Parallel Deposit

The Parallel Deposit is one of the Company’s highest-grade zones, located near the northern border of the Lamaque South property on top of the historic Lamaque Mine tailings. The Parallel Deposit will be accessed from a 700 metre exploration ramp that will be constructed from existing underground workings within the Sigma Pit. Resources at Parallel have been fully drilled and plans for accessing the deposit will be made upon completion of the Triangle exploration ramp.

Parallel Highlights

  • Resource Estimate (5 g/t cut off)(1)
    • Indicated: 141,210 ounces of gold grading 10.29 g/t gold (426,800 tonnes)
    • Inferred: 45,540 ounces of gold grading 7.70 g/t gold (184,100 tonnes)
  • Mining permits in place

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The Parallel Deposit was previously modeled (2011) as a bulk, open pit target, but a re-interpretation of historic drill results combined with results from recent work has led to the development of a new geological model and a significantly higher grade underground resource. With surface drilling the Parallel Deposit has been identified to a vertical depth of 400 meters and remains open at depth. No underground development was done by Teck at the Parallel Deposit.

The Parallel Deposit consists of several sub-vertical and sub-parallel “en echelon” pinch and swell veins, moderately dipping shears hosted veins and sub-horizontal vein clusters which are hosted within a narrow tabular shear zone that cross-cuts all the lithological units. The current resources are localized in 17 discrete veins with the 6B vein containing more than a third of the total resources.

1. Parallel: Effective date is February 05, 2016; Specific gravity of 2.80 g/cm3; geologically constrained model with hard boundary; capping of individual gold values at 100 g/t Au then capping of 20 g/t Au on composites when estimated cells are more than 15 m from drill hole otherwise uncapped; composited to 1 m downhole length before geostatistical analysis; 2 m minimum true thickness, if required diluted with in situ grade when assay results are available otherwise diluted with “zero” grade; ordinary kriging; 3 g/t cut-off calculated for official resource numbers.

The mineral resources presented herein are not mineral reserves and thus do not have demonstrable economic viability. The mineral resources for the Lamaque Project were estimated in conformity with CIM “Estimation of Mineral Resources and Mineral Reserves Best Practices” guidelines and are reported in accordance with NI 43-101. The “Technical Report and Fall 2016 Mineral Resurce Estimate Update for the Lamaque Project” is available under the Company’s SEDAR profile or at the following link:

Christian D’Amours, P.Geo. is the qualified person that prepared the mineral resource estimate. Please reference the following link for additional disclosures: