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Background

In 2015, in anticipation of stronger gold prices in the medium term, the founders of Provenance Gold Corp conducted an evaluation of gold properties with strong mineralization and major size potential with a focus on North America.

 

After sifting through and visiting a number of selected properties, a founder of Provenance Gold Corp was made aware of a promising Yukon property in the autumn of 2015.  After research and lengthy discussions with the owners, followed by a site visit in the spring of 2016, he recognized it was one of the best he had seen in more than 40 years of property evaluations. The property is in western central Yukon, Canada, in a region favourable to mining, and in an area where big deposits are being discovered.  Of further intrigue, the property has been held for over 30 years by the original discoverers of gold in the region, but hadn’t had significant exploration work within the bedrock or lode. The owners were content to operate a highly profitable seasonal placer operation, but had also acquired 25 square kilometers of carefully selected lode claims to cover the gold system, in addition to their placer operation. During his first visit to the property, Provenance’s lead geologist quickly recognized the major potential of the claims. There was convincing evidence that the ongoing placer activity was very near its lode gold source, plus bedrock gold was visible in key areas in a geological style and setting favourable to hosting large gold systems. He agreed the origin of the gold system is on the lode claims.

 

Shortly after the visit Provenance completed an option agreement on the lode claims now called the 2K Gold Property. Later in the summer of 2016, Provenance initiated exploration with the completion of a sampling and trenching program, which is reported in its current NI 43101.

 

The NI 43101 was prepared by an experienced independent Yukon geologist who visited the site and concluded it is a “property of merit”.   The summer 2016 field program consisting of rock samples from three trenches upstream of the current placer operation yielded gold content as high as 803 g/t Au, while the limited due diligence sampling by the independent geologist produced gold values ranging up to 420 g/t Au, and a continuous sample across a 1.8 meter wide zone that assayed 122.5 g/t Au. Analysis of the samples was done by the international ALS Laboratories in North Vancouver with assistance from their Whitehorse office.

 

Encouraging results were obtained in 2016 and early results from the 2017 program add to the company’s opinion that the property could host a significant gold deposit. Highlights from Provenance’s work on the property over the 2016 and 2017 field programs include the following:

 

  • Rock grab samples with values up to 420 g/t gold;
  • Trench and outcrop grab samples returning values up to 803 g/t gold;
  • Acquisition of additional claims within the area;
  • Confirmation of property-wide extent of gold system;
  • Completion of aerial photo coverage of the property and surrounding area;
  • Expansion of known gold targets and identification of new ones;
  • Completion of initial soil geochemical grids of key areas;
  • Completion of a National Instrument 43-101 technical report.

 

In late 2018, recognizing the need for another property offering year round work accessibility Provenance acquired its 2024 acre Silver Bow property in Nevada. The Company initiated a field program shortly thereafter in November of 2018 to better define the mineralization control geology of the silver and gold project near Tonopah, Nevada. In their field work the Company’s geologists reviewed new interpretations of the property’s geology and conducted limited surface sampling to help narrow the focus of a detailed mapping and sampling program now underway in 2019.  The work identified three key areas of focus for this follow-up program. The November work confirmed the viability of a previously recognized bulk tonnage target area in the southeastern part of the property. This mostly undrilled target contains few bedrock exposures, but the highly altered, structurally prepared and silicified outcrops surrounding the target zone are pervasively mineralized. Highlights from the first stage of sampling include:

 

  • 22 g/t gold
  • 74 oz/t silver
  • 49 oz/t silver

 

Only one sample was taken from a vein in the third area in the northeastern part of the property. The strength of the vein sample was encouraging enough to add this area to the sampling and mapping currently progressing for the 2019 season. The sample assayed 2.82 g/t (0.091 oz/t) gold and 648 g/t (20.8 oz/t) silver.

 

In April Provenance acquired further acreage adjoining its Silver Bow claims as a result of these encouraging results to date along with the integration of all the available historic information on the property with its ongoing field investigations. The Company has found that the historic information and new field work support the Company’s new interpretations of the underlying mineral system. The work also identified extensions of the mineral system that were confirmed in the field and staked.

 

With the completion of this phase of claim staking, the Company now feels it has secured all critical land that has been identified to date. Company geologists are planning to map the highest priority target areas with new sampling to better define drill targets. Drilling will then be conducted as soon as the initial field work is completed and proper permits to drill are obtained.