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Newpath Resources Inc. — Regulatory Filings 2021
Jan 9, 2021
45849_rns_2021-01-08_f69fdd10-9f45-47ce-913d-349e0fd88660.pdf
Regulatory Filings
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TECHNICAL REPORT
ON THE
NORTHSHORE GOLD PROPERTY
Thunder Bay Mining Division Priske Township, Ontario, Canada
Latitude 48° 45’ 54’’ North by Longitude 87° 16’ 30” West Zone 16 U 5401359 m North by 4797800 m East
Prepared for:
OMNI COMMERCE CORP.
Suite 1201 – 1166 Alberni Street, Vancouver, BC V6E 3Z3 Vancouver BC V6C 3L6
Report Date: November 20, 2020 Effective Date: July 10, 2020
Qualified Persons
Allan Armitage, Ph. D., P. Geo., Olivier Vadnais-Leblanc, B.Sc., géo
Company
SGS Canada Inc. (“SGS”) SGS Canada Inc. (“SGS”)
SGS Project # P2020-10
Technical Report – Northshore Gold Property – Priske Township, Ontario, Canada
Page i
| TABLE OF CONTENTS PAGE |
TABLE OF CONTENTS PAGE |
|---|---|
| TABLE OF CONTENTS ................................................................................................................................. i | |
| LIST | OF FIGURES ........................................................................................................................................ ii |
| LIST | OF TABLES .......................................................................................................................................... iii |
| 1 | SUMMARY ........................................................................................................................................... 5 |
| Property Description, Location, Access, and Physiography ......................................................... 5 | |
| History ........................................................................................................................................... 6 | |
| Geology and Mineralization ........................................................................................................... 7 | |
| Mineral Processing and Metallurgical Testing .............................................................................. 7 | |
| Historic Mineral Resource Estimate .............................................................................................. 8 | |
| 1.5.1 Details of the Historic Mineral Resource Estimate ................................................................ 9 |
|
| Data Verification .......................................................................................................................... 11 | |
| Recommendations ...................................................................................................................... 12 | |
| 2 | INTRODUCTION ................................................................................................................................ 14 |
| Sources of Information ................................................................................................................ 15 | |
| Site Visit ...................................................................................................................................... 16 | |
| Units and Abbreviations .............................................................................................................. 17 | |
| 3 | Reliance on Other Experts ................................................................................................................. 18 |
| 4 | PROPERTY DESCRIPTION AND LOCATION .................................................................................. 19 |
| Mineral Tenure ............................................................................................................................ 19 | |
| Property Claim Status ................................................................................................................. 22 | |
| Current Property Status .............................................................................................................. 24 | |
| 4.3.1 Omni – CBLT Purchase Agreement.................................................................................... 24 |
|
| 4.3.2 Omni – Balmoral Purchase Agreement .............................................................................. 25 |
|
| Underlying Agreements ............................................................................................................... 26 | |
| Permits and Authorization ........................................................................................................... 26 | |
| 4.5.1 Exploration Plans and Permits Required under the Mining Act .......................................... 26 |
|
| Environmental Considerations .................................................................................................... 27 | |
| 5 | ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY .. |
| ............................................................................................................................................................ 28 | |
| Accessibility ................................................................................................................................. 28 | |
| Climate and Vegetation ............................................................................................................... 28 | |
| Local Resources and Infrastructure ............................................................................................ 28 | |
| Physiography............................................................................................................................... 28 | |
| 6 | HISTORY ............................................................................................................................................ 29 |
| Exploration History ...................................................................................................................... 29 | |
| 6.1.1 1898 – 1995 Exploration ..................................................................................................... 29 |
|
| 6.1.2 1997 Exploration - Cyprus Canada Inc. .............................................................................. 33 |
|
| 6.1.3 1999 to 2005 Exploration - International Taurus Resources Inc. ........................................ 38 |
|
| 6.1.4 2005 to 2008 Exploration - American Bonanza Gold Corp. ................................................ 38 |
|
| 6.1.5 2011 Exploration – GTA Resources and Mining Inc. .......................................................... 40 |
|
| 6.1.6 2012 Exploration Work - GTA Resources and Mining Inc. ................................................. 48 |
|
| 6.1.7 2013 Exploration Work - GTA Resources and Mining Inc. ................................................. 53 |
|
| 6.1.8 Discussion of the 2012 and 2013 Diamond Drilling Results ............................................... 58 |
|
| 6.1.9 2016 Exploration Work - GTA Resources and Mining Inc. ................................................. 58 |
|
| 6.1.10 2018 Exploration Work - GTA Resources and Mining Inc. ................................................. 64 |
|
| Historical Mining .......................................................................................................................... 66 | |
| 2011 Historical Mineral Resource Estimates - GTA Resources and Mining Inc ......................... 66 | |
| 6.3.1 2014 Historical Mineral Resource Estimate ........................................................................ 67 |
|
| 6.3.2 Cautionary Statement regarding Historic Mineral Resources ............................................. 70 |
|
| 6.3.3 2015 Engineering Study - GTA Resources and Mining Inc ................................................ 70 |
|
| 7 | GEOLOGICAL SETTING AND MINERALIZATION ........................................................................... 72 |
| Regional Geology ........................................................................................................................ 72 | |
| Property Geology ........................................................................................................................ 74 | |
| 7.2.1 Lithology .............................................................................................................................. 75 |
|
| 7.2.2 Structure .............................................................................................................................. 76 |
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SGS Canada Inc.
Technical Report – Northshore Gold Property – Priske Township, Ontario, Canada
Page ii
| 7.2.3 Alteration ............................................................................................................................. 77 |
|
|---|---|
| 7.2.4 Mineralization ...................................................................................................................... 77 |
|
| 8 | DEPOSIT TYPES ............................................................................................................................... 79 |
| 9 | EXPLORATION .................................................................................................................................. 82 |
| 10 | DRILLING ........................................................................................................................................... 83 |
| 11 | SAMPLE PREPARATION, ANALYSES, AND SECURITY ................................................................ 84 |
| Historical Sampling Procedures .................................................................................................. 84 | |
| 2011 Program.............................................................................................................................. 84 | |
| 11.2.1 Sample Preparation ............................................................................................................ 84 |
|
| 11.2.2 Sample Analyses and Assays ............................................................................................. 85 |
|
| 11.2.3 2011 Sample Security ......................................................................................................... 86 |
|
| 11.2.4 2011 Quality Assurance and Quality Control Program ....................................................... 86 |
|
| 2012 – 2013 Program ................................................................................................................. 88 | |
| 11.3.1 2012 and 2013 Sample Analyses and Assays .................................................................... 89 |
|
| 11.3.2 2012 and 2013 Sample Security ......................................................................................... 90 |
|
| 11.3.3 2012 and 2013 Quality Assurance and Quality Control Procedures and Results .............. 90 |
|
| 2016 Drill Program ...................................................................................................................... 92 | |
| 2018 Drill Program ...................................................................................................................... 92 | |
| 12 | DATA VERIFICATION ........................................................................................................................ 94 |
| Site Inspection ............................................................................................................................. 95 | |
| Conclusion ................................................................................................................................... 95 | |
| 13 | MINERAL PROCESSING AND METALLURGICAL TESTING .......................................................... 96 |
| Gold Cyanidation Report – Act Labs 2016 .................................................................................. 96 | |
| 13.1.1 Objective ............................................................................................................................. 96 |
|
| 13.1.2 Procedure ............................................................................................................................ 96 |
|
| 13.1.3 Discussion of Results .......................................................................................................... 98 |
|
| 14 | MINERAL RESOURCE ESTIMATE ................................................................................................... 99 |
| 15 | MINERAL RESERVE ESTIMATES .................................................................................................. 100 |
| 16 | MINING METHODS.......................................................................................................................... 101 |
| 17 | RECOVERY METHODS .................................................................................................................. 102 |
| 18 | PROJECT INFRASTRUCTURE ....................................................................................................... 103 |
| 19 | MARKET STUDIES AND CONTRACTS .......................................................................................... 104 |
| 20 | ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT .............. 105 |
| 21 | CAPITAL AND OPERATING COSTS .............................................................................................. 106 |
| 22 | ECONOMIC ANALYSIS ................................................................................................................... 107 |
| 23 | ADJACENT PROPERTIES .............................................................................................................. 108 |
| 24 | OTHER RELEVANT DATA AND INFORMATION ........................................................................... 109 |
| 25 | INTERPRETATION AND CONCLUSIONS ...................................................................................... 110 |
| Data Verification ........................................................................................................................ 112 | |
| Risks and Opportunities ............................................................................................................ 113 | |
| 26 | RECOMMENDATIONS .................................................................................................................... 115 |
| 27 | REFERENCES ................................................................................................................................. 117 |
| 28 | DATE AND SIGNATURE PAGE ...................................................................................................... 118 |
| 29 | CERTIFICATES OF QUALIFIED PERSONS ................................................................................... 119 |
| LIST OF FIGURES |
| Figure | 4-1: | Northshore Property Location Map (from Blanchflower, 2012) ........................................... 19 |
|---|---|---|
| Figure | 4-2: | Northshore Property Land Tenure Map ............................................................................... 20 |
| Figure | 6-1 | Property Drill Hole Plan 1980 to 2011 (from Giroux and Blanchflower, 2014) .................... 31 |
| Figure | 6-2 | Survey Control Grids established by Noranda Exploration/Hemlo Gold and Cyprus Canada |
| (from Blanchflower, 2012) .................................................................................................... 33 | ||
| Figure | 6-3 | 1997 Exploration Targets Identified by Cyprus Canada Inc. (from Blanchflower, 2012) ..... 37 |
| Figure | 6-4 | Chip Sampling Results, Audney Vein Structure (from Blanchflower, 2012) ........................ 41 |
| Figure | 6-5 | Chip Sampling Results, Caly and Caly North Vein Structures (from Blanchflower, 2012) .. 42 |
| Figure | 6-6 | GTA Resources 2011 Drill Hole Plan (from Blanchflower, 2012) ........................................ 43 |
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SGS Canada Inc.
Technical Report – Northshore Gold Property – Priske Township, Ontario, Canada
Page iii
| Figure 6-7 | GTA Resources 2011 Drill Hole Plan, Afric Zone (from Blanchflower, 2012) ..................... 45 |
|---|---|
| Figure 6-8 | Drill Sections A-A’ and B-B’, 2011 Drill Program (see Figure 6-4 above for location of |
| sections) (from Blanchflower, 2012) .................................................................................... 46 | |
| Figure 6-9 | Drill Sections C-C’ and D-D’, 2011 Drill Program (see Figure 6-4 above for location of |
| sections) (from Blanchflower, 2012) .................................................................................... 47 | |
| Figure 6-10 | Drill Hole Plan of the Northshore Property showing the Location of 2013 Drilling and Rough |
| Mineralized Outline (from Giroux and Blanchflower, 2014) ................................................. 54 | |
| Figure 6-11 | Drill Hole Plan of the Northshore Property showing the Location of 2016 Drilling and Rough |
| Mineralized Outline (see Figure 6-10) ................................................................................. 60 | |
| Figure 6-12 | Drill Hole Plan of the Northshore Property showing the Location of 2018 Drilling and Rough |
| Mineralized Outline (see Figure 6-10) ................................................................................. 65 | |
| Figure 6-13 | Isometric View Looking North showing the 2014 Mineralized Solid in Brown, Surface |
| Topography in Green and Diamond Drill Hole Traces ......................................................... 68 | |
| Figure 7-1 | Regional Geology Map of the Northshore Property (from Giroux and Blanchflower, 2014) 73 |
| Figure 7-2 | Regional Structure Map of the Northshore Property (from Giroux and Blanchflower, 2014) |
| ............................................................................................................................................. 74 | |
| Figure 11-1 | Summary of 2012-2013 QA-QC Sample Insertion Rates (Giroux and Blanchflower, 2014)91 |
| LIST OF TABLES | |
| Table 1-1 |
Northshore Property Historical Mineral Resource Estimates – June, 2014 .......................... 9 |
| Table 2-1 |
List of Abbreviations ............................................................................................................. 17 |
| Table 4-1: | Northshore Property Patented and Unpatented Mining Claim Data .................................... 21 |
| Table 6-1 |
Noranda Exploration 1990-91 Diamond Drilling Results (from Blanchflower, 2012) ........... 32 |
| Table 6-2 |
Cyprus Canada 1997 Diamond Drilling Results (from Blanchflower, 2012) ........................ 36 |
| Table 6-3 |
American Bonanza 2006-08 Diamond Drilling Results (from Blanchflower, 2012) ............. 39 |
| Table 6-4 |
GTA Resources 2011 Diamond Drilling Results (from Blanchflower, 2012) ....................... 44 |
| Table 6-5 |
Phase 2 Diamond Drilling Information (from Giroux and Blanchflower, 2014) .................... 49 |
| Table 6-6 |
Phase 3 Diamond Drilling Information (from Giroux and Blanchflower, 2014) .................... 49 |
| Table 6-7 | Significant Mineralized Intercepts from the 2012 Phase 2 Diamond Drilling Program (from |
| Giroux and Blanchflower, 2014)........................................................................................... 50 | |
| Table 6-8 | Significant Mineralized Intercepts from the 2012 Phase 3 Diamond Drilling Program (from |
| Giroux and Blanchflower, 2014)........................................................................................... 52 | |
| Table 6-9 |
Phase 4 Diamond Drilling Information (from Giroux and Blanchflower, 2014) .................... 53 |
| Table 6-10 | Phase 5 Diamond Drilling Information (from Giroux and Blanchflower, 2014) .................... 53 |
| Table 6-11 | Significant Mineralized Intercepts from the 2013 Phase 4 Diamond Drilling Program (from |
| Giroux and Blanchflower, 2014)........................................................................................... 56 | |
| Table 6-12 | Significant Mineralized Intercepts from the 2013 Phase 5 Diamond Drilling Program (from |
| Giroux and Blanchflower, 2014)........................................................................................... 57 | |
| Table 6-13 | 2016 Diamond Drilling Information....................................................................................... 59 |
| Table 6-14 | Significant Mineralized Intercepts - 2016 A-Series holes targeting the Caly system (see |
| Balmoral news release dated August 22, 2016, posted on SEDAR) ................................... 61 | |
| Table 6-15 | Significant Mineralized Intercepts - 2016 D-Series holes targeting the Caly system (see |
| Balmoral news release dated August 22, 2016, posted on SEDAR) ................................... 62 | |
| Table 6-16 | Significant Mineralized Intercepts - 2016 Phase 2 Drill Holes (see GTA news release dated |
| November 1, 2016, posted on SEDAR) ............................................................................... 63 | |
| Table 6-17 | 2018 Diamond Drilling Information....................................................................................... 64 |
| Table 6-18 | Significant Mineralized Intercepts - 2018 Drill Holes Completed by GTA (see GTA news |
| release dated February 25, 2019, posted on SEDAR) ........................................................ 64 | |
| Table 6-19 | Northshore Property Historical Mineral Resource Estimates – June, 2014 (Giroux and |
| Blanchflower, 2014) ............................................................................................................. 69 | |
| Table 6-20 | Results of the 2015 Engineering Study by Moose Mountain Technical Services (using a cut- |
| off grade of 1.6 g/t Au) (see GTA press release dated June 17, 2015, posted on SEDAR) 71 | |
| Table 25-1 | Northshore Property Historical Mineral Resource Estimates – June, 2014 (Giroux and |
| Blanchflower, 2014) ........................................................................................................... 112 |
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SGS Canada Inc.
Technical Report – Northshore Gold Property – Priske Township, Ontario, Canada
Page iv
Table 26-1: Recommended Phase 1 Q4 2020 – Q2 2021 Work Program by Omni ............................. 116
APPENDIX I Quality Assurance –Quality Control Report on the 2011 Drilling Program Northshore Property, Thunder Bay M. D., Priske Township, Ontario By Caroline Vallat, P. Geo. of GeoSpark Consulting Inc.
APPENDIX II Northshore Project 2012 and 2013 QAQC Report on Analytical Results By Caroline Vallat, P. Geo. of GeoSpark Consulting Inc.
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SGS Canada Inc.
Technical Report – Northshore Gold Property – Priske Township, Ontario, Canada
Page 5
1 SUMMARY
SGS Geological Services (“SGS”) was contracted by Omni Commerce Corp. ("Omni" or the "Company") to complete an updated National Instrument 43-101 ("NI 43-101") Technical Report for the Northshore Gold Property (the “Property”) in the Priske Township, Thunder Bay District of Ontario, Canada.
In June 2020, Omni entered into two separate mineral property purchase agreements to acquire an aggregate 100% ownership of the Property. On June 24, 2020, Omni announced that it has entered into a definitive Mineral Property Purchase Agreement dated June 22, 2020 with Balmoral Resources Ltd. (“Balmoral”), a 100% subsidiary of Wallbridge Mining Company Limited (TSX:WM), an Ontario corporation which has its common shares listed on the Toronto Stock Exchange. Omni has agreed to acquire Balmoral’s right, title and interest in and to its 44% joint venture interest in the Property on the terms in the Agreement. Omni announced on June 1, 2020, that it entered into a definitive mineral property purchase agreement with CBLT Inc. (“CBLT”) to acquire CBLT’s 56% joint venture interest in the Property. Upon completion of the transactions with Balmoral and CBLT, Omni will own 100% of the Property.
Omni is currently an unlisted reporting issuer. As a result of the 100% purchase of the Property, Omni is seeking to list its common shares on the Canadian Securities Exchange (“CSE”). The current technical report regarding the Property is to be filed with an application by Omni for a listing on the CSE and the report will be used by Omni in partial fulfillment of their disclosure requirements under Canadian securities laws, including National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The effective date of this report is July 10, 2020.
Allan Armitage, Ph.D., P. Geo, (“Armitage”) and Olivier Vadnais-Leblanc, B.Sc., Géo. (“Vadnais-Leblanc”) of SGS (the “Authors”) are responsible for the preparation of the current technical report. Armitage and Vadnais-Leblanc are independent Qualified Persons as defined by NI 43-101.
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Property Description, Location, Access, and Physiography
The Northshore property is situated in the Thunder Bay Mining Division within Priske Township, approximately 4 km south of the town of Schreiber, Ontario, on the northern shore of Lake Superior (Figure 4-1). Vehicle access to the Property is possible via a gravel road, called the ‘Worthington Bay Road’, which joins the Trans-Canada Highway No. 17. All parts of the Property are easily accessible by truck or all-terrain vehicles on non-serviced roads.
The geographic coordinates of the main mineral occurrence within the Property, called the ‘Afric’ Zone, are 48° 45’ 54’’ North latitude by 87[o] 16’ 30” West longitude, or UTM NAD83, Zone 16 U, 4797800 m East by 5401359 m North.
The Property comprises 3 Patented Claims and 12 Unpatented (Cell) Claims within the Priske Township area, with a total area of 359.655 ha. The Patented and Unpatented Claims are currently registered in the name of Balmoral 44% and CBLT 56% and will be transferred to Omni upon completion of the transaction with Balmoral and CBLT. All claims will be beneficially owned 100% by Omni. All Patented and Unpatented claims are currently in good standing.
The Property is readily accessible via a four-wheel drive gravel ‘Worthington Bay’ road which joins TransCanada Highway No. 17 approximately 4.4 kilometres east of the town of Schreiber. The Worthington Bay road leads 5 kilometres south to the shore of Lake Superior where the old Northshore mill was located. The city of Thunder Bay has the closest commercial airport to the town of Schreiber and the Property. There are regular daily flights to Thunder Bay from Toronto and elsewhere in Canada, and it is a 260 km, or a 3- hour drive, from Thunder Bay to Schreiber.
The Schreiber area has a humid continental climate with average mean temperatures ranging from -20° C (January) to +20° C (July), and an annual average precipitation of 840 mm. Local lakes will usually start to
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SGS Canada Inc.
Technical Report – Northshore Gold Property – Priske Township, Ontario, Canada
Page 6
freeze over in mid-November and thaw in early to mid-May. The Property is situated on the rugged northern shore of Lake Superior with considerable relief. The land rises steeply from the lake shore with elevations ranging from approximately 625 m along the shore of Lake Superior to 1,375 m along the northern property boundary. The Property is extensively covered by a mixture of spruce and fir trees with moderate undergrowth in poorly drained areas, and birch and alder and thinner undergrowth along hillocks. Bedrock exposures are quite common along cliffs, steep slopes and ridge tops, but elsewhere outcrop is scarce except where exposed by road cuts or trenches. Exploration work could be carried out year-round.
There is no useable surface mining infrastructure on the Property. The nearby cities of Marathon, to the east, and Thunder Bay, to the west, are dominated by the mining and logging industries respectively where an experienced labour pool and all types of exploration and mining services are readily available. The Trans-Canada Highway is within 4 km of the Property and there is abundant water for exploration and possible development purposes. The CP Rail railroad and a major power transmission line are situated within 2 to 3 km of the claim holdings.
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History
Gold was first discovered within the BJ 122 mining claim by Peter McKellar in 1898. Between 1920 and 1937 W. L. Longworth (later McKellar-Longworth Ltd.) operated the claim, discovered 14 veins and later mined the ‘Main’ vein (Northshore Zone) with a series of adits and underground workings. North Shores Gold Mines Limited was later formed in 1933, a 25-ton mill was built in 1934 at Worthington Bay on the shore of Lake Superior, and gold production began in 1935. Mine production ceased in 1937 after 3,808 tons of ore were milled yielding 2,441 ounces of gold and 226 ounces of silver. From 1939 to 1980 several operators acquired the Northshore property, but none reportedly carried out any advanced development or production. In 1980 Autotrac Limited acquired all of the Northshore patented and unpatented mining claims, and in 1988 optioned their property to Noranda Exploration Company Ltd. which later became Hemlo Gold Inc. Over the next four years Noranda/Hemlo Gold carried out a comprehensive exploration program that led to the discovery of lode gold mineralization at the Afric Zone and five other lode gold occurrences, in addition to the mined Northshore Zone.
In mid-1997 Cyprus Canada Inc. optioned the Northshore property from Autotrac Limited and conducted an aggressive exploration program focused on discovering a low grade, bulk-tonnage gold deposit. Their work failed to fulfill their goal but it did show that the Property was underexplored and that there are “numerous, high grade zones” on the Property that were poorly explored.
International Taurus Resources Inc. purchased the Autotrac Limited patented and unpatented mining claims in 1999, and later became American Bonanza Gold Corp. From 2005 to 2008 American Bonanza Gold Corp. carried out two drilling campaigns, trenching, rock geochemical sampling and limited prospecting. The results of their work confirmed the locations and tenor of the six or seven known lode gold occurrences. In January 2011, American Bonanza Gold Corp. transferred 100% of their interest in the Property to Balmoral Resources Ltd. No reported exploration work was carried out by Balmoral until an option agreement with GTA in July 2011.
Since September, 2011 GTA has completed 107 diamond drill holes, totaling 14,014 metres of NQ-size core drilling between 2011 and 2018. This drilling has been largely focused on testing the gold mineralization within the Afric Zone. Current drilling results show that this zone underlies an area measuring at least 500 by 350 metres and the gold bearing mineralization has been shown to extend vertically to at least a depth of 350 metres beneath the surface. The Afric Zone remains open for expansion both at depth and to the northeast. In addition, the Gino vein structure hosts significant gold-bearing mineralization and is situated 250 m north of the Afric Zone.
In January, 2019 CBLT purchased GTA’s 56% interest in the Property. Omni has subsequently entered into two mineral property purchase agreements to aggregately acquire 100% ownership of the Property.
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SGS Canada Inc.
Technical Report – Northshore Gold Property – Priske Township, Ontario, Canada
Page 7
These agreements are for Balmoral’s 44% joint venture interest in the Property and CBLT’s 56% joint venture interest in the Property.
Neither CBLT nor Omni has completed any exploration on the Property as of the effective date of this report.
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Geology and Mineralization
The Schreiber area is underlain by Archean-age rocks that form the western portion of the Hemlo-Schreiber greenstone belt of the Superior structural province. The Property is underlain by northeasterly trending felsic to intermediate and mafic volcanics that have been intruded by syenitic to dioritic and feldspar porphyritic (+quartz) stocks. Northwesterly-trending diabase and lamprophyre dykes crosscut the sequence. These lithologic units are regionally altered to greenschist facies and have been affected by at least one major episode of deformation which folded the supracrustal rocks along east-southeasterly axes and imposed a pervasive regional foliation. Northeasterly and northwesterly faulting and fracturing within the Property appear to be parasitic structures to the Worthington Bay and Schreiber Point strike-slip faults that bound most of the known mineral occurrences on the east and west respectively.
The gold mineralization on the Property is genetically associated with quartz and quartz-carbonate veins, quartz-carbonate (+ tourmaline) vein stockworks and minor base-metal sulphide mineralization. The Audney, Caly and Caly North quartz-carbonate veins within the main Afric Zone host locally coarse, high grade gold mineralization. These two vein structures strike east-northeasterly, vary in true widths from less than 5 cm to 60 cm, and have been traced by drilling to a vertical depth of at least 125 m. They commonly have poorly defined selvages with narrower subparallel veins, veinlets and infilled fractures hosting native gold, electrum and other gold-bearing mineralization. They may also host pyrite with trace to minor amounts of tourmaline, chalcopyrite, sphalerite, galena and molybdenite. These east-northeasterly to northeasterly trending vein structures appear to be structurally related to conjugate, dilational fracturing associated with northwesterly trending extensional fracturing and north-northeasterly displacements along the Worthington Bay and Schreiber Point faults.
There are numerous narrow quartz and quartz-carbonate (+ tourmaline) vein and veinlets throughout the Afric Zone sub paralleling the better defined Audney, Caly and Caly North vein structures. These narrow veins may occur individually or collectively as vein stockworks often hosting considerable gold values as native gold, electrum and gold-bearing sulphide mineralization. In addition, gold mineralization is associated with the pyritized feldspar (+/- quartz) porphyritic and syenitic intrusive host rocks. Gold mineralization appears to be genetically associated with the hydrothermal alteration of the host intrusive rocks that produced finely disseminated to blebby pyrite and extensive zones with pervasive ankerite (iron-carbonate) alteration associated with variable sericitization and potassic alteration, especially in close proximity to the syenitic intrusive body. Gold-bearing pyrite mineralization seems to be more concentrated at or near the loci of northeasterly and northwesterly trending fracturing.
Significant gold mineralization also occurs associated with several pyrite, chalcopyrite and/or arsenopyrite bearing shear zones and veins elsewhere on the Property that may also carry locally elevated silver values. Past operators have suggested that this style of mineralization may be genetically related to volcanogenic massive sulphide mineralization known elsewhere in the Archean-age sequence.
Gold mineralization on the Property is structurally controlled and exhibit similar geological, structural, and metallogenic characteristics to other Archean Greenstone-hosted quartz-carbonate vein (lode) deposits. These deposits are also known as mesothermal, orogenic, lode gold, shear-zone-related quartz-carbonate or gold-only deposits.
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Mineral Processing and Metallurgical Testing
Prior to 2016 there has been no metallurgical testing of the mineralization on the Property. Preliminary metallurgical testing from the Property was completed by GTA in 2016 on two composited drill core samples
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SGS Canada Inc.
Technical Report – Northshore Gold Property – Priske Township, Ontario, Canada
Page 8
(assay reject samples), one from core of the Afric Zone and one from core of the high-grade Audney vein system. These composites returned peak gold recoveries of 96.3% and 99.5% respectively.
The preliminary metallurgical work was performed by Act Labs in Thunder Bay, and consisted of standard cyanide bottle roll testing with atomic absorption analysis for gold. Sample “A” weighed 43.9 kg and had an assayed head grade varying from 2.65 to 2.93 g/t gold. Sample “D”, from the high-grade Audney vein system, weighed 9.6 kg and had an assayed head grade varying from 11.6 to 10.9 g/t gold.
These results indicated that the mineralization is free milling and excellent recoveries can be made using conventional cyanidation. Peak recovery was achieved after 24 hours for sample “D” at 99.5%. Sample “A” reached 94.8% recovery in 24 hours, peaking at 96.3% after 48 hours. Cyanide and lime consumption during the tests are considered by ACT Labs to be fairly average.
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Historic Mineral Resource Estimate
The Property contains a historic MRE. A NI 43-101 Technical report on the Property was written by Giroux Consultants Ltd. and Minorex Consulting Ltd. in 2014 and was titled “Technical Report On the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada”, dated June 30, 2014. The report was written for GTA Resources and Mining Inc., now GTA Financecorp Inc. The 2014 Technical Report included a maiden MRE for the Afric Zone.
At a cut-off grade of 0.50 grams gold per tonne, GTA reported that the Afric zone contained 391,000 ounces gold in 12,360,000 tonnes at a grade of 0.99 g/t gold in the Indicated category, and 824,000 ounces gold in 29,580,000 tonnes at a grade of 0.87 g/t gold in the Inferred category. The drilling and assay data base was comprised of 100 drill holes (1990 to 2013).
