BTU Metals Corp.

Gold Exploration in the Republic of Ireland

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Overview

BTU Metals Corp. (TSXV:BTUis a highly-prospective gold exploration company focused on its Dixie Halo Gold project adjoining Great Bear Resources Ltd. the Red Lake Mining camp, Ontario.

In Ontario’s Red Lake district, BTU has acquired three properties in the Dixie area which wrap around the northeastern and eastern portions and continue to directly south of Great Bear Resource Corp.’s (TSXV:GBR, OTC:GTBDF) Dixie project, where 16.35 meters of 26.91 g/t gold and seven meters of 44.47 g/t gold were recovered from the Hinge zone.

BTU has also recently acquired the Burnthut property north of Dryden, which adjoins the northeastern boundary of First Mining’s (TSX:FF) Goldlund project in northwestern Ontario. In the late 1990s, Triex Resources Corp. had control of the property and recovered 16.2 meters grading 1.03 g/t gold, 0.4 meters grading 10.29 g/t gold and 0.8 meters grading 24.34 g/t gold at the Shaft zone. Triex believed that the property could offer large tonnage gold target with bulk mining potential. BTU Metals will be verifying historical findings on the property in future work programs.

The geological team has prepared compilation reports identifying specific areas of interest and has conducted multiple site visits in October and November, 2018.

In the Republic of Ireland, BTU Metals acquired an option for a 100-percent interest in the Galway project in mid-2017, following extensive due diligence, during which the company collected high-grade, multi-ounce samples have been taken. In May 2018, BTU Metals accelerated the terms of the agreement and now has 100 percent ownership of the property. The project remains on standby as Ireland continues to refine its processes for new drill permit applications.

BTU Metals is led by an experienced management team with deep knowledge of the regions and valuable local relationships. The company also has notable support from a savvy geological consulting organization, which in the case of Ireland also helped move Dalradian Resources through their exploration initiatives.

Company Highlights

  • Multiple prospective properties in Ontario, Canada including Dixie Halo and Dixie South/East, near Red Lake, contiguous with Great Bear Resources (TSXV:GBR) and Burnthut, near Dryden, north of First Mining (TSE-FF)
  • Historical results on the Burnthut property include 16.2 meters grading 1.03 g/t gold, 0.4 meters grading 10.29 g/t gold and 0.8 meters grading 24.34 g/t gold at the Shaft zone
  • In Republic of Ireland, 160-square-kilometer property following exploration model used by Dalradian Resources for nearby project with indicated and inferred resource of 4.4 million ounces of gold
  • High-priority Lee occurrence with grab sample results of 49.6 g/t gold and 7.25 g/t gold
  • Experienced management team with deep local knowledge holds 15 percent to 20 percent of shares

Dixie Halo

Dixie Halo South & South East

The Dixie Halo South & Dixie Halo South East both adjoin and are contiguous to the south and south-west border of Great Bear Resources Corp.’s (GBR – TSX:V) Dixie Project located in the Red Lake District of Ontario. Extensive work has been carried out on the properties over the previous 10 years including as recently as this year. A review of this prior work is being undertaken by the Company’s geological team. A news release containing their findings along with the terms of the agreements will follow.

Dixie Halo East

The Dixie Halo property consists of 10 claims comprising 85 units (1,514 hectares) and wraps around the north-eastern and eastern portions of the Great Bear Resource Corp.’s Dixie Project. The northwestern portion of the Dixie Halo property is approximately 2.3 kilometers northeast of Great Bear’s “North West Step-Out” target and approximately 4.5 kilometers northeast of the “Hinge Zone”. Great Bear recently reported a high-grade discovery in drill core assaying 16.35 meters of 26.91 g/t gold and 7 meters of 44.47 g/t gold in two holes on the “Hinge Zone” at the Great Bear’s Dixie Project (see PR dated August 22, 2018).

Geology

Portions of the Dixie Halo property were actively explored as recently as 2008 (Trueclaim Resources Inc.-Assessment Report # 20006619) with two drill holes located within 250 meters of the Dixie Halo property boundary. A complete review of the assessment files will be initiated immediately. Portions of the Dixie Halo property cover the contact between intrusive rocks and metavolcanics marked by regional magnetic geophysical trends. The property has excellent logistics and is traversed by Ontario provincial highway 105. Topography is subtle, with extensive overburden cover. Mobile Metal Ion (MMI) geochemistry was completed in 2008 with anomalous zinc located just south of the Dixie Halo property.

Burnthut Project

In September 2018, BTU Metals acquired the Burnthut gold project in northwestern Ontario. The property adjoins the northeastern boundary of First Mining’s Goldlund project and is currently east and northeast of First Mining’s current regional drilling area. The property is located approximately 60 kilometers from Dryden, Ontario and covers all of the historic gold occurrences on Burnthut Island in Lake Minnitaki.

Historical exploration

Previous exploration conducted on the property in the 1940s and early 1960s consisted of 2,610-meters of drilling and a 14.6-meter shaft. The drilling led to the discovery of four historic mineralized gold zones on the southern half of Burnthut Island. The four zones are known as North, No. 1, No. 2 and Shaft.

