Technical Report on the Gold Strike Project for Pilot Gold, Inc., October 7
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MINE DEVELOPMENT ASSOCIATES MINE ENGINEERING SERVICES Technical Report on the Goldstrike Project, Washington County, Utah, U.S.A. PILOT GOLD INC. Suite 1900, 1055 West Hastings Vancouver, B.C., Canada V6E 2E9 Telephone: 604-632-4677 Report Date: October 7, 2016 Effective Date: April 1, 2016 Michael M. Gustin, C.P.G. Moira T. Smith, Ph.D., P.Geo. 775-856-5700 210 South Rock Blvd. Reno, Nevada 89502 FAX: 775-856-6053 MINE DEVELOPMENT ASSOCIATES MINE ENGINEERING SERVICES TABLE OF CONTENTS 1.0 SUMMARY .................................................................................................................................... 1 1.1 Location and Ownership ...................................................................................................... 1 1.2 Historical Mining and Environmental Liabilities ................................................................ 1 1.3 Geology and Mineralization ................................................................................................. 1 1.4 Exploration by Pilot Gold .................................................................................................... 2 1.5 Drilling and Sampling .......................................................................................................... 2 1.6 Quality Assurance/ Quality Control ..................................................................................... 3 1.7 Mineral Processing and Metallurgical Testing .................................................................... 3 1.8 Conclusions and Recommendations .................................................................................... 3 2.0 INTRODUCTION ........................................................................................................................... 5 2.1 Project Scope and Terms of Reference ................................................................................ 5 2.2 Definitions and frequently used acronyms and abbreviations ............................................. 6 3.0 RELIANCE ON OTHER EXPERTS .............................................................................................. 8 4.0 PROPERTY DESCRIPTION AND LOCATION........................................................................... 9 4.1 Property Location ................................................................................................................. 9 4.2 Land Area ........................................................................................................................... 10 4.2.1 Unpatented Claims ................................................................................................ 10 4.2.2 Patented Mining Claims ........................................................................................ 12 4.2.3 Utah State Leases .................................................................................................. 12 4.3 Agreements and Encumbrances ......................................................................................... 12 4.3.1 Utah State Tax ....................................................................................................... 12 4.3.2 Patented Claims and Utah State Lands Royalties .................................................. 12 4.3.3 Unpatented Claims ................................................................................................ 12 4.4 Environmental Permits and Licenses ................................................................................. 13 4.5 Environmental Liabilities ................................................................................................... 13 5.0 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE, AND PHYSIOGRAPHY ........................................................................................................................ 15 5.1 Access to Property .............................................................................................................. 15 5.2 Climate ............................................................................................................................... 15 5.3 Physiography and Vegetation ............................................................................................ 15 5.4 Local Resources and Infrastructure .................................................................................... 15 775-856-5700 210 South Rock Blvd. Reno, Nevada 89502 FAX: 775-856-6053 Technical Report on the Goldstrike Project Pilot Gold Inc. Page ii 6.0 HISTORY ...................................................................................................................................... 16 6.1 Modern Historical Exploration Campaigns ....................................................................... 16 6.2 Surface Exploration ............................................................................................................ 19 6.2.1 Geophysical Surveys ............................................................................................. 19 6.2.2 Geologic Mapping ................................................................................................. 20 6.2.3 Soil Sampling ........................................................................................................ 20 6.2.4 Drainage-Sediment Geochemistry ......................................................................... 21 6.2.5 Rock-Chip Geochemistry ...................................................................................... 21 6.2.6 Landsat Thematic Mapper study ........................................................................... 21 6.2.7 Field Spectrometer and XRD Study ...................................................................... 21 6.2.8 Petrographic study ................................................................................................. 21 6.3 Historical Mineral Resource and Reserve Estimates ......................................................... 21 6.4 Past Production ................................................................................................................... 22 7.0 GEOLOGIC SETTING AND MINERALIZATION .................................................................... 26 7.1 Regional Geology ............................................................................................................... 26 7.2 Local and Property Geology .............................................................................................. 26 7.2.1 Late Cenozoic Rocks ............................................................................................. 30 7.2.2 Early Cenozoic Rocks ........................................................................................... 31 7.2.3 Mesozoic Rocks ..................................................................................................... 32 7.2.4 Paleozoic rocks ...................................................................................................... 33 7.2.5 Intrusive Rocks ...................................................................................................... 34 7.2.6 Structural Geology ................................................................................................. 34 7.3 Alteration ............................................................................................................................ 36 7.4 Mineralization .................................................................................................................... 37 7.4.1 Location of Mineralization .................................................................................... 37 8.0 DEPOSIT TYPE ............................................................................................................................ 40 9.0 EXPLORATION BY PILOT GOLD ............................................................................................ 42 9.1 Compilation ........................................................................................................................ 42 9.2 Geologic Mapping .............................................................................................................. 42 9.3 Pilot Gold Soil Sampling ................................................................................................... 43 9.4 Rock Sampling ................................................................................................................... 44 9.5 Three-Dimensional Modeling ............................................................................................ 45 9.6 Summary Statement on Surface Exploration by Pilot Gold ............................................... 45 9.7 2015 Drilling ...................................................................................................................... 45 10.0 DRILLING .................................................................................................................................... 50 10.1 Historical Drilling .............................................................................................................. 51 10.2 Pilot Gold Drilling 2015 ..................................................................................................... 52 11.0 SAMPLE PREPARATION, ANALYSES, AND SECURITY ..................................................... 53 11.1 Historical Drilling Programs .............................................................................................. 53 11.2 Historical Surface Sampling .............................................................................................