EXPLORING YUKON’S SOUTH KLONDIKE GOLD DISTRICT...
Transcript of EXPLORING YUKON’S SOUTH KLONDIKE GOLD DISTRICT...
May 2017
EXPLORING YUKON’S SOUTH KLONDIKE GOLD
DISTRICT
INCL. THE ‘WELS PROJECT’
A SIGNIFICANT NEW GRASSROOTS GOLD
DISCOVERY
KTO:TSX-V
Slide Set A
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This presentation may contain “forward-looking statements.” These forward-looking statements are made as of the date of the
presentation and K2Gold Corporation does not intend, and does not assume any obligation, to update these forward-looking
statements. Forward-looking statements include, but are not limited to, statements with respect to the timing and amount of
estimated future exploration, success of exploration activities, expenditures and requirements for additional capital.
Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual
results, performance or achievements of the Company to be materially different from any future results, performance or
achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual
results of current exploration activities; changes in project parameters as plans continue to be refined; the ability to enter into
joint ventures or to acquire or dispose of property interests; future prices of mineral resources; accidents, labour disputes and
other risks of the mining industry; ability to obtain financing; and delays in obtaining governmental approvals or financing.
For further reference:
"On June 26, 2014, the Supreme Court of Canada (the “SCC”) released its decision in Tsilhqot’in Nation v. British Columbia (the“William Decision”), pursuant to which the SCC confirmed the Tsilhqot’in’s claim to Aboriginal title over a large area of land incentral British Columbia, granting the Tsilhqot’in the right to decide how the subject land will be used, the right to possess theland, the rights to the economic benefits of the land, and the right to pro-actively use and manage the land. The SCC held that tojustify an intrusion on title, the government must show it has discharged its duty to consult and accommodate, that its actionswere backed by a compelling and substantive objective, and the government action is consistent with the Crown’s fiduciaryobligation to the group. Resource development on claimed land to which Aboriginal title has not been established requires thegovernment to consult with the claimant Aboriginal group, and, if appropriate, accommodate its interest.
The Company does not currently hold any properties in the area subject to the William Decision, but has entered into an option tojoint venture agreement with Gorilla Minerals Corp., involving certain mineral claims in an area of the Yukon Territory that may besubject to a claim for Aboriginal rights and title by the White River First Nation. The Company will continue to manage itsoperations within the existing legal framework while paying close attention to the direction provided by the Government of theYukon regarding the application of the William Decision. Therefore, risks and uncertainties associated with developing theseclaims remain consistent with those referenced herein."
FORWARD LOOKING STATEMENT
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K2 MISSION STATEMENT
➢ K2 is a junior resource company currently focused on exploring for gold in
the Yukon.
➢ The company plans to grow by acquiring further mineral properties in North
America by leveraging off the Director’s past successes (e.g. Kaminak,
Pediment etc.) and undertaking smart and cost effective exploration.
➢ It will also continue to utilize its strength and good reputation in financial
markets to ensure adequate financial resources for the projects it acquires
or discovers.
➢ K2 is committed to an aggressive marketing campaign.
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K2 will explore 4 gold projects in 2017 totalling 20,500 ha (205km2) in the South Klondike district: Wels, Flume, Storck and Ladue.
K2 will drill the Wels property in June 2017 (1000m diamond drilling minimum) and will undertake prospecting, rock sampling and soil sampling on Wels, Flume, Storck and Ladue claims.
K2 is directed and managed by experienced and recognised people in the mining industry:
Directors - John Robins (Chairman), Steve Swatton (CEO), Gary Freeman, Craig Roberts and Freddie Leigh
Senior Management - Allison Rippin (Head of CSR), a well respected First Nations mediator / negotiator and Al Doherty (Geologist) who has 36 years of Yukon exploration experience.
K2’s Chairman, John Robins, was the founder of Kaminak Gold. Kaminak sold the Coffee deposit; a multi-million ounce gold resource to Goldcorp for $520M in 2016. It will be the largest hard rock mine in the Yukon since gold was discovered in the Territory in 1896.
PROJECTS
K2 GOLD – HIGH LEVEL SUMMARY
PEOPLE
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CORPORATE SHARE STRUCTURE
SHARE STRUCTURE
• Issued & Outstanding 13.9 million
• Fully Diluted 22 million
• Market Cap ~$C 5 million
• Cash $1 million
• 52 Week Trading Range $0.20 - 0.58
• The Company raised C$2M in June 2016; 8M units at $0.25 with a warrant at $0.35 for 18 months (acceleration provision $0.50)
• Insiders own 32% of the undiluted shares • No Major Mining company or Fund participation in K2. Most of
the major shareholders are High net worth individuals.
