On November 29, 2018, Crystal Lake Mining Corporation (“Crystal Lake”) entered into an agreement to acquire 100% of Romios Gold Resources Inc.’s (“Romios”) interest in the Newmont Lake property (“the property”) in northwestern British Columbia. The property consists of 153 unpatented mineral claims covering 436.36 km2 and is located approximately 150 km northwest of Stewart, BC, and approximately 410 km north of Smithers, BC. As part of the agreement, Crystal Lake committed to spend $8 million in exploration expenditure over three years, to pay Romios CAD$2 million in cash options and to distribute 12 million shares to Romios over three years. As of the effective date of this report, the transaction is subject to approval by the TSX Venture Exchange.
The project area is located in the Stikinia terrane of the Intramontane Belt of western British Columbia. The Stikinia terrane was intruded by the mid-Cretaceous Coast Plutonic Complex. The property area covers a northeast trending graben structure (referred to as the Newmont Lake graben). Geological maps published by the BC Ministry of Energy and Mines show that rocks within the graben comprise down dropped Permian to Triassic sedimentary and volcanic rocks belonging to the Stuhini Group that have been intruded by a series of small, Late Triassic to Early Jurassic alkalic intrusions.
There are a numerous intrusion-related gold, copper, zinc, lead, and silver occurrences located in the Newmont Lake area within the boundaries of the property. Historic reports indicate a variety of mineralization styles, including skarn, porphyry and intrusion-related, orogenic and volcanic massive sulfide. The known prospects include targets referred to as the Northwest Zone, the Ken Zone and the Camp Zone where drilling by previous operators has partially defined significant mineralized zones. The Northwest Zone and the Camp Zone were the focus of extensive drill testing by Gulf International Minerals Ltd. (“Gulf Minerals”) between 1987 and 1990, and the Ken Zone was tested by a limited drill program in 1988 by Pezgold Resources. Romios completed seven geological, geochemical and geophysical survey campaigns on the Newmont Lake Property including 8,642 metres of diamond drilling in 49 holes between 2005 and 2012, focusing on the Northwest, Jazzman and Camp zones. With the exception of several scattered drill holes, many of the remaining occurrences have not been tested by diamond drilling.
In October 2018, Crystal Lake completed a drilling program consisting of six reverse circulation drill holes totalling 721 m. Four holes were drilled at the Burgundy Ridge occurrence in the western part of the property and two holes were completed at the Northwest Zone. Assay results of chip samples included 1.52 m at 9.63 g/t Au, 15.85 m of 1.29 g/t Au, and 8.23 m at 0.29 g/t Au and 0.45% Cu. Independent Technical Report Newmont Lake Property, BC February 4, 2019 Page | 6 Based on the geological setting of the property and historic and current exploration data the authors conclude that there is significant potential on the property to discover additional mineralization and to expand existing mineralized zones.
A detailed compilation and analysis of historic and current exploration data is recommended to determine the best next steps for exploration and to delineate new targets. A second phase of exploration is recommended to consist of satellite image procurement and interpretation, a mapping program covering the property, and diamond drilling to confirm the extent of significant occurrences of mineralization.