Mineral Resources

DeLamar Project Global (DeLamar + Florida Mountain) Gold and Silver Reserves

Mineral Resources

Table 1 shows the updated Mineral Resource estimate included in the PFS.

Table 1: Mineral Resource Estimate

Oxide Mixed Non-Oxide
Florida Mountain Measured Indicated Meas+ Ind Inferred Measured Indicated Meas+ Ind Inferred Measured Indicated Meas+ Ind Inferred
K Tonnes 1,361 14,302 15,663 4,516 5,498 34,098 39,596 5,292 2,119 16,009 18,128 4,663
g Au/t 0.39 0.36 0.36 0.25 0.47 0.39 0.40 0.28 0.40 0.44 0.43 0.32
K Ozs Au 17 164 181 37 82 425 507 48 27 225 252 48
g Ag/t 13.7 9.7 10.1 6.6 14.6 10.1 10.7 6.6 10.9 10.5 10.5 9.0
K Ozs Ag 599 4,467 5,066 958 2,584 11,064 13,648 1,126 741 5,399 6,140 1,343
DeLamar Deposit
K Tonnes 2,846 25,939 28,785 5,163 3,490 27,556 31,046 2,631 13,729 53,301 67,030 18,350
g Au/t 0.34 0.31 0.32 0.26 0.42 0.33 0.34 0.29 0.53 0.46 0.48 0.42
K Ozs Au 31 262 293 44 47 290 337 25 234 793 1,027 250
g Ag/t 17.7 17.0 17.1 11.1 37.3 23.0 24.6 11.4 37.2 26.5 28.7 17.2
K Ozs Ag 1,616 14,170 15,786 1,838 4,181 20,337 24,518 967 16,407 45,403 61,810 10,126
Total DeLamar Project
K Tonnes 4,207 40,241 44,448 9,679 8,988 61,654 70,642 7,923 15,848 69,310 85,158 23,013
g Au/t 0.36 0.33 0.33 0.26 0.45 0.36 0.37 0.28 0.51 0.46 0.47 0.40
K Ozs Au 48 426 474 81 129 715 844 73 261 1,018 1,279 298
g Ag/t 16.4 14.4 14.6 9.0 23.4 15.8 16.8 8.2 33.7 22.8 24.8 15.5
K Ozs Ag 2,215 18,637 20,852 2,796 6,765 31,401 38,166 2,093 17,148 50,802 67,950 11,469

Notes:

  1. All estimates of Mineral Resources have been prepared in accordance with NI 43-101.
  2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  3. Mineral Resources are reported inclusive of Mineral Reserves.
  4. Michael Gustin, MDA a division of RESPEC of Reno, Nevada, is a Qualified Person as defined in NI 43-101, is responsible for reporting Mineral Resources for the DeLamar Project. Mr. Gustin is independent of the Company.
  5. The DeLamar and Florida Mountain Deposit Mineral Resources have been constrained to lie within optimized pit shells created using metal prices of US$1,800/ounce of gold and US $21/ounce of silver.
  6. Oxidize and Mixed Mineral Resources are reported at a 0.17 g AuEq/t cut-off in consideration of potential open-pit mining and Heap Leach processing. Non-Oxide Mineral Resources are reported at a 0.3 g AuEq/t cut-off at DeLamar in consideration of potential open pit mining and grinding, flotation, ultra-fine regrind of concentrates, and Albion cyanide-leach processing of the reground concentrates. Non-Oxide Mineral Resources at Florida Mountain are reported at a 0.2 g AuEq/t cut-off in consideration of potential open pit mining and grinding, flotation, ultra-fine regrind of concentrates, and agitated cyanide-leaching for the Non-Oxide materials.
  7. Additional inputs for the pit-optimizations include: Mining - US$2.20/tonne mined; Heap Leaching - US$2.75/t for Oxide materials, US$3.75/t for Mixed materials at DeLamar and US$3.50/t at Florida Mountain; Non-Oxide Processing - US$15.65/t at DeLamar and US$9.45/t at Florida Mountain; G&A - US$0.40/t processed by Heap Leaching and $0.50/t for processing of Non-Oxide materials; Heap Leach Gold Recoveries – 85% / 45% for Au / Ag Oxide and 80% / 40% for Mixed at DeLamar, 90% / 65% for Au / Ag Oxide and 85% / 55% for Mixed at Florida Mountain; and Non Oxide Recoveries - 78% / 78% for Au / Ag at Glen Silver area of DeLamar, 87% / 87% for all other DeLamar areas, and 95% / 92% for Au / Ag at Florida Mountain.
  8. Gold equivalent grades are calculated using the formula g/t AuEq = g/t Au + (g/t Ag/Factor), with the factor reflecting the metal recoveries by oxidation and metal prices provided above. The gold equivalent grades were used solely in the application of the resource cut-offs.
  9. The effective date of the Mineral Resource estimate is March 1, 2021.
  10. Rounding as required by reporting guidelines may result in apparent discrepancies between tonnes, grades, and contained metal content.
  11. The estimate of Mineral Resources may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

