THE TATOGGA PROJECT - GT Gold Corp.Alamos Gold for ~$700M Charles Tarnocai, Director • Well...
Transcript of THE TATOGGA PROJECT - GT Gold Corp.Alamos Gold for ~$700M Charles Tarnocai, Director • Well...
September 2018
THE TATOGGA PROJECT Golden Triangle, BC
Cautionary Statement Regarding Forward Looking InformationCertain statements included in this presentation constitute forward-looking statements, including those identified by the words “proposed”, “will”, anticipate”,
“believe”, “plan”, “estimate”, “expect”, “intend”, “may”, “should” and similar words and expressions to the extent they relate to GT Gold Corp. (the
“Company”) or its management.
The forward-looking statements are not historical facts and are based on current expectations and various estimates, factors and assumptions. They
therefore involve known and unknown risks, uncertainties and other factors.
Any forward-looking statements represent the Company’s estimates only as of the date of this presentation and should not be relied upon as representing the
Company’s estimates as of any subsequent date. The material factors and assumptions that were applied in making the forward looking statements in this
presentation include:
• execution of the Company’s existing plans or exploration programs for its properties, which may change due to changes in the views of the Company, or
if new information arises which makes it prudent to change such plans or programs; and
• the accuracy of current interpretations of geochemical, geophysical, drilling and other exploration results, since new information or new interpretations of
existing information may result in changes in the Company’s expectations. Readers should not place undue reliance on the Company’s forward-looking
statements, as the Company’s actual results, performance or achievements may differ materially from any future results, performance or achievements
expressed or implied by such forward-looking statements if known or unknown risks, uncertainties or other factors affect the Company’s business, or if
the Company’s estimates or assumptions prove inaccurate. Therefore, the Company cannot provide any assurance that such forward-looking
statements will materialize. The Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of
new information, future events or otherwise.
QA/QC PROCEDURES
GT Gold has implemented a rigorous quality assurance / quality control (QA/QC) program to ensure best practices in sampling and analysis of RC chips and
diamond drill core, the complete details of which can be viewed on the Company’s website at http://www.gtgoldcorp.ca/projects/tatogga/
Saddle Reverse Circulation and Diamond Drill Program Assay Results Widths reported in this presentation are drilled core lengths. True widths are estimated
to be approximately 85-90% of drilled lengths for minus 50 degree holes, and approximately 70% for minus 70 degree holes. All assays are performed by
ALS Canada Ltd. (Minerals), with sample preparation carried out at the ALS facility in Terrace, BC, and assays at the North Vancouver laboratory. Assay
values are uncut. For gold, fire assays are performed as per ALS protocol Au-AA26 (0.01-100.00 g/t Au) using 50 grams of sample with assays equal to or
greater than 5 g/t Au calculated gravimetrically, and lower-grade samples measured by (AA) atomic absorption. All samples that return equal to or greater
than 5 g/t Au from initial fire assaying are additionally sent for screen metallic analysis using the remainder of the pulp (~950 grams of sample). This step is
taken to ensure that any coarse grained, nugget gold fraction that may have been missed in the fire assays has been captured.
GT Gold Corp.’s Qualified Person as defined by National Instrument 43-101 is Charles James Greig, P.Geo., Vice President, Exploration. Mr.Greig has
reviewed and approved the technical information in this presentation.
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Attractive Golden Triangle Opportunity
• Top-ranked jurisdiction for mining
• Significant world class deposits and recent discoveries
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PROLIFIC MINING
JURISDICATION
• Two potentially significant discoveries with substantial exploration upside
• Strategic location near recently completed infrastructure
• Large land package with highly prospective
geology
• High-grade near surface gold system open to
East, West, South, and depth
• Adjacent Cu-Au porphyry-style with scale
potential
• Board and management with proven track record of success
• Strong technical skillset and capital markets expertise
NEW DISCOVERIES
SIGNIFICANT
EXPLORATION UPSIDE
STRONG LEADERSHIP
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Management and Board – Proven Track Record of Success
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Ashwath Mehra, Executive Chairman
• 30 years of mining and metals
experience.
• Extensive Capital markets expertise and
network of European investors.
Steve Burleton, President and CEO
• An experienced mining executive with
significant experience in capital raising
and strategy.
• Most recently with Richmont Mines.
Charles J. Greig, VP Exploration
• 35 years of experience working in the
mining sector.
• Extensive experience relating
specifically to deposits in BC’s Golden
Triangle
Paul L. Kania, Chief Financial Officer
• An experienced financial professional
with experience working with a number
of public companies.