FINANCINGS AND SHARE DISTRIBUTION
TSX.V: KTO.V
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• K2 is well structured with significant insider ownership (32%). Approximately 30% of public shareholders are well known to the management.
SHARE DISTRIBUTIONK2 OWNERSHIP BREAKDOWN (UNDILUTED)
48%
30%
32%
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$357.84
$123.33 $134.16$133.26
$70.00 $56.92
$25.07
$6.11 $-
$50.00
$100.00
$150.00
$200.00
$250.00
$300.00
$350.00
$400.00
Victoria Gold(VIT)
GoldenPredator
(GPY)
WesternCopper(WRN)
White Gold(WGO)
ATAC(ATC)
Goldstrike(GSR)
Triumph Gold(TIG)
K2 Gold(KTO)
MARKET CAPITALIZATION COMPARISONYUKON GOLD EXPLORATION COMPANIES ($CDN MM)
Ag
nic
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ag
le
Go
ldco
rp
Ne
wm
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Ba
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Project NameVIT: Dublin GulchGPY: 3 Acres/Brewery CreekWRN: Casino MineWGO: Western Yukon expl. ATC: Rackla/OrionGSR: PlateauTIG: Freegold MountainKTO: Wels, Flume
May 17, 2017
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MINERAL DEPOSITS OF THE TINTINA BELT (ALASKA -SOUTHERN YUKON)
The Tintina Gold Belt has had past production of over 30 million ounces and current estimated resources of 39 million ounces
MINERAL DEPOSITS OF THE TINTINA BELT(ALASKA – SOUTHERN YUKON)
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RECENT YUKON INVESTMENTS COMPETITOR ANALYSIS
Major/ Junior
Barrick/ ATAC
Goldcorp/ Kaminak
Goldcorp/ Triumph
Agnico Eagle/ White Gold
Newmont/ Goldstrike
Golden Predator
Western Copper & Gold
K2 Gold
Property/ Project Location
Rackla/Orion East of Keno (0-185km long trend)
Coffee 130 km south of Dawson
Freegold Mountain Dawson Range /Big Creek fault zone
All remaining S.Ryan claims White Gold district
Plateau South of Hess River, Southern Yukon
3 Acres/Brewery Creek ~180km east of Ross River/~60km south east of Dawson City
Casino Dawson Range (300km NW of Whitehorse)
Wels 80 km east of Beaver Creek/180 km South of Dawson city
Deal Price (C$M)
$63.3 $520 $6.2
$14.52 (to $18) $53 $17.5 n/a n/a
Purchase Details
$8.3m PP, 2-staged $55M earn in to acquire 70% Read more…
100% purchase Read more…
To acquire 19.9% Read more…
Obtained 19.93% of WGO’s shares @ $1.20 Additional $3.48M ‘additional placement’ Read more….
(12.7m shares @ 0.47)PH1: $6M PP, $8M cash payments for 51% acquisition, $17.4M //PH2: $21.4M exp, PEA to earn addt’l 24%. to =$53M Read more…
bought deal financing w/Clarus 7.1M shares @ $1.60, 3.1M shares @ $1.85 Read more…
n/a Company website
n/a
Deposit Type
Carlin type w/long lived hydrothermal
Hydrothermal Porphyry-style mineralization
Various Early stage exploration
Porphyry (Au, Cu, Mo)
n/a
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K2: SNAPSHOT
• Share Structure - Very tight with over 60% of shares held by insiders or people known to the
Principals and Management.
