LOCATED WITHIN: NTS Sheet: 094D004 and 093M094
CENTERED AT APPROXIMATELY: Latitude: 55.99328 Longitude: 127.3284
REPORT PREPARED FOR: P2 Gold, Inc. 9th Floor, 1021 West Hastings Street Vancouver, BC V6E 0C3
REPORT PREPARED BY: NI 43-101 TECHNICAL Amanda Tuck, B.Sc. P.Geo. Consulting Geologist REPORT ON THE 6242 Elizabeth Garden Court SILVER REEF PROPERTY, Victoria, BC V8Z 0E3 OMINECA MINING DIVISION, [email protected]
BRITISH COLUMBIA, CANADA EFFECTIVE DATE: September 20, 2020
NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT on the SILVER REEF PROPERTY
Table of Contents 1. Summary ...... 6 2. Introduction...... 8 3. Reliance on Other Experts ...... 9 4. Property Description and Location ...... 10 4.1. Location ...... 10 4.2. Mineral Titles ...... 10 4.3. General Requirements for Mineral Claims in BC ...... 12 4.4. Property Legal Status ...... 14 4.5. Surface Rights in British Columbia...... 14 4.6. Permitting ...... 14 5. Accessibility, Climate, Local Resources, Infrastructure, and Physiography ...... 16 5.1. Accessibility ...... 16 5.2. Physiography and Climate ...... 18 6. History ...... 19 7. Geological Setting and Mineralization ...... 22 7.1. Regional Geology ...... 22 7.2. Property Geology ...... 25 7.3. Mineralization ...... 27 8. Deposit Types ...... 33 9. Exploration ...... 39 9.1. Silver Reef Property 2018 Exploration ...... 39 9.2. Silver Reef Property 2019 Exploration ...... 39 9.3. Silver Reef Property 2020 Exploration ...... 40 10. Drilling ...... 48 10.1. Historic Drilling ...... 48 10.2. P2 Gold Inc. Drilling ...... 48 11. Sample Preparation, Analyses, and Security ...... 56 11.1. Rock Sampling ...... 56 11.2. Diamond Drilling, Core Sample Preparation and Analyses ...... 56 12. Data Verification ...... 58 12.1. Rock Sampling ...... 58 12.2. 2020 Assaying Quality Assurance and Quality Control (QA-QC) ...... 68 13. Mineral Processing and Metallurgical Testing ...... 73 14. Mineral Resource Estimates ...... 74 15. Mineral Reserve Estimates ...... 75
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16. Mining Methods ...... 76 17. Recovery Methods ...... 77 18. Project Infrastructure ...... 78 19. Market Studies and Contracts ...... 79 20. Environmental Studies, Permitting, and Social or Community Impact ...... 80 21. Capital and Operating Costs ...... 81 22. Economic Analysis ...... 82 23. Adjacent Properties ...... 83 24. Other Relevant Data and Information ...... 86 25. Interpretation and Conclusions ...... 87 26. Recommendations ...... 88 27. References ...... 90 Certificate of Qualified Person ...... 91
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TablesSilverreeftechreport (Silverreeftechreport.DOCX;1) Table 1: Silver Reef Property Mineral Tenures ...... 10 Table 2: BC Work Requirements for Mineral Tenures ...... 12 Table 3: BC Cash-in-Lieu for Mineral Tenures ...... 12 Table 4: Rock Sample Statistics ...... 27 Table 5: 2020 Diamond Drill Program Collar Data ...... 48 Table 6: 2020 Diamond Drill Program Significant Intersections ...... 49 Table 7: Rock Sampling by Parties ...... 58 Table 8: Rock Sampling Statistics ...... 58 Table 9: All Rock Sample Descriptions ...... 59 Table 10: Silver Reef Property 2020 Diamond Drilling QC Samples ...... 68 Table 11: Summary of CRM Samples Used in Silver Reef Diamond Drilling Program ...... 68 Table 12: Recommended Work Budget ...... 88
Table of Figures Figure 1: Silver Reef Project Location Map ...... 10 Figure 2: Silver Reef Property Mineral Tenure Map ...... 13 Figure 3: Silver Reef Property Location and Site Access Map ...... 17 Figure 4: Shedin Peak Snow Pillow Chart ...... 18 Figure 5: Silver Reef Property with Regional Stream / Lake Samples Ag ppb ...... 21 Figure 6: Silver Reef Property with Regional Stream / Lake Samples Ag ppb ...... 23 Figure 7: Silver Reef Regional Geology ...... 24 Figure 8: Geology Legend for Figures 7 and 9 ...... 25 Figure 9: Silver Reef Property Geology Map ...... 26 Figure 10: Photographs of Main Zone ...... 28 Figure 11: Photographs of Northwest Zone ...... 29 Figure 12: Photographs of South Zone ...... 30 Figure 13: Mineralization in Drill Core ...... 31 Figure 14: Silver Reef Regional Total Field Magnetics ...... 32 Figure 15: Map Showing the North American Silver Belt with Historical Production and Resources ...... 36 Figure 16: Map of Mineral Occurrences: Geoscience BC Quest West Project (Map 2010-12-2) ...... 37 Figure 17: Mineral Occurrences: Geoscience BC Quest West Project ...... 38 Figure 18: Silver Reef 2018 – 2019 Rock Sample Location Map ...... 42 Figure 19: Silver Reef 2018 – 2019 Au (g/t) in Rocks ...... 43 Figure 20: Silver Reef 2018 – 2020 Ag (g/t) in Rocks ...... 44
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Figure 21: Silver Reef 2018 – 2020 Pb (ppm) in Rocks ...... 45 Figure 22: Silver Reef 2018 – 2020 Cu (ppm) in Rocks ...... 46 Figure 23: Silver Reef 2018 – 2020 As (ppm) in Rocks ...... 47 Figure 24: Silver Reef 2020 Drill Plan Map ...... 50 Figure 25: Assay and Geological Cross Section SR-001 and SR-066 ...... 51 Figure 26: Assay and Geological Cross Section SR-002 and SR-003 ...... 52 Figure 27: Assay and Geological Cross Section SR-004 and SR-005 ...... 53 Figure 28: Assay and Geological Cross Section SR-007 and SR-008 ...... 54 Figure 29: Assay and Geological Cross Section SR-009 and SR-010 ...... 55 Figure 30: Control Charts for CDN-ME-1802 ...... 69 Figure 31: Control Charts for CDN-ME-1902 ...... 69 Figure 32: Control Charts for Blanks ...... 70 Figure 33: One-to-One Plots of Duplicate Assay Pairs ...... 71 Figure 34: One-to-One Plots of Duplicate Assay Pairs ...... 71 Figure 35: Site Photographs from P2 Gold’s 2020 Diamond Drill Program ...... 72 Figure 36: Minfile Occurrences and Silver Reef Property ...... 85
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NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT on the SILVER REEF PROPERTY
1. Summary P2 Gold Inc. (“P2 Gold” or the “Company”) retained Amanda Tuck to complete an independent National Instrument 43-101 (“NI 43-101”) compliant Technical Report on the geology and exploration of the Silver Reef Property (the “Property”), located within the Omineca Mining Division in Northwestern British Columbia, Canada. The Silver Reef Property is located approximately 85 kilometers north of Hazelton, British Columbia or about 174 kilometers northwest of Smithers, British Columbia. The primary access to the Property is by helicopter which is about 12 to 15 minutes one-way to the closest road, located about 23 kilometers west of the Property, or about 40 minutes one-way directly flying from Smithers or Stewart. The Property covers 23,182.7 hectares (232 km2) and consists of 17 contiguous mineral tenures with an approximate center of 6,200,000m N and 610,000m E (UTM NAD 83, Zone 9). The Company owns, or has option agreements in place to acquire, 100% of the Silver Reef Property. All mineral tenures are in good standing as of the effective date of this Technical Report. The Property contains a newly discovered significant gold-silver intrusive related polymetallic vein system hosted by the Middle Jurassic to mid-Cretaceous Bowser Lake Group. The Bowser Basin is comprised of sedimentary rocks ranging from siltstone, mudstone, and shale (Waldron 2006). The Bowser Lake Group overlie volcanic and clastic rocks of the Early to Middle Jurassic Upper Hazelton Group and locally was covered by the Skeena Group. On the property, the Bowser sediments are intruded to the east by a large Granodiorite Batholith of Late Cretaceous (85-70 Ma) Bulkley plutonic suite (Friedman 2000) which is contemporaneous with deformation consisting of a thin-skinned fold and thrust belt. The qualified person (“QP”) as defined in NI 43-101 and author of this report is Amanda Tuck. The author supervised the 2020 exploration program on the Property and visited the site on July 20, 2020 and August 24, 2020. The main polymetallic vein system on the property (the Main Zone) is hosted in a fault zone traced for a 2,000 metre strike length trending 130o to 140o and dipping 45o to 65o to the SW. In the central portion of the Main Zone (the best exposed portion) the structural zone contains quartz-carbonate veins (up to 20 metres in width) and quartz veins, quartz stockwork and silicification and has a width of up to 100 meters. This is one of the largest widths seen for this style of mineralization in the district. Sampling to date has resulted in highly anomalous values of silver and gold associated with zinc, lead, arsenic, antimony, and copper values. A parallel mineralized structure analogous to that of the Main Zone occurs a further 1.6 kilometers to the north and has been traced for over 650 meters, averaging 80 metres in width and remains open along strike in both directions. The fault structures are accompanied by nearby felsic Bulkley dykes with parallel strikes and lie within the hornfelsed aureole of the Bulkley intrusion supporting an intrusive association. Surface mineralization is strongly oxidized and several ferrocrete zones have developed indicating strong surficial leaching of the primary sulphide mineralization. Samples collected from pits, back pack drill holes, and deeply incised ravines contain pyrite, arsenopyrite with variable amounts of sphalerite, galena, stibnite, and sulphosalts. This surface leaching is suspected to reduce representative surface sample values as samples with higher primary sulphides generally contain higher gold and silver values. The 2020 exploration program completed by the Company included drilling ten HQ-size diamond drill holes totalling 1,315 meters to test the Main Zone and Northwest Zone targets. Several intervals of significant silver-gold-lead-zinc mineralization were intersected within and on the margins of graphitic shears within both zones. Select drill results include:
Hole SR-004 (Main Zone) intersected 1.18 g/t gold, 521.0 g/t silver, 0.71% lead and 2.17% zinc over 0.5 meters within a 1.3 meter interval grading 0.93 g/t gold, 245.25 g/t silver, 0.33% lead and 0.98% zinc; and
Hole SR-010 (Northwest Zone) intersected 0.51 g/t gold, 27.6 g/t silver, 0.97% lead and 1.99% zinc over 0.8 meters within a 6.7 meter interval grading 0.23 g/t gold, 30.71 g/t silver, 0.47%
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lead and 1.04% zinc. The aforementioned intervals represent core lengths, and not true widths. The Silver Reef deposit type appears to fit into a class of meta-sedimentary, polymetallic Ag-Pb-Zn +/- Au veins with characteristics analogous to the Mayo district in Yukon, Coeur d'Alene in Idaho, as well as the historic Silver Standard Mine in British Columbia. These vein systems are quite common in the district, but have generally not been a priority exploration target. These properties have many similar characteristics to the Silver Reef property and commonly have multiple vein systems so additional work is recommended (prospecting, rock sampling) to search for undiscovered vein systems on the property. A 1,000 to 1,200 meter drill program designed to expand on the results generated from P2 Gold’s first phase of drilling and to further evaluate the existing known structures is recommended.
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2. Introduction The issuer engaged the services of the author to write an independent NI 43-101 Technical Report on the Silver Reef Property to summarize the exploration results to date. The author does not have, nor has she previously had, any material interest in P2 Gold or related entities. The conclusions and recommendations in this report reflect the author’s best judgment in light of the information available at the time of writing. The author reserves the right, but will not be obliged, to revise this report and conclusions if additional information becomes known to her subsequent to the date of this report. Use of this report acknowledges acceptance of the foregoing conditions. The independent Qualified Person (“QP”) as defined in NI-43-101 and author of this report is Amanda Tuck. Amanda Tuck in an independent Consulting Geologist with over ten years’ experience working on precious and base metal mineralization / deposits.
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3. Reliance on Other Experts The author of this report has firsthand knowledge about the exploration program conducted in 2020 since she directly supervised the program. For information on the exploration conducted in other periods the author relied on assessment reports prepared by geologists who worked in this area, as well as numerous government publications. A full list of these reports is provided in the References section. The author is not an expert in matters concerning environmental, legal, socio-economic, land title, political, or tax issues. No concerns pertaining to these issues and matters have been identified and no outside opinions have been sought concerning other aspects of this report.
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4. Property Description and Location 4.1. Location The Silver Reef Property is located within the Skeena Mountains in the Sicintine Range approximately 85 kilometers north of Hazelton and 174 kilometers northwest of Smithers (Figure 1 and 2). The property is located on NTS map sheets 093M14 and 094D03. The geographic center of the property is at UTM 6,200,000m N, 610,000m E (UTM NAD 83, Zone 9). Figure 1: Silver Reef Project Location Map
4.2. Mineral Titles The Silver Reef Property consists of 17 adjoining B.C. mineral tenures covering a total area of 23,182.7 hectares within the Omineca Mining Division of northwest British Columbia (Figure 2, Table 1). Table 1: Silver Reef Property Mineral Tenures
Tenure Claim Name Owner Issue Date Expiry Date Area (ha)
1057957 Silver Reef Kasum, Rick Louis 2018/JAN/26 2021/MAR/31 1737.15
1057958 Silver Reef 2 Kasum, Rick Louis 2018/JAN/26 2021/MAR/31 1520.01
1057959 Silver Reef 3 Kasum, Rick Louis 2018/JAN/26 2021/MAR/31 325.72
1059417 Kasum, Rick Louis 2018/MAR/18 2021/MAR/31 199.12
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Tenure Claim Name Owner Issue Date Expiry Date Area (ha)
1059690 Ditto Kasum, Rick Louis 2018/MAR/31 2021/MAR/31 325.30
1059690 Ditto-2 Kasum, Rick Louis 2018/MAR/31 2021/MAR/31 325.30
1076690 Ovsenek, Joseph John 2020/JUN/10 2021/JUN/10 1339.99
1076691 Ovsenek, Joseph John 2020/JUN/10 2021/JUN/10 1337.64
1076702 Ovsenek, Joseph John 2020/JUN/11 2021/JUN/11 1807.03
1076740 Ovsenek, Joseph John 2020/JUN/12 2021/JUN/12 1629.57
1076741 Ovsenek, Joseph John 2020/JUN/12 2021/JUN/12 1813.11
1076742 Ovsenek, Joseph John 2020/JUN/12 2021/JUN/12 1795.64
1076743 Ovsenek, Joseph John 2020/JUN/12 2021/JUN/12 1794.23
1076744 Ovsenek, Joseph John 2020/JUN/12 2021/JUN/12 1810.91
1076745 Ovsenek, Joseph John 2020/JUN/12 2021/JUN/12 1794.36
1076746 Ovsenek, Joseph John 2020/JUN/12 2021/JUN/12 1814.71
1076747 Ovsenek, Joseph John 2020/JUN/12 2021/JUN/12 1812.92
The vendor and registered owner for 6 of the 17 claims is Rick Kasum. On June 10, 2020, P2 Gold Inc. (formerly Central Timmins Exploration Corporation) optioned the tenures from Rick Kasum under the following terms:
Under the terms of the Option Agreement, P2 Gold Inc. can acquire up to a 70% interest in Silver Reef over a 3-year option period by paying to the vendor:
o $50,000.00 and 200,000 shares in its capital on the signing of the option agreement; o $200,000.00 and 200,000 shares in its capital on the first anniversary of the agreement; and
o $500,000.00 and 800,000 shares in its capital on the second anniversary of the agreement. The Company is also required to incur exploration expenditures of $250,000.00 before the first anniversary of the agreement, $750,000.00 of cumulative exploration expenditures by the second anniversary of the agreement and $2 million of cumulative exploration expenditures by the third anniversary of the agreement.
