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Reliance Gold Project, B.C.

Overview

Reliance Project Presentation (May 2, 2022)
Reliance Project Kamloops Exploration Group Conference (Apr 12, 2022)
Reliance Project 2021 Diamond Drill Core (Feb 2022)
Reliance Project 2020 RC Drill Chips (Mar 2021)
Reliance Project 2008 Diamond Drill Core (Mar 2021)

The Reliance Gold Property (the "Property") is located 4 kilometres ("km") east of the village of Gold Bridge, and 10 km north of the historic Bralorne-Pioneer Gold Mining Camp which has produced over 4 million ounces of gold. The Property is a 4-hour summer drive north of Vancouver.

The Property consists of two separate option deals, the original Reliance Option was acquired in 2019 and the Olympic Option acquired in 2022 which collectively encompass about 2,475 hectares in mineral rights. The Olympic Option was originally explored with minor pre-World War II gold production of about 17,500 ounces from the Minto Mine. In addition, numerous short gold exploration adits are documented on at least five other prospects on the Property.

More recently the Property was explored with trenching and diamond drilling from 1985 through 2008. The majority of historic drill was on the Reliance Option with about 80% of the historic drilling in the area of current exploration focus completed in between 1986 and 1988. Only the Imperial Zone had been historically explored with significant drilling along about a 100 metre (“m”) trend. Gold mineralization is associated with sulphidization, silicification, multiphase breccias, quartz-stibnite veining and vein stockwork, hosted within wider envelopes of ankerite-sericite-clay alteration. The most explored complex structure is the Royal Shear which hosts the Imperial, Crown, Diplomat, Senator, Eagle and Eagle South Zones identified by surface sampling and drilling.

The compressional structural setting, mineralization and encouraging drilling results to date indicate that the Reliance Property is host to a significant shallow level (Epizonal) Orogenic gold system that warrants continued systematic exploration through drilling to grow the gold system. Exploration activities by the Company have defined a two (2) km trend that has the highest priority on the Property.

Prior to the 2019 acquisition by the Company, the Imperial Zone was last drilled in 2008, and returned highlight drill intersection widths of 13.30 grams per tonne ("gpt") gold over 4.20 m (est 1.8 m true width), 7.05 gpt gold over 5.06 m (est 2.05 m true width), 5.70 gpt gold over 12.05 m (est 9.5 m true width), 5.43 gpt gold over 15.35 m (est 10 m true width) and 2.16 gpt gold over 12.13 m (est 6.5 m true width), in five (5) of an eight (8) hole drilling campaign.

The Company conducted two Reverse Circulation "RC" drilling programs in December 2020 and May 2021 with a total of 51 shallow RC drill holes completed with very encouraging gold assay results from the Eagle Zone, a new discovery at the Diplomat Zone and Treasure Prospect, and further encouraging drill results at the Imperial Zone. Highlight results from both of these RC drill programs include 14.08 gpt gold over 15.24 m, 10.50 gpt gold over 6.1 m and 9.70 gpt gold over 12.2 m at the Eagle Zone, 16.39 gpt gold over 4.57 m at the Diplomat Zone, and 7.23 gpt gold over 4.6 m at the Imperial Zone. A total of forty-one (41) of the fifty-one (51) RC drill holes completed by the company in 2020 and 2021 returned significant gold intersections of at least three (3) m in width.

The Company conducted a diamond drilling (“DDH”) program in 2021 for a total of 22 diamond drill holes completed at the Imperial Zone, Eagle Zone and the Eagle South Target with very encouraging gold assay results received to date from a new discovery at Eagle South (15.7 gpt gold over 24.8 m, including 26.96 gpt gold over 4.1 m), an extension of the Eagle Zone (8.62 gpt gold over 24.4 m including 17.02 gpt gold over 4.3 m), and encouraging drill intersection at the Imperial Zone (8.47 gpt gold over 24.9 m including 16.27 gpt gold over 10.5 m.) The combined results from the Eagle Zone, Eagle South and new surface prospects on Eagle South announced recently have extended this Eagle Area mineralization on surface and near-surface drilling to about 400 m.

In addition, the 2020 and 2021 Exploration programs completed Soil sampling, Biogeochemical sampling, Rock sampling, Channel sampling, Airborne Magnetics Survey, 3DIP Geophysics, LiDAR, Ground Magnetics, Orthophotography, and property scale Geological Mapping.

