Porphyry-Style Copper-Gold Mineralization is Intersected at ArcWest's Oxide Peak Copper-Gold Project, Toodoggone District, B.C.

Vancouver, British Columbia--(Newsfile Corp. - July 25, 2023) - ArcWest Exploration Inc. (TSXV: AWX) ("ArcWest") is pleased to announce that partner funded exploration drilling has intersected porphyry-style copper-gold-molybdenum ("Cu-Au-Mo") mineralization on its Oxide Peak project, situated in British Columbia's Toodoggone District, northern B.C. The project is being advanced by partner TDG Gold as part of an Earn-In Agreement (see ArcWest news release December 23, 2019). The Toodoggone region hosts extensive Early Jurassic porphyry Cu-Au and epithermal gold-silver (Au-Ag) mineralization including several past producing Au-Ag mines (Baker, Lawyers, Shasta) and the Kemess Au-Cu porphyry deposits (Centerra Gold). The southern half of the Oxide Peak project adjoins Benchmark Metals, which recently completed a Preliminary Economic Assessment of the Lawyers gold-silver deposit (Benchmark Metals News Release August 16, 2022). Historical production in the district exceeds 3.2 million ounces of gold and 360,000 tonnes of copper.

Highlights

• Partner funded exploration at Oxide Peak in 2022 included 1021.5 meters of drilling from two drill holes collared at -45 and -60 inclination from the same drill site, located 500 meters southwest of and 240 meters elevation above outcropping chalcopyrite mineralization in Oxide Creek.

• Drilling intersected broad intervals of intensely quartz-sericite-pyrite (QSP) altered volcanic rocks cut by multistage quartz, sulfide and gypsum veins and stockworks. Core sampling returning assay values up to 0.33 grams per tonne (g/t) Au and 0.23% Cu over 13 meters (see Table 2).

• The more steeply inclined drill hole OP22-002 begins to transition to K-feldspar-magnetite-chlorite (possible relict potassic) alteration at around 414-432 meters downhole depth. This suggests potential for increasing Cu-Au-Mo grades with depth, as the system transitions from QSP to potassic alteration.

TDG is operator for exploration at Oxide Peak and is responsible for the design and implementation of exploration programs on the property.

Tyler Ruks, President and CEO of ArcWest commented, "ArcWest thanks our partner TDG Gold for advancing the Oxide Peak project. The 2022 drill program was the first ever drill test of the Oxide Peak porphyry Cu-Au system. Drilling indicates that Oxide Peak is underlain by intensely QSP altered volcanic rocks with local zones of strongly anomalous Cu-Mo-Au mineralization. Potential relict potassic alteration was intersected at approximately 400 m depth in hole 2, suggesting potential for increasing Cu-Au-Mo grades with depth as the system transitions from QSP to potassic alteration. At approximately 500 m northeast of and 240 m below the 2022 drilling, an outcropping zone of chalcopyrite mineralized, chlorite-epidote-pyrite/QSP altered monzodiorite hosted hydrothermal-magmatic breccias with relict potassic alteration remains untested by drilling. TDG's 2022 drill program further bolsters our thesis that the Oxide Peak target area is host to a large and highly underexplored porphyry Cu-Au system that is deserving of additional work."

Table 1: Oxide Peak 2022 drill hole locations

Table 2: Oxide Peak 2022 drill results (from TDG Gold Corp. news release dated June 1, 2023).