Taj Singh, Lead Independent Director
• 17 years of development and operating
experience in the minerals sector.
• Presently serves as President and CEO
of Discovery Metals Corp
Renaud Adams, Director
• Over 25 years as a mining executive and
operator globally
• Most recently was the CEO of Richmont Mines
and was instrumental in its acquisition by
Alamos Gold for ~$700M
Charles Tarnocai, Director
• Well respected geologist with PH.D in economic
geology
• Most recently served as the VP of Corporate
Development at Alamos Gold.
John L. Pallot, Director
• Seasoned executive with decades of experience
across a broad array of industries.
• Extensive experience raising capital for junior
mining issuers.
PROVEN TRACK RECORD
OF VALUE CREATION
EXTENSIVE TECHNICAL AND CAPITAL
MARKETS EXPERTISE
Golden Triangle – Top Ranked Jurisdiction for Mining
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• Numerous world-class deposits in
the Golden Triangle
• Rich history of mining and
exploration dating back to the
1800s
• Increased interest in area due to
significant recent investment in
infrastructure
- Roads
- Power
- Port
Excellent Location and Infrastructure
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• 100% owned, ~431km2 property located in ideal geological setting
• The Saddle zone occupies ~3.5 km2 of the total land package and has been the primary focus of exploration to date.
• Two additional highly prospective Cu-Au porphyry targets- Saddle North and Pass Gossan Target.
• Property sits approximately 14km West of Imperial Metals’ Red Chris mine, and is accessed via highway 37- power and water infrastructure exist nearby
• 100% owned
• ~431km2 property located in ideal geological setting
• The Saddle zone occupies ~3.5 km2 of the total land package
• Excellent access to infrastructure
- accessed via highway 37-
- Near power (287 kV)
• Property sits approximately 14km west of Imperial Metals’ Red Chris mine
Ideal Geologic Setting
• Favourable host rocks for mineralization
• Saddle discovery along Stuhini-Hazelton Contact
- a known structure for deposit formation in the Golden triangle
• Many world class mines and deposits located along this contact.
- KSM (38.2 Moz Au)
- Brucejack (6.9 Moz Au)
- Red Chris (12.9 Moz Au).
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New Discovery with Significant Potential
• 2009 deep discovery at Imperial Metals’ Red Chris mine initiated current exploration and staking rush
• New Chris Minerals conducted exploration work from 2012-2014 up until hiatus in 2015-2016
• New Chris RTO to form GT Gold in late 2016
• High grade Au in soil anomalies followed up with first ever drilling at the Tatogga project in 2017
- Saddle South (epithermal style)
- Saddle North (porphyry)
- Pass Gossan (Saddle analogue)
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Saddle South and North
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Saddle South
• Saddle South (west side) drilling has outlined a large zone at surface of Au-bearing sheeted quartz/sulphide and sulphide vein style mineralization - spanning approx. ~1000 X 150 X 700 metres
• Extensive surface expression of mineralization
• Open in all directions
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Saddle South- Continuity
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2017 Drilling Highlights
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HIGH-GRADE CORE DRILLING INTERVALS
• TTD002: 6.57 g/t Au over 14.78 m
• TTD007: 51.53 g/t Au over 6.95 m
• TTD010: 5.10 g/t Au over 23.66 m
• TTD014: 5.84 g/t Au over 20.71 m
• TTD019: 14.75 g/t Au over 12.15 m
• TTD022: 13.22 g/t Au over 7.00 m
• TTD031: 48.85 g/t Au over 3.36 m
