HIGHLIGHTS

Historical high grade bulk samples (220 tons at 4.95 ounces per ton, and 50 tons at 0.33 ounces per ton)

Road accessible and close to current power infrastructure

Untested with modern exploration methods as historical mine was closed in 1899 due a fire

Good potential for high grade bulk sample / micro mining to generate positive cash flows

Recently acquired property with numerous untested structures

Location

The Gold Hill-Blackjack Property is located in the Townships of Kirkup and Manross in the Kenora Mining Division of Ontario. The property is approximately 20 kilometres southeast of the City of Kenora, Ontario and is accessible from Highway 17 east to the Storm Lake Road.

Number of Claims & Hectares

The property consists of one claim made up of 15 claim units, comprising a total of 600 acres.

Exploration Target

gold

Date of Acquisition via a Purchase and Sale Agreement

As of February 10, 2016, in agreement with King Bay Gold Corp., Intact Gold acquired 100% of the Gold Hill-Blackjack property.

Ownership Interests

The property is subject to a 2-per-cent net smelter royalty on future gold production in favour of the original vendors of the property. The company has the option at any time to purchase 1 per cent of the royalty on payment of $1-million to the original vendors.

Operator

Intact Gold Corp.




The property comprises the former Gold Hill Gold Mine (4 shafts) and Blackjack (1 shaft) property s, a past producer and a prospect, respectfully, as well as the Golden Gate gold prospect (1 shaft), the Combination Vein gold prospect (1 shaft), the Gold Lake copper (Cu), gold (Au), nickel (Ni) occurrence and the Hollow Lake copper (Cu) occurrence. The Blackjack, Gold Hill, Golden Gate and Combination Vein properties were all mined in the late 1800's. Work ceased in 1899 when the mill at the Gold Hill mine burned down.

blackjack

Gold Hill has a reported historical production of 220 tons grading 4.95 oz Au/ton for a total historical production of 1,089 oz Au and Blackjack produced a historical bulk sample of fifty tons that produced 0.33 oz Au/ton. No production was reported from the Golden Gate and Combination Vein auriferous vein zones. Historically, at Gold Hill, gold occurs mainly in the Pebble vein, a system of quartz veins in a shear zone hosted by mafic volcanics, within 1.6 kilometres of the western edge of the Dryberry Batholith. This batholith appears to be mineralized along its entire western contact.

At Blackjack, gold occurs within and adjacent to ribboned and vein quartz in a highly fissile, chloritized, cross-cutting, carbonatized, shear zone, striking east-west, and within a highly silicified fine-grained felsic intrusive rock, possibly an offshoot of the batholith. The Pebble vein and shear zone system is reported to be continuous for at least 490 metres (or approximately 1,600 feet) (Kidd Creek). The shafts and numerous surface workings confirm this. It consists of a series of en echelon quartz veins in a shear zone that pinch and swell along a strike of from 110° to 125°, dipping an average of -75°S and ranging from eight inches to thirty inches wide. The vein system has been developed by three shafts with a reported fourth shaft of now uncertain location. The Gold Hill Pebble vein and Blackjack veins provided most of the ore mined. The remains of two mills, two tailing ponds, and old newspaper clippings attest to the possibility of a much larger unreported historical production. The following shaft records indicate the amount of work done during this early period.

Pebble Vein
Goldhill #1 Shaft - 60' deep
Goldhill #2 Shaft- 150' deep, 2 levels totalling 83' drifting and crosscutting
Goldhill #3 Shaft - 25' deep
Goldhill #4 Shaft - 120' deep, 52' drifting
Blackjack

Shaft 112' deep, 2 levels and stoping area, l84' drifting on level 1, 25' drifting on level 2.

Combination Vein

Shaft, 55' deep.

Golden Gate

Shaft, 85’ deep, drifting 50'. Extensive surface trenching on several veins.




The occurrence of a cross-cutting shear zone at the Blackjack, and carbonatized breccia zone at Gold Hill has allowed for a greater volume of gold to be concentrated, thus distinguishing these old prospects from many others in the area. The future potential of the Gold Hill - Blackjack property may lie in the delineation of these known structures laterally and vertically, and in the location of other, hitherto unknown ones nearby, and particularly the locus of vein convergence to the west of the Blackjack prospect under a swamp. Other past producers in the region included the Sultana Mine, which produced 78,000 tons grading 0.21 oz Au/ton (16,000 oz Au), 7 miles to the northeast, and the Wendigo Mine, 4 miles to the southeast which produced 206,054 ton of ore grading 0.33 oz Au/ton (67,000 oz Au).

blackjack

Three diamond drill holes were completed by Kerr Addison in 1968. A few surface property examinations were done in the 1980’s, including one by Kidd Creek Mines in 1984-1985, when a combined air-mag and V.L.F. airborne survey of the whole then existent property occurred, backhoe clearing and washing all vein exposures was done, geological mapping of property and detail of surface workings was accomplished, and testing of I.P. and geochemical methods were undertaken. The Kidd Creek report recommended diamond drilling, but the company was taken over by Falconbridge and options dropped. No other significant drilling / mining has occurred here since 1899 and, except for two 100 metre diamond drill holes in 1990, one at Gold Hill and one at the Combination vein, no systematic drilling has ever occurred here. King’s Bay Gold Corporation is not treating the above mineral resource estimates as a National Instrument 43-101 defined resource verified by a qualified person. As such, the estimates and results as described herein are historical and should not be relied upon.