CSE-EDGM

The Dungate Copper/Gold Project

The Dungate copper/gold project (the “Dungate Project”) is located 6 km southeast of the town of Houston in the Omenica Mining Division (see below). The property consists of two mineral claims covering 546.4 hectares.

Edgemont Gold Corp. has option agreements to earn 100% interest in two separately owned mineral claims, tenure number 1032543 and tenure number 1057771. Edgemont may exercise its option on tenure 1032543 by making aggregate cash payments of $37,500 and the issuance of 250,000 common shares over a three year term to earn a 100% interest, subject to a 2% NSR royalty, of which 1% may be repurchased by Edgemont for $1,000,000. Edgemont may exercise its agreement on tenure 1057771 by making aggregate cash payments of $75,000, the issuance of 450,000 common shares and incurring expenditures on the property $175,000 over a three year term to earn a 100% interest, subject to a 2% NSR, of which 1% may be repurchased by Edgemont for $1,000,000.

Access and Infrastructure

The Dungate Project is easily accessed from Houston by the Buck Flats road, then the Equity Mine Road and finally the McKilligan Forest Service Road which crosses the centre of the mineral claim (see below). There is a powerline that services the now closed Equity mine site that passes near the southwest corner of the property.

The property is situated on a bench at an elevation of about 900 metres. The overburden varies from less than 1 m to more than 21 m in historical drill holes (Blanchflower, 1974). The Dungate Project area features relatively gentle topography typical of the northwestern part of the Nechako Plateau. Prominent bluffs, underlain by Tertiary volcanic rocks, occur to the east and south of the property. There is also an elongate knoll near the northwest corner of the property.

The area is covered by a mixture of smaller spruce, pine, and balsam trees with more open areas that are used at times for grazing cattle. The area has been logged in the past.

The town of Houston provides accommodation for field work and basic supplies. Larger centres of Smithers (65km west via Highway 16) and Prince George (310km east via Highway 16) offer daily flights and more comprehensive supply services.

History

The property area, or parts of it, has been held by a number of companies and at least three individuals over the last fifty plus years. Ross Blusson, the vendor of tenure 1032543 has been interested in the area since the 1960s as he was based in Houston when some of the early exploration was done on the property. He has held mineral tenures in the area and optioned them at times to companies. The Initial discovery of chalcopyrite and molybdenite on the property was made in a shallow excavation on the newly constructed Dungate Creek logging road about 1962.

For more detailed information on the history of the Dungate project, please refer to the NI 43-101 Technical Report On the Dungate Project, Omenica Mining Division BC, with an effective date of November 12th, 2019 (the “Technical Report”) authored by Bruce Laird, P. Geo. This Technical Report is can be accessed on SEDAR and is available here. The following information has been excerpted from that report:

Edgemont Exploration

Edgemont conducted a brief program in 2018, collecting six rock samples and eight soil samples as part of a brief orientation to the property. The rock sampling confirmed the presence of copper-gold mineralization (Lefebure, Setterfield, 2019) on the Dungate Project. Highlights of the 2018 rock sampling are as follows:

Sample Easting Northing Au (ppb) Ag (ppm) Cu (ppm) Mo (ppm) Zn (ppm)
3884 658862 6027993 0.008 0.25 45 1 539
3885 658579 6027583 0.102 0.7 1500 81 33
3887 658874 6027600 0.045 0.25 806 3 68
3888 658866 6027606 1.7 0.8 322 3 133

*Note NAD83 Zone 10

In 2019, Edgemont contracted a ground magnetometer survey of Tenure 1057771. Walcott surveyed 84 line kilometres of north-south lines at 50 metre intervals with readings collected at one second intervals. The final data was then presented as a contoured plan map of TMI (Total Magnetic Intensity (nT)) and Calculated 1st Vertical Derivative of TMI (nT/m).

Edgemont subsequently conducted a property wide soil sample survey, geological mapping and prospecting. The three-man crew put in 31.2 line kilometres of soil line, collected 604 soil samples and 80 rock samples. Soil sampling concentrated over the inferred map area of the Quartz Feldspar Porphyry with lines spaced at 100 metres and samples collected at 50m intervals. Outside of the area mapped QFP, every second line was run northeast, to the claim boundary.

The 2019 program also featured geological mapping and prospecting. The mapped area of the QFP corresponds to a magnetic high in the 2019 survey. Other magnetic highs located north of this are un explained and hidden by glacial cover. Ground magnetics are shown on Figure 5.