Following exercise of the option, the Company has the right for a period of 120 days to acquire the remaining 30% interest in Silver Reef, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company at its election. If the Company elects to not purchase the remaining 30% interest, the Company and the vendor shall form a joint venture, with the Company appointed the operator. During the first 3-years of the joint venture, the Company will fund the vendors participating interest in the joint venture. If the vendor fails to sell its interest in the joint venture during such 3-year period, the vendor’s interest will convert to a 3% net smelter returns royalty, provided that the Company will have the opportunity to purchase the vendor’s interest prior to such conversion for $7.5 million. Since signing the agreement, P2 Gold has added to their land package by staking an additional 11 mineral tenures that immediately surround the optioned claims. The newly staked claims are 100% owned and held in trust for the company by Joseph Ovsenek.
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4.3. General Requirements for Mineral Claims in BC Upon registration, a mineral claim is deemed to commence as of that date (“Date of Issue”), and is good until the “Expiry Date” (Good to Date) that is one year from the date of registration. To maintain the claim beyond the expiry date, exploration and development work must be performed and registered, or a payment instead of exploration and development may be registered. If the claim is not maintained, it will forfeit at the end of the “expiry date” and it is the responsibility of every recorded holder to maintain their claims; no notice of pending forfeiture is sent to the recorded holder. When exploration and development work or a payment instead of work is registered, you may advance the claim forward to any new date. With a payment, instead of work the minimum requirement is 6-months, and the new date cannot exceed 1-year from the current expiry date; with work, it may be any date up to a maximum of 10-years beyond the current anniversary year. “Anniversary year” means the period of time that you are now in from the last expiry date to the next immediate expiry date. Clients need to register a certain value of work or a "cash-in-lieu of work" payment to their claims in MTO. The following tables outline the costs required to maintain a claim for 1-year: Table 2: BC Work Requirements for Mineral Tenures
Anniversary Years Work Requirements
1 and 2 $5.00 per hectare
3 and 4 $10.00 per hectare
5 and 6 $15.00 per hectare
7 and subsequent $20.00 per hectare
Table 3: BC Cash-in-Lieu for Mineral Tenures
Anniversary Years Work Requirements
1 and 2 $5.00 per hectare
3 and 4 $10.00 per hectare
5 and 6 $15.00 per hectare
7 and subsequent $20.00 per hectare
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Figure 2: Silver Reef Property Mineral Tenure Map
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4.4. Property Legal Status The Mineral Titles Online website (https://www.mtonline.gov.bc.ca/mtov/home.do) confirms that all claims of the Silver Reef property as described in Table 1 were in good standing at the date of this report and that no legal encumbrances were registered with the Mineral Titles Branch against the titles at that date. The author makes no further assertion with regard to the legal status of the property. The property has not been legally surveyed to date and no requirement to do so has existed. There are no other royalties, back-in rights, environmental liabilities, or other known risks to undertake exploration. 4.5. Surface Rights in British Columbia Surface rights are not included with mineral claims in British Columbia. The Silver Reef Property is on crown land with no known surface rights. 4.6. Permitting Any work which disturbs the surface by mechanical means on a mineral claim in British Columbia requires a Notice of Work (NOW) permit under the Mines Act. The owner must receive written approval from a Provincial Mines Inspector prior to undertaking such work. This includes, but is not limited to, the following types of work:
Drilling;
Trenching;
Excavating;
Blasting;
Construction of a camp;
Demolition of a camp;
Induced polarization surveys using exposed electrodes; and
Reclamation. Exploration activities which do not require a NOW permit include: prospecting with hand tools, geological / geochemical surveys, airborne geophysical surveys, ground geophysics without exposed electrodes, hand trenching, and the establishment of grids. These activities and those that require Permits are outlined and governed by the Mines Act of British Columbia. The Chief Inspector of Mines makes the decision if land access will be permitted. Other agencies, principally the Ministry of Forests, Lands and Natural Resources (FLNRO), determine where and how the access may be constructed and used. With the Chief Inspector's authorization, a mineral tenure holder must be issued the appropriate "Special Use Permit" by FLNRO, subject to specified terms and conditions. The Ministry of Energy, Mines and Petroleum Resources makes the decision whether land access is appropriate and FLNRO issue a Special Use Permit. However, a collaborative effort and authorization between ministries, jointly determine the location, design and maintenance provisions of the approved road. Notification must be provided before entering private land for any mining or exploration activity, including non-intrusive forms of mineral exploration such as mapping surface features and collecting rock, water or soil samples. Notification may be hand delivered, mailed, emailed or faxed to the owner shown on the British Columbia Assessment Authority records or the Land Title Office records. Mining activities cannot start sooner than eight days after notice has been served. Notice must include a description or map of where the work will be conducted and a description of what type of work will be done, when it will take place
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NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT on the SILVER REEF PROPERTY and approximately how many people will be on the site. On June 28, 2018, the Ministry of Energy, Mines and Petroleum Resources granted Rick Kasum a 5-year drill permit, MX-1-262. The multi-year area-based permit covers all of mineral tenures 1057957, 1057958, and 1057959. Thirty Heli-supported drill sites and a disturbed area of 0.60 ha have been approved on the 3-claims until March 31, 2023. A $7,000.00 reclamation bond was posted. Exploration is limited from July 16th to October 31st each year, unless a mountain goat management plan is submitted. The permit also has a Free Use Permit included that allows for 50-cubic meters of incidental tree cutting on the property. The MEM has provided the following First Nation contacts so the permit holder can inform them of completed exploration activities in their traditional territories as part of the Babine Laxyip strategic engagement agreement:
Chief Wii Gaak (Dorothy Lattie), An Gil Galanos
Edward Green, Babine Laxyip Facilitator The issuer is currently in the process of applying for a Notice of Work to allow for additional drill sites over the next 5-year term and expand the permitted work area to cover all of the newly staked claims.
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5. Accessibility, Climate, Local Resources, Infrastructure, and Physiography 5.1. Accessibility The Silver Reef Property is located approximately 85 kilometers north of the closest town, Hazelton or about 174 kilometers northwest of the nearest city, Smithers, BC. The primary access to the Property is by helicopter of about 12 to 15 minutes commute time one way to the closest road which is located about 23 kilometers west of the Property (Kuldo FSR) or about 40 minutes one-way directly flying from Smithers or Stewart. Most of the roads are logging roads once turned off from Highway 37 near the Cranberry Junction or from New Hazelton along the Kispiox river. Several other forest road networks are within 25 to 40 kilometers of the property, including the Kitsan logging road southwest of the property. Other roads include the Suskwa FSR network that ends south of the Babine River Corridor Provincial Park and a complex network of roads to the southeast that are part of the Babine FSR complex, but this is a long transit to Granisle and onto Smithers. Hazelton is the nearest town with an area population of 500, with general services including fuel, grocery stores, hardware, and accommodations that can supply exploration services. Approximately 90 kilometers south of Hazelton, Smithers is the largest center in the region with an urban population of 5,500. Smithers is a hub for the mining and forestry industries in northern British Columbia. Mining and exploration personnel and services are readily available including numerous helicopter, drilling, expediting, heavy equipment, pad and camp construction companies as well as the Smithers Branch of the MEM. There are also daily commercial flights to Smithers from Vancouver.
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Figure 3: Silver Reef Property Location and Site Access Map
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5.2. Physiography and Climate The property’s topography is with steep slopes and deep gullies in general. Elevations range from about 900 meters in the valleys to 2,470 meters at the top of Shelagyote Peak. The property’s vegetation is mostly above the tree line covered with local low brushes and shrubs. Small and narrow creeks scatter around the area diverting into the main Sicintine River. Lower levels in valley bottoms have heavy alder, devils club and small spruce forest. The main showing area on the property is a gentle plateau area above the tree line. Relatively cold and moderate to high snowfall winter conditions are from late October to May and temperate summer conditions from June to September (10oC to 25oC). The nearby Shedin Creek automated snow pillow at 1,480 meter elevation shows typical annual snow fall. Figure 4: Shedin Peak Snow Pillow Chart
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6. History The Silver Reef Property has a history of limited mineral exploration dating back to the late 1960s. British Columbia’s Minfile database lists 5-separate occurrences within the Property (Figure 2). The Sicintine Range 1 through 3 showings are shown on Geological Survey of Canada Open File 2322 as molybdenum occurrences located in the Sicintine Range along the central portion of the Silver Reef property claim block. They are documented as porphyry-type occurrences hosted in Late Cretaceous Bulkley Intrusions. The Sicintine Range 4 occurrence is shown on Geological Survey of Canada Open File 2322 as a hydrothermal epigenetic lead-zinc occurrence located within the southern portion of the Property. The first recorded work on the Shel showing situated on the eastern side of the claim block was conducted in 1968 and 1969 (Cook 1968, Wilton 1979). It consisted of geological mapping, soil sampling and prospecting by Cominco; there is sparse record of 6-drill holes that may have been sunk (Mullan and Fountain 1974). The work appears to have been spurred by the presence of Cu and Mo soil and silt anomalies as determined by a broader geochemical survey. In 1974, an IP survey was conducted on the Shel Property for Craigmont Mines Limited, it delineated a number of IP highs which mainly coincided with soil anomalies from the 1969 geochemical program (Mullan and Fountain, 1974). No history of work exists between 1974 and 1978, when Cominco Ltd. conducted another IP survey, mapping, and geochemical sampling (Scott 1978, Wilton 1979). The results of the 1978 program led to a 733.7-meter drill program that included 4-vertical holes in 1979 (Wilton 1979). Hole 79-2 intersected approximately 30 meters of economic (> 0.1% Mo) molybdenum mineralization which spurred further exploration (Wilton 1979). In 1980, a total of 881.9 meters of BQ core was drilled from 4-vertical holes on the property (Wilton 1980). These holes failed to intersect economic grades of molybdenum but did intersect broad zones of low-grade mineralization associated with fractures, quartz veins and brecciated zones in hornfels and quartz-feldspar porphyry intrusions (Wilton, 1980). There is no record of work on the Shel showing between 1980 and 2007. In 2007, the exploration program consisted of limited mapping and geochemical sampling (12 grab samples and a 3-meter section of historical core). All samples were collected from east side of the main hill / ridge area. Geoscience BC released the Quest-West Project Sample Reanalysis and the Northern BC Sample Reanalysis projects in 2011 and 2009 respectively. These programs showed elevated silver and arsenic stream samples in the northwest and central areas of the Property up to 1519 ppb and 83.1 ppm respectively (Figure 4). The main area of interest (the Main Zone) was discovered by helicopter pilot Daryl Adzich while flying over the area in the 1990s. The first recorded work on the Main Zone was conducted in 2018 by Rick Kasum and consisted of prospecting and geological mapping of outcrops and structures. This program successfully outlined a north- northwest striking mineralized structural corridor over 1.5 kilometers. A total of 38 rock samples were collected in the 2018 program with the highest silver grade sample #9 yielding up to 1,892 g/t Ag, 2.01 g/t Au, 4.46% Pb, and 2.7% Zn from a massive sulphide vein sub-crop with pyrite, galena, sphalerite, and sulphosalts found along a weathered creek covered with thick ferrocrete. In the 2019 field season, Rick Kasum and Graeme Evans visited the property with Dr. Craig Gibson, a specialist in Mexican Ag:Au deposits. The general geology and style of mineralization was studied in more detail in the area of the Main Zone. On September 5, 2019, Rick Kasum visited the property with a crew from SSR mining under the guidance of Carl Edmunds. The main mineralized zone was examined, and 8 shallow packsack drill holes were completed (depths 0.6 to 1.2 m’s) and a total of 13 rock samples were collected for analysis. The packsack drilling was an attempt to collect sulphide samples below the surface oxidation but was only partially successful. Results from 2019 confirmed the large persistent mineralized zone in a fault structure with elevated Au and Ag values associated with pathfinder elements. In June of 2020, P2 Gold signed a three-year option agreement with Rick Kasum for the 6-tenures (totalling 4,433 hectares) comprising the Silver Reef property. P2 Gold then continued to secure a larger ground position and staked a further 18,750 hectares immediately surrounding the optioned claims. In July of 2020,
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NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT on the SILVER REEF PROPERTY the author and Paul Baxter visited the property to expand on and verify the findings from 2018 and 2019. A total of 67 rock samples were collected from the Main, Northwest, and South Zone areas. Results included rock grab sample 749602 which contained 918 g/t Ag and 0.32 g/t Au from a 40cm wide brecciated quartz vein with associated galena, sphalerite, and pyrite. The program, which included general geological mapping, prospecting and sampling, was successful in expanding the overall strike length of the Main Zone by over a kilometer for a total length of 2.0 kilometers. The program also resulted in the reinterpretation of the Northwest Zone and confirmed it to be a separate parallel structure as opposed to a continuation of the Main Zone, which remains open along strike in both directions. This was followed up by a Phase 1 diamond drill hole program. Section 9, Exploration and Section 10, Drilling, describes the work completed in greater detail.
