Homestake Ridge

Overview and Highlights

The wholly owned Homestake Ridge Project covers approximately 7,500 hectares within the Iskut-Stewart-Kitsault belt in NW British Columbia. To date more than 275 holes, totalling more than 90,000 metres, have been completed on the property and multiple exploration targets remain to be tested.

Homestake Ridge Project Highlights

  • High-grade gold endowment located within the Golden Triangle
  • Established significant mineral resource
  • Situated closed to regional infrastructure: Northwest Transmission Corridor, deep water access and existing road within 6 km of the deposit
  • Mining friendly jurisdiction
Project Location Map
Project Location Map
Project Location Map

Location & Infrastructure

The Homestake Ridge Project covers over 7,500 ha and is located 32 km southeast of Stewart, BC, and 32 km north of the historic mining towns of Kitsault and Alice Arm.

There is no permanent infrastructure on the Project and labour and supplies can be trucked in to Kitsault via Highway 113 from the town of Terrace, which is serviced by three air carriers with daily scheduled flights. Access to the Project from the town of Kitsault is by boat/barge to the community of Alice Arm followed by service roads to the edge of Homestake Project area (6 km from deposit).

Infrastructure
Infrastructure
Infrastructure

Project Geology

The Property is located within the prolific Iskut-Stewart-Kitsault Belt which hosts several precious and base metal mineral deposits. Diverse mineralization styles include stratabound sulphide zones, stratabound silica-rich zones, sulphide veins, and disseminated or stockwork sulphides. Mineralization is related to Early Jurassic feldspar-hornblende-phyric sub-volcanic intrusions and felsic volcanism and commonly occurs with zones of pyrite-sericite alteration. Numerous genetic models can be proposed for the area and local deposits present a broad range of characteristics.

Drilling has outlined mineralization with three-dimensional continuity, and size and grades that can potentially be extracted economically. Project geologists have a good understanding of the regional, local, and deposit geology and controls on mineralization.

Homestake Ridge Project Geology
Homestake Ridge Project Geology
Homestake Ridge Project Geology

Reserves & Resources

The current Mineral Resource estimate on the Project as at September 1, 2017 is summarized below:

Mineral Resources by Cut-off

Auryn Resources Inc. - Homestake Ridge Project

Cut-off
(g/t AuEq)
Tonnage
(Mt)
Gold
(g/t)
Gold
(oz)
Silver
(g/t)
Silver
(Moz)
Copper
(%)
Copper
(Mlb)
Total Indicated
5.00.27410.4492,00086.70.80.251.5
4.00.3578.95103,00070.40.80.231.8
3.00.4827.44115,00057.10.90.212.2
2.00.6246.25125,00047.91.00.182.4
1.00.6665.93127,00046.31.00.172.5
Total Inferred
5.02.2837.91581,000164.512.10.157.7
4.03.1706.64676,000138.314.10.139.2
3.04.5225.38783,000117.117.00.1111.3
2.07.2454.00932,00090.921.20.1116.9
1.08.1693.67964,00085.722.50.1018.2
Notes:
1. CIM definitions were followed for Mineral Resources.
2. Mineral Resources are estimated at a cut-off grade of 2.0 g/t AuEq.
3. Assumptions to calculate AuEq values are described below in the text of this report.
4. Mineral Resources are estimated using a long-term gold price of US$1,300 per ounce, and a US$/C$ exchange rate of 1.2.
5. A minimum horizontal width of two metres was used.
6. Bulk density ranges from 2.66 t/m3 to 2.85 t/m3 depending on the domain.

Exploration

The 2018 exploration program focused on developing new gold and silver targets away from the defined resource in addition to a 2482 meter drill program at the South Reef target. Through this program, which included a full review of historical datasets, geologic mapping, stream sediment and rock chip sampling, two new, significant gold and silver targets were identified. These targets are approximately 10km northeast and 3.5km south of the previously identified high-grade resource. The northern target, Bria, is definied by high-grade gold and silver rock samples from mapped quartz viens that are believed to be related to an Eocene aged intrustrive rock. Maximum values from these samples are 11 g/t gold and 448 g/t silver, demonstrating the potential to find high-grade mineralization within the target area. The mineralized veins that were sampled are considered to be leakage structures from potential mineralized bodies associated with mapped intrusive rocks. Rock sample results are presented below in Table 1.