The results of the 2014 MRE are tabulated for a series of gold cut-off values for the percentage of blocks within the mineralized solid (Table 1-1). These tables assume no dilution from any external waste or dyke material and assumes a recovery of 100%. The gold cut-off of 0.50 g/t is based upon current metal prices at the time and regional operating expenses for projects with excellent existing infrastructure.
The reader is cautioned that the Authors have not done sufficient work to pass detailed comment on the MRE and classification presented in this report and hence the MRE is considered historic. While these estimates were prepared, in accordance with National Instrument 43-101 (2011) and reported according to the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines in effect at the time (2005), there is no assurance that they are in accordance with current CIM 2014 Mineral Resource reporting standards (2014) and the MRE should not be regarded as consistent with current standards or unduly relied upon as such.
The historic MRE presented in this report is only presented for information purposes as they represent material historical data which have previously been publicly disclosed. To the Authors’ knowledge, the 2014 MRE for the Property is the most recent MRE available regarding the Property.
The 2014 technical report was the most recent and most comprehensive study of the Property at the time. In order to update the 2014 MRE to a current MRE for Omni, the following needs to be done:
-
The 51 drill holes completed by GTA in 2016 and the 3 holes completed by GTA in 2018 will need to be added to the database.
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The assay data for the 2016 and 2018 will need to be verified and validated and the results of the QA/QC procedures will need to be thoroughly reviewed.
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Resource wireframe models will need to be updated to include the most recent drilling.
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The results of the 2016 metallurgical testing by GTA will need to be considered when reporting an updated MRE.
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An updated MRE for the Property will need to be prepared and disclosed in compliance with all current disclosure requirements for mineral resources set out in the NI 43-101 Standards of Disclosure for Mineral Projects. The classification of the current MRE’s into Inferred is consistent with current (2014) CIM Definition Standards - For Mineral Resources and Mineral Reserves, including the critical requirement that all mineral resources “have reasonable prospects for eventual economic extraction”.
Table 1-1 Northshore Property Historical Mineral Resource Estimates – June, 2014
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1.5.1 Details of the Historic Mineral Resource Estimate
A geological model was constructed by J. D. Blanchflower, P. Geo., from vertical and horizontal crosssections spaced 25 metres apart using Gemcom software. Gold mineralization is associated with well defined, narrow, quartz and quartz-carbonate veins, quartz-carbonate (± tourmaline) vein stockworks and base-metal sulphide mineralization within a felsic to mafic volcanic host that has been intruded by syenitic to dioritic and feldspar porphyritic (± quartz) stocks.
A broad mineralized solid was utilized to constrain the resource estimation within the Afric Zone, excluding the adjacent Gino and Northshore vein structures. Several northwesterly trending, barren to weakly
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mineralized, post-mineral diabase dykes cross-cut the mineralized Afric Zone, and these features were also modelled.
The drilling and assay data base were comprised of 100 drill holes (1990 to 2013) with 479 downhole surveys and 13,777 gold assays. Of these, 432 assays were less than 0.001 g/t gold and were set to 0.001 g/t gold, and there was a total of 473 missing sampling intervals for which a value of 0.001 g/t gold was inserted. Of the 100 diamond drill holes in the database, 87 intersected the mineralized solid and were coded according to their lithologic domains.
The gold grade distribution for all domains was evaluated using lognormal cumulative frequency plots. A total of 7 overlapping gold populations were identified within the mineralized solid. There are 2 assay samples in Population 1 representing erratic high grade outliers that were capped at 180 g/t gold (i.e. 2 standard deviations above the mean). Populations 2, 3, 4 and 5 represented the higher grade veins and stockwork mineralization. Population 6 represented the low grade mineralization that surrounds the higher grade veins and stockworks, and finally Population 7 represented internal waste within the mineralized solid. Each of the domains were examined and an appropriate capping level was chosen to try and remove the effect of erratic high grade samples. Capping reduced the coefficients of variation significantly in all domains.
A composite length of 2.5 m was chosen to best fit the data and be an even multiple for a possible 5-metre bench height. Within each domain uniform downhole composites 2.5 m in length were formed to honor the domain boundaries. At the edges of the domain solids samples less than 1.25 m were combined with adjoining samples while those greater than 1.25 were left intact. In this manner a uniform support was achieved at 2.5 ± 1.25 m.
Since it was not possible to model the individual narrow, higher grade vein structures, a method to avoid over smearing was used, called ‘Indicator Kriging’. With this interpolation method the higher grade mineralization is separated for semivariogram analysis, estimated separately and then brought back to determine an overall block grade. A threshold separating the predominantly low grade mineralized material from the higher grade mineralization was determined statistically at 1.4 g/t gold. Semivariograms were then produced for both the indicator and lower grade composites. The indicator value was then kriged for every block representing the probability of finding the high grade populations in each block.
A block model with blocks 10 x 10 x 5 metres was superimposed over the geologic solids with the percent below topography, percent below bedrock, percent inside mineralized solid and percent inside dykes recorded in each block. Based upon specific gravity analyses conducted by AGAT Laboratories in Mississauga, Ontario an average bulk density value of 2.74 g/cm3 was used to convert volumes to tonnes. Gold grades were interpolated into blocks using Ordinary Kriging and an Indicator approach. A gold grade for low grade (Au ≤ 1.4 g/t) was first estimated for blocks within the mineralized solid using composites within the mineralized solid that were ≤ 1.4 g/t Au. Next, the higher grade indicator variable was estimated for each block using the indicator variable for all composites within the mineralized solid.
For all variables, the kriging was completed in a series of 4 passes with the search ellipsoid for each pass tied to the range of the semivariogram. For pass 1 the dimensions of the search ellipsoid were equal to ¼ of the semivariogram range in each of the three principal directions. A minimum of 4 composites were needed to estimate a block with a maximum of 3 from any one drill hole. In this manner all blocks required a minimum of 2 drill holes within the search volume to make an estimate. For blocks not estimated in Pass 1 a second pass was made with the search ellipsoid dimensions expanded to ½ the semivariogram range. A third pass using the full range and a fourth pass using twice the range completed the exercise. Due to the fewer number of high grade composites a fifth pass was required to estimate the high grade gold value. For blocks containing some percentage of dyke material the average grade of the dykes, a value of 0.015 g/t gold, was assigned. Blocks containing some percentage of material outside the mineralized solid were estimated using composites from outside the solid. The total gold grade for each 10 x 10 x 5 m block was then a weighted average grade.
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Delineated mineralization was classified as a resource according to the definitions from National Instrument 43-101 (2011) and CIM (2005). The geological continuity of the mineralization within the Afric Zone has been established by surface geological mapping, trench sampling and diamond drilling. Grade continuity can be quantified by semivariogram analysis. Thus, the classification of mineral resources within the Afric Zone was ‘Indicated’ if the mineralized solid blocks were estimated during pass 1 and 2 using search ellipses with dimensions up to ½ the semivariogram range. All remaining blocks were classified as Inferred. While one drill hole extends below –100 m AMSL elevation the majority do not and, thus, the mineral resource is only reported above the -100 m AMSL elevation.
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Data Verification
As part of the verification process, the Authors have reviewed geological reports and miscellaneous technical papers, and other public information as listed in Section 27 (References). In addition, the Author have reviewed company news releases and MD&A’s which are posted on SEDAR (The System for Electronic Document Analysis and Retrieval).
The Authors have conducted an extensive review of all of the Property technical information and assumes that all of the information and technical documents reviewed and listed in the “References” and posted on SEDAR are accurate and complete in all material aspects.
Authors have reviewed the drill hole database provided (GEMS database used for the 2014 MRE and updated to include 2016 and 2018 drill data) and verifications of the drill hole database have been completed by the Authors. The Authors conducted verification of the laboratories analytical certificates (2011 to 2018) and validation of the Project digital database supplied by Omni for errors or discrepancies. A minimum of 20% of the digital assay records were randomly selected and checked against the laboratory assay certificates. A comparison of 30 mineralized intervals disclosed in 2011, 2012, 2013, 2016 and 2018 GTA press releases with analytical data in the digital database found no discrepancy.
Verifications were carried out on drill hole locations (i.e. collar coordinates) in the GEMS database with what has been presented in reports. There were no errors noted in the database. All drill holes have been professionally surveyed, including the 2016 and 2018 drill holes by TBT Engineering of Thunder Bay Ontario.
The Authors have reviewed the results of the QA/QC for drilling completed to the end of 2014. Although GTA implemented a comprehensive QA/QC program for the 2016 and 2018 drill programs, completed since the last Property mineral resource estimate completed by Giroux and Blanchflower (2014), the Authors have not reviewed the QA/QC results as this data was not available as of the effective date of this report. However, based on results of previous programs carried out by GTA, the Authors have no reason to believe that the 2016 and 2018 data is not of good quality and that the QA/QC sampling of the drill core does not provide adequate and good verification of the data. The results of the QA/QC program carried out during the 2016 and 2018 drill programs will need to be compiled and reviewed before publication of a revised MRE.
The Authors are of the opinion that the assay sampling program and extensive QA/QC sampling of core by previous issuers provides good verification of the data and that previous issuers operated according to industry standards at the time.
All geological data has been reviewed and verified by Authors as being accurate to the extent possible and to the extent possible all geologic information was reviewed and confirmed. There were no errors or issues identified with the database.
Vadnais-Leblanc conducted a site visit to the Property on June 25 and June 26, 2020. Vadnais-Leblanc inspected the office, core logging and sampling facilities and core storage area in Schreiber. VadnaisLeblanc personally laid out and examined 11 selected mineralized core intervals from 11 diamond drill holes
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from the 2012, 2013 and 2016 drill programs. Vadnais-Leblanc examined accompanying assay certificates and assays were examined against the drill core mineralized zones. Vadnais-Leblanc inspected the offices, core logging and sampling facilities and core storage areas. Vadnais-Leblanc conducted a field tour of the Property area including a visit to the main Afric deposit area, and a number of drill sites.
There is currently no exploration or mining activities on the Property and Omni has completed no exploration on the Property to date. As a result, there was no opportunity for Vadnais-Leblanc to personally view the entire path of the drill core, from the drill rig to the logging and sampling facility and finally to the laboratory.
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Recommendations
The Afric Zone (Audney, Caly and Caly North veins) of the Northshore Property contains a potentially openpitable historic Indicated and Inferred MRE. The Afric zone is open along strike and at depth. In addition to the Afric Zone, additional gold-bearing structures, including Zones 2, 3, 4, 5, Gino Vein and the past producing Northshore Zone, have been identified on the Property.
The Authors consider that the Property has potential for delineation of additional Mineral Resources (including open-pitable, and underground bulk-minable or high grade narrow vein) and that further exploration is warranted. After discussions between Omni and the Authors an Exploration Plan for the Property is proposed, to be implemented by Omni. A proposed program and budget for the fourth quarter of 2020 to first quarter of 2021 is outlined below. Exploration programs on the Property have generally been completed in seasonal campaigns, with surface mapping, stripping, channel sampling and prospecting done through to mid-November; drilling can be completed from January to March. Geophysics as well as preparatory work for drilling (access and drill site building) can be completed throughout the year.
The Authors have reviewed the proposed program for further work on the Property and, in light of the observations made in this report, supports the concepts as outlined. Given the prospective nature of the Property, it is the Authors opinion that the Property merits further exploration and that proposed plans for further work are justified. The current proposed work program will help advance the Property and will provide key inputs required to evaluate the economic viability of a mining project on the Property.
The Authors recommend that Omni conduct the further exploration as proposed, subject to funding and any other matters which may cause the proposed exploration program to be altered in the normal course of its business activities or alterations which may affect the program as a result of exploration activities themselves.
Proposed Budget Phase 1:
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Geological compilation of the current database, claim package and update current 3D interpretation for specific planning purposes
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Surface stripping and channel sampling of the Afric Zone and other potential targets on the Property
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Detailed geological and structural mapping of the stripped areas
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Detailed structural logging of recent drill core (2011-2018); mapping vein structures
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Approximately 4,000 metres of drilling, split between drilling the Afric Zone, and drilling zones/new targets outside of the Afric Zone. The focus of the drilling on the Afric Zone will be on extending the limits of known mineralization along strike and at depth.
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Revised mineralogical model based on geological and structural mapping and new drilling
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Revised MRE estimate and Technical Report in support of the revised MRE, to include results of drilling completed in 2016 and 2018 by GTA and current drilling completed by Omni.
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The total cost of the recommended Q4 2020 – Q1 2021 work program is estimated at CAD$1.00 million.
Once the phase 1 drill program is complete the geological team will assess the new data and proceed to phase 2 which will be success driven based on phase 1, and subject to funding. Phase 2 to include but not limited to geophysical surveys (magnetic, induced polarization surveys), additional drilling, additional metallurgical test work, geotechnical logging and an updated MRE and Preliminary Economic Assessment.
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2 INTRODUCTION
SGS Geological Services (“SGS”) was contracted by Omni Commerce Corp. ("Omni" or the "Company") to complete an updated National Instrument 43-101 ("NI 43-101") Technical Report for the Northshore Gold Property (the “Property”) in the Priske Township, Thunder Bay District of Ontario, Canada.
In June 2020, Omni entered into two separate mineral property purchase agreements to acquire an aggregate 100% ownership of the Property. On June 24, 2020, Omni announced that it has entered into a definitive Mineral Property Purchase Agreement dated June 22, 2020 with Balmoral Resources Ltd. (“Balmoral”), a 100% subsidiary of Wallbridge Mining Company Limited (TSX:WM), an Ontario corporation which has its common shares listed on the Toronto Stock Exchange. Omni has agreed to acquire Balmoral’s right, title and interest in and to its 44% joint venture interest in the Property on the terms in the Agreement. Omni announced on June 1, 2020, that it entered into a definitive mineral property purchase agreement with CBLT Inc. (“CBLT”) to acquire CBLT’s 56% joint venture interest in the Property. Upon completion of the transactions with Balmoral and CBLT, Omni will own 100% of the Property.
Omni is currently an unlisted reporting issuer. As a result of the 100% purchase of the Property, Omni is seeking to list its common shares on the Canadian Securities Exchange (“CSE”). The current technical report regarding the Property is to be filed with an application by Omni for a listing on the CSE and the report will be used by Omni in partial fulfillment of their disclosure requirements under Canadian securities laws, including National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The effective date of this report is July 10, 2020.
A NI 43-101 Technical report on the Property was previously written by Giroux Consultants Ltd. and Minorex Consulting Ltd. in 2014 (Giroux and Blanchflower, 2014) and was titled “Technical Report On the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada”, dated June 30, 2014. The report was written for GTA Resources and Mining Inc., now GTA Financecorp Inc, ("GTA"). GTA Resources and Mining Inc. changed its name to GTA Financecorp Inc. as of March, 2019. The 2014 NI 43-101 Technical Report for the Property is posted on SEDAR under GTA’s profile. On January, 2019, GTA agreed to sell its assets, including a 56% ownership in the Property, to CBLT.
The Property hosts a number of known zones of gold mineralization including the former producing North Shore Mine and the Afric Zone, the latter the recent focus of activity. In 2014, GTA reported an initial NI 43101 Mineral Resource Estimate (“MRE”) for the Afric Zone (see GTA news release dated June 10, 2014, posted on SEDAR). At a cut-off grade of 0.50 grams gold per tonne, GTA reported that the Afric zone contained 391,000 ounces gold in 12,360,000 tonnes at a grade of 0.99 g/t gold in the Indicated category, and 824,000 ounces gold in 29,580,000 tonnes at a grade of 0.87 g/t gold in the Inferred category (Giroux and Blanchflower, 2014). Although the 2014 MRE was at the time prepared and disclosed in compliance with all disclosure requirements for mineral resources or reserves set out in the NI 43-101 Standards of Disclosure for Mineral Projects, and the classification of the 2014 MRE as an Indicated and Inferred MRE was consistent with CIM Definition Standards - For Mineral Resources and Mineral Reserves at the time, a qualified person for Omni has not done sufficient work to classify the 2014 MRE as a current mineral resource and Omni is not treating the 2014 MRE as current mineral resource. There is no current MRE for the Property with respect to Omni. The 2014 MRE is considered historical.
Allan Armitage, Ph.D., P. Geo, (“Armitage”) and Olivier Vadnais-Leblanc, B.Sc., géo. (“Vadnais-Leblanc”) of SGS (the “Authors”) are responsible for the preparation of the current technical report. Armitage and Vadnais-Leblanc are independent Qualified Persons as defined by NI 43-101.
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Sources of Information
The current report is based upon unpublished reports and property data (drill logs, assay certificates, drill hole data, in CSV format, to the end of the 2018, a GEOVIA GEMS Project including data to the end of 2016) provided by Omni, as supplemented by publicly-available publications. The Authors understand that no exploration work has been completed by Omni, and there is no new scientific or technical information about the Property since its acquisition by Omni. Exploration, including a MRE, completed on the Property prior to the acquisition by Omni is described in Section 6: History. The Authors are confident that the current technical report contains all material information about the Property.
The Authors have reviewed geological reports and miscellaneous technical papers, and other public information as listed in Section 27 (References). In addition, the Authors have reviewed company news releases and Management’s Discussions and Analysis (“MD&A”) which are posted on SEDAR (www.sedar.com).
SEDAR, “The System for Electronic Document Analysis and Retrieval”, is a filing system developed for the Canadian Securities Administrators to:
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facilitate the electronic filing of securities information as required by Canadian Securities Administrator;
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allow for the public dissemination of Canadian securities information collected in the securities filing process; and
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provide electronic communication between electronic filers, agents and the Canadian Securities Administrator
The Property was the subject of a technical report by Minorex Consulting Ltd. in 2012 (Blanchflower, 2012) and was titled “Technical Report on the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada”, dated May 22, 2012. The report was written for GTA Resources and Mining Inc., now GTA Financecorp Inc, ("GTA"). The 2012 NI 43-101 Technical Report for the Property is posted on SEDAR under GTA’s profile.
The Property was the subject of a second technical report by Giroux Consultants Ltd. and Minorex Consulting Ltd. in 2014 (Giroux and Blanchflower, 2014) and was titled “Technical Report on the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada”, dated June 30, 2014. The report was written for GTA Resources and Mining Inc., now GTA Financecorp Inc, ("GTA"). The 2014 NI 43-101 Technical Report for the Property is posted on SEDAR under GTA’s profile.
Sections 4 to 8, 10 to 11 and 13 in this report have been extracted from the 2012 technical report (Blanchflower, 2012) and 2014 technical report (Giroux and Blanchflower, 2014) and updated to include work done on the property since 2014. Section 4: Property Description and Location, has been updated to include information on the Property as of the effective date of the current technical report.
Information regarding the property history, regional property geology, deposit type and metallurgical test work (Sections 5-8) have been sourced from previous technical reports and company filings on SEDAR and revised or updated as required.
Historical MRE values presented in this report, including any underlying assumptions, parameters and classifications, are quoted “as is” from the source.
The Authors have carefully reviewed all of the Property information and assumes that all of the information and technical documents reviewed and listed in the “References” are accurate and complete in all material aspects. The Authors believe the information used to prepare this Technical Report is valid and appropriate
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considering the status of the Property and the purpose of the current technical report. By virtue of the Authors’ technical review of the Property, the Authors affirm that the work program and recommendations presented herein are in accordance with NI 43-101 requirements and follow CIM Standards on Mineral Resources and Reserves – Definitions and Guidelines (“CIM Definition Standards”).
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Site Visit
Vadnais-Leblanc conducted a site visit to the Property on June 25 and June 26, 2020, accompanied by Douglas Moses, the economic development officer of Pays Plat first nation and representing Omni. Douglas Moses worked on the project for the 2012 and 2013 drilling campaign. There is currently no exploration or mining activities on the Property and Omni has completed no exploration on the Property to date.
During the site visit Vadnais-Leblanc was given access to the core shack by a municipal employee. Vadnais-Leblanc examined 11 selected mineralized core intervals from 11 diamond drill holes from the 2012, 2013 and 2016 drill programs. Vadnais-Leblanc examined accompanying assay certificates and assays were examined against the drill core mineralized zones. Vadnais-Leblanc inspected the core logging and sampling facilities and core storage areas. Vadnais-Leblanc conducted a field tour of the Property area including a visit to the main Afric deposit area, and a number of drill sites. Vadnais-Leblanc was able to locate and measure the location of 26 drill hole casings with a hand-held GPS for validation purposes.
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Units and Abbreviations
All units of measurement used in this technical report are in metric. All currency is in US dollars, unless otherwise noted.
Table 2-1 List of Abbreviations
| $ | Dollar sign | km | Kilometers |
|---|---|---|---|
| % | Percent sign | km | Kilometers |
| ° | Degree | km2 | Square kilometer |
| °C | Degree Celcius | m | Meters |
| °C | Degree Celsius | m2 | Square meters |
| °F | Degree Fahrenheit | m3 | Cubic meters |
| µm | micron | mm | millimetre |
| AA | Atomic absorption | mm2 | square millimetre |
| Ag | Silver | mm3 | cubic millimetre |
| Au | Gold | Moz | Million troyounces |
| AuEq | Gold equivalentgrade | MRE | Mineral Resource Estimate |
| Az | Azimuth | Mt | Million tonnes |
| CAD$ | Canadian dollar | NAD 83 | North American Datum of 1983 |
| cm | centimetre | NQ | Drill core size(4.8 cm in diameter) |
| cm2 | square centimetre | oz | Ounce |
| cm3 | cubic centimetre | oz | Troyounce(31.1035grams) |
| Cu | Copper | Pb | Lead |
| DDH | Diamond drill hole | ppb | Partsper billion |
| ft | Feet | ppm | Partsper million |
| ft2 | Square feet | QA | QualityAssurance |
| ft3 | Cubic feet | QC | QualityControl |
| g | Grams | QP | Qualified Person |
| g/t orgpt | Gramsper Tonne | RC | Reverse circulation drilling |
| GPS | Global PositioningSystem | RQD | Rockqualitydescription |
| Ha | Hectares | SG | Specific Gravity |
| ha | Hectare | Tonnes or T | Metric tonnes |
| HQ | Drill core size (6.3 cm in diameter) |
US$ | US Dollar |
| ICP | Induced coupledplasma | UTM | Universal Transverse Mercator |
| kg | Kilograms | Zn | Zinc |
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3 Reliance on Other Experts
Information concerning claim status, ownership, and assessment requirements which are presented in Section 4 below has been provided to the authors by way of e-mail on July 07, 2020. The Authors only reviewed the land tenure in a preliminary fashion and have not independently verified the legal status or ownership of the Property or any underlying agreements. However, the Authors have no reason to doubt that the title situation is other than what is presented in this technical report. The Authors are not qualified to express any legal opinion with respect to Property titles or current ownership.
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4 PROPERTY DESCRIPTION AND LOCATION
The Northshore property is situated in the Thunder Bay Mining Division within Priske Township, approximately 4 km south of the town of Schreiber, Ontario, on the northern shore of Lake Superior (Figure 4-1). Vehicle access to the Property is possible via a gravel road, called the ‘Worthington Bay Road’, which joins the Trans-Canada Highway No. 17. All parts of the Property are easily accessible by truck or all-terrain vehicles on non-serviced roads.
The geographic coordinates of the main mineral occurrence within the Property, called the ‘Afric’ Zone, are 48° 45’ 54’’ North latitude by 87[o] 16’ 30” West longitude, or UTM NAD83, Zone 16 U, 4797800 m East by 5401359 m North.
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Mineral Tenure
The Property comprises 3 Patented Claims and 12 Unpatented (Cell) Claims within the Priske Township area, with a total area of 359.655 ha (Figure 4-2; Table 4-1). The Patented and Unpatented Claims are currently registered in the name of Balmoral 44% and CBLT 56% and will be transferred to Omni upon completion of the transaction with Balmoral and CBLT. All claims will be beneficially owned 100% by Omni. All Patented and Unpatented claims are currently in good standing.
Figure 4-1: Northshore Property Location Map (from Blanchflower, 2012)
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Figure 4-2: Northshore Property Land Tenure Map
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Table 4-1: Northshore Property Patented and Unpatented Mining Claim Data
Unpatented (Cell) Claims
| Legacy Claim Id |
Tenure ID |
Cell ID | Area (Ha) |
Tenure Type |
Work Required |
Total Reserve |
Anniversary Date |
Township / Area |
Holders |
|---|---|---|---|---|---|---|---|---|---|
| 4211126 | 113859 | 42D14C273 | 19 | Single Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Copper Island Area,Priske |
Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 113860 | 42D14C292 | 1.7 | Single Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Copper Island Area,Priske |
Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 132705 | 42D14C293 | 18.4 | Single Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Priske | Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 205438 | 42D14C294 | 17 | Boundary Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Priske | Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 217547 | 42D14C333 | 1.8 | Single Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Copper Island Area,Priske |
Balmoral (408919) 44% and CBLT (411512)56% |
| 4211127 | 220728 | 42D14C320 | 16.8 | Single Cell Mining Claim |
$400 | $ - | 21-Nov-21 | Copper Island Area,Priske |
Balmoral (408919) 44% and CBLT (411512)56% |
| 4211127 | 274668 | 42D14C340 | 3.4 | Single Cell Mining Claim |
$200 | $ - | 21-Nov-21 | Copper Island Area,Priske |
Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 283557 | 42D14C314 | 16.9 | Boundary Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Priske | Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 283558 | 42D14C313 | 20.8 | Single Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Copper Island Area,Priske |
Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 301273 | 42D14C312 | 6 | Single Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Copper Island Area,Priske |
Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 331418 | 42D14C334 | 7.4 | Boundary Cell Mining Claim |
$200 | $4,142 | 21-Nov-21 | Copper Island Area,Priske |
Balmoral (408919) 44% and CBLT (411512)56% |
| 4211126 | 333157 | 42D14C274 | 20.2 | Single Cell Mining Claim |
$400 | $4,142 | 21-Nov-21 | Priske | Balmoral (408919) 44% and CBLT (411512)56% |
| 12 | 12 | 149.4 | $2,800 | $41,420 |
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Patented Claims
| MLAS ID | Crown Patent | PIN | Owner | Area (ha) |
Township | Exploration Reserve |
Total Reserve |
|---|---|---|---|---|---|---|---|
| PAT-16217 | PPA3627 | 62485-0003 | Balmoral (408919) 44% and CBLT (411512) 56% |
16.005 | Priske | $ - | $ - |
| PAT-16219 (inc BJ122) |
PPA854 | 62458-0235 | Balmoral (408919) 44% and CBLT (411512) 56% |
97.125 | Priske | $687,567 | $687,567 |
| PAT-16218 | None identified on PIN |
62458-1273 | Balmoral (408919) 44% and CBLT(411512)56% |
97.125 | Priske | $66,000 | $66,000 |
| 3 | 210.255 | $753,567 | $753,567 |
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Property Claim Status
The Property was initially staked prior to 2018 under Ontario’s ground-based claim staking process. On April 10 2018, Ontario converted its manual system of ground and paper staking and maintaining unpatented mining claims to an online mining claim registration system known as the Mining Land Administration System (MLAS). All active, unpatented claims (legacy claims) were converted from their legally defined location by claim posts on the ground or by township survey to a cell-based provincial grid. The provincial grid is built on the latitude- and longitude-based National Topographic System (NTS) and is made up of more than 5.2 million cells each measuring 15 seconds latitude by 22.5 seconds longitude and ranging in size from 17.7 ha in the north to 24 ha in the south. Cells in the Property area are approximately 22 ha in size. Each cell has a unique identifier based on the cell’s position in the grid.
Ontario mining claims are now legally defined by their cell position on the grid and UTM coordinate location in the online MLAS Map Viewer. Legacy claims were not cancelled but continue as one or more cell claims or boundary claims that resulted from conversion.
As defined in the Mining Act, a cell claim is a mining claim that relates to all the land included in one or more cells on the provincial grid that is open for mining claim registration. A cell claim is created as a new registration after April 10 2018 or at conversion where there are one or more legacy claims in a cell, and all are held by the same holder. In this case, if there is more than one legacy claim in a cell, those claims will merge into one cell claim. A cell claim created from conversion can be a minimum of one cell (single cell mining claim or SCMC) though it can be amalgamated to form a multi-cell mining claim (MCMC) up to a maximum of 25 cells.
As defined in the Mining Act, a boundary claim is created at conversion when there are multiple legacy claims within a cell that cannot merge into a cell claim. There are two circumstances where mining claims will not merge into a cell claim:
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When the legacy claims are held by different holders.
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When the legacy claims are held by the same person who chooses to keep them separate by making an election through the Claim Boundary Report process.
Unpatented mining claims include no surface rights however a right to acquire the surface rights for development purposes exists through the Ontario Mining Act. The Mining Act also provides legal access to the land for the purpose of exploration.
Mining claims are generally subject to the following Crown reservations:
- The surface rights over a width of no more than 120 m from the high-water mark where a mining claim includes land covered with water or bordering on water
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Where a highway or road constructed or maintained by the Ministry of Transportation crosses a mining claim, the surface rights over a width of no more than 90 m, measured from the outside limits of the right
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of way of the highway or road along both sides of the highway or road
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Sand and gravel reserved
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Peat reserved.
