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West Mining Corp. Regulatory Filings 2021

May 11, 2021

47528_rns_2021-05-11_ab1f83a7-8e0d-4c6f-a539-16def2d9cc18.pdf

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West Mining Kena Project

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NI 43-101

RESOURCE ESTIMATE FOR THE KENA AND DAYLIGHT PROPERTIES

Nelson Mining Division, British Columbia Map sheets: 82F.034, 82F.035, 82F.044, 82F.045 Latitude 49°26’N, Longitude 117°17'E

Centered at 5474150N, 481000E (NAD 83L Zone 11)

Submitted to: West Mining Corporation Effective Date: March 25, 2021 Date of Issue: May 3, 2021

Moose Mountain Technical Services

Sue Bird, P. Eng.

210 1510-2[nd] St. North Cranbrook, B.C. V1C 3L2 Canada Tel: 250.489.1212 Email: [email protected]

NI 43-101 Resource Estimate Page 1 of 165

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West Mining Kena Project

Certificate of Qualified Person

I, Sue Bird, P.Eng., am employed as a Geological Engineer with Moose Mountain Technical Services, with an office address of #210 1510 2nd Street North Cranbrook, BC V1C 3L2. This certificate applies to the technical report titled “Resource Estimate for the Kena and Daylight Properties” that has an effective date of March 25, 2021 (the “technical report”).

I am a member of the self-regulating Association of Professional Engineers and Geoscientists of British Columbia (#25007). I graduated with a Geologic Engineering degree (B.Sc.) from the Queen’s University in 1989 and a M.Sc. in Mining from Queen’s University in 1993.

I have worked as an engineering geologist for over 25 years since my graduation from university. I have worked on precious metals, base metals and coal mining projects, including mine operations and evaluations. Similar resource estimate projects specifically include those done for Artemis’ blackwater gold project, Ascot’s Premier Gold Project, Spanish Mountain Gold, all in BC; O3’s Marban and Garrison, gold projects in Quebec and Ontario, respectively, as well as numerous due diligence gold projects in the southern US done confidentially for various clients.

As a result of my experience and qualifications, I am a Qualified Person as defined in National Instrument 43–101 Standards of Disclosure for Mineral Projects (NI 43–101).

I visited the property between 26 and 28 January 2021.

I am responsible for all sections of the technical report.

I am independent of West Mining, Inc. as independence is described by Section 1.5 of NI 43–101.

I have no previous involvement with the Kena Project.

I have read NI 43–101 and the sections of the technical report for which I am responsible have been prepared in compliance with that Instrument.

As of the effective date of the technical report, to the best of my knowledge, information and belief, the sections of the technical report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the technical report not misleading.

Dated: 3 May 2021

Signed and Sealed

________ Signature of Qualified Person Sue Bird, P.Eng.

NI 43-101 Resource Estimate Page 2 of 165

West Mining Kena Project

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TABLE OF CONTENTS

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1.1 Introduction ............................................................................................................................... 10
1.2 Terms of Reference ................................................................................................................... 11
1.3 Project Description and Location .............................................................................................. 11
Location ................................................................................................................................. 11
Mineral Tenure ...................................................................................................................... 12
1.4 Accessibility, Climate, Local Resources, Infrastructure and Physiography................................ 12
Accessibility ........................................................................................................................... 12
Climate .................................................................................................................................. 13
1.5 History ....................................................................................................................................... 13
1.6 Geological Setting and Mineralization....................................................................................... 13
1.7 Exploration................................................................................................................................. 14
1.8 Drilling ........................................................................................................................................ 14
1.9 Sampling and Analysis ............................................................................................................... 15
1.10 Data Verification ........................................................................................................................ 15
1.11 Environmental Studies, Permitting and Social or Community Impact ...................................... 16
1.12 Recommendations ..................................................................................................................... 16
1.13 Abbreviations ............................................................................................................................. 16
2.1 Introduction ............................................................................................................................... 18
2.2 Terms of Reference ................................................................................................................... 18
2.3 Qualified Persons ....................................................................................................................... 18
2.4 Site Visits and Scope of Personal inspection ............................................................................. 18
2.5 Effective Dates ........................................................................................................................... 18
2.6 Information Sources .................................................................................................................. 18
2.7 Previous Technical Reports ....................................................................................................... 18
3.1 Mineral Tenure .......................................................................................................................... 19
3.2 Historic Production .................................................................................................................... 19
4.1 Introduction ............................................................................................................................... 20
4.2 Property and Mineral Title in British Columbia ......................................................................... 20
4.3 Project Ownership ..................................................................................................................... 23
4.4 Mineral Tenure .......................................................................................................................... 24
5.1 Accessibility ............................................................................................................................... 30
5.2 Climate ....................................................................................................................................... 30
6.1 Kena Property ............................................................................................................................ 31
Historic Kena Property .......................................................................................................... 31
Shaft Claims ........................................................................................................................... 34
6.2 Daylight Property ....................................................................................................................... 34

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West Mining
Kena Project
Daylight-Berlin (BC Minfile 082FSW175): ............................................................................. 35
Starlight (L684) (BC Minfile 082FSW174): ............................................................................. 35
Victoria-Jessie (BC Minfile 082FSW173): .............................................................................. 35
Great Eastern (BC Minfile 082FSW172): ............................................................................... 35
Great Western (BC Minfile 082FSW333):.............................................................................. 35
Irene (BC Minfile 082FSW171): ............................................................................................. 36
6.3 Southern Extension ................................................................................................................... 36
Euphrates (BC Minfile 082FSW186): ..................................................................................... 36
Gold Cup (BC Minfile 082FSW079): ....................................................................................... 37
6.4 2013 Resource Estimate ............................................................................................................ 38
7.1 Regional Geology ....................................................................................................................... 39
7.2 Local and Property Geology....................................................................................................... 39
7.3 Elise Formation ......................................................................................................................... 39
7.4 Silver King Intrusions................................................................................................................ 40
7.5 STRUCTURE, ALTERATION AND MINERALIZATION .................................................................... 41
7.6 Gold Mountain Zone (“GMZ”) ................................................................................................... 41
7.7 Kena Gold Zone.......................................................................................................................... 44
7.8 South Gold Zone ........................................................................................................................ 44
7.9 Kena Copper Zone ..................................................................................................................... 44
7.10 Shaft and Cat Zones ................................................................................................................... 44
7.11 Daylight Zone ............................................................................................................................. 45
9.1 Kena Property Exploration ........................................................................................................ 49
Kena Soil Geochemistry......................................................................................................... 49
Kena Rock Geochemistry....................................................................................................... 53
Kena Trenching ...................................................................................................................... 53
Kena Geophysics ................................................................................................................... 55
9.2 Daylight Property Exploration ................................................................................................... 60
Daylight Soil Geochemistry ................................................................................................... 61
Daylight Rock Geochemistry ................................................................................................. 62
Daylight Rock Sampling and Trenching ................................................................................. 63
10.1 Summary of Drilling ................................................................................................................... 69
Kena-Gold Mountain Drilling Summary ............................................................................ 72
Copper Zone Drilling Summary ......................................................................................... 72
Daylight Drilling Summary ................................................................................................ 73
Great Eastern and Great Western Drilling Summary ........................................................ 73
10.2 1974 Drilling – Ducanex Resources Ltd. .................................................................................... 73
10.3 1981 Drilling – Kerr Addison Mines Ltd. .................................................................................... 74
10.4 1985-1986 Drilling – Lacana Mining Corporation ...................................................................... 74
10.5 1987 Drilling – Tournigan Mining Explorations Ltd. .................................................................. 74
10.6 1988 Drilling – South Pacific Gold.............................................................................................. 74

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West Mining
Kena Project
10.7 1990-1991 Drilling – Noramco Mining Corporation .................................................................. 75
10.8 2001-2010 Drilling – Apex Resources Inc. ................................................................................. 75
10.9 2012 Drilling – Altair Gold Inc. ................................................................................................... 77
10.10 2017 Drilling – Prize Mining Corporation .................................................................................. 77
11.1 Sampling Protocols and Principal Laboratories ......................................................................... 78
Sampling by Prize Mining Corporation 2017 (Daylight, Great Eastern & Great Western)78
Sampling by Altair Gold Inc. 2012 (Kena).......................................................................... 79
Sampling by Apex Resources Inc. 1999-2010 (All Zones) ................................................. 80
Sampling by Noramco Mining Corporation 1990-1991 (Kena & Cu Zone) ....................... 81
Sampling by Tournigan Mining Explorations Ltd. 1987 (Kena & Cu Zone) ....................... 82
Sampling by Lacana Mining Corporation 1985-1986 (Kena & Cu Zone) ........................... 82
Years without Sampling Records ...................................................................................... 82
11.2 QAQC Summary ......................................................................................................................... 82
Great Eastern & Great Western QAQC ............................................................................. 83
Daylight QAQC .................................................................................................................. 92
Kena-Gold Mountain QAQC ............................................................................................ 101
11.3 Conclusions and Recommendations........................................................................................ 110
12.1 Site Visit ................................................................................................................................... 111
12.2 Data Audit ................................................................................................................................ 111
Corrections to Database ................................................................................................. 111
Certificate Checks ........................................................................................................... 112
12.3 Check Assays ............................................................................................................................ 114
2021 Core Duplicates ...................................................................................................... 114
2001-2002 Data Verification Check Assays ..................................................................... 115
1990 Chemex Check Assays – Copper Zone .................................................................... 118
12.4 Conclusions and Recommendations........................................................................................ 120
14.1 Kena Mineral Resource ............................................................................................................ 122
14.2 Key Assumptions and Data used in the Estimate .................................................................... 124
14.3 Geologic Modelling .................................................................................................................. 126
14.4 Assay Statistics and Capping .................................................................................................... 130
14.5 Compositing ............................................................................................................................. 133
14.6 Density Assignment ................................................................................................................. 134
14.7 Block Model Interpolations ..................................................................................................... 134
Variography ..................................................................................................................... 135
14.8 Classification of Mineral Resources ......................................................................................... 137
Global Grade Validation .................................................................................................. 139
Grade-Tonnage Curves ................................................................................................... 139
Visual Comparisons ......................................................................................................... 141
14.9 Reasonable Prospects of Eventual Economic Extraction ......................................................... 145
14.10 Factors That May Affect the Mineral Resource Estimate ........................................................ 147

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West Mining Kena Project

14.11 External Review ....................................................................................................................... 147
14.12 Risk Assessment ....................................................................................................................... 147
23.1 Silver King Mine...................................................................................................................... 151
23.2 Athabasca Mine and California Prospect ............................................................................... 151
Starlight Trend ................................................................................................................ 151
25.1 Geology and Mineralization .................................................................................................... 153
25.2 Exploration and Drilling ........................................................................................................... 153
25.3 Sample Preparation and Analysis ............................................................................................ 153
25.4 Data Verification ...................................................................................................................... 153
25.5 Mineral Resource Estimate...................................................................................................... 153
26.1 Exploration and Drilling ........................................................................................................... 154
26.2 QAQC and Check Assays .......................................................................................................... 154

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NI 43-101 Resource Estimate Page 6 of 165

West Mining Kena Project

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LIST OF TABLES OF TABLES
Table 1-1 Kena Mineral Resource Estimate – Total Project ..................................................................... 10
Table 4-1 Kena Property Claims and Tenure ........................................................................................... 24
Table 4-2 Daylight Property Claims and Tenure ...................................................................................... 28
Table 4-3 Daylight Property Crown Grants .............................................................................................. 29
Table 6-1 2013 Resource Estimate (Source: Giroux, 2013) ..................................................................... 38
Table 9-1 Kena Summary of Trenching .................................................................................................... 53
Table 9-2 Kena Trenching Significant Sample Results ............................................................................. 54
Table 10-1 Summary of Drilling - All Zones ................................................................................................ 69
Table 10-2 Kena-Gold Mountain Summary of Drilling ............................................................................... 72
Table 10-3 Copper Zone Summary of Drilling ............................................................................................ 73
Table 10-4 Daylight Summary of Drilling ................................................................................................... 73
Table 10-5 Great Eastern & Great Western Summary of Drilling .............................................................. 73
Table 11-1 QAQC Sample Summary (All Areas – Years 2012 and 2017 only) ............................................ 83
Table 11-2 Great Eastern & Great Western CRM Analysis Results Gold ................................................... 85
Table 11-3 Great Eastern & Great Western CRM Analysis Results Copper ............................................... 88
Table 11-4 Daylight CRM Analysis Results Gold ......................................................................................... 94
Table 11-5 Daylight CRM Analysis Results Copper .................................................................................... 97
Table 11-6 Kena-Gold Mountain CRM Analysis Results Gold .................................................................. 103
Table 11-7 Kena-Gold Mountain CRM Results Analysis Copper .............................................................. 106
Table 11-8 Kena-Gold Mountain Duplicates Simple Statistics (outlier removed) ................................... 107
Table 12-1 Summary of Missing Certificates ........................................................................................... 113
Table 12-2 2021 Check Assays Sample List .............................................................................................. 114
Table 12-3 2001-2002 Check and Re-Assays ............................................................................................ 115
Table 12-4 2001-2002 Chemex Check Assays by Area ............................................................................. 116
Table 12-5 ACME 2001-2002 Re-Assays .................................................................................................. 117
Table 12-6 1990 Chemex Check Assays Statistics – Copper Zone ........................................................... 118
Table 14-1 Kena Mineral Resource Estimate – Total Project ................................................................... 122
Table 14-2 Kena Mineral Resource Estimate – Kena Gold Deposit ......................................................... 123
Table 14-3 Kena Mineral Resource Estimate – Gold Mountain Deposit ................................................. 123
Table 14-4 Kena Mineral Resource Estimate – Daylight Deposit ............................................................. 123
Table 14-5 Summary of Drillhole and Assays used in the Kena Resource Estimate ................................ 125
Table 14-6 Summary of Capping by Area and Capping Domain .............................................................. 132
Table 14-7 Summary Statistics of Capped Assays and Composites ......................................................... 133
Table 14-8 Summary of Block Model Extents .......................................................................................... 135
Table 14-9 Summary of Orientations for Interpolation ........................................................................... 136
Table 14-10 Summary of Correlogram Parameters ................................................................................... 136
Table 14-11 Search Parameters for Au and Cu .......................................................................................... 137
Table 14-12 Additional Search Criteria ...................................................................................................... 137
Table 14-13 Summary of Model Grade Comparison with De-Clustered Composites by Domain ............. 139
Table 14-14 Summary of Base Case Economic Inputs ............................................................................... 145
Table 14-15 Costs used for Lerchs-Grossmann Resource Pit ..................................................................... 145
Table 14-16 List of Risks and Mitigations/Justifications ............................................................................ 147

NI 43-101 Resource Estimate Page 7 of 165

West Mining Kena Project

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LIST OF FIGURES LIST OF FIGURES
Figure 1-1 Kena Project Location Map (Source: MMTS, 2021) ................................................................. 12
Figure 4-1 Kena Project Map (Source: MMTS, 2021) ................................................................................ 22
Figure 9-1 Kena Project Soil Geochemistry for Gold (Source: MMTS, 2021) ............................................ 51
Figure 9-2 Kena Project Soil Geochemistry for Copper (Source: MMTS, 2021) ........................................ 52
Figure 9-3 Combined Magnetics including the 2003 Airborne, 2003 Ground and 2012 Ground Surveys
(Source: Giroux, 2013) ............................................................................................................. 57
Figure 9-4 Magnetic Survey Near Gold Mountain (Source: Giroux, 2013) ............................................... 58
Figure 9-5 Compilation of Lineation and Faulting Identified in all Processing Methods (Source: Giroux,
2013) ........................................................................................................................................ 59
Figure 9-6 LiDAR Survey Coverage Over the Kena Property (Source: Giroux, 2013) ................................ 60
Figure 9-7 Daylight 2017 Soil Sample Locations and Results (Source: TerraLogic, 2018) ......................... 62
Figure 9-8 Daylight Trench and Rock Sample Locations with Gold Results (Source: TerraLogic, 2018) ... 64
Figure 9-9 Daylight Ground Magnetic Survey (Source: TerraLogic, 2018) ................................................ 66
Figure 9-10 Daylight Magnetic Survey with Surface Features (Source: TerraLogic, 2018) ......................... 68
Figure 10-1 Kena Project Drillhole Locations (Source: MMTS, 2021) ......................................................... 70
Figure 10-2 Kena Project Drillhole Operator and Year (Source: MMTS, 2021) ........................................... 71
Figure 11-1 Great Eastern & Great Western Blanks – Au (Source: MMTS, 2021) ...................................... 84
Figure 11-2 Great Eastern & Great Western Blanks – Cu (Source: MMTS, 2021) ....................................... 84
Figure 11-3 Great Eastern & Great Western CRM ME-1402 Process Control Chart (Au = 13.9 g/t) (Source:
MMTS, 2021) ............................................................................................................................ 86
Figure 11-4 Great Eastern & Great Western CRM ME-1607 Process Control Chart (Au = 3.33g/t) (Source:
MMTS, 2021) ............................................................................................................................ 87
Figure 11-5 Great Eastern & Great Western CRM ME-1414 Process Control Chart (Au = 0.284g/t) (Source:
MMTS, 2021) ............................................................................................................................ 88
Figure 11-6 Great Eastern & Great Western CRM ME-1402 Process Control Chart (Cu = 2.9%) (Source:
MMTS, 2021) ............................................................................................................................ 89
Figure 11-7 Great Eastern & Great Western CRM ME-1607 Process Control Chart (Cu = 0.310%) (Source:
MMTS, 2021) ............................................................................................................................ 89
Figure 11-8 Great Eastern & Great Western CRM ME-1414 Process Control Chart (Cu = 0.22%) (Source:
MMTS, 2021) ............................................................................................................................ 90
Figure 11-9 Great Eastern & Great Western Au Duplicates Scatter Plot (Source: MMTS, 2021) ............... 91
Figure 11-10 Great Eastern & Great Western Cu Duplicates Scatter Plot (Source: MMTS, 2021) ............... 92
Figure 11-11 Daylight Blanks – Au (Source: MMTS, 2021) ............................................................................ 93
Figure 11-12 Daylight Blanks – Cu (Source: MMTS, 2021) ............................................................................ 94
Figure 11-13 Daylight CRM ME-1402 Process Control Chart (Au = 13.9 g/t) (Source: MMTS, 2021) ........... 95
Figure 11-14 Daylight CRM ME-1607 Process Control Chart (Au = 3.33 g/t) (Source: MMTS, 2021) ........... 96
Figure 11-15 Daylight CRM ME-1414 Process Control Chart (Au = 0.284 g/t) (Source: MMTS, 2021) ......... 96
Figure 11-16 Daylight CRM ME-1402 Process Control Chart (Cu = 2.9 g/t) (Source: MMTS, 2021) ............. 97
Figure 11-17 Daylight CRM ME-1607 Process Control Chart (Cu = 0.31 g/t) (Source: MMTS, 2021) ........... 98
Figure 11-18 Daylight CRM ME-1414 Process Control Chart (Cu = 0.22 g/t) (Source: MMTS, 2021) ........... 99
Figure 11-19 Daylight Au Duplicates Scatter Plot (Source: MMTS, 2021) .................................................. 100
Figure 11-20 Daylight Cu Duplicates Scatter Plot (Source: MMTS, 2021) ................................................... 101
Figure 11-21 Kena-Gold Mountain Blanks – Au (Source: MMTS, 2021) ..................................................... 102
Figure 11-22 Kena-Gold Mountain Blanks – Cu (Source: MMTS, 2021)...................................................... 103

NI 43-101 Resource Estimate Page 8 of 165

West Mining Kena Project

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Figure 11-23 Kena-Gold Mountain CRM PM929 Process Control Chart (Au = 5.1 g/t) (Source: MMTS, 2021)
............................................................................................................................................... 104
Figure 11-24 Kena-Gold Mountain CRM PM1123 Process Control Chart (Au = 1.42 g/t) (Source: MMTS,
2021) ...................................................................................................................................... 105
Figure 11-25 Kena-Gold Mountain CRM PM459 Process Control Chart (Au = 0.37 g/t) (Source: MMTS, 2021)
............................................................................................................................................... 106
Figure 11-26 Kena-Gold Mountain CRM PM1123 Process Control Chart (Cu = 0.31 %) (Source: MMTS, 2021)
............................................................................................................................................... 107
Figure 11-27 Kena-Gold Mountain Au Duplicates Scatter Plot (Source: MMTS, 2021) .............................. 108
Figure 11-28 Kena-Gold Mountain Au 2012 Duplicates (Source: MMTS, 2021) ......................................... 108
Figure 11-29 Kena-Gold Mountain Cu Duplicates Scatter Plot (Source: MMTS, 2021) .............................. 109
Figure 11-30 Kena-Gold Mountain Cu 2012 Duplicates HARD Plot (Source: MMTS, 2021) ....................... 110
Figure 12-1 Kena-Gold Mountain 2021 Check Assays (Source: MMTS, 2021) .......................................... 115
Figure 12-2 2001-2002 Chemex Check Assays Kena-Gold Mountain Au (Source: MMTS, 2021) ............. 116
Figure 12-3 2001-2002 Chemex Check Assays HARD Plot Kena-Gold Mountain Au (Source: MMTS, 2021) ..
............................................................................................................................................... 117
Figure 12-4 2001-2002 ACME Re-Assays Scatter Plot (Source: MMTS, 2021) .......................................... 118
Figure 12-5 1990 Chemex Check Assays Gold (Source: MMTS, 2021) ...................................................... 119
Figure 12-6 1990 Chemex Check Assays Copper (Source: MMTS, 2021) .................................................. 120
Figure 14-1 Drillhole Traces used in the Resource Estimate by Year ........................................................ 126
Figure 14-2 Simplified Logged Drillhole Lithology ..................................................................................... 128
Figure 14-3 Domains used for Interpolation ............................................................................................. 129
Figure 14-4 Domains used for Interpolation and Trace of Daylight Vein (red) (Source: MMTS, 2021) ... 130
Figure 14-5 CPP of Au Assay Grades by Capping Domain – Kena Zone (Source: MMTS, 2021) ............... 131
Figure 14-6 CPP of Au Assay Grades by Capping Domain – Gold Mountain Zone (Source: MMTS, 2021)132
Figure 14-7 Histogram of Assay Lengths (Source: MMTS, 2021) .............................................................. 134
Figure 14-8 Variogram for the Kena – Gold Mountain Domain along Strike ............................................ 135
Figure 14-9 Plan View of the Classification, the Drill Pattern, and the Resource Pit (Source, MMTS, 2021) .
............................................................................................................................................... 138
Figure 14-10 Grade-Tonnage Curve Comparison for Au – MI within the Resource Pit – Kena Gold (Source:
MMTS, 2021) .......................................................................................................................... 140
Figure 14-11 Grade-Tonnage Curve Comparison for Au – MI within the Resource Pit – Gold Zone (Source:
MMTS, 2021) .......................................................................................................................... 140
Figure 14-12 Grade-Tonnage Curve Comparison for Cu – MI within the Resource Pit - Daylight Vein (Source:
MMTS, 2021) .......................................................................................................................... 141
Figure 14-13 Au Grade - Model Compared to Assays (+/- 30m) looking – Kena Gold (Source: MMTS, 2021) .
............................................................................................................................................... 142
Figure 14-14 Au Grade - Model Compared to Assays (+/- 30m) – Gold Mountain (Source: MMTS, 2021) 143
Figure 14-15 Au Grade - Model Compared to Assays (+/- 50m) – Daylight (Source: MMTS, 2021) ........... 144
Figure 14-16 Three-dimensional View of the Resource Pit and AuEq blocks above 0.25g/t AuEq (Source:
MMTS, 2021) .......................................................................................................................... 146

NI 43-101 Resource Estimate Page 9 of 165

West Mining Kena Project

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Summary

1.1 Introduction

Moose Mountain Technical Services (MMTS) have prepared a technical report (the Report) for West Mining Corporation (West Mining) on a Resource Estimate of the Kena Project, which includes the Kena property and the Daylight Property, located in British Columbia, Canada. The Kena Project consists of the 153 mineral claims of the Kena property and the 21 mineral claims and 11 crown grants of the Daylight property. The Kena Project refers to exploration and development activity related to the deposits contained within the Kena and Daylight property claims and grants.

All claims and crown grants are currently held by Apex Resources, Inc (Apex). West Mining has entered into an asset purchase agreement dated April 7, 2021, with Apex Resources to purchase Apex’s interest in the Kena and Daylight Properties.

The Table below summarizes the total model resource for the Kena Project which has an effective date of March 5, 2021.

Table 1-1 Kena Mineral Resource Estimate – Total Project

Class Cut-off **Tonnage ** Au NSR Au Metal
Au(gpt) (ktonnes) (gpt) (CDN$) (Koz)
Indicated 0.1
0.15
0.2
44,006
41,895
37,663
0.449
0.465
0.497
34.51
35.69
38.09
635
625.7
602.0
0.25 32,146 0.544 41.48 561.9
0.3
0.5
1
26,274
11,863
2,662
0.604
0.869
1.526
45.78
65.92
113.34
510.2
331.4
130.6
Inferred 0.1
0.15
0.2
348,491
281,957
223,301
0.330
0.378
0.432
23.78
27.59
31.56
3,697
3,428.2
3,103.0
0.25 177,508 0.486 35.57 2,773.1
0.3
0.5
1
135,814
53,060
9,136
0.552
0.813
1.588
40.83
61.33
115.44
2,410.1
1,386.7
466.4

Notes for Table 1-1:

1. Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines.

2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

3. The Mineral Resource has been confined by a “reasonable prospects of eventual economic extraction” pit using the following assumptions: US $2,000/oz. Au at a currency exchange rate of 0.77 US$ per $CDN; 99.95% payable Au, 96.5% payable Cu; $4.30/oz Au offsite costs (refining, transport and insurance), 0.467 Cu offsite; a 3% NSR royalty; and uses a 88% metallurgical recovery for gold for all areas and 85% recovery for Cu in the Cu zone only.

4. Pit slope angles are assumed at 45º.

5. The specific gravity of the deposit has been assigned as 2.8 based on sg measurements in the Kena deposit

6. Numbers may not add due to rounding.

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West Mining Kena Project

The following factors, among others, could affect the Mineral Resource estimate: commodity price and exchange rate assumptions; pit slope angles; assumptions used in generating the LG pit shell, including metal recoveries, and mining and process cost assumptions. The QP is not aware of any environmental, permitting, legal, title, taxation, socioeconomic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate.

1.2 Terms of Reference

All currencies are expressed in Canadian dollars ($CDN). Mineral Resources and Mineral Reserves are estimated using the 2019 edition of the Canadian Institute of Mining, Metallurgy and Exploration (CIM) Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (2019 CIM Best Practice Guidelines) and are reported using the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves (2014 CIM Definition Standards).

1.3 Project Description and Location

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Location

The Kena Project is in southern British Columbia (BC), approximately 7km south of Nelson and 400km east of Vancouver (Figure 1-1). The project site is readily accessible by vehicle from Highway 6 on Forest Service Roads.

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West Mining
Kena Project
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Figure 1-1 Kena Project Location Map (Source: MMTS, 2021)

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Mineral Tenure

The Kena Project is currently owned by Apex Resources, Inc. and optioned by West Mining Corporation. The Kena property consists of 153 mineral claims totalling 8,109ha, excluding overlap. Nine claims in the Kena property expire in 2023, the remainder are good until 2027 or 2028. The Daylight property comprises 21 mineral claims, and 11 crown granted claims. The Daylight Claims are good through 2028.

1.4 Accessibility, Climate, Local Resources, Infrastructure and Physiography

Accessibility

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The properties are in an area of rugged terrain. Topography on the properties is steep with elevations ranging from 895m to 1,795m on the southwest portion of the claim area. Several portions of the property have been logged; the remainder is covered with first and second growth forest. Highway 6 passes along the eastern margin of the claim block, and then bends southwest to cross the southern part of the property. Forest service roads provide access onto the property. The Highway 6 corridor carries a powerline and a decommissioned railbed.

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Climate

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The climate of the Kena and Daylight properties is typical of the southern interior of British Columbia, with temperatures ranging between –20[ο] C to 30[ο] C. It is possible to operate on the property all year round; however, winter conditions do create challenges.

1.5 History

The current Kena Project was historically worked as several segmented properties. The area of the Kena Property was first described by G.M. Dawson in 1888, however little is known about exploration on the claim area prior to 1973, Since then the property has been optioned and worked by various companies. Apex obtained the Kena claims in 1999, and continued to expand them to include the Shaft, Daylight, and other claims thereafter. Prior to July 18, 2016, Apex Resources operated under the name of Sultan Minerals.

1.6 Geological Setting and Mineralization

The Kena Project is situated within the Elise Formation of the Rossland Group. The Rossland Group, within the southern Omineca Crystalline Belt, is an uplifted zone of variably metamorphosed and deformed Proterozoic to Tertiary rocks that straddles the boundary between accreted terranes and ancestral North America. The Kena property lies within lower-Jurassic Elise Formation (Fm) mafic volcanics and associated mid- Jurassic Silver King dioritic porphyry (Silver King) rocks.

Exploration work has identified several zones of prospective gold or copper mineralization. Gold zones include Gold Mountain (GMZ), Kena Gold (KGZ), High-Grade (HGZ), and South Gold (SGZ). Copper (Cu) mineralization occurs in the Kena Copper (KCZ) zone. There are also several under-explored new and historic targets.

The mineralization at Kena may be related to a property-scale zone deformation zone associated with the contact between the Elise Fm and the Silver King. In particular, the Gold Mountain, Kena Gold, and South Gold zones occur along this trend.

The Gold Mountain and Kena Gold zones contain broad widths of bulk tonnage-style gold mineralization containing high-grade shoots, which is coincident with soil geochemistry and geophysical anomalies.

Mineralization in the sparsely drilled Kena Copper zone suggests a copper-gold porphyry-style model.

The southwestern half of the Daylight property is underlain by strongly sheared, undifferentiated mafic to intermediate volcanic rocks of the Jurassic Elise Formation (Je). The historical Starlight, Victoria and Daylight mines are aligned along a single, mostly continuous quartz vein traceable through the Daylight property area for at least 1300m. Gold mineralization has a strong affinity for the vein and its immediate contact margins, with only rare sample returns of anomalous gold in the host volcanics. Mineralization typically includes pyrite or rarely pyrrhotite, with minor chalcopyrite, with rare coarse grains of galena or sphalerite.

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The northeast half of the Daylight property is underlain by variably altered and fractured felsic to intermediate intrusives of the Jurassic Silver King Porphyry (Jsk) stock. The property is immediately adjacent to the ~ 1km wide Silver King Shear system, which is host to the famous Silver King Mine. The historical Great Western and Great Eastern mines on the Daylight property are underlain by the Jurassic Silver King Porphyry (Jsk) near its southwestern contact margin with the Elise volcanics. Mineralization is in the form of sheeted quartz vein systems with accessory pyrite-chalcopyrite and rarely galena or sphalerite.

1.7 Exploration

From 2000 to 2003, significant exploration programs on the Kena Property were conducted. Work consisted of 97 diamond drillholes, ground and airborne magnetic surveys, induced polarization surveys, soil sampling, mapping and rock chip sampling and trenching. Between 2003 and 2010, continued annual exploration by Apex on the Kena and Daylight Properties has consisted of soil and rock chip sampling, geophysical surveys, geological mapping, trenching and additional diamond drilling.

In 2011, Apex optioned the Kena property (not including the Daylight) to Altair Gold Inc. In 2012, Altair completed an exploration program which included soil sampling, rock sampling, ground geophysics, geophysical compilation, diamond drilling and a LiDAR survey. The property subsequently reverted to Apex.

In 2016, the Kena and Daylight Properties were optioned to Prize/Boundary. Prize completed no additional exploration work on the Kena Property but in 2017 did mapping, prospecting, soil geochemical and geophysical surveys, trenching, environmental (water) sampling and diamond drilling on the Daylight Property. Detailed reports on each of the annual exploration programs have been filed as assessment reports with the Ministry of Energy and Mines.

1.8 Drilling

A total of 252 holes totalling 39,819.19m have been drilled in the model areas between 1974 and 2017 by multiple operators. Between 2001 and 2017, 28,366.36m have been drilled, or 71% of the drilling.

Drilling by Apex occurred in years 2001-2010. During 2001, a total of 29 diamond drillholes were completed, for a total of 4,901.1m on Kena-Gold Mountain. The first seven holes of 2001 confirmed the depth extension of widespread, porphyry-style gold mineralization within the Silver King intrusive and across the contact into the Elise Volcanics.

A second phase of drilling was conducted later in 2001 and into 2002, including diamond drillholes and reverse circulation drillholes The results indicated zones of “bulk-tonnage type” gold mineralization, with multiple holes containing 100m wide zones averaging >1g/t gold. Several holes also intersected high-grade gold, indicating a gold-enriched zone spatially related to the contact between the Silver King Porphyry and the footwall of the Elise Volcanics.

Through the summer and fall of 2002 drilling was carried out on all areas of the project. In the Gold Mountain area, holes tested the depth and strike length of gold mineralization, and the intrusive-volcanic contact. Many holes contained high grade gold assays over two-meter intervals, often surrounded by at

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least 100m of lower grade gold values, with many holes averaging over 0.3g/t gold for the entire length of the hole. The drilling in the Copper Zone was all within the Elise Volcanic package and showed that gold and copper mineralization increases and becomes widespread towards grid south.

All drilling in 2003 and 2004 was within the Kena-Gold Mountain area, 22 holes were completed in 2003, for a total of 1.086.73m, and four holes completed in 2004 for a total of 613.26m.

In 2007, one deep HQ-sized drillhole, 547.73m in length, was completed to test the depth extension of mineralization. The drillhole intersected mineralization deeper than had been previously identified.

In 2010, ten holes were drilled by Apex, seven holes on Kena-Gold Mountain, totalling 845.24m, and three in the Copper Zone, totalling 740.05m.

