Tarku Resources (TSXV:TKU)

Gold, Vanadium and Base Metal Exploration in Québec

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Overview

Tarku Resources (TSXV:TKU) is a precious, base and strategic metals exploration company that operates under a prospect generator model. The company is focused on building strong partnerships with local communities and is committed to working in an environmentally and socially responsible manner.

As part of the company’s project generator model, Tarku has seven properties in Québec, the world’s fourth-best mining jurisdiction. The company is focused on developing its three Matagami gold-base metal properties: Admiral, Apollo and Atlas. Each property is accessible year-round by public roads and lies in Rivière Waswanipi (RWSZ) and Lac Olga (LOSZ) shear zones, interpreted by the management as the extension of the Sunday Lake gold-regional fault. Exploration is ongoing on each project, and Tarku is open to bringing on a partner for the project.

Tarku is also focused on developing the Lac Fabien vanadium project. The property is within three kilometers of the Lac Saint-Jean freight and passenger railroad, providing the company with easy access to the market. Preliminary metallurgical testing on the property returned values of 1.37 percent to 1.67 percent vanadium oxide and 55 percent to 65 percent iron.

The last project Tarku is developing is the Chateau Fort gold-silvercopper project in the Upper Eastmain River greenstone belt. The property is adjacent to the past-producing Eastmain mine, which produced 118,356 tonnes grading 10.6 g/t gold between 1994 and 1995. The property remains largely unexplored.

Tarku is led by strong management and a technical team with a track record of discovery success. The company’s Chairman, Barnard Lapointe, founded Arianne Resources, now Arianne Phosphate, and contributed to the discovery and development of the Lac à Paul phosphate project. The Lac à Paul is one of the largest phosphate projects in the world and is expected to produce 3 million tonnes of phosphate concentrate annually.

The company also hosts a tightly held share structure, with management holding 21 percent of shares. The Societe de Development de la Baie-James (SDBJ) holds 9.9 percent of shares, and the three other major shareholders collectively hold 15 percent of shares.

Company Highlights

  • Located in Québec, the fourth best mining jurisdiction in the world.
  • Similar geology to the Detour Lake gold mine was identified at the Matagami projects.
  • Exploration underway at Matagami and Lac Fabien projects.
  • Preliminary metallurgical testing recovery rates of up to 1.67 percent vanadium oxide and up to 65 percent iron at Lac Fabien.
  • Management holds 21 percent of shares, SDBJ holds 9.9 percent and three other major shareholders hold 15 percent collectively.
  • Strong management and technical team with a track record of discovery success in Québec.

Québec Properties

Matagami Projects

Tarku has three gold-base metal projects near Matagami, Québec. Each property is accessible year-round by public roads. The Matagami area is a past-producing  region focused on zinc and gold and offers Tarku a wealth of knowledge and skilled labor. The geological and structural landscape is similar to the geology found at the Detour Lake gold mine, a producing mine which has a reserve of 15 million ounces. Tarku’s management believes that the gold potential of the Matagami sector has been undervalued and uses today modern geological models and exploration techniques to aid in the discovery of gold mineralization.

Admiral (100% Tarku)

The 1,667-hectare Admiral gold project is located west of Lake Olga and lies on the convergence of the RWSZ and LOSZ. Admiral’s Lac Olga Ouest gold showing and Goldcorp’s (TSX:G) high-grade deposit Indice Principal both reside in the LOSZ. Results recovered at the Lac Olga Ouest gold showing include 1.50 meters grading 14.75 g/t gold, 1.14 percent copper and 10.3 g/t silver.

Tarku completed early March 2019 a 5 holes (about 800-meter) drill program on its wholly owned property. The objective of the drilling program is to evaluate select targets along a 1 to 1.5 km wide corridor identified by Tarku’s previous high-resolution geophysical survey and data compilations. The company has also completed a 271-line-kilometer high-resolution airborne magnetic survey over the main target area.

Apollo (100% Tarku)

The 5,495-hectare Apollo gold project is centered on the RWSZ, which contains the historic Rivière Waswanipi gold showing. The showing has returned grades of 2.36 g/t gold over one meter.

In 1987, Finnith Exploration recovered gold grains in over 60 percent of its till samples. The following year Inco completed a till sampling program which yielded several gold values between 0.5 g/t gold and 4.94 g/t gold. Between 2004 and 2006, mapping programs conducted by previous operators identified geology that was similar to the Sunday Lake deformation zone, which hosts the Detour Lake mine.

