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   Gold/Mining/EnergyMining News of Note


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To: LoneClone who wrote (164623)3/31/2022 6:01:12 PM
From: LoneClone
   of 167649
 
Sabre Gold Drills 4.6 Metres of 16.9 g/t Gold & Strengthens Management Team

ca.finance.yahoo.com

Sabre Gold Mines Corp.
Thu, March 31, 2022, 5:00 a.m.·6 min read

Image 1



Copperstone Underground Drill Stations P2C, P2D, P2G & P2H - Panel 2 in Zone D - Looking West

VANCOUVER, British Columbia, March 31, 2022 (GLOBE NEWSWIRE) -- Sabre Gold Mines Corp. (TSX: SGLD, OTCQB: SGLDF) (“Sabre Gold” or the “Company”) is pleased to announce a key addition to its management team as well as further positive underground drilling results at its 100% owned Copperstone gold project located in Arizona, United States.

Management Team Appointment

Sabre Gold is very pleased to announce the addition of Mr. Sid Tolbert as Vice President, General Manager to the management team.

Giulio Bonifacio, President & CEO stated: “We are very pleased to have Mr. Tolbert join Sabre Gold as a key addition to our management team. Mr. Tolbert brings a wealth of underground mining and management experience to the team while remaining focused on safety and efficient operations. We look forward to working with Mr. Tolbert as we advance the Copperstone gold project into production in the near term.”

Mr. Tolbert is a mining engineer with more than 30 years of experience focused on underground operations and engineering. Mr. Tolbert has held various Mine Manager and General Manager positions with Hecla Mining Company and Klondex Mines Ltd. Mr. Tolbert was instrumental in advancing Klondex’s Fire Creek Mine from an exploration stage project to an operating mine. While at Fire Creek Mr. Tolbert optimized mining operations by changing the mining method to better fit the narrow character of the ore. He led the transition from long-hole stoping to cut and fill and shrink stoping where he reduced costs by an average of 40% per ounce, increased production, and reduced dilution, all maintaining a keen focus on safety with an exceptional safety record. Prior to Klondex, Mr. Tolbert worked at Newmont Mining for fourteen years starting as an underground miner before achieving his engineering degree and advancing to Superintendent for the Midas Mine and Vista Project. He holds Mining Engineering degree from the Haileybury School of Mines and is a certified Project Management Professional.

Drill Result Highlights

  • RC P2D47

  • 4.6 m at 16.9 g/t includes 1.5 m at 47.6 g/t

  • Core P2F06

  • 3.4 m at 5.4 g/t includes 0.8 m at 17.8 g/t

  • RC P2C32

  • 4.6 m at 8.4 g/t

  • RC P2C36

  • 1.5 m at 29.1 g/t

  • RC P2G69

  • 3.0 m at 7.9 g/t

  • RC P2G73

  • 3.0 m at 9.5 g/t includes 1.5 m at 16.4 g/t

  • RC P2H101

  • 3.0 m at 9.0 g/t

  • Core P3B03

  • 2.6 m at 14.2 g/t includes 0.9 m at 30.6 g/t


  • Mike Maslowski, Vice President of Technical Services and Exploration of Sabre Gold stated: “Drilling results continue to confirm the high gold and thickness continuity alone strike and dip for these areas. The results also indicate strong potential for the D Zone to extend further north than previously anticipated. New drill platforms developed further north than any existing underground access is required and being designed to provide proper drill angles to define the northern extents of the D Zone. This phase of drilling is complete and will now be used to develop initial detailed mine plans for these areas.”

    Assay results for the underground drill program have been received on the final holes from the 2021 drill program. Holes were drilled from eight drill stations targeting the D zone and two stations targeting the C Zone.

    The results on the final holes from various drill stations in Panel 2 of the D zone continued to show the high-grade gold continuity across the shear zone with the drill holes spaced 6 to 8 meters apart. Drill station location and drill cross sections showing the drill holes follow in this release.

    Table 1: Underground RC Drilling



    Drill Hole

    From
    (meters)

    To
    (meters)

    Length
    Interval

    Au
    Gram/tonne

    True
    Thickness
    2

    P2D47
    includes

    19.8
    19.8

    24.4
    21.3

    4.6
    1.5

    16.9
    47.6

    3.6
    1.2

    P2F06C
    includes

    9.1
    9.8

    12.5
    10.6

    3.4
    0.8

    5.4
    17.8

    3.2
    0.8

    P2C32

    16.8

    21.3

    4.6

    8.4

    3.6

    P2C36

    18.3

    19.8

    1.5

    29.1

    1.2

    P2G69

    4.6

    7.6

    3.0

    7.9

    2.6

    P2G73
    includes

    4.6
    4.6

    7.6
    6.1

    3.0
    1.5

    9.5
    16.4

    2.7
    1.3

    P2H101

    4.6

    7.6

    3.0

    9.0

    1.7

    P3B03C
    Includes
    and

    4.3
    5.9
    9.1
    14.5
    17.7

    6.9
    6.9
    10.6
    16.0
    19.2

    2.6
    0.9
    1.5
    1.5
    1.5

    14.2
    30.6
    7.7
    6.8
    3.8

    2.3
    0.8
    1.4
    1.4
    1.4


    (1) Au grades herein are reported as uncapped values.
    (2) Estimated perpendicular distance between footwall and hanging wall of the mineralized interval.

    A photo accompanying this announcement is available at globenewswire.com

    The technical information in this news release has been reviewed and approved by Michael Maslowski, CPG, a qualified person as defined by National Instrument 43-101 and is employed by the company as its Vice President, Technical Services & Exploration.

    Quality Assurance and Quality Control Statement

    Procedures have been implemented to assure Quality Assurance Quality Control (QAQC) of drill hole assaying being done at an ISO Accredited assay laboratory. Drill hole samples to be assayed are securely stored for shipment, with chain of custody documentation through delivery. Mineralized commercial reference standards or blank standards are inserted approximately every 20th sample in sequence and results are assessed to ascertain acceptable limits for analytical variance. Duplicate samples will also be taken as a further check in lab precision and accuracy. All results will be analyzed for consistency and corrective actions taken, if needed.

    ABOUT SABRE GOLD MINES CORP.

    Sabre Gold is a diversified, multi-asset near-term gold producer in North America which holds 100-per-cent ownership of both the fully permitted Copperstone gold mine located in Arizona, United States, and the Brewery Creek gold mine located in Yukon, Canada, both of which are former producers. Management intends to restart production at Copperstone followed by Brewery Creek in the near term. Sabre Gold also holds other investments and projects at varying stages of development.

    Sabre Gold’s two advanced projects have approximately 1.5 million ounces gold in the Measured and Indicated categories, and approximately 1.2 million ounces gold in the Inferred category. Additionally, both Copperstone and Brewery Creek have considerable exploration upside with a combined land package of over 230 square kilometers that will be further drill tested with high-priority targets currently identified. Sabre Gold is led by an experienced team of mining professionals with backgrounds in exploration, mine building and operations.

    For further information please visit the Sabre Gold Mines Corp. website ( www.sabre.gold).

    Cautionary Note Regarding Forward Looking Statements

    This news release contains forward-looking information under Canadian securities legislation including statements regarding drill results, potential mineralization, potential expansion and upgrade of mineral resources and current expectations on future exploration and development plans. These forward-looking statements entail various risks and uncertainties that could cause actual results to differ materially from those reflected in these forward-looking statements. Such statements are based on current expectations, are subject to a number of uncertainties and risks, and actual results may differ materially from those contained in such statements. These uncertainties and risks include, but are not limited to: the strength of the Canadian economy; the price of gold; operational, funding, and liquidity risks; reliance on third parties, exploration risk, failure to upgrade resources, the degree to which mineral resource and reserve estimates are reflective of actual mineral resources and reserves; the degree to which factors which would make a mineral deposit commercially viable are present, and the risks and hazards associated with underground operations and other risks involved in the mineral exploration and development industry. Risks and uncertainties about Sabre Gold’s business are more fully discussed in the Company’s disclosure materials, including its annual information form and MD&A, filed with the securities regulatory authorities in Canada and available at www.sedar.com and readers are urged to read these materials. Sabre Gold assumes no obligation to update any forward-looking statement or to update the reasons why actual results could differ from such statements unless required by law.

    For further information please contact:

    Sabre Gold Mines Corp.
    Giulio Bonifacio
    President & Chief Executive Officer
    gtbonifacio@sabre.gold

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    To: LoneClone who wrote (164624)3/31/2022 6:03:18 PM
    From: LoneClone
       of 167649
     
    Walker River Announces Drill Results From New Discovery at Lapon Canyon Return 7.62 G/t au Over 48.8 Meters and 77.14 G/t au Over 4.5 Meters

    ca.finance.yahoo.com

    Walker River Resources
    Thu, March 31, 2022, 5:00 a.m.·8 min read

    Vancouver, B.C. , March 31, 2022 (GLOBE NEWSWIRE) -- Walker River Resources Corp. (“Walker” or the “Company”) (TSX-V: “WRR”) is pleased to announce drill results from the late 2021 reverse circulation (“RC”) drill program at the Lapon Canyon portion, of its 100% owned Lapon Gold Project located approximately 60 kilometres southeast of Yerington, Nevada.

    Drill results confirm the discovery of a new high grade gold mineralized zone (the “Hotspot”).

    LC 21-80 returned 7.62 g/t Au over 48.8 meters, including 77.16 g/t Au over 4.5 meters.

    LC 21-81 returned 5.68 g/t Au over 60.9 meters, including 17.76 g/t Au over 18.3 meters, and 99.7 g/t Au over 1.5 meters.

    LC 21-82 returned 1.84 g/t Au over 122 meters including 8.61 g/t Au over 9.2 meters, and 4.28 g/t Au over 47.3 meters, the latter two results being in granite. The hole ended in gold mineralization at 122 meters.

    Key Highlights

  • The presence of significant gold mineralization in granite (LC 21-82), demonstrates new and significant potential to the project. Previously the granite was thought to be barren. The Company will now undertake to assay granites from the previous drillhole samples not sent to the lab.

  • It is now warranted to drill longer and deeper holes at Lapon Canyon, with significant gold mineralization recently discovered within the granite at the Hotspot, previously unknown to exist on the Project.

  • Hole 21-65 (1.88 g/t over 54.5 meters) was the initial discovery hole. The zone is not visible at surface, as it is covered by a blanket of colluvium and granite boulders

  • Holes LC 20-35 (1.35 g/t over 22.9 meters) and LC 21-67, located some 100 meters NW of the new Hotspot zone confirmed its discovery.

  • The unanticipated robust nature of gold mineralization discovered at the Hotspot zone, allows the Company to apply the same methodologies at Lapon Canyon’s other known mineralized zones. Including, follow up drilling at the mineralized zones discovered in holes LC 19-42 and 43.

  • The 2022 drill programs at Lapon Canyon will now consist of systematic drilling on section for geological modelling purposes, as well as exploration drilling to discover new gold mineralization and extend known gold mineralization, including, now at depth.

  • Assay Table: Summary of Drill Results:

    Hole


    From
    (m)

    To
    (m)

    Length*
    (m)

    Assay (Au g/t)*

    Gold Metal Factor
    (g/t x m)

    Notes:

    LC 21-80


    10.7

    59.5

    48.8

    7.62

    372


    incl


    55

    59.5

    4.5

    77.62

    347


    and


    55

    56.5

    1.5

    166.37

    249


    and


    58

    59.5

    1.5

    65.00

    97.5










    LC 21-81


    10.7

    71.6

    60.9

    5.68

    346


    incl


    41.2

    59.5

    18.3

    17.76

    325


    and


    47.3

    48.8

    1.5

    99.78

    150


    and


    53.4

    54.9

    1.5

    39.98

    60


    and


    57.9

    59.4

    1.5

    50.98

    76










    LC 21-82


    0

    122

    122**

    1.84

    224


    incl


    64

    111.3

    47.3

    4.28

    202


    and


    85.3

    122

    36.7

    3.46

    127

    In Granite

    and


    85.3

    94.5

    9.2

    8.61

    79

    In Granite









    LC 21-76


    13.7

    15.2

    1.5

    25.57

    38



    * The above drill results are presented uncapped and lengths represent sampled lengths. True width is estimated to be between 60 and 80 percent of sampled widths.
    ** LC 21-82 ended at 122 meters in gold mineralization

    The new Hotspot zone is located some 200 meters above and 250 meters SE, on strike with the high-grade mineralization at the historic mine workings, with previously reported high grade drill results (LC 16-10 77.62 g/t over 12.2 meters, among others).

    Other drill holes include LC 21-76 and LC 21-84 where a second altered zone was discovered below granite. The two altered zones show anomalous to low grade gold throughout, with LC 21-76 returning a high-grade value of 25.57 g/t over 1.5 meters. The granites also show anomalous gold values throughout, an excellent indicator for future exploration. The presence of a second altered zone below granite is very significant as it increases the potential of Lapon Canyon. Hole LC 21- 84 was lost at 140 meters in intense fracturing, an indicator of potential gold mineralization at Lapon Canyon.

    Drillholes LC 21-73 to 75 were drilled in the barren late-stage diorite intrusive at the bottom of Lapon Canyon, for geological informational purposes, obtaining thicknesses and angles within the intrusive, important geological information for future drilling.

    Drillholes LC 21-85 and 86, were drilled in the lower granites, in preparation for follow up drilling of the high-grade mineralization discovered in Holes LC 19-42 and 43.

    Finally, holes LC 21-77 to 79 were drilled to ascertain geological parameters for the drilling of the discovery at the new Hotspot zone. Unexpectedly this led to the discovery of the Upper Granite, which is well mineralized in LC 21-82 (Hotspot).

    Now that the late 2021 drill program assay results have been received, planning of the continuation of drilling at Lapon Canyon is underway. Due to the robust nature of the gold mineralization at the new Hotspot zone discovery, both unexpected and surprising, the Company will shift its focus here, and using the same methodologies, follow up drilling at the discoveries encountered in holes LC 19-42 and 43.

    Drilling at the Pikes Peak portion of the Lapon Gold Project, which was interrupted in late 2021, due to poor road access conditions, will begin as soon as possible, subject to road access conditions and drill contractor availability. Significant historical mining activities are present (shafts, adits, mill) in a copper gold environment. Sampling by Walker returned values of 9 g/t Au, and 2.2% Cu from outcrop. It is significant that there are no reported drilling or exploration activities from Pikes Peak.

    The gold mineralization at Lapon Canyon is contained in a wide (300 meters), long (over 4km strike length), intensely altered (sericite, iron oxides) sheared and faulted NE trending fault zone. Gold mineralization is present pervasively throughout as an envelope of lower grade mineralization (0.5 to 2.0 g/t Au) enveloping distinct high-grade structures, that have been drilled over a strike length of over 850 meters and a vertical extent of 400 meters.

    The high-grade gold mineralization is encountered in discrete, traceable zones located at the intersection of flat lying porphyry dikes and vertical stockwork fracture chimneys.

    About the Lapon Gold Project

    The Lapon Gold Project consists of 147 claims (2940 acres) situated in the Wassuk Range, within the Walker Lane shear zone, a 100 km wide structural corridor extending in a southeast direction from Reno, Nevada. The Project is easily accessible by secondary state roads from the main highway (25 kilometres), and is located approximately 60 kilometres southeast of Yerington, Nevada. A state power grid transmission line passes within three kilometres of the Project.

    The Lapon Gold Project includes Lapon Canyon, the Pikes Peak claims located 4 kilometres to the north, and the Rattlesnake and Range Front claims 3 kilometres to the west and over 600 meters lower than the present drilling at Lapon Canyon. The Rattlesnake, Range Front, and Pikers Peak claims cover over 8 km of possible extensions of the range front zones to the west, north, and south of Lapon Canyon, adding several additional drill target areas to the project. Rattlesnake and Pikes Peak contain numerous historical mining and milling areas that consist of adits at different levels, shafts and underground workings, and a network of existing roads providing access throughout. Little or no exploration work has been carried out on these claims prior to Walkers arrival. It is notable that the Rattlesnake area and adits are on strike with the Lapon Canyon discoveries located 3 km on strike and 600 meters above.

    Lapon Canyon hosts historical high grade gold mining with approximately 2000 feet of undergoing workings in three adits. Historical underground work returned numerous assay values in the one ounce per ton range, with a sample at the end of the A adit returning 20.6 ounces per ton Au. (NI43-101, Montgomery and Barr, 2004).

    Sampling Methodology, Chain of Custody, Quality Control and Quality Assurance

    All sampling was conducted under the supervision of the Company's project geologists and the chain of custody from the drill to the sample preparation facility was continuously monitored. A blank or certified reference material was inserted approximately every tenth sample. The Lapon Canyon samples were delivered to American Assays Laboratories’ certified laboratory facilities in Sparks, NV. The samples were crushed, pulverized and the sample pulps digested and analyzed for gold using fire assay fusion and a 50g gravimetric finish. Intensely altered samples used a 1 kg pulp screened to 100 microns. Duplicate assay on screen undersize. Assay of entire oversize fraction.

    Samples are taken and bagged directly at the drill rig at every 1.5 meter interval, standard in the exploration industry. A small sample is also taken at the drill rig and put into a chip tray for examination purposes and to determine those sample bags that should be sent to the lab for assay purposes. Often this work is carried
    out using a microscope for the examination of the rock chips. The full sample bag from the interval chosen for assay purposes is then sent directly from the drill site to the lab, located in Sparks, NV.

    The scientific and technical content and interpretations contained in this news release have been reviewed, verified and approved by E. Gauthier, geol., Eng (OIQ) a Qualified Person as defined by NI 43-101, Standards of Disclosure for Mineral Projects.

    ON BEHALF OF THE BOARD OF DIRECTORS

    Michel David
    ________________________
    Michel David,
    Chief Executive Officer and Director

    FOR FURTHER INFORMATION PLEASE CONTACT:

    Walker River Resources Corp.
    Tel: 819 874-0030
    Fax: 819 825-1199
    Email: info@wrrgold.com
    Website: www.wrrgold. com

    Neither TSX Venture Exchange Nor Its Regulation Service Provider (As That Term Is Defined In The Policies Of The TSX Venture Exchange) Accepts Responsibility For The Adequacy Or Accuracy Of This News Release.

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    To: LoneClone who wrote (164625)3/31/2022 6:05:40 PM
    From: LoneClone
       of 167649
     
    Usha Resources Acquires Drill-Ready Lithium Project in Nevada

    accesswire.com

    Thursday, March 31, 2022 7:00 AM

    VANCOUVER, BC / ACCESSWIRE / March 31, 2022 / Usha Resources Ltd. ("USHA" or the "Company") (TSX-V:USHA)(OTCQB:USHAF) is pleased to announce that it has entered into a mineral property option agreement (the "Option Agreement" or "Transaction") with Ares Strategic Mining Inc. (the "Vendor") of Vancouver, British Columbia, whereby the Company has been granted the exclusive option to acquire a 100% interest in 140 mineral claims located in Jackpot Lake, Clark County, Nevada (the "Property").

    The Property is located within Clark County, 35 kilometres northeast of Las Vegas, Nevada, and is comprised of 140 mineral claims that total 2,800 acres. The project is exploring a "playa" which appears to be within a closed basin that may contain potentially lithium-rich brines. The geologic model is similar to that of Albemarle's Silver Peak Nevada Lithium Mine which has operated continuously since 1966, and Iconic Mineral's Bonnie Claire Project, which recently released a Preliminary Economic Assessment report (PEA) that indicates 40-year mine with an after-tax NPV8% of 1.5 billion, where sediments from lithium-rich surrounding source rocks accumulate and fill the deposit leading to a potential concentration of lithium brine due to successive evaporation and concentration events.

    Figure 1 - Left, location of Jackpot Lake. Right, aerial image of the "playa".

    The project is considered to be "drill-ready" based on the following work which has successfully delineated a 5 x 2 kilometre anomaly within a closed basin that suggests the presence of a highly concentrated brine:

    • 129 core samples collected by the USGS with an average lithium value of 175 ppm with a high of 550 ppm and spectrographic and atomic-absorption analyses of 135 stream sediment samples confirming the potential for lithium mineral deposits.
    • Gravitational surveying which has identified a closed basin, critical for ensuring brines remain within the basin without dilution from external water sources.
    • Geophysical modelling based upon gravitational and controlled source audio magnetotellurics/magnetotellurics (CSAMT/MT) surveys has provided evidence of highly concentrated brines which are relatively near the surface. The CSAMT survey results of the Jackpot Lake Project demonstrate a large consistent body of very low resistivity - consistent with highly concentrated brine behavior - throughout the property, predominantly above bedrock depths of 625 meters.
    The CSAMT Survey and report was conducted and prepared by Hasbrouck Geophysics, who has extensive experience of both surveying and data processing for brine-bearing basin environments across the southwestern U.S.

    Figure 2- Left, gravitational surveying outlined the footprint of the Jackpot lithium brine anomaly. Right, CSMAT survey slices showing a cross-section of the anomaly illustrating the highly enriched brines throughout the property in red.

    Based on the above, the Company intends on completing an aggressive exploration program by drilling both shallow and deep holes to test the targets outlined by the CSAMT Survey at possible higher concentration brine zones with the goal of completing a 43-101 resource estimate by Q4 of 2022.

    Deepak Varshney, CEO of Usha Resources, stated, "We are thrilled to add Jackpot Lake to our growing portfolio of "green" projects and thank Ares for partnering with us to move this project forward. Our goal is to identify high-quality projects that are near or drill-ready with high-upside that can be achieved through the completion of relatively inexpensive work programs. Lithium brine deposits have a significant cost advantage over lithium clay deposits in that lithium mineralization is much less difficult and much less expensive to process. They can also be explored through smaller drilling programs that can result in the Company identifying resource estimates much more economically. The addition of Jackpot means that 2022 will be an extremely active period for USHA with three planned drill programs giving our shareholders a number of potential catalysts across our various projects."

    James Walker, CEO of Ares Strategic Mining, stated, "We are pleased to have USHA as a partner for Jackpot. Our goal was to find a well-structured and capitalized company that could move the project forward and look forward to supporting USHA as shareholders and strategic partners."

    The Transaction

    Under the terms of the Transaction, USHA will be able to acquire a 100% interest in the Property in exchange for the following consideration:

    • $75,000 payable within five days from receiving approval from the TSX Venture Exchange (the "Exchange").
    • $500,000 payable in common shares (the "Shares") of the Company within five days from the date of Exchange approval, to be issued at a deemed value at the greater of the 10-day VWAP or Discounted Market Price;
    • $225,000 payable through a combination of cash or Shares of the Company (at the discretion of the Company), up to a maximum of 1,500,000 Shares, on the six-month anniversary date, to be issued at a deemed value at the greater of the 10-day VWAP or Discounted Market Price; and
    • $225,000 payable through a combination of cash or Shares of the Company (at the discretion of the Company), up to a maximum of 1,500,000 Shares, on the twelve-month anniversary date, to be issued at a deemed value at the greater of the 10-day VWAP or Discounted Market Price.
    Additionally, the Company will be required to complete no less than $1,000,000 worth of Expenditures on the Claims within two years unless the Option has been exercised in full.

    The Vendor will return a 1% Gross Overriding Royalty (the "GORR"), subject to a buyback provision by the Company, whereby the Company may acquire, at any time, one-half of the GORR for $1,000,000.

    The Option Agreement and the transactions contemplated therein, including the issuance of the Shares, is subject to the approval of the Exchange. All securities issued in connection with the Transaction will be subject to a four-month-and-one-day statutory hold period.

    Qualified Person

    The technical content of this news release has been reviewed and approved by Mr. Helgi Sigurgeirson, P.Geo., a qualified person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101").

    About Usha Resources Ltd.

    Usha Resources Ltd. is a Canadian mineral acquisition and exploration company based in Vancouver, BC, Canada. Usha is exploring for commercially exploitable mineral deposits and is currently focused on deposits located in Northwest Ontario, Canada and the Lost Basin Gold Mining District in Mohave County, Arizona, U.S.A. Usha increases shareholder value through the acquisition and exploration of quality precious and base metal properties and the application of advanced state-of-the-art exploration methods. Usha's portfolio of strategic properties provides diversification and mitigates investment risk.

    We seek Safe Harbor.

    USHA RESOURCES LTD.

    "Deepak Varshney" CEO and Director

    For more information, please phone James Berard, Investor Relations, 778-228-2314, email info@usharesources.com, or visit www.usharesources.com.

    Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

    Forward-looking statements:

    This news release may include "forward-looking information" under applicable Canadian securities legislation. Such forward-looking information reflects management's current beliefs and are based on a number of estimates and/or assumptions made by and information currently available to the Company that, while considered reasonable, are subject to known and unknown risks, uncertainties, and other factors that may cause the actual results and future events to differ materially from those expressed or implied by such forward-looking information. Readers are cautioned that such forward-looking information are neither promises nor guarantees and are subject to known and unknown risks and uncertainties including, but not limited to, general business, economic, competitive, political and social uncertainties, uncertain and volatile equity and capital markets, lack of available capital, actual results of exploration activities, environmental risks, future prices of base and other metals, operating risks, accidents, labour issues, delays in obtaining governmental approvals and permits, and other risks in the mining industry.

    The Company is presently an exploration stage company. Exploration is highly speculative in nature, involves many risks, requires substantial expenditures, and may not result in the discovery of mineral deposits that can be mined profitably. Furthermore, the Company currently has no reserves on any of its properties. As a result, there can be no assurance that such forward-looking statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements.

