Galleon Gold Corp. (OTC:PNCKF)

-Projects:

West Cache Gold Project:

The Property:

The West Cache Gold Project (formerly known as the Timmins Porcupine West Project) is located in Bristol and Ogden Townships in the Porcupine Mining Division , District of Cochrane, Province of Ontario. The property consists of 265 unpatented mining units and 11 patented mining claims located in the Bristol and Ogden Townships in the Timmins-Porcupine Mining Camp for a total of approximately 3,200 hectares. The property is bisected by highway 101 and can be accessed from the city of Timmins located 13 km to the east. The property is approximately 7 km northeast of Pan American SIlver’s Timmins West Mine and 14 km southwest of Newmont’s Hollinger Mine.

History and Geological Background:

The property has been explored since 1927 by numerous ground geophysical surveys and diamond drilling, Dome Exploration discovered and delineated a gold mineralized zone that is approximately 350 meters long and 45 meters wide. The zone strikes east northeast and dips to the north at 70 to 80 degrees. Drill programs by Teck Corporation, Cameco Gold and Tom Exploration Inc., have extended the mineralization to 350 meters of depth. Explor Resources (now Galleon Gold) intersected gold mineralization in 121 out of 126 holes drilled and in 64 out of 65 wedges.The gold mineralization to date appears to be associated with a major porphyry unit.

Strike length of the gold mineralization is greater than 2000 meters at depth. The continuity of mineralization continues to be confirmed and the structure remains open on strike and at depth.

The West Cache Gold Project has as a Target Model “The Hollinger-McIntyre-Coniaurum System.” The Hollinger-McIntyre-Coniaurum (HMC) System has produced a total of over 30 million oz of gold is spatially associated with the Pearl Lake Porphyry. The high-grade gold bearing quartz veins which hosted the bulk of the gold at the HMC occurred in the adjacent mafic volcanics, located outboard from the porphyry itself.

Dwyer Land:

The West Cache Dwyer Land is comprised of 8 patent claims, located in the Odgen Township, contiguous to the eastern boundary of the West Cache Gold property. This private land has been held by the Dwyer family for over 100 years, it was originally purchased by Frederick D. Dwyer as a gold prospect.

The West Cache Dwyer Land is on strike and only 600 meters from the proposed open pit location identified in the Company’s current West Cache Gold project development plans. With the acquisition of this private ground the Company has gained an additional 2 kilometers of strike potential along the Destor Porcupine Fault Structure corridor.

Neal Gold Project:

Geology:

Neal is a high grade gold-dominant discrete vein system with at least 5 veins known to date. Test mining in recent years from the top of the historic vein zones exploited near surface stockwork veining left behind by previous operators. Most of the veins are parallel and strike north-easterly with moderate southerly dips within a regionally extensive fault system, probably related to the nearby Trans-Challis fault zone. Veining consists of quartz- white mica- clay, with the better gold grades directly related to iron oxides after pyrite near surface and pyrite at depth. The primary host rock is a fairly uniform Cretaceous-age biotite granodiorite that is part of the southern margin of the extensive Atlanta Lobe of the Idaho Batholith. Tertiary-age bi-modal lamprophyre and rhyolite dikes intrude the same faults that host the vein zones at Neal; a common theme in many other gold mines in the region.

Property Description:

The Neal Gold Project is located near Boise, Idaho and has excellent access via 20 kilometers of improved gravel and dirt roads from Interstate-84. A 25-minute commute from Boise provides easy access to the many private and government services available in Idaho’s largest city. The rolling hills in the area are part of the Danskin Mountain Range, but are arid and mostly covered by sage and scrub-brush. Although one small underground gold mining operation is located approximately 4 miles on strike to the southwest from Neal, most of the industry in the immediate area is ranching related. Neal private property consists of 5 patented mining claims covering approximately 22.4 hectares (55.38 acres) and another 7 unpatented lode claims covering about 52.6 hectares (130 acres) located on Forest Service administered public lands.

Historic Underground Gold Mining:

The project site was the most productive gold producer in the Neal Mining District, with underground production from 1889 through 1941 sourced mainly from the Hidden Treasure, Homestake and Daisy Mines. According to US Bureau of Mines records, the Neal Mining District is estimated to have reported production of at least 30,000 ounces of gold, with most of this coming from the Neal property1.

