The final phase of field exploration consisted of a field visit by Carl Schulze, an experienced Yukon geologist. He took a total of seven confirmation samples preparatory to completing an independent NI 43101 for the property. Six of his seven scattered samples contained strong gold values. His highest assay was 420 grams per ton gold.
NI 43101 Report – 2k Project
Three grab and composite grab samples by Mr. Schulze returned values ranging from 9.45 g/t Au with 89.5 g/t Ag, 0.666% As, 30.8 ppm Cd, 5.11% Pb, >1.0% Sb and 971 ppm Zn; to 420 g/t Au with 65.8 Ag, >1.0% As, 107.5 ppm Cd, 1.06% Pb, 0.415% Sb and 0.408% Zn (Appendix 3a). His most significant sample, a 1.8-metre chip sample uphill of the trenches returned a value of 122.5 g/t Au. Mr. Schulze also took an isolated sample considerably uphill of the trenches that returned a value of 49.3 g/t Au, 35.9 g/t Ag. His samples were spread across a ground distance of 1.5km.
A review of the first lode gold target strongly suggests the mineralization has a width of at least 750 meters and a length of several kilometers. The mineralization also appears to have significant thickness in repeating layers. Based on the large extent of the first mineralized area, Provenance believes the gold system is large.
About four kilometers to the northeast of the first gold exploration area, the placer values in two adjacent drainages spiked at points where the placer operators observed low-angle veining and bedrock alteration that contained
visible bedrock gold. In 1999, soil geochemistry survey lines in this same area also indicated a sizeable potential gold target. It was not followed up on at the time. The reported style of mineralization in the two drainages to the northeast suggest the possibility that the gold zones are related across a distance of several kilometers.
An observation in Mr. Schulze’s NI 43101 report suggests the mineralization he sampled across an area of 1.5km and at least several hundred meters vertically are part of the same overall gold system. If the similar style gold mineralization in the drainages 4km to the north and a historically mined lode gold vein approximately 3km to the southwest are part of one overall gold system, it is a very large system.
In his NI 43101, Mr. Schulze concluded:
“Results from the 2016 field program and the September 2016 field visit confirm that the 2K Gold Property qualifies as a “property of merit”. This is enhanced by the amount of placer gold production across a fairly limited aerial extent.”
He agrees with Provenance Gold Corp that the property has the potential to host a large gold system similar to the Fort Knox system in Alaska.
As a result of this encouraging information and the likelihood of a deposit of significant magnitude, Provenance Gold Corp will be launching an aggressive soil geochemistry and drilling program in the Spring and Summer of 2017.