Located in the Quesnellia Terrane of southern BC, the belt has hosted several past-producing mining camps such as Sheep Creek and Rossland (~3.0M oz. Au).  Three main mineral showings - the Katie (or Jim), Swift (or Gus) and Ace in the Hole were explored separately in the 1980s by Noranda and Falconbridge.  There’s been numerous geological, geochemical and geophysical surveys completed on the property which successfully identified several mineralized exploration targets resembling alkalic porphyry Cu-Au deposits (Katie), and more Au-Ag enriched vein and shear-hosted systems (Swift).

Host rocks for the Swift are foliated and sheared volcanic units of the Lower Jurassic Elise Fm.  Gold is hosted in quartz and quartz-carbonate veins in strongly propylitized areas of mixed carbonate-silica-sericite and limonite alteration.

In November 2016, Valterra drilled adjacent to historical collar 87-6 targeting a near surface zone with hole SK16-011 and returned 0.96g/t Au over 6.6m.  The overall 2016 program included the collection of 120 soils (up to 700ppb Au), 30 rock samples were assayed (up to 1.74g/t Au) and 6 NQ2-sized drill holes totalling 1,954m were completed on two priority areas at Swift (see Table 1). 2017 drilling followed up on this with 8 shallow, widely spaced NQ2 holes targeting the large gold-bearing alteration corridor that runs across the entire property. Assay results were encouraging, with several holes intersecting wide zones of gold mineralization (see table 1.) 

Table 1: Select Swift Zone Drill Assay Results

Reported intervals are core lengths, true widths undetermined.  2016 Core samples were prepared and analyzed at Bureau Veritas Labs in Vancouver BC. 2017 Core samples were prepared and analyzed by MSA Labs in Langley, BC.  Accuracy of results is tested through the systematic inclusion of QA/QC standards, blanks and duplicates. Historic results have not been verified by Valterra personnel and should be treated as such.

The Katie deposit is interpreted as an alkaline copper-gold porphyry system, with a potassic core surrounded by a broad propylitic zone. Potassic alteration corresponds to the elevated copper and gold values. Sulphide minerals include py and cpy with minor po, sph, tetra, bn and mo.

Drilling to date has identified three areas on the Katie claims of significant Cu-Au mineralization, defined in 72 drill holes, which when modelled form a semi-continuous +0.1% Cu grade shell over an 1,800m cumulative strike. An internal report by Micon Engineering has identified 8 infill holes totaling 2,600 metres designed to upgrade continuity within the mineralized zone toward building a compliant Cu-Au Mineral Resource on the property. Widespread Cu-in-soil anomalies suggest several additional untested targets.

Further exploration could see the rapid expansion of the Katie Cu-Au deposits on the property through offset drilling and on several additional targets throughout the property.

Table 2: Select 2008 Diamond Drill Assay Composites @ Katie Main Zone

NQ Drill Core Selected From 2008 Katie Main Zone

Hole VKT08-064: Andesite Porphyry
0.23% Cu & 0.24 g/t Au over 1.98m

Hole VKT08-068: Sericitized Andesite + Quartz-Calcite Veins
0.40% Cu & 2.20 g/t Au over 1.90m