Fondaway Canyon

Fondaway Canyon is an advanced stage gold property located in the Churchill County, Nevada. The land package contains 170 unpatented lode claims. The property has a history of previous surface exploration and mining in the late 1980's and early 1990's. Getchell Gold Corp. (Getchell) signed the Definitive Option Agreement with Canarc Resource Corp. on January 3, 2020 to acquire 100% of the Fondaway Canyon and Dixie Comstock properties.

The Company is currently drilling its Phase One 4,000 metre 2021 drill program at the Fondaway Canyon Gold Project as announced on June 1, 2021. As of Nov. 17, 2021, eight holes have now been completed in 2021 totaling  3,064 metres with assay results released for the initial 4 holes, FCG21-07 (Company news release dated Aug.10, 2021) thru FCG21-10 (News release dated Nov 17, 2021).

The Company plans to drill as late into the 2021 season as winter weather allows.

Key Highlights of 2021 Drill Program

Drill Hole FCG21-10 Results – North Fork Gold Zone

  • Hole FCG21-10 intersected the North Fork Gold Zone mineralization over 82.2m that included the following notable drill intercepts:
    1. 3.0 g/t Au over 41.6m that included 47.0 g/t Au over 1.5m, the highest-grade gold intercept in the 40+ year drilling history of the Project;
    2. 4.6 g/t Au over 9.8m; and
    3. 1.0 g/t Au over 14.3m.
  • Hole FCG21-10 intersected North Fork up-dip from FCG20-04 that graded 2.5 g/t Au over 58.0m;
  • Assays are pending for holes FCG21-11 through FCG21-14, that targeted the Colorado SW and Juniper gold zones; and
  • Hole FCG21-15 targeting the down dip extent of the Colorado SW gold zone is in progress.

"The latest results are a prime example of why the gold mineralizing system at the Fondaway Canyon Gold Project is so compelling.  The Project is host to an enviable setting comprised of very high-grade gold bearing structures that are themselves hosted within broader and thicker zones of mineralization.  The grades and thicknesses that have become apparent at Fondaway Canyon rival many of our peers in a world class gold district.” states Mike Sieb, President, Getchell Gold Corp.

Drill Hole FCG21-09 Results – North Fork Gold Zone

Drill holes FCG21-09 and 10 targeted the North Fork Gold Zone, respectively above and below the discovery hole drilled in 2020, FCG20-04, that graded 2.5 g/t Au over 58.0m within a broader zone of mineralization.

FCG21-09 was designed to parallel hole FCG21-04, spaced 50 metres above, and to test the down dip extent of the North Fork Zone (Figure 1).  Hole FCG21-09 intersected a broad zone of gold mineralization grading 1.2 g/t Au over 32.6m at a higher elevation than projected for the North Fork zone.  This zone of mineralization lines up to the west with gold intercepts reported from multiple historic drill holes and likely represents an upper and previously unmodelled gold zone.  Additional drilling is planned to determine the extent of this Upper North Fork zone.

FCG21-09 also intersected a number of other notable intercepts, such as 1.3 g/t Au over 13.1m and 4.1 g/t Au over 5.4m.  Getchell considers that the hole did not sufficiently penetrate the target zone and these intercepts represent the upper limits of the North Fork gold mineralization.  Hole FCG21-10, targeting the North Fork Zone below the FCG20-04 discovery intercept, was designed to provide additional information and assist in the interpretation.

The North Fork gold zone remains open in most directions and warrants significant follow-up.

Drill Hole FCG21-08 Results – Colorado SW Extension Zone

Hole FC21-08 was drilled from the same drill pad as FCG21-07 and was designed to test the Colorado SW Extension Zone down-dip, and to the west, of FCG20-02. The hole produced highly impressive results from the Colorado SW Extension Zone, spanning a distance greater than 200m downhole. The highlighted gold grade intervals are shown in Table 1 and along the drill hole trace in Figure 3.  The Colorado SW Zone remains open laterally and to depth.