    SOURCE: Usha Resources Ltd.

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    To: LoneClone who wrote (164626)3/31/2022 6:08:50 PM
    From: LoneClone
       of 167649
     
    Troilus Announces New Discovery at Testard: Drills 4.6 g/t Gold Over 7.6m, Incl. 20.2 g/t Over 1.2m; 6.7 g/t Gold Over 3.2m, 10km From Main Mine Site

    ca.finance.yahoo.com

    Troilus Gold Corp.
    Thu, March 31, 2022, 4:00 a.m.·10 min read

    Troilus Gold Corp.
    Figure 1



    Plan Map of Testard with Drilling Highlights
    Figure 2


    Core Photos of TES-21-002 (New Discovery) and TES-21-005 (Main Showing)
    Figure 3



    Plan Map of Testard Showing Structural Interpretation of Testard Drill Area with Detailed Airborne Magnetics Overlaid on Satellite Image
    MONTREAL, March 31, 2022 (GLOBE NEWSWIRE) -- Troilus Gold Corp. (“Troilus” or the “Company”, TSX: TLG; OTCQX: CHXMF) is pleased to announce drill results from its high-grade gold-copper-silver Testard target, located approximately 10 kilometres south of the main mineral corridor and former mine site. The Troilus gold-copper project is located within the Company’s 142,000 hectares (1,420 km²) land package in northcentral Quebec, Canada, where it holds the largest contiguous mineral claims within the Frôtet-Evans Greenstone Belt.

    Troilus acquired the Testard claim area in early 2020 and proceeded with surface mapping and prospecting over the course of that Summer, which returned the highest-grade gold occurrences ever reported in outcrop within the Frotêt-Evans Greenstone Belt. This drilling program aimed to test the potential controls on mineralization in the area, while also testing extensions of the high-grade mineralization below surface at the main showing.

    Result Highlights (See Table 1 for complete results)

    New discovery drilled 400 metres from main Testard surface outcrop:

    Holes TES-21-001 and TES-21-002 intersected gold-rich quartz veins ~400 metres northwest of the main Testard outcrop (See Figure 1).

  • Hole TES-21-002 intersected:

  • 4.63 g/t gold over 7.6 metres, including 20.2 g/t gold over 1.2 metres

  • 7.12 g/t gold over 1.4 metres

  • Hole TES-21-001 intercept highlights include:

  • 1.96 g/t gold over 3.8 metres, including 2.68 g/t gold over 1.8 metres

  • 4.86 g/t gold over 0.75 metres

  • Excellent outcrop and channel sample results confirmed below surface

    Drill hole TES-21-005 targeted and intersected mineralized gold bearing structures at depth below previously sampled outcrop. Intercept highlights include:

  • 6.72 g/t gold over 3.2 metres, including 17.3 g/t gold over 0.7 metres

  • Highlights from previously reported surface results (see press releases dated Oct. 19 and Dec. 9, 2020) located in proximity to hole TES-21-005 include:

  • Outcrop samples:

  • 203 g/t (6.53oz/t) gold, 2,440 g/t (78.45 oz/t) silver and 4.37% copper (Y939452); 82 g/t gold and 1,060 g/t silver (V437857), 54.2 g/t gold (Y939451); 40 g/t gold (V437858), 34.9 g/t gold (Y939441); 20 g/t gold (V437859) and 13.55 g/t gold (Y939446)

  • Channel samples:

  • 5.4 g/t gold over 2 metres, incl. 19.5 g/t over 0.5 metres (Channel 20-095)

  • 3.5 g/t gold over 4.6 metres, including 12.2 g/t Au over 1.3m (Channel 20-089)

  • 2.7 g/t gold over 3.5 metres, including 5.3 g/t Au over 2.1m (Channel 20-087)

  • Justin Reid, President and CEO, commented, “The results from our first test drilling program at Testard are very exciting. The structural model developed by our geological team used to identify these initial drill targets, some of which are nearly half a kilometre away from the main showing, is truly impressive. Testard has returned the highest insitu gold and silver grades identified to date within the entire Frôtet-Evans Greenstone Belt; these initial drill results are hugely motivating to our team as we continue to assess results and further develop our models in preparation for an expanded drill program. Though early, the proximity of this target to our future operation, powerline, access roads and infrastructure warrants further work, especially considering these exciting grades.”

    Blake Hylands, Senior Vice-President of Exploration, commented, “The team has done outstanding work at the Testard area. Not only have the high-grade showings discovered in the Summer of 2020 been proven to extend below surface, but the discovery of shear hosted mineralization almost half a kilometre from there is now painting the picture of a much larger, multikilometer system that we intend to prove in the coming months. We are optimistic that these results will continue to be duplicated around the Testard area, and we point to it as real evidence of the district scale potential at Troilus we have argued for years.”



    220331 Testard_Figure 1

    Figure 1: Plan Map of Testard with Drilling Highlights:
    globenewswire.com

    The mineralized structures encountered consist of shear-hosted quartz-tourmaline-carbonate veins contained within a sericite-silica-carbonate altered tonalite (See Figure 2). The best gold and silver values were obtained from veins that contain disseminated, to up to 20% pyrite, with locally trace chalcopyrite and molybdenite. Different vein textures have been observed in core including laminated, extensional and breccia-type veins. Further drilling is needed to better constrain the Azimuth and dip of the different mineralized trends.



    220331 Testard_Figure 2

    Figure 2: Core Photos of TES-21-002 (New Discovery) and TES-21-005 (Main Showing):
    globenewswire.com

    Testard Target: 2020-Present and Next Steps Towards Finding Main Source of Mineralization

    The Testard claims were staked in 2020 (see April 28, 2020 and July 21, 2020 press releases) following the discovery of the Southwest Zone, 2.5 kilometres away from the formerly mined pits (Zones Z87 and J Zone). Over the course of two years, Troilus increased its land position nearly 9-fold from 16,000 hectares to 142,000 ha (1,420 km²), driven by increasing evidence that the known Troilus deposits were part of a larger, regional scale gold system.

    The initial work program completed at Testard in the Summer of 2020, including outcrop stripping, bedrock mapping and boulder tracing, returned the highest-grade gold occurrences on Troilus’ property to date, and the highest ever reported in outcrop within the Frotêt-Evans Greenstone Belt. Furthermore, the results demonstrated that the geological characteristics of the Testard Zone and host rock share many similarities to the main mineral resource zones, which hosts estimated mineral resources of 4.96 Moz AuEq Indicated (177 Mt grading 0.87 g/t AuEq) and 3.15 Moz AuEq Inferred (116.7 Mt grading 0.84 g/t AuEq) (see July 28, 2020 press release).

    Testard has been a priority regional target on which extensive work has been completed over the last 18 months, including geological sampling and mapping of lithology and structure, detailed airborne magnetics and an induced polarization survey. The results of this work enabled Troilus’ geology team to develop a structural interpretation of mineralization at Testard; that being a NE-SW structure parallel to the main Troilus deposit, with east-west cross cutting shearing and quartz vein sets identified as potential physical traps for high grade mineralization (see Figure 3). Detailed airborne magnetic data (shown in Figure 3) clearly outlines a main contact zone between the more magnetic ultramafic and the less magnetic tonalite units. The contact zone was observed in the field to be intensely sheared, and therefore a potential prospective pathway for mineralization. The use of magnetics and induced polarization (IP) data together allowed for additional east-west structural interpretations of the Testard area, which appear to cross-cut the main shear zone.



    220331 Testard_Figure 3

    Figure 3: Plan Map of Testard Showing Structural Interpretation of Testard Drill Area with Detailed Airborne Magnetics Overlaid on Satellite Image:
    globenewswire.com

    Results from Troilus’ maiden drill program announced today confirm gold bearing structures exist in proximity to the main NE-SW shear/contact zone, specifically with holes TES-21-001 and TES-21-002, which intersected gold-rich quartz veins ~400 metres northwest of the main showing at the intersection of interpreted east-west structural features and the NE-SW trending shear zone.

    Assessment of the results obtained from the drilling program is underway, one of the main goals being to develop models for the orientation of gold-bearing veins. An additional drilling program will be developed to build out from the successes of this initial program.

    Table 1: Testard Drilling, Highlight Table of Results

    Hole

    From (m)

    To (m)

    Interval (m)

    Gold Grade (g/t)

    Silver Grade (g/t)

    TES-21-001


    146.0

    149.8

    3.8

    1.96

    19.12

    including

    148.0

    149.8

    1.8

    2.68

    30.48


    167.3

    168.0

    0.8

    4.86

    38.80


    326.0

    327.0

    1.0

    0.61

    0.25

    TES-21-002


    103.6

    105.0

    1.5

    0.50

    5.00


    258.8

    266.4

    7.6

    4.63

    25.36

    including

    258.8

    260.0

    1.2

    20.20

    76.90

    including

    265.0

    266.4

    1.4

    7.12

    68.45

    TES-21-005


    25.4

    28.6

    3.2

    6.72

    26.71

    including

    25.4

    26.1

    0.7

    9.82

    33.90

    including

    27.3

    28.0

    0.7

    17.30

    75.30

    including

    28.0

    28.6

    0.7

    4.00

    15.20


    31.0

    36.0

    5.0

    0.37

    3.92


    50.0

    51.0

    1.0

    1.02

    8.80


    *Note: No significant assays found in holes TES-21-003, TES-21-004 and TES-21-006. Drill intervals reported are down-hole core lengths as true thicknesses cannot be determined with available information.

    Qualified Person

    The technical and scientific information in this press release has been reviewed and approved by Kyle Frank, P.Geo., Senior Geologist, who is a Qualified Person as defined by NI 43-101. Mr. Frank is an employee of Troilus and is not independent of the Company under NI 43-101.

    Quality Assurance and Control

    During the Testard drill program in 2021, one metre assay samples were taken from BTW core and sawed in half. One-half was sent for assaying at ALS Laboratory, a certified commercial laboratory, and the other half was retained for results, cross checks, and future reference. A strict QA/QC program was applied to all samples; which included insertion of one certified mineralized standard and one blank sample in each batch of 25 samples. Every sample was processed with standard crushing to 85% passing 75 microns on 500 g splits. Samples were assayed by one-AT (30 g) fire assay with an AA finish and if results were higher than 3.5 g/t Au, assays were redone with a gravimetric finish. For QA/QC samples, a 50 g fire assay was done. In addition to gold, ALS laboratory carried out multi-element analysis for ME-ICP61 analysis of 33 elements four acid ICP-AES.

    About Troilus Gold Corp.

    Troilus Gold Corp. is a Canadian-based junior mining company focused on the systematic advancement and de-risking of the former gold and copper Troilus Mine towards production. From 1996 to 2010, the Troilus Mine produced +2 million ounces of gold and nearly 70,000 tonnes of copper. Troilus is located in the top-rated mining jurisdiction of Quebec, Canada, where is holds a strategic land position of 1,420 km² in the Frôtet-Evans Greenstone Belt. Since acquiring the project in 2017, ongoing exploration success has demonstrated the tremendous scale potential of the gold system on the property with significant mineral resource growth. The Company is advancing engineering studies following the completion of a robust PEA in 2020, which demonstrated the potential for the Troilus project to become a top-ranked gold and copper producing asset in Canada. Led by an experienced team with a track-record of successful mine development, Troilus is positioned to become a cornerstone project in North America.

    For more information:

    Caroline Arsenault
    VP Corporate Communications
    +1 (647) 407-7123
    info@troilusgold.com

    Cautionary Note Regarding Forward-Looking Statements and Information

    Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability; the estimate of Mineral Resources in the updated Mineral Resource statement may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. There is no certainty that the Indicated Mineral Resources will be converted to the Probable Mineral Reserve category, and there is no certainty that the updated Mineral Resource statement will be realized.

    This press release contains “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking statements include, but are not limited to, statements regarding the impact of the ongoing drill program and results on the Company, the possible economics of the project and the Company’s understanding of the project; the development potential and timetable of the project; the estimation of mineral resources; realization of mineral resource estimates; the timing and amount of estimated future exploration; the anticipated results of the Company’s ongoing 2022 drill program and their possible impact on the potential size of the mineral resource estimate; costs of future activities; capital and operating expenditures; success of exploration activities; the anticipated ability of investors to continue benefiting from the Company’s low discovery costs, technical expertise and support from local communities. Generally, forward-looking statements can be identified by the use of forward-looking terminology such as “plans”, “expects” or “does not expect”, “is expected”, “budget”, “scheduled”, “estimates”, “forecasts”, “intends”, “continue”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or statements that certain actions, events or results “may”, “could”, “would”, “will”, “might” or “will be taken”, “occur” or “be achieved”. Forward-looking statements are made based upon certain assumptions and other important facts that, if untrue, could cause the actual results, performances or achievements of Troilus to be materially different from future results, performances or achievements expressed or implied by such statements. Such statements and information are based on numerous assumptions regarding present and future business strategies and the environment in which Troilus will operate in the future. Certain important factors that could cause actual results, performances or achievements to differ materially from those in the forward-looking statements include, amongst others, currency fluctuations, the global economic climate, dilution, share price volatility and competition. Forward-looking statements are subject to known and unknown risks, uncertainties and other important factors that may cause the actual results, level of activity, performance or achievements of Troilus to be materially different from those expressed or implied by such forward-looking statements, including but not limited to: there being no assurance that the exploration program will result in expanded mineral resources; risks and uncertainties inherent to mineral resource estimates; the impact the COVID 19 pandemic may have on the Company’s activities (including without limitation on its employees and suppliers) and the economy in general; the impact of the recovery post COVID 19 pandemic and its impact on gold and other metals; the receipt of necessary approvals; general business, economic, competitive, political and social uncertainties; future prices of mineral prices; accidents, labour disputes and shortages; environmental and other risks of the mining industry, including without limitation, risks and uncertainties discussed in the most recent Technical Report and in other continuous disclosure documents of the Company available under the Company’s profile at www.sedar.com. Although Troilus has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. Troilus does not undertake to update any forward-looking statements, except in accordance with applicable securities laws.

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    To: LoneClone who wrote (164627)4/1/2022 2:28:50 PM
    From: LoneClone
       of 167649
     
    OCEANAGOLD REPORTS MINERAL RESOURCES AND RESERVES FOR THE YEAR-ENDED 2021

    ca.finance.yahoo.com

    Thu, March 31, 2022, 1:00 p.m.·32 min read

    Significantly Increases Wharekirauponga Resources in New Zealand

    /NOT FOR DISSEMINATION OR DISTRIBUTION IN THE UNITED STATES AND NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES./

    BRISBANE, March 31, 2022 /CNW/ - OceanaGold Corporation (TSX: OGC) (ASX: OGC) ("OceanaGold" or the "Company") is pleased to provide its annual Resource and Reserve ("R&R") statement for the year ended 31 December 2021.

    Highlights

  • Wharekirauponga ("WKP") Indicated Resource increased 53% from 1.0 million tonnes ("Mt") at 13.4 g/t gold for 0.42 million ounces ("Moz") gold including 0.8 Moz silver to 1.5 Mt at 13.5 g/t gold for 0.64 Moz gold including 1.27 Moz silver. Inferred Resources of 2.3 Mt at 9.4 g/t gold for 0.7 Moz of gold including 1.6 Moz of silver remain, presenting a significant opportunity for future resource conversion.

  • Year-on-year increase of 0.31 Moz Measured and Indicated Resources at Waihi, New Zealand, to 13.9 Mt at 4.81 g/t gold for 2.15 Moz gold, due to the conversion of Inferred Resources at Martha and WKP underground projects.

  • Includes first Indicated Resources for the Palomino underground deposit at Haile, U.S.A; 2.3 Mt at 2.79 g/t gold for 0.20 Moz of gold. Inferred Resources of 3.6 Mt at 2.3 g/t gold for 0.26 Moz remain to be converted.

  • Proven and Probable Reserves stood at 131 Mt at 1.33 g/t gold for 5.63 Moz gold, including 8.02 Moz silver and 0.15 Mt copper, a 0.43 Moz gold decrease year on year mainly due to mining depletion.

  • Measured and Indicated Resources, inclusive of Mineral Reserves stood at 199 Mt at 1.43 g/t gold for 9.13 Moz gold, including 14.4 Moz silver and 0.17 Mt copper, a 0.92 Moz gold decrease year on year largely due to mining depletion and a reduction in the Round Hill open pit resource at Macraes, New Zealand.

  • Scott Sullivan, Acting President and CEO of OceanaGold said, "The recent resource conversion drill results and updated Indicated and Inferred Resources highlight WKP has the makings of a quality gold mine. The 2021 drill program at WKP saw a very high conversion rate of Inferred Resources to Indicated Resources which resulted in the significant increase in Indicated Resources from 1.0 Mt at 13.4 g/t gold for 0.42 Moz gold to 1.5 Mt at 13.5 g/t gold for 0.64 Moz gold including 1.27 Moz silver. The 2022 drill program is building on these exceptional results with a focus on delivering 1 Moz in the short-term at WKP in support of the up-coming pre-feasibility study."

    "Our Reserves and Resources continue to provide a strong foundation for the Company as we steadily increase our gold production over the next three years. The underground potential at Haile is growing with the introduction of the Palomino Indicated Resource and our investment in both exploration and resource conversion drilling. Once we develop the underground infrastructure at Horseshoe we will also have further opportunity to convert resources."

    RESERVES

    As of 31 December 2021, OceanaGold's Proven and Probable ("P&P") Reserves stood at 131 Mt at 1.33 g/t gold for 5.63 Moz of gold, including 8.02 Moz of silver and 0.15 Mt of copper, representing a 0.43 Moz decrease in gold Reserves year-on-year (see Table 1) largely due to mining depletion.

    Table 1: Updated Mineral Reserves (as of 31 December 2021)



    Table 1 Updated Mineral Reserves as of 31 December 2021 (CNW Group/OceanaGold Corporation)
  • Mineral Reserves constrained to mine designs based upon US$1,500/oz gold, US$3.00/lb copper and US$17/oz silver. New Zealand reserves use 0.71 NZD/USD exchange rate.

  • Reported estimates of contained metal are not depleted for processing losses. For underground reserves, cut-offs applied to diluted grades.

  • For Macraes: Frasers Underground cut-off is 1.61 g/t Au while Golden Point Underground cut-off is 1.44 g/t Au.

  • For Waihi Underground, the cut-off for previously unmined stoping areas is 2.2 g/t Au, increasing to 2.9 g/t Au for stoping areas in close proximity to remnant workings.

  • For Didipio: old equivalence is based upon the presented gold and copper prices as well as processing recoveries. Gold Equivalent (AuEq) = Au g/t + 1.37 x Cu%. The 22.2 Mt open pit stockpile inventory includes 5.3 Mt of low-grade stocks mined at an approximate 0.27 g/t AuEq cut-off. The UG, incremental stopes proximal to development already planned to access main stoping areas are reported to a lower cut-off of 0.76 g/t AuEq.

  • For Haile: Open Pit, the primary cut-off grade is 0.5 g/t Au while oxide material is assigned a 0.6 g/t Au cut-off grade. Horseshoe Underground, the cut-off is 1.53 g/t Au, with adjacent lower grade stopes included in the reserves based on an incremental stope cut-off grade of 1.37 g/t Au.

  • Figure 1: Changes to Proven & Probable Mineral Reserves



    Figure 1 Changes to Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation)

    Note: "Depletions" refer to 2021 mining depletion, "Reserve Model Updates" represent drilling-related changes to reserve changes (growth or reductions) or initial reserve declarations, "Economic Factors" relate to mining cost and cut-off grade changes, "Adjustments" relate to changes in mining method assumptions (e.g. open pit versus underground).


    RESOURCES

    As of 31 December 2021, OceanaGold's Measured and Indicated ("M&I") Resources stood at 199 Mt at 1.43 g/t gold for 9.13 Moz of gold, including 14 Moz of silver and 0.17 Mt of copper (Table 2). Mineral Resources are reported inclusive of Mineral Reserves.

    Table 2: Updated Mineral Resources – Measured and Indicated (as of 31 December 2021)



    Table 2 Updated Mineral Resources Measured and Indicated as of 31 December 2021 (CNW Group/OceanaGold Corporation)
  • Mineral Resources include Mineral Reserves. There is no certainty that Mineral Resources, not included as Mineral Reserves, will convert to Mineral Reserves. All resources based upon US$1,700/oz gold, US$3.50/lb copper and US$17/oz silver and a 0.71 NZD/USD exchange rate for New Zealand resources.

  • Open pit resources constrained to shells based upon economic assumptions above. Waihi open pit resources reported within a pit design limited by infrastructural considerations. Underground resources for Didipio, Horseshoe at Haile, and Frasers and Golden Point at Macraes, are reported within volumes guided by optimised stope designs. Underground resources for Palomino at Haile and Martha and WKP at Waihi are reported within optimised stope designs based upon economic assumptions above.

  • For Macraes: Frasers Underground at a 1.25 g/t Au cut-off and Golden Point Underground at a 1.34 g/t Au cut-off.

  • For Waihi: Martha Underground at a 2.15 g/t Au cut-off, WKP at a 2.5 g/t Au cut-off, Martha open pit at a 0.5 g/t Au cut-off and Gladstone open pit at a 0.56 g/t Au cut-off. Martha Underground M&I Resources 5.8 Mt at 5.93 g/t Au for 1.11 Moz. WKP M&I resources 1.5 Mt at 13.5 g/t Au for 0.64 Moz.

  • For Didipio open pit, only stockpiles remain. These include 5.3 Mt of low grade at 0.27 g/t AuEq. Underground resources reported between the 2,460mRL and 1,980mRL with AuEq cut-off based on presented gold and copper prices. AuEq = Au g/t + 1.39 x Cu %.

  • For Haile OP primary cut-off 0.45 g/t Au, oxide cut-off 0.55 g/t Au. Palomino Resources at a 1.39 g/t Au cut-off and Horseshoe Resources at a 1.35 g/t Au cut-off, the difference due to slightly lower metallurgical recovery at Palomino.

  • On a consolidated basis, OceanaGold's M&I Resources decreased by 0.92 Moz (Figure 2). Decreases were mainly due to mining depletion across the Company's operations as well as the reduction in the reportable Round Hill Open Pit Resource at Macraes following the completion of an internal prefeasibility-level study (see section on Macraes). The decreases were partially offset by gains due to resource conversion drilling-related resource updates for Palomino at Haile, WKP and Martha at Waihi, and Golden Point at Macraes.

    Figure 2: Changes to Measured & Indicated Mineral Resources



    Figure 2 Changes to Measured and Indicated Mineral Resources (CNW Group/OceanaGold Corporation)

    Note: "Depletions" refer to 2021 mining depletion, "Resource Model Updates" represent drilling-related resource changes (growth or reductions) or initial resource declarations, "Economic Factors" relate to mining cost and cut-off grade changes, "Adjustments" relate to changes in mining method assumptions (e.g. open pit versus underground).



    As of 31 December 2021, OceanaGold's Inferred Resources stood at 62 Mt at 1.9 g/t gold for 3.9 Moz of gold, including 7.5 Moz of silver and 0.04 Mt of copper (Table 3). Year on year this represents a 0.5 Moz decrease mainly due to the conversion of Inferred Resources at Waihi, Macraes and Haile.

    Table 3: Updated Mineral Resources – Inferred Resource Statement (as of 31 December 2021)



    Table 3 Updated Mineral Resources Inferred Resource Statement as of 31 December 2021 (CNW Group/OceanaGold Corporation)

    See footnotes for Table 2.


    Figure 3: Changes to Inferred Resources



    Figure 3 Changes to Inferred Resources (CNW Group/OceanaGold Corporation)
    NEW ZEALAND

    Waihi

    Underground P&P Reserves at Waihi stood at 4.77 Mt at 4.2 g/t gold for 0.64 Moz gold including 2.23 Moz silver with reserve growth at Martha offsetting mining depletion (Figure 4). No open pit reserves are reported.

    Figure 4: Changes to Waihi Proven & Probable Mineral Reserves



    Figure 4 Changes to Waihi Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation)
    The Waihi underground M&I Resources stood at 7.3 Mt at 7.45 g/t gold for 1.76 Moz gold, including 4.99 Moz silver and open pit M&I Resources stood at 6.6 Mt at 1.86 g/t gold for 0.40 Moz gold, including 2.89 Moz silver (Figure 5). Combined underground and open pit M&I Resources totalled 13.9 Mt at 4.81 g/t gold for 2.15 Moz gold, including 7.87 Moz silver, representing a year-on-year increase of 0.31 Moz due to the conversion of Inferred Resources at WKP and Martha, respectively:

  • Martha Indicated Resources 5.8 Mt at 5.93 g/t gold for 1.11 Moz gold including 3.71 Moz silver.

  • Martha Inferred Resources 2.9 Mt at 5.1 g/t gold for 0.47 Moz gold including 2.0 Moz silver.

  • WKP Indicated Resources 1.5 Mt at 13.5 g/t gold for 0.64 Moz gold including 1.27 Moz silver.

  • WKP Inferred Resources of 2.3 Mt at 9.4 g/t gold for 0.7 Moz gold including 1.6 Moz silver.

  • Figure 5: Changes to Waihi Measured & Indicated Mineral Resources



    Figure 5 Changes to Waihi Measured and Indicated Mineral Resources (CNW Group/OceanaGold Corporation)
    Underground Resources at Waihi

    During 2022, the Company expects to drill 21,235 metres at Martha Underground ("MUG") with a focus on resource conversion (11,875 metres) and resource extension (9,360 metres). This programme is designed to improve resource confidence and to test opportunities proximal to mine design.