• Projects
– 20,500 Hectares of prospective gold exploration claims in the South Klondike, Yukon
– Wels, the company's flagship project, is arguably one of the most significant new
grassroots gold discovery in the Yukon in the past 5 years
– K2 will undertake drilling and further exploration of Wels in 2017 while exploring and soil
sampling other newly acquired properties, Flume, Storck and Ladue
• First Nations - K2 has good First Nations relationships in the Klondike developed during Kaminak
exploration (2005-2016) and maintains strong corporate values for the inclusiveness and
recognition of First Nations peoples
• Marketing and Finance – A structured strategy of marketing and financing the company
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K2GOLD PROJECTS
K2 Properties
Investments by Majors
Other Deposits
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WELS (4,790ha)(K2’s Flagship property)
LOCATION
• 50km east of Beaver Creek
• 60km south of Coffee Deposit (Goldcorp)
• 180 km south of Dawson city (Air)
• 300 km north west of Whitehorse (Air)
• 20km east of Snag airstrip (by air), a WWII ~2-3km long airstrip that can be refurbished and used as a base camp
• Snag is 50km from the town of Beaver Creek by road
• The claims are located in the Traditional Territory of White River First Nation
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WELS LOCATION
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WELS PROJECT OVERVIEW
• Optioned from a private company in August 2016
• A new gold discovery in a previously unrecognized mineral district 60km south of Goldcorp’s 2.2
Moz ‘Coffee’ deposit
• Mineralization is attributed to IRGS (granite intrusive) deposits akin to the >6 million ounce Fort
Knox and Dublin Gulch (2.6Moz P + P) in the prolific Tintina Belt of Alaska and Yukon
• High grade rock samples close to surface found in 3 adjacent zones over 2 x 4km zone but only
20% of the property explored in any detail to date
• Only 445M of drilling (2015)
• Located 20km east of a disused airstrip which is connected to the main Alaska highway near
Beaver Creek
• Located in the traditional territory of White River First Nation with which K2 has a cooperative
relationship
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• Rock sampling – 28 samples collected including several under a high grade soil profile.
➢ Highest grades: 149.5 g/t (single sample 2012) and 5 further samples at the same location (2013) averaged 5.2 g/t
• Trenching (2014) – 104 samples collected in 155m of trenches
➢ Highest Intersection: 8.8g/t over 40m including 9.15 g/t over 40.5m
• Drilling (2015)– 442m drilling from 2 pads 50m apart returned mineralization in each hole
➢ Best Grade (DDH-01) 97.5m @ 0.76 g/t, Including 3.11g/t over 19.5m, 5.71g/t over 9m (visible gold seen)
➢ Mineralization still seen at the bottom of hole 1 (~80m true depth)
• Soil sampling – 1,658 samples taken. Soil sampling has been the most useful exploration method to define mineralized zones and samples. Analysis was done for Au and multi-element ICP. Gold at Wels has an affinity for Ag, As, Bi and Sb
• Man days – Total spent on the property to date is only 210
WELS EXPLORATION HIGHLIGHTS
2011-2015
STAKING & SOIL SAMPLING The ground was partially staked by 2 prospectors in March 2011 and then optioned to Gorilla Minerals in June 2011. Reconnaissance soil sampling was performed.
2011
2006
REGIONAL PROSPECTING Visited as part of a regional study by Yukon Geological Survey. 1 rock, 10 stream and 21 soil samples taken on the ground now held by K2 Gold.
2002
STAKING, SOIL AND ROCK SAMPLING An early rock sample taken (hand dug Trench A) ran 149.5 g/t gold. Gorilla added more claims after receiving positive soil results including 5204ppb gold, 3740ppb gold and 1984 ppb gold.
2012
REPORT PUBLISHED YGS Report published on the 2002 sampling and of the 21 soil samples collected only 2 were marginally anomalous
(33ppb gold and 56ppb gold).
2002
CHRONOLOGY OF THE WELS DISCOVERY
ROCK SAMPLING 5 further rock samples taken to confirm the 2012 program (returned an average of 15.25 g/t Au from 5 samples each >2kg each).
2013
GEOPHYSICSAirborne Magnetic and radiometric survey (3km x 3.3km).
TRENCHING155m of shallow trenching (with a ‘CanDig’ back hoe). Best sections 8.8 g/t over 45m including 9.15 g/t over 40.5m. Best individual sample results 54.3 g/t over 1.5m and 27.7 g/t over 1.5m.
2014
2015
DRILLING442m of diamond drilling (5 holes) returned values including DOH 15-01 0.76 g/t over 97.5m, including 3.1 g/t over 19.5m and 5.7 g/t over 9m. Mineralization in hole DDH15-1 was confirmed to the end of the hole @ 97.5 m (~80m true depth).
