Note: the History of Hercules has been taken from the 43-101 Technical Report, dated September 7, 2012, by Doug McGibbon

The Hercules Property is situated within and on the margins of the Como mining district, located in Lyon County, Nevada. The Como district was worked as early as the late 1850s, before the famous Comstock Lode deposit was discovered about 10 miles (16 km.) to the north by prospectors following float upstream from placer gold deposits at Dayton. By the early 1860's the Como district was abandoned due to the rich lodes having been discovered at Virginia City (Russell, 1981). In the late 1880's the Hercules Mining Company explored the occurred with the excavation of another 1,500 feet (450 m) of underground workings.

Location MapNevadaMapAlthough no official records are available, based on the lack of large volumes of dump material and the size of the underground workings, this combined work may have produced approximately 5,000 ounces of gold and 20,000 ounces of silver. Average grades for this production are estimated to have been around 0.5 opt gold and 5 opt silver based on the required value for shipping ore during this period and recently reported underground sampling results (Goodall, 2003). An attempt was made to carry out a placer operation in the northeastern part of the property in the late 1970's to early 1980's. This project failed due to the very fine size of gold particles which prevented efficient gravity recovery (H. Duerr, oral communication). More of the recent exploration history of the property is described in Section 9, Exploration. However, none of the work detailed here or in Section 9 was for the benefit of or on behalf of Iconic.

Mr. Paul Noland completed a technical report on the property for Iconic's joint venture partner Willow Creek Enterprises, Inc. ("Willow Creek"), entitled "Hercules Project, Lyon County, Nevada, Revised Technical Report" and dated April 6, 2011 (the "WCE Report"), to ascertain the potential for the property and provide guidance in further drilling. The WCE Report included an historical estimate (the "Willow Creek Estimate" or 'WCE') which the author is not treating as a current mineral resource or mineral reserve under NI 43-101. The WCE Report described the Hercules property as containing a "drill indicated resource" of 24 million tons at an average grade of 0.024 opt Au-equivalent based on 0.010 opt Au-equivalent cut-off grade equating to approximately 580,000 contained ounces (470,000 ounces Au and 6,500,000 ounces Ag). The WCE Report also described an "inferred mineral resource" of approximately 24 million tons at an average grade of 0.021 opt Au-equivalent for approximately 527,000 contained ounces (427,000 ounces Au and 6,000,000 ounces Ag). Au-equivalent was calculated by adding the assayed Au value to 1/60 of the assayed Ag value. These "drill indicated resources", which the author is treating as a historical estimate, are referred to as the Willow Creek Estimate in this Technical Report. The Willow Creek Estimate was prepared prior to Iconic acquiring an interest in the Hercules property.

The WCE Report used methods to calculate the Willow Creek Estimate similar to an "indicated mineral resource" as identified in section 1.2 of NI 43-101. The Willow Creek Estimate was based on 113 of 221 drill holes distributed throughout four separate Target areas (West Cliffs, Loaves, Northeast and Hercules). Many of the earliest drill holes were assayed for gold only and were consequently removed from consideration in preparing the Willow Creek Estimate. The Willow Creek Estimate utilized polygons created on cross-sections of the existing drill holes. The polygons were projected to surface where surface trench sampling was available. This projection from drill intercept to the surface trenching has not been substantiated by drilling, or confirmed by known geology in most areas. In addition, the trench samples utilized composites of up to 50 feet or greater, which have not been verified sufficiently by resampling or 'twinning'. Consequently, this trench sampling is not suitable for a NI43-101 compliant resource estimate. The sections were spaced on 100 foot centers through the Hercules and Northeast areas and spaced at 200 foot intervals on the Loaves and West Cliffs areas. A gold equivalent was used based on the historic and unverified metallurgical work conducted in the mid 1980's. The reported and unverified recoveries in conjunction with the near surface, oxidized intercepts in historic drilling and trenching suggest the low cut-off grades may be an acceptable working hypothesis.

