WORK HISTORY

Staked within Ant cl 1 -384 (YD105953) in Nov/2010 by Anthill Resources Ltd. The Ant claims surrounds Strategic Metals Ltd.’s NAD property (Minfile Occurrence #106B 025) on three (i.e. east, south and west) sides. The Ant claims are part of Anthill Resources larger Einarson Project which comprises in excess of 11 000 quartz claims and covers parts of 8, 1:50 000 topographic map sheets.
 
In 2011 Anthill Resources carried out a reconnaissance stream sediment and moss mat sampling program over the claims. The program was part of a larger program carried out over the company’s entire Einarson Project. In 2012 as part of a follow-up exploration program, the company cut two soil grids (D1 & D2) over the larger occurrence area and prospected, geologically mapped and silt sampled streams draining the area surrounding the occurrence. Anthill Resources also collared six diamond drill holes (1 179 m) on the newly named Venus zone (D2 grid).
 
In 2013 Anthill Resources carried out detailed geological mapping, rock sampling and hand trenching over the Venus zone. The company also collared 10 diamond drill holes (2 444.17 m) on the Venus zone and expanded their grid based soil sampling program to cover the entire Venus Trend.
 
GEOLOGY

The occurrence area lies approximately 200 km east of Mayo in east central Yukon. Access to the area is usually by float plane to Anthill Lake (local name) and then helicopter to the various showings. The Einarson Project is comprised of over 11 000 quartz mineral claims that cover parts of 8, 1:50 000 topographic map sheets. A seasonal base camp was established at Anthill Lake which is located at approximately 11 km to the southeast (UTM 363635 E, 7087805 N) on topographic map sheet 105O 13.
 
The area was geologically mapped in the early 1970’s by S Blusson of the Geological Survey of Canada (1974 – 1:250 000 scale) as part of Operation Stewart. Blusson’s maps were used by most geologists and exploration companies until 2010 when the Yukon Geological Survey initiated a project to better understand the geology of the area following the discovery of Carlin-type gold mineralization on ATAC Resources’ Rackla Gold Project located to the north. M. Colpron et al. of the Yukon Geological Survey geologically mapped topographic map sheet 106C 01 (Mount Stenbraten – 1:50 000 scale) to the west in the summer of 2012 and was released in 2013 as part of a larger geological compilation map.  D. Moynihan, also employed by the Yukon Geological Survey, geologically mapped topographic map sheet 106B 04 (1:50 000 scale) in 2013 employing the same nomenclature used to the west. The map was released in 2014. In 2016 Moynihan released a geological compilation of the Rackla Belt and Colpron et al., released an updated Yukon wide geological compilation.
 
Anthill Resources staked the Ant claims to cover the projected eastward extension of the ATAC Resources east-west trending Rackla Gold project. The Ant claims also cover a 2001 Geological Survey of Canada silt sample collected from a creek draining the area west of the joint NAD and Ant claim boundary. The sample returned anomalous results for arsenic (110 ppm), mercury (13.9 ppm) and antimony (0.63 ppm) which are considered pathfinder elements for Carlin-type gold mineralization found to the north on ATAC Resources Rackla Gold project.
 
The occurrence is located approximately 400 m west of Strategic Metals Ltd.’s Aphrodite zone (Minfile Occurrence #106B 025) where soil and silt sampling has outlined a soil anomaly that hosts very strongly anomalous arsenic values with variably elevated gold, thallium, mercury and antimony values. The occurrence area is located within a wedge-shaped panel of Neoproterozoic (Ediacaran) to Lower Cambrian Algae and Narchilla formations which lie in an anomalous structural position (Moynihan, 2013). Geological mapping carried out by Anthill Resources’ geologists generally agrees with Moynihan except the company mapped older Yusezyu formation rocks including a mixed mudstone and limestone layer instead of Moynihan’s interpreted Narchilla formation. Anthill Resources may ultimately be proved right as recent mapping by Moynihan to the south in the Hyland River area has identified several never seen before carbonate layers within Yusezyu formation sequences (Moynihan 2015, 2016). Anthill Resources also mapped Gull Lake formation rocks to the north while Moynihan has mapped younger Old Cabin formation rocks followed by older Gull Lake formation rocks further north. 

In 2011 Anthill Resources collected 794 silt samples across their property. At approximately half of the collection sites (365) the company also collected moss mat samples. Limited rock sampling and reconnaissance scale geological mapping was also carried out. Sample results outlined 19 areas (A - S) containing two or more anomalous silt or rock samples. Area B covered the northern quarter of the Ant claim block northwards ending several kms north of the Stewart River. The area returned scattered anomalous values for thallium, mercury, arsenic and antimony most of which were located south of the Stewart River. A rock sample collected approximately 2.6 km southeast of the occurrence location (on topographic map sheet 105N 16) assayed 3 ppb gold, 242 ppm arsenic, 1 ppm mercury, 16 ppm antimony and 0.01 % zinc.
 
