA 087876 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 70 AKAA 087877 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 71 AKAA 087878 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 72 AKAA 087879 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 73 AKAA 087880 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED
HERBERT 74 AKAA 087881 GPG ALASKA RESOURCES INC 05/02/2021 RECORDED

The original 17 claims by Echo Bay makes no mention of an underlying royalty interest in these claims and they were sold unencumbered to a JEDI.

The Mining Lease signed by JEDI and QR has an effective date of November 1, 2007. The lease includes a sliding scale Net Smelter Return on production up to five percent (5%) when the price of gold exceeds \$601 per troy ounce, and a minimum annual advance production royalty of up to a maximum of \$30,000 payable to a JEDI after the tenth anniversary of the effective date.

On June 16, 2010 GPG optioned the property from a QR. The option agreement granted the right to earn 65% of the Herbert Property if:

  • GPR spent at least \$750,000 before June 15, 2011 to earn 51%
  • GPR spent and additional \$500,000 before June 15, 2012 to earn the full 65% interest

GPR has fulfilled both of these obligations and is fully vested at the 65% ownership interest.

On October 24, 2011 GPR and the QR signed a Joint Venture Agreement outlining the collective responsibilities between the JV participants. Funding is on a pro-rata basis, with standard dilution applying in the event either partner declines to participate.

On July 14, 2016 GPG announced an Acquisition Agreement had been signed whereby the Company issued to QR 1,182,331 common shares and pay QR the sum of US\$250,000 upon either: (a) delivery of a feasibility report establishing that the Property can be profitably placed into commercial production, or (b) the change of control of the Company or the sale of the Property. The Acquisition Agreement also includes anti-dilution provisions, whereby QR will be issued additional common shares for no additional consideration, upon the Company's completion of equity financings to raise up to the next \$1.0 million only, so that QR's equity interest in the Company will not be less than 9% of the then total issued common shares on a non-diluted basis. Finally, QR had been granted a right to participate in any future equity financings of the Company over the next \$1.0 million, in order to maintain its equity interest in the Company at its then current equity interest in the Company on a non-diluted basis. This right has expired.

4.4 Environmental Liabilities

There are no known environmental liabilities associated with this property.

4.5 Other Significant Risks and Factors

The author knows of no other significant risks or factors that may affect title, access or the right or ability to perform work on the Herbert Property.

4.6 Permits

The property is entirely on Federal lands administered by the U.S. Forest Service. The area has a land use designation as semi-remote recreation with a minerals overlay. Forest lands within this designation are open to minerals exploration and development, and guidelines allow reasonable access according to the provisions of an approved Plan of Operations. Exploration on the property has proceeded under approved Plan of Operations since 2009; although at present the project likely will be impacted by the Sequoia Forestkeeper v. Tidwell lawsuit requiring all permits nationwide to undergo NEPA review including public notice, comment, and administrative appeals provisions. At the effective date of this report, the 2021 U.S. Forest Service Plan of Operations has been approved.

A baseline water sampling program by Admiralty Environmental started at the project site in 2012, concluding 2014. The purpose of the program was to assess baseline water quality at the Herbert project site prior to any major operations taking place. Admiralty Environmental, in consultation with some of the resource management agencies that would be part of the future permitting process, had selected ten surface sampling sites both above and below the proposed mining area. These locations have been analyzed for a wide range of materials including trace metals, solids, mineral content, cyanide and explosion residues such as nitrate and ammonia. Additional sampling in 2012 included groundwater sampling locations. The government agencies will eventually use the data collected to draft permits and establish monitoring regimes based on potential environmental impacts to the site.

A City/Borough of Juneau exploration permit had been submitted has been approved as of the date of this report.

5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPY (Item 5)

Note: Much of this material is excerpted from Van Wyck and Burnett, 2012 Technical Report on the Herbert Property.

The Herbert Property is located within the Juneau Recording District, approximately 32 km northwest of Juneau, Alaska – along the eastern shore of Lynn Canal (Error! Reference source not found.). Juneau is not directly accessible by road, although there are road connections to several areas immediately adjacent to the city. Primary access to the city is by air and sea. Cars and trucks are transported to and from Juneau by barge or the Alaska Marine Highway ferry system. There are also several taxicab companies, and tour buses used mainly for cruise ship visitors.

The City and Borough of Juneau is a unified municipality located on the Gastineau Channel in the panhandle of the U.S. state of Alaska and the 2nd largest city in the United States by area. It has been the capital of Alaska since 1906, when the government of the then-District of Alaska was moved from Sitka as dictated by the U.S. Congress in 1900. Juneau International Airport serves the city and borough of Juneau. Delta Airlines and Alaska Airlines are commercial jet passenger operators servicing Juneau. Seattle is a common destination for Juneau residents. Wings of Alaska, Alaska Seaplanes, and Air Excursions offer scheduled flights on smaller aircraft to villages in Southeast Alaska. Some air carriers provide U.S. mail service.

Juneau is a regional mining center supporting active mining operations at Greens Creek and Kensington. It is well provided with qualified support personnel. Other nearby communities including Haines and Skagway add to the potential employment base.

Access to the property is currently by helicopter from Juneau but the main public paved highway (Glacier Highway or Route 7) from Juneau to Berners Bay passes 5.5 km west of the property where it crosses the Herbert River. Physiographically, there is no obvious impediment for road access from the highway to the property along a route following the Herbert River. The most likely hurdle for direct access to the property from the public highway will be permitting, as this route is likely to include wetlands. The Herbert property lies on the western flank of the Coast Range Mountains. Terrain varies from moderate to rugged within the project area (Photo 1), ranging in elevation from 40m to 1200 meters above sea level. Vegetation ranges from dense alder brush to bare rock. The Herbert Glacier terminates at the eastern edge of the claim block. Its rapid retreat in the past 30 years is responsible for the recent exposure of large areas of bare rock at low elevations. Bedrock exposure

produced by this retreat is transitory, as rapid vegetation growth is advancing at a similar rate.

Photo 1. Photograph of Herbert Property

Juneau features a humid continental climate though just short of being subarctic. The city has a climate that is milder than its latitude may suggest, due to the influence of the Pacific Ocean. Winters are moist and long, but only slightly cold by Alaskan standards: the average low temperature is 23 °F (−5 °C) in January, and highs are frequently above freezing. Spring, summer, and fall are cool to mild, with highs peaking in July at 65 °F (18.3 °C). Snowfall averages 86.8 inches (220 cm) and occurs chiefly from November to March. Precipitation falls on an average 230 days per year, averaging 62.5 inches (1,590 mm) at the airport (1981–2010 normals), but ranging from 55 to 90 inches (1,400 to 2,290 mm), depending on location.[9] The spring months are the driest while September and October are the wettest months.

6 HISTORY (Item 6) (THIS SECTION HAS LARGELY BEEN EXCERPTED FROM Van Wyck and Burnett, 2012).

Early exploration of the property was hampered by the previous cover of the Herbert Glacier for the much of the last century. Glacial retreat has exposed additionl bedrock exposure during the past century. Two named prospects (St. Louis and Summit) and a 22 foot shaft at high elevations were identified in 1889 (Barnett and Miller, 2003). The Juneau Gold Belt hosts numerous high grade gold deposits that were active from 1883 until 1943 and is likely that the project area was prospected at that time. Current interest in the project area began in 1986 when claims were staked to cover several obvious quartz veins. At this time Houston Oil and Minerals discovered the main gold bearing quartz veins in outcrops recently exposed by the retreating ice. They drill tested these prospects with 8 holes (BQ size) totaling 1,100 m. Some of the historical data is somewhat vague as there was additional shallow "Winky" drilling with as much as 230 m completed from 11 holes. Although encouraging assay results from 19 dill holes were received, Echo Bay abandoned the property as part of their divestiture of its Alaskan proprterties.

In 1997, a group of three local prospectors (d.b.a. JEDI) purchased the core Herbert claims. In 2006 the property was brought to the attention of a previous owner who signed a mining lease with JEDI effective November 1, 2007. A field program in 2007 resulted in the collection of 299 rock ship, soil, and stream sediment samples and the initiation of a property wide geology map.

7 GEOLOGICAL SETTING AND MINERALIZATION (Item 7)

7.1 Regional Geology

The Herbert Property is situated in close proximity to the Coastal Shear Zone – a major crustal dislocation defined by northwest striking penetrative foliation. This structure parallels the boundary between the Gravina belt to the west and the Taku terrane to the east (Figure 3).

The Gravina belt comprises Upper Jurassic to Mid-Cretaceous marine argillite and greywacke, interbedded andesite to basaltic volcanic and volcaniclastic rocks, and plutons ranging from quartz diorite to peridotite (Gehrels and Berg, 1992 and 1994). The Taku terrane differs from the Gravina belt by having an older Permian to Triassic aged basement consisting of marbles, phyllites, pillowed basalts, and flysch-related rocks, which are overlain by Upper Jurassic to Mid-Cretaceous greywackes and, likely, related to similar aged rocks in the Gravina belt. Metamorphic grade ranges from greenschist to amphibolite facies and generally increases from west to east. Regional metamorphism and deformation, including the Coastal Shear Zone, are broadly linked to emplacement of multiple intrusive rocks in the Coast Mountains with isotopic ages ranging from 10 to 55 Ma (Gehrels and Berg, 1994).

7.2 Property Geology (excerpted from Van Wyck and Burnett, 2011)

Published regional geologic mapping (Figure 3) indicates that Herbert Gold project is largely hosted in units KPsv and TKt. To date the majority of the mapping and drilling has been within a quartz diorite stock or sill that hosts the mineralized veins. Although there is no independent mapping or geochronology evidence in support, it seems reasonable to correlate the quartz-diorite stock with regional map unit TKt and a belt of deformed metasedimentary rocks on the western edge of the claim block with map unit KPsv. Many drill holes from the western-most drill pads exited the diorite into strongly foliated metasedimentary rocks confirming the strongly tectonized contact between the two units. Herbert Gold Project consists of, at present, three principal and parallel sets of east-northeast- trending quartz veins hosted in quartz-diorite. The veins consistently dip steeply to the north with a minor NE trending vein set splaying off or intersecting the main vein set. Vein thicknesses range from several meters to decimeters and within the host structures occasionally several generations of veining can be observed. This leads to variable mineralized thicknesses noted both at the surface and in drill intercepts with mineralized widths up to 8 m true thickness occasionally encountered, but importantly even if vein thicknesses are variable, drilling at present shows consistent down-dip continuity of the host structures. Descriptions of closely adjacent prospects suggest that the quartz-diorite host is a unique feature to the Herbert Gold Project as the other prospects are all metasedimentary-hosted.