The Option Deals

Reliance Option - Under the terms of the option agreement, the Company can earn a 100% interest for cash consideration in the aggregate amount of $300,000 ($70,000 paid) and exploration expenditures in the aggregate amount of $3,000,000 by December 31, 2024; the allotment and issuance of up to a total of 4,000,000 common shares (1,000,000 common shares issued) of the Company by December 31, 2025. The Option is subject to a 2.5% NSR, of which 1.5% NSR can be purchased by the Company at any time for $1,000,000.

Olympic Option - Under the terms of the agreement with Avino Silver & Gold Mines Ltd., the Company can earn a 100% interest in the Olympic Claims adjoining and immediately east of the Reliance Option , for cash consideration in the aggregate amount of $100,000 ($10,000 due on Exchange acceptance) and exploration expenditures in the aggregate amount of $300,000 by December 31, 2024; the allotment and issuance of up to a total of 1,500,000 common shares of the Company by December 31, 2024 (100,000 common shares to be issued on Exchange acceptance). The Option is subject to a 2.0% NSR, of which 1.0% NSR can be purchased by the Company for $750,000 and the remining 1.0% NSR can be purchased by the Company for $1,000,000.

2021 Exploration Program

2021 Diamond Drilling - The Company completed a diamond drilling program between August through November that explored and extended the new zones identified at the Eagle Zone, and Eagle South Target area and also drilled the pre-existing Imperial Zone. Twenty-two (22) diamond drill holes were completed in 2021 for a total of 4,332 m drilled. The Eagle Area had never previously been tested with diamond drilling and has returned a highlight discovery hole at Eagle South of 15.7 gpt gold over 24.8 m, including 26.96 gpt gold over 4.1 m. Also, the Eagle Zone was extended to the southeast with 8.62 gpt gold over 24.4 m including 17.02 gpt gold over 4.3 m. The following is a link to the complete gold assay results reported to date from the 2021 DDH drilling program. To facilitate this drilling about 1 km of drill trails were excavated along the southeast trend soil anomaly.

2021 Reverse Circulation Drilling - The Company conducted a RC Drilling Program between April and May 2021. Twenty-seven (27) of the thirty-five (35) RC holes drilling in 2021 had significant gold intersection with best results reported from the Eagle Zone and a new high-grade discovery at the Diplomat Zone and also a new trend opened up with an encouraging first gold intersection at the Treasure Prospect. Highlight results include 14.08 gpt gold over 15.24 m at the Eagle Zone and 16.39 gpt gold over 4.57 m at the Diplomat Zone. The following is a link to the complete gold assay results from the 2021 RC drilling program.

LiDAR and Orthophotography – A LiDAR and Orthophotography survey was completed and is providing very useful three-dimensional topographic controls for integration of geophysical and diamond drilling data.

3DIP Geophysics and Magnetics – A 3DIP geophysical survey was completed with encouraging results that will assist in defining diamond drill targets. The survey encompassed about 2 km of the Royal-Treasure shear structural trend. In addition, an orientation ground magnetics survey was completed to assist in defining areas of alteration associated with the known gold zones on the Royal Shear.

Soil Sampling – Additional talus fines and soil sampling has been completed on portions of the Royal Shear and Treasure Shear trend that were identified as anomalous based on the 2020 biogeochemistry survey. These results have successfully confirmed and extended the strong soil anomaly (+100 parts per billion “ppb” gold) associated with the southeast extension of the Eagle Zone, the Eagle South Area and the Upper Eagle target.

Prospecting and Sampling – Based on targets in the soil and biogeochemical surveys, observations of historic pits showing on the LiDAR data, and evaluation of new road outcrops exposed in 2021, new areas were explored with surface sampling. The highlight was the identification of new surface zones southeast of the 2020 Eagle Zone discovery where surface chips returned 9.66 gpt gold over 2.5 m at the E7 prospect and 7.01 gpt gold over 1.8 m at the E5 prospect with grab samples up to 21.2 gpt gold at the E5 prospect. Similar exploration was also conducted on the Treasure Shear trend. Highlight results include surface channel samples results of 4.43 gpt gold over 8.54 m at the Bona Zone, and 9.19 gpt gold over 4.7 m at the Grey Rock Zone.

