Silver Hart Property

SILVER HART PROPERTY

CMC holds a 100 percent interest in the Silver Hart Property located 132 kilometers west of Watson Lake and encompasses 2174.06 Ha of 116 contiguous full and partial mineral claims in the Watson Lake Mining District located in south-central Yukon, Canada. The property is located some 43km N of the Alaska Highway: it has been accessible via a seasonal access road and is adjacent to grid-connected power lines.

Historic work by CMC and its precursors has identified mineralization in least seven (7) zones of mineralization. Historically some 673 meters of underground workings, 20 trenches and over 8,000 meters of drilling have been completed. The company has spent some C$7M on exploration and a substantial camp has been established. Less than 7 percent of the area comprising the CMC claims have been explored, leaving potential for further discovery.

The company successfully extracted three bulk samples from 2011-2013 – each was crushed and flotation processed to concentrate at a mobile plant owned by the Company and located off site. The Company extracted the first 130.8 dry tonne bulk sample grading 4,568 grams per tonne silver (133.2 ounces per tonne) and 19.6 percent lead and received $445,000 (USD) for the product. During the 2012 fiscal year, the Company dispatched a second bulk sample of 114.1 dry tonnes and received $311,401 (USD). A third shipment of 268.6 dry tonnes was shipped in April, 2013 and the Company received $205,885 (USD). There has been no further activity since 2013, though the Company had applied for certain operating permits: these were not granted and the Company ceased activity owing to constrained equity markets and permitting delays.

The Company has been charged (2017) in the Yukon Territorial Court with offences under the Yukon Quartz Mining Act for failure to complete site reclamation at the Silver Hart Property in accordance with the operating plan before the expiry of the previous Mining Land Use Approval for the property. The reclamation relates to camp facilities and roads that will be utilized pursuant to a permit for a new exploration program sought by the Company. The Company has obtained legal advice and is considering its options in defending the charges and pursuing its applications to the Yukon Socio-Economic Assessment Board and Mineral Resources Branch to issues permits for an ongoing exploration program.