Table 1:

Bria Target Rock Samples*

Sample IDAu (g/t)Ag (g/t)Cu ppmPb ppmZn ppm
W72580511.052125481445203
W7259005.7717.0558.81770506
W7258984.2810983.9502041
W7258041.74199138.55430616
W7258020.8236.7845.728873
W7258990.75744836.585001480
W7258030.5579.1312624664
W7258970.2992011415240878
*Approximately 1-2kg of material was collected for analysis and sent to ALS Lab in Thunder Bay, ON for preparation and then to Vancouver BC for analysis. All samples are assayed using 30g nominal weight fire assay with ICP finish (Au-ICP21) and multi-element four acid digest ICP-AES/ICP-MS method (ME-MS61). Where ICP21 results were > 5 g/t Au the assay were repeated with 30g nominal weight fire assay with gravimetric finish (Au-GRA21). Where MS61 results were greater or near 100 ppm Ag the assay were repeated with ore grade four acid digest method (Ag-OG62). QA/QC programs for 2017 rock grab samples using internal standard samples, lab duplicates, standards and blanks indicate good accuracy and precision in a large majority of standards assayed. Grab samples are selective in nature and cannot be consider as representative of the underlying mineralization.

The southern target area, Kombi, has been defined by historical stream sediment samples taken in 2019, which Auryn’s technical team believes are robust due to the sample collection methodology and assaying methods. One of the high-priority areas at Kombi is defined by a two kilometer trend of gold-in-stream sediments within multiple adjoining drainage basins, demonstrating peak values of 0.91 g/t gold. This continuous trend of gold over multiple catchment areas coincides geologically with the Betty Creek Formation that also hosts the defined Homestake Ridge deposits.

The second high-priority area within Kombi has been identified through stream sediment samples from adjoining dranage basins that define a one-kilometer-long trend at the southern limit of the property. The anomalies are defined by strong gold, silver, copper, antimony and arsenic responses that coincide with the Stuhini group formation, which hosts the former producing high-grade Snip mine that produced approximately one million ounces of gold at an average grade of 27.5 g/t (1).

1. Source: https://www.skeenaresources.com/projects/snip

The 2018 2482 meter drill program at the South Reef target consisted of six drill holes, that did not produce any significan tresults, although sporadic gold mineralization was encountered in each drill hole as presented below in Table 2.

Table 2:

Intercepts Highlight 2018 – South Reef

Hole IDFrom (m)To (m)Interval (m)Au (g/t)Ag (g/t)
18HR-30634734923.111.6
18HR-30722222421.060.6
30230421.431.4
18HR-310747621.960.4
True widths of mineralization are unknown based on current geometric understanding of the mineralized intervals.

The 2017 summer drill program was designed to test 2 of 7 major target areas across the project with a focus on expanding the South Reef mineralized zone as well as the potential northwestern extension to the Homestake Main deposit. Drilling was discovery oriented which targeted new potential zones of mineralization or significant extensions. None of the drilling occurred within 500 meters of the Homestake Main and Homestake Silver deposits, leaving them open for expansion.

The drilling from South Reef demonstrated that the high-grade mineralization has a 15 - 20 degree shallow plunge to the northwest with the width of the structure and associated breccia’s increasing in the same direction. The shallow plunge observed at the South Reef main zone is similar to that observed at the Homestake Main and Silver deposits and represents an excellent opportunity to significantly expand mineralization on the project. Auryn also discovered a 600 meter long gold-in-soil anomaly that coincides with the northwest direction of plunging high-grade mineralization that remains undrilled demonstrating the highly prospective nature of this structural corridor.

Auryn’s 37 hole (14,850 meter) program at Homestake Ridge, which was completed under budget, represented its first field season on the project. Total drilling costs were approximately $400 per meter showing that this area of the Golden Triangle can be explored in an efficient manner.

Significant results from the South Reef diamond drilling are provided in the table below. No significant results were obtained from the Homestake Main extension drilling or other holes.

Significant Intercepts 2017 – South Reef

Hole
ID
From
(m)
To
(m)
Interval
(m)
Au
(g/t)
Ag
(g/t)
17HR-283137155181.292.3
including14114544.183.8
17HR-286138162240.621.5
17818682.671.9
including17818025.593.4
17HR-2935280280.512.2
276290141.231.6
including28629043.313.6
17HR-296622160.662.3
17HR-3015969104.121.8
including6163218.206.4
17HR-302134146121.453.3
including13814243.192.5
17HR-303258288302.003.5
including26426846.032.7
including278280211.806.0
17HR-3047080101.031.8
* Composite interval includes no less than 4m < 0.2ppm Au True widths are estimated at between 50 – 75% of reported intervals
Target Areas
Target Areas
Target Areas
South Reef Long Section
South Reef Long Section
South Reef Long Section

Communities and the Environment

Auryn Resources understands the shared value that mining can bring but also understands its risks and the importance of responsible and sustainable development. Our Company strives to maintain the highest standards of environmental protection and community engagement throughout all of its projects.

Auryn is focused on bringing this shared value approach to the NW British Columbia.

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