IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
The following management's discussion and analysis ("MD&A") is an overview of the activities of Irving Resources Inc. ("Irving" or the "Company") for the six months ended August 31, 2024. The MD&A is dated effective October 30, 2024, and should be read in conjunction with the unaudited condensed interim consolidated financial statements for the six months ended August 31, 2024 (the "Interim Financial Statements"). The reader should also refer to the Company's audited consolidated financial statements for the year ended February 29, 2024. Unless otherwise cited, references to dollar amounts are Canadian dollars and financial data has been prepared in accordance with International Financial Reporting Standards ("IFRS").
The Company recommends that readers consult the "Cautionary Statement and Forward-LookingStatement Disclaimer" on the last page of this report.
Additional information related to the Company is available on its website at www.IRVresources.comand on SEDAR+ at www.sedarplus.ca.
Description of Business
Irving is a junior exploration company with a focus on gold in Japan.
The Company was incorporated under the Business Corporation Act (British Columbia) on August 28, 2015, under the name 1047431 B.C. Ltd. and was a wholly-owned subsidiary of Gold Canyon Resources Inc. ("Gold Canyon"). On September 23, 2015, 1047431 B.C. Ltd. changed its name to Irving Resources Inc. On November 13, 2015, Irving, Gold Canyon and First Mining Finance Corp. ("First Mining") completed a plan of arrangement (the "Arrangement") under the Business Corporation Act (British Columbia) that resulted in Irving holding title to various exploration properties located in Africa.
As of the date of this report, the Company has five wholly-owned subsidiaries: Irving Resources GK ("Irving GK") in Japan; NIRV Resources GK ("NIRV") in Japan; Spring Stone Mining Corporation ("SSM") and Spring Stone Exploration Inc. ("SSE") in the Province of British Columbia; and Spring Take Limited ("STL") in Tanzania.
Technical Disclosure in the Management Discussion and Analysis
Dr. Quinton Hennigh, Ph.D., P.Geo., a qualified person pursuant to National Instrument 43-101Standards of Disclosure for Mineral Projects ("NI 43-101") who is acting as a technical adviser to, and a director of, Irving, is responsible for reviewing and approving the technical information in this MD&A.
Overall Performance
During the six months ended August 31, 2024, the Company recorded a comprehensive loss of $770,049. As at August 31, 2024, the Company had total assets of $50,555,734 and working capital of $3,389,335.
IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
Projects Update
Japan Properties
Omu Gold-Silver Project
The Company, through its wholly-owned Japan subsidiary, Irving GK, entered into an agreement granting it the right to purchase a 100% interest in a mining right for the Omui Property located in Hokkaido, Japan. The total purchase price for the mining right is JPY40,000,000 cash (CAD $477,000) and JPY10,000,000 (CAD $118,100) worth of the Company's common shares. During 2016, the Company paid JPY20,000,000 cash (CAD $245,000) towards the acquisition of this agreement. In August 2017, the Company paid the balance of JPY20,000,000 cash (CAD $232,000). In February 2018, the Company completed the acquisition when it issued 135,747 common shares. The mining right encompasses an area of roughly 2.98 sq km covering a young, Miocene-aged hot spring centre hosted by Tertiary-aged intermediate and felsic volcanic rocks.
To augment this land position, Irving GK filed a total of 57 prospecting licenses (including alluvial claims) covering an additional 173.93 sq km of prospective ground in the vicinity of the Omui Mine and including another past producing Au-Ag mine, Hokuryu, situated about seven km west of Omui. Acceptance of all prospecting and alluvial applications was granted by the Ministry of Economy, Trade and Industry ("METI") and a multi-step review started for final approval. Mitsui Mineral Development Engineering Co, Ltd ("MINDECO") is assisting the Company throughout the process.
In March 2023, the Company announced that it had discovered a new high-grade vein system in an area approximately 300m west of Hokuryu historic mine site and encountered substantial veining in a newly drilled diamond drill hole at Omui.
