The Cape Spencer Project is an exploration stage project that has a history of past-production and the potential for near-term resource growth and discovery. The Project comprises 8 mineral claims (224 units) covering more than 5,045 hectares and is located 15 kilometres east of the City of Saint John, New Brunswick. Recent exploration success in southern New Brunswick at Galway Metals Clarence Stream Project continues to support the potential of this region to host gold deposits of significant size. The Clarence Stream Deposit is host to combined open-pit and underground Indicated Mineral Resources of 922,000 ounces of gold (12,396,000 tonnes at 2.31 g/t gold) and Inferred Mineral Resources of 1,334,000 ounces of gold (15,963,000 tonnes at 2.60 g/t gold).

Project Highlights

• 5,045 hectares along 15 kilometres of strike of a regional-scale gold bearing structure - the Millican Lake Fault and associated structures;
• Newly expanded Project is host to large untested gold bearing alteration systems including:
  • 2.5-kilometre alteration and gold bearing Emilio Trend with drill intercepts up to 7.86 g/t gold over 7.4 metres;
  • Marigold Prospect with drill intercepts up to 8.71 g/t gold over 2 metres (core length; true width unknown);
  • Birches Zone with drill intercepts up to 5.23 g/t gold over 4.0 metres (core length; true width unknown);
• The Cape Spencer Deposit has an Inferred Mineral Resource Estimate of 1,720,000 tonnes at an average grade of 2.72 g/t gold for 151,000 contained ounces in two zones:
  • Northeast Zone - Inferred Mineral Resource of 740,000 tonnes at an average grade of 4.07 g/t gold, for 96,000 contained ounces at a cut-off grade of 2.5 g/t gold in a conceptual underground development; and
  • Pit Zone - Inferred Mineral Resource of 990,000 tonnes at an average grade of 1.71 g/t gold, for 54,000 contained ounces at a cut-off grade of 0.5 g/t gold in a conceptual open pit.
• Hosted within similar Proterozoic-aged rocks of the Avalon Zone that host multi-million ounce gold deposits such as Haile, Ridgeway and Hope Brook; and
• Two gold deposits open along strike (Northeast and Pit Zones).