In the late 1990s, Triex Resource Corp. had control of the property where they uncovered a historic gold occurrence on the Tak patents, which the property is contiguous to. In 1999, Triex completed shallow drilling on two quartz vein systems with the porphyry and returned values over 0.6 meters grading 35.14 g/t gold in the No. 1 zone and 16.2 meters grading 1.03 g/t gold, 0.4 meters grading 10.29 g/t gold and 0.8 meters grading 24.34 g/t gold at the Shaft zone.

Limited assaying was completed along with the drilling. However, Triex reported that the porphyry zone had a true width of approximately 50 meters in places and could offer large tonnage gold target with bulk mining potential.

In September 1999, Triex drilled two holes on Burnthut Island to evaluate quartz feldspar porphyry zones that returned results of 3.8 meters grading 1.57 g/t gold and 0.3 meters grading 1.55 g/t gold. Approximately 500 meters west of Burnthut Island, Triex rediscovered old pits and gold showings and recovered eight grab samples that averaged 2.68 g/t gold.

The past-producing project delivered 2,959 ounces from 8,599 tons between 1905 and 1948. Since then, in 1950, Perron Gold Mines conducted additional drilling and reported assays of up to 39.8 g/t gold over 1.28 meters.

In 1979, sampling was conducted in the western part of the mine zone. Results from this program included results of 1.12 to 1.85 ounces of gold per ton over an average width of 3.5 feet. Lastly, in 2014, GeoNovus conducted 371 meters of drilling in three holes. The highest intersection from this program was of 15.3 g/t gold over 4.0 meters, including 48.8 g/t gold over 1.0 meter.

Work program

In November 2017, BTU Metals launched its drill program on the property to drill four holes, extending the footprint of past drill programs and allowing the company to test the IP chargeability anomalies on the property at depth.  The company is currently awaiting assay results from this program.

Galway Gold Property

The Galway property is made up of six contiguous claims that collectively measure 160 square kilometers. It is located in the central region of the Republic of Ireland, 45 kilometers northwest of Galway.

The property sits within Dalradian supergroup metasediments, a type of formation which also hosts the Dalradian Resources Curraghinalt gold deposit with a mineral resource of 2.3 million inferred ounces and 2.07 million indicated ounces of gold. As the Galway project is showing significant similarities to the Curraghinalt project, BTU Metals plans to implement Dalradian’s exploration model as they move forward with the development of the property.

The Galway property has a number of potential target zones and occurrences that are associated with shear zones and fault structures. These include the five primary focus areas that BTU Metals has identified based on field work conducted by the previous proprietor in 2015 and due diligence work conducted in June 2017: Lee, Glenlusk and the Eastern Escarpment, Clements Mine and Kilmeelickin.

BTU Metals Galway Property Ireland

Lee

The Lee occurrence is BTU Metals’ high-priority target for exploration and development. In the 1980s, boulders discovered within the zone by Ovoca Gold Exploration returned values of 195 g/t gold and 240 g/t gold. Ovoca also conducted trenching in breccia that contained gold values of up to 12 g/t gold. In situ results on the property ranged from 1.5 g/t gold and 66 g/t gold and also presented values of 141.4 g/t silver.

As part of due diligence activities conducted prior to the acquisition, BTU Metals collected grab samples from the Lee occurrence that returned high-grade results of 49.6 g/t gold and 7.25 g/t gold.

In November 2017, BTU Metals launched its first ground program on the property, during which they have conducted mapping, sampling, prospecting and geophysical surveys. As part of this program, the exploration team identified a new vein just 250 meters away from the existing Lee vein and have also outlined another structure that shows potential for being another vein.

Recent ground and air geophysics has identified an interpreted vein-type structure. This, together with the high-grade samples and wide-spread soil anomalies over a one kilometer zone all point to a geologic setting similar to that which led to the discovery of the important Curraghinalt deposit in Northern Ireland

Eastern Escarpment

The Eastern Escarpment occurrence is on the eastern portion of the property, on an escarpment area to the east of Glenlusk, and hosts a 3,000-foot anomalous gold and copper zone, which includes strike lengths of up to 120 feet and average grades of 1.1 percent copper and 5.6 g/t gold. Trench samples from historical exploration conducted in 1988 range from 0.5 g/t gold to 73 g/t gold and drilling from that period returned results of 1.5 meters of 15.2 g/t gold, 4.2 meters of 6.2 g/t gold and 2.7 meters of 7.8 g/t gold.

As part of their due diligence, BTU Metals also collected grab samples from the Eastern Escarpment occurrence, and saw results of 26.3 g/t gold and 3.73 percent copper.

Clements Mine

The Clements mine is a past-producing mine located on the Galway Gold trend. The property hosts massive sulphides with maximum values of 0.5 percent copper, 22.5 percent lead and 5.2 percent zinc. Results from the zone include 2.2 g/t gold and 68 g/t silver, as well as 8.5 g/t gold from a vein trending to the northwest.