The mineralogy of the veins is dominantly quartz with lesser carbonate, arsenopyrite, pyrite, galena, sphalerite, scheelite and occasionally visible gold. Visible gold tends to occur associated with galena in the veins. Vein textures commonly show shearing, grain-size reduction and structural offsets indicating mineralization was continuous with deformation Alteration extends as much as several meters into the wallrock adjacent to the veining consisting of sericite, chlorite and carbonate-altered quartz diorite. As a result of the preferential erosion of the alteration selvages, steep walled canyons typically mark the locations of the veins on the project. These gullies are easily visible on aerial photos and provide a convenient prospecting tool.

Mineralization

Gold mineralization is associated with sulphide-bearing quartz veins that are constrained to structures transecting lithologies, including the predominant host rock, quartz diorite. Minor gold values have been obtained in schistose rocks, generally adjacent to quartz diorite units. These quartz veins are generally eastwest +/- striking and occupy recessively weathering domains within the quartz diorite.

Figure 3 Local Geology of Herbert Property Area

Photo 2. Photo of the Goat Vein structure (purple line), viewed to the east (C. Hale, 2018).

Photo 3. Crew cutting a conventional channel sample on the Goat Vein. (C. Hale, 2018).

8 Deposit Types (Item 8)

The Juneau District hosts a variety of mesothermal gold deposits hosted within metamorphosed sedimentary rocks (schists) and associated intrusions within structurally controlled settings. These appear to be related to the large Coast Range Megalineament.

The Juneau Gold Belt (JGB) has been Alaska's largest lode gold producer, yielding approximately 7.0 million ounces of gold, largely from the Alaska-Juneau and Treadwell mines. An equal amount of gold reserves are estimated to be still present within the Alaska-Juneau and Kensington mines (Swainbank et al., 1991. Deposits of the JGB are located on either side and within a few kilometers of a major crustal structure termed the Coast Range Megalineament (Figure 3). Auriferous veins show a strong spatial association with the relatively competent igneous bodies of varied composition: These rocks are, however, much older than the veining (Goldfarb et al, 1993). The veins are also associated with greenschist facies rocks of an inverted metamorphic gradient of up to 8 km in thickness (Himmelberg et al., 1991).

Gold- veins along 200 km of the Coast Range Megalineament were emplaced between 56 – 55 Ma, near the end of a 60 m.y. period of orogenic activity (Goldfarb et al, 1991b). Relaxation along this shear zone, during a shift from orthogonal to more oblique convergence and resulting strike-slip motion, is hypothesized as having led to increased permeability and widespread fluid migration. A belt of tonalitic plutons were intruded approximately 5 km east of the megalineament between 68-61 Ma (Barker et al., 1986; WOOD ET AL., 1991).

9 EXPLORATION (Item 9)

Exploration on the property consists of a property-scale rock chip, stream silt, and soil sampling program started in 2007 and continued to a lesser degree during the 2010 and 2011 drilling programs. Two hundred and ninetynine (299) samples collected and assayed in 2007 are recorded in the property database. Samples have been collected from 50% of the project area. There has been no systematic grid sampling program, which is appropriate based on the exposure level and the narrow, high-grade targets sought. A high-resolution aerial photograph covers the entire claim block and a detailed 5 m spacing contour map has been prepared in a digital format over 12.5% of the claim area.

A hand-drafted geologic map centered on the drill targets at an approximate scale of 1:10,000 has been compiled onto the 5 m spacing contour map. The high-resolution aerial photograph is particularly useful on account of the large areas of rock exposure and the association of veining with pronounced linear features, making it a valuable prospecting tool.

The 2007 sampling results show that all the major vein structures have been covered by multiple surface samples on the claim block. The majority of the anomalous gold samples are located on the northern portion of the claim block on the Main, Deep Trench, and Goat veins. South of this area the number of anomalous gold samples decreases, where only a single sample out of a population of 112 returned a measured value above 5 ppm Au. This area with low surface gold values correspond to that portion of the claim block south of the 6487400 Northing, comprising approximately half the area of the claim block.

The rock chip program was successful in identifying veins with anomalous gold values. Exposure limitations results in non-uniform sampling making it difficult to apply the results to quantitative resource modeling. In 2011 a small channel sampling program was started across surface exposed veins. Four trenches (A through D) totaling 19.72 m across the Deep Trench Vein were collected using a portable rock saw. The method consisted two parallel cuts approximately 3 cm deep and 6 cm wide and sample lengths on the order of 0.5 to 1.5 m long. The samples collected approximated a drill core rock volume and typical sample length. This is a valuable exploration tool precisely because it standardizes the sampling process and was incorporated into the solid resource model. It was because of this standardized sampling of the trenches that it was decided by DRW to incorporate the trench results into the resource model.

During the 2012 site visit by a coauthor to the author's previous report and all check assay samples collected from the property provided excellent agreement with reported assay values, testifying to the repeatability of this sampling method.

Substantially all work completed in 2012 consisted of diamond drilling with minor field mapping and sampling.

In 2018 a LiDAR survey was completed by Quantum Spatial covering 1,826 hectares (4,512 acres) delivering 1 m Bare Earth (DEM) Highest Hit Surface Model (DSM), and Intensity images. Deliverables included 0.5m contours, DSM and a DTM.

10 DRILLING (Item 10)

In 2010 Grande Portage commenced a drilling campaign on the previously identified targets. The 2010 drilling program comprised 16 NQ diamond drill holes totalling 2,600 meters. The best intercept was from hole DS 10C-1 from 119.29 to 120.9 grading 12.9 gpt gold.

In 2011 an additional 30 NQ diamond drill holes totaling 5,181 m were drilled. Results were encouraging and are highlighted by:

  • DDH 11E-2 from 137.1 152.37m returned 35.52 gpt gold over a width of 15.93m (true width of 8.76m)
  • DDH 11E-1 from 107.0 115.82 graded 12.8 gpt gold over a trued width of 6.97m

In addtion a total of 19.72m of hand-held rock saw channel samples from four trenches across the Deep Trench Vein outcrop trace were collected. The highest value returned (Trench A) a weighted average of 6.48 gpt gold over 6.13 meters.

During the 2012 exploration campaign, 62 holes totaling 8805.03 meters were completed. That does not include three failed holes with the small drill which total up to 29.87 meters. The large drill recovered NQTW diameter core and the small obtained BQTW diameter core. In addition, 23 BQ holes (300 series) were drilled.

Many high-grade intersections were obtained from several of the veins. These results are highlighted by hole 326B2, drilled on the western Deep Trench vein, intersected rich mineralization consisting of 11.58 metres (6.14 metres true thickness) of 24.37 grams per tonne gold (0.712 ounces per ton)

In 2017 a drill program consisted of 12 NQ diamond drillholes totaling 3,709 metres from four drill pads. A total of 493 core assays were collected. Core was flown either to the nearby road for truck transport to the logging facility, or to the airport where it was picked up and trucked to the logging facility.

In 2018 a drill program consisted of 15 NQ drillholes totaling 4751.1 m and 2 PQ drillholes totaling 121.0m from two drill pads and two sawn channel cuts totaling 2.1 m.

All drillhole information is shown on the Table 4 below.

dh_id Easting Northing Elev__m az dip td__m
88H-19 518061.3 6487876 49 170 -75 112.78
88H-18 518111 6487880 65 170 -85 144.48
88H-17 518164 6487911 93 170 -70 144.17
88H-16 518236 6487880 111 170 -45 60.4
88H-15 518298 6487892 135 170 -80 138.99
88H-14 518366.1 6487932 130 170 -75 138.99
88H-13 518443.2 6487906 181 170 -75 96.93
88H-12 518550 6487891 198 170 -80 60.05
88H-11 518468.8 6487906 189 170 -65 114.91
88H-10 518494.8 6487900 191 170 -75 92.05
88H-9 517934.2 6487803 43 170 -45 56.69
88H-8 517989.1 6487836 43 170 -45 60.05
88H-7 518055 6487832 45 170 -45 34.75
88H-6 518083 6487861 47 170 -45 65.23
88H-5 518145 6487875 70 170 -45 88.09
88H-4 518211.6 6487871 92 170 -45 59.44
88H-3 518264.9 6487861 123 170 -45 42.67
88H-2 518332 6487876 133 170 -45 53.34
88H-1 518391 6487878 143 170 -45 42.98
326D 518157.5 6487688 124.44 222 -57 92.35
326C 518158.5 6487687 124.7 190.5 -45 92.35
326B2 518158.7 6487688 124.71 162 -61.5 117.04
326B 518159.3 6487688 124.85 162.5 -61 91.44

Table 4. All drill hole location in NAD 83 Z.8, azimuth, dip and total depth (in metres).