2015
CHRONOLOGY OF THE WELS DISCOVERY
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AERIAL VIEW OF THE WELS SADDLE ZONE View North (Trenches T14-01,02,03,04)
• Rock grab – 149.5 Au g/t (2012, Stroshein ‘discovery’ sample) • Composite rock sample - 15.25 g/t Au (>10kg / 5 samples)• Trench - 8.8 g/t Au over 45m including 9.15 g/t Au over 40.5m • Drilling – 97.5m @ 0.76 g/t Au (incl. 19.5m @ 3.11g/t and 9m @ 5.71 g/t with visible gold
NORTH
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WELS TRENCHINGDETAILED RESULTS – SADDLE ZONE
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WELS SOIL SAMPLING CORE EXPLORATION AREA (2012 – 2015)
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WELS TRENCHINGTRENCHING RESULTS: SADDLE ZONE
2014 Trenching
Weighted Average Intervals (g/t Au over m)
TRENCH FROM TO INT Au
# (m) (m) (m) (g/t) Lithology
T-14-01 0.00 19.00 19.00 2.63 Bio granite
Includes 0.00 11.00 11.00 4.53 Bio granite
Includes 0.00 4.50 4.50 11.00 Bio granite
T-14-01 31.00 49.00 18.00 5.30 Bio granite
Includes 43.00 49.00 6.00 15.40 Bio granite
T-14-02 0.00 45.00 45.00 8.80 Bio granite
Includes 3.00 43.50 40.50 9.15 Bio granite
Includes 22.50 43.50 21.00 13.81 Bio granite
T-14-03 0.00 25.50 25.50 0.56 Bio granite
Includes 19.50 25.50 6.00 2.18 Bio granite
Includes 21.00 24.00 3.00 4.30 Bio granite
T-14-03 31.50 54.00 22.50 0.03 Bio granite
T-14-04 0.00 25.50 25.50 1.27 Bio granite
Includes 0.00 10.50 10.50 3.04 Bio granite
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WELS TRENCHING AND DRILLING SADDLE ZONE
DH17-07-A2MO° Dip-50 TD 100DH17-08 -A2M180° Dip-50 TD 100
DH17-06
DDH17-07DDH17-08
DDH17-06
N
Soil Geochem – AuAu (ppb)
DDH 17-06,07,08
are proposed drilling in June 2017
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DRILLING RESULTS JUNE 2015
5 SHORT HOLES DRILLED FROM 2 PLATFORMS 50M APART IN THE SADDLE ZONE
TABLE 4. 2015 DRILL PROGRAM WEIGHTED ASSAYS
INTUSIVE GRANITOLD HOST ROCK
DRILL HOLE FROM
(m)
TO
(m)
INT
(m)
Au
(g/t)
NOTES
DDH-15-01 0.00 97.5 97.50 0.76
DDH-15-01 31.5 51.00 19.50 3.11
INCLUDES 31.5 40.50 9.00 5.71 VG ZONE
INCLUDES 45.00 51.00 6.00 2.38
DDH-15-01 96.00 97.50 1.50 0.73 EOH
DDH-15-02 49.00 52.00 3.00 1.00
DDH-15-02 83.50 88.00 4.50 2.77
INCLUDES 83.50 86.50 3.00 2.00
DDH-15-03 65.65 65.80 0.15 0.70 EOH
DDH-15-04 49.50 70.50 21.00 0.741
DDH-15-04 49.50 55.50 6.00 1.61
DDH-15-04 63.00 70.50 7.50 0.67
DDH-15-05 78.00 81.00 3.00 1.29
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WELS DIAMOND DRILLING HISTORICAL AND PROJECTED FOR 2017
442M of drilling from 2 platforms (5 holes)
(Diagram shows Cross-section of DDH 01, 02 and 03)
DDH 01 – 0 to 97.5 (bottom of hole ) 0.76 g/t Au, incl. 9m @ 5.71 g/t w/ visible gold, 19.5m @ 3.1 g/t Au and 6m @ 2.38 g/t Au
ProposedDH17-06
AZM 0°Dip-50°TD 150
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WELS 2017 WORK PLAN
The initial exploration was completed over 4 short campaigns (2011, 2012, 2014, 2015 – total man
work days 225) and was only concentrated in a relatively small area (2x4km)
Expenditures to date total $640k (2011-2016)
The intent of the 2017 work program is to better understand the extent of the mineralization by
further mapping, geochemistry sampling and targeted drilling in the Saddle zone
C$540,000 work program
•1000m of diamond drilling in the Saddle Zone
•Extend the soil grid to the ~ North - South of the Saddle Zone
•Prospecting in the general area
•Mapping
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FLUME (4,015 Ha)
• Ryan Gold completed property wide soil sampling, detailed airborne geophysics and diamond drilling (9 holes , 2307m) in 2011 and 2012 (~ $3,000,000 in expenditures)
• Target comprises 10 km X 2 km gold and arsenic soil anomaly underlain by meta-sediments and intrusives. Gold occurs in structures associated with pyrite, arsenopyrite, galena and quartz