1 Gold equivalent = oz Au + (oz Ag / 79.07)

Mineral Reserves

Table 3 shows the proven and probable reserves for both Heap Leach and Mill ore by deposit. The reserves were estimated using block value calculated based on metal price and recoveries by area and oxidation. The cost to process the material was then used as a cut-off grade. The metal prices used to calculate the block values were $1,600 per ounce gold and $21.00 per ounce silver, though the final cash-flow model used $1,700 per ounce gold and $21.50 per ounce silver. The block value calculation equation is shown in Equation 1 in the footnotes. The block value was calculated for both gold and silver and then each was added together to provide an overall value for each block.

Recoveries used for the block value calculations are shown in Table 2 and were provided by Jack McPartland a member of MMSA, with a special expertise in metallurgy/processing, of McClelland Laboratories of Reno, Nevada. The recoveries for Florida Mountain Non-Oxide material used grade dependent equations shown in Equations 2 and 3 in the footnotes for gold and silver respectively.

Table 2 – Reserve Gold and Silver Recoveries

Oxide Mixed Non-Oxide
Recoveries by Area Au Ag Au Ag Au Ag
Florida Mountain 89% 49% 72% 47% Eq. 2 Eq. 3
Sullivan Gulch 86% 20% 61% 39% 38% 73%
DeLamar 78% 11% 61% 42% 39% 87%
Sommerset 87% 15% 58% 44% 39% 87%
Glen Silver 70% 18% 63% 30% 28% 64%
South Wahl 77% 37% 50% 74% 39% 87%
Milestone 75% 18% 45% 18% 39% 87%