The WCE Report used methods to calculate an "inferred resource" in an equivalent manner as an "inferred mineral resource" identified in section 1.2 of NI 43-101. The method used to identify the "inferred resource" utilized some of the additional 221 drill holes not previously used in the Willow Creek Estimate, which is superseded by this report, as well as abundant surface sampling and geologic mapping of apparent undrilled extensions of alteration and veining from the four areas identified above. The inferred areas were restricted to obvious outcropping alteration and drill intercepts and did not include any significant areas of post-mineral cover.

Based on the above descriptions of the techniques and data used, the author believes that the Willow Creek Estimate in the WCE Report is an historical estimate and does not represent current mineral resources or mineral reserves under NI 43-101. The Willow Creek Estimate for the four Target areas were calculated by Willow Creek using wide spaced and close spaced drill holes with continuity between some areas only suggested by geology and alteration patterns. The author and QP of this report reviewed the historic WCE by examining the cross sections, mineral polygons utilized for the estimate, and drill and trench data. Based on this examination, the author determined that the WCE utilized methods, parameters and assumptions which did not rise to the level of an NI43-101 mineral resource. The author of this report did not review in detail the calculations used in the Willow Creek Estimate to verify their accuracy or validity, since he had already determined that the methods used would not allow the WCE to qualify as a NI43-101 mineral resource. A qualified person has not done sufficient work to classify the Willow Creek Estimate as current mineral resources or mineral reserves under NI 43-101. In addition, the WCE should not be relied upon due to the irregular and sometimes widely spaced drill intercepts, unverifiable drill and trench composite samples, and the unsupported projection of mineral polygons between sections, between drill intercepts, down dip and along strike.

The Willow Creek Estimate is considered relevant only to the extent that it provides an indication that mineralization may exist within the property boundaries and as such it provides the four targets of exploration for Iconic going forward.

An NI 43-101 compliant resource at Hercules is not offered with this report. The author did calculate a resource for the Hercules project which utilized more sophisticated, computer modeling methods. However, this subsequent resource utilized the same drill and trench data as the WCE. These drill and trench data were later determined to be of insufficient spacing for a NI43-101 compliant resource, and could not be sufficiently v erified to the satisfaction of the BCSC. Consequently, that resource has not become part of the current report. Iconic has determined that historic and current drill spacing through the mineralized targets is not sufficient to support a compliant resource estimate. Additional twinning of historic drilling and trenching is also needed before historic data can be used to support a NI 43-101 resource.

Drilling and Exploration

Hercules 3D Model

 

The Project has at least 240 shallow historic drill holes, mostly within the Northeast target zone. Of the drilling which was conducted in 2011, 20 holes were attempted, however 18 holes were drilled to depth, and two holes were lost due to a cave-in at 20 m (70 feet), (Hole H16-11), and equipment failure on the second hole (H20-11). Drilling was performed to an average depth of 96 m (308 feet) of penetration per hole; with a true depth from the surface closer to an average of 67 m (215 feet) of penetration in the four target zones.

Hercules Proposed Drilling Targets 2015

Hercules Proposed Drilling Target 2014

Current Property Exploration

July 2015 Iconic completed initial outcrop rock chip channel sampling at Hercules and partial geochemical results have been received for these samples. Results are most complete for the Hercules Target, as shown in the table below. While the widespread intercepts of gold/silver grades consistent with gold/silver heap leaching in Nevada were expected, the discovery of high-grade gold/silver intercepts was unexpected. As shown in the table below, three +10 g/t (+0.3 oz/ton) gold assays were found including 3.35 metres (11 ft.) averaging 11.3 g/t (0.33 oz/ton) gold and 161 g/t (4.7 oz/ton) silver.

Wherever altered outcrops occur, channel rock chip sampling was done every 60 metres (200 ft.) over the 2.7 km (1.7 miles) in length and 1 km (0.6 miles) in width within the project area (a map showing the extent of the alteration and sample line locations is provided below). A total of 528 channel samples have been taken to date. The Hercules Target results shown below include 16 sample lines over a strike length of 760 metres (2,500 feet) and width of 150 metres (500 feet).