Permitting and Consultation

The Company's Notice of Work drill permit application was accepted by the BC Ministry of Energy and Mines in June 2020, and a five-year permit granted in October 2020 without concerns raised by any of the affected communities or other resource agencies. The Company is committed to a mutually beneficial relationship with local First Nations. Dialogue has been active throughout 2020 and 2021 and First Nation contractors continue to be engaged to assist in several aspects of our 2020 and 2021 exploration activities. A preliminary archaeological study was completed in 2020, and the field-oriented study did not identify any archaeological artifacts, or areas of concern. During 2020 and 2021, about 25% of the man-days for program activities were personnel from the Tsal’alh First Nation.

In 2021, the Company signed a Memorandum of Understanding (MOU) to work together in the spirit of collaboration and partnership with the Bridge River Valley Community Association (BRVCA), Tsal’alh Development Corporation, Bralorne Gold Mines, Cobalt One Energy Corp, and the Squamish-Lillooet Regional District.

2020 Exploration Program

The Company conducted a systematic 2020 exploration program consisting of compilation and location of historic technical data, airborne geophysics, rock, soil and biogeochemical sampling, geological structural mapping and extensive representative channel sampling, followed by a RC drilling program. This early work resulted in the current exploration focus on the Royal Shear Zone.

Geophysics - The 2020 airborne magnetics survey has identified a magnetic anomaly associated with the best gold occurrences on the Royal Shear which has a contiguous strike length of about 2.5 km on the Property. This airborne magnetics survey data combined with observations from the initial field work has also identified four (4) other subparallel lineaments on the Property named Steep, Treasure, Camp and Nemo. Historical gold mineralization has been reported on the Treasure and Camp lineaments and antimony mineralization has been reported along the Nemo lineament.

Soil and Vegetation Sampling - The Talus fines/C-horizon soil survey demonstrates a robust and continuous northwest-southeast trending gold, silver, arsenic ("As") and antimony ("Sb") anomaly that exceeds 100 ppb gold along a strike length of 1,500 m and width of between 100 and 300 m associated with the Royal Shear, when combined with additional soil sampling completed in 2021. The multielement geochemical anomaly is 1,500 m in length and remains open to expansion along strike in both directions. Of the 236 samples collected in 2020, 64 samples exceeded 100 ppb gold (27% of total) and 12 samples exceeded 1,000 ppb gold. These 12 over-limit soil samples were re-analyzed and returned peak values of 27 parts per million ("ppm"), 11 ppm, 8.42 ppm, 5.55 ppm, 3.77 ppm and 3.66 ppm gold. There is a strong positive geochemical correlation between gold and associated elements silver (+0.85), As (+0.90) and Sb (+0.85). A 2020 orientation and test biogeochemical sampling program of Douglas Fir tree branch cuttings, consisting of 129 samples, identified an anomaly which is coincident with the greater than 100 ppb gold-in-soil anomaly. The biogeochemical anomaly is defined by elevated As (+/-gold, +/-Sb) over a 850 m strike length which is open to expansion. These results indicate that Douglas Fir sampling is an economical method to detect blind mineralization obscured by the thick volcanic pumice tephra-ash that blankets the Property. Based on these encouraging results, the Company completed a more extensive biogeochemical sampling program which successfully extended the biogeochemical anomaly associated with the Royal Shear Zone to 2 km of strike. As of 2021, about 1.5 km of this 2.0 km long biogeochemical anomaly identified in 2020, has now been subsequently verified with significantly anomalous gold-in-soil.

2020 Rock Sampling - The Company restored the high-bank road outcrop exposures of the known gold zones on the Royal Shear to facilitate channel sampling as well as geological and structural mapping. To access the prospects, about 5 km of previously excavated access trails on the Royal Shear were cleared of underbrush and the outcrops cleaned to facilitate geology and sampling. Highlights of the initial 2020 rock sampling include a chip sample of 4.1 gpt Gold over 3.7 m at the Imperial Zone and a chip sample of 8.8 gpt gold over 1.52 m at the Eagle South Zone. Highest grade rock samples result include a chip sample of 24.4 gpt gold over 0.3 m at the Eagle South Zone and 19.2 gpt gold in a grab sample from the Eagle Zone. The Eagle South Zone was subsequently systematically channel sampled.