In 2017, Tarku initiated an exploration program on the property. The program included ground and airborne till, humus and rock sampling. The company collected 80 till and humus samples over 19 kilometers across the property.

From the program, Tarku identifies a 6 km wide favourable zone along the regional Rivière Waswanipi shear zone (RWSZ) that may be the source of the gold grains sampled in 2017. Three targets within that 6 km stretch, (Apollo XI, Apollo XII and Apollo XV) were considered priorities for the upcoming work phases as they were corresponding to magnetic highs associated with carbonate-hematite-magnetite alteration along or near the regional gold-bearing RWSZ.

Atlas (100% Tarku)

The 4,870-hectare Atlas gold-zinc-silver-copper project features characteristics similar to those of the Bousquet formation in the southern Abitibi region, which hosts the LaRonde gold-zinc-copper-silver mine. The property also displays volcanogenic massive sulphide-style (VMS) mineralization.

In 2017, Tarku initiated an exploration program on the Atlas property. The program included ground and airborne till, humus and rock sampling. The company collected 80 till and humus samples across the property. Results from the program identified an area with elevated gold grain counts in the south-central portion of the property.

Lac Fabien Vanadium Project

Tarku has the option to earn a 100 percent interest in the Lac Fabien vanadium project over a period of four years. The project is located 130 kilometers northwest of Québec City and is three kilometers from the Lac Saint-Jean freight and passenger railroad, providing the company with easy access to the market.

The market for vanadium

Vanadium is used in steel, metal alloys and vanadium batteries. Approximately 90 percent of vanadium consumption is used to create high-strength steel and titanium. There is currently no primary vanadium production in North America and Tarku sees an opportunity to develop high quality and clean vanadium projects in a safe jurisdiction as Quebec Province.

The demand for vanadium is being driven upwards due to global production cuts, increased demand for high-strength steel and the focus on clean energy initiatives. It is also being driven by China’s ban on the importation of certain types of material that is processed for the recovery of vanadium and the new vanadium requirements for building materials.

Exploration

In 2001 a sample grading 0.58 percent vanadium oxide and 59.31 percent iron oxide were recovered from Lac Fabien, highlighting its potential to host iron, titanium, vanadium and phosphorus mineralization.

In 2015 the Québec government completed a magnetic survey over the property. The survey outlined a six-kilometer magnetic anomaly associated with vanadium mineralization. The mineralization type suggests that it could be amenable to an open-pit mining scenario if economically viable.

A previous operator recovered over 25 grab samples from a 1.2-kilometer by 300-meter area. The samples returned values of more than 0.25 percent vanadium oxide. Highlights from the program include a grab sample grading 0.48 percent vanadium oxide and a channel sample grading 0.22 percent vanadium oxide over 11 meters.

Preliminary results from metallurgical testing also show good recovery rates. Magnetite concentrates testing returned values of 1.37 percent to 1.67 percent vanadium oxide and 55 percent to 65 percent iron.

Ongoing exploration

Moving forward, Tarku will be completing an extensive rock sampling, channel sampling and stripping program with the aim of validating the thickness, continuity and grade distribution of vanadium mineralization. Preliminary metallurgical testing will also be included in the program.

Chateau Fort Project

The 9,025-hectare Chateau Fort gold-silver-copper project resides in the Upper Eastmain River greenstone belt. The property is located 300 kilometers north of Chibougamau, Québec and 56 kilometers south of the Renard mine. The property is also accessible year-round by Highway 167.

The property is adjacent to the past-producing Eastmain mine, which historically produced 118,356 tonnes grading 10.6 g/t gold between 1994 and 1995. Mineralization at Chateau Fort is along strike with the Eastmain mine and Ruby Hill trends.

Exploration

In 1988, a previous operator recovered a grab sample from the Colline du Chateau Fort showing that graded 3.3 g/t gold. Eros Resources Corp (TSXV:ERC) recovered numerous gold, silver, copper, zinc and arsenic anomalies in lake bottom, soil and stream sediments. The property remains largely unexplored.

After acquiring the property, Tarku completed a high-resolution MAG and TDEM 2,184-line-kilometers over the property in 2015. The survey identified two well-defined regional corridors with high magnetic signatures over 10 kilometers and outlined the presence of 85 EM anomalies. Both signatures are on strike with the Eastmain mine and Ruby Hill auriferous corridors.

The 2015 work program was followed up the following year with a prospecting program. A grab sample was recovered and graded 0.2 g/t gold, 1.8 g/t silver and 0.37 percent copper.