The Hercules Target results show extensive outcropping heap leach grade gold/silver values (≥ 0.005 oz/ton (0.17 g/t) gold equivalent) that will have a minimal stripping ratio if mined. The values will be used in a new NI 43-101 resource study to be completed after an upcoming drilling program.

The outcropping alteration was surveyed, logged and chip channel sampled, using 0.5-3.0 metre (1.5-10 feet) sample lengths. To ensure quality control, blanks and standards were added to each sample line before they were securely shipped to ALS Chemex, an ISO accredited geochemical laboratory.

Table: Surface Sampling at the Hercules Target

2015 Trench Results West Cliffs Target (≥ 1.5 feet @ ≥ 0.005 oz/ton gold equivalent)    07/21/15

 
 

Hole No.

From

To

Interval

True

Gold

Silver

True

Gold

Silver

Au Equiv.

 
 

(feet)

(feet)

(feet)

Width (ft.)

(oz/ton)

(oz/ton)

Width (m)

(g/t)

(g/t)

(oz/ton)

 

HT01

13.6

39

25.4

25.4

0.014

0.1

7.74

0.488

3.6

0.016

 

HT01

84

94

10.0

10.0

0.015

0.3

3.05

0.507

10.3

0.020

 

HT01

132

134

2.0

2.0

0.020

0.2

0.61

0.697

6.9

0.024

 

HT02

0

105

105.0

105.0

0.009

0.1

32.00

0.303

3.1

0.010

 

HT02

120

132

12.0

11.6

0.005

0.0

3.53

0.162

1.7

0.006

 

HT03

0

25

25.0

24.6

0.010

0.2

7.51

0.357

5.9

0.013

 

HT03

40

65

25.0

24.2

0.009

0.1

7.36

0.292

3.8

0.010

 

HT03

75

92

17.0

14.7

0.008

0.1

4.49

0.292

3.5

0.010

 

HT03

120

129

9.0

9.0

0.014

1.8

2.74

0.477

61.4

0.044

 

HT03

170

175

5.0

5.0

0.009

0.2

1.52

0.325

7.4

0.013

 

HT04

0

18

18.0

16.9

0.012

0.5

5.16

0.406

18.8

0.021

 

HT04

24

35

11.0

10.8

0.009

0.1

3.30

0.293

2.6

0.010

 

HT04

50

58

8.0

8.0

0.006

0.1

2.43

0.194

3.2

0.007

 

HT04

103

110

7.0

6.8

0.005

0.1

2.06

0.174

2.1

0.006

 

HT04

134

143

9.0

8.7

0.008

0.1

2.65

0.272

1.9

0.009

 

HT04A

0

40

40.0

28.3

0.008

0.1

8.62

0.259

2.6

0.009

 

HT04A

50

72

22.0

15.6

0.006

0.0

4.74

0.211

1.5

0.007

 

HT04A

77

85

8.0

5.7

0.023

0.2

1.72

0.78

6.2

0.026

 

HT05

0

25

25.0

24.6

0.008

0.1

7.51

0.280

2.7

0.009

 

HT05

35

55

20.0

19.3

0.005

0.0

5.89

0.172

1.4

0.006

 

HT05

60

65

5.0

5.0

0.017

0.0

1.52

0.566

1.1

0.017

 

HT05

78

90

12.0

12.0

0.004

0.1

3.66

0.154

3.7

0.006

 

HT05

100

108

8.0

8.0

0.006

0.0

2.44

0.210

1.5

0.007

 

HT06

0

25

25.0

25.0

0.006

0.1

7.62

0.217

4.7

0.009

 

HT06

40

50

10.0

10.0

0.005

0.0

3.05

0.187

1.7

0.006

 

HT06

55

90

35.0

35.0

0.012

0.1

10.67

0.425

2.1

0.013

 

HT06

95

115

20.0

20.0

0.017

0.1

6.10

0.591

3.2

0.019

 

HT07

0

5

5.0

5.0

0.005

0.0

1.52

0.159

0.8

0.005

 

HT07

15

25

10.0

10.0

0.015

0.1

3.05

0.498

2.9

0.016

 