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Figure 5: Silver Reef Property with Regional Stream / Lake Samples Ag ppb
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7. Geological Setting and Mineralization 7.1. Regional Geology The Silver Reef Property lies within the Stikine Terrane of northern British Columbia, which forms a broad northwesterly trending belt passing through the west-central part of the province from southern British Columbia into southwestern Yukon Territory (Figure 4). It underlies much of the ‘Intermontane Belt’ of the Canadian Cordillera. The Stikine Terrane is dominated by Lower and Middle Mesozoic oceanic island arc volcanic strata and related Early to Middle Mesozoic intrusions that overlie and intrude a basement of Upper Paleozoic metasedimentary and metavolcanics rocks, also of oceanic parentage, known as the Stikine Assemblage (Colpron et al., 2007). The Silver Reef property is located in the southeast portion of the Bowser basin. The Bowser and Sustut basins occupy an area of more than 60,000 square kilometers in northern British Columbia, Canada. They comprise 3, dominantly sedimentary, stratigraphic successions, in part overlapping in age:
The Bowser Lake Group(uJKBu);
The Skeena Group(lKS); and
The Sustut (uCr) Group. These 3-successions are up to 3,500 meters in thickness and overlie arc volcanic and volcaniclastic strata of Stikinia, of the Hazelton Formation (lJHTca), an allochtonous island arc terrane that accreted to the western margin of North America in the Early Jurassic to early Middle Jurassic. The lower portions of the basin were shallow marine and by Upper Jurassic grade into non-marine sequences as a foredeep assemblage. All 3-basin successions and underlying Stikinia were deformed during development of a thin- skinned fold and thrust belt (the Skeena Fold and Thrust Belt) in Cretaceous and possibly into earliest Tertiary time. Accompanying the folding and thrusting is the intrusion into the basin by numerous calcalkaline Bulkley intrusives (LKBg) during the Cretaceous and later Naninka (50 Ma) high level Tertiary intrusions. Most economic attention in the Bowser basin has been for coal (Groundhog basin), gas and oil, but there are a number of base and precious metals associated with the Bulkley intrusions (70-84Ma). A number of Mo porphyries, such as Mount Thomlinson and Davidson, are present with numerous Cu-Mo porphyries such as Huckleberry, Berg and Whiting Creek. To a lesser degree, a large number of intrusive related polymetallic vein Ag-Au-Pb-Zn +/- As, Sb systems are known and are generally hosted in sediments or Bulkley intrusive dykes. Some of the better known examples of this class include Silver Standard, Duthie, Tommy Jack, and Mot.
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Figure 6: Silver Reef Property with Regional Stream / Lake Samples Ag ppb
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Figure 7: Silver Reef Regional Geology
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Figure 8: Geology Legend for Figures 7 and 9
7.2. Property Geology The Silver Reef property geology was not mapped in any detail in 2018 through 2020 except the local mineralized zones and some flyby’s by helicopter but was aided by good quality BC government colour orthophotos. The Silver Reef property is located to the west of a large Bulkley granodiorite stock cored by the Sicintine range and has another large Bulkley granodiorite stock further to the west which is presently staked by Vale. Mineralization and alteration are hosted within a sequence of Bowser sediments and are within a large hornfelsed aureole of the eastern Bulkley granodiorite stock. This is supported by a regional magnetic high that underlies the hornfelsed and mineralized area indicating the Bulkley intrusives are present below the property at depth (Figure 13). The Bowser Lake Group sediments (uJKBu) consist of black graphitic shales, wackes, grits and minor conglomerates dipping 50o to 65o west to southwest in what is believed to be an upright sequence of fluvial- deltaic origin. The southwest portion of the property is reportedly underlain by Skeena Group sediments (lKS), but was not visited in 2020. These consist generally of clastics, as well, and can be difficult to separate except by fossil dating (Ferri 2005). Folding and faulting are common in the area but the property mainly displays broad warping likely due to the Bulkley stock injection along the eastern side of the property. The Bowser Lake Group on the property displays widespread low grade hornfelsing with limonitic brown coloration and very fine-grained biotite +/- disseminated pyrite development in an aureole extending 2 to 3 kilometers outboard of the Bulkley stock. Within this hornfelsed aureole several 2-50-meter-wide felsic Bulkley dykes were observed generally conformable with the bedding. Dykes were seen within 100 to 200 meters of mineralization with similar strikes suggesting the quartz mineralization may be due to the Bulkley magmatic injection at generally moderate to high levels. This is supported by regional magnetics which indicate a large magnetic high feature over the Bulkley stock to the east indicating the stock continues at depth under the mineralized areas.
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Figure 9: Silver Reef Property Geology Map
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7.3. Mineralization Mineralization seen to date appears preferentially hosted in graphitic shale fault zones, which are hornfelsed and pyritic with clay gouge. Quartz +/- carbonate veining and breccias are hosted in fault structures within the Bowser Lake group sediments, including extremely vuggy quartz veins displaying cockscomb structures, crude quartz banding and commonly contain 10% to 60% disrupted shale fragments. These vein systems are 2-20 meters in width in outcrop but the entire complex maybe as much as 100 meters wide. The known mineralization has been traced for a strike length of 2,000 meters along a northwest trend (130-140/60). Cockscomb vein mineralization at surface is routinely heavily oxidized and adjacent gullies contain widespread massive ferrocrete zones 1 to 2+ meters thick indicating a large amount of sulphides have been leached from the system. Surface rock sampling to date suggests the Au and Ag values improve in the sulphide rich samples, and samples of weathered surface material may not reflect true Au-Ag grades. Pathfinder elements from analyses include Pb, Zn, As, Cu, and Sb. Analytical results from surface sampling for Au, Ag, Pb, Zn, As and Cu are plotted thematically on Figures 18 through 23. Of the 118 rock samples taken from 4 different exploration groups, ranging from grab samples, chip samples and shallow packsack drill holes, this surface sampling has returned the following values (specific sample descriptions in Section 12): Table 4: Rock Sample Statistics
Au Ag Pb Zn As Cu Sb
ppm ppm ppm ppm ppm ppm ppm 118 samples
0.42 72 4316 1930 5579 157 786 Average
0.005 0.05 2 3 9 2 1 Minimum
3.33 1892 225100 64200 49900 3830 10000 Maximum
Drilling in 2020 by P2 Gold tested the Main Zone shear structure over a strike length of 400 metres. Mineralized intervals reported from drilling range from just a few centimeters to several meters and are largely composed of brecciated wall rock (argillite), siderite, vein quartz and minerals including silver sulphosalts, galena, sphalerite, arsenopyrite, and pyrite, as seen in Figure 13. Other minerals commonly observed include pyrrhotite and chalcopyrite. The drill assay results to date indicate that gold has a strong correlation with arsenic, and anomalous silver is associated with both copper and lead. The silver to gold ratio is approximately 100 to 1. Significant results from the drilling program are summarized in Table 6. Representative maps and cross sections are shown in Figure 24 through Figure 29. The Northwest Zone is a parallel mineralized fault structure located 1.6 kilometers northwest of the Main Zone and has been traced over 650 metres with widths from 30 to 120 metres. Similar to that of the Main Zone, it consists of structurally controlled quartz ± carbonate veins containing a pyrite – arsenopyrite – galena – sphalerite ± chalcopyrite sulphide assemblage, with secondary iron oxide and lesser scorodite staining. Sampling in this area in 2020 returned peak values of 2.65 g/t Au, 245 g/t Ag, 3.1% Pb, 1,773 ppm Zn, 10,000 ppm As, 361 ppm Cu, and 10,000 Sb. In the district these veins routinely exist in swarms with 4 to 12 parallel veins at most properties, so an effort to locate additional veins on the property should be followed up. The South Zone is located on a ridge 700 meters to the southeast of the Main Zone and consists of a 1.3-meter wide brecciated quartz vein containing pyrite, arsenopyrite, galena, and sphalerite on the southeast margin of a subvertical NE-SW trending granodiorite dyke. The northwest margin of the dyke also contains 30-60 centimeters of brecciated mineralized quartz veining. Sampling in this area returned values up to 1.13 g/t Au, 392 g/t Ag, 7574 ppm Pb, 3,255 ppm Zn, 10,000 ppm As, 267 ppm Cu, and 7,717 Sb. While not the most sizeable target, it does show that multiple mineralized zones exist on the property and more work is warranted.
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Figure 10: Photographs of Main Zone
Silver Reef Main Zone Looking to Southeast Along Strike
Quartz Vine with Sulphides and Silicified Stockwork Samples
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Figure 11: Photographs of Northwest Zone
Silver Reef Northwest Zone – View Looking Northwest Along Strikes
Ferrocrete Exposed in Drainage Typical Quartz Vein Outcrop and Rubble
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Figure 12: Photographs of South Zone
Silver Reef South Zone – View Looking West; Subvertical E-W Trending Granodiorite Dyke
Mineralized Quartz Vein Breccia Along NW Margin of Felsic Dyke; Sample 749572 – 1.1 g/t Au, 392 ppm Ag
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Figure 13: Mineralization in Drill Core
Vein-Fault Intercept in Drill Hole SR-004 – Main Zone
Vein-Fault Intercept in Drill Hole SR-010 – Northwest Zone
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Figure 14: Silver Reef Regional Total Field Magnetics
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8. Deposit Types The property best fits the BCGS I05 - POLYMETALLIC VEINS Ag-Pb-Zn+/-Au model (Lefebure and Church). The Geological characteristics of these are Sulphide-rich veins containing sphalerite, galena, silver and sulphosalt minerals in a carbonate and quartz gangue. These veins can be subdivided into those hosted by metasediments and another group hosted by volcanic or intrusive rocks.
Metasediment Host. Veins are emplaced along faults and fractures in sedimentary basins dominated by clastic rocks that have been deformed, metamorphosed and intruded by igneous rocks. Veins typically postdate deformation and metamorphism.
Age of Mineralization. Proterozic or younger; mainly Cretaceous to Tertiary in British Columbia. Most commonly the veins are hosted by thick sequences of clastic metasediments or by intermediate to felsic volcanic rocks. In many districts, there are felsic to intermediate intrusive bodies and mafic igneous rocks are less common. Many veins are associated with dikes following the same structures.
Genetic Models. Historically these veins have been considered to result from differentiation of magma with the development of a volatile fluid phase that escaped along faults to form the veins. More recently researchers have preferred to invoke mixing of cooler, upper crustal hydrothermal or meteoric waters with rising fluids that could be metamorphic, groundwater heated by an intrusion or expelled directly from a differentiating magma. A couple of global examples mentioned are the Mayo District in the Yukon Canada and Couer d’Alene District in Idaho, USA. The Mayo District has produced in excess of 200 million ounces of silver from over 5.3 million tons of ore with average grades of 44 ounces of silver per tonne (Alexco Website (www.alexcoresource.com)). The Couer d’Alene District has produced more than 1.2 billion ounces of silver in its history – one of the most prolific silver districts in the world. (Hecla Website (www.hecla-mining.com)). The common characteristics of these locales are their proximity to crustal-scale faults affecting thick sequences of clastic metasedimentary rocks intruded by felsic rocks that may have acted as a heat source driving the hydrothermal system. The property is favorable for intrusive related polymetallic veins with good Ag and Au values associated with Pb, Zn, As and Sb. The property has good potential as the main mineralized structure can be traced 2.0 kilometers in strike length with mineralized widths up to 80 to 100 meters. Individual quartz veins are up to a 20-meter thickness which is far larger than veins reported in the district. These deposits while not well recognized in the Skeena region are quite widespread in the area with work by Geoscience B.C. on the Quest West project identifying 333 polymetallic veins in the district with 46 occurrences having some form of production. These vein systems are commonly associated with Cretaceous Bulkley intrusions which are known to have Cu-Mo porphyries (Huckleberry (Minfile 93E-037), Berg (Minfile 93E-046)) and Mo porphyries (Davidson (93L-110) and Mt. Thomlison (93M-080)).Some of the better known polymetallic vein systems explored and developed in the region include:
Silver Standard Mine (Minfile 93M-049) northeast of Hazelton is hosted within Bowser sediments. The following is an excerpt from Minfile: The Mount Glen area is underlain by a series of sediments, chiefly sandy, argillaceous and tuffaceous, belonging to the Middle Jurassic to Lower Cretaceous Bowser Lake Group. Cutting the sediments are small granitic bodies of the Eocene Babine Intrusions. Folding appears to have two main trends, which may be of different ages. The more conspicuous is a series of northeast trending folds whose axes are often only a hundred metres apart. There is also a broad, open, northwest trending anticline, 9 to 11 kilometres across, with its axis on Mount Glen, 1.6 kilometres northeast of the Silver Standard mine. The domal outline of the sediments on Mount Glen may be due to an intersection of these folds, or to an underlying intrusive. The known intrusive bodies show alignments parallel to the two trends.
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Quartz veins occupy northeast trending faults or fissures. A series of parallel veins, striking northeast and dipping southeast, are numbered from 0 to 12, starting in the northwest. They lie within a zone trending 110 degrees. The distance between the number 0 and 12 veins is approximately 1600 metres. Their dips range from 35 to 80 degrees but are generally 60 to 70 degrees. The vein walls are commonly free, with gouge or ribboned rock on their margins. There has been minor movement before, during and after mineralization; slickensides and offsets of bedding indicate both horizontal and downdip displacements. In the central part of the mine area there is very little offset of the ore shoots by cross faulting, though number 1, 7 and 8 veins are displaced up to 6 metres by an east dipping normal fault. Several cross-veins, dipping northeast, have been found between the number 8 and 12 veins. The productive veins are near the centre of a domed area on the west limb of the anticline and are nearly normal to the attitude of the beds. No major veins have been found on the east limb of the anticline. The veins consist mainly of milky white quartz that is generally massive and fractured, massive white calcite and buff siderite. Vein widths vary from a centimetre to as much as 3.6 metres, but average 0.3 to 0.9 metres wide. Splits in the veins are common. The average width of the ore shoots ranges from 0.3 to 0.6 metres. Sulphide minerals present in the veins in approximate order of abundance are: sphalerite, pyrite, arsenopyrite, galena, pyrrhotite, tetrahedrite and chalcopyrite. A minor amount of a lead bismuth mineral, probably cosalite, occurs in vein 8, and a small particle of pyrargyrite was reported in vein 7; scheelite is present in the number 1 vein. Some jamesonite and freibergite have also been reported in the veins. The sulphides are as a rule, massive and occur in pockets and irregular veinlets which tend to be parallel to the vein walls, and are either near one wall of the vein or where the quartz is fractured. The veins contain many wallrock inclusions, some of which are irregular and angular and others, thin slabs oriented parallel to the vein walls. Generally, the inclusions are within 0.6 metre of the veins and are partly replaced by pyrite and arsenopyrite.From 1913 to 1922 and from 1948-1989 (excluding 1961, 1964, 1966, 1972, 1980, 1986, 1987) a total of 205,056 tonnes were mined from which 237,387,811 grams of silver,464,632 grams of gold, 12,283,325 kilograms of zinc 7,957,686 kilograms of lead, 202,650 kilograms of copper and 146,767 kilograms of cadmium were recovered.
