The Castle prospect is located on the northern part of the Klastline Plateau about 12 kilometres west-southwest of the town of Iskut.

Andesitic volcanic breccias and conglomerates of the Lower Jurassic Hazelton Group underlies the Castle project area

(Unit lJavb, Open File 1997-03). These are described as grey-green and maroon, feldspar hornblende-porphyritic andesitic to dacitic debris flows and lahars; minor flows; with intervals of green and maroon epiclastic conglomerate and medium to coarse-grained crystal lithic wacke with angular, red mudstone fragments. A regional scale, north verging, east-west striking thrust, the Castle Thrust places older Upper Triassic (Stuhini Group) sediments on top of younger Jurassic Hazelton group rocks. This contact is exposed eight hundred to one thousand metres south of the CAZ (Castle Alteration Zone) and continues along strike for greater than 4 kilometres.

The geology of the Castle property is described in assessment reports as consisting mainly of purple and greenish andesite flows and pyroclastics. A sequence of shales, fine-grained sediments and minor limestone is separated from the volcanics by a fault. Younger felsite and feldspar porphyry dikes cut the above rocks and are probably related to a stock of Early Jurassic alkali granite/felsite reported to confine the mineralized zone to the northwest.

Early reports indicated that the zones of highly bleached pyritic-sericite are associated with thin felsite dikes, quartz stringers and chalcopyrite mineralization. A sample of massive pyrite and chalcopyrite contained 10.80 per cent copper, 30.85 grams per tonne silver and 0.14 gram per tonne gold (Assessment Report 9117). One 3-metre section of silicified volcanics yielded 8.0 grams per tonne gold. Trace amounts of malachite, molybdenite, bornite and galena were observed, and at two surface locations visible gold was noted. A sample taken at a showing of native gold assayed 39.63 grams per tonne gold over 0.4 metre (Assessment Report 16897). Another sample yielded 10.15 grams per tonne gold, 54.51 grams per tonne silver and 0.70 per cent copper over 0.3 metre (Assessment Report 16897).

Rocks previously mapped by Teck as porphyritic andesitic volcanics were re-interpreted in 2011 as probable high level intrusive monzodiorite porphyry. Sheeted quartz-chalcopyrite veinlet copper mineralization was noted in the porphyry, and a grab sample of this material returned an assay of 0.444 gram per tonne gold and 0.14 per cent copper (sample J486099, Figure 5 and Appendix A) (Assessment Report 31745). (Drill hole CA12-06 was subsequently collared about 45 meters north of this sample.) Samples of pyritic mineralization associated with QSP alteration yielded up to 9.6 grams per tonne gold, 0.46 per cent copper and 50 grams per tonne silver (Assessment Report 31745).

Recent geological mapping by Colorado Resources (2017) suggested that rock alteration is associated with enhanced gold and copper geochemistry, with multiple intrusive phases and brittle deformation zones. The CAZ forms a slightly arcuate shaped east-west-trending corridor which has a strike length of approximately five kilometres. The CAZ continues to the eastern property boundary and is overlain to the west by younger volcanic cover. Within the CAZ, rock alteration is characterized by both enhanced QSP (quartz-sericite-pyrite) and locally potassic alteration.

Potassic altered host stockwork quartz and/or magnetite veins often contain fine to coarse disseminated or lens/band shaped occurrence of chalcopyrite. In addition, where the rock has experienced magnetite flooding or where there is magnetite healed hydrothermal breccias the magnetite often contains very fine grained chalcopyrite. Often chalcopyrite in magnetite is so fine grained it cannot be seen except with a very strong hand-lens, but where late calcite veins cut magnetite rich domains they contain abundant disseminated remobilized chalcopyrite.