    WKP is located in the upper North Island of New Zealand, approximately 10 kilometers north of the Martha Underground and existing Waihi facilities. WKP is a rhyolite-hosted, low sulphidation epithermal quartz vein system. The rhyolites have undergone pervasive hydrothermal alteration, often with complete replacement by quartz and adularia with minor illite and/or smectite clay. Gold mineralisation occurs in association with quartz veining developed along two types of structurally controlled vein arrays. The principal veins occupy laterally continuous, NE trending (025-47°), moderately dipping (60-65°) district-scale graben step faults, reaching up to 10 metres in width. Subsidiary, extensional veins (1-100 centimetres wide) are developed between or adjacent to the principal fault hosted veins.

    The Company expects to drill 16,775 metres at WKP primarily on resource conversion in 2022 to increase the Indicated Resources in support of the prefeasibility study scheduled for release in 2023.

    The Waihi Inferred Resources stood at 1.5 Moz gold, a small decrease year on year (Figure 6). The Inferred Resources at Waihi present a significant opportunity for future conversion.

    Figure 6: Changes to Waihi Inferred Resources



    Figure 6 Changes to Waihi Inferred Resources (CNW Group/OceanaGold Corporation)
    Resource Model Performance

    Table 4 summarizes the Waihi underground resource model reconciliations for 2018 to 2021. Reserve modifying factors have been applied for ore loss and dilution. The resource model to mill-adjusted mine reconciliation data from various ore sources for the four years to 2021 show variable performance from year to year with a reasonable long-term average performance; +8% for tonnes, -2% for grade and +7% for contained gold.

    Table 4: Waihi Underground Model to Mill-Adjusted Mine Reconciliation

    Year

    Resource Model (1), (2)

    Mine (Mill-Reconciled)

    Reconciliation Ratios

    Mt

    grade

    Moz

    Mt

    grade

    Moz

    Mt

    grade

    Moz

    2021(3)

    0.22

    4.19

    0.030

    0.29

    3.24

    0.030

    1.31

    0.77

    1.01

    2020

    0.13

    5.80

    0.024

    0.13

    5.30

    0.022

    1.01

    0.91

    0.92

    2019

    0.43

    5.52

    0.077

    0.43

    5.60

    0.078

    1.00

    1.01

    1.01

    2018

    0.40

    6.20

    0.08

    0.43

    6.80

    0.095

    1.07

    1.10

    1.18

    Total

    1.19

    5.53

    0.211

    1.29

    5.44

    0.225

    1.08

    0.98

    1.07
























    1.

    Underground models include reserve modifying factors for ore loss and dilution

    2.

    Current resource models used

    3.

    2021 mining included Inferred Resources of 0.063 Mt at 3.23 g/t for 7 koz. These Inferred Resources are not included in the reconciliation as they are not considered to have sufficient geological confidence for detailed mine planning.


    Mining during 2018, 2019 and 2020 was largely on the Correnso vein for which reconciliation was in line with expectations. The reconciliation for 2021 largely represents mining at MUG and shows greater variance. However, the mined MUG tonnage to-date is not considered to be large or geologically representative, reflecting less than 5% of the total MUG reserve. The majority of ore mined at MUG to-date has been development ore rather than stoping ore, and with limited grade control coverage. That said, the greater variance in reconciliation performance is in areas with higher geological and grade complexity, particularly in the smaller, subsidiary veins. The modelling and classification of these veins is under review and will continue as mining progresses in 2022.

    Macraes

    The P&P Reserves for Macraes stood at 39.0 Mt at 0.95 g/t gold for 1.20 Moz gold with 0.98 Moz in the open pits and 0.22 Moz in the Frasers and Golden Point Underground mines. Year-on-year drilling-related underground reserve growth at Golden Point Underground and within the open pits has partially offset 2021 mining depletion for a net 0.1 Moz decrease.

    Figure 7: Changes to Macraes Proven & Probable Mineral Reserves



    Figure 7 Changes to Macraes Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation)
    The Macraes M&I Resources stood at 84.6 Mt at 0.93 g/t gold for 2.52 Moz of gold, including 6.9 Mt at 2.53 g/t gold for 0.56 Moz of gold for the Frasers Underground and Golden Point Underground mines. The year-on-year net decrease in M&I Resources of 1.08 Moz is largely due to a 0.95 Moz reduction for the Round Hill Open Pit Resource, Macraes Open Pit and underground mining depletion as well as write-downs at Frasers Underground where development retreat has reduced the prospects of future resource extraction (see Adjustments in Figure 8).

    The reduction of the Round Hill Open Pit Resource followed the completion of an internal study assessing a larger Round Hill Open Pit. Earlier, less detailed studies had provided positive outcomes for the relocation of the processing plant and Mixed Tailings Impoundment ("MTI"), both required to develop the larger Round Hill Open Pit. The financial analysis for the more recent and detailed study however, returned a negative NPV outcome due to additional capital requirements of moving the processing plant. On this basis and current assumptions, reasonable prospects of eventual economic extraction could no longer be maintained for the portion of the pit that required relocation of the plant and MTI. The Round Hill Open Pit M&I Resource decreased from 54 Mt at 0.92 g/t gold for 1.61 Moz to 21 Mt at 0.97 g/t gold for 0.66 Moz.

    Figure 8: Changes to Macraes Measured & Indicated Mineral Resources



    Figure 8 Changes to Macraes Measured and Indicated Mineral Resources (CNW Group/OceanaGold Corporation)
    Macraes Inferred Resources stood at 24 Mt at 0.7 g/t gold for 0.6 Moz of gold, a decrease of 0.2 Moz from the previous year, due mainly to the conversion of Inferred Resources to the Indicated category and, to a lesser extent, mining depletion (Figure 9).

    Figure 9: Changes to Macraes Inferred Resources



    Figure 9 Changes to Macraes Inferred Resources (CNW Group/OceanaGold Corporation)
    Reserve Model Performance

    Table 5 summarizes the combined open pit and underground resource model reconciliations for 2018 to 2021.

    The reserve model to mill-adjusted mine reconciliation data for the four years to 2021 show variable performance from year to year, albeit the long-term average performance for this period has been reasonable; +9% for tonnes, -3% for grade and +6% for contained gold. While the long-term performance has been reasonable, the grade performance for 2020 and 2021 was less than 2018 and 2019, although the contained gold reconciliation has been positive. The causes for the recent grade performance have been a combination of complex mineralization styles, the realization of additional low-grade mineralization in grade control, difficulty in achieving representative drilling coverage at Gay Tan Open Pit due to limited drill rig access, and in 2021, near-surface depletion at Deepdell Open Pit. While geological complexity remains in 2022, resource model performance is expected to return to long term performance. While annual reconciliation fluctuations are expected to continue, the resource estimates are believed to provide an acceptable basis for medium to long term mine planning purposes.

    Table 5: Combined Open Pit and Underground Model to Mill-Adjusted Mine Reconciliation

    Year

    Reserve Model

    Mill-Adjusted Mine

    Reconciliation Ratios



    Mt

    grade

    Moz

    Mt

    grade

    Moz

    tonnes

    grade

    oz

    2021

    4.11

    1.06

    0.14

    4.78

    0.97

    0.15

    1.16

    0.91

    1.06

    2020

    3.74

    1.15

    0.14

    4.71

    1.04

    0.16

    1.26

    0.91

    1.14

    2019

    4.34

    1.23

    0.17

    4.80

    1.18

    0.18

    1.11

    0.96

    1.07

    2018

    6.17

    1.21

    0.24

    5.79

    1.30

    0.24

    0.94

    1.07

    1.00

    Total

    18.4

    1.17

    0.69

    20.1

    1.13

    0.73

    1.09

    0.97

    1.06
























  • Open pit resource models implicitly include mining selectivity. Underground models include reserve modifying factors for ore loss and dilution.

  • Current resource model used.

  • Blackwater

    Resources for the Blackwater Project remain on the Company's inventory and are unchanged from the 31 December 2020 reported resources.

    UNITED STATES OF AMERICA

    Haile

    P&P Reserves totalled 45.4 Mt at 1.75 g/t gold for 2.55 Moz of gold including 3.23 Moz of silver. Of the 2.55 Moz, the Haile Underground contributes 0.42 Moz. Year on year P&P Reserves have decreased 0.29 Moz due to a combination of mining depletion and increased mining costs (Figure 10).

    Figure 10: Changes to Haile Proven & Probable Mineral Reserves



    Figure 10 Changes to Haile Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation)
    As announced on 9 February 2022, OceanaGold completed an internal technical review of the Haile mine during 2021. An outcome of this technical review was an adjustment to the reserve cut-off grade in line with revised cost estimates for mining, processing, and general and administration costs. This has resulted in a reduction in P&P Reserves of approximately 0.12 Moz as shown in Figure 11.

    Total Haile M&I Resources stood at 52.9 Mt at 1.79 g/t gold for 3.04 Moz of gold, including 3.61 Moz of silver. Of the 3.04 Moz of gold, the Haile underground contributes 0.73 Moz which includes the first-time reporting of Indicated Resources for the Palomino Underground deposit; 2.3 Mt at 2.79 g/t gold for 0.20 Moz of gold. Year on year M&I Resources decreased by 0.14 Moz due the combination of mining depletion and a small decrease in the resource reporting shell due to revised costs as noted above (Figure 11). Resource growth at Palomino partially offset these decreases.

    Figure 11: Changes to Haile Measured & Indicated Mineral Resources



    Figure 11 Changes to Haile Measured and Indicated Mineral Resources (CNW Group/OceanaGold Corporation)
    Inferred Resources stood at 11 Mt at 2.0 g/t gold for 0.7 Moz gold. Year-on-year the Inferred Resources decreased 0.4 Moz largely due to infill drilling-related conversion to Indicated Resources (Figure 12).

    Figure 12: Changes to Haile Inferred Resources



    Figure 12 Changes to Haile Inferred Resources (CNW Group/OceanaGold Corporation)
    Palomino Underground Deposit

    Palomino is a gold deposit located approximately 650 metres southwest of the Horseshoe deposit and 300 metres below surface (Figure 13).

    Figure 13: Long-Section looking NNW, showing Palomino Mineralization Relative to Horseshoe, HEX and, entire Haile drilling intercept dataset (colored by Au g/t)



    Figure 13 Long Section looking NNW showing Palomino Mineralization Relative to Horseshoe HEX and entire Haile drilling intercept dataset (CNW Group/OceanaGold Corporation)
    The deposit dimensions are approximately 400 metres long x 70 metres high x 90 metres wide. Lozenge-shaped mineralized zones strike ENE, dip NW and plunge gently NE. Diamond drillhole spacing ranges from 20 to 70 metres. Fine-grained gold is hosted in pyritic and silicified siltstone and intrusive rocks along a steeply SE-dipping, ENE-striking contact with barren dacite flows. Mineralization is truncated by several NNW-striking, sub-vertical, 1 to 25 metres thick diabase dikes.

    The resources are reported within a Mine Stope Optimised volume using a US$1,700 per oz gold price. Due to the diffuse grade boundaries, material not classified as Inferred or Indicated Resource is included as dilution at zero grade. Indicated Resources are currently estimated at 2.3 Mt at 2.79 g/t gold for 0.20 Moz of gold. Inferred Resources of 3.6 Mt at 2.3 g/t gold for 0.26 Moz remain to be converted.

    Reserve Model Performance

    Table 6 summarizes the open pit resource model reconciliations 2018 to 2021. The resource model to mill-adjusted mine reconciliation data for the four years to 2021 show variable performance from year to year albeit the long-term average performance for this period shows +12% for tonnes, -4% for grade and +8% for contained gold. Note that the four-year aggregated grade reconciliation is negatively skewed by low mining selectivity during 2020 which resulted in excessive mining dilution during that year. More selective mining practices re-introduced during 2021 have resolved this.

    While annual reconciliation fluctuations are expected to continue, the open pit resource estimates are believed to provide an acceptable basis for medium to long term mine planning purposes.

    Table 6: Open Pit Model to Mill-Adjusted Mine Reconciliation

    Year

    Reserve Model

    Mine (Mill-Reconciled)

    Reconciliation Ratios

    Mt

    grade

    Moz

    Mt

    grade

    Moz

    Tonnes

    Grade

    Au Oz

    2021

    3.16

    1.98

    0.20

    3.27

    2.17

    0.23

    1.04

    1.09

    1.13

    2020

    2.57

    2.08

    0.17

    3.33

    1.59

    0.17

    1.30

    0.76

    0.99

    2019

    2.87

    1.96

    0.18

    3.18

    1.78

    0.18

    1.11

    0.91

    1.01

    2018

    2.85

    1.67

    0.15

    2.57

    1.93

    0.16

    0.90

    1.16

    1.04

    Total

    11.0

    1.94

    0.69

    12.4

    1.86

    0.74

    1.12

    0.96

    1.08


  • Open pit resource models implicitly include mining selectivity.

  • Current resource model used.

  • PHILIPPINES

    Didipio

    Didipio P&P Reserves stood at 42.2 Mt at 0.91 g/t gold for 1.23 Moz of gold, including 2.57 Moz of silver and 0.15 Mt of copper, a year-on-year decrease due to 2021 mining depletion (Figure 14) as the production ramp-up continues to progress ahead of schedule. A small decrease is noted in Adjustments due to exclusion of sub-economic low-grade material at the tail end of the life of mine schedule.

    Figure 14: Changes to Didipio Proven & Probable Mineral Reserves



    Figure 14 Changes to Didipio Proven and Probable Mineral Reserves (CNW Group/OceanaGold Corporation)
    Didipio M&I Resources stood at 47.8 Mt at 0.92 g/t gold for 1.41 Moz of gold, including 2.88 Moz of silver and 0.17 Mt of copper, a small year-on-year decrease due to 2021 mining depletion (Figure 15), as the production ramp-up continues to progress ahead of schedule. Surface stockpiles include medium and low-grade stocks. 17.6 Mt at 0.38 g/t gold and 0.34% copper remains from open pit mining during 2012 to 2017 (mined to a 0.4 g/t AuEq cut-off) and an additional 5.3 Mt at 0.18 g/t gold and 0.15% copper (mined to a 0.27 g/t AuEq cut-off).

    Figure 15: Changes to Didipio Measured & Indicated Mineral Resources



    Figure 15 Changes to Didipio Measured and Indicated Mineral Resources (CNW Group/OceanaGold Corporation)
    Inferred Resources stood at 0.4 Moz of gold, 0.6 Moz of silver and 0.04 Mt of copper, no change year-on-year.

    Reserve Model Performance

    The reconciliation in Table includes mining from May 2018 to December 2021 covering the period of ramp up for underground mining. The mill feed for this period included rehandled open pit stockpiles, underground development and stope ore. Mining of a crown pillar at the base of the open pit to allow geotechnical strengthening with cement commenced in 2021 and provided the main source of 2021 mill feed. Grade control sampling of the crown pillar was sub-optimal because the focus was on geotechnical strengthening rather than ore extraction. When this mill feed source is exhausted in early 2022, the reconciliation is expected to improve.

    Table 7: Combined Open Pit and Underground Model to Mill-Adjusted Mine Reconciliation

    Year

    Reserve Estimate

    Mill

    Reconciliation Ratios

    Mt

    Au g/t

    Cu %

    Au Moz

    Cu Mt

    Mt

    Au g/t

    Cu %

    Au Moz

    Cu Mt

    Mt

    Au g/t

    Cu %

    Au Moz

    Cu Mt

    2021

    0.64

    1.07

    0.38

    0.02

    0.002

    0.63

    0.92

    0.43

    0.02

    0.003

    0.98

    0.86

    1.12

    0.84

    1.10

    2020

    -

    -

    -

    -

    -

    -

    -

    -

    -

    -











    2019

    2.23

    1.26

    0.44

    0.09

    0.010

    2.33

    1.21

    0.44

    0.09

    0.010

    1.04

    0.96

    1.00

    1.00

    1.05

    2018

    2.27

    1.16

    0.49

    0.08

    0.011

    2.22

    1.26

    0.49

    0.09

    0.011

    0.98

    1.09

    0.99

    1.07

    0.97

    Total

    5.15

    1.19

    0.46

    0.20

    0.023

    5.19

    1.19

    0.46

    0.20

    0.024

    1.01

    1.00

    1.01

    1.01

    1.02


  • Underground models include reserve modifying factors for ore loss and dilution.

  • 2018 only includes May to December to reflect the ramp up into underground mining.

  • Open pit feed = rehandled medium grade stockpiles.

  • Current resource model used.

  • OTHER

    OceanaGold's interest in the Sam's Creek project in New Zealand is 18.47%.

    Table 8: Updated Mineral Resources, Sam's Creek – Minority Interest in Assets (as of 31 December 2021)



    Table 8 Updated Mineral Resources Sams Creek Minority Interest in Assets as of 31 December 2021 (CNW Group/OceanaGold Corporation)
  • OceanaGold has a 18.47% interest in the Sam's Creek Project. Reported at a 0.7 g/t Au cut-off and factored by the percentage ownership.

  • FILING OF TECHNICAL REPORTS

    The company will lodge updated NI 43-101 Technical reports for both Didipio and Haile on 31 March 2022 to provide technical updates for both projects.

    In line with the requirements of the listing rules of the Australian Stock Exchange ("ASX"), the Company has separately filed material summaries and JORC Table 1 information related to the Resource and Reserves with the ASX. These can be found at www.asx.com.au, and is also available on the Company's website at c212.net.

    Authorised for release to market by OceanaGold Corporate Company Secretary, Liang Tang.

    www.oceanagold.com | Twitter: @OceanaGold

    About OceanaGold

    OceanaGold is a multinational gold producer committed to the highest standards of technical, environmental, and social performance. For 31 years, we have been contributing to excellence in our industry by delivering sustainable environmental and social outcomes for our communities, and strong returns for our shareholders. Our global exploration, development, and operating experience has created an industry-leading pipeline of organic growth opportunities and a portfolio of established operating assets including Didipio Mine in the Philippines; Macraes and Waihi operations in New Zealand; and Haile Gold Mine in the United States of America.

    Technical Disclosure

    General

    All Mineral Reserves and Mineral Resources were calculated as of 31 December 2021 and have been calculated and prepared in accordance with the standards set out in the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves dated December 2012 (the "JORC Code") and in accordance with National Instrument 43-101 of the Canadian Securities Administrators ("NI 43-101"). The JORC Code is the accepted reporting standard for the Australian Stock Exchange Limited ("ASX").

    The definitions of Ore Reserves and Mineral Resources as set forth in the JORC Code have been reconciled to the definitions set forth in the CIM Definition Standards. If the Mineral Reserves and Mineral Resources were estimated in accordance with the definitions in the JORC Code, there would be no substantive difference in such Mineral Reserves and Mineral Resources.

    Competent / Qualified Persons

    Macraes: Any updates of Mineral Resources for Macraes open pits have been verified and approved by J. Moore while the updates of Mineral Resources for Macraes underground operations have been verified and approved by M. Grant. Mineral Reserves for Macraes open pits have been verified and approved by, or are based on information prepared by, or under the supervision of, P Doelman. The Mineral Reserves for Macraes underground have been verified and approved by or are based upon information prepared by, or under the supervision of, S. Mazza.

    Blackwater: Any updates of Mineral Resources for Blackwater have been verified and approved by J. Moore.

    Waihi: Any updates of Mineral Resources for Waihi's Martha open pit and Wharekirauponga Underground have been verified and approved by, or are based on information prepared by, or under the supervision of, J. Moore. Any updates of Mineral Resources for Waihi's Gladstone open pit and Martha Underground have been verified and approved by, or are based on information prepared by, or under the supervision of, L. Crawford-Flett. The Mineral Reserves for Waihi have been verified and approved by, or are based on information prepared by, or under the supervision of D. Townsend for underground.

    Haile: The updates of Mineral Resources for Haile open pit and underground have been verified and approved by, or are based on information prepared by, or under the supervision of, J. G. Moore. The updates of Mineral Reserves for Haile open pits have been verified and approved by, or are based on information prepared by, or under the supervision of, G. Hollett and the Mineral Reserves for Haile underground have been verified and approved by or are based upon information prepared by, or under the supervision B. Drury.

    Didipio: The Mineral Resources for Didipio have been verified and approved by, or are based on information prepared by, or under the supervision of, J. Moore while the Mineral Reserves for Didipio underground have been verified and approved by or are based upon information prepared by, or under the supervision P. Jones.

    Messrs Crawford-Flett, Doelman, Grant and Townsend are full-time employees of the Company's subsidiary, Oceana Gold (New Zealand) Limited. Messrs Hollett, Jones, Mazza and Moore are full-time employees of the Company's subsidiary, OceanaGold Management Pty Limited. Ms Drury is a full-time employee of the Company's subsidiary, Haile Gold Mine, Inc.

    Mr Hollett is a Professional Engineer registered with Engineers and Geoscientists of British Columbia. Messrs Doelman, Jones, Mazza, Moore and Townsend are Members and Chartered Professionals with the Australasian Institute of Mining and Metallurgy. Mr Grant is a member of the Australian Institute of Geologists. Ms Drury is a Registered Member with the Society of Mining, Metallurgy & Exploration.

    All such persons are "qualified persons" for the purposes of NI 43-101 and have sufficient experience relevant to the style of mineralisation and type of deposit under consideration and to the activity which they are undertaking to qualify as a "competent person" as defined in the JORC Code.

    Ms Drury and Messrs Crawford-Flett, Doelman, Grant, Hollett, Jones, Mazza, Moore, and Townsend consent to inclusion in this public release of the matters based on their information in the form and context in which it appears. The estimates of Mineral Resources and Mineral Reserves contained in this public release are based on, and fairly represent, information and supporting documentation prepared by the named qualified and competent persons in the form and context in which it appears.

    Technical Reports

    For further scientific and technical information supporting the disclosure in this media release (including disclosure regarding Mineral Resources and Mineral Reserves, data verification, key assumptions, parameters, and methods used to estimate the Mineral Resources and Mineral Reserves, and risk and other factors) relating to the Didipio Gold-Copper Mine, the Macraes Mine, the Haile Gold Mine, the Waihi Gold Mine and the Blackwater project, please refer to the following NI 43-101 compliant technical reports and the Blackwater Preliminary Economic Assessment released on 21 October 2014, available at www.sedar.com under the Company's name:

    a)

    "NI 43-101 Technical Report, Macraes Gold Mine, Otago, New Zealand" dated October 14, 2020, prepared by D. Carr, Chief Metallurgist, of OceanaGold Management Pty Limited, T. Cooney, previously General Manager of Studies of OceanaGold Management Pty Limited, P. Doelman, Tech Services and Project Manager, S. Doyle, Principal Resource Geologist and P. Edwards, Senior Project Geologist, each of OceanaGold (New Zealand) Limited;

    b)

    "Technical Report for the Reefton Project located in the Province of Westland, New Zealand" dated May 24, 2013, prepared by K. Madambi, previously Technical Services Manager of Oceana Gold (New Zealand) Limited and J. Moore, Chief Geologist, of Oceana Gold Management Pty Limited;

    c)

    "Technical Report for the Didipio Gold / Copper Operation Luzon Island" dated March 31, 2022, prepared by D. Carr, Chief Metallurgist, P. Jones, Group Engineer and J. Moore, Chief Geologist, each of Oceana Gold Management Pty Limited;

    d)

    Waihi District Study - Martha Underground Feasibility Study NI 43-101 Technical Report" dated March 31, 2021, prepared by T. Maton, Study Manager and P. Church, Principal Resource Development Geologist, both of Oceana Gold (New Zealand) Limited, and D. Carr, Chief Metallurgist, of OceanaGold Management Pty Limited; and

    e)

    "NI 43-101 Technical Report Haile Gold Mine Lancaster County, South Carolina" dated March 31, 2022, prepared by D. Carr, Chief Metallurgist, G. Hollett, Group Mining Engineer, and J. Moore, Chief Geologist, each of OceanaGold Management Pty Limited, Michael Kirby of Haile Gold Mine, Inc., J. Poeck, M. Sullivan, D. Bird, B. S. Prosser and J. Tinucci of SRK Consulting, J. Newton Janney-Moore and W. Kingston of Newfields and L. Standridge of Call and Nicholas.


    Cautionary Note Regarding Mineral Resources and Mineral Reserves

    The Company's disclosure of Mineral Reserve and Mineral Resource information is governed by NI 43-101 under the guidelines set out in the Canadian Institute of Mining, Metallurgy and Petroleum (the "CIM") Standards on Mineral Resources and Mineral Reserves, adopted by the CIM Council, as may be amended from time to time by the CIM ("CIM Standards"). The disclosure of Mineral Reserve and Mineral Resource information for properties held by the Company is based on the reporting requirements of the JORC Code. CIM definitions of the terms "Mineral Reserve", "Proven Mineral Reserve", "Probable Mineral Reserve", "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource", are substantially similar to the JORC Code corresponding definitions of the terms "Ore Reserve", "Proved Ore Reserve", "Probable Ore Reserve", "Mineral Resource", "Measured Mineral Resource", "Indicated Mineral Resource" and "Inferred Mineral Resource", respectively. Estimates of Mineral Resources and Mineral Reserves prepared in accordance with the JORC Code would not be materially different if prepared in accordance with the CIM definitions applicable under NI 43-101.

