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The 100% owned FG Gold project is part of Karus Gold’s 1,000 square kilometer South Cariboo Gold District (“District”) of central British Columbia, which contains 110 kilometers of the Eureka thrust structural trend (“Trend”) that drives gold mineralization in the District. The Trend is highly prospective for sediment hosted orogenic gold deposits, some of largest in the world, and includes the Company’s Gold Creek Project, located 75 kilometer to the northwest of FG Gold.
FG Gold consists of 35 claims, totaling 13,008 hectares and is located approximately 100 kilometer east of Williams Lake in the Cariboo Mining Division. The claims straddle the MacKay River valley and are centered at approximately 52° 18’N and 120° 35’ W on National Topographic System (NTS) map sheet 093A07 (1:20,000 BCGS map sheets 093A027, 093A028, 093037 and 093A038).
FG Gold is accessible by gravel road.
The NI 43-10 technical report on the South Cariboo Property, dated December 16, 2020 and titled “Technical Report on the South Cariboo Gold Property”, is filed on SEDAR and also available HERE. The report includes the FG Gold and Gold Creek projects.
FG Gold straddles the boundary between the Omineca and Intermontane tectonics belts of the Canadian Cordillera. The eastward emplacement of the Intermontane Belt onto the Omineca Belt along the Eureka Thrust Fault caused widespread regional metamorphism and structural deformation of both Belts. The regional scale, northwest trending, shallowly plunging, Eureka Syncline is the dominant resulting structure in the project area. Rocks in the core of the Eureka Syncline are comprised of basalt, augite porphyry flows, tuffs and volcanic breccias metamorphosed to a low grade; they are structurally emplaced onto metavolcanic and sedimentary rocks of the Quesnel Terrane. The Quesnel Terrane is recognized for its prevalence of copper, gold and molybdenum deposits and showings such as those at Highland Valley, Boss Mountain, Quesnel River and Mount Polley.
FG Gold is centrally located over the Eureka Syncline, strategically encompassing two limbs and the hinge zone of a gold-bearing meta-sedimentary rock unit of the Quesnel Terrane. FG Gold is a sediment hosted orogenic gold project on the northeast limb of the Eureka syncline. The gold-bearing rock, a ‘knotted’ phyllite, is the host rock for gold mineralization and has been traced for over the 3.5 kilometer strike length by drilling.
Surface mapping, surface geochemistry and geophysical inversion of airborne electromagnetic (EM) data suggests the knotted phyllite has a strike length of over 20 kilometer with potentially thickened regions occurring in the Eureka Syncline hinge zone. The figure below is a regional view to the northwest of the host rock potential of the Eureka syncline and that extends through Eureka Ridge and highlighting the tens of kilometers of exploration potential relative to the area of historical drilling.
Prior to drilling in 2020 by KORE Mining Ltd (the company from which Karus Gold was spun out in 2021), drilling at FG Gold largely centered on the Main Zone, tested the extent of gold mineralization along 3.5 kilometres of strike and to an average depth of less than 100 meters below surface. Mineralization is open at depth and along almost the entire trend. To date, over $15.0 million of exploration work has been completed on FG Gold, establishing a shallow historical gold resource(1) over a 3 kilometer strike length.
In 2020, over 7,400 meters in 23 holes were drilled to determine if gold mineralization extended at depth beneath the shallow historical drilling at the Main Zone. 2020 drilling was designed to test the hypothesis that high grade gold zones correlating to plunge lines within both limb and hinge zones, are extendable both at depth and along strike. The 2020 drill program was successful in opening up potential for a large-scale orogenic gold deposit extending far beyond the depth of historic drilling.
Detailed interpretation of the 2020 drill program validates the Company’s exploration thesis that structural controls generate repeating higher-grade gold vein corridors within the previously defined Upper and Lower zones at the FG Gold. The salient features of these high-grade gold corridors are outlined below.
Given an enhanced understanding of the orientation of these high-grade gold corridors the Company believes that the intercepts below define newly discovered high-grade gold corridors, the dimensions of which will be fully evaluated through further confirmation drilling.
Table of significant drill results:
The FG Gold property also hosts an epithermal gold system at the Bowl Zone and a potentially 3.5 kilometer by 1 kilometer gold-copper porphyritic intrusion at the Nova Zone. For more information see the technical report here.
2021 Exploration Program
The focus of the 2021 drill program at FG Gold will be to demonstrate continuity of gold mineralization along strike and further down dip to expand the overall footprint of gold mineralization at FG Gold. Drilling will be completed by upwards of three diamond drill rigs with a minimum of 15,000 m of drilling planned in 2021, subject to financing and permitting. The Company also plans to complete detailed geological mapping on surface to support the development of a robust geological model for gold mineralization, and along with grided soil and IP geophysical surveys, delineate additional areas of gold mineralization along a >20- kilometer trend, providing many opportunities for resource expansion and new discoveries on-strike and downdip. Figure 4 is a regional view to the northwest of the host rock potential of the Eureka syncline and that extends through Eureka Ridge and highlighting the tens of kilometers of exploration potential relative to the area of historical drilling.
In conjunction with 2021 exploration drilling at FG Gold, the Company will also initiate a review of the drilling that supported the historical resource area to design a drill program to validate historical drilling. This program, combined with an improved geological model on the controls of gold mineralization will form the foundation of a future resource estimate for FG Gold.