Aspen Grove Project

Projects

• Project Overview
• Pinaya Project
• Aspen Grove Project
• Coppermine Project
• Tanzilla Project

Highlights

• 11,237 hectares in an extensive belt of porphyry copper-gold deposits.


• Historic drilling between 1962 and 1965 intersected significant copper, silver and gold mineralization in multiple drill holes over the Par prospect.


• Geologic mapping historical drill logs suggest that the mineralized zone represents the upper level of a porphyry system which is open in all directions.


• Excellent infrastructure.

Location and ownership

The Aspen Grove project is located in southern British Columbia, near the town of Merritt, and comprises 29 claims (11,237 hectares). The project covers part of an extensive belt of porphyry copper mineralization hosted by Early Triassic Nicola Group volcanic rocks and Late Triassic to Early Jurassic intrusions.
Title to the Aspen Grove property is held by KZD Aspen Grove Holding Ltd., a subsidiary owned 100% by Kaizen Discovery. Three claims (1,375 hectares) are subject to a 2% net smelter return; 1% of which can be purchased at any time for $3.0 million.

Geology and mineralization

The Aspen Grove project encompasses a number of historical copper prospects which can be grouped into five target areas, known as: Zig-Nor, Thalia, Boss-Thor, Par, and Ketchan Lake. Of these five target areas, only the Par and Ketchan Lake areas have received significant drill testing.

The Par prospect is located on the east side of the Allison Lake intrusive stock which is approximately the same age as the intrusions which host the Highland Valley and Afton mines. Intense silicification, brecciation and advanced argillic (silica-pyrite-clay) alteration have been mapped over a strike length of 3 kilometres at Par. Alteration is associated with multiple phases of quartz and feldspar porphyry intrusions.

Drilling of the Par prospect by Tormont Mines Ltd. between 1962 and 1965 intersected significant mineralization in multiple drill holes over a 250 by 250-metre area. Comparison of logs and core assays suggests that many mineralized intervals were never assayed. The longest continuously assayed interval recorded an intersection of 0.86% Cu and 44 g/t Ag over 20.42 metres (110.03-130.45 metres) in drill hole H-27.

Drill hole H-29, collared about 65 metres northwest of H-27, included three continuously assayed sections within a 56-metre interval: 0.73% Cu and 31 g/t Ag over 10.67 metres (23.16-33.83 metres), 0.41% Cu and 26 g/t Ag over 15.24 metres (38.1-53.34 metres) and 0.32% Cu and 9 g/t Ag over 9.15 metres (70.1-79.25 metres). Three gold assays of 0.03 ounces per ton (1 g/t) over 1.52 metres each are recorded in this hole. Mineralization occurs as disseminations and veins, comprising pyrite, chalcopyrite, bornite, magnetite and hematite.

The Ketchan Lake prospect is accessible from the Highway 5A via the Dillard and Ketchan Lake roads. East of the lake the zone has been tested by 30 diamond drill holes (3,612.6 metres) and 25 percussion drill holes (1,974 metres).

Mineralization has been traced in outcrop and drill holes over a strike length of 1,560 metres, widths of up to 300 metres and depths of up to 236 metres. The zone is open to the northwest and southeast.

The Ketchan Lake prospect is hosted by a multiphase diorite to monzodiorite intrusion which has undergone widespread brecciation and extensive magnetite, epidote and K-feldspar alteration. The Ketchan Lake diorite is coextensive with a 1 by 15 km long magnetic high, only a small portion of which has been drill tested. Mineralization consists mainly of chalcopyrite, which is closely associated with magnetite veins and breccia matrix and variable amounts of epidote, K-feldspar, actinolite, chlorite, sericite and carbonate alteration. Although multi-element geochemical data are available for only seven drill holes, silver (up to 101 g/t) and molybdenum (up to 0.031%) are present in minor to locally significant amounts.