    There can be no assurance that those portions of such Mineral Resources that are not Mineral Reserves will ultimately be converted into Mineral Reserves. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. All Mineral Reserves are within the Mineral Resource.

    Cautionary Statement for Public Release

    Certain information contained in this public release may be deemed "forward-looking" within the meaning of applicable securities laws. Forward-looking statements and information relate to future performance and reflect the Company's expectations regarding the generation of free cash flow, execution of business strategy, future growth, future production, estimated costs, results of operations, business prospects and opportunities of OceanaGold Corporation and its related subsidiaries. Any statements that express or involve discussions with respect to predictions, expectations, beliefs, plans, projections, objectives, assumptions or future events or performance (often, but not always, using words or phrases such as "expects" or "does not expect", "is expected", "anticipates" or "does not anticipate", "plans", "estimates" or "intends", or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved) are not statements of historical fact and may be forward-looking statements. Forward-looking statements are subject to a variety of risks and uncertainties which could cause actual events or results to differ materially from those expressed in the forward-looking statements and information. They include, among others, the accuracy of Mineral Reserve and resource estimates and related assumptions, inherent operating risks and those risk factors identified in the Company's most recent Annual Information Form prepared and filed with securities regulators which is available on SEDAR at www.sedar.com under the Company's name. There are no assurances the Company can fulfil forward-looking statements and information. Such forward-looking statements and information are only predictions based on current information available to management as of the date that such predictions are made; actual events or results may differ materially as a result of risks facing the Company, some of which are beyond the Company's control. Although the Company believes that any forward-looking statements and information contained in this press release is based on reasonable assumptions, readers cannot be assured that actual outcomes or results will be consistent with such statements. Accordingly, readers should not place undue reliance on forward-looking statements and information. The Company expressly disclaims any intention or obligation to update or revise any forward-looking statements and information, whether as a result of new information, events or otherwise, except as required by applicable securities laws. The information contained in this release is not investment or financial product advice.



    OceanaGold Corporation (CNW Group/OceanaGold Corporation)
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    To: LoneClone who wrote (164628)4/1/2022 3:31:57 PM
    From: LoneClone
       of 167649
     
    Torex Gold Releases Results of Technical Report for the Morelos Complex

    ca.finance.yahoo.com

    Torex Gold Resources Inc.
    Thu, March 31, 2022, 3:00 p.m.·63 min read

    Figure 1



    Annualized AuEq sold of 374 koz estimated over the life of mine; Annual AuEq sold through 2027 is expected to average 450 koz when the capacity of the processing plant is to be fully utilized
    Figure 2



    ML Project expected to be the sole source of ore post 2027 based on current Mineral Reserves
    Figure 3



    Credible ramp-up period of 3 years assumed for the ML Project
    Figure 4



    Exploration and drilling key to ensuring full capacity utilization in the processing plant post 2027
    Figure 5



    Debt financing expected to support strategic priorities during build-out of the ML Project
    Media Luna Project extends life of mine through 2033; Attractive operating cost profile maintained

    (All amounts expressed in U.S. Dollars unless otherwise stated)

    TORONTO, March 31, 2022 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) has released an updated technical report (“Technical Report”) for its Morelos Complex, which includes an integrated life of mine plan and economics for the producing El Limón Guajes (“ELG”) Mine Complex (consisting of the ELG Open Pits and ELG Underground) and the development stage Media Luna Project (“ML Project”). Based on the results of the feasibility study included in the Technical Report, and with approval from the Board of Directors on development of the ML Project, the Company also announces 2022 capital expenditure guidance specific to the ML Project as well as an updated multi-year production outlook.

    HIGHLIGHTS OF THE TECHNICAL REPORT

    Key Economics – Base case metal prices

  • Morelos Complex: Cumulative cash flow of $1,418M and after-tax NPV (5% discount rate) of $1,040M

  • ML Project: After-tax NPV (5%) of $458M and after-tax IRR of 16.1%

  • Long-term metal prices: $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu

  • Key Economics – Spot case metal prices1

  • Morelos Complex: Cumulative cash flow of $2,322M and after-tax NPV (5%) of $1,751M

  • ML Project: After-tax NPV (5%) of $949M and after-tax IRR of 24.9%

  • Spot metal prices: $1,950/oz Au, $25.50/oz Ag, and $4.70/lb Cu as of March 25, 2022

  • Morelos Complex Summary – Life of Mine

  • Life of mine of 11.75 years commencing April 1, 2022 and ending Q4 2033

  • Annualized gold equivalent (“AuEq”) sold of 374 koz2 including 280 koz of Au

  • Increased exposure to Cu and Ag with annual payable output of 34.8 Mlb Cu and 1,327 koz Ag

  • Total cash cost3 of $809/oz AuEq sold and mine-site all-in sustaining cost3 of $954/oz AuEq sold

  • Annualized revenue of $605M and mine-site EBITDA3 (excludes corporate items) of $298M

  • Morelos Complex Summary – Process plant operating at full capacity (through 2027)

  • Annualized AuEq sold of 450 koz through 2027 when the process plant is operating at full capacity

  • Total cash cost of $779/oz AuEq sold and mine-site all-in sustaining cost of $929/oz AuEq sold

  • Annualized revenue of $733M and mine-site EBITDA of $378M

  • Capital Expenditures

  • $848M to develop and bring the ML Project into commercial production

  • Includes $85M of underground development during pre-commercial period (Q4 2023 to Q4 2024)

  • Total sustaining capital expenditures3 of $545M over life of mine

  • _____________________
    1 See also Table 10 for After-Tax Sensitivities to Key Factors for the Morelos Complex and Media Luna Project.
    2 Gold equivalent (AuEq) sold includes Au and AuEq values for Ag and Cu sold assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu. A summary of life of mine payable production values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.
    3 These measures, as well as TCC margin, AISC margin, and sustaining and non-sustaining capital expenditures, are forward looking Non-GAAP Financial Performance Measures or Non-GAAP ratios (collectively, “Non-GAAP Measures”). Please see Table 13 for the equivalent historical non-GAAP measure. For the year ended December 31, 2021, the following historic Non-GAAP Measures were reported in the Company’s management’s discussion and analysis (“MD&A”) for the year ended December 31, 2021, dated February 23, 2022, which is available on the Company’s website (www.torexgold.com) and under the Company’s SEDAR profile (www.sedar.com): EBITDA - $461.6M; TCC - $674/oz Au; TCC margin $1,120/oz Au; AISC – $928/oz; AISC margin - $865/oz Au; sustaining capital costs - $85.3M; and non-sustaining costs - $152.4M. Please note that the AISC and AISC margin do not include corporate G&A and potential sustaining exploration costs, and mine site EBITDA does not include corporate G&A. Please also see the Cautionary Notes on Non-GAAP Measures below.

    Total Mineral Reserves of 5,123 koz AuEq at an average grade of 3.90 g/t AuEq4

  • Initial Mineral Reserves for Media Luna of 3,360 koz AuEq based on 23.0 Mt at 4.54 g/t AuEq

  • Initiatives underway to realize available upside and build-on on solid base case production/cash flow

  • Exploration/Drilling: Significant potential to expand Mineral Reserves in the ELG Underground, within the broader Media Luna area, and across the entire land package, which is 75% unexplored

  • Development of EPO deposit: Potential to be a nearby source of incremental feed over and above the levels anticipated from the ML Project

  • ELG Underground: Potential to increase throughput with the investment in Portal #3 and utilizing bulk mining in specific zones

  • Jody Kuzenko, President & CEO of Torex, stated:

    “Today we achieve a mission critical milestone in our growth journey with the release of the updated Technical Report for our Morelos Complex and approval from our Board of Directors to proceed with the development of the ML Project. With tremendous future exploration potential, advancing this project is fundamental to setting up our wholly owned flagship Morelos Complex for safe and reliable production, strong free cash flow post the construction period, and lasting economic prosperity for all of those who share stakes in Torex. With this investment, the foundation for the future growth plans of Torex will be firmly laid.

    “We always knew that the Media Luna Project would be challenging. The deposit is situated 7 km away from our existing infrastructure, on the other side of a river, and hosts challenging metallurgy. True to the Torex brand, the economics shown in the Technical Report are grounded in operating costs, capital costs, and ramp-up time frames that are both realistic and achievable, accounting for the current inflationary environment, quotes from vendors, and assumptions on sustaining capital expenditures required to responsibly and sustainably operate a 7,500 tpd underground mine.

    “Notwithstanding these challenges, it is clear the upside economics of developing the ML Project are compelling. We see significant opportunity to enhance the overall return of the ML Project by filling the mill post 2027 and extending the overall mine life beyond what is implied by reserves. The investment we are making in exploration and drilling in 2022, and going forward, reflects our determination to unlock the resource potential of our entire Morelos Property, and deliver on our goal of developing a multi-decade mining operation.

    “Importantly, the ML Project opens up the opportunity for Torex to diversify into becoming a meaningful copper producer – an opportunity that could not have timed the market better. In fact, 20% of revenue of the Morelos Complex is forecast to be attributable to copper, with the percentage increasing as the ML Project ramps up.

    “Given the ongoing success of our strategy to cash up ahead of the build, we expect to fund the development of the ML Project using our robust balance sheet, strong forecasted cash flow, and a prudent level of debt. With over $405M of available liquidity at year-end (including $255M in cash), annual projected cash flow from ELG Mine Complex of $190M through year-end 2024 (prior to capital expenditures on the ML Project), and a goal of maintaining a minimum liquidity position of $100M, we are evaluating debt financing in the order of $250M to $300M. Multiple debt financing options are being considered, including a gold prepay, high yield debt, and an expanded credit facility. This financing decision will be made in the months to come.

    “There is no doubt that we are well positioned financially, socially, and technically to advance the development of the ML Project while continuing to invest in value accretive exploration – exploration that will both extend the life of mine and continue to further enhance the overall return of the Morelos Complex. The future is here and it’s clear – and in true Torex form, we will now turn our focus onto delivering.”

    _____________________
    4 Gold equivalent (AuEq) Mineral Reserves account for underlying metal prices and metallurgical recoveries. Breakdown of Mineral Reserves by metal is outlined in Table 11 and a breakdown of Mineral Resources by metal is outlined in Table 12.

    SUMMARY OF TECHNICAL REPORT FOR MORELOS COMPLEX

    The Technical Report outlines the updated economics of the Morelos Complex in Guerrero, Mexico. The Technical Report includes an integrated mine plan for the ELG Mine Complex as well as the ML Project. Operational and economic estimates are based on a project period commencing April 1, 2022, unless otherwise noted. References to production and metal sold are based on payable levels unless otherwise stated. All values of economic inputs are nominally based, and all amounts expressed in U.S. dollars unless otherwise stated.






    Table 1: Summary of Technical Report





    Metrics as of April 1, 2022


    Morelos

    ELG

    ML



    Complex

    Standalone

    Incremental

    Total Processed





    Life of Mine

    years

    11.75

    3.5

    8.25

    Total ore processed

    kt

    39,778

    15,931

    23,847

    Gold (Au) grade processed

    g/t

    2.89

    2.91

    2.88

    Silver (Ag) grade processed

    g/t

    16.7

    4.3

    25.0

    Copper (Cu) grade processed

    %

    0.56

    0.12

    0.85

    Total Payable Sold





    Gold (Au)

    koz

    3,294

    1,330

    1,964

    Silver (Ag)

    koz

    15,587

    661

    14,926

    Copper (Cu)

    Mlbs

    409

    4

    405

    Gold equivalent (AuEq)

    koz

    4,392

    1,347

    3,045

    Unit Operating Costs (including PTU)





    ELG Open Pit

    $/t mined

    $2.81



    ELG Underground

    $/t ore mined

    $98.19



    ML Underground

    $/t ore mined

    $34.04



    Processing

    $/t ore milled

    $34.54



    Site support

    $/t ore milled

    $13.47



    Transport/Treatment/Refining

    $/t ore milled

    $5.67



    Total operating cost

    $/t ore milled

    $84.15



    Total operating cost with royalties

    $/t ore milled

    $89.08



    Operating Costs





    Total cash costs - gold equivalent

    $/oz AuEq

    $809

    $831


    Mine-site all-in sustaining costs - gold equivalent

    $/oz AuEq

    $954

    $1,023


    Total cash costs - by-product

    $/oz Au

    $545

    $820


    Mine-site all-in sustaining costs - by-product

    $/oz Au

    $739

    $1,015


    Total Capital Expenditures





    Non-sustaining

    $M

    $850

    $2

    $848

    Sustaining

    $M

    $545

    $184

    $361

    Reclamation and closure

    $M

    $93



    Economics





    Gross revenue

    $M

    $7,106

    $2,234

    $4,872

    Mine-site EBITDA

    $M

    $3,503

    $1,067

    $2,436

    Cumulative cash flow

    $M

    $1,418

    $590

    $828

    After-tax NPV (5% discount rate)

    $M

    $1,040

    $582

    $458

    After-tax IRR

    %



    16.1%

    Project payback period

    years



    5.8

    Base Case Commodity/Currency





    Gold price

    $/oz

    $1,600

    $1,600

    $1,600

    Silver price

    $/oz

    $21.00

    $21.00

    $21.00

    Copper price

    $/lb

    $3.50

    $3.50

    $3.50

    MXN/USD


    20.00

    20.00

    20.00


    Notes to Table 1

  • Total cash costs – gold equivalent, mine-site all-in sustaining costs – gold equivalent, total cash costs – by-product, mine-site all-in sustaining costs – by-product, non-sustaining and sustaining capital costs and mine-site EBITDA are Non-GAAP Measures. See footnote 3 above and Cautionary Note below on Non-GAAP Measures.

  • AuEq sold includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu.

  • Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

  • The updated mine plan and economics outlined for the Morelos Complex in the Technical Report are based on Proven & Probable Mineral Reserves for the ELG Mine Complex and the Media Luna Project. Differences between Mineral Reserves (tonnes and grade) compared to life of mine totals outlined in Table 1, reflect a project period commencing April 1, 2022 compared with Mineral Reserves which have an effective date of December 31, 2021 for the ELG Mine Complex and an effective date of October 31, 2021 for the ML Project. Details on the Company’s Mineral Reserves and Mineral Resources can be found in Table 11 and Table 12.

    Metal Sold
    Over an estimated life of mine of 11.75 years, based on Mineral Reserves, the Morelos Complex is expected to deliver annualized payable sales of 280 koz of gold (“Au”), 1,327 koz of silver (“Ag”), and 34.8 Mlb of copper (“Cu”). On a AuEq basis2, annualized payable AuEq sold over the life of the Morelos Complex is forecast to average 374 koz. AuEq sold is calculated by applying the long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu assumed within the base case economics set out in the Technical Report. Metal sales are after metallurgical recoveries and payable factors for Au, Ag, and Cu.

    During the period in which the capacity of the processing plant is fully utilized (April 2022 through December 2027), annualized AuEq sold is forecast to average 450 koz. Based on current Mineral Reserves, annual sales are forecast to decline post 2027 when the ML Project becomes the sole source of feed for the processing plant. Initiatives to fill the mill beyond 2027 are currently underway (Figure 1).

    Figure 1: Annualized AuEq sold of 374 koz estimated over the life of mine; Annual AuEq sold through 2027 is expected to average 450 koz when the capacity of the processing plant is to be fully utilized
    Figure 1 is available at globenewswire.com

    Notes to Figure 1:

  • AuEq sold includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu.

  • A summary of life of mine payable sold values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.

  • 2022 payable AuEq sold includes Q1/22 versus the Technical Report which incorporates estimates over the project period commencing April 1, 2022.

  • Over the life of the Morelos Complex, approximately 75% of AuEq sold is attributable to Au, approximately 20% to Cu, and the remainder to Ag. The proportion of AuEq sold attributable to Cu is expected to increase materially commencing with start-up of the ML Project, with annual payable Cu of approximately 45 Mlb forecast between 2025 and 2033, representing close to 28% of AuEq sold over this period.

    Mining
    Ore for the Morelos Complex will be sourced from the ELG Open Pit operation, ELG Underground operation, and ML Project. Production during the near-term will be predominantly supported by ELG Open Pit while longer term production will be supported by the ML Project. Ongoing Reserve growth could extend the current production profile of the ELG Underground beyond 2027 (Figure 2).

    Mining activities within the ELG Open Pit operations are expected to decline over the coming years with depletion of the Guajes and El Limón Sur pits in H1 2023 and the El Limón open pit in H2 2024.

    Mining activities within the ELG Underground are forecast to run through Q3 2027 based on Mineral Reserves and assume an average daily mining rate of 1,370 tpd between 2022 and 2026. The mining method considered in the ELG Underground is cut-and-fill. Opportunities to transition to lower cost bulk mining are currently being studied, which could result in potentially higher output in the ELG Underground and lower unit costs. The Company also sees significant potential to continue to grow the Mineral Reserves of the ELG Underground, which increased 20% in 2021 following a 15% increase in 2020.

    Figure 2: ML Project expected to be the sole source of ore post 2027 based on current Mineral Reserves
    Figure 2 is available at globenewswire.com

    Notes to Figure 2:

  • Ore mined in 2022 includes Q1/22 versus the Technical Report which incorporates estimates over the project period commencing April 1, 2022.

  • The ML Project is being developed with six primary mining zones each with designated infrastructure. At steady-state production, the underground mine is expected to deliver an average rate of 7,500 tpd of ore to the upgraded processing plant. The Technical Report assumes a credible ramp-up to steady-state production with first development ore in Q4 2023. Production stoping is expected to commence in Q2 2024 with the mine achieving commercial production in Q1 2025. The ML Project is expected to be operating at 7,500 tpd in Q1 2027, implying a 3-year ramp-up from first production ore or 3.5 years from first development ore (Figure 3).

    Figure 3: Credible ramp-up period of 3 years assumed for the ML Project
    Figure 3 is available at globenewswire.com

    The predominant mining method at the ML Project will be longhole stoping. Mined stopes will be filled using paste backfill. The paste plant will be located on surface with access from the south side of the Balsas River. Ore will be conveyed through the 6.5-kilometre Guajes Tunnel, which optimizes the use of existing infrastructure by connecting the processing plant on the north side of the Balsas River to the ML Project on the south side.

    Processing
    Ore mined from the Morelos Complex (ELG Open Pit, ELG Underground and ML Project) as well as surface stockpiles will be processed through the existing facility located on the north side of the Balsas River. Upgrades to the existing processing plant are required to deal with higher levels of soluble iron and recover elevated levels of copper and silver contained within the ML deposit relative to those found within the ELG Mine Complex. Additions to the current processing plant include a Cu flotation circuit, an FeS flotation circuit, water treatment facility, regrind mill, and variable speed drives on the ball mill.

    The current processing facility is expected to operate at 13,000 tpd through September 2024. The current plan is to complete the required tie-ins to the processing plant over a 4-week period in October 2024, with wet commissioning to commence in November 2024. The commissioning period for the flotation circuits is expected to be relatively straight forward, and steady-state throughput of 10,600 tpd is expected to be reached by year-end 2024. Depending on the mix of ore types and sources, a portion of feed will be blended, while other portions will be batched processed over the life of mine.

    A separate stockpile of ore mined from the ML Project between Q4 2023 and Q4 2024 will be created to facilitate the wet commissioning of the upgraded processing plant (Figure 4).

    Figure 4: Exploration and drilling key to ensuring full capacity utilization in the processing plant post 2027
    Figure 4 is available at globenewswire.com

    Notes to Figure 4:

  • Ore processed in 2022 includes Q1/22 versus the Technical Report which incorporates estimates over the project period commencing April 1, 2022.

  • The Company sees significant potential to bolster the long-term production profile of the Morelos Complex by extending the life of the ELG Underground, potentially increasing mining rates in the ELG Underground, potentially developing the nearby EPO deposit, and identifying additional sources of incremental feed across the broader Morelos Property. Incremental sources of higher-grade feed would allow the Company to defer the processing of lower grade stockpiles until later in the mine life.

    The upgraded processing plant is expected to result in commercially meaningful recoveries for Cu and improved recoveries for Ag, while maintaining Au recoveries at similar levels to those currently being achieved. Metallurgical recoveries over the life of the Morelos Complex are expected to average 89.8% Au, 80.5% Ag, and 86.4% Cu. The life of mine recoveries, including Media Luna, compare favourably to the current plant configuration recoveries of 89.0% Au, 30.0% Ag and 10.0% Cu.











    Table 2: Upgraded processing plant expected to deliver significantly higher recoveries for Cu and Ag

    Morelos Complex

    Concentrate

    Doré/Other

    Total


    Au

    Ag

    Cu

    Au

    Ag

    Cu

    Au

    Ag

    Cu


    (koz)

    (koz)

    (Mlb)

    (koz)

    (koz)

    (Mlb)

    (koz)

    (koz)

    (Mlb)

    Life of Mine










    Recovered to

    37.3%

    72.6%

    82.8%

    52.5%

    7.9%

    3.5%

    89.8%

    80.5%

    86.4%

    Recovered metal

    1,380

    15,461

    407.4

    1,940

    1,681

    17.2

    3,320

    17,142

    424.6

    Payable factor

    98.25%

    90.00%

    96.50%

    99.96%

    99.50%

    96.50%

    99.25%

    90.93%

    96.50%

    Payable metal

    1,354

    13,915

    392.3

    1,940

    1,673

    16.6

    3,294

    15,587

    408.9


    Notes to Table 2:

  • Recoveries and payable factors are based on the project period commencing April 1, 2022.

  • Recovered production is subject to payable factors associated with metal contained in concentrate and to a lesser extent doré. Over the life of mine, total payable factors for metals contained in concentrate and doré/other are forecast to average 99.3% Au, 90.9% Ag, and 96.5% Cu (Table 2).

    Tailings Management
    Tailings from the current processing facility will continue to be deposited in the existing Filtered Tailings Storage Facility. Upon commissioning of the upgraded processing plant, the Company envisions depositing tailings into the depleted Guajes open pit. Over the life of the Morelos Complex, approximately 50% of tailings generated will be deposited into one of the tailings facilities with the remainder used underground as paste back-fill.

    Key Infrastructure
    The development of the ML Project requires significant investment in infrastructure to access the deposit as well as exploit the deposit, including development of the Guajes Tunnel, South Portal Upper, South Portal Lower and a surface paste plant.

    The 6.5-kilometre Guajes Tunnel is a key schedule item as the tunnel will be the primary conduit for moving ore, material, supplies, and personnel between ML on the south side of the Balsas River and the processing plant on the north side. The $76M go forward investment in the Guajes Tunnel, although more capital intensive than concepts outlined in the 2018 Preliminary Economic Assessment (the “PEA”), was selected as the superior option given that it provides unfettered access to the entire south side of the Morelos Property, an area the Company believes offers significant resource upside.

    The development of South Portal Upper and South Portal Lower will provide access for personnel, materials, and supplies from the south side of the property. These access points will also allow for the development of the upper, middle, and lower portions of the Media Luna deposit in advance of the Guajes Tunnel being completed. In addition, South Portal Lower will allow the Company to commence development of the Guajes Tunnel from the south side of the Balsas River, which will optimize the overall progress of tunnelling. The Company has budgeted advance rates of 6-6.5 metres/day (“m/d”) from north to south and 4.5-5 m/d from south to north. Development of the two southside portals is estimated at $40M over the project period.

    The construction of an appropriate surface paste plant on the south side of the Balsas River is also an upgrade over the PEA conceptual design which envisioned cemented rock fill. Paste backfill is a more suitable option for mining the Media Luna deposit given the predominant mining method will be longhole stoping, average size of stopes, overall scale of the underground operation, and more attractive operating cost profile. Construction of the paste plant and associated tailings pipeline is estimated at $78M.

    The increase in power requirements associated with the ML Project and upgraded processing facility will require upgrades to the main power line, substation, and switching centre. Overall power demand is expected to increase to a peak load of 60 MW in 2027 from 25 MW in 2022. Power upgrades are estimated at $19M.

    Capital Expenditures
    Non-sustaining capital expenditures3 over the life of the Morelos Complex are estimated at $850M, including $848M to bring the ML Project into commercial production. The upfront capital investment in the ML Project includes $85M of underground mine development during the pre-commercial mining period between Q4 2023 and Q4 2024 (Table 3).

    The upfront capital required to develop the ML Project excludes $124M of direct project expenditures incurred prior to April 1, 2022, of which $37M is related to the Guajes Tunnel and $28M to the development of South Portal Upper and Lower. In addition to the ML Project, approximately $2M is estimated to complete Portal #3 within the ELG Underground.

    Of the upfront capital expenditure to develop the ML Project, approximately 60% is related to direct project expenditures and the remainder is associated with indirect expenditures, including $62M related to freight and IMMEX. Of the direct project expenditures, the largest capital outlays are related to underground mine development ($173M), accessing the deposit via the Guajes Tunnel ($76M) as well as South Portal Upper and Lower ($40M), upgrades to the process plant ($98M), and tailings/paste plant ($78M). Of the indirect expenditures, the largest components are contingency ($100M) and EPCM costs ($82M).




