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Snapshot

  • Details
  • Geology

Flume is Located 70 km north of the Kaminak (Goldcorp) Coffee gold project and 40 km northwest from Kinross’s Golden Saddle project. The project area comprises 4,015 Ha.

Recent competitor staking by Goldstrike Resources added 560 adjoining claims to the south and east side of project area in late March 2017.

History

Flume was First staked in 1999 by Phelps Dodge who completed property wide soil sampling, rock sampling and trenching. Flume was then obtained by Valley High Ventures in 2009 who optioned it to Ryan Gold in 2010.

Ryan Gold completed property wide soil sampling, detailed airborne geophysics and diamond drilling (9 holes, 2307m) in 2011 and 2012 (~ $3,000,000 in expenditures)

Flume Property Map

Terms of the Deal

For a 60% earn in, K2 must spend C$2M on exploration ($200,000 in year

1), issue 1M shares and pay commander C$400,000 over a 4 year period. Payments exploration expenditures are ’Back -Ended’ and minimal cost to K2 in the first 3 years.

To acquire 100%, K2 must carry out an additional $3M in exploration expenditures, a cash payment of C$250,000, and issue a further 2M shares.

Target comprises 10 km X 2 km gold and arsenic soil anomaly underlain by meta-sediments and intrusives. Gold occurs in structures associated with pyrite, arsenopyrite, galena and quartz. A 2010 airborne magnetometer gradiometer and VLF-EM Survey (50 m line spacings) outlined strong northwest and north magnetic linear and structure trends.

Reinterpretation of previous drilling indicates the holes may have been orientated almost parallel to mineralization, therefore work in 2017 will attempt to determine the nature of the mineralization and its relation to the structure with a view to drilling new targets in 2018-2019.

Drill Highlights:

  • 9 core holes (2,307-metre) completed by Ryan Gold in 2012.
  • Discreet structures with elevated arsenic in the order of 5 to 15 metres of core length are associated with anomalous gold
  • Drill pattern was not optimum for testing key structures
  • North Anomaly is undrilled

Flume Anomaly South Drilling

Hole Az Dip from(m) to(m) Length(m) Au(gpT)
FL12-001 132 -50 180 181 1 1.23
FL12-003 131 -50 82.3 83 0.7 1.42
      89.5 90.3 0.8 1.04
      92 93 1 2.25
FL12-006 132 -50 32 34 2 5.76
FL12-007 129 -50 67 68.2 1.2 1.11
      74.5 75.3 0.8 1.42
      185.5 186.62 1.12 1.57
FL12-008 45 -50 97.5 99.5 2 1.35
FL12-009 45 -50 49 50 1 0.74
Flume Project Geology Map

Airborne Geophysics

Flume Project Geology Map
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