Four notable and adjacent drill intercepts grade:

  1. 4.2 g/t Au over 27.5m from 223.4 to 250.9m, including 13.0 g/t Au over 4.3m from 243.9-248.2m;
  2. 2.8 g/t Au over 24.5m from 261.5 to 286.0m;
  3. 1.4 g/t Au over 30.7m from 323.5 to 354.2m; and
  4. 1.3 g/t Au over 16.8m from 374.0 to 390.8m.            

Figure 1: Fondaway Canyon Central Area Plan Map showing 2021 drill hole locations.

Figure 2: Fondaway Canyon 3D Gold Domain Model – Colorado Pit to Pack Rat (NE-SW) Section*

Hole FCG21-08 was the seventh consecutive hole in the Central Area that has intersected substantive gold mineralization.

“The unfolding story at the Fondaway Gold Project just keeps getting better.  We continue to hit significant grades of mineralization over considerable widths, with our latest drill hole reporting one of the most outstanding series of gold intercepts in the forty-five-year history of gold exploration on the Project.” stated Mike Sieb, President, Getchell Gold Corp.

President Mike Sieb has recorded an accompanying video augmenting these results.  The narrated video can be viewed here:

Figure 3: FCG21-08 Drill Hole Trace with Gold Intervals, Looking NW

2021 Drill Program Results – Juniper Zone

Hole FCG21-08 also tested the Juniper Zone, located within 100 metres of surface, with a 10m vertical step out from FCG20-02 (Figure 2).  FCG21-08 intersected the Juniper Zone between 104.0-129.9m returning 4.7 g/t Au over 25.9m that included 11.4 g/t Au over 5.5m (Figure 3).

The Juniper Zone was discovered last year by FCG20-02 that intersected 6.2 g/t Au over 21.9m that included 20.4 g/t Au over 3.2 m (Company news release Jan. 27, 2021). The new Juniper zone represents a significant high-grade gold zone proximal to surface, remains open in most directions, and will be followed up by additional drilling.


Table 1: FCG21-08 Gold Grade Interval Highlights

Drill Hole FCG21-07 – Colorado SW Extension Zone

The first drill hole of the 2021 program, FCG21-07 was drilled southwest from the Colorado Pit (Figure 2).  Two holes from the 2020 drill program, FCG20-02 and FCG20-03, were drilled from the same pad.  The gold intercepts encountered in holes FCG20-02 and FCG20-03, 1.9 g/t Au over 43.5m and 2.0 g/t Au over 49.0m respectively, are 75m apart from each other and FCG21-07 was drilled between these two 2020 gold intercepts to establish the lateral continuity of the Colorado SW Extension zone across this broad distance.

FCG21-07 intersected a higher-grade gold interval than the neighbouring drill holes, grading 3.0 g/t Au over 33.0m of uninterrupted mineralization including an interval grading 7.8 g/t Au over 4.6m.  The highlighted gold intervals from hole FCG21-07 and select adjacent holes are shown in Table 1.

Hole FC21-07 represented the sixth consecutive drill hole that has intersected a substantive interval of gold mineralization at the Central Area of Fondaway Canyon.  It was also the first hole drilled in 2021 to start tying together the broad and thick zone of gold mineralization, modelled 800m down dip from the Colorado Pit, discovered during the 2020 drill program

Fondaway Canyon 3D Gold Domain Model – Colorado Pit to Pack Rat (NE-SW) Section*

The modelled gold domain highlights areas where gold intervals have been geologically linked and projected.  The modelled gold domain is solely for exploration planning purposes and does not indicate a mineral resource.  A qualified person has not done sufficient work to classify a current mineral resources estimate at Fondaway Canyon.

Scott Frostad, P.Geo., is the Qualified Person (as defined in NI 43-101) who reviewed and approved the content and scientific and technical information in the news release.

Highlighted drill intervals are based on a 0.25 g/t Au cut-off, minimum interval lengths of 10 feet (3.3 metres), and a maximum of 10 feet of internal dilution, with no top cut applied.  All intervals are reported as downhole drill lengths and additional work is required to determine the true width.

