Juan de Herrera Project

Juan de Herrera Project

Additional Information on The Dominican Republic's Tireo Gold Trend

Latest News from Juan de Herrera

In November of 2016 Precipitate commenced a follow-up diamond drill program at its Ginger Ridge Zone. The Phase 2 diamond drill program was planned consist of a minimum 2,000 metres of drilling in 10 to 12 holes stepping out along the projected strike of the geophysical and geochemical anomalies hosting the Phase 1 discovery hole (‘Hole 5’) at Ginger Ridge.

Initial results from the Phase 2 drill program at Ginger Ridge (NR January 19, 2017) include results from the initial five completed holes (GR16-07 to GR16-11 (partial)) from this phase, totalling of 1,310 metres. Holes 7 to 11 were collared up to 150 metres from the Company’s 2014 discovery hole (“Hole 5”), testing mineralization and alteration continuity and select discrete induced polarization (‘IP’) chargeability-high geophysical anomalies.

While the laboratory results for holes 7 to 11 were not as robust as the discovery hole, the strength and scope of observed intervals of sulphide-silica alteration combined with anomalous gold-copper-zinc metal enrichment is encouraging, as they appear to show characteristics commonly associated with a volcanogenic massive sulphide (“VMS”) setting. See the Company’s news release dated January 19, 2017 for full details.

All drill holes intersected andesitic volcanic rocks (mixed crystal, lapilli, lithic tuffs, fragmental and debris flows) which exhibit zones of weak to very strong chlorite-pyrite-silica (± clay) alteration, with some lengthy intervals (exceeding 15 metres in hole 10) of strongly disseminated to semi-massive very fine grain pyrite-silica mineralization and the andesitic volcanic rocks are variably altered and mineralized to the thrust contact.

Additionally, in September of 2016 a comprehensive ground geophysical program of both magnetic and induced polarization (“IP”) surveying commenced at the project. The primary object of this ongoing IP geophysical program is to survey multiple newly delineated geochemical anomalies (see the Company’s news release dated August 16, 2016 for location details), for specific geophysical characteristics which may lead to the identification of drill worthy targets. This work will move sequentially to the five new geochemical anomalies outlined by the Company in recent months, namely the JT, South East, Jengibre South, Peak and Melchor areas. Precipitate expects the regionally comprehensive IP survey to continue through early 2017. Results of the survey will be reported as it becomes available.

Juan de Herrera Project Location

Precipitate's Juan de Herrera project is road accessible to within about 8.0 kilometers of the project’s Ginger Ridge Zone and well located within the prospective Tireo Gold Trend in western Dominican Republic. The Juan de Herrera project concessions cover an estimated 40 kilometres of prospective strike length of target Tireo Formation lithologies (see concession maps for details). The Tireo Formation is an Upper Cretaceous aged package of volcanic and sedimentary rocks that occurs in central Hispaniola, trending northwesterly bisecting the Dominican-Haitian border. These rocks were largely unexplored until recent discoveries by GoldQuest Mining Corp (Romero), Unigold (Neita-Candelones), Newmont (La Miel) and the Somine gold-copper occurrence. Approximately 5.0 million gold equivalent ounces have been discovered and advanced in in the belt in the last decade, while vast areas of similarly prospective and proximal terrain remains largely underexplored.

Ginger Ridge Zone Exploration Summary

Precipitate's primary exploration focus is on the Juan de Herrera concession, which is a highly prospective and emerging exploration camp with intermediate sulphidation epithermal and VMS styles of mineralization. Since announcing its initial Dominican Republic property acquisitions in August 2012, the Company has completed multiple phases of regional and local scale exploration work. Follow up exploration programs have focused on the newly discovered Ginger Ridge Zone which was the subject of the Company’s first two phases of drilling in 2014 and 2016.

Detailed exploration at Ginger Ridge Zone includes geological mapping, rock-soil sampling, hand trenching, multiple phases of induced polarization and ground magnetic geophysical surveying and 11 diamond drill holes totalling 2,500 metres.

Phase 1 drilling at the Ginger Ridge Zone discovered a new zone of gold-enriched massive sulphide mineralization, as discovery drill Hole 5 cut 98.1 metres of strongly disseminated, semi to massive sulphides (dominantly pyrite), containing an 18.0 metre wide interval of 4.54 g/t gold (including 5.0 metres at 13.37 g/t gold. See the maps and figures and table below for additional information.