326A 518159.6 6487687 124.63 161 -41 73.76
315F 518093.9 6487678 69.82 335 -44 46.63
315E 518094.4 6487678 69.77 302 -62 88.39
315D 518094.1 6487678 69.59 303 -42 61.87
315C 518093.2 6487676 69.9 211 -45 95.4
315B 518095 6487675 69.92 175 -43 114
315A 518096.2 6487677 70.26 127 -44 100.58
312B 518213.9 6487685 127.22 204 -45 73.15
312A 518214 6487685 127.19 180 -45 60.96
311D 518279.9 6487683 129.79 154 -63 76.81
311C 518280.2 6487683 129.84 155 -42 55.17
311B 518277.2 6487684 130.19 206 -60 74.37
311A 518277.3 6487684 130.46 206 -41 54.86
310B 518246.7 6487677 122.73 188 -59 77.42
310A 518246.6 6487677 122.84 186 -44 61.87
309D 518312 6487685 146.11 140 -45 54.86
309C 518311.1 6487684 146.22 183 -70 94.18
309B 518311.1 6487684 146.22 182 -63 83.21
309A 518311.5 6487683 145.84 180 -42.5 67.06
12O-9 518456 6487941 183.53 203 -54 145.69
12O-8 518455.9 6487941 183.5 201 -43 200.25
12O-7 518457.8 6487941 183.62 146 -67 136.86
12O-6 518457.9 6487941 183.61 147 -58 142.95
12O-5 518458 6487941 183.64 147 -43 173.13
12O-4 518457.4 6487941 183.55 177 -81 231.34
12O-3 518457.4 6487941 183.54 175 -68 174.96
12O-2 518457.4 6487941 183.53 173 -58 127.73
12O-11 518456.1 6487941 183.38 203 -70 179.53
12O-10 518456 6487941 183.53 202 -63 167.34
12O-1 518457.5 6487941 183.58 173 -47 352.96
12J-7 518115.7 6488102 60.52 219 -64 152.4
12J-6 518115.3 6488102 60.47 224 -43 154.53
12J-5
12J-4
518117.1
518117.4
6488101
6488101
60.66
60.65
131
122
-71.5
-43
182.58
121.01
12J-3 518117.2 6488101 60.66 135 -63 152.1
12J-2 518117 6488101 60.64 180 -74.5 142.95
12J-1 518117 6488100 60.69 180 -63 118.87
12H-1 518440.2 6487732 227.48 181 -42 303.89
12G-6 518330.5 6487736 150 150 -68 202.39
12G-5 518330.7 6487735 149.98 158 -60 148.74
12G-4 518330.9 6487735 149.98 158 -47 138.07
12G-3 518330.1 6487736 150 182 -57 371.75
12G-2 518329.9 6487736 149.99 213 -63 213.06
12G-1 518329.5 6487735 149.99 213 -55 185.32
12F-5 518088.4 6487703 67.27 220 -43 128.93
12F-4 518091.2 6487703 66.94 178 -62 160.93
12F-3 518091.3 6487702 66.82 177 -53 157.37
12F-2 518092.4 6487704 67.35 133 -68 197.91
12F-1 518092.6 6487703 67.48 132 -56 158.19
11J-1 518117.2 6488101 60.55 170 -45 121.62
11I-7 518007 6487878 44.2 208 -80 243.84
11I-6 518007.9 6487879 44.2 115 -70 210.01
11I-5 518007.3 6487879 44.2 115 -45 161.24
11I-4 518005.8 6487877 44.24 208 -65 171.3
11I-3 518005 6487877 44.24 208 -45 131.06
11I-2 518006.3 6487878 44.24 170 -75 182.88
11I-1 518006.3 6487876 44.8 170 -45 388.95
11G-8 518332 6487736 150.5 125 -61 197.82
11G-7 518332.2 6487736 150.5 125 -45 164.9
11G-6 518331.2 6487736 150.26 180 -73 231.65
11G-5 518331.3 6487736 150.27 180 -63 155.45
11G-4 518331.3 6487734 150.72 180 -45 121.92
11G-3 518330.1 6487735 151.17 210 -69 145.69
11G-2 518329.4 6487735 149.93 210 -45 152.4
11G-1 518329.4 6487735 149.97 227 -57 261.82
11F-3 518090 6487702 67 180 -70 179.53
11F-2 518090 6487701 67 180 -45 72.85
11F-1 518091.5 6487702 67 145 -45 124.66
11D-3
11D-2
518530.7
518527.5
6487933
6487932
184.52
184.58
135
234
-52
-69
116.74
173.13
11D-1 518527.1 6487932 184.58 235 -45 160.63
11C-3 518186 6487920 102.38 143 -52 175.56
11C-2 518184.9 6487920 102.38 178 -63.5 189.89
11C-1 518183.7 6487921 102.11 226 -54 197.51
10D-3 518527.5 6487932 184.58 233 -67 99.36
10D-2 518529.5 6487933 186 170 -82 158.5
10D-1 518529 6487932 184.55 170 -73 135.94
10C-2 518184.2 6487921 102.2 220 -54 101.19
10C-1 518185.2 6487920 102.2 170 -45 134.11
10B-3 518781.3 6487675 333.63 150 -45 98.7
10B-2 518779.5 6487675 334.21 210 -75 231.34
10B-1 518779 6487673 332.87 210 -45 228.6
10A-7 518358.5 6487951 126.3 200 -70 198.4
10A-6 518357.9 6487950 126.3 200 -50 173.7
10A-5 518359.4 6487951 126.29 170 -65 183.5
10A-4
10A-3
518359.4
518359.8
6487950
6487952
126.39
126.3
170
140
-45
-85
341.38
45.72
10A-2 518360.6 6487951 126.3 140 -65 200.25
10A-1 518360.9 6487951 126.3 140 -45 152.25
12E-1 518203 6487728 135.59 180 -51 153.62
11E-1 518203.5 6487728 135.69 185 -46 164.28
10E-1 518204.6 6487729 135.68 210 -45 117.04
12E-2 518203 6487728 135.66 182 -65 216.16
11E-2 518203.5 6487728 136.2 185 -62 161.24
12E-3 518201.8 6487728 135.59 215 -40 189.89
11E-3 518203.5 6487728 136.2 190 -72 231.34
12E-4 518202 6487728 135.57 215 -52 189.89
11E-4 518201.6 6487728 136.2 220 -49 152.4
12E-5 518202.2 6487728 135.58 204 -49 167.03
11E-5 518204.6 6487729 135.68 150 -49 138.68
12E-6 518202.2 6487728 135.55 206 -60 197.51
12E-7 518202.4 6487728 135.57 163 -41 157.58
12E-8 518202.3 6487728 135.57 163 -56 166.09
12E-9 518202.2 6487728 135.59 163 -69 203.91
17K-1 518019 6488115 73 215 -45 173.736
17K-2 518019 6488115 73 215 -73 257.4341
17K-3 518019 6488115 73 165 -45 180.594
17K-4 518019 6488115 73 165 -75 214.5792
17L-1 518180 6488150 70 130 -45 192.024
17L-2 518180 6488150 70 130 -75 272.1864
17L-3 518180 6488150 70 170 -45 429.1584
17L-4 518180 6488150 70 170 -80 232.5624
17U-1 518421 6488011 132 165 -50 502.4628
17U-2 518421 6488011 132 165 -78 288.036
17Y-1 518265 6487893 115 180 -55 449.58
17Y-2 518265 6487893 115 145 -63 516.636
18S-1 518273 6487682 141 155 -50 54.6
18S-2 518273 6487682 141 155 -65 66.4
18M-1 518130 6488262 85 335 -45 193.5
18M-2 518130 6488262 85 21 -45 199.3
18M-3 518130 6488262 85 116 -49 327.7
18M-4 518130 6488262 85 116 -70 356.6
18M-5 518130 6488262 85 116 -81 418.8
18M-6 518130 6488262 85 127 -45 286.1
18M-7 518130 6488262 85 127 -61 327.1
18M-8 518130 6488262 85 171 -45 546.5
18M-9 518130 6488262 85 171 -61 297.8
18M-10
18M-11
518130
518130
6488262
6488262
85
85
171
171
-77
-82
388.9
428.2
18M-12 518130 6488262 85 200 -55 454.2
18M-13 518130 6488262 85 200 -67 405.4
20T-1 518363.0 6488196.0 145.0 168.0 -45 5.2
20T-2 518363.0 6488196.0 145.0 168.0 -63 83.5
20T-2B 518363.0 6488196.0 145.0 168.0 -53 406.9
20T-3 518363.0 6488196.0 145.0 168.0 -70 538.9
20T-4 518363.0 6488196.0 145.0 168.0 -87 373.7
20T-5 518363.0 6488196.0 145.0 122.0 -45 231.3
20T-6 518363.0 6488196.0 145.0 134.0 -41 468.8
20T-7 518363.0 6488196.0 145.0 134.0 -58 513.3
20T-8 518363.0 6488196.0 145.0 191.0 -55 510.5
20T-9 518363.0 6488196.0 145.0 191.0 -42 463.0
20T-10 518363.0 6488196.0 145.0 338.0 -45 314.9
20T-11 518363.0 6488196.0 145.0 134.0 -74 557.3
20T-12 518363.0 6488196.0 145.0 156.0 -58 488.1
20U-1 518418.0 6488009.0 128.0 184.0 -43 491.6
20U-2 518418.0 6488009.0 128.0 166.0 -57 598.6
20U-3 518418.0 6488009.0 128.0 166.0 -64 311.8
20U-4 518418.0 6488009.0 128.0 112.0 -49 311.5
20H-1 518441.0 6487736.0 228.0 130.0 -45 192.6
20H-2 518441.0 6487736.0 228.0 130.0 -67 223.7
20H-3 518441.0 6487736.0 228.0 170.0 -45 494.4
20Y-1 518262.0 6487898.0 122.0 173.0 -45 357.2
20Y-2 518262.0 6487898.0 122.0 160.0 -62 460.9

In addition, a series of short channel samples have been cut across the veins where possible. These have been treated as horizonal drill holes in this report and include:

dh_id easting northing elev__m az dip td__m
GC1 518266 6488064 76 175 0 2
GC2 518261 6488063 76 175 0 2
DTV1 518415 6487656 186 175 0 1
DTV2 518415 6487655 186 175 0 2
DTV3 518415 6487657 186 175 0 1
DTV4 518415 6487658 186 175 0 1
MVHW1 518312 6487858 76 175 0 1
MVHW2 518312 6487857 76 175 0 1
MVHW3 518312 6487859 76 175 0 1
MV1 518517 6487864 110 175 0 2
MV2 518517 6487865 110 175 0 1
MV3 518517 6487864 110 175 0 1
MV4 518517 6487865 110 175 0 2
MVHW4 518172 6487832 74 175 0 2
MVHW5 518172 6487833 74 175 0 1
MV5 518175 6487817 85 175 0 1
MV6 518175 6487816 85 175 0 1
MV7 518175 6487816 85 175 0 2
MV8 518251 6487824 85 175 0 2
MV9 518251 6487825 85 175 0 2
DTV5 518150 6487643 94 175 0 2
NV1 518157 6488350 90.9 175 0 1
NV2 518157 6488350 90.9 175 0 1
NV3 518174 6488347 90.9 175 0 1

Table 5. Location of surface channel samples

the control of the control of the the control of the con-
NV4 518174 6488347 90.9 175 0 1
EV1 518563 6487379 292 175 0 1
EV2 518563 6487379 292 175 0 1
EV3 518563 6487379 292 175 0 1
EV4 518563 6487379 292 175 0 1
EV5 518563 6487379 292 175 0 1
EV6 518563 6487379 292 175 0 1
Trnch_D 518190 6487651 111 170 -3 4.51
Trnch_C 518174 6487650 105 170 -1 4.58
Trnch_B 518160 6487649 99 170 -3 4.5
Trnch_A 518149.5 6487648 91.6 170 -3 6.13

All drill holes were designed to intersect the quartz veins as close to perpendicular as possible but given the fannature of the drilling as constrained by pad locations, these intercepts ranged from close to 90 degrees to as shallow as 30 degrees.