• TTD038: 10.18 g/t Au over 6.87 m
• TTD040: 12.64 g/t Au over 6.60 m
• TTD045: 20.17 g/t Au over 2.31 m
• TTD046: 20.02 g/t Au over 8.25 m
• TTD056: 23.78 g/t Au over 4.02 m
• TTD058: 31.79 g/t Au & 1,141.10 g/t
Ag over 3.01 m
Inc. 117.00 g/t Au & 1,835.00 g/t Ag
over 0.70 m
• TTD059: 12.12 g/t Au over 5.83 m
Note: Widths shown are not true widths. True widths
vary greatly depending upon a combination of the
dip and azimuth of holes, and the strike and dip of
the target zone. The intercepts shown are estimated
to range from approx. 90% of drilled lengths for
minus 45-degree holes, to 70% for minus 70-degree
holes, and about 50% for minus 85-degree holes
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2018 Drilling Highlights to Date
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HIGH-GRADE CORE DRILLING INTERVALS
• TTD069: 32.65 g/t Au over 2.82 m
• TTD076: 33.40 g/t Au over 1.54 m
• TTD077: 6.70 g/t Au over 4.15m
• TTD079: 9.55 g/t Au over 40.89m
Note: Widths shown are not true widths. True widths
vary greatly depending upon a combination of the
dip and azimuth of holes, and the strike and dip of
the target zone. The intercepts shown are estimated
to range from approx. 90% of drilled lengths for
minus 45-degree holes, to 70% for minus 70-degree
holes, and about 50% for minus 85-degree holes
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1.29 g/t Au 2.33 m
(153.28-155.61m)
1.10 g/t Au 4.55 m
(214.68-219.23m)
1.07 g/t Au 76.32 m
(347.11-423.43m) past release
1.55 g/t Au 4.36 m
(35.00-39.36m)
1.40 g/t Au 9.90 m
(146.55-156.45m)
1.24 g/t Au 43.91 m
(17.19-61.10m)
1.09 g/t Au 14.59 m
(693.18-707.77m)
3.71 g/t Au 3.52 m
(288.00-291.52m)
1.82 g/t Au 12.83 m
(264.17-277.00m)
1.11 g/t Au 18.14 m
(349.00-367.14m)
9.55 g/t Au 59.51 g/t Ag
40.89 m (534.00-574.89m)
1.62 g/t Au 3.30 m
(524.78-528.08m)
1.33 g/t Au 4.77 m
(503.23-508.00m)
1.23 g/t Au 11.55 m
(383.00-394.55m)
0.54 g/t Au 56.93 m
(194.83-251.76m) past release
0.55 g/t Au 6.44 m
(283.26-289.70m)
0.33 g/t Au 5.46 m
(52.30-57.76m)
0.49 g/t Au 30.13 m
(295.00-325.13m)
0.17 g/t Au 15.27 m
(50.73-66.00m)
0.21 g/t Au 3.86 m
(126.19-130.05m)
0.60 g/t Au 5.92 m
(222.91-228.83m)
0.65 g/t Au 72.53 m
(305.13-377.66m)
0.50 g/t Au 19.83 m
(76.17-96.00m)
0.41 g/t Au 13.97 m
(107.98-121.95m)
0.69 g/t Au 48.41 m
(583.31-631.92m)
0.61 g/t Au 4.89 m
(657.00-661.89m)
0.54 g/t Au 11.25 m
(217.27-228.52m)
0.48 g/t Au 41.01 m
(276.99-318.82m)
0.68 g/t Au 10.23 m
(240.98-251.21m)
0.76 g/t Au 22.36 m
(384.46-406.82m)
0.55 g/t Au 8.90 m
(353.67-363.59m)
0.82 g/t Au
3.81 m (51.00-54.81m)
0.59 g/t Au 6.27 m
(331.43-337.70m)
Key Take-Aways
• Drilling to date has extended
near surface mineralization along
strike to over 1km
• High-grade intervals over broad
widths demonstrate depth
potential at Saddle South
• Oriented core program has given
us a better understanding of the
spatial relationships between
mineralized zones
Exploration Upside – Saddle South
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Saddle North – Large Scale & High Grade Potential
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• Large Scale target with
incredible size potential
• Cu-Au-Ag enriched
intrusion
• Could possibly be the
intrusive body driving the
entire Saddle mineralized
system
• Broad interval of Cu-Au
Porphyry style
mineralization drilled at
close of 2017 season
Saddle North – Early Indications
• Encouraging results for a potentially economic Cu-Au porphyry from early drilling
• Hole 62 – Broad extent of Cu and Au mineralization with grades increasing at depth
• Hole 64 – Monzonite hosted precious metal rich Cu-Au mineralization approx. 1km west of Hole 62- 18.4m @ 1.35 g/t
Au, 1.42 g/t Ag and 0.37% Cu.
