Clone Property

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Bulk sampling of high-grade gold, Clone property.

Summary

The Clone property covers a number of high-grade gold and gold-cobalt bearing shear zones located at the head of Sutton Glacier, 20 kilometres southeast of Stewart, BC. The discovery in 1995 triggered a staking rush in the immediate area and ultimately led to a cash infusion of $2.6 million into joint owners Silver Grail and Teuton Resources by Prime Resources-HomestakeCanada, at that time the companies which controlled the rich Eskay Creek mine.  Drilling programs carried out from 1995-97 and in subsequent years by optionees defined several high-grade gold shoots within the Main Zone, situated at the southeastern end of a 3km long package of volcanic and sedimentary rocks.    Bulk sampling of one high-grade section within the Main zone resulted in a shipment of 102 tons grading 4.0 oz/ton gold.

The property had been owned 50-50, with Makena Resources (which earned its interest through an option) owing half and  Silver Grail-Teuton jointly owning the other half.  In September of 2017, Makena Resources sold its entire interest to Sunset Ventures.  At the same time, Silver Grail-Teuton optioned their combined 50% of the property to Sunset Ventures, on terms requiring payment of 5,000,000 shares of Sunset Ventures and $200,000 over a two year period (Silver Grail is entitled to half of these payments).  Sunset Ventures is also obligated to spend $1,950,000 on the Clone over a three year period.  Silver Grail-Teuton retain a 2% NSR.  Should Sunvset Ventures default, 50% of the property would be returned to Silver Grail-Teuton and Silver Grail-Teuton would have an option to purchase Sunset Venture’s remaining 50% interest for $100,000.

The Clone property is situated 20 kilometres southeast of Stewart, British Columbia. The Red Mountain gold project of Seabridge Gold (now in pre-feasibility) is located about 16 km to the north.   IDM Mining has recently purchased the Red Mountain property and is aiming to have it into production by 2020.   It would be feasible to connect from the Clone property to Red Mountain by way of an ice road over the Cambria Icefield.

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Aerial view of H-1 zone with camp in background, Clone property.