Gupna

In absence of any prior systematic drilling, targets have been generated from 3D modelling of workings from historical data, surface mapping and knowledge gained from each drill hole as data becomes available.

Gupna (NBDD002), which was redesigned following geological interpretation from NBDD001, intersected a 93.0 metre quartz breccia zone from 531.5 metres to 624.5 metres.  Within this broad structural zone, 10.0 metre wide zones of quartz-carbonate-pyrite veinlets are repeated.  This structure is thought to be a main feeder of mineralisation and will inform ongoing drill hole designs.

In addition, a number of encouraging narrow, near surface assay results (such as 5.39 g/t Au and 29.9 g/t Ag, 4.09 g/t Au and 59.3 g/t Ag) were reported.  Further shallow drilling, possibly by RC, is being planned to test the continuity and extent of this shallow mineralisation.

Subsequent to assay results being received for NBDD002, which included 0.8 metre @ 5.82 g/t Au and 1.6 g/t Ag from 317.0 metres, the remaining half drill core was inspected for geological logging purposes and visible gold was identified in a section of adularised andesite with very sparse hairline quartz, minor carbonate, sphalerite, pyrite veins.

Nova Bana exploration licence and targets.

Nova Bana exploration licence and targets.

Crystalline gold on sphalerite from NBDD002.

Crystalline gold on sphalerite from NBDD002.

Cyrstalline gold wire from NBDD002.

Cyrstalline gold wire from NBDD002.

Sections of drill core are selected for assaying, in the case of NBDD002 for gold and silver only, based on geological logging of the core.  Following the identification of the visible gold in NBDD002 additional peripheral zones were sampled.

Gupna (NBDD002) section with discovery of the main quartz breccia feeder to be drilled at shallow levels in early 2017.

Gupna (NBDD002) section with discovery of the main quartz breccia feeder to be drilled at shallow levels in early 2017.

Kohutovo

Kohutovo (NBDD003) has been drilled to a depth of approximately 394 metres to cross the Laurenc structure.  As can be seen from the cross-section below, drilling conditions are difficult due to the numerous historic workings.

Kohutovo (NBDD003) drill plan cross-section. This historic gold silver production area has never been systematically drilled. Assays are pending from NBDD003.

Kohutovo (NBDD003) drill plan cross-section. This historic gold silver production area has never been systematically drilled. Assays are pending from NBDD003.

Rudno Nad Hronom

This exploration licence was pegged by the Company, at minimal cost, over open ground and granted in May 2017.

Low sulphidation epithermal mineralisation occurs in the massif of Chlm in hydrothermally altered pyroxene-amphibole andesite between Rudno nad Hronom and Brehy village.  The deposit is formed by two groups of precious metal bearing, steeply dipping veins striking north-south, of 1 to 2 metres thick and 1,500 metres long.  Only a 200 metre long segment has been subject to systematic exploitation.

The western part of the deposit contains the Johan de Deo, Filip, Goldschram, and Priečna veins.  The Anna vein structure occurs in the eastern part of the Chlm massif.  The gold-silver mineralisation is developed in the near-surface part of the veins, to approximately 50 metres depth.

The Company has completed a small rock chip sampling program, six out of 15 mullock-heap samples returned more than 1.0 g/t gold and averaged 2.60 g/t gold and 158.0 g/t silver. Samples from the Anna vein structure returned an average of 1.40 g/t gold and 77.0 g/t of silver.

Visible gold from NBDD0002.

Visible gold from NBDD0002.

Summary

In summary, Nova Bana has been subject to very limited modern exploration and has never been systematically drilled.  The Company’s drilling to date at Nova Bana has defined the location of the main feeder as interpreted in 3D modelling to be below the optimum level for gold deposition.  The precious metal target remains open and untested for the main feeders with positive gold and silver assay results from sub-parallel splay veins which have resulted in historic surface workings over 100 metres wide.