Glenlusk

The Glenlusk area is a prolific area with a number of gold occurrences. Sample results from the region include 10.1 g/t gold in pyrite veinlets, 5.06 g/t gold from massive pyrite with minor quartz, and 2.37 g/t gold from a vein of pyrite quartz with cross-cutting sulphide veinlets.

Kilmeelickin

The Kilmeelickin area hosts a breccia zone with lead, zinc and barium. Samples from the zone have shown values of up to 18.3 percent lead, 9.7 percent zinc and 0.1 g/t gold.

Work plan

BTU Metals has submitted drill permit applications focusing first on Glenlusk. The company awaits clarification from the Exploration and Mining Division (EMD) of the government of the Republic of Ireland with respect to permitting approvals. Should resolution be satisfactory, BTU Metals will continue conducting further prospecting, sampling, mapping and drill target identification and drill holes targeting the exposed Lee vein and to test along the length of the soil and float anomaly. These drill holes are designed to confirm the structural interpretation of the known mineralization and to test for additional veins.

Moving Forward

BTU Metals will be verifying historic findings, conducting site visits in Ontario to delineate future work programs. In Ireland, the company awaits clarification from the government.

Management

Paul Wood—CEO and Director

Paul Wood has led and executed numerous transactions across the globe in minerals exploration and in other sectors. With a background in company formation, transaction structuring and M&A, he has a reputation for successfully driving projects to completion in multiple jurisdictions including Canada, USA, Europe, China, Japan and Africa. His background, networks and skill sets will serve BTU very well as we lever the strengths of this decidedly strong team as it embarks on its exploration projects in Ontario and in the Republic of Ireland. He received a BA from Dalhousie University and his MBA from University of Toronto Rotman.

Mike England—President and Director

Mike England has been involved in the public markets starting in 1983 working on the floor of the Vancouver Stock Exchange as a floor trader after successfully completing the Canadian Securities, Options and Futures Courses. Since 1995 he has been involved directly with public companies serving various roles including investor relations, CEO, directorships and presidencies and has raised in excess of $40 million to date for exploration and acquisitions.

Don McKinnon—VP of Exploration

Don McKinnon has been involved in the mining exploration industry since a very young age. Son of Don McKinnon Sr., of Hemlo fame, he has been actively exploring mining properties in Ontario and internationally. This includes having been involved in managing all aspects of exploration from property acquisition and grass roots exploration, to seeing projects through to the development stage. He also has an extensive network of business associates throughout Canada as well as internationally.

Dennis Logan—CFO

Dennis Logan is a Chartered Professional Accountant (CPA, CA) and received both his BA and his MBA from the University of Toronto and received his Chartered Accountant designation in 1996. He is a former Director and Chief Financing Officer for Almonty Industries Inc. (September 2011 to March 2017), a TSXV listed company. Prior to joining Almonty in 2011, he spent 15 years in Canadian Capital Markets Industry where he held a number of senior management positions including Managing Director, Investment Banking at Desjardins Securities Inc. from 2007 to 2011 and Director, Investment Banking at Westwind Partners Inc. and Partner at Loewen Ondaatje McCutcheon Limited and Executive Director, Investment Banking at CIBC World Markets. He is a Director and Chair of the Audit Committee of Eurocontrol Technics Group Inc., a TSXV listed company, and former Director of Pinetree Capital Ltd., a TSX listed company.

Douglas Hunter, MSc, P.Geo—Director

Douglas Hunter has worked continuously in mineral exploration and mineral deposit evaluation professionally for the past 40 years. He is an Ontario registered professional geologist (APGO, 2002) and has been a member of the PDAC since 1977. He began his career with the Ontario Department of Mines and moved into industry in the mid 1970’s. He has exploration management experience with both junior and senior mining companies throughout the world with a focus on gold and base metals. He is a co-founder and was senior officer (vice-president, exploration and director) of two publicly trading companies; Wallbridge Mining Company Limited and Duluth Metals both of which were listed on the Toronto Stock Exchange (TSX). Wallbridge was awarded in 2004 the Prospectors and Developers Association of Canada E3 award (Environmental Excellence in Mineral Exploration).

Twila Jensen—Director

Twila Jensen will act as an independent director for the company. She has over 15 years of experience working in the capital markets and has extensive experience in marketing. She has worked with hundreds of public companies in various sectors, and her passion lies in sales and marketing with a focus on strategy.

Tony Pryslak – Advisory Board

Mr. Pryslak is an institution in the Red Lake camp having been working in NW Ontario since the 1960s including holding increasingly senior posts as mapper and Resident Geologist in Red Lake. In addition, Mr. Pryslak has held senior geological positions at major corporations, including posts with Abitibi-Price and BP Minerals and as a consulting geologist to Goldcorp and Rubicon. Mr. Pryslak’s 50 years’ experience at Red Lake includes work in recent years consulting with BTU’s vendor of the recently acquired Dixie Halo South project.


 

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