Operations

Goldeye Exploration

Goldeye Explorations is a Canadian subsidiary of Treasury Metals Inc. Goldeye's flagship property is Weebigee, located near Sandy Lake in Northwestern Ontario, and there are two additional properties in Ontario (Gold Rock and West Shining Tree).

Location


Goldeye's Weebigee Project is located 227 kilometres north of Red Lake in Northwestern Ontario. The NW Arm claim block hosts the highest density of gold showings in the Sandy Lake Greenstone Belt.

The project is adjacent to Sandy Lake First Nation (population approx. 3000) which has excellent infrastructure including an airport with daily direct flights to Winnipeg, Red Lake and Sioux Lookout and winter road connection to Red Lake. All weather access roads are located within one kilometre of the Knoll, Bernadette and RvG4 areas.

Description


Weebigee is a large, relatively unexplored property which covers the most prospective portions of the Sandy Lake Greenstone belt, with similarities to the geology of several mines (Red Lake, Madsen and Starratt-Olsen) in the Red Lake District. In the Northwest Arm area, numerous gold showings occur within shoreline exposures of quartz-rich felsic pyroclastic units, proximal to a major deformation zone. Where strained, the felsic units show biotite-silica or chlorite-fuchsite alteration, quartz veining and patchy silica flooding, along with the development of distinct blue quartz eyes. It should be noted that much of the geology is obscured by shallow lakes and clay deposits, and the 2,219 m drill program completed in 2014 is the first significant drilling at Weebigee.

In the past, shoreline mapping and prospecting located a number of auriferous quartz tourmaline veins and silicified zones controlled by mafic-ultramafic dyke filled splays or high strain zones crosscutting regional foliations. Crack and seal textures, drag folded and dismembered veins, multi-stage quartz veining and local strong silica replacement zones indicate that hydrothermal alteration occurred during periods of active brittle- ductile deformation along the high strain zones. Geophysics indicates that a folded ultramafic horizon is located just offshore of several of these auriferous high strain zones.

Permits and Exploration Agreement


On November 12, 2013, the Company entered into an Exploration Agreement with Sandy Lake First Nation ("SLFN") with respect to the Company's exploration of the Weebigee Project. The Exploration Agreement was renewed for a two (2) year period on the same terms commencing on November 12, 2014 and again on November 12, 2016. In consideration, the Company issued a total of 1,500,000 shares to SLFN. The Agreement is a milestone in the relationship between the Goldeye and Sandy Lake First Nation. Sandy Lake First Nation will be an important source of personnel, infrastructure and services for the Weebigee Project during the early exploration phase, and as the project advances.

On May 7, 2013 Goldeye received an exploration permit from Ontario's Ministry of Northern Development and Mines ("MNDM"). The permit was valid through May 6, 2016. On August 10, 2016, MNDM issued a new permit valid through August 9, 2019. The permit can be renewed for an additional three-year period.

A Letter of Intent (the "Letter") between Goldeye and Sandy Lake First Nation was signed on July 25, 2014. The letter provides for Goldeye and Sandy Lake First Nation to enter into exclusive discussions regarding Goldeye conducting exploration activities on Sandy Lake First Nation Reserve #88.

Earn-In Option Agreement with GPM Metals Inc.

On April 15, 2015 Goldeye entered into a definitive earn-in option agreement with GPM Metals regarding Weebigee.

Pursuant to the Agreement, Goldeye, as optionor, granted to GPM, as optionee, the right to earn up to a 70% legal and beneficial interest in the Project under certain conditions.

Stage 1: The 50.1% Option

To exercise the 50.1% Option, GPM must:
  • Make payment of $50,000 in cash and issue such number of Common Shares (the "Consideration Shares") to Goldeye as shall have an aggregate fair market value of Cdn$25,000, following receipt of all necessary approvals, (based on the volume weighted average price of such Consideration Shares over the next five business days;
  • Make three additional cash payments of an aggregate total of $500,000 to Goldeye over 3 years; and
  • Complete expenditures on the Project of an aggregate total of $5,000,000 over 4 years.
Stage 2: The 70% Option
  • To exercise the 70% Option, GPM, after having exercised the 50.1% Option, must, at its election, either:Deliver a feasibility study to Goldeye on or prior to the date which is five years following the date upon which GPM exercises the 50.1% Option; or,
  • Make cash payments to Goldeye and complete exploration expenditures on the Project as follows:
    1. Three cash payments to Goldeye of an aggregate total of $1,500,000 over 2 years;
    2. Complete expenditures on the Project of $1,000,000 prior to the 1st anniversary of the 70% Option notice date; and?c) Complete additional expenditures on the Project of $2,000,000 prior to the 2nd anniversary of the 70% Option notice date.
In the event GPM exercises the 50.1% Option and/or the 70% Option, GPM and Goldeye shall be deemed to have formed a new joint venture and shall enter into and deliver a Joint Venture Agreement, which shall govern their relationship in respect of the Project. GPM will be the operator of the Project during the term of the option and the manager of the Project following the formation of the Joint Venture. Under the Joint Venture Agreement, GPM and Goldeye will be required to contribute their pro rata share of further expenditures on the Project based on their respective percentage interest in the Joint Venture from time to time on standard industry terms. The Agreement is subject to the terms of the Exploration Agreement signed between Goldeye and SLFN dated November 12, 2013, which recognizes the importance of opportunities for Sandy Lake First Nation to secure benefits as the Weebigee Project progresses and the importance of the SLFN Traditional Territory to the people of SLFN. Through the Agreement, GPM and Goldeye will continue to work collaboratively with SLFN, and build on the existing relationship for the mutual benefit of all parties.