In June 2023, the Company announced high-grade assays from three diamond drill holes completed at Omui. Hole 22OMI-003, drilled from north to south at an inclination of -60 degrees to test a deep-rooted vertical resistivity anomaly, encountered two high-grade veins. The first, 13.87 gpt Au and 121.74 gpt Ag (15.43 gpt Au Eq) over 1.67m, started at a downhole depth of 378.91m, and the second, 8.49 gpt Au and
270.00 gpt Ag (11.95 gpt Au Eq) over 0.57m started at 490.20m. These intercepts, the two deepest yet encountered at the Nanko target, clearly demonstrate that high-grade veins extend in excess of 400m providing very encouraging confirmation that Omui is a deep-rooted vein system. True width of these veins is estimated at 50-70% of down-hole width.
Both veins display banded quartz with traces of ginguro, or silver sulphosalts. In 2020, similar banded veins were encountered much closer to surface in hole 20OMI-003 positioned above hole 22OMI-003. This included a 14.24m wide intercept grading 4.47 gpt Au Eq. The two new veins in 22OMI-003 do not appear to be connected to the much shallower vein in hole 20OMI-003, but may represent hanging wall splays off of this very large vein. More drilling is needed to evaluate this possibility.
Deep Test at Honpi
As a follow up test of the deep hydrothermal system discovered by drill hole 21OMI-002 completed in late 2021 at Honpi, Irving drilled 23OMI-001, a south-oriented hole inclined at -75 degrees, to crosscut this older hole. The silica sinter interval persisted for 14.40m and grades 0.58 gpt Au and 15.85 gpt Ag (0.79 gpt Au Eq), very strong values for this type of material. Underneath the sinter, nearly 57m of
2
IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
stockwork quartz veining grading 0.65 gpt Au and 7.09 gpt Ag (0.74 gpt Au Eq) was encountered. Based on these results, the Company believes the position of 23OMI-001 is peripheral to the main feeder zone at Honpi.
West Honpi Extension
In order to test the depth extension of West Honpi, Irving drilled hole 23OMI-002, a north-oriented hole inclined at -50 degrees. West Honpi Extension was encountered at the top of hole 21OMI-002 which encountered 9.88 gpt Au Eq over 9.90m. Hole 23OMI-002 encountered West Honpi Extension approximately 70m vertically beneath surface. This intercept includes 5.80 gpt Au and 13.80 gpt Ag (5.98 gpt Au Eq) over 2.00m within 1.91 gpt Au and 13.89 gpt Ag (2.08 gpt Au Eq) over 10.00m. Given the high quartz content of this interval, it is believed to be suitable for smelter flux material. True width is estimated at about 60% of down-hole width.
Assays from winter 2023 diamond drill holes are as follows:
From | Length | Au | Ag | Au Eq | Ag Eq | |||
Hole ID | (m) | To (m) | (m) | (gpt) | (gpt) | (gpt) | (gpt) | Comments |
22OMI- | ||||||||
003 | 24.50 | 25.57 | 1.07 | 0.74 | 5.41 | 0.81 | 63.47 | |
33.65 | 34.65 | 1.00 | 0.99 | 8.50 | 1.10 | 85.64 | ||