HT07

30

35

5.0

4.9

0.055

0.0

1.50

1.900

1.6

0.056

 

HT07

38

50

12.0

11.8

0.019

0.2

3.60

0.643

5.2

0.021

 

HT07

55

60

5.0

5.0

0.008

0.1

1.52

0.281

2.2

0.009

 

HT07

90

95

5.0

5.0

0.004

0.0

1.52

0.142

1.7

0.005

 

HT07

105

110

5.0

5.0

0.005

0.1

1.52

0.186

2.2

0.006

 

HT07

115

120

5.0

5.0

0.010

0.0

1.52

0.335

1.2

0.010

 

HT07

130

149

19.0

19.0

0.010

0.1

5.79

0.348

4.0

0.012

 

HT08

0

5

5.0

4.5

0.006

0.1

1.38

0.222

2.5

0.008

 

HT08

9.6

37

27.4

24.8

0.020

0.3

7.57

0.687

8.9

0.024

 

HT08

55

63

8.0

8.0

0.021

0.2

2.44

0.731

5.4

0.024

 

HT09

0

20

20.0

20.0

0.024

0.1

6.10

0.840

4.2

0.027

 

HT10

10

15

5.0

5.0

0.011

0.1

1.52

0.388

3.1

0.013

 

HT11

5

10

5.0

5.0

0.011

0.0

1.52

0.388

1.7

0.012

 

HT11

20

73

53.0

37.5

0.007

0.1

11.42

0.247

2.2

0.008

 

HT12

5

18

13.0

13.0

0.031

0.1

3.96

1.054

2.0

0.032

 

HT13

0

33

33.0

33.0

0.005

0.1

10.06

0.181

2.3

0.006

 

HT13

40

50

10.0

10.0

0.006

0.0

3.05

0.204

1.3

0.007

 

HT13

60

70

10.0

10.0

0.014

0.1

3.05

0.488

3.0

0.016

 

HT13

90

156

66.0

66.0

0.024

0.3

20.12

0.824

11.4

0.030

 

HT14

0

54

54.0

54.0

0.011

0.1

16.46

0.375

3.8

0.013

 

HT14

75

83

8.0

8.0

0.022

0.4

2.44

0.743

12.4

0.028

 

HT14

107

112

5.0

5.0

0.008

0.1

1.52

0.261

3.5

0.009

 

HT14

117

120

3.0

3.0

0.011

0.1

0.91

0.388

4.4

0.013

 

HT14

138

140

2.0

2.0

0.023

0.4

0.61

0.805

15.0

0.031

 

HT15

0

30

30.0

29.6

0.005

0.0

9.01

0.173

0.9

0.005

 

HT15

50

65

15.0

14.8

0.007

0.1

4.50

0.228

1.8

0.008

 

HT15

75

80

5.0

4.9

0.005

0.0

1.50

0.163

1.0

0.005

 

HT15

90

110

20.0

19.7

0.006

0.1

6.00

0.199

3.0

0.007

 

HT16

5

15

10

10.0

0.021

0.2

3.05

0.734

7.0

0.025

 

HT16

25

35

10

10.0

0.008

0.1

3.05

0.264

4.2

0.010

 

HT16

50

91

41.0

38.5

0.018

0.1

11.75

0.622

3.4

0.020

 

HT16

105

118

13.0

12.2

0.031

0.2

3.72

1.055

6.8

0.034

 

HT16A

0

11

11.0

7.8

0.018

0.2

2.37

0.629

7.5

0.022

 

HT17

0

5

5.0

4.9

0.006

0.7

1.50

0.220

23.1

0.018

 

HT17

26

31.5

5.5

5.4

0.004

0.0

1.65

0.148

1.5

0.005

 

HT18

0

25

25.0

23.5

0.007

0.3

7.16

0.246

9.2

0.012

 

Note: Au Equiv. calculation uses Au/Ag ratio of 1/60

 

Hercules Alteration and Surface Trenching 2015

Herc Alteration Veins Surface Sampling July 21, 2015

Geology and Resource Map

Hercules  GeoResource Areas

Target Areas

target area map


Hercules Target Area

The Hercules target area was explored by eight holes, seven of which were placed within the target area (H01-11 through H06-11) identified in the April 6, 2011, non-compliant NI 43-101 technical report. These holes were spaced from 47 m to 78 m (150 ft to 250 ft) apart and offset historic drill holes.