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Saddle North – Large Scale Cu-Au System
• Hole 85- 430m of 0.67g/t Au, 0.41% Cu, 0.89 g/t Ag within 822m of 0.42g/t Au, 0.26% Cu, 0.62g/t Ag
• Coincident Mag and IP anomaly 1000m along strike and up to 1000m across
• Quartz monzonite to monzodiorite intrusion with strong phyllic and potassic alteration. Mineralized from surface with grades continually increasing with depth
• Remains open along strike in both directions and at depth
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Saddle North – Potentially Large Scale
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2018 Exploration• Fully funded C$6.8M exploration budget
• Estimated 18,000m drill program
• Expansion drilling of the high-grade gold-silver vein systems at Saddle South
• Expansion drilling of the new intrusive discovery at Saddle North (central & east end)
• Ongoing property wide geophysics, mapping and sampling program
• Plans to extend program up to an additional 5000m supported by recent financing
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Use of oriented core to better direct drilling to better target and determine the orientation of mineralized zone
Demonstrate continuity
Test Saddle North Cu-Au Target
High-Grade mineralization intersected at depth. Hole TTD069: 32.65g/t Au over 2.82m approx. 650m from surface
Demonstrate Saddle South
Depth Potential
Initial drill results from 2018 program have expanded strike length to over 1000m
Expand Saddle South along strike
Completed $6.5M non-brokered financing in Q1 2018
Fully Fund 2018 program
2018 Objectives and Progress
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Hole TTD085:
0.67g/t Au,
0.41% Cu, 0.89
g/t Ag over
430m within
822m of 0.42g/t
Au,0.26% Cu,
0.62 g/t Ag
Regional Exploration – Additional Opportunity
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• A number of opportunities exist on the large land package
• Pass Gossan target located ~6Km southwest of Saddle
• 2013 sampling identified several Cu and Au anomalies
• Potentially analogous to Saddle South and North Systems
• 2018 plan to follow up with additional sampling
Cu Geochem Anomalies Au Geochem Anomalies
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Equity Overview
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Capitalization and Balance Sheet
Share Price** $ 0.76
Basic Shares Outstanding 91.3M
Options Outstanding 8.2M
Warrants 3.9M
Basic Market Capitalization 70.00
Less: Cash* 7.35
Add: Total Debt -
Enterprise Value $ 62.65M
*as at June 30, 2018
** as at Sep 10, 2018 open
Attractive Golden Triangle Opportunity
• Top-ranked jurisdiction for mining
• Significant world class deposits and recent discoveries
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PROLIFIC MINING
JURISDICATION
• Two potentially significant discoveries with substantial exploration upside
• Strategic location near recently completed infrastructure
• Large land package with highly prospective
geology
• High-grade near surface gold system open in all
directions
• Adjacent Cu-Au porphyry-style with scale
potential
• Board and management with proven track record of success
• Strong technical skillset and capital markets expertise
NEW DISCOVERIES
SIGNIFICANT
EXPLORATION UPSIDE
STRONG LEADERSHIP
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S T E V E B U R L E TO N , P R E S I D E N T A N D C E O
36 King Street East, Suite 400
Toronto, ON
M5C 1E5
647-256-6754
Appendix
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Management and BoardAshwath Mehra, Executive Chairman
BSc. Philosophy & Economics, London School of Economics. Mr. Mehra has 30 years of experience in mining and metals, and significant experience in debt and equity capital markets. He commenced his career trading commodities with Philipp Brothers in London, England. From 1990 to 2000, he served as a Senior Partner at Glencore International AG (and its predecessor) where he ran the nickel and cobalt businesses. He also served as Co-Owner and CEO of MRI Trading AG from 2001 to 2011, and successfully sold the firm in 2011.
Steve Burleton, President and CEO
An experienced mining executive with significant experience in capital raising, corporate development and strategy. He served most recently as VP, Business Development at Richmont Mines Inc. prior to Richmont being acquired by Alamos Gold Inc. for US$770 million. At Richmont he was responsible for financing and worked closely with its executive team to determine strategic direction. He has over 18 years of experience in the Canadian investment banking industry advising and executing debt and equity financing for companies in the mining, fertilizer and industrial products sectors. Mr. Burleton is a CFA Charterholder and holds an MBA from York University.
Charles J. Greig, VP Exploration
With more than 35 years in the sector, Mr. Greig is among the most experienced geologists in B.C., having worked on projects such as Brucejack Lake (Pretivm), Red Mountain (Lac Minerals, IDM), Silbak-Premier (Westimin, Ascot), IKE (HDI-Amarc), and abroad on projects such as La India in Mexico (Grayd, AgnicoEagle) and Bisha in Eritrea (Nevsun). Mr. Greig has a B.Sc and M.Sc in geology from the UBC along with a B.Comm also from UBC
Paul L. Kania, Chief Financial Officer
Mr. Kania is a financial professional with broad experience providing CFO, Controller and financial reporting and consulting services to public and privately held businesses in various sectors in both Canada and the U.S. He has significant experience in the mining sector. In addition to his Certified Public Accountant (CPA) designation, he holds a HBA, Economics and Philosophy from the University of Toronto, and an Accounting and Finance certificate from Ryerson University
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Taj Singh, Lead Independent Director
M.Eng, P.Eng; CPA, CMA; B.Eng., University of Toronto; M.Eng., McMaster University. Mr. Singh is a Professional Engineer and a Chartered Professional Accountant. He has 17 years of experience in the minerals sector and presently serves as President and CEO of Discovery Metals Corp. Prior to joining Discovery Metals, Mr. Singh was VP of Engineering, Projects & Business Development at Timmins Gold Corp; VP and Mining Equity Research Analyst at Macquarie Capital Markets; and worked in various senior engineering roles at Inco Limited and Vale Limited.
