HWY 37 – Kingfisher Metals

In March 2023, Kingfisher Metals signed two definitive option agreements to consolidate the 362 km²copper-gold project. HWY 37 consists of two properties – previously known as Ball Creek East and Hank – with two four-year options to earn a 100% interest in each property.

HWY 37 covers a broad area of porphyry Cu-Au and epithermal Au-Ag mineralization and alteration, with the same mineralization age and scale of alteration as the Treaty Creek-KSM-Brucejack district.* The project includes three open deposits: the Mary Cu-Au porphyry, the Williams Cu-Au porphyry, and the Hank Au-Ag epithermal vein system. Deeper level porphyry targets are common to the east and in lower elevations including the early-stage Cliff, ME and DM areas. Higher elevations and western regions of the project are host to a trend of Au+/-Cu systems from south to north: Rojo Grande, Hank, Valley, Ridge, and Rainbow.

* Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property

Both the Stewart-Cassiar Highway (37) and the 287 kV Northwest Transmission Line pass through the eastern portion of the HWY 37 project. The main areas of interest are within 9-15 km of Highway 37 and power.

Helicopter staging is available at the Burrage airstrip 4 km to the east, on Highway 37. The project is within the traditional territory of the Tahltan First Nation, with a communications agreement in place.

Only 42,429 metres of drilling has been completed at the consolidated HWY 37 project. This includes 13,506 metres at the Mary porphyry, 6,095 metres at the Williams porphyry and 21,623 metres at the Hank epithermal target.

Early 1900s

Limited placer gold prospecting and production

1960s and 1970s

Exploration for porphyry deposits by Newmont, Southwest Potash, Stikine Exploration, Great Plains Development and others.

1971

Great Plains mapping and sampling identifies 900-metre long zone of pyrite-chalcopyrite-molybdenite mineralization along the base of the Cliff Zone

1972

Great Plains soil geochemical survey shows a 800-metre Cu-Mo soil anomaly over the Mary Zone; IP survey over the grid shows a chargeability high attributed to +4% sulphides

1980

GRC Exploration discovers 4-km long gossan at Hank

1983-1989

Lac Minerals stakes claims around Hank, defines large alteration zones, including Rojo Grande, the Lower Alteration Zone (LAZ) and Upper Alteration Zone (UAZ)

1989

Placer Dome geophysical surveys define a 1,000 m by 1,500 m copper-gold porphyry system at Mary

2005

Paget Resources stakes ground, discovers Rainbow Zone through mapping and sampling

2006

Paget drilling at the Mary porphyry returns 219.58m of 0.21% Cu and 0.29g/t Au in BC06-03

2011

Paget drills Rainbow target and returns 91.43 m of 0.76 g/t Au

2013

Paget sells Ball Creek property interest to Orogen Royalties predecessor Evrim Resources

2017

Golden Ridge drilling traces mineralization over 1.1 km of strike at the Hank (Lower Alteration Zone), intercepts include 60.27 m of 2.14 g/t Au in HNK-17-008 and 78.23 m of 0.54 g/t Au, 0.21% Pb and 0.45% Zn in HNK-17-007

2018-2019

Golden Ridge drilling at Williams returns 318.73 m of 0.42 g/t Au, 0.34% Cu in HNK-18-013 and 380.5 m of 0.22 g/t Au and 0.28% Cu in HNK-WZ-19-01

2019

Golden Ridge drills step-out at Mary of 291.5 m of 0.48 g/t Au and 0.14% Cu in MZ-19-01

2022

Kingfisher Metals enters into option agreement of Hank and Ball Creek projects with Golden Ridge Resources and Orogen Royalties, consolidates into HWY 37 Project

The HWY 37 Project is within the Stikine terrane of Northwest British Columbia and is underlain by the Stuhini and Hazelton groups. Mineralization spans porphyry to epithermal deposit types and is related to Early Jurassic Texas Creek Intrusions which are also responsible for mineralization at the Treaty Creek-KSM-Brucejack District. The northeastern region of the project is underlain by Eskay-equivalent Iskut River Formation, favourable for VMS mineralization.

The footprint of alteration on the project is at a similar scale and age as the Treaty-KSM-Brucejack district although exploration maturity is much younger at HWY 37. The KSM project alone is host to the largest undeveloped gold resource globally distributed among four linear porphyry centres.*

The Company notes that mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the HWY 37 Project.

* Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property

The Mary Au-Cu Porphyry deposit (Minfile 104G 018) was first drilled in the 1970s, with continued campaigns through the 1990s and 2000s also referred to as ‘Main zone’ or ‘Ball Creek’ porphyry. The drilled regions of the porphyry system are marked by unusual low angle metal patterns in Au and Cu. The projection of the low angle metal patterns remains untested to the south along trend, where the most recent drill hole from 2019 intersected 0.5 g/t Au, 0.1% Cu over 291.5 m from 15.5 m (BCK-MZ-19-01).