In 2012 by Altair Gold Inc., 41 NQ2-sized diamond drillholes were completed in the Kena-Gold Mountain area, for a total of 7,527.02m. Drilling was intended to fill in gaps between wide-spaced drilling and expand the mineral resource and was successful in defining wide zones of gold mineralization with narrow higher-grade intervals, consistent with results from historic drilling.

In 2017, twelve holes were completed by Prize Mining on Daylight, totalling 1,669.71m, and six holes were completed on Great Eastern and Great Western, totalling 1,025.06m.

1.9 Sampling and Analysis

Previous owners have conducted all drill core handling and sampling.

The two latest drilling campaigns include QAQC samples, however the prior drilling included in the resource database do not. The percent of QAQC samples is considered lower than normal, and a possible high bias is indicated by two gold CRMs in the 2012 drilling, which may reflect the small number of QAQC samples, or problems with the materials themselves. There are no QAQC samples in the drilling in the Copper Zone. In the opinion of the QP, the QAQC is accepted for resource estimation at this time.

1.10 Data Verification

A site visit was undertaken by the QP during 26-28 January 2021 to review the site location, core storage, core geology, and protocols. During the site visit, twelve drill core samples were selected for check assay by MMTS, and the results are acceptable.

MMTS notes multiple corrections to the database including the addition of missing copper assays to intervals within the copper zone, and addition of all certificate numbers to the database. It is also noted that approximately 20% of assays are missing certificates in the Assessment Reports.

Check assays with certificates are available for drilling in years 1990, 2001, and 2002, with the results from 2001-2002 showing potential small high bias to the gold assays.

The QP has accepted the database for resource estimation.

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1.11 Environmental Studies, Permitting and Social or Community Impact

On the Daylight portion of the property a MYAB (multi-year area based) Mineral Exploration and Reclamation Permit MX-5-761 is in place, expiring in August 2022 prior to which a new 5-year permit application is required.

The Kena Property is not currently permitted for diamond drilling. A new 5-year multi-area permit application was submitted to the Ministry of Mines in February 2021, with an anticipated approval timeline of six months.

1.12 Recommendations

MMTS recommends that:

  • A drilling program be conducted in two phases one exploring targets on the Daylight portion of the property and the other on the Kena side. Phase 2 is not contingent upon the results of the Phase 1 as the phases target separate zones. In Phase 1, up to twelve short step-out diamond drillholes will test the Starlight Vein system and two fences of six to eight holes will be drilled in the Great Western area to expand on previously identified intrusive related gold mineralization in that zone. Phase 2 consists of diamond drilling on the Kena portion of the property with two priority target areas, the Kena Copper Zone with fifteen holes and the Gold Mountain-Kena Gold zone to bring a portion of the inferred resource into the measured and indicated category. Total estimated cost of drilling is $1,165,000 CAD.

  • Future drilling programs employ QAQC sample inclusion rates consistent with current practice to include blanks, field duplicates and CRMs, and that certified blank material be sourced for future assaying.

  • Although the resource database has been verified and is deemed acceptable, a robust check assay sampling program including QAQC samples be conducted using a certified laboratory comprising 5-10% of core for years for which drill core is available to compensate for missing certificates, lack of QAQC samples and potential bias noted in the 2012 drilling QAQC and 2001-2002 check assays.

  • • The assay database be amended to include silver and copper for all available samples from certificates.

1.13 Abbreviations

List of Abbreviations used throughout the report:

  • T tonnes (Metric)

  • Mt Millions of tonnesk thousandsg/t grams/tonne

  • CMR Certified Reference Material

  • QAQC Quality Assurance/Quality Control

  • USD US Dollars

  • CAD Canadian Dollars

  • M millions

  • BC British Columbia

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  • CSA Canadian Securities Administration

  • UTM Universal Transverse Mercator

  • SG Specific Gravity

  • RC Reverse Circulation

  • DH Drillhole

  • GSC Geological Survey of Canada

  • EA Environmental Assessment

  • ENS Electronic Navigation Systems

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Introduction

2.1 Introduction

Moose Mountain Technical Services (MMTS) have prepared a technical report (the Report) for West Mining Corporation (West Mining) on a Resource Estimate of the Kena Project, located south of Nelson in British Columbia, Canada, approximately 400km east of Vancouver.

2.2 Terms of Reference

All currencies are expressed in Canadian dollars ($CDN). Mineral Resources and Mineral Reserves are estimated using the 2019 edition of the Canadian Institute of Mining, Metallurgy and Exploration (CIM) Estimation of Mineral Resources & Mineral Reserves Best Practice Guidelines (2019 CIM Best Practice Guidelines) and are reported using the 2014 CIM Definition Standards for Mineral Resources and Mineral Reserves (2014 CIM Definition Standards).

The Kena Project consists of the 153 mineral claims of the Kena property and the 21 mineral claims and 11 crown grants of the Daylight property. The Kena Project is currently owned by Apex Resources, Inc. and optioned by West Mining Corporation. For the purposes of this report, West is used for the current owner of the properties.

2.3 Qualified Persons

The following serve as the qualified persons (QPs) for this Technical Report as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects , and in compliance with Form 43-101F1:

  • Sue Bird, P.Eng., Moose Mountain Technical Services

2.4 Site Visits and Scope of Personal inspection

Sue Bird visited the Kena Project site on 26-28 January 2021. Sue reviewed drill pad locations, drilling and sampling protocols, the core storage, and the QA/QC procedures. The geology and mineralization within pertinent drillholes were also inspected and reviewed.

2.5 Effective Dates

The report has the following effective dates:

  • Date of the Mineral Resource estimate: March 25, 2021.

2.6 Information Sources

Information sources used in compiling this Report are included in Section 27.

2.7 Previous Technical Reports

West Mining has not previously filed a technical report on the Project.

Altair Gold filed the following technical report on the Kena Property:

  • Giroux, G., 2013, “Technical Report for the Kena Property, Nelson, BC” for Altair Gold.

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Reliance on Other Experts

The QP authors of this Report state that they are qualified persons for those areas as identified in the "Certificate of Qualified Person" for each QP, as included in this Report. The QPs have relied and believe there is a reasonable basis for this reliance, upon the following other expert reports, which provided information regarding sections of this report as noted below.

3.1 Mineral Tenure

The QPs have not reviewed the mineral tenure, nor independently verified the legal status, ownership of the Project area or underlying property agreements. The QPs have fully relied upon, and disclaim responsibility for, information supplied by Apex Resources and West Mining experts and experts retained by Apex Resources and West Mining for this information through the following documents:

  • Perry Grunenberg, 2021, April 27, 2021, personal communication, supplied GIS shapes of the mineral claims, tenure, and crown grants.

Mr. Grunenberg has had extensive experience with the project dating as far back as 1999. This information is used in Section 4.2 and Section 4.4 of the Report, and in support of the Mineral Resource estimate in Section 14.

3.2 Historic Production

The QPs have not reviewed records of historic production if they exist. The QPs have fully relied upon, and disclaim responsibility for, information supplied by Apex Resources and West Mining experts and experts retained by Apex Resources and West Mining for this information through the following documents:

  • Linda Dandy, April 5, 2021, personal communication, supplied estimates of historic production and grades.

Ms. Dandy has had extensive experience with the project documented as far back as 2000. This information is used in support of the mineral resource estimate in Section 14.

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Property Description and Location

4.1 Introduction

The current Kena Project was historically worked as several segmented properties. Within the Kena Project, there are now three areas individually referred to as the Kena Property, Daylight Property and Southern Extension. The current resource estimate only includes the Kena and Daylight Properties. The project lies in southern British Columbia, approximately 400km east of Vancouver, BC and 5km southeast of Nelson, BC.

The Kena property, located within the Nelson Mining Division, is centered at a latitude and longitude of 49°26’ N, 117°17' E, within map sheets 82F.034, 82F.035, 82F.044, and 82F.045.

The Daylight property is located southwest of and adjoins the Kena property. The claims cover an area of approximately 270 hectares and are centered at Latitude 49°29' 56'' N, Longitude 117°18' 02'' W (UTM Z11N 0478200 E, 5475550 N NAD83).

The locations of the Kena and Daylight properties of the Kena Project are shown in Figure 4-1.

4.2 Property and Mineral Title in British Columbia

Prior to 1 June 1991, recordation in respect of a mineral claim or mining lease in British Columbia were manually recorded on, or attached to, the original application document for a mineral claim or the original lease document for a mining lease. From June 1991 to 11 January 2005, all records were entered into a computer database, maintained by the Gold Commissioner’s Office. On 12 January 2005, the British Columbia mineral titles system was converted to an online registry system, MTO, and ground-staking of claims was eliminated in favour of map-staking based on grid cells.

Claims recorded prior to 12 January 2005 are referred to as legacy claims; Claims acquired through map staking are referred to as cell claims. From and after the date of changeover to map-staking, claim holders could convert legacy claims to cell claims, or maintain the original legacy claim. Legacy claims vary in size and shape, depending on the regulations that were in force at the time of staking and recordation. Cell claims comprise from 1 to 100 cells which range from 21 hectares in southern British Columbia to 16 hectares in the north.

Mineral title may also be held as part of Crown grants or freehold tenure issued under separate grant, such as a railway grant. Crown-granted mineral rights originate from staked mineral claims that were surveyed then granted from the Crown to private individuals or corporations under the legislation in effect at the time of grant.

There can be instances where there may be more than one type of mineral tenure in existence over the same land area; examples are where a Crown-granted mineral title is overlapped by a mineral tenure granted under the Mineral Tenure Act (British Columbia) (the MTA). In this case, the holder of the MTA mineral tenure is entitled only to those minerals not covered in the Crown-granted mineral title.

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To keep claims in good standing in accordance with the MTA, a minimum value of work or cash-in-lieu is required annually. The minimum value of work required maintaining a legacy or cell mineral claim for one year is currently set at $5 per hectare for the first and second anniversary years, $10 per hectare for the third and fourth anniversary years, $15 per hectare in the fifth and sixth anniversary years and $20 per hectare for each subsequent anniversary year. The cash-in-lieu required to maintain a mineral claim for an anniversary year is double the value of the work commitment requirement.

The holder of a mineral claim or mining lease issued under the MTA does not have exclusive possession of the surface or exclusive right to use the surface of the land. However, the holder of such claims and leases does have the right to access the lands for the purpose of exploring for minerals and to use the surface for mining activities (exploration, development, and production).

The surface of a mineral claim or mining lease may either be privately owned or owned by the Crown.

The MTA provides for a recorded claim holder to use, enter, and occupy the surface of a claim for the exploration and development or production of minerals, including the treatment of ore and concentrates, and all operations related to the exploration and development or production of minerals and the business of mining, subject to production limits. Permits are required before undertaking most exploration or mining activity.

A mining lease is required if the claim holder wishes to produce more than 1,000 tonnes of ore in a year from each unit in a legacy claim (typically 25 hectares) or each cell in a cell claim. The holder of a mineral claim may obtain a mining lease for that claim if certain requirements are met (surveying if required, payment of fees, and posting of notices). A mining lease allows the lessee to hold Crown mineral lands for up to 30 years initially and is renewable if certain conditions are met. A recorded claim holder must give surface owners of private land and leaseholders of Crown land notice before entering for any mining activity. A recorded holder is liable to compensate the surface owner for loss or damage caused by the entry, occupation or use of the area for exploration and development or production of minerals.

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Figure 4-1 Kena Project Map (Source: MMTS, 2021)

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4.3 Project Ownership

The Kena Project is currently owned by Apex Resources, Inc. and optioned by West Mining Corporation. The purchase agreement of the Kena Project is described on the West Mining website (www.westminingcorp.ca) in a news release dated April 12, 2021 which follows here:

West Mining has entered into an asset purchase agreement dated as of April 7, 2021 with Apex Resources Inc. (“Apex”) pursuant to which the Company has agreed to acquire Apex’s interest in the Project from Apex in exchange for consideration of: aggregate cash payments of $300,000; an aggregate of 1,500,000 common shares of the Company (each, a “Share”); and granting Apex a 1.0% net smelter returns royalty on the Project, with West having the right to repurchase the NSR for $500,000 at any time prior to the commencement of commercial production on the Project.

Closing of the West’s acquisition of the Project from Apex is subject to receipt of approval of the Canadian Securities Exchange (if and as required) by West and of the TSX Venture Exchange by Apex. The Company made a $100,000 cash payment on execution of the agreement, and the remaining $200,000 is payable on the closing date, following receipt of regulatory approval. The Shares will be issued to Apex on the closing date as follows: 375,000 Shares will be subject to a four month hold period; 375,000 Shares will be subject to a four month hold period and a voluntary six-month escrow period; and 750,000 Shares will be subject to a four month hold period and a voluntary 12-month escrow period.

In conjunction with the asset purchase agreement with Apex, the Company has also entered into an amending agreement dated April 7, 2021 with Boundary Gold and Copper Mining Ltd. (“Boundary”), and Boundary’s wholly owned subsidiary, 1994854 Alberta Ltd. (“1994854”), which amends a share option agreement dated as of January 25, 2021 between the parties (see the Company’s press release dated January 26, 2021 for a description of the share option agreement). Under the share option agreement, West has the right to acquire all the issued and outstanding shares of 1994854 from Boundary. 1994854 is party to an underlying property option agreement respecting the Project with Apex dated September 23, 2016, as amended June 26, 2019, which provides 1994854 with the option to acquire an 80% interest in the Project. The amending agreement provides that the Company can complete its acquisition of all of 1994854’s shares from Boundary by making a cash payment of $800,000 to Boundary within five days and by issuing an aggregate of 7,361,112 Shares to Boundary as follows: 1,805,556 Shares already issued to Boundary will be free-trading on April 24, 2021; 1,805,556 Shares will be subject to voluntary escrow until October 24, 2021; 1,805,556 Shares will be subject to voluntary escrow until April 24, 2022; and 1,944,444 Shares will be subject to voluntary escrow until October 24, 2022. In connection with the agreement with Boundary, West paid a finder’s fee in the amount of $80,000 and issued 555,556 Shares as finder’s shares, which Shares will be subject to a four-month hold period.

On closing of the acquisition of the Project from Apex and of the 1994854 shares from Boundary, West will hold a 100% interest in and to the Project, subject to the NSR granted to Apex described above and the underlying NSRs described in the Company’s press release respecting the Project dated January 26, 2021.

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4.4 Mineral Tenure

The Kena property consists of 153 mineral claims totalling 8,109ha, excluding overlap. Nine claims in the Kena property expire in 2023, the remainder are good until 2027 or 2028.The claims and tenure for the Kena property are given in Table 4-1. The Daylight property comprises 21 mineral claims, and 11 crown granted claims, presented in Table 4-2 and Table 4-3, respectively. The Daylight Claims are good through 2028. Apex Resources, Inc. hold a 100% recorded interest in the claims and crown grants comprising the Kena Project.

All claim blocks are shown in Figure 4-1. MMTS has not independently verified the claims, tenure, and crown grants.

Table 4-1 Kena Property Claims and Tenure

Tenure Number Claim Name Map Number Issue Date Good To Date Area(ha)
232760 GOLD MTN. 082F044 1979/May/03 2028/Apr/12 25
232761 GOLD MTN. NO. 2 082F044 1979/May/03 2028/Apr/12 25
232763 GOLD MTN NO. 9 FR. 082F044 1979/May/22 2028/Apr/12 25
232794 MAC #1 082F044 1979/Sep/18 2028/Jun/14 500
233177 COT 082F044 1983/Sep/13 2028/Apr/12 25
233178 ROADSIDE FR 082F044 1983/Sep/13 2028/Apr/12 25
233179 COT FR 082F044 1983/Sep/13 2028/Apr/12 25
233180 MAS FR 082F044 1983/Sep/13 2028/Apr/12 25
233181 TEE FR 082F044 1983/Sep/13 2028/Apr/12 25
233182 FLAT FR 082F044 1983/Sep/13 2028/Apr/12 25
233231 AU 2 082F044 1984/Jun/05 2028/Apr/12 25
233232 AU 4 082F044 1984/Jun/05 2028/Jun/14 25
233261 LINDE #2 082F044 1984/Sep/07 2028/Jun/14 25
233262 LINDE #1 082F044 1984/Sep/07 2028/Apr/12 25
233294 KENA FR. 082F044 1985/Feb/07 2028/Apr/12 25
233606 MAGPIE 082F044 1987/Jul/20 2028/Apr/12 25
233607 ELDORADO 082F044 1987/Jul/20 2028/Apr/12 25
233608 PACTOLUS FRACTION 082F044 1987/Jul/20 2028/Apr/12 25
233609 SHAFT FRACTION 082F044 1987/Jul/20 2028/Apr/12 25
233610 DEER FRACTION 082F044 1987/Jul/20 2028/Apr/12 25
233611 MIDNITE FRACTION 082F044 1987/Jul/20 2028/Apr/12 25
235349 KENA #18 082F044 1974/Nov/05 2028/Apr/12 25
235350 KENA #19 082F044 1974/Nov/05 2028/Apr/12 25
235351 KENA #20 082F044 1974/Nov/05 2028/Apr/12 25
235352 KENA #21 082F044 1974/Nov/05 2028/Apr/12 25
235353 KENA #22 082F044 1974/Nov/05 2028/Apr/12 25
235354 KENA #23 082F044 1974/Nov/05 2028/Apr/12 25
235355 KENA #24 082F044 1974/Nov/05 2028/Apr/12 25

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Tenure Number Claim Name Map Number Issue Date Good To Date Area(ha)
235356 KENA #25 082F044 1974/Nov/05 2028/Apr/12 25
350286 SK 082F044 1996/Sep/04 2028/Apr/12 25
350556 EP 082F044 1996/Sep/09 2028/Apr/12 25
350557 PY 082F044 1996/Sep/09 2028/Apr/12 25
362976 SHAFT W1 082F044 1998/May/24 2028/Apr/12 25
362977 SHAFT W2 082F044 1998/May/24 2028/Apr/12 25
372729 CAT #1 082F044 1999/Oct/24 2028/Apr/12 25
372730 CAT #2 082F044 1999/Oct/24 2028/Apr/12 25
372731 CAT #3 082F044 1999/Oct/24 2028/Apr/12 25
372732 CAT #4 082F044 1999/Oct/24 2028/Apr/12 25
373751 CAT 6 082F044 1999/Dec/03 2028/Apr/12 25
373752 CAT 7 082F044 1999/Dec/03 2028/Apr/12 25
373753 CAT 8 082F044 1999/Dec/04 2028/Apr/12 25
373754 CAT 9 082F044 1999/Dec/03 2028/Apr/12 25
373756 CAT 11 082F044 1999/Dec/03 2028/Apr/12 25
373758 CAT 13 082F044 1999/Dec/04 2028/Apr/12 25
373760 CAT 15 082F044 1999/Dec/04 2028/Apr/12 25
373761 CAT 16 082F044 1999/Dec/04 2028/Apr/12 25
373762 CAT 17 082F044 1999/Dec/04 2028/Apr/12 25
373763 CAT 18 082F044 1999/Dec/04 2028/Apr/12 25
373764 CAT 19 082F044 1999/Dec/05 2028/Apr/12 25
373765 CAT 20 082F044 1999/Dec/04 2028/Apr/12 25
373766 CAT 21 082F044 1999/Dec/05 2028/Jun/14 25
373767 CAT 22 082F044 1999/Dec/05 2028/Apr/12 25
374197 CAT 23 082F044 2000/Jan/10 2028/Jun/14 25
374198 CAT 24 082F044 2000/Jan/10 2028/Jun/14 25
374199 CAT 25 082F044 2000/Jan/10 2028/Jun/14 25
374200 CAT 26 082F044 2000/Jan/10 2028/Jun/14 25
374201 CAT 27 082F044 2000/Jan/10 2028/Jun/14 25
374202 CAT 28 082F044 2000/Jan/10 2028/Jun/14 25
374203 CAT 29 082F044 2000/Jan/10 2028/Jun/14 25
374204 CAT 30 082F044 2000/Jan/10 2028/Jun/14 25
374205 CAT 31 082F034 2000/Jan/10 2027/Apr/12 25
374206 CAT 32 082F034 2000/Jan/10 2027/Apr/12 25
374207 CAT 33 082F044 2000/Jan/11 2028/Jun/14 25
374208 CAT 34 082F044 2000/Jan/11 2028/Jun/14 25
374209 CAT 35 082F044 2000/Jan/11 2028/Jun/14 25
374210 CAT 36 082F044 2000/Jan/11 2028/Jun/14 25
374211 STAR 1 082F044 2000/Jan/12 2028/Jun/14 25

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Tenure Number Claim Name Map Number Issue Date Good To Date Area(ha)
374212 STAR 2 082F044 2000/Jan/12 2028/Jun/14 25
378493 NOMAN 082F044 2000/Jul/01 2028/Jun/14 500
379797 SAKE 082F044 2000/Aug/15 2028/Jun/14 25
380707 CAT 40 082F034 2000/Sep/21 2027/Apr/12 25
380708 CAT 41 082F034 2000/Sep/21 2027/Apr/12 25
380709 CAT 42 082F034 2000/Sep/21 2027/Apr/12 25
380710 CAT 43 082F034 2000/Sep/21 2027/Apr/12 25
380711 CAT 44 082F034 2000/Sep/21 2027/Apr/12 25
380712 CAT 45 082F034 2000/Sep/21 2027/Apr/12 25
382325 SK 1 082F044 2000/Nov/12 2027/Apr/12 500
382326 SK 2 082F044 2000/Nov/11 2027/Apr/12 25
382327 SK 3 082F034 2000/Nov/12 2027/Apr/12 25
382328 SK 4 082F034 2000/Nov/12 2027/Apr/12 25
382329 SK 5 082F034 2000/Nov/12 2027/Apr/12 25
382330 SK 6 082F034 2000/Nov/12 2027/Apr/12 25
382801 GC 1 082F034 2000/Nov/20 2027/Apr/12 25
382802 GC 2 082F034 2000/Nov/20 2027/Apr/12 25
382803 GC 3 082F034 2000/Nov/20 2027/Apr/12 25
382804 GC 4 082F034 2000/Nov/20 2027/Apr/12 25
382805 SK 7 082F034 2000/Nov/19 2027/Apr/12 25
382806 SK 8 082F034 2000/Nov/19 2027/Apr/12 25
382807 SK 9 082F034 2000/Nov/19 2027/Apr/12 25
382809 SK 11 082F034 2000/Nov/19 2027/Apr/12 25
382810 SK 12 082F034 2000/Nov/19 2027/Apr/12 25
382811 SK 13 082F034 2000/Nov/19 2027/Apr/12 25
382812 SK 14 082F034 2000/Nov/19 2027/Apr/12 25
382813 SK 15 082F034 2000/Nov/19 2027/Apr/12 25
382814 SK 16 082F034 2000/Nov/19 2027/Apr/12 25
382815 SK 17 082F034 2000/Nov/19 2027/Apr/12 25
382816 SK 18 082F034 2000/Nov/19 2027/Apr/12 25
382819 SK 10 082F034 2000/Nov/19 2027/Apr/12 25
384262 SK 19 082F034 2001/Feb/25 2027/Apr/12 25
384263 SK 20 082F034 2001/Feb/25 2027/Apr/12 25
384264 SK 21 082F034 2001/Feb/25 2027/Apr/12 25
384265 SK 22 082F034 2001/Feb/25 2027/Apr/12 25
384266 SK 23 082F034 2001/Feb/25 2027/Apr/12 25
384267 SK 24 082F034 2001/Feb/25 2027/Apr/12 25
384268 SK 25 082F034 2001/Feb/26 2027/Apr/12 25
384269 SK 26 082F034 2001/Feb/26 2027/Apr/12 25

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Tenure Number Claim Name Map Number Issue Date Good To Date Area(ha)
384270 SK 27 082F034 2001/Feb/26 2027/Apr/12 25
384271 SK 28 082F034 2001/Feb/26 2027/Apr/12 25
387621 GC #5 082F034 2001/Jun/30 2023/Feb/28 500
387622 GC #6 082F034 2001/Jun/30 2023/Feb/28 450
387623 GC #7 082F034 2001/Jun/30 2027/Apr/12 25
387624 GC #8 082F034 2001/Jun/30 2027/Apr/12 25
387625 GC #9 082F034 2001/Jun/30 2027/Apr/12 25
387634 GC #10 082F034 2001/Jun/30 2027/Apr/12 25
387635 GC #11 082F034 2001/Jun/30 2027/Apr/12 25
387636 GC #12 082F034 2001/Jun/18 2027/Apr/12 25
387637 GC #13 082F034 2001/Jun/18 2027/Apr/12 25
387638 GC #14 082F034 2001/Jun/18 2027/Apr/12 25
387639 GC #15 082F034 2001/Jun/19 2027/Apr/12 25
387640 GC #16 082F034 2001/Jun/19 2027/Apr/12 25
387641 GC #17 082F034 2001/Jun/19 2027/Apr/12 25
387642 JUNE #1 082F034 2001/Jun/20 2023/Feb/28 500
387643 JUNE #2 082F034 2001/Jun/18 2027/Apr/12 25
387644 JUNE #3 082F034 2001/Jun/18 2027/Apr/12 25
387645 JUNE #4 082F034 2001/Jun/18 2027/Apr/12 25
387646 JUNE #5 082F034 2001/Jun/18 2027/Apr/12 25
387647 JUNE #6 082F034 2001/Jun/20 2027/Apr/12 25
387648 JUNE #7 082F034 2001/Jun/20 2027/Apr/12 25
387649 JUNE #8 082F034 2001/Jun/20 2027/Apr/12 25
387650 JUNE #9 082F034 2001/Jun/20 2027/Apr/12 25
389877 Gold Mountain 082F044 2001/Sep/22 2028/Apr/12 500
389878 TAMARAC 082F035 2001/Sep/23 2023/Apr/12 225
389879 TAM 082F034 2001/Sep/23 2027/Apr/12 25
391009 SK 29 082F034 2001/Nov/25 2027/Apr/12 25
391010 SK 30 082F034 2001/Nov/25 2027/Apr/12 25
391011 SK 31 082F034 2001/Nov/25 2027/Apr/12 25
391012 SK 32 082F034 2001/Nov/25 2027/Apr/12 25
392532 G.A. #8 082F034 2002/Apr/05 2027/Apr/12 25
392533 G.A. #7 082F034 2002/Apr/05 2027/Apr/12 25
392534 GA #6 082F034 2002/Apr/05 2027/Apr/12 25
392535 GA #5 082F034 2002/Apr/05 2027/Apr/12 25
392536 GA #4 082F034 2002/Apr/05 2027/Apr/12 25
392537 GA #3 082F034 2002/Apr/05 2027/Apr/12 25
392538 GA #2 082F044 2002/Apr/05 2028/Jun/14 25
392539 GA #1 082F044 2002/Apr/05 2028/Jun/14 25

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Tenure Number Claim Name Map Number Issue Date Good To Date Area(ha)
550210 FRANK&DON 082F 2007/Jan/25 2023/Apr/12 252.1938
550275 F&D FR. 082F 2007/Jan/25 2027/Apr/12 21.0157
652203 NEW SK 082F 2009/Oct/14 2023/Apr/12 84.0774
834084 HIGHWAY 1 082F 2010/Sep/22 2023/Apr/12 105.0003
834085 HIGHWAY 2 082F 2010/Sep/22 2027/Apr/12 84.0429
834123 HIGHWAY 3 082F 2010/Sep/23 2027/Apr/12 21.0123
834124 HIGHWAY 4 082F 2010/Sep/23 2023/Apr/12 126.0954
834158 CREEK 1 082F 2010/Sep/23 2023/Apr/12 315.4215

Table 4-2 Daylight Property Claims and Tenure

Tenure
Number
Claim Name Map
Number
Issue Date Good To Date Area
(ha)
232860 GREAT WESTERN 082F044 1980/Feb/19 2028/Apr/12 25
232861 IRENE 082F044 1980/Feb/19 2028/Apr/12 25
232862 GREAT EASTERN 082F044 1980/Feb/19 2028/Apr/12 25
373681 GRAND 082F044 1999/Nov/26 2028/Apr/12 25
373750 CAT 5 082F044 1999/Dec/03 2028/Apr/12 25
373755 CAT 10 082F044 1999/Dec/03 2028/Apr/12 25
373757 CAT 12 082F044 1999/Dec/03 2028/Apr/12 25
373759 CAT 14 082F044 1999/Dec/04 2028/Apr/12 25
380091 CAT 37 082F044 2000/Sep/03 2028/Apr/12 25
380092 CAT 38 082F044 2000/Sep/03 2028/Apr/12 25
380093 CAT 39 082F044 2000/Sep/03 2028/Apr/12 25
382323 CAT 46 082F044 2000/Nov/10 2028/Apr/12 25
382324 CAT 47 082F044 2000/Nov/10 2028/Apr/12 25
390584 GM 1 082F044 2001/Oct/26 2028/Apr/12 25
390585 GM 2 082F044 2001/Oct/26 2028/Apr/12 25
392165 SAND 1 082F044 2002/Mar/10 2028/Jun/14 25
392166 SAND 2 082F044 2002/Mar/10 2028/Jun/14 25
392167 SAND 3 082F044 2002/Mar/10 2028/Jun/14 25
392168 SAND 4 082F044 2002/Mar/10 2028/Jun/14 25
392169 SAND 5 082F044 2002/Mar/10 2028/Jun/14 25
392170 SAND 6 082F044 2002/Mar/10 2028/Jun/14 25

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Table 4-3

Daylight Property Crown Grants

CROWN GRANTS Map Number
L684 STARLIGHT 082F044
L4146 BLACKWITCH 082F044
L4155 GOLD BELL 082F044
L248 VICTORIA 082F044
L686 JESSIE 082F044
L901 BID 082F044
L902 JMB 082F044
L907 DAYLIGHT 082F044
L14699 GOLD KING FR 082F044
L3251 BERLIN 082F044
L14700 MILLSITE FR 082F044

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Accessibility, Climate, Local Resources, Infrastructure and Physiography

5.1 Accessibility

The properties are in an area of rugged terrain. Topography on the properties is steep with elevations ranging from 895m at Cottonwood Lake to 1,795m on the southwest portion of the claim area. Outcrop is somewhat limited - generally confined to creek gullies and road cuts, with more prevalent outcrops on steeper slopes. The Gold Mountain and Kena Gold Zones lie at an elevation of about 1,400m, along a relatively flat bench area above the steep topography leading to the Cottonwood valley.

Several portions of the property have been logged; the remainder is covered with first and second growth forest consisting of balsam, fir, spruce, hemlock, cedar, with occasional white pine and larch. Thick growths of alder and devil's club occur in creek gullies.

Highway 6 passes along the eastern margin of the claim block, and then bends southwest to cross the southern part of the property. The northern part of the Kena Project, including the Gold Mountain, Kena Gold, Daylight and South Gold Zones, is accessed by road seven kilometres south from Nelson, turning west off Highway 6, then travelling west and south using the Giveout and Gold Creek Forest Service Roads. The southern part of the property is accessed from further south along Highway 6, travelling east and south on the Clearwater Creek Forest Service Road. The Forest Service Roads are well maintained and easily accessible via pick-up truck. Several logging and 4x4 roads run through the claims, providing access to much of the property.

The Highway 6 corridor carries a powerline and a decommissioned railbed. Teck Resources Ltd.’s (Teck) Trail Operations facility, which includes a lead and zinc smelter and refinery, and the Waneta power dam, is located about 75 kilometres southwest of the property via paved highway. Crew lodgings are readily available in nearby Nelson or Salmo. A skilled labour force for mining and exploration is available in Nelson, Salmo, Trail, and Castlegar. Trail, Nelson, and Castlegar are major supply and service centres for resource industries.

5.2 Climate

The climate of the Kena and Daylight properties is typical of the southern interior of British Columbia, with freezing temperatures from 0 degrees Celsius ([ο] C) to –20[ο] C from November to March (averaging –5[ο] C), and mild temperatures ranging from 10[ο] C to 30[ο] C from April to October (averaging 15.7[ο] C). Precipitation averages 790 millimetres per year, with a substantial portion in the form of snow, which averages 225 centimetres per year. It is possible to operate on the property all year round; however, winter conditions create challenges. A typical exploration season spans June through October.

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History

The current Kena Project was historically worked as several segmented properties. Within the Kena Project, there are now three areas individually referred to as the Kena Property, Daylight Property and Southern Extension. The current resource estimate only includes the Kena and Daylight Properties.

6.1 Kena Property

The area of the Kena Property was first described by G.M. Dawson in the Geological Survey of Canada Summary Report for 1888-1889. Dawson stated that gold mineralization is located within a “…quantity of pyritized material which…appears to be practically unlimited…” in size.

No further information on exploration appears in either the Geological Survey of Canada records or the Provincial Government records within the Ministry of Mines, thus little is known about exploration on the claim area prior to 1973. Post 1973 exploration, however, has identified numerous old prospect pits and trenches, as well as several old adits indicating periods of limited exploration activity in the early part of the century.

Prospector Otto Janout staked the original Kena claims in 1973. Since then the property has been optioned and worked by various companies. Prior to Apex obtaining the Kena claims in 1999, the property was divided into the Kena Property, located south of Gold Creek and the Shaft Property (now including Gold Mountain Zone) located to the north. After optioning the Kena claims from Janout, Apex acquired additional claims by staking to the south of the Kena Property, which includes the historic Euphrates and Gold Cup Mines. To the west, Apex also optioned several claims comprising the contiguous Daylight Property. Prior to July 18, 2016, Apex Resources operated under the name of Sultan Minerals.

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Historic Kena Property

The historically referred to “Kena” is the portion of Apex’s Kena Property located south of Gold Creek and encompasses the Kena Gold, South Gold and Kena Copper Zones. Exploration work completed on this property since 1973 is summarized below.

1974 Ducanex Resources Ltd.

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The company collected soil samples and drilled four percussion holes in the Kena Gold Zone. Chip sampling of the Main Trench in 1973 yielded 2.38 g/t gold over 9.85 metres. The soil sample results showed high copper and gold values, ranging up to 1,100 ppm copper and 4,600 ppb gold, with background gold values around 350 ppb. The company drilled four percussion holes aggregating 250 metres on the gold prospect. The results of the drilling suggested the presence of a mineralized zone from 6 to 12 metres thick of ranging from 1.36 to 1.70 g/t gold. The zone strikes at 290[o] , dips 60[o] to the southwest, and has a projected strike length of 230 metres. Prospecting also resulted in the discovery of a large zone of copper mineralization in the southeastern section of the claims.