Phyllic altered rocks often have high concentrations of gold associated with both increased chalcopyrite and pyrite proportions. Chalcopyrite is not especially common in phyllic altered rocks (compared to potassic altered rock), but there are sections of phyllic altered rock that have abundant chalcopyrite. The chalcopyrite can be present in remnant quartz-magnetite veins (often altered to quartz-hematite veins), remobilized into calcite veins, and most interestingly it can be present, sometimes in astounding concentration, in “pyrite” veins. These veins, which are normally comprised mainly of pyrite, can be comprised almost entirely of chalcopyrite. Sometimes this occurs as a one-off and other times there will be sections of core tens of meters long which contain bands of chalcopyrite within pyrite veins. This suggests that phyllic alteration is not necessarily grade destructive when it overprints potassic alteration/mineralization. Rather, it indicates that phyllic alteration is capable of remobilizing and concentrating copper originally precipitated during potassic alteration. Where phyllic alteration is strongest it is sometimes host to zones of massive sulfide. Drillhole intersections of these “mega-veins” have been more than 30 metres. They are comprised almost entirely of pyrite and/or chalcopyrite and have minor interstitial calcite or quartz.

Chalcopyrite is the main copper bearing mineral in the Castle porphyry. Near surface malachite and azurite are also common. Throughout the property, even in weakly altered rock, chalcopyrite is present in calcite plus hematite veins. Within the main alteration zones of the Castle stock mineralization is mainly present in stockwork veins and hydrothermal breccias; the style of mineralization is dependent on the type of alteration present and the two main alteration/mineralization facies are described above. Gold concentrations increase with increased amounts of pyrite and chalcopyrite. Molybdenite is present in low concentrations, often in association with quartz-stockwork where it is barren of copper mineralization. Chalcopyrite and bornite are also found external to the pyrite zone in fractures and with felsite dykes.

In the Castle project area at least two significant styles of mineralization are identified. These include (i) structurally controlled quartz-calcite-sulphide-gold mineralized zones and (ii) intrusive related copper-gold mineralized zones associated with altered monzodiorite intrusions.

In 2018, J.L. Oliver (Assessment Report 37464) summarized the principle features of the Castle veins:

i.) Many of these veins are banded.

ii.) Open space breccias composed of both quartz, iron carbonates, hematite and sulphides are common.

iii.) Gold rich veins may have significant silver contents along with both zinc, lead and copper.

iv.) The veins are not associated with advanced argillic alteration and never form vuggy sucrosic residual quartz bodies, there is no evidence for a barren lithocap in the Castle area. The veins have not formed from high sulphidation state fluids

v.) It is indeterminant whether these veins carry either adularia or alunite as a gangue mineral.

vi.) The veins show no evidence of boiling and chalcedonic silica is ever identified.

i. vii. Temperature dependent alteration

In 2018, J.L. Oliver (Assessment Report 37464) summarizes, and interprets, the results of the work concluded on the Castle claim portion of the K-C block of claims:

i. The Castle Alteration Zone (CAZ) and intrusive corridor as defined by structural relationships, intrusive style, geophysical and geochemical signatures continues to the eastern margin of the K-C claims.

ii.) The CAZ and intrusive corridor will likely continue to the west beyond its current mapped limit as it passes under younger Neogene volcanic cover.

iii.) A suite of at least 5 intrusive phases, which may be pre, syn and post-mineral, are located within an approximate 1,000 metres wide east-west trending corridor. Intrusive phases which have the strongest spatial relationships to mineralized zones are fine grained crowded plagioclase, plus or minus hornblende phyric, micro-monzodiorites.

iv.) Mineralized zones are commonly associated with sericite-pyrite alteration with volumetrically subordinate potassic alteration also spatially related to copper-gold mineralized zones.

v.) The geophysical and geochemical data would suggest that the broader alteration and structural corridor has significant on strike variations in net sulphide, and copper-gold, contents across it’s greater than 5.5 km strike length. The controls on the metal variations within this large alteration zone are not well understood at this time.

vi.) Portions of the CAZ have the geological, mineralogical and geochemical signatures of an intrusive related, regional scale 205-215 Ma copper-gold porphyry event. That time frame has been recently confirmed by van Straaten (2017) with an Re-Os data for the Castle Monzonite intrusion of 206.1 +/- 0.9 Ma. In addition, rocks in the CAZ area may have been overprinted by mineralization which occurs at approximately 180 Ma and may be better characterized by intermediate sulphidation hydrothermal processes.

