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Geology and Interpretation of The Sulphurets Hydrothermal SystemTreaty Creek's Potential Expansion and Target Zones

Four distinct mineralized domains.

The Goldstorm deposit is comprised of four identifiably unique domains of mineralization. Intercepts of these are listed below and additional drill data can all be found on this page.

300 Horizon

2.12 g/t Gold Eq over 348.0 m (GS-20-65)
1.28 g/t Gold Eq over 370.5 m (GS-19-42)
3.22 g/t Gold Eq over 82.5 m (GS-20-92)
1.51 g/t Gold Eq over 229.5 m (GS-20-73)
2.35 g/t Gold Eq over 159.0 m (GS-21-113-W1)
1.56 g/t Gold Eq over 121.5 m (GS-20-75)

CS-600

1.44 g/t Gold Eq over 405.0 m (GS-21-113)
1.38 g/t Gold Eq over 556.5 m (GS-21-113-W2)
1.34 g/t Gold Eq over 178.15 m (GS-21-108)
2.15 g/t Gold Eq over 75.0 m (GS-20-66)

DS-5

1.29 g/t Gold Eq over 219.0 m (GS-21-112)
0.98 g/t Gold Eq over 550.55 m (GS-20-64)
0.87 g/t Gold Eq over 408.0 m (GS-20-69)
1.04 g/t Gold Eq over 474.0 m (GS-21-110)

Copper Belle

1.21 g/t Gold Eq over 274.6 m (CB-17-26)
1.10 g/t Gold Eq over 127.57 m (TC07-11)
0.70 g/t Gold Eq over 430.5 m (CB-17-08)

Treaty Creek's Geology

Tudor Gold President, Ken Konkin (who was a key figure in the development of the now Newmont Brucejack Mine just a few kilometers south of Treaty Creek) is an expert in both large scale systems and geology in the Golden Triangle.  He has often spoken of the importance of the “frequency for occurrence”, “frequency for distribution”, and “structural traps” of world class hydrothermal systems that create a predictable “rhythm”.

The Treaty Creek property is located within one of the largest hydrothermal systems in the world. The Sulphurets Hydrothermal System (SHS) contains numerous world scale deposits including the high-grade Brucejack mine (opened 2017 by Pretivm) and Seabridge’s KSM which boasts the largest undeveloped gold deposit (by reserves) in the world, and numerous mineralized zones on Treaty Creek. He’s stated that the SHS is a perfect example and refers to its many deposits as a “string of pearls……just really big pearls!”

Of the mineralized zones, four key target zones including the Goldstorm, are projected to to be continuations of the "string of pearls".

The Treaty Creek Property contains the Goldstorm Deposit and is hosted in Early Jurassic intrusions within surrounding Late Triassic and Early Jurassic volcano-sedimentary rocks that are part of the Stikine volcanic island-arc terrane. Arc magmatism across Stikinia and Quesnellia led to a multi-episodic, Late Triassic to Early Jurassic metallogenic event that generated porphyry intrusion-related mineral deposits, regionally. The Treaty Creek Property and Goldstorm Deposit are situated both spatially and temporally relative to the unconformable contact between Upper Triassic Stuhini Group and Jurassic Hazelton Group. The Hazelton Group consists primarily of andesitic to basaltic volcanics and volcaniclastic with a range of fine to coarse clastic sediments. In some cases, basal Hazelton units include granitoid-cobble conglomerate and interbedded quartz-rich arkose, derived from exhumed Triassic plutons. The lower Hazelton Group is a latest- Triassic to Toarcian arc-related andesitic sequence with local felsic centres. The associated Tatogga and Texas Creek Suite intrusions are key mineralizing agents for porphyry copper, gold, and volcanogenic massive sulphide (VMS) deposit formation in northwestern Stikinia.

In the Treaty Creek Property area, the Hazelton Group consists of the Jack, Betty Creek and Salmon River Formations. Jack Formation rocks consist of clast supported granitoid pebble and boulder conglomerate and are present along the west central part of the Property. Overlying the Jack Formation, farther to the east, the Betty Creek Formation is composed of the Unuk River and Treaty Ridge Members. At the toe of the Treaty Glacier, undifferentiated andesite and epiclastic rocks belong to the Unuk River Member.

Large hydrothermal alteration haloes are developed around the intrusive complexes in the Mitchell and Sulphurets Deposits areas. Similar alteration is present at the Treaty Creek Property and surround several of the mineral zones on the Property including the Goldstorm Deposit. Potassic alteration is closely associated with copper and gold mineralization in the Mitchell intrusions and adjacent Stuhini and Hazelton Group Rocks. The potassium alteration zones are overprinted by propylitic and chlorite-sericite alteration and surrounded by widely developed quartz-sericite pyrite (sericitic) alteration zones.

Major structural features in the Treaty Creek Property area are regional scale contractional faults along with associated local dilational faulting, formed within the Cretaceous Skeena Fold Belt. The west side of the Treaty Creek Property area lies primarily on the upper block of the Sulphurets Thrust Fault. The Sulphurets Thrust is an east-vergent thrust fault formed during Cretaceous transpression and is the immediate hanging wall to the porphyry deposits at Seabridge’s KSM Property. This structure extends to the northeast of the Sulphurets district onto the Treaty Creek Property and along with the interaction of other local thrust faulting, is considered to be a control on formation of the porphyry-style gold mineralization. Local to the Goldstorm Deposit, compressional deformation is taken up by regional thrust faulting named Treaty Thrust Fault 1 (TTF1) and Treaty Thust Fault 2 (TTF2). These local to regional scale thrust faults represent the hangingwall (TTF1) and footwall (TTF2) contacts of the deposit. The Goldstorm mineralized system is comprised of six distinct mineralized domains including Copper Belle, 300H, CS-600, Deep Stockwork 5 (DS5), Route 66 (R66), and North-South Stockwork (NS STK). The Copper Belle domain exists at the southwest end of the Goldstorm Deposit and represents a gold-dominant, shear hosted mineralized system. The 300H, CS-600, and DS5 domains comprising the Goldstorm mineral system are tabular bodies dipping 45 to 50 degrees to the northwest. The near surface 300H domain hosts pervasively disseminated auriferous-pyrite and fine gold-bearing pyrite veinlets and stringers. The CS-600 domain underlies the 300H domain and gold-copper dominant mineralization is associated with quartz veinlet stockworks, hydrothermal breccias, and porphyritic diorite intrusive stocks. Beneath the 300H and CS-600 domains are the DS5 domain which is a gold-dominant quartz-pyrite veinlet stockwork zone that carries minor silver values. Additionally, the R66 and NS STK domains represent narrow 20 – 50 m corridors of north south striking, high-grade gold dominant, quartz stockwork mineralization.

Major Fault
The Sulphurets Thrust Fault that runs throughout the SHS is a major factor in the formation of large porphyry systems along it.  Seabridge has stated that it is directly related to the Kerr, Sulphurets, Mitchell / Snowstorm, and Iron Cap deposits.  It appears that the Sulphurets Thrust Fault continues through the heart of Treaty Creek and is associated with at least the Goldstorm and Perfect Storm zones.

Treaty Creek's Four Major Zones

The initial mineral resource estimate for the Goldstorm  Deposit represents a very large structurally controlled gold-silver-copper porphyry mineralizing system that is open to further expansion with drilling.  In addition to the Goldstorm Deposit, the Treaty Creek Property also includes many additional zones and showings of hydrothermal alteration and gold with or without base metals that have formed in porphyry and epithermal settings. The Eureka, Calm Before the Storm (CBS), and Perfectstorm zones are considered to be early-stage to advanced-stage exploration targets.

Future exploration will target the Goldstorm and Copper Belle Resource, in particular the limits of the 300 Horizon Domain, the CS-600 Domain, and the DS-5 Domain within Goldstorm and the limits of the Copper Belle Zone. Definition drilling within the current resource will target converting Inferred Mineral Resources to the Measured and Indicated Mineral Resource classifications where possible.

Future exploration drilling programs will continue to define the Perfectstorm, Eureka and CBS zones.

The overarching goal of future exploration programs is to increase the size of the current Treaty Creek Property mineral resource and to make new significant discoveries, as well as outline the economic potential of the Goldstorm Deposit.

Perfect Storm.

One massive geophysical anomaly.

The Perfect Storm Zone (PSZ) is a large magnetic anomaly that hosts significant gold-copper-silver porphyry-related mineralization. This magnetic anomaly is located along a relatively evenly spaced frequency of large deposits following the Treaty-Sulphuretes Thrust Fault, approximately mid-way between the Iron Cap Deposit to the southwest and our Goldstorm System to the northeast. The results suggest that the system is open to expansion to the southwest and to the northwest.

-Has the structural, geological, and geophysical features of the Goldstorm and other deposits in the “string of pearls.”
-Is located “right where it should be” – half way between the Iron Cap deposit (Seabridge) and the Goldstorm deposit (2.5km intervals).
-Is located along the Sulphurets thrust fault and along the “Kyba Line” which is a geological contact where large deposits form.
-Is also located near the Brucejack fault which is responsible for the high-grade Brucejack mine (Newcrest) a few kilometers to the south.
-Hosts potential for a large copper, gold, silver porphyry with high-grade epithermal overprinting.Geophysics are showing potential to be larger than the Goldstorm zone.
-Initial drilling has confirmed consistent mineralization over broad intervals similar to initial drilling on the Copper Belle / Goldstorm zone.


The exploration target area is at least 1.5 kilometers long and 500-800 meters wide.

Calm Before The Storm.

The newest discovery.

-Has the structural, geological, and geophysical features of the Goldstorm and other deposits in the “string of pearls.”
-Is located “right where it should be” – close to 2km further north east of the Goldstorm deposit.
-Is located along the Sulphurets thrust fault.
-Initial drilling has confirmed consistent mineralization over broad intervals similar to initial drilling on the Copper Belle / Goldstorm zone.

Eureka.

Possible Goldstorm extension.

The Eureka zone is located 1500 m east of the Copper Belle zone, near the west edge of an extensive, bright yellow-orange gossan zone covering over one square kilometer of clay, sericite, quartz and pyrite alteration. Alteration overprints several different rock units, including volcanic flows and breccias, plagioclase-porphyry intrusions, and minor sedimentary rocks. Alteration mineralogy suggests a shallow magmatic hydrothermal or epithermal environment of formation, with the potential to host gold-silver bearing veins and pervasive lower grade disseminated gold-silver mineralization.

At the Eureka showing, outcrops are cut by veins infilled with fine to coarse-grained quartz, calcite, and pyrite. Veins have steep dips with variable orientations and form weakly sheeted to stockwork zones. In the Eureka zone and surrounding area about 20 holes have been drilled on various targets. Several long intervals of weakly elevated gold grades were returned, such as 0.46 g/t Au over 169.2 m (DH 97-1) and 0.69 g/t Au, 2.9 g/t Ag over 75.5 m (TC07-02). Additional drilling is required to better define the mineralized areas.