Resource Estimates

Preliminary Economic Assessment Report Toroparu Gold Project Upper Puruni River Area, Guyana

Sep 26, 2018 Updated Mineral Resource Estimate

All Rocks Types Gold Resources Silver & Copper Resources
Measured & Indicated Tonnes
Tonnes (000's) Au
Toroparu 227,416 0.90 6,566 227,416 0.84 6,130 0,086 433
SE Zone 13,383 0.94 403 13,383 0.35 152 0,036 11
Sona Hill 11,722 1.04 394 0 n/a n/a n/a n/a
Total Meas. & Indicated 252,751 0.91 7,353 240,799 0.81 6,282 0.084 444
Toroparu 116,629 0.74 2,776 116,629 0.07 266 0.040 103
SE Zone 686 0.83 18 686 0.45 10 0,049 1
Sona Hill 11,630 0.85 356 0 n/a n/a n/a n/a
Total Inferred 128,945 0.76 3,150 117,315 0.07 276 0.076 104

Notes on Resource Estimate:

  • All resources in the September 26, 2018 mineral resource statement are inpit resources reported within an optimized pit shell (Resource Pit Shell) above an economic cut-off grade of 0.30 g/t Au. The optimized pit shell was determined for Measured, Indicated and Inferred resources using a gold price of US$1,350/oz, a copper price of US$3.00/lb; an average metallurgical recovery of 88.2% for gold, and 81.5% for copper mill feed sent to the copper flotation circuit. The optimized pit shell was determined using an average mining cost of US$1.60/t mined, saprolite processing cost of US$2.50/t, CIL processing cost of US$8.50/t, flotation processing cost of US$10.47/t, and G&A cost of US$1.24/t processed. Other costs included US$125/oz Au for gold refining and royalties, and US$1.036/lb for copper concentrate transportation and smelting with 97% pay for terms. Pit slopes used in the pit optimization were 45°. Copper and Silver resources have not been estimated at Sona Hill.
  • Mineral Resources are reported in accordance with Canadian Securities Administrators (CSA) National Instrument 43-101 (NI 43-101) and have been estimated in conformity with generally accepted Canadian Institute of Mining, Metallurgy and Petroleum (CIM) “Estimation of Mineral Resource and Mineral Reserves Best Practices” guidelines;
  • Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources estimated will be converted into mineral reserves estimate;
  • Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding; While the estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues, the Company is not aware of any such issues;
  • The quantity and grade of reported Inferred resources in this estimation are uncertain in nature and there has been insufficient exploration to define these Inferred resources as an Indicated or Measured mineral resource and it is uncertain if further exploration will result in upgrading them to an Indicated or Measured mineral resource category; and “(000)” = thousands, “g/t” = gram per metric tonne. Tonnes are rounded to the nearest one thousand tonnes, gold to nearest 1,000 oz Au, gold grade to nearest 0.01 g/t Au, and copper to nearest million pounds