Loyalist Exploration completes preliminary review of DeSantis gold property, Ontario; drill targets identified

Loyalist Exploration Ltd. [CSE: PNGC] reported the completion of a preliminary review of its DeSantis gold property located approximately 4.5 km southwest of Timmins, northern Ontario. Six priority targets have been identified, plus an additional target on the McEnaney claims to the east, highlighting the significant exploration potential of the property.

In addition, Loyalist has identified a series of historical progress reports from 1963–1964 that reference the New Hope Porcupine (DeSantis) property and include historical tonnage estimates and sample results for that property prepared in support of a then-contemplated restart. Readers are cautioned that these historical estimates are not current, have not been verified by the Qualified Person, and should not be relied upon; see the Cautionary Statement under “Historical Documents Support Additional Ore Potential at DeSantis” below.

DeSantis Preliminary Review Highlights: Six priority targets identified in and around the historic DeSantis Mine workings.

1963–1964 historical progress reports reference the New Hope Porcupine (DeSantis) property and include historical tonnage estimates (non-NI 43-101 compliant).

Shallow up-dip extension of the Albitite Zone (Target 1) from surface to the 800-foot level with the potential to add resources to the property.

Possible parallel gold zone above the Albitite Zone (Target 4) includes a notable intersection of 25.0 g/t Au over 0.61 metres.

Depth extension of the Albitite Zone (Targets 3a 3b) highlighted as high-priority exploration target.

West extension of the Hydrothermal Zone (Target 2) supported by historical drill intercepts.

Notable historical intercepts include 7.54 g/t Au over 1.52 metres (Target 6) and 3.26 g/t Au over 1.25 metres (McEnaney claims). Review based on 488 drill holes totalling 101,945.4 metres and 21,158 gold assays.

Errol Farr, President & CEO, commented: Six significant targets and mineralization left in the historic workings make DeSantis a compelling exploration property with significant untapped potential along the prime Destor-Porcupine corridor. The next step is to conduct a more detailed review and mapping of the historic workings and creation of a summer work program. We look forward to advancing these targets as part of our broader Buy Timmins, Mine Timmins strategy.”

The property is located approximately 4.5 km southwest of Timmins and is situated 11 km west of Discovery Silver’s Dome Mine, and 14 km east of Pan American Silver’s Timmins Mine. It covers nearly 5 km of strike length along the north side of the Destor-Porcupine Deformation Zone (DPDZ), a major structure controlling gold deposits in the region. Between 1926 and 1943, the DeSantis Mine produced 35,784 oz of gold, 3,142 oz of silver and 193 lb of scheelite from 196,928 tons of material at an average mill head grade of 0.19 oz/ton gold.

A historical non-NI 43-101 compliant resource estimate totalling 182,505 tonnes at 8.64 g/t Au was completed across the Albitite and Hydrothermal Zones. Investors are cautioned not to rely on this historical estimate as a current mineral resource; a qualified person has not done sufficient work to classify it as current under NI 43-101 standards.

An initial review of a historical database acquired by the Company included the following data: 488 drill holes totalling 101,945.4 metres (surface and underground), with hole depths ranging from 5.4 metres to 1,354 metres; 21,158 gold assays from core samples; wireframes of historical underground mine workings; wireframes of the Hydrothermal and Albitite Zones.

Two main gold-mineralized domains have been historically recognized at the DeSantis Mine and described as follows:

Albitite Zone (AZ): This altered and gold-mineralized zone sits in close proximity to a sheared mafic/ultramafic contact, approximately 260 metres south of Shaft No. 2. The zone exhibits a northeasterly strike with an apparent southerly dip.

Hydrothermal Zone (HZ): Spatially associated with a zone of hydrothermal alteration in the mafic volcanics, primarily located west of the shaft. The zone strikes west-southwesterly and dips -40° to -50° southward. Gold values are genetically associated with relatively sparse and irregular quartz-carbonate stringers, minor tourmaline, and up to 5% pyrite.

Targets and Areas of Interest: The preliminary review identified six priority targets in and around the DeSantis Mine, plus an additional target on the McEnaney claims to the east.

All drill intercepts referenced below are historical, have been sourced from a database acquired by the company, and have not been independently verified by the Qualified Person. Reported widths are downhole (core-length) intervals; true widths are not known at this stage of review.

Target 1 is a high priority target that covers the shallow up-dip extension of the Albitite Zone from surface to the 800-foot level. There are no documented drill holes or underground sample results from this area in the recently reviewed database. This lack of information is most likely due to data loss over time, as the underground workings clearly intersect this target area in the past. Loyalist recommends a thorough data search to identify any missing historical records. If unsuccessful, a small drilling program is recommended to evaluate its gold potential in these upper levels of the historical underground workings.

Historical drilling west of the Hydrothermal Zone intersected gold values in altered mafic volcanics including 3.10 metres grading 2.68 g/t gold, 1.22 metres of 4.47 g/t gold, 0.52 metres of 2.26 g/t gold, 0.46 metres of 1.37 g/t gold, 0.48 metres of 4.45 g/t gold, 0.61 g/t gold of 1.71 g/t gold, 1.01 metres of 1.03 g/t gold and 0.98 metres of 1.71 g/t gold. Additional work is recommended to determine if these intersections represent the extension of the HZ.

Targets 3a & 3b – Depth Extension of the Albitite Zone: Historic deep drilling on the Albitite zone intersected the following significant gold values highlighting the potential for the continuation of the AZ at depth: 3.00 metres of 5.34 g/t gold, 25.95 metres of 2.29 g/t gold, 3.35 metres of 6.48 g/t gold, 1.45 metres of 10.00 g/t gold and 2.10 metres of 3.19 g/t gold.