11 SAMPLE PREPARATION, ANALYSIS AND SECURITY (Item 11)

11.1 Sample Preparation

  • Transportation: Core was slung by helicopter in supersacks to either the secure Coastal Helicopter hanger area where it was received or to a staging area beside the highway 5 km west of the Project.
  • Core was laid out on logging tables in the warehouse by crew or when the tables were full, stored on pallets in the front open area inside.
  • Initial Processing: Geotech crew converted all marker blocks in boxes into metric numbers, straightened and arranged the core to approximate original bedrock alignment and cleaned the core in preparation for photographing.
  • Geotechnical information was gathered at this point. Core recovery, RQD measurements and rock competency determinations were noted.
  • Geologists marked the core and boxes for intervals that were sampled and placed the numbered sample tag at the start of the interval. The tags were stapled at the start of the interval to be sampled so the number is clearly visible in the photographs. Tags were reserved and removed from the sequence in the boxes at this point and blanks and standards were inserted. Sample tickets have two tear-off tags; one was placed in the corebox and one was placed inside the sample bag.
  • o Standards were inserted at the rate of 5% or one for every 20 samples.
  • o Blanks were used at the same rate in general except that they were inserted after high grade intercepts were expected or noted.
  • Photographing: Photos of each box were taken by the geotechnician with the label board clearly and accurately marked for hole number, box number and footage. Photos were given to the project geologist on SD card for renaming files and storing in master computer.
  • The core was logged by geologist after photographing.

  • Sampling: After the geologist confirmed that the hole or part of the hole was through being logged, the geotech crew saws/splits the sample intervals.

  • o The splitter determines how best to cut the core so both halves are equally mineralized and also maintain the structural integrity of the remaining half so future inspection is most meaningful.
  • o The sample intervals are sawn and bagged with plastic bags used inside of cloth bags for highly broken, powdered, gougey, crumbly, or clay-rich samples or just canvas bags for competent intervals. Sample tags for that interval are placed inside the bag with the sample and the sample number was written on the outside of the bag in permanent marker.
  • o The sample saw was kept clean with care taken after cutting samples from a known high grade mineralized zone.
  • Bagging and Shipping: Samples were placed inside the secure warehouse in the area reserved for shipment preparation.
  • After the hole was finished being sampled, the sample transmittal forms were filled out and the individual samples were aggregated in larger rice bags, labeled for shipment and delivered to Bureau Veritas Laboratories for preparation. The prepared samples were shipped by commercial carrier to Bureau Veritas's analytical facilities in Richmond, B.C. BVI is independent of the company and is ISO 9001:2015 certified.

The author's opinion is that the sample preparation, security and analytical procedures are appropriate for this project.

11.2 Security

Core logging facilities and core storage containers were locked at all times when not under direct supervision and observation by Company employees. Special care was taken to keep core in order so that no mistakes made in number recordation, notes, sequences, bag labeling, photographing, etc. Communication between Coastal Helicopters, drillers, and Company personnel were maintained during transport. Time for core storage at Coastal Helicopters hanger was kept to a minimum.

Sample shipments to the BVI prep lab in Juneau were made for each hole as soon as the samples are cut and bagged.

11.3 Sample Analyses

Preparation Procedures

The samples are entered into the Laboratory Information Management System (LIMS), weighed, dried and crushed to ensure that greater than 70% pass a 2mm sieve. A 250g split of the crushed material is then pulverized to greater than 85% passing a 75µm sieve. At random intervals and at the start of each shift QC testing is completed on both crushed and pulverized material to ensure that the above specifications are met.

Analytical Procedures

AQ370 - Aqua regia digestion Ore Grade ICP analysis:

1g sample split is digested with a modified Aqua Regia solution of equal parts concentrated HCl, HNO3 and DI H2O for one hour in a hot water bath. Sample is made up to volume with dilute HCl in class A volumetric flasks.

MA300 - HF-HNO3-HClO4 acid digestion:

Prepared sample is digested to complete dryness with an acid solution of (2:2:1:1) H2O-HF-HClO4-HNO3. 50% HCl is added to the residue and heated using a mixing hot block. After cooling the solutions are transferred to test-tubes and brought to volume using dilute HCl. Sample splits of 0.25g are analyzed.

FA430 - Precious Metals by Lead Collection Fire Assay

30 or 50g of prepared sample is custom-blended with fire-assay fluxes, PbO litharge and a silver inquart. Firing the charge at 050ºC liberates Ag, Au and PGEs that report to the molten Pb-metal phase. After cooling the Pb button is recovered, placed in a cupel and fired at 950ºC to render a Ag, Au and PGEs dore bead. The bead is then either digested with nitric and hydrochloric acids for instrumentation determination or weighed and parted with nitric acid to dissolve Ag leaving gold which is weighed directly. Ag is determined by difference of the dore bead from the gold in gravimetric analysis.

FS600 - Metallic Screen Fire Assay

Prepared samples of 500g samples are screened through 150 mesh (106 µm) screens producing 2 sample fractions for analysis. The plus fraction is analyzed in its entirety by fire assay with gravimetric finish and reported as +Au. The minus fraction is analyzed by fire assay with AA or ICP finish either once or in duplicate at 30 or 50g charge weight depending on client request and reported as –Au. If values exceed 10ppm in the minus fraction the minus fraction may also need to be analyzed with gravimetric finish. Gold values of both fractions are reported along with a total gold content of the sample. (Alternative screen sizes / weights available upon request) Fire assay is performed by custom-blending samples with fire-assay fluxes, PbO litharge and a Ag inquart. Firing the charge at 1050⁰C liberates Ag ± Au ± PGEs that report to the molten Pbmetal phase. After cooling the Pb button is recovered, placed in a cupel and fired at 950⁰C to render a Ag ± Au ± PGEs dore bead. The bead is digested for ICP analysis or weighed and parted in ACS grade HNO3 to dissolve Ag leaving a Au sponge. Au is weighed for Gravimetric determination; ACS grade HCl is added dissolving the Au ± PGE sponge for Instrument determination.

LF100 - Lithogeochemical Whole Rock Fusion

Prepared sample is mixed with LiBO2/Li2B4O7 flux. Crucibles are fused in a furnace. The cooled bead is dissolved in ACS grade nitric acid and analyzed by ICP and/or ICP-MS. Loss on ignition (LOI) is determined by igniting a sample split then measuring the weight loss. Total Carbon and Sulphur may be included and is determined by the Leco method (TC000). The LF202 package includes an additional 14 elements from an aqua regia digestion AQ200 to provide Au and volatile elements which do not report as part of the LF200 package.

12 DATA VERIFICATION (Item 12)

The author reviewed all analytical data collected by the Company, including the standards and blanks that were submitted. The Company uses marble chips from Home Depot for its blank material.

Figure 4. 2020 Assays of blanks

Forty-eight blank samples were inserted into the sample stream. All yielded acceptable results except for one anomalous value at 0.020 gpt obtained. This is acceptable for a blank value as it is low enough value to not be of material concern in the author's opinion. The Company should however consider using certified blanks in the future.

Seven sets of commercial standards were inserted into the sample stream over the past 3 years which combined with the series of blanks provides for a robust quality assurance and quality control program. All standards reported within expected values.

Figure 5. Assays of OREAS 215 standard

Figure 6. Historic Assays of OREAS 217 standard

Figure 7. 2020 Assays of OREAS 217 standard

Figure 8. Assays of ORAES 10C standard.

Figure 9. Assays of OREAS 221 standard

Figure 10. Assays of OREAS 229 standard.

Figure 11. 2020 Assays of OREAS 238 standard

Figure 12. Historic Assays of OREAS 256 standard

Figure 13. 2020 Assays of OREAS 256 standard

The standards run by the Company all returned acceptable values from two certified independent laboratories and confirm that their QA/QC work in appropriate for this project in the author's opinion. Some high-grade standard should be considered for future work.

The author believes that the data is accurate for the purposes of this report.

13 MINERAL PROCESSING AND METALLURGICAL TESTING (Item 13)

In 2010 a sample prepared from cannibalized drill core was tested for "Bond Ball Grindability" and gold recoveries. The results cite a value of 15.7 kw/hr/tonne for work index (WI) and combined gold and silver recoveries of 91% and 78% respectively using gravity concentration and cyanidation of the concentrate and tails (G&T Metallurgical Services Ltd, 2011). The report recommends further metallurgical testing to understand the large consumption of sodium cyanide in the process. Though the metallurgical study consisted of representative material from the core, the material collected was uniformly from relatively low-grade material recovered from the 2010 drilling campaign and did not include the high-grade with visible gold drilled during the 2011 season.

In 2018, two samples were selected to determine the recoverability of gold using either whole-ore cyanidation as well as gravity plus flotation of the gravity tails at Bureau Veritas Commodities Canada Ltd's Metallurgical Division in Richmond B.C. ("BVI"). BVI is an ISO/IEC 17025:2005 accredited laboratory and is independent of the Company.

The presence of coarse free gold caused persistent scatters in gold head assay on the two test samples. Gold grades from direct fire-assay varied in a wide range from 92.6 to 167g/t in sample 54524, and from 19.5 to 34.1 in sample 339807.