1975 Lacanex Mining Company Ltd.

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A program of geological mapping and geochemical sampling was carried out over wide spaced (120 to 250 metre) grid lines in the southern portion of the claim block resulted in identifying a series of large linear copper geochemical anomalies which follow the regional foliation. 27 chip samples were taken at 3 metre

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intervals along the entire 82 metres of an old adit located within the Kena Copper Zone, with the samples averaging 0.16% copper over the entire length. This adit was probably driven to intersect an outcropping 65 centimetres wide quartz vein at depth. A grab sample from the quartz vein assayed 1.1% copper and 2.6 g/t gold.

1976-77 Quintana Minerals Corporation

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The program consisted of geological and geochemical surveys based on the hypothesis that visible sulphide mineralization within the Kena Copper Zone represented the upward extent of a porphyry copper sulphide system. In 1977, the Company carried out a wide spaced IP survey along lines 240 metres apart. The work resulted in a chargeability anomaly parallel to the strike of the volcanics and approximately coincident with the copper geochemical anomaly. Lithogeochemical sampling ranged as high as 21 metres of 0.53% copper along an outcrop of sericite schist.

1981-82 Kerr Addison Mines Ltd.

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Kerr Addison’s exploration program consisted of both geological and geochemical surveys conducted over the entire property followed by six diamond drillholes. Three drillholes aggregating 528.5 metres were completed on the Kena Gold Zone. The best intercept from this work was 2.18 g/t gold over 15 metres in hole 81-KK-2. Three wide spaced holes aggregating 635.2 metres were completed in the Kena Copper Zone. The top 51 metres of drillhole 88-KK-4 assayed 0.27% copper. Samples representing 63 metres of the underlying 85 metres average 0.16% copper. Sampled intervals in drillhole 81-KK-6, near the previously sampled copper adit, yielded 0.18% copper over a 45-metre section. Gold content in these copper zone holes ranged up to 0.3 g/t locally.

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1985 Lacana Mining Corporation

Lacana Mining Corporation carried out a program of backhoe trenching and drilled 13 holes aggregating 1,315.8 metres. Twelve of the holes were in the Kena Gold Zone with one hole, LK85-12, drilled approximately 175 metres south of the Kerr Addison hole 81-KK-4, at the northern end of the Kena Copper Zone.

The best drill intercept, located beneath the Kena Gold Zone Main Trench, yielded 6.05 g/t gold over 4.8 metres in hole LK85-7. While a step-out hole LK85-18 drilled about 100 metres southeast of LK85-7, yielded 1.86 metres grading 6.32 g/t gold. Other work carried out in this period included an airborne geophysical survey that measured magnetics, resistivity, electromagnetics, and VLF-EM.

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1986 Lacana Mining Corporation

Lacana’s program consisted of putting in an extensive grid covering an area about 1.70km by 0.70km northwest of the Kena Copper Zone. The company carried out geological and geochemical surveys as well as magnetic and VLF-EM surveys. The soil samples were analysed for gold, with select lines analyzed for 30 elements by ICP. The company drilled 22 holes around the Kena Gold Zone and its postulated extension. Hole LK86-20 yielded 9.03 metres grading 4.76 g/t gold. Numerous intersections of auriferous and barren silicified and pyritized fracture zones were identified in the drilling. Many of these zones tend to be aligned along a broad northwest trend. Most of the individual higher-grade zones were narrow with sub-economic grade, and the general conclusion was that their spotty and discontinuous characteristics made them difficult targets to chase to depth.

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It is important to note that Lacana’s program was designed to locate relatively narrow but higher-grade gold intercepts, where later infill core sampling by Apex indicates that, in fact, broad widths of lower grade gold mineralization exist at the Kena Gold Zone.

1987 Tournigan Mining Exploration Ltd.

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Tournigan drilled six holes aggregating 918.93 metres. The core from this program was selectively split with only 89 samples aggregating 134.61 metres analyzed for gold, silver, and copper. Drillhole TK-87-42 was collared between previous holes KK-81-4 and LK85-12, within the Kena Copper Zone, to test anomalous gold and copper soil geochemistry and where there appeared to be a gap in previous drill coverage. Hole TK-87-42 was selectively sampled with 25 samples taken of which the best copper intersection was 0.175% copper over 9.72 metres.

Drillhole TK-87-43 was drilled to test Lacana’s geological interpretation of section 48+50N. Five intervals of 1.5 metre widths grading better than 1 g/t gold were returned.

The last four holes TK-87-44 to TK-87-47 were located in order to intersect the possible southern extension of a mineralized fracture zone approximately 500 metres north of the property, known as the Shaft showing. However, no structure or mineralized zone was interpreted as the southern extension of the Shaft mineralization. This conclusion was based on incomplete diamond drill core sampling. It is important to note that Apex’s 1999 infill core sampling program obtained results up to 50.8 g/t gold over a 1.0 metre interval in hole TK-87-46, within a 60-metre segment of drill core that had never been sampled.

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1989 Golden Lake Resources Ltd.

A preliminary work program was undertaken to locate and tie in claim posts and several old grids over which much of the previous work had been completed. The results of this work were used to compile technical data with the objective of formulating a detailed exploration plan for the property. Noramco Mining Corporation optioned the property from Golden Lake in June 1990 and assumed the option agreement obligations to the prospector vendors.

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1990-91 Noramco Mining Corporation

The exploration program from July to September 1990 consisted of geological mapping, soil sampling and geophysical surveys. Work was restricted to the Kena Copper Zone in the southern portion of the property and to an area encompassing Gold Creek north of the old Lacana grid. In October of 1990, four NQ diamond drillholes totalling 1,055 metres were completed on the property. Two of the holes were in the Gold Creek area (at the very south edge of what is now known as the Gold Mountain Zone) and the other two were within the Kena Copper Zone. One of the holes into the south end of the Gold Mountain Zone returned 0.4 g/t gold over its entire 235.5 metre length, including 24 metres of 1.1 g/t gold and 9 metres of 2.3 g/t gold.

In 1991, additional geochemical, geological, and geophysical surveys plus diamond drilling were carried out on the property. Three diamond drillholes aggregating 1,074 metres were completed. Holes NK91-1 and 2 were drilled in the south and north ends of the Kena Copper Zone respectively, and NK91-3 was drilled into the Kena Gold Zone. The most significant results of this final historic exploration program

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were returned from NK91-3, which was the deepest hole ever, drilled into the Kena Gold Zone. This hole returned values at depth (from 212 to 352 metres) of >0.5 g/t gold over 140 metres width, including 10 metres of >1.5 g/t gold. Earlier diamond drillholes in the Kena Gold Zone averaged 100 to 150 metres depth.

Shaft Claims

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From 1984 to 1992, the “Shaft claims” were worked as a separate property from the “Kena Property”. The “Shaft claims” encompass the portion of Apex’s property located north of Gold Creek and contain the Shaft, Cat and Dighem showings.

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1984 Lacana Mining Corporation

Lacana completed geochemical surveys, trenching and sampling and an airborne magneticelectromagnetic survey.

1987-88 South Pacific Gold

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South Pacific Gold carried out a program of line cutting, geological mapping, geochemical soil sampling, magnetic and induced polarization surveys, and six NQ diamond drillholes aggregating 762 metres. Drilling was confined to a copper-gold occurrence referred to as the Shaft showing. Historic drilling results include 5.95 g/t gold over 1.99 metres.

1989 Golden News Resources Inc./Noramco Explorations

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Golden News Resources Inc. optioned the property in 1989. Noramco Explorations, on behalf of Golden News Resources, completed a program including line cutting, magnetic–VLF-EM surveying, induced polarization geophysical surveying, geochemical sampling, and detailed geological mapping. Results of this work, combined with those of previous exploration companies indicated three drill targets were present; the Dighem, Princess and Silver King Porphyry Contact (now called Gold Mountain) Zones.

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1990 Noramco Mining Corporation

Noramco optioned the property from Golden News in June 1990 and drilled four holes across the Dighem geochemical and geophysical anomaly. No results of any significance were obtained from this zone. Two additional holes were drilled, one at the Princess showing and one to the west of the Dighem anomaly over a second geochemical and geophysical target. The single hole at the Princess showing returned a best assay result of 11.3 g/t gold and 0.66% copper over 1.5 metres.

After 1991, no further work was done on either the Kena or Shaft claims until 1999 when Apex optioned the now amalgamated Kena Property.

6.2 Daylight Property

After the Kena property option, Apex acquired additional contiguous claims and crown granted mineral claims to the northwest of the original Kena property on what is now referred to as the Daylight property. The Daylight property hosts a few historic small-scale “mines” as referenced in BC Minfile reports. These include: Daylight-Berlin, Starlight, Victoria-Jessie, Irene and Great Eastern.

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Daylight-Berlin (BC Minfile 082FSW175):

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The claims were explored by shafts, adits and several pits or trenches at the turn of century. Production commenced in 1937, when the old workings were rehabilitated, and continued intermittently until 1949. Ore material consisted of either quartz vein material or highly silicified schists with finely disseminated pyrite and chalcopyrite. Traces of tetrahedrite and pyrrhotite are recorded. Historic production is recorded as totalling 327 tonnes with a grade of 27 g/t gold and 15 g/t silver. Also recovered were, 70 kilograms of lead and 68 kilograms of zinc.

Starlight (L684) (BC Minfile 082FSW174):

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Minor production is recorded for this claim in 1937. The occurrence lies along the Silver King Shear Zone, the core of a fold of the Hall Creek syncline. The shear zone extends over 1000 metres in width. The area contains abundant sericite, chlorite, quartz, carbonate, hematite, and epidote alteration in discrete to pervasive zones. A quartz vein up to 1.53 metres wide, within schists and volcanics contains disseminated and massive pyrite. Locally the zone is characterized by numerous quartz stringers and lenses. The Starlight vein produced 10.8 tonnes which yielded 583 grams of gold, 2936 grams of silver and 200 kilograms of copper. Free gold is contained in the vein material.

Victoria-Jessie (BC Minfile 082FSW173):

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Production is recorded from this property in 1894-95, in 1907 and again in the 1940s. A drift exposes a wide zone of alternating schist with quartz stringers and lenses in northwest trending shears or east-west cross fractures. Mineralization in the quartz is commonly comprised of pyrite, chalcopyrite, and galena, which also occur in the host rock. The mineralized zones follow zones of shearing and are conformable with the host rock which strikes 115[o] and dips 50[o] south. Historic production is recorded as 3255 tonnes of material yielding 3.79 kilograms of gold, 94.12 kilograms of silver and 83,577 kilograms of copper.

Great Eastern (BC Minfile 082FSW172):

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Minor production is recorded for this claim which was Crown granted in 1900. The claim contains a quartz vein, about 20 to 25 centimetres wide, which assayed 19.2 g/t gold and 6.86 g/t silver (Minister of Mines Annual Report, 1954). Production is reported as 34 tonnes yielding 1,276 grams of gold and 1,774 grams of silver. This showing has been worked in conjunction with the Irene (082FSW171) and Great Western (082FSW333) showings.

Great Western (BC Minfile 082FSW333):

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Several small tunnels and pits are present on the property dating back to the early 1900s.

Gold-copper mineralization occurs in zones of intense carbonate-sericite-quartz alteration in both the mafic units and in the associated felsic units. These alteration zones are 5 to 10 metres in width and several hundred metres in length. They contain 2 to 10% sulphides, dominantly pyrite with minor chalcopyrite. The sulphides occur mainly as stringers parallel to the schistosity but are also pervasively distributed. The sulphide-bearing rocks are deformed together with the host rocks, indicating mineralization predates deformation (Exploration in British Columbia, 1988). These mineralized zones are now elongate in the direction of lineation trending 147 degrees and plunging 31 degrees southeast. Some

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mineralization, however, is also concentrated in late, post-tectonic, crosscutting quartz veins. The best intersection in drill core is 7 metres which assayed 9.7 g/t gold (Exploration in British Columbia, 1988).

Irene (BC Minfile 082FSW171):

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Minor production of 15 tonnes of ore material from surface trenching and stripping was shipped in 1939 and produced 274 grams of gold and 377 grams of silver.

Organized exploration on the Daylight began in 1979 when Asarco Exploration Company of Canada Ltd. registered the Aberdeen claims. Asarco conducted a few programs including geophysics, soil sampling and diamond drilling in nine holes in the period 1972-1982. Lectus developments Ltd. began surveying, sampling, and trenching on the claims in 1986 and drilled 21 holes in 1987. Pacific Sentinel Gold Corp. did extensive work over a large area in 1989-1990, which they called the Great Western Star Project that included considerable trenching, sampling, geophysics, geochemistry and 5,880 meters of diamond drilling, adjacent to the current Daylight Property.

Results from these programs showed strong gold geochemical anomalies 1500-2000 metres long and 200300 metres wide associated with the Silver King intrusive and its western contact.

6.3 Southern Extension

Apex also acquired, by staking, claims located to the south of the optioned Kena property. These claims contain three historic BC Minfile occurrences, including two historic past producers: the Euphrates and Gold Cup Mines.

Euphrates (BC Minfile 082FSW186):

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The deposit is at the southern end of the Silver King shear zone, a wide regional zone of intense deformation. The occurrence consists of the El Tee, Minto, and Nickel Plate adits. The El Tee vein roughly parallels the regional foliation trend at surface but dips 70[o] northeast. The vein is narrow, with a maximum width of approximately 0.15 metre, and has sharp, unsheared contacts with the host rocks. Near surface, it is oxidized to shallow depths and carries significant free gold. The Lost Cabin and Minto veins, northeast of the El Tee, are controlled by poorly defined shears. These shears are approximately 8 and 4 metres wide, respectively, and roughly parallel the regional schistosity. They contain narrow stringers and lenses of quartz within sheared, chloritized volcanics with minor sulphides in the wall rocks. The Nickel Plate "vein" is a shear-controlled felsic dyke approximately 4 metres thick, which carries less than 1 g/t gold on average and generally parallels the orientation of the Minto and Lost Cabin veins. The vein systems in general host a gangue of quartz plus or minus carbonate and chlorite with galena, sphalerite, pyrite, arsenopyrite, chalcopyrite, native gold, and native silver in decreasing order of abundance.

The Euphrates showings were discovered in 1926 and development work was carried out in several adits. Small amounts of ore were put through the 10-stamp mill on the nearby Golden Age property in 1927 and 1929; the mill was destroyed by fire later in 1929. An aerial tram to the El Tee adit at 1203 metres elevation was installed in 1930 and a small amount of ore was shipped in 1931.

Work resumed in 1933 when an option on a controlling interest in Euphrates Mining was acquired by the Spokane-Idaho Copper Company of Spokane, Washington. The company extended the lower El Tee adit

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and carried out some diamond drilling. The Euphrates Mining Company resumed work on the property and approximately 381 metres of drifting and 228.6 metres of cross cutting was carried out in 1936. The workings at that time on the El Tee vein included an upper adit 53 metres long and a lower adit approximately 610 metres long. From the lower adit, crosscuts were driven 73 metres to the northeast toward the Minto vein and for 91 metres in search of the Lost Cabin vein. A crosscut was also driven 229 metres to the Nickel Plate vein, which was drifted on for 427 metres. The Minto workings included two adits: an upper adit driven 37 metres and a lower adit approximately 175 metres in length. On the Nickel Plate vein, which was a new discovery, trenching was done in 1935 and 1936. General Lee Mining & Milling Co. Inc. of Seattle carried out 610 metres of underground diamond drilling on the property in 1938. In 1940, the Gold-Silver-Tungsten Mining & Milling Co. of Seattle held the property. A 100-ton per day mill was installed, and the tramline was rebuilt. The mill operated for a short period in 1941, milling a small amount of ore from the Nickel Plate and Minto veins.

Between 1928 and 1941, approximately 272 tonnes were mined, mainly from the El Tee vein, which contained approximately 48 g/t gold, 251.6 g/t silver, 2.77% lead and 1.7% zinc.

From 1970 to 1973, geological geochemical, magnetic, electromagnetic, and self-potential surveys were carried out. In 1990, a small program of soil geochemical surveying and hand trenching was completed.

Gold Cup (BC Minfile 082FSW079):

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The area has been explored since the early 1900s, with underground workings developed in 1903 and production of 24 tonnes producing 1244 grams of gold reported in 1925. Underground development included an adit with two drifts, a winze, and a 28.5 metre shaft. A second 98-metre-long adit is reported approximately 520 metres to the northeast of the main workings.

Locally, quartz veins, usually 45 to 75 centimetres wide, crosscut the volcanics and, at lower levels, the granitic intrusive. The veins generally strike 090[o] with dips variable from steeply north to steeply south. The quartz gangue contains pyrite, chalcopyrite, bornite, covellite, tetrahedrite and rare native gold. Weathered zones also contain malachite, limonite, sericite and mariposite. Several lamprophyre dikes occur in east and northeast–striking tension fractures in the vicinity of the veins.

In 1914, a grab sample indicated values in the order of 20 g/t gold and 145 g/t silver (Geological Survey of Canada Memoir 94). No analysis for copper is reported.

In 1983, sampling of mineralized quartz material from the dump yielded 10.7 g/t gold and 23.3 g/t silver (Property File - Kokanee Resources Ltd. [1983-07-15]: Report on the Gold Cup Group - Ymir).

In 1989, chip sampling of the south vein in the main zone yielded up to 7.7 g/t gold, 11.3 g/t silver and 0.076% copper over 50 centimetres, whereas a sample of the north vein yielded 1.4 g/t gold, 26.0 g/t silver and 0.219% copper over 25 centimetres (Property File - A.S. Greene [1989-05-25]: Summary Report and Proposed Exploration Program - Gold Cup Group). Also at this time, sampling of quartz lenses exposed in trenches located 50 metres to the south and 150 metres to the northeast yielded 1.1 and 0.9 g/t gold, respectively (Property File - A.S. Greene [1989-05-25]: Summary Report and Proposed Exploration Program - Gold Cup Group).

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In 1981 to 1989, several exploration companies completed prospecting and soil sampling programs on the property.

6.4 2013 Resource Estimate

A resource estimate was prepared by Gary Giroux, dated February 7, 2013 on the Kena-Gold Mountain zone, and is presented in Table 6-1 (Giroux, 2013). This resource estimate does not conform to the current CIM guidelines because it is not confined by a pit.

Table 6-1 2013 Resource Estimate (Source: Giroux, 2013)

Au Cut-Off
(g/t)
CLASSED MEASURED CLASSED MEASURED CLASSED MEASURED CLASSED INDICATED CLASSED INDICATED CLASSED INDICATED
Tonnes>Cut-Off
(tonnes)
Grade> Cut-Off Tonnes>Cut-Off
(tonnes)
Grade> Cut-Off
Au
(g/t)
Ounces
Au
Au
(g/t)
Ounces Au
0.1 8,970,000 0.63 181,000 34,970,000 0.39 433,000
0.2 8,260,000 0.67 177,000 27,520,000 0.45 396,000
0.3 6,690,000 0.77 165,000 18,600,000 0.54 325,000
0.4 5,140,000 0.89 147,000 12,290,000 0.65 256,000
0.5 4,140,000 1 133,000 8,190,000 0.75 197,000
0.6 3,280,000 1.12 118,000 5,410,000 0.85 148,000
0.7 2,630,000 1.23 104,000 3,460,000 0.97 108,000
0.8 2,130,000 1.34 92,000 2,330,000 1.07 80,000
0.9 1,740,000 1.46 82,000 1,610,000 1.18 61,000
1.0 1,440,000 1.56 72,000 1,080,000 1.29 45,000
Au Cut-Off
(g/t)
CLASSED MEASURED PLUS INDICATED CLASSED INFERRED
Tonnes>Cut-Off
(tonnes)
Grade> Cut-Off Tonnes>Cut-Off
(tonnes)
Grade> Cut-Off
Au
(g/t)
Ounces
Au
Au
(g/t)
Ounces Au
0.1 43,940,000 0.44 615,000 261,340,000 0.29 2,462,000
0.2 35,790,000 0.5 574,000 167,900,000 0.37 2,008,000
0.3 25,280,000 0.6 490,000 90,440,000 0.48 1,399,000
0.4 17,430,000 0.72 403,000 49,640,000 0.59 946,000
0.5 12,330,000 0.83 330,000 27,270,000 0.72 627,000
0.6 8,690,000 0.95 266,000 16,050,000 0.83 430,000
0.7 6,090,000 1.08 212,000 9,310,000 0.97 291,000
0.8 4,460,000 1.2 173,000 6,110,000 1.09 215,000
0.9 3,350,000 1.32 142,000 4,200,000 1.21 163,000
1.0 2,530,000 1.45 118,000 2,740,000 1.34 118,000

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Geological Setting and Mineralization

7.1 Regional Geology

The Kena Project is situated within the Elise Formation of the Rossland Group. The Rossland Group, within the southern Omineca Crystalline Belt, is an uplifted zone of variably metamorphosed and deformed Proterozoic to Tertiary rocks that straddles the boundary between accreted terranes and ancestral North America. The belt includes a series of structural culminations, typically cored by Paleoproterozoic crystalline rocks, and flanked in the intervening depressions by rocks like those in the Foreland Belt to the east. Accreted rocks of the Slide Mountain and Quesnellia terranes structurally overlie these rocks.

The Omineca Crystalline Belt comprises an imbricated succession of thrust sheets that were transported eastward in Mesozoic time. This tectonism was accompanied by intrusion of granitic bodies and localization of a variety of structurally controlled vein deposits. In early Tertiary time, regional extension resulted in local uplift of core complexes as cover rocks were displaced along low angle normal faults. This extension was associated with widespread mafic volcanism, intrusion of alkalic rocks and, locally, vein and shear hosted mineralization.

The Rossland Group is the most eastern belt of volcanic rocks within Quesnellia, a terrane that comprises dominantly arc volcanics and associated sediments that were accreted to North America in Middle Jurassic time. These rocks tectonically overlie pericratonic rocks of the Kootenay Terrane or miogeoclinal Proterozoic to lower Paleozoic rocks that were deposited on the western ancestral margin of North America. The tectonic boundary between Quesnellia and pericratonic rocks is locally marked by mafic volcanic rocks and associated ultramafics of the Slide Mountain Terrane, which is interpreted to record deposition in a marginal basin or back-arc setting that separated Quesnellia from North America. In the Rossland-Nelson area, overlap assemblages - rocks deposited after collision of accreted rocks with North America – include the Cretaceous Sophie Mountain Formation and Eocene Marron Formation.

7.2 Local and Property Geology

Detailed geology of in the Kena area is documented in BCGS Bulletin 102, titled “Early Jurassic Rossland Group, Southern British Columbia – Part I Stratigraphy and Tectonics” by T. Hoy and K. Dunne (1997). The following descriptions of the Hwy 6 portion of the Elise Formation volcanics, and the Silver King intrusive bodies are extracted directly from the publication. Highway 6 passes through the property and the lithologies described host the Kena mineralization.

7.3 Elise Formation

A complete section of the Elise Formation (Elise) is exposed in the east limb of the Hall Creek syncline. It has been subdivided into a lower and upper division. The lower Elise lies with apparent conformity on sedimentary rocks of the Ymir Group; a few argillite beds persist through the lower part of the lower Elise. It is a sequence of dominantly mafic flows and flow breccias, minor lahars and tuffs up to one kilometre thick.

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A coarse-grained augite porphyry flow breccia is the dominant lithology of the lower Elise. Clasts and matrix are essentially augite porphyry with euhedral to subhedral augite or augite pseudomorphs up to one centimetre in diameter in a finer grained matrix of secondary plagioclase, biotite, chlorite, epidote, and carbonate. Massive augite porphyry flows, with little evidence of brecciation, are not common.

The upper Elise is a sequence of mafic to intermediate flows, tuffs and minor epiclastic deposits up to 2,500 metres thick. A number of cyclical sequences of pyroclastic rocks that typically grade upward from lapilli tuff to crystal tuff or fine tuff are common. Augite porphyry flows and flow breccias are a minor constituent.

The dominant lithology of the upper Elise is a plagioclase-augite lapilli tuff of andesitic to shoshonitic composition. Clasts are generally darker than their matrix due to the preferential alteration of the fine-grained matrix to calcite, epidote, and secondary plagioclase.

Crystal tuffs are commonly a lateral or vertical facies of the lapilli tuffs and are similar in composition. They are characterized by up to 20% plagioclase and typically only a few percent augite. The crystal tuffs are generally massive; only rarely is layering noted. However, a penetrative foliation, conspicuous in most outcrops, may mask many primary features.

Fine mafic tuff occurs as dark green, fine-grained layers commonly associated with augite porphyry units. Several percent broken, commonly sausseritized plagioclase phenocrysts, less than one millimetre in diameter, and rare quartz crystals are the only primary textures preserved in the tuff. A penetrative foliation is defined by aligned biotite.

7.4 Silver King Intrusions

A number of generally highly deformed feldspar porphyries, referred to as the Silver King intrusions occur within the Elise Formation on the Kena Property. They have been dated as Aalenian to Toarcian and are interpreted to be collisional granitoids. Many are associated with copper, gold, and silver mineralization.

The main Silver King intrusive body can be traced southeast from Giveout Creek. Several smaller lenses border this intrusion and others occur on the western slopes of Mount Elise. Outcrops of Silver King intrusions are typically cream-coloured and form resistant ridges. Contacts with Rossland Group rocks are either sharp and discordant or intensely sheared. The Silver King pluton is sheared along its margins. Commonly, smaller lenses form sericite phyllites that resemble foliated felsic volcanic rocks. These contact relationships and the foliated to massive nature suggest that the Silver King intrusions are a pre to synkinematic suite.

The Silver King plutonic rocks are porphyritic, characterized by 30 to 60% euhedral to subhedral plagioclase phenocrysts, 5-10 millimetres in size in a fine-grained greenish grey groundmass. Quartz content ranges from 1 to 2%; grains are commonly resorbed which may indicate a high-level of intrusion. Generally, primary mafic minerals are not preserved although acicular secondary hornblende needles are locally observed. Accessory sphene and ilmenite are common; apatite is rare.

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The Silver King intrusion has been strongly altered and sheared. Plagioclase twinning is commonly obscured by intense saussuritization and the inner zones of the phenocrysts are replaced by clusters of sericite needles. Mafic minerals are almost totally replaced by chlorite and calcite. The groundmass comprises abundant secondary albite, epidote, carbonate and often 10 to 50% interlocking aggregates of quartz grains and sericite mats.

Based on major element chemistry, Silver King intrusive samples are dominantly quartz monzodiorites and granodiorites. Most Silver King samples plot in the calc-alkaline field on a total alkali-silica plot, in contrast with high potassium or alkaline character of many synvolcanic Early Jurassic plutons.

7.5 STRUCTURE, ALTERATION AND MINERALIZATION

The structure, alteration, and mineralization of the Gold Mountain, Kena, South Gold, Kena Copper, Daylight and Shaft and Cat Zones are discussed separately below.

7.6 Gold Mountain Zone (“GMZ”)

Several outcroppings of Silver King intrusive occur on the property. This unit is especially prominent along the west side of the claim area where it forms a topographically significant ridge. In the Gold Mountain Zone, the eastern margin of this large body is in contact with Elise volcanics on a plateau area at an elevation of about 1400 metres; outcrop is rare.

In the GMZ, the Silver King unit is a coarse to medium-grained plagioclase-hornblende porphyry. It is locally siliceous, and in places weakly to strongly flooded with secondary potassium feldspar. Plagioclase is weak to moderately sericitized, and hornblende is weak to locally highly chloritized. Epidote alteration is evident in many areas. The porphyry is locally mineralized with 1% to 5% disseminated pyrite, traces of molybdenite, chalcopyrite, malachite, and stringers and disseminations of magnetite and specular hematite.

Gold mineralization occurs predominantly as finely disseminated free gold grains within both the intrusive and volcanic rocks in the vicinity of their eastern contact. The gold grains often occur adjacent to pyrite grains or within narrow quartz veinlets, both of which show deformational characteristics, indicating that gold emplacement is either pre or syn-kinematic. Thin sections examined during petrographic studies show that very minor amounts of gold also occur as tiny inclusions in pyrite grains, indicating an older gold phase (Wells, R.C., 2001). As well, minor amounts of gold can be seen along narrow fractures, indicating a younger gold phase or late remobilization of the earlier gold.

After discovery of the unique style of gold mineralization by Apex in the Gold Mountain Zone in 2000, detailed studies on structure and alteration related to the gold mineralization were undertaken and are summarized below.

A portion of the structural geology study on the Gold Mountain Zone, by consultant David Rhys, P.Geo. (2001), for Apex is summarized here:

Lithologies in the vicinity of the Gold Mountain zone are affected by 120-160[o ] striking azimuth, moderate to steep southwest dipping phyllitic penetrative foliation (S1) that is defined by the platy alignment of

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phyllosilicate minerals, and the flattening of clasts and phenocrysts. Foliation intensity is greatest in the volcanic sequence. The Silver King porphyry is frequently unstrained or affected by spaced S1 cleavage surfaces with sericite or chlorite coatings. Local highly cleaved domains of spaced S1 foliation that are developed over intervals of several metres in some Gold Mountain Zone trenches define distributed zones of higher strain that may represent weak shear zones.

A second, spaced cleavage, possibly corresponding with S2 locally occurs in some areas; it usually has a more northerly strike than the earlier S1 surfaces. A composite elongation and crenulation lineation (L1) plunges shallowly to the southeast within the plane of S1; the lineation is frequently visible on spaced foliation surfaces in the Silver King porphyry and may aid in re-orientation of drill core.

Several shear zones comprising discrete areas of penetrative foliation development and grain size reduction are present in the Silver King porphyry. The shear zones trend north with moderate to steep west dips, oblique to the northwest trend of S1 foliation, but subparallel to S2 spaced cleavage surfaces. The largest of these identified during this study is exposed in outcrop along line 1400N between 320-330E, where the shear zone is at least 10 metres thick, before outcrop exposures terminate in overburden. Shear zone exposures occur along a linear, coincident apparent chargeability and resistivity low that may reflect the alteration of feldspars to phyllosilicate minerals in the structure, and the lack of, or low pyrite content in this structure when compared to adjacent porphyry exposures. Narrower shear zones of this type are also present near and/or along the Silver King porphyry contact.

Apart from minor structures defined by closely spaced sets of joints and fractures, and possible faults in rare areas of ground core, no brittle faults were observed in trenches or drill core.

To assess the potential morphology of mineralized zones, planar features including fractures, joints, cleavage, pyrite +/- quartz veinlets, and Fe-oxide veinlets and joint coatings probably after pyrite were measured in trench exposures. Fractures and veinlets display similar orientations, and have predominantly steep to moderate southerly dips, with strikes ranging from 330-150[o] , although some veinlets have shallow northeast and southwest dips. A cluster of steep northeast to north dipping orientations is also apparent, but not as abundant as the southerly dipping sets. Shallow dipping features and those with north to northnortheast trends are rare. When veinlets of all thicknesses are plotted independently, the same patterns are apparent, with the majority of veins having moderate to steep southwest to south dips; the same orientations are also apparent in mineralized portions of the Elise volcanic rocks adjacent to the porphyry. When only veinlets measured in intervals grading >2 g/t Au are plotted separately, orientations are similar, indicating consistent veinlet and fracture orientations in areas of all Au grades, alteration styles and lithologies.

In 2003, Dr. Trygve Hoy mapped and studied much of the Kena Property, and concluded:

On a regional scale, gold appears to be mainly concentrated in the northern part of the Silver King intrusion, in fairly close proximity to the Elise Formation contact. Original gold mineralization can probably be related to a gold porphyry system, with associated potassic (K-feldspar) and variable magnetite content. The preferential distribution of magnetite, and possibly gold, in the north may reflect originally higher levels in the Silver King intrusion. The distribution of locally higher-grade gold zones along the

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eastern margin of the Silver King intrusive and in the Elise Formation appears to be, at least in part, also structurally controlled.

The pronounced northerly orientation of units, including the Silver King, dykes, alteration assemblages and many of the magnetic linears is due mainly to flattening and attenuation during Phase 1 deformation. This flattening would also have attenuated zones within the upper levels of a porphyry system that contained variable but locally higher gold zones. It appears to be more pronounced in less competent (phyllitic) units, but virtually all phases of the Silver King, and even competent, virtually massive K-feldspar and gold enriched zones have a weak penetrative fabric, and early fractures appear to have rotated into a more northerly trend. Hence, it is believed that the main role of Phase 1 deformation is reorientation of early porphyry style gold mineralization and related alteration.

Phase 2 shearing appears to have locally upgraded gold content in the northern part of the Silver King intrusion. On a regional scale, Phase 2 shears are magnetite destructive and coincide, at least in part, with the prominent regional magnetic low. This low is associated, in general, with zones of elevated gold content and locally with higher pyrite content. In the northern part of the Gold Mountain Zone, the more western of these zones is fractured and veined and contains higher gold content. In trenches here it appears as a northwest-trending zone of brittle shearing, with veins that may contain elevated gold, trend at a slight angle westward from the regional foliation and a late mafic dyke. Farther south, north-trending brittle fracturing and shearing, with magnetite removed or replaced by pyrite?, contains higher gold content. In intensely sheared (ductile) zones, and in areas of mylonite, gold content is typically lower.

Late northeast-trending faults appear to coincide with areas that also have elevated gold content. However, these structures appear to be mainly post-Tertiary in age and cannot be directly related to these increased gold values. It is possible, however, that more north-trending late structures, as occur in the South Gold Zone, may remobilize and upgrade gold content.

