The Kahuna Gold Property (the “Property” or the “Project”) is located on Crown and Inuit Owned Land (“IOL”) in the Kivalliq Region of Nunavut, within the 1:250,000 scale NTS map sheets, 55J, K, N and O. The Property consists of 74 Mineral Claims owned 100% by Solstice Gold Corp. (Solstice) and 19 Mineral Claims owned 50% by Solstice and 50% Dunnedin Ventures Inc. (DVI), approximately 10 km southwest of the community of Chesterfield Inlet and 30 km northeast of the community of Rankin Inlet (see “Kahuna Gold Project Location” Figure).
The Project area is currently covered by Crown-Indigenous Relations and Northern Affairs Canada (“CIRNAC”) Land Use Permit (“LUP”) N2015C0019, Nunavut Water Board (“NWB”) water licence 2BE-KDP1722 and Kivalliq Inuit Association (“KIA”) Land Use Licences KVL315B01 and KVRW16F01, held by Dunnedin Ventures Inc. (DVI). DVI is in the process of submitting amendments to the land and water use authorizations to remove the area covered by the Kahuna Gold Property, therefore removing any overlap in permits and licences.
The proposed work program will consist of staking, general mineral exploration (i.e. geological mapping, prospecting, geochemical sampling, lake bottom bathymetry, airborne and ground geophysical surveying) and diamond drilling. A total of 20,000 m of drilling (in approximately 75 to 100 holes), using 1 to 2 drills, are anticipated to be completed during the term of the authorizations. At this time, the drillhole locations have not been identified, but will be strictly confined to the Property Boundary as identified on the Kahuna Gold Project Location” Figure. As soon as definitive locations are identified for drilling CIRNAC, NWB and the KIA (if on IOL) will be notified and supplied with coordinates, GIS data (such as shapefiles) and maps.
The Kahuna Gold Property mineral exploration programs will be supported by a temporary, seasonal exploration camp with fuel cache, located in the southern portion of the Property (575940E/ 6990898N, NAD83 Zone 15) on Mineral Claim K90309, 100% owned by Solstice. The Kahuna Camp is currently authorized under CIRNAC LUP N2015C0019 and NWB water licence 2BE-KDP1722, held by DVI. An agreement between the companies is in place allowing DVI to have a camp on a mineral claim, which is owned 100% by Solstice and authorizing Solstice to use the camp, which is permitted/licenced by DVI.
A Solstice fuel cache will be established adjacent to the DVI Kahuna Camp fuel cache and will be authorized in the new Solstice CIRNAC LUP and NWB water licence. The Solstice fuel cache will contain 300 drums (61,500 L) of diesel, gasoline and aviation fuel. In addition, small temporary fuel caches (less than 4,000 L), may be required to supply the drilling and exploration programs. Within 10 days of the establishment of any temporary fuel cache, CIRNAC, NWB and the KIA (if on IOL) will be notified of the details of the cache including: coordinates, fuel type, container sizes, method of storage and proposed date of removal. The temporary fuel cache coordinates will also be included in the annual reports submitted to CIRNAC, NWB and the KIA.
Exploration programs are anticipated to commence approximately February 1st and conclude approximately September 30th, annually. The average number of people on site at one time will be 20, for a total of approximately 4,840 man-days. Drilling equipment and fuel will be mobilized in February from Rankin Inlet to the Kahuna Camp either via an overland winter trail, using Caterpillar Challengers and cargo sleds or by helicopter. The overland winter trail access is currently permitted by DVI under KIA Land Use Licence KVRW16F01 and an agreement between the companies is in place allowing Solstice to use the trail under the DVI Licence. While using the overland winter trail, Solstice will strictly adhere to the terms and conditions of Land Use Licence KVRW16F01, issued to DVI. A Solstice Right of Way Licence for use of the overland winter trail is currently under review with the KIA (a land and water use licence application is also under review with the KIA for exploration and drilling on the portion of the Property that is located on IOL). Personnel and supplies will be transported to the Property either via a chartered plane or helicopter from either Chesterfield Inlet or Rankin Inlet.
One to two heli-portable diamond drill rigs will be used for the program. The drills will be configured such that they can be mounted on skids and when snow conditions allow, can be moved from drill site to drill site via overland haul using a Caterpillar Challenger. Drill crews will be based in the Kahuna Camp. As conditions allow, daily crew changes and service runs will be made by snowmobile and/or Bombardier tracked vehicles. For safety, a helicopter will be based on site and will be utilized to service the rig and drill crews when ground access is not feasible.
During the summer months, a helicopter supported drilling/exploration program will be undertaken and field crews will be transported to the work area, and drills moved from site to site, via helicopter. The Project will be demobed in September by Helicopter and/or chartered fixed-wing aircraft.
Prior to subsequent years program commencement all the regulatory authorities and will be notified and supplied with updated schedules.
The general exploration, drilling and camp activities for the Kahuna Diamond Project have been previously screened under NPC file numbers 148166, 148367 and 148649 and NIRB file number 15EN028 for DVI . The changes from the original DVI authorizations is an increase in the total meterage of drilling, the addition of the Solstice fuel cache next to the DVI fuel cache and that Solstice is exploring for gold while DVI is exploring for diamonds. The Project boundary has not increased, the mineral claim ownership is just now spilt between the two companies. Any subsequent amendments or changes to the Kahuna Camp permits and licences held by DVI will be discussed and coordinated with Solstice, to ensure the ability to support Solstice exploration activities as per the “Plan of Arrangement” between DVI and Solstice.