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Coyote - Utah

Gold Bull has executed a Letter of Intent (“LOI”) to acquire 100% of the Coyote Mine project (“Coyote” or the “Project”) from private company Desert Mountain Gold LLC. Coyote is located in Juab County, Western Utah, USA and is considered prospective for gold and silver mineralisation. The Project comprises 83 lode mining claims for approximately 1715 acres and two State Metalliferous Mineral Leases for approximately 1370 acres for a total of 3085 acres.

Gold Bull has the option to acquire 100% of the project by making an ongoing annual payment of US$50,000 which will convert to a 3% net smelter royalty (NSR) in favour of Desert Mountain Gold LLC upon production commencing. Gold Bull will have the election to reduce the net smelter royalty by paying $1,000,000 per 1% NSR reduction, to reduce up to 2% of the NSR. Completion of a definitive agreement is subject to Gold Bull conducting detailed due diligence of the Coyote Project.

HIGHLIGHTS

Figure 1. Photo of the Coyote Mine
Figure 1. Photo of the Coyote Mine
Figure 2. General location of Coyote Project
Figure 2. General location of Coyote Project
Figure 3. Location and grades of rock samples collected at the Coyote Project
Figure 3. Location and grades of rock samples collected at the Coyote Project

Coyote Project Overview

The area of interest is located in the Great Basin portion of the Basin and Range Province of the western United States. The general landscape of the area is dominated by north-south trending fault-block mountain ranges separated by intervening sediment-filled basins or valleys. The age of most of the rocks in the mountain is Precambrian and Paleozoic. The rocks are mostly shales, quartzites, and carbonates (dolomite and limestone). There are intrusive and extrusive rocks found in the valleys and mountains and are generally of Tertiary age. The source of much of the volcanism is calderas. The youngest rocks are Quaternary in age and are mostly lake deposits, stream deposits, and alluvial fans along the mountain fronts. In the Great Basin the drainage is mostly interior, i.e., the rivers and stream do not flow out to the ocean. They flow into closed basins found between the mountain ranges. The streams in the area of consideration flow into the Sevier Lake, which is a closed basin and has no outlet to the sea.

There are alteration, mineralization, and jasperoids in the volcanic and Precambrian rock covered by the claims. There is a small mine on the property called the Coyote Mine with small production and reported 1000 ounces silver2. A desk top review of the existing limited drilling data indicates excellent drilling opportunities along a mostly east-west structure covered by the claims.

Two of the historical drill holes contain high gold values, CK-14 and CK-23. The drill holes are located in or very close to the small open pit, Coyote Mine (see Figure 1). CK-14 has an intercept of 8.19g/t (0.289 opt) gold and 1060g/t (37.41 opt) silver at 9.1 to 10.7m1. It intercepted a silica vein at this depth in the mineralized structure. CK-23 has an interval of 45.7 to 47.2m that was assayed for gold and silver with 2g/t (0.074 opt) gold and 814g/t (28.72 opt) silver3. It was drilled 70 degrees from the horizontal parallel to the mineralized structure therefore probably did not intercept the silica vein intercepted in CK-14. The Company has not done sufficient work to classify the historical information as current to NI 43-101, and is not treating the historical disclosure as a current mineral estimate.

Following fieldwork at the property in October 2020, the Coyote Property appears to consist of multiple high grade mineralized structures. The main structure running through the Coyote Mine strikes roughly 80 degrees and dips 70 degrees to the north. Historical drill holes have encountered the structure. Dump sample CKRK-0001 confirms the presence of the high-grade mineralization in historic drilling. We believe the main structure has not been adequately tested along strike or at depth for a bonanza zone.

Mineralized rock chip samples span > 475 meters along strike of the main structure leaving the structure open on both ends. Recent gravel and sand deposits cover outcrops to the west. Outcrops to the east do exist; however, were not tested during the reconnaissance sampling program.

We envision next steps for the Coyote Property to include soil sampling, additional rock sampling, and a geophysical survey.

1Gold Bull Resources Corp., 12.25 g/t Gold and 5,570 g/t Silver in Rock Sample Results on Coyote Property, Press Release, October 16, 2020.

2Freeport-McMoRan Gold Company, 1989-1990; Reverse Circulation Drill Hole CK-14; from NI 43-101 Technical Report on the Coyote Mine Project Juab County, Utah, USA, Arthur J. Mendenhall.

3Phoenix Gold Resources LTD reported production values on September 15, 1998; from NI 43-101 Technical Report on the Coyote Mine Project Juab County, Utah, USA, Arthur J. Mendenhall.

4Freeport-McMoRan Gold Company, 1989-1990; Reverse Circulation Drill Hole CK-23; from NI 43-101 Technical Report on the Coyote Mine Project Juab County, Utah, USA, Arthur J. Mendenhall.

Qualified Person

Cherie Leeden, B.Sc (Applied Geology, Honours), MAIG, a “Qualified Person” as defined by National Instrument 43-101, has read and approved all technical and scientific information contained on this page. Ms. Leeden is the Company’s Chief Executive Officer.

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