• Reinterpretation of previous drilling indicates the holes may have been orientated almost parallel to mineralization (wrong direction) therefore work in 2017 will attempt to determine the nature of the mineralization and its relation to the structure with a view to drilling new targets in 2018-2019
• K2 will carry out $200K program - infill soil sampling and mapping in the South and Northern anomalies. The Northern anomaly is 2km on strike from White Gold’s Dime property
• Optioned by K2 from Commander in March 2017
• Located 70 km NW of the Goldcorp Coffee gold project and 40 km northwest from Kinross’s Golden Saddle project. First staked in 1998 by Phelps Dodge who completed property wide soil sampling, rock sampling and trenching
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FLUME
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FLUME: SOIL GEOCHEMISTRY
2 km
Au (ppb) As (ppm)
2 km
North Target
South Target
North Target
South Target
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FLUME: AIRBORNE MAGNETICS
TMI RTP1 VD
2 km2 km
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FLUME: SOUTH ANOMALYHISTORICAL DRILLING
• 9 core holes (2,307-metre) completed by Ryan Gold in 2012
• Discreet structures with elevated arsenic in the order of 5 to 15 metres of core length are associated with anomalous gold
• Drill pattern was not optimum for testing key structures
• North Anomaly is undrilled
Hole Az Dip from (m) to (m)Length
(m)
Au
(g/t)
FL12-001 132 -50 180.0 181.0 1.0 1.23
FL12-003 131 -50 82.3 83.0 0.7 1.42
89.5 90.3 0.8 1.04
92.0 93.0 1.0 2.25
FL12-006 132 -50 32.0 34.0 2.0 5.76
FL12-007 129 -50 67.0 68.2 1.2 1.11
74.5 75.3 0.8 1.42
185.5 186.2 1.12 1.57
FL12-008 45 -50 97.5 99.5 2.0 1.35
FL12-009 45 -50 49.0 50.0 1.0 0.74
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STORCK CLAIMS (7,340 Ha)
Storck exploration 2017 – follow up a significant unexplored soil anomaly recognised by Phelps Dodge (1999-2009) but never followed up.
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LADUE CLAIMS (4,350 Ha)
Ladue exploration 2017 – prospecting and soil sampling in an intrusive-orogenic geological terrain.
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K2 GOLD 2017 EXPLORATION SUMMARY
• Wels - $540,000 Program - 1000m+ diamond drilling campaign at Wels to
extend the mineralization and continue the successful drilling program of
2015, extend the soil grids
• Flume – $200,000 Program - Follow up 4km x 2km gold and arsenic anomaly
the northern target (on strike from White Gold’s Dime property),
prospecting and soil sampling
• Storck – $75,000 Program - Exploration in an area NW of Flume with some
historical gold anomalies that were never followed up (Phelps Dodge
historical data)
• Ladue – $50,000 Program – Prospecting
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DIRECTORS & MANAGEMENT
Founder and Chairman of Kaminak Gold. Kaminakdiscovered and developed the Coffee Gold Project, Yukon, acquired by Goldcorp in August 2016 for approximately $CDN 520 million. Founder and/or director of Kivalliq, Northern Empire, Stornoway Diamonds, Grayd
JOHN ROBINS (Chairman)
Formally Global Head of New Business and Research at BHP Billiton Exploration, Singapore, Institutional Mining Analyst Yorkton Securities, CEO Brazil Resources, CEO Southern Rio Resources, CEO Fortress (now Lundin Gold), Senior Geologist - Rio Tinto
STEPHEN SWATTON (President / CEO)
Mining Engineer / Mining Investment Banking: Fluor, First Marathon, NBF, PI, Axemen, Director of Ethos Gold
CRAIG ROBERTS (Director)
Entrepreneur and CEO Ethos Gold, Former President & CDO of Pediment Gold (acquired in 2011 by Argonaut Gold for approximately $140 million)
GARY FREEMAN (Director)
Brassneck Capital Corp. 12 years as an advisor to private and public companies in the technology and mining sector
FREDDIE LEIGH (Director)
Well regarded in First Nation related matters and also advisor to Government northern community affairs. Allison was the First Nations Advisor on the Kaminak Gold project.