2016 drilling program

In 2016, Kaizen Discovery drilled eight holes totalling 4,009 metres at the Ketchan porphyry copper-gold prospect at the Aspen Grove Project.

Highlights from the 2016 program include:

• 62 metres grading 0.46% copper and 0.10 g/t gold (0.55% copper-equivalent) in drill hole K16-06 including 28 metres grading 0.90% copper and 0.17 g/t gold (1.05% copper-equivalent); and


• 8 metres grading 1.29% copper and 0.84 g/t gold (2.05% copper-equivalent) in drill hole K16-07, and 60 metres grading 0.36% copper and 0.15 g/t gold (0.50% copper-equivalent).

The 2016 drilling program was directed towards expanding known zones of mineralization and testing undrilled areas within the Ketchan Stock. All holes intersected potassic or calc-potassic alteration and all but one returned intervals of copper and gold mineralization. Mineralized intervals cited above represent apparent, not true widths, as true widths are not known.

Ketchan prospect description

The Ketchan alkalic porphyry copper-gold system is hosted by the Ketchan Intrusive Stock, a dioritic to monzonitic intrusion at least 1,800 metres by 500 metres in size. Drill holes completed by Kaizen in 2015 and 2016 have intersected low-grade copper (chalcopyrite and/or bornite) mineralization, often accompanied by gold, across the known length of the intrusion. Throughout the Ketchan porphyry system, moderate-to-strong magnetic anomalies and weak-to-moderate chargeability anomalies are associated with the strongest mineralization.

Drill holes K16-01, K16-02 and K16-05A were designed to expand the mineralized system in the northeastern lobe of the Ketchan Stock. K16-01 intersected 170 metres of hydrothermal breccia with several low-grade mineralized intervals. K16-05A intersected an interval of 8 metres of 0.68% copper and 0.45 g/t gold within a wider interval of 36 metres of 0.43% copper and 0.21 g/t gold.

Drill holes K16-03 and K16-04 tested the northwestern margin of the exposed Ketchan porphyry system, where 2015 drill hole K15-10 intersected 26 metres of 1.05% copper before being abandoned in a fault zone (see Kaizen press release, November 3, 2015). Drill hole K16-03 was successful in locating narrow mineralization of similar character, intersecting two metres of 0.94% copper and 1.75 g/t gold from 338 to 340 metres. These high-grade mineralized occurrences are separated by more than 150 metres and are hosted by a unique monzogabbro phase of the Ketchan Stock.

Drill holes K16-06 and K16-08 were designed to follow up on high-grade surface samples and on mineralization in hole K15-01, which intersected 266 metres of mineralization from surface including 78 metres grading 0.50% copper and 0.15 g/t gold (see Kaizen press release, July 20, 2015). K16-06 intersected similar mineralization to that in K15-01 and included the 28-metre, higher-grade interval reported above. K16-08 was drilled to confirm the continuity of higher-grade mineralization but failed to encounter the zone.

Drill hole K16-07 targeted a weak-to-moderate chargeability anomaly with a moderate magnetic response. The hole intersected a shallow high-grade interval of 8 metres of 1.29% copper and 0.84 g/t gold from 121 metres depth, and a deeper broader interval of 60 metres of 0.36% copper and 0.15 g/t gold from 278 metres depth.

Table 1: Drill hole intercepts from 2016 Aspen Grove exploration drilling program

DDH	From (m)	To (m)	Width* (m)	Copper (%)	Gold (g/t)	Copper Eq** (%)
K16-01	23	37	14	0.44	0.18	0.61
K16-01	257	293	36	0.32	0.24	0.53
K16-01	315	337	22	0.34	0.05	0.38
incl.	331	337	6	1.04	0.09	1.11
K16-02	None significant
K16-03	334	348	14	0.24	0.34	0.55
incl.	338	340	2	0.94	1.75	2.53
K16-03	406	478	72	0.11	0.42	0.48
K16-04	5	53	48	0.11	0.14	0.24
K16-05A	299	335	36	0.43	0.21	0.62
incl.	299	307	8	0.68	0.45	1.08
K16-06	347	409	62	0.46	0.10	0.55
incl.	367	395	28	0.90	0.17	1.05
K16-07	121	129	8	1.29	0.84	2.05
K16-07	278	338	60	0.36	0.15	0.50
K16-08	9	37	28	0.34	0.09	0.42
K16-08	151	167	16	0.35	0.13	0.47

