Deposit Models:

• Widespread low grade (0.5 to 4.0 g/t Au) mineralized pyritic sandstone, quartz veins and quartz stockwork as seen exposed in the Silurian-age Botwood Group sediments; and
• A high-grade gold environment (similar to Sokoman’s Moosehead and New Found Gold’s Queensway
  projects) in the basement rocks below the Botwood sediments.

Geology:

• Located on the interpreted Cape Ray – Valentine Lake (“CRVL”) structural trend.
• CRVL covered by Oxidized Silurian Sedimentary rocks
• Significant post-sediment felsic intrusives

Exploration:Exploration:

• An extensive field program in 2019, focused on prospecting, mapping and sampling along with a property wide airborne magnetometer and radiometric survey to map bedrock lithologies, structural features and areas of structurally controlled potassic alteration identified numerous target areas.

Results:

• Eight areas of highly anomalous to high grade gold(15.05 g/t) mineralization have been identified
• The gold mineralization is hosted in quartz feldspar porphyry, pyrite and arsenopyrite bearing reduced sandstone, quartz stockworks and quartz veins.
• Mineralization exhibits arsenic-antimony-molybdenum geochemical associations with high gold to silver ratios
• Gold mineralization is characterized by sericite, silica, ankerite, carbonate and chlorite alteration typically as pervasive alteration and envelopes around quartz stockwork and quartz veins.
• Pyrite and arsenopyrite (1-3% total sulfide) are common to the gold mineralization in all samples greater than 50 ppb gold. 

  _{g/t = grams per tonne; ppb = parts per billion}

• The 2019 airborne survey and subsequentinterpretation clearly show that the structural trend of Sokoman's Moosehead discovery crosses onto the Stony Lake East property. This appears to be a primary basement structure, with multiple splays off it. Thisdefines a high priority exploration target in thebasement below the Botwood Group.

• In addition, the interpretations indicate thatconcentration of zones of gold mineralizationdiscovered in the Botwood sediments in 2019 is along a NNE structural trend in the Botwood. Although this is a different, parallel, trend to that discussed above, the model is the same. i.e. a major structure with goldbearing fluids emanating from a basement structure depositing low grade mineralization in the Botwood.