Alteration assemblages found throughout the Silver King intrusive appear to have important relationships to the gold mineralization. Conclusions from an alteration mapping study, conducted by Kathryn Dunne, P.Geo., 2001, are as follows:

Host rock composition (diorite), Au grades (average >1 g/t?), sulphide mineralogy (hydrothermal magnetite, pyrite), alteration distribution (K-silicate: magnetite-K-spar-biotite and sericitic: sericitequartz-pyrite +/- gypsum), quartz veinlet stockworks and low silver content (<3 ppm) are consistent with a porphyry gold depositional setting [see for example: Marte, Lobo, and Refugio (Sillitoe, 1995)]. The distribution of magnetite, magnetite + pyrite and pyrite dominated zones may reflect depth of alteration with magnetite dominant possibly at deeper levels. The sericitic alteration may be an overprint on the K- silicate alteration. The sericitic alteration (pyrite dominant) contains quartz +/- tourmaline veinlet stockworks that host the bulk of the gold mineralization. Sillitoe (1997) notes that the presence or absence of sericite overprint does not seem to exert any control on gold content in porphyry gold deposits.

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7.7 Kena Gold Zone

The Kena Gold zone occurs in disrupted Elise Formation volcanics along the flank of the Silver King stock. It includes several dykes and sills of monzodiorites, andesite porphyry, and Silver King porphyry. Gold mineralization occurs in silicic, pyritic crackle breccia that is related to sub-concordant dioritic intrusions.

Broad bands of potassic alteration and silicification occur at the margins of the intrusions, and the best gold mineralization occurs where silicification intersects strong fracture systems, the strongest of which trend due east and dip steeply south. These are associated with gold concentrations of less than 3 g/t. Base metals are not common. Chalcopyrite, sphalerite, and galena are disseminated in quartz veins, or occur as massive sulphide veinlets adjacent to dioritic rocks.

Not all the silicified zones contain gold. Some quartz occurs as vuggy epithermal-style veins.

7.8 South Gold Zone

A 5-kilometre-long magnetic feature, which is believed to be an important regional control on gold mineralization, trends from the Gold Mountain Zone, through the Kena Gold Zone and into the South Gold Zone. Prior drilling in the South Gold Zone, within Elise Formation volcanics yielded gold results like those in the other gold zones, with occasional high-grade pyritic shoots occurring within lower-grade zones of silica-potassium alteration.

7.9 Kena Copper Zone

The Kena Copper zone demonstrates alkalic copper-gold porphyry-style mineralization that is associated with a probable monzodiorite complex. Chalcopyrite and pyrite occur as disseminations, as fracture fillings, and as quartz veinlets in the intrusive rocks. Disseminated and fracture-filled pyrite occurs in the tuffaceous units of the Elise Fm. Malachite is common.

The area is marked by sericitic and limonitic shear zones that are parallel to foliation, and by propylitically altered zones with moderate to intense fracturing. Local occurrences of magnetic and secondary biotite are indicative of a broader zone of potassic alteration centred on the monzodiorite complex. Quartz veins and stockworks, some of which contain pyrite and chalcopyrite, cross and follow foliation, and may suggest multiple periods of emplacement.

7.10 Shaft and Cat Zones

Widespread mineralization in the Shaft and Cat zones consists of chalcopyrite, pyrite, and magnetite as disseminations and fracture fill in brecciated, altered andesite and sub-volcanic dioritic sills, which occur as possible breccia pipes along a northwest-trending shear zone adjacent to the Silver King-Elise Formation contact.

These zones may record gold-copper mineralization that is unrelated to the Silver King porphyry system. Gold appears early, is associated with chalcopyrite and magnetite, and is concentrated in a fractured, diorite intrusive phase of the Elise Formation (Hoy, 2003).

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7.11 Daylight Zone

The Daylight property lies on the western flank of the main Silver King intrusion and within intensely altered and sheared Elise Formation volcanic rocks. The geology in this area has been subjected to a series of tectonic events resulting in regional folding and shearing, with the most prominent fold in this area being the Hall Creek Syncline. The penetrative foliation of the Elise formation parallels the axial plane of the syncline with the dominant foliation being steeply dipping with an average trend of 120-140°.

Northwest of the closure of the Hall Formation, at deeper structural levels the core of the syncline forms a zone of intense shearing more than a kilometre in width. This shear zone is referred to as the Silver King Shear and runs through the Elise Formation as well as the intrusive rocks of the Silver King porphyry stocks. The Silver King Shear is host to several deposits including the Silver King Mine adjacent to the Daylight property.

Gold mineralization on the Daylight property occurs as two distinctive styles (Brown, 2018; AR37536):

  • 1) The historical Great Western and Great Eastern mines on the property are underlain by the Silver King Porphyry near its southwestern contact margin with the Elise volcanics. Mineralization is in the form of sheeted quartz vein systems with accessory pyrite-chalcopyrite and rarely galena or sphalerite. Individual veins are typically 0.2 to 2 centimetres, but brittle arrays of these veins may infiltrate the Silver King intrusion over widths of several metres to 10s of metres. Alteration proximal to the mineralized zones usually comprises silica-sericite+/-chlorite and limonite and or hematite staining both as fracture-fill and pervasive alteration. More distal, chlorite-epidotecarbonate+-sericite alteration pervasively affects the host Silver King. Mineralization is structurally controlled with contributions seeming from both the Silver King Shear system (135/65), and by westerly striking fractures with steep north dips. Locally, gold grades can be high grade (e.g. DDH DL17005: 63.7 g/t Au over 0.9 metres), but more typically grades are between 1 and 10 g/t over large widths of sheeted veining (e.g. DDH DL17007: 1.09 g/t Au over 71 metres).

  • 2) The historic Starlight, Victoria and Daylight mines are aligned along a single, mostly continuous quartz vein traceable through the Daylight property area for at least 1300 metres. The vein is hosted almost entirely within the Elise volcanics, although in places it appears to share its structure with dykes of Silver King intrusive. The vein is conformable to both the fabric of the Silver King Shear zone, and to the Silver King/Elise contact located about 400 metres to the northeast. The vein pinches and swells dramatically with widths locally approaching 1.5 metres at the Starlight and Victoria mine areas but is more typically 0.5 metres wide or less. Good portions of the exposed vein pinch down to almost no quartz vein material with only strong shearing with micro veins as evidence of the controlling structure. Gold mineralization has a strong affinity for the vein and its immediate contact margins, with only rare samples returning anomalous gold in the host volcanics.

  • 3) Mineralization typically includes pyrite or rarely pyrrhotite, with minor chalcopyrite, and occasional coarse grains of galena or sphalerite. Alteration of the immediate host rocks typically includes chlorite-silica-sericite+/-limonite-goethite and rare epidote. Mineralization is primarily conformable along a predominant strike of 130-140[o] , with dips at the Starlight-Victoria 55-70[o] to the northeast. Dips appear to shallow slightly to around 45[o] degrees near the Daylight mine. A second mineralized fracture set is apparent on approximately 306/77. It is suggested here that the discontinuous nature of the Daylight-Starlight vein system may be due to strong linear ore-

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shoot control. A calculated intersection lineation of the subsidiary veins with the conformable vein set suggests a hypothetical ore-shoot plunge of 31[o] to azimuth 314[o] . The Daylight/Starlight vein system can produce bonanza grade intercepts, but along geometrically or volumetrically limited dimensions.

In 2009, Dr. Jim Oliver, P.Geo., a well-respected geoscientist, produced the following recommendations and conclusions after evaluating the Gold Mountain, Kena Gold, South Gold, Great Western, Shaft, and Cat zones by field mapping and the examination of drill core.

  • Of the several high-strain zones that are commonly mineralized, the eastern contact between the Silver King porphyry and Elise Formation volcanics, representing the Gold Mountain-Kena Gold trend, is the most persistent, and could be defined as the Kena Deformation Zone (KDZ). Widespaced drilling over its entire length could help to define the bulk of Kena gold mineralization.

  • Of the drilling intersections of greater than 7.0 g/t Au, evaluate which ones are open in any direction, and devise a systematic exploration plan that involves down-dip and along strike stepout drilling.

  • Embayments or irregularities in the contact between the Silver King and the Elise Formation, identified by offsets in geophysical data, should rank as higher priority exploration areas than where the contact is linear. If the KDZ has dextral movement (Hoy, 2003), then right-handed offsets will produce dilatant points with potentially enhanced gold mineralization. If the KDZ has sinistral movement (Rhys, 2001), then left-handed offsets are prospective. Limited data suggest that at the time of mineralization, the KDZ is also a reverse high strain zone; therefore, the structural zone will dilate when it flattens and becomes prospective for gold mineralization. The reverse nature is the principal reason why steeply dipping deformation zones distal to intrusivevolcanic contacts are typically less strongly gold mineralized than the shallower dipping KDZ.

  • Based on the technical data, the high strain zones that exist west of the KDZ, such as Great Western and North, have weaker alteration signatures, weaker strain profiles, and decreased continuity. Therefore, these are weak and low priority targets.

  • Based on the similarity between the Gold Mountain and Kena Gold zones, there is potential for the same type of mineralization between the Kena Gold and South Gold zones, which have similar lithological and geological styles. This poorly drilled gap should be investigated further.

  • Potassium oxide (K₂O) may indica te enhanced potassic alteration within the Silver King intrusion, enhanced development of secondary biotite within the Elise volcanics, the presence of volcanic inliers in the Silver King (e.g., GMZ), or the presence of secondary biotite or K-feldspar in association with altered dioritic intrusions (e.g., Kena Copper). Soil geochemistry ICP results can be used to correlate K₂O to gold or copper mineralization.

  • The geophysical and geological data do not often correlate well. An evaluation of the geophysical, surface, and drilling data should help to form better associations. For example, resistivity is a good tool for mapping alterations in both the Silver King and Elise units.

  • Gold Mountain mineralization may not represent a porphyry-style Au-Cu system. Some of the historic work at Kena has suggested that high-grade mineralized zones reflect a late-stage structurally controlled gold event that has been superimposed on a broader lower-grade potentially porphyry-style mineralizing process; however, the data would argue against this. Gold mineralization in the GMZ is closely tied to dilatant zones within high strain zones that are associated with the contacts between the Silver King and Elise Formation. Shear and extension

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vein systems whose geometries can well be explained by two-dimensional strain interpretations occur at Kena. However, the bulk of the gold mineralization, in these areas, is most likely associated with broader-scale lithological controls, changes in bulk rock competency, and differences in anisotropy. Broad zones of lower-grade gold mineralization will be contained within thick panels of rock developing at or near changes in the bulk rock modulus. Under these conditions, more complex fracture patterns and locally inconsistent plunge and dilatant orientations become the hallmark of mineralized zones and are associated with 3-D strain patterns. The 100- to 150-metre-wide envelope of enhanced potassic alteration, enhanced flattening strains, and magnetite destruction at the eastern intrusive-volcanic contact is the best manifestation of the scale and intensity of the auriferous system operating under these conditions. Under these parameters look for the formation of moderate to steep dipping highergrade mineralized zones or shear-hosted veins, which are flanked by shallow-dipping extensional veins and veinlets. Both sets are formed synchronously and neither have a requirement for a porphyry association. Those kinds of grade panels and orientations are easily recognized in grade thickness blocks of this occurrence.

  • The gold and copper grade width relations within the Kena Copper area suggest than in this environment a porphyry copper-gold model may be correct. Copper-gold mineralization is preferentially associated with dioritic sills and intrusions within the Elise Formation volcanics. Deformation zones in this mineralizing environment may have a weaker roll and significant goldcopper mineralized zones may develop independently of the position of the Silver King -Elise contact. In addition, there is a positive qualitative correlation between copper and gold of approximately 1000 ppm Cu to 100 ppb Au, and well-developed gold-copper zonation patterns are emerging. If a porphyry copper-gold system exists, the current technical data strongly suggests that it will lie to the southeast and represents one of the highest priority target areas on the Kena property.

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Deposit Types

The main deposit types that have been explored for on the Kena Project are spatially associated with the Silver King intrusions and described below by Giroux in 2013.

These include a gold porphyry system within the Silver King intrusion (Gold Mountain Zone), conformable gold within the Elise volcanic rocks marginal to the intrusion (Kena Gold Zone), and alkalic copper-gold porphyry (Kena Copper Zone).

The deposit types can be large and require extensive drilling to define the mineralization. Structurally controlled higher-grade shoots and zones may also occur within or as offshoots from the larger mineralized zones.

Additionally, the Euphrates and Gold Cup showings peripheral to the Silver King might represent an orogenic gold model. The Dighem zone in the northwest area of the claim block suggests the potential for a volcanogenic massive sulphides deposit.

TerraLogics describes the Great Eastern/ Great Western zone appearing be like the Silver King shear hosted deposits, and the Daylight deposit as vein hosted outcropping at surface (2018).

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Exploration

Between 2000 and 2010, Apex completed several exploration programs as summarized below.

From 2000 to 2003, significant exploration programs on the Kena Property were conducted. Work consisted of 97 diamond drillholes, ground and airborne magnetic surveys, induced polarization surveys, soil sampling, mapping and rock chip sampling and trenching. Between 2003 and 2010, continued annual exploration by Apex on the Kena and Daylight Properties has consisted of soil and rock chip sampling, geophysical surveys, geological mapping, trenching and additional diamond drilling.

In 2011, Apex optioned the Kena property (not including the Daylight) to Altair Gold Inc. In 2012, Altair completed an exploration program which included soil sampling, rock sampling, ground geophysics, geophysical compilation, diamond drilling and a LiDAR survey. The property subsequently reverted to Apex.

In 2016, the Kena and Daylight Properties were optioned to Prize/Boundary. Prize completed no additional exploration work on the Kena Property but in 2017 did mapping, prospecting, soil geochemical and geophysical surveys, trenching, environmental (water) sampling and diamond drilling on the Daylight Property. Detailed reports on each of the annual exploration programs have been filed as assessment reports with the Ministry of Energy and Mines.

In December 2020, West Mining Corp. purchased the Kena and Daylight Property option from Boundary but have completed no exploration work on the property to date.

Exploration work on the project is conducted using metric units. The coordinate system used at Kena is Universal Transverse Mercator (UTM) North American Datum of 1983 (NAD83), Zone 11.

9.1 Kena Property Exploration

Exploration on the Kena Property since 2002 includes several phases of soil sampling, numerous rock sampling campaigns, trenching in 2000, 2001, 2003 and 2008 and geophysical surveys and are summarized here.

Kena Soil Geochemistry

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The Kena property has seen several phases of soil sampling, most notably by Noramco, Apex, and Altair. The Gold Mountain, Kena Gold, Kena Copper, South Gold, Three Friends, and Euphrates zones have had extensive to minor coverage. The soil geochemistry for gold is presented in Figure 9-1, and the soil geochemistry for silver is presented in Figure 9-2

Soil sample grids were orientated perpendicular to the expected trend of mineralization, with lines spaced 100m apart and samples collected at 25m spacings. Line spacing was decreased to 50m in areas that showed prospective results. In 2001, a large soil grid was put in for 9.6km south from the existing South Grid to cover the extent of the Silver King intrusive. Grid lines were run at 200m spacings with 50m soil stations. Six small areas with elevated gold soil values were found, three of which correlate to historic workings.

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The grids were established using a compass and hip chain, and sites were identified using grid coordinates, which were then converted to actual based on coordinates derived using a handheld Global Positioning System (GPS) device. Sampling methodology is discussed in Chapter 11, Sample Preparation, Analyses, and Security.

In the GMZ, the gold-in-soil values over the Silver King intrusive, and its contact with the Elise volcanics, are significantly elevated when compared to those in the adjacent rocks. The gold soil anomaly trends at 130[o] for almost 3km and ranges from 0.6 to 1.4km in width. Copper values are low; however, those at the eastern edge of the Silver King are elevated. A linear feature within the intrusive also returned higher copper values.

The Kena Gold zone appears as a 1.2km long and 300m wide gold soil anomaly. Spotty high-grade gold soil values of up to 1.27g/t occur along the western edge of the Kena Gold zone where there are outcrops of the Silver King intrusive.

The South Gold zone shows as strong, cohesive gold anomaly that occurs over Elise volcanics west of the Silver King intrusive. One soil sample returned a result of 2.57g/t gold. There is a moderate copper soil anomaly associated with the zone.

A strong copper soil anomaly, with several copper results greater than 1,000 parts per million (ppm), defines the Kena Copper zone, which occurs southeast of the South Gold zone. It averages 400m wide and extends for 2.3km in a northwest-southeast direction.

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Figure 9-1 Kena Project Soil Geochemistry for Gold (Source: MMTS, 2021)

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Figure 9-2 Kena Project Soil Geochemistry for Copper (Source: MMTS, 2021)

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Soil sample results indicate that there are additional copper and gold anomalies in the Three Friends and Euphrates zones.

Kena Rock Geochemistry

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From 2000 to 2010, Apex completed numerous rock sampling (combined with prospecting and geological mapping) campaigns over most of the Kena and Daylight properties. Elevated gold, silver and copper values were obtained from grab and/or chip samples relating to the numerous historic and new showings on the large claim holdings.

Kena Trenching

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Trenching programs occurred during 2000, 2001, 2003, and 2008. Forty-four trenches were excavated in the Gold Mountain, South Gold, and Kena Copper zones distributed as shown in Table 9-1.

Table 9-1

Kena Summary of Trenching

Year Zone Count
2001 and 2001 Gold Mountain 21
2003 Gold Mountain and South Gold 15
2008 Kena Copper 8
Total 44

In 2000, trenching defined the ‘discovery’ area of the Gold Mountain porphyry-style mineralization. Trenching in 2001 followed up favorable results from 2000. Visible mineralization consisted of pyrite as fresh looking, irregularly shaped disseminated blebs, and as fracture fill (often altered to limonite and/or goethite). Coarser blebs of pyrite occur in less-altered parts of the Silver King intrusive. Minor quantities of chalcopyrite are also present. The sulphide content varies from 1% to 5%; however, the gold content does not always directly correspond. Based on the results of this trenching, it was discovered that mineralization in the Silver King is extensive and homogeneous over broad widths.

In 2003, trenches were excavated along a magnetic-low corridor that was identified by airborne geophysics. The intent was to follow and cross the structures in the magnetic feature, and to provide exposure for structural geology studies. Trench, 03TR-7, which intersected quartz veinlets with coarse visible gold, returned an assay results of 66.83 g/t Au from a 2m sample.

In 2008, trenching in the Kena Copper zone consisted of digging eight wide-spaced trenches, which tested 1.9 kilometres of a 2.5-kilometre-long copper soil anomaly. Three trenches returned assay results indicating elevated copper values; however, trench KCT-01 intersected the best intercept of 0.26% Cu over 56 metres. The other trenches contained low concentrations of copper. Two trenches, KCT-02 and KCT-06 each returned gold values of 0.84 g/t over 2 metres and 0.76 g/t over 2 metres, respectively.

During 2007, Apex sampled an historic exploration drift in the Kena Copper zone, which returned results of 0.51% Cu over 26 metres (including 2 metres of 1.65% Cu and 0.53 g/t Au).

A summary of significant results from trenching is shown in Table 9-2.

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Table 9-2 Kena Trenching Significant Sample Results

Zone Year Trench ID From
(m)
To
(m)
Width
(m)
Au (g/t) Cu (%)
Gold Mountain 2000 TR-1
Including
0
15
49
18
49
3
1.58
6.26
TR-2
Including
0
49
55
52
55
3
1.26
3.86
TR-3
Including
0
6
22.2
9
22.2
3
2.3
11.38
TR-4
Including
0
3
20.5
6
20.5
3
1.43
4.92
TR-5
Including
0
24
27
27
27
3
0.84
1.51
TR-6 0 9 9 0.2
TR-7
Including
0
2
6
4
6
2
0.58
1.29
TR-8
Including
0
6
39
9
39
3
0.78
1.61
TR-14
Including
0
21
24
24
24
3
0.51
1.12
Gold Mountain 2001 01TR-2
Including
0
21
24
24
24
3
1.28
2.35
01TR-4
Including
0
6
36
9
36
3
0.22
1.31
01TR-5
Including
0
60
84
63
84
3
0.29
1.21
01TR-6
Including
0
12
15
15
15
3
0.79
1.44
Kena Copper 2008 KCT-01
including
including
0
12
28
56
14
32
56
2
4
0.137
0.302
0.165
0.26
0.67
0.74
KCT-04
including
KCT-06
0
18
20
48
28
40
48
10
20
0.102
0.226
0.131
0.1
0.27
0.11

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Kena Geophysics

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Geophysical studies including induced polarization, airborne magnetics and radiometric, and ground magnetometer have been conducted at the Kena property and are discussed here.

Kena Induced Polarization Survey

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Induced polarization surveys have been completed over much of the grid areas on the Kena and Daylight Properties. For results and conclusions of these surveys see report by P.E. Walcott, 2001, and BC government assessment reports by L. Dandy 2001-2003.

Kena Airborne Magnetics and Radiometric Survey

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Late in 2003, a Fugro helicopter assisted airborne radiometrics and magnetics survey was flown over the northern portion of the Kena Property. An area of 7 by 3 kilometres was surveyed with 100 metre spaced flight lines.

The government regional high level magnetic map shows a large magnetic low some 18 kilometres in length trending north-westwards through the property. Its eastern extent appears to be spatially related to the Cottonwood Creek and Salmo River stream beds. Two east-west offsets are visible, one in its centre region in the Great Western - Gold Mountain - Shaft area, and the other in the south along a bend in the Salmo River. Fourteen known showings and former small producers (information from BC Government Minfile) lie within this magnetic low feature.

This regional magnetic low and other magnetic features appear to have little to do with the surface geological units as seen by comparison with the regional geology after Hoy & Dunne. This is well illustrated by comparing the geology with the vertical gradient results from the low level heliborne survey where shallow source magnetic features can be seen trending northwesterly through both rock units.

A narrow, shallow, 6km long, positive magnetic feature can be observed trending across the eastern part of the survey area. This feature strikes north northwesterly in its northern part, where it is better defined and northwesterly to the south where its magnitude tails off. This steeply dipping dyke-like magnetic intrusive corresponds to the dioritic dyke described by Hoy & Dunne. Its contact with the volcanics is not recognizable in holes drilled across the same in the vicinity of the Cat and Shaft showing except based on magnetic susceptibility, so the regional metamorphism must have been intense, or it was only magnetite intruded into the volcanic package and not a different rock. The Cat, Shaft, Kena and South Copper-Gold Zones all lie along or are spatially related to this feature, the mineralization of which was presumably brought in by hydrothermal solutions along the same conduit(s) before or after those that brought in the magnetite.

Similar sub parallel and more subtle positive magnetic features are discernible in the underlying Silver King rocks in the northeastern part of the survey area on the plot of the vertical gradient. These are better defined on the plot of the high frequency magnetics, a plot of the short wavelength responses of shallow narrow sources. These could also be attributable to magnetite brought in by hydrothermal solutions, as aforementioned.

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Drillholes 01GM-20, 02GM-53, 02GM-62, 03GM-65 and 03GM-71, widely spaced holes drilled into and across one of these northwest trending features, all intersected narrow high grade gold mineralization in the hanging wall in close proximity to intrusive dykes and/or zones of higher magnetic susceptibility. This could suggest that the gold mineralization came in along the same conduits before or after the dykes and/or magnetic intrusions.

The radiometric survey appeared to be adversely affected by the overburden and did not make any additional contribution to the understanding of geology and mineralization.

Kena Ground Magnetometer Surveys

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In 2003, a ground magnetic survey was completed to extend to the north the strong magnetic low feature identified by the airborne magnetic survey. The survey over the GMZ was conducted using a Geometrics G816 Proton magnetometer, which measures the total intensity of the earth’s magnetic field with sensitivity up to ±1 nanoteslas (nT) using proton precession.

This survey shows the magnetic low feature extending to the Giveout Creek valley, where it is offset to the east by approximately 200 metres, then continues north trending through the centre of the Athabasca workings. It therefore appears that the gold mineralization at Athabasca is controlled by the same magnetic low shear structure that controls most of the gold mineralization on the Kena Property.

In 2012, Altair conducted a ground survey using a GEMS GSM-19 magnetometer in the area between the GMZ and the Kena Gold zones. Altair also commissioned an analysis of past and current geophysical surveys. The purpose of the analysis was to:

  • Assess the ground and airborne geophysical data to determine if additional processing could improve the interpretation,

  • Determine if magnetic data could be filtered such that weak or isolated magnetic highs, representing dykes, might be found within the broader magnetic low, and

  • To determine if the radiometric data could be enhanced, given that it may reflect the effects of moisture.

By using a combination of the ground and airborne magnetic data as shown in Figure 9-3, four isolated magnetic highs were identified, that may represent mafic dykes within the main magnetic low region. The magnetic lows are outlined in black.

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Figure 9-3 Combined Magnetics including the 2003 Airborne, 2003 Ground and 2012 Ground Surveys (Source: Giroux, 2013)

The northern magnetic low is labeled A, and the southern main magnetic low region is labeled B, as shown in Figure 9-4. These dykes were modeled to strike through the magnetic low with steep dips, and trend in the same orientation as the magnetic low. Two isolated magnetic highs strike perpendicular to the magnetic low. There is only one possible mafic dyke within the northern magnetic low, Area A, that has a strike parallel to the surrounding magnetic low. There are two potential faults cutting through a shear zone that separates the two magnetic low regions near Gold Mountain.

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Figure 9-4

Magnetic Survey Near Gold Mountain (Source: Giroux, 2013)

An apparent magnetic low splay from the main magnetic low occurs just north of the concentrated drilling in the GMZ. It could be an indication of a possible splay in the main shear zone. Processing was done to identify potential isolated magnetic highs within both the north-west main magnetic low and the apparent magnetic low splay, which could be an indication of mafic dykes. Eight isolated magnetic highs were identified within the main magnetic low trending north-west, while only one isolated high was found within the magnetic low splay, shown in Figure 9-5. Based on the interpretation that the isolated magnetic highs identify locations of mafic dykes, it would indicate that drilling north-west along the main magnetic low trend would be more favourable.

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Figure 9-5 Compilation of Lineation and Faulting Identified in all Processing Methods (Source: Giroux, 2013)

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Kena LiDAR Survey

In 2012, Altair contracted Eagle Mapping Ltd. (Eagle), of Port Coquitlam, BC, to fly an aerial light detection and ranging (LiDAR) survey over 15.3km² of the Kena Property, delineated in Figure 9-6. Eagle used an airborne GPS/IMU Riegl VQ-480 laser scanner system to produce a digital topographical model with 0.15 metre vertical accuracy and 0.3 metre horizontal accuracy. This data provided the topography surface for the resource model and was used to provide accurate elevations for drillhole collars.

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Figure 9-6 LiDAR Survey Coverage Over the Kena Property (Source: Giroux, 2013)

9.2 Daylight Property Exploration

In 2001, Apex expanded the Gold Mountain soil grid farther west to cover the Great Western Zone. An area of 1100 by 500 metre in size, with very high gold soil values, was outlined in the Silver King intrusive and along its western contact with the Elise volcanics. Highest gold values in soil on the Great Western were 1259 ppb (L21N, 11+25W). Thick basal till present in some areas may subdue the geochemical response. At the Starlight, gold soil values reach up to 4168 ppb near the old workings (most likely due to contamination). At the Victoria workings, gold ranges up to 50 ppb, and at the Daylight-Berlin gold is 82 ppb. Generally, gold soil values along the Starlight trend are <200 ppb Au.

In 2002, a series of rock grab samples were taken in the area. 16 rock grab samples from the historic Great Western workings returned between 0.36 and 119.3 g/t Au. At the Starlight showing, high grade gold vein workings follow a prominent shear that is well defined by an Induced Polarization chargeability high for three kilometres. 11 rock grab samples from the Starlight workings returned between 0.50 and 22.5 g/t Au. Two samples taken from the Victoria-Jesse workings returned 10.19 and 11.45 g/t Au; and four Daylight-Berlin samples returned between 0.9 to 10.94 g/t Au.

In 2017, TerraLogic Exploration conducted a three-phase field program on behalf of Prize Mining Corp. The initial spring program consisted of prospecting, road-cut chip sampling, infill soil geochemistry and a

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ground magnetic survey. These results were used to direct follow up prospecting, geological mapping and target generation for the fall trenching and diamond drilling.

Daylight Soil Geochemistry

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The results of an 18-line soil geochemical survey over the main Great Eastern/Western and Starlight/Daylight trends completed in 2017 are reported by TerraLogic in 2018 and summarized here.

Soil lines over the Great Western/Eastern area were designed to follow cross-cut historical soils and regional magnetic trends to results in an average soil sampling density of 50x25m, including historical samples. Soil samples from 445 locations were collected and maps with results were created for Au, Ag, and Cu. The map for gold is given in Figure 9-7.

The statistical analysis was separated between the two main trends to get a more accurate portrait of lithological and mineralization style differences. Soil elemental levels and correlation to gold content vary significantly between the two trends. Starlight/Daylight soils tend to have much higher Mo and Cu background levels with slightly more elevated Zn, Fe, Cr, and Te compared to the Great Eastern/Western zone. Magnesium is up to two orders of magnitude higher along the Starlight-Daylight trend, a likely expression of the mafic volcanic host rocks. Background Au values in soils from Great Eastern/Western are two orders of magnitude higher than over the Starlight/Daylight area. These differences can be attributed to different lithologies, alteration and mineralization styles and concentrations between the two main trends. The intrusive hosted mineralization tends to be associated with sheeted veins that have a relatively widespread distribution, in comparison to mineralization along the Daylight-Starlight trend which tends to be concentrated in 1 or 2 centralized 50-150-centimeter-thick quartz veins. quartz veins.

A total of 14 Au+-Ag soil anomaly targets were identified and corroborate historical soil samples. Most Starlight/Daylight anomalies follow the general NW-SE regional Silver King Shear trend whereas the Great Eastern/Western anomalies are broader with no particular orientation. Gold-in-soil signatures through the Starlight/Daylight are very spotty and segmented compared to the extensive and continuous Great Eastern/Western, perhaps a reflection of mineralization style differences between the two trends. As noted above, Au content in soils at the Great Eastern/Western is also considerably higher.

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Figure 9-7 Daylight 2017 Soil Sample Locations and Results (Source: TerraLogic, 2018)

Daylight Rock Geochemistry

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The results of surface rock sampling in 2017 are reported by TerraLogic in 2018 and included here.

A total of 421 rocks samples were collected from the Daylight project area in 2017. This includes 76 grab and chip samples collected while prospecting/mapping 100 composite-chip samples from the C-series trenches, and 245 channel and chip samples from the fall-series mechanical trenches (Figure 9-8). The

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Terralogic report lists the top 40 gold mineralized samples of all types (>500 ppb Au). The sampling distribution has 65% of surface samples collected from within volcanic host rocks, with the remainder (35%) collected from areas underlain by the Silver King Porphyry. Despite the highest sample return coming from areas underlain by volcanics, 70% of the anomalous samples were collected from areas underlain by the Silver King Porphyry. This anomaly distribution confirms that the volcanic hosted Starlight-Daylight veins system is host to discreet narrow zones of high-grade gold mineralization; in contrast to the Silver King hosted mineralization of the Great Eastern and Western zones where gold bearing structures tend to be lower grade but more widespread.

Daylight Rock Sampling and Trenching

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The results of a rock sampling and trenching program in the fall of 2017 are reported by TerraLogic in 2018 and summarized here.

The primary goal of the 2017 trenching was to transect the main structures of interest determined by the prior studies, historical and collected data. In all, a total of 390 linear meters of road- cut sampling (Cseries), plus 1180 meters of excavated trenching was completed. A total of 421 rocks samples were collected from the Daylight project area. This includes 76 grab and chip samples collected while prospecting/mapping, 100 composite-chip samples collected during the C-series trenches and an additional 245 channel and chip samples collected from the excavated trenches.

The best gold return of 42.5 g/t Au is from a 1m channel sample in Trench E located along the volcanichosted vein system just southeast of the Starlight adit. Significant results from the trenches include 7.19g/t over 2m in Trench I2, and 3.59g/t over 3m in Trench I1. The top grab was 9.05g/t, coming from near the Great Western adit in a sample of Silver King porphyry with quartz veining.

Despite the highest sample return coming from areas underlain by volcanics, 70% of the top 40 samples (all over 0.5g/t) were collected from areas underlain by the Silver King Porphyry. This anomaly distribution confirms that the volcanic hosted Starlight-Daylight veins system is host to discreet narrow zones of highgrade gold mineralization; in contrast to the Silver King hosted mineralization of the Great Eastern and Western zones where gold bearing structures tend to be lower grade but more widespread.

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Figure 9-8 Daylight Trench and Rock Sample Locations with Gold Results (Source: TerraLogic, 2018)

Daylight Geophysics

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Geophysics surveys of the Daylight property have included induced airborne magnetics, induced polarization, and a ground magnetic survey.

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Daylight Induced Polarization Survey

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Induced polarization surveys have been completed over much of the grid areas on the Daylight Property. For results and conclusions of these surveys see report by P.E. Walcott, 2001, and BC government assessment reports by L. Dandy 2001-2003.

Daylight Ground Magnetic Survey

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The results of a magnetic survey reported below are described by TerraLogic in 2018 and summarized here.

The greater Daylight property area was previously subject to an airborne magnetic survey, however, to obtain more detailed results, a tightly spaced, 50m line-spacing, walking magnetic and VLF-EM survey was executed. The survey was conducted in July and August of 2017 and resulted in a 48.35 line-km survey which straddles the Silver King Intrusive/ Elise Volcanic contact in the Great Western/Eastern areas, and over the entirety of the Starlight-Daylight Shear system within the Elise Volcanics.

The primary purpose of the ground geophysical survey was to complete a more detailed magnetic response assessment of the entire Daylight property. Lithological contrasts are of prime interest including differentiation of Elise volcanics, Silver King porphyry, and late-stage mafic dykes, and quartz vein systems and their associated magnetic haloes (positive and negative). The mafic dykes are of particular interest. They are strongly magnetic relative to all other lithologies and have an inordinate spatial association with mineralization on the property. The final gridded magnetic data is shown in Figure 9-9.

