The Lotto Main showing is located on a ridge top, 7 kilometres west from the head of Hastings Arm, Observatory Inlet, 34.9 kilometres south of Stewart, B.C.
The Lotto structure has been traced visually an additional two kilometres on trend to the north for a total of 3.5 kilometres, where a spot check grab sample on the ridge crest returned 17.0 grams per tonne silver and 0.1 per cent copper. Lotto Main is 700 metres south of Lotto Midway and 1500 metres south of the Lotto North showing.
The orogenic class of gold deposit is defined here as syn-tectonic quartz-carbonate veins and wall rock replacement associated with regional-scale faults. Orogenic ores form at convergent plate margins in accretionary and collisional orogens. Orebodies are surrounded by carbonate-sericite-pyrite alteration. Au, Ag, Sb and As are enriched in the ore fluids. W, B, Te, Se and Bi may also be enriched in the ores.
The Lotto Main mineralized quartz vein is exposed over a vertical extent of more than 500 metres. Several rock samples obtained during J2 Syndicate Holdings Ltd.'s 2016 exploration program on their Golddigger property returned anomalous values in Au, Ag, Cu and Pb. Multiple parallel veins occur adjacent to the Main vein (Anaconda Vein). The Anaconda Vein is a strongly mineralized, continuous near-vertical polymetallic quartz vein striking north-south and ranging from 0.5 metre to more than 3.0 metres wide. The vein contains galena, pyrite, chalcopyrite, and specular hematite as disseminations or masses, and the surface is stained with malachite and iron oxides. The granitic wall rock is intensely silicified with minor disseminated sulphides for up to 3.0 metres from the vein margins, within a broader envelope of sericite and clay alteration (Assessment Report 36903).
2017 exploration works on the Golddigger property focused on the Lotto/Anaconda Vein on the west side of Hastings Arm and the NewGold area on the east side of Hastings Arm. Three hundred and thirty-five (335) samples were collected: 46 channel, 267 rock (159 rock grab, 20 float and 85 chip), 7 talus fine and 15 silt samples. Channel samples were all from the Anaconda Vein (Assessment Report 37089).