Mike Property - Babine Region, British Columbia

The Mike Property is an early-stage copper exploration project situated in the Babine region of north-central British Columbia, within the Omineca Mining Division. Covering approximately 36.89 hectares, the property contains the documented Mike mineral occurrence (MINFILE 093N 232). The showing is associated with a monzonite-to-diorite brecciated intrusive body containing chalcopyrite and bornite mineralization. The occurrence is classified as an L03 Alkalic Porphyry Cu-Au deposit type. Its geological setting, characterized by intrusive brecciation, copper sulphides, and multiple phases of the Hogem batholith, provides a geological basis for additional porphyry-style exploration.

The region surrounding the Mike occurrence is underlain by two phases of the Hogem batholith, which intruded Upper Triassic sedimentary rocks of the Inzana Lake Formation of the Takla Group. One intrusive phase consists of Late Triassic to Early Jurassic gabbroic-to-dioritic rocks, while a second phase consists of Early Jurassic quartz monzonitic-to-monzogranitic intrusive rocks. The known showing occurs where a rock pit exposes a monzonite-to-diorite brecciated intrusive body. Mineralization occurs within fragments of diorite breccia contained within the monzonitic body. This relationship between different intrusive phases, brecciation, and copper sulphides provides the principal geological target for continued exploration.

The Mike showing is exposed within a rock pit on the north side of the T-Road. The pit exposes a monzonite-to-diorite brecciated intrusive body, with copper mineralization consisting principally of chalcopyrite and bornite. The sulphides occur within diorite breccia fragments enclosed by the monzonite body. Several additional small subcrop exposures are reportedly scattered across the bottom of the rock pit. The supplied MINFILE information does not provide assay values for the original Mike discovery. Consequently, the documented mineralization establishes a geological exploration target but does not, by itself, establish economic grade or tonnage.

Follow-up exploration during 2016 included a soil-geochemical program consisting of approximately 35 soil samples followed by XRF analysis. The supplied property description reports that the program confirmed copper and molybdenum in soils in the southwestern portion of the nearby Majazz property. The anomalous zone was reported to measure approximately 800 metres × 400 metres. This regional Cu-Mo geochemical anomaly provides exploration context for the Mike Property, but it is located on the nearby Majazz property and must not be represented as a confirmed geochemical anomaly within the 36.89-hectare Mike tenure.

The most compelling geological feature at Mike is the association between copper mineralization and intrusive brecciation. Breccias can provide important fluid pathways within porphyry systems, particularly where multiple intrusive phases interact with faults, fractures, and hydrothermal fluids. At Mike, chalcopyrite and bornite occur within diorite breccia fragments enclosed by a monzonitic intrusive body. Further mapping, sampling, and geophysical work would be required to establish the extent, continuity, and significance of the mineralized breccia.

The 36.89-hectare Mike Property provides a compact exploration opportunity centered on a documented alkalic porphyry Cu-Au occurrence. Its attraction is the ability to focus exploration on a known chalcopyrite-bornite-bearing intrusive breccia within the Hogem batholith geological environment. Initial work could include compilation of historical information, geological mapping, systematic rock and soil sampling, multi-element geochemical analysis, and appropriate geophysical surveys. Follow-up drilling should be designed only after the target's geometry, alteration, mineralization, and surface geochemical or geophysical responses have been assessed. The supplied information does not establish a mineral resource, reserve, economic grade, or defined drill target.

Aurora Gold and Gravels Inc. is seeking a company capable of advancing the Mike Property through systematic exploration and eventual drill testing. The vendors are open to an outright cash and/or share acquisition, a staged option-to-purchase agreement, or another mutually acceptable transaction structure, provided that the vendors retain a Net Smelter Return (NSR) interest. An outright purchase could involve a negotiated cash and/or share payment for 100% acquisition, subject to a retained NSR royalty. Under an option agreement, a company may earn up to 100% ownership through staged cash payments, company shares, and exploration expenditures. A potential 2% NSR has been discussed, with the final royalty and any buyback provisions subject to negotiation. All purchase consideration, exploration commitments, payment schedules, and other commercial terms remain negotiable and subject to execution of a definitive agreement.