Transformative Acquisition

  • Option to acquire 100%.
  • Located in the historic, mineral rich Abitibi Greenstone Belt.
  • Gold mineralization occurs in high-grade quartz veins within shear zones starting at 15m below surface
  • Drilling results include:
    • 167 g/t Au over 1 m (from 221.7 m)
    • 6.15 g/t Au over 23.6 m (from 117.2 m)
    • 19.49 g/t Au over 2.7m (from 166.0 m)
  • The Historical Estimate at the DAC Zone is open along strike with only coarse drilling denoting high grade intercepts outside of the 2011 Historical Estimate area showing expansion potential along strike from the DAC Zone over approximately 2.5 km to the Darla Zone
  • Excellent infrastructure – ~75 km NNE of Val d’Or with road access
  • Considerable work done historically including over 50,000 m of diamond drilling

Mineral Rich
Abitibi Region

The most famous greenstone belt in the Superior terrane is known as the “Abitibi”

The belt, which spans the Quebec-Ontario border, has produced up to 180 million oz. gold from mining dating back to 1901 along major structural breaks within the assemblage of Archean-age volcanic, sedimentary and intrusive rocks.

Exploring
Amongst Giants

Since gold was first discovered in the late 1800’s, the Abitibi has seen exploration radiate along the Cadillac-Larder Lake and Destor-Porcupine deformation zones.

Exploration and discovery has expanded north to other major structural breaks within the region including the Chicobi where the Destiny Project is located.

Exploration
Undercover

The majority of operating mines and significant gold occurrences in the Abitibi occur where there is minimal overburden cover. Exploration is easier at surface. Over the last few decades exploration strategies have adapted to begin looking for deposits undercover.

By compiling available drill hole data we can visualize the concentration of known deposits and showings and observe they largely occur where overburden is thin.

Sizable • High Grade Address • Strong Infrastructure • Significant Work to Date

  • 5,013 ha
  • Road Access ~75 km NNE of Val d’Or
  • Exploration of the Destiny Project dates back to the 1930s with the first serious diamond drilling campaign commencing in 1998 by Cameco
  • Previous work on the property includes:
    • 172 Diamond drill holes comprising > 50,000 m
    • Reconnaissance till sampling from 11 Sonic drill holes
    • 2,430 MMI geochemical samples
    • 982 line km of airborne VTEM surveys
    • 171 line km of ground magnetics surveys
    • 128 line km of IP

Open For Expansion

West Zone

No. Holes: 7
Deepest Hole: 176 m
Avg. Hole Depth: 134 m

Results include:
-3.36 g/t Au over 0.7 m
-1.5 g/t Au over 1.5 m

DAC Zone

No. Holes: 77
Deepest Hole: 707 m
Avg. Hole Depth: 275 m

Results include:
-6.15 g/t Au over 23.6 m
-19.49 g/t Au over 2.7 m
-167 g/t over 1.0 m

2011 Historical Estimate

Gap Zone

No. Holes: 19
Deepest Hole: 360 m
Avg. Hole Depth: 170 m

Results include:
-12.2 g/t Au over 8.0 m
-16.10 g/t Au over 6.0 m
-90.0 g/t over 1.0 m

Darla Zone

No. Holes: 23
Deepest Hole: 255 m
Avg. Hole Depth: 150 m

Results include:
-6.7 g/t Au over 2.5 m
(incl. 19.73 g/t Au over 0.7 m)
-19.5 g/t Au over 2.1 m

Zone 20​

No. Holes: 7
Deepest Hole: 320 m
Avg. Hole Depth: 255 m
Results Include:
4.6 g/t Au over 2.0 m

Zone 21

No. Holes: 8
Deepest Hole: 520 m
Avg. Hole Depth: 265 m
Results include:
2.4 g/t Au over 6.0 m

