Empire Mine

Summary

Roughrider announced on September 24, 2020 that it signed a Definitive Agreement on the Empire Mine Property located on northern Vancouver Island, B.C. 

Property Highlights

- The Empire Mine Property is an exploration stage property comprised of 23 mineral claims and 57 fee simple crown grants covering approximately 15,000 hectares that is easily accessed through a large network of forest service roads with elevations ranging from 100 metres ("m") to 1370 m thus providing for near year round exploration.

- The Empire Mine Property covers 22 mineral occurrences, including 3 past producing open pit and two underground past producing mines for magnetite, copper, gold, and silver.

- Significant previous drill intercepts including 2006 drillhole MW06-17 which returned 6.51 g/t gold and 1.41% copper over 50.32 m 1 (see Table 1).

- Historical measured and indicated resource of 960,000 tonnes at 2.03 g/t gold, 5.64 g/t silver, 0.34% copper, 0.013% cobalt and 16.1% iron using a 0.50 g/t gold cut-off completed November 30, 2008 by Gary Giroux. The resource was noted as open to depth and no further work on the resource has been completed since 2008 (1, 2).

- The Property was recently expanded from 7,114 hectares ("ha") to over 15,000 ha by Roughrider staking.

6 km prospective strike length outlined by historical 2005-2008 geophysical work and drilling.

- The Property has excellent infrastructure and access due to logging, limestone quarrying and power generation operations in the area as well as easy access to ports at both Port McNeil and Port Alice.

 

Table 1: Selected Historical Merry Widow Drilling 3

DDH ID From (m) To (m) Length* Au (g/t) Ag (g/t) Cu (%) Co (%) Fe (%)
MW06-08 1.53 75 73.47 4.51 6.05 0.31 0.019 15.49
(including) 6.32 47.85 41.53 7.59 8.65 0.42 0.024 19.29
  10.42 11.67 1.25 12.2 12 0.39 0.014 35.9
  11.67 12.92 1.25 12.5 14 0.69 0.024 35
  24.17 25.32 1.15 79.4 25 0.46 0.097 18.7
  37.47 38.59 1.12 16.3 29 1.73 0.011 18.25
  44.53 45.69 1.16 54.3 27 0.87 0.156 21.9
  46.85 47.85 1 18.85 18 1.04 0.019 27.2
                 
MW06-17 20.22 70.44 50.32 6.51 21.98 1.41 0.059 18.16
(including) 23 24 1 21.9 77 4.83 0.082 34.8
  52.52 53.62 1.1 33.7 45 2.57 0.069 22.6
  53.62 54.48 0.86 47.9 93 4.5 0.049 31.2
  55 56 1 25.5 81 4.2 0.699 25.1
                 
*The intervals reported in this table represent drill intercepts and insufficient data is available at this time to state the true thickness of the mineralized intervals

Work by Roughrider

Roughrider completed a small exploration program on the Empire Mine Property which consisted of the collection of 251 soil samples, 81 rock samples, 28 chip samples and 100 rock channel cut samples that were taken at 1.0 m intervals Work was focused in a 500 m x 2000 m area (100 hectares) within the 15,000-hectare Empire Mine property with an emphasis to test exploration potential outside of the previous resource. As such sampling was not conducted within the historical resource completed by Grande Portage in 2008 or where significant previous drill intercepts (including 2006 drillhole MW06-17 which returned 6.51 g/t gold and 1.38% copper over 50.32 m) were located. 1,2

Rock channel sample results are summarized in Table 1 below including results from the Copper Knob showing, which returned 9.77 g/t gold, 28.41 g/t silver and 2.35% copper over 10.5 metres. To the north, channel samples taken at the Gossan Zone, Adit and North Notch showings indicate significant exploration potential in an area up to 250 m north of the Merry Widow Pit. Other channel samples returned highly anomalous results as much as 400 m south of the Merry Widow Pit).

Highlights from rock grab samples include the Bluebird 1 area (600 m south of Merry Widow Pit) which returned 11.2 g/t gold and 36.8 g/t silver and 2.13% copper, the DB showing (1 km SE of Merry Widow Pit) which returned 3.59 g/t gold, 71.9 g/t silver, 12.05% copper, and the BX 1 showing (4.6 km south of the Merry Widow Pit) which returned 1.88% copper.

