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Canadian Exploration Company Focused on Developing Exploration Assets in British Columbia

Overview

Since 2008, the Company has consolidated a previously fragmented historic mining camp with mineral claims covering approximately 180,000 contiguous acres in South-central British Columbia, in the historically productive Republic-Greenwood Gold District, abutting the border with the United States.

The Republic-Greenwood Gold District has historically produced an aggregate of more than 6 million ounces of gold (“Au”) prior to Grizzly’s acquisition of the Greenwood Project. The Greenwood Project also sits less than 10 kilometres (“km”) north of the Buckhorn Gold Mine, Kinross” producing gold mine in the US, which had a 1.2 million ounce (“oz”) gold resource at 16 grams/tonne of gold (“g/t Au”) at start up in 2010, and less than 50 km north of the Golden Eagle Project, having greater than two million ounce gold resource. Based on compilation, assessment, and exploration work conducted by the Company, Grizzly believes that a large portion of the Greenwood Project lands over a continuation of the same geological structures as these two mines.

Greenwood Ket 28 Map

The Greenwood project consists of a number of Company managed exploration projects and the Kinross Option:

  1. Kinross Option
  2. Ket 28
  3. Dayton
  4. Motherlode

Greenwood map and drilling

Please see the NI 43-101 Technical Report on the Greenwood Project, dated November 26, 2013.

Greenwood Map Kinross Past producers

Kinross Option Exploration Program

On September 23, 2015, the Company entered into an agreement (“Kinross Option”) with a subsidiary of Kinross Gold Corporation (“Kinross”) whereby the Company granted to Kinross the option to earn a 75% interest in certain mineral claims within the Company’s Greenwood Gold Project, covering approximately 27,000 hectares (approximately one third of the area comprising the Greenwood Gold Project), by completing US $3,000,000 in exploration expenditures, with a minimum of 3,000 metres of diamond drilling, including a minimum of 750 metres of diamond drilling and expenditures totaling US $750,000 by September 23, 2017 (which has been completed). In order to earn its 75% interest, Kinross must complete the expenditures within five years of signing the Kinross Option. Provided Kinross completes the option, the Kinross Option provides that the Company and Kinross shall subsequently enter a joint venture with dilution provisions. Upon being diluted to a 10% interest, the diluted party’s interest will convert to a 2% net smelter royalty. The Kinross Option primarily covers mineral claims within the Midway, Sappho, verlander and Attwood blocks.

Kinross has completed small ground exploration programs in 2015 through 2018 and the Company expects that Kinross will continue to earn in to the option in 2019.

Kinross undertook a planned 1,200 m drill program at the Midway area during July and August, 2018, to continue the proof of concept drilling at the Midway Epithermal Target intersected in 2017. Proof-of-concept drilling in 2017 intersected silicification, alteration, anomalous geochemistry, and minor quartz veining in 2 out of 3 holes along strike, warranting further follow-up exploration. Further details of the 2018 results will be provided from Kinross once logging, sampling and assaying is completed.

The 2017 exploration program focused primarily on core drilling at the Midway and Mt Attwood-Overlander target areas. In addition, surface sampling and geological mapping were carried out at the Midway, Attwood West and Evening Star target areas. A total of 1,129 m of core drilling was completed in 7 holes, with 3 holes at the Midway target area and 4 holes at the Mt Attwood – Overlander target area. Hole 4 at the Mt Attwood – Overlander area, targeting the Penny/Milo vein complex, was lost prior to intersecting the targeted vein. KG Exploration completed approximately $US$761,520 worth of exploration since inception. Accordingly, Kinross has met its second anniversary obligations pursuant to the Kinross Option.

Kinross geologists hypothesize that the Midway Epithermal target is an Eocene-aged epithermal system developed within Triassic clastic sediments and limestone, and Jurassic (possibly) hornblende diorite intrusions, all unconformably overlain by Eocene Kettle River Formation sediments and Marron volcanics.

An approximately 3 m thick blanket of massive silica (locally banded, brecciated and vuggy) occurs at the basal Eocene unconformity. Remnants of this silica blanket occur in outcrop, intermittently over a 1 x 1 km area, in some places replacing Triassic limestone. The massive silica contains elevated gold (Au) (to1.175 ppm) as well as locally anomalous arsenic (As), mercury (Hg) and antimony (Sb). Near the eastern end of the (known) silica exposure, up to 15% marcasite occurs as disseminations within the silica, and as cm-scale clasts that exhibit internal banding. This showing is interpreted as representing a hydrothermal vent intersecting the unconformity.

