Castle Property

Property Summary

Property: The Castle property (formerly known as Kinaskan-Castle) includes 53 mineral claims covering 19,269 Ha. This includes the Moat Option, which was acquired by Colorado through the takeover Buckingham Copper Transaction (August 20, 2019).

Location: Property adjoins the Tatogga Property of GT Gold Corp, which includes the Saddle North Cu-Au and Saddle South Au-Ag deposits.

Ownership: Colorado Resources Ltd holds a 100% interest in the claims on the Property, wherein certain claims are subject to a 2% NSR. In addition, he Moat claims are subject to an Option Agreement whereby Buckingham (now Colorado) may earn up to 100%, subject to an NSR royalty.

Target: Porphyry copper-gold and high-grade gold-silver veins.

Rock Type: Underlain by Upper Triassic, Stuhini Group volcanic and volcanoclastic rocks intruded by numerous Late Triassic to Early Jurassic aged stocks.

Work by Colorado

Between 2013 and 2014, Colorado conducted prospecting programs on its Kinaskan Property (exclusive of the Castle claims) as well as in 2013, conducted a 208 line km helicopter-borne high resolution aeromagnetic and radiometric survey covering the west and northwest portion on the Property.

In February 2017, Colorado acquired 100% interest in the Castle gold-silver-copper property, amalgamating the Castle Property into its Kinaskan Property. In August 2019, the Moat Option was added through the Buckingham transaction. The consolidated property is now called Castle.

In September 2017, Colorado Resources commenced exploration work on the Kinaskan-Castle Property with focus on the area east of the historical Castle drilling, along the Castle Alteration Zone (“CAZ”) also known as the Castle-Saddle Trend. Colorado collected 856 soil samples east and south of the Castle mineral occurrence and 191 rock-grab samples along the 5km CAZ. Results from both soil and rock sampling show both anomalous values for gold and copper when they often track the CAZ.

In addition, Colorado geologically mapped 10 square km The work suggests that the rock alteration is associated with enhanced gold and copper geochemistry. An 11km line IP survey, although prematurely terminated due to weather, suggest strong chargeability responses on a single line approximately 1,500m east of the historical drilling. Colorado also flew 150 line km of airborne magnetics.

In 2018 Colorado completed additional IP lines to the east of Castle, defining a chargeability anomaly over Castle East, with associated Cu, Au and porphyry pathfinder elements.

In late summer 2019, exploration field surveys began within high-priority portions of the 19,256 hectare property. Geological, geochemical and geophysical surveys are focused on three partially defined targets that require additional geochemical and/or geophysical work to bring to the drilling stage. In addition, work will cover areas that have received limited to no previous exploration activity, particularly on the eastern portions of the property adjacent to the boundary with GT Gold Corp.

In addition, an initial, 1500 m diamond drilling program was laid out on the Castle East target for September 2019. Castle East has not been previously drilled but has well-defined, coincident geochemical and geophysical anomalies in a geological setting similar to Saddle North and other porphyry deposits in the district1. Although it is starting late in the field season, this small drill program will provide important geological and structural information to help guide future exploration on the property.

 

Previous Work

Since the 1960s, the area west of Lake Eddontenajon has seen several reconnaissance exploration programs consisting mostly of soil, silt, and rock sampling. This work resulted in some substantial discoveries in the area including:

  • The GJ, Donnelly and QC occurrences, copper-gold porphyries on Skeena Resources’ Spectrum-GJ Property*.
  • The Gordon Vein on the north side of Quash Creek is a gold-silver vein system, located about 3.5 km north of the QC porphyry Skeena Resources’ Spectrum-GJ Property*.
  • The Castle prospect, a gold-silver-copper porphyry, located in the central part of Colorado Resources Castle Property.


Castle Prospect

In the 1980’s, Teck worked the western portion of the Castle Property before conducting an 11 hole (1190.3m) drill program testing the surface gold showings and an intense IP anomaly in 1988. Teck drilling found high-grade gold-silver mineralized zones.

In 2012 and 2013 West Cirque Resources drilled 10 holes (3,640 m). Drilling identified both broad porphyry related gold-copper mineralized zones as well higher grade  structurally controlled veins, for example:

· DDHCA12-04: 150m of 0.35g/t Au, 1.59g/t Ag, 0.09% Cu,

· DDHCA13-03: 2m of 8.92g/t Au 129.95g/t Ag, 4.0% Cu.

 

Castle-Saddle Trend

The newly interpreted Castle-Saddle trend crosses from west to east for 6.5 kilometres across Colorado’s Castle property onto GT Gold’s Tatogga property. The trend is defined geologically by a zone of structural disruption, pervasive quartz-sericite-pyrite (QSP) alteration and local potassic alteration that follows an elongate intrusion of Lower Jurassic monzodiorite and monzonite. This trend includes several known gold-silver vein and copper-gold porphyry occurrences including Castle, Castle Central, Castle East, A9 and Tuk on Colorado’s Castle Property and Saddle South and Saddle North on GT Gold’s Tatogga Property1. Deposits can be identified with kilometre-scale geochemical, magnetic and Induced Polarization (IP) chargeability anomalies.

The exploration potential of the trend is demonstrated by the Saddle North discovery of GT Gold. Diamond drilling by GT Gold has intersected long intervals of porphyry copper-gold mineralization exemplified in hole TTD112 that intersected 0.70 g/t Au, 0.44 % Cu, 1.09 g/t Ag over 685 metres from 21 to 706 metres, including 0.91g/t Au, 0.55% Cu, 1.34g/t Ag over 500 metres from 206 to705 metres1 (GT Gold news release of July 17, 2019).

 

Cautionary Note

Investors are cautioned that the exploration target at Kinaskan 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.

*This website contains information about adjacent properties on which Colorado has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company’s properties.

 

Qualified Persons

The above technical information has been reviewed and approved by Michael Cathro, M.Sc., P.Geo., a Colorado Director and a qualified person under NI 43-101.

 

QA/QC

The 2017 samples from the Kinaskan-Castle Property were analyzed by Actlabs Kamloops, British Columbia. Soil samples were prepared by the S1 method, drying (60o C) and sieving (-80 mesh), save all portions. Rock samples were prepared by the RX1, method crush (<7kg) up to 80% passing 10 mesh, riffle split (250g), and pulverized to 95% passing 105 microns, save all portions. Base metal assays were first determined using the total digestion ICP and ICP/MS UT-1 method, which reports results as parts per million (ppm). The gold assays were determined using the 1A2 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 1A3 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.

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