CAM00191.jpg

Sheslay Property 

 

In order to accelerate the development of the Sheslay property, Firesteel entered into a definitive agreement on July 15th, 2013 with Prosper Gold Corp. (Prosper") (NEX: PGX.H), whereby Firesteel has granted the Company the option to acquire up to an 80% interest in the 6,829 hectare alkalic porphyry copper-gold Sheslay Property in northwest British Columbia. The Property, formerly called the Copper Creek Property, is located approximately 50 km northwest of Telegraph Creek, 100 km west of Dease Lake and 8 km from the Golden Bear mine access road. There is an airstrip on the Property. 

The Option Agreement

Under the terms of the Option Agreement, Prosper has a first option to earn a 51% interest in the Property which may be exercised by:

 

 

 


Prosper has a second option to earn an additional 19% interest, thereby increasing its total interest in the Property to 70%, which may be exercised by:
 

 

 

 

 

Prosper has a third option to earn an additional 10% interest, thereby increasing its total interest in the Property to 80%, which may be exercised by:

 

 

 

 

 


Because of its past successes and strong management team Prosper has been appointed as the operator of the Property and has the exclusive and sole responsibility of administering and carrying out the exploration programs on the Property. 

Additionally, the parties have agreed that upon the interests in the Property becoming first determinable, a joint venture will be deemed to have automatically formed and the parties will negotiate in good faith to enter into a formal joint venture agreement.

About The Sheslay Property (formerly known as the Copper Creek property)

The Property is located within the Stikine Arch, a region that hosts a number of significant porphyry copper-gold deposits, including: the Red Chris Deposit containing 446,100,000 tonnes @ 0.36% Cu and 0.29 g/t Au, the recent Colorado Resources Ltd copper--gold discovery based on discovery hole NR 13-001 @ 0.63% Cu and 0.85 grams g/t Au over 242 metres and the Galore Creek Deposit @ 785,700,000 tonnes grading 0.52% Cu, 0.29 g/t Au and 4.9 g/t Ag. Firesteel's qualified person has been unable to verify the above information and it is not necessarily indicative of the mineralization on the Property.

Five permitted and drill ready mineralized copper -- gold bearing porphyry bodies have been identified to date on the Property: (Star, North Star, East Star, Copper Creek and Pyrrhotite Creek). Four of the five porphyry bodies are clustered within a 12 square kilometre Star target area and have varying degrees of historical work completed on them by different operators from the 1970's to 2007. The Pyrrhotite Creek porphyry appears to be located in a second distinct multiple target area to the southwest.

Field work is anticipated to commence in mid-July, inclusive of regional scale soil geochemistry, prospecting and trenching to be completed in association with a 12 square kilometre detailed IP survey. A 5,000 metre phase -- 1 drill program is scheduled to commence in early August.

Star Target

 

 

 

 

                                               Hole Number    From (collar)    To (EOH)    Interval Cu      Au      m m m % g/t
                                             

                                                  CC2004-01            3.00              239.90         236.90         0.32         0.18

                                                  CC2004-01a          0.00              22.90           22.90           0.52         0.17

                                                  CC2004-02            0.00             173.10         173.10          0.41         0.17

                                                  CC2004-03            0.00             240.80         240.80          0.23         0.06
                                                  CC2004-04            0.00             108.50         108.50          0.19         0.06
                                                  CC2004-05            0.00             242.30         242.30          0.44         0.32
                                                  CC2004-06            0.00             190.20         190.20          0.41         0.22
                                                  CC2004-06a          0.00             22.00           22.00            0.33        
0.17

                                                  CC2004-07            1.00             330.40         329.40          0.32         0.11
                                                  CC2005-08            3.80             145.10         141.30          0.36         0.27
                                                  CC2005-09            3.00             145.08         142.08          0.44         0.25
                                                  CC2005-10            3.65             124.05         120.40          0.28         0.11
                                                  CC2005-11            1.50             118.87         117.36          0.34         0.14
                                                  CC2005-11a          1.25             15.24           13.99            0.47         0.25
                                                  CC2005-12            1.58             122.53         120.95          0.33         0.22
                                                  CC2005-13            1.50             118.87         117.37          0.21         0.09
                                                  CC2005-14            0.91             120.40         119.49          0.06         0.06
                                                  CC2005-15            1.52             158.50         156.98          0.29         0.22
                                                  CC2005-16            3.66             134.72         131.06          0.26         0.15
                                                  CC2005-17            2.20             106.05         103.85          0.36         0.21
                                                  CC2005-18            0.00             106.68         106.68          0.32         0.28
                                                  CC2005-19            6.10             102.11         96.01            0.26         0.09
                                                  CC2007-011          2.74             337.41         334.67           0.35         0.17
                                                  CC2007-021          2.74             223.10         220.36           0.42         0.21
                                                  CC2007-03            0.00            128.66         128.66            0.37         0.13
                                                  CC2007-041          3.04             293.21         290.17           0.41         0.19


1 includes hole extensions; note that overlapping footages has occurred in some cases, due to re-entering holes in badly fractured ground.

 

 

 

 


Prosper Gold intends to complete a deep penetration IP survey over the entire 12 square kilometre target area in advance of drilling off the Star porphyry on a systematic basis and to depth.

The North Star, East Star, and Copper Creek targets warrant additional surface work in advance of drill target selection.

North Star Target

 

 

 


East Star Target
 

 

 

 

 


Copper Creek Target
 

 

 

 


Six holes (total 1,050 metres) were drilled in 1970 with a best intersection of 0.48% Cu over 43.6 metres. 

Pyrrhotite Creek Target 

 

 

 

 


The Property has five robust drill targets with substantial indications of robust copper and gold concentrations at each. Road building for access, soil and rock sampling and trenching have been carried out as well as geophysical surveys including magnetometre, IP and EM. Only three of the porphyry bodies have been drilled sporadically and only one, Star, tested to depth. 

A three-year area based permit to build drill pads and drill from 10 sites is in place and good until March 2014. Prosper has written approval from Firesteel to use this permit. 

The geological information for the Sheslay property has been verified by Paul Sarjeant, P.Geo., who is the Qualified Person for Firesteel Resources Inc. under NI 43-101.