Green Mountain Section

In 2018, the Company expanded its holdings in west-central Colorado by staking 77 unpatented lode mining claims and acquiring one patented lode mining claim located approximately 3.2 km west of Dawson, forming the Green Mountain section of the Dawson-Green Mountain project. The one patented claim was purchased for US$25,000 in an arm-length transaction for a 100% ownership interest.

 

Green Mountain occupies a shear zone which is interpreted to be the faulted offset extension of the shear zone at Dawson and exhibits similar geochemistry and rock types to Dawson and as a result is considered to be highly prospective for gold. Discovered in ca. 1882, Green Mountain was mined on a small scale from shallow shafts with a maximum depth 76.2 m (250 ft.) on a massive sulphide horizon. Historical records indicate a small tonnage (1,187 t) of high grade material (12.6% copper, 3.8g/t (0.11 oz/ton) gold and 47.6 g/t (1.39 oz/ton) silver), was shipped direct to a smelter early in the last century. Modern exploration programs targeting base metals were carried out by Phelps Dodge between 1979 and 1984 and by Inco Ltd. between 1992 and 1994. Phelps Dodge core hole GM-2B drilled below the old workings intersected 1.4m (4.5 ft.) grading 18% copper, 4.3% zinc and 181.6 g/t (5.3 oz/ton) silver at a drill hole depth of 123.5 m (405 feet) and remains open at depth*. Zephyr’s studies suggest this sulphide horizon is analogous to that at the southern contact of the shear zone at the Dawson Gold section.

 

Geological studies by United States Geological Service (“USGS”)** at Green Mountain report at least seven old shafts over a distance of 328 m (1,000 ft.) along the Main Trend of the shear zone; rock types identical to those hosting gold mineralization at the Dawson Gold section, including the garnetiferous biotite gneiss (aplite); and gold values from dump samples ranging from < 1 g/t to 9.24 g/t. The inferred strike length of the shear zone at the Green Mountain section is 2,440 m (8,000 ft.).

 

In addition to the Main Trend marked by historic shafts, the Phelps Dodge report* notes a mineralized “Western Trend”, located northwest of the Main Trend. Two drill holes targeting Electromagnetic (EM) geophysical anomalies on the Western Trend intersected disseminated sulphides (no assays reported) with the second hole (317.7 m total depth), believed to be 15-30 m (50-100 ft.) short of the target horizon.

 

In total, Phelps Dodge drilled 13 diamond core holes totaling 2,172.6 m (7,126 ft.), targeting the copper-gold sulphide zone and geophysical anomalies. With the exception of the two drill holes on the Western Trend, seven of the remaining holes were drilled to the southeast, two to the northeast and one vertical.  Both the Main Trend and Western Trend at Green Mountain dip approximately 85° to the southeast to vertical as opposed to the 60° - 70° southeast dip at Dawson. It is believed that the footwall zone to the massive sulphide horizon remains largely untested. It is the footwall zone that is the host to gold resources at Dawson.

 

In addition, the steepening of the shear zone dip at the Green Mountain section suggests possible structural thickening which has positive implications for potential thickening of the zinc-lead-silver mineralization to the east into the El Plomo section. This is the area interpreted to have potential for a Broken Hill type deposit.

 

In 2018 the Company announced assay results of 17 grab samples collected on a reconnaissance traverse on the patented claim were very encouraging with five exceeding 1 g/t gold including one sample of malachitic garnetiferous biotite aplite which assayed 13.6 g/t gold. This rock-type is one of the principal gold hosts at the Dawson Gold section and points to the gold prospectivity of the Green Mountain section.

 

Grab samples are selected samples and are not representative of the mineralization hosted on the property.

* Exploration Report, Green Mountain Mine; J.M. Swallow, 1994.; true width approx.. 80% of intercept width

** USGS Open File Report 80-833, Raymond & Sheriden, 1980.