2020 Channel Sampling - Systematic rock channel sampling has been completed over a significant strike length of the exposed prospects. The channel samples were collected using a hand-held electric hammer "demolition" chisel which extracts a continuous channel in outcrop horizontally across a pre-measured and marked outcrop face. The first channel sample results were reported at the Eagle South Zone in 2020 and returned 8.9 gpt gold over 9.6 m within a wider mineralized zone of 6.92 gpt gold over 13.4 m. The 2021 discovery drill hole at Eagle South was about 125 m southeast of this channel sample. Other excellent 2020 channel sample results at the Eagle Zone returned values of 5.80 gpt gold over 31.5 m including 9.69 gpt gold over 9.1 m at Eagle 1, 4.88 gpt gold over 23.5 m including 8.61 gpt gold over 9.1 m at Eagle 3, and 3.83 gpt gold over 17.1 m including 7.19 gpt gold over 3.7 m at Eagle 0.

2020 Reverse Circulation Drilling - Subsequent to receipt of the drill permit a track-mounted compressed air assisted RC drill was mobilized onto the property in November 2020 to test the Eagle, Eagle South and Imperial Zones. Seventeen holes were attempted with sixteen holes completed before the planned program finished in mid-December 2020. Nine (9) RC holes tested the Eagle Zone, five (5) RC holes tested the Imperial and Imperial North targets, and two (2) RC holes were completed on the Eagle South Target and one hole was abandoned at the Imperial Zone. The following is a link to the complete gold and antimony assay results from the 2020 RC drilling program. The most encouraging new area identified was the Eagle Zone on which nine (9) holes defined a shallow dipping zone which averages 16 m width and 4.63 gpt gold in with a surface projected footprint at year-end 2020 of 120 m by 85 m. The zone is open down dip to the southwest and along strike to the southeast.

Geological Mapping - The Company engaged Oliver Geoscience International Ltd. to complete a geological structural mapping program over a 1.0 km trend of the Royal Shear in the area of the best known gold prospects. The Royal Shear is a multi-strand brittle ductile northwest trending and steeply southwest dipping reverse fault that separates a dominantly mafic volcanic sequence on the northeast from a dominantly ribbon chert argillite sequence on the southeast. The most significant gold occurrences are located in the footwall mafic volcanic that are sheared and iron-carbonate altered resulting in wide zones of modest to intense alteration with the most intense alteration associated with silicification spatially associated with altered feldspar porphyry. Two types of orogenic-type gold mineralization have been observed on surface within the area of the most intense iron-carbonate alteration and shearing. One form is associated with silicification, quartz veins, quartz vein breccia, and often significant stibnite (up to 11% antimony in grab samples) and second type which is hosted within sericite altered brittle-ductile shearing with insignificant silicification but iron oxide oxidation suggesting elevated sulfide contents. It was observed that the later mineralization type is associated with recessive weathering shear zones up to 15 m in width. Follow-up geological mapping along the Royal Shear structural trend was completed in October.

2019 Activity

The Company optioned the Property in September 2019 and announced encouraging surface sampling results from the Property in December 2019. Sampling efforts were largely focused on a small portion of the Royal Shear and assay results have confirmed encouraging gold results on surface. Highlights of the results include chip sampling of 10 gpt gold over 5 m at the Imperial North Zone and 4.6 gpt gold over 2 m at the Senator Zone prospects. The gold mineralization is hosted within areas of alteration up to 100 m wide in the Royal Shear consisting of ankerite-sericite-clay alteration with silicification, quartz-stibnite veining, vein stockwork, vein breccia sulphidized shear zones, and associated quartz-feldspar porphyry.

Technical Reports

Why gold loves arsenic. Mining.com July 8, 2021.
Arsenic uptake by the Douglas-fir. Applied Organometallic Chemistry, vol. 18 pp. 626-630. 2004.
Reliance Project - Eagle Zone Detailed Channel Sampling Compilation. November 16, 2020
Geoscience BC Rpt. 2017-08. Constraints on the Metallogeny and Geochronology of the Bridge River Gold District & Associated Intrusions, southwestern B.C. by Hart, C.R.J. and Goldfarb, R.J.
Diamond Drilling Assessment Report on the Reliance Property. Rpt. No. 30524A. by Lindinger, J.E.L., 2009.
Appendix Core Images - Diamond Drilling Assessment Report on the Reliance Property. Rpt. No. 30524B. by Lindinger, J.E.L., 2009.

Qualified Person

The 2020 and 2021 work programs were supervised by Darren O'Brien, P.Geo., an independent consultant and qualified person as defined in National Instrument 43-101. Robert T. Boyd, P.Geo. is a qualified person as defined in National Instrument 43-101 and supervised the compilation of the historic information forming the basis for this summary.