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Figure 9-9 Daylight Ground Magnetic Survey (Source: TerraLogic, 2018)

Both the volcanics and Silver King complex exhibit broad ranges of magnetic response. In general, the Silver King complex magnetic response is more subdued than the volcanics, with increasing magnetic signatures approaching the Silver King complex/volcanic contact. This contact is associated with a discernable narrow magnetic trough that is lined with parallel magnetic high lineaments on both sides. The broad zone of anomalous gold in soils between the Great Eastern and Great Western zone appears to be underlain by relatively low magnetic response.

By far, the majority of outcrop geostations in the volcanics note the presence of moderate to strong magnetic responses, except where strongly silicified. For the most part, the ground magnetic survey agrees with this generality. The main exception is in the lower elevations, within 150 to 200m of Giveout Creek, and to a lesser degree the low to moderate response 180m wide corridor that envelops the Daylight workings near the southeast limit of the survey. Both zones have notable thicknesses of glacial or alluvial cover. Several geostations in these low areas that do note limited outcrop also indicate a strong response by hand magnets. It is likely that the overburden in these areas is shielding the outcrop magnetic response.

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The Daylight/Starlight vein system clearly follows a magnetic discontinuity as shown in Figure 9-10. In the Starlight working area, the vein is located at a transition linear from very high to moderate response. This trends to the southeast into the Victoria workings area that is enveloped by a more distinct magnetic low trough. This magnetic trough feature is more-or-less continuous until the B-trenches (100m NE of the Daylight workings), after which overburden is likely obscuring the magnetic response.

An additional parallel magnetic trough is notable in the volcanics approximately 300m north of the Starlight/Daylight vein system. Trench K, C3 and drillhole DL17008 all test this feature. Despite the intense shearing and limonite-hematite staining, no significant mineralization has been detected along this feature so far.

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Figure 9-10 Daylight Magnetic Survey with Surface Features (Source: TerraLogic, 2018)

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Drilling

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10.1 Summary of Drilling

A summary of drilling in all zones and included in the resource database is shown in Table 10-1. The collar locations of all drillholes in all zones are shown in Figure 10-1 and a listing of all drillhole locations, orientations and depths is provided in Appendix A. Between 2001 and 2017, 28,366.36m have been drilled, or 71% of the total drilling. The operator and year of drilling is indicated by location on Figure 10-2. A breakdown of drilling by zone is provided in subsequent sections.

Table 10-1 Summary of Drilling - All Zones

Operator Year DD Holes DD Holes Percussion Holes Percussion Holes Rev. Circ. Holes Rev. Circ. Holes Total Total
No.
Holes
Length
(m)
No.
Holes
Length
(m)
No.
Holes
Length
(m)
No.
Holes
Length
(m)
Ducanex 1974 4 249.94 4 249.94
Kerr Addison 1981 6 1,164.20 6 1,164.20
Lacana 1985 13 1,318.85 13 1,318.85
1986 22 3,128.75 22 3,128.75
Tournigan 1987 6 918.98 6 918.98
South Pacific 1988 6 886.22 6 886.22
Noramco 1990 10 2,710.70 10 2,710.70
1991 3 1,075.19 3 1,075.19
Apex 2001 29 4,901.10 29 4,901.10
2002 53 9,025.36 4 385.10 57 9,410.46
2003 22 1,086.73 22 1,086.73
2004 4 613.26 4 613.26
2007 1 547.73 1 547.73
2010 10 1,585.29 10 1,585.29
Altair 2012 41 7,527.02 41 7,527.02
Prize Mining 2017 18 2,694.77 18 2,694.77
Total 244 39,184.15 4 249.94 4 385.10 252 39,819.19

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Figure 10-1 Kena Project Drillhole Locations (Source: MMTS, 2021)

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Figure 10-2 Kena Project Drillhole Operator and Year (Source: MMTS, 2021)

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Kena-Gold Mountain Drilling Summary

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A summary of all drilling in Kena-Gold Mountain and included in the resource database is provided in Table 10-2.

Table 10-2 Kena-Gold Mountain Summary of Drilling

Operator Year DD Holes DD Holes Percussion Holes Percussion Holes Rev. Circ. Holes Rev. Circ. Holes Total Total
No.
Holes
Length
(m)
No.
Holes
Length
(m)
No.
Holes
Length
(m)
No.
Holes
Length
(m)
Ducanex 1974 4 249.94 4 249.94
Kerr Addison 1981 3 528.50 3 528.50
Lacana 1985 12 1,269.78 12 1,269.78
1986 22 3,128.75 22 3,128.75
Tournigan 1987 5 750.08 5 750.08
South Pacific 1988 6 886.22 6 886.22
Noramco 1990 8 1,963.60 8 1,963.60
1991 1 351.43 1 351.43
Apex 2001 29 4,901.10 29 4,901.10
2002 38 6,380.25 4 385.1 42 6,765.35
2003 22 1,086.73 22 1,086.73
2004 4 613.26 4 613.26
2007 1 547.73 1 547.73
2010 7 845.24 7 845.24
Altair 2012 41 7,527.02 41 7,527.02
Total 199 30,779.69 4 249.94 4 385.1 207 31,414.73

Copper Zone Drilling Summary

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A summary of all drilling in the Copper Zone and included in the resource database is provided in Table 10-3.

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Table 10-3

Copper Zone Summary of Drilling

Operator Year DD Holes DD Holes
No.
Holes
Length (m)
Kerr Addison 1981 3 635.70
Lacana 1985 1 49.07
Tournigan 1987 1 168.90
Noramco 1990 2 747.10
1991 2 723.76
Apex 2002 4 1,065.33
2010 3 740.05
Total 16 4,129.91

Daylight Drilling Summary

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A summary of all drilling in the Daylight area and included in the resource database is provided in Table 10-4.

Table 10-4

Daylight Summary of Drilling

Operator Year DD Holes DD Holes
No. Holes Length(m)
Apex 2002 6 868.37
Prize Mining 2017 12 1,669.71
Total 18 2,538.08

Great Eastern and Great Western Drilling Summary

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A summary of all drilling in the Daylight area and included in the resource database is provided in Table 10-5.

Table 10-5 Great Eastern & Great Western Summary of Drilling

Operator Year DD Holes
No.
Holes
Length (m)
Apex 2002 5 711.41
Prize Mining 2017 6 1,025.06
Total 11 1,736.47

10.2 1974 Drilling – Ducanex Resources Ltd.

The following information on drilling by Ducanex Resources Ltd. is taken from Johnson, 1974.

In 1974, four percussion drillholes, totalling 249.94m, were completed on the Kena claim group. Drilling was conducted by H.N. Horning Percussion Drilling Limited of Kamloops, BC, and was supervised by geologist Darrel Johnson, of Ducanex Resources Ltd. The drill was a truck-mounted, air-powered Atlas

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Copco percussion drill. Holes drilled were 476mm in diameter. A larger 508mm bit was attempted initially; however, it was abandoned due to extremely hard rock.

In addition to the reduction in bit size, further struggles were encountered during drilling. Hole P74-01 was abandoned at 15.24m due to loss of circulation, and no samples were recovered. Hole P74-02 was a second attempt from the same location, as a vertical hole. Holes P74-03 and P74-04 were both drilled at an azimuth of 040° and dip of -60°.

10.3 1981 Drilling – Kerr Addison Mines Ltd.

The following information on drilling by Kerr Addison Mines Ltd. is taken from Sirola, 1981.

In 1981, Kerr Addison Mines Ltd. drilled three AQ-sized holes in the Kena-Gold Mountain area to investigate gold anomalies in soils, and three holes in the Copper Zone to test copper anomalies in soils. Drilling was completed by Bergeron Drilling Ltd. of Greenwood, BC.

10.4 1985-1986 Drilling – Lacana Mining Corporation

The following information on 1985-1986 drilling by Lacana Mining Corporation is taken from Johnston, 1985 and Johnston, 1986 BC Geological Survey Branch Assessment reports.

In 1985, Lacana Mining Corporation drilled 12 NQ-sized holes on Kena-Gold Mountain and one hole on the Copper Zone, totalling 1,269.78m and 49.07m, respectively. There was a break in drilling on LK85-14 in July of 1985 due to forest closure, and no reports are available for the five holes drilled after the closure.

In 1986, 22 NQ-sized drillholes were completed in the Kena-Gold Mountain area, for a total of 3,128.75m. The program targeted the south extent of the mineralization encountered in 1985, one showing and two gold-in-soil anomalies away from the main zone. The first hole, LK86-20 intersected 9.03m of silicified and pyritized breccia assaying over 3.97g/t, while the remaining holes intersected spotty silicification and less pyrite. Although mineralized intersections were encountered around the main zone, Lacana concluded that the gold mineralization was spotty and did not continue to depth.

10.5 1987 Drilling – Tournigan Mining Explorations Ltd.

The following information on 1987 drilling by Tournigan Mining Explorations Ltd. is taken from Black, 1987.

In 1987, drilling was conducted by Beaupre Diamond Drilling of Princeton, BC. A total of five holes were drilled on Kena-Gold Mountain and one hole on the Copper Zone, for a total of 750.08m and 168.9m, respectively.

10.6 1988 Drilling – South Pacific Gold

The following information on 1987 drilling is taken from Giroux, 2013. MMTS does not have any reports from the 1988 exploration program.

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In 1988, six NQ-sized core holes were drilled, for a total of 886.22m, on the Kena-Gold Mountain area. The 1988 drilling targeted the Shaft showing. Results from a 5.64m intersection of magnetite-rich volcanic breccia assayed 5.04g/t gold and 0.72% copper.

10.7 1990-1991 Drilling – Noramco Mining Corporation

The following information on drilling in 1990-1991 by Noramco Mining Corporation is taken from Lewis, 1990 and Lisle, 1991 BC Geological Survey Branch Assessment Reports.

In 1990, a total of eight diamond drillholes were completed on Kena-Gold Mountain, and two diamond drillholes on the Copper Zone, for a total of 1,963.3m and 373.55m, respectively.

A first phase of drilling included holes SH90-01 through SH90-06, completed by Lone Ranger Diamond Drilling Company Ltd. with a Longyear ‘44’ bulldozer-mounted diamond drill. Drillhole SH90-1 intersected siliceous tuff, with pyrite and pyrrhotite mineralization with traces of chalcopyrite and sphalerite, a zone of fine-grained tuff and augite-crystal tuff with highly altered sections and ended in weakly altered coarse lapilli tuff. There were no overly significant results for gold or copper.

The NQ-sized drillholes K90-01 through K90-04 were drilled later in the year on the Kena-Gold Mountain and Coppper Zone. K90-01 targeted gold-in-soil anomalies, and K90-02 targeted the tuff-porphyry contact zone to test for mineralization. In K90-01, trace to minor chalcopyrite and chalcopyrite occur in the porphyry, and anomalous gold results were returned throughout the hole in andesitic tuff and Silver King Porphyry. The highest assay in the hole, 12.7g/t over 1.5m occurs in an intersection with pyrite stringers up to 1.2cm wide and may be due to a nugget effect. K90-03 and K90-04 targeted anomalous copper in soils, and intersected trace chalcopyrite and pyrite mineralization, with increasing pyrite in mafic units. Four intersections of anomalous copper >0.1%, ranging from 7.5 to 16.5m in length, were encountered in the hole K90-03. K90-04 intersected 12 intervals (ranging 3.0 to 57.0m) that are all >0.1%.

In 1991, two drillholes were completed on the Copper Zone, totalling 723.76m, and one hole on KenaGold Mountain, 351.43m in length. The holes were testing geochemical, geophysical, and geological targets. Drillhole NK91-01 is the only hole described in the report (Lisle, 1991), it was drilled to test a copper in soil anomaly, IP chargeability anomaly and possible depth extension of mineralization identified in drillhole K90-04. Chlorite and epidote alteration are common, with 1-3% pyrite mineralization on average and traces of chalcopyrite and fine magnetite. Gold assays ranged up to 1.894g/t, and copper up to 0.1756%, with general correlation between high gold and high copper in the upper half of the hole.

10.8 2001-2010 Drilling – Apex Resources Inc.

The following information on drilling in 2001-2010 by Apex Resources Inc. is taken from BC Geological Survey Branch Assessment Reports Dandy 2001, 2002, 2003, 2008, and 2011. MMTS has not independently verified the information.

During 2001, a total of 29 diamond drillholes were completed, for a total of 4,901.1m on Kena-Gold Mountain. The first seven holes of 2001 confirmed the depth extension of widespread, porphyry-style gold mineralization within the Silver King intrusive and across the contact into the Elise Volcanics. The drilling showed that a broad zone of mineralization correlates well with coincident high gold in soil geochemistry and chargeability/resistivity highs. Samples averaged 0.8g/t gold, with intervals up to 28m

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grading >2.5g/t gold, and 12m >4.0 g/t gold. The highest assay result was 16.20g/t gold over 2m in drillhole 01GM-05.

A second phase of drilling was conducted later in 2001 and into 2002, including diamond drillholes and reverse circulation drillholes (01GM-21 through 02GM-29, 02GM-30 through 02GM-40, and R02GM-01 to 04). Most of the drillholes in the second stage of 2001 drilling were step out holes to follow up on the results from the first phase of drilling. Four reverse circulation drillholes, for a total of 385.1m, were completed on Kena-Gold Mountain; however, they were unsuccessful at recovering samples at depth due to groundwater and the hardness of the intrusive rock. After four reverse circulation holes were completed, that method was abandoned, and the remaining holes were drilled by diamond drill. The results indicated zones of “bulk-tonnage type” gold mineralization, with multiple holes containing 100m wide zones averaging >1g/t gold. Several holes also intersected high-grade gold, indicating a gold-enriched zone spatially related to the contact between the Silver King Porphyry and the footwall of the Elise Volcanics. The high-grade intersections likely occur along a series of sub-parallel structures that cross the regional geologic trend at an oblique angle.

Through the summer and fall of 2002, drilling was carried out on all areas of the project. In the Gold Mountain area, holes tested the depth and strike length of gold mineralization, and the intrusive-volcanic contact. Many holes contained high grade gold assays over two-meter intervals, often surrounded by at least 100m of lower grade gold values, with many holes averaging over 0.3g/t gold for the entire length of the hole. The drilling in the Copper Zone was all within the Elise Volcanic package and showed that gold and copper mineralization increases and becomes widespread towards grid south, with high-grade mineralization occurring in a rusty, pyritic core, and low-grade halo mineralization associated with silica/potassium alteration. Drilling in Great Western tested the area under historic workings, an area with abundant quartz veining, and an area with coincident gold-in soil and high chargeability anomalies. In general, the drilling in Great Western identified broad widths of gold mineralization in areas of increased quartz and quartz-sulphide veining, or adjacent to lamprophyre dykes within the Silver King intrusive. Drilling in the Daylight zone showed elevated gold values confined to the same vein network of the historic workings. Shallower dyke swarms, and a deeper wide dyke were intersected in drillholes, and gold mineralization was seen to be confined to the area between the dykes. In general, the Daylight drilling identified a gold and silver-bearing vein system surrounded by lower grade stockwork mineralization, hosted within a strong northwest trending shear structure.

Overall, in 2002, 38 drillholes were completed on Kena-Gold Mountain, for a total of 6,380.25m, four holes were completed on Copper Zone, for a total of 1.065.33m, six holes were completed on Daylight, for a total of 868.37m, and five drillholes were completed on Great Eastern and Great Western, for a total of 711.41m.

All drilling in 2003 and 2004 was within the Kena-Gold Mountain area, 22 holes were completed in 2003, for a total of 1.086.73m, and four holes completed in 2004 for a total of 613.26m.

In 2007, one deep HQ-sized drillhole, 547.73m in length, was completed to test the depth extension of mineralization. The drillhole intersected mineralization deeper than had been previously identified. From surface to a depth of 430m down the hole, the core samples assayed 0.5 g/t gold, including a 101.27m

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section averaging 0.84 g/t gold, and several higher-grade intersections, including 10.99 g/t gold over 4m, 9.10g/t gold over 1.27m, and 11.26g/t gold over 2m.

In 2010, ten holes were drilled by Apex, seven holes on Kena-Gold Mountain, totalling 845.24m, and three in the Copper Zone, totalling 740.05m. The Kena-Gold Mountain holes were drilled to test a magnetic low feature, believed to represent a deep-seated structural corridor. A non-mineralized mafic dyke was intersected in multiple holes, with gold mineralization occurring in the hanging wall of the dyke. One hole in Copper Zone (10SG-05) tested the down-dip potential of gold mineralization and the other two in Copper Zone were testing copper-gold porphyry potential.

10.9 2012 Drilling – Altair Gold Inc.

The following information on drilling by Altair Gold Inc. in 2012 is taken from Giroux and Park, 2013.

In 2012, 41 NQ2-sized diamond drillholes were completed in the Kena-Gold Mountain area, for a total of 7,527.02m. Drilling was conducted by Wade Critchlow Enterprises Ltd. of Salmo, BC with a JKS Boyles A5 B2 skid-mounted drill. Drilling was oriented along section lines at 040° and 060°, perpendicular to the trend of mineralization. Drilling was intended to fill in gaps between wide-spaced drilling and expand the mineral resource and was successful in defining wide zones of gold mineralization with narrow highergrade intervals, consistent with results from historic drilling. Two holes drilled in the northeast (12NESP01, and 12NESP-02) did not encounter any significant results.

10.10 2017 Drilling – Prize Mining Corporation

The following information on 2017 drilling by Prize Mining Corporation is taken from Brown and Gagnon, 2018.

In 2017, twelve holes were completed on Daylight, totalling 1,669.71m, and six holes were completed on Great Eastern and Great Western, totalling 1,025.06m. All drillholes were NQ2-sized. The main targets were ore shoots at depth along the main Daylight-Starlight trend in the Elise Volcanics, and the Great Eastern and Great Western mineralized zones with the Silver King Porphyry. Drilling was conducted by Lucky Drilling of Castlegar, BC. Some significant results include 17.57m of 0.58g/t gold in DL17002, 32.60m of 1.16g/t gold in DL17005, 71.22m of 1.09 g/t gold and 19m of 1.00g/t gold in DL17007, and 5.00m of 2.76g/t gold in DL17016.

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Sample Preparation, Analyses and Security

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11.1 Sampling Protocols and Principal Laboratories

Sampling by Prize Mining Corporation 2017 (Daylight, Great Eastern & Great Western)

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The following information on sampling and assaying related to drilling by Prize Mining Corporation is taken from Brown and Gagnon, 2018. MMTS has not independently verified the information.

Core logging and sampling was completed at a secure core logging facility in Salmo. The core was then stacked and stored at property of Jack Denny, in Salmo, BC. Drill core was selected for assay based on mineralization and alteration, with sample intervals ranging from a minimum of 0.5m to a maximum of 2m in length. Most samples were split by manual core splitter at a secure core storage facility. Selected samples with highly mineralized or altered zones were cut with a saw to better observe the mineralization.

Samples were shipped to Bureau Veritas labs in Vancouver, BC. Bureau Veritas is accredited by the Standards Council of Canada under standards ISO/IEC 17025:2017 and RG-MINERAL.

Received samples were prepared by Bureau Veritas method PRP70-250. Samples were entered into the Laboratory Information Management System (LIMS) by Bureau Veritas personnel. The samples were then weighed, dried, and crushed to 70% passing 10 mesh (2mm), homogenized, riffle split (250g subsample) and pulverized to 85% passing 200 mesh (75 microns). Bureau Veritas conducts QC testing at random intervals and at the start of each shift to ensure these specifications are met.

Rock samples were analyzed using a 45-element ICP-MS package following 4-acid digest, and for gold by fire assay fusion – AAS finish (FA330-Au) with any fire assay result greater than 10ppm being re-run with fire assay fusion – Gravimetric finish.

Soil sampling traverses were navigated using a GPS device. Samples were collected at 25m spacing using a geotool or dutch auger. Wherever possible, the soil samples were collected from the B-Horizon of the soil profile (layer where metal ions are most mobile), or layer below organic material if B-horizon could not be found at a particular station. Soil Sample depth varied across the survey from 5-25cm. Data collected for each sample included sample size, quality, depth, slope, soil horizon color, and other notes. The quality of the sample is rated from 1-5, with 1 being very poor quality and 5 being excellent. Factors affecting quality include sample size, soil development, and amount of organic matter.

Soil samples were laid out to dry at the end of each day. Any samples with damaged bags or unclear labels were re-bagged and labeled. Soil samples were sorted, counted, and placed into rice bags for shipment. Each rice bag was labeled with shipment number and shipping/receiving addresses. The soil samples were shipped to Bureau Veritas in Vancouver, BC via Greyhound Bus lines. Soil samples were analyzed by 37element ICP following aqua regia digest of a 30g pulp.

Trench sampling was conducted on bedrock exposures or road cuts. Orientation and location of trenches were recorded with compass and hand-held GPS. Sample spacing ranged from 1-5m depending on lithology, mineralization, and alteration. Samples were collected by chipping or sawing in a representative

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manner. Collected samples were bagged and tagged and then put into rice bags for shipment to Bureau Veritas lab in Vancouver, BC. The samples were analyzed by 45-element ICP after 4-acid digestion, and AAS fire assay for gold. Any gold result greater than 1000ppb was subject to metallic screen fire assay.

Sampling by Altair Gold Inc. 2012 (Kena)

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The following information on sampling and assaying related to drilling by Altair Gold Inc. is taken from Park and Grunenberg, 2013. MMTS has not independently verified the information.

Boxed and sealed drill core was driven to the core facility in Salmo, BC daily. The geologist marked major sampling breaks, and individual samples were marked by the geotechnician. Core was generally split using a standard manual core splitter, with selected intervals being cut with a rock saw. Half of the core was placed into a labelled sample bag, with a sample tag. The remaining half core was returned to the box and labelled with the matching sample tag. Samples were typically collected along the entire drillhole, in 2m intervals, with lithological, alteration and mineralization boundaries being honoured.

Core logging, splitting, and sampling was conducted within a secure third-party core facility on private property in Salmo, BC. Access to the facility was limited to Altair personnel and the facility owner. Bagged samples were packaged into rice bags, sealed, and held in a locked area until they were picked up by commercial trucking company every few days for shipment.

Three certified reference materials representing a range of gold (±silver ±copper) concentrations were inserted into the sample stream at a ratio of 40:1. Certified reference materials were purchased from WCM Minerals in Burnaby, BC. The material used for blanks was a decorative garden stone purchased from a local vendor. Blanks were inserted into the sample stream at a ratio of 40:1. Field duplicates were collected during the second phase of the 2012 drilling, as quarter core.

Samples were shipped to ACME Analytical Laboratories Ltd. in Vancouver, BC (Acme Labs). The laboratory did not report any incidences of tampering or damage to the samples upon arrival at the laboratory. Samples were prepared at the laboratory. Core samples were jaw crushed and split. A one-kilogram sample was crushed to minus 10 mesh (2mm), split to 250g, and then pulverized to minus 200 mesh (74μ). A 15g split underwent aqua regia digestion followed by ICP-MS analysis. Samples with ICP-MS results greater than 0.3g/t Au were re-analyzed using a 30g fire assay (FA) with an atomic absorption (AA) finish. If the FA-AA result for gold was greater than 10g/t, gravimetric finish was used. Selected core samples were submitted for metallics analysis. The sample for metallics assay was crushed and pulverized. A 500g split is screened, with the plus (+) 150 and –150 mesh fractions reserved for 30g fire assay. The plus fraction is finished gravimetrically, and the minus fraction is finished by AA. Pulps and rejects were discarded by the laboratory after 90 days.

Acme Labs implemented a quality system compliant with the International Standards Organization (ISO) 9001 Model for Quality Assurance and ISO/IEC 17025 General Requirements for the competence of testing and calibration laboratories. On November 13, 1996, AcmeLabs became accredited under ISO 9001 for competency in geochemical analysis and assaying. The laboratory maintained its registration in good standing from that time.

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Sampling by Apex Resources Inc. 1999-2010 (All Zones)

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2010 Kena Drill Core samples (includes 3 holes in Cu Zone)

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The following information on sampling and assaying related to drilling by Apex Resources Inc. is taken from Dandy, 2011. MMTS has not independently verified the information.

Drill core was split using a standard manual core splitter, and selected intervals were cut with a diamond saw. One half core was placed in a labeled sample bag, and the other half returned to the box with the matching sample number marked on the box. The core is stored at the property of Jack Denny in Salmo, BC. The entire length of core for each hole was split and assayed. Sample lengths were typically two meters, with slight variations in sample length based on lithological changes.

Core samples were shipped by trucking company to Acme Analytical Laboratory Ltd. in Vancouver, BC. All sample preparation was completed by the laboratory. Core samples were jaw crushed and a 250g subsample riffle split from the original sample. The sub sample was further crushed to -200 mesh, sieved, and analyzed by 36 element ICP method, and fire assay for gold. 30 coarse rejects samples were re-submitted to SGS Assays Canada in Vancouver, BC to be analyzed by metallics assay for gold. These 250g samples were pulverized and screened, and then both the fine (-150 mesh) and coarse (+150 mesh) screened fractions were assayed, and total gold assay value was calculated.

2007 Kena Drill Core Samples

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The following information on sampling and assaying related to drilling by Apex Resources Inc. is taken from Dandy, 2008. MMTS has not independently verified the information.

Drill core was typically split using a standard manual core splitter, and selected intervals were cut with a diamond saw. One half core was placed in a labeled sample bag, and the other half returned to the box with the matching sample number marked on the box. The core is stored at the property of Jack Denny in Salmo, BC. The entire length of core for each hole was split and assayed. Sample lengths were typically two meters, with slight variations in sample length based on lithological changes.

The core samples were shipped via trucking company to Assayers Canada Ltd. in Vancouver, BC. All sample preparation was completed by the laboratory. Core samples were jaw crushed and a 250g sub-sample riffle split from the original sample. The sub sample was further crushed to -200 mesh, sieved, and analyzed by 30 element ICP method, and fire assay for gold. A pulp sub-sample was retained by Apex for duplicate and check assays. No additional records or certificates are available for duplicate or check assay samples from 2007.

2003-2004 Kena Drill Core Samples

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There is no report of the sample preparation and analyses for the core samples collected in 2003-2004.The following information is taken from the laboratory certificates containing the samples from 2003-2004.

The samples were analyzed at Acme Analytical Laboratories in Vancouver, BC. A 0.5g sample was leached with 3mL 2-2-2 HCl-HNO3-H2O at 95°C for one hour, diluted to 10mL and analyzed by ICP-ES for 30 elements. Samples with Au > 1g/t were assayed by fire assay from 1A.T. sample.

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Selected samples were assayed for total metallics. The -150-mesh fraction analyzed by fire assay from 1A.T. sample, and native gold, total sample fire assay.

Acme had ISO 9001 Accreditation at the time of the assays.

1999-2002 Kena, Cu Zone, Daylight, and Great Eastern & Great Western Drill Core Samples

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The following information on sampling and assaying related to drilling by Apex Resources Inc. is taken from Dandy 2003, 2002, 2001, and 2000. MMTS has not independently verified the information.

In 1999 and 2000 previously unsampled intervals of historic drill core were logged and sampled, and in 2001-2002 new drillholes were logged and sampled. Drill core was typically split using a standard manual core splitter, with selected intervals cut with a diamond saw. One half core was placed in a labeled sample bag, and the other half returned to the box with the matching sample number marked on the box. The core is stored at the property of Jack Denny in Salmo, BC. The entire length of core for each new hole was split and assayed. Typically, sample lengths were two meters, and may vary slightly dependent on lithological changes.

Core samples were shipped by trucking company to Acme Analytical Laboratory Ltd. in Vancouver, BC. All sample preparation was completed by the laboratory. Core samples were jaw crushed and a 250g subsample riffle split from the original sample. The sub sample was further crushed to -200 mesh, sieved, and analyzed by 30 element ICP method and gold by fire assay. Selected samples were analyzed for gold by total metallics. The second sub-sample was retained by Apex for duplicate and check assays. Check assays were sent to ALS Chemex Aurora Laboratory Services Ltd. in North Vancouver, BC.

Sampling by Noramco Mining Corporation 1990-1991 (Kena & Cu Zone)

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1991 Kena and Cu Zone Drill Core Samples

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The following information on sampling and assaying related to drilling conducted by Noramco Mining Corporation is taken from Lisle, 1991. MMTS has not independently verified the information.

Sample lengths were typically 1.5m in length. Samples were analyzed for copper, lead, zinc, silver, and arsenic by ICP methods, and gold by fire assay/ICP. Samples were analyzed at Acme Analytical Laboratories Ltd. in Vancouver, BC. For the ICP method, a 0.5g sample was digested with 3mL 3-1-2 HClHNO3-H2O at 95°C for one hour, diluted to 10mL with water. Gold was analyzed by FA/ICP from a 10g sample.

1990 Kena and Cu Zone Drill Core Samples

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The following information on sampling and assaying related to drilling conducted by Noramco Mining Corporation is taken from Lewis and Silversides, 1991 and Lewis and Lisle, 1990. MMTS has not independently verified the information.

Drill core was primarily sampled at 1.5m intervals. The entire length of drillholes K90-2 and K90-4 were sampled, and selected sampling was carried out on holes K90-1 and K90-3. Core samples were shipped to

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Acme Analytical Laboratories in Vancouver, BC where they were analyzed for 30 elements by ICP methods, and gold by fire assay/ICP from 10g samples. The remaining core is stored on site in racks.

Coarse rejects samples from the highest-grade intersections of K90-4 were sent as third-party check samples to Chemex Labs Ltd. of North Vancouver, BC, where they were analyzed for seven elements with gold determination by fire assay/atomic absorption from 10g samples.

Sampling by Tournigan Mining Explorations Ltd. 1987 (Kena & Cu Zone)

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The following information on sampling and assaying related to drilling conducted by Tournigan Mining Explorations Ltd. is taken from Black, 1987. MMTS has not independently verified the information.

Core is stored in racks beside the core shack on the property. Core was split and shipped to Bondar Clegg Laboratories in North Vancouver, BC. Samples were analyzed for gold, silver, and copper. Samples were crushed and pulverized to -150 size fraction. Gold analysis was by fire assay-AA. Copper and silver were analyzed by HNO3-HCl hot extraction and atomic absorption.

Sampling by Lacana Mining Corporation 1985-1986 (Kena & Cu Zone)

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The following information on sampling and assaying related to drilling conducted by Lacana Mining Corporation is taken from Johnston, 1986 and Johnston, 1985. MMTS has not independently verified the information.

Drill core is stored in racks on the property. The samples were boxed in the field and shipped by bus to Acme Analytical Laboratories Ltd. in Vancouver, BC. The core samples were pulverized to -100 mesh. For the ICP method, a 0.5g sample was digested with 3mL 3-1-2 HCl-HNO3-H2O at 95°C for one hour, diluted to 10mL with water. Silver was determined by atomic absorption and multi-element (30 element) analysis was done by inductively coupled argon plasma (ICP). Gold was analyzed by fire assay-atomic absorption from aqua regia digestion of a 10g sample.

Years without Sampling Records

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MMTS does not have any records or information on the methods of sampling, preparation, analyses, or security measures taken for the 1988, 1981 or 1974 drill programs.

11.2 QAQC Summary

The historic reports containing QAQC samples were received from Apex in February 2021. QAQC samples were only included in the drilling years 2012 and 2017. The percentage of QAQC samples for the drilling in years which include QAQC is shown in Table 11-1 and indicates the rate of QAQC sampling is low. The target percentage of QAQC samples is typically 10-15 percent of the samples collected. Because there was no drilling in the Copper Zone in 2012 and 2017, there are no QAQC samples in the Copper Zone.

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Table 11-1 QAQC Sample Summary (All Areas – Years 2012 and 2017 only)

Sample Type Great Eastern &
Great Western
Daylight Kena-Gold
Mountain
Copper Zone Total
Years 2017 2017 2012 2012 and 2017
Blanks 6 11 80 0 97
Standards 26 51 88 0 165
Duplicates 6 9 33 0 48
Total QAQC 38 71 201 0 310
Resource
**Database Assays **
572 1,138 2,897 0 4,607
% QAQC 6.23% 5.87% 6.49% 0.0% 6.30%

Within the three zones with QAQC, the database of duplicate samples contains 48 samples. The 2017 duplicates are coarse rejects samples prepared at the laboratory and the 2012 samples are quarter core field duplicates. The prep duplicates and field duplicates are from different zones and different years and are therefore analyzed separately.

Check samples and re-assays were done in years 1990, 2001, and 2002 for data verification and are discussed in Chapter 12. Check assays are reported in 2007 and 2010 however, no certificates are available for those samples.

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Great Eastern & Great Western QAQC

Great Eastern & Great Western Blanks

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A total of six samples of field blank material called “Nelson rock” are included in the Great Eastern and Great Western sample stream during 2017. The results from the blank samples are presented in Figure 11-1 and Figure 11-2 for gold and copper, respectively. Figure 11-1 shows there were no failures at the 5*detection limit value for gold. This indicates little contamination of gold in the sample stream.

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Figure 11-1 Great Eastern & Great Western Blanks – Au (Source: MMTS, 2021)

Figure 11-2 shows that all six samples fail at the 10*detection limit value for copper. The blank material used was a local rock from the Nelson area, not a certified blank material, and the rate of failure indicates that it is not a suitable blank material for copper.

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Figure 11-2 Great Eastern & Great Western Blanks – Cu (Source: MMTS, 2021)

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Great Eastern & Great Western Certified Reference Materials

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A total of 26 certified reference material (CRM) samples from 2017 are analyzed for both gold and copper in the Great Eastern and Great Western area.

Great Eastern & Great Western CRM Gold

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The gold results for CRM samples are shown in Table 11-2 in order of decreasing grade. The results show that the mean of the assay of the high-grade gold CRM is slightly lower than the expected value, and the mean of the assay of the mid- and low-grade gold CRM samples are somewhat higher than the expected value. There are zero failures at the +/- 3 standard deviation criteria for the high and mid-grade gold CRM samples, and greater than expected failure rate for the low-grade gold CRM. The error overall indicates slightly higher than expected assay values. The results are considered to show acceptable accuracy for the Great Eastern and Great Western resource estimation.