Of the 191 rock samples collected in 2017, 34 analyzed over five grams per tonne gold and 35 yielded over 3 per cent copper (Press Release, Colorado Resources Ltd., January 5, 2018). Anomalous gold soil geochemical data closely track the Castle Alteration Zone (CAZ). Gold geochemistry over 200 parts per billion gold in soils forms a series of well-defined segments, from a few hundred metres to over 600 metres in strike length within the broader CAZ.

In 2017, a total of 11 kilometres of ground IP and 150 kilometres of airborne magnetic surveys were flown across much of the Castle portion of the Kinaskan-Castle (K-C) property. Ground IP, although prematurely terminated, suggests that strong chargeability responses have been identified on a single line 1,500 metres to the east of the historic drilling. The airborne magnetic data indicate that the CAZ is defined in part by an east-west-striking magnetic high anomaly.

Approximately 1.2 kilometres of the western part of the CAZ was tested by 21 diamond drill holes (4,805 metre) between 1988 and 2013 (inclusive). According to Colorado Resources, the results of these historical exploration drill programs provide evidence that both high-grade structurally controlled gold-silver veins as well as intrusive hosted porphyry gold-copper mineralization is associated with the Castle Alteration Zone (CAZ). Structurally controlled gold-silver veins would be exemplified by the results of West Cirque's DDH CA13-03, 8.92 grams per tonne gold and 129.95 grams per tonne silver and 4.0 per cent copper over two metres and with intrusive hosted gold-copper mineralization characterized by West Cirque Resources' DDH CA12-04 coring 150 metres of 0.35 grams per tonne gold, 1.59 grams per tonne silver and 0.09 per cent copper (Press Release, Colorado Resources Ltd., January 5, 2018).

Merged data from the 2017 program along with the historic soil samples (1,242 soil samples) are illustrated in figures 2 and 3 available on-line as part of the Colorado Resources, January 5, 2018 News Release (www.coloradoresources.com). Figure 2 shows how anomalous gold-in-soil geochemical data closely track the Castle Alteration Zone (CAZ). Gold geochemistry over 200 parts per billion (ppb) gold in soils forms a series of well-defined segments, from a few hundred metres to over 600 metres in strike length within the broader CAZ. The over 200 parts per billion gold contour is superimposed on a broader 100 parts per billion gold-in-soil anomaly.

Besides the Castle prospect (104G 076), elevated copper and gold values are noted to the east, where copper mineralization is hosted by structural zones which may be both concordant and discordant to coarse grained mafic fragmental volcanic and intrusive contacts. See Castle East (104G 253), Castle Central (104G 254) and Tuk (104G 162) for information on related showings on or near the Castle Alteration Zone (CAZ).

WORK HISTORY.

Sumitomo Metal and Mining of Canada staked the Jo group of claims in 1970 and performed a soil sampling survey in 1971 followed up in 1973 with 549 metres of diamond drilling in 5 holes. The Jo claims lapsed and Teck Explorations staked the Castle 1 and 2 in 1980. Soil and rock surveys were conducted in 1980 and 1981 by Teck. In 1985, Teck's work on the Castle 2 claim included hand trenching, chip sampling, and a geophysical program (magnetics, self-potential and VLF-EM). Kappa Resource Corporation entered into a joint venture with Teck in 1987 and funded work consisting of an induced polarization survey (10.5 kilometres) and other geophysical surveys including magnetics and Self Potential (14.5 kilometres each). Further soil and rock sampling surveys were conducted in 1987 also. The 1988 program by Teck (funded by Kappa) consisted of an 11-hole diamond drilling program for a total of 1190.2 metres. All holes were drilled along the mineralization zone to test an intense IP anomaly and three previously identified gold showings. Gold mineralization is associated with silicification and disseminated to semi-massive sulphides in highly altered volcanic rocks. A diamond drillhole intersection across 7.6 metres assayed 4.46 grams per tonne gold (Vancouver Stockwatch, 1988).