The 2019 representative chip and grab samples mentioned in this release were analyzed for gold only at SGS Canada by GE_FAA30V5. The single overlimit sample that exceeded 10,000 ppb gold was analyzed by SGS Canada by GO_FAG30V. Confirmation standards were inserted by SGS Canada with each of the two analytical techniques.

The 2020 rock samples and channel samples were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where they were crushed to 70% <2 mm then up to 250 gram pulverized to <75 microns. Samples were then submitted for four-acid digestion and analyzed for 48 element ICP-MS (ME-MS61) and gold 30g FA ICP-AES finish (AU-ICP21). Over limit samples returning greater than 10 ppm gold were re-analyzed by Au-GRA21 methodology and over limit antimony returning greater than 10,000 ppm Sb were re-analyzed by Sb-AA08 methodology. Grab samples are selective by nature and are unlikely to represent average grades on the property or within the target areas. Bedrock representative chip and grab samples mentioned in this summary are potentially selective by nature and are unlikely to represent average grades within the bedrock when drilled.

Except for the drilling completed in 2008, the historic exploration drilling activity cannot be relied upon due to poor quality georeferencing and lack of down-hole dip information. Despite estimates, the 2008 drill intersections mentioned in this release may not accurately represent the true width of the intersection. In 2008 all cut and/or split core samples were analyzed by ICP analyses at Ecotech Analytical Laboratory. Samples that exceeded 1,000 ppb gold were re-analyzed by lead collection fire assay at the same laboratory using a preferred 30 gram sub-sample size.

The 2020 and 2021 RC drill samples were collected under the supervision of a geologist at the drilling rig. Drilling was completed using a 3.5 inch hammer bit and rock chip samples were collected using a cyclone. Sample size were reduced to 1/8th size with a riffle splitter at the drilling rig. A second duplicate split and coarse chips were collected for reference material and stored at the property.

Diamond drill core was logged and evaluated on the Property and samples designated for collection under the supervision of a geologist at the property. Drilling was completed using a skid mounted Hydracore 2000 equipped with NQ size tools capable of collecting 4.76 cm diameter core. Diamond drill core was cut using a diamond drill saw with one half of the core sent for analysis and the remaining kept for future studies. Sample intervals were typically 2 metre core length and intervals were shortened for lithology or alteration changes.  For drilled and sampled intervals of poor average core recovery, the complete core was sampled and sent to the laboratory for assay analysis.

All RC and DDH samples were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where they are crushed to 70% <2 mm then up to 250 gram pulverized to <75 microns. Samples are then submitted for four-acid digestion and analyzed for 48 element ICP-MS (ME-MS61) and gold 30g FA ICP-AES finish (AU-ICP21). Over limit samples returning greater than 10 ppm gold will be re-analyzed by Au-GRA21 methodology and over limit antimony returning greater than 10,000 ppm Sb will be re-analyzed by Sb-AA08 methodology. pXRF analysis was conducted by a Company geotechnician at the project site on the RC coarse chips that were saved as reference material. An Olympus Vanta XRF Analyzer was used for the analysis which is capable of measuring elements from concentrations as low as single parts per million (ppm). Duplicate pXRF analysis was also conducted on a select set of the duplicate split samples to test for reproducibility.

2020 Soil samples were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where they were prepped and screened to -180 micron using method code SCR-41. Samples were then submitted for aqua regia digestion and analyzed for gold and other trace elements with an ICP-MS finish (method code AuME-TL43). Over limit samples returning greater than 1,000 ppb gold were re-analyzed by Au-AROR43 methodology.

For the 2020 biogeochemistry program, Douglas Fir clippings weighing approximately 350 grams per sample were submitted to ALS Global in North Vancouver, BC, an ISO/IEC 17025:2017 accredited laboratory, where the Douglas Fir clippings were prepped for analysis and then air dried. An average homogenized weight of 24 grams of the collected and dried sample was then ashed at 475 degrees centigrade for 24 hours (prep method code VEG-ASH01) for a resultant average weight of 0.6 grams. The ashed samples were then submitted for nitric/hydrochloric acid digestion and analyzed for trace elements and gold with an ICP-MS finish (method code AuME-VEG41a). Analytical results are reported to the Company based on the ashed weight.