Sunrise Lake is located in the Northwest Territories, 130 km NE of Yellowknife, and hosts silver-gold and base metal mineralization outlined by 21,774 meters of surface diamond drilling since discovery in 1987. The Sunrise Lake deposit is a typical volcanogenic sulphide deposit comprising a steeply dipping lens three-to-four meters thick, 120 meters wide and 190 meters long. Underlying the deposit is lower grade disseminated mineralization approximately 50 meters in thickness.
Terms of the acquisition completed in October, are that TUF acquired Sunrise Lake for no cash consideration, but SSR will retain a 4% net smelter royalty on any future production from the project. Half (2%) of this NSR can be purchased by Honey Badger at any time prior to commencement of construction at the project for US$10M.
Mr. Dorian L. (Dusty) Nicol, [CPG 10875], Honey Badger Silver’s CEO and a Qualified Person under NI 43-101, has reviewed and approved the scientific and technical disclosure contained herein. A qualified person has not done sufficient work to classify the historic estimate as a current mineral resource and the Company is not treating the historical estimate as a current mineral resource.