* Width refers to drill-hole intercept. True widths have not been determined.
** Copper equivalent is used to express the combined value of copper and gold as a percentage of copper, for illustrative purposes. No allowances have been made for recovery losses that would occur in a mining scenario. Calculated on the basis of $2.15 per pound of copper and $1,330 per troy ounce of gold, using the formula copper eq = [(%copper)(22.0462)($lbcopper)+(gptgold)(1/31.1035)($ozgold)]/[(22.0462)($lbcopper)]

Table 2 Collar details of drill holes from 2016 program

DDH	Azimuth	Dip	Easting	Northing	Total Depth (m)
K16-01	090	‐60	676151	5517180	459.33
K16-02	250	‐60	676430	5517073	380.09
K16-03	300	‐60	676201	5517409	511.15
K16-04	260	‐60	676101	5517586	459.33
K16-05	305	-60	676704	5516701	57.00
K16-05A	295	-65	676708	5516695	715.37
K16-06	310	-60	676257	5516893	544.68
K16-07	310	-60	676344	5516775	386.18
K16-08	310	-50	676267	5516909	495.91

Coordinates: UTM NAD83 zone 10N

2015 drilling program

In Q3'15, exploration at the Ketchan prospect on the Aspen Grove project continued to target the 300-to-500 by 1,800-metre long, north-northwest trending, copper-gold mineralized porphyry system, as defined by geophysical surveys, geological mapping, rock sampling and historic drilling.

During September 2015, Kaizen completed an induced polarization survey over a southern extension to the Ketchan area, known as Ketchan South. The survey consisted of 21.4 line kilometres of survey, covering approximately six square kilometres.

Diamond drilling for the 2015 program at Aspen Grove totalled 6,483 metres in 14 holes, including one hole drilled at the Par prospect and 13 drilled at the Ketchan prospect.

Holes K15-10 (10a, 10b), 11, and 12 were drilled in the northwest portion of the porphyry system. Copper-gold mineralization is associated with a strong magnetic anomaly and weak chargeability. Chalcopyrite-bornite mineralization is hosted in diorite porphyry to microbreccia, in disseminations and hosted in epidote-calcite veins. Minor chalcopyrite and pyrite is hosted in magnetite/hematite-K feldspar (potassic) veins. Gold grades are higher in this part of the porphyry system.

Holes K15-01, 02 (02a, 02b), 03, 04, 05, and 13 were drilled in the central area of the Ketchan porphyry system. The best grades of copper and gold are generally associated with the margins of magnetic highs with associated moderate chargeability. Chalcopyrite and pyrite mineralization (disseminated, clots, and stringers) is associated with a variety of diorite and diorite breccia phases, in disseminations and in magnetite/hematite-K feldspar (potassic) and epidote-calcite-magnetite (calc-potassic) veins. Late gypsum veins were intersected deeper in the porphyry system.

The southeast portion of the porphyry system was targeted by holes K15-06, 07, 08, and 09. Chalcopyrite mineralization occurs in disseminations and veins, associated with magnetite-pyrite-actinolite-K feldspar veins and later calcite-epidote veins. As in the central area, the best grades of copper and gold are generally associated with the margins of magnetic highs with associated moderate chargeability. Hole K15-07, while having no significant intercepts of gold or copper, intersected potassic alteration confirming the large size of the hydrothermal system and continuity of favourable dioritic host rocks.