Certain mining claims also:
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Are MRO or part MRO where all or part of the surface rights within the claim are held by a third party
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Exclude hydro right of ways
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Exclude withdrawn areas.
Given the nature of Ontario’s MLAS cell-based map staking system, certain cell claims overlap areas which are withdrawn from mineral exploration and development. Such cell claims are referred to as encumbered claims. Features that are an encumbrance on a cell claim include:
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Land that is part of an Indian reserve.
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Provincial Park or a conservation reserve.
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Mining leases except for surface rights only leases.
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Freehold patents except those for surface rights only.
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Licences of occupation.
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Designated protected area in a community-based land use plan under the Far North Act.
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Land withdrawn under the Mining Act from prospecting, registration of mining claim, sale or lease for the following reasons:
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Land included in a proposed Aboriginal land claim settlement
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Land intended to be added to an Indian reserve
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Land part of a provincial park, conservation reserve or forest reserve created under Ontario’s Living
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Legacy Land Use Strategy
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Land that meets the criteria for a site of Aboriginal Cultural Significance
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Land designated as an area of provisional protection under the Far North Act.
Where a cell or boundary claim overlaps a withdrawn area, the claim holder is only entitled to work on the claim area outside the withdrawn area.
Annual assessment work requirements per mining claim, to be filed on or before the claim due date (anniversary date), are:
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Single cell claim: $400 (unless a cell was encumbered at conversion)
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Multi-cell claim: $400 per cell (unless a cell was encumbered at conversion)
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Boundary claim: $200,
If a cell is encumbered at conversion, the assessment work requirement for a cell claim in that cell will be $200. This special rule applies only if the conversion process results in a claim holder having a cell claim
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in an encumbered cell. If that cell claim forfeits, the cell will be open for claim registration, subject to the encumbrance but any new cell claim registered for that cell will have the assessment work requirements set at the standard cell claim amount of $400.
The staked claims listed in Table 4-1 details the current MLAS designated encumbered/unencumbered cell classification and annual assessment work costs for the Property. As of the effective date of this report, MLAS designates 41 boundary claims and 16 standard claims and 30 encumbered claims, resulting in total annual assessment work of requirements of $20,600.
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Current Property Status
In June 2020, Omni entered into two separate mineral property purchase agreements to acquire an aggregate of 100% ownership of the Property. On June 24, 2020, Omni announced that it has entered into a definitive Mineral Property Purchase Agreement dated June 22, 2020 with Balmoral Resources Ltd. (“Balmoral”), a 100% subsidiary of Wallbridge Mining Company Limited (TSX:WM), an Ontario corporation which has its common shares listed on the Toronto Stock Exchange. Omni has agreed to acquire Balmoral’s right, title and interest in and to its 44% joint venture interest in the Property on the terms in the Agreement. Omni announced on June 1, 2020, that it entered into a definitive mineral property purchase agreement with CBLT Inc. (“CBLT”) to acquire CBLT’s 56% joint venture interest in the Property. Upon completion of the transactions with Balmoral and CBLT, Omni will own 100% of the Property.
In January, 2019 CBLT purchased GTA’s 56% interest in the Property. As part of the sale, GTA was to receive $1,050,000, to be paid in 35,000,000 treasury shares of CBLT. CBLT also issue to GTA 21,000,000 common share purchase warrants (the “Warrants”). Each Warrant has a two-year term and be exercisable at $0.08 (eight cents), and shall have an acceleration clause triggered if the closing price for CBLT’s shares exceeds $0.16 (sixteen cents) for 20 (twenty) consecutive trading days (see CBLT news release dated January 21, posted on SEDAR under CBLT’s profile).
On July 27, 2011 GTA entered into an Option Agreement with Balmoral Resources Ltd. to acquire up to a 70% interest in the Northshore Property by making cash payments in aggregate totaling $150,000, issuing in favor of Balmoral 3,500,000 common shares and completing $5,500,000 in eligible work expenditures on the Property over a 5 year period. The Option Agreement received regulatory approval on September 27, 2011. On July 14, 2014 GTA, pursuant to the Northshore Option Agreement, delivered to Balmoral the Exercise Notice to vest GTA’s initial 51% interest in the Northshore Property and subsequently advised Balmoral that it has elected to form a 51/49 joint venture on the Property with Balmoral. GTA would be the initial joint venture operator. Since this notification, Balmoral has opted not to participate in the subsequent proposed exploration programs and have been diluted pro rata to 44 %.
4.3.1 Omni – CBLT Purchase Agreement
On June 1, 2020, Omni announced that it had entered into a mineral property purchase and sale agreement dated May 29, 2020 with CBLT. Omni has agreed to acquire CBLT’s right, title and interest in and to its 56% joint venture interest (the “JV”) in the Property (see news release dated June 1, 2020, posted on SEDAR under Omni’s profile).
The total consideration payable by Omni in respect of the Transaction is $1,450,000, consisting of: (i) cash consideration of $350,000, of which $50,000 has already been paid by way of non-refundable cash deposits, and of which $300,000 is payable by Omni on Closing; and (ii) stock consideration of $1,100,000 payable by the issuance of post-Consolidation (as defined below) common shares in the capital of Omni on Closing (the “Consideration Shares”). Prior to the Closing, Omni will undertake a five-for-one consolidation of its issued and outstanding common shares (the “Consolidation”). Omni will also complete a private placement financing of subscription receipts, on a post-Consolidation basis, at a price of $0.60 per subscription receipt, each consisting of one share and one common share purchase warrant of Omni, for gross total proceeds of not less than $1.5 million (the “Financing”). The Consideration Shares to be
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issued on Closing on a post-Consolidation basis will be issued at a deemed price per share equal to the price of subscription receipts sold in the Financing. All of the Consideration Shares will be subject to the terms of a voluntary escrow agreement, to be entered by the parties prior to Closing, which terms include the release of 25% of the Consideration Shares from escrow on each of the days which is four, six, eight and 12 months after the Closing. This voluntary escrow will be in addition to any escrow required by the policies of any applicable stock exchange and any hold restrictions under applicable securities laws. In addition, if CBLT, or any of its affiliates, stakes or otherwise acquires any rights to minerals located wholly or partially within or contiguous to the area located within two (2) kilometers from any portion of the exterior boundaries of the Property, as such exterior boundaries exist on the Closing (the “Area of Interest”), CBLT must provide notice to Omni of such acquisition and the details thereof, and Omni will have the election, to be exercised within thirty (30) days of the receipt of the notice of such Additional Rights, whether to include the Additional Rights in the Property (whether such rights are contained wholly within the Area of Interest or only partially within the Area of Interest).
Completion of the Transaction remains subject to a number of conditions, including satisfactory due diligence, Omni completing the Financing, Omni completing the Consolidation, Omni obtaining a technical report on the Property that is in compliance with National Instrument 43-101, Omni submitting an application to list its common shares on the Canadian Securities Exchange (the “CSE”), CBLT documenting sufficient and timely expenditures on the Property to meet the listing requirements of the CSE, Omni being satisfied that CBLT has completed the necessary consultation with any applicable indigenous peoples with respect to any matters pertaining to the Property, CBLT being in good standing in respect of its joint venture interest in the Property, receipt of all requisite approvals, and other conditions customary for transactions of this nature. The Agreement provides that the Closing shall be completed by August 31, 2020, or such earlier date as may be agreed to by the parties.
4.3.2 Omni – Balmoral Purchase Agreement
On June 24, 2020, Omni announced that it had entered into a mineral property purchase and sale agreement dated June 22, 2020 with Balmoral. Omni has agreed to acquire Balmoral’s right, title and interest in and to its 44% JV interest in the Property (see news release dated June 24, 2020, posted on SEDAR under Omni’s profile).
The binding Agreement sets out the terms on which the parties have agreed to complete the Transaction, and supersedes the letter of intent dated June 11, 2020 which was previously entered into by Omni and Balmoral. Omni has agreed to purchase a 44% interest in the Property from Balmoral for the purchase price of $1,055,000 on the terms and conditions of the Agreement. The Purchase Price will be satisfied by the following cash payments and share issuances: $35,000 in non-refundable cash deposits (already paid), $220,000 cash payable on completion of the Transaction, and $800,000 payable by the issuance of 1,333,333 post-Consolidation (defined below) common shares in the capital of Omni at a deemed price of $0.60 per Consideration Share on the Closing. If the issuance of the Consideration Shares together with any prior shareholdings of Balmoral or any of its associates or affiliates in Omni would result in them, directly or indirectly holding more than 9.9% of the total issued and outstanding common shares of Omni on Closing, then the number of Consideration Shares issuable will be reduced so that their collectively holdings are no more than 9.9% of the total issued and outstanding shares of Omni, and the Closing Share Consideration Amount will be reduced and the Closing Cash Consideration Amount increased accordingly.
Prior to the Closing, Balmoral will execute and deliver to Omni a voluntary escrow agreement, to be effective as of the Closing (the “Escrow Agreement”). The Escrow Agreement will provide, among other things, that all Consideration Shares will be deposited into escrow, with an escrow agent to be determined by Omni in its sole discretion and at the expense of Omni, and with the Consideration Shares to be released from escrow as to 25% on each of the days which is four, six, eight and 12 months after the Closing. Balmoral will be entitled to vote any Consideration Shares that are held in escrow, but will not be entitled to transfer, option or otherwise encumber any of such Consideration Shares without the prior written consent of Omni. This voluntary escrow will be in addition to any escrow required by the policies of any stock exchange.
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Completion of the Transaction are subject to a number of conditions, including Omni completing the Financing, Omni completing the Consolidation, Omni obtaining a new technical report on the Property that is compliant with National Instrument 43-101, Omni applying to list its common shares on a Canadian stock exchange, Omni completing the acquisition of the 56% interest in the Property from CBLT, receipt of all requisite approvals, and other conditions customary for transactions of this nature. The parties intend to complete the Transaction on or before August 31, 2020. There can be no assurance that the Transaction will be completed as proposed or at all. Finder’s fees may be payable in connection with the Financing.
Under the terms of the Agreement if Balmoral, or any affiliate, stakes or otherwise acquires any rights to minerals located wholly or partially within or contiguous to the area located within two (2) kilometers from any portion of the exterior boundaries of the Property, as such exterior boundaries exist on the Closing, it must provide notice to Omni of such acquisition and the details thereof, and Omni will have the election, to be exercised within thirty (30) days of the receipt of the notice of such Additional Rights, whether to include the Additional Rights in the Property (whether such rights are contained wholly within the Area of Interest or only partially within the Area of Interest).
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Underlying Agreements
SGS is not aware of any underlying agreements relevant to the Project.
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Permits and Authorization
The Ontario Mining Act regulations require exploration plans and permits, with graduated requirements for early exploration activities of low to moderate impact undertaken on mining claims, mining leases and licences of occupation. Exploration plans and permits are not required on patented mining claims. The proposed work program by Omni includes diamond drilling to infill and expand current resources along strike. The proposed drilling by Omni will be conducted on patented mining claims and therefore no permits are required.
SGS is unaware of any other significant factors and risks that may affect access, title, or the right, or ability to perform the exploration work recommended for the Property.
4.5.1 Exploration Plans and Permits Required under the Mining Act
The Ontario Mining Act regulations require exploration plans and permits, with graduated requirements for early exploration activities of low to moderate impact undertaken on mining claims, mining leases and licences of occupation. Exploration plans and permits are not required on patented mining claims as such work listed under Exploration Plan and Exploration Permit below may be completed provided proper consultations (if applicable) are completed.
There are a number of exploration activities that do not require a plan or permit and may be conducted while waiting for a plan or permit is effective. These may include the following:
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Prospecting activities such as grab/hand sampling, geochemical/soil sampling, geological mapping
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Stripping/pitting/trenching below thresholds for permits
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Transient geophysical surveys such as radiometric, magnetic
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Other baseline data acquisition such as taking photos, measuring water quality, etc.
Exploration Plan
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Those proposing to undertake minimal to low impact exploration plan activities (early exploration proponents) must submit an exploration plan. Early exploration activities requiring an exploration plan include:
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Geophysical activity requiring a power generator
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Line cutting, where the width of the line is 1.5 m or less
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Mechanised drilling for the purposes of obtaining rock or mineral samples, where the weight of the drill is 150 kg or less
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Mechanised surface stripping (overburden removal), where the total combined surface area stripped is less than 100 m2 within a 200 m radius
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Pitting and trenching (of rock), where the total volume of rock is between 1 m3 and 3 m3 within a 200 m radius.
To undertake the above early exploration activities, an exploration plan must be submitted, and any surface rights owners must be notified. Aboriginal communities potentially affected by the exploration plan activities will be notified by the MNDM and have an opportunity to provide feedback before the proposed activities can be carried out.
Exploration Permit
Those proposing to undertake moderate impact exploration permit activities (early exploration proponents) must apply for an exploration permit. Early exploration activities that require an exploration permit include:
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Line cutting, where the width of the line is more than 1.5 m
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Mechanised drilling, for the purpose of obtaining rock or mineral samples, where the weight of the drill is greater than 150 kg
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Mechanised surface stripping (overburden removal), where the total combined surface area stripped is greater than 100 m2 and up to advanced exploration thresholds, within a 200 m radius
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Pitting and trenching (rock), where the total volume of rock is greater than 3 m3 and up to advanced exploration thresholds, within a 200 m radius.
The above activities will only be allowed to take place once the permit has been approved by the MNDM. Surface rights owners must be notified when applying for a permit. Aboriginal communities potentially affected by the exploration permit activities will be consulted and have an opportunity to provide comments and feedback before a decision is made on the permit.
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Environmental Considerations
Omni has advised SGS that there are no outstanding or pending adverse environmental issues attached to the Property. No mining or other potentially disruptive work has been carried out, on the property, beyond that described in this report.
As far as SGS is aware, the environmental liabilities related to the Project, if any, are negligible.
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5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY
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Accessibility
Vehicle access to the Property is possible via a gravel road, called the ‘Worthington Bay Road’, which joins the Trans-Canada Highway No. 17 approximately 4.4 kilometres east of the town of Schreiber. The Worthington Bay road leads 5 kilometres south to the shore of Lake Superior where the old Northshore mill was located. The Afric mineralized zone is situated approximately 1.5 km west of the Worthington Bay road and accessed via local gravel roads. The dirt and rocky road leading to the drill site is still accessible with a 4-wheel drive pickup truck almost everywhere. Steep access roads for the higher location drill site have been washed out and might not be accessible with a pick-up truck.
The city of Thunder Bay has the closest commercial airport to the town of Schreiber and the Property. There are regular daily flights to Thunder Bay from Toronto and elsewhere in Canada, and it is a 260 km, or a 3- hour drive, from Thunder Bay to Schreiber.
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Climate and Vegetation
The Schreiber area has a humid continental climate with average mean temperatures ranging from -20° C (January) to +20° C (July), and an annual average precipitation of 840 mm. Local lakes will usually start to freeze over in mid-November, and thaw in early to mid-May. Exploration work is possible year-round.
The Property is extensively covered by a mixture of spruce and fir trees with moderate undergrowth in poorly drained areas. Elsewhere, birch and alder with thinner undergrowth cover hillocks.
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Local Resources and Infrastructure
There is no useable surface mining infrastructure on the Property. The old mill on the shore of Lake Superior is dismantled and the old Northshore No. 4 shaft has been backfilled and reclaimed. There are adequate areas within the Property available for potential tailings storage, waste disposal and processing plant sites.
The nearby cities of Marathon, to the east, and Thunder Bay, to the west, are dominated by the mining and logging industries respectively where an experienced labour pool and all types of exploration and mining services are readily available. The nearby town of Schreiber has a population of 1,059 people (2016 census: Wikipedia) and is located on the Trans-Canada Highway 17 beside the Canadian Pacific railroad. There is a major east-west electrical transmission line on the southside of Schreiber, about 2 km north of the Property.
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Physiography
The Property is situated on the rugged northern shore of Lake Superior with considerable relief from the lake shore. Cenozoic glaciation, local faulting (i.e. Worthington Bay Fault) and the granitic and metavolcanic country rocks have all contributed to the local cliffs and hilly topography within the claim holdings. Elevations range from approximately 625 m along the shore of Lake Superior to 1,375 m along the northern boundary of the mining claims, near the summit of Mount Gwynne.
Local drainage is southward into Lake Superior. The drainages of the local creeks are often straight for long distances owing to the influence of local faults and lineaments. Bedrock exposures are quite common along cliffs, steep slopes and ridge tops, but elsewhere outcrop is scarce except where exposed by road cuts or trenches.
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6 HISTORY
The following summary of the exploration history of the Property to 2014 has been extracted from Giroux and Blanchflower (2014) and Blanchflower (2012), which includes a compilation from reports by Carter (1988), Drost (1997) and LeGrand (2009).
Additional work completed on the Property between 2014 and 2019 by GTA, prior to the acquisition by Omni, is also included in Exploration History.
A total of 154 diamond drill holes, totalling 22,171 metres of drilling, have been completed on the Property of which 47 drill holes, totalling 8,157 metres, were completed during historic exploration work by Noranda, Cyprus Canada and American Bonanza. These earlier operators identified six mineralized zones, including the east-west trending Afric, Northshore and No. 3 Zones and the east-northeasterly to northeasterly trending No. 2, 4 and 5 Zones. Since September, 2011 GTA has completed 107 diamond drill holes, totalling 14,014 metres of NQ-size core drilling.
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Exploration History
6.1.1 1898 – 1995 Exploration
1898: Gold was first discovered on the BJ 122 mining claim by Peter McKellar. The mining claim was surveyed in 1898 and patented by him in 1903 (Carter, 1988).
1898 to 1932: In 1920 the BJ122 patented claim was optioned to W. L. Longworth (later McKellarLongworth Ltd.) who operated the property and discovered 14 veins, one of which is gold-bearing called the ‘Main Vein”. The following quote is from the geological report by Carter (1988, p. 134).
“This vein (Main Vein) is an auriferous quartz vein from 1 to 18 inches wide (3 cm to 46 cm) and was about 515 m long, terminated at both ends by faults and hosted in intermediate metavolcanics and hornblende syenite. The trend of the vein is N 80[o] W with a dip of -55[o] to the south. The vein occupies a fracture in hornblende syenite and felsic and intermediate metavolcanics. It was mineralized with visible gold, pyrite, chalcopyrite, pyrrhotite, galena, arsenopyrite and tetradymite. A channeled sample across eighteen inches of quartz in which no gold could be seen, gave, on assay $40.00 in gold per ton. Development work on the Main Vein consisted of the driving of adits and diamond drilling. The underground work consisted of workings on three levels and one sub-level. Three adits were driven on the vein system. The No. l adit was driven westerly on the eastern end of the vein to form the second level, for a distance of 1100 feet (335 m) at an elevation of 975 feet (297 m). One hundred feet of crosscutting were driven from the adit which followed the vein for a total length of about 550 feet (168 m) at three points. At 2 of these points small stopes 240 feet (73 m) and 140 feet (43 m) long had been started and carried to a vertical height of about 35 feet (11 m). A 15-foot (5 m) winze had been sunk on the vein, 15 feet (5 m) from the portal of the adit and two shallow shafts about 50 feet (15 m) south of the portal were sunk. The No. 2 adit was located at the western end of the vein, about 1800 feet (549 m) west of the No. l adit, and at an elevation of 1150 feet (351 m) forming the first level. It was driven eastwards onto the vein for a distance of 700 feet (213 m), and two stopes were made, one for a vertical distance of 80 feet (24 m) to the surface. From this first level a 130-foot (40 m) winze inclined at 27o west was sunk to a lower level called the sub-level, at an elevation of 1100 feet (335 m), 50 feet (15 m) vertically below. This sub-level was 250 feet (76 m) long and partly followed the vein. From this sub-level ore was stoped for a distance of 175 feet (53 m) mining out all the ore. A third adit, No. 3 adit, located 250 feet (76 m) south of the No. 2 adit and 100 feet (30 m) below it, was driven northeastwards into the hillside onto the vein to form the third level. It followed the vein for 200 feet (61 m) in an easterly direction. The portal of this adit was thus at an elevation of 1050 feet (320 m) forming a level at this horizon on the vein. It was connected by a raise to the 1100 foot (335 m) sub-level. Because of the presence of a fault beneath the sub-level this work was unsuccessful and was abandoned after about 400 feet (122 m) of lateral development. Diamond drilling in 1939 consisted of 10 diamond drill holes by P.A.L Exploration Limited into the vein to test its persistence at depth. The total length drilled was
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in excess of 2,200 feet (671 m) and the Main Vein was intersected at 180 feet below the first level and the occurrence of gold at depth was confirmed.”
1933 to 1937: North Shores Gold Mines Limited was formed and a 25-ton mill was built in 1934 at Worthington Bay on the shore of Lake Superior. Gold production began in 1935. Hand-sorted ore was trucked from the adits to the mill where the gold was recovered in an amalgam and a heavy concentrate. North Shores Gold Mines Limited was renamed North Shore Mines Limited in 1936. Production ceased in 1937 by which time 3,808 tons of ore were milled yielding 2,441 ounces of gold and 226 ounces of silver. Recovery of gold averaged 0.64 ounces of gold per ton of ore milled (Carter, 1988). In 1939 R. W. Phelps reportedly acquired the Property.
It is reported that Northshore Gold Mines Ltd. drilled at least 5 holes along the old Northshore Zone during their 1935 to 1937 tenure but detailed descriptions of these drill holes are not documented in any available reports.
1960 to 1979: In 1960 the original Northshore property, comprised of a block of five contiguous patented claims numbered: Loc. No. l, Loc. No. 2, BJ 122, BJ 123 and TB 3719, was purchased by Trio Mining Exploration Limited. In 1969 the property was apparently held by G. W. Phelps, and in 1973 the Ontario Charter of Trio Mining Exploration Limited was dissolved. The Property remained in good standing until December 31, 1979 (Carter, 1988).
1980: Autotrac Limited acquired all of the Northshore patented and unpatented mining claims.
1988 to 1992: Noranda Exploration Company Ltd./Hemlo Gold Inc. optioned the Northshore property and carried out geophysical, geochemical, and geological surveying. Trenching and rock sampling were undertaken on old trenches and other exploration targets resulting in discovery of the ‘Afric’ Zone. Twenty diamond drill holes, totalling 2,494.6 m, were completed, mostly to delineate the mineral resources within the Afric Zone (Figure 6-1).
The 1990-91 diamond drilling results reported by Noranda are tabulated in Table 6-1. These results could not be verified by previous authors as the drill core was vandalized and the original Noranda assessment report was not currently available (Giroux and Blanchflower, 2014).
1995: Santa Fe Mining optioned the Property but terminated their Canadian operations before completing any work.
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Figure 6-1 Property Drill Hole Plan 1980 to 2011 (from Giroux and Blanchflower, 2014)
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Table 6-1 Noranda Exploration 1990-91 Diamond Drilling Results (from Blanchflower, 2012)
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6.1.2 1997 Exploration - Cyprus Canada Inc.
Cyprus Canada Inc. conducted an exploration program on the Northshore property that included: establishing a widely-spaced survey control grid; geophysical surveying (IP, VLF-EM and magnetics); humus geochemical surveying (773 samples); geological mapping and prospecting. Power stripping and rock geochemical sampling programs (977 samples) focused on extending the Afric Zone to the west and east. Diamond drilling, 7 holes totalling 1,131.3 metres (571 core samples), was carried out during early August to early September, 1997 to extend the Afric Zone westward and to test the Northshore vein.
Figure 6-2 Survey Control Grids established by Noranda Exploration/Hemlo Gold and Cyprus Canada (from Blanchflower, 2012)
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Survey Grids
A total of three main chain saw cut and chained survey grids are present on the Northshore project properties. These include a pre-existing survey grid each on the Autotrac Inc. (Noranda Grid) and Christianson (Christianson Grid) claim groups and a third wide-spaced grid (300-400m line spacing) cut over the balance of the Christianson Grid by Cyprus Canada, 1997 (Cyprus Grid). In addition, the original Noranda baseline and grid was extended to the east by 700m on the Autotrac claim group. This portion of the Noranda grid is known as the Noranda East Extension. An additional small grid on claims 1209219 and 1209220 was called the Christianson East Grid.
Geological Mapping and Prospecting
1:2500 scale geological mapping, prospecting and rock sampling was carried out on grid lines and access roads to assess the lithological, alteration, structural, veining, and sulphide mineralization characteristics of the country rocks on the Northshore Project claims.
The primary focus of the grid mapping and prospecting program was to screen and assess the potential for the occurrence of bulk mineable Afric Zone-style or lode gold-style mineralization in other areas of the property besides the main Noranda grid. In addition to gold analyses, multi-element ICP scan for base metals and pathfinder elements was conducted on all 464 rock samples taken. The mapping and prospecting program was initially guided in part by the existing integrated database generated by Noranda/Hemlo Gold and involved remapping within the immediate confines of the pre-existing Noranda grid. New areas of interest for geological follow-up on the Christiansen, Cyprus and Noranda East Extension grids were in part generated by induced polarization geophysics and humus sampling carried out by Cyprus Canada Inc. in 1997.
Rock Sample Results
A total of 464 rock samples were taken during mapping of the Northshore Project claims. Several new pyritic and weakly auriferous zones were identified on the periphery of the main Noranda grid and Noranda East Extension grid. These include:
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Lake Superior Shoreline occurrences @ L4+25E, 3+00S (Na.G.) and on the west shore and southern tip of the Worthington Bay shoreline area (no grid reference). These occur as significant pyrite accumulations with massive pods and pyrite stringers/veinlets in fuchsitic and sericitic felsic to intermediate metavolcanics. They may represent barren extensions of Afric Zone mineralization.
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Noranda East Extension grid @ L13+00E, 3+00S (1,530 ppb Au). Occur as weak (1-2%) pyrite accumulations in massive to weakly foliated hornblende-phyric syenite with quartz stringer veining.
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A wide (35m) pyritic breccia zone @ L5+75E, BL (Na.Ext.) with low gold values and along strike from narrow pyritic galena-rich veining in fuchsitic, brecciated and sheared sericitic felsic volcanics @ L5+50E on Worthington Bay Shoreline area. These assayed high in silver and base metal values with low gold values, but were of limited lateral extent.
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Hematitic sericitic and pyritic felsic - intermediate tuffaceous metavolcanics to feldspar porphyry @ L7+00W, 0+75S (Na.G.) and L5+30W, 1+80S (Na.G.) exhibited elevated gold values to 500 ppb Au.
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A high value of 15.7 g/t Au (494245) in a grab sample was obtained from a narrow pyritic quartz stringer in sericitic felsic volcanic @ L6+40W, 1+90S (Na.G.) (a previous Noranda/Hemlo Gold occurrence). Rock sample assay results in the portions of the Northshore Project claims outside the main Noranda grid area and east extension, yielded generally low gold values.
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Geochemistry Survey - Humus
In order to screen large-scale potential gold target areas, a total of 773 humus samples were collected at 25m sample intervals on wide-spaced (200m - 400m) survey lines over the Northshore Project claims.
Statistical background humus values on the Northshore Project claims were below the analytical detection limit of 1 ppb Au. Several spot anomalies exhibiting up to 360 ppb Au were identified and contoured.
Although follow-up prospecting and rock sampling of these areas failed to explain humus gold anomalies in rock, the highest humus anomaly (360 ppb Au) was located at a weakly pyritic northsouth contact between Northshore syenite and mafic volcanic rocks. This particular anomaly was drilled by DDH 501097-3 with negative results.
Geophysical Survey
Geophysical surveying provided a basis for geological mapping and prospecting activities on the Northshore Project. A phase-domain induced polarization survey and a combined magnetic/VLF-EM survey was carried out on the Northshore Project claims from July 2 to 18, 1997. A total of 18.9 line-km of IP survey and 19.1 line-km of magnetic and VLF-EM survey were executed on the properties.
The surveys were executed along wide-spaced selected lines of all four (4) grids on the Northshore Project claims at 25m station spacing. The survey was conducted by Val D'or Sagax Inc. geophysical contractors (Val D'or Sagax Inc., September 1997).
Power Stripping. Washing and Sampling
A series of selected outcrop areas were power stripped, washed, mapped and rock sampled. A total of 513 rock samples were taken. The two-fold focus of the power stripping program was to expose and sample Afric Zone mineralization on surface in the area of previous drilling by Noranda/Hemlo Gold Inc. and to extend the area of known Afric Zone mineralization to the west and east. In addition, two old Noranda trenches (NST-9 and NST 6, 6A, 6B) were resampled by Cyprus during the present program.
Diamond Drilling
Diamond drilling was performed using a Hydracore drill rig during the period August 8 to September 5, 1997. Diamond drilling operations were carried out by Kluane Drilling of Whitehorse, Yukon. A total of 1,131.3m of BTW (‘B-Thinwall’) diamond drilling in seven holes (Figure 6-1) was conducted by Cyprus during the 1997 program. A total of 571 rock samples were derived from the drilling program. The primary target for this drilling was to identify a potential bulk tonnage, low grade gold target containing an initial drillindicated resource of two million tons grading 2.2 g Au/ton.