Table 3: Mineral Reserves

Leach Mill Total
Florida Mountain Proven Probable P&P Proven Probable P&P Proven Probable P&P
K Tonnes 5,789 39,919 45,708 1,306 9,249 10,555 7,095 49,168 56,263
g Au/t 0.50 0.42 0.43 0.48 0.54 0.53 0.50 0.44 0.45
K Ozs Au 94 541 635 20 160 180 114 701 815
g Ag/t 16.02 10.73 11.40 12.24 12.27 12.26 15.32 11.02 11.56
K Ozs Ag 2,981 13,768 16,749 514 3,648 4,162 3,495 17,417 20,911
Block Value $ 24.75 $ 20.18 $ 20.76 $ 26.72 $ 29.37 $ 29.04 25.12 21.91 $ 22.31
DeLamar Deposit
K Tonnes 5,247 41,285 46,533 6,016 14,672 20,688 11,263 55,958 67,221
g Au/t 0.41 0.35 0.36 0.69 0.63 0.65 0.56 0.43 0.45
K Ozs Au 69 471 540 133 299 432 202 770 972
g Ag/t 31.24 22.07 23.10 62.03 52.86 55.52 47.69 30.14 33.08
K Ozs Ag 5,270 29,290 34,560 11,998 24,934 36,931 17,268 54,223 71,491
Block Value $ 19.83 $ 16.19 $ 16.60 $ 42.07 $ 36.62 $ 38.20 31.71 21.54 $ 23.25
Total DeLamar Project
K Tonnes 11,036 81,205 92,241 7,321 23,921 31,243 18,358 105,126 123,483
g Au/t 0.46 0.39 0.40 0.65 0.60 0.61 0.54 0.44 0.45
K Ozs Au 163 1,012 1,175 153 459 612 316 1,471 1,787
g Ag/t 23.25 16.49 17.30 53.15 37.16 40.91 35.18 21.20 23.27
K Ozs Ag 8,251 43,058 51,310 12,511 28,582 41,093 20,763 71,640 92,403
Block Value 22.41 18.15 $ 18.66 39.33 33.81 $ 35.11 29.16 21.71 $ 22.82

Notes:

  1. All estimates of Mineral Reserves have been prepared in accordance with National Instrument 43 - 101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).
  2. Thomas L. Dyer, PE, MDA a division of RESPEC of Reno, Nevada, is a Qualified Person as defined in NI 43-101, is responsible for reporting Proven and Probable Mineral Reserves for the DeLamar Project. Mr. Dyer is independent of the Company.
  3. Mineral Reserves are based on prices of $1,650 per ounce Au and $21.00 per ounce Ag. The reserves were defined based on pit designs that were created to follow optimized pit shells created in Whittle. Pit designs followed pit slow recommendations provided by RESPEC.
  4. Reserves are reported using block value cut-off grades representing the cost of processing:
    1. Florida Mountain Oxide Leach cut-off grade of used is $3.55/t.
    2. Florida Mountain Mixed Leach cut-off grade of used is $4.20/t.
    3. Florida Mountain Non-Oxide Mill cut-off grade of used is $10.35/t.
    4. DeLamar Oxide Leach cut-off grade of used is $3.65/t
    5. DeLamar Mixed Leach cut-off grade of used is $4.65/t.
    6. DeLamar Non-Oxide Mill cut-off grade of used is $15.00/t.
  5. The Mineral Reserves point of reference is the point where is material is fed into the crusher.
  6. The effective date of the Mineral Reserves estimate is January 24, 2022.
  7. All ounces reported herein represent troy ounces; “g Au/t” represents grams of gold per tonne and “g Ag/t” represents grams of silver per tonne.
  8. Columns may not sum due to rounding.
  9. The estimate of Mineral Reserves may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues
  10. Energy prices of US$2.50 per gallon of diesel and US$0.065 per kWh were used.
  11. Additional supporting details regarding the information in this news release will be provided in the pre-feasibility study to be available on SEDAR within 45 days of this news release.
  12. Additional supporting details regarding the information in this news release will be provided in the pre-feasibility study to be available on SEDAR within 45 days of this news release.
  13. Equation 1: Block value calculation:
  14. Equation 2: Florida Mountain Non-Oxide Gold Recovery (Where the maximum gold recovery = 87%)
  15. Equation 3: Florida Mountain Non-Oxide Silver Recovery (Where the maximum silver recovery = 77%)

Cautionary Note for U.S. Investors Concerning Mineral Resources and Reserves

National Instrument 43-101 - Standards of Disclosure for Mineral Projects (“NI 43-101”) is a rule of the Canadian Securities Administrators which establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects. Technical disclosure contained in this news release has been prepared in accordance with NI 43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum Classification System. These standards differ from the requirements of the U.S. Securities and Exchange Commission (“SEC”) and resource information contained in this press release may not be comparable to similar information disclosed by domestic United States companies subject to the SEC’s reporting and disclosure requirements.