Rock chip samples have highlighted broad areas of low-grade gold and copper values such as 17.0 m of 0.16 g/t gold and 0.11% copper from pyritized volcanic units which overlie the limestone horizons at the Summit Showing (600 m north of Merry Widow Pit).

Soil Samples taken north of the Merry Widow Pit indicate a 400 m long NNE trending > 100 ppb gold in soil anomaly with a high to 3260 ppb gold.  Highlights from soil samples taken to the south in the Battle Mountain area (1700 metres south of the Merry Widow Pit) included an open ended 400 m long > 100 ppb gold in soil anomaly with samples returning 233-1175 ppb gold down the central axis of the anomaly. No records of any historical trenching or drilling are noted in the Battle Mountain Area.

Definitive Agreement

Under the terms of the Empire Option Agreement, Roughrider can acquire a 100% interest in the Empire Mine Property from Mirva Properties Ltd. ("Mirva") by making aggregate cash payments of $1,250,000, issuing 3,000,000 common shares of the Company and undertaking work commitments totaling $2,000,000 over a five (5) year period, including making an initial cash payment of $50,000 and issuing 200,000 common shares of the Company upon receiving final TSX Venture Exchange ("TSX-V") approval. Mirva will retain a 2% NSR on the Property of which 1% may be purchased for $1,000,000 at any time up to 120 days after commencement of commercial production. The agreement was structured such that this NSR plus all other NSRs which may currently exist and be payable on the Empire Mine Property do not exceed in aggregate 2.5% before buydowns.

 

Cautionary Notes

1 Historical information provided in this news release regarding the Company's project cannot be relied upon as the Company's QP as defined under NI 43-101 has not prepared nor verified the historical information. A Qualified Person has not done sufficient work to classify the historical estimate as a current mineral resource and Roughrider is not treating this historical estimate as current mineral resources.

2 NI 43-1010 Technical Report: Giroux, G.H., & Raven, W. (November 30, 2008). Technical Report on the Copper Gold Resources for the Merry Widow Property. Filed on SEDAR January 22, 2009. The 2008 Grand Portage resource estimate was completed by Gary H. Giroux, P.Eng, MASc, of Giroux Consulting Ltd. in Vancouver, B.C. The estimate was based on a 3D geological model integrating 4,448 metres of diamond drilling of 43 drill holes, 2,290 assays, with 104 down-hole surveys collected between June and December 2006. The resource was reported utilizing gold cut-off grades ranging from 0.10 g/t to 3.00 g/t gold, as more particularly set out in the report. A complete copy of the report is available on Grand Portage's public filings on SEDAR (www.sedar.com). A gold cut-off grade of 0.50 g/t gold was selected as representing one possible mining scenario. For the purposes of the calculations, lognormal cumulative frequency plots were used to assess grade distribution to see if capping of high values was required and if so at what levels. For all elements, capping levels were established based on the individual grade distributions as follows: Gold -- a total of 18 gold assays were capped at 32.0 g/t gold, Silver --a total of 9 silver assays were capped at 165 g/t silver, Copper -- a total of 7 assays were capped at 11.7% copper, Cobalt -- a total of 5 assays were capped at 0.48% cobalt, Iron -- all iron assays were capped at 50% iron (the analytical detection limit).

3 British Columbia Mining Assessment Report 37471 "2017 Prepatory/Physical Report for the Blue Gold Project, Bridgeland Mineral Partnership, January 15, 2019", Assessment Report 28863 "Assessment Report on the Diamond Drilling on The Merry Widow Property, Grand Portage Resources, December 15, 2006" , Assessment Report 30002 "Diamond Drilling, Geochemical and Geophysical Assessment Report for the 2007 Program at the Merry Widow Project, Grand Portage Resources, April 14, 2008", Assessment Report 38855 "Assessment Report Merry Widow Property, Denis Pelletier, January 10, 2020". Grand Portage News Release dated September 12, 2006 and October 14, 2006.