Drill Hole	From (metres)	To (metres)	Drilled metres	Copper (%)	Gold (g/t)
K15-01	4.5	270	265.5	0.27	0.11
Incl.	30	58	28	0.31	0.17
And	192	270	78	0.50	0.15
And	248	262	14	1.03	0.13
K15-02b	4.65	391	386.35	0.14	0.10
Incl.	57	129	72	0.34	0.06
And	275	351	76	0.14	0.27
K15-03	5.3	341	335.7	0.15	0.15
incl.	269	341	72	0.31	0.20
incl.	325	341	16	0.55	0.40
K15-04	64	342	278	0.16	0.10
incl.	260	312	52	0.32	0.18
incl.	262	272	10	0.85	0.37
K15-05	19	413	394	0.14	0.06
incl.	203	259	56	0.31	0.08
K15-06	32	366	334	0.14	0.06
incl.	32	142	110	0.20	0.09
and	348	362	14	0.52	0.13
K15-07	none significant
K15-08	13	345	332	0.15	0.09
incl.	15	75	60	0.27	0.15
incl.	53	75	22	0.42	0.30
K15-09	30	76	46	0.16	0.04
incl.	42	60	18	0.25	0.05
K15-10	18	126	108	0.28	0.04
incl.	100	126	26	1.05	0.05
incl.	102	110	8	2.59	0.13
K15-10a	76	82	6	0.69	0.02
K15-10a	108	116.45	8.45	0.21	0.09
K15-10b	74	86	12	0.22	0.01
K15-10b	108	148	40	0.25	0.02
incl.	126	134	8	0.41	0.01
K15-11	70	138	68	0.40	0.34
incl.	70	90	20	0.52	0.46
and	124	138	14	0.82	0.19
K15-12	376	398	22	0.12	0.43
K15-13	5.5	448	442.5	0.13	0.08
incl.	5.5	140	134.5	0.23	0.10
incl.	22	30	8	0.51	0.20

Disclosure of a technical or scientific nature on this webpage has been reviewed and approved by Nils Peterson, M.Sc., P.Geo, a geological consultant for Kaizen.

2014 drilling program

In October 2014, the Par prospect at the Aspen Grove Project was tested by four diamond drill holes totalling 2,012 metres over a strike length of 880 metres. All drill holes intersected broad intervals of intense silicification and phyllic (quartz-sericite-pyrite) to advanced argillic (pyrophyllite, dickite, diaspore, kaolinite) alteration in high-level quartz-feldspar porphyry intrusions and related submarine felsic volcanic and volcaniclastic rocks. In addition, drill hole AG14-02 intersected a well mineralized diorite porphyry intrusion underlying a mineralized breccia pipe.

Significant mineralized intervals are as follows (core lengths in metres; ppm = parts per million; g/t = grams per tonne):

Drill hole	From	To	Length (m)	Cu %	Zn %	Au (g/t)	Ag (g/t)	Mo (ppm)
AG14-01	191	370	179	0.077	0.173	0.048	1.8	7
AG14-01	191	219	28	0.110	0.503	0.027	2.7	12
AG14-01	210	219	9	0.241	0.790	0.041	6.4	18
AG14-01	269	291	22	0.213	0.422	0.027	2.6	<1
AG14-01	324	369	45	0.103	0.014	0.139	3.0	17
AG14-01	362	370	8	0.101	0.014	0.445	9.7	21
AG14-02	50	85	35	0.186	0.010	0.055	1.0	53
AG14-02	50	66	16	0.313	0.010	0.097	1.6	42