The drilling results reportedly did not fulfill Cyprus’s goal of a large tonnage, low grade gold deposit and they later terminated their property option (Table 6-2).
The results of the 1997 exploration work did indicate the following:
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The Afric Zone is characterized by an alteration and mineralization assemblage as follows: pervasive Fe-carbonate, sericite, potassium and one to two percent pyrite with a local, confined silicification, chloritization and an increase in pyrite.
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Afric Zone style mineralization is restricted to a syenite body, mostly within feldspar to quartz feldspar porphyritic phase/alteration.
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Within the Afric Zone background gold is in the 50 to 300 ppb range, local increases to 2,000 ppb are common with increased pyrite and silica; within quartz veining, visible gold and significantly higher assays occur.
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The overall orientation of the Afric Zone is azimuth 110[o] to 130[o] ; the enclosed quartz veins have an orientation of azimuth 030[o] to 060[o] and dip steeply west.
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The quartz veins have limited dimensions as they are confined to the Afric Zone and don't extend into the surrounding host, lengths of metres with widths of one to five centimetres. A few larger veins, 0.5 X 30 to 75 metres, have been mapped on surface. These systems have strong pyritic, silicified halos with vein stockworks and visible gold; multi-ounce assays are common.
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The Afric Zone has been traced in drilling and outcrop for a strike length of 400 metres, widths range from 20 to 60 metres and grades range from 300 ppb to 3.5 g/t over these widths.
Table 6-2 Cyprus Canada 1997 Diamond Drilling Results (from Blanchflower, 2012)
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Based upon their 1997 exploration results Cyprus concluded that the property had limited potential for hosting a large tonnage, open pittable gold deposit but did identify numerous showings within the Property (Figure 6-3) with good gold indications. Six of these target zones are described as follows:
No. 3 Zone - This zone was stripped and sampled and returned 19.9 g/t (Au) over 5.0 metres on surface. Hemlo drilled 1 hole, Nr-4, beneath the surface showing which assayed 1.8 (g/t Au) over 6.1 m in a larger zone of alteration and mineralization. This zone has not been followed up to the east or west and is open in both directions. A grab sample 300 metres to the west assayed 16.8 g/t (Au).
Afric Zone - This zone was discovered by Noranda and has been stripped, sampled and drilled in the main discovery zone for a strike length of 400 metres. As described above, the Cyprus program to extend the zone to the west was unsuccessful; however, the Cyprus hole to the east was successful in confirming the orientation of the zone and extending the mineralization to the east. Nine holes that have intercepted the zone have averaged 1.35 g/t (Au) over an average width of 44.6 metres. The zone remains open to the
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east and down plunge. Potential exists for an additional 550 metres of strike length before reaching Lake Superior. The Afric zone contains high-grade quartz veins cutting across the alteration and mineralization, these veins have not been intersected in most of the drill holes due to their orientation and have not been evaluated for their high-grade low tonnage potential. These veins were stripped during the Cyprus exploration program.
No. 2 Zone - This zone splays off the Afric Zone and is seen in trenches and drill hole Nr-5, which intersected 1.5 g/t (Au) over 19.8 metres. No attempt has been made to extend this zone to the east, although a road and the end of a trench 120 metres to the east did not appear to locate the zone.
No. 5 Zone - This zone crosscuts the Afric Zone where the Afric has the best grade X width values. The zone is seen in a number of trenches and 2 drill holes, Nr-18, 9, over a strike length of 400 metres and is open in both directions. Trenching returned values as high as 137 g/t (Au) over 1 metre. Drilling failed to confirm this narrow high grade but did return favourable values, including 6.0 g/t (Au) over 4.1 metres in hole 9. An ancillary zone splays off the 5 Zone parallel to the Afric, 175 metres north of the Afric. Neither of these zones has received extensive exploration and both are open in all directions, with anomalous grab samples indicating the potential for extending the mineralization.
No. 4 Zone - This zone is parallel to the 5 Zone and was discovered by Hemlo while opening a historic trench. Sampling returned values to 7.5 g/t (Au) over 5 metres. Drilling failed to substantiate the surface sampling. The orientation of the zone is unknown and the zone remains unexplored for either orientation or extension.
Northshore Zone - This is the original discovery vein on the property and has not been explored since the 1930's. Cyprus attempted 1 hole, 97-6, on the zone, but the hole intersected diabase dike where the zone was expected.
Figure 6-3 1997 Exploration Targets Identified by Cyprus Canada Inc. (from Blanchflower, 2012)
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6.1.3 1999 to 2005 Exploration - International Taurus Resources Inc.
International Taurus Resources Inc. acquired an option to purchase 100% of the patented Northshore property from Autotrac Limited, including the surface rights. The terms of agreement included a cash down payment to acquire the option, plus two additional payments one year and two years later to complete the purchase. Autotrac Limited retained a 2% Net Smelter Return royalty for the first one million ounces produced from the property, then 3% for the next two millions ounces produced, and finally 5% for all production in excess of 3 million ounces. In March 2005, International Taurus Inc. joined American Bonanza Golding Corp. becoming American Bonanza Gold Corp.
6.1.4 2005 to 2008 Exploration - American Bonanza Gold Corp.
American Bonanza Gold Corp. drilled eleven diamond drill holes (NS 06-01 to -11), totalling 3,163 m, in 2006, and nine diamond drill holes (NS 07-01 to -09), totalling 1,367 m, in 2007. These holes were collared to test the gold-bearing mineralization of the Afric Zone. Most of the holes were oriented at azimuths of 012[o] to 019[o] ; oriented to intersect the reported 110[o] to 130[o] trend of the Afric Zone. The drilling results confirmed the location and tenor of known mineralized zones which were identified and tested by Cyprus (Table 6-3). Also, the overburden was found to range from 2 to 3 m thick, indicating that trenching could be considered to expose the mineralization.
American Bonanza Gold Corp. excavated six trenches on their ‘No. 3’ Zone and did some overburden stripping on their ‘No. 5’ southern extension zone. This trenching work was carried out in November and early December 2007 but the trenches were not mapped or sampled due to a heavy snow fall. Such work was proposed for 2008 but there is no reports of such work being carried out (Giroux and Blanchflower, 2014).
In 2008, two American Bonanza Gold Corp. personnel prospected and sampled the eastern and southern portions of the non-contiguous mining claim 4211126. No significant results were reported but their work only covered the extreme northern, southern and eastern portions of the claim.
2010 to 2011: American Bonanza Gold Corp. transferred 100% of their interest in the Property to Balmoral Resources Ltd. on January 26, 2011. No reported exploration work was carried out by Balmoral until the option agreement with GTA Resources and Mining Inc. (now GTA Financecorp Inc.) in July 2011.
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Table 6-3 American Bonanza 2006-08 Diamond Drilling Results (from Blanchflower, 2012)
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6.1.5 2011 Exploration – GTA Resources and Mining Inc.
GTA carried out surface sampling of the exposed Audney, Caly and Caly North gold-bearing veins within the Afric Zone during September 2011 and later completed twelve NQ-size diamond drill holes, totalling 1,038.0 m, during the latter half of October 2011 (October 17 to 30, 2011). Cobra Drilling Ltd. of Thunder Bay, Ontario was contracted to provide an Atlas Copco P4 Hydraulic drilling rig, support equipment and field personnel to complete the drilling contract.
Seventy-three chip and channel samples were collected in late September 2011 along the exposed lengths of the Audney, Caly and Caly North veins. The vein samples were collected across the true widths of the Audney, Caly and Caly North veins, placed in 6-mil plastic bags which were properly labelled and sealed after a unique sample assay tag had been placed in each bag. The samples were described in detail on site and then transported to the GTA field office in Schreiber for storage until their shipping via Greyhound Bus Parcel Express to the sample preparation and analytical facilities of Accurassay Laboratories in Thunder Bay, Ontario. There they were prepared and analysed for their gold content.The results of the 2011 surface rock sampling work indicated:
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The higher grade quartz and quartz-carbonate veins, such as the Audney, Caly and Caly North veins, trend east-northeasterly across the previously reported trend of the Afric Zone;
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Many of the previous drill holes were collared and oriented to intersect the general westnorthwesterly trend of the Afric Zone and, thus, were commonly drilled sub-parallel or parallel to the higher grade lode vein structures, and;
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There are multiple narrow, gold-bearing veins and veinlets hosted by the well-altered, fractured and pyritized intrusive rocks within the Afric Zone that were not tested by any previous drilling.
The locations and analytical results of the 2011 surface sampling along the Audney, Caly and Caly North veins within the Afric Zone are shown on Figure 6-4 and Figure 6-5.
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Figure 6-4 Chip Sampling Results, Audney Vein Structure (from Blanchflower, 2012)
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Figure 6-5 Chip Sampling Results, Caly and Caly North Vein Structures (from Blanchflower, 2012)
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The 2011 Phase 1 diamond drilling program focused on evaluating the three sampled vein structures where surface rock samples had returned significant to high gold values. The drill core logging and sampling work was carried out at GTA’s field office/warehouse facility in Schreiber, Ontario where the drill core is currently being stored.
Table 6-4 summarizes the significant mineralized intercepts identified during the 2011 drilling program and reported by GTA in a February 14, 2012 press release (see news release under GTA’s profile). Figure 6-6 and Figure 6-7 illustrates the locations and orientations of the 2011 drill holes and Figure 6-8 to Figure 6-9 are four drill cross-sections showing the intersected geology and gold-bearing mineralization, Afric Zone.
Figure 6-6 GTA Resources 2011 Drill Hole Plan (from Blanchflower, 2012)
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Table 6-4 GTA Resources 2011 Diamond Drilling Results (from Blanchflower, 2012)
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Figure 6-7 GTA Resources 2011 Drill Hole Plan, Afric Zone (from Blanchflower, 2012)
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Figure 6-8 Drill Sections A-A’ and B-B’, 2011 Drill Program (see Figure 6-7 above for location of sections) (from Blanchflower, 2012)
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Figure 6-9 Drill Sections C-C’ and D-D’, 2011 Drill Program (see Figure 6-7 above for location of sections) (from Blanchflower, 2012)
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6.1.6 2012 Exploration Work - GTA Resources and Mining Inc.
In 2012 GTA carried out two phases of diamond drilling (i.e. Phases ‘2’ and ‘3’), totalling 7,188 metres (Table 6-5 and Table 6-6), with drill hole surveying, and property-wide prospecting and detailed geological mapping (Giroux and Blanchflower, 2014).
After the completion of the second phase of diamond drilling, GTA contracted two prospectors employed by Stares Contracting to locate and sample the historic trenches excavated by Noranda Exploration Company Ltd., Cyprus Canada Inc. and American Bonanza Gold Corp. plus sample the mineralized trend known as ‘Zone No. 3’. This work was carried out from May 16[th] to 31[st] and focused on identifying increased disseminated sulphide contents within silicified stockwork host rocks where fine-grained tourmaline is present. In addition, the prospecting surveyed and mapped any historic physical features, such as cut gridlines, drill hole collars, adits and shafts, using GPS instrumentation.
During the prospecting work, seventy-five rock samples were collected and the results of this work were documented for later reference. Eight rock samples returned gold grades in excess of 1.0 g/t with one sample (E5442606), from a 0.5-cm wide quartz-carbonate-sulphide vein situated near the portal of the Eastern Adit, returning grades of 6.82 and 6.26 g/t gold.
Following the prospecting work GTA contracted geologists employed by Clark Exploration, assisted by two Pays Plat First Nation personnel, to carry out property-wide 1:1000-scale geological mapping during the summer field season. This work focused on: delineating the surface mineralization and identifying the sulphide contents of the various Afric intrusive rocks, mapping the attitude of the barren diabase dyke set, and detailed mapping and sampling of historic trenches and stripped outcrop areas.
A total of 42 rock samples were collected during the 2012 geological mapping and sampling program. Nine of the rock samples returned grades in excess of 1.0 g/t gold, and one grab sample reportedly collected from the Western Adit muck pile has visible gold in a quartz-chlorite-fuchsite vein.
On July 10, 2012 various government and local agencies carried out a field inspection of various historic mine workings within the Property. Based upon recommendations from this inspection, GTA contracted the backfilling of the Northshore No. 4 shaft located alongside the Casque Iles section of the Voyageur hiking trail. The open shaft was approximately 12 m deep and represented a public safety hazard. This recommended work was completed in late October under the direct supervision of Mr. Paul Brugger, P.Eng, of P.J. Brugger and Associates, from Neebing Ontario.
Phase 2 Diamond Drilling Program
A second phase of diamond drilling on the Property was carried out from March 21 to June 7, 2012. GTA contracted Norex Drilling of Timmins, Ontario for the NQ-size core drilling. The drill core logging was undertaken by R. Duess, V.P. Exploration for GTA, and Jeff Myllyaho, a consulting geologist based in Thunder Bay Ontario. Eight diamond drill holes, designated WB-12-13 to WB-12-20, were completed totalling 2,431 metres (Table 6-5). The focus of this drilling was to test the continuity of the Afric Zone and its higher grade veins.
The significant mineralized intercepts identified during the Phase 2 diamond drilling program are presented in Table 6-7. The drill core from the Phase 2 drilling program was processed and is stored at GTA’s field office and core storage facilities in Schreiber, Ontario. GTA personnel split, documented and shipped 2,578 core samples directly to AGAT Laboratories in Sudbury, Ontario for gold fire assays.
All holes intersected widespread sections of quartz, carbonate, pyrite, tourmaline, sericite, (and localized potassic) altered felsic to intermediate intrusive and high level intrusive (porphyritic) rocks. Termed the ‘Afric Zone’, these rocks are structurally deformed exhibiting brittle deformation and fracturing and host quartz and quartz carbonate veins, veinlets, stringers and fracture infillings. These fracture infillings are
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mineralized with pyrite and with minor to trace amounts of chalcopyrite, sphalerite, galena, and molybdenite. Multiple occurrences of visible gold were observed in drill core from each of the holes.”
It appears that the Afric Zone is hosted within a large felsic intrusive – porphyry system termed the Afric Intrusive Complex. Holes WB-12-19 and WB-12-20 (both drilled at -50° in a southeasterly direction) are the most westerly and easterly (respectively) holes drilled by GTA. Significant widespread gold mineralization encountered in these holes suggests that the gold mineralization of the “Afric Zone” spans a distance of at least 275 metres in an east-west direction. Results from drill hole WB-12-18 demonstrates that the Afric Zone gold mineralization extends to a depth of over 300 metres vertically below surface.
Table 6-5 Phase 2 Diamond Drilling Information (from Giroux and Blanchflower, 2014)
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Table 6-6 Phase 3 Diamond Drilling Information (from Giroux and Blanchflower, 2014)
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Table 6-7 Significant Mineralized Intercepts from the 2012 Phase 2 Diamond Drilling Program (from Giroux and Blanchflower, 2014)
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Phase 3 Diamond Drilling Program
The 2012 Phase 3 diamond drilling program began on August 13th and was completed on October 2nd, and was contracted by Norex Drilling Limited of Timmins, Ontario. Sixteen NQ-size drill holes were competed during this program totalling 4,755 metres (Table 6-6). As with the Phase 2 drill program, the drill core was processed at GTA’s field office and core storage facilities in Schreiber, Ontario, and consulting geologists, employed by Clark Exploration based in Thunder Bay, Ontario, logged the core.
The significant mineralized intercepts identified during the Phase 3 diamond drilling program are presented in Table 6-8. A total of 5,365 drill core samples were split, documented and shipped directly to AGAT Laboratories in Sudbury, Ontario for gold fire assays.
All holes intersected wide sections of gold mineralization associated with pyritic, tourmaline, and sericitic altered felsic porphyritic rocks (the Afric Intrusive Complex). These rocks are structurally deformed resulting in a variety of fracturing and brecciation which host quartz and quartz carbonate veins and stringers. The quartz rich veins and fracture infillings are mineralized with pyrite, and lesser amounts of sphalerite, galena and telluride. Visible gold has been recognized in most of the holes and the high grade sections are often associated with these occurrences.
Drill holes WB-12-21 to WB-12-25 were drilled to test the northeast extension of the Audney Vein and the broader Afric Zone and holes WB-12-26 and WB-12-27 were drilled to test the southwest extensions. The highest assays of these first 7 holes included 47.2 g/t Au and 31.6 g/t Au (each over a core length of 0.5 metres) from holes WB-12-26 and WB-12-27 respectively. Both these high grade values were returned from a quartz vein mineralized with several specks of visible gold, and interpreted to be the faulted southwest extension of the high grade Audney Vein (See GTA news release dated November 21, 2012, posted on SEDAR).
Holes WB-12-32 and WB-12-33, the deepest holes ever drilled on the Northshore property, were drilled to undercut the main Afric Zone at depth, and both holes intersected significant gold values. The intersection in WB-12-33 of 1.37 g/t Au over 68.0 meters (including 12.16 g/t over 4.0 meters) represents one of the deepest gold intersections ever encountered on the property, at approximately 390 metres vertically below surface. Furthermore, hole WB-12-33 was stopped at 563 m and ended in gold mineralization (0.7 g/t Au over 7.0m from 557 m to 563 m). These results clearly indicate that gold mineralization on the Northshore Property remains open at depth (see GTA news release dated January 8, 2013, posted on SEDAR).
Holes WB-12-29, WB-12-30 and WB-12-35 were drilled to further evaluate the northeast extension of the Afric Zone and all three holes encountered significant gold mineralization. An average grade of 1.95 g/t Au over 44.5 meters (including 9.78 g/t over 5.0 metres) in hole WB-12-29 occurs at approximately 200 metres vertically below surface, and 1.06 g/t Au over 16 meters in WB-12-35 at approximately 330 metres vertically below surface. These deeper intersections are in an area of very limited drilling and gold mineralization is open up dip, at depth, and along strike (see GTA news release dated January 8, 2013, posted on SEDAR).
Between the Phase 1 drilling in 2011 and the two phases of drilling in 2012 GTA had completed 35 drill holes, totalling 8,224 m, within an area of 450 by 350 metres. The results indicated that the gold mineralization is hosted by, and perhaps genetically related to, a larger intrusive suite. Furthermore, the Property had the potential for hosting both a bulk tonnage deposit and discrete higher grade lode gold zones (Giroux and Blanchflower, 2014).
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Table 6-8 Significant Mineralized Intercepts from the 2012 Phase 3 Diamond Drilling Program (from Giroux and Blanchflower, 2014)
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6.1.7 2013 Exploration Work - GTA Resources and Mining Inc.
GTA carried out two additional phases of diamond drilling (i.e. Phases ‘4’ and ‘5’) in 2013 (Table 6-9 and Table 6-10), and collected and submitted ten large surface grab samples for metallurgical testing.
Ten large surface grab samples of quartz vein material were collected along the exposed portion of the Audney vein structure. These ten samples, collectively weighing 57.3 kg, were shipped to ALS Metallurgical in Kamloops, British Columbia. It was intended that these samples would be used for preliminary metallurgical testing. The assayed ‘head’ grades of these samples reportedly ranged from 47 to 716 g/t gold with a weighted average grade of 230 g/t gold. Given the high gold grades of these samples it was decided that they were not representative of the majority of the local mineralization so no further metallurgical work was undertaken.
The Phase 4 diamond drilling program was carried out between March and May, spanning the spring breakup period. Twelve drill holes, designated WB-13-36 to WB-13-47, were completed totalling 2,313 m of NQ size diamond drilling (Table 6-9). During late October GTA completed an additional 5 diamond drill holes during their Phase 5 drilling program. The Phase 5 drill holes, designated WB-13-48 to WB-13-52, totalled 853 m of NQ size diamond drilling (Figure 6-10). The details and results of these drilling campaigns will be documented in the following ‘Drilling’ section of this report.
Table 6-9 Phase 4 Diamond Drilling Information (from Giroux and Blanchflower, 2014)
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Table 6-10 Phase 5 Diamond Drilling Information (from Giroux and Blanchflower, 2014)
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Figure 6-10 Drill Hole Plan of the Northshore Property showing the Location of 2013 Drilling and Rough Mineralized Outline (from Giroux and Blanchflower, 2014)
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Phase 4 Diamond Drilling Program
The focus of the Phase 4 drilling program was to continue testing and expanding the Afric Zone and its eastern and northeastern extensions. Diamond drilling began on March 21[st] and was completed on June 7[th] , spanning Spring break-up in May 2013. Norex Drilling of Timmins Ontario was contracted to carry out the NQ-size core drilling, and the drill core logging was undertaken by R. Duess, V.P. Exploration for GTA, or by Jeff Myllyaho, a consulting geologist based in Thunder Bay Ontario. Twelve drill holes, totalling 2,313 m, were completed during the Phase 4 drilling program (Table 6-9).
The significant mineralized intercepts identified during the Phase 4 diamond drilling program are presented in Table 6-11.
Approximately 92 percent of the Phase 4 drill core, representing 2116.7 m, was split and sampled from which 1,552 samples were collected. As before, this drill core was processed and is stored at GTA’s field office and core storage facilities in Schreiber, Ontario. All of the core samples were shipped directly to AGAT Laboratories, either in Sudbury or Thunder Bay Ontario, for gold fire assays.
The Phase 4 diamond drilling program successfully tested the easterly and northeasterly mineral trends to the Afric Zone, called the ‘East Extension’ and ‘Northeast Extension’ respectively. These trends are characterized as wide lower grade zones containing higher grade zones over narrower widths. The Phase 4 drill holes intersected significant gold mineralization hosted within altered felsic porphyritic and intrusive rocks with multiple occurrences of visible gold mineralization in all holes (Giroux and Blanchflower, 2014).
Initial drilling within the East Extension “include intersections of 2.50 g/t (grams per tonne) gold over 13.0 metres (m) (within a wider zone of 1.4 g/t over 43.5 m) in hole WB-13-37 and 12.28 g/t gold over 2.0 m (within a zone of 1.47 g/t over 70.0 m) in hole WB-13-38. These holes, drilled approximately 50 metres and 100 metres respectively below a previously drilled shallow intersection of 1.51 g/t gold over 50.8 m (hole WB-12-29) help confirm the strike continuity of the East Extension for a distance of 170 metres from the Central Afric Zone. Hole WB-13-36 was drilled 70 metres further east from the above described section and intersected anomalous gold (0.66 g/t gold over 10.0 m) at the interpreted East Extension trend location (see GTA news release dated May 9, 2013, posted on SEDAR).
Drill holes WB-13-39 and 40 tested the Northeast Extension, approximately 130 m northeast of the central Afric Zone. Drill hole WB-13-39 intersected 4.77 g/t gold over drilled length of 8.0 m within a wider zone of 1.35 g/t over a drilling length of 34.2 m. Drill hole WB-13-40 tested the zone 50 m downdip and it intersected 7.97 g/t over a core length of 1.5 m within a drilling length of 49.0-metre that assaying 0.53 g/t gold (see GTA news release dated May 9, 2013, posted on SEDAR).
Following resumption of Phase 4 drilling after the Spring breakup, GTA announced that drilling had identified a western extension of the Afric Zone, called the ‘Pup’ Extension. Drill hole WB-13-44 within this western extension returned 0.66 g/t gold over a core interval of 196.5 m, including a higher grade section of 3.14 g/t gold over a core length of 13.0 m. Hole WB-13-43 that tested the same section and 40 m up dip returned 178.0 g/t gold over a drilling length of 1.0 m from a quartz vein (see GTA news release dated May 28, 2013, posted on SEDAR). GTA interpreted this higher grade gold mineralization as a faulted extension of the Audney Vein.
Other Phase 4 drill holes, WB-13-41 and 42 tested the East and Northeast Extensions respectively. WB 13- 41 intersected 8.56 g/t gold over a core length of 1.5 m within a wider zone of 0.51 g/t gold over a drilling length of 102.0 m. Drill hole WB-13-42 intersected 1.45 g/t gold over a core length of 6.0 m (see GTA news release dated May 28, 2013, posted on SEDAR).
Drill hole WB-13-45 returned 4.07 g/t gold over a core length of 1.5 m from the Pup Extension. Drill hole WB-13-46 intersected 0.59 g/t gold over a drilling length of 63.0 m, including 7.45 g/t gold over a core length of 1.5 m., from a drilling length of 137.0 to the end of the hole at 200.0 m within the Northeast Extension. The last drill hole of the drilling campaign, WB-13-47, intersected a new gold-bearing vein structure, called
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the ‘Gino’ vein, that returned an average grade of 5.23 g/t gold over a drilling length of 6.0 m at a vertical depth of less than 15 m, including 19.20 g/t gold over a core length of 1.5 metres. Another quartz vein intersected in the same hole at a greater depth returned 8.85 g/t gold over a core length of 1.00 metre (see GTA news release dated July 18, 2013, posted on SEDAR). These higher grade gold intercepts are located in an area of sparse drill testing 250 m north of the Afric Gold Zone and 100 m south the underground workings of the former producing Northshore mine.
Upon completion of the Phase 4 drilling GTA had completed 47 drill holes totalling 10,537 m in four individual drilling campaigns. This drilling had focused on the Afric Zone which had at the time been tested over an area of 500 by 350 metres and to a vertical depth of 350 metres. It remained open for extension to depth and to the northeast.
Table 6-11 Significant Mineralized Intercepts from the 2013 Phase 4 Diamond Drilling Program (from Giroux and Blanchflower, 2014)
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Phase 5 Diamond Drilling Program
The Phase 5 diamond drilling program focus was to provide fill-in drilling information to better understand the relationship between the bulk tonnage gold potential and higher grade vein structures within the Afric Zone. Two holes were also planned to expand on the newly discovered Gino vein structure.
The Phase 5 drilling program was completed in late October 2013, and consisted of five holes totalling 853 metres (Table 6-10). The first three drill holes, WB-13-48, -49 and -50, tested the newly discovered Gino vein structure and the last two drill holes, WB-13-51 and -52 tested the Afric Gold Zone.
The significant mineralized intercepts identified during the Phase 4 diamond drilling program are presented in Table 6-12.
The first three holes of the program were drilled to further evaluate the recently identified Gino Vein (see GTA news release dated July 18, 2013, posted on SEDAR). All three drill holes WB-13-48, WB-13-49 and WB-13-50 intersected the steeply dipping, east-west trending quartz-carbonate Gino vein structure. Significant mineralized intercepts included: 46.4 g/t gold over a core length of 1.0 m in drill hole WB-13-48, 41.6 g/t gold over core length of 1.0 m in drill hole WB-13-49, and 6.38 g/t gold over a core length of 2.0 m in drill hole WB-13-50. All of these intercepts occur at vertical depths of less than 125 metres (see GTA news release dated Dec 10, 2013, posted on SEDAR).
Drill holes WB-13-51 and -52 continued testing the Afric Zone. Drill hole WB-13-51 intersected a higher grade interval of 9.47 g/t gold over a core length of 9.0 metres within a 201-metre wide zone of anomalous gold returning a length-weighted average grade of 0.73 g/t gold. Drill hole WB-13-52 intersected a 192metre section of the Afric Zone that returned a length-weighted average grade of 0.54 g/t gold (see GTA news release dated Dec 10, 2013, posted on SEDAR).
Table 6-12 Significant Mineralized Intercepts from the 2013 Phase 5 Diamond Drilling Program (from Giroux and Blanchflower, 2014)
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6.1.8 Discussion of the 2012 and 2013 Diamond Drilling Results
Since optioning the Property in July 2011, GTA has completed 52 diamond drill holes, totalling 11,390 metres of NQ-size core drilling. This drilling has been largely focused on testing the gold mineralization within the Afric Zone. Current drilling results show that this zone underlies an area measuring at least 500 by 350 metres and the gold-bearing mineralization has been shown to extend vertically to a depth of 350 metres beneath the surface. The Afric Zone remains open for expansion both at depth and to the northeast. In addition, the newly discovered Gino vein structure hosting significant gold-bearing mineralization and situated 250 m north of the Afric Zone represents an excellent exploration target that remains open for expansion both laterally and downdip (Giroux and Blanchflower, 2014).
6.1.9 2016 Exploration Work - GTA Resources and Mining Inc.
During 2016, GTA completed two phases of drilling. A total of 51 (NQ size) holes (1,463 m) were completed (Table 6-13). Drilling focused on delineation and expansion of the near surface, higher grade mineralization of the Afric Zone, specifically the previously identified Caly and Audney vein systems (Figure 6-11). Most of the drilling (49 holes) consisted of a series of short holes (11 to 41 m) targeted to fill-in the gaps on both the Caly and Audney systems. The collars of all drill holes were surveyed by TBT Engineering of Thunder Bay Ontario.
Phase 1 consisted of 36 (NQ size) shallow holes (between 11 and 41 metres) totaling 866 metres. Two series of holes were drilled; the “A” series holes, (17 holes totaling 512 metres over a strike length of 60 meters) to test the Caly vein system, and the “D” series holes (19 holes totaling 354 metres over a strike length of 100 meters) to test the Audney vein system. Drilling continues to intersect very high grade (> 1 oz/ton), near surface, gold mineralization (including 139.00 g/t gold over 1.20 metres, 72.40 g/t gold over 1.0 metre and 39.3 g/t gold over 1.50 metres).
