AUX Resources Inc. (OTC:AUXRF)

AUX is a gold-silver explorer that has consolidated a commanding land position in one of the most richly mineralized regions in the world. We are committed to creating shareholder value by applying our geological expertise in the quest for large-scale discoveries.

AUX is focused on the Stewart Camp, at the southern end of the Golden Triangle, an area that has been overlooked by modern explorers after several big discoveries attracted attention further north. AUX has spent over a decade consolidating a large land position and is conducting some of the first comprehensive exploration in this part of the Golden Triangle.

AUX is a gold-silver explorer that has consolidated a commanding land position in one of the most richly mineralized regions in the world. We are committed to creating shareholder value by applying our geological expertise in the quest for large-scale discoveries.

AUX is focused on the Stewart Camp, at the south of the Golden Triangle, an area that has been overlooked by modern explorers after several big discoveries attracted attention further north. AUX spent a decade consolidating a large land position and is conducting some of the first comprehensive exploration in this part of the Golden Triangle. Each project was acquired for its specific geological merit. For example, some of the properties were acquired where historic production or documented occurrences provided solid evidence of gold/silver mineralization in a geological setting permissive of large-scale deposits.

The Golden Triangle region of Northwestern British Columbia is one of the most richly mineralized areas in the world. The gold endowment equals that of Nevada’s Carlin Trend, generally recognized as the largest accumulation of gold in the Western Hemisphere.

The Golden Triangle’s tally of gold ounces represents only half of the contained metal value, as the region also hosts an equivalent value in silver, copper, lead, zinc and other metals.

The Golden Triangle is at a much earlier stage of exploration than the Carlin trend. Over time, the delineated metal endowment has the potential to rise significantly as exploration turns up new discoveries.

The Northwest BC deposits are dominated by large porphyry copper-gold deposits, but the region also hosts a variety of other deposit types. For example, Eskay Creek, a volcanogenic massive sulphide (VMS) deposit, produced 3 million ounces of gold and 160 million ounces of silver from ore with a spectacular grade of 49 g/t gold and 2,406 g/t silver. That deposit was so rich that Barrick transported the untreated ore to a smelter in the United States.

Pretium Resources production from its Valley of the Kings epithermal vein deposit in 2017. Several drill intercepts at VOK exceeded 10,000 grams per tonne, which is 1% gold, an astonishing concentration, when the average grade of a gold deposit globally is less than 1 g/t. One interval returned more than 40,000 g/t (www.pretivm.com).

The Golden Triangle is the central part of a much more extensive mineralized district that also encompasses several large deposits south of Stewart and extends beyond the northern border of British Columbia.

Please visit Northwest BC Geology 101 to get a high-level geological overview to understand how the area has become so richly endowed with metal.

-Georgia project:

Located on Portland Canal tidewater, 18 km south of Stewart;
Gold discovered in the valley as early as 1912;
Gold mining in the1920s and 1930s produced roughly a kilogram of gold;
Work from the 1970s to 2010 focused almost exclusively on the old gold mine;

2010 mapping showed the mine to be located in the periphery of an intensely deformed zone including sheared intrusions of the Early Jurassic Texas Creek Plutonic Suite which represents a large, gold bearing hydrothermal system;

2010 airborne survey delineated a 1 km² zone of an anomalous conductivity coincident with the mapped zone of intense defamation and probably caused by a blind, conductive target beneath the zone;

A targeted synthetic aperture radar study (SAR) has identified 2 structural targets near the margins of a large intrusion of Texas Creek plutonic suite;

The larger of the SAR targets is surrounded by small gold-bearing mineral occurrences worked in the 1920s and:
These targets, lying outside the immediate mine area, have not been explored for more than 30 years; some have never been explored.The Georgie River Project (GR) is located at Portland Canal tidewater, in the watershed of the North Georgie and East Georgie Rivers, 18 km south of Stewart. It comprises 4 main areas:

1. The Georgie River area immediately east of the Canal including the newly acquired Exdale Property and the Hume Creek deformation zone; 2. The legacy Gamebreaker tenures to the southeast; 3. The Georgie Girl anomaly to the south and: 4. The area of the old mine workings, 75% optioned to Decade Resources Ltd.

All three areas in the GR Project are intimately associated with intrusions of the metallogenic, gold bearing Texas Creek plutonic suite. On the northeast edge of the main Georgie River area is a 7 km contact with the early Jurassic (Texas Creek) Bulldog Creek Pluton. On Colling Ridge are numerous exposures of Colling Ridge porphyry, equivalent in age to the Bulldog Creek Pluton. Lastly, the Outram Lake porphyry and the Gamebreaker area are equivalent in Early Jurassic age to the Bulldog Creek and Colling Ridge intrusions.

The remaining component​ required for an economic gold deposit is rock disrupted by folding, shearing, volcanic or hydrothermal brecciation. An abundance of such disruption occurs in each area within the GR Project, in part determined by old-fashioned geological mapping, in part determined by cutting edge analysis of synthetic aperture radar data. This area is therefore highly prospective for intrusion related gold deposits related to the Texas Creek Plutonic Suite (TCPS), analogous to other large deposits in the Golden Triangle.