Table 11-2 Great Eastern & Great Western CRM Analysis Results Gold

CRM Samples Au EV
(g/t)
Avg Au
(g/t)
SD Au
(g/t)
CV
(Au)
% Error
(Au)
High
Fail Au
Low
Fail Au
% Fail
(Au)
ME-1402 9 13.9 13.767 0.354 0.026 -1.0% 0 0 0.0%
ME-1607 6 3.33 3.395 0.123 0.036 1.9% 0 0 0.0%
ME-1414 11 0.284 0.294 0.020 0.068 3.4% 2 0 18.2%
Total 26 1.5% 7.7%

The process control charts for the three certified reference materials are shown in the following figures. A sample which matches the expected value (EV) will plot on the green line, and a sample exceeding the +/- 3 Standard Deviations (SD) failure threshold will plot above or below the red lines. The samples are in order of sequence by sample number.

The process control chart for gold for the CRM ME-1402 in Figure 11-3 shows that there is a slight positive trend to the gold results for ME-1402 and the mean is slightly below the expected value.

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Figure 11-3 Great Eastern & Great Western CRM ME-1402 Process Control Chart (Au = 13.9 g/t) (Source: MMTS, 2021)

The process control chart for CRM ME-1607 in Figure 11-4 shows that the results for gold are biased slightly high with a slight negative trend.

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Figure 11-4 Great Eastern & Great Western CRM ME-1607 Process Control Chart (Au = 3.33g/t) (Source: MMTS, 2021)

The process control chart for CRM ME-1414 is shown in Figure 11-5, indicating that the results for gold are biased slightly high, influenced by two high failures. The assays preceding and following these failed standards are low gold values, therefore contamination from surrounding samples is not suspected and there are no records of any corrective action or re-assays of these CRM samples or surrounding samples.

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Figure 11-5 Great Eastern & Great Western CRM ME-1414 Process Control Chart (Au = 0.284g/t) (Source: MMTS, 2021)

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Great Eastern & Great Western CRM Copper

The copper results for CRM samples are shown in Table 11-3 in order of decreasing grade. The results generally show that the mean of the assay of the CRM samples is slightly higher than the expected values. There are no failures at the +/- 3 standard deviation criteria for copper. The overall error indicates slightly higher than expected assay values. The accuracy and precision are reasonable, and the results are considered acceptable.

Table 11-3 Great Eastern & Great Western CRM Analysis Results Copper

CRM Samples Cu EV
(%)
Avg Cu
(%)
SD Cu
(%)
CV
(Cu)
% Error
(Cu)
High
Fail Cu
Low
Fail Cu
% Fail
(Cu)
ME-1402 9 2.9 2.916 0.025 0.009 0.5% 0 0 0.0%
ME-1607 6 0.31 0.313 0.005 0.015 0.9% 0 0 0.0%
ME-1414 11 0.219 0.220 0.005 0.022 0.6% 0 0 0.0%
Total 26 0.6% 0.0%

The process control chart for the CRM ME-1402 is shown in Figure 11-6, which shows that the copper results are very close to the expected value, with no failures outside +/- 3 SD or +/- 2 SD thresholds.

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Figure 11-6 Great Eastern & Great Western CRM ME-1402 Process Control Chart (Cu = 2.9%) (Source: MMTS, 2021)

The process control chart for CRM ME-1607 in Figure 11-7 shows slightly high bias, and positive trend in copper assays.

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Figure 11-7 Great Eastern & Great Western CRM ME-1607 Process Control Chart (Cu = 0.310%) (Source: MMTS, 2021)

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The process control chart for CRM ME-1414 is shown in Figure 11-8 indicating the copper results are very close to the expected value.

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Figure 11-8 Great Eastern & Great Western CRM ME-1414 Process Control Chart (Cu = 0.22%) (Source: MMTS, 2021)

Great Eastern & Great Western Duplicates

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There are six coarse rejects duplicates from the Great Eastern and Great Western area in 2017. To create these duplicate samples, empty bags were submitted to the lab with a sample number (parent sample number with “D” suffix) to indicate when the lab was to take a re-split of the coarse rejects sample. Based on the lab preparing the duplicates and the sample numbering system, these duplicates were not blind to the lab.

There are too few samples for meaningful statistics on the Great Eastern and Great Western duplicate samples. The scatter plot of the gold duplicate pairs is shown in Figure 11-9. It shows high correlation and a 1:1 slope between the duplicate pairs.

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Figure 11-9 Great Eastern & Great Western Au Duplicates Scatter Plot (Source: MMTS, 2021)

The scatter plot of copper duplicate pairs is given in Figure 11-10 on a logarithmic scale. It shows high correlation between the duplicate pairs, with a slight positive bias with the best fit line plotting above the 1:1 line.

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Figure 11-10 Great Eastern & Great Western Cu Duplicates Scatter Plot (Source: MMTS, 2021)

Daylight QAQC

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Daylight Blanks

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A total of 11 samples of blank material are included in the Daylight sample stream during 2017. The results from the blank samples are presented in Figure 11-11 and Figure 11-12 for gold and copper, respectively. Figure 11-11 shows there are no failures at the 5*detection limit value for gold. This indicates little contamination of gold in the sample stream.

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Figure 11-11 Daylight Blanks – Au (Source: MMTS, 2021)

Figure 11-12 shows that all samples fail at the 10*detection limit value for copper. The blank material used was a local rock from the Nelson area, not a certified blank material, and the rate of failure indicates that it is not a suitable blank material for copper. Both the gold and copper results for Daylight blank samples agree with the results from Great Eastern and Great Western blank samples.

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Figure 11-12 Daylight Blanks – Cu (Source: MMTS, 2021)

Daylight Certified Reference Materials

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A total of 51 certified reference material (CRM) samples from 2017 are analyzed for both gold and copper in the Daylight area.

Daylight CRM gold results are shown in Table 11-4 in order of decreasing grade. The results show that the mean of the assay of the high-grade gold CRM is lower than the expected value, and the mean of the assay of the mid- and low-grade gold CRM samples are slightly higher than the expected value. The failure rate is higher than expected for the high-grade CRM. The overall error indicates slightly higher than expected assay values. The results are considered to show acceptable accuracy for the Daylight resource estimation.

Table 11-4 Daylight CRM Analysis Results Gold

CRM Samples Au EV
(g/t)
Avg Au
(g/t)
SD Au
(g/t)
CV
(Au)
% Error
(Au)
High
Fail Au
Low
Fail Au
% Fail
(Au)
ME-1402 19 13.9 13.568 0.415 0.031 -2.4% 0 1 5.3%
ME-1607 15 3.33 3.396 0.118 0.035 1.9% 0 0 0.0%
ME-1414 17 0.284 0.291 0.010 0.035 2.3% 0 0 0.0%
Total 51 0.4% 2.0%

The process control charts for the three certified reference materials are shown in the following figures. A sample which matches the expected value (EV) will plot on the green line, and a sample exceeding the +/- 3 Standard Deviations (SD) failure threshold will plot above or below the red lines. The samples are in

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order of sequence by sample number. The process control chart for gold for the CRM ME-1402 in Figure 11-13 shows that there is a minor low bias to the gold results, and one low failure below -3 SD.

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Figure 11-13 Daylight CRM ME-1402 Process Control Chart (Au = 13.9 g/t) (Source: MMTS, 2021)

The process control chart for gold for the CRM ME-1607 in Figure 11-14 shows that the mean of the gold results is close and slightly higher than the expected value, with no failures outside the +/- 3 SD or +/- 2 SD thresholds.

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Figure 11-14 Daylight CRM ME-1607 Process Control Chart (Au = 3.33 g/t) (Source: MMTS, 2021)

The process control chart for gold for the CRM ME-1414 in Figure 11-15 shows that the gold results are very close to the expected value, with no failures outside the +/- 3 SD or +/- 2 SD thresholds.

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Figure 11-15 Daylight CRM ME-1414 Process Control Chart (Au = 0.284 g/t) (Source: MMTS, 2021)

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The copper results for CRM samples are shown in Table 11-5 in order of decreasing grade. The results generally show that the mean of the assay of the CRM samples is very slightly higher than the expected values. The failure rate is higher than expected for the mid-grade CRM for copper, with two high failures at the +/- 3 standard deviation criteria. There are no failures at the +/- 3 standard deviation criteria for the high- and low- grade CRM samples for copper. The error overall indicates very slightly higher than expected assay values. The accuracy and precision are reasonable, and the results are considered acceptable.

Table 11-5 Daylight CRM Analysis Results Copper

CRM Samples Cu EV
(%)
Avg Cu
(%)
SD Cu
(%)
CV
(Cu)
% Error
(Cu)
High
Fail Cu
Low
Fail Cu
% Fail
(Cu)
ME-1402 19 2.9 2.911 0.054 0.018 0.4% 0 0 0.0%
ME-1607 15 0.31 0.316 0.005 0.017 1.8% 2 0 13.3%
ME-1414 17 0.219 0.219 0.004 0.020 0.2% 0 0 0.0%
Total 51 0.7% 3.9%

The process control chart for the CRM ME-1402 in Figure 11-16 shows that the copper results are very close to the expected value with no failures outside +/- 3 SD or +/- 2 SD thresholds.

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Figure 11-16 Daylight CRM ME-1402 Process Control Chart (Cu = 2.9 g/t) (Source: MMTS, 2021)

The process control chart for CRM ME-1607 in Figure 11-17 shows that the results are biased high, with two high failures and include four consecutive sample outside the +2SD line. The assays preceding and following these failures are generally low Cu values. The first failure follows a few samples after an assay of 0.2% Cu, which is the highest nearby assay, and lower than the expected value for the CRM.

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Contamination from surrounding samples is not suspected and there are no records of any corrective action or re-assay of these CRM samples or surrounding samples.

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Figure 11-17 Daylight CRM ME-1607 Process Control Chart (Cu = 0.31 g/t) (Source: MMTS, 2021)

The process control chart for CRM ME-1414 in Figure 11-18 shows that the results are very close to the expected value for copper, with one result slightly greater than the + 2 SD threshold.

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Figure 11-18 Daylight CRM ME-1414 Process Control Chart (Cu = 0.22 g/t) (Source: MMTS, 2021)

Daylight Duplicates

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There are nine coarse rejects duplicates from the Daylight area in 2017. To create these duplicate samples, empty bags were submitted to the lab with a sample number (parent sample number with “D” suffix) to indicate when the lab was to take a re-split of the coarse rejects sample. Based on the lab preparing the duplicates and the sample numbering system, these duplicates were not blind to the lab.

There are too few samples for meaningful statistics on the Daylight duplicate samples. The scatter plot of the gold duplicate pairs in Figure 11-19 is shown on a logarithmic scale. It shows high correlation between the duplicate pairs, with a slight negative bias with the best fit line plotting slightly below the 1:1 line.

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Figure 11-19 Daylight Au Duplicates Scatter Plot (Source: MMTS, 2021)

The scatter plot of copper duplicate pairs in Figure 11-20 is shown on a logarithmic scale. The plot shows high correlation between the duplicate pairs and very nearly a 1:1 slope between the duplicate pairs.

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Figure 11-20 Daylight Cu Duplicates Scatter Plot (Source: MMTS, 2021)

Kena-Gold Mountain QAQC

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Kena-Gold Mountain Blanks

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80 samples of blank material are included in the Kena – Gold Mountain sample stream during 2012. The results from the blank samples are presented in Figure 11-21 and Figure 11-22 for gold and copper, respectively. Figure 11-21 shows there are 31 assay results of blank material that are higher than the 5detection limit threshold for gold. The material used for blank samples was not a certified blank material, it consisted of a decorative white garden stone purchased from a local vendor (Park and Grunenberg, 2013). A 10detection limit threshold could be considered because the blank material is not certified; however, there are still 15 samples that have assay results greater than 10*detection limit for gold. This indicates that the garden stone is not a suitable blank material for gold, and there is a possibility that contamination of gold in the sample stream may be a problem, but not a significant level.

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Figure 11-21 Kena-Gold Mountain Blanks – Au (Source: MMTS, 2021)

Figure 11-22 shows that over 97% of samples fail at 5detection limit threshold for copper, and 79% fail at 10detection limit threshold, indicating that the garden stone is not a suitable blank material for copper.

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Figure 11-22 Kena-Gold Mountain Blanks – Cu (Source: MMTS, 2021)

Kena – Gold Mountain Certified Reference Materials

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A total of 88 certified reference material (CRM) samples from the Kena-Gold Mountain area in 2012 are analyzed for gold and copper. Three CRM standards are used; however, only one CRM used is certified for copper (PM1123). A total of 28 of the 88 samples were PM1123.

The gold results for CRM samples are shown in Table 11-6 in order of decreasing grade. The results show that the mean of the assay of the high-grade gold CRM is lower than the expected value, and the mean of the assay of the mid- and low-grade gold CRM is higher than the expected value. The failure rates for all CRM samples are higher than expected. The overall error indicates higher than expected assay values. The assays preceding and following the failures are generally low, with a few mid-grade assays, indicating that the potential for contamination of gold in the sample stream is low. Park and Grunenberg (2013) report that because only one of the failed samples from each PM1123 and PM459 was in a mineralized zone, no corrective action or re-assaying was conducted. The results are considered acceptable at this level of resource estimation however, further check assays are recommended.

Table 11-6 Kena-Gold Mountain CRM Analysis Results Gold

CRM Samples Au EV
(g/t)
Avg Au
(g/t)
SD Au
(g/t)
CV Error High
Fail Au
Low
Fail Au
% Fail
(Au)
PM929 29 5.1 4.865 0.322 6.6% -4.8% 0 2 6.9%
PM1123 28 1.42 1.515 0.100 6.6% 6.2% 5 0 17.9%
PM459 31 0.37 0.398 0.036 9.1% 7.0% 3 0 9.7%
Total 88 2.9 11.4

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The process control charts fort the three certified reference materials are shown in the following figures. A sample which matches the expected value (EV) will plot on the green line, and a sample exceeding the +/- 3 Standard Deviations (SD) failure threshold will plot above or below the red lines. The samples are in order of sequence by sample number.

The process control chart for gold for the CRM PM929 in Figure 11-23 shows that the gold results have a slightly low bias, with two failures below the +/- 3 SD threshold.

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Figure 11-23 Kena-Gold Mountain CRM PM929 Process Control Chart (Au = 5.1 g/t) (Source: MMTS, 2021)

The process control chart for gold for the CRM PM1123 in Figure 11-24 shows a significant positive bias, with the mean slightly higher than +2 SD threshold. There are four failures greater than the +/- 3 SD threshold.

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Figure 11-24 Kena-Gold Mountain CRM PM1123 Process Control Chart (Au = 1.42 g/t) (Source: MMTS, 2021)

The process control chart for gold for the CRM PM459 in Figure 11-25 shows a small positive bias. There are three failures greater than the +/- 3 SD threshold.

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Figure 11-25 Kena-Gold Mountain CRM PM459 Process Control Chart (Au = 0.37 g/t) (Source: MMTS, 2021)

The copper results for CRM samples are shown in Table 11-7, PM1123 is the only CRM used in 2012 that is certified for copper. The results show that the mean of the assay of the CRM samples is slightly higher than the expected value. There are no failures at the +/- 3 SD criteria, and the overall error indicates slightly higher than expected assay values. The accuracy and precision are reasonable, and the results are considered acceptable.

Table 11-7 Kena-Gold Mountain CRM Results Analysis Copper

CRM Samples Cu EV
(%)
Avg Cu
(%)
SD Cu
(%)
CV Error High
Fail Cu
Low
Fail Cu
% Fail
(Cu)
PM1123 28 0.31 0.312 0.010 3.1% 0.5% 0 0 0.0%

The process control chart for the CRM PM1123 for copper in Figure 11-26 shows that the copper results are close to the expected value. There are three samples outside of the +/- 2 SD threshold; however, there are no consecutive failures at that threshold, and no corrective action was required.

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Figure 11-26 Kena-Gold Mountain CRM PM1123 Process Control Chart (Cu = 0.31 %) (Source: MMTS, 2021)

Kena-Gold Mountain Duplicates

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There are 33 quarter-core field duplicates from the Kena-Gold Mountain area in 2012. There is one outlier sample that affects the statistics and plot for rest of the duplicate pairs, some variations in grade between duplicate pairs are expected in gold for this deposit type, and therefore the outlier has been removed from the data set for the statistics and presentation of the scatter plot. The results of duplicate analyses of these sample pairs are given in terms of simple statistics in Table 11-8. The statistics show that the averages and standard deviations between the two sets are slightly different for gold and very close for copper, indicating minor bias in the gold samples and little bias in copper.

Table 11-8 Kena-Gold Mountain Duplicates Simple Statistics (outlier removed)

Samples
32
Average
D1
StdDev
D1
Average
D2
StdDev
D2
Au (g/t) 0.168 0.187 0.174 0.207
Cu (%) 0.019 0.021 0.019 0.021

The scatter plot of the gold duplicate pairs in Figure 11-27 (with the outlier sample removed) is presented on a logarithmic scale. The plot shows high correlation between the two sets of duplicates, and a slight positive bias, with the best fit line plotting slightly above the 1:1 line.

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Figure 11-27 Kena-Gold Mountain Au Duplicates Scatter Plot (Source: MMTS, 2021)

The HARD plot for gold is given in Figure 11-28 and shows that approximately 60% of samples have <10% HARD, which is slightly low for field duplicates; however, some variation is expected with field duplicates for gold in this deposit type, and the results are considered acceptable.

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Figure 11-28 Kena-Gold Mountain Au 2012 Duplicates (Source: MMTS, 2021)

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The HARD Plot of the copper duplicate pairs in Figure 11-29 shows high correlation between the two sets of samples, and very nearly 1:1 slope between the duplicate pairs for copper.

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Figure 11-29 Kena-Gold Mountain Cu Duplicates Scatter Plot (Source: MMTS, 2021)

The HARD plot for copper in Figure 11-30 shows that over 85% of samples have <10% HARD, which is more than acceptable for field duplicates.

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Figure 11-30 Kena-Gold Mountain Cu 2012 Duplicates HARD Plot (Source: MMTS, 2021)

11.3 Conclusions and Recommendations

After analysis of the sampling and QAQC program provided at the properties in the Kena Project, MMTS concludes that:

  • The history of sampling and security programs are deemed appropriate for each era of exploration.

  • The QAQC programs employed during 2012 and 2017 are below the normal requirements for resource estimation. It is recommended that a higher ratio of QAQC samples should be used in future sampling programs and should comprise approximately 15% of the total assays sampled.

  • The local rock and garden stone used as blank materials in 2012 and 2017 have a high failure rate and are not suitable blank materials. Certified blank materials should be used for QAQC sampling.

  • • Two of the three gold CRM samples inserted into the sample streams in 2012 indicate there may a high bias in the gold assays, however the number of samples is small, and sometimes there are issues with the CRM materials. Additional check assay programs are recommended including QAQC samples.

  • There are no QAQC samples in drilling in the Copper Zone. Check assays with QAQC is recommended for the Copper Zone.

The QAQC is adequate for resource estimation at this time, but it is recommended improvements are made for future studies.

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Data Verification

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12.1 Site Visit

The QP visited the Kena Project site on 26-28 January 2021 and was toured the property by Jack Denny, a private landowner who is familiar with the project and provides core storage facilities. During the visit locations were confirmed for seven drilling pads with one drillhole each in the Gold Mountain area, six clearings with a total of 12-14 drillholes in the Kena area, and the Discovery Trench. Approximate locations of the drillholes were confirmed with a handheld GPS device. It was not possible to observe drill collars due to snow conditions at the time. Drilling and sampling protocol was reviewed, and the core boxes in the storage facility were observed. Sampling of twelve drill core specimens were bagged, tagged, and sealed for delivery to ACTLabs in Kamloops.

12.2 Data Audit

MMTS received the assay Kena assay database from Perry Grunenberg, and the Daylight assay database from Jarrod Brown of TerraLogic in December of 2020.

Corrections to Database

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MMTS noted the following issues in the database. Any corrections that have been applied are described below.

  • Many assay intervals were missing sample IDs in the database, while most certificates only contained sample IDs. Without a sample ID many intervals could not be checked against certificates. Many sample IDs were available in historic reports and were added to the database where the sample ID was previously blank.

  • Certificate IDs were not previously tracked in the database. Certificate IDs were entered for all assays that certificates are available in the drilling reports. The primary laboratory, now Bureau Veritas, was also contacted and was able to provide some certificates. Assays that are missing certificates are flagged in the database.

  • Inconsistent use of lab repeats assay results (lab duplicates and triplicates). Sometimes first result, sometimes highest, sometimes middle result, sometimes average of results. – no changes made.

  • Inconsistent use of total metallics assay result if/when that assay method was conducted in addition to ICP/Fire Assay. – no changes are made.

  • All assays below detection limit in the 2017 Daylight drilling had “0” values entered rather than half detection limit. These were corrected to half of detection limit results.

  • A number of assays, generally from 2000-2002 that are below detection limit are entered in the database as the detection limit. This is possibly a result of rounding (i.e. DL= 0.01, 1/2DL = 0.005) but some parts of the database may have been rounded to 2 decimal places at some point, so 0.005 appears as 0.01.

  • Many blank assays in the database for copper and silver assays that exist on certificates. This is noted as a future opportunity to complete the database.

  • Any Cu assay values that were missing from Copper Zone drillholes were added to the database from certificates.

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Certificate Checks

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A total of 2,284 assays, or 14.4% of assays in the database, were checked against certificates to verify assays for gold. Errors were found in gold results for 27 assay intervals, 0.96% of assays checked. Of the errors identified, 63% have less than 0.1 g/t difference from the correct value.

A total of 189 assays, or 2.2% of copper assay intervals in the database, were checked against certificates to verify assays of copper. No errors were found.

During the certificate checks, and identifying which assay intervals have certificates, MMTS identified a total of 4,070 intervals that are missing certificates, equal to 20.8% of the database, the distribution of missing certificates by resource area and year is presented in Table 12-1.

The reasons for missing certificates include:

  • Missing pages in BC Geological Survey Assessment Reports,

  • Assessment Reports that were filed before the completion of a drill program, or before all assay results were back from the lab,

  • Incomplete records in the Assessment Reports.

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Table 12-1
Summary of Missing Certificates
Zone
Cu Zone
Daylight
Great Eastern &
Western
Kena-Gold Mountain
All Zones
Grand
Total
2017 2012 2010 2007 2004 2003 2002 2001 1991 1990 1988 1987 1986 1985 1981 1974 Year Zone
1,920 373 360 476 408 89 29 185 #
Assays
Cu Zone
279 0 23 115 0 1 15 125
#
No
Cert
14.5% 0.0% 6.4% 24.2% 0.0% 1.1% 51.7% 67.6%
%
Missing
Cert
1,539 1,138 401 #
Assays
Daylight
98 0 98
#
No
Cert
6.4% 0.0% 24.4%
%
Missing
Cert
842 572 270 #
Assays
Great Eastern &
Western
18 0 18
#
No
Cert
2.1% 0.0% 6.7%
%
Missing
Cert
15,312 2,936 446 278 323 551 3,267 2,412 234 1,212 301 393 1,868 708 305 78 #
Assays
Kena-Gold Mountain
3,675 0 155 0 157 0 664 1 194 849 228 6 562 578 203 78 # No
Cert
24.0% 0.0% 34.8% 0.0% 48.6% 0.0% 20.3% 0.0% 82.9% 70.0% 75.7% 1.5% 30.1% 81.6% 66.6% 100.0%
%
Missing
Cert
19,613 1,710 2,936 819 278 323 551 4,298 2,412 710 1,620 301 482 1,868 737 490 78 All Zones
Total
#
**Assays **
4,070 0 0 155 0 157 0 803 1 309 849 228 7 562 593 328 78
Total
# No
Cert
20.8% 0.0% 0.0% 18.9% 0.0% 48.6% 0.0% 18.7% 0.0% 43.5% 52.4% 75.7% 1.5% 30.1% 80.5% 66.9% 100.0%
Total %
Missing
Cert

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12.3 Check Assays

The analyses of four series of check assay samples are presented here. In 2021 twelve core samples were collected by S. Bird, P. Eng. at site and the results are acceptable. In 2001-2002, 111 coarse rejects were sent to Chemex for check assays and 84 samples were re-assayed at Acme, the results of both sets show a potential high bias in the original assay samples. In 1990, 38 coarse reject samples were sent to Chemex as check assays for both gold and copper from the Copper Zone and the analysis shows acceptable results.

Check assays in 2007 and 2010 are reported in the drilling reports, however, because no certificates are found, MMTS is not considering these series. MMTS recommends further check assay to validate historic data be conducted.

2021 Core Duplicates

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A set of twelve core samples was selected from the core boxes stored on pallets on a private property in Salmo, BC. by S. Bird, P.Eng. on 28 January 2021. Samples were selected from drillholes to represent varying grades and locations. The samples were processed at ActLabs in Kamloops, BC, by fire assay with AA finish, and gravimetric finish for samples with initial assay results over 5.0g/t. The selected samples are presented in Table 12-2 which shows drillhole, interval and sample numbers and assay values as well as the average and standard deviation of each assay sample set. The mean values are quite close with a relative difference of 3%.

Table 12-2 2021 Check Assays Sample List

Hole ID Year From
(m)
To (m) Sample
ID
Database
Au g/t
2021
ActLabs
**Aug/t **
01GM-03 2001 40 42 03040 4.99 5.69
01GM-05 2001 134 136 05134 5.43 6.00
01GM-08 2001 202 204 08202 8.89 9.78
01GM-12 2001 70 72 12070 0.44 0.37
02KG-01 2002 41 43 180521 0.74 0.574
02KG-01 2002 43 45 180522 1.29 0.954
02KG-01 2002 88 90 180546 0.55 0.435
02KG-01 2002 113 115 180559 1.34 1.24
03KG-08 2003 43 45 175519 0.52 0.549
03KG-08 2003 45 47 175520 1.00 1.01
10HG-05 2010 67.4 68.4 976740 1.059 0.783
10HG-05 2010 68.4 69.4 976741 0.795 0.487
Average Aug/t 2.254 2.323
Standard Deviation Aug/t 2.697 3.083

The results are presented in the scatter plot in Figure 12-1 and show good correlation along a straight line with a slope slightly above the 1:1 line. The slope of the best fit line above 1 indicates the trend of 2021 assays is approximately 10% higher than the historic assays, however, this is highly influenced by the

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values above 2g/t. For values below 2g/t the database assay values are seen to be higher than the 2021 check assay results, resulting in the mean values being very close. The results do not show significant bias and are considered acceptable for drill core duplicate assays considering the “nuggety” nature of gold.

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Figure 12-1 Kena-Gold Mountain 2021 Check Assays (Source: MMTS, 2021)

2001-2002 Data Verification Check Assays

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No QAQC samples were included in the 2001 and 2002 drilling. It was reported that for data verification purposes, one sample in 10 was given a random number and resubmitted to ACME, and about one sample in 20 was submitted to Chemex labs in Vancouver, BC for comparison (Dandy 26699, 2001). The reports do not explicitly state what kind of samples they are, coarse rejects or pulp duplicates. MMTS reviewed the drilling reports and located certificates for check assays and finds the numbers as reported in Table 12-3, the sampling rate appears to be much lower, ranging from one in 50 to one in 90.

Table 12-3 2001-2002 Check and Re-Assays

Year Chemex Check
**Assays **
Acme Re-
**Assays **
Total Assay
Samples
2001 50 38 2,412
2002 61 47 4,298
Total 111 85 6,710

2001-2002 Check Assays Chemex

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A summary of the 111 check assays submitted to Chemex in years 2001-2002 is presented in Table 12-4. Because the sample sizes for the Copper Zone, Daylight and Great Eastern/Great Western are so small, ranging from 3 to 8 samples, any significant differences between the means of the gold grades are not

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concerning. The mean of the gold grades in Kena-Gold Mountain in the ACME database values are slightly above the Chemex check assays (Figure 12-2).

Table 12-4 2001-2002 Chemex Check Assays by Area

Area Samples ACME Avg
Au(g/t)
Chemex Avg
Aug/t
ACME Std
Dev Au(g/t)
Chemex Std Dev
Aug/t
Cu Zone 3 0.403 0.293 0.474 0.282
Daylight 4 3.503 1.155 5.166 1.610
Great East-West 8 2.829 2.398 4.188 3.684
Kena-GM 96 2.143 2.070 3.417 3.713
Total 111 2.195 2.004 3.480 3.588

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Figure 12-2 2001-2002 Chemex Check Assays Kena-Gold Mountain Au (Source: MMTS, 2021)

The HARD plot of the duplicate pairs is shown inFigure 12-3, and give 58% less than 10% HARD which is less than expected for coarse duplicates. Because the nature of gold mineralization is “nuggety”, and there does not appear to be significant bias to the ACME results, these duplicate results are considered

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acceptable at this level of resource estimation, however MMTS recommends that future validation studies of the 2001 and 2002 historic data be conducted.

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Figure 12-3 2001-2002 Chemex Check Assays HARD Plot Kena-Gold Mountain Au (Source: MMTS, 2021)

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2001-2002 Acme Re-assays

Of the 85 assay samples re-assayed by ACME in 2001-2002, one was not in a resource area, one had a mismatched interval, and one is a significant outlier. The summary and statistics of the remaining 82 duplicate analyses at ACME are given in Table 12-5. Because the number of samples in the Copper Zone, Daylight and Great Eastern/Great Western range between only 2 to 8, any significant differences between the means of the gold grades are not concerning. The mean of the Kena-Gold Mountain results gives a relative difference of 6%, indicating a small positive bias to the database values.

Table 12-5 ACME 2001-2002 Re-Assays

Area Samples Average of
Au(g/t)
Average of Re-
**Assay Aug/t **
Std Dev of
Au(g/t)
Std Dev of Re-
Assay Aug/t
Cu Zone 5 0.158 0.180 0.122 0.133
Daylight 2 0.310 0.320 0.057 0.071
Great East-West 8 1.228 0.853 0.743 0.517
Kena-GM 67 1.204 1.131 1.746 1.727
Total 82 1.121 1.026 1.617 1.588

A scatter plot of the Re-assays in Kena-Gold Mountain is given in Figure 12-4. The best fit line shows an acceptable R-Squared value and the slope plots slightly below the 1:1 line confirming the slightly higher

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values in the original assays seen in the means. MMTS find the results of the check assays acceptable at this level of resource estimation and recommends further validation of the 2001-2001 assays.

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Figure 12-4 2001-2002 ACME Re-Assays Scatter Plot (Source: MMTS, 2021)

1990 Chemex Check Assays – Copper Zone

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In 1990, 38 coarse reject samples were sent to Chemex as check assays for both gold and copper from the Copper Zone. The simple statistics of the 38 duplicate pairs are presented in Table 12-6 and shows the means of the Chemex assay to be slightly higher for gold and slightly lower for copper.

Table 12-6 1990 Chemex Check Assays Statistics – Copper Zone

Statistic ACME
Au(g/t)
Chemex
**Aug/t **
ACME
Cu(pct)
Chemex
Cu(pct)
Average 0.163 0.187 0.274 0.269
Standard Deviation 0.084 0.109 0.127 0.121

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The scatter plot of gold assay duplicate pairs is given in Figure 12-5. The best fit line shows a marginal R- Squared indicating poor correlation, and a slope above the 1:1 line indicating the Chemex re-assay are higher than the ACME assays, confirming the results seen in the means.

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Figure 12-5 1990 Chemex Check Assays Gold (Source: MMTS, 2021)

The scatter plot for copper is given in Figure 12-6 and shows good correlation between the pairs with an R-Squared value of 0.9807 and a slope slightly lower than 1.0. The slightly lower slope indicates the original ACME results are slightly higher than the check assays, but not significantly biased.

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Figure 12-6 1990 Chemex Check Assays Copper (Source: MMTS, 2021)

12.4 Conclusions and Recommendations

MMTS finds the site visit, data audit and check assays to confirm that the resource database is adequate for resource estimation at this level. Concerns include a significant portion (20%) of the database is missing certificates, certificates of historic check assays from data verification programs are missing, and potential bias is seen in the 2001-2002 check assays. MMTS recommends the following:

  • Further check assays be conducted to include 5-10% of samples from every year that core or samples are available and include QAQC samples.

  • The assay database be amended to include silver and copper for all available samples.

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Mineral Processing and Metallurgical Testing

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There has been no new metallurgical test work on properties within the Kena Project. Some metallurgical test work has been reported in the past (Giroux, 2013) but has not been verified. MMTS has used an assumed 88% recovery of Au and 85% recovery of Cu based on comparable projects.

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Mineral Resource Estimates

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The Mineral Resource estimate has an effective date of March 25, 2021 and is an update to the previous resource estimate of the 2013 Kena Gold deposit (Giroux, 2004). The resource estimate was prepared by Sue Bird, P.Eng., of MMTS.

14.1 Kena Mineral Resource

The Mineral Resource statement for the Kena deposit with an effective date of March 25, 2021 is listed in Table 14-1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Mineral Resources were estimated using the 2019 CIM Best Practice Guidelines and are reported using the 2014 CIM Definition Standards.

Ordinary Kriging (OK) has been used for Au estimation with capping and outlier restriction implemented to reduce the effect of high-grade outliers and reduce the coefficient of variation (C.V.).

The base case cut-off grade within the “reasonable prospects of eventual economic extraction” constraining pit is 0.25 g/t gold (Au), as highlighted in Table 14-1. Table 14-1 is the total deposit resource and includes a range of Au cut-off grades to show the sensitivity of the resource estimate to variations in cut-off grade. At a 0.25 g/t Au cut-off, the total Indicated Mineral Resource is estimated at 32.1 Mt at 0.544 g/t Au, for a total of 562 Koz of gold. Table 14-2 through Table 14-4 summarize the resource by deposit areas as Kena Gold, Gold Mountain and Daylight, respectively.

