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The new resource estimate (RPA 2019 - see press release October 24, 2019) integrates the Company’s new 3D geological and structural model to better constrain Douay’s nine mineralised zones. This work also includes several conservative adjustments with the aim of delivering a new mineral resource estimate that will focus infill and step-out drilling to optimize existing resources and advance the deposit toward the economic study stage. These adjustments and changes include (but not limited to):

  • Adjustments to the conceptual pit shell slope assumptions (less steep) with pit shells now also extending to shallower depths
  • Adjusted search ellipses with reduced projections between holes and from the last hole on the edge of any given mineralised zone
  • Updated capping methodology, levels and spatial restriction to control the influence of higher-grade samples
  • Improved bulk density modelling of individual geological domains

At a cut-off grade of 0.45 g/t Au for pit-constrained resources and 1 g/t Au for underground resources, the Douay deposit is estimated to contain Indicated Mineral Resources of 8.6 million tonnes at an average grade of 1.52 g/t Au, and Inferred Mineral Resources of 71.2 million tonnes at an average grade of 1.03 g/t Au (open pit + underground). See tables and figures below for more details:

Table 1 – Mineral Resource Statement as at October 23, 2019

  Category Tonnage (Mt) Grade Contained Metal
  (Au g/t) (000 oz Au)
 
  Pit Constrained Mineral Resources  
  Indicated 8.6 1.52 422
  Inferred 65.8 0.97 2.045
  Underground Mineral Resources  
  Inferred 5.4 1.75 307
  Total Mineral Resources  
  Indicated 8.6 1.52 422
  Inferred 71.2 1.03 2,352
Notes:
1.      CIM (2014) definitions were followed for Mineral Resources.
2.      Mineral Resources are reported at an elevated cut-off grade of 0.45 g/t Au for open-pit Mineral Resources and a cut-off grade of 1.0 g/t Au for underground Mineral Resources.
3.      The Whittle pit shell used to estimate Mineral Resources used a long-term gold price of US$1,500 per ounce, however the implied gold price for the Mineral Resources reported at the elevated cut-off grade would be significantly lower.
4.      A US$/C$ exchange rate of 0.7, and a gold recovery of 90% were used.
5.      A minimum mining width of 3 m was used.
6.      Open pit resources are reported within a preliminary pit shell.
7.      Bulk density is 2.71 t/m3 or 2.82 t/m3 depending on the zone.
8.      Numbers may not add due to rounding.
9.      Mineral Resources for Douay have been updated using data available to October 23, 2019.

In addition to the reported resource, RPA has reported additional exploration potential (500,000 – 1,500,000 ounces) for the areas with known mineralisation below base of pit that were not included as inferred ounces (see Exploration Potential section below).

Table 2: Douay Gold Project Pit-Constrained Indicated & Inferred Resource Summary (Various cut-off grades ranging from 0.25 – 0.65 g/t Au)

Pit Indicated    
       
Cut-off Tonnes Grade Metal Content
g/t Mt Au (g/t) Au (koz)
0.25 11.6 1.22 454
0.35 9.9 1.38 438
0.45 8.6 1.52 422
0.55 7.5 1.67 405
0.65 6.6 1.83 386
       
Pit Inferred    
       
Cut-off Tonnes Grade Metal Content
g/t Mt Au (g/t) Au (koz)
0.25 116.5 0.69 2596
0.35 86.6 0.83 2311
0.45 65.8 0.97 2045
0.55 50.6 1.11 1803
0.65 39.6 1.25 1591

Notes:

  1. See footnotes from Table 1.
  2. Mineral Resources are estimated at a cut-off grade of 0.45 g/t Au for open-pit Mineral Resources.

image001.png

Figure 1: Plan view of RPA 2019 resource zones showing conceptual 3D pits with black ellipses highlighting higher-grade (>2 g/t Au) blocks on edges of mineralised zones (priority follow up exploration targets). Note new Nika pit, merging with pre-existing NW Zone pit

Underground Exploration Potential*

RPA has stated that the potential tonnage and grade of additional underground mineralisation below the new pit shells could be 10 to 30 million tonnes, grading between 1.5 g/t Au and 2.5 g/t Au for approximately 0.5 to 1.5 million ounces gold. Figure 2 shows the RPA reporting shapes in green (307,000 Inferred ounces averaging 1.75 g/t Au), as well as the mineralised blocks at various grades below the pit shells that were not included in the reporting shapes, therefore, not reported in the current Mineral Resource statement, due to insufficient drilling. The Company’s recent results from the single 531 Zone drill-hole during 2019 (included intercepts of 16m @ 4.58 g/t Au, 9m @ 4.92 g/t Au and 9m @ 4.71 g/t Au – see press releases June 5, 2019) demonstrate the exploration potential for further higher-grade mineralisation. The black ellipses in Figure 2 below highlight further exploration potential at depth.

image002.png

Figure 2: NW-SE longitudinal vertical section view (all zones) showing distribution of below-pit shell underground blocks above 1 g/t Au cut-off. Only blocks within reporting shapes (green shaded area) form part of inferred underground Mineral Resource. Black ellipses point to undrilled exploration potential at depth, which is in addition to potential contributions from infill drilling in areas with current blocks

*The potential quantity and grade are conceptual in nature as there has been insufficient exploration to define a Mineral Resource along strike from the resource area, and it is uncertain if further exploration will result in the target being delineated as a Mineral Resource. The underground exploration potential estimated outside of the resource reporting pit shell is based on areas of mineralisation intersected by drilling, but not necessarily supported by two drill holes, which was required for Inferred Mineral Resources, plus the immediate down-plunge extension of known zones of mineralisation.

About RPA

RPA Inc. is a group of technical professionals who have provided advice to the mining industry for more than 30 years. During this time, RPA has grown into a highly respected organization regarded as the specialty firm of choice for resource and reserve work. RPA provides services to the mining industry at all stages of project development from exploration and resource evaluation through scoping, prefeasibility and feasibility studies, financing, permitting, construction, operation, closure, and rehabilitation. Our portfolio of customers includes clients in banking (both debt and equity) institutional investors, government, major mining companies, exploration and development firms, law firms, individual investors, and private equity ventures.

Qualified Persons

The Mineral Resources information disclosed on this page have been estimated by Ms. Dorota El Rassi, P.Eng., an employee of RPA who is independent of Maple Gold. By virtue of her education and relevant experience, Ms. El Rassi is a "Qualified Person" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014). Ms. El Rassi, P.Eng. has read and approved the contents of this material as it pertains to the disclosed Mineral Resource estimates.

Further information about key assumptions, parameters and methods used to estimate the mineral resources, as well as legal, political, environmental or other risks that may affect the mineral resource estimate will be included in a NI 43-101 Technical Report to be filed on Sedar within 45 days following the date of the news release filed on October 24, 2019.

The scientific and technical data contained on this webpage was reviewed and prepared under the supervision of Fred Speidel, M. Sc, P. Geo., Vice-President Exploration, of Maple Gold. Mr. Speidel is a Qualified Person under National Instrument 43-101 Standards of Disclosure for Mineral Projects. Mr. Speidel has verified the data related to the exploration information disclosed in this news release through his direct participation in the work.