41.18 | 41.68 | 0.50 | 2.14 | 41.90 | 2.68 | 208.82 | ||
153.70 | 155.45 | 1.75 | 1.32 | 11.91 | 1.47 | 114.48 | ||
163.50 | 165.50 | 2.00 | 0.92 | 17.83 | 1.14 | 89.23 | ||
184.35 | 186.30 | 1.95 | 0.58 | 76.71 | 1.56 | 122.00 | ||
378.91 | 380.58 | 1.67 | 13.87 | 121.74 | 15.43 | 1203.82 | New Vein | |
including | 378.91 | 380.00 | 1.09 | 19.99 | 176.94 | 22.26 | 1736.44 | New Vein |
490.20 | 490.77 | 0.57 | 8.49 | 270.00 | 11.95 | 932.22 | New Vein | |
815.10 | 816.00 | 0.90 | 0.00 | 93.20 | 1.20 | 93.51 | ||
833.00 | 834.00 | 1.00 | 2.59 | 0.43 | 2.60 | 202.45 | ||
23OMI- | ||||||||
001 | 85.35 | 89.00 | 3.65 | 1.08 | 107.13 | 2.45 | 191.08 | |
102.85 | 104.30 | 1.45 | 0.55 | 7.61 | 0.64 | 50.16 | ||
119.50 | 133.90 | 14.40 | 0.58 | 15.85 | 0.79 | 61.42 | Sinter | |
including | 124.50 | 132.40 | 7.90 | 0.84 | 17.56 | 1.06 | 82.91 | Sinter |
144.55 | 201.50 | 56.95 | 0.65 | 7.09 | 0.74 | 58.09 | Stockwork | |
including | 146.40 | 152.00 | 5.60 | 0.87 | 8.67 | 0.98 | 76.46 | Stockwork |
and | 162.90 | 168.72 | 5.82 | 1.14 | 9.96 | 1.27 | 98.99 | Stockwork |
and | 194.70 | 200.37 | 5.67 | 1.11 | 8.83 | 1.22 | 95.31 | Stockwork |
239.56 | 243.50 | 3.94 | 0.25 | 38.03 | 0.73 | 57.14 | ||
261.00 | 263.90 | 2.90 | 1.60 | 32.69 | 2.02 | 157.87 | ||
23OMI- | ||||||||
002 | 30.00 | 36.39 | 6.39 | 0.59 | 7.05 | 0.68 | 52.78 | |
86.00 | 96.00 | 10.00 | 1.91 | 13.89 | 2.08 | 162.62 | W Honpi Ext | |
including | 88.00 | 90.00 | 2.00 | 5.80 | 13.80 | 5.98 | 466.20 | W Honpi Ext |
98.00 | 99.00 | 1.00 | 0.31 | 60.70 | 1.09 | 84.80 | ||
109.00 | 112.15 | 3.15 | 1.06 | 10.66 | 1.20 | 93.70 | ||
147.00 | 150.00 | 3.00 | 0.26 | 39.03 | 0.76 | 59.57 |
Au eq = Au + (Ag/78); Ag eq = Ag + (Au x 78); recovery of both Au and Ag is expected to be +95% as smelter flux
3
IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
Drill collar data:
Collar | Collar | |||||||
Hole No. | Type | Grid | Easting | Northing | Elevation | Depth | Azimuth | Angle |
WGS84- | ||||||||
22OMI-003 | Core | 54N | 651762.12 | 4932907.171 | 180.898 | 936.2 | 190° | -53° |
WGS84- | ||||||||
23OMI-001 | Core | 54N | 651530.7 | 4933262.647 | 170.375 | 400.03 | 165.1° | -75° |
WGS84- | ||||||||
23OMI-002 | Core | 54N | 651518.1 | 4933122.799 | 176.734 | 150 | 309.9° | -50° |
Omu Sinter
In August 2023, the Company announced that drilling at Omu Sinter had defined a robust deposit of silica with appreciable gold and silver, including an approximately 200m wide and 400m long silica sinter deposit. This terrace of silica starts at surface and is open to the north. Silica thicknesses range from a few metres up to 54.5m. Gold values in reported intervals range between 0.54-1.04 gpt, and silver, between 6-32 gpt. Gold equivalency ranges between 0.78-1.21gpt. Silica contents are high, commonly above 95%, making this exceptional quality for smelter flux. Deleterious elements including arsenic, antimony and mercury, are generally low also making this material attractive.