Table 14-1 Kena Mineral Resource Estimate – Total Project

Class Cut-off **Tonnage ** Au NSR Au Metal
Au(gpt) (ktonnes) (gpt) (CDN$) (Koz)
Indicated 0.1
0.15
0.2
44,006
41,895
37,663
0.449
0.465
0.497
34.51
35.69
38.09
635
625.7
602.0
0.25 32,146 0.544 41.48 561.9
0.3
0.5
1
26,274
11,863
2,662
0.604
0.869
1.526
45.78
65.92
113.34
510.2
331.4
130.6
Inferred 0.1
0.15
0.2
348,491
281,957
223,301
0.330
0.378
0.432
23.78
27.59
31.56
3,697
3,428.2
3,103.0
0.25 177,508 0.486 35.57 2,773.1
0.3
0.5
1
135,814
53,060
9,136
0.552
0.813
1.588
40.83
61.33
115.44
2,410.1
1,386.7
466.4

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Table 14-2 Kena Mineral Resource Estimate – Kena Gold Deposit

Class Cut-off **Tonnage ** Au NSR Au
AuEq (gpt) (ktonnes) (gpt) (CDN$) (Koz)
Indicated 0.1
0.15
0.2
26,981
25,558
22,674
0.410
0.425
0.457
31.91
33.05
35.36
355.3
349.3
333.1
0.25 18,935 0.503 38.67 305.9
0.3
0.5
1
14,942
6,374
1,095
0.564
0.806
1.464
42.95
61.81
108.56
270.8
165.2
51.5
Inferred 0.1
0.15
0.2
93,884
81,380
64,885
0.346
0.380
0.433
23.56
26.97
30.81
1,045.3
995.0
903.7
0.25 52,411 0.483 34.60 813.5
0.3
0.5
1
42,791
18,040
1,599
0.530
0.734
1.629
39.26
57.74
113.14
728.9
425.7
83.7

Table 14-3 Kena Mineral Resource Estimate – Gold Mountain Deposit

Class Cut-off **Tonnage ** Au NSR Au
AuEq (gpt) (ktonnes) (gpt) (CDN$) (Koz)
Indicated 0.1
0.15
0.2
17,006
16,317
14,969
0.510
0.526
0.558
36.30
37.44
39.70
279.0
276.2
268.6
0.25 13,202 0.603 42.86 255.8
0.3
0.5
1
11,323
5,480
1,567
0.657
0.942
1.570
46.73
67.01
111.66
239.2
166.0
79.1
Inferred 0.1
0.15
0.2
247,586
195,335
154,439
0.325
0.378
0.432
23.08
26.87
30.74
2,583.0
2,372.6
2,145.5
0.25 122,381 0.487 34.62 1,915.4
0.3
0.5
1
91,152
34,298
7,188
0.561
0.851
1.592
39.90
60.51
113.27
1,644.1
938.0
368.0

Table 14-4 Kena Mineral Resource Estimate – Daylight Deposit

Class Cut-off **Tonnage ** Au NSR Au Metal
AuEq (gpt) (ktonnes) (gpt) (CDN$) (Koz)
Inferred 0.1
0.15
0.2
817
799
679
0.594
0.605
0.680
42.22
43.00
48.38
15.6
15.5
14.8
0.25 626 0.719 51.12 14.5
0.3
0.5
1
568
337
203
0.765
1.028
1.230
54.38
73.13
87.48
14.0
11.1
8.0

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Notes for Table 14-1 through 14-4:

1. Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines.

2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

3. The Mineral Resource has been confined by a “reasonable prospects of eventual economic extraction” pit using the following assumptions: US $2,000/oz. Au at a currency exchange rate of 0.77 US$ per $CDN; 99.95% payable Au, 96.5% payable Cu; $4.30/oz Au offsite costs (refining, transport and insurance), 0.467 Cu offsite; a 3% NSR royalty; and uses a 88% metallurgical recovery for gold for all areas and 85% recovery for Cu in the Cu zone only.

4. Pit slope angles are assumed at 45º.

5. The specific gravity of the deposit has been assigned as 2.8 based on sg measurements in the Kena deposit

6. Numbers may not add due to rounding.

The following factors, among others, could affect the Mineral Resource estimate: commodity price and exchange rate assumptions; pit slope angles; assumptions used in generating the LG pit shell, including metal recoveries, and mining and process cost assumptions. The QP is not aware of any environmental, permitting, legal, title, taxation, socioeconomic, marketing, political, or other relevant factors that could materially affect the Mineral Resource estimate.

14.2 Key Assumptions and Data used in the Estimate

The total sample database contains results from 203 core holes and 4 percussion holes from 1974 totalling 31,414.7m. The 1974 percussion holes were not used for the resource estimate. A summary of the drillholes within the Kena block model and used for interpolation is provided in Table 14-5. Figure 14-1 is a plan map showing the drillhole traces, the claims boundaries, and the resource pit shape.

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Total 2017 2012 2010 2007 2004 2003 2002 2001 1991 1990 1988 1987 1986 1985 1981 1974 Year Year West Mining
Kena Project
Table 14-5
Summary of Drillhole and Assays used in the Kena Resource Estimate
207 41 7 1 4 22 42 29 1 8 6 5 22 12 3 4 DHs Kena-GM
31,414.73 7,527.02 845.24 547.73 613.26 1,086.73 6,765.35 4,901.10 351.43 1,963.60 886.22 750.08 3,128.75 1,269.78 528.50 249.94
Total
Length
(m)
29,702.25 7,315.69 807.60 543.20 598.90 1,043.59 6,368.14 4,759.91 342.29 1,820.46 475.69 715.45 2,969.18 1,219.43 486.50 236.22 Interval
Length (m)
18 12 6 DHs Daylight
2,538.08 1,669.71 868.37
Total
Length
(m)
2,175.51 1,432.90 742.61
Interval
Length
(m)
11 6 5 DHs Great East-West
1,736.47 1,025.06 711.41
Total
Length
(m)
1,364.36 875.76 488.60
Interval
Length
(m)
16 3 4 2 2 1 1 3 DHs Cu Zone
4,129.91 740.05 1,065.33 723.76 747.10 168.90 49.07 635.70
Total
Length
(m)
30,01.80 726.97 672.33 233.07 615.40 157.81 46.02 550.20
Interval
Length
(m)
252 18 41 10 1 4 22 57 29 3 10 6 6 22 13 6 4 DHs Total
39,819.19 2,694.77 7,527.02 1,585.29 547.73 613.26 1,086.73 9,410.46 4,901.10 1,075.19 2,710.70 886.22 918.98 3,128.75 1,318.85 1,164.20 249.94
Total
Length
(m)
36,243.92 2,308.66 7,315.69 1,534.57 543.20 598.90 1,043.59 8,271.68 4,759.91 575.36 2,435.86 475.69 873.26 2,969.18 1,265.45 1,036.70 236.22
Interval
Length
(m)

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Figure 14-1 Drillhole Traces used in the Resource Estimate by Year

14.3 Geologic Modelling

The lithology, alteration and structural models had been previously interpreted by geologist working for Apex and Altair (see Sections 7 and 9 of this report). The main Kena-Gold Mountain zones is a shear hosted deposit associated with the Silver King Shear at the contact of the Silver King Intrusive and the Elise volcanics on the eastern arm of the Hall Creek syncline. The Cu Zone is an extension of the Kena-Gold Mountain trend and is considered to have porphyry style mineralization with elevated Au and Cu grades. The Daylight, Great Eastern and Great Western mineralization lies on the western arm of the Hall Creek

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syncline. The Daylight deposit is vein hosted within the lower Elise volcanics, with elevated Au grades over a true width of approximately 50m and has been mapped over an extent of approximately 3.3km. The Great Eastern and Great Western mineralization is more disseminated than the Daylight. The Cu zone and Great Eastern and Great Western zones, although they have been modelled, are not considered part of the current Resource due to the drill spacing and lack of geologic controls. Figure 14-2 below plots the simplified logged lithology illustrating the Silver King and Elise Volcanic contact on each side of the syncline.

The domains used in the interpolations have been created using implicit modelling (IM) which considers the structural and lithologic interpretations as well as the Au and Cu grades in the assayed drillholes. The overburden surface was created using logging provided by site. The domains and interpolation were clipped to the bottom of the overburden surface, and the resource is calculated based on the percentage of the block below the overburden and within the wireframe. Figure 14-3 illustrates the domains used for interpolation. Figure 14-4 illustrates the Daylight and Great Eastern / Great Western wireframes and the mapped Au soil anomalies as well as the Daylight vein trace illustrating close matching of the mapping with the wireframes used. Soil anomalies corresponding to the wireframes are also provided in Figure 9- 1 and Figure 9-2 for the Kena and Daylight properties, respectively.

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Figure 14-2 Simplified Logged Drillhole Lithology

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Figure 14-3 Domains used for Interpolation

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Figure 14-4 Domains used for Interpolation and Trace of Daylight Vein (red) (Source: MMTS, 2021)

14.4 Assay Statistics and Capping

The assay statistics were examined using boxplots, histograms, and cumulative probability plots (CPPs). Figure 14-5 and Figure 14-6 are examples of the CPPs for the Kena and Gold Mountain areas, respectively. The areas were divided into domains for the implementation of capping using cut-offs of 0.1gpt Au for low grade (LG), 0.3gpt Au for higher grade (HG) and below the 0.1gpt cut-off as a background domain. These high grade, mid-grade and background grade zones correspond roughly to the Silver King intrusives,

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the zone proximal to the intrusive contact with the underlying Elise volcanics, and the zone distal to the contact, respectively.

The capping values for each area and “lithology domain” is summarized in Table 14-6. Assay statistics for the capped gold grades are summarized in Table 14-7, illustrating that composited grades equal assay grade and therefore compositing has not introduced a bias. Also illustrated is that the grade distribution is generally lognormal, and the coefficient of Variation (C.V.) is equal to or below 2.0, meaning that interpolation by linear methods is generally acceptable.

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Figure 14-5 CPP of Au Assay Grades by Capping Domain – Kena Zone (Source: MMTS, 2021)

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Figure 14-6 CPP of Au Assay Grades by Capping Domain – Gold Mountain Zone (Source: MMTS, 2021)

Table 14-6 Summary of Capping by Area and Capping Domain

CAP VALUE CAP VALUE
Final Domain # AREA Capping
Code
Capping Domain AU CU%
1 KENA 11
12
15
HG
LG
Background
20.0
1.5
0.5
na
na
na
1 GOLD MTN 21
22
25
HG
LG
Background
40.0
3.0
0.6
na
na
na
2 CU ZONE 31
32
35
HG
LG
Background
5.0
0.4
0.3
1.0
0.5
0.3
3,4 DAYLIGHT 41
42
45
HG
LG
Background
20.0
0.5
10.0
na
na
na

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Table 14-7 Summary Statistics of Capped Assays and Composites

Source Parameter Au by Final Domain Au by Final Domain Cu
1 2 3 4 2
Assays Num Samples
Num Missing
Min (gpt)
Max (gpt)
Wtd. Mean (gpt)
Weighted CV
13,722
0
0
40
0.417
2.937
1,161
0
0
5
0.132
2.149
923
0
0
20
0.264
3.518
564
0
0
10
0.206
3.713
1,161
0
0
1
0.098
1.026
Composites Num Samples
Num Missing Samples
Min (gpt)
Max (gpt)
Wtd. Mean (gpt)
Weighted CV
5,132
0
0
17.481
0.417
1.915
428
0
0
4.487
0.132
1.873
279
0
0
3.732
0.264
1.747
130
0
0.002
2.934
0.206
2.063
428
0
0
0.476
0.098
0.885
Difference Wtd. Mean 0.0% 0.0% 0.0% 0.0% 0.0%

Note: Num = number, wtd = weighted, CV = co-efficient of variation.

14.5 Compositing

Assay sample lengths varied across the drill programs but are generally between 1.0 and 3.0m. A histogram of the assay intervals is shown in Figure 14-7, illustrating that the majority are 5m or less. A base composite length of 5.0m was used to ensure assay sample splits are minimized, as well as to reduce the Cv and align with potential selective mining unit. Assay data were coded with a domain value prior to compositing. The domain code was honoured during compositing. Any interval within a domain that was less than 2.5m was composited with the interval above it.

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Figure 14-7 Histogram of Assay Lengths (Source: MMTS, 2021)

14.6 Density Assignment

Model blocks were assigned the mean specific gravity of 2.8 which is the mean of all the sg values with outliers removed. Specific gravity has been measured using Archimedes principle. Measurements were only made in the Kena and Gold Mountain zones and consisted of 65 measurements within the Silver King porphyry and Elise volcanics.

14.7 Block Model Interpolations

The block model uses 20 x20 x 10m blocks with the extents of the model summarized in Table 14-8. This block size has been chosen based on the expected Selective Mining Unit (SMU). The average drillhole spacing ranges from 10m to 90m, with the mean drillholes spacing for the Indicated resource at about 3035m suggesting that the block size used is appropriate.

MineSight[©] software was used for geostatistical investigations and interpolations, as well as for the “reasonable prospects of eventual economic extraction” pit and to generate the resource statement.

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Table 14-8 Summary of Block Model Extents

Easting North Elev
Minimum
Maximum
0
3500

0

7800

800

2140
Hinge point: 481500
5470220

800
Rotation -45 (ccw from north)

Variography

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Correlograms were created for each domain for gold and for both gold and copper for the Cu Zone as summarized in Table 14-9. And example of the variogram model for the strike direction of the Kena-Gold Mountain domain is illustrated in Figure 14-8. Correlogram parameters are summarized in Table 14-10 with Search distances provided in Table 14-11.

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Figure 14-8 Variogram for the Kena – Gold Mountain Domain along Strike

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Table 14-9 Summary of Orientations for Interpolation

AREA Domain Rotation (GSLIB-MS) Rotation (GSLIB-MS)
Au Kena and Gold Mountain 1 ROT
DIPN
DIPE
295
0
70
Au Cu zone 2 ROT
DIPN
DIPE
310
0
85
Cu Cu zone 2 ROT
DIPN
DIPE
310
0
85
Au Great Eastern/Great Western 3 ROT
DIPN
DIPE
0
0
25
Au Daylight 4 ROT
DIPN
DIPE
305
0
65

Table 14-10 Summary of Correlogram Parameters

AREA Domain Total
Range
(m)
Nugget Sill1 Sill2 Sill3 Axis Range 1
(m)
Range 2
(m)
Range
3 (m)
Au Kena and
Gold
Mountain
1 150
150
65
0.2 0.6 0.15 0.05 Major
Minor
Vert
8
35
10
25
65
35
150
150
65
Au Cu zone 2 80
90
10
0.2 0.5 0.3 Major
Minor
Vert
10
25
5
80
90
10
Cu Cu zone 2 130
110
120
0.2 0.6 0.2 Major
Minor
Vert
50
55
35
130
110
120
Au Great
Eastern
and
Western
3 30
90
45
0.2 0.6 0.2 Major
Minor
Vert
10
40
20
30
90
45
Au Daylight 4 30
90
45
0.2 0.6 0.2 Major
Minor
Vert
10
40
20
30
90
45

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Table 14-11 Search Parameters for Au and Cu

Search Distances(m) Search Distances(m) Search Distances(m) Search Distances(m)
AREA Domain Pass 1 Pass 2 Pass 3 Pass 4
Kena and Gold
Mountain
1 8
35
10

45

45

20

150

150

65

180

180

78
CU Zone-AU 2 10
25
10

20

50

15

80

90

10

96

108

12
Cu zone 2 39
39
10

100

110

15

130

130

120

156

156

144
Daylight 3 10
10
5

20

20

10

30

30

10

60

60

20
Daylight 4 10
10
5

20

20

10

30

30

10

60

60

20

Additional search criteria sample selection is provided in Table 14-12.

Table 14-12 Additional Search Criteria

Domains Parameter Pass 1 Pass 2 Pass 3 Pass4
All Min # Comps 3 3 3 3
Max # Comps 15 12 12 12
Max / Hole 4 4 4 2
Max / Quad 2 2 2 n/a

14.8 Classification of Mineral Resources

Blocks were assigned preliminary classifications based on the average distances to at least two drillholes to be less than 30m. Two solids in constrained areas of the Kena Gold and Gold Mountain area were defined based on this criteria. Blocks within this solid, are classified as Indicated. The distance of 30m is based on the R80 value from the variography; as the range at approximately 80% of the sill. All other blocks that have an interpolated Au grade within the Kena and Daylight deposits are defined as Inferred. Blocks within the Cu zone and Great Eastern and Great Western deposits are un-classed and not included in the final resource estimate. Figure 14-9 is a plan view of the final block classification the drillhole density showing the pit outlines for reference.

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Figure 14-9 Plan View of the Classification, the Drill Pattern, and the Resource Pit (Source, MMTS, 2021)

Model Validation

The capping, modelling methods, and search parameters were chosen so that the final interpolated grades closely match the de-clustered composite data (using a nearest-neighbour or NN model) while showing appropriate smoothing.

To perform appropriate validations, a NN model was created to compare the de-clustered composites to the modelled grades. To validate the amount of smoothing in the model, the NN model was corrected

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for block size using an indirect lognormal theoretical correction, based on the global variogram parameters and mean grades for each domain.

Global Grade Validation

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Resource validation to ensure there was no global bias compared NN grades to those of the final grade interpolation at zero cut-off. Table 14-13 summarizes this comparison by domain, illustrating that the difference in gold grades by domain is within % overall. For copper, the comparison shows mean modelled grades within % for all domains.

Table 14-13 Summary of Model Grade Comparison with De-Clustered Composites by Domain

Model Cut-off
AuEq
(gpt)
OK Model OK Model OK Model NN Model NN Model NN Model Difference (%) Difference (%) Difference (%)
Tonnage Au Au Metal Tonnage Au Au Metal
(ktonnes) (gpt) (Koz) (ktonnes) (gpt) (Koz) Tonnage Au Au Metal
Total 0.1
0.15
0.2
386,273
319,389
257,646
0.345
0.390
0.443
4,278
4,009
3,666
354,868
282,039
231,694
0.377
0.442
0.501
4,304
4,012
3,731
8.1%
11.7%
10.1%
-9.5%
-13.3%
-13.1%
-0.6%
-0.1%
-1.8%
0.25 207,553 0.495 3,305 174,671 0.591 3,318 15.8% -19.3% -0.4%
0.3
0.5
1
160,776
64,529
11,652
0.560
0.822
1.576
2,897
1,706
590
139,523
71,980
19,664
0.672
0.943
1.712
3,013
2,183
1,082
13.2%
-11.5%
-68.8%
-19.9%
-14.7%
-8.6%
-4.0%
-27.9%
-83.3%

Grade-Tonnage Curves

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Grade–tonnage curves were created to compare the Au and Cu (in the Cu zone only) interpolated grades with de-clustered composite grades. Figure 14-10 through Figure 14-12 illustrate this comparison for gold and silver respectively, showing increased smoothing (reduced grades and increased tonnage) compared to the uncorrected NN grade curves, but a similar distribution compared to the theoretical NN-ILC grades.

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Figure 14-10 Grade-Tonnage Curve Comparison for Au – MI within the Resource Pit – Kena Gold (Source: MMTS, 2021)

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Figure 14-11 Grade-Tonnage Curve Comparison for Au – MI within the Resource Pit – Gold Zone (Source: MMTS, 2021)

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Figure 14-12 Grade-Tonnage Curve Comparison for Cu – MI within the Resource Pit - Daylight Vein (Source: MMTS, 2021)

Visual Comparisons

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Further validation on local grade estimation has been done through visual comparisons of the modelled grades with the assay and composite grades in section, plan and through three-dimensional checks. Figure 14-13 to Figure 14-15 illustrate the block grades and composite grades in east-west cross-sections for each deposit within the resource. Ok grades show similar grade distributions and values throughout the model to that of the drillhole data. On all sections, the drillhole data shown is ±30m of the section.

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Figure 14-13 Au Grade - Model Compared to Assays (+/- 30m) looking – Kena Gold (Source: MMTS, 2021)

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Figure 14-14 Au Grade - Model Compared to Assays (+/- 30m) – Gold Mountain (Source: MMTS, 2021)

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Figure 14-15 Au Grade - Model Compared to Assays (+/- 50m) – Daylight (Source: MMTS, 2021)

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14.9 Reasonable Prospects of Eventual Economic Extraction

An open pit created using Lerchs–Grossmann (LG) pit optimization has been done on a series of pits with varying price assumptions. The L-G pit is limited by the claim boundary and the pit slopes are assumed to be 45[ο] . The base case price, cost, smelter terms, foreign exchange and recoveries are summarized in Table 14-14.

Table 14-14 Summary of Base Case Economic Inputs

Parameter Value Units
Gold Price
Copper Price
Forex
Gold Payable
Cu Payable
Gold Offsites
Cu Offsites
Royalty
$2,000.00
$3.50
0.77
99.9
95.0
4.30
0.35
3
US$/oz
US$/lb
($US:$CDN)
%
%
$/oz
$/lb
%
Net Smelter Gold Price (CDN$)
Net Smelter Cu Price(CDN$)
$80.83
$3.87
$/g
%
Gold Process Recovery
Copper Process Recovery – Cu
Zone only
88
85
%
%

The resulting NSR equation in Canadian dollars is:

𝑁 𝑁𝑁 = ($82.94 ∗𝐴 𝐴 𝐴𝐴∗0.85) + (3.83 ∗ Cu% ∗ 2204.62 ∗0.85)

A gold price of US$1800/oz and a processing cost of $14.00/t requires a AuEq grade of approximately 0.25 g/t. Therefore, a cut-off of 0.25g/t AuEq is considered appropriate for current gold prices. The final resource pit has been based on the LG pit at $US2,000/oz Au to ensure that the resource pit will be large enough to encompass any potential reserves and is representative of an eventual economic extraction shape.

For the LG pit optimizations the costs given in Table 14-15 were used. Constant pit slopes at 45º were used for the resource pit.

Table 14-15 Costs used for Lerchs-Grossmann Resource Pit

Cost Value Units
Mineralized Mining Costs
Waste Mining Costs
Processing Costs
G&A Costs
$2.50
$2.30
$14.00
$4.50
/tonne
/tonne
/tonne of mineralization
/tonne of mineralization

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The resulting pit shape for “reasonable prospects of eventual economic extraction” is illustrated in Figure 14-16 with the AuEq grade for all blocks above cut-off.

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Figure 14-16 Three-dimensional View of the Resource Pit and AuEq blocks above 0.25g/t AuEq (Source: MMTS, 2021)

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14.10 Factors That May Affect the Mineral Resource Estimate

Areas of uncertainty that may materially impact the Mineral Resource estimate include:

  • Commodity price assumptions

  • Metal recovery assumptions

  • Mining and processing cost assumptions

There are no other known factors or issues known to the QP that materially affect the estimate other than normal risks faced by mining projects in the province in terms of environmental, permitting, taxation, socio-economic, marketing, and political factors.

14.11 External Review

The Resource Estimate methodology and conclusions have been reviewed by the external reviewer, Mike O’Brien, P. Geo., of Red Pennant Geoscience Services. Mike has concluded that the block estimates match the intent and method applied.

14.12 Risk Assessment

A description of potential risk factors is given in Table 14-16 along with either the justification for the approach taken or mitigating factors in place to reduce any risk.

Table 14-16 List of Risks and Mitigations/Justifications

# Description Justification/Mitigation
1 Classification Criteria Indicated based on Variograms in Kena deposit
2 Geologic Model Great Eastern and Great Western and Cu zone not classed and therefore not
included in the Resource statement due to lack of geologic constraints
currently.
3 Gold Price Assumption Cut-off is based on $1800 Au, which is approximatelythe current spotprice.
4 High Grade Outliers Capping and outlier restriction applied.
Grade-tonnage curves show model validates well with composite data
throughout thegrade distribution.
5 Processingand MiningCosts Assumed
6 Previous underground mining Site visit, production records and expert advice (Dandy, 2021) determine
thatprevious miningis minimal and not material.

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Mineral Reserve Estimates

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Not Applicable.

Mining Method

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Not Applicable.

Recovery Methods

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Not Applicable.

Project Infrastructure

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Not Applicable.

Market Studies and Contracts

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Not Applicable.

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Environmental Studies, Permitting and Social or Community Impact

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On the Daylight portion of the property a MYAB (multi-year area based) Mineral Exploration and Reclamation Permit MX-5-761 is in place, expiring in August 2022 prior to which a new 5-year permit application is required. Current reclamation bonding associated with this permit is $95,000 and is released by the government once the company ceases to explore the property and all reclamation work is completed.

The Kena Property is not currently permitted for diamond drilling. A new 5-year multi-area permit application was submitted to the Ministry of Mines in February 2021, with an anticipated approval timeline of 6 months. The property has had numerous drilling and exploration programs permitted previously and the author sees no reason to believe that the currently submitted permit application will not be approved in a timely manner.

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Capital and Operating Costs

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Not Applicable.

Economic Analysis

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Not Applicable.

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Adjacent Properties

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The Kena property area has had a long history of exploration that led to the discovery of various mineralized prospects. The existence and location of these past producing mines and prospects is not necessarily indicative of the existence of similar mineralization at Kena. The following has been paraphrased from previous report as referenced.

23.1 Silver King Mine

Silver King Mine is the largest past-producer associated with the Silver King intrusions. The property was once part of the Apex mineral title holdings, falling west of its claim block. Silver King mineralization comprises three polymetallic veins, with galena, chalcopyrite, pyrite, and tetrahedrite and minor sphalerite, bornite, and stromeyerite within highly sheared Elise Fm mafic volcanic flows near the eastern contact of the Silver King intrusion. The gangue is quartz, carbonate, and siderite in sericite schist, a highly sericitized and sheared Silver King intrusion. The Silver King Mine (BC Minfile 082FSW176) was in continuous production from 1889 to 1913, then intermittently up to 1958. Mining of 202,049 t of ore returned 138,214,612 g Ag, 8,896 g Au, 6,789,739 kg Cu, 15,234 kg lead (Pb) and 4,071 kg zinc (Zn), which correlates to an average grade of 684 g/t Ag and 3.36% Cu.

23.2 Athabasca Mine and California Prospect

The historic Athabasca Mine and the California prospect are vein deposits in the Elise Fm between the Silver King intrusion and the Nelson batholith, just to the north of the Gold Mountain-Kena Gold mineralized trend outlined on the Kena property. These quartz veins containing free gold associated with pyrite and base metal sulphides are described as typical orogenic- style.

The Athabasca Mine (BC Minfile #082FSW168) had historic production of 20,219 tonnes grading 31.2 g/t Au and 10.0 g/t Ag.

Starlight Trend

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The Starlight Trend is a series of northeast-trending mineralized bodies parallel to and 1.5km west of the Kena resource trend.

In 2002, Apex’s exploration program included surface work and drilling. Dandy (2003) reports that surface sampling of the Starlight vein, which varies from 10c m to over 2m wide (averaging 1m ) returned assay results as high as 22.5 g/t Au and 150.9 g/t Ag over 1.0m. One drillhole that intersected the 28cm wide Starlight vein returned 30.37 g/t Au and 140.8 g/t Ag. A parallel vein contained 10.96 g/t Au over 2.0m.

Historic production from Starlight Mine (BC Minfile #082FSW174) was 21 tonnes grading 27.7 g/t Au, 139.8 g/t Ag, and 0.96% Cu. The Starlight Trend also contains the historic Victoria and Daylight mines. Historic production from Victoria Mine (BC Minfile #082FNW040) was 3 tonnes grading 1.12 g/t Au, 28.9 g/t Ag, and 2.56% Cu. Daylight Mine (BC Minfile #082FSW125) produced 327 tonnes grading 27.0 g/t Au and 15.2 g/t Ag.

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Other Relevant Data and Information

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Not Applicable.

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Interpretation and Conclusions

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25.1 Geology and Mineralization

  • Knowledge of the deposit settings, lithologies, and structural controls on mineralization, and the mineralization style and setting are sufficient to support Mineral Resource estimation.

  • Additional information on lithology, structure and alteration associated with mineralization would increase confidence in the mineral resource and potentially upgrade the Cu Zone, Great Eastern and Great Western to be included in the resource estimate.

25.2 Exploration and Drilling

  • The exploration programs completed to date are appropriate to the style of the known mineralization within the Project area.

  • Geophysical surveys have proven useful to assist in interpreting deposit geology and identifying drill targets for future exploration.

  • A total of 252 drillholes resulting in 36,243.9m of assayed intervals have been drilled into the project area between 1974 and 2017. Less than one percent of drilling was before 1981.

25.3 Sample Preparation and Analysis

  • Sampling methods are acceptable and meet industry-standard practice relative to the era of drilling.

  • For samples after 1988, analysis has been documented that it was performed by accredited thirdparty laboratory.

  • The QAQC programs employed during 2012 and 2017 have sample inclusion rates below the normal requirements for the resource estimate.

25.4 Data Verification

Drillhole data from 1980 to the present has been used in the resource estimate. Certificate checks were made and any corrections to the data have been included in the interpolations. Data that did not include QAQC has been validated using Point Validation.

MMTS finds the site visit, data audit, and check assays to confirm that the resource database is adequate for resource estimation at this level. Concerns include a significant portion (20%) of the database is missing certificates, certificates of historic check assays from data verification programs are missing, and potential bias is seen in the 2001-2002 check assays.

25.5 Mineral Resource Estimate

The mineral resource has been estimated using ordinary kriging to estimate the Au grade in the Kena Gold, Gold Mountain and Daylight vein deposits. The estimate is constrained to a “reasonable prospects of eventual economic extraction” pit and has been validated by statistical comparisons with de-clustered composites and visual comparison.

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Recommendations

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The following recommendations are made to more the project forward.

26.1 Exploration and Drilling

Based on the presence of orogenic porphyry and vein gold and porphyry copper-gold mineralization hosted on the large Kena Property the author recommends additional work. Mineralization, originally outlined by soil geochemistry, has been followed up with several phases of diamond drilling which indicates that the gold and copper zones align along strong structural corridors readily identified by geophysical signatures.

The 2021 exploration program will include two phases, one exploring targets on the Daylight portion of the property and the other on the Kena side. Phase 2 is not contingent upon the results of the Phase 1 as the phases target separate zones.

In Phase 1, up to twelve short step-out diamond drillholes will test the Starlight Vein system and two fences of six to eight holes will be drilled in the Great Western area to expand on previously identified intrusive related gold mineralization in that zone. At Starlight, drill results will assist in determining the average grade and width of this vein in the vicinity of the historic Starlight workings where the magnetic low signature is strongly consistent with the shear hosted vein location. A total of 2000 metres of drilling at Starlight and Great Western is recommended at a cost of $315,000 CAD.

Phase 2 consists of diamond drilling on the Kena portion of the property with two priority target areas. The large Kena Copper Zone is to be tested with a series of three drill fences, totalling fifteen drillholes, to be located where the strongest portion of the copper soil geochemical anomaly is associated with a significant induced polarization geophysical signature. Along with drilling the copper porphyry target, an additional 2000 metres of drilling is recommended, with holes targeted to expand the Gold MountainKena Gold Zones’ gold resource and to bring a portion of the inferred resource into the measured and indicated category.

In conjunction with the drilling program, a two-week geological mapping, prospecting, and rock sampling survey is to be conducted over several target areas in the southern portion of the Kena claim block (south of the Kena Copper Zone). Target areas have been identified by prior geochemical and geophysical surveys.

Cost for Phase 2 diamond drilling and the southern extension exploration program is $850,000 CAD.

26.2 QAQC and Check Assays

The QAQC programs employed during 2012 and 2017 are below the normal requirements for resource estimation. It is recommended that a higher ratio of QAQC samples should be used in future sampling programs and should comprise approximately 15% of the total assays sampled.

The local rock and garden stone used as blank materials in 2012 and 2017 have a high failure rate and are not suitable blank materials. Certified blank materials should be used for QAQC sampling.

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Two of the three gold CRM samples inserted into the sample streams in 2012 indicate there may a high bias in the gold assays, however the number of samples is small, and sometimes there are issues with the CRM materials. Additional check assay programs are recommended including QAQC samples.

There are no QAQC samples in drilling in the Copper Zone. Check assays with QAQC is recommended for the Copper Zone.

Further check assays be conducted to include 5-10% of samples from every year that core or samples are available and include QAQC samples.

The assay database be amended to include silver and copper for all available samples.

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References

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Andrew, K. and Hoy, T., 1988; The Shaft Showing, Elise Formation, Rossland Group: BC Ministry of Energy, Mines and Petroleum Resources, Exploration in British Columbia 1988.

Black, P.T., 1987; 1987 Drilling Project Report: BC Ministry of Mines Assessment Report #16594.

Brown, J. and Gagnon, C., 2 March 2018, 2017 Geological, Geochemical, Geophysical, and Drilling Program - Daylight Project, BC Geological Survey Assessment Report 37536 (Prize Mining Corporation).

Canadian Securities Administrators (CSA), 2011: National Instrument 43-101, Standards of Disclosure for Mineral Projects, Canadian Securities Administrators.

Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2019: Estimation of Mineral Resources and Mineral Reserves, Best Practice Guidelines: Canadian Institute of Mining, Metallurgy and Petroleum, November 29, 2019.

Canadian Institute of Mining, Metallurgy and Petroleum (CIM), 2014: CIM Standards for Mineral Resources and Mineral Reserves, Definitions and Guidelines: Canadian Institute of Mining, Metallurgy and Petroleum, May, 2014.

Dandy, L., 2021. Personal Communication.

Dandy, L., January, 2011, Geological, Geochemical, Geophysical, and Diamond Drilling Report on the Kena Property, BC Geological Survey Assessment Report 31924 (Sultan Minerals Inc.).

Dandy, L., 2009; Geological and Trenching Report on the Kena Property: BC Ministry of Energy and Mines Assessment Report #30694.

Dandy, L., May 2008, Geological, Geochemical and Drilling Report on the Kena Property, BC Geological Survey Assessment Report 29992 (Sultan Minerals Inc.)

Dandy, L., February 2003, Geological, Geochemical and Drilling Report on the Kena Property, BC Geological Survey Assessment Report 27240 (Sultan Minerals Inc.)

Dandy, L., May 2002, Geological, Geochemical and Drilling Report on the Kena Property, BC Geological Survey Assessment Report 26875 (Sultan Minerals Inc.)