    Table 3: The ML Project is expected to cost $848M to develop



    Metrics as of April 1, 2022

    Total



    ($M)


    Non-Sustaining - Media Luna Project



    Directs



    Guajes Portal & Tunnel

    $75.8


    South Portals & Tunnels

    $40.2


    Underground Mine

    $172.6


    Process Plant

    $98.3


    Tailings and Paste Plant

    $77.8


    On-Site Infrastructure

    $15.0


    Off-Site Infrastructure

    $25.9


    Total Directs

    $505.6


    Indirects



    Freight and IMMEX

    $61.6


    Contractor Indirects

    $20.3


    Mobilization, Spares, Vendor Support

    $26.6


    EPCM

    $81.5


    Owners Cost

    $53.3


    Contingency

    $99.5


    Total Indirects

    $342.8


    Total Non-Sustaining - Media Luna Project

    $848.4


    Total Non-Sustaining - ELG

    $1.7


    Total Non-Sustaining - Morelos Complex

    $850.1



    Notes to Table 3:

  • Non-sustaining capital expenditures is a Non-GAAP Measure. See footnote 3 above and the Cautionary Note below on Non-GAAP Measures.

  • Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

  • Sustaining capital expenditures over the life of the project are estimated at $545M, implying an average annual spend of $46M. Sustaining capital expenditures include $94M of capitalized stripping within the ELG Open Pit.





    Table 4: Annual sustaining capital expenditures expected to average $46M over life of the Morelos Complex

    Metrics as of April 1, 2022

    Total

    Total

    Total


    ($M)

    ($/t ore)

    ($/oz AuEq)

    Total ore processed (kt)


    39,778


    Total payable gold equivalent sold (koz AuEq)



    4,392

    Sustaining




    ELG Open Pit - Capitalized Stripping

    $93.7

    $2.4

    $21

    ELG Open Pit - Other

    $24.8

    $0.6

    $6

    ELG Underground

    $33.8

    $0.8

    $8

    Media Luna Underground

    $266.0

    $6.7

    $61

    Process Plant

    $92.8

    $2.3

    $21

    Support equipment leases

    $34.0

    $0.9

    $8

    Total Sustaining - Morelos Complex

    $545.1

    $13.7

    $124


    Notes to Table 4:

  • Sustaining capital expenditure is a Non-GAAP Measure. See footnote 3 above and Cautionary Note below on Non-GAAP Measures.

  • AuEq sold includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu.

  • A summary of life of mine payable sold values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.

  • Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

  • Reclamation costs over the life of the project are estimated at $93M.

    Operating Costs
    Total cash costs (“TCC”)3 and mine-site all-in sustaining costs (“AISC”)3 are expected to average $809/oz AuEq sold and $954/oz AuEq sold over the life of mine. On a by-product basis (net of Cu and Ag credits), TCC and mine-site AISC are expected to average $545/oz Au sold and $739/oz Au sold, respectively.





    Table 5: Attractive cost profile maintained with the development of the ML Project

    Metrics as of April 1, 2022

    LOM

    AuEq

    Au


    ($M)

    ($/oz)

    ($/oz)

    Metal Sold




    Total payable gold equivalent sold (AuEq)


    4,392


    Total payable gold sold (Au)



    3,294

    Operating Costs




    Operating expenses

    $3,122

    $711

    $947

    Treatment/Refining/Transport

    $226

    $51

    $69

    Royalties

    $206

    $47

    $63

    Total cash costs - before adjustments

    $3,554

    $809

    $1,079

    Silver revenue (by-product)

    ($1,432)

    $0

    ($99)

    Copper revenue (by-product)

    ($327)

    $0

    ($435)

    Total cash costs - after adjustments

    $1,795

    $809

    $545

    Capitalized open pit waste mining

    $94

    $21

    $28

    Sustaining capital expenditures

    $451

    $103

    $138

    Reclamation

    $93

    $21

    $28

    Mine-site all-in sustaining costs

    $2,433

    $954

    $739


    Note to Table 5:

  • Total cash costs and mine site all-in sustaining costs are Non-GAAP Measures. See footnote 3 above and Cautionary Note below on Non-GAAP Measures

  • AuEq sold includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu.

  • A summary of life of mine payable sold values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.

  • Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

  • At base case metal prices, the Morelos Complex is expected to deliver a TCC margin3 of 50% over the project period and a mine-site AISC margin3 of 41%. Mine-site AISC and margins exclude corporate level costs.

    Operating expenses include approximately $25/oz AuEq sold of profit sharing (“PTU”) over the life of the Morelos Complex. PTU has been allocated to mining costs, processing costs and site administration costs. PTU is mandated by the Government of Mexico and is based on taxable profits generated by the mine in Mexico. The breakdown of key unit costs, with and without PTU, is summarized in Table 9.

    The Company sees opportunities to reduce unit costs by filling the mill, as fixed costs associated with processing and site general and administrative costs (“G&A”) would clearly benefit from higher capacity utilization in the processing plant post-2027.

    Economics
    The after-tax NPV (5% discount rate) of the Morelos Complex is estimated at $1,040M assuming long-term metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag, and $3.50/lb Cu. The after-tax NPV (5%) of the ML Project is estimated at $458M with a projected after-tax IRR of 16.1%.

    At spot metal prices, the Morelos Complex has an estimated after-tax NPV (5%) of $1,751M. The after-tax NPV (5%) of the ML Project is estimated at $949M with an implied after-tax IRR of 24.9%. Spot case economics (as of March 25, 2022) assume metal prices of $1,950oz Au, $25.50/oz Ag, and $4.70/lb Cu.

    The NPV and IRR estimates outlined in the March 2022 Technical Report are predicated on a project period commencing April 1, 2022 (Table 6).









    Table 6: NPV of Morelos Complex $1,040M at base case prices; NPV rises to $1,751M at spot prices

    Metrics as of April 1, 2022


    Morelos

    ELG

    ML

    Morelos

    ELG

    ML



    Complex

    Standalone

    Incremental

    Complex

    Standalone

    Incremental




    Base Case Metal Prices


    Spot Case Metal Prices

    Economics








    Gross revenue

    $M

    $7,106

    $2,234

    $4,872

    $8,738

    $2,626

    $6,112

    EBITDA

    $M

    $3,503

    $1,067

    $2,436

    $4,969

    $1,428

    $3,541

    After-tax NPV (0%)

    $M

    $1,418

    $590

    $828

    $2,322

    $823

    $1,499

    After-tax NPV (5%)

    $M

    $1,040

    $582

    $458

    $1,751

    $802

    $949

    After-tax NPV (10%)

    $M

    $778

    $572

    $206

    $1,355

    $781

    $575

    After-tax IRR

    %



    16.1%



    24.9%

    Project payback period

    years



    5.8



    5.3

    Long-Term Metal Prices








    Gold price

    $/oz

    $1,600

    $1,600

    $1,600

    $1,950

    $1,950

    $1,950

    Silver price

    $/oz

    $21.00

    $21.00

    $21.00

    $25.50

    $25.50

    $25.50

    Copper price

    $/lb

    $3.50

    $3.50

    $3.50

    $4.70

    $4.70

    $4.70


    Notes to Table 6:

  • EBITDA is a Non-GAAP Measure. See footnote 3 above and the Cautionary Note below on Non-GAAP Measures.

  • Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

  • Owing to the intermingled nature of the ML Project with the existing ELG Mining Complex (ELG standalone case), the NPV and IRR had to be calculated with a view to fairly illustrating the value of the ML Project. The after-tax NPV of the ML Project was calculated as the difference between the NPV of the Morelos Complex and the NPV of the ELG standalone case using constant discount rates. The IRR and payback period for the ML Project were calculated using the differential between the after-tax cash flow of the Morelos Complex and the ELG standalone case. The calculation of NPV and IRR under all cases include reclamation/closure costs.

    The ELG standalone case excludes a portion of underground Mineral Reserves, which would be processed after Q3 2025. This is because, without the development of the ML Project, it would not be economic to process the remaining Mineral Reserves, as the ELG Underground would not be able to support the overhead of operating the processing plant and site administration post depletion of open pit reserves and surface stockpiles.

    Given the underlying exploration potential of the broader Morelos Property, including a number of well supported targets, Torex expects to build on the point in time economics set out in the Technical Report by extending Mineral Reserves within the existing deposits, potentially bringing new deposits such as the nearby EPO deposit into Reserves, and identifying new sources of incremental feed beyond the ML Project. The focus on drilling is not only to extend the current life of the Morelos Complex, but to bolster medium-term production by filling the mill beyond 2027; on the current reserve case, this is when the ML Project becomes the sole source of feed, and the processing plant will be under utilized.

    The economics of the Morelos Complex and the ML Project are highly sensitive to changes in metal prices as well as estimated operating and capital costs (see Table 10 for a detailed sensitivity analysis).

    ESG & Permitting
    As the Morelos Complex evolves, Torex will continue to build on its reputation as an industry leader in ESG. The health and safety of the Company’s workforce and surrounding communities will be attended to in all aspects of the design and construction of the ML Project. The Company’s robust environmental and social management systems will extend from the ELG Mine Complex to the ML Project, with a commitment to meet or surpass environmental regulatory requirements while doing zero harm to the natural environment. The planned hybrid mining fleet (battery electric and diesel) at the ML Project will also contribute to the Company’s ongoing efforts to reduce its carbon footprint.

    All required surface rights to land for ongoing operations at the ELG Mine Complex and for the direct development of the ML Project have been secured through long-term lease agreements. Relationships with local communities remain positive and productive on both the north and south sides of the Balsas River, through the implementation of 11 unique community development agreements (CODECOPs) that promote local community and economic development.

    The ELG Mine Complex has all necessary permits allowing for operations. An environmental permit modification (“MIA Modification”) was granted in March 2021 to allow for early works outside of the existing permit boundary to access the Media Luna deposit on the south side of the Balsas River. In July 2021, the Company applied for a ‘MIA-Integral’ to allow for integrated operations at the ELG Mine Complex and the ML Project. There are no major technical or social risks that have been identified, and approval is expected in the first half of 2022. In addition, the Company will require authorization from utility authorities to increase the power draw for the ML Project, through a connection to the regional 230kV power line system for the higher electricity loads for the ML Project. An environmental permit modification is also planned for submission in the second half of 2022 for the future in-pit tailings storage facility.

    The Company will continue to achieve compliance with voluntary ESG performance standards such as the World Gold Council Responsible Gold Mining Principles, the International Cyanide Management Code, and the Mexican federal environmental agency’s “Industria Limpia” (Clean Industry) certification. In addition, the future in-pit tailings storage facility is being designed in accordance with the new Global Industry Standard on Tailings Management.

    FUNDING AND LIQUIDITY
    Torex plans to fund the development of the ML Project through internal cash flow as well as a prudent level of long-term debt. The Company has also taken initiatives to reduce price uncertainty during the development of the ML Project. At year-end, Torex had $256M of cash, no long-term debt and total liquidity of $406M, including $150M available on the Company’s undrawn credit facility.

    Leveraging the base case economics outlined in the Technical Report, the Company expects to generate average annual cash flow of approximately $190M (approximately $290M at spot case metal prices) prior to capital expenditures on the ML Project between 2022 and 2024. The projected cash flow through 2026 includes annual corporate G&A of $20M and an assumed annual exploration/drilling scenario of $35M, expenditures which were not included in the asset level economics in the Technical Report.

    Figure 5: Debt financing expected to support strategic priorities during build-out of the ML Project
    Figure 5 is available at globenewswire.com

    Notes to Figure 5:

  • Projected year-end cash balances based on cash flow profile outlined in March 2022 Technical Report using base case metal prices of $1,600/oz Au ($1,700/oz in 2022), $21/oz Ag and $3.50/lb Cu.

  • Cash flows adjusted to reflect an additional $20M annually of Corporate G&A and $35M annually of exploration/drilling through 2026.

  • Debt of $275MM assumed within funding scenario and includes debt servicing costs (interest rate of 7%), a four-year term, and a bullet repayment in 2026.

  • Based on the current projections, assumptions noted previously and a desire to maintain $100M of liquidity throughout the build, Torex plans to finance the remaining expenditures through long-term debt. The Company plans to be in a position to execute on a debt financing in H2 2022 assuming favourable market conditions and pricing. Debt options currently being investigated include a gold prepay, high yield debt, and/or expanded credit facility. Depending on the debt vehicle chosen, Torex anticipates debt financing in the range of $250M to $300M.

    The Company recently executed monthly forward price contracts on future gold production to reduce downside price risk during the build-out of the ML Project. The hedges represent approximately 25% of forecast gold production between Q4 2022 and Q4 2023. Details of the forward contracts are as follows:

  • Q4 2022: 30 koz in total at an average gold price of $1,910/oz

  • FY 2023: 108 koz in total at an average gold price of $1,924/oz

  • Management will continue to monitor market conditions and may enter into additional contracts to minimize downside price risk during the build-out of the ML Project.

    2022 CAPITAL EXPENDITURE GUIDANCE FOR ML

    With Board approval granted for the development of the ML Project, the Company anticipates investing $220M to $270M in the development of the ML Project with an additional $20M of non-sustaining capital expenditures3 related to infill drilling at the ML Project and other expenditures. Annual production and cost guidance for 2022 remains unchanged from the levels outlined in January 2022 (Table 7).





    Table 7: Torex expects to invest $220 to $270M towards the development of the ML Project in 2022



    2022 Guidance

    2022 Guidance



    Updated

    Original

    Gold Production

    koz

    430 to 470

    430 to 470

    Total Cash Costs

    $/oz

    $695 to $735

    $695 to $735

    All-in Sustaining Costs

    $/oz

    $980 to $1,030

    $980 to $1,030

    Sustaining Capital Expenditures




    Capitalized Waste

    $M

    $50 to $60

    $50 to $60

    ELG Sustaining

    $M

    $35 to $45

    $35 to $45

    Total Sustaining

    $M

    $85 to $105

    $85 to $105

    Non-Sustaining Capital Expenditures




    ELG Non-Sustaining

    $M

    $15 to $20

    $15 to $20

    Media Luna Project

    $M

    $220 to $270

    na

    Media Luna Infill Drilling/Other

    $M

    $20

    na

    Non-Sustaining Capital Expenditures

    $M

    $255 to $310

    Pending


    Notes to Table 7:

  • Total cash costs, all-in sustaining costs, sustaining capital expenditures and non-sustaining capital expenditures are Non-GAAP Measures. See footnote 3 above and Cautionary Note below on Non-GAAP Measures.

  • 3-YEAR OUTLOOK

    Based on the results of the updated Technical Report, the Company has updated its 3-year production outlook to incorporate AuEq payable production2 from the ML Project commencing in 2024. The updated outlook forms the new base case for production from the Company’s Morelos Complex. Initiatives to further improve upon the mine plans are underway, including further potential optimizations at the ELG Mine Complex (Table 8).







    Table 8: Multi-year outlook bolstered by production from the ML Project starting in 2024

    Payable Production


    Guidance

    Multi-Year Outlook



    2022

    2023

    2024

    2025

    Updated Outlook (Morelos Complex)






    Gold

    koz

    430 to 470

    420 to 460

    -

    -

    Gold equivalent

    koz

    -

    -

    385 to 425

    415 to 455

    Prior Outlook (ELG Complex standalone)






    Gold

    koz

    430 to 470

    400 to 450

    300 to 350

    -


    Notes to Table 8:

  • Gold equivalent (AuEq) payable production includes Au and AuEq values for Ag and Cu assuming long-term metal prices of $1,600/oz Au, $21/oz Ag, and $3.50/lb Cu.

  • A summary of life of mine payable sold values for Au, Ag and Cu can be found in Table 1 including tonnes processed and average processed grades. Expected recovery and payable factors for Au, Ag and Cu can be found in Table 2.

  • The increase in the Company’s production outlook in 2023 reflects optimizations to the ELG Open Pit and ELG Underground since Torex’s inaugural outlook was released in September 2021. The forecast increase AuEq production in 2024 reflects the benefit of AuEq production from the ML Project versus the prior estimate which only assumed Au production from the ELG Mine Complex. Production in 2025 is expected to increase over 2024 given the benefit of higher proportion of feed as the ML Project continues to ramp-up.

    TECHNICAL SESSION TO BE HELD ON APRIL 1, 2022
    A technical session (“Technical Session”) to discuss the results set out in the Technical Report will be held tomorrow morning (Friday, April 1, 2022). The live webcast is scheduled to start at 8:30 AM ET and will last approximately 3 hours. The Technical Session will be hosted by the management team of Torex.

    In order to join the webcast, participants must register in advance through the registration link. Once registered, the live webcast can be accessed through the event portal link.

    • Registration link:


    www.torexgoldtechnicalsession2022.com/register or
    globenewswire.com




    • Event portal link:


    www.torexgoldtechnicalsession2022.com or
    globenewswire.com


    Following the Technical Session, a link of the webcast will be posted to the Company’s website ( www.torexgold.com).

    TECHNICAL REPORT AND QUALIFIED PERSONS
    The Technical Report titled ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study with an effective date of March 16, 2022, and a filing date of March 31, 2022, prepared in accordance with NI 43-101 for the Morelos Complex, has been filed on SEDAR ( www.sedar.com). Readers are encouraged to read the Technical Report in its entirety, including all qualifications, assumptions and exclusions that relate to the Mineral Resource, Mineral Reserves and feasibility study related to the integrated project. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

    Disclosure of a scientific or technical nature in this press release in respect of the Morelos Mineral Reserve estimate and the Mineral Resource estimate has been approved by Johannes (Gertjan) Bekkers P.Eng. the Director of Mine Technical Services with Torex, and a "Qualified Person". Mr. Bekkers is a registered member of the Professional Engineers of Ontario, has worked the majority of his career in open pit and underground hard rock mining in Canada and overseas in progressively senior engineering roles with relevant experience in mine design and planning, mining economic viability assessments, and mining studies.

    Disclosure of a scientific or technical nature in this press release in respect of the “Highlights of the Technical Report”, the “Summary of Technical Report for Morelos Complex”, including the Tables and Figures referred to therein, but excluding the section titled “Funding and Liquidity” other than paragraph 2 of “Funding and Liquidity” has been approved by Robert Davidson P.E., the Vice President of M3 Engineering & Technology Corp, and a "Qualified Person". Mr. Davidson is a Registered Professional Engineer in good standing in the State of Arizona, has practiced his profession for 16 years and he has been directly involved in the development of the infrastructure, capital cost, operating cost, and financial modelling for the ML Project.

    All other disclosure of a scientific or technical nature in this press release including the “2022 Capital Expenditure Guidance for ML” and the “3-Year Outlook”, including the Tables referred to therein, has been reviewed and approved by David Stefanuto P.Eng. the Executive Vice President, Technical Services and Capital Projects, and a "Qualified Person". Mr. Stefanuto is a registered member of the Professional Engineers of Ontario, with more than 25 years of experience working in both surface and underground mining operations.

    ABOUT TOREX GOLD RESOURCES INC.
    Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company’s principal asset is the Morelos Complex, which includes the El Limón Guajes (“ELG”) Mining Complex, Media Luna Project, processing plant and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016 and an updated Technical Report for the Morelos Complex was released in March 2022. Torex’s key strategic objectives are to extend and optimize production from the ELG Mining Complex, de-risk and advance Media Luna to commercial production, build on ESG excellence, and to grow through ongoing exploration across the entire Morelos Property.

    FOR FURTHER INFORMATION, PLEASE CONTACT:

    TOREX GOLD RESOURCES INC.

    Jody Kuzenko


    Dan Rollins

    President and CEO


    Vice President, Corporate Development & Investor Relations

    Direct: (647) 725-9982


    Direct: (647) 260-1503

    jody.kuzenko@torexgold.com


    dan.rollins@torexgold.com


    CAUTIONARY NOTES

    Non-GAAP Financial Measures
    The Company has presented certain future non-GAAP financial measures (“Non-GAAP Measures”) in this presentation within the meaning of National Instrument 52-112 – Non-GAAP and Other Financial Measures. Total cash costs per ounce of gold (Au) or gold equivalent (AuEq) sold (“TCC”), total cash costs margin per ounce of gold or AuEq sold, mine-site all-in sustaining costs per ounce of gold or AuEq sold (“AISC”), mine site AISC margin, mine-site earnings before interest, taxes, depreciation and amortization (“mine-site EBITDA”), sustaining capital expenditures and non-sustaining capital expenditures included in this news release are Non-GAAP Measures. Non-GAAP Measures have no standard meaning under International Financial Reporting Standards (“IFRS”), the financial reporting framework used by the Company, and may not be comparable to other issuers. The Company believes that these measures, while not a substitute for measures of performance prepared in accordance with IFRS, provide investors with an improved ability to evaluate the underlying performance or financial position of the Company. Please see Table 13 for the equivalent historical non-GAAP measure. For a detailed reconciliation of each historical Non-GAAP Measure to its most directly comparable GAAP financial measure, please refer to the Company’s management’s discussion and analysis (“MD&A”) for the year ended December 31, 2021, dated February 23, 2022, which is available on the Company’s website ( www.torexgold.com) and under the Company’s SEDAR profile ( www.sedar.com). Please note that in this news release, the AISC, AISC margin, potential sustaining exploration costs and mine-site EBITDA do not include Torex corporate G&A.

    Forward-looking Statements
    This press release contains “forward-looking information” and “forward-looking statements” within the meaning of applicable Canadian securities legislation. Forward-looking information includes, without limitation, information with respect to proposed exploration, development, construction and production activities and their timing, the results set out in the Technical Report including the feasibility study of the ML Project, including, as applicable; mineral resource estimates, reserve estimates and potential mineralization; the estimates of capital and sustaining costs; assumed metal payable factors; projected revenues and cash flows; estimated net present values and anticipated internal rates of return; estimated payback period; future production, operating costs, total cash costs and mine-site sustaining costs and other expenses and other economic parameters; expected mine life or project life; expected mine, mill and metal production and metallurgical recoveries; the initiatives underway to realize available upside and build-on the solid base case production and cash flow; the Company’s future exploration potential; expectation that the ML Project will set up the Morelos Complex for safe and reliable production, free cash flow post the construction period, and lasting economic prosperity for all of those who share stakes in the Company; with the investment in the ML Project, the foundation for the future growth plans of the Company will be firmly laid; the economics set out in the Technical Report are grounded in operating costs, capital costs, and ramp-up time frames being both realistic and achievable; the expected further improvement in the ML Project’s economics due to the abundance of prospectivity on the south side of the Morelos Property; the opportunity for the Company to diversify into becoming a meaningful copper producer; the ongoing success of the Company’s strategy to cash up ahead of the build; the expected funding of the development of ML using the Company’s robust balance sheet, strong forecasted cash flow, and a prudent level of debt; liquidity at year-end including the undrawn revolving debt facility; projected cash flow from ELG through year-end 2024; goal of maintaining a minimum liquidity position; the evaluation debt financing and expected timing on a financing decision; expectation that the Company is well positioned financially, socially, and technically to advance the development of ML Project while continuing to invest in value accretive exploration that will both extend the life of mine and continue to further enhance the overall return of the Morelos Complex; the 2022 expenditure guidance, including anticipated non-sustaining capital expenditures; the updated 3 year production outlook; plans to further optimize the ELG Mine Complex; the expected increase in production in 2025; initiatives planned to fill the mill beyond 2027; opportunities to transition to lower cost long-hole stoping at ELG which could result in potentially higher throughput in the ELG Underground and lower unit costs; assumed ramp up period to commercial production for the ML Project; the planned upgrades and additions to the process plant to process the ore from ML; expected availability of stockpiles to wet commission the upgraded process plant; tailings management plans; belief that the southside of the Morelos Property offers significate resource upside; the expected access that the South Portals will provide in advance of the completion of the Guajes Tunnel; the increased power demands of the ML Project. potential to reduce unit costs by filling the mill; the estimated NPV and implied IRR; the expected incremental benefit of ML to ELG; the exploration potential of the broader Morelos Property; expectation to build-on the point in time economics by extending reserves within the existing deposits, potentially bringing new deposits such as EPO into reserves, and identifying new sources of incremental feed beyond ML; the focus on drilling to extend the current life of the Morelos Complex and to bolster medium term production by filling the mill beyond 2027, when the processing plant will be under utilized with ML the sole source of feed; intention to attend to the health and safety of the Company’s workforce and the surrounding communities in the design and construction of the ML Project; commitment to meet or surpass environmental regulatory requirements while doing zero harm to the natural environment; planned hybrid mining fleet; expected approval of the permit authorizing the operations for the ML Project; plans to continue to achieve compliance with ESG performance standards; plans to fund the development of ML through internal cash flow as well as a prudent level of long-term debt; expected cash flow generation prior to the capital expenditures on the ML Project, including expected corporate G&A and exploration/drilling expenditures; and desire to maintain $100M of liquidity. Generally, forward-looking information can be identified by the use of terminology such as “plans”, “expect”, “outlook”, “forecast” “estimate”, “near-term”, “long term”, “opportunity”, “potential”, “plan”, “envision”, “beyond”, “commitment” and “ongoing” or variations of such words, or statements that certain actions, events or results “can”, “may”, “would”, “will”, occur, or “will be” taken or achieved. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the Company’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including, without limitation, forward-looking statements and assumptions pertaining to the following: risk associated with skarn deposits including grade variability; fluctuation in gold, copper and other metal prices; commodity price risk; currency exchange rate fluctuations; ability to realize the results of the feasibility study; uncertainty regarding the inclusion of inferred mineral resources in the mineral resource estimate and the ability to upgrade the mineral resources to a higher category, uncertainty regarding the ability to convert any part of the mineral resource into mineral reserves, uncertainty involving resource estimates and the ability to extract those resources economically, or at all; uncertainty involving drilling programs and the ability to expand and upgrade existing resource estimates; ability to obtain the timely supply of services, equipment and materials for the operation of the ELG Mine Complex and the design, development and construction of the ML Project; the regulatory process and actions; ability to finance the ML Project on reasonable terms, and those risk factors identified in the Technical Report and the Company’s annual information form and MD&A. Forward-looking information is based on the assumptions discussed in the Technical Report and such other reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.






