Juan de Herrera Project

Juan de Herrera Project

Additional Information on The Dominican Republic's Tireo Gold Trend

Latest News from Juan de Herrera

On May 24th the Company announced the re-commencement of its diamond drill program at the Ginger Ridge Zone. Planned to be an adaptable program of approximately 3,500 metres. The primary objectives of this program will be, (i) to test select portions of the Ginger Ridge Main anomaly area that were not tested in prior drill programs; and (ii) test the newly identified Ginger Ridge East soil anomaly, situated approximately one kilometre east of prior drilling. Program budgeting allows for the possible expansion of drilling within any new priority exploration zones successfully intersected during the program. Concurrent with the Ginger Ridge Drill program, Precipitate will be updating shareholders on results from the other five target areas on Juan de Herrera where IP geophysics, soil geochemical surveys and geological mapping were recently completed. The Company may extend the drill program to include some of these other areas if deemed prudent, based on results and budgets. See news release dated May 24, 2017 for further details on the program and targets.

Also in May of 2017, the Company announced completion of an extensive Induced Polarization (“IP”) geophysical survey program over multiple zones within the project. The survey focused on Ginger Ridge and the five other target areas (namely, Southeast, South Jenigbre, Peak, Melchor and JT zones) previously identified by airborne magnetics, mapping, and soil and rock geochemical programs over areas known to be underlain by favourable Tireo volcanic rocks. Property-wide, a total of 80 line kilometres have been surveyed, including the 2014 Ginger Ridge IP geophysical work (which consisted of gradient, pole-dipole and Insight arrays). In addition, the Company has collected ground magnetic readings from 73 line kilometres surveyed within the project; selective magnetic geophysical surveying is ongoing.

Company consultants are now processing and modelling all geophysical data and generating maps and various models as part of the interpretive process. Results of the survey will be reported as available.

In addition, earlier in May 2017, the Company announced the strengthening of a new gold-in-soil geochemical anomaly at the Ginger Ridge East zone located approximately one kilometre east of the main drill test area at Ginger Ridge. The East anomaly boasts a pronounced multi-element soil anomaly measuring 1,000m by 100m (up to 200m locally) with gold values up to 842 ppb, zinc up to 2,461 ppm, and lead up to 305 ppm. The soil anomaly is coincident with important geophysical anomalies frequently associated with gold mineralization in the Tireo Gold Camp region; including a strong magnetic low signature and combined induced polarization (“IP”) gradient signatures of resistivity high and moderate chargeability. The East anomaly has developed into a high priority drill target for the next phase of drilling.

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.

Results from Phase 2 drilling (holes 7 to 11) were not as robust as the mineralization identified in the discovery hole, however 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.


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.

In early 2017, the Company announced elevated soil sampling results from within a newly identified gold-in-soil geochemical anomaly at the Ginger Ridge East zone, located approximately 1.0km east of the main Ginger Ridge anomaly.

Following a comprehensive and concentrated recent soil sampling effort (density of 25m by 25m), the most robust portion of the soil anomaly measures 1,000 metres (“m”) long by an estimated average width of 100 metres (up to 200m wide locally). The northwest-southeast trending soil anomaly is both consistent and strong, with notably elevated gold, lead and zinc values throughout the surface anomaly; along with intermittent copper values.

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