Comminution Bond ball mill work index testing of representative splits from the two test samples indicated moderately hard characteristics of the test samples with respect to breakage in ball mills.

Preliminary metallurgical testing showed that both test samples responded well to whole-ore cyanidation and gravity+flotation process options. The response to each process option at a grind size of P80 105 m are presented in the table below.

Whole-ore Cyanidation Gravity+Flotation
Sample ID Au Recovery, % Ag Recovery, % Au Recovery, % Ag Recovery, %
54524 99.6 94.4 99.5 98.7
339807 98.4 81.5 97.7 90.6
Average 99.0 87.9 98.6 94.7

Figure 14. Summary of Gold Recoveries

The samples were collected from the Goat Vein in sawn channel cuts and the Deep Trench Vein by PQ drilling in areas where high-grade gold values had been obtained in previous sampling.

54524 339807
Analyte Unit Cut 1 Cut 2 Cut 1 Cut 2
Au g/mt 115.42 140.99 34.14 19.50
Au g/mt 167.06 92.60 $\blacksquare$ ٠
Au average g/mt 129.02 26.82
Ag PPM 68 33 ٠
Stot % 1.11 0.73 ۰
Hg ppm 1.34 2.27 ٠

Figure 15. Assay Head Grades of metallurgical test samples.

Sample ID Bond ball mill work index, kWh/tonne
54524 14.3
339807 147

Figure 16. Bond Work Index of two metallurgical samples

Test Sample Calculated Head 72 hours Recovery
Measured Head
Grind P80 NaCN
Residue Consumption (kg/t)
No ID um q/L Au $(q/t)$ Ag $(g/t)$ Au $(g/t)$ Ag $(g/t)$ Au (%) Ag (%) Au (g/t) Ag (g/t) NaCN Lime
C1 54524 101 2.0 129.02 68 125.24 71.2 99.6 94.4 0.49 4.0 2.38 0.18
C2 339807 104 2.0 26.82 33 21.93 37.8 98.4 81.5 0.35 7.0 3.08 0.44

Figure 17. Whole ore cyanidation performance

Figure 18. Gold and silver leach kinetics.

Gold Grade, g/t Au Gold Recovery, % Overall Recovery
Sample
ID
Test
No
P80 Size
$(\mu m)$
Meas, Head Calc. Head Gravity Flotation Gravity Flotation Mass, % Au, %
Conc. Conc. Conc. Conc.
58524 GF 1 150 129.02 105.07 66057 321.8 58.3 40.6 13.3 98.9
GF 2 105 129.02 105.05 45458 318.0 55.9 43.7 14.5 99.5
339807 GF3 150 26.82 24.76 5839 159.0 30.2 67.2 10.6 97.4
GF4 105 26.82 21.65 5516 144.4 27.6 70.2 10.6 97.7
Sample
ID
Silver Grade, g/t Ag Silver Recovery, % Overall Recovery
Test
No
P80 Size
(m m )
Meas, Head Calc, Head Gravity Flotation Gravity Flotation Mass, % Ag, %
Conc. Conc. Conc. Conc.
58524 GF 1 150 68 69 40691 225 54.5 43.0 13.3 97.5
GF 2 105 68 66 26515 217 51.5 47.2 14.5 98.7
339807 GF3 150 33 42 4397 321 13.4 80.1 10.6 93.6
GF4 105 33 38 4205 284 12.0 78.6 10.6 90.6

Figure 19. Gravity and flotation response

Analyte Unit 54524 339807
GF 1 Concl GF 2 Conc GF 3 Concl GF 4 Conc
Au g/t 321.8 318.0 159.0 144.4
Ag ppm 225 217 321 284
Stot % 8.44 8.08 6.19 5.61
As % 11.1 10.8 10.6 9.9
Hg ppm 10.6 10.1 17.8 15.3

Figure 20. Selected analysis of flotation concentrate.

The samples show that excellent recoveries can be obtained by whole ore cyanidation or gravity plus flotation methods. The mineralization where tested was very high-grade and may not represent average characteristics of the deposit. It is a moderately hard rock and contains high lead, zinc, silver, arsenic and mercury in flotation concentrates.

Further work should be completed on more average composites to determine what deleterious elements may be present in each vein system, and what each individual vein systems' recoveries might be.

14 MINERAL RESOURCE ESTIMATES (Item 14)

14.1 Resource Estimation Procedures

All reference to distance, tonnes, and grade are in SI units of metres (m), tonnes (t), and grams per tonne (gpt). All references to ounces will be troy ounces which are 31.1035 grams. North on the accompanying diagrams will be UTM grid north which is 0.38o east of true north at Juneau, Alaska.

A total of 175 diamond drill holes, 36 trenches with sawn channel cuts or continuous chip samples on the Herbert Property. Four thousand two hundred sixty two (4,262) ICP gold assays, 130 gold assays with gravimetric finish, 1,083 screened metallic gold assays and 3,301 ICP multi-element (33 element) analyses were considered. The author reviewed the data with the view to produce an updated resource estimate. A resource has been published for this property dated May 28, 2011, completed by Garth D Kirkham, P.Geo of Kirkham Geosystems Ltd. and later in April 2013 an updated resource was published by Dupre, D.G., and Webb, D.R. In July 12, 2018 an updated Mineral Resource was published by Webb, D.R. This work builds on the latest report.

All quartz vein intercepts were sampled, as well as the wall rock on either side of each vein. A total of 4,106 assay intervals for gold with values greater than detection limits have been obtained.

The nineteen 1986 - 1988 diamond drill holes were assessed statistically by ANOVA techniques as no core exists for direct validation. The drillholes constitute 12% of the drill hole (plus four trench) database and 5% of the total meters included. Other pertinent statistics are shown below in Table 6

Table 6. Selected statistics for 1988 drill holes.

1988 DDH Full Data
Assays >0 223 3,301
Range 0

142.7
0-432.9
Mean 2.05 2.87
Median 0.29 0.25
Standard Dev 10.56 17.96

Student T tests (2 sided, T=0.127) and Fisher F tests, two ANOVA tests used to consider whether sample populations are similar confirm that the 1988 drilling is part of the overall population at the >99th percentile. The author has no reason to suspect that the data is other than presented.

The database was validated and corrected as needed. The following sections detail the procedures, methods and strategies employed in creating the resource estimate for the Herbert Project.

Solid Model Construction

A series of cross sections generally spaced 20 m apart were developed for each of nine different zones where correlations between trends identified in gold assays, alteration zones, and multi-element data appears to exist down-dip on section and between sections. These correlations were corrected and modified as supported by surface mapping and geology.

MapInfo's 3D solid generation routine was used to construct three dimensional models from the sections. These were examined to conform to geology and all analytical data and adjusted where necessary.

Some areas provided multiple options for correlations that were permissive by geology and sample geochemistry. The correlation that best matched surface geology was selected. The Deep Trench vein was remarkable in the extreme simplicity and consistency in a very planar orientation of the correlations.

Figure 21. Typical east facing cross section showing vein correlations with drill hole traces on a 100 m grid.

Figure 22. Typical east facing cross section showing vein correlations with drill hole traces on a 100 m grid.

Assay Database

The database consists of 175 diamond drillholes and 36 trenches and sawn channel cuts (total 35,283.8 m). Nineteen diamond drillholes were completed by a previous operator in 1986 and 1988 (total 1,607.0m) (Van Wyck and Burnett, 2012). In 2010 and 2011 forty-six additional diamond drillholes were completed with collar and downhole surveys. Thirty-nine drillholes were completed in 2012. This and the four trenches (total 19.7m) provided the database for the previous resource estimate which only used the 2010 and 2011 drillholes due to uncertainty in the location of the collars and data quality (Van Wyck and Burnett, 2012). Twelve diamond drillholes totaling 3,709 m were completed in 2017. Surveys were not completed on all drill holes, however these were the shorter holes (<100m). An additional 13 drill holes and two sawn channel cuts were completed in 2018 with survey data. Twenty-two drill holes in 2020 add another 8,397.9 m of core. All data are considered by the author accurate for the purposes of this report

The logs were reviewed and selected assays compared to the raw data sheets. Minor from/to errors had been previously identified by the author, largely due to imperial/metric conversions. The author corrected these. Some survey data was found to be corrupted, and traced back to a bad survey instrument. These were corrected by applying a constant drift of +3 degrees azimuth and +3 degrees inclination as determined from the balance of the surveyed data. The collars, survey, and assay database has been verified and is considered appropriate for the purposes of this report.

All unsampled drill hole intervals were assigned -9 grade to facilitate resource calculations. Metallic or screened assays were used in all instances where they were available (1,083 samples). All other assays are standard one assay ton results reported using ICP finish or where over limit (>10 gpt) are reported using gravimetric finish.

14.1.1.1 Univariate Statistics

The univariate statistics for the entire database is shown on Table 7

Field Au gpt Ag gpt As ppm Pb ppm Zn ppm W ppm
CountValid 4106 3266 4092 3882 3808 3609
Minimum 0.0005 0.2 2.5 0.33 1 2
Maximum 432.88 4010 153000 31800 31200 6020
Mean 2.769 3.635 4460 165.4 134.4 75.6
Median 0.23 0.25 1423 15 103 20
Range 433 4010 152998 31799.67 31199 6018
Mode 0.002 0.2 15000 15 104 10
Variance 303.6 5067.52 70481432 1156616 373059 93644
SD 17.42 71.19 8395 1075 611 306

Table 7. Univariate statistics for the entire database.

The data was composited into 1.0 m lengths down hole with all unassayed, trace, or less than detection level samples given a negative value and treated as zero grade during the compositing procedure.

Table 8. Univariate statistics for 1.0 m composites as described.

Field Au gpt Ag gpt As ppm Pb ppm Zn ppm W ppm
CountValid 4765 3850 4706 4595 4556 4347
Minimum 0.002 0.002 0.090 0.030 0.350 0.040
Maximum 290 2866 100001 22841 21986 4423
Mean 1.729 2.574 2952 102 97 48
Median 0.146 0.250 883 12.000 83.364 12.0
Range 290.0 2865.5 100000.9 22840.5 21985.2 4423.3
Mode 0.001 0.2 15000 13 106 10
Variance 125 2435 32227184 440089 163896 34483
SD 11.16 49.35 5677 663 405 186

The log probability plot of the raw assay data shows a single population with a mean of 0.25 gpt gold, a high standard deviation of 200. The upper 0.13% of the population or assays greater than 316 gpt appears to be truncated as does the part of the lower-grade samples less than 0.10 gpt.

