Gold Shear Property

Location

The Gold Shear Property, that hosts the high-grade David Gold Zone, is road accessible and located 29 km southwest of Cranbrook, British Columbia.

History

PJX optioned the Gold Shear Property that hosts the high-grade David gold occurrence in 2018 and has since acquired 100% of the mineral rights.

According to B.C. Ministry of Energy Mines and Petroleum Minfile data, gold was first discovered in 1990 when an exposure of gold-mineralized quartz veining within a shear zone was chip sampled across 40 centimetres and assayed up to 144 grams per tonne (g/t) gold. The shear zone occurs within quartzites and siltstones of the Middle Aldridge Formation and has been traced along strike for 1600 metres and 150 metres downdip. The shear is also reported to contain anomalous gold values over this entire length.

“Drilling outlined one continuous zone of gold mineralization over a strike length of 150 metres and to a depth of more than 100 metres; thickness averages 2.35 metres. Inferred resources for this zone are 96,000 tonnes grading 13.08 g/t gold (uncut) or 7.11 g/t gold (cut). (Property Development Report by Bapty Research Ltd., 1991).” (quoted from the B.C Ministry of Energy Mines, and Petroleum Resources’ Minfile Record Summary (082FSE108). This gold mineralized zone is called the David Gold Zone.

Bapty Research Ltd.’s resource estimate reported above is a historical estimate and was not prepared using the resource categorizations set out in NI 43-101. PJX management is not aware of any more recent resource estimate for this property and is uncertain as to the relevance or reliability of the historical estimate. PJX is not treating the historical estimate as current mineral resources or reserves, as a qualified person has not done sufficient work to classify the historical estimate.

Exploration Potential

Prior to PJX, the David Gold Zone on the Gold Shear Property was last explored and drilled in 1996. Approximately 70 shallow holes were drilled from 1990 to 1996. The potential of the property is considered to be significant given the strike length of the shear, the shallow depth of historical drilling, the good gold grades and apparent continuity of the David Gold Zone.

Rock grab samples, taken by PJX, support the high-grade characteristic of gold mineralization reported by historical drilling and trenching on the David Gold zone. Seven of 12 grab samples taken at surface from the David Gold Zone trench have returned gold grades over 68 g/t with the highest being 193.9 g/t gold, the latter having 5 grains of visible gold (see David Gold Zone map below).

In 2019, drilling by PJX confirmed the presence of high-grade gold mineralization.

Multiple phases of quartz veining occur within and adjacent to the main David shear in carbonate and sericite altered sediments. The main shear is anomalous in gold, in the 100s of ppb and varies in thickness from 1.2 to 4.5 metres true width.

High-grade gold mineralization, up-to 196.69 g/t (5.74 opt), appears to occur as zone in the main shear and varies from of 0.3 to 1.0 m true width.

PJX Hole GS-19-07 returned one of the best weighted average results for gold of 25.07 g/t gold over 2.1m true width across the David Shear.

Drilling has traced high-grade gold mineralization from surface down the shear for 100 metres.

Hole GS21-28, drilled in 2021 extended the zone an additional 50m on strike to the north with a weighted average intersection of 11.66 g/t over 2.3m (approximate true width) (see table).

Hole GS21-28 intersected 1.34 g/t gold over 5.2 m in a gabbro sill from 5.8 to 11 m, (see Table 2 below). True width is unknown as this is the first intersection of gold with this grade in gabbro on the Gold Shear Property (see table).

Gold appears to occur as fine visible grains, and/or with base metal sulphides (lead, zinc, copper), and/or pyrite, in quartz-carbonate veins with sericite alteration.

PJX’s surface sampling and mapping suggest the David Gold Zone has a shallow plunge to the north along the David Shear.

Three-Dimensional Modelling of historical and PJX drilling in Leapfrog also suggests that the David Gold Zone has an apparent plunge or rake to the north along the David Shear (see longitudinal view).

The David Gold Zone is considered to host Orogenic type gold mineralization. The geochemical signature of the gold zone and locally associated minerals (aquamarine-beryl, K-spar) may also suggest an intrusive source for some gold bearing fluids. This supports the potential for a large system with potential for multiple deposits.

Next Steps

Drilling to date supports the high-grade gold potential of the David Gold Zone on the Gold Shear Property. Drilling intersected high-grade gold mineralization from surface down dip on the David shear for 100 metres. Surface mapping, drilling and 3-dimensional modelling suggest the gold mineralization plunges to the north along the David shear for 150m and possibly more. PJX plans to continue to drill and explore the down-plunge potential of high-grade gold mineralization and also test new gold targets on strike and at depth along the David Shear. Understanding the geological controls and kinematics relating to gold mineralization at the David Gold Zone will benefit exploration for gold and base metals across all of PJX’s properties in the Vulcan Gold Belt.