ALLISON RIPPIN (Head of CSR)
An Exploration Geologist with 36 years experience in the Yukon. Advocate and lecturer for the Yukon mining and geological community. Al is also active in political consultation issues related to mining in the Yukon.
AL DOHERTY (Senior Geologist)
K T O : T S X - V
w w w . k 2 g o l d . c o m
Stephen Swatton, President & CEO
Head office:
1020 – 800 West Pender Street
Vancouver, B.C. V6C 2V6
Tel: (604) 604 331 5090
Email: [email protected]
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APPENDIX / ADDITIONAL SLIDES
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MINERAL DEPOSITS - SIGNIFICANT GOLD& OTHER DEPOSITS IN THE CENTRAL TINTINA BELT
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WELS - GEOLOGY & MINERALIZATION
Preliminary studies indicate the host rocks are reduced IRGS (Intrusion Related Gold System) that intruded a raft of Selwyn Basin-related rocks within the prolific Tintina Gold Province (TGP).
Host rocks to the mineralization are a reduced granite, similar to the Tombstone Suite intrusions located in the Selwyn Basin. Examples of this type of granitoid intrusion are:
Other deposits that are considered of a similar general type but not directly related are Donlin Creek - 32 Moz2.91g/t and Pogo - 5.6 Moz at 12.5 g/tOn site geologists believe the mineralization ‘tops’ are seen at Wels and therefore the whole mineralized profile maybe preserved.
3 mineralized zones discovered to date at Wels: Saddle, Northwest Ridge, Southwest Spur
All figures on this slide are from company / public sources and are not broken down into specific resource
categories unless stated.
• Dublin Gulch (Victoria Gold) 6.3Moz global resource incl. 2.6Moz
P+P @ 0.68 g/t,
• Fort Knox (Kinross) >6Moz mined historically and
0.9Moz @ 0.42 g/t remaining
• Ryan (Gold Run Ltd) 0.8Moz @ 0.47 g/t
• Shotgun (TNR) 0.71Moz @ 1.06g/t
• Red Mountain (IDM) 0.5Moz (Measured and Indicated) – 8.36 g/t
• Scheelite Dome, Clear Creek, Ida-Ora (Exploration projects)
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WELS SOIL SAMPLING – SADDLE ZONESAMPLING HIGHLIGHTS 2014
N
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WELS GOLD PROJECT ACQUISITION AGREEMENT
• K2 Gold purchased a 90% option interest in Wels from Gorilla Minerals Corp
• Payments to Gorilla - C$350,000 over 24 months and issuing 3M shares of KTO over a
30 month period
• At earn-in a JV will be formed and KTO will sole fund through to completion of
Preliminary Economic Assessment Study (PEA)
• After completion of a PEA, KTO and Gorilla will fund 90:10 (if either party dilutes to
less than 1% the JV will be cancelled)
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FIRST NATION AGREEMENT & THE ENVIRONMENT
FIRST NATION
• The Wels Claims are located in the Traditional Territory of White River First Nation (WRFN).
• K2 Gold believes in early and ongoing
engagement and will continue to
collaborate with WRFN on the Wels
project at every level.
ENVIRONMENTALCONSIDERATIONS
The Wels exploration site is 7km NW of Wellesley Lake and 5km East of White River. K2 are committed to ensuring the highest quality of work and monitoring in keeping with the company’s commitment to responsible exploration.
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FLUME - 2017 EXPLORATION BUDGET
$200,000 minimum spend as per option agreement
• Extending and infilling current soil grid in North zone,
• Prospecting, reviewing 2012 drilling results, re-mapping south zone with the aim of defining drill targets for 2018-2019
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FLUME – TERMS OF OPTION AGREEMENT
• To earn 60% K2 must spend C$2M on exploration ($200,000 in year 1), issue 1M shares and pay Commander C$400,000 over a 4 year period. Exploration expenditures are ’Back–Ended’ and minimal cost to K2 in the first 3 years
• To acquire 100% K2 must carry out an additional $3M in exploration expenditures, cash payment of C$250,000 plus issue 2M shares