Feasibility Study and Technical Report - Pretivm

1.2 PROPERTY DESCRIPTION AND LOCATIONThe Property is situated approximately at 56°28′20″N Latitude by 130°11′31″WLongitude, a position approximately 950 km northwest of Vancouver, 65 km northnorthwestof Stewart, and 21 km south-southeast of the Eskay Creek Mine in theProvince of BC. The Property consists of six mineral claims totalling 3,199.28 ha in areaand all claims are in good standing until January 31, 2024.The Property and the surrounding region have a history rich in exploration for preciousand base metals dating back to the late 1800s. More recently in 2009 Silver StandardResources Inc. (Silver Standard) began work on the Property. The 2009 programincluded drilling, rock-chip and channel sampling, and re-sampling of historical drill core.In 2010, pursuant to a purchase and sale agreement between Silver Standard ResourcesInc. (Silver Standard), (as the seller) and Pretivm (as the buyer), Silver Standard sold toPretivm all of the issued shares of 0890693 BC Ltd., the owner of the Project and theadjacent Snowfield Project.1.3 GEOLOGY AND MINERALIZATIONThe Property is largely underlain by volcano-sedimentary rocks of the Lower JurassicHazelton Group. These rocks unconformably overlie volcanic arc sedimentary rocks ofthe Upper Triassic Stuhini Group along the westernmost part of the Property. HazeltonGroup rocks on the Property include hornblende and/or feldspar-phyric volcanic (latite)flows, and pyroclastic fragmental rocks, locally derived heterolithic volcanic pebble toboulder conglomerate, volcanic sandstone, siltstone and mudstone.The Hazelton Group volcano-sedimentary rocks are interpreted as having been depositedin an extensional structural regime, proximal to a basin margin growth fault (or series ofgrowth faults), owing to the presence of complicated lateral facies variations within thevolcanic pile and the diachronous and immature nature of the rock units. The Brucejackfault, which forms a distinct topographical feature across the Property, is currentlyinterpreted as being the reactivated expression of one of these basin margin structures.Alteration on the Property is characterized by variable, but generally intensely quartzsericite-pyritealtered rocks that define a distinctive and continuous north-south arcuate(west-concave) band of gossanous rocks that is up to several hundreds of metres wide,and approximately 5 km in strike (north-south) extent. Quartz-sericite-pyrite alteration isbroadly spatially associated with the Brucejack Fault and the unconformity between theStuhini and Hazelton Group rocks, which suggests that these structures (the palaeogrowthfault zone in the case of the Brucejack Fault) may have acted as important fluidconduits during hydrothermal alteration and mineralization.Gold (± silver) mineralization is hosted in predominantly sub-vertical vein stockwork andsubordinate vein breccia systems of variable intensity, throughout the alteration band.The stockwork systems are relatively continuous along strike (several tens of metres toseveral hundreds of metres) and are characterized by the presence of millimetre- todecimetre-scale transitional meso- to epithermal veins of quartz-adularia, quartz-Pretium Resources Inc. 1-2 1291990200-REP-R0012-02Feasibility Study and Technical Report on the BrucejackProject, Stewart, BC