Development

Feasibility Study – Preliminary Metallurgical Results

SGSL was retained to complete initial metallurgical test work at their Lakefield, Ontario facility on the sulphide component of the mineral resource, this work is now complete. As part of the study, three diamond core samples taken from the fresh rock (‘sulphide’ mineral resource) of the Buckreef Gold deposit were submitted to SGSL for the study.

SGSL will now be commissioned to undertake the metallurgical variability phase for Buckreef Gold which will encompass the first 5-7 years of production from the sulphide operation at Buckreef Gold. The study highlights include:

✓ The following intercepts and gold recoveries have been confirmed in the report:
     ▪ MC01: 0.54 g/t Au over 78.88m – 94.1%
     ▪ MC02: 19.4 g/t Au over 27.99m – 95.4%
     ▪ MC03: 1.71 g/t Au over 52.53m – 85.3%
✓ A straightforward flowsheet consisting of:
     ▪ Primary grinding to P80 = ~100-150 µm
     ▪ Rougher flotation
     ▪ Regrind of the rougher concentrate to ~15-20 µm (P80)
     ▪ Cyanide leaching of the reground flotation concentrate
     ▪ Cyanide leaching of the flotation tailing
✓ No refractory association of gold with arsenic sulphide was detected;
✓ The samples tested did not exhibit any preg-robbing or other refractory characteristics;
✓ Clean tailings, high probability of mine tailings not being acid generating, confirming the
    approach of dry stack tailings going forward; and
✓ Further opportunities to improve gold extraction from MC03 have been identified through
    diagnostic leach testing.

In 2020, three diamond drill holes were completed for the purposes of initial, modern era metallurgical test work. Diamond drill hole details are tabulated below:

The samples were extracted as fresh drill core from areas/zones with known lithologies from within the current project’s open pit limit. The samples were selected by TanGold and confirmed by the SGS geological services group that worked together doing the metallurgical sample selection. The investigation included ore characterization, comminution, mineralogy, head analyses, and potential for gold pregrobbing, and evaluated the amenability of the three samples to two primary processing flowsheet options, that incorporate comminution (crushing and grinding), gravity separation, flotation and cyanidation unit operations.