Southern British Columbia Gold Belt

Overview of the Area

In a regional exploration program for gold in southern British Columbia, Almaden Minerals (Almadex’s predecessor) detected several areas of elevated gold values in samples taken of stream sediment. After follow-up prospecting in these areas, Almaden identified and staked areas of clay-carbonate alteration and quartz veining, which were believed to be representative of low-sulphidation epithermal gold-silver vein systems.

Several of these projects have subsequently been optioned or sold.  Almadex maintains an ownership interest in those listed below.

Merit

The 100% Almadex-owned Merit Project covers an area of epithermal gold-silver veining and is about 1,900 hectares in size. The property is easily accessed by road, 30 km west from the city of Merritt and about 20 km northwest of Westhaven’s Shovelnose project. Previous work includes surface sampling, mapping, geophysics and drilling.

In February 2019, Almadex announced an option agreement with Independence Gold Corp. (“IGO”), whereby IGO would hold the right to acquire a 60% interest in the Merit property. IGO terminated the option in early 2022, so Almadex retains 100% of the property.

During their option period, IGO reported comprehensive mapping of the property in the summer of 2019 with a total of 110 samples collected from vein and country rocks exposed at surface. The best results were found in chalcedonic quartz veins with dark sulphide bands, which were defined as belonging to a ‘low sulphidation epithermal’ style deposit.

IGO further reported that samples from the property returned grades of up to 9.5 grams per tonne gold and 341 g/t silver. Surface exploration targeted several zones identified during the 2019 field season with the objective of further understanding, delineating and expanding targets.

In 2020, IGO reported that follow up work at the Central Zone found additional chalcedonic quartz material approximately 70m northeast of a 2019 high grade sample and returned 7.69 g/t Au and 447 g/t Ag. IGO reported that additional mapping and structural interpretation indicate that this area is part of the same structure that hosts the Sullivan Ridge veins but has been offset along a northwest to southeast trending fault.

Follow up work at the Sullivan Ridge Target in 2020 discovered additional chalcedonic quartz veins that branch off at 10-15 degrees from the main vein.  Samples from these veins returned grades of up to 4.35 g/t Au and up to 50 g/t Ag.  A 200 m by 100 m area of branching veins were identified through mapping.  Outcrops along a 700 m strike length also show potential for similar structures.

Almadex is reviewing the data collected on this property prior to determining next steps.

Nicoamen River

This 100% Almadex-owned project covers roughly 3,300 hectares and is located about 40 km nmorthwest of Westhaven’s Shovelnose project.

In February 2019, Almadex announced an option agreement with Independence Gold Corp. (“IGO”), whereby IGO would hold the right to acquire a 60% interest in the Nicoamen property. IGO terminated this option agreement in early 2022, so Almadex retains 100% ownership of this property.

During its option period, IGO reported that exploration in 2019 included the collection of 41 surface rock samples, and a ground magnetic survey covering 50% of the property. IGO noted that the magnetic survey highlighted a “magnetic low” structural corridor that was coincident with mineralized chalcedonic quartz veins, returning up to 4.46 g/t gold. Access to several prospective areas was restricted in 2019 due to active logging and to Almadex’s knowledge no further work was conducted at the property during the option period.

Almadex is reviewing the data collected on this property prior to determining next steps.

Ponderosa

The Ponderosa property is 100% owned by Almadex and was acquired by staking in late 2005. The claim covers 41.5 hectares. The property is located 25 km southwest of Merritt, B.C. and has good road access. Previous work includes surface sampling, mapping, geophysics and drilling.

On September 11, 2019 Almadex announced that it had optioned 60% of its Ponderosa project to 1201361 BC LTD., a private B.C. company at arms-length to Almadex. This Company subsequently changed its name to AuGold Corp. and is trading on the TSX-V under the symbol AUGC.

Under the terms of the agreement, AUGC can acquire a 60% interest in the Project by:

1.) Issuing Almadex 5% of its issued capital on a fully diluted basis on closing, with a top-up to this amount at the time of a “liquidity event”;

2.) Completing $500,000 in work, including 500 metres of drilling, on the Project within three years, and;

3.) Completing a “liquidity event” within four years.

Amongst other things, a “liquidity event” is some form of transaction which results in the Optionee’s, or its affiliates’, common shares becoming publicly traded on a recognized stock exchange.

Upon completion of the 60% earn-in, Almadex and the Optionee have agreed to immediately form a 40/60 joint venture for the purpose of carrying out further exploration work on the Project with Optionee as operator and straight line dilution for failure to participate in work programs.  If either party’s participating interest falls below 10%, their interest will be converted into a 2% net smelter returns royalty.