The Mary deposit lies within a ~6 x 6 km porphyry alteration footprint, yet the scale of the deposit and historical drilling represents a small and shallow percentage of the altered rock. The high gold:copper ratio, the absence of bornite, and the structurally-controlled character of mineralization are common features of upper level to flanking porphyry systems. The mineral zone of the Mary deposit is characterized by a resistivity high body, with a similar low angle shape. The resistivity is interpreted to reflect high quartz and K-feldspar in the alteration zone. This resistivity feature extends at depth to the south to form a bulbous subvertical anomaly, similar in size and shape to a more classic mid- to deep-level porphyry body. At the deposit-scale, a zonation from a gold-rich domain at the shallowest levels grades downward to a copper-rich domain at depth.

The Williams Cu-Au deposit (Minfile 104G 042) was first identified through Cu-Au soil geochemistry and coincident airborne magnetics. The porphyry was discovered through hand stripping overburden on the magnetic anomaly in 2017 and drilled the following year. The copper-gold body is drill delineated to ~550 m depth starting from surface. Monzonite porphyry at Williams is altered to K-feldspar-quartz-biotite-magnetite-bornite-pyrite-chalcopyrite. The geophysical fingerprint for the Williams deposit is highly magnetic due to the presence of magnetite in mineralized material and high chargeability associated with sulfides (pyrite, chalcopyrite and bornite).

Low angle metal patterns at Williams and the presence of a chargeability anomaly lateral to the Williams porphyry reflect a similar pattern as the Mary deposit and those at KSM and Treaty.* Future drilling step-outs will target the continuity of lateral copper-gold systems at comparable levels to Williams

The recent Williams porphyry is the first discovery at the project made from modern geophysical datasets. Several coincident magnetic-soil geochemistry anomalies still exist in the larger Hank-Williams footprint in regions without drilling or surface sampling.

*Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property

The Hank epithermal Au-Ag system (Minfile 104G 107) was discovered in the 1980s within an alteration footprint that spans over 6 km x 3 km. The Hank deposit is a comparable age and setting as the Brucejack mine, one of the highest grade mines in the world, and both are classified as intermediate sulfidation type vein systems.* Prior drilling (21,663 m) is mostly confined to shallow depths of less than 200 m. The Hank deposit is comprised of two historically drilled gold zones: the low angle upper gold horizon (also ‘Pit’ or ‘Upper Alteration Zone’ or ‘UAZ’) and NE-striking lower gold trend (also ‘Lower Alteration Zone’ or ‘LAZ’). The majority of drilling has focused on bed-parallel shallow targets in the upper gold horizon with limited testing for structural feeders and steeper gold zones.

The most recent drilling at Hank (2017-2019) was the first to test deeper holes and intercepted higher grades than seen before including visible coarse gold. The first holes to test below the upper gold horizon intersected 11.6 g/t Au over 20 m (HNK-18-010) in 2018 in the new ‘Boiling Zone.’

Future drilling at Hank will focus on resource drilling in known deposit areas as well as structural feeder zones. The most important structure, the West Hank Fault strikes NW and is parallel to structural fabrics in the altered rock as well as trends in gold soil geochemistry. Of the 120 historical diamond drill holes at Hank, all were drilled in a northwest-southeast geometry, parallel to this structural trend. Future targeting will explore a wider range of drill azimuths to cross, not parallel these NW trending features.

AuEQ values were calculated the following metal prices: Au = $1900.00/oz, Cu = $4.00/lb, and Ag = $25.00/oz. No current or historical metallurgical work has been completed on the mineral deposits within the Project and as such recoveries are assumed to be 100%. The formula used to calculate the equivalent values for the porphyry targets is AuEQ g/t = Au g/t + (Cu % * 1.4436) + (Ag g/t * 0.0132). The formula used to calculate the equivalent values for the epithermal targets is AuEQ g/t = Au g/t + (Ag g/t * 0.0132).

*Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property

Mary Porphyry Root Zone

Between Mary and Cliff porphyry centres is a large untested resistivity anomaly coupled with flanking chargeability high domains which are coincident with low magnetism. This geophysical signature is considered to be the idealized deep level porphyry response. The resistivity body (>850 Ωm) is interpreted to reflect a potassic-altered porphyry root zone and measures 600 x 600 m in plan view and measures 800 m vertical starting from 200 m, open at termination of the 3D inversion.

District-scale vertical metal zonation from high gold values on ridges to highest copper in valleys is present throughout. A conceptual root zone is inferred to have high relative copper compared Mary due to the deeper level. The geophysical anomaly indicates that the root zone target is larger in vertical and lateral scale than Mary. The presence of low angle metal patterns at Mary suggest that the copper-rich root zone may lie lateral to the deposit, as opposed to directly below.