Silica-rich rock utilized for smelter flux has commercial value on the order of a few tens of dollars per tonne. With payable precious metals, paid in the range of 90-95%, significant value is added to this material. A robust precious metal-bearing silica deposit in Japan is viewed as having strategic value given the numerous smelters active in the country. Irving takes the view that Omu Sinter has ideal characteristics for smelter flux and is a potential important future source of such material. Assays from
Omu Sinter drilling are as follows:
From | To | Length | Gold | |
Hole | (m) | (m) | (m) | (gpt) |
19OMS- | ||||
008 | 5.70 | 8.70 | 3.00 | 0.88 |
19.50 | 21.90 | 2.40 | 0.71 | |
20OMS- | ||||
002 | 5.40 | 30.27 | 24.87 | 0.73 |
including | 8.60 | 28.30 | 19.70 | 0.82 |
33.60 | 36.73 | 3.13 | 0.73 | |
50.70 | 55.20 | 4.50 | 0.76 | |
21OMS- | ||||
004 | 4.90 | 59.40 | 54.50 | 0.54 |
including | 19.95 | 40.61 | 20.66 | 0.69 |
23OMS- | ||||
001 | 0.59 | 38.00 | 37.41 | 0.66 |
including | 8.50 | 25.55 | 17.05 | 0.96 |
23OMS- | ||||
004 | 4.10 | 6.85 | 2.75 | 0.66 |
23OMS- | ||||
005 | 0.40 | 30.90 | 30.50 | 0.63 |
including | 7.00 | 18.80 | 11.80 | 0.91 |
Silver
(gpt)
14.21
6.84
18.94
20.81
6.73
11.48
21.62
32.34
10.02
11.82
14.38
12.45
21.93
4
Gold Eq | Silica | Arsenic | Mercury | Antimony |
(gpt) | (%) | (ppm) | (ppm) | (ppm) |
1.06 | 97.97 | 8.27 | 0.86 | 262.67 |
0.80 | 95.86 | 85.88 | 2.60 | 259.68 |
0.97 | 94.00 | 28.69 | 3.51 | 67.80 |
1.09 | 93.96 | 33.10 | 2.71 | 55.97 |
0.82 | 97.92 | 7.66 | 3.05 | 317.02 |
0.91 | 97.40 | 10.02 | 14.13 | 160.97 |
0.82 | 91.74 | 27.17 | 2.68 | 84.87 |
1.10 | 95.92 | 28.51 | 3.02 | 138.46 |
0.79 | 97.98 | 22.84 | 4.42 | 106.27 |
1.11 | 98.22 | 17.87 | 6.47 | 109.63 |
0.84 | 96.28 | 27.82 | 1.30 | 80.17 |
0.79 | 93.46 | 293.01 | 5.90 | 142.98 |
1.19 | 87.25 | 658.75 | 8.45 | 184.72 |
IRVING RESOURCES INC. Management's Discussion and Analysis For the six months ended August 31, 2024
23OMS-
006
including
23OMS-
007
23OMS-
008
including
23OMS-
009
12.50 | 45.50 | 33.00 | 0.59 | 14.49 | 0.78 | 92.55 | 155.68 | 13.45 | 156.02 |
14.00 | 27.19 | 13.19 | 0.92 | 20.15 | 1.18 | 93.97 | 166.58 | 18.75 | 154.20 |
7.50 | 13.71 | 6.21 | 0.72 | 9.88 | 0.85 | 83.77 | 310.60 | 41.78 | 283.41 |
20.80 | 41.00 | 20.20 | 0.63 | 16.10 | 0.84 | 96.47 | 63.31 | 8.01 | 106.23 |
16.06 | 42.90 | 26.84 | 0.69 | 14.00 | 0.87 | 94.53 | 79.35 | 9.58 | 143.87 |
18.50 | 39.00 | 20.50 | 0.79 | 16.01 | 1.00 | 94.37 | 72.80 | 8.63 | 138.59 |
4.90 | 16.00 | 11.10 | 0.88 | 13.88 | 1.06 | 96.37 | 76.43 | 13.78 | 86.20 |
24.00 | 28.00 | 4.00 | 1.04 | 13.47 | 1.21 | 94.93 | 67.75 | 6.83 | 125.55 |
Au eq = Au + (Ag/78); Ag eq = Ag + (Au x 78); recovery of both Au and Ag is expected to be +95% as smelter flux
Drill collar data:
HoleID | Grid | CoordsOrigX | CoordsOrigY | Elev | DepthActual |
19OMS-008 | WGS84-54N | 651770.343 | 4941911.536 | 33.76 | 539 |
20OMS-002 | WGS84-54N | 651801.624 | 4941716.973 | 34.03 | 373.5 |
21OMS-004 | WGS84-54N | 651798.988 | 4941715.937 | 33.502 | 324 |
23OMS-001 | WGS84-54N | 651750.638 | 4941813.149 | 35.722 | 60.3 |
23OMS-004 | WGS84-54N | 651759.192 | 4941858.119 | 35.274 | 40.8 |
23OMS-005 | WGS84-54N | 651711.406 | 4941871.122 | 35.885 | 56.4 |
23OMS-006 | WGS84-54N | 651694.661 | 4941729.34 | 22.919 | 57.5 |
23OMS-007 | WGS84-54N | 651727.493 | 4941666.135 | 28.855 | 72.5 |
23OMS-008 | WGS84-54N | 651735.202 | 4941714.464 | 29.575 | 60.8 |
23OMS-009 | WGS84-54N | 651743.986 | 4941763.923 | 32.721 | 57.5 |
Over the past three years, the Company has purchased a total of 1.35 sq km of surface rights covering an area over the Omu Property for the total purchase price of JPY38,145,974 (CAD$458,279).