    Table 9: Summary of Unit Operating Costs





    Metrics as of April 1, 2022


    Q2/22 to Q4/24

    2025+

    Life of Mine



    (Total)

    (Total)

    (Total)

    Physicals





    Total ore mined - ELG Open Pit

    kt

    9,528

    0

    9,528

    Total waste mined - ELG Open Pit

    kt

    71,121

    0

    71,121

    Total mined - ELG Open Pit

    kt

    80,649

    0

    80,649

    Total ore mined - ELG Underground

    kt

    1,404

    1,145

    2,549

    Total ore mined - ML Underground

    kt

    806

    22,210

    23,017

    Net stockpile drawdowns

    kt

    887

    3,798

    4,685

    Total ore processed

    kt

    12,624

    27,154

    39,778

    Operating Unit Costs (with PTU)





    ELG Open Pit

    $/t mined

    $2.81

    $0.00

    $2.81

    ELG Underground

    $/t ore mined

    $96.25

    $100.56

    $98.19

    ML Underground

    $/t ore mined

    $44.77

    $33.65

    $34.04

    Processing

    $/t ore milled

    $32.63

    $35.43

    $34.54

    Site support

    $/t ore milled

    $11.49

    $14.39

    $13.47

    Operating Unit Costs (without PTU)





    ELG Open Pit

    $/t mined

    $2.67

    $0.00

    $2.67

    ELG Underground

    $/t ore mined

    $95.10

    $99.12

    $96.90

    ML Underground

    $/t ore mined

    $44.77

    $33.00

    $33.42

    Processing

    $/t ore milled

    $31.65

    $34.78

    $33.79

    Site support

    $/t ore milled

    $10.85

    $13.98

    $12.99

    Total Operating Cost





    ELG Open Pit

    $M

    $215.2

    $10.9

    $226.1

    ELG Underground

    $M

    $133.7

    $113.3

    $247.0

    ML Underground

    $M

    $36.8

    $733.0

    $769.8

    Processing

    $M

    $399.6

    $944.6

    $1,344.2

    Site support

    $M

    $137.0

    $379.7

    $516.7

    Transport/Treatment/Refining

    $M

    $12.3

    $213.4

    $225.7

    Employee profit sharing

    $M

    $56.7

    $55.0

    $111.7

    Capitalized stripping

    $M

    ($44.5)

    ($49.2)

    ($93.7)

    Total operating cost

    $M

    $946.8

    $2,400.7

    $3,347.5

    Total operating cost

    $/t ore milled

    $75.00

    $88.41

    $84.15


    Notes to Table 9:

  • Operating unit costs (mining, processing, site administration, and total) are Non-GAAP Measures. See footnote 3 and Cautionary Note above on Non-GAAP Measures.

  • Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.











  • Table 10: After-tax Sensitivities to Key Factors



    ($400)

    ($200)

    ($100)

    Base Case

    $100

    $200

    $400

    Gold Price - Long-term

    $/oz

    $1,200

    $1,400

    $1,500

    $1,600

    $1,700

    $1,800

    $2,000

    Morelos Complex - NPV (5%)

    $M

    $378

    $733

    $890

    $1,040

    $1,186

    $1,331

    $1,617

    ML Incremental - NPV (5%)

    $M

    $49

    $277

    $371

    $458

    $538

    $616

    $764

    ML Incremental - IRR

    %

    6.4%

    12.2%

    14.3%

    16.1%

    17.7%

    19.1%

    21.8%



    ($1.50)

    ($1.00)

    ($0.50)

    Base Case

    $0.50

    $1.00

    $1.50

    Copper Price - Long-term

    $/lb

    $2.00

    $2.50

    $3.00

    $3.50

    $4.00

    $4.50

    $5.00

    Morelos Complex - NPV (5%)

    $M

    $728

    $839

    $945

    $1,040

    $1,127

    $1,210

    $1,291

    ML Incremental - NPV (5%)

    $M

    $149

    $259

    $364

    $458

    $544

    $626

    $705

    ML Incremental - IRR

    %

    9.3%

    11.9%

    14.2%

    16.1%

    17.7%

    19.3%

    20.7%



    ($6.00)

    ($4.00)

    ($2.00)

    Base Case

    $2.00

    $4.00

    $6.00

    Silver Price - Long-term

    $/oz

    $15.00

    $17.00

    $19.00

    $21.00

    $23.00

    $25.00

    $27.00

    Morelos Complex - NPV (5%)

    $M

    $998

    $1,013

    $1,027

    $1,040

    $1,054

    $1,068

    $1,081

    ML Incremental - NPV (5%)

    $M

    $418

    $432

    $445

    $458

    $471

    $484

    $497

    ML Incremental - IRR

    %

    15.3%

    15.6%

    15.8%

    16.1%

    16.3%

    16.6%

    16.8%



    (30%)

    (20%)

    (10%)

    Base Case

    10%

    20%

    30%

    Media Luna Project Capex

    $M

    $594

    $678

    $763

    $848

    $933

    $1,018

    $1,102

    Morelos Complex - NPV (5%)

    $M

    $1,211

    $1,155

    $1,099

    $1,040

    $981

    $919

    $856

    ML Incremental - NPV (5%)

    $M

    $629

    $573

    $517

    $458

    $399

    $337

    $274

    ML Incremental - IRR

    %

    24.4%

    21.2%

    18.4%

    16.1%

    14.0%

    12.2%

    10.5%



    (30%)

    (20%)

    (10%)

    Base Case

    10%

    20%

    30%

    Sustaining Capex

    $M

    $316

    $361

    $406

    $452

    $497

    $542

    $587

    Morelos Complex - NPV (5%)

    $M

    $1,121

    $1,095

    $1,068

    $1,040

    $1,013

    $986

    $958

    ML Incremental - NPV (5%)

    $M

    $514

    $496

    $477

    $458

    $439

    $420

    $400

    ML Incremental - IRR

    %

    17.3%

    16.9%

    16.5%

    16.1%

    15.7%

    15.3%

    14.9%



    (30%)

    (20%)

    (10%)

    Base Case

    10%

    20%

    30%

    Opex

    $M

    $2,330

    $2,663

    $2,996

    $3,329

    $3,662

    $3,995

    $4,328

    Morelos Complex - NPV (5%)

    $M

    $1,490

    $1,342

    $1,193

    $1,040

    $876

    $700

    $512

    ML Incremental - NPV (5%)

    $M

    $719

    $636

    $550

    $458

    $353

    $237

    $110

    ML Incremental - IRR

    %

    20.7%

    19.3%

    17.8%

    16.1%

    14.0%

    11.5%

    8.3%



    (2.0%)

    (1.5%)

    (1.0%)

    Base Case

    1.0%

    1.5%

    2.0%

    Gold recovery

    %

    87.8%

    88.3%

    88.8%

    89.8%

    90.8%

    91.3%

    91.8%

    NPV (5%)

    $M

    $985

    $999

    $1,013

    $1,040

    $1,068

    $1,082

    $1,095

    ML Incremental NPV (5%)

    $M

    $428

    $436

    $444

    $458

    $473

    $480

    $487

    ML Incremental IRR

    %

    15.5%

    15.6%

    15.8%

    16.1%

    16.4%

    16.5%

    16.7%


    Notes to Table 10:

  • Estimates are based on the project period commencing April 1, 2022. All amounts in U.S. dollars.

  • Sustaining capital expenditures exclude $94M of capitalized stripping.












  • Table 11: Mineral Reserves for the Morelos Complex


    Tonnes

    Au

    Ag

    Cu

    Au

    Ag

    Cu

    AuEq

    AuEq


    (kt)

    (g/t)

    (g/t)

    (%)

    (koz)

    (koz)

    (Mlb)

    (g/t)

    (koz)

    El Limón Guajes Open Pit (ELG OP)










    Proven

    4,900

    3.95

    4.6

    0.14

    623

    719

    15

    4.00

    630

    Probable

    5,471

    2.35

    4.5

    0.12

    414

    784

    15

    2.39

    421

    Proven & Probable

    10,371

    3.11

    4.5

    0.13

    1,037

    1,503

    30

    3.15

    1,051

    El Limón Guajes Underground (ELG UG)









    Proven

    110

    7.23

    10.5

    0.59

    25

    37

    1

    7.38

    26

    Probable

    2,566

    5.68

    5.7

    0.22

    469

    474

    13

    5.74

    474

    Proven & Probable

    2,675

    5.74

    5.9

    0.24

    494

    511

    14

    5.81

    500

    Media Luna Underground (ML UG)










    Proven

    -

    -

    -

    -

    -

    -

    -

    -

    -

    Probable

    23,017

    2.81

    25.6

    0.88

    2,077

    18,944

    444

    4.54

    3,360

    Proven & Probable

    23,017

    2.81

    25.6

    0.88

    2,077

    18,944

    444

    4.54

    3,360

    Surface Stockpiles










    Proven

    4,808

    1.35

    3.1

    0.07

    209

    484

    7

    1.38

    213

    Probable

    -

    -

    -

    -

    -

    -

    -

    -

    -

    Proven & Probable

    4,808

    1.35

    3.1

    0.07

    209

    484

    7

    1.38

    213

    Total Morelos Complex










    Proven

    9,817

    2.72

    3.9

    0.11

    858

    1,240

    23

    2.75

    869

    Probable

    31,054

    2.96

    20.2

    0.69

    2,959

    20,202

    472

    4.26

    4,254

    Proven & Probable

    40,871

    2.90

    16.3

    0.55

    3,817

    21,442

    495

    3.90

    5,123


    Notes to accompany summary Mineral Reserve table:

  • Mineral Reserves were developed in accordance with CIM (2014) guidelines.

  • Rounding may result in apparent summation differences between tonnes, grade, and contained metal content Surface Stockpile mineral reserves are estimated using production and survey data and apply the same AuEq formula as ELG Open Pits and ELG Underground.

  • AuEq of Total Reserves is established from combined contributions of the various deposits.

  • The qualified person for the mineral reserve estimate is Johannes (Gertjan) Bekkers, P. Eng., Director of Mine Technical Services.

  • The qualified person is not aware of mining, metallurgical, infrastructure, permitting, or other factors that materially affect the Mineral Reserve estimates.

    Notes to accompany the ELG Open Pit Mineral Reserves:

  • Mineral Reserves are founded on Measured and Indicated Mineral Resources, with an effective date of December 31, 2021, for ELG Open Pits (including El Limón, El Limón Sur and Guajes deposits).

  • ELG Open Pit Mineral Reserves are reported above a diluted cut-off grade of 1.1 g/t Au.

  • ELG Low Grade Mineral Reserves are reported above a diluted cut-off grade of 1.0 g/t Au.

  • It is planned that ELG Low Grade Mineral Reserves within the designed pits will be stockpiled during pit operation and processed during pit closure.

  • Mineral Reserves within the designed pits include assumed estimates for dilution and ore losses.

  • Cut-off grades and designed pits are considered appropriate for a metal price of $1,400/oz Au and metal recovery of 89% Au.

  • Mineral Reserves are reported using a gold price of US$1,400/oz, silver price of US$17/oz, and copper price of US$3.25/lb.

  • Average metallurgical recoveries of 89% for gold and 30% for silver and 10% for copper.

  • ELG AuEq = Au (g/t) + Ag (g/t) * (0.0041) + Cu (%) * (0.1789), accounting for metal prices and metallurgical recoveries.

    Notes to accompany the ELG Underground Mineral Reserves:

  • Mineral Reserves are founded on Measured and Indicated Mineral Resources, with an effective date of December 31, 2021, for ELG Underground (including Sub-Sill and ELD deposits).

  • Mineral Reserves were developed in accordance with CIM guidelines.

  • El Limón Underground mineral reserves are reported above an in-situ ore cut-off grade of 3.58 g/t Au and an in-situ incremental cut-off grade of 1.04 g/t Au

  • Cut-off grades and mining shapes are considered appropriate for a metal price of $1,400/oz Au and metal recovery of 89% Au.

  • Mineral Reserves within designed mine shapes assume mechanized cut and fill mining method and include estimates for dilution and mining losses.

  • Mineral Reserves are reported using a gold price of US$1,400/oz, silver price of US$17/oz, and copper price of US$3.25/lb

  • Average metallurgical recoveries of 89% for gold and 30% for silver and 10% for copper

  • ELG AuEq = Au (g/t) + Ag (g/t) * (0.0041) + Cu (%) * (0.1789), accounting for metal prices and metallurgical recoveries.

    Notes to accompany the ML Underground Mineral Reserves:

  • Mineral Reserves are based on Media Luna Indicated Mineral Resources with an effective date of October 31st, 2021.

  • Media Luna Underground Mineral Reserves are reported above a diluted ore cut-off grade of 2.2 g/t AuEq

  • Media Luna Underground cut-off grades and mining shapes are considered appropriate for a metal price of $1,400/oz Au, $17/oz Ag and $3.25/lb Cu and metal recoveries of 85% Au, 79% Ag, and 91% Cu.

  • Mineral Reserves within designed mine shapes assume long-hole open stoping, supplemented with mechanized cut-and-fill mining and includes estimates for dilution and mining losses.

  • Media Luna AuEq = Au (g/t) + Ag (g/t) * (0.011188) + Cu (%) * (1.694580), accounting for metal prices and metallurgical recoveries












  • Table 12: Mineral Resources for the Morelos Complex


    Tonnes

    Au

    Ag

    Cu

    Au

    Ag

    Cu

    AuEq

    AuEq


    (kt)

    (g/t)

    (g/t)

    (%)

    (koz)

    (koz)

    (Mlb)

    (koz)

    (g/t)

    El Limón Guajes Open Pit (ELG OP)










    Measured

    5,727

    3.89

    5.0

    0.13

    716

    919

    17

    3.93

    724

    Indicated

    11,027

    2.37

    4.7

    0.12

    842

    1,660

    28

    2.41

    856

    Measured & Indicated

    16,754

    2.89

    4.8

    0.12

    1,557

    2,579

    45

    2.93

    1,580

    Inferred

    812

    1.80

    3.5

    0.08

    47

    90

    1

    1.83

    48

    El Limón Guajes Underground (ELG UG)









    Measured

    584

    7.24

    10.0

    0.52

    136

    187

    7

    7.37

    138

    Indicated

    3,968

    6.11

    7.1

    0.27

    779

    900

    23

    6.18

    789

    Measured & Indicated

    4,551

    6.25

    7.4

    0.30

    915

    1,088

    30

    6.34

    927

    Inferred

    1,380

    4.88

    6.2

    0.25

    217

    275

    8

    4.95

    220

    Media Luna Underground (ML UG)










    Measured

    -

    -

    -

    -

    -

    -

    -

    -

    -

    Indicated

    25,380

    3.24

    31.5

    1.08

    2,642

    25,706

    602

    5.38

    4,394

    Measured & Indicated

    25,380

    3.24

    31.5

    1.08

    2,642

    25,706

    602

    5.38

    4,394

    Inferred

    5,991

    2.47

    20.8

    0.81

    476

    3,998

    106

    4.05

    780

    EPO










    Measured

    -

    -

    -

    -

    -

    -

    -

    -

    -

    Indicated

    -

    -

    -

    -

    -

    -

    -

    -

    -

    Measured & Indicated

    -

    -

    -

    -

    -

    -

    -

    -

    -

    Inferred

    8,019

    1.52

    34.6

    1.27

    391

    8,908

    225

    3.97

    1,024

    Total Morelos Complex










    Measured

    6,311

    4.20

    5.5

    0.17

    852

    1,106

    24

    4.25

    862

    Indicated

    40,375

    3.28

    21.8

    0.73

    4,263

    28,266

    653

    4.65

    6,039

    Measured & Indicated

    46,685

    3.41

    19.6

    0.66

    5,114

    29,373

    677

    4.60

    6,901

    Inferred

    16,202

    2.17

    25.5

    0.95

    1,131

    13,271

    340

    3.98

    2,071


    Notes to accompany summary Mineral Resource table:

  • CIM (2014) definitions were followed for Mineral Resources.

  • Mineral Resources are depleted above a mining surface or to the as-mined solids as of December 31, 2021.

  • Mineral Resources are reported using a gold price of US$1,550/oz, silver price of US$20/oz, and copper price of US$3.50/lb.

  • AuEq of total Mineral Resources is established from combined contributions of the various deposits.

  • Mineral Resources are inclusive of Mineral Reserves.

  • Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

  • Numbers may not add due to rounding.

  • The estimate was prepared by Mr. John Makin, MAIG, a consultant with SLR Consulting (Canada) Ltd. Mr. Makin is independent of the company and is a “Qualified Person” under NI 43-101.

    Notes to accompany the ELG Mineral Resources:

  • The effective date of the estimate is December 31, 2021.

  • Average metallurgical recoveries are 89% for gold, 30% for silver and 10% for copper.

  • ELG AuEq = Au (g/t) + (Ag (g/t) * 0.0043) + (Cu (%) * 0.1740). AuEq calculations consider both metal prices and metallurgical recoveries.

    Notes to accompany the ELG Open Pit Mineral Resources:

  • Mineral resources are reported above a cut-off grade of 0.9 g/t Au.

  • Mineral Resources are reported inside an optimized pit shell, underground mineral reserves at ELD within the El Limón shell have been excluded from the open pit Mineral Resources.

    Notes to accompany ELG Underground Mineral Resources:

  • Mineral Resources are reported above a cut-off grade of 2.6 g/t Au.

  • The assumed mining method is underground cut and fill.

  • Mineral Resources from ELD that are contained within the El Limón pit optimization and that are not underground Mineral Reserves have been excluded from the underground Mineral Resources.

    Notes to accompany ML Mineral Resources:

  • The effective date of the estimate is October 31, 2021.

  • Mineral Resources are reported above a 2.0 g/t AuEq cut-off grade.

  • Metallurgical recoveries at Media Luna (excluding EPO) average 85% for gold, 79% for silver, and 91% for copper. Metallurgical recoveries at EPO average 85% for gold, 75% for silver, and 89% for copper.

  • Media Luna (excluding EPO) AuEq = Au (g/t) + (Ag (g/t) * 0.011889) + (Cu (%) * 1.648326). EPO AuEq = Au (g/t) + Ag (g/t) * (0.011385) + Cu % * (1.621237). AuEq calculations consider both metal prices and metallurgical recoveries.

  • The assumed mining method is from underground methods, using a combination of long hole stoping and, cut and fill.















  • Table 13: Operating and Financial Results





    Three Months Ended


    Year Ended





    Dec 31,


    Sep 30,


    Dec 31,


    Dec 31,


    Dec 31,

    U.S. dollars, unless otherwise noted




    2021



    2021


    2020


    2021


    2020

    Operating Results













    Lost time injury frequency (12-month rolling)


    /million hours
    worked

    0.14



    0.26


    0.15


    0.14


    0.15

    Total recordable injury frequency (12-month rolling)


    /million hours
    worked

    2.32



    2.44


    2.52


    2.32


    2.52

    Gold produced


    oz


    109,411



    111,229


    130,649


    468,203


    430,484

    Gold sold


    oz


    109,391



    118,989


    133,063


    468,823


    437,310

    Total cash costs 2


    $/oz


    764



    727


    579


    674


    672

    Total cash costs margin 2


    $/oz


    1,034



    1,059


    1,268


    1,120


    1,099

    All-in sustaining costs 2


    $/oz


    1,079



    900


    886


    928


    924

    All-in sustaining costs margin 2


    $/oz


    719



    886


    961


    865


    847

    Average realized gold price 2


    $/oz


    1,798



    1,786


    1,847


    1,794


    1,771

    Financial Results













    Revenue


    $M


    202.0



    216.7


    251.6


    855.8


    789.2

    Cost of sales


    $M


    135.1



    142.6


    143.0


    529.3


    532.0

    Earnings from mine operations


    $M


    66.9



    74.1


    108.6


    326.5


    257.2

    Impairment loss


    $M


    41.2



    -


    -


    41.2


    -

    Net income


    $M


    (0.5

    )


    36.5


    91.9


    151.7


    109.0

    Per share - Basic


    $/share


    (0.01

    )


    0.43


    1.07


    1.77


    1.27

    Per share - Diluted


    $/share


    (0.01

    )


    0.41


    1.05


    1.71


    1.25

    Adjusted net earnings 2


    $M


    32.4



    42.9


    60.9


    180.0


    135.7

    Per share - Basic 2


    $/share


    0.38



    0.50


    0.71


    2.10


    1.59

    Per share - Diluted 2


    $/share


    0.38



    0.50


    0.71


    2.09


    1.58

    EBITDA 2


    $M


    62.4



    119.7


    165.9


    461.6


    413.0

    Adjusted EBITDA 2


    $M


    104.6



    119.3


    158.5


    490.8


    431.4

    Cost of sales


    $/oz


    1,235



    1,198


    1,075


    1,129


    1,217

    Cash from operating activities


    $M


    94.6



    87.8


    137.1


    330.0


    342.1

    Cash from operating activities before changes in non-cash operating working capital


    $M


    87.4



    100.2


    140.8


    365.2


    328.8

    Free cash flow 2


    $M


    37.3



    29.4


    86.9


    97.9


    192.0

    Cash and cash equivalents and short-term investments


    $M


    255.7



    221.6


    206.2


    255.7


    206.2

    Net cash 2


    $M


    252.4



    217.8


    161.6


    252.4


    161.6


    Notes to Table 13:

  • This is an extract from the MD&A and should be read in conjunction with the MD&A and the Company’s audited consolidated financial statements and related notes for the year ended December 31, 2021.

  • Adjusted net earnings, total cash costs, total cash costs margin, all-in sustaining costs, all-in sustaining costs margin, average realized gold price, EBITDA, adjusted EBITDA, free cash flow and net cash are non-GAAP financial measures with no standard meaning under IFRS. Refer to “Non-GAAP Financial Performance Measures” for further information and a detailed reconciliation to the comparable IFRS measures in the Company’s MD&A for the year ended December 31, 2021, dated February 23, 2022, available on Torex Gold’s website (www.torexgold.com) and under the Company’s SEDAR profile (www.sedar.com).


  • Share RecommendKeepReplyMark as Last Read


    To: LoneClone who wrote (164628)4/1/2022 4:23:18 PM
    From: LoneClone
       of 167649
     
    Whitehorse Gold Intersects 7.7-metre Interval Grading 15.7 Grams per Tonne Gold at Mt. Skukum Deposit, Yukon

    newsfilecorp.com

    Vancouver, British Columbia--(Newsfile Corp. - April 1, 2022) - Whitehorse Gold Corp. (TSXV: WHG) (OTCQX: WHGDF) ("Whitehorse Gold" or the "Company") reports assay results of the remaining 30 drill holes from the 2021 drill program at its wholly-owned Skukum Gold Project (the "Project"), in southern Yukon.

    The 30 drill holes were infill and step-out drill holes from the Skukum Creek, Mt. Skukum and Goddell deposits, which have further confirmed and expanded gold-silver mineralization on the Project. With all drill results now received (see Table 1), the Company is evaluating its exploration plans for the 2022 program.

    Highlights of the drilling results:

  • Hole MS21-003 at the Mt. Skukum deposit intersected a 7.7 metre ("m") interval (from 82.0 to 89.7 m) grading 15.68 grams per tonne ("g/t") gold ("Au") in the Lake 1 Zone (see Figures 1 and 2). This is an infill hole and mineralization occurs within a series of chalcedonic quartz-calcite veins and veinlets.

  • Hole SC21-027 at the Skukum Creek deposit intersected a 14.0 m interval (from 473.7 to 487.7 m) grading 6.05 g/t Au and 106 g/t silver ("Ag"), including two separate intervals of 2.13 m grading 12.85 g/t Au and 203 g/t Ag, and 3.90 m grading 9.18 g/t Au and 183 g/t Ag, in the Rainbow Zone (see Figures 3 and 4). This is an infill/resource upgrade hole with gold-silver mineralization associated with a quartz vein breccia within a rhyolite dyke host emplaced in shear zone within granodiorites.

  • Hole RACA21-003 on the RACA zone (see Figures 5 and 6), adjacent to and east of the Skukum Creek deposit, intersected a 3.2 m interval (from 356.9 to 360.1 m) grading 0.76 g/t Au and 581 g/t Ag. An additional deeper interval of 2.65 m (from 425.5 to 428.2 m) graded 489 g/t Ag including a 0.3 m interval of 3,740 g/t Ag. This hole tests a new zone that encountered multiple narrow silver-rich quartz sulfide veins.



