Ann: Company Presentation, page-2

CZN GM summary 30 March 2017
Brett Smith (BS) was very open while being "grilled" by 2 retired geologists after the formal part of the meeting.  3 geos talking rocks and exploration may not be a fun topic for most here on HC.  Hope there is some things of use below....Treat with caution and call the company or ask on HC if....

BS is excited about  the potential for the LL project to be a company maker.  As such work at Mt Gilmore will be more low key but soil sampling (?geophysics) will get underway once the aftermath of Cyclone Debbie has dried out.  This will probably lead to a drill programme later in the year.

Corporate.
Funding - More money will be needed sooner rather than later if drilling encouragement continues at the FLC project.  Various means of raising funds will be considered including a rights issue as SPP’s can apparently only be done once in a 12 month period (comment at meeting).

Operations FLC
The last hole of Phase 2 drilling - Hole 13 - will be drilled soon as the DHEM is done on Hole 12.

Assays - Logistical issues combined with slow lab turnaround are delaying results.  Didn’t ask and doubt that BS could say when all assays will be to hand for Phase 1 drilling.
Some have been received but not collated fully as they are too incomplete for an announcement at this stage from what I gathered.  This is not what I wanted to hear but the company is doing what it can to process core and get it to the lab quickly.
Lab turnaround is slow, in part, because the uptick in exploration in Canada (as in Oz.)  caught them short staffed etc and the ramp up to higher efficiencies is in progress.

Drilling - Phase 3 drilling will begin after permits are approved for work on the extensions of the Matrix trend as outlined in the recent presentation and geophysical announcement.  

Access issues are not going to be a major problem as the drilling will be helicopter supported.  Winter ice pads have been used so far and wooden platforms can be constructed to support spring/summer operations.  BS said it only takes some 40 minutes to move the rig from one site to the next when everything goes well.

Environmental impact is apparently minimal.

Geophysics - only touched on lightly.  
DHEM on hole 3 was abandoned for technical reasons.

Interpretation of the geophysical work current and past has lead to new insights into the FLC.  

The Motriuk ultramafic is now seen as a separate and probably low level mineralised body to the west.

The FLC appears to have a feeder from a deeper magmatic source defined by gravity and IP surveys.
The nature and depth of this NE-SW oriented feeder is poorly defined.   BS commented about coincident magnetic and gravity anomalies within it and the nature of such zones to thermally erode lithologies it intrudes.  
Also within it there may be both a vertical and horizontal component of any possible mineralization.  The vertical zones may be more to the SW end where the 'feeder'/matrix trend intersects the gravity high.  

Sulphide separation in conjunction with the feeder could provide higher grade massive sulphide targets particularly in the "neck" of the feeder.  

Basically geo poetry at this stage but some very exciting targets emerging away from the 'smoke' reported so far.
Geology Mineralisation
Not much of substance to say here.  

The way visuals have been received by the market was discussed and future announcements should be more measured....or some appropriate word.

Hole 13 is being drilled in a different orientation to see if sulphide zones hit to date can be better defined.  

The consistent  level of disseminated sulphides throughout the intersections within the Matrix Trend does seem to be anomalous (BS) and initial assays may indicate the background for Ni/Cu even at low sulphide levels may be high (up to 0.5%?).  My words from subtle clues so treat with care.  Extrapolating this to zones with 5+% sulphides suggests grades may increase locally.

The rafts of country rock caught up in the FLC may offer targets in their own right as well as being sources for sulphur for Ni/Cu in the interaction zones with the FLC or as magmatic segregations.  

BS said these rafts tend to be outcrop above the swamps and have attracted a lot of the previous exploration.   He said a lot of this historical work was based on magnetics (I suspect some early EM techniques as well) which implies the more recent surveys can open up new opportunities especially at depth.

Miscellaneous comments about Lynn Lake

In addition to the UG potential at the A and EL plugs there is also OP potential in these areas.  This would be subject to metal prices but BS considered it to be very real possibility when the Victory deal was enacted.

Apparently CZN has acquired some more land in the area - the pod of intrusive (brownish on image) some 5 Kms west of the A plug.


VMS base metals could be targeted but are low priority at the moment.

Weather impacting in Canada as well as Mt Gilmore.  Some heavy duty blizzards at LL - par for the course there and probably just a matter of clearing the roads of snow drifts.  

From an exploration geo's perspective FLC is a very exciting project.  Hopefully it will turn into a great investment.

GLTAH