Building Value Through Discovery
Colorado Resources Ltd.

KSP Property

PROPERTY SUMMARY

Property: 59 claims covering 30,504 ha

Location: In northwest British Columbia approximately 15 km southeast of the past producing Snip Mine (1 million ounces of Au at a recovered head grade of 24.5 g/t Au from 1991 to 1999-- BC Minfile)

Owned: Colorado Resources Ltd. ("Colorado") holds a 100% interest in the Property subject to a 2% NSR (see news release August 17, 2017)

Target: High grade gold veins similar to the Snip Mine and Pretivm Resources Valley of the King deposit, as well as bulk tonnage copper-gold mineralization similar to Seabridge Resources KSM Project

Rock Type: Upper Triassic Stuhini Group and Jurassic Hazelton Volcanics and Sediment's intruded by Early Jurassic monzo-diorites

 

WORK BY COLORADO 

Drilling

2014 to 2017

- In 2014, 6 holes (totaling 791.0 m) were completed at Khyber Pass area. Results included: KSP14-003 returned 34.0 m of 2.98 g/t Au  including 2.4 m of 18.1 g/t Au.

- In 2016, a total of 59 holes (totaling 8,861.8 m) were drilled of which 53 holes drilled in Inel, 4 holes drilled in Khyber Pass and 2 holes drilled at Tami. At Inel, both high grades (INDDH16-029  with 1.0 m  of 165.5 g/t) and broad low grades (INDDH16-025  with 99.0 m of 2.11 g/t Au) have been reported.

In 2017, Colorado drilled 68 holes (totaling 11,824m) testing multiple targets within the Inel-Khyber and Tami Zones. The 2017 program was successful in identifying new discoveries at the Camp Porphyry, West Khyber and Tami Zones.  At the Tami Zone, the program outlined a new and encouraging gold-copper intrusive related system. 

Channel Sampling

- East Khyber Pass channel CH14-002 returned 15.0 m of 0.76 g/t Au and 0.59% Cu.

- Tami channel sample CH14-006A returned 8.0 m of 1.8 g/t Au and 0.32% Cu and CH14-006B returned 15.0 m of 2.94 g/t Au and 0.51% Cu.

- East of Tami channel sample CHTami-10 returned 28.8 m of 1.17 g/t Au and 0.15% Cu and ChipTami-11A returned 45.0 m of 0.45 g/t Au.

Soil and Rock Sampling

- From 2014 to 2017 Colorado has collected 1,590 rock and 2,813 soil samples.

- Highly anomalous gold, copper +/- molybdenum surface geochemistry and the interpretation of geological mapping have characterized several target alteration centres noted not only in the Inel zone but other areas of the KSP Property.

Geophysics

2014 to 2016

- 600 line km of airborne flown (magnetics).

- 12.5  km (at Tami) and 17.5 km (at Pins) ground mag survey,

- 10  line km IP and 47 line km mag (at Inel), 126 line km heli VTEM,

Geology

- From 2014 to 2016, 150 sq km of detailed geological mapping characterized the principle structural, lithologic and alteration signatures of many of the mineral occurrences in the KSP project area. That geological framework will be used to guide and direct more advanced exploration activities on several of the untested KSP target areas.  

 

PREVIOUS WORK

Historic work by previous operators identified 48 mineral occurrences (B.C Minfile) on the KSP property. Two of the most advanced of these are Khyber Pass and Inel.

Inel

  • 1,240 m of underground development and 192 surface and underground drill holes completed between 1984 and 1991,
  • High grade intercepts from the historical drilling include S116 (1989) with 7.3 m of 20.93 g/t Au; U171 (1990) with 7.4 m of 41.1 g/t Au and IS130 (1989) with 3.5 m of 423.81 g/t Au. 

Khyber Pass

  • 1,100 soil and talus fine samples collected over a 1,200 by 400 m area contained an average of 0.810 g/t Au with individual assays up to 60.0 g/t Au,
  • Historic drilling in this area has identified significant gold mineralization, for example GO85-03 with 74.7 m of 2.2 g/t Au including 3.0 m of 9.5 g/t Au and KB87-17 with 61.3 m of 1.83 g/t Au.

Other Significant Mineral Occurrences

- Tami Zone: (acquired from Teck Mining in January 2015). Historic soil sampling defined a 250 m x 800 m long > 350 ppb Au in soil anomaly. Rock samples from the area returned Au samples ranging from anomalous up to 10.98 g/t Au. Historic drill hole SR87-07 from the west end of the Au soil anomaly returned 208.2 m of 0.323 g/t Au from 1.8-210 m including 21.9 m of 1.99 g/t Au.