-Independence project:

The property contains mostly andesitic flows and tuffs of the Hazelton Group, crosscut by multiple diorite and granodiorite dykes. Dykes are commonly associated with the mineralized veins and shear zones; veins are beside or within the dykes. The northwest striking shear zones contain brecciated to laminated quartz-barite-magnetite-jasper veins +\- pyrite +\- chalcopyrite +\- pyrrhotite +\- sphalerite +\- galena. 2019 grab samples from historic adit #1 returned assays of up to 10.7 g/t Au, 85.30 g/t Ag, and 2.9% Cu.

2020 Field Work

Detailed mapping was done at historic trenches and adits to better determine controls on mineralization. Chip sampling was then completed at four different historic adits and trenches over a total of 24 m, results are pending. During field work the historic drill collar locations were confirmed and surveyed using a differential GPS, the historic logs will be used to develop a model of the mineralized system.

-Silver Crown project:

The Silver Crown property consists of sedimentary and volcanic units of the Hazelton Group, where the Betty Creek and Mount Dilworth Formations gently folded and dipping the north west. These are then unconformably overlain by siltstone to mudstone sedimentary beds of the Spatsizi Formation. Prospective mineralization occurs in a large vein system generally striking north through the property with a length of at least 1.6 km dipping very steeply to the north-west. Veining is seen outcropping in both the Spatsizi and Mount Dilworth Formations. Veins are polymetallic with strong sulphide mineralization of pyrite, galena, sphalerite +\- chalcopyrite +\- trace malachite. 2019 grab samples from the vein system produced assays of up to 9.28 g/t Au and up to 1.4% Cu.

2020 Field Work

During the 2020 field season approximately 102 channel samples were taken at ~40 m intervals covering 0.5 km strike of the most prospective surface outcropping of the vein system.

2020 Field Work

During the 2020 field season approximately 102 channel samples were taken at ~40 m intervals covering 0.5 km strike of the most prospective surface outcropping of the vein system.

Field mapping was also conducted to produce a more detailed understanding structural and lithological controls on mineralization; this helped confirm historic mapping of the vein system 500m to the north. Mapping was also completed surrounding the Iron Cap showing to better asses the area as a future target. This data is being compiled into a detailed map/model which will then be combined with the assay results of channel samples and outcrop grabs to delineate future drill targets.

-American Creek property:

District scale potential for gold/silver and base metal deposits similar in style and scale to: Premier Mine (less than 10 km west), Brucejack (30 km north), Red Cliff (immediately adjacent to the west) and Red Mountain (20 km southeast). Several individual targets are discussed separately below.

Paved Stewart Highway (37A) and electrical transmission line cross the property; town and deep-water port within 20 km

· Situated in a major north-south structural corridor extending from the confluence of the Bear River Valley and American Creek;

Contains several high-grade past producing precious metal mines;

American Creek corridor recognized as highly prospective for intrusion related Au-Ag deposits (Brucejack);

Dominant land position in the corridor.

AUX holds a dominant land position in the lower American Creek corridor. The extensive American Creek property package encompasses multiple targets, extending from the important 3-way structural intersection that marks the confluence of the upper Bear Valley and American Creek and extends 13 kilometres along American Creek.

Three past-producing high-grade silver mines (Mountain Boy, Terminus and Ketchum) are located in close proximity to each other along this corridor and all near 1000 metres elevation. The working hypothesis is that the high-grade silver zones represent the upper portions of extensive hydrothermal systems, with the lower portions of the system(s) underlying those high-level expressions.

AUX considers this area to be underexplored, especially given the presence of the nearby past-producers, the prospective geology enhanced by more modern interpretations and the encouraging results in the region. Drilling by Pretium Resources Inc. (www.pretivm.com) on their adjacent property included holes targeting their American Creek Zone, within 4 kilometres of the AUX property and produced significant values of gold and silver within that zone. AUX’s target areas were acquired based on the Company’s unique knowledge of the geology of the area, with a focus on prospective early Jurassic intrusions.

AUX and Mountain Boy Minerals Ltd., with adjacent properties on the west side of American Creek, are conducting a cooperative exploration program. The multiple mineral occurrences on both sides of American Creek are now seen as related to an extensive and robust mineralizing system extending along American Creek.

For the first time the lower American Creek area has been unified and is being looked at with comprehensive modern exploration across geological units without the constraints of property boundaries. Results from decades of previous work were augmented with AUX fieldwork and geophysical surveys. This approach has revealed and continues to produce exceptional geological insights to advance these various targets.
-Bear Pass project:

6,400 hectares

TARGET: District scale potential for multiple types of commodities & deposits

INFRASTRUCTURE: Electrical transmission line and paved Stewart Highway (37A)

Presence of (metalliferous) Early Jurassic (Texas Creek) intrusion in the Bear Pass area;

Large areas of intense pervasive alteration suggesting an altered cap at the top of a very large system;

Abundant evidence of large, continuous faults and shear zones, channels for mineralizing fluids and:

Alteration and mineralization seen along these continuous channels over a large area of ground in the Bear Pass area therefore:
A large land package prospective for intrusion related gold deposits has been assembled and:Co-operation of AUX and Mountain Boy Minerals in exploration of their mutually held large, prospective area of the Golden Triangle.

