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FG Gold

FG Gold

British Columbia, Canada

The 100% owned FG Gold project is part of Karus Gold’s 1,000 square kilometer South Cariboo Gold District (“District”) of central British Columbia, which contains 110 kilometers of the Eureka thrust structural trend (“Trend”) that drives gold mineralization in the District. The Trend is highly prospective for sediment hosted orogenic gold deposits, some of largest in the world, and includes the Company’s Gold Creek Project, located 75 kilometer to the northwest of FG Gold.

FG Gold consists of 35 claims, totaling 13,008 hectares and is located approximately 100 kilometer east of Williams Lake in the Cariboo Mining Division. The claims straddle the MacKay River valley and are centered at approximately 52° 18’N and 120° 35’ W on National Topographic System (NTS) map sheet 093A07 (1:20,000 BCGS map sheets 093A027, 093A028, 093037 and 093A038).

FG Gold is accessible by gravel road.

Cariboo Gold District Property Map

The NI 43-10 technical report on the South Cariboo Property, dated November 26, 2021 and titled “Technical Report on the South Cariboo Property”, is filed on SEDAR and also available HERE. The report includes the FG Gold and Gold Creek projects.

FG Gold straddles the boundary between the Omineca and Intermontane tectonics belts of the Canadian Cordillera. The eastward emplacement of the Intermontane Belt onto the Omineca Belt along the Eureka Thrust Fault caused widespread regional metamorphism and structural deformation of both Belts. The regional scale, northwest trending, shallowly plunging, Eureka Syncline is the dominant resulting structure in the project area. Rocks in the core of the Eureka Syncline are comprised of basalt, augite porphyry flows, tuffs and volcanic breccias metamorphosed to a low grade; they are structurally emplaced onto metavolcanic and sedimentary rocks of the Quesnel Terrane. The Quesnel Terrane is recognized for its prevalence of copper, gold and molybdenum deposits and showings such as those at Highland Valley, Boss Mountain, Quesnel River and Mount Polley.

FG Gold is centrally located over the Eureka Syncline, strategically encompassing two limbs and the hinge zone of a gold-bearing meta-sedimentary rock unit of the Quesnel Terrane. FG Gold is a sediment hosted orogenic gold project on the northeast limb of the Eureka syncline. The gold-bearing rock, a ‘knotted’ phyllite, is the host rock for gold mineralization and has been traced for over the 3.5 kilometer strike length by drilling. 

FG Gold Property

Surface mapping, surface geochemistry and geophysical inversion of airborne electromagnetic (EM) data suggests the knotted phyllite has a strike length of over 20 kilometer with potentially thickened regions occurring in the Eureka Syncline hinge zone. The figure below is a regional view to the northwest of the host rock potential of the Eureka syncline and that extends through Eureka Ridge and highlighting the tens of kilometers of exploration potential relative to the area of historical drilling.

FG Gold Eureka Syncline

2021 Exploration Program

The focus of the 2021 drill program at FG Gold will be to demonstrate continuity of gold mineralization along strike and further down dip to expand the overall footprint of gold mineralization at FG Gold. Drilling will be completed by upwards of three diamond drill rigs with a minimum of 15,000 m of drilling planned in 2021, subject to financing and permitting. The Company also plans to complete detailed geological mapping on surface to support the development of a robust geological model for gold mineralization, and along with grided soil and IP geophysical surveys, delineate additional areas of gold mineralization along a >20- kilometer trend, providing many opportunities for resource expansion and new discoveries on-strike and downdip. Figure 4 is a regional view to the northwest of the host rock potential of the Eureka syncline and that extends through Eureka Ridge and highlighting the tens of kilometers of exploration potential relative to the area of historical drilling.

In conjunction with 2021 exploration drilling at FG Gold, the Company will also initiate a review of the drilling that supported the historical resource area to design a drill program to validate historical drilling. This program, combined with an improved geological model on the controls of gold mineralization will form the foundation of a future resource estimate for FG Gold.