Duthie Mine (Minfile 93L-088) west of Smithers is hosted in Hazelton volcanics west of a Bulkley stock under Hudson Bay Mountain. The following is an excerpt from Minfile: The mineral deposits of the Duthie mine occupy four main fault zones, originally known as the Ashman, Henderson, Fault Plane and Dome. The mineralized fault zones or "vein-lodes" strike northeast and dip between 50 degrees southeast to 70 degrees northwest. They range from a few centimetres to 2.4 metres in width and from 213 to in excess of 1067 metres in length. The vein lodes are sliced, sheared and brecciated and host sulphide veins or infillings with vein quartz and carbonate gangue. The main ore minerals are galena, sphalerite, tetrahedrite, pyrargyrite, pyrite, arsenopyrite, gold, chalcopyrite, silver and freibergite. Ore from the Henderson-Ashman lode also contains pyrrhotite and marcasite. All the ore contains gold and rare visible gold is associated with the arsenopyrite. The ore is associated with minor quartz and carbonate gangue and is crosscut by younger chalcedony veins up to 5 centimetres in width. The Duthie mine was first discovered in 1922 and mining from the ‘front end’ continued until 1930. From 1946 until 1954, the ‘back end’ or Breccia zone was worked by Sil-Van Consolidated Mining and Milling Company. At this time, a 136-tonne-per-day mill was operated with lead and zinc concentrates being shipped to Trail. Over 72200 tonnes of ore was milled during this time. In the mid-1980s, the Duthie property was owned by Consolidated Silver Standard Mines Limited and operated by Duthie Mines Limited. From 1984 through 1988, more than 3-600 metres of horizontal adit development of 3-levels was completed. A mill capable of producing 45 tonnes per day of flotation concentrates was in operation from 1984 until 1986.
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Rocher Deboule Mine (Minfile 93M-071) south of Hazelton is hosted in Bowser sediments. The following is an excerpt from Minfile: The Rocher Deboule and Victoria mines (093M 072) were discovered before World War I. From 1915 to 1954, 123,395 tonnes produced 2,653,086 grams of silver, 157,226 grams of gold, 2,840,966 kilograms of copper, 341 kilograms of lead, 34,692 kilograms of tungsten, and 3,274 kilograms of zinc. Hornfelsic greywackes and siltstones of the Jurassic to Lower Cretaceous Bowser Lake Group are intruded by the Rocher Deboule porphyritic granodiorite stock of the Late Cretaceous Bulkley Plutonic Suite. Dikes are not abundant but consist of fine-grained quartz monzonite, fine-grained diorite and porphyritic andesite. There are five main vein structures which are numbered from 1 to 5, the No. 2 vein being the most important. The veins occur over a 750 metre width, within parallel structures which generally strike 075 degrees and dip 35 to 65 degrees north. The veins are 0.5 to 2.4 metres wide and up to 700 metres long. Three distinct stages of mineralization are apparent. The first stage is pegmatitic and includes hornblende, quartz, feldspar, apatite, magnetite, scheelite, molybdenite and uraninite. The second and main stages include chalcopyrite, glassy quartz, arsenopyrite, cobaltite, safflorite, glaucodot and pyrrhotite. The third stage includes milky quartz, siderite, calcite, tetrahedrite, sphalerite, galena, pyrite and possibly chalcocite. Secondary minerals include malachite, erythrite and limonite. In 1991, the indicated ore reserve of the No. 2 vein was estimated at 37,000 tonnes grading 11.66 grams per tonne gold equivalent; the No. 4 vein has indicated reserves of 17,000 tonnes of the same grade respectively (Open File 1992-1). A radioactive sample over 38 centimetres from the No. 2 vein assayed 0.019 per cent equivalent uranium (Geological Survey of Canada Memoir 223 (Rev.)). A sample taken in 1949, assayed 0.21 per cent equivalent uranium (Geological Survey of Canada Economic Geology 16, 1952). The Number 2 Porphyry zone is a bulk tonnage target estimated to be 757 metres long, 605 metres deep and an average of 12 metres wide. Samples from a trench on the quartz stockwork in this zone assayed up to 30.5 grams per tonne gold and 0.35 per cent cobalt over 2.4 metres (George Cross Newsletter No. 228, November 26, 1990).Total indicated (probable/possible) reserves at Rocher Deboule are 54,000 tonnes grading 2.70 per cent copper, 207.4 grams per tonne silver and 3.5 grams per tonne gold or 11.66 grams per tonne gold equivalent (George Cross Newsletter No. 228, November 26, 1990). During the period of October 2001 and May 2002, geological surveying and geochemical rock and stream sediment sampling was carried out on the Rocher Deboule and Victoria mines. Aside from the expected copper-silver-gold values of economic interest, which returned values up to 14.8 grams per tonne gold, greater than 10 per cent copper and 399.6 grams per tonne silver, the Rocher Deboule Nos. 2, 3 and 4 veins contained variable molybdenite, sphalerite, arsenopyrite and safflorite (Assessment Reports 26984, 29338).
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Figure 15: Map Showing the North American Silver Belt with Historical Production
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Figure 16: Map of Mineral Occurrences: Geoscience BC Quest West Project (Map 2010-12-2)
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Figure 17: Mineral Occurrences: Geoscience BC Quest West Project
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9. Exploration 9.1. Silver Reef Property 2018 Exploration A total of 38 samples were collected in the 2018 sampling program. All samples were reportedly collected into a poly ore sample bag and zip tied by a zap strap and numbered by a sample tag and then were shipped to SGS Canada for multi-elements ICP and fire assays for gold with over limits for most of the elements. Most of the outcrops and sub-crops targeted were weathered and leached out with extensive voids and vugs. From this program, it was noted that most of the high-grade samples were characterized by high sulphide content and a strong correlation to arsenic. Visits to the property include an initial visit on June 13, 2018 by Rick Kasum and Lawrence Tsang, at which time snow cover still obscured most of the outcrop, only 2 rock samples were collected. On July 6, 2018, Graeme Evans, Lawrence Tsang, Rick Kasum, and Daryl Adzich visited the property, which was well exposed and visited a number of areas and collected an additional 27 rock samples which were sent to SGS labs. On September 13, 2018, Rick Kasum, Lawrence Tsang, and Ken Konkin, an independent QP, visited the property. Ken Konkin collected 9 additional representative samples and sent them to SGS. The main area of interest is comprised of about 800 meters N-S by 100 meters wide in size in an area with about 5% to 10% exposure. This area is generally flat along the eastern ridge of the Property above the tree line which allowed easy transverse; outcrops and sub-crops are easy to be traced and sampled. One of the highest silver grades, sample #9 yielded up to 1,892 g/t Ag, 2.01 g/t Au, 4.46% Pb, and 2.7% Zn from a massive sulphide vein sub-crop with pyrite, galena, sphalerite, and sulphosalts along a weathered creek covered with thick ferrocrete. Three more samples (#7, S022282, and S022280) were taken about 5 to 10m south of the sample and yielded up to 3.06 g/t Au and 391 g/t Ag. One of the highest gold grade samples #10 yield up to 3.33 g/t Au and 47 g/t Ag in the most southern mapped area in a weathered quartz vein outcrop with massive pyrite mineralization. Other significant results included a couple of weathered vuggy quartz vein outcrop samples, sample #P4 yielded 2.87 g/t Au and 141g/t Ag and sample #3 yielded 0.63g/t Au and 246 g/t Ag. A NNW-SSW mineralization trend was observed from the mapping and sampling program. Following the NNW trend, a ferrocrete zone was discovered about 1.6 kilometers NNW away from the main area of interest. This area has been called the Northwest zone. A few samples were collected and assayed; sample #14 0.97 g/t Au, 43 g/t Ag and 0.19% Pb and #13 0.22g/t Au and 65g/t Ag. These samples were strongly weathered ferrocrete and veins with remnants of disseminated pyrite and local galena. This NNW trend aligns with the regional stream samples by Geoscience BC of 1372 and 1519 ppb Ag from McConnnell Creek 960 meters away. The system remains open to the northwest and southeast. 9.2. Silver Reef Property 2019 Exploration In the 2019 field season, two prospecting trips at the Property were carried out on July 16th and September 5th. On July 16th, Rick Kasum and Graeme Evans visited the property with Dr. Craig Gibson, a specialist in Mexican Ag:Au deposits. The general geology and style of mineralization was studied in more detail in the main mineralized area. On September 5, 2019, Rick Kasum visited the property with a crew from SSR mining under the guidance of Carl Edmunds. The main mineralized zone was examined, and 8 shallow packsack drill holes were completed (depths 0.6-1.2 m’s) and a total of 13 rock samples were collected for analysis and sent to ALS labs. The packsack drilling was an attempt to collect sulphide samples below the surface oxidation but was only partially successful. Results from 2019 confirmed the large persistent mineralized zone in a fault structure with elevated Au and Ag values associated with pathfinder elements. Examination in more detail in 2019 confirmed the veins have a steeper dip (70o to 80o SW) than the bedding which is 40o to 60o SW and appear to follow a fault zone that forms a recessive zone that can be traced further to the SE. The fault has a similar strike to bedding 130o to 140o. The fault zone is typically in friable contorted graphitic shales and is recessive except for the large resistant quartz vein and silicified bodies. In the central portion of the zone, outcrop varies from 2% to 10% of the surface so mapping is difficult, but tracing outcrop and sub-crop boulder trains indicates there are 2 main quartz / quartz breccia zones, with
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NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT on the SILVER REEF PROPERTY an intervening region of variable quartz stockwork and silicification within fissile graphitic shale. The zones include massive white quartz +/- carbonate and various types of quartz stockwork to quartz breccia to sulphides veins. Some of the breccia consisted of black argillite fragments and clasts within a hydrothermal quartz breccia. Much of the outcrop and float displays a strong limonite boxwork texture indicating surface material has been extensively leached. The sulphides veins, clots and blebs are composed of quartz and carbonate and mineralized with disseminated to massive pyrite, galena, sphalerite, stibnite, arsenopyrite, and local sulphosalts. Multiple veins were mapped in the program and they ranged from 1 to 2 meters to 10 to 20 meters wide. The veins generally have a strike and dip of 130-140/-70, which run almost parallel with some of the younger felsic Bulkley dykes. Often the ferrocrete zone is present in the vicinity of the vein outcrop / sub-crop in the hanging wall portion of the structure which indicate a large amount of primary sulphides were leached and redeposited at surface. The hanging wall of the Main Zone is the best exposed quartz vein system and has been traced in outcrop and sub-crop for a strike length of approximately 500 meters and averages 20 to 50 meters in width. The footwall zone is not as well exposed and can only be loosely traced for 150 meters and appears to have a width of approximately 20 meters. There is an intervening interval of unusually friable clay gouge graphitic shale (reflecting the fault zone?) with variable quartz stock work, quartz veining and silicification. On September 5, 2019, Rick Kasum flew back to the property with a crew of 3 from SSR mining under the supervision of Carl Edmonds. They examined the Main Zone in more detail and completed 8 shallow packsack drill holes to depths of 0.6 to 1.2 meters, and a total of 13 rock samples were collected for analysis. The packsack drilling was completed in an attempt to sample below the oxidized material. Of the 8 holes, 6 (SR-03-08) were partially successful in encountering bedrock. The core was quite rubbly, but did contain quartz vein material mixed with graphitic shale partially silicified with trace to 15% pyrite, trace grey sulphosalts, and occasional acicular arsenopyrite grains. Drill holes tested a small portion of the central zone in an area approximately 30 by 20 meters. Poor recovery and oxidation limit the grades reflected but the 6-holes showed elevated values ranging from 0.11 to 0.42 ppm Au, 56.4-322.0 ppm Ag, 0.12-1.0 % As, 225-4850 ppm Pb, and 182-712 ppm Sb. Two rock samples SR-19RK-01 and 02 sampled 1.5 to 2.0-meter surface outcrop intervals adjacent to drill holes SR-19-04 and 08 and returned values similar to drilling indicating, values are representative. These samples returned values of 0.30 to 0.71 ppm Au, 120.0-147.0 ppm Ag, 0.42-0.68% As, 2180-2310 ppm Pb and 277-345 ppm Sb. While not economic, these values show consistent elevated values over the area and unoxidized material may carry higher values at depth. 9.3. Silver Reef Property 2020 Exploration Upon acquiring the option on the central Silver Reef claims in June 2020, P2 Gold Inc. completed a surface sampling and reconnaissance exploration program. The objective was to investigate the continuation of the Main Zone mineralized fault structure to the north and south and further delineate the Northwest Zone discovered in 2019. Work included the collection of 67 rock grab samples and general geologic mapping by Paul Baxter, an independent QP, peripheral to the Main and Northwest Zones. Field observations suggest that the Main Zone structure trends North to Northwest and dips 45o to 65o to the southwest. Results from surface rock sampling along strike of the Main zone to the north and south returned multiple coincident anomalous Au-Ag values with pathfinder elements. One of the most notable was sample 749602 which yielded 918 ppm Ag, 0.32 ppm Au, 644 ppm Cu, 22.5 % Pb, 6.4 % Zn, and 0.67 % As. Mineralization within the fault was traced an additional 800 meters to the northwest and 300 metres to the southeast where outcrop exposure becomes limited. The mapping suggests, however, the fault structure is still present on the ridge to the south and, if mineralization is present, it may be lower down the slope where it is talus covered. Sampling and prospecting in 2020 confirmed that the Main Zone fault structure extends at least 2.0 kilometers along strike, averaging 100 metres in width, and remains open to the northwest and southeast. The most elevated gold results from the 2020 program were returned from rock grabs taken from the Northwest Zone, a parallel structure lying 1.6 kilometers to the North of the Main Zone. Some of the more significant values returned were from samples 749600 and 749601 which yielded 2.65 ppm Au (and 16.1 ppm Ag) and 1.65 ppm Au (and 108 ppm Ag), respectively. The polymetallic vein type mineralization occurs
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NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT on the SILVER REEF PROPERTY as sulphide veins of variable widths up to 15cms wide containing pyrite and galena within highly deformed/shattered sediments. The Northwest Zone has been traced along strike for over 650 meters and is locally up to 120 meters wide at surface, dipping 50o to 60o to the southwest. The hanging wall and footwall of the zone are bounded by two Northwest to Southeast trending granodiorite dykes. The Northwest zone remains open along strike to the northwest and southeast and more work is warranted to investigate the true size potential of this target. The South Zone is a new discovery located 700 metres to the southeast of the Main Zone. Rock samples taken from mineralized brecciated quartz veins along the margin of a felsic granodiorite dyke yielded values up to 1.13 ppm Au, 392 ppm Ag, 1% As, 267 ppm Cu, 0.7% Pb, and 0.3% Zn.
