MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
The following Management’s Discussion and Analysis (“MD&A”) is a review by management (“Management”) of the operations, results, and financial position of Avidian Gold Corp. (“Avidian” or the “Company”) for the year ended June 30, 2021 (the “Reporting Period”). This MD&A is prepared as of October 28, 2021, unless otherwise indicated, and should be read in conjunction with the Company’s audited financial statements and related notes for the year ended June 30, 2021 (“Reporting Period”) and (“Annual Financial Statements”), which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board (“IASB”). All figures are presented in United States dollars (“$”) unless otherwise indicated. Additional information relevant to the activities of the Company has been filed electronically through the System for Electronic Document Analysis and Retrieval (“SEDAR”) – http://www.sedar.comand are also available on the Company’s website http://www.avidiangold.com.
Forward-looking statements look into the future and provide an opinion as to the effect of certain events and trends on the business. Forward-looking statements may include words such as “plans”, “intends”, “anticipates”, “should”, “estimates”, “expects”, “believes”, “indicates”, “suggests” and similar expressions.
This MD&A contains forward-looking statements. These forward-looking statements are based on current expectations and various estimates, factors and assumptions, and involve known and unknown risks, uncertainties and other factors. Information concerning mineral resource estimates and the interpretation of drill results may also be considered as forward-looking statements as such information constitutes a prediction of what mineralization might be found to be present if and when a project is actually developed.
Readers are cautioned not to place undue reliance on forward-looking these statements as the Company’s actual results, performance or achievements may differ materially from any future results, performance or achievements expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company’s business, or if the Company’s estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that forward-looking statements will materialize. Factors that could cause results or events to differ materially from current expectations expressed or implied by the forward-looking statements, include, but are not limited to, possible variations in mineral resources, labour disputes, operating or capital costs; availability of sufficient financing to fund planned or further required work in a timely manner and on acceptable terms; failure of equipment or processes to operate as anticipated; and political, regulatory, environmental and other risks of the mining industry.
Subject to applicable laws, the Company assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events or any other reason.
For a description of material factors that could cause the Company’s actual results to differ materially from the forward-looking statements in this MD&A, please see “Risks and Uncertainties” in Section 4.15.
- HIGHLIGHTS EXPLORATION
- At Amanita property, Alaska:
During the Reporting Period the following work was completed.
- Completed a high-resolution drone magnetic survey (443.6 line km) over the entire property at 50 metre (“m”) line spacing with selected areas flown at a 25 m line spacing;
- Completed a helicopter-borne LiDAR survey over the entire property;
- Completed nine HQ-diameter oriented core holes for a total of 1,945 m;
- Gold mineralization was encountered in all holes with highlights as follows:
- 22.72 m of 3.11 g/t Au (includes 12.87 m of 6.23 g/t Au) in Hole AM20-02 (this intersection occurs approximately 60 m below Trench D-West, which returned 27.0 m of 4.22 g/t Au);
- 24.21 m of 1.30 g/t Au in hole AM20-03, approximately 60 m below surface, that includes a higher grade intersection of 5.77 m of 2.64 g/t Au, and,
- 2.93 m of 4.26 g/t Au in Hole AM-20-08 approximately 10 m below surface, including 1.50 m of 8.07 g/t Au.
- Drill hole and surface trench structural analysis was completed detailing the structural controls to the gold mineralization and outlined follow up drill targets.
- At Golden Zone property, Alaska:
During the Reporting Period in 2021 the following work was completed.
- A helicopter LiDAR and Orthophoto survey was flown over the entire property.
- A 588.7 line km Drone-Mag magnetometer survey was flown over the northern portion of the property covering the Breccia Pipe Deposit area.
- Staked an additional 1,975 hectares (4,880 acres) of claims adjoining the southwestern portion of the property along the strike extension of the newly discovered MJ mineral occurrence (grab samples of 5.17 g/t Au and 4.2 g/t Au plus 2.77% Cu) extending the mineralized trend to 19 kilometres in strike length and overall property size to 125.3 sq km. Three mineral occurrences are located on the newly staked area known as Silver Kitty, Ready Cash and Canyon Creek.
- Immediately west of the Silver Kitty occurrence, described as a chalcopyrite-bearing and sphalerite-bearing skarn adjacent to a porphyritic stock, a grab sample returned 12.5 g/t Au. This sample is located approximately 500 m southwest and on trend with the MJ discovery.
At the Ready Cash occurrence, a grab sample returned 0.4 g/t Au, 17.7 g/t Ag and 4.7% Cu.
It should be noted that, due to their selective nature, assay results from grab samples noted may not be representative of the overall grade and extent of mineralization on the subject areas. All drill core assays and trench results noted above are presented in core/sample lengths as at this time there is insufficient data with respect to the orientation of the mineralized intersections to calculate true widths.
Highlights of the exploration activities carried out on the property from July to September 2021 are as follows:
- 27 Reverse Circulation (“RC”) drill holes were completed on the property for 3,288 m;
- Of the 2021 RC holes completed, 17 were drilled on the Mayflower Extension Zone (“MEZ”), located adjacent to the Breccia Pipe Deposit, and established that the MEZ has been defined along a 600 m strike length and remains open at depth and to the northeast;
- 2,275 drill hole samples were collected and shipped to ALS Global for analysis, assays are pending
- A 1,200 line km drone magnetic survey was completed on the property, with interpretative results pending;
- Reconnaissance mapping and sampling was carried out in the south western portion of the property following up on the previous discoveries made at the JJ-J4 and MJ, that cover a strike length of approximately 4.5 km (see press release dated October 21, 2021); and
- 70 surface rock samples were collected during the above program with assays pending.
- At Amanita NE property, Alaska (“Amanita NE”)