Sail Pond Ag-Cu-Pb-Zn Property (NL, Canada)

The wholly-owned and easily accessible Sail Pond Ag-Cu-Pb-Zn property (“property”) features a unique style of sediment-hosted mineralization for Newfoundland, resembling examples in the Central African Copper Belt such as Kipushi located in the DRC. Wide-spread high-grade silver, copper, lead and zinc mineralization is associated with orogenic multi-generational quartz-calcite veins in altered calcareous sedimentary rocks that have undergone prolonged regional deformation. Examples of high-grade rock grab samples include; Sample 12591 (280 g/t Ag, 7.08% Cu, 9.40% Pb, 2.54% Sb), Sample 8333 (557 g/t Ag, 2.33% Cu, 4.26% Pb, 3.08% Zn, 0.53 g/t Au) and Sample 8329 (390 g/t Ag, 5.24% Cu, 7.60% Pb, 2.32 % Zn, 0.30 g/t Au). The property has never been drill tested or surveyed by modern geophysics.

The property comprises 739 mineral claims (18,475 Ha), located on Newfoundland’s Great Northern Peninsula, and is bounded by the Atlantic Ocean to the east (refer to Figure 1). The property is easily accessible by a network of forest resource roads and trails that transverse the center of the property, connected directly to paved highway. A number of local service centers are proximal to the property, notably the towns of Roddickton and Main Brook. The St. Anthony Regional Airport is located within 32 km from property boundary.

At the core of the property are the parautochthonous units of the Goose Tickle Formation, Table Head Formation, and St. George Group, which collectively compose the “White Arm Window” (refer to Figure 1). These units represent the transition from active to passive margin environments comprising rift-related siliciclastics to platformal carbonates deposited during the Early Cambrian to Middle Ordovician. Rocks within the property have experienced multiple deformation events during the Appalachian orogenic cycle resulting in a series of parallel north-east trending faults and west verging folds.

Currently, two primary zones of mineralization (i.e. South Zone and North Zone) have been defined by Altius’ exploration work during 2017 (refer to Figure 1). Both zones are roughly northeast orientated and strata bound, dipping to the east-southeast, and appear to be restricted to the western portion of the White Arm Window where a major thrust fault occurs. The surface expression of the South Zone measures at least 1.5 km in strike, whereas the North Zone measures at least 5 km in strike. The surface widths of both zones are variable, but are upwards of 200 m.

The South and North Zones are distinguished by thick, massive sequences of pervasively altered (i.e. silica ± calcite ± sericite) dolostone (or dolomitized limestone) of the St. George Group (possibly Catoche and/or Aguathuna formations) which seems to be the primary rheological (± chemical) trap rock for fluids in this region (refer to Photo 1). Commonly, these dolostones are folded and bounded by shear zones or thrust faults, and often deform brittlely. Conjugate quartz veins are the predominant host for the Ag-Cu-Pb-Zn (± Au, Sb) mineralization and are found almost entirely within sequences or blocks of massive dolostone. Quartz veins can constitute upwards of 30-40 volume percent of the exposed rock (refer to Photo 2), with individual quartz veins generally less than 10 cm in thickness but can reach up to 2 m in some locations. Mineralization has been observed in both sets of quartz veins.

Sulphide mineralization within the two zones is comprised mostly of chalcocite, tetrahedrite, sphalerite, galena and locally trace to minor amounts of pyrite, tennantite, fluorite and apatite. Mineralization is generally within, or spatially associated with quartz veins; as open-space infilling (clots) and as massive bands/veinlets (refer to Photo 3, Photo 4, Photo 5, Photo 6 and Photo 7). Mineralization also occurs within the matrix of dolostone breccias, possibly as solution breccia (Refer to Photo 8). Table 1 shows assay data from rock grab samples analyzed from the property to date (n = 214) which contain more than 1% Cu. Figure 2 and Figure 3 illustrates the distribution of all Cu, Pb, Zn, Ag, Sb in grab samples analyzed to date. Note that grab samples reported here may not be representative of the average grade.