The 2020 and 2021 drill core was cut at Bureau Veritas Laboratories’ (“BVL”) facilities in Sparks, Nevada, with the samples analyzed for gold and multi-element analysis in BVL’s Sparks, Nevada and Vancouver, BC laboratories respectively.  Gold values were produced by fire assay with an Atomic Absorption finish on a 30-gram sample (BV code FA430) with over limits re-analyzed using method FA530 (30g Fire Assay with gravimetric finish).  The multi-element analysis was performed by ICP-MS following aqua regia digestion on a 30g sample (BV code AQ250).  Quality control measures in the field included the systematic insertion of standards and blanks.

The 2017 Technical Report commissioned by Canarc and authored by Techbase International Ltd. has a historical estimate of Indicated resources of 409,000 oz. Au contained in 2,050,000 tonnes grading 6.18 g/t and Inferred resources of 660,000 oz. Au contained in 3,200,000 tonnes grading 6.4 g/t, using a 1.8 m width cut-off and a cut-off grade of 3.43 g/t Au.

The Fondaway Canyon mineralization is contained in a series of 12 steeply dipping en-echelon quartz- sulphide shears outcropping at surface and extending laterally over 1,200 m, with drill proven depth extensions to > 400 m. The deposit is hosted by Mesozoic age sediments and minor volcanics and is classified as "orogenic", ranging from mesothermal to epithermal in depositional environment. Mineralization is hosted within shears, spatially- and temporaneously-related to certain dykes that occupy the shears, but mineralization also permeates into the hosting sediments. Additional exploration targets include near-surface oxide gold along favorable structural and host rock targets and deeper extensions of the sulphide zones. The >2 g/t rock chip and drill intercept results reveal a sizable, internally consistent and well mineralized zone with abundant exploration targets that have the potential to extend and increase the mineralized zones (see figure below).

This historic resource estimate was completed by Techbase International Ltd of Reno, Nevada, and it is contained within a NI 43-101 report dated April 3, 2017 that was commissioned by Canarc Resource Corp of Vancouver, B.C., Canada. The resource estimate was compiled only from drill holes that could be validated (591 holes @ 49,086 m), a sufficient amount to deem the historic resource as reliable. Using Techbase software, a method of polygons was used along each vein. With a minimum 0.10 opt Au and 1.8 m horizontal vein width used as cut-off parameters, twelve veins had sufficient composited intercepts within the sulfide mineralization for the estimate. No capping or cutting of grades was applied. The historical resource estimate used classifications in accordance with NI 43-101 standards, namely, "indicated" and "inferred". A review and/or recalculation of the historic resource is required by an independent Qualified Person to confirm these as current resources as defined by NI 43-101. A qualified person for Getchell has not done sufficient work to classify the historical estimate as current mineral resources; and the issuer is not treating the historical estimate as current mineral resources

In 2017, Canarc drilled 7 holes in Fondaway Canyon which all intersected multi gram gold mineralization. These holes were not included in the historic resource report.


Fondaway Canyon - Stillwater Wilderness Study Area (“WSA”)

 WSAs are NOT designated Wilderness Areas;
 WSAs are a provisional designation;
 BLM final report recommends that the Stillwater WSA be designated as non-suitable for Wilderness
and zero acres be designated as ‘Wilderness’;
 BLM reports that out of all the WSAs studied, the Stillwater WSA ranked as having one of the best
potentials for future metallic mineral finds of all the WSAs studied in the Basin and Range province;
 The Fondaway Canyon project’s historic workings support the ‘Grandfathered Rights’ exemption
under Section 603(c) of Federal Land Policy and Management Act of 1976; and
 The ‘Grandfathered Rights’ assertion has been successfully argued and a precedent has been set
under a 1983 determination by the BLM

In 1976, Congress passed the Federal Land Policy and Management Act (“FLPMA”), directing the US Bureau of Land Management (“BLM”) to identify and review public lands under its administration as to
which possess wilderness characteristics as described in the Wilderness Act of 1964. The BLM conducted three phases of wilderness review: inventory, study, and reporting.