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Figure 18: Silver Reef 2018 – 2019 Rock Sample Location Map
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Figure 19: Silver Reef 2018 – 2019 Au (g/t) in Rocks
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Figure 20: Silver Reef 2018 – 2020 Ag (g/t) in Rocks
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Figure 21: Silver Reef 2018 – 2020 Pb (ppm) in Rocks
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Figure 22: Silver Reef 2018 – 2020 Cu (ppm) in Rocks
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Figure 23: Silver Reef 2018 – 2020 As (ppm) in Rocks
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10. Drilling 10.1. Historic Drilling There is no known historic drilling on this property except for the shallow packsack drilling by SSR Mining in 2019 (maximum 1.2 m depth). 10.2. P2 Gold Inc. Drilling In July 2020, P2 Gold commenced the company’s first drill program on the Project. A total of 10 surface exploration diamond drillholes with an aggregate length of 1,315m were completed. Project Management for the program was provided by the author. Drilling was conducted under contract by Discovery Diamond Drilling Ltd. based out of Stewart, BC. One Discovery II drill rig was used producing HQ-sized core. The primary objectives were to understand the structural controls on mineralization and test the extent of mineralization at depth and along strike of both the Main Zone and Northwest Zone structures. Eight of the drill holes targeted the Main Zone and the remaining two holes targeted the Northwest Zone. Table 5 lists drillhole location and orientation data. The location of the holes drilled on the Project are shown on Figure 24. Table 5: 2020 Diamond Drill Program Collar Data
Azimuth Hole ID Easting Northing Elevation (m) Dip (Degrees) Length (m) (Degrees) SR-001 60447 6205841 1613 -45 25 200 SR-002 604362 6205896 1631 -50 45 128 SR-003 604362 6205896 1631 -70 45 133 SR-004 604517 6205722 1594 -50 45 176 SR-005 604517 6205722 1594 -80 45 128 SR-006 604430 6205786 1618 -50 45 134 SR-007 604578 6205601 1573 -45 45 131 SR-008 604578 6205601 1573 -60 45 113 SR-009 603599 6207685 1510 -50 45 92 SR-010 603599 6207685 1510 -80 45 80 Total 1,315
Hole SR-001 was designed to test the central portion of the Main Zone and intersected a 20-meter wide near-surface fault zone displaying weak quartz-pyrite-pyrrhotite-arsenopyrite stockwork veining. The hole intersected low grade intervals of silver-gold-lead-zinc mineralization. Holes SR-002 and SR-003 were drilled from pad 2 situated 100 meters to the northwest of pad 1 designed to test the northwest extension of the Main Zone. Both holes encountered multiple intervals of silver-gold-lead-zinc mineralization including a 0.40 meter interval of 0.18 g/t Au, 342 g/t Ag, 0.37% lead, and 1.81% zinc (SR-003). Hole SR-004 was designed to test the strongest exposed surface mineralization at depth and intersected a 10.5 meter wide zone yielding 0.20 g/t gold, 34.49 g/t silver, 0.06 % lead, and 0.85 % zinc which included higher grade intervals of 0.11 g/t gold, 242 g/t silver, 0.06 % lead, and 0.85 % zinc over 0.40 meters and 0.42 g/t gold, 186 g/t silver, 0.20 % lead, and 0.18 % zinc over 0.50 meters. Hole SR-004 intersected additional intervals of anomalous silver-gold-polymetallic mineralization including 1.18 g/t gold, 521.0 g/t silver, 0.71% lead and 2.17% zinc across 0.5 meters within a 1.3 meter interval grading 0.93 g/t gold, 245.25 g/t silver, 0.33% lead and 0.98% zinc. Hole SR-005 intersected similar results albeit slightly lower grade (Table 6). Hole SR-006 was a 50 meter step back from pad 1 designed to be a deeper cut beneath SR-001 and failed to intersect any substantial mineralization. Holes SR-007 and SR-008 were drilled to test the southeast extension of the Main Zone, intersecting low grade gold-silver-lead-zinc mineralization including 0.14 g/t Au, 2.78 g/t Ag,
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0.10% lead, and 0.14% zinc over 1.0 meter. Drilling tested the Main Zone for a strike length of approximately 400 meters. Holes SR-009 and SR-010 were drilled to test for mineralization below the northwest portion of the Northwest Zone. Hole SR-009 intersected a 3.54-meter interval yielding 0.20 g/t gold, 61.47 g/t silver, 0.40% lead and 0.47% zinc. Hole SR-010 intersected 0.23 g/t gold, 30.71 g/t silver, 0.47% lead and 1.04% zinc over 6.7 meters with a higher-grade sub-zone averaging 0.51 g/t gold, 27.6 g/t silver, 0.97% lead and 1.99% zinc over 0.8 meters. Drilling demonstrated that the Main Zone and Northwest Zone structures are well defined with mineralization characteristic of major silver deposits within the silver belt that trends from Idaho through British Columbia into Yukon (Figure 15). Typical of the mines in the North American silver belt, the silver to gold ratio is approximately 100 to 1; gold is showing a strong association with arsenic; and silver is associated with both copper and lead. In light of the regional geology and results to date, the Phase 1 drill program has shown that the Silver Reef Property has excellent potential to host a significant high-grade silver-gold deposit. Significant results from the drilling program are summarized in Table 6. Assay and geological cross sections are shown in Figure 25 through Figure 29. Table 6: 2020 Diamond Drill Program Significant Intersections
Dip / Interval Hole From (m) To (m) Gold (g/t) Silver (g/t) Lead (%) Zinc (%) Azimuth (m) SR-001 -45 / 25 45.49 46.13 0.64 0.18 5.18 0.01 0.05
SR-002 - 50 / 45 56.27 60.96 4.69 0.04 3.22 0.03 0.35
Incl. 60.56 60.96 0.40 0.21 3.03 0.02 1.98
63.30 63.60 0.30 0.79 5.50 0.05 0.02
SR-003 -70 / 45 72.65 73.05 0.40 0.18 342.00 0.37 1.81
SR-004 -50 / 45 31.27 41.82 10.55 0.20 34.49 0.06 0.36
Incl. 34.60 35.00 0.40 0.11 242.00 0.09 0.85
Incl. 41.32 41.82 0.50 0.42 186.00 0.20 0.18
72.30 73.60 1.30 0.93 245.25 0.33 0.98
Incl. 72.30 72.80 0.50 1.18 521.00 0.71 2.17
SR-005 -80 / 45 27.28 27.58 0.30 0.45 7.48 0.02 1.36
37.89 39.26 1.37 0.27 25.70 0.20 1.37
38.76 39.26 0.50 0.56 17.22 0.17 3.15
SR-006 -50 / 45 No Significant Values
SR-007 -45 / 45 No Significant Values
SR-008 -60 / 45 49.40 50.40 1.00 0.14 2.78 0.10 0.14
SR-009 -50 / 45 22.16 25.70 3.54 0.20 61.47 0.40 0.47
Incl. 23.90 24.40 0.50 0.13 168.00 0.39 0.30
64.81 65.81 1.00 0.36 5.51 0.01 0.02
SR-010 -80 / 45 27.00 33.72 6.72 0.23 30.71 0.47 1.04
Incl 31.40 32.20 0.80 0.51 27.60 0.97 1.99
Note: True thickness to be determined.
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Figure 24: Silver Reef 2020 Drill Plan Map
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Figure 25: Assay and Geological Cross Section SR-001 and SR-006
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Figure 26: Assay and Geological Cross Section SR-002 and SR-003
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Figure 27: Assay and Geological Cross Section SR-004 and SR-005
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Figure 28: Assay and Geological Cross Section SR-007 and SR-008
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Figure 29: Assay and Geological Cross Section SR-009 and SR-010
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11. Sample Preparation, Analyses, and Security 11.1. Rock Sampling Rock samples were collected independently by several groups (see Section 12). Sample station locations were recorded using handheld GPS units and sample sites were marked with flagging tape labelled with the sample number using black permanent marker. Rock samples were collected and stored in poly bags with corresponding sample tickets. Samples were then bagged in rice bags and sealed before leaving the property by helicopter. Due to the low number of samples and reconnaissance nature of the project, no external blanks or standards were inserted into the sequence. Samples weighed from 0.44-2.94 Kilograms. In 2018, samples (38 rock samples) were sent to SGS labs for standard aqua regia digestion and ICP-AES 30 element analysis, gold was tested by a standard FAS-AAS 30 gm analysis. Over limits of Ag (>100 ppm), Pb (>10,000ppm) and Zn (10,000 ppm) were further tested by fire assay. SGS labs as standard practice uses blanks, standards and repeats for QA / QC and these fell within acceptable repeatability. In 2019, 13 core and rock samples were collected independently by SSR Mining and were sent to ALS labs for analysis. ALS uses ME-MS 41 ICP package with similar methods to SGS. Ag over limits (>100 ppm) were assayed as well. ALS labs as standard practice uses blanks, standards and repeats for QA/QC and these fell within acceptable repeatability. In 2020, 67 rock samples were collected by Paul Baxter and were sent to MSA Labs' preparation facility in Terrace, B.C., where samples were prepared using method PRP-915. Samples were dried, crushed to 2mm, split 500g and pulverized to 85% passing 75 microns. Prepped samples were sent to MSA Labs' analytical facility in Langley, B.C, where they were analyzed for gold using method FAS-111 (fire assay- AAS finish). Gold assays greater than 100 g/t Au were automatically analyzed using FAS-415 (fire assay with a gravimetric finish). Rock samples were analyzed for 53 elements using method IMS-230, multi- element ICP-MS 4-acid digestion, ultra-trace level. Silver assay results greater than 100 g/t Ag and copper, lead and zinc greater than 10,000ppm were automatically analyzed by ore grade method ICF-6. Field duplicates were completed internally at the laboratory every 20th rock sample by taking a second 250-gram split after crushing. In addition to this, MSA Labs as standard practice uses blanks, standards and repeats for QA / QC. All assay data fell within acceptable repeatability. The author supervised sample preparation during the 2020 field campaign and is not aware of any factors that may have jeopardized sample security. The author has no knowledge of the security measures utilized by companies which conducted exploration on the property in 2018 and 2019. It is assumed that the sampling procedure applied by these companies was according to standard industry practices. The author is satisfied with the adequacy of sample preparation, security and analytical procedures employed during exploration campaigns on the Silver Reef property. The Author is also satisfied that the polymetallic gold, silver and base metal mineralization is present on the property at concentrations that warrant continued exploration. 11.2. Diamond Drilling, Core Sample Preparation and Analyses 11.2.1. 2020 Program All of the core obtained from drilling was placed in wooden boxes by the driller helper along with a small wooden block placed at the end of every 3-meter run to mark the depth of the hole. Once full, boxes were covered with a wooden lid and secured for transportation. Next, the core boxes were slung by helicopter to a staging area north of Hazelton where they were loaded onto a truck and transported to P2 Gold’s rented warehouse in Stewart. Upon delivery to the warehouse the boxes and marker blocks were inspected for errors. Core logging and sampling for the 2020 drilling program was conducted by the author. Data recorded on drill core included recovery and RQD, geological description and sample intervals. All drillholes were described in geological logs; analytical results were tabulated in separate worksheets in Microsoft Excel. Samples were typically taken every 1.0 m, however, would not cross lithological or geological boundaries. Samples can be up to 2
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NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT on the SILVER REEF PROPERTY m long and not shorter than 0.5 m. Drill core was halved by a gas-powered rock saw. Upon completion of the drill program, core was transported to a secure gated storage area near the Bitter Creek bridge outside of Stewart. All of P2 Gold’s samples of drill core are bagged and tagged at the warehouse in Stewart and shipped by P2 Gold personnel to MSA Labs' preparation facility in Terrace, B.C., where samples were prepared using method PRP-915. Samples were dried, crushed to 2mm, split 500g and pulverized to 85% passing 75 microns. Prepped samples were sent to MSA Labs' analytical facility in Langley, B.C, where they were analyzed for gold using method FAS-111 (fire assay-AAS finish). Gold assays greater than 100 g/t Au were automatically analyzed using FAS-415 (fire assay with a gravimetric finish). Rock samples were analyzed for 53 elements using method IMS-230, multi-element ICP-MS 4-acid digestion, ultra-trace level. Silver assay results greater than 100 g/t Ag and copper, lead and zinc greater than 10,000ppm were automatically analyzed by ore grade method ICF-6. MSA Labs as standard practice uses blanks, standards and repeats for QA / QC, confirming to a quality system that meets or exceeds the requirements outlined in the ISO 9001 and ISO/IEC 17025 standards. It is the author’s opinion, the sample preparation, security and analytical procedures for P2 Gold’s 2020 drill program are adequate for future Property evaluation.