  • Table 1: Summary of All 2021 Drill Results at Skukum Gold Project (includes previously released results)

    Hole ID
    From (m)To (m)Interval (m)1,2Au (g/t)Ag (g/t)AuEq (g/t)3,4Zone
    GG21-001
    371.4374.352.951.4311.44Goddell deposit
    GG21-002
    355.8357.221.423.0513.07
    and383.13383.830.703.2213.24
    and391.88392.070.193.9544.01
    and531.62532.040.423.2271413.29
    and552.96553.450.490.564927.5
    MS21-001
    116.59117.430.842.1932.23Mt. Skukum deposit
    (Cirque Zone)
    MS21-002
    No significant assay results
    MS21-009
    No significant assay results
    MS21-010
    No significant assay results
    MS21-003
    8289.737.7315.682616.05Mt. Skukum deposit
    (Lake 1 Zone South)
    MS21-004
    2032041.001.6971.78
    and209210.21.202.0332.08
    MS21-005
    160.241610.768.1258.82Mt. Skukum deposit
    (Lake 1 Zone Central)
    and169.5170.51.008.5558.62
    MS21-006
    179.97188.858.883.1733.21

    incl.179.97183.363.397.8577.94
    MS21-007
    No significant assay results
    MS21-008
    No significant assay results
    MS21-011
    186.43186.730.3040.72241.01
    MS21-012
    86.887.650.855.5855.64Mt. Skukum deposit
    (Lake 2 Zone, Fox Zone)

    179180.51.504.1224.14
    MS21-013
    130.3131.130.832.5422.57
    MS21-014
    104104.270.2732.42232.7

    286.37286.680.313.253.2
    RACA21-002
    (Step-out)

    136.54138.491.950.393955.91Skukum Creek deposit
    (RACA Zone)

    284.52284.900.381.40412

    345.98347.781.801.06144011.28

    435.00437.002.004.1054.2
    RACA21-003
    (Step-out)

    58.0458.210.170.011011.52

    161.45161.590.140.792784.71

    317.75318.841.090.524566.95

    356.87360.103.230.765818.95

    389.46393.033.570.38561.17

    425.51428.162.650.274897.17
    incl.426.85427.160.311.90374054.6
    SC21-001
    463.00464.311.312.11272.49Skukum Creek deposit
    (Rainbow Zone)
    SC21-002
    No significant assay results
    SC21-003
    28.9629.570.612.70249037.81
    SC21-004
    96.00104.008.001.52902.79
    incl.102.21104.001.795.812699.61
    SC21-005
    79.6588.759.102.811805.35
    incl.79.6583.153.505.5737510.88
    SC21-006
    78.6487.578.932.491204.18
    incl.78.6483.044.403.821846.41
    SC21-007
    Abandoned before reach the Rainbow Zone
    SC21-008
    141.07152.4011.331.572284.78
    incl.146.23148.442.216.05114222.16
    SC21-009
    124.75139.8815.131.151433.17
    incl.124.75128.043.292.8757110.92
    and133.56134.631.074.691747.14
    SC21-012
    143.95144.260.310.901252.7

    202.52208.145.623.261785.78
    incl.202.52204.371.858.6432013.15

    206.89208.141.251.693186.17
    SC21-013
    523.20527.874.675.34465.99

    523.20525.692.497.74488.41
    SC21-019
    218.00222.274.274.152517.68

    229.07235.055.982.641765.12
    incl.233.24235.051.815.8848912.78
    SC21-020
    No significant assay results
    SC21-021
    307.50325.0017.503.3447810.08
    incl.312.95317.264.3110.45182536.18
    SC21-022
    499.14500.060.922.59613.44
    SC21-023
    370.00389.0019.004.371266.14
    incl.377.00381.954.9513.6336318.74
    SC21-025
    484.00486.002.005.55426.14
    SC21-027
    (step-out)

    473.74487.7213.986.051067.54
    incl.475.82477.952.1312.8520315.72
    And481.30485.203.909.1818311.76
    SC21-010
    343.79345.792.002.2022.2Skukum Creek deposit
    (Rainbow Zone east)

    398.39400.392.000.001602.3
    SC21-014
    No significant assay results
    SC21-011
    582.03582.250.222.401684.8Skukum Creek deposit
    (Rainbow 2 Zone, Berg Zone)

    588.75589.490.740.301292.1
    SC21-015
    226.40243.5817.187.901009.1
    incl.226.40228.812.419.409010.4
    incl.239.34243.584.2426.8035030.8
    SC21-016
    480.15480.300.151.90933.2

    515.38516.300.929.4024912.9

    548.19548.370.181.40382
    SC21-017
    323.32325.322.004.65525.38

    352.27352.650.380.761883.41
    SC21-018
    277.73288.3110.584.97395.51
    incl.282.55285.663.1115.0910116.52

    319.00338.5519.552.19182.45
    incl.330.15330.370.2216.156917
    And332.89333.650.7611.9012213.62
    And336.40336.900.5036.103736.62
    SC21-024
    392.05392.910.8621.006621.9
    SC21-026
    335.29336.411.123.202086.1


    Notes:

  • Drill location, elevation, azimuth, and dip of drill holes are provided in Table 2 below.
  • Composites are length weighted.
  • True width is estimated at 50-70% of drill intercepts.
  • Calculation for gold equivalent ("AuEq") (g/t) = Au (g/t) + [Ag (g/t) x 0.0141] is based on the long-term median of the August 2021 Street Consensus Commodity Price Forecasts by BMO, which are US$1,600/oz for Au, US$22.50/oz for Ag. Au:Ag ratio is 1:71.
  • Assumptions: AuEq calculation utilizes in situ contained Au and Ag and assumes 100% recovery.


  • Figure 1: Plan view of the Mt. Skukum deposit showing main zones, drill hole traces and drill hole collar locations.

    To view an enhanced version of Figure 1, please visit:
    orders.newsfilecorp.com



    Figure 2: Mt. Skukum deposit - Lake Zone 1 section showing 2021 drill intercepts and select historic drill intervals.

    To view an enhanced version of Figure 2, please visit:
    orders.newsfilecorp.com



    Figure 3: Plan view of the Skukum Creek deposit showing main zones, drill hole traces and drill hole collar locations.

    To view an enhanced version of Figure 3, please visit:
    orders.newsfilecorp.com



    Figure 4: Skukum Creek deposit - Rainbow Zone section showing 2021 drill intercepts and select historic drill intervals.

    To view an enhanced version of Figure 4, please visit:
    orders.newsfilecorp.com



    Figure 5: Plan view of the RACA Zone drill hole traces and drill hole collar locations.

    To view an enhanced version of Figure 5, please visit:
    orders.newsfilecorp.com



    Figure 6: RACA Zone section G-H showing drill hole RACA21-003 mineralized intervals.

    To view an enhanced version of Figure 6, please visit:
    orders.newsfilecorp.com

    Table 2: Drill hole details for current and historic holes presented in Table 1 and Figures 1 to 6.

    Hole_IDLength (m)UTM Easting (m)UTM Northing (m)Elevation (m)AzimuthDipLevelTargetProspect
    MS21-00119747428466749031734293.2-58SurfaceCirque VeinMTS
    MS21-00219147424166748041740300-53.1SurfaceCirque VeinMTS
    MS21-00311547353966747051905100.1-54.3SurfaceLake ZoneMTS
    MS21-00430147342366747321928104.3-66SurfaceLake ZoneMTS
    MS21-00520047345066747861926109-54.1SurfaceLake ZoneMTS
    MS21-00619747345566748831916118-52SurfaceLake ZoneMTS
    MS21-00728647339166748841910107.8-48SurfaceLake ZoneMTS
    MS21-0082644734556674883191695-50.8SurfaceLake ZoneMTS
    MS21-00921947424166748041740310.1-56SurfaceCirque VeinMTS
    MS21-01020847428466749031735297-65SurfaceCirque VeinMTS
    MS21-0112224734556674883191686-46SurfaceLake ZoneMTS
    MS21-01230147347166751181866113-48SurfaceLake ZoneMTS
    MS21-01334447347166751181866111-58SurfaceLake ZoneMTS
    MS21-01432547347366751541856104-45SurfaceLake ZoneMTS
    SC21-00163347810066711431386292.8-46SurfaceRainbow ZoneSKC
    SC21-00277047780766715011346177.8-47SurfaceRainbow ZoneSKC
    SC21-00365447810066711431386277-57SurfaceRainbow ZoneSKC
    SC21-00413047790766713371383280.9-45.2SurfaceRainbow ZoneSKC
    SC21-00511147790766713371383299.8-48.2SurfaceRainbow ZoneSKC
    SC21-00610547790766713371383331.8-53.3SurfaceRainbow ZoneSKC
    SC21-0077247790766713371383319.8-44.6SurfaceRainbow ZoneSKC
    SC21-00829447792566713221384278.4-48.7SurfaceRainbow ZoneSKC
    SC21-00917047792566713221384289.1-51SurfaceRainbow ZoneSKC
    SC21-01044147809966713851299345.2-45.2SurfaceRainbow ZoneSKC
    SC21-01167347714766712461694150-62.2SurfaceRainbow 2 ZoneSKC
    SC21-01226147803266713001348308.5-48.4SurfaceRainbow ZoneSKC
    SC21-01362747810066711431386287-59SurfaceRainbow ZoneSKC
    SC21-0148147802366714411298318.2-52.8SurfaceRainbow ZoneSKC
    SC21-01534447720266711311692126.8-52.3SurfaceRainbow ZoneSKC
    SC21-01656947712866711511709110.4-45.3SurfaceRainbow 2 ZoneSKC
    SC21-01743547712866711511709136.3-45.5SurfaceRainbow 2 ZoneSKC
    SC21-01839847712866711511709168.2-47.7SurfaceRainbow 2 ZoneSKC
    SC21-01928647803266713001348316.5-52.8SurfaceRainbow ZoneSKC
    SC21-02037147806666712541357318.5-55.8SurfaceRainbow ZoneSKC
    SC21-02136847806566712531357303-54.8SurfaceRainbow ZoneSKC
    SC21-02259747810166711401390286.7-55SurfaceRainbow ZoneSKC
    SC21-02345647806566712531357299-61SurfaceRainbow ZoneSKC
    SC21-02453047712966711511708120-51.5SurfaceRainbow 2 ZoneSKC
    SC21-02554847810166711441386295.2-52.8SurfaceRainbow ZoneSKC
    SC21-02642347712966711511708129-51SurfaceRainbow 2 ZoneSKC
    SC21-02757247810166711431386305-54SurfaceRainbow ZoneSKC
    GG21-00169448374666731001020138.5-44.4SurfaceGoddell GOD
    GG21-00265848374666731001020150.8-53.2SurfaceGoddell GOD
    RACA21-00248247807266717241272334.9-60SurfaceRacaSKC
    RACA21-00353747817366717031268338-60.4SurfaceRacaSKC
    MS11-018147357566747041905106-50SurfaceLake ZoneMTS
    MS11-0210147357566747041905104-63.6SurfaceLake ZoneMTS
    MS11-02A9047357466747011905106-60SurfaceLake ZoneMTS
    MS11-031014735746674702190599-60SurfaceLake ZoneMTS
    MS11-0410247357466747001905116.3-59.3SurfaceLake ZoneMTS
    MS11-0824347344166747481926107.6-52.5SurfaceLake ZoneMTS
    87-3658247357466747021906106.1-61SurfaceLake ZoneMTS
    87-370914735726674705190797.8-69.8SurfaceLake ZoneMTS
    87-37211347354066747051904104.1-63.1SurfaceLake ZoneMTS
    87-3731224735396674705190498.1-73SurfaceLake ZoneMTS
    88-291564734666674706175450.8-34.51750 levelLake ZoneMTS
    88-5087947357466747151907125.1-62.5SurfaceLake ZoneMTS
    86-19220947342566747341928107-58SurfaceLake ZoneMTS


    Quality Assurance and Quality Control

    Drill core from the Company's 2021 exploration program was logged and sampled in a secure core storage facility located at the Project site. Core samples from the 2021 program were cut in half, using a diamond cutting saw. Drill core and surface samples were sent to ALS Laboratories which are independent of the Company. Sample preparation was performed at the ALS Laboratory in Whitehorse, Yukon, followed by analysis at the ALS Laboratory in North Vancouver, British Columbia. ALS is an accredited mineral analysis laboratory. All samples were analysed for gold using standard Fire Assay-AA techniques. Samples returning over 10.0 g/t gold were analysed utilizing standard Fire Assay-Gravimetric methods. Samples were also analyzed for a 48 multielement geochemical suite by ICP-MS with a four-acid digestion. Certified gold reference standards, blanks, field duplicates and coarse reject duplicates were routinely inserted into the sample stream, as part of Whitehorse Gold's quality control/quality assurance program.

    Qualified Persons

    The scientific and technical information contained in this news release has been reviewed and approved by Alex Zhang, P. Geo., who is a Qualified Person for the purposes of National Instrument 43-101 - Standards of Disclosure for Mineral Projects ("NI 43-101"). The Qualified Person has verified the information disclosed herein, including the sampling, preparation, security and analytical procedures underlying such information, and is not aware of any significant risks and uncertainties that could be expected to affect the reliability or confidence in the information discussed herein. Alex Zhang is the Vice President, Exploration of New Pacific Metals Corp..

    ABOUT WHITEHORSE GOLD CORP.

    Whitehorse Gold is a responsible mineral exploration and development company focused on its 170-square-km Project located in southern Yukon, approximately 55 km south-southwest of Whitehorse. The Project hosts the advanced-stage Skukum Creek and Goddell deposits, and the formerly producing Mt. Skukum high-grade gold mine, all of which remain open for expansion, plus additional untested mineralized occurrences. Project infrastructure includes an all-weather access road, a 50-person camp, approximately 6 kms of underground development, and a previously operating 300-tpd mill and associated support facilities. Underground operations by a previous operator at Mt. Skukum from 1986 to 1988 saw 233,400 tons of ore mined and processed to recover approximately 79,750 ounces of gold (Total Energold Corporation, 1989). The company is also reviewing other mining assets in jurisdictions that provide year-round access.

    On Behalf of Whitehorse Gold Corp.
    signed "Gordon Neal"
    Gordon Neal, CEO & Director

    For further information please contact:
    Investor Relations, Whitehorse Gold Corp.
    Phone: 604-336-5919
    Email: info@whitehorsegold.ca
    www.whitehorsegold.ca

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

    Cautionary Note Regarding Forward-Looking Statements

    This news release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable Canadian and U.S. securities legislation. All statements, other than statements of historical fact included in this news release, including, without limitation, future plans with respect to the Project, including the 2022 exploration and resource upgrade and expansion plans, the success of exploration activities, development potential and plans at the Project, the future economics of the Project, future exploration and drill results from the Project and other future plans, objectives or expectations of the Company are forward-looking statements. Forward-looking statements are often, but not always, identified by words or phrases such as "expects", "is expected", "anticipates", "believes", "plans", "projects", "estimates", "assumes", "intends", "strategies", "targets", "goals", "forecasts", "objectives", "budgets", "schedules", "potential" or variations thereof or stating that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved, or the negative of any of these terms and similar expressions. Forward-looking statements are based on the opinions, assumptions, factors and estimates considered reasonable at the date the statements are made. The opinions, assumptions, factors and estimates which may prove to be incorrect, include, but are not limited to: that the Company will be able to carry on current and future operations as planned; the timing, extent, duration and economic viability of such operations, including any mineral resources or reserves identified thereby; the accuracy and reliability of estimates, projections, forecasts, studies and assessments; that market fundamentals will result in sustained precious metals demand and prices; that there are no significant disruptions affecting operations, including labour disruptions, supply disruptions, power disruptions, security disruptions, damage to or loss of equipment, whether due to flooding, political changes, title issues, intervention by local landowners, environmental concerns, pandemics (including COVID-19) or otherwise; that the Company will be able to obtain and maintain governmental and regulatory approvals, permits and licenses in connection with its current and planned operations, development and exploration activities; that the Company will be able to obtain / maintain social licence at the Project; that the Company will be able to meet its current and future obligations; that the Company will be able to comply with environmental, health and safety laws; that the Company will be able to secure financing on suitable terms; the assumptions underlying mineral resource estimates and the realization of such estimates; and other assumptions and factors generally associated with the mining industry.

    Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company to differ materially from any future results, performance or achievements expressed or implied by the forward-looking statements. Such risks and other factors include, among others: social and economic impacts of COVID-19; actual exploration results; changes in project parameters and outcomes as plans continue to be refined; results of future exploration activities and resource estimates; future metal prices; availability of capital and financing on acceptable terms; general economic, market or business conditions; risks associated with community relations and corporate social responsibility; uninsured risks; regulatory changes; defects in title; availability of personnel, materials and equipment on a timely basis; accidents or equipment breakdowns; delays in receiving government and regulatory approvals; unanticipated environmental impacts on operations and costs to remedy same; and other exploration risks or other risks detailed herein and from time to time in the filings made by the Company with securities regulators. All of the Company's Canadian public disclosure filings may be accessed via www.sedar.com and readers are urged to review these materials. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ from those described in forward-looking statements, there may be other factors that cause such actions, events or results to differ materially from those anticipated. There can be no assurance that forward-looking statements will prove to be accurate and accordingly readers are cautioned not to place undue reliance on forward-looking statements.

    The Company undertakes no obligation to update any of the forward-looking statements in this news release or incorporated by reference herein, except as otherwise required by law.

    Cautionary Note to US Investors

    The disclosure in this news release and referred to herein was prepared in accordance with NI 43-101 which differs significantly from the requirements of the U.S. Securities and Exchange Commission (the "SEC"). The terms "proven mineral reserve", "probable mineral reserve" and "mineral reserves" used in this news release are in reference to the mining terms defined in the Canadian Institute of Mining, Metallurgy and Petroleum Standards (the "CIM Definition Standards"), which definitions have been adopted by NI 43-101. Accordingly, information contained in this news release providing descriptions of our mineral deposits in accordance with NI 43-101 may not be comparable to similar information made public by other U.S. companies subject to the United States federal securities laws and the rules and regulations thereunder.

    Investors are cautioned not to assume that any part or all of mineral resources will ever be converted into reserves. Pursuant to CIM Definition Standards, "Inferred mineral resources" are that part of a mineral resource for which quantity and grade or quality are estimated on the basis of limited geological evidence and sampling. Such geological evidence is sufficient to imply but not verify geological and grade or quality continuity. An inferred mineral resource has a lower level of confidence than that applying to an indicated mineral resource and must not be converted to a mineral reserve. However, it is reasonably expected that the majority of inferred mineral resources could be upgraded to indicated mineral resources with continued exploration. Under Canadian rules, estimates of inferred mineral resources may not form the basis of feasibility or pre-feasibility studies, except in rare cases. Investors are cautioned not to assume that all or any part of an inferred mineral resource is economically or legally mineable. Disclosure of "contained ounces" in a resource is permitted disclosure under Canadian regulations; however, the SEC normally only permits issuers to report mineralization that does not constitute "reserves" by SEC standards as in place tonnage and grade without reference to unit measures.

    Canadian standards, including the CIM Definition Standards and NI 43-101, differ significantly from standards in the SEC Industry Guide 7. Effective February 25, 2019, the SEC adopted new mining disclosure rules under subpart 1300 of Regulation S-K of the United States Securities Act of 1933, as amended (the "SEC Modernization Rules"), with compliance required for the first fiscal year beginning on or after January 1, 2021. The SEC Modernization Rules replace the historical property disclosure requirements included in SEC Industry Guide 7. As a result of the adoption of the SEC Modernization Rules, the SEC now recognizes estimates of "Measured Mineral Resources", "Indicated Mineral Resources" and "Inferred Mineral Resources". In addition, the SEC has amended its definitions of "Proven Mineral Reserves" and "Probable Mineral Reserves" to be substantially similar to corresponding definitions under the CIM Definition Standards. During the period leading up to the compliance date of the SEC Modernization Rules, information regarding mineral resources or reserves contained or referenced in this news release may not be comparable to similar information made public by companies that report according to U.S. standards. While the SEC Modernization Rules are purported to be "substantially similar" to the CIM Definition Standards, readers are cautioned that there are differences between the SEC Modernization Rules and the CIM Definitions Standards. Accordingly, there is no assurance any mineral reserves or mineral resources that the Company may report as "proven mineral reserves", "probable mineral reserves", "measured mineral resources", "indicated mineral resources" and "inferred mineral resources" under NI 43-101 would be the same had the Company prepared the reserve or resource estimates under the standards adopted under the SEC Modernization Rules.

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    To: LoneClone who wrote (164630)4/1/2022 4:26:10 PM
    From: LoneClone
       of 167649
     
    Kenorland Minerals Reports 2021 Drill Results from the Healy Project, Alaska

    newsfilecorp.com

    Vancouver, British Columbia--(Newsfile Corp. - April 1, 2022) - Kenorland Minerals Ltd. (TSXV: KLD) (OTCQX: NWRCF) (FSE: 3WQ0) ("Kenorland" or "the Company") is pleased to announce results from the 2021 maiden diamond drill program at the Healy Project ("the Project"), located within Alaska's prolific Goodpaster Mining District, and held under joint venture ("the Joint Venture") with Newmont Corporation ("Newmont") (NYSE: NEM). Wide-spaced drilling was designed to test three target areas (Bronk, Thor, and Spike) defined by extensive gold-in-soil geochemical anomalies. Assays from all 14 drill holes completed during the program, including 5,247 meters, are reported herein.

  • Along the southern end of the Bronk target area, 21HDD011 intersected multiple intervals of broad low-level gold mineralisation within a steeply dipping shear zone including 37.68m at 0.12 g/t Au, 36.80m at 0.33 g/t Au, 20.55m at 0.16 g/t Au, and 21.90m at 0.22 g/t Au. 21HDD024 stepped out 800 meters along strike to the north of 21HDD011, also intersecting multiple intervals of low-level gold mineralisation along the same structure including 11.82m at 0.12 g/t Au, 32.76m at 0.13 g/t Au, 35.56m at 0.26 g/t Au, and 26.41m at 0.19 g/t Au. 21HDD012 stepped out a further 600 meters along strike to the north of 21HDD024, intersecting 53.64m at 0.16 g/t Au and 21HDD013, a further 300-meter step-out along strike to the north of 21HDD012, intersected 34.86m at 0.19 g/t Au, extending the total strike length of mineralisation at Bronk to over 1700 meters with a mineralised footprint of up to 500 meters wide, open in multiple directions.
  • At Thor, located approximately two kilometers to the west of Bronk, 21HDD017 intersected 11.90m at 1.29 g/t Au within the hanging wall of a low angle structure along the contact between the augen gneiss and paragneiss units. 21HDD019, a 250-meter step out along strike to the south of 21HDD017, intersected 13.38m at 1.22 g/t Au within the hanging wall of a similar low angle structure within the augen gneiss unit. 21HDD015 drilled along the same fence as 21HDD019, intersected 24.16m at 0.25 g/t Au, also within the hanging wall of a low angle structure on the contact between the augen gneiss and paragneiss units. The known mineralised footprint at Thor is currently 500 meters by 500 meters and remains open.
  • Broadly disseminated and vein-hosted low-level gold mineralisation encountered in all targets areas confirm the presence of a kilometer-scale gold system. The alteration, mineralisation, and geochemical signature suggest a distal environment of an intrusion related system with widespread fluid flow permeating along low angle thrust faults and high angle shear zones.
  • High-power Titan™ IP and MT surveys completed towards the end of the drill program support the geological interpretation and highlight significant untested geophysical anomalies associated with mineralisation, controlled by structural and lithological traps.


  • Zach Flood, CEO of Kenorland states, "The maiden diamond drill program confirmed the presence of a large-scale gold system at Healy evidenced by broad mineralisation encountered throughout the wide-spaced drilling across multiple target areas. While there are many indications that Healy represents a significant greenfields gold discovery within Alaska's prolific Goodpaster Mining District, it will require additional drill testing to fully evaluate the economic potential. We will provide an update on our exploration plans going forward after we have completed a detailed review of the results and targets with Newmont Corporation, who currently holds a 30% participating interest in Healy."

    Figure 1. Plan map of 2021 Healy diamond drill program



    To view an enhanced version of Figure 1, please visit:
    orders.newsfilecorp.com

    Discussion of Results

    The 2021 diamond drill program was designed to test three target areas; Bronk, Thor, and Spike, all defined by kilometer-scale coherent Au-As+/-Sb soil geochemical anomalies within a package of dominantly metamorphic rocks including schist, paragneiss and augen gneiss. All drill holes intersected broad low-level gold mineralisation with associated widespread disseminated sulphides, alteration and veining. Mineralisation is controlled by both early, low-angle east-verging thrust faults, high-angle northeast striking shear zones and major lithological contacts. The structural setting of the Healy gold system is analogous to other major deposits in the region including Pogo in the Goodpaster District (greater than 8 million ounces of Au endowment), as well as Naosi located in the Richardson District (1.5 million ounces Au inferred resource). Geochemical associations of gold with silver, antimony and arsenic indicate an overall distal intrusion-related setting for the Healy gold system.

    Geophysical imaging of the Healy property was achieved with deep-seeing Titan™ IP and MT surveys (induced polarization and magnetotellurics), transecting five kilometers across the three target areas where drilling was conducted. The surveys were carried out towards the end of the field season due to contractor availability. The IP and MT surveys, which imaged up to 800 meters and 4 kilometers depth respectively, support the presence of shallowly dipping, east-verging architecture with mineralisation occurring along low angle thrust faults and steeper cross-cutting fault corridors. Broad zones of disseminated sulfide and strong alteration are well-defined in the chargeability and resistivity data with zones of combined high chargeability and low resistivity (high conductivity) correlating well with mineralised intercepts from the 2021 drill program. The imaging of additional strongly conductive and chargeable zones, between drilled prospects, highlight significant exploration targets which warrant follow-up drill testing.