Drill Hole Summary

Scroll ↔

ZoneHole IDFrom (m)To (m)Interval (m)Au g/tCoordinatesAzimuthDip
DACDES9917117.2140.823.66.15317511mE, 5401669mN180.00-52.00
including118.8121.93.123.95
and134.8138.53.712.46
DES0032159.9169.29.33.98317609mE, 5401734mN181.50-48.0
including161.2165.94.75.37
and163.3165.92.67.78
DES05-64161.8170.58.75.42317480mE, 5401715mN180.00-50.00
including161.8163.21.422.14
DES05-66130.3133.12.85.18317451mE, 5401703mN180.00-50.00
and138.3139.313.37
and142.2143.61.48.83
DES05-67163.7170.97.28.81317506mE, 5401712mN180.00-50.00
including166168.72.719.49
DES05-79130.6133.12.510.7317535mE, 5401679mN180.00-50.00
and14214535.04
DES05-81323.7325.82.13.41317515mE, 5401886mN185.00-50.00
and333.73395.34.01
including333.7338.54.84.32
DES06-85214216.52.54.31317435mE, 5401793mN180.00-50.00
and221.7222.71167 * Fig. 1
DES06-96254.4261.26.82.46317514mE, 5401770mN180.00-67.00
and272.7275.733.04
DES10-137372.93741.125.65317605mE, 5401824mN180.00-50.00
DarlaDES06-91115.1117.21.219.67318563mE, 5401542mN180.00-50.00
DES08-104104.51072.56.73318563mE, 5401603mN180.00-55.00
including104.5105.20.719.73
GapDES12-14785.591.5616.1318260mE, 5401550mN180.00-50.00
including87.588.5190.3
and14614822.55
WestDES05-7579.880.50.73.36316225mE, 5401502mN180.00-50.00
and82.784.21.51.5
and90.391.81.51.23
SouthDES0051308.6309.91.32.22317210mE, 5401259mN180.00-45.00
DES00564949.20.23.03316798mE, 5401194mN180.00-50.00
and144.6145.30.71.69
and319319.20.22.23
Zone 21DES992193.899.862.49320508mE, 5401453mN180.00-50.00
including93.894.817.03
Zone 20DES9920218.4220.424.6320500mE, 5401233mN180.00-50.00

*All intercepts are drill core lengths unless otherwise noted.

Fig. 1 - Visible Gold • Hole DES06-85

DAC Historical Estimate

ClassTonnesAu (gpt)Au (ounces)
Indicated10,800,000
1.05
360,000
Inferred
8,300,000
0.92
247,000

Notes:

  • The historical estimate for DAC, within the Destiny Project, is considered historical in accordance with NI 43-101. See the following table with important disclosures regarding historical estimates.
  • The historical estimate for DAC can be found in the Technical Report “NI 43-101 Technical Report and Resource Estimate of the DAC Deposit, Destiny Property, Quebec” effective March 1, 2011, completed by Todd McCracken, P. Geo., of Wardrop Engineering Inc. for Alto Ventures Ltd (now Big Ridge Gold Corp) and filed on SEDAR.
  • Values were rounded to reflect summary nature of the estimate.

In accordance with Section 2.4 of National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and despite section 2.2 an issuer may disclose an historical estimate, using the original terminology, if the disclosure identifies the following

Source and date of the historical estimate, including any existing technical report

Information relating to this historical estimate is summarized from a technical report authored by Todd McCracken, P.Geo. of Wardrop Engineering Inc entitled “NI 43-101 Technical Report and Resource Estimate of the DAC Deposit, Destiny Property, Quebec” effective March 1, 2011 filed on SEDAR for Alto Ventures Ltd (now Big Ridge Gold Corp).

Relevance and reliability of the historical estimate

The 2011 Report was compiled in accordance with Canadian Institute of Mining (2005) standards and best practices for Mineral Resources, adhering to NI 43-101. Alto Ventures established a QAQC program that was reviewed by the independent QP who accepted the data as suitable for mineral resource estimation at that time.

Key assumptions, parameters, and methods used to prepare the historical estimate

Capped gold grade was interpolated using IDW method into a block model constrained by mineralized domains. Parameters used include a cut-off grade of 0.5 g/t Au, Au price of US$973/Oz, US$ to CAD$ conversion of 1.02, Au recovery 94%, 4:1 Strip ratio, Operating cost of $14.30/t at 10,000 tpd, density of 2.76

Resource categories used

In accordance with NI 43-101 as defined in 2011, the DAC historical estimate used the terms inferred and indicated mineral resource having the same meanings ascribed to those terms by the CIM Definition Standards on Mineral Resources and Mineral Reserves.

More recent estimates or data available to the issuer

There are no more recent estimates available to the issuer. There are only 17 drill holes totalling approximately 4,485 m completed that are not included in the 2011 historical estimate, with only one hole being within the historical estimate area.