FG Gold Eureka Syncline

Karus Gold drills 6.5 meters of 9.55 g/t gold within broader interval of 35.4 meters of 2.94 g/t gold at FG Gold. Results confirm presence of high-grade gold corridors down-dip of past drilling and highlight potential at depth. Read more HERE (Feb 2, 2022).

Karus Gold drills 17.87 meters of 2.23 g/t gold within a broader interval of 59.35 meters of 1.13 g/t gold at FG Gold. Read more HERE (April 6, 2022).

2020 and prior Exploration Program

Prior to drilling in 2020 by KORE Mining Ltd (the company from which Karus Gold was spun out in 2021), drilling at FG Gold largely centered on the Main Zone, tested the extent of gold mineralization along 3.5 kilometres of strike and to an average depth of less than 100 meters below surface. Mineralization is open at depth and along almost the entire trend. To date, over $15.0 million of exploration work has been completed on FG Gold, establishing a shallow historical gold resource(1) over a 3 kilometer strike length.

The FG Gold property also hosts an epithermal gold system at the Bowl Zone and a potentially 3.5 kilometer by 1 kilometer gold-copper porphyritic intrusion at the Nova Zone. For more information see the technical report here.

  1. Refer to NI 43-101 technical report dated July 27, 2015 “Campbell, K. V., and Giroux, G. H., 2015, NI 43-101 technical report, Frasergold exploration project, Cariboo Mining Division, B.C.: Technical report for Eureka Resources Inc”. While the resource estimate was prepared in accordance with NI 43-101 standards Karus Gold views the resource as historical as indicated in Section 2.4 of NI 43-101 as a qualified person has not done sufficient work to classify the historical estimate as current mineral resources. Key assumptions used in the estimation include data from the 160 diamond drill holes (28,323 m) and 242 reverse circulation holes (21,368 m) drilled at Frasergold between 1983 and 2008 for assays and a geological model. Capped assay data was composited in 5 m lengths and separated into “Vein Style” (averaging 3.686 g/t Au), “Disseminated Style” (averaging 0.272 g/t Au) and “Low-Grade Envelope” (averaging 0.126 g/t Au) composites. Grades for 10 x 10 x 5 m blocks were interpolated by ordinary kriging. The resource was calculated at a cut-off grade of 0.5 g/t Au.
Year Company DDH Holes RC Holes
No. Holes Total Length (m) No. Holes Total Length (m)
1983 Eureka Resources Inc. 5 1,644    
1984 Eureka Resources Inc. 10 2,875    
1985 Eureka Resources Inc. 2 677    
1986 Eureka Resources Inc. 20 2,021 4 388
1987 Eureka Resources Inc. 5 469 21 1,707
1988 Eureka Resources Inc. 18 1,924 37 2,458
1990 Eureka Resources Inc. 26 4,684 43 4,334
1991 Eureka Resources Inc.     117 11,461
1993 Eureka Resources Inc.     20 1,020
2007 Hawthorne Gold Corp. 16 3,615    
2008 Hawthorne Gold Corp. 58 10,414    
  TOTAL 160 28,323 242 21,368

In 2020, over 7,400 meters in 23 holes were drilled to determine if gold mineralization extended at depth beneath the shallow historical drilling at the Main Zone. 2020 drilling was designed to test the hypothesis that high grade gold zones correlating to plunge lines within both limb and hinge zones, are extendable both at depth and along strike. The 2020 drill program was successful in opening up potential for a large-scale orogenic gold deposit extending far beyond the depth of historic drilling.

Detailed interpretation of the 2020 drill program validates the Company’s exploration thesis that structural controls generate repeating higher-grade gold vein corridors within the previously defined Upper and Lower zones at the FG Gold. The salient features of these high-grade gold corridors are outlined below.

Given an enhanced understanding of the orientation of these high-grade gold corridors the Company believes that the intercepts below define newly discovered high-grade gold corridors, the dimensions of which will be fully evaluated through further confirmation drilling.