A 3-year mapping (1994 to 1996) program headed by Chris Ash of the B.C. Geological Survey has led to an updated stratigraphic framework for parts of NTS map sheets 104G/09 and 16 and 104H/12 and 13, including the area of the Castle prospect. This new interpretation is published in Fieldwork 1994, Fieldwork 1995; Fieldwork 1996; and Open File 1997-03.

In 1997, Teck returned to the Castle property conducting a 1:10,000 scale mapping and rock sampling program focusing on the underexplored Castle East and Central zones.

In 2004, the eastern part of the Castle property (then called the Tuk property) was further investigated by Canadian Gold Hunter Corp. Twenty-five talus fine samples were collected from two separate areas below gossanous outcrops, returning copper values up to 0.565 per cent and Au values up to 0.33 gram per tonne (Assessment Report 27737). Twenty-five rock samples were also collected, yielding copper values up to 9.7 per cent. This program also interpreted a carbonate-rich gossan overlying felsic tuffs as an exhalite.

In 2010, Brett Resources re-analyzed selected drill core from Teck's 1988 program.

In 2011, a single reconnaissance traverse was carried out on behalf of West Cirque Resources Ltd as part of a regional program evaluating under-explored porphyry prospects in the Dease Lake area. West Cirque Resources Ltd optioned the western part of the property from Bearclaw Capital Corp in late 2011 after the initial reconnaissance traverse in August of that year. Reconnaissance mapping and sampling in 2011 identified copper bearing porphyritic intrusive rocks 300 metres east of drill holes 88-1 to 88-4 (Teck) grading 0.44 gram per tonne gold and 0.13 per cent copper. The eastern part of the property was subsequently acquired from several vendors in 2012.

In 2012 West Cirque Resources Ltd. completed a Phase I diamond drill program consisting of a 1777 metre drill program. Five of six drill holes intersected significant mineralization. Highlights include intercepts up to 1.015 grams per tonne gold. In 2013, West Cirque Resources Ltd completed a Phase II drill program at Castle

In February of 2017, a 100 per cent interest in the Castle portion (163.72 square kilometres) of the larger Kinaskan (163.72 square kilometres) claim block was acquired by Colorado Resources Ltd from Kaizen Discovery Inc.

In 2017, Colorado Resources Ltd conducted work on its Kinaskan-Castle (K-C) property. Work was focused on the four-kilometre-long central and eastern end of the Castle alteration zone (CAZ). The Castle portion of the property was acquired by Colorado in February 2017. Colorado collected soil and rock samples, geologically mapped a 10 square kilometre area and completed 11-line kilometres of IP and 150-line kilometres of airborne magnetics in September before weather caused an early shut down of the program. During the 2017 field program, 856 reconnaissance soil samples were collected on 200-metre line spacings with 50 metre centres on north-south-orientated lines south and east of the Castle MINFILE occurrence (104G 076). Prospecting covered much of the five-kilometre strike of the Castle alteration zone (CAZ) and resulted in the collection of 191 rock samples (73 chips, 15 composites and 103 grabs). The IP survey was run on north south lines between the Castle and Castle Central (104G 254) occurrences. In 2017, more than 70 rock samples were taken at and around the Castle showing (104G 254) and along a southeast and northwest trend. At least 17 samples yielded greater than 1 gram per tonne gold including one sample that yielded 28 grams per tonne gold (Assessment Report 37464).

In 2018, Colorado extended induced polarization survey coverage on the property that produced chargeability anomalies coincident with large gold and copper soil geochemical anomalies, which extend along an east-west trend for more than 2000 metres. The anomalies are interpreted to be sourced from underlying early Jurassic monzodiorite porphyry intrusive (+/-volcanic) rocks, potentially similar in age and lithology to those described as the same rock units that host the Saddle North and Saddle South discoveries on the Tatogga property to the immediate east (see 104G 432 and 433).

Late in 2019 Colorado Resources completed 1555 metres of drilling at the East Castle zone (104G 253 and 254) targeting coincident gold and copper anomalies (detected from sampling) and chargeability anomalies. Two new zones were discovered, the Castle South and the CGZ.