Figure 23. Log normal probability plot of the raw gold sample data.

The raw silver data shows a more complex distribution, characteristic of a large population of samples up to 140 gpt silver, mixed with a small population of higher-grade samples. A very high-grade sample (4,010 gpt) is clearly an outlier.

Figure 24. Log Probability of the raw silver sample data Topography

The topographic relief is fairly steep with valleys incised east-west across a generally rising trend from 40m AMSL to 340m AMSL to the east and then more rapidly rising to >600m AMSL to the southeast. Mapping has shown that mineralization extends to surface in places and that in places these outcropping zones are constrained to topographic lows. A LiDAR survey completed in 2018 complete with DEM was used to create contours for presentation.

Figure 25. Topography over drill area with known veins and LiDAR lineaments.

Density

A total of 30 mineralized samples from diamond drilling in 2012 were submitted for bulk density measurements (Table 9) to ALS for their determination using water immersion protocols (ALS OA-GRA09). The average density of 2.757 gm/cm3 is used in all calculations.

Table 9. Bulk density measurements on 30 mineralized intersections from the 2012 diamond drilling.
Recvd
SAMPLE Wt. B.D.
DESCRIPTION Kg g/cm3
1023405 1.42 2.76
1023406 1.26 2.76
1023407 0.58 2.66
1023408 1.95 2.83
1023409 2.34 2.78
1023410 1.07 2.85
1023411 2.22 2.82
1023412 1.09 2.73
1023413 0.84 2.63
1023414 1.68 2.78
1023415 0.92 2.80
1023416 1.58 2.71
1023417 2.05 2.79
1023418 0.93 2.83
1023419 0.58 2.73
1023420 1.78 2.78
1023421 0.51 2.70
1023422 1.13 2.77
1023423 1.03 2.76
1023424 0.71 2.74
1023425 1.38 2.75
1023426 0.63 2.75
1023427 0.56 2.63
1023428 0.55 2.78
1023429 0.58 2.78
1023430 1.17 2.75
1023431 1.08 2.71
1023432 0.56 2.72
1023433 0.82 2.74
1023434 0.57 2.89
Average 2.757

Figure 26. Density measurements on samples from Herbert Gold Project.

Bulk density samples are consistent with what the author expects to see on this project.

Compositing

For compositing and resource purposes, metallic assay data were used whenever they existed. All other data used the 1 assay ton values (1 AT). Composites over the length of the drillholes were calculated to a maximum of 1.0m in order to provide interval-independent grades over lengths that compromise between grade delineation and dilution.

Treatment of High-grade outliers

High-grade outliers are defined as ones that appear to deviate markedly from other members of the sample in which it occurs (Grubbs, F.E., 1969).

A lognormal probability plot of the 1.0m composite data within the vein data shows a single population with no deviation from a uniform population until Log 2.5 or 316 gpt where the probability plot shows a truncated population. This occurs at N-Score 3 meaning it only affects the upper 0.13% of the population. Similar to the raw assay data, the composite data shows a truncation of the lower assay population at about N-Score of -1.2 meaning the lowest 11.5% of the composites which grade less than 0.06 gpt are also under represented.

The raw assay data is overlain this figure for comparison.

Figure 27. The uncut composite data (blue) was cut to 125 gpt (green) to estimate the block grades (purple)

Variography

The low number of sample points provides no meaningful results from variography. Covariation plots on the two solids with the highest number of data points (Main Vein and Deep Trench Vein) reveal results consistent with the data trends.

Figure 28. Variography of Deep Trench Vein.

Block Model Estimate

A series of tabular blocks 1.5 m x 8m x 8m were rotated into the plan of the vein for each of the nine veins.

Only composites whose center lies within the solid were used in the estimation. Sub-blocking was not applied due to the small size of the blocks relative to the solids model.

Blocks were constrained to surface topography, and by geology. Blocks west of the inclined sedimentary contact on the western side of the Main Vein and Deep Trench Vein were permitted in this year's estimation as details on the intersections showed distinct correlatable vein intercepts within the metasediments.

Interpolation Method

The grades of each block were estimated using inverse distance squared methods. It was determined that there was insufficient data to estimate using variography. Estimation ranges of between 75 and 150m were tested and it was determined that 100m provided reasonable results. This is consistent with previous estimates.

Estimation Plans

A single pass search strategy was employed using the maximum supported ellipsoid size. The search ellipsoid was oriented to each solid to lie within the structure. A minimum of 2 and a maximum of 8 composites were

allowed for each block, with no restrictions on the maximum from each drillhole due to the oblique nature of many of the intercepts.

Figure 29. View of all of the vein solids, on general geology draped over topography. North to the top, quartz diorite is 900m across.

Validation of the Block Model

A graphical validation was done on the block model where cross sections, plans, and a 3D examination were conducted, testing intersections, solids and surface boundaries, and geology. Additional models were constructed removing selected drillholes to test for the robustness of the model. Each block appears to be well represented by the immediately adjoining composites as would be expected using the ID2 method. An Ordinary Kriged estimate using the same parameters and an automatically generated default isotropic nugget with an anisotropic variogram was run on the Deep Trench Vein and Main Vein as tests, providing similar results to ID2 .

Longitudinal cross sections and cross section populated with the resource blocks for the Deep Trench Vein are shown below with 50 m grids (red) and drill hole traces are shown.

Figure 30. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

Figure 31. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

Figure 32. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

Figure 33. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

Figure 34. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

Figure 35. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

Figure 36. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

Figure 37. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

Figure 38. North-facing inclined 40m thick longitudinal section showing resource blocks and drill hole segments on 100m grid (red lines).

14.2 Resource Statement

Surface mapping, trenching and diamond drilling demonstrates continuity of mineralization on sections and between sections and enables three dimensional solids models to be constructed. Further modeling of the diamond drill and trench information within the solids enables the grade distribution to be estimated. An analysis of the resource blocks in the Main Vein and Deep Trench Vein reveals that many of the blocks are within 60m of composites, and these form cohesive, well defined domains. It was decided to classify these blocks as Indicated Mineral Resources and the balance as Inferred Mineral Resources. The decision to use a 60 m cut off between Indicated and Inferred Mineral Resources is based upon a break in composite density near this point. All except less than 10% of these resource blocks classified as Indicate Mineral Resource achieve the maximum number of composites in their estimation. A US\$1,300 gold price is assumed to be reasonable for these estimation purposes.

The resource classification is presented on Table 10 and Table 11, Error! Reference source not found. (below) at various cut-offs. It is believed that for the location, geometry and grade distribution, it is reasonable to report the resource at the 3.0 gpt cut-off. All figures use a specific gravity of 2.757, tonnes are rounded to the nearest thousand and ounces are rounded to the nearest hundred.

Cut-off Tonnes Grade Au gpt Grade Ag gpt Ounces Au Ounces Ag
3.0 gpt 3,637,000 10.23 5.87 1,196,800 686,700
2.5 gpt 4,290,000 9.10 5.22 1,255,600 719,700
2.0 gpt 5,239,000 7.86 4.67 1,324,400 786,000

Table 10. Sensitivity Table showing Indicated Mineral Resource by cut-off with 125 gpt cap.

Table 11. Sensitivity Table showing Inferred Mineral Resource by cut-off with 125 gpt cap.
Cut-off Tonnes Grade Au Grade Ag Ounces Au Ounces Ag
3.0 gpt 1,138,000 8.91 4.63 325,900 169,300
2.5 gpt 1,255,000 8.33 4.33 336,000 174,500
2.0 gpt 1,474,000 7.44 4.00 352,300 189,700

Table 12. Indicated Mineral Resource at 3.00 gpt cut-0ff, 125 gpt cap, by vein

Vein Tonnes Grade Au gpt Grade Ag gpt Ounces Au Ounces Ag
Goat Vein North 249,000 7.80 1.00 62,500 8,000
Goat Vein 841,000 17.10 11.11 462,300 300,200
Sleeping Giant 187,000 16.43 9.78 98,600 58,700
Ridge Hanging Wall 363,000 10.40 2.04 121,300 23,800
Ridge Vein 530,000 5.88 3.76 100,200 64,100
North Strand Vein 517,000 8.55 8.47 142,300 141,000
Main Vein 240,000 4.70 1.75 36,200 13,500
F-Vein 21,000 6.70 1.81 4,500 1,200
Deep Trench Vein 690,000 7.62 3.43 169,000 76,200
Summary 3,637,000 10.23 5.87 1,196,800 686,700
Vein Tonnes Grade Au gpt Grade Ag gpt Ounces Au
Goat Vein North 69,000 9.90 1.27 22,100 2,800
Goat Vein 224,000 12.68 6.60 91,200 47,500
Sleeping Giant 82,000 21.37 12.62 56,600 33,400
Ridge Hanging Wall 405,000 7.12 2.39 92,800 31,100
Ridge Vein 204,000 6.29 4.68 41,300 30,700
North Strand Vein 14,000 4.22 2.08 1,900 1,000
F-Vein 4,000 4.48 1.03 600 100
Deep Trench Vein 135,000 4.50 5.21 20,000 22,600
Summary 1,138,000 8.91 4.63 326,000 169,300

Table 13. Inferred Mineral Resource at 3.00 gpt cut-0ff, 125 gpt cap, by vein

The presumed mining method would be underground shrinkage mining with 1.5m minimum widths or longhole with 2.0m minimum widths. Similar mines can extract planar steeply dipping veins at US\$90 to \$120 per tonne and achieve a high degree of extraction. No dilution or mine recovery factors have been included.

As such, at current or near current gold prices US\$1,400 per ounce, it is determined that there is a reasonable prospect of economic extraction under at the declared conditions.

In accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resource and Mineral Reserves, adopted by the CIM Council, as amended; the classification of the resource is as an Indicated Mineral Resource where blocks are within 60m of two composites, and as Inferred Mineral Resource where blocks are >60 m and <100m from two composites, (a minimum three composites for the Goat Vein in an effort to reduce the influence of the 2018 very high-grade composites).

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The mineral resource estimates generally can be affected by environmental, permitting, taxation, socio-economic, marketing, political, metallurgical, mining and infrastructure issues. These issues are normal for any mine development project and clear paths exist to deal with each aspect. No specific issues have been identified that are considered to materially affect the economics of this project.

15 Mineral Reserve Estimates (Item 15)

The Herbert Gold Property is not an advanced property, and this section does not apply to an early-stage exploration project.

16 MINING METHODS (Item 16)

The Herbert Gold Property is not an advanced property, and this section does not apply to an early-stage exploration project.

17 RECOVERY METHODS (Item 17)

The Herbert Gold Property is not an advanced property, and this section does not apply to an early-stage exploration project.

18 PROJECT INFRASTRUCTURE (item 18)

The Herbert Gold Property is not an advanced property, and this section does not apply to an early-stage exploration project.

19 MARKET STUDIES AND CONTRACTS (Item 19)

The Herbert Gold Property is not an advanced property, and this section does not apply to an early-stage exploration project.

20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT (Item 20)

The Herbert Gold Property is not an advanced property, and this section does not apply to an early-stage exploration project.

21 CAPITAL AND OPERATING COSTS (Item 21)

The Herbert Gold Property is not an advanced property, and this section does not apply to an early-stage exploration project.

22 ECONOMIC ANALYSIS (Item 22)

The Herbert Gold Property is not an advanced property, and this section does not apply to an early-stage exploration project.

23 ADJACENT PROPERTIES (Item 23)

There are five active claim blocks in close proximity to the Herbert Gold Project area. Figure 2depicts these claims in yellow with the Herbert Gold Project claims in red. The edge of the closest Isa claim block centered on the Mitchell and McPherson prospect (Barnett and Miller, 2003 - JU096) located 1100 m to the northwest. The next claim block 5 km to the northwest includes the Eagle River/Amalga Mine (Barnett and Miller, 2003 - JU094). This currently inactive mine had a reported 30,000 feet of underground workings and a 20-stamp mill dating from the 1930's. To the south within a 6 km radius are two other small claim blocks. The shape and orientation

of all the claim blocks suggest a strong NW-SE structural orientation and are consistent with the regional mineralized trend.

24 OTHER RELEVANT DATA AND INFORMATION (Item 24)

The author is not aware of any other data that has material bearing on the Herbert Gold Property.

25 INTERPRETATION AND CONCLUSIONS (Item 25)

The Herbert Gold Project is located in the heart of the historic Juneau Gold District, SE Alaska. Mineralization at the property consists of mesothermal quartz-carbonate-gold-base metal veining and is typical to that seen throughout the district. Three principal veins have been named from south to north and are the Deep Trench (and splays including Lake Vein), Main, and Goat veins. Minor veins include the Oblique (F Vein), Floyd, North, and Ridge. The principal veins strike N80E and dip steeply to the north. The cumulative strike length of all mapped veins at present is over 3,700 m. Drilling at the Herbert Gold Project has been used to define an Indicated and Inferred mineral resource along a portion of the Goat, Main and Trench veins (and associated splays).

The author concludes from observation and work completed to date that the Herbert Gold Project mineralization conforms to a model of orogenic-mesothermal gold mineralization and that such systems in Alaska have potential to develop economically recoverable resources. Work to date has made good progress in identifying mineralized continuity of the Goat, Main and Deep Trench veins along a strike lengths of 530 m, 680 m and 800 m along strike respectively and down dip extents from surface (mean 50 to 150 m AMSL) down to elevations as deep as -330 m (330 m below sea level). No geological evidence has been found to limit the down dip extension of these veins.

The Goat Vein offers a strong potential for additional resources and four more minor veins are not well tested. Additional vein exposures recently exposed by the retreating Herbert Glacier north of the Goat Vein as well as other east-west trending structures identified in the LiDAR survey suggests substantial additional undocumented potential exists.

This resource estimate is strongly influenced by high-grade shoots along the veins which is not atypical for these types of orogenic gold deposits.

26 RECOMMENDATIONS (Item 26)

26.1 2021 EXPLORATION PROGRAM

An exploration program designed to increase resources is proposed. The total cost of the program is dependent upon on-going success, and the location of drill platforms, as such a significant contingency cost is included. Specific targets would be to:

  • a. Continue with an additional fence of holes to the east of the resource on the Goat, Goat Hanging Wall, Sleeping Giant, Ridge Hanging Wall, Ridge, North Strand, Main and Deep Trench veins.
  • b. Additional step out holes to the west of the Goat, Goat Hanging Wall veins at depth.
  • c. Two or more shallow holes on the west-end of the Ridge and Ridge Hanging Wall veins.
  • d. All western drill holes should penetrate the metasediments, specifically where vein projections occur.
  • e. General prospecting and sampling within the metasedimentary terrain where possible, south of the Deep Trench Vein focusing on the Floyd and Elusive veins, and on LiDAR lineaments is recommended.
  • f. Prospecting to the north of the Goat Vein should continue to identify additional veins for follow-up, and drill platforms for those veins can be extended to get deeper cuts on the Goat and potentially Main Vein and their respective splays.
  • g. Metallurgical testing on cores should be considered on an annual basis, looking at gravity recoverable gold, flotation as well as bulk cyanidable (bottle role testing on pulps).
  • h. Additional specific gravity analyses should be completed to increase the database, incorporating wall rock as well as vein material.
  • i. Additional baseline studies (water, biology, basic ABA and SWEP testing (or equivalents) should be initiated or followed=up on.
Item Description Cost
Phase One
Drilling Further expansion in 10 to 20 drill holes, plus pad construction \$1,500,000
Prospecting Expand north and south of the known mineralization \$200,000
Metallurgical Bulk cyanidation, gravity, density \$100,000
Environmental ABA, SWEP, water, biology \$100,000
Miscellaneous Administration, support, G&A \$200,000
Subtotal \$2,100,000
Phase Two
Drilling Conditional upon success in Phase One \$1,100,000
Contingency \$150,000
Subtotal \$1,250,000
Total Assuming success in Phase One \$3,350,000

Table 14. Proposed budget and work program to continue to expand Herbert Gold Project resources

The contingency includes immediate follow-up drill capacity to minimize mobilization and set-up costs. These drill holes would not be drilled if the initial drill holes did not support immediate follow-up.

27 REFERENCES (Item 27)

Barnett, J.C., and Miller, L.D., 2003, ARDF report for the Juneau Quadrangle. USGS Open File Report 03-456, 587 p.

Dupre D.G. and Webb, D.R., 2013. Technical Report on the Herbert Gold Project, Juneau District, Southeast Alaska.

Gehrels, G.E. and Berg, H.C. 1992. Geologic map of Southestern Alaska. USGS Miscellaneous Investigation Series Map 1-1867. 1:600,000 map sheet and accompanying booklet 24p.

Gehrels, G.E. and Berg, H.C. 1994, Geology of southeastern Alaska, in: Plafker, G. and Berg, H.C. eds. The Geology of Alaska, Geological Society of America, The Geology of North America, v. G-1.

Groves, D. I., Goldfarb, R. J., Robert, F., Hart, C. J. R., 2003, Gold Deposits in Metamorphic Belts: Overview of Current Understanding, Outstanding Problems, Future Research, and Exploration Significance. Economic Geology 98: 1-29.

Goldfarb, R.J., Miller, L.D., Leach, D.L., and Snee, L.W, 1997, Gold deposits in metamorphic rocks in Alaska, in Goldfarb, R.J., and Miller, L.D., eds., Mineral Deposits of Alaska: Economic Geology Monograph 9:151-190.

G & T Metallurgical Services, Ltd., 2011. Metallurgical testing report on the Herbert Glacier Project, dated March 15, 2011. Internal report, 49 p.

Hawley Resource Group, 2007 to 2011. Digital data files of sampling and assay results, aerial photography and geologic mapping at 1:2200 at Herbert Glacier Project.

Light, T.D., Brew, D.A., and Ashley, R.P., 1989, Gold deposits in metamorphic rocks. USGS Bulletin 1857D 27- 36.

Moerlein, G.A., 1986, Preliminary summary report Herbert Glacier, Juneau, Alaska. Internal report, 17 p.

Moerlein, G.A., 1988, 1988 diamond drilling, Herbert Vein - Juneau, Alaska. Internal report, 38 p.

Redman, E.C., Maas, K.M., Kurtak, J.M., and Miller, L.D., 1989, Bureau of Mines Mineral Investigations in the Juneau Mining District, Alaska, 1984-1988, Volume 2--Detailed mine, prospect, and mineral occurrence descriptions, Section D, Juneau Gold Belt Subarea: U.S. Bureau of Mines Special Publication, 424 p.

Van Wyck, N. and Burnett, W., 2012. Technical Report on the Herbert Glacier Gold Property, Southeast Alaska. Internal corporate report, Grande Portage Resources Ltd. and Quaterra Resources Inc.

APPENDIX I

Glossary of Terms and Abbreviations

Glossary of Technical Terms

Adit – common mining term for a horizontal to sub–horizontal tunnel driven into a hillside to access an ore body.

Agglomerate – a volcanic rock consisting of fragments of pyroclastic rocks more than 2 cm in size.

Alkaline – a term applied to igneous rocks which are characterised by relatively high concentrations of sodium and potassium.

Alluvial – deposits of sediment, usually sand and gravel transported and deposited by a river.

Argillaceous rocks – a group of detrital, fine grained, sedimentary rocks subdivided into silt grade (particle size range 1/16 to 1/256 mm) and clay grade (particle size < 1/256 mm).

Arsenide – a mineral formed by the combination of arsenic with another chemical

Barite – a white, yellow or colourless mineral, BaSO4. The principal ore of barium used in paints, drilling muds and as filler for paper and textiles. Syn: baryte, barytes.

Basic – describes an igneous rock with relatively low silica content (between 45–52% SiO2). Basic rocks are relatively rich in iron, magnesium and calcium and thus include most mafic rocks.

