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The updated resource estimate (NI 43-101 Technical Report - March 2018) successfully converted a significant proportion of Inferred to the Indicated Resource category, at both Douay West and Porphyry Zones. Resources at Douay now stand at 2.76 million ounces Inferred plus 0.48 million ounces Indicated, as highlighted below:

Table 1: Douay Gold Project Pit-Constrained Indicated & Inferred Resource Summary (Base-case)

CUT-OFF GRADE
(G/T AU)

CATEGORY TONNES

GOLD GRADE
(G/T)

CONTAINED
GOLD
(OUNCES)

0.45 INDICATED 9,383,000 1.59 479,000
INFERRED 84,152,000 1.02 2,759,000

*See disclosure notes below

Indicated Resources are present in the more tightly drilled Douay West Zone (3,693,000 tonnes grading 2.47 g/t Au for 294,000oz Au) and also in four areas within the Porphyry Zone (5,690,000 tonnes grading 1.01 g/t Au for 185,000oz Au). The Indicated and Inferred Resources at various cut-off grades are summarized in Table 2 below.

Table 2: Douay Gold Project Pit-Constrained Indicated & Inferred Resource Summary (Various Cut-Off Grades)

CUT-OFF GRADE
(G/T AU)

category TONNES

GOLD GRADE
(G/T)

CONTAINED
GOLD
(OUNCES)

0.50* Indicated 8,615,000 1.69 467,000
inferred 74,286,000 1.09 2,610,000
   0.45** indicated 9,383,000 1.59 479,000
inferred 84,152,000 1.02 2,759,000
0.40 indicated 10,162,000 1.50 489,000
inferred 95,388,000 0.95 2,914,000
0.30 indicated 12,046,000 1.32 510,000
inferred 124,278,000 0.81 3,235,000

*Comparison note: Micon 2017 estimate was all Inferred Resources of 2,813,000 ounces @ 1.05 g/t using a 0.5 g/t cut-off grade.
**Base-case. See disclosure notes appended to press release (Feb 14, 2018)

 Plan view of Micon Feb 2018 Resource Areas

Figure 1: Plan view of Micon 2018 Resource Areas: conceptual pit shells, with several zones apparently merging into a larger unified system.

For comparison purposes, click here to view the conceptual pit-constrained plan view used in the Micon 2017 Resource Estimate. 

Douay Summary Report Table by Zone (base case @ 0.45 g/t Au cut-off) 

Zone Category Cut-off Au Tonnes Avg. Grade Gold Ounces
DW (1000) Indicated 0.45 3,693,000 2.47 294,000
  Inferred 0.45 2,932,000 1.39 131,000
POR (2000) Indicated 0.45 5,690,000 1.01 185,000
  Inferred 0.45 68,910,000 0.97 2,142,000
           
CZ (7000) Inferred 0.45 1,086,000 0.96 33,000
MZ10 (3000) Inferred 0.45 1,864,000 1.14 68,000
MZ20 (5000) Inferred 0.45 1,685,000 0.69 38,000
MZ (4000) Inferred 0.45 1,849,000 1.43 85,000
531 (5300) Inferred 0.45 4,998,000 1.33 214,000
NW (6000) Inferred 0.45 828,000 1.80 48,000
           
All Douay Indicated 0.45 9,383,000 1.59 479,000
  Inferred 0.45 84,152,000 1.02 2,759,000

*See disclosure notes below

Click here to view summary report table by zone @ 0.50 g/t cut-off grade

Notes:

  1. Mineral resources that are not mineral reserves do not have demonstrated economic viability. Micon does not believe that mineral resources estimate is materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
  2. The quantity and grade reported includes both indicated and inferred resources for the Douay West and Porphyry zones and inferred resources for the remaining zones in the deposit. The inferred resources in this estimation are conceptual in nature and there has been insufficient exploration data to define these resources as an indicated category and it is uncertain if further exploration will result in upgrading them to an Indicated mineral resource category. There are no measured resources currently for the mineral zones comprising the Douay Project.
  3. The mineral resource estimate has been prepared without reference to surface rights or the presence of overlying public infrastructure.
  4. Figures may not total due to rounding.
  5. A gold price of US $1,400 per ounce was used for the purposes of demonstrating economics.
  6. The mineralized envelopes were re-modelled in GEMS at 0.3 g/t Au cut-off assuming an anastomosing style of mineralization with some inclusion of lower grade material for modelling purposes.
  7. Although the Douay West, Porphyry Zones were able to produce supporting variograms, all zones within the entire deposit were estimated using Inverse Distance Cubed.
  8. Search ellipses range from 50 m to 300 m using 3 passes to fill the model. The search ellipses were also optimized to reflect the anastomosing nature and different directions and dips within the mineralized zones.
  9. Block size of 10 m x 2 m x 5 m was used.
  10. The effective date of the mineral resource estimate is February 9, 2018.

About Micon International Limited

Micon International Limited (Micon), mineral industry consultants, is an independent firm of senior geological, mining, metallurgical and environmental consultants. The firm operates from integrated offices in Toronto and Vancouver, Canada and Norwich and Cornwall, United Kingdom. The professionals of Micon have extensive experience in the mining industry with both mining companies and leading consultancy firms

NI-43-101 Technical Report - March 2018