Dandy, L., 2002; Geology, Geochemistry, Geophysics, Trenching and Diamond Drilling Report on the Kena Property: 43-101 Technical Report for British Columbia Securities Commission.

Dandy, L., August 2001, Geology, Trenching and Diamond Drilling Report on the Kena Property, BC Geological Survey Assessment Report 26699 (Sultan Minerals Inc.)

Dandy, L., February 2001, Geological, Geochemical, Geophysical and Trenching Report on the Kena Property, BC Geological Survey Assessment Report 26503 (Sultan Minerals Inc.)

Dandy, L., March 2000, Geological and Geochemical Report on the Kena Property, BC Geological Survey Assessment Report 26212 (Sultan Minerals Inc.)

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DMT Geosciences, 2013; Geophysical Analysis and Interpretation of the Historical Surveys of the Kena Property: Unpublished report for Altair Gold Inc.

Dunn, P.G., 1978; Kena Prospect: BC Ministry of Mines Assessment Report.

Dunne, K.P.E., 2001; Alteration Mapping Study of the Gold Mountain Zone, Kena Property: Unpublished Report for Sultan Minerals Inc.

Giroux, G.H. and Dandy, L.L., 2004; Preliminary Resource Calculations for Gold Mountain and Kena Gold Zones, Kena Property, BC: Technical Report for British Columbia Securities Commission.

Giroux, G. and Grunenberg, P., 2012; Technical Report on the Kena Property, Nelson, BC, May 15, 2012: Technical Report

Giroux, G., 2013, “Technical Report for the Kena Property, Nelson, BC” for Altair Gold.

Grunenberg, P.B., 2010; Geophysical and Geochemical Report on the Kena Property: BC Ministry of Energy and Mines Assessment Report #31454.

Grunenberg, P.B. and Dandy, L.L., 2011; Summary Report on the Kena Property, for Sultan Minerals Inc

Hoy, T., 2003; Structural Geology of the Kena Property, Nelson Area, Southeastern British Columbia: Unpublished Report for Sultan Minerals Inc.

Hoy, T. and Andrew, K.P.E., 1989; Geology of the Nelson Map Area, Southeastern British Columbia: BC Ministry of Energy, Mines, and Petroleum Resources, Open File 1989-11.

Hoy, T. and Andrew, K.P.E., 1989; The Rossland Group, Nelson Map Area, Southeastern British Columbia: BC Ministry of Energy, Mines and Petroleum Resources, Geological Fieldwork, 1988, Paper 1989-1.

Hoy, T. and Dunne, K.P.E., 1997; Early Jurassic Rossland Group – Part I Stratigraphy and Tectonics: BC Ministry of Energy and Mines, Bulletin 102.

Hoy, T. and Dunne, K.P.E., 1998; Geological Compilation of the Trail Map-Area: BC Ministry of Energy and Mines, Geoscience Map 1998-1.

Johnson, D., 1975; Report on Kena Copper Prospect: BC Ministry of Mines Assessment Report #05665.

Johnson, D., 23 October 1974, Report on Percussion Drilling Kena Claims Toad Mountain Area, BC Geological Survey Assessment Report 05222 (Ducanex Resources Limited)

Johnston, R.J., 1986; Summary Report on 1986 Work – Kena Property: BC Ministry of Mines Assessment Report #15767.

Johnston, R.J., December 1986, Assessment Report on Diamond Drilling Kena Property, BC Geological Survey Assessment Report 15373 (Lacana Mining Corporation)

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Johnston, R.J., November 1986, Summary Report on 1986 Work Kena Property, Nelson, BC, BC Geological Survey Assessment Report 15767 (Lacana Mining Corporation)

Johnston, R.J., 7 August 1985, Geological, Drilling, and Physical Report on the Kena Property, BC Geological Survey Assessment Report 14023 (Lacana Mining Corporation)

Lewis, W.J., 1990; Geophysical & Geochemical Report on the Kena Copper Grid for Assessment Credits on the Schist 1, Schist 2, Schist 3, Schist Fr., Cottonwood and Hall Mineral Claims (K Group): BC Ministry of Mines Assessment Report #20634.

Lewis, W.J. and Lisle, T.E., 20 November 1990, 1990 Diamond Drilling Report for Assessment Credits on the Cot, Roadside FR., Cot FR., Mas FR., Tee FR., Flat FR., Au 2, Au 4, Star of the West and Princess Mineral Claims – Shaft Property, BC Geological Survey Assessment Report 20481 (Noramco Mining Corporation)

Lewis, W.J. and Silversides, D.A., January 1991, 1990 Diamond Drilling Report on the K Group – Drill Holes K90-1 to K90-4 – Kena Project, BC Geological Survey Assessment Report 20894 (Noramco Mining Corporation)

Park, V. and Grunenberg, P., 15 May 2013, Geological, Geochemical, Geophysical, and Drilling Report for the Kena Property, BC Geological Survey Assessment Report 34138 (Altair Gold Inc.)

Rhys, D., 2001; Structural Geology Study of the Gold Mountain Zone, Kena Property: Unpublished Report for Sultan Minerals Inc.

Rhys D., 2000; Kena Property Structural Geology Study: Unpublished Report for Sultan Minerals Inc.

Sirola, W.M., 26 October 1981, Diamond Drilling Report Kena 18-15 Mineral Claims, BC Geological Survey Assessment Report 09593 (Kerr Addison Mines Limited)

Sirola, W.M., 17 September 1981, Diamond Drilling Report Kena #7 Mineral Claim, BC Geological Survey Assessment Report 09476 (Kerr Addison Mines Limited)

TerraLogic, 2018, “Assessment Report 2017 Geological, Geochemical, Geophysical and Drilling Program, Daylight Project” for Prize Mining.

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APPENDIX A Drillhole Collars

HOLE-ID EASTING NORTHING ELEVATION LENGTH AZIMUTH DIP Year Company Area **DH Type **
P74-01 480676 5474819 1497.5 15.24 40 -60 1974 Ducanex Kena-GM Percussion
P74-02 480676 5474819 1497.5 82.3 0 -90 1974 Ducanex Kena-GM Percussion
P74-03 480593 5474868 1487.9 76.2 40 -60 1974 Ducanex Kena-GM Percussion
P74-04 480617 5474857 1491.6 76.2 40 -60 1974 Ducanex Kena-GM Percussion
KK81-01 480533 5474839 1477.4 182.3 40 -60 1981 Kerr Addison Kena-GM DDH
KK81-02 480640 5474740 1506.5 167 40 -60 1981 Kerr Addison Kena-GM DDH
KK81-03 480576 5474782 1495.6 179.2 40 -60 1981 Kerr Addison Kena-GM DDH
KK81-04 481608.8 5473554.4 1555.5 228.5 40 -63 1981 Kerr Addison Cu Zone DDH
KK81-05 481824.6 5473062.1 1599.4 255.4 40 -51 1981 Kerr Addison Cu Zone DDH
KK81-06 482225 5472774.6 1593.5 151.8 40 -51 1981 Kerr Addison Cu Zone DDH
LK85-07 480689 5474793 1502.6 53.64 40 -55 1985 Lacana Kena-GM DDH
LK85-08 480661 5474797 1499.9 61.26 20 -55 1985 Lacana Kena-GM DDH
LK85-09 480642 5474810 1495 59.74 20 -55 1985 Lacana Kena-GM DDH
LK85-10 480698 5474620 1509.8 71.63 20 -55 1985 Lacana Kena-GM DDH
LK85-11 480701 5474760 1504.6 85.65 40 -55 1985 Lacana Kena-GM DDH
LK85-12 481603.7 5473402.2 1572 49.07 90 -55 1985 Lacana Cu Zone DDH
LK85-13 480678 5474775 1502.8 97.84 40 -55 1985 Lacana Kena-GM DDH
LK85-14 480663 5474766 1497.3 133.5 40 -55 1985 Lacana Kena-GM DDH
LK85-15 480765 5474553 1505.4 117.65 40 -55 1985 Lacana Kena-GM DDH
LK85-16 480737 5474741 1505.6 92.66 40 -55 1985 Lacana Kena-GM DDH
LK85-17 480781 5474533 1506.7 129.84 40 -55 1985 Lacana Kena-GM DDH
LK85-18 480740 5474689 1498.9 138.99 40 -55 1985 Lacana Kena-GM DDH
LK85-19 480673 5474573 1533.4 227.38 40 -55 1985 Lacana Kena-GM DDH
LK86-20 480796 5474688 1499.2 144.47 40 -50 1986 Lacana Kena-GM DDH
LK86-21 480796 5474688 1499.2 114.91 40 -80 1986 Lacana Kena-GM DDH
LK86-22 480858 5474644 1499.4 153.62 40 -50 1986 Lacana Kena-GM DDH
LK86-23 480858 5474644 1499.4 151.49 40 -80 1986 Lacana Kena-GM DDH
LK86-24 480767 5474652 1504 126.49 40 -70 1986 Lacana Kena-GM DDH
LK86-25 480856 5474523 1485.6 107.9 55 -45 1986 Lacana Kena-GM DDH
LK86-26 480883 5474460 1488.4 180.44 60 -60 1986 Lacana Kena-GM DDH
LK86-27 480922 5474418 1485 120.09 60 -45 1986 Lacana Kena-GM DDH
LK86-28 480724 5474597 1502.6 273.1 40 -60 1986 Lacana Kena-GM DDH
LK86-29 480889 5474569 1485 214.58 40 -45 1986 Lacana Kena-GM DDH
LK86-30 480889 5474569 1485 111.25 40 -80 1986 Lacana Kena-GM DDH
LK86-31 480994 5474564 1479.6 257.25 40 -45 1986 Lacana Kena-GM DDH

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HOLE-ID EASTING NORTHING ELEVATION LENGTH AZIMUTH DIP Year Company Area **DH Type **
LK86-32 480970 5474536 1475.5 92.35 40 -70 1986 Lacana Kena-GM DDH
LK86-33 481108 5474400 1458.3 83.51 40 -45 1986 Lacana Kena-GM DDH
LK86-34 480527 5474915 1466.4 92.66 40 -45 1986 Lacana Kena-GM DDH
LK86-35 480518 5474950 1447.9 104.85 35 -45 1986 Lacana Kena-GM DDH
LK86-36 480818 5474677 1498.3 117.65 40 -60 1986 Lacana Kena-GM DDH
LK86-37 480778 5474699 1498.6 129.54 40 -50 1986 Lacana Kena-GM DDH
LK86-38 480841 5474660 1500.1 138.99 40 -60 1986 Lacana Kena-GM DDH
LK86-39 480805 5474656 1505.5 145.08 40 -60 1986 Lacana Kena-GM DDH
LK86-40 480760 5474681 1505.4 163.37 40 -60 1986 Lacana Kena-GM DDH
LK86-41 480748 5474724 1503.2 105.16 40 -50 1986 Lacana Kena-GM DDH
TK87-42 481577 5473435.4 1574.1 168.9 40 -45 1987 Tournigan Cu Zone DDH
TK87-43 480655 5474755 1499.4 139.6 0 -90 1987 Tournigan Kena-GM DDH
TK87-44 480088 5474765 1472.4 153.6 70 -45 1987 Tournigan Kena-GM DDH
TK87-45 480191 5475007 1403.3 153.01 40 -45 1987 Tournigan Kena-GM DDH
TK87-46 480094 5474962 1401.5 126.18 40 -45 1987 Tournigan Kena-GM DDH
TK87-47 479969 5474887 1407.5 177.69 70 -45 1987 Tournigan Kena-GM DDH
SP88-01 479736 5475635 1418.8 210 58 -60 1988 South Pacific Kena-GM DDH
SP88-02 479736 5475635 1418.8 60 58 -60 1988 South Pacific Kena-GM DDH
SP88-03 479705 5475624 1412.8 80 51 -60 1988 South Pacific Kena-GM DDH
SP88-04 479705 5475624 1412.8 137.72 0 -90 1988 South Pacific Kena-GM DDH
SP88-05 479714 5475386 1426.3 222.5 60 -60 1988 South Pacific Kena-GM DDH
SP88-06 479721 5475528 1404.4 176 60 -60 1988 South Pacific Kena-GM DDH
K90-01 479751 5474993 1462.2 245.35 60 -75 1990 Noramco Kena-GM DDH
K90-02 479751 5474993 1462.2 64.63 240 -45 1990 Noramco Kena-GM DDH
K90-03 482018.5 5473024.7 1568.9 355.1 40 -60 1990 Noramco Cu Zone DDH
K90-04 482418.3 5472540.4 1482.9 392 40 -60 1990 Noramco Cu Zone DDH
SH90-01 479770 5476036 1437.4 345.8 60 -65 1990 Noramco Kena-GM DDH
SH90-02 479661 5475974 1462.9 368.9 60 -65 1990 Noramco Kena-GM DDH
SH90-03 479424 5475824 1473.7 281.32 60 -70 1990 Noramco Kena-GM DDH
SH90-04 479585 5475915 1480.2 154.6 60 -65 1990 Noramco Kena-GM DDH
SH90-05 479856 5475740 1390.7 227.1 60 -65 1990 Noramco Kena-GM DDH
SH90-06 479905 5477085 1145 275.9 53 -60 1990 Noramco Kena-GM DDH
NK91-01 482178 5472285 1511.4 486.76 40 -60 1991 Noramco Cu Zone DDH
NK91-02 481656 5473623 1543.3 237 175 -45 1991 Noramco Cu Zone DDH
NK91-03 480576 5474691 1518 351.43 0 -90 1991 Noramco Kena-GM DDH
01GM-01 479365.1 5475917.1 1479.1 137.16 58 -45 2001 Sultan Kena-GM DDH
01GM-02 479364.6 5475916.8 1479.2 134.26 57 -60 2001 Sultan Kena-GM DDH

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HOLE-ID EASTING NORTHING ELEVATION LENGTH AZIMUTH DIP Year Company Area **DH Type **
01GM-03 479364.6 5475916.8 1479.2 124.05 73 -45 2001 Sultan Kena-GM DDH
01GM-04 479459.3 5475979.5 1479 267.61 240 -45 2001 Sultan Kena-GM DDH
01GM-05 479320.4 5475891.1 1483.8 170.08 60 -45 2001 Sultan Kena-GM DDH
01GM-06 479382 5475879 1477 135.33 60 -45 2001 Sultan Kena-GM DDH
01GM-07 479465.7 5475663.9 1465.9 142.04 60 -45 2001 Sultan Kena-GM DDH
01GM-08 479261.7 5475853.6 1493.5 214.27 60 -45 2001 Sultan Kena-GM DDH
01GM-09 479197.2 5475821.8 1507.7 295.96 60 -45 2001 Sultan Kena-GM DDH
01GM-10 479137.3 5475783.6 1518.5 359.05 58 -45 2001 Sultan Kena-GM DDH
01GM-11 479118.2 5475898.1 1529.5 349.3 60 -45 2001 Sultan Kena-GM DDH
01GM-12 478920.1 5476015 1562 305.78 60 -45 2001 Sultan Kena-GM DDH
01GM-13 478831.7 5476181.6 1566.4 132.89 60 -45 2001 Sultan Kena-GM DDH
01GM-14 479340.6 5475569 1495.2 151.49 60 -45 2001 Sultan Kena-GM DDH
01GM-15 478464.3 5476220.8 1641.5 105.46 60 -45 2001 Sultan Kena-GM DDH
01GM-16 479538.1 5475224.3 1511.8 144.78 62 -45 2001 Sultan Kena-GM DDH
01GM-17 478651.5 5476320.3 1584.6 138.99 58 -45 2001 Sultan Kena-GM DDH
01GM-18 478752 5476136.6 1586.7 185.62 60 -45 2001 Sultan Kena-GM DDH
01GM-19 479615.3 5475274.2 1491.4 138.38 60 -45 2001 Sultan Kena-GM DDH
01GM-20 479174.2 5475585.6 1546.4 178.31 60 -55 2001 Sultan Kena-GM DDH
01GM-21 479536.5 5475223.2 1512 59.74 0 -90 2001 Sultan Kena-GM DDH
01GM-22 478752 5476136.6 1586.7 55.47 60 -65 2001 Sultan Kena-GM DDH
01GM-23 479411.7 5475953.9 1478.7 121.92 60 -45 2001 Sultan Kena-GM DDH
01GM-24 479410.4 5475954 1478.6 91.7 15 -45 2001 Sultan Kena-GM DDH
01GM-25 479378.2 5475944.7 1479.2 186.23 0 -90 2001 Sultan Kena-GM DDH
01GM-26 479393.1 5475917.9 1476 177.4 0 -90 2001 Sultan Kena-GM DDH
01GM-27 479388.6 5476186.1 1481.1 110.61 60 -45 2001 Sultan Kena-GM DDH
01GM-28 479382.1 5475902 1477.1 184.05 0 -90 2001 Sultan Kena-GM DDH
01GM-29 479152.4 5475653.1 1539.9 103.17 347 -45 2001 Sultan Kena-GM DDH
02GM-30 479322 5475862 1484.2 178.92 56 -47 2002 Sultan Kena-GM DDH
02GM-31 479382.9 5475902 1477 76.05 30 -46 2002 Sultan Kena-GM DDH
02GM-32 479383.5 5475901 1477 71.93 90 -46 2002 Sultan Kena-GM DDH
02GM-33 479387 5475937 1477.8 101.5 56 -46 2002 Sultan Kena-GM DDH
02GM-34 479289.8 5475873 1488 195.07 60 -46 2002 Sultan Kena-GM DDH
02GM-35 479276.2 5475837 1489.5 207.47 56 -46 2002 Sultan Kena-GM DDH
02GM-36 479275 5475849 1489.6 206.65 56 -46 2002 Sultan Kena-GM DDH
02GM-37 479313.4 5475875 1485 181.66 56 -46 2002 Sultan Kena-GM DDH
02GM-38 479356.5 5475886 1479.6 133.2 56 -46 2002 Sultan Kena-GM DDH
02GM-39 479348.1 5475898 1480.1 137.35 56 -46 2002 Sultan Kena-GM DDH

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West Mining Kena Project

HOLE-ID EASTING NORTHING ELEVATION LENGTH AZIMUTH DIP Year Company Area **DH Type **
02GM-40 479382.9 5475918 1477.3 106.73 56 -46 2002 Sultan Kena-GM DDH
02GM-41 479311.7 5475874 1485 354.83 0 -90 2002 Sultan Kena-GM DDH
02GM-42 479338.806 5475873.844 1482.3 251 0 -90 2002 Sultan Kena-GM DDH
02GM-43 479387.766 5475843.543 1478 195.07 0 -90 2002 Sultan Kena-GM DDH
02GM-44 479439.207 5475875.147 1474 122.53 0 -90 2002 Sultan Kena-GM DDH
02GM-45 479364.268 5475976.202 1479.8 168.55 0 -90 2002 Sultan Kena-GM DDH
02GM-46 479389.412 5475712.117 1481.5 254.2 0 -90 2002 Sultan Kena-GM DDH
02GM-47 479619.451 5475373.761 1468.8 207.26 0 -90 2002 Sultan Kena-GM DDH
02GM-48 479579.46 5475463.063 1462.8 195.07 235 -89 2002 Sultan Kena-GM DDH
02GM-49 479525.856 5475555.773 1457 156.06 0 -90 2002 Sultan Kena-GM DDH
02GM-50 479340.434 5476130.576 1485.7 128.63 60 -51 2002 Sultan Kena-GM DDH
02GM-51 479895.21 5475189.043 1404.1 61.26 60 -50 2002 Sultan Kena-GM DDH
02GM-52 479748 5475114 1467.3 216.41 62 -51 2002 Sultan Kena-GM DDH
02GM-53 479646 5475069 1497.8 335.28 60 -51 2002 Sultan Kena-GM DDH
02GM-54 478752 5476137 1586.6 128.63 17 -51 2002 Sultan Kena-GM DDH
02GM-55 478752 5476137 1586.6 55.17 110 -50 2002 Sultan Kena-GM DDH
02GM-56 479452 5476028 1477.8 87.17 55 -51 2002 Sultan Kena-GM DDH
02GM-57 479430 5476214 1489 65.23 60 -50 2002 Sultan Kena-GM DDH
02GM-58 479430 5476214 1489 62.79 90 -51 2002 Sultan Kena-GM DDH
02GM-59 479555 5476048 1477.7 115.52 60 -50 2002 Sultan Kena-GM DDH
02GM-60 479672 5475742 1458.2 118.87 60 -50 2002 Sultan Kena-GM DDH
02GM-61 478428 5476455 1568.6 220.98 60 -50 2002 Sultan Kena-GM DDH
02GM-62 478261 5476498 1568.2 133.2 60 -50 2002 Sultan Kena-GM DDH
02GM-63 477999 5476354 1621.7 261.52 60 -50 2002 Sultan Kena-GM DDH
02GM-64 478724 5476481 1525.6 211.53 60 -50 2002 Sultan Kena-GM DDH
02GW-01 477582 5476212 1468 121.92 150 -50 2002 Sultan Great EW DDH
02GW-02 477984 5475871 1638 129.54 10 -50 2002 Sultan Great EW DDH
02GW-03 477880 5476026 1618 156.97 0 -50 2002 Sultan Great EW DDH
02GW-04 477741 5476060 1555 135.64 328 -45 2002 Sultan Great EW DDH
02GW-05 477832 5476559 1562.1 135.33 45 -50 2002 Sultan Kena-GM DDH
02GW-06 478018 5475482 1675 167.34 15 -52 2002 Sultan Great EW DDH
02KG-01 480688 5474792 1502.6 320.65 0 -90 2002 Sultan Kena-GM DDH
02KG-02 480245 5474736 1498.2 220.98 42 -52 2002 Sultan Kena-GM DDH
02SG-01 481865 5472802 1653.8 289.6 40 -51 2002 Sultan Cu Zone DDH
02SG-02 481860 5472653 1646.4 300.23 38 -46 2002 Sultan Cu Zone DDH
02SG-03 481942 5472622 1610.6 257 40 -52 2002 Sultan Cu Zone DDH
02SG-04 482038 5472548 1581.9 218.5 37 -50 2002 Sultan Cu Zone DDH

NI 43-101 Resource Estimate Page 162 of 165

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West Mining Kena Project

HOLE-ID EASTING NORTHING ELEVATION LENGTH AZIMUTH DIP Year Company Area **DH Type **
02SL-01 477392 5475436 1562 87.3 60 -50 2002 Sultan Daylight DDH
02SL-02 477363 5475408 1567 116 60 -50 2002 Sultan Daylight DDH
02SL-03 477385 5475381 1565 152.4 60 -50 2002 Sultan Daylight DDH
02SL-04 478388 5474837 1773 122.83 60 -50 2002 Sultan Daylight DDH
02SL-05 478183 5475015 1785 300.23 40 -50 2002 Sultan Daylight DDH
02SL-06 477628 5475270 1555 89.61 40 -50 2002 Sultan Daylight DDH
R02GM-01 479285.4 5475838 1488.4 60 56 -46 2002 Sultan Kena-GM REV CIRC
R02GM-02 479277.8 5475851 1489.4 179 56 -46 2002 Sultan Kena-GM REV CIRC
R02GM-03 479420.6 5475942 1477.8 80.77 56 -46 2002 Sultan Kena-GM REV CIRC
R02GM-04 479429.2 5475929 1475.2 65.33 56 -46 2002 Sultan Kena-GM REV CIRC
03GM-65 478179 5476667 1524.5 111.64 246 -45 2003 Sultan Kena-GM DDH
03GM-66 478179 5476667 1524.5 38.1 246 -65 2003 Sultan Kena-GM DDH
03GM-67 478179 5476667 1524.5 49.68 210 -45 2003 Sultan Kena-GM DDH
03GM-68 478196 5476693 1518.7 38.4 280 -45 2003 Sultan Kena-GM DDH
03GM-69 478196 5476693 1518.7 53.34 315 -45 2003 Sultan Kena-GM DDH
03GM-70 478233 5476535 1555.3 77.11 60 -45 2003 Sultan Kena-GM DDH
03GM-71 479650 5475118 1493.2 63.7 61 -45 2003 Sultan Kena-GM DDH
03GM-72 479738 5475042 1466.7 54.86 60 -45 2003 Sultan Kena-GM DDH
03KG-01 480621 5474803 1491.1 43.6 0 -90 2003 Sultan Kena-GM DDH
03KG-02 480628 5474820 1492.1 33.5 0 -90 2003 Sultan Kena-GM DDH
03KG-03 480658 5474833 1496.6 49.7 0 -90 2003 Sultan Kena-GM DDH
03KG-04 480641 5474775 1495 30.5 0 -90 2003 Sultan Kena-GM DDH
03KG-05 480648 5474806 1495.8 53.3 0 -90 2003 Sultan Kena-GM DDH
03KG-06 480669 5474858 1493.8 34.1 0 -90 2003 Sultan Kena-GM DDH
03KG-07 480693 5474834 1493.9 46.6 0 -90 2003 Sultan Kena-GM DDH
03KG-08 480685 5474762 1503.1 64.3 0 -90 2003 Sultan Kena-GM DDH
03KG-09 480706 5474771 1505.2 54.9 0 -90 2003 Sultan Kena-GM DDH
03KG-10 480714 5474803 1496.8 41.1 60 -58 2003 Sultan Kena-GM DDH
03KG-11 480690 5474831 1495.3 48.8 31 -56 2003 Sultan Kena-GM DDH
03KG-12 480693 5474834 1493.9 44.2 80 -46 2003 Sultan Kena-GM DDH
03KG-13 480731 5474755 1505.9 32 0 -90 2003 Sultan Kena-GM DDH
03KG-14 480744 5474742 1505 23.3 0 -90 2003 Sultan Kena-GM DDH
04GMX-01 479360.2 5475939.7 1480 117.96 123 -45 2004 Sultan Kena-GM DDH
04GMX-02 479439.7 5475788.9 1472.9 230.73 330 -45 2004 Sultan Kena-GM DDH
04KGX-01 480666 5474811 1498.4 121.01 310 -45 2004 Sultan Kena-GM DDH
04KGX-02 480619 5474837 1492.8 143.56 130 -45 2004 Sultan Kena-GM DDH
07GM-01 479382 5475896 1477.3 547.73 220 -70 2007 Sultan Kena-GM DDH

NI 43-101 Resource Estimate Page 163 of 165

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West Mining Kena Project

HOLE-ID EASTING NORTHING ELEVATION LENGTH AZIMUTH DIP Year Company Area **DH Type **
10CK-01 482321 5472863 1597.1 396.24 0 -90 2010 Sultan Cu Zone DDH
10CK-02 482280 5473174 1508 145.69 175 -45 2010 Sultan Cu Zone DDH
10HG-01 478296 5476500 1564 76.2 50 -47.5 2010 Sultan Kena-GM DDH
10HG-02 478296 5476500 1564 91.44 20 -45 2010 Sultan Kena-GM DDH
10HG-03 478296 5476500 1564 85.34 77 -45 2010 Sultan Kena-GM DDH
10HG-04 478296 5476500 1564 122.22 50 -77 2010 Sultan Kena-GM DDH
10HG-05 479174 5475585 1546.5 154.53 60 -73 2010 Sultan Kena-GM DDH
10HG-06 479428 5476020 1479.5 160.98 240 -64 2010 Sultan Kena-GM DDH
10HG-07 479428 5476020 1479.5 154.53 245 -48 2010 Sultan Kena-GM DDH
10SG-05 482002 5472510 1582.6 198.12 40 -50 2010 Sultan Cu Zone DDH
12GM-01 479362 5475918 1479.4 154.23 67.2 -44.6 2012 Altair Kena-GM DDH
12GM-02 479265 5475829 1491.7 263.65 59.4 -49.6 2012 Altair Kena-GM DDH
12GM-03 479362 5475789 1484.8 205.74 60 -50 2012 Altair Kena-GM DDH
12GM-04 479499 5475753 1468.6 175.56 55 -49.9 2012 Altair Kena-GM DDH
12GM-05 479407 5475704 1478 132.89 60 -50 2012 Altair Kena-GM DDH
12GM-06 479457 5475082 1554.9 291.39 60 -50 2012 Altair Kena-GM DDH
12GM-07 479485 5475605 1461.5 148.13 60 -50 2012 Altair Kena-GM DDH
12GM-08 479525 5475474 1474.8 176.17 53.3 -50 2012 Altair Kena-GM DDH
12GM-09 479512 5475365 1497 260.91 60 -50 2012 Altair Kena-GM DDH
12GM-10 479588 5475158 1506.2 284.07 53.5 -50.7 2012 Altair Kena-GM DDH
12GM-11 479615 5474921 1523.5 203 60 -50 2012 Altair Kena-GM DDH
12GM-12 479788 5475014 1451.6 211.84 60 -45 2012 Altair Kena-GM DDH
12GM-13A 479395 5475745 1480 87.48 54.2 -44.8 2012 Altair Kena-GM DDH
12GM-13B 479395 5475745 1480 202.39 53.8 -46.1 2012 Altair Kena-GM DDH
12GM-14 479723 5475680 1438.6 221.28 55.7 -45.3 2012 Altair Kena-GM DDH
12GM-15 479740 5475597 1399.9 103.63 60 -45 2012 Altair Kena-GM DDH
12HGZ-01 479172 5475584 1546.7 100.28 40 -45 2012 Altair Kena-GM DDH
12HGZ-02 479172 5475584 1546.7 104.85 75.7 -43.6 2012 Altair Kena-GM DDH
12HGZ-03 479188 5475507 1554 71.32 90 -45 2012 Altair Kena-GM DDH
12HGZ-04 479188 5475507 1554 77.11 75 -45 2012 Altair Kena-GM DDH
12HGZ-05 479188 5475507 1554 77.72 104.7 -44.6 2012 Altair Kena-GM DDH
12HGZ-06 479029 5475656 1580.4 74.98 84 -45.4 2012 Altair Kena-GM DDH
12KG-01 480649 5474769 1496 206.04 34.7 -55.5 2012 Altair Kena-GM DDH
12KG-02 480687 5474791 1502.6 157.28 32.7 -55.5 2012 Altair Kena-GM DDH
12KG-03 480675 5474825 1497.2 160.32 40.2 -54.4 2012 Altair Kena-GM DDH
12KG-04 480586 5474816 1484 172.52 30.3 -59.6 2012 Altair Kena-GM DDH
12KG-05 480586 5474816 1484 185.01 0 -90 2012 Altair Kena-GM DDH

NI 43-101 Resource Estimate Page 164 of 165

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West Mining Kena Project

HOLE-ID EASTING NORTHING ELEVATION LENGTH AZIMUTH DIP Year Company Area **DH Type **
12KG-06 480666 5474896 1485.6 151.49 40 -50 2012 Altair Kena-GM DDH
12KG-07 480511 5474818 1480.2 172.52 29.7 -50.2 2012 Altair Kena-GM DDH
12KG-08 480511 5474818 1480.2 154.84 0 -90 2012 Altair Kena-GM DDH
12KG-09 480580 5474696 1517.5 309.98 29.7 -64 2012 Altair Kena-GM DDH
12KG-10 480536 5474730 1510.9 290.47 40 -45 2012 Altair Kena-GM DDH
12KG-11 480616 5474670 1518.9 287.43 40 -45 2012 Altair Kena-GM DDH
12KG-12 480629 5474611 1533.1 284.99 40 -45 2012 Altair Kena-GM DDH
12KG-13 481033 5474507 1468.8 174.65 40 -45 2012 Altair Kena-GM DDH
12KG-14 481079 5474246 1482.9 218.24 40 -45 2012 Altair Kena-GM DDH
12KG-15 480403 5474678 1527.3 181.05 40 -45 2012 Altair Kena-GM DDH
12KG-16 480290 5474865 1457.2 256.64 40 -45 2012 Altair Kena-GM DDH
12KG-17 480180 5474899 1435 166.12 40 -45 2012 Altair Kena-GM DDH
12NESP-01 479250 5476464 1472 233.17 54.7 -44.7 2012 Altair Kena-GM DDH
12NESP-02 478874 5477199 1339.7 135.64 90 -45 2012 Altair Kena-GM DDH
DL17001 477587.6561 5475256.875 1552.8 92.05 30 -45 2017 Prize Mining Daylight DDH
DL17002 477587.6561 5475256.875 1552.8 144.78 345 -45 2017 Prize Mining Daylight DDH
DL17003 477331.1627 5475451.071 1565.46 118.26 30 -45 2017 Prize Mining Daylight DDH
DL17004 477331.1627 5475451.071 1565.46 163.69 45 -65 2017 Prize Mining Daylight DDH
DL17005 477546.6896 5476127.336 1454.423 166.73 45 -45 2017 Prize Mining Great EW DDH
DL17006 477546.6896 5476127.336 1454.423 139.6 0 -45 2017 Prize Mining Great EW DDH
DL17007 477651.358 5475966.83 1507 191.41 30 -45 2017 Prize Mining Great EW DDH
DL17008 477559.2362 5475581.002 1500 152.1 26 -45 2017 Prize Mining Daylight DDH
DL17009 477859.1908 5475785.472 1587.6 172.52 29 -45 2017 Prize Mining Great EW DDH
DL17010 477918.206 5475652.667 1616.5 172.53 25 -45 2017 Prize Mining Great EW DDH
DL17011 477926.26 5475962.76 1623 182.27 0 -45 2017 Prize Mining Great EW DDH
DL17012 477965.43 5475078.87 1709.97 172.82 27.4 -43.4 2017 Prize Mining Daylight DDH
DL17013 477965.43 5475078.87 1709.97 154.84 345 -45 2017 Prize Mining Daylight DDH
DL17014 478262.78 5474941.06 1790.3 26.21 40 -45 2017 Prize Mining Daylight DDH
DL17015 478262.78 5474941.06 1790.3 124.05 40 -55 2017 Prize Mining Daylight DDH
DL17016 478262.78 5474941.06 1790.3 187.15 40 -87 2017 Prize Mining Daylight DDH
DL17017 478262.78 5474941.06 1790.3 166.73 10 -45 2017 Prize Mining Daylight DDH
DL17018 478564.15 5474672.8 1785.2 167.03 40 -45 2017 Prize Mining Daylight DDH

NI 43-101 Resource Estimate Page 165 of 165