Ginger Ridge Zone 2014 Phase 1 Drill Summary:

Hole

From
(m)

To
(m)

Interval
(m)

Gold
(g/t)

Other

1

No significant values

2-4

Weak gold values over wide intervals with anomalous Ag, As, Zn, Cu and Pb

5

25.00

46.15

21.15

0.62

3.9 g/t Ag, 0.12% Cu, anomalous Pb

including

38.00

46.15

8.15

0.87

2.7 g/t Ag, 0.16% Cu, anomalous Pb

84.00

102.00

18.00

4.54

0.6 g/t Ag, anomalous Cu & Zn

including

86.00

102.00

16.00

5.05

0.5 g/t Ag, anomalous Cu & Zn

including

88.00

93.00

5.00

13.37

0.7 g/t Ag, anomalous Zn & Cu

6

47.24

50.29

3.05

0.55

0.55 g/t Ag, 0.11% Zn, anomalous Cu

80.00

87.00

7.00

0.41

anomalous Cu & Ag

Ginger Ridge Zone 2016 Phase 2 Drill Summary:

Hole

From (m)

To (m)

Interval (m)

Au g/t

Cu %

Zn %

GR16-07

48.77

56.39

7.62

0.10

GR16-08

39.62

45.79

6.17

nil

nil

0.04

GR16-09

0.00

28.96

28.96

nil

nil

0.03

211.84

225.32

13.48

nil

nil

0.19

GR16-10

21.34

32.00

10.66

0.32

76.20

79.25

3.05

0.52

0.16

144.78

149.35

4.57

0.32

0.03

252.38

260.60

8.22

0.10

286.51

309.37

22.86

0.23

0.09

including

294.13

300.23

6.10

0.39

0.27

GR16-11*

7.62

35.05

27.43

0.49

0.01

including

28.96

33.53

4.75

1.39

0.01

39.62

53.34

13.72

nil

nil

0.07

143.05

149.35

6.30

0.41

0.03

0.02

163.07

170.69

7.62

0.33

nil

0.03

196.60

202.37

5.77

0.17

0.01

0.59

Note: Intervals reflect measured core length, as true widths are currently unknown. Results for the final 60 metres of Hole 11 are pending and expected in late February 2017.

Discovery Hole 5 at Ginger Ridge Zone

Hole 5 is vertically oriented and located 60 metres south of grid line 10, on the west shoulder of an outcropping rhyolite dome (see attached illustrations for more details). Hole 5 cut 98.1 metres (24.90 to 123.00m) of strongly disseminated, semi to massive sulphides. Sulphide mineralization is very fine grained, generally massive, non-magnetic, locally very siliceous and dominated by pyrite.

Analytical results from Hole 5 have identified two intervals of gold and related base metal mineralization. Starting from 25.0 metres depth, the upper 21.15 metre interval contains 0.62 g/t Au, 3.9 g/t Ag, 0.12% Cu; including 8.15 metres of 0.87 g/t Au, 2.7 g/t Ag and 0.16% Cu. The lower 18.0 metre wide interval, starting from 84.0 metres depth, reports 4.54 g/t Au; and includes a highlight interval of 5.0 metres at 13.37 g/t Au.

Ginger Ridge Zone Surface Sampling and IP Geophysics

Soil and rock sampling has established a northwest-southeast trending gold anomaly (plus pathfinder elements) about 2.0 kilometres long over the east slope of Ginger Ridge. The enriched multi-element core anomaly, centred in the control grid, is characterized by a correlation of gold and silver with several pathfinder elements which variably include arsenic, antimony, barium, lead, copper, thallium and zinc. Surface sampling at Ginger Ridge covers an estimated area measuring 2,200m by 750m, blanketing most of the eastern slope of Ginger Ridge.

2014 and 2015 IP geophysical surveys covered an area measuring approximately 1.6 km by 1.0 km, blanketing much of the zone's multi-element surface geochemical anomaly that marks anomalous mineralization in Tireo volcanic rocks. Interestingly, field crews have reported numerous visual observations of variably mineralized surface exposures roughly coincident with the main target chargeability high anomaly, extending from line 2 to line 14; a distance measuring about 1.2 km.

From line 2 to 18, the main high chargeability anomaly exceeds 1.6 km long, with elevated chargeability readings starting at bedrock surface on lines 6, 8, 10 and 12 (up to 13.5mV/V on line 8). Readings on the north and south survey lines project the chargeability anomaly deeper to the northwest and also to the southeast, each with a reduced relative strength of up to 4.5 to 5.5 mV/V. A petrophysical study carried out on select Hole 5 drill core indicates that massive and disseminated pyrite samples have chargeability responses of 84 and 27 mV/V, respectively. Together, the resistivity and chargeability readings appear to map mineralization, major rock types and structures well. On the western side of the survey area, a possible regionally mapped thrust fault is inferred to dip vertically to steeply to the northeast, marking a possible structural contact between limestone rocks and the overlying gold enriched Tireo volcanic lithologies.

Additional Zones at Juan de Herrera

Regional sampling and mapping in early 2016 identified 5 new priority geochemical anomalies, namely “South East”, “Jengibre South”, “Melchor”, “Peak”, and “JT”. Analytical results substantiated and refined the size and form of these significant multi-element surface anomalies and all five are coincident with regional airborne magnetic anomalies and are hosted within favourable Tireo volcanic lithologies.

In September 2016 the company announced the commencement of both magnetic and IP geophysical surveys over all five new geochemical anomalies. The ongoing objective is to survey these prospective zones for specific geophysical characteristics which may lead to the identification of priority drill worthy targets to augment the Ginger Ridge Zone.

Maps

Photos