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Pinecrest Resources Ltd.

Projects

Enchi Gold Project

Highlights


NI 43-101 Inferred Resource Estimate


Enchi has a compliant National Instrument 43-101 Inferred Resource Estimate of 37,357,000 tonnes grading 0.90 g/t gold containing 1,078,697 ounces of gold using a 0.5g/t gold cut-off grade.

The Inferred Resource Estimated at a cut-off grade of 0.5 g/t Au is as follows:

Enchi Gold Project, Ghana 2014 Inferred Mineral Resource Summary
Cut-off
Au (g/t)
Zone Tonnes Grade
Au (g/t)
Contained Gold
(ounces)
0.5 Boin 15,872,000 0.96 489,892
0.5 Nyam 5,350,000 0.96 165,129
0.5 Sewum 16,135,000 0.82 423,676
TOTAL 37,357,000 0.90 1,078,697
  1. CIM definition standards were followed for the resource estimate.
  2. The 2014 resource models used ordinary kriging (OK) grade estimation within a three-dimensional block model with mineralized zones defined by wireframed solids.
  3. A base cut-off grade of 0.5 g/t Au was used for reporting resources with a capping of gold grades at 18 g/t.
  4. A US$1,300/ounce gold price, open pit with heap leach operation was used to determine the cut-off grade.
  5. A density of 2.45 g/cm3 was applied.
  6. Numbers may not add exactly due to rounding.
  7. Mineral Resources that are not mineral reserves do not have economic viability

The Resource Estimate also evaluated the Enchi Project at a range of cut off grades between
0.3 and 2.0 g/t Au. Results are as follows;
Cut-off Tonnes Au g/t Ounces
0.3 72,611,000 0.65 1,526,065
0.4 53,366,000 0.76 1,304,918
0.5 37,357,000 0.90 1,078,697
0.7 20,816,000 1.15 767,988
0.9 12,993,000 1.36 569,879
1.0 10,127,000 1.49 484,388
1.2 6,446,000 1.70 352,779
1.5 3,011,000 2.11 204,549
1.7 2,041,000 2.36 154,976
1.9 1,554,000 2.54 126,727
2.0 1,174,000 2.73 102,909

A technical report has been prepared and can be viewed here (2015 Enchi Gold Project NI 43-101 Technical Report)

The 2015 Mineral Resource estimate was based on 52,385 metres of diamond and RC drilling in 646 holes as well as data from 13,799 metres in 102 surface trenches. The drilling is generally spaced at 25 to 50 metre intervals.

All resources (Boin, Nyam, and Sewum) are open along strike and down dip

A two phase success contingent work program has been recommended by WSP including the completion of a preliminary economic assessment and metallurgical testing to investigate the potential for utilizing low cost open pit mining and heap leaching on the near surface inferred gold resources.

The second phase, contingent on the success of phase one, consists of additional drilling, detailed metallurgical testing, further technical studies and a pre-feasibility study.

The 2015 Enchi Gold Project Technical Report prepared by Todd McCracken, P.Geo. of WSP Canada Inc., who is independent of Pinecrest Resources and a Qualified Person ("QP") as defined by National Instrument 43-101.

Mr. Gregory Smith, P.Geo, the Vice-President of Exploration of the Company, is the Qualified Person as defined by NI 43-101, and is responsible for the accuracy of the technical data and information contained on this webpage.

Exploration Opportunities


Several high priority gold targets identified to expand the already substantial +1 million gold ounces near surface oxide resource with multi-million ounce opportunities.



Enchi Gold Project Geological Overview/Location


Enchi Project

The Enchi Project is located in south-western Ghana, in a region well known for prolific and low cost gold production, hosting numerous historical and currently operating open pit and underground gold mines located along strike to the northeast of the Project. In 2009, Ghana was the second largest gold producer in Africa, after South Africa, with annualized gold production of 2.9 million ounces.

The Enchi Project covers a 50 kilometre (km) strike length of the well known and prolific Bibiani Shear Zone, situated along the eastern margin of the Sefwi Belt stretching from the Cote d'Ivoire border in the southwest to the southern margin of the Suhuma Forest Reserve, to the northeast. The Project is located 290 km west of the capital of Accra and 70 km southwest of the Chirano Mine operated by Red Back Mining Inc. ("Red Back"). Enchi Project Location

Red Back and previous operators discovered and identified 16 separate gold mineralized zones on the Enchi Project that have the characteristics of classic Pre-Cambrian Greenstone-hosted quartz vein style gold deposits. This style of gold mineralization is the most important type of gold occurrence in West Africa and is commonly referred to as the" Ashanti-type" in this region of West Africa.

The project area is comprised of eight contiguous licenses currently held 90% by Cape Coast a 100% owned Ghanaian Subsidiary of Pinecrest Resources and 10% by the Government of Ghana.