Additional highlights of the program, more fully detailed in Table 6-14 and Table 6-15, include (see Balmoral news release dated August 22, 2016, posted on SEDAR):
-
4.06 g/t gold over 23.00 metres, including 25.60 g/t gold over 3.0 metres in hole A-16-12
-
5.67 g/t gold over 10.40 metres, including 33.70 g/t gold over 1.40 metres in hole A-16-08
-
5.96 g/t gold over 9.0 metres, including 24.14 g/t gold over 2.00 metres in hole D-16-07
-
7.29 g/t gold over 5.40 metres, including 18.54 g/t gold over 2.00 metres in hole D-16-08
Note that the results of the Phase 1 program were reported to be in a news release posted by GTA on August 22, 2016, however no news release was found on GTA’s website or GTA’s SEDAR profile. Results for the Phase 1 drill program were reported in a news release dated August 22, 2016 posted under Balmorals SEDAR profile. As previously discussed, the Property at the time was a joint venture between Balmoral and GTA. GTA was the operator of the joint venture.
The Phase Two drilling program was designed to both expand in the near surface and more clearly define the outer margins of the Afric Gold Zone. It appears to have successfully extended the Zone in several areas. In addition, drilling continues to intersect high-grade, commonly visible gold bearing quartz vein hosted mineralization within the core of the broader zone. Results included drill intersections of 2.84 g/t Au over 14.5 m (including 27.90 g/t Au over 1.0 m) from hole A-16-20 and 2.82 g/t Au over 16.0 m (including 25.80 g/t Au over 1.0 m) from hole A-16-29 (Table 6-16).
Two holes were drilled during this phase of the program to determine the continuity of the Gino Vein system, initially discovered in 2013. The Gino Vein system is located north of the Afric Gold Zone and proximal to the former producing North Shore gold mine. Both holes appear to have successfully intersected the Gino
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Vein, with an intercept of 6.13 g/t gold over 1.00 metre in G-16-02 (Table 6-16) indicating the system remains open to the east and down-dip (see GTA news release dated Nov. 1, 2016, posted on SEDAR). Table 6-13 2016 Diamond Drilling Information
| Drill Hole | Northing | Easting | Elevation | Length(m) | Azimuth | Dip |
|---|---|---|---|---|---|---|
| A-16-01 | 479877.38 | 5401335.014 | 260.045 | 30.00 | 315 | -45 |
| A-16-02 | 479877.38 | 5401335.014 | 260.045 | 32.00 | 315 | -80 |
| A-16-03 | 479878.56 | 5401340.921 | 260.092 | 32.00 | 315 | -45 |
| A-16-04 | 479879.29 | 5401340.517 | 260.152 | 32.00 | 315 | -80 |
| A-16-05 | 479871.99 | 5401329.94 | 259.739 | 32.00 | 315 | -45 |
| A-16-06 | 479871.99 | 5401329.94 | 259.739 | 32.00 | 315 | -80 |
| A-16-07 | 479871.37 | 5401319.982 | 259.347 | 32.00 | 312 | -45 |
| A-16-08 | 479871.37 | 5401319.982 | 259.347 | 14.00 | 312 | -80 |
| A-16-09 | 479885.38 | 5401349.075 | 260.728 | 32.00 | 312 | -45 |
| A-16-10 | 479885.38 | 5401349.075 | 260.728 | 32.00 | 312 | -80 |
| A-16-11 | 479887.06 | 5401356.808 | 260.824 | 20.00 | 312 | -45 |
| A-16-12 | 479857.56 | 5401329.425 | 259.796 | 26.00 | 312 | -45 |
| A-16-13 | 479857.56 | 5401329.425 | 259.796 | 26.00 | 312 | -80 |
| A-16-14 | 479851.93 | 5401320.327 | 258.266 | 26.00 | 312 | -45 |
| A-16-15 | 479897.85 | 5401317.757 | 260.005 | 41.00 | 312 | -45 |
| A-16-16 | 479906.57 | 5401330.384 | 259.762 | 41.00 | 312 | -45 |
| A-16-17 | 479907.31 | 5401329.691 | 259.714 | 32.00 | 135 | -45 |
| A-16-18 | 479882.76 | 5401318.098 | 259.884 | 17.00 | 132 | -45 |
| A-16-19 | 479877.48 | 5401309.928 | 259.41 | 29.00 | 132 | -45 |
| A-16-20 | 479890.12 | 5401326.585 | 259.953 | 35.00 | 132 | -45 |
| A-16-21 | 479910.23 | 5401319.929 | 259.588 | 17.00 | 132 | -45 |
| A-16-22 | 479911.13 | 5401342.443 | 259.745 | 26.00 | 132 | -45 |
| A-16-23 | 479911.13 | 5401342.443 | 259.745 | 26.00 | 312 | -45 |
| A-16-24 | 479898.71 | 5401330.199 | 259.845 | 20.00 | 312 | -45 |
| A-16-25 | 479864.43 | 5401296.427 | 256.378 | 29.00 | 312 | -45 |
| A-16-26 | 479864.43 | 5401296.427 | 256.378 | 29.00 | 132 | -45 |
| A-16-27 | 479846.72 | 5401336.404 | 259.398 | 17.00 | 312 | -45 |
| A-16-28 | 479864.18 | 5401346.525 | 260.344 | 17.00 | 312 | -45 |
| A-16-29 | 479864.39 | 5401335.836 | 260.118 | 20.00 | 312 | -45 |
| D-16-01 | 479819.55 | 5401361.038 | 259.781 | 11.00 | 312 | -45 |
| D-16-01A | 479819.55 | 5401361.038 | 259.781 | 20.00 | 312 | -45 |
| D-16-02 | 479819.62 | 5401361 | 259.776 | 17.00 | 312 | -65 |
| D-16-02A | 479819.62 | 5401361 | 259.776 | 20.00 | 312 | -60 |
| D-16-03 | 479814.81 | 5401353.77 | 258.935 | 14.00 | 312 | -45 |
| D-16-04 | 479814.81 | 5401353.77 | 258.935 | 17.00 | 312 | -60 |
| D-16-05 | 479808.66 | 5401345.564 | 258.004 | 20.00 | 312 | -45 |
| D-16-06 | 479808.66 | 5401345.564 | 258.004 | 20.00 | 312 | -60 |
| D-16-07 | 479806.62 | 5401335.456 | 257.714 | 17.00 | 312 | -45 |
| D-16-08 | 479806.62 | 5401335.456 | 257.714 | 21.20 | 312 | -60 |
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| Drill Hole | Northing | Easting | Elevation | Length(m) | Azimuth | Dip |
|---|---|---|---|---|---|---|
| D-16-09 | 479825.29 | 5401369.214 | 260.628 | 17.00 | 312 | -45 |
| D-16-10 | 479825.29 | 5401369.214 | 260.628 | 23.00 | 312 | -60 |
| D-16-11 | 479831.54 | 5401377.947 | 261.891 | 17.00 | 312 | -45 |
| D-16-12 | 479831.54 | 5401377.947 | 261.891 | 20.00 | 312 | -60 |
| D-16-13 | 479837.82 | 5401385.958 | 262.447 | 14.00 | 312 | -45 |
| D-16-14 | 479837.82 | 5401385.958 | 262.447 | 23.00 | 312 | -60 |
| D-16-15 | 479842.38 | 5401395.05 | 263.184 | 20.00 | 312 | -45 |
| D-16-16 | 479800 | 5401325 | 257.5 | 20.00 | 312 | -45 |
| D-16-17 | 479800 | 5401325 | 257.5 | 23.00 | 312 | -60 |
| D-16-18 | 479779.43 | 5401332.78 | 247.432 | 29.00 | 132 | -45 |
| G-16-01 | 479907.87 | 5401690.91 | 316.071 | 137.00 | 330 | -45 |
| G-16-02 | 479981.45 | 5401672.886 | 317.495 | 149.00 | 30 | -45 |
| Total: | 1,463.20 |
Figure 6-11 Drill Hole Plan of the Northshore Property showing the Location of 2016 Drilling and Rough Mineralized Outline (see Figure 6-10)
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Table 6-14 Significant Mineralized Intercepts - 2016 A-Series holes targeting the Caly system (see Balmoral news release dated August 22, 2016, posted on SEDAR)
| Hole | Azimuth | Dip | From | To | Interval* | Gold** |
|---|---|---|---|---|---|---|
| Number | (metres) | (metres) | (metres) | (g/t) | ||
| A-16-01 | 315 | -45 | 5 | 26 | 21 | 2.79 |
| including | 5 | 12.5 | 7.5 | 5.16 | ||
| A-16-02 | 315 | -80 | 17 | 30.5 | 13.5 | 2.55 |
| including | 20 | 26 | 6 | 5.22 | ||
| which incl. |
20 | 21 | 1 | 25.7 | ||
| A-16-03 | 315 | -45 | 9.5 | 11 | 1.5 | 1.69 |
| A-16-04 | 315 | -80 | 26 | 32 | 6 | 0.93 |
| A-16-05 | 315 | -45 | 4 | 24.5 | 20.5 | 2.36 |
| including | 15.5 | 24.5 | 9 | 3.61 | ||
| A-16-06 | 315 | -80 | 3.5 | 18.5 | 15 | 1.15 |
| including | 12.5 | 18.5 | 6 | 1.92 | ||
| A-16-07 | 315 | -45 | 8 | 24.5 | 16.5 | 0.71 |
| A-16-08 | 315 | -80 | 0.6 | 5 | 4.4 | 12.81 |
| including | 0.6 | 2 | 1.4 | 33.7 | ||
| A-16-09 | 315 | -45 | 24.5 | 32 | 7.5 | 1.25 |
| including | 29 | 30.5 | 1.5 | 5.19 | ||
| A-16-10 | 315 | -80 | 3.5 | 6.5 | 3 | 2.11 |
| A-16-11 | 315 | -45 | 2.6 | 8 | 5.4 | 0.24 |
| A-16-12 | 315 | -45 | 3 | 26 | 23 | 4.06 |
| including | 3 | 17 | 14 | 0.91 | ||
| and | 17 | 20 | 3 | 25.6 | ||
| and | 20 | 26 | 6 | 0.66 | ||
| A-16-13 | 315 | -80 | 6.5 | 21.5 | 15 | 1.1 |
| including | 11 | 14 | 3 | 2.79 | ||
| A-16-14 | 315 | -45 | 4 | 26 | 22 | 0.23 |
| A-16-15 | 315 | -45 | 8 | 26.7 | 18.7 | 2.03 |
| including | 8 | 11 | 3 | 8.56 | ||
| A-16-16 | 315 | -45 | 5 | 30.5 | 25.5 | 1.43 |
| including | 11.6 | 18 | 6.4 | 2.33 | ||
| A-16-17 | 315 | -45 | 12.5 | 26 | 13.5 | 1.94 |
| including | 14 | 22 | 8 | 2.4 |
NSA – No significant assay results
- Widths as shown are over drilled core length, and do not represent true widths which remain undefined at the current time.
** Gold values are presented uncapped
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Table 6-15 Significant Mineralized Intercepts - 2016 D-Series holes targeting the Caly system (see Balmoral news release dated August 22, 2016, posted on SEDAR)
| Hole | Azimuth | Dip | From | To | Interval* | Gold** |
|---|---|---|---|---|---|---|
| Number | (Metres) | (Metres) | (Metres) | (g/t) | ||
| D-16-01 | 315 | -45 | re-drilled | as | D-16-1A | |
| D-16-02 | 315 | -60 | re-drilled | as | D-16-2A | |
| D-16-03 | 315 | -45 | 8 | 10 | 2 | 3.87 |
| D-16-04 | 315 | -60 | 13 | 14 | 1 | 5.58 |
| D-16-05 | 315 | -45 | 8 | 9.5 | 1.5 | 1.68 |
| D-16-06 | 315 | -60 | 10 | 18.2 | 8.2 | 3.54 |
| including | 10 | 12 | 2 | 9.4 | ||
| D-16-07 | 315 | -45 | 2.9 | 17 | 14.1 | 3.94 |
| including | 2.9 | 8 | 5.1 | 0.39 | ||
| and | 8 | 17 | 9 | 5.96 | ||
| including | 11.7 | 13.7 | 2 | 24.14 | ||
| and | 13.7 | 17 | 3.3 | 0.59 | ||
| D-16-08 | 315 | -60 | 14 | 19.4 | 5.4 | 7.29 |
| including | 17.4 | 19.4 | 2 | 18.54 | ||
| D-16-09 | 315 | -45 | 9.5 | 12.5 | 3 | 4.25 |
| D-16-10 | 315 | -60 | 16.5 | 20 | 3.5 | 9.76 |
| including | 16.5 | 17.5 | 1 | 30.9 | ||
| D-16-11 | 315 | -45 | 8 | 11 | 3 | 25.32 |
| including | 10 | 11 | 1 | 72.4 | ||
| D-16-12 | 315 | -60 | 8 | 16.2 | 8.2 | 1.79 |
| including | 15.2 | 16.2 | 1 | 8.45 | ||
| D-16-13 | 315 | -45 | 7.5 | 9.5 | 2 | 4.41 |
| D-16-14 | 315 | -60 | NSA | |||
| D-16-15 | 315 | -45 | NSA | |||
| D-16-16 | 315 | -45 | 8 | 17 | 9 | 23.73 |
| including | 15.8 | 17 | 1.2 | 139 | ||
| D-16-17 | 315 | -60 | NSA | |||
| D-16-1A | 315 | -45 | 11 | 12 | 1 | 1.62 |
| D-16-2A | 315 | -60 | 9.5 | 17.5 | 8 | 3.14 |
| including | 14.5 | 15.5 | 1 | 21.4 |
NSA – No significant assay results
- Widths as shown are over drilled core length, and do not represent true widths which remain undefined at the current time.
** Gold values are presented uncapped
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Table 6-16 Significant Mineralized Intercepts - 2016 Phase 2 Drill Holes (see GTA news release dated November 1, 2016, posted on SEDAR)
| Hole | From | To | Gold** | Over* | |
|---|---|---|---|---|---|
| Number | (Metres) | (Metres) | (g/t) | (Metres) | |
| A-16-18 | 1 | 17 | 0.18 | 16 | |
| A-16-19 | 26 | 27.5 | 1.3 | 1.5 | |
| A-16-20 | 3 | 24.5 | 2.24 | 21.5 | |
| incl. | 4 | 18.5 | 2.84 | 14.5 | |
| incl. | 5 | 6 | 27.9 | 1 | |
| A-16-21 | 3.5 | 14 | 0.34 | 10.5 | |
| incl. | 3.5 | 5 | 1.02 | 1.5 | |
| A-16-22 | 15.5 | 26 | 0.92 | 10.5 | |
| incl. | 23 | 26 | 2.47 | 3 | |
| A-16-23 | 6.5 | 12.5 | 0.89 | 6 | |
| incl. | 8 | 9.5 | 2.83 | 1.5 | |
| A-16-24 | 3 | 15.5 | 1.58 | 12.5 | |
| incl. | 3 | 5 | 3.17 | 2 | |
| and | 8 | 11 | 2.08 | 3 | |
| and | 14 | 15.5 | 2.99 | 1.5 | |
| A-16-25 | 6.5 | 29 | 0.77 | 22.5 | |
| incl. | 21.5 | 24.5 | 1.88 | 3 | |
| A-16-26 | 14 | 15.5 | 1.57 | 1.5 | |
| A-16-27 | 6.5 | 17 | 0.9 | 10.5 | |
| incl. | 14 | 17 | 1.56 | 3 | |
| A-16-28 | 12.5 | 17 | 1.23 | 4.5 | |
| A-16-29 | 2.5 | 18.5 | 2.82 | 16 | |
| incl. | 2.5 | 3.5 | 25.8 | 1 | |
| D-16-18 | 6 | 15 | 0.21 | 9 | |
| G-16-01 | 53 | 54 | 0.81 | 1 | |
| G-16-02 | 14 | 15.5 | 1.16 | 1.5 | |
| and | 31 | 32 | 1.97 | 1 | |
| and | 50 | 53 | 0.77 | 3 | |
| and | 63.5 | 65 | 1.14 | 1.5 | |
| and | 138.5 | 139.5 | 6.13 | 1 |
- Widths as shown are over drilled core length, and do not represent true widths which remain undefined at the current time.
** Gold values are presented uncapped
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6.1.10 2018 Exploration Work - GTA Resources and Mining Inc.
During the period ending December 31, 2018, GTA completed a 3-hole, 1,161 meter drill program on the Property (Table 6-17). The program included two long holes that tested the Afric Gold Deposit beneath the previously outlined resource (WB-18-53 and -54) (Figure 6-12). They successfully expanded the Deposit, leaving it open for additional delineation at depth, in particular to the east and northeast. The Afric Gold Deposit continues to demonstrate significant widths to depth highlighted by an intercept of 124.50 metres grading 1.05 g/t gold (0.86 g/t gold “cut”) in hole WB-18-54 (Table 6-18) (see GTA news release dated February 25, 2019, posted on SEDAR).
As with previous drilling this broad mineralized envelope includes a high grade core, which returned 7.00 metres grading 11.15 g/t gold (7.65 g/t gold “cut”), including 1.00 metre grading 56.50 g/t gold. This intercept extends the high grade core of the Afric Gold Deposit by approximately 125 vertical metres in the area tested, to a little over 250 vertical metres depth, and appears to support a northeast plunge to the high grade gold mineralization.
Table 6-17 2018 Diamond Drilling Information
| Drill Hole | Northing | Easting | Elevation | Length(m) | Azimuth | Dip |
|---|---|---|---|---|---|---|
| WB18-53 | 479923 | 5401185 | 252 | 528 | 308.7 | -50 |
| WB18-54 | 480177 | 5401270 | 300 | 531 | 308.4 | -50 |
| WB18-55 | 480424 | 5401298 | 251 | 102 | 358.4 | -45 |
Table 6-18 Significant Mineralized Intercepts - 2018 Drill Holes Completed by GTA (see GTA news release dated February 25, 2019, posted on SEDAR)
| DDH | FROM | TO | INTERVAL (m)* |
GOLD (g/t) | CUT GRADE** GOLD (g/t) |
|---|---|---|---|---|---|
| WB-18-53 (528 m) | 189.00 225.00 286.50 325.00 439.75 |
190.50 234.00 297.00 332.00 444.00 |
1.50 9.00 10.50 7.00 4.25 |
4.32 0.72 0.95 0.41 0.67 |
|
| WB-18-54 (531 m) including which includes which includes |
190.50 262.50 294.00 300.00 |
315.00 303.00 301.00 301.00 |
124.50 40.50 7.00 1.00 |
1.05 2.53 11.15 56.50 |
0.86 1.93 7.65 32.00 |
| WB-18-55(102 m) | No Significant Values |
- Reported drill intercepts are not true widths. Insufficient data is available to calculate true orientations at this time.
**Assays over 32.0 g/t gold have been cut to 32.0 g/t gold (this applies to one sample in hole WB18-54 only, which assayed 56.5 g/t over 1.0 m)
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Figure 6-12 Drill Hole Plan of the Northshore Property showing the Location of 2018 Drilling and Rough Mineralized Outline (see Figure 6-10)
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Historical Mining
Development work on the Main Vein (Northshore Vein, Figure 6-10) consisted of the driving of adits and diamond drilling. The underground work consisted of workings on three levels and one sub-level (Carter, 1988). Three adits were driven on the vein system; the No. l adit was driven westerly on the eastern end of the vein to form the second level, for a distance of 1,100 feet (335 m), at an elevation of 975 feet (297 m). One hundred feet of crosscutting were driven from the adit which followed the vein for a total length of about 550 feet (168 m) at three points. At 2 of these points, small stopes 240 feet (73 m) and 140 feet (43 m) long had been started and carried to a vertical height of about 35 feet (11 m). A 15-foot (5 m) winze had been sunk on the vein, 15 feet (5 m) from the portal of the adit and two shallow shafts about 50 feet (15 m) south of the portal were sunk (Carter, 1988).
The No. 2 adit was located at the western end of the vein, about 1,800 feet (549 m) west of the No. l adit. The No. 2 adit was at an elevation of 1,150 feet (351 m) which formed the first level. It was driven eastwards onto the vein for a distance of 700 feet (213 m). Two stopes were made, one for a vertical distance of 80 feet (24 m) to the surface. From this first level a 130-foot (40 m) winze inclined at 27[o] west was sunk to a lower level called the sub-level, at an elevation of 1100 feet (335 m), 50 feet (15 m) vertically below. This sub-level was 250 feet (76 m) long and partly followed the vein. From this sub-level ore was stoped for a distance of 175 feet (53 m) mining out all the ore.
A third adit, the No. 3 adit, located 250 feet (76 m) south of the No. 2 adit and 100 feet (30 m) below it, was driven northeastwards into the hillside onto the vein to form the third level. It followed the vein for 200 feet (61 m) in an easterly direction. The portal of this adit was thus at an elevation of 1,050 feet (320 m) forming a level at this horizon on the vein. It was connected by a raise to the 1,100 foot (335 m) sub-level. Because of the presence of a fault beneath the sub-level this work was unsuccessful and was abandoned after about 400 feet (122 m) of lateral development.
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2011 Historical Mineral Resource Estimates - GTA Resources and Mining Inc
In 2014, Giroux Consultants Ltd. and Minorex Consulting Ltd. completed a NI 43-101 compliant Technical Report (Giroux and Blanchflower, 2014) which included a maiden MRE for the Afric Zone. Although the 2014 MRE was at the time prepared and disclosed in compliance with all disclosure requirements for mineral resources or reserves set out in the NI 43-101 Standards of Disclosure for Mineral Projects (2011), and the classification of the 2014 MRE as an Indicated and Inferred MRE was consistent with CIM Definition Standards - For Mineral Resources and Mineral Reserves at the time (2005), a qualified person for Omni has not done sufficient work to classify the 2014 MRE as a current mineral resource and Omni is not treating the 2014 MRE as current mineral resource. There is no current MRE for the Property with respect to Omni. The 2014 MRE is considered historical. The 2014 MRE is summarized below.
The 2014 technical report was the most recent and most comprehensive study of the Property at the time. In order to update the 2014 MRE to a current MRE the following needs to be done:
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The 51 drill holes completed by GTA in 2016 and the 3 holes completed by GTA in 2018 will need to be added to the database.
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The assay data for the 2016 and 2018 will need to be verified and validated and the results of the QA/QC procedures will need to be reviewed.
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Resource wireframe models will need to be updated to include the most recent drilling.
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The results of the 2016 metallurgical testing by GTA will need to be considered when reporting an updated MRE.
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An updated MRE for the Property will need to be prepared and disclosed in compliance with all current disclosure requirements for mineral resources set out in the NI 43-101 Standards of
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Disclosure for Mineral Projects. The classification of the current MRE’s into Inferred is consistent with current (2014) CIM Definition Standards - For Mineral Resources and Mineral Reserves, including the critical requirement that all mineral resources “have reasonable prospects for eventual economic extraction”.
6.3.1 2014 Historical Mineral Resource Estimate
G. H. Giroux, P. Eng., of Giroux Consultants Ltd. was retained to prepare a mineral resource estimate on the Property in 2014. He was at the time independent of both the issuer and the vendor applying all of the tests in Section 1.5 of NI 43-101, and he has not visited the property (Giroux and Blanchflower, 2014).
A geological model was constructed by J. D. Blanchflower, P. Geo., from vertical and horizontal crosssections spaced 25 metres apart using Gemcom software. Gold mineralization is associated with well defined, narrow, quartz and quartz-carbonate veins, quartz-carbonate (± tourmaline) vein stockworks and base-metal sulphide mineralization within a felsic to mafic volcanic host that has been intruded by syenitic to dioritic and feldspar porphyritic (± quartz) stocks (Figure 6-10).
A broad mineralized solid was utilized to constrain the resource estimation within the Afric Zone, excluding the adjacent Gino and Northshore vein structures (Figure 6-13). Several northwesterly trending, barren to weakly mineralized, post-mineral diabase dykes cross-cut the mineralized Afric Zone, and these features were also modelled.
The drilling and assay data base was comprised of 100 drill holes (1990 to 2013) with 479 downhole surveys and 13,777 gold assays. Of these, 432 assays were less than 0.001 g/t gold and were set to 0.001 g/t gold, and there was a total of 473 missing sampling intervals for which a value of 0.001 g/t gold was inserted. Of the 100 diamond drill holes in the database, 87 intersected the mineralized solid and were coded according to their lithologic domains.
The gold grade distribution for all domains was evaluated using lognormal cumulative frequency plots. A total of 7 overlapping gold populations were identified within the mineralized solid. There are 2 assay samples in Population 1 representing erratic high grade outliers that were capped at 180 g/t gold (i.e. 2 standard deviations above the mean). Populations 2, 3, 4 and 5 represented the higher grade veins and stockwork mineralization. Population 6 represented the low grade mineralization that surrounds the higher grade veins and stockworks, and finally Population 7 represented internal waste within the mineralized solid. Each of the domains were examined and an appropriate capping level was chosen to try and remove the effect of erratic high grade samples. Capping reduced the coefficients of variation significantly in all domains.
A composite length of 2.5 m was chosen to best fit the data and be an even multiple for a possible 5-metre bench height. Within each domain uniform downhole composites 2.5 m in length were formed to honor the domain boundaries. At the edges of the domain solids samples less than 1.25 m were combined with adjoining samples while those greater than 1.25 were left intact. In this manner a uniform support was achieved at 2.5 ± 1.25 m.
Since it was not possible to model the individual narrow, higher grade vein structures, a method to avoid over smearing was used, called ‘Indicator Kriging’. With this interpolation method the higher grade mineralization is separated for semivariogram analysis, estimated separately and then brought back to determine an overall block grade. A threshold separating the predominantly low grade mineralized material from the higher grade mineralization was determined statistically at 1.4 g/t gold. Semivariograms were then produced for both the indicator and lower grade composites. The indicator value was then kriged for every block representing the probability of finding the high grade populations in each block.
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Figure 6-13 Isometric View Looking North showing the 2014 Mineralized Solid in Brown, Surface Topography in Green and Diamond Drill Hole Traces
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Following pairwise semivariogram analyses, a block model with blocks 10 x 10 x 5 metres was superimposed over the geologic solids with the percent below topography, percent below bedrock, percent inside mineralized solid and percent inside dykes recorded in each block. Based upon specific gravity analyses conducted by AGAT Laboratories in Mississauga, Ontario an average bulk density value of 2.74 g/cm[3] was used to convert volumes to tonnes. Gold grades were interpolated into blocks using Ordinary Kriging and an Indicator approach. A gold grade for low grade (Au ≤ 1.4 g/t) was first estimated for blocks within the mineralized solid using composites within the mineralized solid that were ≤ 1.4 g/t Au. Next, the higher grade indicator variable was estimated for each block using the indicator variable for all composites within the mineralized solid.
For all variables, the kriging was completed in a series of 4 passes with the search ellipsoid for each pass tied to the range of the semivariogram. For pass 1 the dimensions of the search ellipsoid were equal to ¼ of the semivariogram range in each of the three principal directions. A minimum of 4 composites were needed to estimate a block with a maximum of 3 from any one drill hole. In this manner all blocks required a minimum of 2 drill holes within the search volume to make an estimate. For blocks not estimated in Pass 1 a second pass was made with the search ellipsoid dimensions expanded to ½ the semivariogram range. A third pass using the full range and a fourth pass using twice the range completed the exercise. Due to the fewer number of high grade composites a fifth pass was required to estimate the high grade gold value. For blocks containing some percentage of dyke material the average grade of the dykes, a value of 0.015 g/t gold, was assigned. Blocks containing some percentage of material outside the mineralized solid were estimated using composites from outside the solid. The total gold grade for each 10 x 10 x 5 m block was then a weighted average grade.
Delineated mineralization was classified as a resource according to the definitions from National Instrument 43-101 (2011) and CIM (2005). The geological continuity of the mineralization within the Afric Zone has been established by surface geological mapping, trench sampling and diamond drilling. Grade continuity can be quantified by semivariogram analysis. Thus, the classification of mineral resources within the Afric Zone was ‘Indicated’ if the mineralized solid blocks were estimated during pass 1 and 2 using search
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ellipses with dimensions up to ½ the semivariogram range. All remaining blocks were classified as Inferred. While one drill hole extends below –100 m AMSL elevation the majority do not and, thus, the mineral resource is only reported above the -100 m AMSL elevation.
The results are tabulated for a series of gold cut-off values for the percentage of blocks within the mineralized solid (Table 6-19). These tables assume no dilution from any external waste or dyke material. Also, there are no metallurgical testwork results available so a recovery of 100% is assumed. In addition, without an economic study a gold cut-off of 0.50 g/t has been highlighted as a possible open pit cut-off value based upon current metal prices and regional operating expenses where there is excellent existing infrastructure.
The interpolated block model was verified using swath plots where the average grades for gold from composites are compared with the average grades from estimated blocks in three principal directions: North- South, East-West and bottom to top. The interpolated block model was also verified by visually comparing the block model interpolated grades with the gold composited grades along drill hole traces at 10-metre intervals north-south and east-west. There is no indication of any bias and the estimated grades seem reasonable based on available data.