In 2012 Anthill Resources selected 7 areas for follow-up silt, grid soil sampling and detailed geological mapping and rock sampling. Area B was one of the areas chosen. At that time Anthill Resources renamed Area B, Area D. The company covered Area D with two soil grids (D1 & D2). Soil grid D1 covered a large creek which drains northwards into the Stewart River located approximately 6 km to the northeast. Soil grid D2 covered most of the area lying along the joint western boundary of the NAD and Ant claim blocks including the occurrence area. Geological mapping carried out by Anthill Resources identified a gently southwest-dipping, fault bounded, tabular dolostone unit approximately 150 m thick that is strongly altered and gold mineralized. This carbonate unit is interpreted to be part of the Algae Formation. The unit is overlain by a sequence of coarse grained, quartz-rich clastics and debris flows with minor limestone of Narchilla (?) or Gull Lake Formations (?).  A thick sequence of mafic flows and volcanics of the Old Cabin Formation underlies the dolostone unit. Three, east-west trending, gently southwest dipping thrust faults bound the different rock units at the occurrence area. Moynihan (2014) of the Yukon Geological Survey suggests these faults are part of the Dawson Thrust.
 
Rock sampling across the D2 soil grid returned very high gold values from several pods of strongly arsenian pyrite and “sooty pyrite” emplaced along the southwest limb of the dolostone unit. Anthill Resources renamed this area the Venus zone. Gold values ranged from 0.660 to 86.7 g/t with values exceeding 20 g/t gold from multiple samples of certain pods. Gold mineralization is associated with arsenic (up to 11.4 %), antimony (up to 1,040 ppm), thallium (up to 18.5 ppm) and mercury (up to 243 ppm). These pathfinder elements are typical of Carlin-type mineralization. Fracture controlled auriferous galena - sphalerite mineralization was identified in strongly silicified areas located along the hanging wall margin of the dolostone unit. A float sample returned 0.66 g/t gold, 1.27 % arsenic, 4.45 % lead, 19.0% zinc and 1.28 % antimony. 

Anthill Resources geologists also noted the presence of realgar and orpiment mineralization in the dolostone unit. The mineralization is most pronounced in the stratigraphically central area of the dolostone area, however other occurrences were noted on the southern and northern flanks of the unit. Sampling of massive to semi-massive realgar returned background to weakly anomalous gold values. Realgar and orpiment mineralization is used as a pathfinder for gold mineralization at ATAC Resources neighboring Rackla Gold project, however these minerals are not indicative of gold at the Venus zone.
 
Soil sampling outlined an area of very strongly anomalous gold (to a maximum of 8.0 g/t), arsenic and thallium values overlying the Venus zone, within the dolostone horizon along the southwest flank. Steep topography prevented sampling along the northern flank however sampling of lower elevations returned strongly anomalous values of gold, arsenic and thallium. Silt sampling on 100 m station spacing of streams covered by the soil grid returned sporadic high gold values to 0.371 g/t. Anomalous gold values were returned several km southeast of the grid, directly south of the southern boundary of Strategic Metals NAD claims. In 2012 Anthill Resources tested the Venus zone with 6 diamond drill holes (1 179 m). Five of the six holes intersected significant gold mineralization. The best results were obtained from hole D2-12-05 (occurrence location), where a 38.7 m intersection of dolostone returned 9.67 g/t gold (from 41.5 m to 80.2 m depth) including a 6.35 m intersection which returned 30.5 g/t gold (49.3 m to 55.65 m depth).
 
In 2013 Anthill Resources grid soil sampled the entire Venus Trend which trends east-west across the majority of the Ant claim block. The results outlined a 1 km long by 500 m wide zone centered over the Venus zone. Forty-five soil samples returned values greater than 100 ppb gold. The best arsenic values were centered over the Venus Central zone. Gold in soil values is mostly associated with arsenic, mercury and thallium and to a lesser extent with zinc. Nine rock chip samples collected from the Venus zone area returned assays of greater than 9.25 g/t gold with a high of 191.0 g/t gold. Arsenic values ranged from 1 % to 10 %. 

Ten diamond drill holes (2 444.17 m) were collared on the Venus zone in 2013. Anthill Resources designed the drill program to follow-up the strike extension of mineralization encountered in 2012. Two holes, D2-13-15 & 16 tested for mineralization northeast and southwest of hole D2-12-05 which returned the best result in 2012. Neither hole intersected significant gold mineralization. Hole D2-13-10 which tested the southern strike extension of hole D2-12-05, encountered altered and mineralized host rock, however gold values were low with the best interval returning 0.974 g/t gold over 6.37 m at a starting depth of 66.95 m. Despite the weaker results obtained in 2013, Anthill Resources concluded that the Venus zone warranted additional geological and geophysical exploration to better understand the mineralizing gold system present and to define additional drill targets.