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“This program has shown the Jurassic sandstones of the Salt Wash Member to be an excellent host for copper mineralization at Klondike, much the same as what is seen at the operating
Table 1 – Klondike 2022 Drill Intercepts
Hole | From (m) | To (m) | Interval (m) | Target | Copper (%) |
KDB22-01 | 3.41 | 14.81 | 11.40 | North East Fault | 0.34 |
Incl. | 7.19 | 13.99 | 6.80 | 0.51 | |
KDB22-02 | 3.05 | 3.93 | 0.88 | West Graben Fault | 0.13 |
KDB22-03 | 11.64 | 14.33 | 2.69 | East Graben Fault | 0.21 |
and | 24.69 | 25.30 | 0.61 | 0.66 | |
KDB22-04 | 14.57 | 17.65 | 3.08 | North East Fault | 0.24 |
Incl. | 15.85 | 16.89 | 1.04 | 0.57 | |
KDB22-05 | 44.96 | 46.02 | 1.06 | West Graben Fault | 4.26 |
and | 68.88 | 70.41 | 1.53 | 0.39 | |
and | 74.07 | 75.13 | 1.05 | 0.17 |
North East Fault Target
Two holes were drilled in a scissor pattern to test the trace of the North East Fault. Neither hole was able to get to the target depth due problems with the drill rig. KDB22-01 was collared on Salt Wash Member sandstone that is strongly mineralized in the target area, including previous chip samples including 4.6 m that averaged 1.56% copper and 1.4 g/t silver in 2021 sampling. The first 3.4 metres of malachite and copper oxide mineralization were not recovered due to broken ground and setting casing, with the next 6.8 metres averaging 0.51% copper, while KDB22-04 intersected 3.08 m of 0.24% copper from 14.57 metres depth.
The presence of significant copper mineralization at the tops of KDB22-01 and -04 is particularly encouraging as the targeted North East Fault was not tested. Copper mineralized sandstones at the Northeast Fault target can be traced along the fault and outboard from it into the adjacent sandstones over an area 200 metres long by 100 metres wide before becoming obscured beneath gravel cover. Further anomalous copper, including 2.1 metres of 463 ppm copper, was encountered over one kilometre to the northwest where the structure and host strata next appear from beneath the same gravel cover.
West Graben Fault
KDB22-02 and -05 were located to test the West Graben Fault target. KDB22-05 intersected an eastern strand of the West Graben fault, which contained native copper and chalcocite at a depth of 44.96 metres. This interval returned 4.26% copper over 1.06 metres within a broad interval of anomalous copper mineralization (chalcocite and copper oxide) averaging 0.15% over 42 metres (excluding the high grade interval – 0.043% copper over 42 metres). This hole exhibits extensive alteration and bleaching, with chalcocite and copper oxides within four different sedimentary units within the hole. The strong copper mineralization within the fault strand and the extent of alteration and bleaching in adjacent units suggests the main strand of the fault remains a highly prospective target.
East Graben Fault
One hole targeted the East Graben Fault, where surface sampling returned anomalous copper over 2 km of strike length, including 2.8% copper with 37.8 g/t silver and 1.5% copper with 24.3 g/t silver in rock samples. KDB22-03 encountered patchy malachite and copper oxides throughout the section cutting sandstones of the Salt Wash Formation. Again, due to difficulties with the drill rig, the fault itself was not intersected and the target remains untested. The presence of patchy copper mineralization, particularly in the Salt Wash Formation indicates potential for copper mineralization between the two graben bounding faults (East and West Graben faults), a distance of 600 metres from KDB22-05.
About the Klondike Property
The Klondike Property is located approximately 25 kilometres south of
The 2022 drilling program followed a 2021 reconnaissance program consisting of mapping, stream sediment sampling and rock sampling was undertaken at the Klondike Property to help define drill targets at the West Graben Fault and East Graben Fault targets. Rock sampling and mapping successfully expanded the footprint of both targets and identified a new target named the Northeast Fault.
The project is road accessible year-round, traveling two kilometres of gravel road from paved highway. The project is comprised of 76 mining claims on Federal mineral rights managed by the BLM, in addition to an Exploration Permit and an exclusive right to a State lease from the
Figure 1.Klondike Geology and Drill Plan with Copper Surface Sampling Results
Click Image To View Full Size
Klondike Option Agreement Highlights:
Allied will incur an aggregate of CAD
$4,750,000 in exploration expenditures on the property, with at least CAD$500,000 to be spent prior to the first anniversary of the closing date. Allied has met this requirement.Allied will issue 7,000,000 common shares and make an aggregate of CAD
$400,000 in cash payments to the Alliance over a three-year period. Allied has issued 2,000,000 shares and made$200,000 in cash payments to date.Upon completion of these option agreement obligations, the Alliance will transfer 100% interest in the Klondike Property to Allied. Allied will also issue 3,000,000 warrants exercisable for a three year term at a price equal to the greater of
$0.23 or the 10-day VWAP of Allied’s common shares at the time of the issuance.The Alliance will retain a 2% net smelter royalty which is subject to a buy down provision where Allied may, at its discretion, repurchase half of the royalty for CAD
$1,500,000 within 30 days of commercial production.
If Allied files on SEDAR an NI 43-101 technical report establishing the existence of a resource on any portion of the Klondike Property of at least 50,000,000 tonnes of either copper or copper equivalent at a minimum cut-off grade of 0.50% copper or copper equivalent and categorized as a combination of inferred resources, indicated resources and measured resources, then Allied will also issue a further 3,000,000 warrants exercisable for a three year term at a price equal to the 10-day VWAP of Allied’s common shares at the time of the issuance.
About the
Under the terms of the Alliance, either Cloudbreak Discovery PLC or
About
Alianza employs a discovery-focused business model of joint venture funding and self-funded projects to maximize opportunity for exploration success. The Company currently has gold, silver and base metal projects in
Alianza is listed on the
Mr.
For further information, contact:
Tel: (604) 807-7217
Fax: (888) 889-4874
To learn more visit: www.alianzaminerals.com
Twitter:https://twitter.com/AlianzaMinerals
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