Table 6-19 Northshore Property Historical Mineral Resource Estimates – June, 2014 (Giroux and Blanchflower, 2014)
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6.3.2 Cautionary Statement regarding Historic Mineral Resources
The reader is cautioned that the Authors have not done sufficient work to pass detailed comment on the MRE and classification presented in this report and hence the MRE is considered historic. While these estimates were prepared, in accordance with National Instrument 43-101 (2011) and reported according to the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines in effect at the time (2005), there is no assurance that they are in accordance with current CIM 2014 Mineral Resource reporting standards (2014) and the MRE should not be regarded as consistent with current standards or unduly relied upon as such.
The historic MRE presented in this report is only presented for information purposes as they represent material historical data which have previously been publicly disclosed. To the Authors’ knowledge, the 2014 MRE for the Property is the most recent MRE available regarding the Property.
6.3.3 2015 Engineering Study - GTA Resources and Mining Inc
As part of the on-going evaluation of the Afric Gold Deposit, GTA contracted the mining engineering services of Moose Mountain Technical Services (“Moose Mountain”), based in Cranbrook, B.C. to outline areas of higher grade, near surface gold mineralization hosted within the Afric Zone. Moose Mountain designed pit shells based upon geological models provided by Messrs. Giroux and Blanchflower, using a Lerchs Grossman (LG) pit design software program, generated a sequence of pits which ranged from 5,000 to 1,500,000 tonnes. The results of this pit design process identified two potential open pit mining areas with near-surface gold mineralization. A smaller and larger pit option has been defined in each area. Detailed information for these selected pit areas was disclosed in a press release by GTA dated June 17, 2015 which is available on SEDAR.
Detailed information for these selected pit areas (termed the West and East pits) are presented in Table 6-20. No information regarding pit optimization parameters, including pit slope, metal price, mining and milling costs or dilution factors, were presented in the June 17, 2015 press release. No other information regarding the 2015 engineering study have been provided to the Authors.
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Table 6-20 Results of the 2015 Engineering Study by Moose Mountain Technical Services (using a cut-off grade of 1.6 g/t Au) (see GTA press release dated June 17, 2015, posted on SEDAR)
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**Note: The above pit areas outlined by Moose Mountain were designed and defined using the same geological models as those used by Messrs. Giroux and Blanchflower for the resource estimate. The above results include inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves, and there is no certainty that the economic viability of this material will be realized in future studies. Also note that there are no changes in the overall indicated and inferred mineral resources estimate reported for the Afric Zone, as no mining has been undertaken in these areas and no further geological or drilling work has been carried out since the June 2014 NI 43-101 technical report.
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7 GEOLOGICAL SETTING AND MINERALIZATION
The following description of the regional and Property geology has been extracted directly from the 2014 NI 43-101 Technical Report written by Giroux and Blanchflower (2014).
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Regional Geology
The Schreiber area is underlain by Archean-age rocks that form the western portion of the Hemlo-Schreiber greenstone belt of the Wawa Subprovince within the Superior structural province (Figure 7-1 and Figure 7-2). The geology of the Schreiber area is as follows:
The consolidated rocks of the (Schreiber) map-area are of Precambrian age and range from Archean to Proterozoic. The Archean rocks of the Wawa Subprovince are predominantly subaqueous mafic tholeiitic metavolcanics which overlie a less voluminous, predominantly calc-alkalic sequence, both of which are interlayered with minor clastic and chemic metasediments. Two volcanic cycles are present separated by a marker horizon of sulphide-facies ironstone. The lower cycle exceeds 2.3 km in thickness and underlies the southern margin of the (Schreiber) map area, south of Highway 17. It consists of interlayered tholeiitic basalts and calc-alkalic andesite and dacite and tholeiitic or calc-alkalic rhyolite. The upper cycle is in excess of 12 km thick and underlies much of the northern part of the (Schreiber) map-area north of Highway 17. The upper cycle consists predominantly of tholeiitic basalt with subordinate calc-alkalic andesite and dacite, and tholeiitic or calc-alkalic rhyolite. These rocks are folded about an east-southeast trending synclinal axis which plunges to the east-southeast. Wawa Subprovince metavolcanic rocks are overlain, in the northeast of the map-area by metawackes and meta-arenites of the Quetico Subprovince, which are tightly folded along east-west axes. Both subprovinces are intruded by gabbroic rocks, an ultramafic intrusion, granitic batholiths and Archean to Proterozoic diabase dikes following three trends. The grade of metamorphism increases from greenschist facies in the south to amphibolite facies in the north and has affected the metavolcanics, metasediments and mafic intrusions. Contact metamorphism, to pyroxenehornfels rank, has been superimposed on the greenschist facies by the Terrace Bay Batholith. A pervasive foliation characterizes most of the rocks of both subprovinces, the foliation being parallel to the primary layering in the rocks.
Proterozoic rocks include remnants of Animikie Group clastic and chemical sediments, which outcrop along the north shore of Lake Superior in the southwestern part of the area. Archean to Proterozoic rocks comprise narrow diabase dikes which cut all the Archean rocks, and diabase sills which intrude the Proterozoic Animikie Group. The sills are Proterozoic in age (Logan sills).
Cenozoic rocks comprise Pleistocene morainal, glaciofluvial and glaciolacustrine sands and gravels and Recent alluvial deposits.
Faults trending northwesterly, northeasterly and northerly are a characteristic feature of the map-area. A strong vertical component to movement on the faults is interpreted to explain the preservation of supracrustal rocks in the eastern part of the map area.
Mineral deposits comprise precious metal (gold and silver) veins in fractures, and shears associated with the mafic metavolcanic rocks, and the granitic rocks; molybdenum-copper vein deposits associated with the border zones of the granitic batholiths; nickel-copper deposits associated with a gabbro intrusion; and polymetallic base-metal copper-lead-zinc-silver occurrences associated with clastic and chemical interflow metasediments.
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Figure 7-1 Regional Geology Map of the Northshore Property (from Giroux and Blanchflower, 2014)
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Figure 7-2 Regional Structure Map of the Northshore Property (from Giroux and Blanchflower, 2014)
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Property Geology
The property geology was first documented in recent assessment reports by for Noranda Exploration, although the assessment work was largely carried out on the adjoining ground to the west, called the ‘Hayes Lake’ property. Cyprus Canada (Drost, 1997) conducted detailed prospecting and geological mapping over their ‘Northshore’ property which included the eastern patented mining claims of the current Property. In 2009, American Bonanza personnel mapped and prospected the non-contiguous western claim 4211126, and this work was reported by LeGrand (2009). The geological mapping and prospecting results from these works are as follows.
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7.2.1 Lithology
Geological mapping during the 1997 field season by Cyprus Canada personnel on the eastern claim holdings reported that this area is underlain by four main lithologies that were described by Drost (1997) as follows:
Syenite: medium to dark greyish black color with variable dark brick red potassic overprint; medium grained intrusive grain size and textures; generally unaltered and massive fabric. This lithology is a minor host of Afric Zone mineralization.
Feldspar (+I- Quartz) Porphyry: medium greyish to buff-colored, fine-grained, porphyritic matrix with medium to coarse-grained feldspar (+/- quartz shards) phenocryst phase; identified mainly in the Noranda grid area (covering the Afric Zone); typically exhibits sericitic matrix. This lithology is the main host of known Afric Zone mineralization.
Intermediate to Felsic Volcanics: light to medium greyish, buff color; typically fine-grained sericitic matrix; typically with tuffaceous characteristics including: multiphase, broken crystal fragments (crystal tuff). This unit may be confused locally with feldspar (+I- quartz) porphyry depending on bulk crystal content.
Mafic Volcanics: medium to dark greyish green colour; fine-grained to locally metamorphosed, amphibolitic medium-grained groundmass; displays typical mafic flow textures such as pillows, vesicles, etc.; moderately chloritic; generally fresh and unaltered.
The four main lithologies are cut by various intrusive dyke/sill bodies including diabase dykes, gabbroic sills, lamprophyre dykes, quartz-feldspar porphyry dykes and rare diatreme breccia dykes. Of these, the barren diabase dykes and quartz-feldspar porphyry dykes which were locally sulphide mineralized and weakly auriferous, were common in the main Afric Zone area on the Noranda grid.
The eastern claim holdings are locally underlain by Archean-age rocks of andesitic and dacitic composition. These volcanic rocks are described as being grey to dark-grey on the fresh surface and light-grey on the weathered surface and best developed in the eastern half of the Schreiber Peninsula south and southeast of Schreiber. They have been altered to greenschist facies, vary in thickness up to 3 km, and are almost entirely aphanitic structure-less rocks without mafic interlayers. Massive, aphanitic to fine-grained andesitic and dacitic rocks are believed to be flows because of the absence of fragmental textures seen on outcrops. No flow structures were observed on any of the outcrops.
Megascopically aphyric, megascopically porphyritic and amygdaloidal felsic volcanic rocks may occur locally. The megascopically aphyric rocks have completely sericitized pseudomorphic feldspars. The ferromagnesian phenocrysts are converted to aggregates of chlorite, brown biotite and opaque grains. Where recrystallization has been more pronounced, green pleochroic actinolite needles have developed in the matrix. Megascopically porphyritic rocks are light grey to dark grey on the fresh surface and light grey and buff on the weathered surface. The phenocrysts consist of irregular, subhedral and euhedral quartz, dusty brownish euhedral, subhedral grains and irregular areas of plagioclase which are sericitized, saussuritized and may contain irregular areas of pale green chlorite and carbonate, and euhedral, subhedral and irregular clotty areas of ferromagnesian minerals now consisting of green pleochroic actinolite. The amygdaloidal felsic rocks are uncommon but similar in appearance and weathering characteristics to the megascopically aphanitic and fine grained rocks. They contain amygdules of mosaic quartz and white carbonate.
The Archean-age intermediate to felsic volcaniclastics, equivalent of the intermediate to felsic volcanics are described as being massive, light grey, fine-grained to aphanitic rocks on the fresh surface. They are reportedly composed of a recrystallized granoblastic aggregate of quartz and untwinned dusty brownish plagioclase feldspar some of which is sericitized. Granoblastic grains of green chlorite, brown biotite, colourless muscovite, carbonate, epidote and titanite are present.
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Lapilli tuffs are reportedly uncommon in the area. They are described as being grey or pink rocks on the fresh and weathered surfaces with subangular and subrounded lithic fragments. The rocks occur interlayered with the mafic metavolcanics at various horizons in both the lower and upper volcanic sequences; west of Schreiber in the lower sequence and in the eastern half of the upper volcanic sequence. These lapilli tuff units vary in thickness from 60 m to 80 m and are up to 100 m in lateral extent. The absence of bedding structures in these rocks suggests that they are pyroclastic fall-back tuffs.
The two main intrusive rocks within the Property and hosts of the Afric Zone mineralization, the syenitic and feldspar (+/- quartz) porphyritic units, are described as occurring in other parts of the map-area but were not mapped within the Property area.
The diabase dykes that intrude all of the Archean-age volcanic, volcaniclastic and intrusive rocks within the Property are described as follows:
Diabase occurs as dikes varying from about 8 m to about 91 m wide. There are four trends of diabase dikes in the map area: (1) west-northwest to east-west, (2) north-south, (3) north-east, and (4) northwest.
The west-northwesterly to east-west dikes are the most numerous and are most common along the southern margin of the map-area intruding both volcanic and granitic rocks. They are not as common in the northern part of the map-area. These are black massive, medium-grained, non-porphyritic rocks with a modal colour index of about 40. They are usually well jointed. The weathered surface of these rocks is reddish brown, the fresh surface is black, and all the specimens examined were moderately magnetic. In thin section these rocks show intergranular ophitic and subophitic textures and comprise plagioclase (labradorite An 56 to An 65) and common clinopyroxene which is usually anhedral, brownish and twinned. The clinopyroxene is commonly marginally altered to greenish brown hornblende, uralite and yellowish green and green chlorite, and brownish biotite. The plagioclase in places is fresh and in places altered and shows composite twinning comprising Carlsbad, albite-carlsbad and acline A twinning. Chlorite commonly occurs along the cleavages of the feldspar.
A 2008 diamond drilling report by LeGrand for American Bonanza does not provide any further detailed information on the geological setting of the east claim holdings. However, 2009 geological mapping and prospecting results reported by LeGrand for the western claim area indicates that this area is largely underlain by massive, aphanitic, and medium to dark green-coloured mafic volcanic rocks commonly hosting trace to very minor pyrite. Along the northern claim border this volcanic unit has been intruded by a diabase dyke, similar in composition to those occurring elsewhere within the eastern claim holdings. On the southern claim boundary, along the shore of Lake Superior, there are pinkish, massive, finegrained barren dykes cutting the mafic volcanic rocks.
7.2.2 Structure
The rocks underlying the claim holdings were reportedly affected by at least one major episode of deformation which folded the supracrustal rocks along east-southeasterly axes, and imposed a pervasive regional foliation that generally parallels the trend of stratigraphy (Figure 7-2).
Folding is about an east-southeasterly trending axis. Along the southern limb of this fold axis the rocks trend southwestwards, and on the northern limb they trend northeastwards. Based on these trends, the syncline is interpreted to plunge east-southeastwards.
Lineaments with northwesterly trends are most strongly developed, with northeasterly trends less, and northern trends least of all. These trend directions are followed by vein structures, and by streams and lakes. The Worthington Bay fault, is one of the major northeasterly trending faults responsible for lineations within the Property.
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Along the Schreiber Point and Worthington Bay Faults displacement is right lateral and left lateral respectively. On the Syenite Lake Fault a vertical component of movement is considered to have been very important as a pronounced fault scarp is readily discernible in the field trending parallel to much of the western shore of the lake. Along the west shore of Schreiber Peninsula a fault scarp is apparent along the Schreiber Point Fault with down throw apparently to the west. If the Syenite Lake Fault and the Schreiber Point Fault are the same, there was probably a scissor movement on this fault with the east side down at the northeastern end of this combined fault, and the west side up at the southwestern end. This would help to explain the occurrence of the Gwynne Mountain granitic wedge. Similarly an important vertical component of movement is believed to have occurred with the east side down on the Worthington Bay Fault as a marked but less spectacular fault scarp occurs along the west side of this fault in the Worthington Bay area.
7.2.3 Alteration
The Archean-age volcanic and volcaniclastic rocks have undergone regional greenschist alteration resulting in the ubiquitous sericitization and saussuritization of the feldspars, and alteration of the mafic minerals to epidote, chlorite, carbonate, quartz and magnetite. The syenitic intrusive rocks within the Afric Zone display weak ankeritic to hematitic alteration, pyritization and sericitization of the feldspar phenocrysts. There may be secondary albitization, biotitization and potassic alteration as well.
7.2.4 Mineralization
Gold mineralization on the Property occurs in a variety of modes, namely: hosted by well-defined, narrow quartz-carbonate veins (i.e. Audney and Caly veins), quartz-carbonate (+ tourmaline) vein stockworks, and associated with base-metal sulphide mineralization. A description of each mode of gold mineralization is as follows:
Gold mineralization hosted by quartz and quartz-carbonate veining – This type of multi-phase quartz and quartz-carbonate veining occurs along several prominent structural trends throughout the property. The Audney, Caly and Caly North quartz-carbonate veins within the Afric Zone host locally coarse, highgrade gold mineralization. These vein structures strike east-northeasterly, vary in true thickness from 5 cm to 60 cm, and have been traced by drilling to a vertical depth of at least 300 m. They commonly have poorly defined selvages with narrower subparallel veins, veinlets and infilled fractures hosting native gold, electrum and other gold-bearing mineralization. They may also host trace to minor amounts of pyrite with lesser tourmaline and chalcopyrite. The east-northeasterly to northeasterly trending vein structures appear to be structurally related to conjugate, dilational fracturing associated with northwesterly trending extensional fracturing and northnortheasterly strike-slip displacements along the Worthington Bay and Schreiber Point faults (Figure 7-2).
There are numerous narrow quartz and quartz-carbonate vein and veinlets throughout the Afric Zone subparalleling the better defined Audney and Caly vein structures. These narrow veins may occur individually or collectively as vein stockworks often hosting considerable gold mineralization as native gold, electrum and gold-bearing sulphide mineralization.
The high-grade gold-bearing vein at the historic Northshore mine which strikes approximately east-west, paralleling the Afric Zone, may also be a similar quartz-carbonate dilational vein structurally related to extensional shearing between the Worthington Bay and Schreiber Point faults. However, the old shaft exposing the vein is completely flooded and drilling by Cyprus Canada failed to intersect the vein structure.
Gold mineralization associated with altered and pyritized intrusive rocks – Within the better-explored Afric Zone gold mineralization is associated with pyritized feldspar (+ quartz) porphyritic and syenitic intrusive rocks that also host the high-grade quartz and quartz-carbonate vein structures. Gold mineralization appears to be genetically associated with the hydrothermal alteration of the host intrusive rocks that produced finely disseminated to blebby pyrite and extensive zones with pervasive ankerite (iron-
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carbonate) alteration intrusion. Gold-bearing pyrite mineralization seems to be more concentrated at or near the loci of northeasterly and northwesterly trending fracturing.
Gold associated with base-metal sulphide mineralization – Gold mineralization also occurs associated with several pyrite, chalcopyrite and/or arsenopyrite-bearing shear zones and veins that may also carry locally elevated silver values. The chalcopyrite and sphalerite-bearing shear zone at the Worthington Bay No. 3 showing is an example of this type of mineralization. Past operators have suggested that this style of mineralization may be genetically related to volcanogenic massive sulphide mineralization known elsewhere in the Archean-age sequence such as at the former producing Winston Lake Zn-Cu-Ag-Au system situated north of Schreiber.
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8 DEPOSIT TYPES
Gold mineralization on the Property is structurally controlled and exhibit similar geological, structural, and metallogenic characteristics to other Archean Greenstone-hosted quartz-carbonate vein (lode) deposits. These deposits are also known as mesothermal, orogenic, lode gold, shear-zone-related quartz-carbonate or gold-only deposits (Dubé and Gosselin, 2007).
Archean Greenstone-hosted quartz-carbonate vein (lode) deposits are a significant source of gold mined in the Superior and Slave provinces of the Canadian Shield. Dubé and Gosselin (2007) have recently published an overview of greenstone hosted gold deposits in Canada. These deposits are typically quartzcarbonate vein hosted and are distributed along crustal-scale fault zones that mark convergent margins between major lithological boundaries such as those between volcano-plutonic and sedimentary domains.
The following description of Greenstone-hosted quartz–carbonate vein deposits is extracted from Dubé and Gosselin (2007).
Greenstone-hosted quartz-carbonate vein deposits are structurally controlled, complex epigenetic deposits that are hosted in deformed and metamorphosed terranes. They consist of simple to complex networks of gold-bearing, laminated quartz-carbonate fault-fill veins in moderately to steeply dipping, compressional brittle-ductile shear zones and faults, with locally associated extensional veins and hydrothermal breccias. They are dominantly hosted by mafic metamorphic rocks of greenschist to locally lower amphibolite facies and formed at intermediate depths (5-10 km). Greenstone-hosted quartz-carbonate vein deposits are typically associated with iron-carbonate alteration. The relative timing of mineralization is syn- to latedeformation and typically post-peak greenschist-facies or syn-peak amphibolite facies metamorphism.
Gold is mainly confined to the quartz-carbonate vein networks but may also be present in significant amounts within iron-rich sulphidized wall rock. Greenstone-hosted quartz-carbonate vein deposits are distributed along major compressional to transpressional crustal-scale fault zones in deformed greenstone terranes of all ages, but are more abundant and significant, in terms of total gold content, in Archean terranes. However, a significant number of world-class deposits (>100 t Au) are also found in Proterozoic and Paleozoic terranes.
The main gangue minerals in greenstone-hosted quartz-carbonate vein deposits are quartz and carbonate (calcite, dolomite, ankerite, and siderite), with variable amounts of white micas, chlorite, tourmaline, and sometimes scheelite. The sulphide minerals typically constitute less than 5 to 10% of the volume of the orebodies. The main ore minerals are native gold with, in decreasing amounts, pyrite, pyrrhotite, and chalcopyrite and occur without any significant vertical mineral zoning. Arsenopyrite commonly represents the main sulphide in amphibolite-facies rocks and in deposits hosted by clastic sediments. Trace amounts of molybdenite and tellurides are also present in some deposits.
This type of gold deposit is characterized by moderately to steeply dipping, laminated fault-fill quartzcarbonate veins in brittle-ductile shear zones and faults, with or without fringing shallow-dipping extensional veins and breccias. Quartz vein textures vary according to the nature of the host structure (extensional vs. compressional). Extensional veins typically display quartz and carbonate fibres at a high angle to the vein walls and with multiple stages of mineral growth, whereas the laminated veins are composed of massive, fine-grained quartz. When present in laminated veins, fibres are subparallel to the vein walls.
Individual vein thickness varies from a few centimetres up to 5 metres, and their length varies from 10 up to 1000 m. The vertical extent of the orebodies is commonly greater than 1 km and reaches 2.5 km in a few cases.
The gold-bearing shear zones and faults associated with this deposit type are mainly compressional and they commonly display a complex geometry with anastomosing and/or conjugate arrays. The laminated quartz-carbonate veins typically infill the central part of, and are subparallel to slightly oblique to, the host
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structures. The shallow-dipping extensional veins are either confined within shear zones, in which case they are relatively small and sigmoidal in shape, or they extend outside the shear zone and are planar and laterally much more extensive.
Stockworks and hydrothermal breccias may represent the main mineralization styles when developed in competent units such as the granophyric facies of differentiated gabbroic sills, especially when developed at shallower crustal levels. Ore-grade mineralization also occurs as disseminated sulphides in altered (carbonatized) rocks along vein selvages. Due to the complexity of the geological and structural setting and the influence of strength anisotropy and competency contrasts, the geometry of vein networks varies from simple (e.g. Silidor deposit), to fairly complex with multiple orientations of anastomosing and/or conjugate sets of veins, breccias, stockworks, and associated structures. Layer anisotropy induced by stiff differentiated gabbroic sills within a matrix of softer rocks, or, alternatively, by the presence of soft mafic dykes within a highly competent felsic intrusive host, could control the orientation and slip directions in shear zones developed within the sills; consequently, it may have a major impact on the distribution and geometry of the associated quartz-carbonate vein network. As a consequence, the geometry of the veins in settings with large competence contrasts will be strongly controlled by the orientation of the hosting bodies and less by external stress. The anisotropy of the stiff layer and its orientation may induce an internal strain different from the regional one and may strongly influence the success of predicting the geometry of the gold-bearing vein network being targeted in an exploration program.
The veins in greenstone-hosted quartz-carbonate vein deposits are hosted by a wide variety of host rock types; mafic and ultramafic volcanic rocks and competent iron-rich differentiated tholeiitic gabbroic sills and granitoid intrusions are common hosts. However, there are commonly district-specific lithological associations acting as chemical and/or structural traps for the mineralizing fluids as illustrated by tholeiitic basalts and flow contacts within the Tisdale Assemblage in Timmins. A large number of deposits in the Archean Yilgarn craton are hosted by gabbroic (“dolerite”) sills and dykes as illustrated by the Golden Mile dolerite sill in Kalgoorlie, whereas in the Superior Province, many deposits are associated with porphyry stocks and dykes. Some deposits are also hosted by and/or along the margins of intrusive complexes (e.g. Perron-Beaufort/North Pascalis deposit hosted by the Bourlamaque batholith in Val d’Or. Other deposits are hosted by clastic sedimentary rocks (e.g. Pamour, Timmins).
The metallic geochemical signature of greenstone-hosted quartz-carbonate vein orebodies is Au, Ag, As, W, B, Sb, Te, and Mo, typically with background or only slightly anomalous concentrations of base metals (Cu, Pb, and Zn). The Au/Ag ratio typically varies from 5 to 10. Contrary to epithermal deposits, there is no vertical metal zoning. Palladium may be locally present.
At a district scale, greenstone-hosted quartz-carbonate vein deposits are associated with large-scale carbonate alteration commonly distributed along major fault zones and associated subsidiary structures. At a deposit scale, the nature, distribution, and intensity of the wall-rock alteration is controlled mainly by the composition and competence of the host rocks and their metamorphic grade.
Typically, the proximal alteration haloes are zoned and characterized – in rocks at greenschist facies – by iron-carbonatization and sericitization, with sulphidation of the immediate vein selvages (mainly pyrite, less commonly arsenopyrite).
Altered rocks show enrichments in CO2, K2O, and S, and leaching of Na2O. Further away from the vein, the alteration is characterized by various amounts of chlorite and calcite, and locally magnetite. The dimensions of the alteration haloes vary with the composition of the host rocks and may envelope entire deposits hosted by mafic and ultramafic rocks. Pervasive chromium- or vanadium-rich green micas (fuchsite and roscoelite) and ankerite with zones of quartz-carbonate stockworks are common in sheared ultramafic rocks. Common hydrothermal alteration assemblages that are associated with gold mineralization in amphibolite-facies rocks include biotite, amphibole, pyrite, pyrrhotite, and arsenopyrite, and, at higher grades, biotite/phlogopite, diopside, garnet, pyrrhotite and/or arsenopyrite, with variable proportions of feldspar, calcite, and clinozoisite. The variations in alteration styles have been interpreted as a direct reflection of the depth of formation of the deposits.
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The alteration mineralogy of the deposits hosted by amphibolite-facies rocks, in particular the presence of diopside, biotite, K-feldspar, garnet, staurolite, andalusite, and actinolite, suggests that they share analogies with gold skarns, especially when they (1) are hosted by sedimentary or mafic volcanic rocks, (2) contain a calc-silicate alteration assemblage related to gold mineralization with an Au-As-Bi-Te metallic signature, and (3) are associated with granodiorite-diorite intrusions. Canadian examples of deposits hosted in amphibolite-facies rocks include the replacement-style Madsen deposit in Red Lake and the quartz-tourmaline vein and replacement-style Eau Claire deposit in the James Bay area.
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9 EXPLORATION
Omni has yet to complete an exploration program. All exploration has been completed by other issuers and is described in Section 6: History.
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10 DRILLING
Omni has yet to complete a drill program on the Property. All drilling completed on the Property has been completed by other issuers and is described in Section 6: History.
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11 SAMPLE PREPARATION, ANALYSES, AND SECURITY
Omni acquired a 100% interest in the Property in 2020. Since the acquisition, Omni has yet to complete any surface exploration or diamond drilling on the Property. It is presumed by the Authors that all of the previous operators of the Property, completed sample collection in a manner consistent with industry standard sampling techniques at the time. The following paragraphs describe sample preparation, analysis and security procedures for diamond drilling programs from 1997 to 2013. The information was obtained from Giroux and Blanchflower (2014) and Blanchflower (2012) and references cited therein. Details of the sample preparation, analyses and security for the 2016 and 2018 drill programs are limited but are described briefly below.
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Historical Sampling Procedures
There is no detailed information regarding sample preparation, analyses or security in the private and publicly-available reports documenting pre-1997 grab, chip, channel, or drill core sampling (Blanchflower, 2012). Such detailed information was usually not required prior to the adoption of NI 43-101 procedures in 2001. Since none of this information is available, Blanchflower (2012) could not comment on the validity of historical sampling preparations and securities. It was assumed that the samples were prepared, analysed and secured following industry standards in use prior to the adoption of NI 43-101 procedures in 2001 (Blanchflower, 2012).
The 2007 American Bonanza assessment report does mention the rental of a rock saw for their drill core sampling but not how the drill core was handled or secured prior to analysis. Since this information is not available, Blanchflower (2012) could not comment on the validity of American Bonanza’s sampling procedures. It was assumed that their sample collection and handling, plus any quality control and quality assurance procedures, were carried out following industry standards at the time.
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2011 Program
11.2.1 Sample Preparation
The 2011 surface sample and diamond drilling program conducted out by GTA utilized handling, logging, sampling, QA/QC, security and storage procedures compliant with current industry-standard practises and within NI 43-101 guidelines (Blanchflower, 2012).
Surface grab and channel samples were collected by GTA field personnel from exposed mineralized quartz veins, quartz-carbonate stockwork structures and highly altered country rock material. The rock samples were correctly collected and described on site, and placed in a labelled 6-mil plastic sample bags with unique sample tags. The bagged samples were then transported to GTA’s field office in Schreiber for storage until their shipping via Greyhound Bus Parcel Express to the sample preparation and analytical facilities of Accurassay Laboratories in Thunder Bay, Ontario where they were prepared and analysed for their gold content.
The 2011 drill core was placed in wooden boxes at each drill site and transported by either the drillers or the supervising geologist to GTA’s field office. There the core boxes were opened, the core was gently washed clean of drilling fluids, and the drill core was accurately measured to determine core recoveries. After core recovery measurements and geotechnical logging the drill core was geologically logged for its lithology, structure, alteration and mineralization. These observations were recorded as written notes on pre-prepared log sheets. During the geological logging, the geologist marked the intervals of drill core that should be sampled, respecting lithological contacts and structural features, and the logged drill core was photographed.