Historic Exploration Drilling and Trenching:

In the 1989-1990 time period, Centennial Mining completed a reverse circulation drill program targeting near surface oxide gold mineralization that consisted of 190 vertical and 18 angle holes totaling 47,655 ft (14,525 m). Although this drilling was not the first at Neal, it was the first extensive program intended to define a resource for a contemplated open pit heap leach gold operation. The program was generally successful in identifying five vein zones and accessing near surface oxide potential.

Later work in the 2007-2013 timeframe by Aquasolum Consultants followed up key intercepts (Table-2) from the earlier Centennial program with additional trenching. This detailed surface trench work better defined vein and stockwork gold mineralization found in the earlier drilling and produced samples for metallurgical and mine development studies.

Recent Bulk Sampling:

In 2015, Neal Development LP started development work on an open cut exploration program at the Neal mine. This program was designed to provide adequate sample volume for further metallurgical and mill recovery work. The open cut produced a 12,900 ton sample of gold mineralized material that averaged 0.140 troy ounces per short ton (opt); this stockpile remains onsite. Under terms of the MOU, Sprott Mining retains the rights to the stockpiled material.

The Neal Mine Project is a fully permitted Mine Operation. An environmental reclamation plan approval, which becomes the operating permit, was issued for the Neal Gold Project on April 20, 2017 and a surety bond of $87,500 was posted allowing for exploration drill programs, underground development and shipping ore offsite. Any additional mining of the open pit will require an additional $87,500 be added by the operator.

The technical information contained on this webpage has been reviewed and approved by Thomas H. Chadwick, a Qualified Person under National Instrument 43-101 Disclosure Standards for Mineral Projects.

Plans for 2019-2020:

In the near term, Pure Nickel technical personnel will organize and assess existing exploration data from past operators and complete an updated geologic map and surface sampling program. Historic data will be combined with surface geology/geochemistry and any new drill data to better define underground vein targets. This is expected to allow for selective targeting during a follow-up drilling program later in the year.

Comments on Historic Drilling and Sampling:

The Company has not done sufficient work to verify historic drilling or sampling results. However, the Company considers that the historic information is relevant for early-stage project assessment based upon Pure Nickel’s due diligence work, which includes property visits and the review of historic reports, maps, and technical data.

Sources Cited:

1 Bennett, Earl H., 2001. The Geology and Mineral Deposits of Part of the Western Half of the Hailey 1° x 2° Quadrangle, Idaho, USGS Bulletin 2064-W, prepared with Idaho Geological Survey, Idaho State University and the University of Idaho: with a section on the Neal Mining District by Thor H. Kiilsgaard and Earl H. Bennet (pp 24-29).
2 Atlanta Gold Inc. news releases dated Dec 9, 2015 and April 26, 2017.

New Brunswick Properties:

Chester Copper Deposit:

The Chester Copper Property was formerly known as the Clearwater project and located about 15 miles to the southwest of the former Heathe Steele Mine and about 35 miles northwest of Newcastle was discovered by Kennco Exploration in 1955. The ore zones dip under the Clearwater stream, a tributary of the Sevogle River. Subsequently the claim group was acquired by the Chesterville Mines limited in the late 50’s who performed geophysical surveys and diamond drilling on the property which indicated a sizeable copper deposit. In 1966 the Sullivan Mining Group optioned the property and carried out 10,000 feet of Diamond drilling. In 1967 the Sullivan Mining Group exercised its option and formed the Chester Mines Limited. Their plan was to put the mine into production. Subsequently they completed 1700 feet of ramp and u/g development. By 1972 the price of Copper had fallen and the project was shelved

The Chester Copper Property now consists of a total of 114 contiguous mineral Claims units located in the southern edge of the Bathurst Mining Camp (BMC). It is located approximately 50 kilometres WNW of Miramichi City and approximately 70 kilometres SW of the City of Bathurst. The property is easily accessible from Bathurst via Highway 134 to Miramichi and an all-weather paved road to the property.

New Brunswick is the home to the No. 6 and the No.12 massive sulphide deposits (Brunswick Mines). The latter has been in continuous production since 1964 (to date, Feb 2013, 135,903,168 tonnes milled at 3.44 % Pb, 8.74 % Zn, 0.37 % Cu and 102 g/t Ag). The Brunswick deposits (No 6 and No 12) are situated in the Nepisiguit Falls Group of rocks in the Lower Tetagouche group of the BMC. There are 46 known VMS deposits in the BMC.

