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.

2021 Drill Program Results

The 6-hole, 1,995 metre, 2020 drill program was completed in November, 2020, and results were released in two parts, on January 27, 2021, and on February 10, 2021. All five holes drilled in the Central Area at Fondaway Canyon returned gold intercepts, which included both new high grade gold zones, and broad mineralization.

"It’s not very often that every hole of an exploration drill program returns gold intersections as good as or better than anticipated.” stated Mike Sieb, President, Getchell Gold Corp. “Our 2020 drill program substantially expanded the known mineralization and demonstrated our broadest gold zones remain open with excellent potential for further extension.”

New North Fork Zone and Half Moon Shear Vein Drill Results

Drill hole FCG20-04 was collared north of where the Half Moon Vein is exposed on surface and drilled to the southwest. FCG20-04 was designed to (i) pierce the Half Moon vein to characterize the mineralization; and (ii) extend the gold mineralization intersected in hole FC17-04, drilled in 2017 by a previous operator, down-dip to the southwest.

Hole FCG20-04 encountered the high-grade Half Moon Shear Vein 108.1m down hole and 54m vertically below surface. In addition, two notable gold intercepts were encountered further down the hole that are interpreted to be splays of the main Half Moon Gold Shear Vein. The three Half Moon Shear Vein related gold intercepts are highlighted below.

  • 8.6 g/t Au over 9.8 metres (main Half Moon Shear Vein);
  • 2.7 g/t Au over 20.5 m; and
  • 6.3 g/t Au over 3.3 m.

In addition, hole FCG20-04 encountered a broad 144 metre intercept of gold mineralization, newly identified as the North Fork Gold Zone, extending to the bottom of the hole with the final sample of hole FCG20-04 returning 7.9 g/t Au over 1.0 m indicating the lower extent of the North Fork Gold Zone was not reached. Within the North Fork broad zone of mineralization, the following notable gold intercepts are highlighted:

  • 2.5 g/t Au over 58.0 metres including 3.5 g/t Au over 36.1 m;
  • 2.8 g/t Au over 13.4 m; and
  • the last sample grades 7.9 g/t Au over 1.0 m.

Colorado SW Extension Drill Results

Drill holes FCG20-02 and 03 were both collared from the historic Colorado Pit and successfully extended the known gold mineralization towards the southwest .

Hole FCG20-02, drilled to the southwest along a plane connecting the Colorado Pit to Pack Rat zone, encountered a wide mineralized structural zone between a drill depth of 150 and 300 metres. The mineralization was encountered where predicted by the geological model and down-dip from the Colorado Zone. Within the breadth of the mineralization encountered, two gold zones are highlighted.

  • 1.9 g/t Au over 43.5 metres including 4.2 g/t Au over 14.9 m; and
  • 1.1 g/t Au over 12.3 m.

Hole FCG20-03, drilled to the south as a step out from FCG20-02, encountered the mineralized structural zone between 150 and 290 metres downhole, approximately 120 metres ESE of the FCG20-02 main structural zone intercepts. The primary gold intercepts are highlighted:

  • 4.3 g/t Au over 21.1 metres including 8.7 g/t Au over 9.4 metres and including 14.6 g/t Au over 3.4 m; and
  • 2.0 g/t Au over 49.0 m (188.3 to 237.3m).

The broad Colorado structural zone that hosts the gold mineralization encountered in FCG20-02 and FCG20-03 has a true thickness of approximately 100 metres, dips shallowly to the SW and is comprised of strongly sheared, brecciated and bleached sedimentary rocks.

Hole FCG20-02 intersected a significant new structural zone of high-grade gold mineralization higher up in the hole than expected. Of 17 consecutive samples extending 21.9 metres down hole, only one sample assayed less than 1 g/t Au with the highest sample grading 25.5 g/t Au (1.7m sample). The mineralized interval graded 6.2 g/t Au over 21.9 metres including 9.6 g/t Au over 12.0 metres and including 20.4 g/t Au over 3.2 metres.

Drill holes FCG20-05 and 06, were collared on the same pad near the canyon floor and drilled to the northeast along a plane connecting the Colorado Pit to Pack Rat zone and on plane with hole FCG20-02. Holes FCG20-05 and 06 were designed test the down-dip extension of the mineralization observed at surface at the historic Colorado Pit and the mineralization encountered in holes FGC20-02 and 03.

Both holes, FCG20-05 and 06, encountered broad 100-metre-thick zones of gold mineralization within the Colorado SW Extension Gold Target Zone. FCG20-05 encountered the Colorado SW Extension Gold Zone between 175 and 270 metres down hole while FCG20-06 encountered the zone between 165 and 285 metres downhole. The following notable gold intercepts are highlighted:


  • 1.8 g/t Au over 90.0 metres including 3.0 g/t Au over 45.3 m and including 4.4 g/t Au over 11.1 m
  • 6.3 g/t Au over 3.3 m; and
  • 0.6 g/t Au over 28.0 m.


  • 1.5 g/t Au over 37.7 m including 2.1 g/t Au over 19.2 m; and
  • 1.1 g/t Au over 38.3 m including 2.5 g/t Au over 10.6 m.

The strongly mineralized interval encountered in FCG20-05 represents a 150-200m step out to the southwest from the mineralization intersected in hole FC20-02 and is open laterally and down-dip.

drill results chart

Hole FCG20-01 drilled 2.3km to the west at the Pediment Target Area was lost within a fault zone prior to reaching the target depth. The last series of samples at the bottom of the hole showed an increase in gold values potentially indicative of the approaching targeted gold zone. As the technical team assesses the overall drill results and formulates an exploration plan for 2021, management expects to include the Pediment Zone as a 2021 exploration target.

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 these Fondaway Canyon drill results.

*Gold Intervals reported in these results are drill indicated core lengths, as insufficient drilling has been undertaken to determine true widths at this time. Average grades are calculated with un-capped gold assays, as insufficient drilling has been completed to determine if capping levels for higher grade gold intercepts are required.

The 2020 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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