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BAM Project, British Columbia

BAM Project Map

BAM is a resource-stage gold-copper exploration project within a well-known area of British Columbia’s Golden Triangle.  P2 is advancing exploration on multiple zones: a historical copper zone; the Monarch Gold Zone which was first discovered by P2 in 2020; and a potential gold/copper porphyry system at depth.

Location and access to infrastructure

The BAM property consists of ten mineral tenures that cover an area of over 8,100 hectares, located approximately 150 kilometers northwest of Stewart, BC. BAM has good access to existing infrastructure, with Highway 37 and the Northwest Transmission Line approximately 35 kilometers to the east of the property, and the Galore Creek Project access road approximately two kilometers to the southeast.

P2 Gold’s opportunity – advance a gold discovery near good access to infrastructure

The BAM property first came to prominence in the 1960s with the discovery of the Jan Copper Zone and again in the 1980s with the discovery of high-grade gold in surface trenches, but has not been systematically explored for large porphyry related copper-gold or a bulk tonnage gold-silver system using modern exploration techniques.  The property’s newly-discovered Monarch Gold Zone – the newest gold discovery in the Golden Triangle - is open in multiple directions and the property has significant potential to host gold/copper porphyry mineralization at depth.

2022/2023 Exploration – expanding the Monarch Gold Zone and locating the source porphyry

The focus of the 2022 BAM Drill Program was to attempt to define the limits of the epithermal surface mineralization at the Monarch Gold Zone and provide geologic information to aid in the interpretation of the airborne and ground geophysical surveys.  This interpretation of the geophysical surveys is essential to the discovery of the higher-grade feeder systems for the near-surface epithermal gold mineralization and any associated porphyry mineralization at depth.

Significant near-surface gold mineralization has now been defined over a strike length of more than one kilometer in the Monarch Gold Zone, which is open to the north and south. The 2022 BAM drill program and geological mapping defined multiple structural trends which converge at the Monarch Gold Zone and were active either during and/or after the mineralization event. Gold grades intersected by the drilling generally increase towards these structures, suggesting they are potentially related to a feeder system. Drill holes in the latter half of the program also showed that the conglomerate along the eastern edge of the Monarch Gold Zone is well-mineralized for over one kilometer. The conglomerate lies along the contact with the More Creek Granite suggesting that the contact may be part of the feeder system for the gold mineralization.

The 2022 BAM Exploration program consisted of:

A plan map and sections for 2022 BAM drill results can be found here.

For 2023, crews are expected to mobilize to BAM in mid-May with the first drill mobilized to site in early to mid-June.  A three-dimensional geophysics interpretation of the BAM Project, incorporating the results of the NSMT Survey and the ZTEM Survey is expected to be completed Q1/23.  This interpretation will be compiled with the available drill data and surface mapping to develop targets for the 2023 BAM Exploration Program to test for the feeder zones and the porphyry system at depth.

2020/2021 Exploration – discovery of Monarch Gold Zone

P2 optioned BAM in July 2020 and in August 2020 completed a soil geochemical sampling program that defined the Monarch Gold Zone near the north end of the grid in an area that had never been drilled in the past.  Based on the soil sampling, the Monarch Gold Zone measures 1,100 meters by 600 meters and covers a hornfelsed calcareous sediment in contact with a granitic batholith.  The zone is defined by numerous samples with greater than 25 ppb (0.025 g/t) gold, of which 16 samples assay greater than 500 ppb (0.50 g/t) gold with the highest sample assaying 5,730 ppb (5.73 g/t gold).  The zone also hosts highly anomalous values in arsenic, antimony, copper, mercury and tellurium that, in combination with the size and location of the anomaly, are indicative of a robust epithermal system.

The soil geochemical sampling program consisted of approximately 60-line kilometers of survey lines covering an area measuring 4.8 kilometers by 2.0 kilometers.  The main survey lines were spaced at 200-meter centers running east-west, with shorter infill survey lines spaced at 100-meter centers locally covering areas with historical anomalies.  Soil samples were collected every 50 meters along each of the survey lines.  Approximately 1,100 samples were collected and assayed.

In 2021, P2 completed an 835.9 meter, six-hole drill program at BAM, drilling four holes at the Monarch Gold Zone and two holes at the historical Jan Copper Zone.  All four holes drilled in the Monarch Gold Zone intersected gold, with both holes at the Jan Copper Zone intersecting copper.