In addition, the Company entered into long-term leases of surface rights covering a total area of 1.06 sq km in an area over the Omui Property. The total costs for the initial five-year period is JPY10,637,140 (CAD$129,613). The leases are for a five-year term and can be extended for up to three additional five- year periods.
Securing ownership and long-term lease agreements of these key properties puts the Company in a strong position to advance the Omu project. These surface rights are considered critical for Irving to proceed with mining work.
Maruyama Initial Drill Test
Irving drilled one diamond drill hole, 23MAR-001B, testing a breccia pipe underneath the Maruyama silica sinter deposit at the Company's 100% controlled Omu gold-silver project, Hokkaido, Japan. A resistive zone forming the core of the pipe was identified in CSAMT data. This hole was oriented to 325° northwest
5
IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
at an angle of -52 degrees and reached a depth of 542.0 metres. Although this hole did not encounter high-grade precious metal mineralization, five strongly anomalous intervals of mineralization were encountered ranging from four to 58 metres in length (please refer to the table below). All of these zones of mineralization were associated with variably hydrothermally silicified diatreme breccia material. Given the very large size of the Maruyama sinter and its underlying breccia pipe, Irving is intrigued by these early results. Additional drill targets are being considered to follow up on these results.
Orientations of Drill Holes at Maruyama:
Hole No. | Collar | Collar | Elevation | Depth | Azimuth | Angle | |||||||||||||
Easting | Northing | ||||||||||||||||||
23MAR-001B | 643058.4 | 4936206 | 349.568 | 504 | 325° | -52° | |||||||||||||
Anomalous Mineralized Intercepts in Hole 23MAR-001B: | |||||||||||||||||||
From | Length | Au | Ag | AuEq | |||||||||||||||
Hole | (m) | To (m) | (m) | (gpt) | (gpt) | (gpt) | |||||||||||||
23MAR- | |||||||||||||||||||
001B | 247.30 | 251.30 | 4.00 | 0.67 | 1.58 | 0.69 | |||||||||||||
286.00 | 299.50 | 13.50 | 0.43 | 2.24 | 0.46 | ||||||||||||||
338.50 | 343.50 | 5.00 | 0.48 | 5.71 | 0.55 | ||||||||||||||
372.58 | 430.55 | 57.97 | 0.38 | 2.26 | 0.41 | ||||||||||||||
458.90 | 475.00 | 16.10 | 0.43 | 6.06 | 0.51 |
Au eq = Au + (Ag/80)
East Omui Extension Drill Test
Three diamond drill holes, 23OMI-003,23OMI-004 and 23OMI-005m were completed in an area east of the Omui mining license testing for vein extensions. Various steeply oriented resistive anomalies observed in CSAMT data were targeted (refer to table below for drill hole orientations). Narrow vein intercepts were encountered in each of these three holes, albeit generally lower grade and narrower than veins encountered in recent drilling within the centre area of the Omui mining license (please refer to the table below). Best results from each hole include (true widths are not known at this time):
- 1.00 m grading 7.13 gpt Au and 0.31 gpt Ag (7.13 gpt AuEq) in hole 23OMI-003
- 1.00 m grading 1.47 gpt Au and 143.00 gpt Ag (3.26 gpt AuEq) in hole 23OMI-004
- 0.70 m grading 2.85 gpt Au and 145.00 gpt Ag (4.66 gpt AuEq) in hole 23OMI-005
Also, a 24.5 m silicified interval grading 0.40 gpt Au and 25.81 gpt Ag (0.72 gpt AuEq) was encountered at the top of hole 23OMI-004. Such shallow silicified rock is common to the west where it has been encountered in multiple drill holes around the Nanko area. Such rock is probably the erosional remains of a sinter terrace that once capped the feeder veins of Nanko. Irving is considering its next step for
6
IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
drilling in this area as well as other locations where veins are projected to extend beyond the Omui mining license.
