Summary

The history of the Clone Gold property is as follows:  High-grade gold-bearing shear zones were discovered by Silver Grail-Teuton prospectors in 1995 at the head of Sutton Glacier, triggering a staking rush in the immediate area and ultimately leading to a cash infusion of $2.6 million into joint owners Silver Grail and Teuton by Prime Resources-Homestake Canada, two companies which owned the rich Eskay Creek mine.

Drilling programs carried out from 1995-97 defined several high-grade gold shoots within the Main Zone, situated at the southeastern end of a 3km long package of volcanic and sedimentary rocks. Due to low gold prices, little work was done on the Clone between 1999 and 2003. However, in 2003, Lateegra Resources Corp. optioned the property and carried out further drilling, primarily in the Main Zone, confirming and expanding the results of the 1995-7 work. After Lateegra relinquished its option, in November, 2005, on the strength of rising gold prices the Clone property was again optioned out, this time to Canasia Industries Corp.  Canasia carried out an Aeroquest helicopter-borne survey which identified several new targets on the property.  In the following and subsequent years  Canasia, which later changed its name to Makena Resources,  drilled many holes into the property (principally in the area of the Main Zone) with results which confirmed and extended previous work.  Makena ultimately earned a 50% interest in the property.

In 2017, Teuton, Silver Grail and Makena optioned the Clone property to Sunvest Ventures (now called Sky Gold Corp. (“SKYG”).  Sky Gold agreed to issue 5,000,000 shares and pay $200,000 cash to Teuton/Silver Grail, collectively, over a two year period.  Work commitments totaling $1.95 million are also to be carried out over three years.  Teuton/Silver Grail, collectively, will share a 2% NSR, one-half of which can be repurchased for $1.5 million.  Should Sky Gold default on the option agreement, Teuton/Silver Grail will receive their interest in the property back and also have an option to purchase Makena’s 50% original interest for $100,000.

Location

The Clone property is situated 20 kilometres southeast of Stewart, British Columbia. The Red Mountain gold project of Seabridge Gold (now in pre-feasibility) is located about 16 km to the north.

Mineralization

 Main Zone

High-grade gold and gold-cobalt mineralization occurs on the Clone property within a series of sub-parallel shears exposed over a strike length of 500m and a vertical range of 130m. Trenching of the shears returned values ranging up to 3.59 oz/ton gold over 5.5m (18 feet). Significant cobalt values were found to accompany gold in the southeast portion of the zone.

Drilling in 1995-96 was confined to the 500m long Main Zone at the south end of the mineralized system, overlapping the original discovery area. The most promising structure outlined by the drilling was the “H-1” which yielded many holes carrying high-grade gold mineralization over significant widths. The best of these was Hole #110 which contained a 32.9 foot intercept grading 1.28 oz/ton gold. Some outstanding intersections were also reported from the parallel S-2A structure, known from trenching to host both gold and cobalt mineralization. Hole #18 into the S-2A contained a 19.7 foot intercept grading 1.53 oz/ton gold and 0.33% cobalt.

A structural study of the Main zone area was carried out in 1998. This work indicated that the previous drilling had proceeded under an incorrect understanding of the structural controls for the gold-bearing shoots within the Main zone shears.

The 2006 drill program was designed to shed further light on the attitude of the gold-bearing “H” (hematite) and “S” (sulfide) structures/horizons identified within the 1,600 foot long Main Zone by trenching and drilling in 1996-8 and 2003.

A major part of the 2009 and 2010 drilling on the Clone property concentrated on the high-grade area in the middle of the H-1 zone. These holes were collared at closely-spaced intervals and were drilled at shallow dip angles in order to guide the upcoming bulk sampling program.

In 2010 a bulk sampling program was commenced on the Clone property in the high-grade portion of the H-1 zone. A total of 34 samples taken from the one-ton lots comprising the 2010 Clone bulk sample returned an average grade of 68.65 g/t gold.   A larger bulk sample of 102 tons was taken in 2011 which averaged 137.1 g/t gold (4.0 oz/ton gold).

Location Map