Selected Drill Results, Monarch Gold Zone 2021 (BAM-001 to BAM-003 and BAM-005)(1, 2)

Hole Collar Coords Dip/
BAM-001 N6341778
-45/90 18.25 69.00 50.75 0.62 4.87
    incl. 46.10 55.85 9.75 1.11 4.07
BAM-002 N6341711
-45/270 20.00 35.30 15.30 0.51 3.25
BAM-003 N6341996
-45/270 5.35 51.20 45.85 2.63 3.08
    Incl. 34.70 51.20 16.50 5.29 4.27
    Incl. 42.00 51.20 9.20 7.30 4.44
BAM-005 N6342305/
-45/270 47.40 109.70 62.30 0.65 -
    Incl. 91.50 109.70 18.20 1.14 -

Selected Drill Results, Jan Copper Zone 2021 (BAM-004 and BAM-006)(1, 2)

Hole Collar Coords Dip/
BAM-004 N6340892/
-45/270 68.00 107.25 39.25 0.01 1.10
    incl. 75.70 84.85 9.15 0.04 3.23
BAM-006 N6341173/
-45/270 7.20 14.00 6.80 0.04 0.33
  1. True thickness to be determined.
  2. All samples were submitted for preparation and analysis by ALS Global at its facilities in Terrace, BC.  All samples were analyzed using multi-digestion with ICP finish and fire assay with AA finish for gold.  Samples with over 10 ppm gold were fire assayed with a gravimetric finish. One in 20 samples was blank, one in 20 was a standard sample, and one in 20 samples had a sample cut from assay rejects assayed as a field duplicate at ALS Global in North Vancouver, BC.

Historical exploration

The BAM Property was discovered in the 1960s when regional exploration that was focused on copper mineralization resulted in the discovery of the Galore Creek deposit, approximately 35 kilometers to the west, and the Schaft Creek deposit, approximately 20 kilometers to the northwest; both deposits are large copper-gold porphyry mineralizing systems.  On the BAM Property, drilling in 1967 outlined an area of copper mineralization with minor silver, identified as the Jan Copper Zone, in a replacement zone hosted by brecciated Lower Permian limestone and dolomite to the south of P2’s newly discovered Monarch Gold Zone.

More recent exploration efforts on the BAM Property have focused on gold.  This work started in the mid-1980s when Chevron Canada Resources Limited collected channel samples from trenches that returned up to 7.4 grams per tonne gold over 19.3 meters to the south of the Jan Copper Zone.  Sporadic exploration work has been completed on the property since that time.  P2 believes these historical results provide an indication of the potential of the BAM Property and are relevant to planned exploration.

Quality Assurance

Ken McNaughton, M.A.Sc., P.Eng., Chief Exploration Officer, P2 Gold, is the Qualified Person responsible for the BAM Property exploration programs and has reviewed, verified and approved the above scientific and technical information.

Option terms

The acquisition is structured as a two-phase option to acquire a 100% interest in the BAM Property.  The initial option is for a 70% interest in the property.  On exercise of the initial option, the Company will have the right to acquire the remaining 30% interest, for a 100% total interest, or remain at 70% and enter into a joint venture with the vendor.

The terms of the initial option, for a 70% interest in the property, are as follows:

Year Cash Common Shares Work Commitment
Signing $60,000 200,000 -
1 $150,000 200,000 $150,000
2 $200,000 200,000 $250,000
3 $550,000 800,000 $350,000
Total $960,000 1,400,000 $750,000

Following exercise of the option, the Company has the right for a period of 120 days to acquire the remaining 30% interest in the BAM Property, for a 100% total interest, on payment of $7.5 million of which up to $4 million may be paid in shares of the Company at its election.  If the Company elects to not purchase the remaining 30% interest, the Company and the vendor shall form a joint venture, with the Company appointed the operator.  During the first three years of the joint venture, the Company will fund the vendor’s participating interest in the joint venture.  If the vendor fails to sell its interest in the joint venture during such three-year period, the vendor’s interest will convert to a 2% net smelter returns royalty (the “nsr”), provided that the Company will have the opportunity to purchase the vendor’s interest prior to such conversion for $7.5 million.  Following the conversion of the vendor’s interest to a 2% nsr, the Company may purchase 1% of the nsr for $2,000,000 (inflation adjusted from 2020).  The vendor has also agreed to assign to the Company two claims that form part of the BAM Property for $40,000 and a 2% nsr, 100% of which can be purchased by the Company for $1,125,000 prior to commercial production on such claims and 1% of which can be purchased for $300,000 (inflation adjusted from 2020) after commercial production is achieved on such claims.

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