Sweden

Gumsberg

Sweden

The Gumsberg project is located 30 kilometers south of the historic Falun Mine (Zn-Pb-Cu-Au) and 30 kilometers west of Boliden's Garpenberg Mine (Zn-Pb-Cu-Au-Ag). Gumsberg comprises five contiguous exploration permits in the Bergslagen mining district of Sweden, one of Europe's oldest mining districts. Multiple historic mines within the Gumsberg project area were developed on Volcanogenic Massive Sulfide (VMS) style mineralization, including the Osträsilvberg mine, one of Sweden's key silver producers in medieval times. Other historic mines within the project area were operated in the 1800's and early 1900's, targeting lead, zinc, and copper-rich VMS mineralization. Limited exploration drilling at Gumsberg was conducted in the 1930's, 1950's and early 1970's, when VMS deposit models were still poorly understood. Little to no exploration has been conducted in the past 40 years.

EMX's work at Gumsberg has focused on using modern VMS deposit models to reinterpret the multiple mineralized trends on the property. High priority, but shallow drill targets were generated through a combination of mapping, sampling, geophysical surveys and compilation of historic drill data from the area. EMX's 2016 reconnaissance diamond drilling targeted both exhalative-type lead-zinc-silver mineralization and replacement style zinc-lead mineralization developed in skarn and altered volcanic rocks. A total of five angle holes totaling 432.8 meters were drilled across the interpreted trends of mineralization. A summary of drill results is given in the table below:

Hole ID  From    (m) To         (m) Interval (m) Zn % Pb % Ag g/t Comments

GB16-1x

84.5 90.2 5.7 6.5 0.1 3.2

Replacement style Zn-Pb-Ag;
includes one meter of younger,
unmineralized andesite dike

including

86.5 90.2 3.7 8.9 0.1 4.4

GB16-2y

36.9 39.7 2.8 17.9 6.9 68.9

Exhalative style VMS; note that
interval also contains 0.5% Cu

GB16-3y

57.1 61.7 4.6 7.1 0.9 13.8

Exhalative style VMS;
mineralization appears to be
truncated by faults

including

57.1 57.6 0.5 28.5 4.1 51.4

including

59.1 59.7 0.6 16.4 2.3 39.3

GB16-5y

26.1 29.1 3.0 9.2 3.0 12.8

Exhalative style VMS

including

27.1 28.1 1.0 26.7 8.8 34.9
47.2 50.2 3.0 3.2 0.1 2.9

Replacement style Zn-Pb-Ag

x true width unknown
y true width estimated to be 80-90% of reported interval
Note: A fifth reconnaissance hole, GB16-4, was drilled away from the Vallberget-Loberget trend elsewhere on the property, and did not intersect significant mineralization.
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Cross section through drill hole GB16-2, looking northeast.
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Mineralized core from EMX's 2016 drill program, GB16-2, from 38.5 -- 39.7 (1.2m) @ 23.7%Zn, 9.19% Pb, 94.8 g/t Ag, 0.332% Cu, 0.126 g/t Au

EMX considers that the styles of mineralization at Gumsberg are analogous to the Falun deposit, and has identified multiple, high-priority targets on the property.

Note: The nearby mines and deposits in the region provide context for EMX's Project, which occurs in a similar geologic setting, but this is not necessarily indicative that the project hosts similar tonnages or grades of mineralization.

In late 2016 the Gumsberg project was acquired by Boreal Metals Inc., (BMC). EMX holds a 19.9% equity ownership in BMC plus an uncapped 3% NSR on the property. See Company news release dated November 22, 2016 for more details.

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Falun past production reference: Allen et al., 1996, Economic Geology, Volume 91, p. 980. Garpenberg reserves reference: http://www.boliden.com/Documents/Operations/Exploration/Mineralreserver_ENGupdate.pdf.
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Project scale geological map showing prospects.
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Prospect scale geological map showing drill hole locations.
Oxidizing sulfide-rich mineralization in outcrop at the Skvasselbostraket prospect.
Oxidizing sulfide-rich mineralization in outcrop at the Skvasselbostraket prospect.
Historic Östrasilvberg pit (up to 250 m depth).
Historic Östrasilvberg pit (up to 250 m depth).