Holes H01-11 through H04-11 and H06-11 encountered significant thicknesses of low grade gold and silver mineralization, with occasional higher grade intercepts. The mineralization was dominantly composed of silicified volcanic rocks with occasional interval grading 8.87 g/t gold (0.313 oz) and 6.2 g/t silver (0.219 oz). Several additional 1.56 m (5 ft) intervals in H01-11 and H02-11 intersected +3 g/t gold (0.11 oz). Holes 01-11 through H04-11 although terminated prematurely, presented anomalous to highly anomalous gold.


 Hercules Cross Section Map

hercules cross section


Northeast Target Area

Two holes were targeted in the Northeast target area. Holes H08-11 and H09-11 offset mineralized drill holes from 2007. The holes offset previous mineralized drill holes by 31m to 62.5 m (100 to 200 ft). Similar thickness and grade was confirmed in both drill holes. Mineralization is associated with chalcedonic silicification of volcanic and volcano-clastic sediments.

Northeast Cross Section Map

Northeast Target Cross Section


West Cliffs Target Area

The West Cliffs target area, had nine holes completed which offset known mineralization. The original drilling at West Cliffs had been located on roughly 125 m (400 ft) spacings. The 2011 drill holes were located on roughly 62.5 m (200 ft) spacings from historic holes. This effectively infilled about one third of the target area at West Cliffs.

Higher grade veins occur within the low grade mineralization over 3.1 m to 4.69 m (10 to 15 ft) widths. These veins average 2 to 3 g/t gold (0.07 to 0.11 oz/t) and up to 50 g/t (1.76 oz/t) silver. The primary alteration feature in this area is composed of pervasive silicification with occasional quartz-calcite veining and quartz stockworks cementing breccias.

Westcliffs Cross Section Map

Westcliffs Cross Section


Loaves Target Area

Hole H19-11 tested the northern portion of the Loaves target area. The hole was lost at 96.9 m (315 ft) due to cave-in. Alteration is intermittent throughout the hole. Quartz veining and chalcedonic silicification are prevalent over 6 to 9.1 m (20 to 30 ft) intervals. Assays are pending.

Loaves Cross Section Map

Loaves Cross Section


Drilling Results

Hercules Target

Hole #

From (m)

To (m)

Interval (m)

Au g/t

Ag g/t

AuEq g/t

Total Depth (m)

H01-11

0.0

16.8

16.8

1.25

32.8

1.79

91.4

 

21.3

29.0

7.6

0.41

5.8

0.51

 

H02-11

0.0

24.4

24.4

0.55

7.4

0.66

85.3

Incl

0.0

7.6

7.6

1.09

8.4

1.23

 
 

64.0

85.3

21.3

0.55

5.9

0.65

 

Incl

68.6

77.7

9.1

0.94

10.8

1.12

 

H03-11

12.2

13.7

1.5

0.47

1.9

0.50

91.4

 

19.8

24.4

4.6

0.31

6.8

0.42

 
 

35.1

47.2

12.2

1.57

5.7

1.66

 

Incl

39.6

42.7

3.1

5.23

5.2

5.32

 
 

70.1

89.9

19.8

0.50

6.1

0.60

 

H04-11

18.3

19.8

1.5

0.33

2.5

0.38

91.4

 

33.5

44.2

10.7

0.28

5.4

0.37

 
 

54.9

59.4

4.6

0.27

2.6

0.32

 
 

79.2

91.4

12.2

0.35

2.8

0.40

 

Incl

88.4

91.4

3.1

0.58

3.9

0.64

 

H05-11

12.2

16.8

4.6

0.50

1.9

0.53

94.5

 

25.9

29.0

3.1

0.64

3.7

0.70

 

