Weepah

Location, Infrastructure, and State of Exploration

The Project is defined by 264 federal lode claims on BLM land and one patented claim, which together comprise ~20 km2 of mineral rights. It is in Esmeralda county, 30 km southwest of Tonopah, NV and 18 km northeast of Scorpio Gold Corp’s Mineral Ridge mine (Figure 1). There is no permanent infrastructure on the Weepah project, however work is facilitated by access via paved state highways and well established and maintained dirt roads – power, materials and labor are all accessible nearby.  Relief on the property is overall gentle with outcrop exposure being limited to the few steep areas and within the pit itself.

The Property has produced 117,000 ounces of gold at grades between 3 and 6 g/t Au and has two main exploration targets that have only recently been consolidated into one package by the Company: thus the Company will be the first to explore the district as a single project.  The Property has 126 known exploration drillholes with the vast majority positioned solely in the known occurrences: step-out drilling from these occurrences has been limited, erratic, poorly documented, and often off-trend, especially in the intermontane basin south of the known occurrences (Figure 2: property map, Price, 2016). Many of the holes no longer have assays attached to them and/or are shallow rotary holes (Price, 2016).

A plethora of historical prospect pits, shafts and adits occur away from the known occurrences, yet there appears to have been extremely limited rock sampling of these occurrences in modern times: even pits that appear to be on trend with the existing mineralization have experienced markedly little modern sampling.

No soil sample surveys have ever been conducted, either in the intermontane basement that bounds the occurrences to the south, nor in the colluvial zones over existing bedrock.

Overview of The Opportunity

The Weepah exploration project offers a relatively unique set of opportunities. The Company can both step out on existing, potentially ore grade mineralization, thereby increasing the overall size of known mineralization, as well as discover new mineral occurrences by expanding surface geochemical sampling and by deducing the district scale controls on mineralization, something which has never been attempted before due to the fragmented property positions in the district (Price, 2016).

The known occurrences consist of both a shear zone hosted gold system (Weepah West) and a related sediment-hosted gold system (Weepah East), both of which are open at depth and along strike. Mining at the Weepah West shear zone, occurred between 1935 to 1939, when 57,000 open pit and underground ounces were produced at a head grade of 5.8 g/t. In 1986-7, an open pit mine produced approximately 60,000 oz. of gold averaging 3.1 g/t (Figure 3). Drill hole 86-1, drilled just down dip of the pit, hit intercepts of 16.6 m of 3.7 g/t Au and 4.57m of 10.4 g/t Au, illustrating that there are multiple splays on mineralization in the same structure (Figure 4). Drill hole WV-27, drilled the following year, hit 6.1 m of 8.2 g/t Au and 3.05 m of 3.1 g/t, 200 meters down dip from the pit.  A hole drilled through pediment one km to the south of the pit hit an intercept of 4.6 m of 3.5 g/t Au.  There are no holes along trend to the south of this intercept.

Less is known about the Weepah East Trend: although there are some historical shafts present, there is no record of previous mining.  As it is right on the edge of an intermontane pediment, the mineralization is poorly exposed, and drilling has been limited and erratic (fanned holes instead of grid drilling).  Mineralization is likely controlled by both low angle structure and by receptive carbonate host rocks, then by solely high-grade structures, which perhaps explains the lack of historical production.  Nevertheless, Weepah East has produced intercepts which would be considered ore in many modern open pit scenarios, including 27.4 m of 1.2 g/t Au, 10.7 m of 1.6 g/t Au and 38.1 m of 1.2 g/t Au, all drilled right from the surface.  A hole drilled 500 m to the south of these holes in intermontane pediment encountered 5.9 m of 0.8 g/t Au and 9.1 m of 0.9 g/t Au.  There are no holes south of this intercept along trend.

As well as having open mineralization in all directions on both trends, the Company believes that its best long-term opportunity is in being the first company to explore both trends simultaneously since the Property was consolidated in 2016, thereby giving it a fuller knowledge on the controls on mineralization and thus the ability to discover new zones. As mentioned above, the Property is extremely underexplored from both a geologic and surface geochemical standpoint and thus the Company plans to undertake a full gamut of geological mapping and geochemical sampling to unlock its full potential.  A detail of the Company’s complete Phase 1 exploration plans are detailed below.