Work needed to be done to upgrade or verify the historical estimate as current mineral resources or mineral reserves

An independent Qualified Person has not done sufficient work to review the historical data and historical estimates to determine what further work would be required to write an updated current Technical Report in accordance with NI 43-101. It is envisaged that this will involve an update/refinement to the geologic model and grade interpolation methods.

Clarity Gold Corp states with equal prominence that it is not treating the historical estimate as current mineral resources or reserves. At this time, a qualified person has not done sufficient work on behalf of Clarity to classify the historical estimate as current mineral resources or reserves.

The disclosure of this historical estimate has been reviewed by Rory Kutluoglu, a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects

DES10-137 visible gold in sheared and silicified gabbro Assays of 8.46 g/t Au over 3.0 m from 371.0 to 374.0 m

Destiny Property NI 43-101 Technical Report

Effective Date: February 4, 2021

History of Drilling in the Abitibi

High Grade Opportunity

Open Along Strike and at Depth

  • 25% of 172 historic drill holes have reported visible gold in drill logs.
  • Open to depth from ~400 m and along strike.
  • 5 separate parallel shear zones of strongly sheared and altered mafic volcanic rocks, quartz porphyry dikes and gabbro within a 200 m wide sheared corridor
  • Individual zones vary in width from 15 m to 30 m and contain high-grade quartz veins and disseminated pyrite with minor chalcopyrite, galena and sphalerite
  • Gold occurs mainly as very-fine grained disseminated native gold within the sheared host rocks and in the quartz veins
  • Individual veins vary in width from <1 m to several metres including one vein that is 9.7 m wide and averages 5.1 g/t Au; high grades up to 167 g/t/1.0 m
  • Only shallow drilling to date:
    • Entire project 220m average below surface
    • Dac Zone Average 275m
    • 3 holes deeper than 600m, deepest being ~710m
Zone NameNumber of Holes with Visible GoldTotal Number of Holes
DAC10,800,000
77
Darla223
Gap219
West17
Outside DAC, Gap, Darla and West046
Total43172

Potential for New Discovery

West Zone located 800 m west of DAC Zone
Limited drill testing which may have stopped short of the mineralized Despinassy shear and DAC horizon

 

Option Terms

Clarity has entered into a definitive option agreement*
to acquire 100% of the Destiny Project

*Dated November 27, 2020 and closed on January 8, 2021 Completion of the earn in is subject to certain conditions including all necessary corporate approvals; and receipt of all necessary regulatory approvals, including those of the applicable stock exchanges.

For a total of $3,000,000 and $5,500,000 share issuance amount

Clarity could accelerate the exercise of the Option by making the cash payments and issuances of CLAR Shares earlier than the timeframes contemplated above, and upon completion of such cash payments and issuance of Clarity Shares, the Option would be deemed to be exercised. The number of Clarity Shares to be issued to Big Ridge pursuant to the Option would be determined by dividing the dollar amount of CLAR Shares to be issued at any point in time by the 5 day volume weighted average closing price of the CLAR Shares on the day before such issuance of such CLAR Shares, subject to the policies of the CSE.

 +  1% NSR on Destiny’s precious metals production

Payable by Clarity following commencement of commercial production. The Company would have the right to buy back the Royalty during the first 3 years following the commencement of commercial production on payment by Clarity to Big Ridge of $1,000,000.

Payment Date

Cash Payment Amount

Share Issuance $ Amount

Interest Earned

Paid

Payment Date

Deposit - Paid

Cash Payment Amount ​

$50,000

Share Issuance $ Amount ​

-

Interest Earned

-

Paid

On October 29, 2020

Payment Date

Within 60 days of the execution of the definitive agreement

Cash Payment Amount ​

$450,000

Share Issuance $ Amount ​

$1,000,000 (685,391 shares issued)

Interest Earned

-

Paid

On January 26, 2021

Payment Date

12 months from Closing

Cash Payment Amount ​

$750,000

Share Issuance $ Amount ​

$1,000,000

Interest Earned

-

Paid

-

Payment Date

24 months from Closing

Cash Payment Amount ​

$750,000

Share Issuance $ Amount ​

$1,500,000

Interest Earned

49% earned

Paid

-

Payment Date

36 months from Closing

Cash Payment Amount ​

$1,000,000

Share Issuance $ Amount ​

$2,000,000

Interest Earned

100% earned

Paid

-

Total

Cash Payment Amount ​

$3,000,000

Share Issuance $ Amount ​

$5,500,000