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12. Data Verification 12.1. Rock Sampling In 2020, the author managed a prospecting and geochemical sampling program on the Silver Reef Property. The author visited the site on July 30, 2020 and August 24, 2020 to verify field observations made by Paul Baxter. The author has no knowledge of the nature and extent of the quality control measures employed by companies / persons which conducted exploration work in 2018 and 2019. It is expected that these companies used standard industry practices in collecting and processing their samples. The author considers data from the previous exploration campaigns adequate for the purpose of this report. Table 7: Rock Sampling by Parties
Number of Sample Who Sampled Samples 13 Samples SSR Silver Standard Resources, Carl Edmunds (2019)
9 Samples KK Ken Konkin, Independent QP (2018)
29 Samples RK-GE-LT Property Owner and Graeme Evans and Lawrence Tsang (2018)
67 Samples PB Paul Baxter (2020)
While individual samples are not representative of the whole mineralized system, the limited sampling does show consistent elevated values. As an example, an average of all sampling to date shows very anomalous values even considering some wall rock and peripheral sampling dilutes representative values. This is further complicated by surface oxidation and leaching which may reduce true representative values. Table 8: Rock Sampling Statistics
Au Ag Pb Zn As Cu Sb
Ppm ppm ppm ppm ppm ppm ppm 118 samples
0.42 72 4316 1930 5679 157 786 Average
0.005 0.05 2 3 9 2 1 Minimum
3.33 1892 225100 64200 49900 3830 10000 Maximum
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Table 9: All Rock Sample Descriptions The following table includes all rock grab, chip and core values, location and short description with groups who collected the samples:
g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb Rock with semi massive sulphides in 9 604572 6205675 RK,GE,LS Paul #9 2.01 1892 44600 27000 9760 1050 4210 ferrocrete zone Sub-crop? 45- 50% qtz stwk very vuggy leached with S022282 604572 6205674 KK grab 10-15% semi- massive PY, several bk 3.06 391 880 15200 10000 3830 2070 clots of oxed, 1-2% diss fg ASPY Stwk zone not previously sampled, dug it out of ground, 10-15% white- S022280 604572 6205673 KK grab 2.29 395 3910 156 10000 157.5 1805 pale grey sucrosic to drusy qtz, tr- 1% diss Over 10m quartz vein exposure rep P4 604489 6205844 RK,GE,LS #4 018552 2.87 141 329 38 49900 123 5280 sample 6 604519 6205833 RK,GE,LS Paul #6 Footwall QV rep sample 0.521 297 666 233 11800 43.5 412
10 604640 6205562 RK,GE,LS Paul #10 Massive py outcrop in ferrocrete zone 3.33 47 873 120 49800 106 526
3 604450 6205902 RK,GE,LS Paul #3 Quartz vein and stockwork 0.634 246 4190 102 9540 45.5 321
7 604571 6205673 RK,GE,LS Paul #7 Rep of altered rock in ferrocrete zone 1.17 96 4860 16700 17700 763 1280
A6 604190 6206175 RK,GE,LS RK 6 Vein 2 extension 0.579 180 >10000 2580 4060 70 8790 Semi-massive PY interstitial to diss S022283 604190 6206174 KK grab 1.665 39.6 2330 107 10000 102 1005 fg-mg Very rubbly exposure of 20-25% qtz stwk, resistant part of ridgeline, tr fg S022281 604190 6206173 KK 7.81m 1.65 39.9 1230 83 10000 49.4 492 diss PY, 1-2% diss fg ASPY, fg tr diss acanthite 14 603610 6207690 RK,GE,LS Paul #14 Quartz float 0.971 43 1890 202 595 71.4 10
P3 604415 6205955 RK,GE,LS #3 018770 Qtz vein pyritic rubble rep sample 0.424 70 987 51 7760 16.2 607 Quartz vein with old sample tag in P5 604539 6205722 RK,GE,LS #5 018551 0.881 20 828 17 10200 9.2 241 1999 13 603604 6207710 RK,GE,LS Paul #13 Quartz float 0.225 65 1640 557 431 70.9 15
A2 604178 6206180 RK,GE,LS Paul #3 Quartz vein and stockwork 0.26 27 2310 6290 5840 93.9 784
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g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb Fault gouge, bk arillitic graphitic S022279 604178 6206179 KK grab 0.304 54.9 183 525 10000 79.1 2850 siltstone, qtz drusy barren vlts Py/gal mineralized quartz vein with 2 604426 6205920 RK,GE,LS Paul #2 0.607 24 66 6 4360 3.8 180 arsenic Intense scoridite stain, 20-23% white S022278 604426 6205919 KK 1.17m 0.341 28.1 422 446 10000 32.9 1315 qtz stwk, tr mg diss float 604468 6205687 RK,GE,LS RK 9 Float Quartz float 0.177 24 2130 749 3000 37 1000 Paul #1 20 LT1 604175 6206185 RK,GE,LS Quartz float 0.141 34 29 12 1650 9.2 68 m up 5 604502 6205829 RK,GE,LS Paul #5 Quartz float 0.419 7 657 100 364 4.9 <5
12 603606 6207704 RK,GE,LS Paul #12 Quartz float 0.236 14 612 296 892 122 39
P1 604363 6205998 RK,GE,LS #1 018552 Quartz vein with py 0.196 13 424 771 18000 11.4 347
A7 604199 6206176 RK,GE,LS RK 7 Massive py/gal breccia 0.094 26 209 23 2470 6.2 113 Py/gal mineralized quartz vein with A1 604173 6206183 RK,GE,LS Paul #2 0.19 17 58 48 7340 11.2 168 arsenic A8 604197 6206175 RK,GE,LS RK 8 Massive py/gal breccia 0.153 16 72 222 7600 11 84
A3 604183 6206182 RK,GE,LS Paul #4 10m main quartz vein exposure 0.221 9 148 124 5000 9.6 152 White drusy qtz vlts in bk tr fg diss S022277 604184 6206175 KK grab PY, P1hem/lim, F1 lim/hem, mod 0.05 11.8 1445 30 785 12.5 441 scoridite 1 604310 6206004 RK,GE,LS Paul #1 Quartz vein with py 0.133 6 416 4 5170 156 North End bench across from talus 11 603970 6206447 RK,GE,LS Paul #11 0.027 8 45 30 2120 23.2 8170 slope 8 604572 6205674 RK,GE,LS Paul #8 Clay and sulphides in ferrocrete zone 0.039 3 50 650 473 71 13
A5 604193 6206176 RK,GE,LS RK 1 Quartz vein with py 0.051 3 375 17 2430 9.1 117
P2 604395 6205974 RK,GE,LS #2 018600 Rep of pyritic quartz vein rubble 0.076 1 42 77 3400 9.8 1400 Quartz vein with shear zone gouge of 4 604470 6205878 RK,GE,LS Paul #4 0.036 4 26 3 892 5.7 29 bowser sediments RK 10 float 2 604535 6205622 RK,GE,LS Quartz float 0.014 1 18 75 24 43.9 12 Float Quartz vein with old sample tag in A4 604182 6206179 RK,GE,LS Paul #5 0.012 1 12 13 57 24.6 41 1999 Across bedding, thinly bedded S022276 604186 6206178 KK 2.10m 0.005 0.29 8.9 48 29.8 48 81.6 argillitic black mod graphitic siltsotne
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g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb 0.65m No bedrock intersected. Rare cobbles SR19-01 604487 6205882 SSR 0.088 13 80.2 8 885 5 37.1 Drill Hole of siltstone with 20-30% qtz veining. 0.6m No bedrock; majority of drill hole is SR19-02 604488 6205884 SSR 0.045 11.05 9.1 13 312 1.8 47.2 Drill Hole rubble so was abandoned. Py is disseminated within qtz vn and 0.6m Drill SR19-03 604488 6205887 SSR not in wallrock. Py comprises 1-3% of 0.302 322 225 158 7530 58.8 343 Hole vein of drill hole Top 20 cm of ddh comprised of 100% 1.2m Drill SR19-04 604473 6205877 SSR qtz with trace to 0.25% fine grained 0.251 91.9 923 19 2200 90.1 334 Hole pyrite. Trace arsenopyrite 1m Drill black argillite - 5 cm thick qtz veins. SR19-05 604479 6205868 SSR 0.114 57.3 355 236 1290 54.2 182.5 Hole 80-90% qtz vn with fn grned py Qtz flooded zone with angular to 0.8m subang. Rounded argillite fragments SR19-06 604480 6205862 SSR 0.421 81.1 252 924 10000 182 241 Drill Hole 0.25-1.0 cm in size occurs 1-3% diss py. Qtz dominated with minor argillite. 1.3m Drill SR19-07 604482 6205846 SSR Qtz vein forms a stockwork. Qtz 0.297 56.4 579 32 7280 61.6 153.5 Hole contains 10-15% pyrite Qtz flooding within med grey siltstone. 1.1m Drill SR19-08 604485 6205839 SSR 40- 50% of the rock with 5-7% pyrite 0.234 56.8 4850 45 5660 61.6 712 Hole with rare grey sx 1.5 m continuous chip SR19-RK- 604474 6205877 SSR 1.5m collected to compare against DDH 0.712 147 2310 36 6820 13.9 345 01 SR19-04. Argillite with 50-100% qtz Chip sample over 2 m, starting at SR19-RK- 604486 6205840 SSR 2.0m collar of SR19-08, strong qtz stock 0.296 120 2180 20 4290 15.2 277 02 working zone with 1-3% diss pyrite E19-01 604177 6206163 SSR 0.628 25.2 56.4 60 10000 21.8 267
E19-03 604211 6206164 SSR 0.122 37.7 4870 2110 2340 72.5 1570
E19-04 604565 6205894 SSR 0.001 0.61 34.9 72 28.5 3.2 4.97 8-10cm wide qtz vein with mudstone fragments. Vuggy from weathered 749551 604029 6206386 PB 749551 sulfides, 5% remnant py, 0.44 6 177.6 68 7662.5 10.8 147.7 jarosite/scorodite stained, orientation 145-325, 60 SW Gossan with manganese wad, fine 749552 604035 6206382 PB 749552 qtz stockwork, 2-3% relict py, 10cm 0.1 8 318.9 56800 4954.3 49.6 25.7 wide
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g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb Qtz vein and qtz stockwork hosted in more competent seds. Zone is approx 749553 604026 6206394 PB 749553 0.05 1 139.7 368 5819.6 9.8 100.9 75cm wide, 5% py local aspy, trace sp-gn. Orentation of veining, 135/64 Qtz vein and qtz stockwork hosted in more competent seds. Zone is approx 749554 604026 6206388 PB 749554 0.18 2 180.9 339 10000 9 819.6 75cm wide, 5% py local aspy, trace sp-gn. Orentation of veining, 135/65 Qtz vein and qtz stockwork hosted in more competent seds. Zone is approx 749555 604036 6206400 PB 749555 0.22 3 111.2 199 10000 31.7 800.6 75cm wide, 5% py local aspy, trace sp-gn. Orentation of veining, 135/66 qtz stockwork, qtz veining grabs, 749556 603992 6206413 PB 749556 scorodite stained, 2-5% diss py, trace 0.33 68 18600 2341 6332.1 118 4661 diss gn 30cm wide qtz stockwork within mudstone, mudstone strongly deformed around sample, sample is siliceous and more massive, pinch 749557 603990 6206407 PB 749557 and swell within mudstone, 0.89 67 285.6 36 10000 25.1 522.1 jarosite/scorodite stained, no sulfides. Samples 557 - 559 from same outcrop, poor gps coverage in this area. 10-12m SE of sample 557, 15cm qtz 749558 604000 6206396 PB 749558 veining with mudstone fragments, 0.34 81 195.6 87 8046.1 51.5 438 <1% py within veins, FeOx stained 45-50cm wide siliceous mudstone, strongly shattered, fine qtz veinlts, 749559 604000 6206390 PB 749559 0.09 23 24 103 7167 36.3 >10000 siliceous vuggy veinlts, FeOx stained, weak scorodite stain, <1% py Rusty seds, oxidized weathered 749560 603956 6206376 PB 749560 0.01 0 4 67 33.6 15.5 45.3 surface, no vis sulfides black shattered mudstone healed by intense silica stockwork, no visible 749561 603940 6206524 PB 749561 sulfides but FeOx stained fracture 0.02 9 43.3 35 2244.3 9.4 839.8 surfaces. 1m width of representative grabs 1m of grab samples in immediate 749562 603940 6206524 PB 749562 0.8 231 457.9 18 10000 19.5 724.1 footwall of sample 561
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g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb 50cm representative grab of shattered and fine silica healed mudstone, jarosite stained, trace 749563 603958 6206522 PB 749563 0.1 32 5662.8 202 3848.3 26.8 367.4 remnant py, highly oxidized. Orientation 120-130 strike, 60-70 dip southwest 30cm width. Shattered healed by fine qtz veinlets, some vuggy qtz, str to 749564 603968 6206528 PB 749564 0.54 303 83100 2585 10000 316.1 1440.3 intense jarosite staine, trace relict galena. 30cm qtz vein with 1-3% total 749565 603972 6206517 PB 749565 0.08 13 3514.4 7307 8186.6 109 198.6 sulfides, gn-sp, lessor py 749566 605179 6204668 PB 749566 Rusty seds with 3-5% diss py 0.01 0 30.8 79 20.1 44.3 3
749567 605312 6204665 PB 749567 mudstone with 3-5% diss po 0.01 0 17 119 9 47.6 3.5 rusty black mudstone, FeOx stained, 749568 604873 6205196 PB 749568 highly fractured and brecciated, no vis 0.01 0 18.9 107 20.4 59.9 1.5 sulfides but get sulfur smell o/c of shattered limonitic mudstone, 749569 604849 6205160 PB 749569 strongly fractured, no sulfides, trace 0.01 1 11.6 86 105.7 45.3 1.9 fine qtz veinlets subcrop of shattered black mudstone 749570 604833 6205153 PB 749570 with mod qtz-carb veinlet network, str 0.01 0 10.5 118 11 64.8 1.4 limonite stain, no sulfides black fine grained mudstone, shattered, str limonite, minor very fine 749571 604811 6205136 PB 749571 0.01 0 8.8 95 23.8 101.1 1.2 qtz/carb veinlet/fracture cement, no sulfides 30-40cm wide qtz vein and qtz stockwork, vuggy qtz, limonite staind, weak jarosite staine, strongly leached, no relict sulfides, ribbon 749572 604963 6205245 PB 749572 1.1 392 7574.1 106 10000 75.2 2.2 textured along margin, cross cuts stratigraphy. Orientation strike 230, dip 80-85 NW. NW margin of subvertial felsic dyke qtz vein, grey and white silica, <1% 749573 604914 6205218 PB 749573 very fine diss aspy, trace py, width 0.65 5 40.4 45 10000 30.5 413.9 5cm orientation 10-190/80 west along strike from 572, up to 10cm wide veining, orientation 355/65 749574 604914 6205218 PB 749574 West. Samples 573 and 574 are at 0.35 17 29.3 29 9923.6 34.7 313.3 the southwesterly termination of a cross cutting felsic dyke
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g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb
749575 604708 6205471 PB 749575 10cm wide qtz-py vein, 5-7% py 0.11 2 8.7 30 1315 29.8 171.1 20cm thick str lim stained shattered 749576 604706 6205470 PB 749576 0.08 1 8.6 49 592.9 68 8.2 seds with blebby/patchy qtz-py boulder beside creek of shattered 749577 604696 6205468 PB 749577 0.34 1 19.3 41 10000 38.6 4.3 mudstone with qtz-py veinlets. 25cm wide qtz-py veining, large clots 749578 604685 6205482 PB 749578 of massive py. Similar appearance as 0.22 7 117.3 256 4535.8 687.4 29.4 qtz-py veining seen in hole SR-04 15m wide rusty recessive area with sporadic qtz and qtz stockwork float. Sample 579 are grabs of sugary and 749579 603692 6206710 PB 749579 0.03 4 188.3 236 4869.8 36.6 20.6 vuggy qtz vein with 1% py and siliceous mudstone with qtz stockwork float of qtz-calc stockwork within 749580 603726 6206691 PB 749580 siliceous seds, vuggy veining, no 0.02 2 5.3 9 2384.3 13.5 411.4 sulfides 12-13cm wide qtz-aspy vein, 749581 603720 6206666 PB 749581 0.04 10 57.7 11 9303.1 22.6 100.9 orientation 125/60 SW 40-50 cm qtz vein breccia with vuggy qtz veining, weak limonite, no 749582 603735 6206632 PB 749582 0.16 17 12.5 192 2574.3 11.1 >10000 sulfides, orientation 100-280 approx E-W 10cm qtz-aspy vein that is 1m into the 749583 603735 6206632 PB 749583 0.06 8 44.5 19 1107.5 27.6 2541.1 HW of sample 582. 30-40 cm wide dip slope qtz vein, qtz bx, vuggy qtz, 15m long exposure, 749584 603760 6206593 PB 749584 0.82 8 39.5 16 7230.7 13.1 >10000 Orientation 170, 50 West, N-S vein dipping 50 west 80cm wide subcrop of qtz vein and 749585 603770 6206569 PB 749585 qtz stockwork, locally vuggy, patchy 0.07 18 175.3 20 4348.9 62.6 756.9 clots of sp. float/subcrop, <20cm wide qtz veining 749586 603766 6206554 PB 749586 0 0 1.6 23 77.7 8 >10000 and qtz stockwork Creek exposure SE from drill area. 749587 604697 6205475 PB 749587 10cm wide qtz-massive py veining, no 0.15 2 27.8 23 3299 47.3 105.8 orientation available grab sample of mudstone with weak- 749588 604684 6205498 PB 749588 mod qtz-py stockwork, stockwork 0.16 2 36.7 73 1467 177.4 87.2 veinlets <5mm 10-12cm wide Qtz-massive py 749589 604667 6205520 PB 749589 0.44 3 20.4 75 1904.7 1185.6 15.1 veining/stockwork within seds