The Chester Property is known to contain both a copper deposit and a VMS deposit. There are 3 zones noted in the file to the main copper deposit, the Central Zone, the East Zone and the West or Copper Stringer Zone. Only the West Zone has been used for NI 43-101 resource calculation. The copper deposit has a Measured & Indicated resource of 712,000 tonnes grading 1.94% Cu, 0.09% Zn & 4.9 g/t Ag and an inferred resource of 920,000 tonnes grading 1.76% Cu (assayed for Cu only). Note 1

The additional claims are located on both the western and southern boundary of the Chester Property. The new claims located on the western boundary cover the western part of a detailed geological mapping, prospecting and soil sampling program that was conducted in 2011 and 2012. A copper soil geochemical anomaly was defined that covers an area approximately 800 m wide in an east-west direction by 1.2 kilometres long in a north-south direction. Additional prospecting found copper mineralization near surface in float and outcrop.

There appears to be numerous untested drill targets as shown on the soil geochemical surveys and previous geophysical survey. These were found to be within the Clearwater Stream Formation. It is anticipated that this new mineralization may be correlated down dip to the southeast and southwest of the know mineralization found in historical holes S-435 and S-436. These two historical diamond drill holes intersected very intersecting values. Hole #S-436 intersected 23.16 meters of 1.53% Cu, 1.55% Pb and 0.94% Zn, and Hole #S-435 intersected 20.85 meters of 1.43% Cu.3 The holes are approximately 140 meters apart and about 320 m in depth.

These “historical resource estimates” are not “current resources estimate”. The “historical resources estimate” and 0.5% Cu cut-off grade is based on a NI 43-101 technical report entitled “Technical Report Chester Copper Property New Brunswick Canada” dated May 30, 2008 (effective March 20, 2008) prepared by Robert C. Sim, P. Geo., and Bruce M. Davis, FAus IMM for First Narrows Resources Corp and filed on www.sedar.com by First Narrows Resources Corp on June 3, 2008. Mr. Sim was the independent Qualified Person as defined by NI 43-101, and was responsible for the “historical resource estimate”. Explor has not taken steps to identify on what work needs to be done to upgrade or verify the “historical resource estimate” as “current mineral resources” or “mineral reserve” and a qualified person from Explor or independent third party has not done sufficient work to classify the “historical reserve estimate” as “current resources estimate” or “current mineral reserve”. Explor is not treating the “historical resource estimate” as a “current resources estimate” or “mineral reserves”. At present, to the best of Explor’s knowledge, information and belief, there is no new material scientific or technical information that would make the disclosure of the “historical resource estimate” as stated in the “historical resource estimate” contained in the 2008 NI 43-101 report as inaccurate or misleading.Estimations were made using ordinary kriging with a nominal block size of 2 meters. The resource estimate was generated from drill hole sample assay results and the interpretation of a geologic model which relates to the spatial distribution of copper and silver. Interpolation characteristics were defined based on the geology, drill hole spacing and geostatistical analysis of the data. The resources were classified by their proximity to the sample locations and are reported, as required by NI 43-101, according to the CIM standards on Mineral Resources and Reserves.The mineral resource estimate was based on a 3-D geologic and mineralization model that integrates all exploration work on the project as of March 20, 2008. A rigorous quality control and quality assurance protocol was used on the project, including blank and reference samples with each batch of assays. All drill samples were analyzed by ICP at Activation Labs in Ancaster, Ontario, Canada. The 2006 and 2007 drill program and sampling protocol was managed by Ernest Brooks, P. Geo, CIM and F.G.A.C., the Qualified Person as defined by NI 43-101 for the Chester project. Assay quality control and quality assurance standards were managed by Mr. Sim and Mr. Davis.
Source of this information is from the New Brunswick Ministry of Energy and Mines – Mineral and Petroleum’s mineral occurrence database Reference No. 71. In 1966, Sullivan Mining Group became owner of the property under the name Chester Mines Limited. Details of Holes #S-1 to S-228 are found in Assessment Report 470750 and details of Hole #S-228 to S-438 are found in Assessment Report 470747.