A comparable system at KSM (Mitchell and Snowfield deposits) grades from low copper at upper levels (Snowfield deposit), into high relative copper grades at the root zone levels at depth (Mitchell deposit). In this example, economic gold is present throughout the ~1.5 km vertical extent of the system without significant zonation in grade. Bornite zones are commonly located at depth in porphyry systems, and at Mitchell-Snowfield the highest gold and copper body is located at depth with bornite. The absence of bornite at Mary coupled with unusually high gold:copper ratios indicate significant exploration potential for a copper-rich porphyry at depths below and flanking the Mary deposit.*

*Mineralization hosted on adjacent and/or nearby properties is not necessarily indicative of mineralization hosted on the Company’s property

Cliff Porphyry

The Cliff gossan is part of a ~4 km-long Cu-Au-Ag-Mo soil anomaly on trend with the Mary deposit. Mapping identified a significant porphyry alteration footprint flanking an outcrop of potassic-altered stockwork. Although terrane limitations have hindered characterization of the trend, the continuation of the gossan can be observed several hundred meters from the stockwork outcrop.

Hole BC06-01 bottomed in 0.11% Cu over 80.62 m and ~170 m from a large magnetic anomaly. The untested magnetic anomaly at Cliff is centred on a large gossan and lies below mapped potassic alteration on surface.

ME Porphyry

South of the Mary and Cliff porphyries, separated by a glacially eroded valley, is the ME porphyry target (Minfile 104G 042). Historical work mapped a large area of disseminated sulfide in outcrop, and in 2019 a very high tenor Au-Ag-Mo-Cu soil anomaly was identified below treeline. The soil anomaly is highlighted by 11 soils with greater than 0.5 g/t Au.

Two historical holes targeted the ME porphyry below the mapped disseminated sulfide outcrops and at a much lower level than the 2019 soil anomaly. The ME porphyry alteration and soil geochemistry patterns reflect a tabular geometry, comparable to the low angle metal patterns at Mary. Drill targeting will delineate the core of the soil anomaly, upslope of previous drilling.

Rainbow Gold

The gold-rich quartz breccia and stockwork were discovered at Rainbow, or ‘Rainbow North,’ (Minfile 104G 255) in the early 2000s. The first-ever drill hole intersected 0.76 g/t Au over 91.4 m from surface in 2011. The outcrop showing is surrounded by broad gossan and anomalous Cu-Au geochem. This early-stage discovery has a drill footprint of only ~250 x 50 m. Future drill targets at Rainbow require ground geophysical surveys to target below widespread glacial till cover rock.

Ridge Gold-Copper

The Ridge target (Minfile 104G 256) is on trend and south of Rainbow, defined by a Cu-Au-Mo-Ag soil geochem anomaly that measures 1800 x 2000 m and is open to the north, east, southeast and northwest. Significant soil sampling gaps limit interpretation of lateral scale of the target. Surface grab samples grade up to 59.3 g/t Au. The Ridge anomaly was tested on the western margin of the soil anomaly, west and away from the soil anomaly in 2011.

Further surface geological work and soil sampling will outline the large-scale zonation patterns required for drill targeting.

Rojo Grande Gold

The Rojo Grande Au-Ag gossan (Minfile 104G 107) is a large alteration area host to quartz-alunite-dickite-pyrite, part of a high sulfidation-type gold system. High sulfidation deposit-types form at upper levels of the porphyry-epithermal system and can be situated vertically above porphyry systems at depth. A 500 x 900 m zone of anomalous arsenic and mercury in soils was identified in the 1990s, indicative of the highest levels of the hydrothermal system. The target represents significant vertical exploration potential for both epithermal and porphyry type mineralization.

Regional Porphyry Targets

Numerous regional targets are identified by large soil geochemical anomalies that are coincident with mountain-scale gossans, or colour anomalies. Gossan is commonly a product of the exposure of sulfide minerals widespread in porphyry-epithermal systems to air and water. The widespread presence of gossan is interpreted to roughly reflect the alteration footprint of target areas.

Ground geophysical surveys have identified new untested anomalies flanking the Williams deposit and south of the Hank deposit (unnamed target 5 and 9).

Airborne magnetic surveys flown in 2014 and 2018 identified ~600 m diameter circular magnetic anomalies that coincide with magnetite-bearing potassic-altered rock in outcrop at both Mary and Williams porphyry deposits. Several new porphyry targets have been identified with a comparable circular magnetic signature: unnamed targets 1, 2, 3, 4, 5, 6, 7 and 8.

The SW Copper Trend is a significant 5 x 2 km copper-molybdenum-silver soil anomaly to the southwest of the Mary porphyry system and the Hank-Rainbow epithermal gold trend. The large-scale anomaly is located only 2 km west of the Hank deposit and 3 km west of Williams. Infill soil sampling and prospecting is required to outline causative mineral centres.