FG Gold 2020 Drill Program

Table of significant drill results:

Drill Hole Zone From To Length1,2 Gold Grade3
    (m) (m) (m) (g/t)
FG-20-368 Upper 5.5 82 76.5 1.1
incl.   56 82 26 2
and Lower 185 195 10 0.8
FG-20-369 Upper 22 54 32 3
incl.   29 30 1 42.5
and Lower 237 247 10 3.9
FG-20-370 Upper 19 70 51 1.6
incl.   44 55 11 10
and Lower 173 183 10 1.8
FG-20-371 Upper 91 116 25 0.6
FG-20-372 Upper 24 122 98 1
incl.   25 30 5 6.5
FG-20-373 Upper 24 58 34 4
incl.   44 55 11 10
and Lower 226 235 9 1.1
FG-20-374 Upper 8 46 38 1
and Lower 112 144 32 0.7
FG-20-375 Upper 26.5 52 25.5 0.7
and Lower 122.5 175 52.5 1.1
FG-20-376 Lower 239.4 287.3 47.9 1.6
incl.   239.4 260.3 20.9 2.9
incl.   239.4 251.8 12.4 4.3
FG-20-377 Lower 369 400.35 31.35 3.22
incl.   386 400.35 14.35 6.44
FG-20-378 Upper 174.1 177 2.9 7.7
and Upper 195.9 258.3 62.3 1.7
incl.   195.9 202.5 6.6 9.7
incl.   214 224.6 10.6 1.8
and Lower 236.4 250.3 13.9 1
FG-20-379 Upper 286 297.5 11.5 2.4
and Lower 430.1 480.5 50.5 0.8
incl.   432 449 17 1.7
incl.   445 448 3 5.8
FG-20-380 Lower 346.7 396.5 49.9 1.1
incl.   349.5 378.5 29 1.5
incl.   363 378.5 15.5 1.9
FG-20-381 Upper 272.5 287.1 14.6 0.6
and Lower 333 357 24 1.1
incl.   344 351 7 3.1
FG20-382 Upper 122.8 165 42.2 2
incl.   124 134 10 5.5
FG20-383 Upper 13.3 17.6 4.3 1.8
and Upper 46.2 48.2 2 14.5
and Upper 127.6 166.5 38.9 2
incl.   150 154.5 4.5 7.7
FG20-384 Upper 106.3 121.9 15.5 0.9
incl.   108.64 112.5 3.9 1.7
FG20-385 Upper 82.5 83.74 1.2 9.4
and Upper 139 156.7 17.7 3.3
incl.   142.3 147.6 5.3 10.2
FG20-386 Upper 31.7 32.7 1 6.9
and Upper 129.8 145.5 15.8 0.8
FG20-387 Lower 287.5 289.5 2 3.7
FG20-388 Upper 42.1 60 17.9 1
incl.   55 56 1 13.4
  1. Karus Gold has not been able to determine true width yet due to complexity of the vein structures within the mineralized zones. The 2020 drill program was designed to better understand the geometry and how the mineralized zones are related. The orientation of individual quartz veins within the mineralized zones are quite variable. Reported widths are drill indicated core length and not true width, for the reasons above. Average grades are calculated with un-capped gold assays, as insufficient drilling has been completed to determine capping levels for higher grade gold intercepts.
  2. Drilling data on the Lower Zone is currently limited and the true thickness and orientation of the zone is not firmly known. However, based on current data, it is estimated that intercept represents ~50%-65% of the true thickness of the zone.
  3. Composites are calculated using a 0.3 g/t Au cutoff, incorporating no more than 7 m downhole dilution. Higher grade composite sections are calculated using a 1 g/t and 3g/t cutoff incorporating no more than 5 m downhole dilution. Screen metallic assay data is present as it is more representative of the true sample value due to the increased sample volume processed and the multiple gold size fractions analyzed.