The drill core was cut in half lengthwise using a diamond rock saw for those sections deemed worthy of sampling and analysis. One half of the sawn drill core was placed in a 6-mil sample bag and the other half
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of the drill core was returned to its correct position in the core box. A unique sample assay tag was placed in each core sample bag before the bag was securely sealed. The drill hole number, drilling interval, sample assay tag number were recorded for later transcribing to Chain of Custody documents that accompanied the samples to the assay laboratory. Quality control standard and blank samples were inserted into the sample sequence at an average rate of 1 standard or 1 blank per 20 drill core samples, representing approximately five percent of the total samples.
After the drill core had been properly logged and sampled the imperial measurements used during drilling were converted to metric units, and the observations recorded in hand-written drill logs were input into a matrix-style spreadsheet for computerization. The core boxes were labelled with an embossed aluminum tag documenting the hole number, box number and drilled interval contained in each box. The core boxes were stored in pre-constructed core racks.
The sealed, documented and bagged drill core samples were placed in larger ‘rice’ bags which were securely sealed and stored in a locked room within the GTA field office prior to their transportation to the assay laboratory. The drill core samples for drill holes WB-11-01 to -12 were later shipped via Greyhound Bus Parcel Express from Schreiber to the sample preparation and analytical facilities of Accurassay Laboratories in Thunder Bay, Ontario where they were prepared and analysed for their gold content. Sample shipping documents accompanied each drill core sample shipment and any differences between the shipping documents and that received by the laboratory were to be reported immediately to GTA. There were, however, no irregularities reported during the entire 2011 drilling campaign.
Blanchflower (2012) was of the opinion that GTA’s sample handling, storage and shipping procedures were good and compliant with current industry-standards.
11.2.2 Sample Analyses and Assays
At the Accurassay facilities the surface and drill core sample bags were opened, the sample information was recorded into the laboratory database, and the contents were dried in ovens at a low temperature (Blanchflower, 2012). Dried samples were then weighed prior to being crushed in a jaw crusher to 70 percent less than 8 mesh, and 250 to 500 grams of the crushed material from each sample was split off using a Jones riffle. The remaining ‘reject’ crushed rock was returned to its original plastic sample bag and packed in containers for return to GTA at periodic intervals. The split sub-sample from each crushed rock sample was then pulverized to 85 percent less than -200 mesh with the + 200 mesh material being repulverized and re-screened, and a 30-gram portion was then extracted to use as a sample aliquot. Nonsilica based sand is used to clean out the pulverizing dishes between each sample preparation to prevent cross contamination. The following procedures were utilized to initially analyse the surface and drill core samples.
- For the gold analyses, each sample is mixed with a lead-based flux and fused for one hour and fifteen minutes. Each sample has a silver solution added to it prior to fusion which allows each sample to produce a precious metal bead after cupellation. The fusing process results in lead buttons that contains all of the gold from the samples as well as the silver that is added. The buttons are then placed in a cupelling furnace where all of the lead is absorbed by the cupels and a silver bead, which contains any gold is left in each cupel. The cupels are removed from the furnace and allowed to cool. Once the cupels have cooled sufficiently, the silver bead from each is placed in an appropriately labeled test tube and digested using aqua regia. The samples are bulked up to 5 ml with a combination of distilled de-ionized water and a 1% digested lanthanum solution. The samples are allowed to cool and are mixed to ensure proper homogeneity of the solutions. Once the samples have settled, they are analyzed for gold using atomic absorption (air-acetylene flame) or ICP spectroscopy. The atomic absorption or ICP instrument is calibrated for each element using the appropriate ISO 9002 certified standards. The results for the instrumental analysis are checked by the technician and then forwarded to data entry by means of electronic transfer and a certificate is
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produced. The Laboratory Manager checks the data and validates the certificates and issues the results in the client requested format.
Any samples that returned gold values exceeding 3 ppm were re-assayed using gravimetric assay methods as follows:
For the analysis of higher grade gold samples (having approximately 3 g/t or higher of gold), each sample is mixed with a lead based flux and fused for one hour and fifteen minutes. Each sample has a silver solution added to it prior to fusion which allows each sample to produce a precious metal bead after cupellation. The fusing process results in lead buttons that contains all of the gold from the samples as well as the silver that is added. The buttons are then placed in a cupelling furnace where all of the lead is absorbed by the bone cupels and a silver bead, which contains any gold is left in each cupel. The cupels are removed from the furnace and allowed to cool. Once the cupels have cooled sufficiently, the silver bead from each is placed in an appropriately labeled porcelain cupel and digested using dilute nitric acid to remove the silver. The remaining sponge is rinsed with water and annealed using a torch to produce a gold bead. The gold bead is weighed on a microbalance. The results are checked by the technician and then forwarded to data entry. The Laboratory Manager checks the data, validates it if it is error free and a certificate is produced. Accurassay Laboratories employs an internal quality control system that tracks certified reference materials and in-house quality assurance standards. Accurassay Laboratories uses a combination of reference materials, including reference materials purchased from CANMET, standards created inhouse by Accurassay Laboratories and tested by round robin with laboratories across Canada, and ISO certified calibration standards purchased from suppliers. Should any of the standards fall outside the warning limits (+/- 2SD); reassays will be performed on 10% of the samples analyzed in the same batch and the reassay values are compared with the original values. If the values from the reassays match original assays the data is certified, if they do not match the entire batch is reassayed. Should any of the standards fall outside the control limit (+/- 3SD) all assay values are rejected and all of the samples in that batch will be reassayed.
11.2.3 2011 Sample Security
The 2011 surface and drill core samples were stored in a locked holding room prior to their shipment via Greyhound Bus Parcel Express directly to Accurassay Laboratories in Thunder Bay, Ontario. Furthermore, all of the samples were securely sealed and Chain of Custody documents accompanied all shipments. The analytical results from these samples were received by authorized GTA personnel using secure digital transfer transmissions, and these results were restricted to qualified GTA personnel prior to their publication.
Upon completion of the drilling program the diamond drill core and assay sample rejects were catalogued and securely stored in GTA’s field office and core storage facility in Schreiber, Ontario.
11.2.4 2011 Quality Assurance and Quality Control Program
GTA established a Quality Assurance and Quality Control (‘QA/QC’) program utilizing quality control samples to monitor accuracy (i.e. sample standards), contamination (i.e. sample blanks), precision (i.e. duplicates) and other possible sampling errors (i.e. sample mislabelling) (Blanchflower, 2012).
The QA-QC protocol utilized on the project targeted an insertion rate of quality control samples at a rate of 5 percent to the assay laboratory. Thus, a quality control sample was supposed to be inserted randomly within every 20 consecutive samples, alternating between standard, blank or duplicate samples. The standard and blank samples were to be inserted into the sample sequence as the sample shipment was being readied. Any duplicate samples were inserted into the sample sequence at the time of collection. The quality control samples were similarly numbered as the primary samples and were not identified in any other manner.
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Appendix I of this report contains a QA/QC report titled ‘Northshore Project QAQC Report on 2011 Analytical Results’ by Caroline Vallat, P. Geo., and dated March 8, 2012 (Vallat, 2012). The report documents a detailed study of the 2011 QA/QC procedures and results. The following text is derived directly from that report.
Standards and Blanks
Standard reference material (‘SRM’) samples were purchased in 60-gram foil packets from Analytical Solutions Ltd., a qualified third-party vendor, and the blank reference material was comprised of barren granitic rock material cropping out near Schreiber and barren diabase dyke material from diamond drill core. The SRM and blank reference samples were supposed to be inserted at a rate of approximately 1 standard for every 20 drill core samples at irregular intervals in the drill core sample sequence. Sixty SRM samples from 13 different SRM batches and 69 blank samples were inserted into the sample analytical sequence with the 922 primary samples for an average insertion rate of 6.5 and 7.5 percent respectively.
Standard results were reviewed to define where there were any cases of suspected issues with accuracy or contamination. The review revealed that for the 60 standards and 69 blanks, there were a total of six failed blank instances and ten failed standard instances. This amounted to 8.69 % of the blank instances and 16.7 % of the standard instances having failed the initial QA-QC review. Wherever, a standard or blank instance failure occurred within a certificate, reruns were performed on the failed instance as well as on the samples within the vicinity (half way to the next non failing standard or blank instance) of the failed instance. ‐ ‐ There were 180 samples re run, and further review of the reported re run results took place in order to eliminate concern of local issues with accuracy, sample contamination, or instrumentation problems.
‐ The standard results were reviewed in detail, and upon the re run of results in the vicinity of failed standard instances and the assignment of these results as superseding originals, it was inferred that there is a reasonable level of accuracy within the primary sample results reported by Accurassay.
It was recommend that future exploration at the Northshore project includes a similar quantity of standard instances but for fewer different standard materials. From the review, the apparent reliability of the standard materials is also inferred. It was recommended that standard materials with few failures at low, mid, and high gold concentrations be used in following exploration programs. In addition, future blank material should be similar in composition to the host rock, crushed to -3/4 to -1/2 inch, and it should be thoroughly analysed and certified barren. Similar, coarse-crushed blank material is necessary to fully duplicate the crushing and pulverizing process of the assay samples and identify if there is contamination in the preparation stage. Finely-ground blank material will drop between the crusher plates and not collect any possible contamination from the plates (Blanchflower, 2012).
Field Duplicates
Forty-nine core intervals were quartered and submitted for duplicate analyses within the primary sample batches for an insertion rate of 5.3 %.
The field duplicate pairs have been found to show a lack of repeatability. A scatter plot showed that there is no particular bias towards one or the other sample type being of higher or lower concentration. However, the precision is poor. It is very likely due to the nature of the mineralization at the Property, where the drill core halves are of varying concentrations, likely due to coarse mineralization locally and a resultant nugget effect. It will be beneficial to analyze the degree of coarse mineralization using screen fire assay techniques. The preparation of the duplicate samples might then be addressed, in order to maintain a “blind to the lab” representation of the repeatability within the reported results.
Such a nugget effect is quite common with this type of mesothermal vein mineralization and the discrepancies between original and duplicate sample analyses does not indicate a specific problem with either of the assay laboratories’ analytical procedures. Both assay laboratories regularly conducted internal sample duplication as part of their own QA/QC procedures but their samples are duplicates from the same
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sample pulp unlike quarter-cuts from the same sample interval. It is recommended that future duplicate sampling be conducted more frequently (Blanchflower, 2012).
Check-Assay Samples
Sixty-nine representative drill core samples were selected for secondary check assaying at SGS Canada Inc., Mineral Services in Toronto, Ontario using similar analytical or assaying techniques as those utilized originally at Accurassay Laboratories. The sample pulps for these samples were shipped directly from Accurassay Laboratories to SGS Canada.
SGS Canada reported an average gold value of 0.733 ppm for the check-assay samples versus an average original gold value of 0.849 ppm reported by Accurassay. The difference of the mean gold values is -0.11 ppm gold, but if a few anomalous results are excluded the average difference is only 0.034 ppm gold. Overall, it can be inferred through a review of the check sample results that there is no significant bias in the results reported by Accurassay” (Blanchflower, 2012).
Accurassay Laboratories’ QA/QC Procedures
In addition to the QA/QC procedures undertaken by GTA, Accurassay Laboratories also employs an internal quality control system that tracks certified reference materials and in-house quality assurance standards. Accurassay Laboratories uses a combination of reference materials, including reference materials purchased from CANMET, standards created in-house by Accurassay Laboratories and tested by round robin with laboratories across Canada, and ISO certified calibration standards purchased from suppliers.
Should any of the standards fall outside the warning limits (+/- 2SD); re-assays will be performed on 10% of the samples analyzed in the same batch and the re-assay values are compared with the original values. If the values from the re-assays match original assays the data is certified, if they do not match the entire batch is re-assayed. Should any of the standards fall outside the control limit (+/- 3SD) all assay values are rejected and all of the samples in that batch will be re-assayed.”
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2012 – 2013 Program
The following text applies to the procedures utilized by GTA during their 2012 and 2013 drilling programs, based upon information provided by GTA (Giroux and Blanchflower, 2014).
The 2012 and 2013 surface sampling and diamond drilling programs conducted by GTA utilized handling, logging, sampling, QA/QC, security and storage procedures compliant with current industry-standard practices and Canadian Institute of Mining and Metallurgy (‘CIM’) Standards and Guidelines (Giroux and Blanchflower, 2014). During 2012 surface grab and chip samples were collected by GTA-contracted field personnel from exposed mineralized quartz veins, quartz-carbonate stockwork structures and highly altered country rock material. The rock samples were correctly collected and described on site, and placed in a labelled 6-mil plastic sample bags with unique sample tags. The bagged samples were then transported to GTA’s field office in Schreiber for secure storage. They were then shipped via Greyhound Bus Parcel Express to the sample preparation and analytical facilities of AGAT Laboratories in Thunder Bay, Ontario where they were prepared and analyzed for their gold content.
AGAT Laboratories was accredited for specific tests as listed in the laboratory's scope of accreditation by the following organizations: The Standards Council of Canada (SCC), The Canadian Association for Laboratory Accreditation (CALA) and QMI-SAI Global. AGAT Laboratories is accredited to International Standards Organization ISO/IEC 17025:2005 and certified to International Standards Organization ISO 9001:2008.
The cores from the 2012 (Phases 2 and 3) and 2013 (Phases 4 and 5) drilling campaigns were placed in wooden boxes at each drill site and transported by either the drillers or the supervising geologist to GTA’s
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field office in Schreiber. There the core boxes were opened, and the core was gently washed clean of drilling fluids and accurately measured to determine core recoveries. After core recovery measurements the drill core was geologically logged for its lithology, structure, alteration and mineralization. These observations were recorded as written notes on pre-prepared log sheets. During the geological logging, the geologist marked the intervals of drill core that should be sampled, respecting lithological contacts and structural features.
The drill core was cut in half lengthwise using a diamond rock saw for those sections deemed worthy of sampling and analysis. One half of the sawn drill core was placed in a 6-mil sample bag and the other half of the drill core was returned to its correct position in the core box. A unique sample assay tag was placed in each core sample bag before the bag was securely sealed. The drill hole number, drilling interval, sample assay tag number were recorded for later transcribing to Chain of Custody documents that accompanied the samples to the assay laboratory. Quality control standard and blank samples were inserted into the sample sequence at an average rate of 1 standard and 1 blank per 20 drill core samples, representing approximately five percent of the total samples.
After the drill core had been properly logged and sampled the observations recorded on hand-written drill logs were input into a matrix-style spreadsheet for computerization. The core boxes were labelled with an embossed aluminum tag documenting the drill hole number, box number and drilled interval contained in each box. The core boxes were stored in pre-constructed core racks at GTA’s Schreiber warehouse.
The sealed, documented and bagged drill core samples were placed in larger ‘rice’ bags which were securely sealed and stored in a locked room within the GTA field office prior to their transportation to the assay laboratory. The samples were later shipped via Greyhound Bus Parcel Express from Schreiber to the sample preparation and analytical facilities of AGAT Laboratories in Thunder Bay or Sudbury, Ontario where they were prepared and analysed for their gold content. Sample shipping documents accompanied each drill core sample shipment and any differences between the shipping documents and that received by the laboratory were to be reported immediately to GTA. There were, however, no irregularities reported during each of the drilling campaigns.
It was the opinion of Giroux and Blanchflower (2014) that GTA’s 2012-2013 sample handling, storage and shipping procedures were good and compliant with current industry-standards.
11.3.1 2012 and 2013 Sample Analyses and Assays
At AGAT Laboratories the surface and drill core sample bags were opened, the sample information was recorded into the laboratory database, and the contents were dried in ovens at a low temperature. Dried samples are then weighed prior to being crushed in a jaw crusher to 75 percent less than 10 mesh, and 250 to 500 grams of the crushed material from each sample was split off using a Jones riffle. The remaining ‘reject’ crushed rock was returned to its original plastic sample bag and packed in containers for return to GTA at periodic intervals. The split sub-sample from each crushed rock sample was then pulverized to 85 percent less than -200 mesh with the + 200 mesh material being re-pulverized and re-screened, and a 30 gram portion was then extracted to use as a sample aliquot. Non-silica based sand is used to clean out the pulverizing dishes between each sample preparation to prevent cross contamination. According to AGAT, the following procedures were utilized to initially analyse the surface and drill core samples.
For initial gold analyses, the prepared split sub-samples are mixed with a lead-based flux and fused. Each sample has a silver solution added to it prior to fusion which allows each sample to produce a precious metal bead after cupellation. The fusing process results in lead buttons that contains all of the gold from the samples as well as the silver that is added. The buttons are then placed in a cupelling furnace where all of the lead is absorbed by the cupels and a silver bead, which contains any gold is left in each cupel. The cupels are removed from the furnace and allowed to cool. Once the cupels have cooled sufficiently, the silver bead from each is placed in an appropriately labeled test tube and digested using nitric and hydrochloric acid. The samples are bulked up to 5 ml with a combination of distilled de-ionized water and a
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1% digested lanthanum solution. The samples are allowed to cool and are mixed to ensure proper homogeneity of the solutions. Once the samples have settled, they are analyzed for gold using inductively coupled Plasma Optical Emission Spectroscopy (‘ICP-OES’). The PerkinElmer 7300DV and 8300DV ICPOES instruments are calibrated using the appropriate internal laboratory standards.
Any samples that returned gold values exceeding 10 ppm were re-assayed using gravimetric assay methods. The higher grade gold samples are mixed with a lead based flux and fused. Each sample has a silver solution added to it prior to fusion which allows each sample to produce a precious metal bead after cupellation. The fusing process results in lead buttons that contains all of the gold from the samples as well as the silver that is added. The buttons are then placed in a cupelling furnace where all of the lead is absorbed by the bone cupels and a silver bead, which contains any gold is left in each cupel. The cupels are removed from the furnace and allowed to cool. Once the cupels have cooled sufficiently, the silver bead from each is placed in an appropriately labeled porcelain cupel and digested using dilute nitric acid to remove the silver. The remaining sponge is rinsed with water and annealed using a torch to produce a gold bead. The gold bead is weighed on a Mettler Toledo XP6 microbalance. The results are checked and validated before a certificate is issued.
11.3.2 2012 and 2013 Sample Security
The 2012 surface samples and the 2012 and 2013 drill core samples were stored in a locked holding room prior to their shipment via Greyhound Bus Parcel Express directly to AGAT Laboratories in Thunder Bay or Sudbury, Ontario. Furthermore, all of the samples were securely sealed and Chain of Custody documents accompanied all shipments. The analytical results from these samples were received by authorized GTA personnel using secure digital transfer transmissions, and these results were restricted to qualified GTA personnel prior to their publication.
Upon completion of the drilling program the diamond drill core and assay sample rejects were catalogued and securely stored in GTA’s field office and core storage facility in Schreiber, Ontario.
11.3.3 2012 and 2013 Quality Assurance and Quality Control Procedures and Results
2012 and 2013 QA/QC Procedures
Prior to the Phase 1 2011 drilling program GTA established a strict Quality Assurance and Quality Control (‘QA/QC’) program utilizing quality control samples to monitor accuracy (i.e. sample standards), contamination (i.e. sample blanks), precision (i.e. duplicates) and other possible sampling errors (i.e. sample mislabelling). This same program was utilized during the subsequent 2012 and 2013 drilling programs (Giroux and Blanchflower, 2014).
The QA/QC protocol utilized on the project targeted an insertion rate of quality control samples at a rate of 5 percent to the assay laboratory. Thus, a quality control sample was supposed to be inserted randomly within every 20 consecutive samples, alternating between standard, blank or duplicate samples. The standard and blank samples were to be inserted into the sample sequence as the sample shipment was being readied. Any duplicate samples were inserted into the sample sequence at the time of collection. The quality control samples were similarly numbered as the primary samples and were not identified in any other manner.
Standard reference material (‘SRM’) samples were purchased in prepared 60-gram foil packets from CDN Resource Laboratories Ltd. in Langley, British Columbia. The blank reference material was white decorator stone purchased from a landscape firm that was crushed to fist-size pieces and thoroughly check assayed at AGAT Laboratories prior to its use. The QA-QC insertion rate was scheduled at approximately 1 of each type of QA-QC sample per every 20 drill core samples (i.e. approximately every assay batch). In addition,
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GTA submitted 263 duplicate core samples for screened fire metallic assays to compare and confirm the original assay results.
Figure 11-1 Summary of 2012-2013 QA-QC Sample Insertion Rates (Giroux and Blanchflower, 2014)
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2012 and 2013 QA/QC Results
Appendix II of this report contains the QA/QC report titled ‘Northshore Project 2012 and 2013 QAQC Report on Analytical Results’ by Caroline Vallat, P. Geo., and dated February 7, 2014 (Vallat, 2014). This report documents a detailed study of the 2012 and 2013 QA/QC results. The following text is quoted from the Summary and Conclusion section of QA/QC report.
Review of field duplicate pairs has shown that often have significant difference in gold concentrations. It is the author's opinion that with all things considered: the scatter charts do not show strong bias in the duplicate results, the lab internal QAQC shows strong precision, and the removal of 33 percent of the groups within the THPVC chart shows a near satisfactory precision percent, it is the author's opinion that the results of analysis reported by AGAT for the 2012 and 2013 exploration at the Northshore project are shown to have overall satisfactory precision considering the nature of the mineralization at the project.
A large number of screen fire metallic assays (SFA) took place on high grade samples. It is the author's opinion that the metallic screen fire results further infer that the field duplicate results have variation from the primary samples as a function of the nature of the mineralization. Overall, the screen fire assay results show no bias in the fire assay results.
The review of each of the many blank materials has found overall strong accuracy. In addition there has been no indication of significant ongoing sample contamination or instrument calibration difficulties.
The review of the standard instances of analysis has also inferred overall strong accuracy.
A representative set of samples was also analyzed at SGS for review of any potential bias in the results. Overall, it is the author's opinion that any mentioned significant differences noted between the primary samples analyzed by AGAT and the secondary check sample analyzed by SGS are likely a function of the nature of the project mineralization. The author feels that there is no significant bias overall inferred within the primary sample results.
This QAQC review of the 2012 and 2013 analytical results reported by AGAT for the Northshore project has shown overall satisfactory precision levels, strong accuracy, and no significant bias. In the author's opinion the analytical results can be considered of good quality for use.”
Giroux and Blanchflower (2014) agreed with the conclusions of Vallat (2014) and accepted full responsibility for the QA/QC work and results documented by Vallat (2014).
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2012 – 2013 AGAT Laboratories Ltd. and SGS Canada Inc. Accreditation
AGAT Laboratories is accredited for specific tests as listed in the laboratory's current scope of accreditation by the following organizations: The Standards Council of Canada (SCC), The Canadian Association for Laboratory Accreditation (CALA) and QMI-SAI Global. AGAT Laboratories is accredited to International Standards Organization ISO/IEC 17025:2005 and certified to International Standards Organization ISO 9001:2008 (http://www.agatlabs.com/about/accreditation.cfm).
SGS Canada, Mineral Services, Lakefield facilities conform to requirements of CAN-P-1579 (Requirements for the Accreditation of Mineral Analysis Testing Laboratories, CAN-P-4E (ISO 17025:2055).
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2016 Drill Program
As discussed in Section 6 above, in 2016 GTA completed two phases of drilling. A total of 51 (NQ size) holes (1,463 m) were completed. Results of this drilling were announced in two separate press releases dated August 22, 2016 and November 1, 2016, posted on SEDAR. In the press releases it states:
GTA has implemented a quality control program for the drill programs on the Northshore Property to ensure best practice in sampling and analysis. GTA maintains strict quality assurance/quality control protocols including the systematic insertion of certified standard reference and blank materials into each sample batch. Analyses in this release were performed by Actlabs in Thunder Bay, Ontario with ISO 17025 accreditation. Samples are transported in sealed bags to Actlabs and all samples were assayed using industry-standard assay techniques for gold. Gold was analyzed by a standard 30 gram fire assay with an AA and/or gravimetric finish.
The planning, execution and monitoring of GTA’s exploration programs on the Northshore Project are under the supervision of Robert (Bob) Duess, P. Geo. (Ontario), VP Exploration of GTA. Mr. Duess is a qualified person as defined by National Instrument 43-101 and is also the Qualified Person for this release. Mr. Duess has supervised the work programs on the Northshore Property, supervised the collection of the samples and drill core described herein and reviewed the assays and QA/QC data.
Drill core was logged by Robert Duess, and /or Michael Tremblay. Drill core is currently being stored at the core shack facilities in Schreiber.
As of the effective date of this report, no additional information regarding sample preparation, analyses, and security regarding the 2016 drill program has been provided to the Authors and the results of the 2016 QA/QC sample program have not been provided or reviewed by the Authors.
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2018 Drill Program
As discussed in Section 6 above, during the period ending December 31, 2018, GTA completed a 3-hole, 1,161 meter drill program on the Property. The program included two long holes that tested the Afric Gold Deposit beneath the previously outlined 2014 mineral resource (Figure 6-12). Results of this drilling were announced in a press releases by GTA dated February 25, 2019, posted on SEDAR. In the press releases it states:
GTA has implemented a quality control program for the drill programs on the Northshore Property to ensure best practice in sampling and analysis. GTA maintains strict quality assurance/quality control protocols including the systematic insertion of certified standard reference and blank materials into each sample batch. Analyses in this release were performed by AGAT labs in Thunder Bay and Mississauga, Ontario with ISO 17025 accreditation. Samples were transported in sealed bags to AGAT and all samples were assayed using industry-standard assay techniques for gold. Gold was analyzed by a standard 30 gram fire assay with an AA and/or gravimetric finish.
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Wayne Reid, P. Geo., Director and VP Exploration for GTA and a Qualified Person as defined in National Instrument 43-101, was involved in the planning, execution and monitoring of GTA's exploration program at Northshore.
As of the effective date of this report, no additional information regarding sample preparation, analyses, and security regarding the 2018 drill program has been provided to the Authors and the results of the 2018 QA/QC sample program have not been provided or reviewed by the Authors.
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12 DATA VERIFICATION
The following section summarise the data verification procedures that were carried out and completed and documented by the Authors for this technical report.
The Authors have reviewed geological reports and miscellaneous technical papers, and other public information as listed in Section 27 (References). In addition, the Author have reviewed company news releases and MD&A’s which are posted on SEDAR (The System for Electronic Document Analysis and Retrieval).
The Authors have conducted an extensive review of all of the Property technical information and assumes that all of the information and technical documents reviewed and listed in the “References” and posted on SEDAR are accurate and complete in all material aspects.
Authors have reviewed the drill hole database provided (GEMS database used for the 2014 MRE and updated to include 2016 and 2018 drill data) and verifications of the drill hole database have been completed by the Authors. The Authors conducted verification of the laboratories analytical certificates (2011 to 2018) and validation of the Project digital database supplied by Omni for errors or discrepancies. A minimum of 20% of the digital assay records were randomly selected and checked against the laboratory assay certificates. A comparison of 30 mineralized intervals disclosed in 2011, 2012, 2013, 2016 and 2018 GTA press releases with analytical data in the digital database found no discrepancy.
Verifications were carried out on drill hole locations (i.e. collar coordinates) in the GEMS database with what has been presented in reports. There were no errors noted in the database. All drill holes have been professionally surveyed, including the 2016 and 2018 drill holes by TBT Engineering of Thunder Bay Ontario.
The Authors have reviewed the results of the QA/QC for drilling completed to the end of 2014. Although GTA implemented a comprehensive QA/QC program for the 2016 and 2018 drill programs, completed since the last Property mineral resource estimate completed by Giroux and Blanchflower (2014), the Authors have not reviewed the QA/QC results as this data was not available as of the effective date of this report. However, based on results of previous programs carried out by GTA, the Authors have no reason to believe that the 2016 and 2018 data is not of good quality and that the QA/QC sampling of the drill core does not provide adequate and good verification of the data. The results of the QA/QC program carried out during the 2016 and 2018 drill programs will need to be compiled and reviewed before publication of a revised MRE.
The Authors are of the opinion that the assay sampling program and extensive QA/QC sampling of core by previous issuers provides good verification of the data and that previous issuers operated according to industry standards at the time.
The Authors recommend that when Omni initiates exploration on the Property, it continue to implement a comprehensive QA/QC program that include the insertion of certified reference materials (standards), duplicates and sample blanks. Check assays should also be submitted to a second (umpire) laboratory.
The Authors recommend that upon completion of the next drill program, Omni complete a revised mineral resource estimate incorporating current drill data, historical drill data and drill data from the 2011 to 2018 drill programs by GTA. The Authors recommend Omni complete an extensive review of the results of all QA/QC programs for drill programs from 2011.
In addition, as described below, Vadnais-Leblanc conducted a site visit and sampling activities to better evaluate the veracity of the data.