Winter 2014 Drill Program


Goldeye completed a winter drilling program, drilling 23 holes for a total of 2,219 metres. Additional supplies, including fuel and core boxes, were mobilized into Sandy Lake prior to the closing of the winter road. Minotaur Drilling Inc. has left its drill on-site.

Drilling during program identified significant gold mineralization within intensely altered quartz-biotite rich felsic volcanics.

Knoll Zone

At Knoll, zoned alteration consisting of outer biotite and inner silica-carbonate-sericite assemblages host gold-bearing multiphase quartz flooding and quartz tourmaline veining. Sulphide assemblages range from pyrite dominant, to pyrrhotite-chalcopyrite dominant. Arsenopyrite is a very minor sulphide phase, occurring locally as very fine needles associated with grey, pervasive quartz flooding.

Drilling during the recent program extended the strike and depth extent of the Knoll Zone. Knoll consists of a steeply dipping, highly altered and quartz veined high strain zone within a package of broadly biotite altered felsic quartz-feldspar crystal tuff. The hanging wall contact of the main gold zone at Knoll is marked by a late, mafic to ultramafic dyke that has exploited the extensional structure hosting the intense alteration and quartz veining.

Bernadette Zone

At Bernadette, crack and seal style quartz veins returned significant gold values (drill hole BK14-03). Silica-carbonate bleaching styles of alteration are restricted to relatively narrow haloes, or are entirely absent around each discrete vein. It is now apparent that selective sampling at Bernadette could easily miss significant gold mineralization.

RvG4

A significant gold intersection (23.15 g/t over 3.97 metres) was drilled at RvG4, located on strike and 500 metres NW of Knoll. The relationship between RvG4 and Knoll zones is not yet known, however alteration, quartz veining, and host lithologies are similar. There are a number of occurrences of visible gold in drill core between 43 and 62 metres downhole in drill hole BK14-18 (RvG4).

Fold Nose

Another area of interest tested during this program was a large fold nose located beneath the Northwest Arm of Sandy Lake. This structure has been defined by ground and airborne magnetic surveys. Hole BK14-19 was drilled from the ice across a discordant feature along the fold nose. Highly altered (hematite, serpentine, magnetite) ultramafic and biotite-rich sedimentary rocks were intersected throughout the hole. Detailed magnetic surveys are planned to further refine drill targets along this regional structure.

Summer 2013 Prospecting


A summer 2013 work program included an initial phase of channel sampling, detailed mapping, line cutting, induced polarization and magnetic surveys in the Northwest Arm area of the property. Individual saw cuts (average 0.3m long) from the channel sampling at Knoll returned significant gold values, including 20.9, 22.0 and 34.1 g/t, with gold values at Bernadette up to 43.5 g/t. Twenty-seven of the 80 samples taken at Knoll assayed greater than 1.0 g/t, fifteen of which assayed > 2.0 g/t. The weighted average of all 80 channels at Knoll was 1.89 g/t, with the weighted average of all 17 samples at Bernadette being 5.58 g/t., illustrating the narrow high grade gold structures at Bernadette versus more widespread gold values at Knoll.

Tully and Tully West

Strong spectral chargeability anomalies with associated narrow resistivity highs indicating fine grained sulphides were discovered in an area known as the Tully-Burton gold showings. Historic work at Tully-Burton consisted of shallow trenching and eight short diamond drill holes, targeting iron formation and sulphidic sediments. Historic gold values reported were anomalous up to 1,000 ppb. Freewest Resources sampled several trenches in this area in 1988, returning gold values between 149 and 958 ppb, with one value of 8,410 ppb. The 8410 ppb value is coincident with a strong spectral IP anomaly outlined by the 2013 geophysical surveying (Line 23+00W).

Two of the eight historic holes tested a VLF conductor further west of the original trenched area just south of the iron formation, in altered blue quartz eye bearing lithologies similar to the Bernadette and Knoll showings. Gold values of 1,150 ppb over 5 feet, and 930 ppb over 5 feet were reported, associated with 5-10% pyrite and pyrrhotite. This zone coincides with the flank of a strong chargeability/resistivity anomaly (Line 27+00W).

Wavano

Numerous folded and boudinaged quartz and quartz tourmaline veins are exposed 1.7 km northwest of the Knoll Zone at Wavano. Visible gold was observed in a tight double drag fold on the westernmost set of veins. Channel sampling confirmed a two metre wide zone of highly anomalous gold mineralization in this area that included assays of 17.5 g/t Au over 0.4 metres, 8.59 g/t Au over 0.5 metres, 2.54 g/t Au over 0.55 metres and 1.73 g/t Au over 0.25 metres.

Sandborn

Quartz-tourmaline veins and associated silicification occupy a narrow high strain zone 600 metres southwest of Wavano. A channel across the main vein at the shoreline returned 5.62 g/t Au over 0.3 metres.

Sandborn Bay and Canoxy

The other areas of interest on the Weebigee project include Sandborn Bay, which hosts numerous Cu-Zn showings, some with highly elevated silver values in cherty and cordierite-rich horizons. The Canoxy area hosts gold mineralization related to sulphide and sulphidized iron formation.

Goldeye press releases, technical report and financial statements prior to Nov. 25, 2016 can be viewed under Goldeye Explorations profile on www.sedar.com. Press releases related to 2013 to 2104 exploration results can also be found on www.sedar.com.