The 2019 soil sampling program identified copper and gold soil anomalies within (copper) and around (copper, gold) the inferred area of the QFP. Anomalies are along the eastern and southern boundaries of the map unit. Two correlated sets of results standout, copper-cadmium and gold-arsenic-bismuth-tellurium (Table 6).

Table 6: 2019 Soil Sample Correlation Matrix

Field Mo_PPM Cu_PPM As_PPM Au_PPB Cd_PPM Bi_PPM Te_PPM
Mo_PPM 1 0.409297 0.555256 0.254571 0.201717 0.311988 0.159939
Cu_PPM 0.409297 1 0.207542 0.246023 0.570402 0.150007 0.043526
As_PPM 0.555256 0.207542 1 0.513572 0.190025 0.709239 0.701187
Au_PPB 0.254571 0.246023 0.513572 1 0.090916 0.607997 0.519315
Cd_PPM 0.201717 0.570402 0.190025 0.090916 1 0.1978 0.060261
Bi_PPM 0.311988 0.150007 0.709239 0.607997 0.1978 1 0.827831
Te_PPM 0.159939 0.043526 0.701187 0.519315 0.060261 0.827831 1

* Note - highlighted >0.5, copper and gold correlations

Examination of the data shows cadmium, bismuth and tellurium results are very close to the detection limits for these elements. Therefore their results are not plotted. Results for gold, copper and arsenic are plotted with results for gold contoured at 5ppb, copper 100ppm and arsenic at 10ppm. Gold forms discrete anomalous areas around the historical trenches and the eastern portion of the QFP. Copper anomalies are found within the QFP and along it’s southern margin. Arsenic shows a very broad zone along the southern and eastern portions of the QFP. These element correlations are consistent with those found in epithermal/mesothermal or a high level porphyry system.

The highest 2019 rock copper value in rocks (sample 2596468) returned 5428.8ppm Cu and was collected from a rubble pile at the historical trench site. The rock was strongly oxidized, clay-sericite altered with most sulfides indiscernible due to oxidation. Traces of molybdenite and copper oxide were visible. The highest gold value (sample 2596455) returned 553.8ppb Au and came from QFP on a muck pile adjacent to a historical trench containing 20% quartz stockwork.

Interpretations and Conclusions

Starting in the late 1960’s, exploration at the Dungate Project has predominantly focused on porphyry copper mineralization related to the quartz feldspar porphyry. With the nearby discovery of the Equity Silver mine, focus expanded to the search for epithermal copper-silver-gold. The regional geology of Dungate Project, with the Nanika age QFP intruding Goosly Lake Formation rocks is similar to that of the Equity Silver Mine and the Berg deposit.

Exploration by Edgemont has identified anomalous copper, gold and arsenic in soils within and around the quartz feldspar porphyry unit. Rock samples from historical trenches and their waste piles have strong porphyry style quartz stockwork and alteration mineralization with high copper values of 0.54% copper (2019 rock sample 2596468) and 1.7 g/t gold (2018 rock sample 3888). The metal associations within the geochemical results suggest a high-level porphyry to epithermal affinity. The magnetics survey has outlined the QFP unit and shows other magnetic highs under glacial cover that should be further explored to determine the source of their magnetic signature.

The Dungate Project is mostly underlain by volcanic rocks of the Jurassic Hazleton Group, which are intruded in the south-central part of the property by a quartz feldspar porphyry intrusion of possible Eocene age. The Eocene Endako Group and possibly the Upper Cretaceous Kasalka Group also underlie the property. Known mineralization on the property is restricted to the immediate area of the QFP intrusion.

The 2019 fieldwork confirmed the QFP intrusion contains stockwork quartz veins, with local pyrite and lesser chalcopyrite/malachite mineralization, indicating a prospective geological environment. Sampling indicates the mineralization is centred within and around the historical trenches though limited exposure outside this area may cover mineralization. The soil survey indicates a large arsenic anomaly around the southern and eastern margins of the inferred QFP. Arsenic should work as a pathfinder element to copper-gold mineralization. Gold and copper soil anomalies occur within and proximal to the QFP unit. The magnetic survey highlighted the QFP unit and discovered several other anomalies hidden by glacial cover.

Further work will include additional geological mapping, including detailed mapping of the existing trenches. This work would require a small excavator or backhoe to rehabilitate the now sloughed trenches. A 16 line kilometer Induced Polarization (IP) survey covering the inferred area of the QFP and its margins is recommended to attempt to map the three dimensional distribution of sulphides on the property. Drill targets should be apparent after these activities have been completed.