Orientations of Drill Holes at the East Omui Extension:
Hole No. | Collar | Collar | Elevation | Depth | Azimuth | Angle |
Easting | Northing | |||||
23OMI-003 | 653064.436 | 4932451.533 | 141.762 | 753.50 | 165° | -50° |
23OMI-004 | 652206.562 | 4932654.854 | 151.834 | 851.06 | 0° | -52° |
23OMI-005 | 652007.927 | 4932674.760 | 157.956 | 677.00 | 175° | -60° |
Significant Mineralized Intercepts in Holes Completed at the East Omui Extension:
From | Length | Au | Ag | AuEq | ||
Hole | (m) | To (m) | (m) | (gpt) | (gpt) | (gpt) |
23OMI- | ||||||
003 | 37.50 | 38.50 | 1.00 | 7.13 | 0.31 | 7.13 |
23OMI- | ||||||
004 | 3.50 | 28.00 | 24.50 | 0.40 | 25.81 | 0.72 |
includes | 25.00 | 26.00 | 1.00 | 1.47 | 143.00 | 3.26 |
52.00 | 58.00 | 6.00 | 0.94 | 27.92 | 1.29 | |
includes | 54.00 | 55.00 | 1.00 | 1.96 | 27.00 | 2.30 |
23OMI- | ||||||
005 | 12.00 | 14.00 | 2.00 | 1.33 | 6.41 | 1.41 |
72.00 | 72.40 | 0.40 | 1.17 | 48.90 | 1.78 | |
81.70 | 82.40 | 0.70 | 2.85 | 145.00 | 4.66 |
Au eq = Au + (Ag/80)
Yamagano Property
In September 2020, the Company announced that it signed a binding option agreement with Shimadzu Limited to acquire the 5.2 sq km Yamagano mining license, site of extensive historic high-grade gold vein mining, in southern Kyushu. The Yamagano mining district, situated approximately 11 km southwest of the large, high-grade Hishikari gold mine, is host to innumerable historic gold mine workings, some dating back to 1640 AD during the early Edo Period in Japan. Mining focused on a multitude of high-grade epithermal gold veins hosted by volcanic rocks blanketing this region. Irving also holds four important new mineral prospecting licenses immediately east of the Yamagano mining tenement as well as another key property in Kyushu, Satsuma project. Each of these projects encompass gravity highs that Irving considers highly prospective for blind epithermal vein mineralization.
In December 2023, the Company commenced drilling at the East Yamagano high-grade epithermal gold- silver vein project.
7
IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
In January 2024, Newmont Exploration Pty Ltd, being an indirectly-heldwholly-owned subsidiary of Newmont Corporation ("Newmont"), designated the Yamagano and Noto properties for joint venture pursuant to an alliance agreement between Irving and Newmont.
In May 2024, the first diamond drill hole completed at the East Yamagano epithermal gold-silver vein project, Kyushu, Japan, encountered high-grade gold mineralization. At a down hole depth of 184.0 metres, a 5.0-metre interval grading 9.62 gpt Au including 1.0 metre grading 45.90 gpt Au was encountered in hole 23SY-001 (please refer to the table below). A second interval of 1.33 metres grading
5.81 gpt Au was encountered beginning at 407.0 metres down hole depth. Both zones of mineralization are comprised of stockwork quartz-carbonate veinlets measuring a few millimetres up to a couple centimetres width. Visible gold was observed in fractures. This style of veining was reportedly common in the adjacent historical Yamagano Mine. True widths of the mineralized intervals in hole 23SY-001 cannot be determined at this time.
