Geology & Mineral Resources

Regional Geology

The Troilus gold and copper deposits lie within the eastern segment of the Frotêt-Evans Greenstone Belt, in the Opatica Subprovince of the Superior Province in Quebec, Canada. This greenstone belt extends for more than 300 kilometres and varies from a few kilometres up to 45 kilometres in width. It is divided into two similar volcano-sedimentary domains, the west domain and the east domain, which is known as the Frotêt-Troilus Domain.

The Troilus region contains many occurrences of gold, base metals, and molybdenite mineralization; Troilus being the largest gold deposit found to date.

Characteristics of the Troilus gold-copper mineral deposit:

• Hosted in Troilus Diorite, and in porphyritic felsic intrusions
  1. Two main zones of Au-Cu sulphide mineralization: Z87 and J4 (Chalcopyrite, pyrite, pyrrhotite)
• Mineralization is focused on the margins of Troilus diorite (metadiorite) in breccias, amphibolite, and quartz – chlorite (±tourmaline) vein swarms
• Disseminated mineralization accounts for ~90% of Troilus ore zone
• Quartz veining related to possible source of higher grade material (+50 g/t Au)

2020 Mineral Resource

Table 1 - Mineral Resource Estimate– Effective as of July 20, 2020

• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability;
• Summation errors may occur due to rounding;
• Open pit mineral resources are reported within an optimized constraining shells. 
• Open pit cut-off grade is 0.3 gpt AuEQ where the metal equivalents were calculated as follows:
  • Z87 Zone: AuEq = Au grade + 1.2566 * Cu grade + 0.0103 * Ag grade
  • J4/J5 Zone: AuEq = Au grade + 1.2979 * Cu grade + 0.0108 * Ag grade
  • SW Zone: AuEq = Au grade + 1.2768 * Cu grade + 0.0106 * Ag grade
• Metal prices for the AuEQ formulas are: $US 1,600/ oz Au; $3.25/lb Cu, and $20.00/ oz Ag; with an exchange rate of US$1.00:CAD$1.30;
• Metal recoveries for the AuEQ formulas are:
  • Z87 Zone: 83% for Au recovery, 92% for Cu recovery and 76% for Ag recovery
  • J4/J5 Zone: 82% for Au recovery, 88% for Cu recovery and 76% for Ag recovery
  • SW Zone: 82.5% for Au recovery, 90% for Cu recovery and 76% for Ag recovery
• The resource constraining shells were generated with:
  • Metal Prices: Gold $US 1600/oz, Copper $US 3.25/lb, Silver $US 20/oz
  • Mining Costs:
    • J Zone and 87 Zone base cost $Cdn 1.71/t moved,
    • SW Zone base cost $Cdn 1.66/t moved
    • Incremental cost $Cdn 0.03/t waste moved, $Cdn 0.02/t feed moved
  • Process and G&A Costs: $Cdn 8.44/t processed
  • Wall slopes: varied between 49.5 to 60 degrees depending on pit area and slope sector
  • Metal Recoveries:
    • Gold: 90% all zones except in lower grade (Au<1/2 g/t) portions of SW zone = 88%
    • Copper: 90% all zones except in higher grade (Cu%>0.13%) portions of SW zone = 92%
    • Silver: all zones 40%
• Underground cut-off grade is 0.9 AuEQ at Z87 Zone and J4/J5 Zone

This updated mineral resource estimate, prepared in accordance with Canadian Institute of Mining, Metallurgy and Petroleum “CIM” (2014) Definition Standards incorporated by reference in National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”), is the result of over 8,500 metres of drilling between November 2019 and February 2020 (24 drill holes), in addition to 36,000 metres (81 drill holes) of drilling completed by the Company from February 2019 to July 2019 and 36,000 metres (91 drill holes) of drilling completed in August 2018.  The mineral resource estimates for Z87 Zone and J Zones (J4 and J5) are based on a combined open pit and underground mining scenario, while the mineral resource estimates for the Southwest Zone (SWZ) is based on open pit mining.  The combined updated open pit and underground mineral resource estimate is summarized in Table 2. 

Table 2 – Open Pit and Underground Estimated Mineral Resources – Effective as of July 20, 2020

• Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability;
• Summation errors may occur due to rounding;
• Open pit mineral resources are reported within an optimized constraining shells. 
• Open pit cut-off grade is 0.3 gpt AuEQ where the metal equivalents were calculated as follows:
  • Z87 Zone: AuEq = Au grade + 1.2566 * Cu grade + 0.0103 * Ag grade
  • J4/J5 Zone: AuEq = Au grade + 1.2979 * Cu grade + 0.0108 * Ag grade
  • SW Zone: AuEq = Au grade + 1.2768 * Cu grade + 0.0106 * Ag grade
• Metal prices for the AuEQ formulas are: $US 1,600/ oz Au; $3.25/lb Cu, and $20.00/ oz Ag; with an exchange rate of US$1.00:CAD$1.30;
• Metal recoveries for the AuEQ formulas are:
  • Z87 Zone: 83% for Au recovery, 92% for Cu recovery and 76% for Ag recovery
  • J4/J5 Zone: 82% for Au recovery, 88% for Cu recovery and 76% for Ag recovery
  • SW Zone: 82.5% for Au recovery, 90% for Cu recovery and 76% for Ag recovery
• The resource constraining shells were generated with:
  • Metal Prices: Gold $US 1600/oz, Copper $US 3.25/lb, Silver $US 20/oz
  • Mining Costs:
    • J Zone and 87 Zone base cost $Cdn 1.71/t moved,
    • SW Zone base cost $Cdn 1.66/t moved
    • Incremental cost $Cdn 0.03/t waste moved, $Cdn 0.02/t feed moved
  • Process and G&A Costs: $Cdn 8.44/t processed
  • Wall slopes: varied between 49.5 to 60 degrees depending on pit area and slope sector
  • Metal Recoveries:
    • Gold: 90% all zones except in lower grade (Au<1/2 g/t) portions of SW zone = 88%
    • Copper: 90% all zones except in higher grade (Cu%>0.13%) portions of SW zone = 92%
    • Silver: all zones 40%
• Underground cut-off grade is 0.9 AuEQ at Z87 Zone and J4/J5 Zone