Strategic Metals Ltd.

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Trifecta Gold

Trifecta Gold Ltd.

Trifecta Gold Ltd. is a new precious metal focused company that will explore highly prospective projects located in the Dawson Range Gold Belt of western Yukon. Details relating to the formation and spin-out of Trifecta Gold Ltd. are available in the Information Circular dated March 13, 2017. Trifecta will start with four projects summarized below: Eureka, Triple Crown, Treble and Trident.

Eureka

The Eureka property is an orogenic gold project located in the legendary Klondike Goldfields of west-central Yukon Territory. It lies 110 km by road south of Dawson City, right on the proposed haulage route to the Coffee Deposit, which was recently sold by Kaminak Gold Corporation to Goldcorp Inc. The property covers a 70 sq km area which is wholly within the traditional territory of the Tr’ondëk Hwëch’in First Nation and partially overlaps with Na-Cho Nyäk Dun traditional territory.

The property is underlain by metasedimentary rocks belonging to the Yukon-Tanana Terrane. It lies within an important mineral belt that hosts productive hard rock mines including Fairbanks Gold, True North and Pogo in Alaska, and important recent discoveries such as the White Gold Deposit of Kinross Gold Corporation and the Coffee Deposit, which are located in Yukon, 50 km and 75 km southwest of the Eureka property, respectively.

The mineral claims comprising the Eureka property straddle the headwaters of two of the most productive placer creeks in the southern part of the Klondike Goldfields. Reported placer gold production between 1978 and 2016 from Eureka and Black Hills creeks totaled about 200,000 ounces. Historical production is much higher and the mines are still active. Gold recovered from the upper reaches of both creeks is described as a mixture of coarse and fine, generally angular grains with average fineness increasing downstream from 640 to 735. Some grains contain inclusions of dark quartz while others are attached to larger white quartz fragments. All of these attributes suggest the gold is near source.

The Eureka property has never been glaciated and as a result the landscape is mature with dendritic drainages forming radial fans off the flanks of upland domes. Outcrop is rare.

Hard rock exploration on the Eureka property has been conducted by numerous operators intermittently since 1988 and has resulted in the discovery of the Wealth, Childs, Allen, Happy and Ball showings. Work performed to date includes: mapping; prospecting; soil sampling; hand and mechanized trenching (5818 m in 38 trenches); ground and airborne geophysical surveying; reverse circulation (RC) drilling (4174 m in 41 holes); and diamond drilling (1188 m in 8 holes).

Grid sampling across parts of the Eureka property has outlined extensive gold-in-soil geochemical anomalies which occur in a northerly elongated belt that is 6000 m long and up to 2500 m wide, and which is open to extension on the property.

Trenching and drilling have identified mineralized structures at the Wealth, Childs, Allen and Happy showings, while placer workings exposed a gold-rich vein at the Ball Showing.

The Wealth Showing is located in the center of the claim block within a 600 by 250 m area of strongly anomalous gold-in-soil values. Bulldozer trenches across this showing exposed quartz breccias with gougy alteration halos. The highest gold assays in trenches included: 0.54 g/t gold across 20 m; 0.97 g/t gold over 17.9 m; 0.75 g/t gold across 10 m; and, 1.06 g/t gold across 2 m. RC drilling within the Wealth Showing returned encouraging results including: 0.59 g/t gold across 18.3 m; 2.34 g/t gold over 3.05 m; 1.13 g/t gold over 6.1 m; 2.44 g/t gold over 1.53 m; and 1.38 g/t gold over 3.05 m.

Preliminary cyanide leach bottle-roll tests of coarse reject material from chip samples taken from trenches at the Wealth Showing yielded the following very positive results in a 24 hour period.

Head Grade Cyanide Recovery
Au (g/t) Au (g/t)
0.32 0.33
0.59 0.57
1.16 0.9
2.76 2.72

The Childs Showing lies 2500 m south of the Wealth Showing and comprises gold-bearing breccia zones exposed in bulldozer trenches. Chip samples from the trenches returned 0.72 g/t gold over a true thickness of 4 m and 0.48 g/t gold across a true width of 5.5 m. RC drilling at the Childs Showing returned 6.62 g/t gold over 1.52 and 1.19 g/t gold over 1.52 m.

The Allen Showing is located 800 m northeast of the Wealth Showing, but has seen little mechanical exploration. The showing is exposed in a deep trench cut along a north-trending ridge, which exposed a brecciated and clay-altered zone that is 2 to 5 m wide. Select rock samples returned up to 15 g/t gold, but chip sampling in the trench returned only 0.44 g/t gold across 4 m.

The Happy Showing is located 1800 m north of the Wealth Showing. A sample from a diamond drill hole in this showing assayed 9.99 g/t gold over 1.5 m. This intercept was obtained from an isolated hole completed near the end of the most recent drill program, and it has not been followed up.

The Ball Showing is located on the edge of a placer cut, in the southeastern part of the soil grid. It comprises a gold-rich quartz vein that was exposed in bedrock by a placer miner. A chip sample across the vein assayed 9.8 g/t gold and 238 g/t silver over 0.6 m. This vein has not been drill tested.

The Eureka property is very favourably located, but has received surprisingly little drilling and trenching considering the size and strength of its soil geochemical anomaly and the abundance of gold in creeks draining the property.

Triple Crown and Treble

The Triple Crown and Treble properties are located midway between Goldcorp’s Coffee deposit and Rockhaven Resources’ Klaza deposit and both host numerous untested geochemical anomalies.

Initial prospecting and hand trenching at the Triple Crown has yielded highly encouraging results. In 2016, a hand trench (TR-16-01) was dug across the strong linear where a 2015 rock sample had assayed 6,680 g/t silver, 30.22% lead and 0.80 g/t gold. Chip sample results from the trench include 570 g/t silver, 2.76% lead, 0.08 g/t gold over 6.4 m and 106 g/t silver, 0.84% lead and 0.03 g/t gold over 9.6 m. These well mineralized intervals are separated by 5.6 m of weakly mineralized wallrocks.

Cursory prospecting done in 2011 at the Treble within one of several geochemically anomalous areas on the property, discovered a 100 by 120 m zone of brecciated hydrothermal quartz. Rock samples of this material returned 1.125 and 14.15 g/t gold.

Trident

The Trident consists of 525 claims of which 195 are wholly owned, 182 are in the CH option and 148 are in the Squid option. The property covers the headwaters of the Matson Creek placer camp, which is accessible by road and a gravel airstrip. Both the Squid and the CH host gold-in-soil geochemical anomalies. The CH has received little follow-up work while limited trenching and drilling at the Squid by Metals Creek Resources in 2013 produced promising results including: 1.55 g/t gold and 114 g/t silver over 21.0 m and 1.70 g/t gold and 81.78 g/t silver over 12.0 m in drill holes; and, 1.96 g/t gold and 160.60 g/t silver over 22.0 m in an overlying trench.