Drill permitting is underway and planning for drilling is a follow-on to a year’s work by the AUX geological team. Compilation of 100 years of historic exploration and production results laid the foundation for last year’s field program, which was conducted by a five-person geological team. That work identified a mineralizing system which is inferred to be the same age as that at the producing Brucejack Mine, 48 km to the north, and geologically similar to that at the historic Silbak-Premier Mine, 20 km to the southwest. The core of the system, known as the Bear Pass Pluton, was examined using isotopic age measurement and other techniques and AUX determined that it is one of the Early Jurassic intrusions, with exceptional potential to generate and host precious metal deposits and which are associated with the majority of gold-silver mineralization in the Golden Triangle.

The Bear Pass has a long history of mining and exploration, beginning in the early 1900s. Numerous gold-silver and base metal occurrences were explored, with several being developed into mines. In the early days, access was by packhorse or on foot, so that only exceptionally high-grade deposits were exploited. Exploration, until recently, was constrained by the fractured ownership, with titles to more than 100 parcels being locked up in the form of Crown Grants from the early 1900s until recently. AUX, over a 12-year period, secured much of the ground that was previously covered by these Crown Grants, and recently augmented its holdings based on the emerging geological interpretation.

The significance of the Bear Pass Pluton was not previously recognized because of this diverse, small-scale mineral tenure ownership; coordinated exploration was not possible between the numerous small parcels. Last year, the AUX geological team, working under a cooperative exploration agreement with Mountain Boy Minerals, carried out the first-ever comprehensive exploration program in the Bear Pass region. The recognition of a Texas Creek intrusive unit is but one of the geological insights gained from that program.

-Lower Bear project:

3,836 hectares

TARGET: Precious metal (gold-silver) shear-hosted and deletional veins, intrusion related

INFRASTRUCTURE: New electrical transmission line across property and paved Stewart Highway.

Highly prospective property in the area of the Portland Canal shear zone
Located between the historic, past producing mines of Dunwell (Lower Bear River valley) and Silbak Premier (Salmon River valley)
Features the metallogenic Texas Creek Plutonic Suite
Historic, subeconomic (trace amounts of) placer gold
Three unexplored geophysical anomalies in bedrock beneath the Bear River gravels
AUX's Lower Bear Project extends from the Stewart town limit to 12 kms up the Bear Valley, within 3 km of the Premier Mine. Included is AUX's 100% owned Lower Bear tenures and the Bay Silver property, newly optioned from Tudor Resources Corp. and Silver Grail Resources Ltd. (see news release August 27th, 2018). In essence, AUX controls the east side of the Bear River Ridge, with the Premier mine to the west of the ridge and the Dunwell, Ben Ali and Sunbeam Mines immediately east.

The chasm of the Bear River exposes a section through the Coast Mountains as deep as or deeper than that of the Salmon River. The country rocks are the same fertile section as that underlying the Salmon River; quartz-poor intrusions very similar in texture and mineralogy to those of the Texas Creek Plutonic Suite are present throughout this section. The Dunwell Mine, to the immediate east of the Lower Bear property, was third only to the Silbak Premier and Porter Idaho mines in silver production during its mine life.

The Premier mine, the abundance of Crown Granted mineral claims and numerous workings over the course of nearly 120 years amply demonstrate the valley’s potential. Early explorers were hindered by gravel cover in the valley and by the steep, heavily forested cliffs on either side.

Modern explorers faced complex claim situations, including the legacy Crown Grants. As consolidation of mineral rights continues and modern exploration tools are employed to see through the problems of terrain and surficial material, realization of the enormous potential of the Lower Bear area will accelerate.

AUX has begun the first comprehensive program in this highly prospective area by conducting a field program in 2018 and integrating the results with its store of geological and geophysical data.

* Ascot Resources Ltd., Premier-Dilworth Gold-Silver Project, NI 43-101 Technical Report, March 31, 2014.

2,204 hectares
TARGET: Precious metal (gold-silver) volcanic exhalative (Eskay Creek style)
INFRASTRUCTURE: Electrical transmission line across property, 3.5 km from Tide airstrip and the Granduc all-weather road

Tide North is just 3.5 kilometres from the Tide airstrip on the road from Stewart to Premier and Scottie Gold that and continues from Tide airstrip to the Granduc Mine.

The property was acquired by AUX for its potential to host an Eskay Creek-style deposit. Conductivity anomalies, detected during a 2009 airborne geophysical survey commissioned by AUX are consistent with conductive strata of the Salmon River formation presented in a north-westerly trending syncline across the property.

A 2014 diamond drill hole intersected a an unexpected thickness of intensely carbonaceous Salmon River formation including thin, stratiform sulphide mineralization and thin beds of sedimentary breccia containing clasts of banded pyrite. The drill hole did not intersect the target, basal contact of the Salmon River formation with underlying, sulphide-bearing rocks of the older Lower Hazelton group. The casing remains in the collar and the hole can therefore be extended to the target in the future.