Table 1: An excerpt of the assay data from the total number of rock grab samples collected and analyzed from the property to date (n = 214) with samples containing exceeding 1% Cu. The locations of samples within this table are plotted in Figure 5.

Sample No. Zone Cu (ppm) Ag (ppm) Pb (ppm) Zn (ppm) Au (ppb) Sb (ppm)
12591 South 70800 280 94000 2700 461 25400
8329 South 52400 390 76000 23200 304 441
10518 South 44600 453 31900 14000 145 10400
12806 North 39000 508 5900 8800 177 8900
8337 North 33500 516 8400 4500 103 441
12523 North 28600 363 1987 6600 203 8500
10519 South 24400 414 19500 38300 121 5800
12606 South 24100 357 6000 11500 141 5300
8333 South 23300 557 42600 30800 530 441
8332 South 21800 421 44400 22000 55 441
12574 North 19800 362 2174 3700 85 4500
12515 South 18400 83 9800 7200 142 5500
12529 North 13600 290 12200 3000 130 3600
12667 South 13300 247 25900 7000 60 2700
12666 South 13100 320 21400 6300 48 4600
10520 South 12800 256 5600 21400 45 3300
12617 North 12700 365 13300 5400 3 3500
13420 North 12700 279 1367 5400 43 3200
12701 North 12000 258 15200 1618 66 4100
12619 North 11400 218 3300 1417 55 2700
12651 North 11400 235 1597 6000 130 3500
12808 North 11000 256 17100 6000 93 3600

During 2017, Altius personnel implemented an exploration program of mapping, prospecting, B-horizon soil sampling, trenching and channel sampling. To date, the sample collection includes over 214 rock grab samples and 4000 soil samples. 3600 of the soil samples have been analyzed using Altius’ portable XRF and the results for Cu, Pb and Zn in soils are shown in Figure 4. A structural analysis within the immediate area of the South and North Zones was also conducted. A trenching and channel sampling program was recently completed and a summary of these results is anticipated in November. A total of 18 trenches have been excavated and the general locations are shown in Figure 1. Figure 5 shows the location of samples provided in Table 1 plotted above Cu in soil, geology, and trench locations for the South and North Zones. Furthermore, Altius is presently conducting a Characterization study of the mineralization, alteration and host rocks to gain a better understanding on the nature of the system.

Altius is continuing to evaluate the mineral potential of the property and consistent with its business plan, is concurrently seeking potential partners or alternative funding arrangements to advance this project.

Altius wishes to acknowledge the support of the Newfoundland Government’s Junior Exploration Assistance Program and the Newfoundland Labrador Geological Survey for its support of the project.

Quality Assurance and Quality Control

All rock grab samples collected by Altius personnel, with blanks and standards regularly inserted into the sample sequence by Altius personnel, were delivered to Eastern Analytical in Springdale, Newfoundland where sample preparation (drying, crushing and pulverizing) and analytical work was completed. For multi-element trace analysis, the rock powder from the samples was dissolved in four acids and analyzed by ICP-OES. Gold values were determined by 30 g fire assay and AA finish. For samples exceeding the limits of the trace analysis, an ore grade analysis was completed.

All soil samples were collected and prepared by Altius personnel. Soil analysis, predominantly for Cu, Pb, Zn, was carried out by Altius personnel using Altius’ pXRF. Blanks, standards and duplicates were regularly inserted into the sample sequence. QA/QC protocols for soil analysis was developed and monitored by Dr. Stephen Piercey of Memorial University.

Qualified Person

Roderick Smith, M.Sc., P.Geo., Chief Geologist for Altius Resources, a Qualified Person as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects, is responsible for the scientific and technical data presented herein and has reviewed, prepared and approved this information. Field work and sampling was also supervised by Roderick Smith.

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