Yukon: White Gold

Sulphur Property

Sulphur Property (11,344 hectares) straddles Sulphur Creek where there are currently at least four active placer mining operations. The 2012 exploration project was operated from Taku's Dominion Camp located approximately 10km from the property by truck. The Sulphur Creek road provides good access to the property.

Taku completed a high-definition, airborne magnetic and radiometric geophysical survey on the property in 2010.

In 2011, reconnaissance ridge and spur soil sampling identified seven geochemically anomalous zones that were subsequently grid sampled at 50m sample intervals on lines spaced 100m apart. This sampling identified five of the seven areas as prospective for gold mineralization. Further detailed soil sampling was done over these five areas to provide coverage at 50m sample intervals on lines spaced 500m apart. In total, 6,408 samples were collected in 2011 including reconnaissance and grid samples. The five prospective gold-in-soil zones are summarized in the following table.

Zone	UTM mE*	UTM mN*	Max Au ppb	Length m	Trend	Metal Assoc.	Trenches
Lions	611,200	7,065,700	239	1,000	NW linear	As, Ag very strong	1,2
Esks	611,300	7,060,300	123	500	NW linear	As, Ag weak
Riders	601,100	7,068,800	576	1,400	E oval	Cu. Zn offset N	3,4
Blues	605,000	7,069,000	206	900	NW linear	As, Ag weak	5
Stamps	606,000	7,064,000	234	Cluster	None	As, Ag, Sb broad
*WGS 84 Zone 7N

Mechanical trenching was done at three of the five zones. The trenching did not reach solid bedrock due to a thick layer of overburden and deeply weathered bedrock. The source rock of the gold geochemical anomalies is still uncertain. Although quartz float is prevalent in the areas, no quartz veins have been identified in place. Moreover, very few of the float quartz samples collected in 2011 returned anomalous gold results. Soil samples were collected from the walls of the trenches at 5.0m intervals in an attempt to identify potential gold-bearing zones.

Most of the drilling in 2012 focused on the Lions area which is located in the northeast corner of the property. The area shows two linear, roughly parallel, northwest trending anomalies. The first extends almost 1km and is up to 400m wide and is the stronger of the two. The second anomaly lies 400m north of the first and is over 600m long and up to 120m wide. The most striking feature about the Lions area is that the gold trends are coincident with very strong combined arsenic and silver anomalies.

Two trenches were done on the first gold trend. The first trench is approximately 95m in length. Four float rock samples returned negligible gold results. A 20m long section returned strong gold-in-soil values ranging from 132 to 201ppb Au. The second trench lies 200m northeast of the first and is approximately 145m long. One of the two samples of quartz float taken from the trench returned 108ppb. A 50m long section at the west end of the trench returned gold-in-soil values ranging from 114 to 633ppb Au. A 35m long section at the east end of the trench returned gold-in-soil values ranging from 113 to 234ppb Au.

Limited drilling was also planned for the Stamps area which showed an oval-shaped gold-in-soil anomaly approximately 1,400m long with a maximum value of 576ppb Au. Two trenches were dug at the eastern end of this gold trend. In the first 130m long trench, a 25m long section returned values ranging from 104 to 338ppb Au. Six float rock samples taken from this trench returned negligible gold values. In the second 100m long trench, located roughly 300m east of the first, a 25m long section returned four anomalous values ranging from 154 to 386ppb Au out of the six samples taken. Eight float rock samples taken from this trench returned negligible gold results.

Finally, limited drilling was also planned for the Blues area where the soil geochemical sampling defined a northwest-trending, 900m long, linear gold-in-soil anomaly with gold values up to 206ppb. A 45m long trench was done at the far northwestern corner of the anomaly. Six out of the 10 samples collected in the trench returned anomalous values ranging from 70 to 270ppb Au. Five float rock samples were taken from this trench. Two of the samples, consisting of rusty orange gneiss, returned strong values of 511 to 1,015ppb Au. These are the best rock sample results obtained by Taku on the Sulphur project to date.

In August 2012, Taku released results from a seven hole, 1,033 metre core drilling program completed Sulphur property.

Most of the drilling was done in the Lions area which is located in the northeast corner of the property. Four of the six holes drilled in this area encountered anomalous gold values with the best intersection found in hole SU12-01 where 0.31 grams per tonne Au (gpt Au) was intersected over 2.0m section from 50.0m.

Better gold values were encountered in the single hole drilled on the Blues area across the Sulphur Creek valley from Lions. Hole SU12-07 returned three gold intersections with up to 0.72gpt Au over 1.0m from 72.0m.

The following table summarizes all the gold-bearing intervals encountered by the drilling:

Hole	UTM mE*	UTM mN*	Azimuth	Dip	Depth m	Area	From m	Length m	Wt. Avg. gpt Au
SU12-01	611313	7065529	90°	-50°	148.0	Lions	50.0	2.0	0.31
SU12-02	611370	7065445	55°	-50°	148.0	Lions	50.0	5.0	0.12
SU12-03	611461	7065312	55°	-50°	129.0	Lions	-	-	-
SU12-04	611210	7065385	55°	-50°	152.0	Lions	75.0	2.0	0.14
SU12-05	611150	7065718	55°	-50°	155.0	Lions	-	-	-
SU12-06	611030	7065957	55°	-50°	149.0	Lions	56.0	2.0	0.14
SU12-07	604564	7069568	45°	-50°	152.0	Blues	39.0	3.0	0.32
						Blues	50.0	6.0	0.19
						Blues	72.0	1.0	0.72
* UTM Zone WGS Zone 7N