Silver Coin

Opportunity:An advanced stage gold-silver project located adjacent to the Premier gold mine of Ascot Resources. Ascot “is focused on re-starting the past producing historic Premier gold mine, once North America’s largest gold mine” (www.ascotgold.com). The Silver Coin project is being acquired by Ascot with the intent that Silver Coin will add to the resource base in support of the mine re-start.

Location:The Silver Coin project is a gold-silver project located in the “Golden Triangle” area of the Skeena Mining Division of British Columbia. Silver Coin is situated 10 kilometre norths of the past-producing Silbak-Premier mine and 34 kilometres south of the Brucejack lake deposits

Size:244,000 gold equivalent ounces of high-grade resources (Ascot News Release of August 13, 2018).

Ownership:Mountain Boy sold its 20% interest to Ascot Resources in return for 3,746,874 Ascot shares, and in additional, up to 428,921 Ascot shares on certain conditions (Mountain Boy News Release August 13th, 2018 – Ascot is also buying Jayden Resources’ 80% interest). The deal is expected to close in October.

Overview:The claims were first established in 1904 and the key ground was held by the Noble family from the 1930s until 2003, with intermittent small-scale production. Mountain Boy secured the property in 2003, while the Premier mine was inactive.  In 2009, Mountain Boy signed an agreement with Jayden Resources Inc.  Jayden Resources Inc then funded work on the project earning an 80% interest, Mountain Boy retained a 20% carried interest. The initial efforts focused on developing a stand-alone operation at Silver Coin. With the re-activation of Premier by Ascot Resources, Silver Coin became a natural fit. The Companybelieves Ascot Resources is very well suited and well funded to move the Silver Coin Gold Project ahead. Considering the proximity and common ore type with Ascot Resource’s adjoining properties, combining Silver Coin and Premier is the best way to advance the project, while Mountain Boy maintains upside in the success of the project in the form of Ascot Resources shares.

The property is located along volcanic rocks on the boundary with the Texas Creek Batholith, part of the Texas Creek Plutonic suite in the Stewart Area. This suite of rocks is related to alteration and mineralization at the former producing Premier mine 5 kilometre southwest of the property and the KSM copper-gold porphyries and Brucejack Lake gold deposits 34 kilometres north of the property. Jurassic age intrusions (193-195 Ma Premier Porphyries near Stewart; Mitchell intrusions at Kerr-Sulphurets-Mitchell deposits and Brucejack Lake) are related to these mineralizing events in the Stewart area and Sulphurets-Mitchell valleys. The Brucejack Lake gold deposits owned by Pretium Resources Ltd are located 30 kilometres north of the property.

 

To date, the property has been explored by 88,563 m of drilling in 766 surface and underground diamond drill holes. Based on this drilling a resource estimate has been prepared as follows:

Resource Estimate

Using a base case cut-off grade of 0.3 grams gold per tonne (“gpt”) the Report identifies the following gold, silver and zinc resource:

SILVER COIN CLASSIFIED RESOURCES April 2011
 
 0.3 g/t Au Cut-off
Tonnes Au (g/t) Ag (g/t) Zn (%) Au (oz) Ag (oz) Zn (lbs)
Measured 4,372,225 1.55 6.53 0.26 218,410 918,417 25,531,741
Indicated 19,759,025 0.98 5.57 0.15 624,006 3,537,769 65,642,277
M & I 24,131,250 1.08 5.74 0.17 842,416 4,456,186 91,174,018
               
Inferred 32,443,840 0.78 6.41 0.18 813,273 6,691,185 128,006,920

At the 0.3 gpt cut-off grade the estimated Measured and Indicated resource is 24.13 million tonnes grading 1.08 gpt gold for a total of 842,416 ounces of gold, 4.45 million ounces of silver and 91.17 million pounds of zinc. The estimated Inferred resources comprise an additional 813,273 ounces of gold, 6.69 million ounces of silver, and 128 million lbs of zinc.

The resource remains open along strike to the north and south. The two southernmost holes from the 2010 drilling, both located within 150m of the currently modelled southern pit boundary, intersected excellent intervals of gold mineralization including 55m grading 8.42 gpt gold in hole SC10-311 as reported in the Company’s news release of October 14, 2010. Readers are advised to access the Report for detailed technical information. Some highlights of past drilling are included as follows:

Hole No. From
(metres)
To
(metres)
Intercept Length
(metres)
Au
(g/t)
Ag
(g/t)
2005-44 63.7 108.1 44.4 5.95 24.87
including 65.2 80.4 15.2 9.2 23.52
including 86.5 108.1 21.6 5.42 29.3
2005-52 88.03 207.01 118.98 5.4 32.76
including 155.18 170.43 15.25 34.05 206.7
2005-65 82.01 91.16 9.15 47.37 69.56
2006-178 117.99 136.28 18.29 9.05 37.67
including 120.12 121.34 1.22 25.29 50.5
2006-203 178.96 195.73 16.77 7.40 16.21
including 182.01 188.11 6.1 17.90 36.8
SC08-299 0.00 77.72 77.72 2.41 7.9
including 9.14 10.67 1.53 20.47 20.2
SC08-306 70.10 124.97 54.87 4.45 29.3
SC10-311 73.0 128.0 55.0 8.42 12.53
including 76.0 83.0 7.0 32.89 45.36
including 99.0 103.0 4.0 18.21 22.40
including 110.0 116.0 6.0 11.64 10.40

Exploration plans for 2011 include infill drilling to move the inferred resource into the measured and indicated category to aid in a pre-feasibility study.

In 2011, a total of 109 drill holes were completed but a new resource was not prepared. In 2013, Jayden filed a technical report on resources using a 2 g/t Au cutoff. Results of this are available on SEDAR and are as follows:

The tables below show estimated mineral resources for the high grade core of the Silver Coin deposit at the different zone locations.

Tabulation of estimated mineral resources for the Main Zone at cut off 2 g/t Au

Category Tonnage kt Au g/t Ag g/t Zn % Pb % Cu %
Indicated 568 4.65 11.84 0.70 0.35 0.03
Inferred 486 4.25 8.93 0.33 0.17 0.02

Tabulation of estimated mineral resources for the North Zone at cut off 2g/t Au

Category Tonnage kt Au g/t Ag g/t Zn % Pb % Cu %
Indicated 134 3.27 54.81 1.95 0.23 0.30
Inferred 93 6.08 62.41 1.67 0.33 0.20

Tabulation of estimated mineral resources for the East and West Zones at cut off 2g/t Au

Category Tonnage kt Au g/t Ag g/t Zn % Pb % Cu %
Inferred 388 3.98 16.55 0.66 0.33 0.02

This resource estimate does not comprise all narrow gold zones suitable for underground extraction occurring within the Silver Coin deposit, and there are additional zones of high grade mineralization found east and west of the Main Zone and North Zone which may have a significant impact on overall potential of the Silver Coin deposit. The above resource estimate was prepared by Jayden Resources and it has not been confirmed by the Company. The reader is cautioned to use the information as reference and is not to be relied on.