Regional and Project Geology

The Weepah project is in the Weepah Hills southwest of Tonopah, NV in the central portion of the Walker Lane. The Walker Lane is a northwest-southeast oriented dextral shear zone situated in between the Sierra Nevada batholith to the west and the Basin and Range to the east. The Walker Lane is a long-lived structural discontinuity, subparallel to the San Andreas fault, and is associated with a series of gold and silver deposits that host over 52.6 M oz Au and 549 M oz Ag. The greatest concentration of mineral deposits are volcanic-hosted precious metal deposits (Roberts, 1966) but also include orogenic shear zone related gold deposits such as Mineral Ridge and Weepah (Claypoole, 2018). Mineral Ridge and Weepah are hosted in metamorphosed sediments and intrusive rocks that have been subjected to extensive folding, thrust faulting, low-angle detachment extensional faulting, and younger high-angle normal faulting.

Gold hosting metasediments at Weepah include Proterozoic rocks of the Wyman Formation, which consists of quartzites, quartz-mica schists, phyllites, calc-silicate rocks with an overlying subunit of deformed dolomite (the Reed Dolomite).  The Reed dolomite is itself overlain by Cambrian Campito Formation, consisting of interbedded siliciclastic rocks and quartzites, and the Poleta Formation, consisting of interbedded silty limestones, quartzite, and dolomite, as described by McKee (1968). Metamorphic grade seems to increase down section. This entire metasedimentary sequence is intruded by Mesozoic and Cenozoic rocks (Figure 5), including Cretaceous age quartz monzonites of the 85.3±4.3 Ma Lone Mountain series (John and Robinson, 1989) and plutons, diorite sills, silicic porphyry dikes and mafic dikes of the Weepah Complex (Sonderman, 1971).

The Weepah district is located in a southeastern plunging anticline cored by the granitic Weepah pluton. Structure at Weepah is characterized by broad flexures, minor thrusting and high-angle faults (Sonderman, 1971). Deep drilling of the Weepah shear zone west of the historic mine intersected the mineralized fault zone completely within the Weepah pluton (Price, 2016), indicating that shear zone development and mineralization post-dates magmatism. The brittle and often planar nature of the shear zone indicates that mineralization took place well after the intrusions had cooled. As such, the relative timing of mineralization may be similar to mineralization at Mineral Ridge, which postdates intrusive host rocks by ~15 Ma, occurring at 76.0±1.8 Ma (Claypoole, 2018).

The two known gold deposits at Weepah are; the Weepah West shear zone where the historic pit is located, and the Weepah East zone. The Weepah shear zone is a quartz-iron oxide filled, northeast-trending, dextral oblique slip shear zone dipping ~45° to the west. Gold occurs predominantly as free grains, (or within iron oxides) in a silicified gouge composed of quartz and altered country rock zone (Sonderman, 1971). The quartz is multi-episodic, some crushed by later continued movement on the shear zone, and some uncrushed, presumably post-tectonic.

The Weepah East zone is characterized as a near-surface, shallowly dipping, recrystallized carbonate or carbonate replacement horizon (Price, 2016). Less is known about Weepah East as there is no reliable bedrock and drilling has been limited (only RC/no core) and erratic (fanned holes instead of grid drilling). Mineralization at the Weepah East zone may be structurally controlled by one of two new faults zones identified during the Phase I exploration program. Surface geochemistry reveals these new faults to be associated with signature elements associated with gold and drill holes along the margins of these fault zones contain strong intercepts of gold mineralization. These indicators support the new conceptual model of mineralization along fault zones bounding the pediment.

Geologic mapping, rock chip sampling and soil sampling during the Phase I exploration program has identified two new target fault zones where mineralization is indicated (Figure 2). Pediment soil sampling has proven to be an important tool in this program, delineating surface mineralization through cover that correlates spatially with these newly identified faults.

Pediment soil sampling is designed to detect even the most subtle geochemical signature from bedrock and structures buried beneath the overlying pediment. Arsenic, thallium and gold can all be water soluble. In the proper conditions, such as fault zones that act as fluid conduits, these signature elements can be carried from their source, through pediment cover to the surface (Muntean and Taufen, 2006). These transported metals can be detected at very low concentrations when appropriate methods of collection and lab analyses are applied. The results of such pediment soil sampling have helped in discovery of large, buried, Carlin-type deposits, such as the Pipeline deposit in Nevada (Muntean and Taufen, 2006). Applying this method to the exploration program at Weepah, along with mapping and field observations has led the Company’s technical team to develop the two new fault zone targets shown.

