Hirsikangas (Central Finland)

The Hirsikangas deposit in Central Finland is a Palaeoproterozoic orogenic gold deposit located on a 30km crustal scale shear zone. Hirskangas is a wholly owned subsiduary of  Northern Aspect Resources Ltd (“NARL”) acquired by Rupert Resources in May 2018. The Project has a historical resource estimate (“the historical estimate”), prepared using the guidelines of the 2004 Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the “2004 JORC Code”), based on a 0.5g/t Au cut off grade including, Indicated mineral resources of 3.0 Mt at a grade of 1.23 g/t Au (119koz) and Inferred mineral resources of 2.7 Mt at a grade of 1.27 g/t Au (106koz) as summarised in the Hirsikangas Technical Report (described in Technical Information below). While the Company considers the historical estimate to be relevant to investors, a qualified person has not done sufficient work to classify the historical estimate as current mineral resources and the Company is not treating the historical estimate as current mineral resources. The historical estimate is contained within 1.2km of strike length and drilled at shallow levels. The prospect, that outcrops at surface, is open  down dip and along strike in both directions and there is evidence of a potential parallel structure.

Since 2016, the geological team working at Hirsikangas has expanded the licence package from the small exploration permits hosting the current Hirskangas resource to cover the entire 30km strike of the indicated shear zone and potential parallel structures (see Figure below). In the first season of fieldwork under NARL’s ownership, a sampling and mapping campaign was begun to cover the strike extent of the shear zone and yielded a number of gold bearing outcrops, boulders and soil anomalies. This work has continued in the summer season of 2018. The Hanni target located south east along strike from the Hirsikangas deposit has previously been identified by the Geological Survery of Finland (GTK) and has some limited historic drilling, along with IP geophysics. NARL has applied for an exploration permit covering the extent of the target and undertaken stakeholder meetings with landholders and local authorities to discuss its exploration plans for the area. The figure below shows the extent of the historic sampling along with work by NARL’s team in 2017 and the widespread distribution of anomalous boulders throughout the reservation area along the Ruhanperä shear zone. Samples collected from boulders grading 21 g/t Au, 24 g/t Au and 110 g/t Au were found by prospectors close to the Hanni target (these samples are selected samples and are not in-place and are not representative of the mineralization hosted on the property).

Hirsikangas licence area – August 2018

Technical Information

Certain disclosure contained in this summary of the historical resource estimate for Hirsikangas of a scientific or technical nature has been summarized or extracted from Tthe technical report entitled “Hirsikangas Gold Deposit, Central Ostrobothnia, Finland”, with an effective date of November 30, 2009 (the “Hirsikangas Technical Report”). This report was prepared for Belvedere Resources Ltd. (“Belvedere”) by Thomas Lindholm, M.Sc, MAusIMM, Senior Mining Engineer of GeoVista AB, and who is an independent Qualified Person as such term is defined in NI 43-101 and sets forth the historical estimate. The Hirsikangas Technical Report was filed by Belvedere under its profile on SEDAR (www.sedar.com) on November 30, 2009.  The mineral resource estimation included in the Hirsikangas Technical Report is historic in nature  and was prepared using the guidelines of the JORC Code.  There are no material differences between the definitions of Indicated and Inferred mineral resources under NI 43-101 (as defined in CIM Definition Standards on Mineral Resources and Mineral Reserves adopted by CIM Council (the “CIM Code”)) and the equivalent definitions in the 2004 JORC Code.  The Company notes that whilst the Hirsikangas Technical Report states that a 0.5g/t Au cut-off grade was considered to be a reasonable starting-point should Hirsikangas be developed into an open pit mine, no other economic parameters were included in the report. An assessment of the reasonable prospects for economic extraction is required for mineral resources under both JORC and CIM Codes.

A qualified person” for the purposes of NI 43-101 has not done sufficient work to classify the historical estimate as current mineral resources and Rupert is not treating the historical estimate as current mineral resources.  A review by the Company indicates that the data preparation for the historial estimate as disclosed in the Hirsikangas Technical Report was undertaken according to industry best practices and the historical estimate provides an appropriate basis for the Company’s ongoing analysis of the Hirsikangas Project. Since the Hirsikangas Technical Report, Belvedere completed a 16 hole, 1106 metre drill campaign at Hirsikangas. The results of this drilling program were filed on SEDAR by Belvedere on July 3, 2012. This drilling was outside the area of defined mineralisation and whilst promising is not expected to materially change the existing resource.

A new NI 43-101 report will be completed by the Company within 180 days of the closing of the acquisition of Northern Aspect Resources Ltd by Rupert on May 15, 2018, and will include all subsequent drilling completed by Belvedere and the drilling completed by Rupert disclosed in this release.  To complete the new NI 43-101 report a site visit to the project will be undertaken by a qualified person, whom will also review the drilling, surveying, sampling, QAQC and assay methods used by Rupert and all previous operators to assess the reliability of the data to be included in completing the new NI 43-101 report.

The key assumptions used to prepare the historical estimate are as follows. Geological and assay information from 47 diamond drill holes that were drilled on a grid ranging from 100 m x 100 m to 50 m x 50 m. Mineralisation was defined using a cut-off grade of 0.5 g/t Au, permitting the inclusion of up to 2m of waste. The mineralisation was divided into 7 zones. Drill core samples were assayed for Au. Approximately 66.5% of assays are from samples that are 1.0 m or shorter. All samples have been regularised to 2 m composites. Block grades were interpolated for Au using Inverse Distance Squared. Bulk density of the mineralisation was based on actual data collected during exploration. The average density from the 264 samples from within the mineralized zone is 2.72 tonnes/m3.  No part of the mineral resources is classified as Measured. Indicated mineral resources are defined as those portions of the deposit estimated with a drill spacing mostly defined by 50m X 50m drill spacing. Inferred mineral resources are defined as those portions of the deposit for which grade is interpolated utilising at wider drill spacing or fewer number of intersections but with a relative degree of confidence on the geological continuity of the mineralisation. Indicated mineral resources are separate from, and not included in, Inferred mineral resources.  The mineral resources were reported at a 0.5g/t Au cut-off grade that was considered to be a reasonable starting-point should Hirsikangas be developed into an open pit mine, no other economic parameters were included in the Hirsikangas Technical Report.

Page last updated on: Sep 10, 2018 @ 4:30 pm