- Pins: Historic soil sampling has identified a moderate to strong gold in soil anomaly over a 600 m x 2,000 m area           contained within a larger 4,000 sq m area where prospecting has identified numerous sulfide containing quartz veins and veinlets.

- Sericite Ridge: Significant copper and gold values occurs within an alteration system measuring at least 1000 by 1500 m.

- Josh: Sulphide mineralization occurs in a quartz stockwork in a syeno-diorite intrusion; a 15 m composite grab sample taken in 1987 contained 11.2 % Cu, 186.6 g/t Ag and 5.3 g/t Au (BC Assessment Report 16855).

- Black Bluff: Skarn and porphyry related copper - gold mineraoiziton is associated with, calc-silicate alteration,  QSP-Potassic alteration and strong north trending structural zones. 

- A-J: At the AJ locale, gold is described as occurring within disseminated chalcopyrite and pyrite in sulphidic quartz veins associated with northeast structures or within calc-silicate altered zones in laterally persistent limestones. Gold assays up to 9.8 g/t over 2 m were returned from the Cave Zone, while values up to 50.95 g/t Au over 3 m where reported from the A-J Zone. (BC Assessment Report 20459). 

 

Cautionary Note

Investors are cautioned that the exploration target at KSP is an early-stage exploration prospect, conceptual in nature. There has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

Qualified Persons

Dr. Jim Oliver, Ph.D, P.Geo Company Chief Geoscientist is the Qualified Person as defined by National Instrument 43-101 who supervised the work program and preparation of the technical data on this website. 

QA/QC Statement

The 2014 samples were analyzed by Acme Analytical Laboratories of Vancouver, British Columbia (now Bureau Veritas Commodities Canada Ltd). Base metal assays were first determined using the AQ200 ICP-MS method, which reports results as parts per million (ppm). Any samples containing greater than 10,000 ppm copper, lead or zinc were analyzed by the AQ370 method, which reports results as percent. The gold assays were determined using the FA430 fire assay method which reports results in ppm and are equivalent to grams per tonne (g/t). Any samples returning greater than 10 ppm gold were analyzed by the FA530 fire assay method with a gravimetric finish. The analytical results were verified with the application of industry standard Quality Control and Quality Assurance (QA-QC) procedures. 

The rock samples reported by Colorado in 2015 were analyzed by Activation Laboratories Ltd of Kamloops, B.C for 68 elements using an Aqua Regia digest with an ICP-MS finish (Code UT-1) and for gold by fire assay fusion with an AA finish (Code 1A2).

The 2016 samples were analyzed by ALS Minerals of Vancouver, British Columbia. Base metal assays were first determined using the ME-ICP61 method, which reports results as parts per million (ppm). Any samples containing greater than 10,000 ppm zinc were analyzed by the Zn-OG62 method, which reports results as percent. Any samples containing greater than 100 ppm silver were analyzed by the Ag-OG62 method, which reports results as ppm. The gold assays were determined using the Au-ICP21 fire assay method which reports results in ppm and are equivalent to grams per tonne (g/t). Any samples returning greater than 10 ppm gold were analyzed by the Au-GRA21 fire assay method with a gravimetric finish. The analytical results were verified with the application of industry standard Quality Control and Quality Assurance (QA-QC) procedures.

The 2017 drill core samples were analyzed by ALS Global of Vancouver, British Columbia.

Drill core samples- Prep:

-          Crushing entire sample to 70% passing -2mm

-          Riffle split

-          Pulverize better than 80% passing 75 microns

Gold Assays:

-          Fire assay method (Au-AA25) reporting in part per million (ppm) (equivalent to grams per tonne( g/t))

-          Any samples >5 g/t, additional analysis Au-GRA21, fire assay with gravimetric finish

-          Any samples >10 g/t additional analysis Au-SCN21 screen metallic method

-          Samples with coarse visible gold, analyzed using Au-CON01 then Au-SCN21

Base Metals:

-          Analyzed by ME-ICP61 method, reporting in ppm

-          Any analyses that reaches overlimit are reanalyzed by Ore Grade Methods

 

The 2017 Geochemical Samples were analyzed by Actlabs of Kamloops, British Columbia.

Prep Rock Samples (RX1):

-          Crushed up to 80% passing 10 mesh

-          Riffle split

-          Pulverized to 95% passing 105 microns

Prep Soil Samples (S1):

-          Dry samples (60 degrees Celsius)

-          Sieve -80 mesh

Gold Assays:

-          Fire assay method (1A2) reporting in ppm equivalent to g/t

-          Sample returning >10 g/t are reanalyzed using 1A3, fire assay with gravimetric finish

Base Metals:

-Analyzed by ICPMS-UTI method, reporting results in ppm

-Selected analyses that reach overlimits are reanalyzed by ore grade methods