Previous exploration at Oxide Peak in 2020 outlined a 1.5 by 0.6 kilometer chargeability high partly co-extensive with a multi-element (gold, copper, molybdenum, lead, zinc, silver, arsenic, bismuth, tellurium) soil anomaly within an extensive zone of quartz-sericite-pyrite (QSP) and advanced argillic alteration surrounded by sericite-chlorite and propylitic alteration. Gold-arsenic-tellurium is anomalous at higher elevations, with copper-molybdenum generally lower, reflecting a vertical transition from epithermal to porphyry environments. At lower elevations along the northern periphery of the soil anomaly, copper values over 0.1% occur in multiple grab samples (outcrops) over 200 meters in Oxide Creek. Chalcopyrite mineralization is associated with multistage quartz-sulfide veining and relict K-feldspar-biotite-magnetite alteration hosted in variably brecciated, porphyritic monzodioritic intrusions. The initial drill test consisted of two drill holes from the same drill site, located 500 meters southwest of the Oxide Creek zone of porphyry-style copper mineralization. Outcropping porphyry Cu mineralization in Oxide Creek remains untested by drilling.

The 2022 Oxide Peak drill program intersected a sequence of highly altered volcanic rocks, cut by multiple plagioclase-biotite(-quartz) porphyry postmineral dykes. The volcanics are described as mainly rhyolite at shallow depths (including flow-banded rhyolite) and "undifferentiated" volcanics at deeper levels, with small intervals of dacite and ash tuff. In some cases, texturally destructive alteration has made it difficult to characterize the lithology.

Alteration of the volcanic rocks consists of variable silicification and sericite alteration at shallow depths to intense QSP alteration at depth. Intense QSP alteration is dominant in the volcanics from 283 meters to the end of the hole in OP22-001 and between 224 and 423 meters in OP22-022, and includes the intervals containing the strongest Cu-Au-Mo mineralization. The most strongly altered and mineralized zones contain multistage quartz, quartz-sulfide, and sulfide veining, with broad zones of intense gypsum stockwork logged below 434 meters in OP22-001, and below 320 meters in OP22-002. Strong K-feldspar, chlorite (possibly after biotite) and magnetite alteration was logged in OP22-002 below 414 meters downhole, variably overprinted by QSP alteration.

The style of alteration and veining, and association with Cu-Au-Mo mineralization at Oxide Peak is consistent with porphyry copper systems found elsewhere in the Toodoggone district. The dominance of QSP alteration associated with Cu-Au-Mo in these drill holes demonstrates that the potassic core was not tested by the 2022 drill program, and further drill testing along strike and at depth is required to adequately evaluate the system. Further, it is not clear that the causative intrusion generating the porphyry system was intersected, since the porphyry intrusions logged all appear to be post-mineral. At approximately 500 m northeast of and 240 m below the 2022 drilling, an outcropping zone of chalcopyrite mineralized, chlorite-epidote-pyrite/QSP altered monzodiorite hosted hydrothermal-magmatic breccias with relict potassic alteration remains untested by drilling.

Other early stage targets on the Oxide Peak project include the Falcon porphyry copper-gold target as well as several grassroots high grade gold-copper targets with gold values in grab samples up to 46.1 grams per tonne (see Oxide Peak presentation on ArcWest's web site for details).

Quality Assurance and Quality Control

Assay results from the 2022 drill program at Oxide Peak are from TDG Gold's news release dated June 1, 2023. A summary report, including drill logs, has been provided to ArcWest for review. ArcWest has reviewed neither the core, nor the final assays, and descriptions and interpretations of drill core as well as drilling and sampling methods provided in this news release are based solely on core logs and other documentation in Dorion (2022).

Drilling was completed between September 8th and October 13th, 2022 by Konaleen Drilling Ltd. Drill core was transported from the drill rig to TDG's Baker Camp core logging facility where recovery, recovery quality designation (RQD) and geological data including lithology, texture, alteration, mineralization, and structure were logged. Core samples were taken at average 1.8 meter intervals according to industry standard procedures. Sample bags were sealed with security numbered zip-ties and set aside for bagging in sealed polyfiber (rice) bags. These rice bags were taken by a TDG contractor to Bandstra Transportation systems (Prince George) and delivered to the laboratory preparation facility.

