Genesis Metals: Geology

Potential to Unlock Significant Exploration Upside

The Chapais-Chibougamau region is geologically located within the Superior Province of the Canadian Shield. The rocks are Archean greenstone belonging to the Roy group, predominantly volcanics and sediments. Several fault systems have been identified having a northeast trend. The mineralization at Chevrier is hosted within the Fancamp Deformation Corridor along such a trend, within quartz veins that have intruded felsic to intermediate volcanics and discordant gabbro bodies.

Mineralization

The Chevrier and Chevrier South deposits were interpreted by Met-Chem in their 2010 Technical Report to be of the stockwork-disseminated Porgera type of deposit, similar to those of the Andacolla mining camp or the East Malartic mine.

Gold occurs primarily within a shear zone several meters wide that contains abundant quartz-carbonate veins primarily hosted in gabbro and felsic porphyry units, rich in pyrite. Visible gold is present within the quartz veins. Mineralization in the South Zone is similar although hosted predominantly in tuff and intermediate to felsic volcanic rocks. Both zones are highly deformed with strong alteration to sericite, carbonate and chlorite.

Met-Chem interprets the system hosting the gold mineralization at Chevrier as an anastomosing arrangement of barren and mineralized shears. The mineralized structures within the shear zone are taken by Met-Chem to form a large-scale, isoclinal, refolded fold with sub-vertical mineralized shoots controlled by the second-phase folds.

Geological Model

Genesis has completed an interpretation of all drilling data. This has resulted in a new geological model that identifies the key controls on gold mineralization within the Main Zone. Highlights of this model are:

The mineralization extends over a currently defined total strike length of more than 1.2 km and shows vertical continuity to a depth of 525m. It is still open at depth.
The width of mineralized rock package, which comprises several sub-parallel lenses, is approximately 250 meters.
Gold grades are associated with quartz, ankeritie, sericite, pyrite, fuchite, and tourmaline alteration. Those alteration minerals are present in both veins/veinlets and host rock.
The bulk of gold mineralization is hosted in a gabbro, but is in close proximity to the host rock contact. This is typical of Archean, shear-hosted, orogenic lode gold deposits.
The Principal Zone consisting of two bodies within the broader mineralized envelope is up to 35.0 m true thickness.
In addition several Sub-zones have been identified which have potential for additional resources
Genesis believes that the Main Zone displays similarities to the style of mineralization encountered at the Goldex Mine of Agnico Eagle located near Val d’Or, Quebec.

The figures below provide snapshots in both plan and section of the new geological interpretation.

Chevrier Plan View showing Mineralized Zones

(Zones defined by 0.3 g/t Au grade shell)