Peloton Minerals begins drilling at Golden Trail

Oct 4, 2016

PELOTON COMMENCES DRILLING AT GOLDEN TRAIL PROJECT AND SURFACE MAPPING AND GEOCHEMISTRY AT INDEPENDENCE VALLEY PROJECT, ELKO COUNTY, NEVADA

Peloton Minerals Corp. has commenced core drilling at the Golden Trail project in Nevada and will also conduct a detailed geologic mapping and soil geochemistry program at the Independence Valley Project, Nevada. Both projects are located in Elko County, Nevada and are about 77 miles apart on the newly identified North Eastern Nevada Gold Trend. Newmont’s Long Canyon Project is between Peloton’s two projects and Pilot Gold is nearby to the south at Mount Kinsley. At Golden Trail, the Company has permitted 11 drill stations along the largest identified surface vein, the Golden Trail Vein (the “GTV”), which is over 1,200 meters long, and has an associated alteration zone that averages about 30 meters wide. Gold values above 20 ppb are common within the zone and several samples above 9 grams per tonne (“GPT”) gold have been taken in the central GTV area including one rock chip sample of decalcified limestone that contained over 28 GPT gold. Continuous 5 foot trench samples across the GTV returned 13.7 GPT gold with 37.2 GPT silver in one 5 foot trench, and 3.49 GPT gold with 105 GPT silver in a second 5 foot trench.

The object of this core drilling program is to demonstrate near surface continuity of gold in the 3 rd dimension. Up to 33 holes will be drilled from the 11 stations with drill hole lengths ranging between 50 and 300 feet. Subsequent drill programs would seek to expand on this initial program along strike, at depth, and in other areas of the property. A large gravity anomaly underlies the Golden Trail claim block and the Company plans to test that in subsequent programs.

For this drilling program, the Company is using its own Termite Hydraulic Core Drill Rig (the “Termite”) manufactured by and purchased from Coeur Products of Idaho. The Termite has a maximum depth of 300 feet and weighs only 160 kg (350 pounds). It is ideal for shallow, near surface drill work such as planned at Golden Trail, as it is solid, yet highly portable for frequent drill moves using wheels. As such, the environmental impact is very minimal, which is beneficial and should aid in the future permitting of additional drill locations.

The Company recently completed an airborne hyperspectral imaging survey over the entire surface area of the property and now has that surface data computer modeled for ongoing use. All future drill core at Golden Trail will be subject to hyperspectral imaging which should enable a model in the 3 rd dimension to be developed efficiently and relatively quickly. Hyperspectral imaging involves analyzing the characteristic absorption spectra of rock outcrops, samples, or drill core in the near infrared and uV vis. The results can identify suites of minerals characteristic of specific mineral deposit types such as Carlin-deposit type mineralization

The dominant alteration minerals detected and mapped by the airborne hyperspectral imaging survey are medium to high aluminum illite and ammonio illite. In northern Nevada gold belts, these ammoniated minerals are commonly associated with precious metal mineralization. The survey data also showed a northwest trend consistent with mineralized belts in northern Nevada such as those of the Carlin and Long Canyon Trends. The trend of the alteration is also coincident with the southwest flank of the underlying gravity anomaly which likely indicates a deep seated NW structure and an associated granitic pluton which intruded that structure.

At the Independence Valley Project, the Company plans to detail earlier geologic mapping that identified a mineralized but untested rhyolite dome. Ionic leach soil geochemistry and surface geophysics are also planned, weather permitting, the purpose of which is to identify drill targets, with a focus along the same structure (fault) which contains the rhyolite feeder (intrusive).

The Independence Valley Project is within the Spruce Mountain mining district which contains many historic base and precious metals mines and has been mined since the 1840’s. Rhyolite and granitic intrusive rocks are found in almost all of these mines and intrude the mineralized structures at the same time as mineralization or just afterward.

The rhyolites could be considered the smoking gun for mineralization within the Spruce Mountain mining district and the Independence Valley Project is centered on the largest untested rhyolite dome complex in the district.

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