Widespread argillic alteration and more local silicification occur in the footwall of the unconformity. Two separate zones of alteration and veining have been discovered: The western zone is a north-trending 200 m long by 50-75 m wide zone of silicification, with peripheral argillic alteration centered on a north trending fault zone marked by a narrow band of listwanite. Multiple narrow (up to 0.5 m) chalcedonic quartz (+/-quartz breccia) veins (up to 4.2 ppm Au) occur within the broader zone of silicification. A second similar zone of alteration and veining is located 200 m to the east. The target areas were further delineated via a large Au-Cu-Ag +/- Hg, Sb, Se, Ba soil anomaly over the exposed epithermal system.

Rock chip and drill hole results indicate predominately argillic, and lesser propylitic alteration. Kaolinite dominates the argillic suite. The strongest zone of alteration is a north-trending 200 m long by 50-75 m wide zone of silicification near the irregular clastic/intrusive contact centered on a north-trending fault zone. Multiple narrow (to 0.5 m) chalcedonic quartz (+/- quartz breccia) veins occur within the broader zone of silicification. Values of up to 4.2 ppm Au have been recovered from these veins.

Map Ket 28

The Company conducted an exploration program in 2009-2010 consisting of rock and HMC sampling, ground geophysics, and a nine diamond drill hole program.

Rock samples near the Ket 28 prospect in the Rock Creek Block yielded assays up to 53.2 g/t Au. A ground magnetics and horizontal-loop electromagnetic (“HLEM”) survey was completed over the Ket 28 prospect and indicated the presence of a northwest oriented structure and a large magnetic anomaly of which the Northwest edge is associated with Au mineralization. Drilling at the Ket 28 target indicates the presence of wide zones of hydrothermal Au-Silver (“Ag”) associated with extensive alteration along a northwest structure. The best drill intersections obtained during the Company’s exploration work are 11.9 g/t Au across 2.0 m core length and 8.85 g/t Au across 3.0 m core length.

Planned exploration for the Ket 28 includes a program of up to 11 drill holes, with the focus to develop a maiden resource.

Ket 28 2018 Drill Plan

Ket 28 proposed drill program, click to enlarge.

Map Dayton

The Dayton-Sidley block represents the North-westerly corner of the Greenwood Project. The Company conducted exploration on the Dayton-Sidley block in 2009, 2010 and 2011, which included 14 holes (2,777 m) of diamond drilling at the Dayton Prospect. Results from exploration at the Dayton Prospect indicate porphyry bulk tonnage style Au-Copper (“Cu”) mineralization, open to depth and along strike. The best drill hole intersections to date is 0.43 g/t Au and 0.15% copper (Cu) across 51.0 m core length.

Map Motherlode

The Motherlode claim block is located just East of the Copper Mountain block and covers three historic producing Cu-Au skarn deposits from which a total of 4.2 million tonnes at a grade of 0.8% Cu and 1.3 g/t Au was produced in the periods 1896-1918 and 1956-1962.

The Company conducted exploration on the Motherlode block in 2008 through 2011 consisting of HMC analysis, rock and soil sampling, and ground geophysics. Rock sampling was focused on the areas surrounding the existing Motherlode, Sunset, and Greyhound pits, with seven samples returning assays greater than 5 g/t Au.

Ground geophysics and an HLEM survey over the Motherlode North area indicated an interesting magnetic low-high trend of NW orientation coincident with an EM anomaly. Drilling during 2011 yielded a new polymetallic discovery of Au-Ag-Pb-Zn-Cu north of the historic Motherlode Pit. The best intersections obtained to date include 6.07 g/t Au, 15.13 g/t Ag, 0.2% Pb and 0.7% Zn over 4.5 m core length, and 4.11 g/t Au, 6.88 g/t Ag, and 1.04% Zn over 2.85 m core length in two from two separate drill holes.

During late 2017, the Company performed an initial review to see if its land holdings were prospective for the presence of cobalt (Co). The strategic review identified the presence of at least 13 rock grab samples with greater than 0.05%, including up to 0.10% Co, from at least five separate target occurrences across the eastern half of Grizzly's Greenwood Project area. The database shows an additional 31 rock grab samples that have yielded assays of between 0.02 and 0.05% Co. Maps showing the anomalous values and locations for Co at the Greenwood Project:

A preliminary review of the sample database indicates that many of the rock samples with anomalous Co also contain anomalous values for Cu and precious metals including Au and Ag. In many cases, the samples with anomalous Co were collected from Cu-enriched skarn and hornfels developed in Paleozoic sediments and intrusions, where the original sampling targeted precious metals. Grizzly has initiated a property wide review, including its extensive soil and drillhole database along with much of the historic data for the district that it has compiled over the years. The goal will be to target potential Co-Cu-Au-Ag mineralization associated with skarn across the district and come up with targets for follow-up exploration during 2019.

Greenwood West Cobalt in Rocks

GZD Cobalt West

Greenwood East Cobalt in Rocks

GZD Cobalt East