    Figure 2. Stacked cross section showing (from top to bottom: geological interpretation, IP (induced polarization) chargeability, DC (direct current) resistivity, MT (magnetotelluric) resistivity



    To view an enhanced version of Figure 2, please visit:
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    Discussion of Results (continued)

    Mineralisation styles at Healy include disseminated sulphide, vein-hosted sulphide, and breccia-fill sulphide including arsenopyrite, pyrite, and stibnite with rare sphalerite. Pervasive alteration is dominantly sericite, carbonate with lesser fuchsite associated with structural features. Veins typically occur as sheeted to stockwork cm-scale quartz-carbonate. Gold-silver and arsenic-antimony ratios are highest within disseminated mineralisation at the Thor prospect in the west while the sulphide breccia-fill mineralisation at Bronk has distinctly higher silver and antimony, representing a broad geochemical zonation from more proximal to distal setting. Gold mineralisation and alteration occurs over a four-kilometer by two-kilometer footprint demonstrating extensive fluid flow associated with a significant gold system.

    Figure 3. Complete table of results

    Hole ID
    From (m)To (m)Length (m)Au (g/t)
    21HDD011
    232.30238.326.020.21
    And246.20283.8837.680.12
    And340.20377.0036.800.33
    And384.00404.5520.550.16
    And416.30438.2021.900.22
    And448.40456.908.500.22
    21HDD012
    83.52137.1653.640.16
    21HDD013
    224.20237.4513.250.20
    And389.64424.5034.860.19
    21HDD015
    73.3497.5024.160.25
    21HDD016
    80.7092.1011.400.22
    And154.38161.657.270.22
    And331.90335.083.180.47
    And343.63351.257.620.26
    21HDD017
    118.95150.0031.050.71
    Incl121.50133.4011.901.29
    21HDD019
    20.2033.5813.381.22
    21HDD020
    35.8946.0010.110.21
    And160.13190.4530.320.24
    And245.33250.785.450.26
    21HDD021
    32.5837.434.850.26
    21HDD022
    87.60103.9316.330.10
    And225.35230.184.830.22
    21HDD023
    315.31325.5310.220.10
    21HDD024
    8.7316.768.030.18
    And108.48120.3011.820.12
    And167.04199.8032.760.13
    And284.64320.2035.560.26
    And335.87362.2826.410.19


    Figure 4. Drill collar table

    Hole IDEasting (NAD83)Northing
    (NAD83)
    Elevation
    (m)
    Depth
    (m)
    DipAzimuth
    21HDD01163241371175591088476.7-45288
    21HDD01263261471188361273400.81-45106
    21HDD01363289371191041134453.24-50286
    21HDD0146300937118824937226.77-45112
    21HDD0156300927118824937214.88-65248
    21HDD0166297467118720932369.88-45112
    21HDD0176300777119108919318.36-55108
    21HDD01863378271179021329349.45-45108
    21HDD0196302307118773960509.78-45112
    21HDD0206320277117691977344.73-45288
    21HDD0216320277117691977393.8-70288
    21HDD02463213471184581078403.86-45109
    21HDD02263194371185461052297.79-45108
    21HDD02363270871182191170486.77-45290


    Figure 5. Claim map of the Goodpaster District



    To view an enhanced version of Figure 5, please visit:
    orders.newsfilecorp.com

    About the Healy Project

    Located in the prolific Goodpaster Mining District of Alaska, home of the Pogo gold mine, the Healy Project covers 18,470-hectares of Alaska state mining claims. The Healy Project was first identified and staked by Newmont Corporation in 2012, following a two-year regional stream sediment sampling program in eastern Alaska. Follow-up prospecting, mapping and systematic soil sampling defined multiple kilometer-scale gold, arsenic and antimony in soil geochemical anomalies. The Project is located along a major northeast trending fault system, as well as the prospective regional contact between metasedimentary rocks and Cretaceous intrusive rocks, similar to the neighbouring Pogo and Tibbs areas. The property scale structural geology is defined by numerous low-angle thrust faults cut by steeply dipping northeast trending faults. Gold anomalism is spatially associated with both steeply dipping faults and low angle thrust faults. No recorded exploration work had been done on the Healy Project prior to Newmont in 2012 and 2013. In 2018, Kenorland Minerals (formally Northway Resources Corp.) entered into an option agreement with Newmont and has now completed its Phase 1 Earn-in minimum work expenditures of US$4m for which it has earned a 70% interest in the Healy Project. Joint funding has commenced whereby Kenorland and Newmont are participating on a pro-rata basis of 70% and 30%, respectively.

    Figure 6. Location of the Healy Project



    To view an enhanced version of Figure 6, please visit:
    orders.newsfilecorp.com

    QA/QC and Core Sampling Protocols

    All drill core samples were collected under the supervision of Kenorland employees. Drill core was transported from the drill platform to the logging facility where it was logged, photographed, and split by diamond saw prior to being sampled. Samples were then bagged, and blanks and certified reference materials were inserted at regular intervals. Groups of samples were placed in large bags, sealed with numbered tags in order to maintain a chain-of-custody, and transported from Delta Junction to a Bureau Veritas Commodities laboratory in Fairbanks, Alaska. Samples were prepared for analysis according to BV method PRP70-250 where samples were crushed to 2mm and a 250g split was pulverized for analysis and then assayed for Gold. Gold in samples was analyzed by fire assay with AAS finish and over-limits re-analyzed gravimetrically. In zones with macroscopic gold the samples were first screened, and the fine fraction was fire assayed with AAS finish. Multi-element geochemical analysis (45 elements) was performed on all samples using BV method MA200 where a 0.25g split is heated in HNO3, HClO4, and HF to fuming and taken to dryness. The residue is dissolved in HCl and analyzed by a combination of ICP-ES/MS. All results passed the QAQC screening at the lab, all company inserted standards and blanks returned results that were within acceptable limits.

    Qualified Person

    Mr. Jan Wozniewski, B. Sc., P. Geo., OGQ (#2239) is the "Qualified Person" under National Instrument 43-101, has reviewed and approved the scientific and technical information in this press release.

    About Kenorland Minerals

    Kenorland Minerals Ltd. (TSXV: KLD) is a mineral exploration Company incorporated under the laws of the Province of British Columbia and based in Vancouver, British Columbia, Canada. Kenorland's focus is early to advanced stage exploration in North America. The Company currently holds four projects in Quebec where work is being completed under joint venture and earn-in agreement from third parties. The Frotet Project is held under joint venture with Sumitomo Metal Mining Co., Ltd., the Chicobi Project is optioned to Sumitomo Metal Mining Co., Ltd., the Chebistuan Project is optioned to Newmont Corporation, and the Hunter Project is optioned to Centerra Gold Inc. In Ontario, the Company holds the South Uchi Project under an earn-in agreement with a wholly owned subsidiary of Barrick Gold Corporation. In Alaska, USA, the Company owns 100% of the advanced stage Tanacross porphyry Cu-Au-Mo project as well as a 70% interest in the Healy Project, held under joint venture with Newmont Corporation.

    Further information can be found on the Company's website www.kenorlandminerals.com

    Kenorland Minerals Ltd.
    Zach Flood
    CEO, Director
    Tel: +1 604 363 1779
    zach@kenorlandminerals.com

    Kenorland Minerals Ltd.
    Francis MacDonald
    President
    Tel: +1 778 322 8705
    francis@kenorlandminerals.com

    Cautionary Statement Regarding Forward Looking Statements

    This news release contains forward-looking statements and forward-looking information (together, "forward-looking statements") within the meaning of applicable securities laws. All statements, other than statements of historical facts, are forward-looking statements. Generally, forward-looking statements can be identified by the use of terminology such as "plans", "expects', "estimates", "intends", "anticipates", "believes" or variations of such words, or statements that certain actions, events or results "may", "could", "would", "might", "will be taken", "occur" or "be achieved". Forward-looking statements involve risks, uncertainties and other factors disclosed under the heading "Risk Factors" and elsewhere in the Company's filings with Canadian securities regulators, that could cause actual results, performance, prospects and opportunities to differ materially from those expressed or implied by such forward-looking statements. Although the Company believes that the assumptions and factors used in preparing these forward-looking statements are reasonable based upon the information currently available to management as of the date hereof, actual results and developments may differ materially from those contemplated by these statements. Readers are therefore cautioned not to place undue reliance on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed times frames or at all. Except where required by applicable law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

    Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

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    To: LoneClone who wrote (164631)4/4/2022 1:31:57 PM
    From: LoneClone
       of 167649
     
    OUTBACK COMPLETES INITIAL PHASE OF EXPLORATION ON THE YEUNGROON GOLD PROPERTY


    newswire.ca

    Outback Goldfields Corp. Mar 30, 2022, 07:30 ET

    TSX.V: OZ OTCQB: OZBKF FSE: S600

    VANCOUVER, BC, March 30, 2022 /CNW/ - Outback Goldfields Corp. (the "Company" or "Outback") (TSXV: OZ) is pleased to provide an update on exploration activities at its Yeungroon gold property located in central Victoria, Australia.







    Map showing the areas of focus for Phase 1 drill program. Background is 1st vertical derivative magnetics. Geochemical results are pending. (CNW Group/Outback Goldfields Corp.)





    "We are pleased to report on our exploration progress so far at our highly-prospective Yeungroon gold property," commented Chris Donaldson, CEO. "We have recently finished the initial phase of our systematic and property-wide, multi-rig drill program where our efforts were focused on understanding the structural setting of gold mineralization peripheral to the Golden Jacket mine in addition to identifying geochemical anomalies in new and un-explored greenfields areas. Data analyses and interpretation are ongoing and will enable us to prioritize specific targets for the next round of diamond drilling."



    Highlights
    • Significant air-core drill program completed: Over 9,300 meters in 590 holes were completed across the property with two main objectives:
      • Expand the 600 meter long, open-ended, near-surface arsenic geochemical anomaly south of the Golden Jacket mine to the north and northeast; and,
      • Test numerous priority geophysical targets on the western side of the property along trend from the Moondyne prospect.

    Yeungroon Drill Program
    Shallow air-core holes were drilled on a grid pattern to the north and the northeast of the Golden Jacket Mine and along linear roadside traverses, perpendicular to the regional structural setting, covering the western side of the property (Figure 1). The highly portable air-core drill rig was used to sample and map the top of bedrock below cover. The air-core drill program was designed to build on encouraging results from a large grid-based, top of bedrock sampling rotary air-blast (RAB) drill program, and a short diamond drill program (see January 25th 2022 news release). A footprint of approximately 4.4 square kilometers was covered in the Golden Jacket Grid and 8.5 kilometers of road-side traverse were covered on the western side of the property.

    Drilling was first focused on testing the northwestern extent of the reef-hosted gold system along strike from the Golden Jacket mine, as well as testing numerous geophysical targets to the northeast and to the west of the mine along interpreted structural offsets. The Golden Jacket mine is associated with the property-scale, northwest-trending Golden Jacket fault, which transects the property for over 30 kilometres of strike length. Historical small-scale production from the Golden Jacket mine was reportedly 1,400 ounces of gold at approximately 250 grams per tonne (Bibby and Moore, 1998).

    Rock-chip samples from the drilling are being analysed daily using a tailored portable Xray fluorescence spectrometer (pXRF) workflow to measure elemental concentrations from prepared sample mounts as well as QA/QC samples. The focus for these analyses is pathfinder element geochemical concentrations (e.g., arsenic). Portable XRF analyses are ongoing and anomalous samples will be sent to the lab for fire assay gold analyses and results will be reported once received and compiled.

    The relationship between gold mineralization and disseminated arsenopyrite and high-arsenic contents in host rocks peripheral to gold-bearing quartz reefs is well established throughout the Victorian Goldfields (e.g., Arne et al., 2008) and has been used to focus exploration and vector to high-grade mineralization. Using the pXRF has allowed the technical team to streamline the analyses and make informed exploration decisions in the field based on a key suite of pathfinder elements.

    Yeungroon Project
    The 698 km2 Yeungroon property is transected by the north-trending, crustal-scale Avoca fault, which separates the western Stawell zone from the Eastern Bendigo zone. The western side of the Yeungroon property contains the historic Golden Jacket hard-rock reef mine associated with the regional-scale, northwest-trending Golden Jacket fault. Historical mining records indicate the Golden Jacket mine produced quartz-rich ore with grades of up to 250 grams per tonne gold (Bibby and More, 1998), however, the vertical and lateral extent of mineralization remains unknown.

    The eastern side of the project is underlain by Ordovician rocks of the Castlemaine group and comprises the northern extent of the Wedderburn Goldfield, where numerous small-scale, historical alluvial and hard-rock mines are located.

    Community Engagement
    Outback recognises the importance of open and honest community engagement in all our exploration activities. We approach all our exploration activities in a sustainable manner and ensure our activities comply with the Victorian Code of Practice for Mineral Exploration. As such, community consultation with local landowners has commenced and is ongoing.

    National Instrument 43-101 Disclosure
    This news release has been approved by Mr. Matthew Hernan (FAusIMM, MAIG) an independent consultant and "Qualified Person" as defined in National Instrument 43-101, Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators.

    Some data disclosed in this news release relating to sampling and drilling results is historical in nature. Neither the Company nor a qualified person has yet verified this data and therefore investors should not place undue reliance on such data. In some cases, the data may be unverifiable due to lack of drill core. Mineralization hosted on adjacent and/or nearby and/or geologically similar properties is not necessarily indicative of mineralization hosted on the Company's property.

    References
    Arne, D.C., House, E., and Lisitsin, V., 2008, Lithogeochemical haloes surrounding central Victorian gold deposits: Part 1 – Primary alteration, Geoscience Victoria Gold Undercover Report 4, 95 p.

    Bibby, L.M., and Moore, D.H., 1998, Charlton 1:100,000 map area geological report, Geological Survey of Victoria Report 116, 95 p.

    Edwards, J., Moore, D.H., Lynn, S.F., and Bibby, L.M., 2001, Wedderburn 1:100,000 map area geological report, Geological Survey of Victoria Report 122, 118 p.

    About Outback Goldfields Corp.:
    Outback Goldfields Corp. is a well financed exploration mining company that is actively exploring its package of highly prospective gold projects located around the Fosterville Gold Mine in Victoria. The goldfields of Victoria are home to some of the highest grade and lowest cost mining in the world.

    ~signed

    Chris Donaldson, CEO and Director

    CAUTIONARY NOTE REGARDING FORWARD LOOKING STATEMENTS
    This news release includes certain "forward-looking statements" and "forward-looking information" under applicable Canadian securities legislation that are not historical facts. Forward-looking statements involve risks, uncertainties, and other factors that could cause actual results, performance, prospects, and opportunities to differ materially from those expressed or implied by such forward-looking statements. Forward-looking statements in this news release include, but are not limited to, statements with respect to: the Company's business and prospects; the Company's objectives, goals or future plans; resumption of trading in the Company's common shares; and the business, operations, management and capitalization of the Company. Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable, are subject to known and unknown risks, uncertainties and other factors which may cause actual results and future events to differ materially from those expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general business, economic and social uncertainties; litigation, legislative, environmental and other judicial, regulatory, political and competitive developments; delay or failure to receive board, shareholder or regulatory approvals; those additional risks set out in the Company's public documents filed on SEDAR at www.sedar.com; and other matters discussed in this news release. Accordingly, the forward-looking statements discussed in this release, including the resumption of trading, may not occur and could differ materially as a result of these known and unknown risk factors and uncertainties affecting the companies. Although the Company believes that the assumptions and factors used in preparing the forward-looking statements are reasonable, undue reliance should not be placed on these statements, which only apply as of the date of this news release, and no assurance can be given that such events will occur in the disclosed time frames or at all. Except where required by law, the Company disclaims any intention or obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

    SOURCE Outback Goldfields Corp.

    For further information: Investor Relations and Corporate Enquiries: Email: info@outbackgoldfields.com,Tel: +1.604.900.3450



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    To: LoneClone who wrote (164632)4/4/2022 1:34:43 PM
    From: LoneClone
       of 167649
     
    Norsemont Expands Footprint at Choquelimpie With Latest Positive Drill Results Which Intercepted 170 Meters of 1.57 g/t AuEq and 95 Meters of 1.92 g/t AuEq

    ca.finance.yahoo.com

    Norsemont Mining Inc.
    Thu, March 31, 2022, 6:00 a.m.·7 min read

    Figure 1:



    Plan Map of the Choque Pit with location of significant gold intercepts in drill hole MV21-009 (this news release, red text). Results of hole MV21-006 were reported in a news release on March 2, 2022. Results of hole MV21-008 and MV21-010 are pending.

    Figure 2:



    Cross-section A-A’ through drill hole MV21-009 showing significant gold intercepts and preliminary geological interpretation. Mineralisation is open along strike and to depth.
    Figure 3:



    Plan Map of the Vizcacha Pit with location of significant gold intercepts in drill hole MV21-001. Results of holes MV21-002, 003, 004 and 005 were previously reported on Feb 9, 2022 and March 2, 2022.
    Figure 4:



    Choquelimpie historic open pits and drill holes, with Norsemont’s 2021 drill hole locations. Holes with results reported here are highlighted in yellow.

    VANCOUVER, British Columbia, March 31, 2022 (GLOBE NEWSWIRE) -- Norsemont Mining Inc. (CSE: NOM, OTCQB: NRRSF, FWB: LXZ1) (“Norsemont” or the “Company”) is pleased to announce the third tranche of results from its 2021 maiden diamond drilling program at the company’s Choquelimpie high sulphidation epithermal gold-silver project in northern Chile.

    Highlights:

  • Hole MV21-009 returned notable intercepts that include long gold-silver intervals that remain open along strike and to depth, as well as near-surface oxide, that expand the known footprint of mineralisation in the Choque Pit area:

  • 170.0 m grading 1.35 grams per tonne (“g/t”) gold (“Au”), 18.3 g/t silver (“Ag”), (1.57 g/t AuEq*),

  • And 47.0 m grading 0.56 g/t Au,

  • And 15.0 m grading 0.84 g/t Au, 8.4 g/t Ag (0.94 g/t AuEq) as oxide

  • The third batch of analytical results for the program have been received from Andes Analytical Laboratories and correspond to diamond drill holes MV21-001, MV21-007 and MV21-009. A detailed plan map of holes in the Choque Pits area is shown in Figure 1 and a section through the hole with a table of significant gold intercepts** is shown in Figure 2.

    * Gold equivalent (AuEq) is used for illustrative purposes, to express the combined value of Au and Ag as a percentage of Au. AuEq is calculated using 80:1 silver to gold ratio where AuEq = Au + (Ag*0.012). No allowances have been made to accommodate potential recovery losses that would occur in a mining scenario.
    ** Significant gold intercepts are those with >0.3 g/t Au, maximum 4.0 m continuous internal dilution; Grades are core-length weighted and rounded to two decimal places. True width is estimated at 75-95% of core length.

    Marc Levy, Norsemont’s CEO comments, "This exciting drill hole, MV21-009 beneath the Choque Pit is potentially transformational for the company. The 170m interval grading 1.57g/t AuEq remains open along strike and at depth. The fact that precious metals grades increase to 1.92 g/t AuEq in the lower 100m of this hole along with the presence of copper mineralization supports our thesis of potential porphyry Au-Cu mineralization beneath this hole. Similarly, we need additional drill testing to determine what our new porphyry discovery at Vizcacha looks like at depth. In both locations we have demonstrated significant mineralization extends beyond historic drilling, to depths of at least 300m vertically below surface.”

    Figure 1: Plan Map of the Choque Pit with location of significant gold intercepts in drill hole MV21-009 (this news release, red text). Results of hole MV21-006 were reported in a news release on March 2, 2022. Results of hole MV21-008 and MV21-010 are pending.
    globenewswire.com

    Figure 2: Cross-section A-A’ through drill hole MV21-009 showing significant gold intercepts and preliminary geological interpretation. Mineralisation is open along strike and to depth.
    globenewswire.com

    MV21-009 was sited to test for extensions of mineralisation to the south-east and beneath the Choque Pit, Figure 1 and 2. The hole intersected grey silica matrix hydrothermal breccias with pyrophyllite-dickite advanced argillic alteration and disseminated and crackle-hosted pyrite (±enargite-sphalerite) mineralisation. Notable mineralised intervals include 15.0 m of near surface oxide gold followed by 170.0 m of highly significant gold-silver mineralisation.

    Drillhole MV21-001 was planned to test for extensions of the hydrothermal breccias seen in the Vizcachas pit to the north and to depth (Figure 3). The hole cut a multi-pulse breccia complex made up of chaotic matrix, tuffisite matrix and hydrothermal matrix breccias with advanced argillic alteration (dickite-pyrophyllite, illite-pyrophyllite) and silicification thought to represent the transition from the upper epithermal environment to the deeper porphyry environment. Mineralisation occurs as sulphides of pyrite (± enargite-galena-sphalerite) with gold grades open in all directions.

    Figure 3: Plan Map of the Vizcacha Pit with location of significant gold intercepts in drill hole MV21-001. Results of holes MV21-002, 003, 004 and 005 were previously reported on Feb 9, 2022 and March 2, 2022.
    globenewswire.com

    MV21-007 was sited to extend mineralisation between the Intermedio pit and the open mineralisation intercepted in historic drillhole R144 (69m @ 2.76 g/t Au, 21.9 g/t Ag), Figure 4. The hole cut a daci-andesite dome with argillic and advanced argillic alteration. Oxide mineralisation extends to 18.7 m before entering the sulphide zone with pyrite (±sphalerite-galena). The alteration and mineralisation, which returned sporadic intercepts, is interpreted as being typical of the peripheral “halo” to the high-grade zones seen in the Intermedio Pit.

    John Currie, Norsemont’s VP of Exploration states “These new diamond drilling results continue to provide us with highly significant gold and silver grades over broad intervals and to depth in the Choque Pit area, below historic drilling. The upside potential of the Choquelimpie epithermal deposit is becoming better understood and this knowledge in combination with the discovery of proximal porphyry-style mineralisation, suggests excellent exploration potential going forward. Now, we await the final tranche of assay results from the drilling, and the results of surface mapping and sampling of the Vizcacha Porphyry”.

    In the Q4 2021 drill campaign Norsemont completed ten diamond drill holes for a total of 3,144.1 m, (Figure 4).

    Figure 4: Choquelimpie historic open pits and drill holes, with Norsemont’s 2021 drill hole locations. Holes with results reported here are highlighted in yellow.
    globenewswire.com

    Drill core for the Choquelimpie 2021 drill program is collected directly from the drill site by company staff and taken to the core shack at the Choquelimpie camp. Drill core is logged, photographed, and sampled by staff who insert certified reference materials into the sampling sequence when/where appropriate. Sample lengths are marked at 1.0 metre intervals and the core is cut by a diamond blade rock saw, with half of the cut core placed in individual bar-code numbered polyurethane bags and half placed back in the original core box for permanent storage. The sample bags are sealed, placed in security-sealed sacks, and then delivered by company staff to the Andes Analytical Laboratory (AAA) sample receiving facilities in Arica, Chile.

    All drill core splits reported in this news release were analysed at AAA in Santiago, Chile utilising their ICP_AES_HF38m1 analytical package. This comprises a four-acid digestion followed by a 38-element ICP-MS scan, in conjunction with the AEF_AAS_1E42 40g Fire Assay with AAS finish for gold on all samples. Samples that return values >10 ppm gold from fire assay and AAS are determined by using fire assay and a gravimetric finish (lab code AEF_GRV_1E43). Samples that return values >5,000 ppm for copper and >400 ppm silver by ICP analysis are determined by four acid digestion AAS finish assay (lab codes 4A-HF_AAS_1E13_ppm and 4A-HF_AAS_1E08_0.25-100 respectively).

    The information presented in this news release was collected and prepared by SCM Vilacollo staff in accordance with Canadian regulatory requirements as set out in National Instrument 43-101. QA/QC for the analytical results was reviewed by Mr. Enrique Grez, an independent qualified person, registration number 0015 of the Comisión Calificadora de Recursos y Reservas Mineras de Chile, and a Qualified Person as defined in National Instrument 43-101, Standards for Disclosure for Mineral Projects.

    Mr. Art Freeze, P.Geo, Director of Norsemont Mining as well as a qualified person as defined by National Instrument 43-101, has supervised the preparation of the technical information in this news release.

    About Norsemont Mining Inc.

    Norsemont comprises experienced natural resource professionals focused on growing shareholder value and developing its flagship project through to bankable feasibility. Norsemont Mining owns a 100-per-cent interest in the Choquelimpie gold-silver project in northern Chile, a previously permitted gold and silver mine. Choquelimpie has over 1,710 drill holes, with significant existing infrastructure, including roads, power, water, camp and a 3,000 TPD mill.

    On behalf of the Board of Directors,

    NORSEMONT MINING INC.

    Marc Levy
    CEO & Chairman

    For more information, please contact the Company at:
    Telephone: (604) 669-9788; Facsimile: (604) 669-9768

    Investor Relations:

    Paul Searle (778) 240-7724 ( psearle@citygatecap.com)

    Forward-Looking Information

    This release includes certain statements that are deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address events or developments that Norsemont expects to occur, are forward-looking statements. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results may differ materially from those in the forward-looking statements. Factors that could cause the actual results to differ materially from those in forward-looking statements include changes to commodity prices, mine and metallurgical recovery, operating and capital costs, foreign exchange rates, ability to obtain required permits on a timely basis, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and actual results or developments may differ materially from those projected in the forward-looking statements. Forward-looking statements are based on the beliefs, estimates and opinions of the Company's management on the date the statements are made. Except as required by applicable securities laws, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change.

    Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release. No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.

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