Beneficiation – the process of concentration of the valuable components of an ore or other mineral commodity. Commonly includes multiple stages such as crushing, grinding, washing, screening, flotation, roasting, etc.

Breccia – a rock that has been mechanically, hydraulically or pneumatically broken into angular fragments and re–cemented

Bulk Leach Extractable Gold - more commonly shortened to BLEG is a geochemical sampling/analysis tool used during exploration for gold. It was developed in the early 1980s to address concerns relating to the accurately measuring fine grained gold, and dealing with problems associated with sample heterogeneity.

Calcite – a very common rock forming mineral comprising calcium, carbon and oxygen (CaCO3).

Cenozoic Era – period of geological time extending from 65 million years ago to the present.

Chert – sedimentary rock that is ultra–fine grained and composed almost entirely of silica. May be of organic or inorganic origin.

Core strategy: sets out the long-term spatial vision for the local planning authority area, the spatial objectives and strategic policies to deliver that vision. The core strategy will have the status of a development plan document.

Cretaceous – period of geological time from 142 to 65.5 million years ago. Marks the end of the Mesozoic Era.

Devonian – period of geological time from 417 to 354 million years ago.

Electrolytic – the process of extracting metal based on passing an electric current through a solution containing dissolved metals, causing the metals to be deposited on the cathode.

Extrusive – describes igneous rocks that have been formed by solidification of magma on or above the Earth's surface.

Felsic – In modern usage, the term felsic rock, although sometimes used as a synonym, refers to a high-silicacontent (greater than 63% SiO2 by weight) volcanic rock, such as rhyolite. In order to be classified as felsic, it generally needs to contain >75% felsic minerals; namely quartz, orthoclase and plagioclase. Rocks with greater than 90% felsic minerals can also be called leucocratic, meaning 'light-colored'.

Footwall – the name given to the host rock of an ore deposit that is physically below the ore deposit.

Gangue – the undesirable or unwanted minerals in an ore deposit.

Graben - An elongated block of the earth's crust lying between two faults and displaced downward relative to the blocks on either side, as in a rift valley.

Hangingwall – the name given to the host rock of an ore deposit that is physically above the ore deposit.

Highwall mining – mining method used to maximize the output of an open–pit coal mine. Remotely operated cutting or boring machines are used to penetrate the coal seam at the foot of the highwall (the final wall in an open–pit) to extract coal.

Hydrometallurgy – the treatment of ores by wet processes, resulting in the dissolution of a particular component and its subsequent recovery by precipitation, adsorption or electrolysis.

Igneous – one of the three main groups of rocks on Earth. They have a crystalline texture and appear to have consolidated from a silicate melt (magma).

Inductively coupled plasma mass spectrometry (ICP-MS) -- a type of mass spectrometry that is highly sensitive and capable of the determination of a range of metals and several non-metals at concentrations below one part in 1012 (part per trillion). It is based on coupling together an inductively coupled plasma as a method of producing ions (ionization) with a mass spectrometer as a method of separating and detecting the ions. ICP-MS is also capable of monitoring isotopic speciation for the ions of choice.

Intrusion – a body of igneous rock emplaced into pre–existing rocks, either along some structural feature such as a fault or by deformation and rupturing of the invaded rocks. (Intrusive, adj).

Jurassic – period of geological time from 205.1–142 million years ago.

Kaolin – group of pale-coloured clay minerals. In the UK kaolin is an industrial mineral extracted from kaolinised granites in south–west England. It is used as a paper filler and coater, and for high grade ceramics and pottery (china clay).

Lenticular – lens shaped body of rock.

Lode – mining term for a mineralized vein (used irrespective of whether the vein can be economically extracted).

Mesozoic Era – period of geological time from 250 to 65.5 million years ago. Subdivided into the Triassic, Jurassic and Cretaceous periods.

Miocene – period of geological time from 23.8 to 5.32 million years ago.

Mudstone – fine grained sedimentary rocks that are similar to shales in their non–plasticity, cohesion and low water content but lack fissility.

Neogene – part of the Cenozoic Era, comprising the Miocene and Pliocene epochs from 23.8 to 1.81 million years ago.

Oligocene – period of geological time from 28.5 to 23.8 million years ago.

Ordovician – period of geological time from 495 to 440 million years ago.

Paleogene – part of the Cenozoic Era comprising the Paleocene, Eocene and Oligocene epochs, from 65.5 to 23.8 million years ago.

Paleozoic Era – period of geological time from 545 to 245 million years ago.Subdivided into the Cambrian, Ordovician, Silurian, Devonian, Carboniferous and Permian Periods.

Permian – period of geological time from 280 to 255 million years ago marks the end of the Paleozoic Era. Globally important source of coal.

Pliocene – period of geological time from 5.3 to 1.81 million years ago.

Precambrian - an informal name for the span of time before the current Phanerozoic Eon, and is divided into several eons of the geologic time scale. It spans from the formation of Earth around 4600 Ma (million years ago) to the beginning of the Cambrian Period, about 542 Ma, when macroscopic hard-shelled animals first appeared in abundance. Accounts for 90% of all geological time and ends approximately 545 million years ago.

Proterozoic - a geological eon representing a period before the first abundant complex life on Earth. The Proterozoic Eon extended from 2500 Ma to 542.0 ± 1.0 Ma (million years ago), and is the most recent part of the old, informally named 'Precambrian' time.

Pyroclastic – fragmental volcanic material that has been blown into the atmosphere by an explosive eruption.

Pyrometallurgical – the treatment of ores by processes involving heating.

Quarrying (mining) – the extraction of rock from an open pit site.

Quaternary – the uppermost part of the Cenozoic Era from 1.81 million years ago to present day.

Refractory – a general term for a material that resists chemical or physical change.

Refractory ore – ore from which it is difficult to extract the valuable constituents. This material may require special treatments, such as pressure leaching, to recover the valuable minerals.

Sedimentary rocks – rocks formed from material derived from other rocks by weathering. Deposited by water, wind or ice.

Silurian – period of geological time from 440 to 417 million years ago.

Stope – mining term for the underground void left after ore extraction has taken place.

Stratabound – an ore deposit that is confined to a single stratigraphic bed or horizon but which does not constitute the entire bed.

Stratiform – an ore deposit that occurs as a specific stratigraphic (i.e. sedimentary) bed.

Sulphide – a mineral formed by the combination of sulphur with another chemical element. Most economic deposits of non–ferrous metals occur as sulphide minerals e.g. galena, PbS; sphalerite, ZnS; chalcopyrite, CuFeS2.

Triassic – period of geological time from 250 to 205.1 million years ago. This period marks the beginning of the Mesozoic Era.

Tuff -- is a type of rock consisting of consolidated volcanic ash ejected from vents during a volcanic eruption.

Tuff Breccia and Volcanic Agglomerate - as distinguished from the true ashes, these tend to occur in angular fragments; and when they form a large part of the mass the rock is more properly a "volcanic breccia" than a tuff. The ashes vary in size from large blocks ten meters or more in diameter to the minutest impalpable dust. Any ash in which large angular blocks are very abundant is called an agglomerate.

Ultrabasic – describes an igneous rock containing less than 45% silica (SiO2), including most ultramafic rocks.

Ultramafic – composed chiefly of ferromagnesian (Fe–Mg) minerals, such as olivine and pyroxene.

Vein – A tabular or sheet–like assemblage of minerals that has been intruded into a joint or fissure in rocks.

Volcanogenic massive sulphide, VMS – an ore deposit typically comprising a lens of massive sulphide minerals (>60% sulphide) formed by volcanic processes normally on the sea–floor. VMS deposits are important sources of copper, lead and zinc.

Wallrock – an economic geology term used to describe the rock adjacent to an accumulation of ore minerals (veins, layers, disseminations, etc.).

Workings – the current or past underground or surface openings and tunnels of a mine. More specifically, the area where the ore has been extracted.

Zoning – in economic geology, the spatial distribution of distinct mineral assemblages or chemical elements associated with an ore–forming process.

Abbreviations

Technical Report on the Herbert Gold Property May 2021

Unless otherwise indicated, the metric system of measure has been used throughout this report, including metric tons (tonnes, t), kilograms (kg) or grams (g) for weight, kilometers (km) or metres (m) for distance, hectares (ha) for area, liters (L) for volume and grams per tonne for gold (gpt Au) and silver (gpt Ag) grades. Base metal grades are usually expressed in weight percent (%). Geochemical results or precious metal grades may be expressed in parts per million (ppm) or parts per billion (ppb) (1 ppm = 1 g/t). Precious metal quantities may also be reported in troy ounces (ounces, oz), a common practice in the mining industry. In the Imperial System, significant gold concentrations are reported as troy ounces per short ton. In the metric system, gold concentration is now reported in grams per metric tonne. One troy ounce per short ton= 34.2857 grams per metric tonne. Currency values are in Canadian dollars (\$CDN).

Description Abbreviation Description Abbreviation
Above mean sea level amsl Millions of years ago Ma
Atomic absorption AA Inductively
coupled
plasma
mass
ICPAR-UT
Banded Iron Formation BIF spectrometry
Kilometre(s)
km
Bulk Leach Extractable Gold BLEG Lead Pb
Bureau
Veritas
Laboratories
International
BVI Methyl isobutyl ketone MIBK
Canadian Dollars \$CDN Ounce(s)/Troy ounce(s) oz
Canadian National Instrument 43-101 NI 43-101 Ounce per ton Oz/t
Centimetre(s) Cm Parts per billion ppb
Degree(s) 0 Parts per million ppm
Degrees Centigrade/Celsius 0
c
Percent %
Foot/feet ft. Qualified Person(s) QP(s)
Fire Assay FA Quality Assurance/Quality Control QA/QC
Geological Survey of Canada GSC Reduced Level RL
Gold Au Rock quality designation RQD
Gram(s) g Silver Ag
Gram-metres
per tonne,
metres
x
g/t
Specific gravity SG
grams per tonne
Grams per tonne
g/t Square kilometers km2
Inch(es) in Three-dimensional 3D
Micron(s) µ Tonnes per cubic metre t/m3
Metre(s) m Two-dimensional 2D
Volcanogenic massive sulphide deposits VMS