Target 4 – Possible Parallel Zone Above the Albitite Zone: While testing the Albitite Zone, several historical drill holes intersected narrow gold values that appear to define a possible zone parallel to and sitting above the AZ. Notable intersections include 0.61 metres of 25.0  g/t gold, 7.90 metres of 1.74 g/t gold and 0.45 metres of 12.75 g/t gold.

Additional data compilation is recommended, potentially leading to a drill program to test the continuity and grade of the target.

Target 5 – Deep Isolated Anomaly (DS12-003A): A low-priority deep target identified by drill hole DS12-003A, which intersected anomalous gold mineralization south of the Hydrothermal and Albitite Zones. Testing of this target may be incorporated into a future deep drilling program targeting the Albitite Zone depth extension (Targets 3a and 3b). Assay highlights included 1.50 metres of 1.30 g/t gold, 0.80 metres of 1.66 g/t gold and 0.84 metres of 2.48 g/t gold.

Target 6 – West Property Target: A low-priority target following up on anomalous gold values intersected in historical drill holes on the western end of the property. Drill hole S34-008 returned a significant intercept near the bottom of the hole, warranting further follow-up exploration that returned 1.52 metres of 7.54 g/t gold.

McEnaney Claims Target (East Property): An additional low-priority target occurs on the McEnaney claims to the east of the DeSantis mine area. Widely-spaced historical drill holes intersected anomalous gold values in altered mafic volcanics, providing a basis for follow-up exploration. A notable intercept included 1.25 meytres of 3.26 g/t gold.

In conjunction with the preliminary review, Loyalist has identified a set of historical progress reports, filed under Timmins File T-140 with the Ontario Ministry of Mines and dated 1963–1964, that reference the DeSantis Mine (then known as New Hope Porcupine Mines Ltd.).

The reports were authored by Grant and Oja Limited (Mine & Exploration Management) on behalf of Kenilworth Mines Limited. During this period, Kenilworth Mines operated two separate properties: its own Kenilworth Mine and, under a 99-year operational contract dated August 1963, the adjacent New Hope Porcupine (DeSantis) Mine, located approximately 2.25 miles northwest of the Kenilworth workings. Only the portions of the T-140 reports that describe the New Hope Porcupine (DeSantis) property are relevant to the current DeSantis Property; information relating to the separate Kenilworth Mine is not disclosed here.

The T-140 reports include a section specifically addressing the New Hope Porcupine (DeSantis) property. The tonnage figures reported for the New Hope Porcupine property are attributed in the November 16, 1963 report to W.R. Dunbar, who served as consulting geologist to the DeSantis Mine during its earlier period of operation. Key figures from these documents relating to the New Hope Porcupine (DeSantis) property include 833-20 stope area, 800-foot level (historical estimate): Approximately 108,000 tons of potential material indicated by drilling (stope 833-20 plus diamond drill holes 15, 19 and 23), reported at a grade of 0.40 oz/ton Au uncut, as estimated by W.R. Dunbar and cited in the November 16, 1963 report.

950-foot level (historical estimate): Approximately 157,000 tons of potential material indicated by four additional drill holes (holes 25, 36, 28 and 37) at the 950-foot level, reported at a grade of 0.40 oz/ton Au uncut.

West of the diabase dike (historical estimate): Approximately 265,000 tons reported at a grade of 0.40 oz/ton Au uncut, located west of a prominent diabase dike on the New Hope Porcupine property.

Aggregate above the 1,200-foot level (historical estimate): W.R. Dunbar estimated, in total, approximately 700,000 tons above the 1,200-foot level on the New Hope Porcupine property, as cited in the November 16, 1963 report. No grade was disclosed in that report for the aggregate figure beyond the 0.40 oz/ton Au uncut grade reported for the component 108,000-ton, 157,000-ton and 265,000-ton estimates described above.

The August 27, 1963 shareholder progress report states that the DeSantis Mine was closed during wartime due to a shortage of available labour and sharply rising material costs, rather than a lack of ore, and that following closure its equipment was progressively repossessed or sold. The property was subsequently reorganized under the name New Hope Porcupine Mines, Ltd. in the late 1950s, with additional surface diamond drilling reported in 1953. Readers should note that the August 27, 1963 document is a promotional circular issued by Kenilworth Mines Limited to its shareholders, the tonnage and grade figures attributed to W.R. Dunbar have not been independently verified by the Qualified Person, and the characterization of the reasons for closure reflects the views of the author of that circular.

The 1963–1964 reports predate both NI 43-101 and CIM Definition Standards. Loyalist views the 1963–1964 T-140 reports as providing useful additional historical context for the exploration potential of the New Hope Porcupine (DeSantis) property. The depth extension of the Albitite Zone (Targets 3a & 3b), the shallow up-dip gap (Target 1), and the possible parallel zone above the Albitite Zone (Target 4) identified in the current preliminary review cover portions of the property that, based on the T-140 reports, had not been fully tested at the time the DeSantis Mine ceased operations. The company intends to consider the historical information, together with the modern drill hole database, as part of its planned detailed review and summer work program for the property.

Loyalist Exploration is currently focused on its “Buy Timmins” strategy, with the recent acquisitions of the Tully gold property, the Loveland nickel/copper/gold property, the Gold Rush gold/silver property, and the DeSantis gold property, all located in the Timmins, Ontario mining district.