Management

Julien Davy, Geo., M.Sc., MBA — President and CEO

Julien Davy began his career as an exploration geologist in 1996. Since then, he has assessed numerous exploration and advanced projects in Canada and abroad. He has been involved in the acquisition and mining investment aspects. He has a Master’s from Université du Québec à Montréal and an MBA from HEC in Montréal. He has held the position of President at Stria Lithium, Senior Exploration Geologist at Osisko Mining Corporation Canada and an investment advisor for SIDEX s.e.c. of Montréal.

Julien also worked for NioGold Mining Corporation in Val-d’Or, Hecla Mining in Venezuela, Cambior Exploration Canada, Anglo-American Exploration and the Ministry of Natural Resources of Québec. In 2015, he co-founded Eureka Exploration, a private exploration company that was sold to Tarku Resources in June 2017. He is a Director of the AEMQ (Québec’s exploration association), member of the OGQ and Qualified Person (QP).

Benoit Lafrance, P.Geo., Ph.D. — Exploration Manager

Benoit Lafrance holds a Ph.D. in mineral resources from the Université du Québec à Chicoutimi and has over 20 years of experience. During his career, he has worked on numerous exploration projects, mining development projects, feasibility studies, environmental impact assessments and stakeholder consultations. He has held the positions of Vice President Exploration at Focus Graphite, Researcher at CONSOREM, Senior Geologist at Cogitore Resources and Geologist at the Ministry of Natural Resources of Québec. In 2011, Benoit and other members of the CONSOREM team received the AEMQ’s Jean-Descarreaux Award.

In 2015, he co-founded Eureka Exploration, a private exploration company that was sold to Tarku Resources in June 2017. Benoit possesses ideal expertise for developing and applying innovative ideas and techniques to generate new exploration approaches and targets. He is a member of the OGQ and Qualified Person (QP).

Jeff Sheppard, CPA, CA — CFO

Jeff Sheppard is the CFO of the company. He is a graduate of the University of Saskatchewan (BComm) and is a Chartered Professional Accountant (CPA, CA). He is currently the CFO of Westcore Energy Ltd., Greywacke Exploration Ltd. and Controller at 49 North Resources Inc. All are Canadian resource investment companies headquartered in Saskatchewan.

Bernard Lapointe, P.Geo., Ph.D. — Chairman of the Board

Bernard Lapointe has spent over 35 years in the resource sector in exploration and project development. He founded Arianne Resources in 1997 and headed the company until 2013 when it became Arianne Phosphate. He contributed to the discovery and development of the Lac à Paul project located in Québec, one of the largest phosphate projects in the world.

Bernard is now a semi-retired geologist, consultant and private investor. He sits on several technical and strategic committees of public and private exploration companies and is a lecturer of exploration funding at the Université du Québec à Chicoutimi. He holds a B.A. in Geology (Montreal), a Master’s degree in Structural Geology(Chicoutimi) and a Ph.D. in mineral resources from the Université du Québec (Chicoutimi).

Tim. J. Termuende, B.Sc., P.Geo. — Director

Tim Termuende is a professional geologist with over 35 years of experience in the mineral exploration industry. Since earning his degree in geological sciences at the University of British Columbia in 1987, he has worked on exploration projects throughout the Americas and has inspected mineral deposits in the former Soviet Union. He is a founder, President and CEO of Eagle Plains Resources Ltd. and Omineca Mining and Metals Ltd., both junior exploration companies listed on the TSXV. He was formerly President and CEO of Copper Canyon Resources Ltd., which successfully merged with NovaGold Canada Inc. in an arrangement that netted over $65 million to Copper Canyon shareholders.

Tim also serves non-officer roles on the boards of a number of listed junior mining issuers including Aben Resources and Kestrel Gold Corp. He has been continuously active in mineral exploration throughout western Canada since 1976. He currently arranges financings and oversees a broad range of ongoing exploration projects located throughout British Columbia, Yukon, NWT and Saskatchewan.

Barry Chappell, M.Sc. (Economics) — Director

For the last 25 years, Barry Chappell has helped thousands of people buy art, rare coins and other assorted collectibles as the owner and host of Art and Coin Television (ACTV) Shopping Network. He holds two degrees in Economics, including a B.Sc. Economics from Southern Oregon State and an M.Sc. in Economics from the University of Nevada. He served as a Director of YellowJacket Resources and Athabasca Nuclear from January 2012 to March 2014. He worked as an Associate Professor of Business, Economics and Marketing from 1985 to 1992. His interest in mining and precious metals developed in graduate school, when he worked in the oil business in Corsicana, Texas, raising money to drill shallow stripper wells in the New Angus Field.


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