Milligan West Project

Maps & Figures

Location

The Milligan West Property (15,736 ha) is located 160 km northwest of Prince George, strategically situated adjoining the western boundary of Thompson Creek Metals Ltd Mt Milligan copper-gold project. The Mt. Milligan mine, in production since late 2013, has reported the following mineral endowment as at December 31, 2016 (Centerra Gold Inc. Annual Report 2016) ;

GOLD - Proven and probable mineral reserves total 5.8 million ounces of contained gold (496.2 Mt at 0.4 g/t gold)

COPPER - Measured and indicated mineral resources total an estimated 718 million pounds of contained copper (243.9 Mt at 0.133% copper).

Gold Production is foretasted for the 2017 calendar year at 260,000 - 290,000 ounces; payable copper production for the same period is foretasted to be 55-65 million pounds.

Ownership

In 2009, Fjordland acquired by staking the Milligan South and Milligan North. On September 30, 2010 Fjordland entered into a letter agreement with Capstone Mining Corp. (TSX: CS) whereby Capstone was granted an option to acquire up to a 70% interest in the Tak - Milligan properties through staged exploration expenditures totaling $6 million by December 31, 2016. Capstone initially financed exploration totaling $1,200,000 but dropped their option to earn in.

On February 28, 2013, the Company and Serengeti announced that they had consolidated their adjoining Milligan South (Fjordland - 100%) and Mil (Serengeti -
65%/ Fjordland - 35%) into a single project (50%/50% JV) “ Milligan West ”, via an amendment to the previous QUEST Joint Venture agreement, dated February 21, 2008 between Fjordland and Serengeti.

Geology & Mineralization

Cu-Au at Mt. Milligan occurs in both intrusive and volcanic rocks, largely hosted by qtz vein stockworks with high Au:Cu ratios. The Milligan West property hosts exellent exploration potential for alkalic Cu-Au porphyry and porphyry-related targets. It is situated in a highly favourable tectonic setting within the 60 km long E-W trending flexure anchored by the Mt. Milligan deposit to the east.

Several regional magnetic and radiometric anomalies exist within the Milligan West property, similar to those associated with Mt. Milligan.Milligan West contains regional magnetic highs similar to Mt. Milligan, where highest grades are located peripheral to a magnetite-rich stock. These mag highs also coincide with IP and resistivity highs.

Exploration

Previous work on the Mil property includes airborne magnetic, ground induced polarization (IP) surveys, geochemical soil surveys, as well as three shallow diamond drill holes totaling 790 metres in 2009. Drilling tested a very small proportion of a very large (22 kilometres by 2 - 3 kilometres) coincident IP chargeability and magnetic anomaly. One drill hole bottomed in a strongly altered zone that assayed 0.15% Cu over the final 6 metres. In addition, soil survey results yielded coincident copper and gold anomalies. Additional drilling is warranted.

Previous work on Milligan South included airborne magnetic, ground IP surveys, geochemical soil surveys, as well as two very shallow diamond drill holes totaling 230 metres by a previous operator. Drilling tested two of three separate, coincident magnetic and IP anomalies, along with coincident copper and gold soil anomalies. The Company believes that the drilling may not have intersected the target and that additional drilling is warranted.

Fjordland and Serengeti have compiled all previous exploration data for the Mil and Milligan South properties into a single database for the Milligan West Property.

During September 2016 Serengeti undertook an IP survey consisting of a deep penetrating line down the east boundary looking for an analogue of the Mount Milligan deposit 4.5 km east of the boundary.

This survey identified a large chargeability anomaly. Fjordland did not participate in this program and was consequently diluted to a 47.3% interest. Serengeti, as operator has proposed a 2017 program of additional IP followed by drilling. Fjordland intends to participate in this program. Please click on the following links for additional information.

Note: John Peters, PGeo is the QP who has reviewed the data presented.

Last update on May 8, 2017

Additional Resources