Hole 23SY-001 was collared approximately 550 metres east of the easternmost main historical Yamagano Mine workings and was drilled in a 30° east northerly direction at -55 degrees. This hole targeted a steeply oriented zone of resistivity evident in AMT data. Volcanic rocks were encountered over the entire length of the hole to its terminal depth of 549.7 metres. Hydrothermal silicification and argilization were observed down most of the length of the hole and appear coincident with the targeted AMT resistive zone. In addition to the gold intervals discussed above, two lower grade stockwork vein intervals were encountered deeper in the hole (please refer to the table below). The area where 23SY- 001 is located is partly covered by young, post-mineral volcanic rocks making this high-grade intercept a blind intercept. It should be noted that the silver-to-gold ratio of all intercepts is generally very low, less than 1, a characteristic of gold veins at the nearby Hishikari deposit. Irving finds these early results very encouraging and provides supporting evidence that a potential extension of the Yamagano vein system might be found under cover within the East Yamagano project.
Orientations of Drill Holes at East Yamagano:
Hole No.
Collar
Easting
Collar
Northing
Elevation
Depth Azimuth Angle
23SY-001
655124.2 | 3531833 | 419.2 | 549.7 | 30° | -55° |
Significant Mineralized Intercepts in Hole 23SY-001:
From | Length | Au | Ag | AuEq | ||
Hole | (m) | To (m) | (m) | (gpt) | (gpt) | (gpt) |
23SY- | ||||||
001 | 184.00 | 189.00 | 5.00 | 9.62 | 0.66 | 9.63 |
includes | 188.00 | 189.00 | 1.00 | 45.90 | 1.80 | 45.92 |
407.00 | 408.33 | 1.33 | 5.81 | 0.61 | 5.82 | |
419.00 | 420.00 | 1.00 | 1.53 | 0.81 | 1.54 | |
519.10 | 519.68 | 0.58 | 1.79 | 4.73 | 1.85 |
Au eq = Au + (Ag/80)
8
IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
Description of the Yamagano Mining License:
- The Yamagano mining district, situated approximately 11 km southwest of the large, high-grade Hishikari gold mine, is host to numerous historic gold mine workings, some dating back to 1640AD during the early Edo Period in Japan. Mining focused on a multitude of high-grade epithermal gold veins hosted by volcanic rocks blanketing this region.
- Gold veins at Yamagano appear associated with a particular geophysical feature, an area of anomalously high gravity, thought to represent a buried uplift, or dome, in underlying denser basement sedimentary rocks. Such a geologic feature is believed to have focused gold-depositing hydrothermal fluids to ascend into overlying faults and fissures where they formed extensive high- grade vein networks. A gravity high was recognized very early as an important general control in the so-called Hokusatsu gold deposits including Kushikino gold mine (56 tonnes or 1.80 Moz Au produced) situated approximately 39 km southwest of Yamagano. Based upon this geologic model, initial targeting of the famous Hishikari deposits (more than 260 tonnes or 8.3 Moz Au produced) was driven largely by recognition of an anomalous gravity high underlying that area. Irving believes the gravity high under East Yamagano reflects a buried dome of basement rock and that, given the large footprint of this feature, there is prospectivity for a potential vein system.
Noto Property
In March 2021, the Company announced that it had conducted stream sediment surveys over much of the Noto Peninsula, in Honshu, Japan and upon review of the stream sediment analyses and recognition of several significant gold and multi-element anomalies, the Company applied for 99 prospecting licenses covering approximately 337.37 sq km on the Noto Peninsula. These prospecting licenses cover four discrete target areas displaying strong stream sediment gold, silver, arsenic, antimony, mercury and/or copper anomalism. The mineral prospecting licenses have been accepted by METI and a multi-step review has started for the final approval.
Shimokawa Property
During the year ended February 28, 2019, the Company filed 15 mineral prospecting licenses covering
48.50 sq km of the Shimokawa area. The Company withdrew these prospecting license applications in August 2023.