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g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb 60cm wide siliceous boudin within graphitic mudstone/fault zone. Boudin 749590 604663 6205523 PB 749590 0.04 0 3.7 80 147.7 69.8 35.3 is siliceous seds with qtz veining, <1% py-po 30cm wide sample of qtz stockwork in 749591 604973 6205251 PB 749591 seds, sample is 20cm away from NW 0.14 117 43.7 14 392.6 25.4 6.2 margin of dyke contact 50-60 cm wide qtz vein on NW 749592 604973 6205254 PB 749592 margin of dyke. <5% py, possible 0.77 79 6889 225 10000 39.5 5.6 aspy rich lamination 1.3m wide zone of qtz vein and qtz stockwork with <10% py+/- sp-gn- 749593 604995 6205254 PB 749593 0.59 56 2161.9 3255 10000 267.4 49.8 aspy. Vein is on the SE margin of subvertical dyke ser alt dyke, limonite stained, minor 749594 604183 6207330 PB 749594 0.02 11 3180.9 1773 71.5 121.9 164 vuggy fine qtz veinlets, no sulfides fault with 1-2mm planar qtz veinlets, 749595 604216 6207332 PB 749595 <1% diss py. beside outcrop of ser alt 0.01 1 127.6 173 79.5 6 122.7 dyke. deformed seds with Fe Carb veinlets, outcrop located between 2 outcrops 749596 604206 6207388 PB 749596 0 2 19.1 35 50.8 4.3 4.9 of dyke = fault zone running through saddle deformed folded limonitic seds just below flat contact with ser alt dyke. 749597 604129 6207401 PB 749597 0.08 5 77.1 705 199.4 54.5 1.4 Stringery qtz-calc veinlets, trace veinlet py siliceous shattered seds, fine qtz veinlts. Within fault zone. Analagous 749598 604094 6207451 PB 749598 0.01 1 31 71 45.5 40.1 2.1 to fault zone and shattered rocks of main zone drilling. rusty stained subcrop of ser alt fel 749599 604035 6207475 PB 749599 dyke, siliceous, wormy qtz veining, 0.03 2 31.9 1226 118.8 69.6 2.1 trace py resistant outcrop of shattered siliceous seds healed by weak to 749600 603938 6207583 PB 749600 2.65 16 1976.8 136 10000 25.3 1.2 local intense fine qtz network. Local very strong limonite, trace relict py. 2m wide resistant rib of shattered seds, strongly limonitic with local relict py and gn. Same area has ferrocrete 749601 603887 6207595 PB 749601 1.65 108 30600 1042 8608 361 0.9 accummulation. Rock shattered with fine silica network. Outcrop trending 130
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g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb sample is 2m underneath sample 749602 603996 6206412 PB 749602 556. sample of 40cm wide qtz vein 0.32 918 225100 64200 6741.8 643.8 52 with 20% gn-sp, 5% py adjacent to sample 602. 40cm wide 749603 603996 6206412 PB 749603 siliceous seds with qtz stockwork, 0.18 13 293.7 68 6618.5 14.4 42.9 trace py. 20cm grab sample of a 1.8m wide qtz vein, qtz vein bx along NW margin of dyke. Jarosite/scorodite stained, 1% diss aspy-py poss stib, veining is en 749604 605007 6205308 PB 749604 1.13 75 5398.4 1451 10000 107.5 7716.9 echelon, pinches and swells along dyke contact. Vein trend 030 dip 80 NW. Due to cliff unable to measure max width but is at least 1.8m wide grab sample of qtz vein, qtz vein bx 749605 605009 6205303 PB 749605 1.05 80 332.3 185 10000 26.1 342 adjacent to dyke, <1% py-aspy 1.3 x 1.0m siliceous knob of sil seds 749606 603703 6207729 PB 749606 with vuggy qtz stockwork within fault 0.33 39 3741.6 125 327.2 22.8 595.1 zone, limonitic, no vis sulfides 3m wide zone of intense shattering, silicification and vuggy qtz veining, 749607 603694 6207730 PB 749607 0.8 245 4645.4 202 367.7 21.6 192 limonitic, trace relict py. Possible orientation of 130-310, 25 dip to SW brecciated seds with 20cm interval of 749608 603725 6207733 PB 749608 0.41 54 1875.4 403 261.8 26.7 10.1 qtz stockwork graphitic gougy shattered seds 749609 603706 6207785 PB 749609 healed by limonitic fine qtz-calc 0.18 8 126.9 144 373 9.7 4.4 stockwork qtz subcrop, approx 20cm white 749610 603524 6206724 PB 749610 massive qtz, minor vuggy qtz, trace 0.02 1 5.3 11 4072.2 10.9 197.3 py, possible aspy talus of qtz vein bx, massive qtz, ribbon banding along margin, minor 749611 603525 6206715 PB 749611 0.02 1 5.1 10 2018.1 7.2 127.9 vuggy qtz, weakly limonitic, <1% sulfides, poss py-aspy 40cm wide Fe and Possible As stained Qtz vein, qtz bx, 80% white, 749612 603556 6206635 PB 749612 0.27 7 603.4 431 10000 10.5 2586.6 20% grey qtz, <1% fine diss py-aspy, E-W trending dipping 80 south 20cm wide qtz vein float, 7-8m from 749613 603550 6206633 PB 749613 sample 612. qtz vein bx with clots of 0.05 14 294.1 610 5221.8 16.7 10000 massive stibnite, <1% diss py-aspy.
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g/t g/t ppm ppm ppm ppm ppm UTM UTM Collected Station ID Lab ID Description Easting Northing By Au Ag Pb Zn As Cu Sb 15-20cm wide subcrop, vuggy limonitic qtz stockwork within dark 749614 603481 6206596 PB 749614 0.04 4 51.6 90 8115.7 10.2 701.2 grey fine grained mudstone, no visible sulfides 10-15cm wide qtz subcrop, massive 749615 603468 6206727 PB 749615 white bull qtz, weak limonite on 0 0 1.9 12 41.9 3.1 19.6 fractures 20cm wide vuggy qtz vein with 1-2% 749616 603472 6206710 PB 749616 0.01 5 276.3 1267 1939.4 24.9 361.6 total sulfides, diss py-aspy 2-3m wide zone of shattered mudstone healed by mod qtz-calc 749617 603369 6206894 PB 749617 0.01 4 110.8 44 994.8 14.4 264.2 stockwork veining. sample located juast above FW contact.
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12.2. 2020 Assaying Quality Assurance and Quality Control (QA-QC) P2 Gold implemented and monitored a thorough quality assurance/quality control program (“QA / QC” or “QC”) for the diamond drilling undertaken at the Silver Reef Property during 2020. QC protocol included the insertion of QC samples into every batch of approximately 20 samples. QC samples included one standard (certified reference material), one blank and one crushed field duplicate. A total of 1,181 samples, including QC samples, were submitted during P2 Gold’s Phase 1 diamond drilling program at Silver Reef, as shown in Table 10. Table 10: Silver Reef Property 2020 Diamond Drilling QC Samples
Samples Number of Samples Percentage (%)
Standards 57 4.8%
Duplicates 51 4.3%
Blanks 55 4.7%
Normal 1,020 86.2%
Total 1,181 100%
12.2.1. Certified Reference Materials Certified reference material control samples (“CRM” or “standards”) allow monitoring of the precision and accuracy of laboratory assay data. Two different polymetallic standards (CDN-ME-1802, CDN-ME-1902) were professionally prepared and supplied by CDN Resource Laboratories Ltd. of Langley, BC for the 2020 diamond drilling program. A total of 57 CRM samples were submitted during the 2020 diamond drilling program at an average frequency of 1 in 20 samples. In the database, standard samples are inserted in sample numbers ending in with 10, 30, 50, 70, and 90. The standards were ticketed in sequence with numbers that were being used during logging. Certified values are shown in Table 11. Table 11: Summary of CRM Samples Used in Silver Reef Diamond Drilling Program
Gold (g/t) Silver (g/t) Copper (%) Lead (%) Zinc (%) Standard Reference Number Value 2 SD Value 2 SD Value 2 SD Value 2 SD Value 2 SD
CDN-ME-1802 1.255 +/-0.066 75.0 +/-44 0.510 +/-0.020 2.60 +/0.09 6.11 +/-0.29
CDN-ME-1902 5.38 +/-0.42 356 +/-19 0.781 +/-0.027 2.20 +/-0.10 3.66 +/-0.23
Graphs of the results (blue lines) for each standard marked with second and third standard deviations for each certified element are presented in Figures 30 and 31. Results that exceeded the second standard deviation for the standards, or the warning level limit for blanks, are considered potentially unreliable and further investigated and reviewed.
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Figure 30: Control Charts for CDN-ME-1802
Mean value is green line, second standard deviations are yellow, third deviations are red. Figure 31: Control Charts for CDN-ME-1902
Mean value is green line, second standard deviations are yellow, third deviations are red. Of the 57 polymetallic CRMs analyzed, values for 27 low-grade standards (CDN-ME-1802) (Figure 30) and 28 high-grade standards (CDN-ME-1902) (Figure 31) were returned from the lab; 2 samples were found to have insufficient material for analysis. There were 3 assays where the reported value exceeded two standard deviations difference from the mean and no instances where the assay values exceeded three standard deviations difference (Figure 30 and Figure 31). Because the deviation from certified values among the polymetallic standards is often borderline and infrequent, the data is found to provide a high level of confidence in the 2020 assay dataset.
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12.2.2. Blanks Field blanks are used to monitor:
Contamination introduced during the laboratory sample preparation;
Analytical accuracy of the laboratory; and
Sample sequencing errors. Blank material consisted of ¾” to 1” crushed granite. Blank samples were inserted at an average rate of approximately 1 in 20 samples, with a total of 55 blank samples submitted during the 2020 diamond drilling program. In the database, blank samples are inserted in sample numbers ending in 00, 20, 40, 60, and 80. Blank assay results were plotted on line charts marked with 5x lower limit of detection, or third standard deviations for Cu, Pb, Zn as warning levels. Graphs of the results for the blank samples are presented in Figure 32. Figure 32: Control Charts for Blanks
For Au and Ag, LLD is green, warning level of 5x LLD is red. For Cu, Pb, and Zn, mean is green, second standard deviation is yellow, third standard deviation is red. Of the 55 blank samples that were assayed over the course of the 2020 drill program, there were 6 instances where the value returned from the lab exceeded the third standard deviation (Figure 32). No action was taken. 12.2.3. Duplicates Duplicate samples and / or assays are generally collected to monitor the reproducibility of assay results generated by the laboratory, as well as the homogeneity of samples submitted for assaying. MSA Labs prepared the duplicate samples by taking a second cut from the coarse assay rejects every 20th sample. The sample number was denoted with the suffix “D” to differentiate between the P2 Gold sample and the lab duplicate. In the database, duplicate samples are inserted in sample numbers ending with 06, 26, 46, 66, and 86. Assay results from duplicate pairs were plotted against each other, applying a linear regression and R2 value for reference. The average assay value for each duplicate pair was also plotted against the pair’s absolute relative difference. The results of the duplicate sampling for the 2020 diamond drilling program are shown graphically in Figures 33 and 34.
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Figure 33: One-to-One Plots of Duplicate Assay Pairs
Note the slopes of linear regression lines are all greater than 0.9 and R2 values close to 1. Figure 34: One-to-One Plots of Duplicate Assay Pairs
Note the slopes of linear regression lines are all greater than 0.9 and R2 values close to 1. Results from the 51 duplicate pairs that were analyzed during the 2020 diamond drilling program indicate a strong one-to-one correlation in assay values, based on slopes and R2 values of linear regressions being close to 1 (Figure 33). Very little skew is observed within analytical results, and differences in values are believed to come from heterogeneity in crusher sub-sampling. Clustering of values in the interval from 0%- 20% for absolute relative difference for each duplicate pair indicates a high level of precision in the duplicate analyses.
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Figure 35: Site Photographs from P2 Gold’s 2020 Diamond Drill Program
Site Visit July 30, 2020; South Zone Looking East Diamond drill rig on Hole SR-002; Main Zone looking South
Site Visit August 24, 2020; Main Zone Looking South P2 Gold’s rented core processing facility – Stewart BC
Core Cutting Shack – Stewart BC Secure core storage yard – Stewart BC
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13. Mineral Processing and Metallurgical Testing Not applicable to this report.
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14. Mineral Resource Estimates Not applicable to this report.
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15. Mineral Reserve Estimates Not applicable to this report.
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16. Mining Methods Not applicable to this report.
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17. Recovery Methods Not applicable to this report.
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18. Project Infrastructure Not applicable to this report.
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19. Market Studies and Contracts Not applicable to this report.
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20. Environmental Studies, Permitting, and Social or Community Impact Not applicable to this report.
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21. Capital and Operating Costs Not applicable to this report.
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22. Economic Analysis Not applicable to this report.
