Green Mountain Section

In 2018, the Company expanded its holdings in west-central Colorado by staking 62 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 in an arm-length transaction for a 100% ownership interest with no overriding royalties.

 

Green Mountain occupies a mineralized trend which is interpreted to be the faulted offset extension of the mineralized trend at Dawson, exhibiting similar geochemistry and rock types. As such, the Green Mountain section is considered to be highly prospective for gold. Discovered in ca. 1882, Green Mountain was mined for copper on a small scale from shallow shafts with a maximum depth 76.2 m (250 ft.) on a massive sulphide horizon, which forms the hangingwall portion of the mineralized trend. 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 ft.) and remains open at depth*. Zephyr’s studies suggest this sulphide horizon is analogous to that at the hangingwall or southern contact of the mineralized trend at the Dawson section. Research of historical data in Company files suggests the footwall zone below the hangingwall massive sulphides has not been tested for gold. The footwall zone in the mineralized trend is host to the gold mineralization at the Dawson section.

 

In addition to the mineralized trend marked by historic shafts, the Phelps Dodge report* reports notes a mineralized “western trend”, located northwest of the principal mineralized 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.

 

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 garnetiferous biotite gneiss 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.

 

In 2020, the Company received assay results from a dump rock grab sample that had been located in an earlier prospecting program. The rock sample graded 13.6 g/t gold and the rock type is similar to the principal rock type hosting the Dawson gold mineralization in the Dawson section, hence pointing to the high gold prospectivity of the Green Mountain section. With the assimilation of the newly acquired geological data, plans for 2021 include a geological mapping and sampling program focused on identifying gold in the footwall of the sulphide zone similar to that found in the Dawson Section. Special attention will be given to the area in the immediate vicinity of the historic Green Mountain copper mine. A drill program will be designed based on the results of field programs conducted in the 2021 field season. The timing of a drill program at Green Mountain has not been fixed.

* Exploration Report, Green Mountain Mine; J.M. Swallow, 1994.

The qualified person for this page for the purposes of National Instrument 43-101 is Terry Coughlan, P.Geo.. He has read and approved the scientific and technical information that forms the basis for the disclosure contained herein.