The southernmost drill hole, AG14-01, was collared about 100 metres west of Tormont Mines' historical drill hole H-27 (1964), which intersected 0.86% copper and 44 g/t silver over 20 metres (110 to 130 metres). The historical intersection correlates with the interval between 210 and 219 metres in hole AG14-01, where Cu-Zn-Pb-Ag mineralization (up to 0.98% Cu, 2.22% Zn, 0.26% Pb and 15 g/t Ag over one-metre sample lengths) is associated with semi-massive sulfide mineralization and intense sericite alteration. This zinc-enriched semi-massive sulfide zone is the uppermost of five semi-massive to massive sulfide intervals at 210-219, 326-328, 333-338, 341-349 and 362-369 metres. The four massive sulfide intervals between 326 and 369 metres are associated with brecciation, intense silicification and advanced argillic (pyrophyllite, dickite, diaspore) alteration. Bedding observed in at least one of the massive sulfide intervals suggests a syngenetic (volcanogenic massive sulfide) origin. These lower intervals are characterized by Cu-Au-Ag mineralization (up to 0.68% Cu, 0.95 g/t Au and 25 g/t Ag) with much lower zinc values; copper sulfides include bornite, covellite, enargite and possible chalcocite. In between the upper zinc-enriched and lower copper-gold enriched massive sulfide intervals is a broad zone of strongly phyllic altered quartz-feldspar porphyry with pyrite and copper- and zinc-sulfide and quartz-sulfide veins and stockworks.

Drill hole AG14-02 was collared 190 metres north of AG14-01 and tested the northern margin of a strong magnetic bulls-eye associated with mineralized polymictic intrusive clast breccias interpreted as a diatreme breccia pipe. The breccia, intersected between 25 and 49 metres, contains quartz-feldspar porphyry and microdiorite clasts and is strongly altered (potassic overprinted by sericite-chlorite and phyllic) and variably mineralized with chalcopyrite (42 to 1120 ppm Cu), molybdenite (4 to 72 ppm Mo), magnetite and hematite (after magnetite). Below the breccia (49-89 metres), a microdiorite porphyry intrusion contains abundant magnetite and hematite after magnetite veins cut by later pyrite-chalcopyrite and quartz-pyrite-molybdenite veins. Below the porphyry, a thick sequence of phyllic-altered felsic tuffs and volcaniclastic rocks contains widespread quartz-pyrite-molybdenite veins.

Drill holes AG14-03 and AG14-04 were collared 245 and 715 metres north of AG14-02. Both drill holes intersected similar sequences of intensely altered felsic volcanic and volcaniclastic rocks and quartz-feldspar porphyry. Alteration consists mainly of strong silica and sericite alteration, with narrower intervals of advanced argillic alteration (at 20-65 metres in AG14-03 and 53-69 metres in AG14-04). Sporadic copper, zinc and molybdenum mineralization is present as well as anomalous gold and silver (up to 718 ppm Cu, 7,310 ppm Zn, 236 ppm Mo, 0.065 g/t Au and 4.1 g/t Ag in AG14-03, and up to 685 ppm Cu, 3,560 ppm Zn, 0.105 g/t Au and 4.2 g/t Ag in AG14-04; all values are for individual one metre samples).

The Par alteration system is characterized by widespread magnetite destructive phyllic to advanced argillic alteration in a felsic volcanic center which is partly delimited by a 1 by 2.6-kilometremagnetic low in property scale airborne magnetics. Structurally, the system is controlled by the important synvolcanic regional fault (Otter Creek Fault) which separates the Late Triassic central Nicola Group from the Late Triassic Allison Lake pluton; strong ductile deformation fabrics are present locally in both core and outcrops. A Volterra 3-D IP survey completed by S.J. Geophysics during the drill program outlines a significant north trending resistivity low which correlates with the strong phyllic to advanced argillic alteration intersected in AG14-01. The 200 to 400-metre wide resistivity low extends over a strike length of three kilometres and is partly overlapped by a 400-by-800-metre chargeability high. The top of the chargeability high correlates with the porphyry and breccia-style Cu-Au-Mo mineralization in outcrop and in AG14-02; however it plunges to the east away from the west plunging drill hole trace and has not been tested at depth.