Overall, the Phase I exploration program has been successful in redefining the potential for new deposit discoveries at the Weepah project.

Exploration Plans

Phase II of the Company’s exploration program will consolidate all historic data for re-interpretation based on the target concepts. The Company has logged and sampled seven historic core holes, many portions of which were previously unsampled (assays are pending). In addition, the Company’s technical team has re-logged rock chips from 29 RC holes as well as compiled data from 120 previously drilled holes into a 3-D database. A geophysical contractor is processing 14 kilometers of CSAMT data that had been obtained by a previous operator but not fully processed. When Phase II is complete, the Company will compile all results, including the new core assays in its 3D database to facilitate future drill targeting.

Communities and the Environment

The pursuit of environmentally friendly and socially responsible mineral exploration and potential development guides the efforts and activities of Eminent Gold. Eminent Gold and our partners understand the broad societal benefits exploration and mining, but only when the risks and hazards of disturbing the environment are managed through thoughtful implementation of sustainable practices. Eminent Gold strives to maintain the highest industry standards of environmental protection and community engagement at all of its projects.

Eminent Gold believes that sustainability includes pursuit of three mutually reinforcing pillars: environmental and cultural heritage protection; social and community development; and economic growth and opportunity. Eminent Gold assesses the environmental, social and financial benefits and risks of all our business decisions and believes this commitment to sustainability generates value and benefits for local communities and shareholders alike.

Ownership and Agreements

The Company will have the option to purchase 100% in the following:

(a)    The ten (10) unpatented claims known as the “Nevada Select Claims”;

(b)    The sixty-six (66) unpatented claims defined as the “Cordex Claims”;

(c)    The patented claim hereby described as the “Electric Claim”; and

(d)    certain data in the possession of Ely Gold on the Closing (the “Existing Data”)

There is a Net Smelter Royalty (NSR) of 3% on the Property.  The Company may make cumulative payments of US$2.5 million to reduce the royalties payable on the entirety of the Property to 2%. The Company is responsible for Property holding costs during the duration of the Agreement.

The total purchase price of USD $1,000,000 and 500,000 Navy Shares are payable as follows:

(a)   USD$50,000 Cash Payment upon entering into the Agreement (“Effective Date”);

(b)   The issue of 50,000 Navy Shares within 5 business days of the receipt of TSX Venture Exchange (“TSXV”) approval for the agreement.

(c)   USD$100,000 Cash Payment and 100,000 Navy Shares on or before the first anniversary of the Effective Date;

(d)   USD$200,000 Cash Payment and 150,000 Navy Shares on or before the second anniversary of the Effective Date;

(e)   USD$250,000 Cash Payment and 200,000 Navy Shares on or before the third anniversary of the Effective Date; and

(f)   USD$400,000 Cash Payment on or before the fourth anniversary of the Effective Date, upon which the Option Exercise will be complete (the “Option Exercise”).

Qualified Person

All scientific and technical information in regards to the Weepah Property has been prepared by, or approved by Justin Milliard, PGeo.. Mr. Milliard is a qualified person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects.

References

Claypoole, M. N., 2018, Mineral Ridge: A Late Cretaceous Orogenic Gold System in the Miocene SIlver Peak-Lone Mountain Metamorphic Core Complex [Master of Science: University of Nevada Reno, 124 p.

John, D., and Robinson, A., 1989, Rb-Sr whole-rock isotopic ages of granitic plutons in the western part of the Tonopah 1 by 2 quadrangle: Nevada: Isochron/West, v. 53, p. 20-27.

McKee, E., 1968, Geology of the Magruder Mountain area, Nevada-California: US Geol: Survey Bull, v. 1251, p. 716-726.

Price, B. J., 2016, NI 43-101 Technical Report WEEPAH GOLD PROJECT, for Ely Gold and Minerals, Available on SEDAR.

Roberts, R. J., Metallogenic provinces and mineral belts in Nevada, in Proceedings AIME Pacific Southwest Mineral Industry Conference1966.

Sonderman, F. J., 1971, The geology of the Weepah mining district, Esmeralda County, Nevada: University of Nevada, Reno.