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Site Inspection
Vadnais-Leblanc conducted a site visit to the Property on June 25 and June 26, 2020. Vadnais-Leblanc inspected the office, core logging and sampling facilities and core storage area in Schreiber. VadnaisLeblanc conducted a field tour of the Property area including a visit to the main Afric deposit area, and a number of drill sites. During the field component of the site visit, Vadnais-Leblanc was accompanied by Douglas Moses, the economic development officer of Pays Plat first nation and representing Omni. Douglas Moses worked on the project for the 2012 and 2013 drilling campaign.
There is currently no exploration or mining activities on the Property and Omni has completed no exploration on the Property to date. As a result, there was no opportunity for Vadnais-Leblanc to personally view the entire path of the drill core, from the drill rig to the logging and sampling facility and finally to the laboratory.
In the field, Vadnais-Leblanc observed and measured the location of 26 drill hole casings with a hand-held GPS (Garmin GPS Map 62s). Unfortunately, none of the drill hole casings were identified with a drill hole number. Most of the casings had a metal flag on them but some only had a lid or just a wooden stick in it. Because no casing was properly identified, a cross reference between the XYZ coordinates measured during the site visit and the coordinates from the database was completed. All measured coordinates were matched to a hole in the database (2012, 2013 and 2016). It will be imperative for Omni to locate and properly label all drill sites. As mentioned above, all drill sites from the 2011 to 2018 drill programs have been professionally surveyed.
During the site visit one of the three adits built in the 1930’s was located. The entrance is still accessible.
During the site visit Vadnais-Leblanc was given access to the core shack in Schreiber by a municipal employee. Vadnais-Leblanc personally laid out and examined 11 selected mineralized core intervals from 11 diamond drill holes from the 2012, 2013 and 2016 drill programs. Vadnais-Leblanc examined accompanying assay certificates and assays were examined against the drill core mineralized zones. Vadnais-Leblanc inspected the offices, core logging and sampling facilities and core storage areas.
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Conclusion
All geological data has been reviewed and verified by Authors as being accurate to the extent possible and to the extent possible all geologic information was reviewed and confirmed. There were no errors or issues identified with the database.
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13 MINERAL PROCESSING AND METALLURGICAL TESTING
On August 29, 2016 GTA reported preliminary metallurgical testing from the Property (see GTA news release dated August 29, 2016, posted on SEDAR). Results from two composited drill core samples, one from core of the Afric Zone and one from core of the high-grade Audney vein system, returned peak gold recoveries of 96.3% and 99.5% respectively.
Preliminary metallurgical test work was conducted on two composited drill core samples to determine potential gold recoveries. The preliminary metallurgical work was performed by Act Labs in Thunder Bay, and consisted of standard cyanide bottle roll testing with atomic absorption analysis for gold. Sample “A” weighed 43.9 kg and had an assayed head grade varying from 2.65 to 2.93 g/t gold. Sample “D”, from the high-grade Audney vein system, weighed 9.6 kg and had an assayed head grade varying from 11.6 to 10.9 g/t gold.
These results indicated that the mineralization is free milling and excellent recoveries can be made using conventional cyanidation. A full version of the Gold Cyanidation Report from Act Labs is presented below. Act Labs in Thunder Bay, Ontario with ISO 17025 accreditation. Peak recovery was achieved after 24 hours for sample D at 99.5%. Sample A reached 94.8% recovery in 24 hours, peaking at 96.3% after 48 hours. Cyanide and lime consumption during the tests are considered by ACT Labs to be fairly average (ACTLABS, 2016).
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Gold Cyanidation Report – Act Labs 2016
13.1.1 Objective
Cyanide bottle roll tests were used to determine the % extraction of gold by cyanide and provide leach kinetic data as well as the cyanide and the lime consumption for two composite samples from the Property.
13.1.2 Procedure
Two composite samples were prepared using assay reject sample.
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Approximately 500 g of each composite sample was representatively split and pulverized to 95% - 105 micron to perform the cyanidation tests. Duplicate head splits were also taken for fire assay.
The tests were performed at 50% solids with approximately 500 g of sample added to ±500 g of Ca(OH)2 ( hydrated lime) solution. The pH was measured to ensure the solution pH remained above 10.5 and additional lime was subsequently added to sample A to achieve this. NaCN was added at an initial concentration of 1.0 g/L NaCN.
The samples were rolled for a total of 48 hours. At 2, 4, 6, 8, 24 and 48 hour intervals a sample of solution was removed and a portion was titrated to measure free cyanide, evaluate CN- and lime consumption. An aliquot of the solution sample was retained for Au analysis. Appropriate additions of lime solution or lime were added to the bottle to restore volume and maintain pH and NaCN was added to maintain the initial NaCN concentration.
After the leach time had elapsed, the slurry was filtered and a solution sample taken. The solid residue was washed, filtered and dried.
The leach solutions were analyzed using atomic absorption for gold. A sample of the leach solid residue was assayed using 1A2 fire assay and atomic absorption for gold.
The assayed head grades are shown with duplicate values within 10%.
| Sample | Dup 1 Au (g/t) | Dup 2 Au (g/t) |
|---|---|---|
| Composite A | 2.65 | 2.93 |
| Composite D | 11.6 | 10.9 |
The bottle roll test results show that 96.3% and 99.3% of the gold was leached within 48 hours.
| Sample | Time(hours) | Au(ppm) | % Recovery |
|---|---|---|---|
| Composite A |
0 2 4 6 8 24 48 Leach Residue |
0.00% 41.30% 53.10% 64.20% 71.80% 94.80% 96.30% --- |
|
| 0 | |||
| 1.68 | |||
| 2.05 | |||
| 2.36 | |||
| 2.5 | |||
| 3.27 | |||
| 3.1 | |||
| 0.15 | |||
| Composite D |
0 2 4 8 12 24 48 |
0.00% 49.70% 62.10% 72.70% 80.40% 99.50% 99.30% --- |
|
| 0 | |||
| 5.67 | |||
| 6.7 | |||
| 7.46 | |||
| 7.83 | |||
| 9.47 | |||
| 8.83 | |||
| Leach Residue |
0.077 |
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The solution profile below indicates that at least 24 hours is required to recover the majority of the gold with incremental changes after this period.
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The cyanide and lime consumption can be summarized as:
| Sample | Cyanide Consumption (kg/ton) | Lime Consumption (kg/t) |
|---|---|---|
| Composite A | 2.02 | 0.46 |
| Composite D | 1.77 | 0.22 |
The cyanide and lime consumption is considered fairly average.
13.1.3 Discussion of Results
This result indicates that the ore is free milling and excellent recoveries can be made using conventional cyanidation (ACTLABS, 2016).
The tests were conducted using a cyanide concentration of 1g/L to ensure that adequate cyanide was used for these initial tests. The residual cyanide titrations indicate that a comparable recovery is likely also achievable using a lower initial/maintained cyanide concentration.
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14 MINERAL RESOURCE ESTIMATE
Omni has yet to complete a MRE on the Property. Historic resource estimates are described in Section 6: History.
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15 MINERAL RESERVE ESTIMATES
There are no Mineral Reserve estimates stated on this Property. This section does not apply to this Technical Report.
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16 MINING METHODS
This section does not apply to this Technical Report.
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17 RECOVERY METHODS
This section does not apply to this Technical Report.
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18 PROJECT INFRASTRUCTURE
This section does not apply to this Technical Report.
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19 MARKET STUDIES AND CONTRACTS
This section does not apply to this Technical Report.
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20 ENVIRONMENTAL STUDIES, PERMITTING AND SOCIAL OR COMMUNITY IMPACT
This section does not apply to this Technical Report.
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21 CAPITAL AND OPERATING COSTS
This section does not apply to this Technical Report.
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22 ECONOMIC ANALYSIS
This section does not apply to this Technical Report.
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23 ADJACENT PROPERTIES
There is no information on properties adjacent to the Northshore Property necessary to make this technical report understandable and not misleading.
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24 OTHER RELEVANT DATA AND INFORMATION
There is no other relevant data or information available that is necessary to make the technical report understandable and not misleading. To the Authors’ knowledge, there are no significant risks and uncertainties that could reasonably be expected to affect the reliability or confidence in the exploration information.
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25 INTERPRETATION AND CONCLUSIONS
SGS was contracted by Omni to complete an updated NI 43-101 Technical Report for the Northshore Gold Property in the Priske Township, Thunder Bay District of Ontario, Canada.
In June 2020, Omni entered into two separate mineral property purchase agreements to acquire an aggregate 100% ownership of the Property. On June 24, 2020, Omni announced that it has entered into a definitive Mineral Property Purchase Agreement dated June 22, 2020 with Balmoral, a 100% subsidiary of Wallbridge Mining Company Limited (TSX:WM), an Ontario corporation which has its common shares listed on the Toronto Stock Exchange. Omni has agreed to acquire Balmoral’s right, title and interest in and to its 44% joint venture interest in the Property on the terms in the Agreement. Omni announced on June 1, 2020, that it entered into a definitive mineral property purchase agreement with CBLT to acquire CBLT’s 56% joint venture interest in the Property. Upon completion of the transactions with Balmoral and CBLT, Omni would own 100% of the Property.
Omni is currently an unlisted reporting issuer. As a result of the 100% purchase of the Property, Omni is seeking to list its common shares on the Canadian Securities Exchange (“CSE”). The current technical report regarding the Property is to be filed with an application by Omni for a listing on the CSE and the report will be used by Omni in partial fulfillment of their disclosure requirements under Canadian securities laws, including National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”). The effective date of this report is July 10, 2020.
A total of 154 diamond drill holes, totalling 22,171 metres of drilling, have been completed on the Property of which 47 drill holes, totalling 8,157 metres, were completed during historic exploration work by Noranda, Cyprus Canada and American Bonanza. These earlier operators identified six mineralized zones, including the east-west trending Afric, Northshore and No. 3 Zones and the east-northeasterly to northeasterly trending No. 2, 4 and 5 Zones.
Since September, 2011 GTA has completed 107 diamond drill holes, totalling 14,014 metres of NQ-size core drilling between 2011 and 2018. This drilling has been largely focused on testing the gold mineralization within the Afric Zone. Current drilling results show that this zone underlies an area measuring at least 500 by 350 metres and the gold bearing mineralization has been shown to extend vertically to at least a depth of 350 metres beneath the surface. The Afric Zone remains open for expansion both at depth and to the northeast. In addition, the Gino vein structure hosts significant gold-bearing mineralization and is situated 250 m north of the Afric Zone.
The Property contains a historic MRE. A NI 43-101 Technical report on the Property was written by Giroux Consultants Ltd. and Minorex Consulting Ltd. in 2014 (Giroux and Blanchflower, 2014) and was titled “Technical Report On the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada”, dated June 30, 2014. The report was written for GTA Resources and Mining Inc., now GTA Financecorp. The 2014 Technical Report included a maiden MRE for the Afric Zone.
At a cut-off grade of 0.50 grams gold per tonne, GTA reported that the Afric zone contained 391,000 ounces gold in 12,360,000 tonnes at a grade of 0.99 g/t gold in the Indicated category, and 824,000 ounces gold in 29,580,000 tonnes at a grade of 0.87 g/t gold in the Inferred category. The drilling and assay data base was comprised of 100 drill holes (1990 to 2013). A broad mineralized solid was utilized to constrain the resource estimation within the Afric Zone which was constructed from vertical and horizontal cross sections spaced 25 metres apart using Gemcom software.
The results of the 2014 MRE are tabulated for a series of gold cut-off values for the percentage of blocks within the mineralized solid (Table 25-1). These tables assume no dilution from any external waste or dyke material and assumes a recovery of 100%. The gold cut-off of 0.50 g/t is based upon current metal prices at the time and regional operating expenses for projects with excellent existing infrastructure.
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The reader is cautioned that the Authors have not done sufficient work to pass detailed comment on the MRE and classification presented in this report and hence the MRE is considered historic. While these estimates were prepared, in accordance with National Instrument 43-101 (2011) and reported according to the Canadian Institute of Mining, Metallurgy and Petroleum Standards on Mineral Resources and Mineral Reserves Definition Guidelines in effect at the time (2005), there is no assurance that they are in accordance with current CIM 2014 Mineral Resource reporting standards (2014) and the MRE should not be regarded as consistent with current standards or unduly relied upon as such.
The historic MRE presented in this report is only presented for information purposes as they represent material historical data which have previously been publicly disclosed. To the Authors’ knowledge, the 2014 MRE for the Property is the most recent MRE available regarding the Property.
The 2014 technical report was the most recent and most comprehensive study of the Property at the time. In order to update the 2014 MRE to a current MRE the following needs to be done:
-
The 51 drill holes completed by GTA in 2016 and the 3 holes completed by GTA in 2018 will need to be added to the database.
-
The assay data for the 2016 and 2018 will need to be verified and validated and the results of the QA/QC procedures will need to be reviewed.
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Resource wireframe models will need to be updated to include the most recent drilling.
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The results of the 2016 metallurgical testing by GTA will need to be considered when reporting an updated MRE.
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An updated MRE for the Property will need to be prepared and disclosed in compliance with all current disclosure requirements for mineral resources set out in the NI 43-101 Standards of Disclosure for Mineral Projects. The classification of the current MRE’s into Inferred is consistent with current (2014) CIM Definition Standards - For Mineral Resources and Mineral Reserves, including the critical requirement that all mineral resources “have reasonable prospects for eventual economic extraction”.
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Table 25-1 Northshore Property Historical Mineral Resource Estimates – June, 2014 (Giroux and Blanchflower, 2014)
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Data Verification
As part of the verification process, the Authors have reviewed geological reports and miscellaneous technical papers, and other public information as listed in Section 27 (References). In addition, the Author have reviewed company news releases and MD&A’s which are posted on SEDAR (The System for Electronic Document Analysis and Retrieval).
The Authors have conducted an extensive review of all of the Property technical information and assumes that all of the information and technical documents reviewed and listed in the “References” and posted on SEDAR are accurate and complete in all material aspects.
Authors have reviewed the drill hole database provided (GEMS database used for the 2014 MRE and updated to include 2016 and 2018 drill data) and verifications of the drill hole database have been completed by the Authors. The Authors conducted verification of the laboratories analytical certificates (2011 to 2018) and validation of the Project digital database supplied by Omni for errors or discrepancies. A minimum of 20% of the digital assay records were randomly selected and checked against the laboratory assay certificates. A comparison of 30 mineralized intervals disclosed in 2011, 2012, 2013, 2016 and 2018 GTA press releases with analytical data in the digital database found no discrepancy.
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Verifications were carried out on drill hole locations (i.e. collar coordinates) in the GEMS database with what has been presented in reports. There were no errors noted in the database. All drill holes have been professionally surveyed, including the 2016 and 2018 drill holes by TBT Engineering of Thunder Bay Ontario.
The Authors have reviewed the results of the QA/QC for drilling completed to the end of 2014. Although GTA implemented a comprehensive QA/QC program for the 2016 and 2018 drill programs, completed since the last Property mineral resource estimate completed by Giroux and Blanchflower (2014), the Authors have not reviewed the QA/QC results as this data was not available as of the effective date of this report. However, based on results of previous programs carried out by GTA, the Authors have no reason to believe that the 2016 and 2018 data is not of good quality and that the QA/QC sampling of the drill core does not provide adequate and good verification of the data. The results of the QA/QC program carried out during the 2016 and 2018 drill programs will need to be compiled and reviewed before publication of a revised MRE.
The Authors are of the opinion that the assay sampling program and extensive QA/QC sampling of core by previous issuers provides good verification of the data and that previous issuers operated according to industry standards at the time.
All geological data has been reviewed and verified by Authors as being accurate to the extent possible and to the extent possible all geologic information was reviewed and confirmed. There were no errors or issues identified with the database.
Vadnais-Leblanc conducted a site visit to the Property on June 25 and June 26, 2020. Vadnais-Leblanc inspected the office, core logging and sampling facilities and core storage area in Schreiber. VadnaisLeblanc personally laid out and examined 11 selected mineralized core intervals from 11 diamond drill holes from the 2012, 2013 and 2016 drill programs. Vadnais-Leblanc examined accompanying assay certificates and assays were examined against the drill core mineralized zones. Vadnais-Leblanc inspected the offices, core logging and sampling facilities and core storage areas. Vadnais-Leblanc conducted a field tour of the Property area including a visit to the main Afric deposit area, and a number of drill sites.
There is currently no exploration or mining activities on the Property and Omni has completed no exploration on the Property to date. As a result, there was no opportunity for Vadnais-Leblanc to personally view the entire path of the drill core, from the drill rig to the logging and sampling facility and finally to the laboratory.
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Risks and Opportunities
The 2014 MRE completed on the Property by Giroux Consultants Ltd. and Minorex Consulting Ltd. P&E is considered historic with respect to Omni. The MRE was completed before OMNI entered into two separate mineral property purchase agreements to acquire an aggregate 100% ownership of the Property. Omni has not done sufficient work to classify the historical estimate as a current Mineral Resource Estimate and Omni is not treating the historical estimate as a current MRE. However , based on a review of the Property database, it is reasonably expected that with further work by Omni, including a re-analysis and validation of the complete drill hole database, QA/QC procedures and results, and reviewing and upgrading the 3D wireframe grade control models the historical MRE will become a current MRE with respect to Omni.
The majority of the historical resources are in the Inferred Mineral Resource classification. The Inferred Resource is based on limited information and although it is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Indicated or Measured Mineral Resources with further exploration, it is not guaranteed.
There is an opportunity on the Project to extend known mineralization laterally and at depth, and elsewhere on the Property. Omni’s intentions are to direct their exploration efforts towards Mineral Resource growth
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in 2020-2021 with a focus on extending the limits of known mineralization and testing other targets on the Property to identify additional resources.
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26 RECOMMENDATIONS
The Afric Zone (Audney, Caly and Caly North veins) of the Northshore Property contains a potentially openpitable historic Indicated and Inferred MRE. The Afric zone is open along strike and at depth. In addition to the Afric Zone, additional gold-bearing structures, including Zones 2, 3, 4, 5, Gino Vein and the past producing Northshore Zone, have been identified on the Property.
The Authors consider that the Property has potential for delineation of additional Mineral Resources (including open-pitable, and underground bulk-minable or high grade narrow vein) and that further exploration is warranted. After discussions between Omni and the Authors an Exploration Plan for the Property is proposed, to be implemented by Omni. A proposed program and budget for the fourth quarter of 2020 to first quarter of 2021 is outlined below (Table 26-1). Exploration programs on the Property have generally been completed in seasonal campaigns, with surface mapping, stripping, channel sampling and prospecting done through to mid-November; drilling can be completed from January to March. Geophysics as well as preparatory work for drilling (access and drill site building) can be completed throughout the year.
The Authors have reviewed the proposed program for further work on the Property and, in light of the observations made in this report, supports the concepts as outlined. Given the prospective nature of the Property, it is the Authors opinion that the Property merits further exploration and that proposed plans for further work are justified. The current proposed work program will help advance the Property and will provide key inputs required to evaluate the economic viability of a mining project on the Property.
The Authors recommend that Omni conduct the further exploration as proposed, subject to funding and any other matters which may cause the proposed exploration program to be altered in the normal course of its business activities or alterations which may affect the program as a result of exploration activities themselves.
Proposed Budget Phase 1:
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Geological compilation of the current database, claim package and update current 3D interpretation for specific planning purposes
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Surface stripping and channel sampling of the Afric Zone and other potential targets on the Property
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Detailed geological and structural mapping of the stripped areas
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Detailed structural logging of recent drill core (2011-2018); mapping vein structures
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Approximately 4,000 metres of drilling, split between drilling the Afric Zone, and drilling zones/new targets outside of the Afric Zone. The focus of the drilling on the Afric Zone will be on extending the limits of known mineralization along strike and at depth.
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Revised mineralogical model based on geological and structural mapping and new drilling
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Revised MRE estimate and Technical Report in support of the revised MRE, to include results of drilling completed in 2016 and 2018 by GTA and current drilling completed by Omni.
Once the phase 1 drill program is complete the geological team will assess the new data and proceed to phase 2 which will be success driven based on phase 1, and subject to funding. Phase 2 to include but not limited to geophysical surveys (magnetic, induced polarization surveys), additional drilling, additional metallurgical test work, geotechnical logging and an updated MRE and Preliminary Economic Assessment.
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Table 26-1: Recommended Phase 1 Q4 2020 – Q1 2021 Work Program by Omni
| h k | **2020Q4 – 2021Q1 ** | **2020Q4 – 2021Q1 ** |
|---|---|---|
| Pase 1 Wor Program | Total Work | Total Cost($CDN) |
| Complete Data Compilation | $25,000 | |
| Detailed Mapping | $20,000 | |
| Structural Analysis | $15,000 | |
| Surface Stripping | $23,000 | |
| Surface Channel Sampling | $5,000 | |
| Surface AssaySamples | 200 | $6,000 |
| Core Drilling Surface | ||
| Total Meters Drilling (22-28 holes, 100-300 m) | 4,000 | |
| Total Assays (~ 50% of meterage) | 2,000 | |
| QAQC Samples | 400 | |
| Total Assaysamples | 2,400 | |
| Direct drillingcosts | $400,000 | |
| Indirect drillingcosts | $85,000 | |
| AssayCosts | $72,000 | |
| Core LoggingSupplies | $5,000 | |
| GeoTech Cut/Sample(2persons) | $20,000 | |
| GeoTech Cut/Sample Supplies | $5,000 | |
| Geologystaff | $50,000 | |
| Contract Services | $30,000 | |
| CompanyTruck | $8,000 | |
| Geological Consultants | $40,000 | |
| Computers/Software | $20,000 | |
| Technical Reporting | $50,000 | |
| Baseline Environmental | $30,000 | |
| Sub-Total: | $909,000 | |
| Contingency (10%) | $91,000 | |
| Total: | $1,000,000 |
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27 REFERENCES
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ACTLABS, 2016. Gold Cyanidation Report for GTA Resources and Mining Inc. (A16-08000). Prepared by: Metallurgy Manager, Actlabs, Thunder Bay, Ontario, Aug 23, 2016
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Blanchflower, J. D., 2012: Technical Report on the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada’, private technical report prepared for GTA Resources and Mining Inc., dated May 22, 2012, 157 pages.
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Carter, M. W., 1988: Geology of Schreiber-Terrace Bay area, District of Thunder Bay; Ontario Geological Survey, Open File Report 5692, 287p. 14 photos, 19 figures, 27 tables, l appendix, and 5 maps.
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Drost, A. P., 1997: Report on Surface Exploration and Diamond Drilling, Northshore Property; private report prepared for Cyprus Canada Inc., November 7, 1997, 12 pages plus maps.
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Dubé, B. and Gosselin, P. 2007. Greenstone-hosted quartz-carbonate vein deposits. In Goodfellow, W.D., ed. Mineral Deposits of Canada: A Synthesis of Major Deposit-Types, District Metallogeny, the Evolution of Geological Provinces, and Exploration Methods. Geological Association of Canada, Mineral Deposits Division, Special Publication No. 5, pp.49-73.
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Giroux, G and Blanchflower, J.D., 2014. Technical Report On the Mineral Resources of the Northshore Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada, dated June 30, 2014. Report written for GTA Resources and Mining Inc., by Giroux Consultants Ltd. and Minorex Consulting Ltd., 169 p.
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LeGrand, M., 2008: Report on Exploration Campaigns 2006 and 2007, private report prepared for American Bonanza Gold Corp., Volumes 1 and 2, 279 pages and maps, submitted for assessment credit September 12, 2008.
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Vallat, C., 2012: Northshore Project QAQC Report on 2011 Analytical Results, private report prepared for GTA Resources and Mining Inc., dated March 9, 2012, 26 pages.
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Vallat, C., 2014: Northshore Project 2012 and 2013 QAQC Report on Analytical Results, private report prepared for GTA Resources and Mining Inc., dated February 7, 2014, 39 pages.
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28 DATE AND SIGNATURE PAGE
This report titled “Technical Report on the Northshore Gold Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada” dated November 20, 2020 (the “Technical Report”) for Omni Commerce Corp. was prepared and signed by the following authors:
The effective date of the report is July 10, 2020. The date of the report is November 20, 2020.
Signed by:
Qualified Person Allan Armitage, Ph.D., P. Geo.,
Company
SGS Canada Inc. (“SGS”)
Qualified Person Olivier Vadnais-Leblanc, B.Sc., géo.
Company
SGS Geological Services (“SGS”)
November 20, 2020
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29 CERTIFICATES OF QUALIFIED PERSONS
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QP CERTIFICATE – ALLAN ARMITAGE
To Accompany the Report titled “Technical Report on the Northshore Gold Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada” dated November 20, 2020 (the “Technical Report”) for Omni Commerce Corp.
I, Allan E. Armitage, Ph. D., P. Geol. of 62 River Front Way, Fredericton, New Brunswick, hereby certify that:
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I am a Senior Resource Geologist with SGS Canada Inc., 10 de la Seigneurie E blvd., Unit 203 Blainville, QC, Canada, J7C 3V5 (www.geostat.com).
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I am a graduate of Acadia University having obtained the degree of Bachelor of Science - Honours in Geology in 1989, a graduate of Laurentian University having obtained the degree of Masters of Science in Geology in 1992 and a graduate of the University of Western Ontario having obtained a Doctor of Philosophy in Geology in 1998.
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I have been employed as a geologist for every field season (May - October) from 1987 to 1996. I have been continuously employed as a geologist since March of 1997.
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I have been involved in mineral exploration and resource modeling for gold, silver, copper, lead, zinc, nickel, and uranium in Canada, United States, Mexico, Honduras, Chile, Cuba, Mali and Peru at the grass roots to advanced exploration stage since 1991, including resource estimation since 2006.
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I am a member of the Association of Professional Engineers, Geologists and Geophysicists of Alberta and use the title of Professional Geologist (P.Geol.) (License No. 64456; 1999), I am a member of the Association of Professional Engineers and Geoscientists of British Columbia and use the designation (P.Geo.) (Licence No. 38144; 2012), I am a member of The Association of Professional Geoscientists of Ontario (APGO) and use the designation (P.Geo.) (Licence No. 2829; 2017).
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I have read the definition of "Qualified Person" set out in National Instrument 43-101 (“Nl 43-101") and certify that by reason of my education, affiliation of my professional association and past relevant work experience, I fulfill the requirements to be a "Qualified Person".
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I am responsible for 1, 2 to 8, 13, 24, 25 and 26. I have reviewed these sections and accept professional responsibility for these sections of this technical report.
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7 I have not visited the Northshore Property.
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8 I have had no prior involvement in the Northshore Property.
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9 I am independent of Omni Commerce Corp. as defined by Section 1.5 of NI 43-101.
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10 As of the date of this certificate, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.
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11 I have read NI 43-101 and Form 43-101F1 (the “Form”), and the Technical Report has been prepared in compliance with NI 43-101 and the Form.
Signed and dated this 20[th] day of November, 2020 at Fredericton, New Brunswick.
“Original Signed and Sealed”
Allan Armitage, Ph. D., P. Geo., SGS Canada Inc.
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QP CERTIFICATE – OLIVIER VADNAIS-LEBLANC
To Accompany the Report titled “Technical Report on the Northshore Gold Property, Thunder Bay Mining Division, Priske Township, Ontario, Canada” dated November 20, 2020 (the “Technical Report”) for Omni Commerce Corp.
I, Olivier Vadnais-Leblanc, B.Sc., géo. of 5427 Lafond, Montréal, QC do hereby certify that:
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I am a Project Geologist with SGS Canada Inc. (SGS Geostat), located at 10 boul. de la Seigneurie E, Unit 203, Blainville, Québec, Canada, J7C 3V5.
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I graduated with a Bachelor degree in Geology from UQAM in 2006 and have practiced the profession of geoscience since graduation. I have previously worked with Les Mines Opinaca (Goldcorp) from 2006 to 2016. From 2016 to 2017 I worked as a Geologist for Englobe. I have a total of 12 years’ experience in the mining industry including a background in international mineral exploration, and production geology. Additional experience includes ground support surveillance for the digging of tunnels.
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I am a registered Professional Geologist (géo.) registered with the Ordre des Géologues du Québec (No. 1082).
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I have read the definition of “qualified person” set out in National Instrument 43-101 (“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.
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I have completed a site visit to the Northshore Property that is the subject of this technical report on June 25 and June 26, 2020..
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I am an author of this report and responsible for sections 11 and 12 of the Technical Report. I have reviewed these sections and accept professional responsibility for these sections of this Technical Report.
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I have no prior involvement with Omni Commerce Corp., their Principals or their shareholders.
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I am independent of Omni Commerce Corp. as defined in section 1.5 of National Instrument 43-101.
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I have had no prior involvement with the Northshore Project that is the subject of this report. I have read NI 43-101 and Form 43-101F1 and the Report has been prepared in compliance therewith.
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As of the date of this certificate, to the best of my knowledge, information and belief, the Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.
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I consent to the filing of the Technical Report with any stock exchange and other regulatory authority and any publication by them, including electronic publication in the public company files on their websites accessible by the public, of the Technical Report.
Signed and dated this 20[th] day of November, 2020
“Original Signed and Sealed”
________ Olivier Vadnais-Leblanc, B.Sc., géo.
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