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23. Adjacent Properties There are no adjacent properties to the Silver Reef with a defined resource with most of the nearby mineral occurrences only having early stage exploration (Figure 36). At present, the Jan, Peak, and Atna showings located immediately to the southwest of the Silver Reef property are held by Vale who has conducted early stage Cu-Mo porphyry exploration. Two other properties that have relevance to the Silver Reef are the Mot (94D-01) and Tommy Jack (094D / 031). The Mot property is located 15 kilometers to the northeast and is presently held by Arron Albano and Electrum Resources. The Tommy Jack property is located 20 kilometers to the northwest and is presently held by AAR Mineral Exploration Ltd. Both projects are Au-Ag polymetallic vein systems related to intrusives and appear to have some similarities to the Silver Reef project. Some excerpts from Minfile are included:
Mot Minfile 094D-01: The prospect comprises 5-zones which are, from northwest to southeast, the Solomon, Goudridge, Huestis, Moran and Charles (Assessment Report 20505). Of these 5-zones, the Huestis and the Goudridge zones are considered to be the most important. The zones occur along the eastern margin of the Bowser basin. The area is underlain by Middle to Upper Jurassic Bowser Lake Group sediments. Further to the east, volcanics of the Upper Triassic Takla Group and the Lower to Middle Jurassic Hazelton Group dominate. The rocks are intruded by feldspar porphyry and granodiorite dykes and sills. These intrusions are related to either the Eocene Kastberg Intrusions or the Cretaceous Bulkley Intrusions. The Bulkley Intrusions occur further to the south. All of the zones lie within a west-northwest trending gossan, approximately 3 kilometres long. This zone consists of fine-grained argillite, greywacke and coarse pebble conglomerate, which strike northwest and dip southwest. Thin quartz veins, commonly striking about 10 degrees with vertical to steep easterly dips, cut both the feldspar porphyry and the sediments. The quartz veins contain white quartz, a few vugs and a small amount of disseminated sulphides. The sulphides are pyrite, sphalerite, chalcopyrite, galena, molybdenite, pyrrhotite, arsenopyrite and scheelite (Assessment Report 10432). A 1.5-metre diamond drill interval from the Huestis zone contained 20.6 grams per tonne gold and 322.3 grams per tonne silver (Assessment Report 20505). A 3-metre chip sample from the Goudridge zone assayed 11.9 grams per tonne gold and 16.1 grams per tonne silver (Assessment Report 20505).
Tommy Jack (094D/031): The strata underlying the entire property area is part of a thick assemblage of non-marine sediments composed of shale, siltstone, arkosic sandstone, sandstone, and conglomerate. This assemblage forms the Middle to Upper Jurassic Bowser Lake Group. The sediments were deposited in the Bowser basin, interpreted as a marginal basin open to the west. The basin was filled with sediments shed from the east as a result of tectonic thickening and from the west, sediments came from volcanic chains and older terranes (Canadian Journal of Earth Sciences, Volume 14, pages 2414-2421). Intruding these sediments are small stocks, dikes and sills of granodiorite and dacite. These are possibly contemporaneous with and/or related to the Cretaceous Bulkley Intrusions, which occur further to the south. Mineralization at the original showing is hosted in the sediments and further up the ridge (approximately 3 kilometres to the southeast) it is contained within both the sediments and intrusive rocks. Mineralization consists of arsenopyrite, galena, sphalerite, pyrite, pyrrhotite, tetrahedrite,
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NATIONAL INSTRUMENT 43-101 TECHNICAL REPORT on the SILVER REEF PROPERTY chalcopyrite and ruby silver, primarily in quartz veins or quartz- carbonate altered rock. The mineralization is related to dikes and/or faults hosted by veins, veinlets and/or stockworks and carries values in gold and silver. The alteration consists of quartz-carbonate (ankerite, calcite, dolomite) sericite and chlorite (mafic minerals in the granodiorite dikes). The dikes themselves exhibit alteration (clay minerals, carbonate and sericite) and contain stockworks of mineralized quartz veins. The sandstones, being more permeable, show the greatest degree of carbonate alteration. The carbonate alteration zone mapped (to 2004) are approximately 2 by 3.5 kilometres and is open to the southeast. In Allen’s 1989 report for Intertech (Property File), his statistical analysis indicates that there are at least two populations of mineralization, suggesting at least two mineralizing pulses and possible overprinting of alteration/mineralization. The quartz and quartz-carbonate veining are multi-directional in both the sediments (sandstone and siltstone) and the dacite dikes. Previous drilling indicates that this veining occurs within broad fault zones within all rock types that the structures penetrate. Historically, there have been many rock sample types found throughout the property. Primarily, these samples are of float blocks but suspected to be of very local origin. They are typically of high precious metal grade. The grades range from 72 grams per tonne gold and 2537 grams per tonne silver (Assessment Report 27566). These rock samples are usually of sulphide-rich quartz but the quartz can be sulphide-poor and still carry excellent gold grades. These float samples are found in an area from immediately west of Beaver Creek to east of Unnamed Creek, a distance of approximately 3 kilometres. This wide area that contains the float samples also crosses the strike of the structures and includes geophysical and geochemical anomalies. One of the best drillhole intersections assayed 31 grams per tonne gold and 129 grams per tonne silver over 0.6 metre (Property File - Intertech Minerals Corp., Prospectus, 1988).
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Figure 36: Minfile Occurrences and Silver Reef Property
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24. Other Relevant Data and Information The author is unaware of any further data or relevant information that could be considered of any practical use in this report. The author is not aware of any material fact or material change with respect to the subject matter of the Technical Report that is not reflected in the technical Report, the omission to disclose which makes the Technical Report misleading.
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25. Interpretation and Conclusions Exploration work completed on the property to date has involved geological mapping and sampling of the newly discovered Main, Northwest, and South mineralized zones in addition to a 10-hole drill program totaling 1,315 m of HQ core completed by P2 Gold in 2020. The work has collectively confirmed the Main Zone to be a structurally controlled intrusive related polymetallic vein system striking 330/340 and dipping 45o to 65 o SW, extending at least 2-kilometers along strike in a corridor averaging 80 to 100 meters. The Northwest zone is a parallel mineralized structure which has been traced for over 650 meters and is locally up to 120 meters and remains open to the southeast and northwest. Surface values show consistent elevated values in Au, Ag, +/- Pb, Zn, +/- Cu, Sb and As. Drilling in 2020 by P2 Gold was successful in confirming the extension of silver-gold-lead-zinc mineralization at depth and along strike of both the Main and Northwest shear zones. The proximity of the Property to world class deposits confirms the favourable geological setting. Overall, the author is of the opinion that the Silver Reef Property has excellent potential to host a significant high- grade silver-gold deposit and further exploration of the Property is merited. The mineralized zones show good size potential and grades at depth so future work is well warranted to better define the Main and Northwest zones, advance the understanding of the key controls on mineralization, and search for additional vein systems.
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26. Recommendations Based upon the results of surface exploration and drilling to date, the following Phase 2 program is warranted and recommended for the Project: The total cost of the program is estimated to be $546,480.00.
Detailed mapping and sampling of the Main and Northwest zones to refine the geology, size and grade continuity of these targets and locate further extensions along strike.
A 1,000 to 1,200m drill program to follow-up and expand on the Phase 1 holes and to further evaluate the potential size and grades of the systems at depth.
An expansion of the geological mapping, prospecting and sampling program is recommended to identify and test other ferrocrete zones and vein targets on the property. Table 12: Recommended Work Budget
Description Personnel Days Rate Subtotal Total Mapping and Sampling Geologist and technician / $1,000.00 per 15 $15,000.00 Crew prospector day Drill Geologist and Core Drill geologist and core $1,200.00 per 15 $18,000.00 Technician technician day Travel Time 4 people, 2 travel days 2 $8.000.00
Office Prep., Contracts, etc. Manager 10 $6,000.00
$47,000.00
Transportation Hours Rate Subtotal Total “A star” contract, 3 hours per 60 $1,500.00 per Helicopter $90,000.00 daily minimum, 15 days hours hour 60 Fuel at camp $200.00 per hour $12,000.00 hours Vehicles – Fuel 2 trucks, 17 days $4,000.00
$106,000.00
Drilling Hours Rate Subtotal Total 1,200 $150.00 per HQ Drill Costs 1,200 m’s HQ- 6-8 holes $180,000.00 m meter 6 pads, 2 man crew, Pad Building 6 $18,000.00 $18,000.00 materials setup / tear down Core Boxes 400 boxes at $20.00 per box $8,000.00
Diesel Fuel $4.00 per m $4,800.00 Includes firstt site and last Mobilization / Demobilization $15,000.00 site setup / teardown $225,800.00
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Analytical Rate Subtotal Total $40.00 per Rock Samples 200 samples $8,000.00 sample $45.00 per Drill Core (plus QA / QC) 800 samples $36,000.00 sample $44,000.00
Camp Days Rate Subtotal Total $2,000.00 per Trailer or Tent Camp 15 $30,000.00 day Cook – First Aid / Camp 15 $1,000 per day $15,000.00 Manager $50.00 per man Food / Camp Supplies 10 to 12 people 180 $9,000.00 day Expediting / Deliveries $5,000.00
$59,000.00
Miscellaneous Subtotal Total Equipment / Satellite $5,000.00 Phones, etc. Compilation / Final Report $10,000.00
$15,000.00
Subtotal $496,800.00
Contingency 10% $49,680.00
TOTAL EXPENDITURES $546,480.00
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27. References Alexco Website (www.alexcoresource.com). Carter (1981), BCGS Bull. 64-Porphyry Copper and Molybdenum deposits, West Central B.C. Colpron, M., Nelson, J.L., and Murphy, D.C., 2007. Northern Cordilleran terranes and their interactions through time. GSA Today, 17, 4-10. Colpron, M., Nelson, J.L., and Murphy, D.C., 2007. Northern Cordilleran terranes and their interactions through time. GSA Today, 17, 4-10. Cooke, D.L. (1968): Geological and Geochemical Report on the Shel nos. 1-20 Claims, Situated Approximately Four Miles South of Motase Lake in the Omineca Mining Division. B.C. Ministry of Energy, Mines and Petroleum Resources Assessment Report 02,084 Evans, G. and Tsang, L. (2018). 2018 Exploration and Prospecting Report on the Silver Reef Property. ARIS 38,138. Evans, G. and Tsang, L. (2019). 2019 Exploration and Prospecting Report on the Silver Reef Property. ARIS not assigned. Evenchick et. Al (2002), Vitrinite and Bitumen reflectance and preliminary organic maturity model for the northern 2/3 of the Bowser basin. Ferri, et al. (2006), Skeena and Bowser Lake Groups -West Half Hazelton Lake 93M Friedman and Anderson and etc. (2000), Late Cretaceous ages for the Chelaslie River and Tetachuck- north plutons, northern Tetachuck Lake map area, central British Columbia, Geological Survey of Canada. Geoscience B.C.(2010) Quest West Project-Mineral Deposits, Geoscience BC.Map 2010-12-2, scale 1:500,000 Hecla Mining Website (www.hecla-mining.com) Minfile: website https://minfile.gov.bc.ca/ various occurrence descriptions and links. Mullan, A.W. and Fountain, D.K., (1974): Report on the Induced Polarization and Resistivity Survey Shel Claims, Sicintine Mountain Area Omineca Mining Division, B.C. for Craigmont Mines Limited. B.C. Ministry of Energy, Mines and Petroleum Resources Assessment Report 05,348 Lefebure, D.V. and Church, B.N. (1996): Polymetallic Veins Ag-Pb-Zn+/-Au, in Selected British Columbia Mineral Deposit Profiles, Volume 2 - Metallic Deposits, Lefebure, D.V. and Höy, T., Editors, British Columbia Ministry of Employment and Investment, Open File 1996-13, pages 67-70. Richards, T. A. 1990: Geology and mineral deposits of Hazelton (93M) map area, British 186 Columbia; Geological Survey of Canada, Open File 2322. Scott, A. (1978): Induced Polarization and Magnetics Survey Shel Property Nilkitewa River Area, Omineca Mining Division, BC. B.C. Ministry of Energy, Mines and Petroleum Resources Assessment Report 06,849 Smith and Mustard (2005), the Southern Contact of the Bowser Lake and Skeena Groups Waldron (2006), Basin Analysis Studies in the Bowser Basin, Northern British Columbia (NTS 93L, 103P, 104A, 104B, 104G, 104H). Waldron (2006), Stratigraphic Record of Initiation of Sedimentation in the Bowser Basin (NTS 104A, H) GOLD #8, MINFILE Detail Report, BC Geological Survey, 094D 118. KISGEGAS, MINFILE Detail Report, BC Geological Survey, 093M 126. KISGEGAS, MINFILE Detail Report, BC Geological Survey, 093M 126.
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Certificate of Qualified Person I, Amanda Tuck, am a professional geologist residing at 6242 Elizabeth Garden Court, Victoria, British Columbia, Canada, and do hereby certify that: 1. I authored and am responsible for this Report entitled “National Instrument 43-101 Technical Report on the Silver Reef Project, Omineca Mining Division, British Columbia, Canada”, dated September 20, 2020; 2. I am a Registered Professional Geoscientist (P.Geo), Practicing, with the Association of Professional Engineers and Geoscientists of British Columbia, license number 51394; 3. I am a Registered Professional Geoscientist (P.Geo), Practicing, with the Association of Professional Engineers and Geoscientists of Alberta, license number 121526; 4. I graduated from the University of Victoria, British Columbia with a B.Sc. degree in Earth Science (June, 2009) and have more than 10 years of mineral exploration experience in the North American Cordillera. 5. I visited the Silver Reef Property on July 30, 2020 and August 24, 2020 and carried out an examination of both the Property and relevant data; I also supervised the Phase 1 diamond drilling program completed by P2 Gold in 2020. 6. I had no prior involvement with the Silver Reef Property besides providing geological consulting services to P2 Gold Inc. 7. I am independent of the issuer, P2 Gold Inc. as described in Section 1.5 of the National Instrument 43-101 other than providing geological consulting services. 8. I have read National Instrument 43-101 and Form 43-101F1 and, by reason of education and past relevant work experience, I fulfill the requirements to be a “Qualified Person” for the purposes of NI 43-101. This Technical Report has been prepared in compliance with National Instrument 43-101 and Form 43-101F1; and 9. As of the effective date of this Technical Report, to the best of my knowledge, information, and belief, this Technical Report contains all scientific and technical information that is required to be disclosed to make the Technical Report not misleading.
Effective Date: September 20, 2020. Signed:
"Amanda Tuck"
Amanda J. Tuck, Qualified Person 6242 Elizabeth Garden Court Victoria, BC
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