August 29, 2016

Northwest Zone

The 2016 Phase I program at the Northwest Zone included six lines of GT Probe sub-soil rock sampling (425 samples @ 5 m station spacing) and in-fill soil sampling (159 samples) where the terrain was too steep for the GT Probe to have access.

Four of the six GT probe lines tested approximately 400 m of apparent strike length of the interpreted northeast-southwest trend and straddle the 2010 trenches on either side. A grab rock sample from one of the reclaimed trenches ran 1.492 g/t Au.

Fifteen lines of DC induced polarization/resistivity were also surveyed over a distance of 1,800 m. Interpretation of the geophysical data indicates that there may also be a series of east-west trending, potentially mineralized structures in addition to those previously interpreted trending northeast-southwest.

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The soil geochemistry has shown continuity in the gold anomalies, both along the northeast-southwest and east-west trends.

A program of RAB drilling is also planned for the Northwest Zone, following the drilling campaign to be done at the Eastern Zone in early October.