H06-11

19.8

80.8

61.0

0.51

7.5

0.64

97.6

H07-11

7.6

22.9

15.2

0.27

2.7

0.32

91.4

H20-11

Hole terminated due to broken cable

   

4.6

               

Northeast Target

Hole #

From (m)

To (m)

Interval (m)

Au g/t

Ag g/t

AuEq g/t

Total Depth (m)

H08-11

36.6

61.0

24.4

0.49

2.6

0.54

134.1

Incl

36.6

44.2

7.6

1.12

4.8

1.20

 

H09-11

32.0

44.2

12.2

0.48

3.5

0.54

91.5

Incl

32.0

36.6

4.6

0.95

6.9

1.07

 
               

West Cliff Targets

Hole #

From (m)

To (m)

Interval (m)

Au g/t

Ag g/t

AuEq g/t

Total Depth (m)

H10-11

9.1

21.3

12.2

0.28

13.9

0.51

94.5

 

53.3

70.1

16.8

0.16

2.9

0.21

 
 

71.6

85.3

16.8

0.29

16.3

0.56

 

H11-11

71.6

93.0

21.3

0.89

9.5

1.05

137.2

Incl

71.6

86.9

15.2

1.05

12.1

1.26

 

Incl

82.3

85.4

3.0

3.08

52.1

3.95

 
 

88.4

93.0

4.6

0.62

3.7

0.68

 

H12-11

19.8

33.5

13.7

0.73

7.1

0.85

110.0

 

38.1

45.7

7.6

0.29

2

0.32

 
 

61.0

77.7

16.8

0.64

6.2

0.75

 
 

71.6

76.2

4.6

1.78

16.5

2.06

 

H13-11

22.9

24.4

1.5

0.37

0.5

0.38

91.4

 

36.6

41.2

4.57

0.32

16.8

0.60

 
 

70.1

77.7

10.7

0.32

4.5

0.39

 

H14-11

7.6

15.2

7.6

0.25

2.5

0.29

115.8

 

39.6

41.2

1.5

0.37

1.3

0.40

 
 

45.7

59.4

13.7

0.45

4.8

0.53

 
 

83.8

94.5

10.7

0.43

2.6

0.47

 
 

83.8

86.9

3.0

1.07

6.1

1.18

 
 

Above includes no sample from 290 to 295

     

H15-11

30.5

47.2

16.8

0.36

9.0

0.51

91.5

H16-11

NS - Hole terminated at 21.3 meters due to cave-in

 

21.3

H17-11

42.7

45.8

3.0

0.51

2.2

0.55

106.7

H18-11

9.1

12.2

3.0

0.79

1.2

0.81

143.3

 

36.6

42.7

6.1

0.44

6.4

0.55

 
 

59.4

143.3

83.8

0.28

4.9

0.36

 
 

59.4

71.6

12.2

0.38

15.3

0.63

 
 

103.6

105.2

1.5

1.17

0.0

1.17

 
 

103.6

134.1

21.3

0.34

3.3

0.40

 

Loaves Target

Hole #

From (m)

To (m)

Interval (m)

Au g/t

Ag g/t

AuEq g/t

Total Depth (m)

H19-11

9.1

12.2

3.0

0.44

1

0.46

96.0

 

24.4

29.0

4.6

0.31

1.6

0.34

 
 

62.5

72.7

15.2

0.54

3.2

0.59

 
 

62.5

96.0

15.2

0.24

1.5

0.27

 
         

Total depth

1880.6

         

Average depth

93.9

All scientific or technical information contained in this website has been reviewed and approved by Mr. Richard Kern, P. Geo., a director and the Vice President of Exploration of Iconic Minerals Ltd., who is a "qualified person" as defined in National Instrument 43-101 of the Canadian Securities Administrators.

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Iconic Minerals Ltd is an exploration company focused on acquiring and exploring precious metal and Lithium projects in North America, primarily in Nevada, USA.

Address

303 - 595 Howe Street
Vancouver BC V6C 2T5 Canada
Phone: +1 604 336 8614

www.iconicmineralsltd.com