Kudz Ze Kayah Project

Kudz Ze Kayah Polymetallic Project
Prefeasibility Information May 2017

Summary highlights form the prefeasibility studies (PFS): An outline of the economic analysis completed for the PFS that demonstrates the Project is financially viable with the potential to generate positive economic returns based on the assumptions and conditions established for the PFS; other sections of the PFS demonstrate that the Project is technically and environmentally viable.

Prefeasibility Information Booklet

Location & Infrastructure

The Kudz Ze Kayak (KZK) Project is located east of Whitehorse in the Yukon Territory, Canada. The project is approximately 260 km northwest of Watson Lake and 115 km southeast of Ross River, and can either be accessed by road via the Robert Campbell Highway, or by air via the Finlayson airstrip. The project has existing road access via the Robert Campbell highway to the ice-free ports of Skagway and Stewart.

The KZK Project comprises four blocks of mineral claims; the KZK Claim Block (BMC – 100%) centred on the ABM deposit, the Pelly Claim block (BMC – 100%) located adjacent to the Wolverine mine, the Kona Claim block (BMC – option to purchase) centred on the Kona deposit, and the Wolf Claim block (BMC – 100%) centred on the Wolf deposit.

Geological Setting

The KZK Project is located within the Finlayson Lake District (FLD) of the Yukon-Tanana terrane, which underlies much of central Yukon and parts of Alaska and British Columbia. The Finlayson Lake District forms a crescent-shaped area ~300 km long and ~50 km wide that extends from Ross River in the north to Watson Lake in the south, and comprises Devonian-Mississippian volcanic, intrusive, and sedimentary rocks. It is bounded by the Tintina Fault to the southwest, and to the northeast by the Inconnu Thrust.

The FLD hosts numerous volcanic-hosted base metal sulphide deposits that collectively contain in excess of 50 Mt of base and precious metal rich sulphide mineralisation, most of which are located within the Big Campbell thrust Sheet. The rocks of the FLD are interpreted to have formed in a variety of tectonic settings, including rifted frontal arc, continental back-arc, and oceanic back-arc.

The only period of major historical exploration activity in the region was between 1994 and 1998, during which time most of the known deposits and occurrences were discovered. The presence of significant mineralisation throughout the district, and a lack of sustained exploration activity in the modern era, indicates that the district remains highly prospective.