TDG verified the core sample results using a QA/QC program that involved inserting Certified Reference Materials ("CRM"), blank material ('Blanks') and field duplicates, as detailed in Dorion (2022). ArcWest has not verified these procedures, but believes that they are industry standard, and that the drilling results have been verified by a Qualified Person, as defined by NI 43-101, and are acceptable from a QA/QC perspective.

For the 2022 Oxide Peak drill core, TDG used SGS Canada's laboratory ("SGS") in Burnaby, British Columbia. SGS's quality system is accredited to the ISO/IEC 17025 which includes ISO 9001:2015. Drill core samples were prepped using standard procedures, and analyzed using the following SGS analytical methods:

• Au: 50g, fire assay, ICP-OES finish (GE_FAI50V5)
• 34 elements: two acid, aqua regia digestion, ICP-OES package (GE_ICP21B20)
• 34 elements: two acid, aqua regia digestion, ICP-MS package (GE_IMS21B20)
• 29 elements: sodium peroxide fusion, ICP-OES package (GE_ICP90A50)
• 29 elements: sodium peroxide fusion, combined ICP-OES and ICP-MS package (GE_IMS90A50)
• Sulfur (S): IR combustion (GE_CSA06V)

References

Dorion, S. (2022). 2022 Annual Report on the Oxide Peak Property Located in the Omineca Mining District, British Columbia.

About ArcWest Exploration Inc.

ArcWest Exploration is a project generator focused on porphyry copper-gold exploration opportunities throughout western North America. The company is in possession of seven 100% owned copper-gold projects throughout BC's premier porphyry copper-gold districts. These include ArcWest's Todd Creek and Oweegee Dome projects, which are two of the largest and most prospective land positions for copper-gold exploration in BC's prolific Golden Triangle. Oweegee Dome neighbours Seabridge Gold's supergiant KSM-Iron Cap-Snowfield porphyry copper-gold deposit and Todd Creek adjoins Newcrest Mining's Brucejack mine property. In March of 2022, Newcrest completed the acquisition of Pretium Resources and its high grade Brucejack gold-silver mine in a transaction valued at $3.5 billion. On May 14th, 2023, Newmont announced that it had entered into an agreement to acquire Newcrest in a $19 billion transaction, resulting in the creation of the world's largest gold miner. Several ArcWest projects are currently being advanced through earn-in and joint venture agreements; this includes an agreement with Freeport-McMoRan Mineral Properties Canada Inc. to advance ArcWest's 100% owned Todd Creek copper-gold project. The project generator model allows ArcWest to advance multiple exploration projects simultaneously; enhancing its chances of discovery while minimizing shareholder dilution. The company is managed by an experienced technical team with a track record of discovery and a reputation for attracting well-funded parties, including Freeport-McMoRan, Robert Friedland group companies, ITOCHU, Antofagasta and Teck.

Qualified Person

ArcWest's disclosure of a technical or scientific nature in this news release has been reviewed and approved by John Bradford, PGeo, Technical Advisor, who serves as a Qualified Person under the definition of National Instrument 43-101.

For further information please contact: Tyler Ruks, President and CEO at +1 (604) 638 3695.

Investors are cautioned that ArcWest Exploration Inc. has not verified the data from the Kemess, Baker-Shasta and Lawyers deposits. Further, the presence and style of mineralization on these properties is not necessarily indicative of similar mineralization on the ArcWest Exploration Inc. property. Historical assays from exploration programs on its properties have not been verified by ArcWest but have been cited from sources believed to be reliable.

This news release contains statements about ArcWest's expectations and are forward-looking in nature. As a result, they are subject to certain risks and uncertainties. Although ArcWest believes that the expectations reflected in these forward-looking statements are reasonable, undue reliance should not be placed on them as actual results may differ materially from the forward-looking statements. The forward-looking statements contained in this news release are made as of the date hereof, and ArcWest undertakes no obligation to update publicly or revise any forward-looking statements or information, except as required by law.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/174731