Renaud Adams, Director
P.Eng., B.Sc. Engineering, Laval University. Mr. Adams served as President and Chief Executive Officer of Richmont until its acquisition by Alamos in November 2017, and has 25 years of experience as an executive and operator in the mining industry. Prior to his tenure with Richmont, Mr. Adams was President and Chief Operating Officer of Primero Mining Corp. from November 2011 to October 2014; Senior Vice-President, Operations Americas of IAMGOLD Corporation from February 2010 to October 2011; and, prior thereto, Vice President and General Manager of the Rosebel Gold Mine in Suriname for IAMGOLD Corporation. He also has served as a member on several Boards of mining companies.
Charles Tarnocai, Director
B.Sc., Geology, Brock University; Ph.D Geological Sciences, University of Ottawa. Dr. Tarnocai has 22 years of experience in international mining and mineral exploration and was most recently Vice President, Corporate Development for Alamos Gold Inc. During his 7 years with Alamos Gold, he was responsible for the identification, financial and technical evaluation, and acquisition of development and production-stage mining projects. Prior to that Dr. Tarnocai held the position of Chief Geologist with Oro Gold Resources Ltd. and, for the previous 13 years, the position of Research Geologist with Placer Dome Inc.
John L. Pallot, Director
Mr. Pallot studied at Simon Fraser University prior to serving with Telus Corp. for 30 years. He has more than 20 years of involvement with public companies as a director and/or in senior executive capacities with such companies as Statesman Resources, Messina Minerals, Windarra Minerals (acquired by Wesdome Gold), Westward Exploration, and Redmile Capital (now Orla Exploration). He presently serves as an independent director of Klondike Gold Corp.
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PROVEN TRACK RECORD
OF VALUE CREATION
EXTENSIVE TECHNICAL AND CAPITAL
MARKETS EXPERTISE
Value Proposition
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• Based on current market conditions, we believe the market is steeply
discounting the potential resources at Saddle South and Norht*Source: PI Financial Research, Company Information
$0.0
$20.0
$40.0
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$100.0
$120.0
$140.0
$160.0
C$M
MC
MC Average
$0.0
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$120.0
$140.0
C$/A
u E
q o
z
MC/M&I&I Au Eq oz
MC/M&I&I Au Eq oz Average
Saddle North / Red Chris- Comparison
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Saddle North
Saddle North is also proximal to same
contact and within ~15km of Red Chris
Quartz monzodioriteto monzonite intrusion
hosted in Volcanic Stuhini group.
564 Metres of 0.35% Cu, 0.544 g/t Au,
0.77 g/t Ag in Hole TTD085
Coincident IP and Mag Anomaly
approximately 1Km x 1Km x up to 900m
deep
?
Red Chris Mine (III:TSX)
Deposit occurs proximal to Stuhini-
hazelton group contact
Quartz monzodioriteto monzonite intrusion
hosted in Volcanic Stuhini group.
A combined measured and
indicated grade 0.374 % Cu, 0.385 g/t Au,
and 1.14 g/t Ag
1034.7 million tonnes.
2017 Production: 74.6Mlb Cu, 33.4Koz
Au, 133.2Koz Ag
NPV10 = C$M 772.1
Mineralization
Grade
Size
Value
Geologic Setting
Regional Setting
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Soil Geochem Anomalies
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GT GOLD– Saddle South – Styles of Mineralization
1. Semi Massive to Massive Sulphide Veins
2. “Thin Vein” Style
3. Vein Breccias
4. Carbonate-Rich Veins
Strongly Positive Initial Metallurgical Results
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• Initial, unoptimized metallurgical test results
for 28 composites spatially and
mineralogically representative of the Saddle
quartz-carbonate-sulphide mineralization
show it is amenable to standard cyanidation
processing1
• Average recoveries of 84% gold and 25%
silver, including numerous samples that
showed recoveries of over 90%, and as high
as 98%
• Optimization is expected to increase average
recoveries well into the 90s
• Future testing will include floating a sulphide
con and other approaches aimed at
maximizing recoveries with minimum cost
• Note 1. 80% passing 100 microns,
maximum 48 hour retention time – most
reports within 24 hours
Field of View ~0.25mm
Field of View ~0.65mm