Grizzly

Grizzly is a gold property that consists of 143 mining claims covering an area of 7,779 hectares located approximately 35 kilometres northwest of the town of Chapais. The area is underlain by rocks of Archean age of the Gilman and La Trève formations. The property contains more than 10 historical gold showings and occurrences associated with EW and NNE trends, with grades varying from 1 g/t to up to 46 g/t. Very limited exploration work, such as basic prospecting, mechanical trenching and shallow drilling, has been done on the property.

On November 14, 2016, the Company announced the results of its fall trenching program on the Kellar Lake showing area. The program was successful, returning encouraging gold grades. A new gold-bearing vein was identified, bringing the total number of gold-bearing structures in the Kellar Lake showing area to three and highlighting a possible new stacked NNE gold-bearing fault system with associated conjugate EW gold-bearing structures. The 2016 work program was designed to extend the historical work and locate new veins. Mechanical stripping was carried out over vein No-1 to expose the maximum length of the vein. A strike length of over 460 metres was stripped and the structure remains open in all directions. The vein varied in width from 0.5 to over 3.6 metres, including the mineralized and silicified contact zone. The vein strikes NNE-SSW and dips to the east at approximately 75 degrees. Channel samples were taken at 5-metre intervals across the mineralized zone, wherever possible. The full width of the zone was not always accessible for channel sampling. The following table is a summary of the best individual or composite assay results from over 139 channel samples totalling 310 individual samples oriented perpendicular to strike:

grizzly_table1

Vein No-1 and its structure were lost both to the north and south due to thick overburden; however, the historical IP survey carried out on lines 800 feet apart did show continuity and other parallel similar anomalies.

Vein No-2 is located 480 metres SW of the end of the trench on Vein No-1, and was discovered during early exploration programs in the area. It strikes NE-SW and was exposed in the past over a length of more than 100 metres. The vein varies in width from 5 to 50 centimetres. According to historical reports from the SIGEOM public database, chip samples taken by Meston Lake Resources in 1980 along strike returned values ranging from 1 to 81 g/t Au. Thick overburden prevented early explorers from following this trend along strike. No work was done on this vein in 2016 due to an early snowfall. However, follow-up exploration will be done on this vein during the next phase of the exploration program.

Vein No-3 is a new gold-bearing E-W vein discovered during the fall trenching program in a small exploration trench located 60 metres east of Vein No-1. The vein was exposed over a length of 15 metres. Late in the program, a small hand-dug trench located another exposure of this vein 60 metres farther east, for a total estimated length of 120 metres. The vein continues to the east; however, thick overburden and an early heavy snowfall ended the work program at that time. More mechanical stripping will be done on this new vein. The following table gives the results of the preliminary channel/chip sampling done on this vein.

grizzly_table2

The discovery of a new gold-bearing vein during preliminary exploration work on the Kellar Lake showing and the consistently significant grades returned so far warranted the commissioning of a detailed IP survey to define the extent of the known veins and find new ones. The next phase will include trenching and diamond drilling.