The inventory phase was completed in 1980 with the lands designated as Wilderness Study Areas (“WSA”) moving forward to the next phase, the study phase, of the process. Of note, Wilderness Study
Areas are NOT designated Wilderness Areas. A WSA is a special designation ascribing a non-impairment standard (i.e. closed to any new disturbances) to the lands within the boundary of the WSA to preserve
wilderness characteristics until the BLM completes its review and recommendation, and Congress decides to either designate the WSA as Wilderness or remove the WSA designation.
The Fondaway Canyon mineral claims are adjacent to and partially overlain by the Stillwater Wilderness Study Area (Figure 1) and in its final Environmental Impact Statement (“EIS”) in 1987, the BLM
completed its comprehensive wilderness inventory review and provided its recommendation regarding the Stillwater WSA.

Figure 1: Fondaway claim boundary, surface mineralization and road network in respect to the Stillwater WSA The US Bureau of Land Management issued the recommendation that the Stillwater WSA be designated
as non-suitable for Wilderness and zero acres be designated as ‘Wilderness’. This recommendation was reiterated in the 1991 Statewide Wilderness Report and in the Nevada Wilderness Survey Area
Notebook published in 2000.

BLM’s final recommendation provided strong support for the Stillwater Range WSA not to be designated as wilderness, that the area would be managed for multiple use, and would be open to mineral and energy exploration and development. The entire Stillwater WSA is considered to have moderate to high favourability for the occurrence of metallic minerals and is believed to be one of the best "...potential
areas for future metallic mineral finds of all the WSAs studied in the Basin and Range province..."; (GEM, 1983).

In addition, the 1987 EIS acknowledged that exploration for metallic minerals is expected to occur throughout the WSA and that exploration would result in the development of two small surface gold and silver mines in either the Fondaway, Cox, White Cloud, Mississippi or Hare Canyon areas, or around the site of the old Dixie Comstock Mine. These developments would consist of open pit mines, waste
dumps, tailings ponds, mill sites and many miles of access and haul roads.






The 1991 Statewide Wilderness Report also acknowledged that since the completion of the inventory designation, more Plans of Operation have been filed pursuant to 43 CFR 3802 in this WSA than in all other Lahontan Resource Area WSAs combined. In addition, exploration continues and grandfathered activities have expanded into the WSA around Fondaway Canyon, Big Elk Canyon, Silver Hill, Cox Canyon, Wood Canyon, Mill Canyon and Alameda Canyon, and further expansion is likely.

Separate to the clear statements by the BLM to Congress supporting the classification of the Stillwater WSA for multiple purpose and not Wilderness, Section 603(c) of FLPMA provides the basis for a special
exception for the Fondaway Canyon project in respect to the non-impairment status prescribed for the Stillwater WSA. FLPMA provides the ‘Grandfathered Rights’ exemption so that activities existing on the
date of approval of FLPMA (October 21,1976) may continue in lands under wilderness review (i.e. WSA designation) in the same manner and degree as on that date. In addition, ‘Grandfathered Rights’ permit
‘Grandfathered Uses’ (i.e., exploration and mining activities) to proceed into the WSA from surrounding areas, so long as those activities are natural extensions or logical progressions of existing or previous
activities on adjacent lands outside the WSA.The assertion is that since drilling, road building, mining, and milling activities were underway at Fondaway Canyon when the WSA was established in 1976, these activities, in the same manner and degree are permitted. This assertion has been successfully argued and a precedent has been set under a 1983 determination by the BLM that allowed past operators to construct roads, conduct drilling
programs and perform other exploration activities within the WSA boundary. The BLM also highlighted within its 1983 memorandum that ‘Grandfathered Uses’ would include mining and milling in addition to
the drill program proposed by Tundra Gold Mines, the operator at the time of the determination.

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