Engaru Property
During the year ended February 28, 2019, the Company filed 25 mineral prospecting licenses totaling
84.42 sq km covering an area a few km south of the historic Konomai gold field. All applications were accepted by METI and a multi-step review has started for final approval. Reconnaissance prospecting near Engaru by Irving geologists in November 2018 led to discovery of several areas of epithermal quartz vein float within a sub-basin of Miocene intermediate and felsic volcanic rocks. Hot spring silica sinter deposits, some with fossilized wood, are also present at Engaru.
Eniwa Project
In May 2017, the Company announced that Irving GK filed applications for 20 mineral prospecting licenses totaling 56.15 sq km covering a prospective area approximately 20 km south of Sapporo, Hokkaido, Japan. The Company withdrew these prospecting license applications in August 2023.
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IRVING RESOURCES INC.
Management's Discussion and Analysis
For the six months ended August 31, 2024
Tanzania Project
The Company, through its wholly-owned Tanzanian subsidiary, and with its joint venture participant, JOGMEC, held exploration prospecting licenses in Tanzania, Africa. During the year ended February 28, 2019, the Company elected to surrender the final license. The Company is in the process of winding up the subsidiary in Tanzania.
Results of Operations
For the three months ended August 31, 2024
During the three months ended August 31, 2024, the Company's operating expenses were $313,202 (2023: $707,050) before other items of interest income of $13,062 (2023: $70,035), other income of $3
(2023: $nil), and a write-off of exploration and evaluation assets of $nil (2023: $40,185) for a total
comprehensive loss of $300,137 (2023: $677,200).
Key items included $39,374 in depreciation (2023: $40,831), $117,848 in consulting fees (2023:
$85,100), $7,218 in insurance expenses (2023: $7,572), $3,787 in interest expense on lease liabilities
(2023: $4,652), $2,643 in investor relations (2023: $170), $18,000 in management fees (2023: $28,000),
$9,797 in office and miscellaneous expenses (2023: $13,040), $104,005 in professional fees (2023:
$145,996), $22,413 in regulatory fees (2023: $24,071), $2,032 in salaries and benefits (2023: $19,165),
$8,151 in shareholder costs (2023: $7,841), $86,627 in share-based compensation expense (2023:
$170,490), $4,457 in telephone expense (2023: $5,874), $9,645 in transfer agent expenses (2023:
$4,532), $18,890 in travel and promotion (2023: $25,013), and a foreign exchange gain of $141,685
(2023: loss of $124,703).
Expenses generally decreased during the three months ended August 31, 2024 considering minimal drilling activities occurred during most of such period. Share-based compensation expenses also decreased as a result of valuations derived by the Black-Scholes valuation model.
The variance for the comparative period is a decrease in total comprehensive loss of $377,063.
For the six months ended August 31, 2024
During the six months ended August 31, 2024, the Company's operating expenses were $835,211 (2023: $1,322,812) before other items of interest income of $26,412 (2023: $157,780), other income of $35,750 (2023: $nil), and a write-off of exploration and evaluation assets of $nil (2023: $40,185) for a total comprehensive loss of $770,049 (2023: $1,205,217).
Key items included $78,080 in depreciation (2023: $78,936), $206,751 in consulting fees (2023:
$126,032), $14,436 in insurance expenses (2023: $15,144), $7,869 in interest expense on lease liabilities
(2023: $9,632), $10,798 in investor relations (2023: $3,163), $36,000 in management fees (2023:
$46,000), $22,993 in office and miscellaneous expenses (2023: $27,103), $177,180 in professional fees
(2023: $192,245), $36,183 in regulatory fees (2023: $36,247), $4,049 in salaries and benefits (2023:
$53,779), $8,151 in shareholder costs (2023: $7,841), $198,164 in share-based compensation expense
(2023: $389,661), $10,571 in telephone expense (2023: $11,696), $13,014 in transfer agent expenses
(2023: $7,939), $40,590 in travel and promotion (2023: $84,092), and a foreign exchange gain of $29,618
(2023: loss of $233,302).
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Disclaimer
Irving Resources Inc. published this content on October 31, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on October 31, 2024 at 02:44:00.997.