Exploration History


Exploration completed by Leo Shield in 1996 identified a narrow, steeply dipping zone of gold mineralization 1500m in length. Gold resource estimates by Leo Shield determined that 1,650,000 tonnes of ore averaging 1.4 g/t (72,700 oz) with a cut-off of 0.8 g/t were present (Calderwood, 1999). Red Back also drilled 387 RAB and RC holes totalling 22,504 meters and excavated 26 trenches totalling 3478 meters over the Boin Prospect area. The trenching tested gold soil geochemical anomalies that coincided with the Boin Shear Zone. The Boin Shear Zone is a NE striking regional scale thrust which hosts the gold mineralization at the Boin Prospect. Drilling completed by Red Back identified a semi-continuous zone of gold bearing quartz veins, 1500 meters long averaging 20 meters thick, localized in the hanging-wall of the Boin thrust. Resource calculations by Red Back estimated a gold resource of 165,000 ozs and were present to a depth of 100 meters.

In 2006 and 2007 Red Back (Kinross) drilled 50 RC holes totalling 3725 meters and excavated 46 trenches totalling 7915 meters over the Sewum Prospect area. The trenching was focused on the gold soil anomalies and identified broad areas of anomalous gold mineralization, particularly on the Sewum Ridge. Follow-up RC drilling returned some significant gold intersections but did not define any clear continuous zones of mineralization. No work was done on the Nyamebekyere prospect by Red Back during that period.

Starting in 2010, Edgewater Exploration cleared old access roads and surveyed historical RC drill hole collars. Edgewater also conducted extensive soil sampling program as an infill to the previous Red Back soil program and later extended it to cover other areas that have not been sampled before by Red Back mining. A total of 22,000 soil samples including quality control were collected across an approximately 2,500 sq km area. In addition, a total of 1225 auger holes (4325m) have been drilled to test some of the soil anomalies obtained from the soil sampling program. Edgewater has also excavated 21 trenches (2,084m), drilled 25 RC holes (2,620m) and 118 diamond holes (15,290m).

Edgewater completed exploration and drilling programs concentrated in three main areas; Boin, Nyam, and Sewum. For all mineralized zones drilling was successful in confirming the previous results and extending the mineralization both along strike and down dip.

Drilling identified four zones of mineralization at Sewum. Three of the zones, the Ridge Top Shears and the East and West Contact Zones are associated with a 3km long and 500m wide steeply dipping dolerite dyke. The fourth zone is localized along the main Sewum Shear. Mineralization occurs as breccias and stockworks in sediment and dolerite at the intrusive contact (East and West Contact Zones, Chequerboard Hill Zone) and also as flat-lying shears within the dolerite intrusive (Ridge Top Shears). At Nyam exploration by Edgewater confirmed the results of historical RC drilling by Leo Shield and extended the length of the zone of mineralization to 2100m and to a depth of 150m. The zone of mineralization is up to 30m thick and lies in the hanging-wall of a NE striking shear that dips 70º east. Mineralization consists of veined and brecciated sediment and phyllite cemented by quartz, ankerite, albite, rutile and pyrite.

At Boin, Edgewater excavated eight trenches (359.1m) and drilled 62 diamond holes and six RC holes totalling 8,417.4m. The drilling was completed in two phases. The first phase was aimed at confirming results of Red Backs earlier RC drilling by twinning selected holes and reducing the spacing between lines of drill holes from 100m to 50m within the resource area. The second phase of drilling was aimed at expanding the resource by testing the mineralized structure along strike and down plunge.

Geological Setting


Most significant gold deposits in Ghana occur in major shear zones on or close to major geological belt and basin margins. The Enchi project area straddles the Bibiani Shear Zone which is known to host significantly large lode-gold deposits, such as the Bibiani and Chirano

mines. This highly prospective, first order tectonic feature trends northeast southwest and juxtaposes Birimian mafics of the Sefwi Belt to the northwest against Birimian sediments and volcaniclastics of the Kumasi Basin to the southeast. The Bibiani Shear Zone hosts world-class gold mineralized systems including the Bibiani gold deposit and Red Back Mining's Chirano gold mine to the northeast, and the Anuri Afema deposit in Cote D'Ivoire to the southwest.

The Obuasi-Enchi lineament, a major east-west crustal scale deformation zone, deflects the Bibiani Shear Zone between the Chirano and Enchi project areas. This lineament is associated with the world renowned Obuasi Mine and Akyem deposits in the Ashanti Belt, 100-200 kilometers to the east. In the Chirano area, the Bibiani Shear Zone underwent a change in strike direction to the north-northeast, and hosts an enclave of Tarkwaian sediments. In the Enchi project area the Bibiani Shear Zone underwent this same localized change in strike direction to the northeast, bifurcating the local geology in a similar fashion and includes structurally similar geological and tectonic enclaves. In both the Chirano and Enchi areas, these enclaves are bounded by second order fault and shear structures evident in regional airborne geophysics and digital terrain models. Typically in this region, gold occurrences are located close to third order structures in the form of splays off the second order structures and are generally sub parallel to the overall trend of the Bibiani shear zone.