Tepal project

2017-2018 Exploration use of proceeds

A budget of US$300,000 was used in a multi-disciplined program, including:

  • Database management.
  • 3D Modelling
  • Surface sample audit program
  • Structural mapping.
  • Outcrop and core alteration mapping (XRF and XRD).
  • Susceptibility and physical properties modelling of core.
  • Geochemistry evaluation.
  • Re-logging of select drill holes.
  • Regional structural and alteration studies.
  • Geophysical modelling.

Near term potential to expand the current resource

Results: Mineralization follows newly identified structural controls and feeders whose strike and depth potential remain unexplored. There is potential to add ounces by drilling along strike and dip.

Potential to improve the grade of the current resource

An untested high-grade potential that follows high angle structures, and includes feeder zone potential, may have been underestimated by previous dominantly vertical delineation drill programs. An angled drill program or a bulk sample has potential to show improved overall grade by including more of these observe vertical controls.

Project scale new discovery potential

The recognition of two mineralizing events and a previously unknown high sulphidation exploration potential has led to the recognition of several paths to new discovery that remains untested to date.

Intrusion related mineralization:
    • Relates to lower grades (Au≥ 0.06 – to 1.0 g/t).
    • Gold correlates with (Cu,Mo,Ag)(S)(Fe,Co).
    • The bulk of the Tepal resource relates to this even

Epithermal related mineralization

  • Relates to higher grades (Au > 1.0 g/tto 4.1 g/t).
  • Gold correlates with (Ag,Pb,Sb)(As).This event remains untested and opens up an exciting new exploration potential

The discovery of important exploration indicators in outcrop.

  • Vuggy silica, high temperature clays (pyrophyllite, dickite), possible sinter and native sulphur in outcrop and in core.

An important new exploration model

The 2017-18 exploration program resulted in the discovery of an untested and mineralized epithermal system with a high grade discovery potential based on results to date, this includes the possibility that a preserved high sulphidation mineralization underlies the project area. This has the potential to become a game changer for the project because of its untested high-grade new discovery potential.This will be tested with additional exploration and drilling.

2019 Exploration Plans

  • Alteration and structural mapping
  • Drill permitting and drilling