Jean Marie Property

The Jean Marie property is a copper-gold-silver-molybdenum porphyry prospect located 50 km south of Serengeti Resources Kwanika Copper-Gold deposit and 50 km west of Centerra Gold's Mt. Milligan Copper-Gold Mine in central BC. The property covers 7,352 hectares and has multiple mineralized zones which are open for expansion with drilling.

Historical work conducted on the Jean Marie Project includes over 10,000 metres of drilling and dozens of ground-based geophysical and geochemical surveys, with the majority of exploration being completed by Cominco Ltd. between 1970 and 1974. Historical exploration activities were focused on drilling in three copper porphyry zones: the A, B and C Zones (see below). Each of the three mineralized zones straddle the Jean Marie fault, a significant controlling structure that has been mapped for over 12 km on the Project (see below).

During 2020, a total of 15 RC drill holes totaling 1,692 metres were completed at the A Zone. This drilling tested various magnetic signatures along a corridor where the dominant northwest-trending magnetic fabric is disrupted by an east-west trending zone of magnetic variability and disruption. In addition, an airborne magnetic survey and rock sampling programs were completed at Jean Marie, where PEMC was successful in confirming the potential for gold-enriched copper mineralization. Highlights of the rock sample assays included 8.79 g/t gold, 86.6 g/t silver and 1.74% copper at the newly identified Leap Target Area. Assay results from RC drilling at the Company's flagship Jean Marie property are anticipated early 2021.

Prior to the commencement of the 2020 RC drill program, prospecting, review of historical drill core and rock sampling were conducted across the property. A total of 38 rock samples were collected, with a focus on expanding the footprint of known mineralization and demonstrating the potential for gold-enriched copper mineralization across the property. A summary of all rock samples collected at Jean Maire during the 2020 exploration season is presented in below.

A high-resolution airborne magnetic survey was conducted by Peter E. Walcott & Associates Ltd. covering the majority of the property, including the known areas of drill defined copper mineralization at the A, B and C Zones. The survey was flown along 100 metre spaced lines and 1,000 metre spaced tie lines. The survey expanded upon the existing historical ground magnetic survey completed in 1973 and provides a much greater level of detail at the known areas of copper mineralization. The survey also highlighted additional target areas in the southern portion of the property where historical soil geochemical sampling identified copper-molybdenum in-soil anomalies.

All of the geophysical and geochemical data collected during 2020 will be incorporated into the existing dataset and will be used to develop targets for follow-up field programs and drill testing in 2021. PEMC has now met its first-year expenditure commitments and have a property wide exploration permit through 2021.

Rock samples collected from the A Zone (Applecot showing) returned up to 0.442 g/t gold with 1.3% copper and 15 g/t silver. At the newly identified Leap Target area, 800 metres to the south of the B Zone, rock sampling returned up to 8.79 g/t gold, 86.7 g/t silver and 1.74% copper. Approximately 400 metres south of the C Zone, additional gold mineralization was encountered when continuous chip sampling of a hand trench (Trench 1) yielded 4.0 g/t gold over 8 metres with the entire 20-metre length of the trench averaging 1.7 g/t gold. A second hand trench (Trench 2) was sampled approximately 250 east of Trench 1 where continuous chip sampling yielded 4 metres grading 1.37% copper, 0.08 g/t gold and 67.4 g/t silver. At this time, the trend and true width of mineralization at both hand trenches is unknown.

The Jean Marie property is characterized by a northwest trending magnetic signature that traverses the property from south-east to north-west. Results from the airborne magnetic survey highlight several areas where this dominant northwest trending magnetic signature is interrupted by east-west and north-east striking zones of magnetic disruption.

At the A Zone, where 2020 RC drilling was focused, the airborne magnetic survey shows an east-west zone of magnetic disruption that is interpreted to represent a structural discontinuity, favourable to host porphyry intrusions. In the southern portion of the property, a more heterogeneous magnetic signature is observed. Rock sampling in this area by PEMC during 2020 returned up to 0.218% copper and 176 ppm molybdenum.

Table 1. Continuous chip sampling results from hand trench south of C zone (start of trench at 377,703 E / 6,106,027 N, end of trench at 377,721 E / 6,106,031 N, UTM NAD 83 zone 10).

Historically, the A and C zones did not see systematic analyses for gold. Entire hole composites from 1974 percussion holes were assayed for gold with a high detection limit and, as such, gold was not detected. The recent collected rock samples show that there is, in fact, a significant precious metal component associated with copper mineralization, at least in part, at the A and C zones.

Table 2. Rock sampling results from A and C zones (UTM NAD 83 zone 10).

Table 3. Summary of all rock sampling results during 2020.

The A and C Zones have seen limited historical drilling, with the deepest drilling in both zones being 92 vertical metres. Mineralization in these zones exists as chalcopyrite dominated by pyrite, with rare covellite and bornite. In select surface samples at both the A and C zones, anomalous gold has been seen to be associated with chalcopyrite mineralization and monzonite dikes, though the historical drill core was not systematically assayed for gold. Historical exploration encountered angular float on the southwest margin of the A zone assaying up to 4.43% copper and 0.95 g/t gold.

The B Zone has seen more extensive drilling, with the deepest historical drilling being a 277 m vertical drill hole, J97-11. A high-grade interval in this hole occurs between 181 and 208 metres, where a hydrothermal breccia containing angular clasts of porphyritic material with bornite and chalcopyrite graded 1.2% copper over 27 metres. The presence of this breccia provides direct evidence of a mineralized porphyry system at depth beneath the B-zone.

The C Zone is characterized as a broad area of low-grade copper-molybdenum mineralization, with the easternmost hole in the zone grading 0.17% copper over the entire 85.3 metre length of bedrock drilled. However, the presence of a large, strong copper-in-soil anomaly measuring 2,500 x 600 metres, immediately north and east of the C zone, with soil samples assaying up to 0.66% copper suggests more appreciable copper mineralization may exist at depth. The presence of widespread, locally intense clay alteration further suggests there may be potential for higher copper grades at depth.