The drill program will focus on the Boston Richardson (“BR System”) and East Goldbrook (“EG System”) gold systems of the Goldboro deposit, with the aim of expanding the Mineral Resource along strike and down plunge, and to infill specific portions of the deposit to upgrade Inferred Resources to the Measured and Indicated categories. The cost of the drill program is estimated at $1.2 million and will be funded by the recently announced flow-through financing.

The first diamond drill hole (BR-17-06) was designed to test the extension of the BR System, the most well-defined portion of the Goldboro deposit. The geological structure hosting the BR System was intersected between 400 to 475 vertical metres below the current resource model, extending the known structure by 75 vertical metres and by 125 metres in the plunge direction. In addition, the drill hole extended the southern limbs of the EG and BR Systems approximately 50 metres down dip from previous drill intercepts.

Four occurrences of visible gold were observed in core – three associated with the extensions of the EG system and one associated with extensions of the BR System. Assays are pending.

“We are encouraged by the preliminary observations from the drill core, which, along with historic drill results, support our hypothesis that the Goldboro deposit continues at depth. In the first hole we drilled, we hit the geologic structure that controls the mineralization in the known resource area of the deposit down plunge from the Boston Richardson system and farther down the limbs of the East Goldbrook system. We have just begun our 6,000-metre drill program and look forward to demonstrating the ability to upgade and expand the Mineral Resources at Goldboro.”

~ Dustin Angelo, President and CEO

Historic drill results from the BR System near the base of the resource model, locally returned significant values both in grade and width and support the notion that the BR System extends at depth. Highlights of these historic intersections are shown below and on the long section in Exhibit B.

  • 15.9 g/t gold over 5.9 metres (293.7 to 299.6 metres) in hole BR-87-35A.
  • 11.9 g/t gold over 5.0 metres (276.3 to 281.3 metres) in hole BR-87-43.
  • 8.2 g/t gold over 5.5 metres (360.3 to 365.8 metres) in hole BR-87-31.
  • 10.0 g/t gold over 2.7 metres (345.3 to 348.0 metres) in hole BR-87-07.

The Boston Richardson Gold System

The BR System of the Goldboro Deposit is host to 15 tightly-stacked, high-grade, gold-bearing vein zones, which are characterized by thick gold bearing quartz veins and thin vein arrays within highly altered argillite, separated from the neighboring vein zones by un-mineralized greywacke. To date, the BR System has been modelled to a depth of 350 metres and plunges moderately eastward beneath the EG system. The BR System contains a measured resource of 171,000 tonnes grading 5.39 g/t gold (29,600 ounces), an indicated resource of 1,507,000 tonnes grading 5.27 g/t gold (255,400 ounces) and an inferred resource of 1,083,000 tonnes grading 4.56 g/t gold (158,800 ounces) at a cut-off grade of 2.0 g/t Au (see press release dated March 3, 2017).

The East Goldbrook Gold System

The EG System is characterized by 7 tightly-stacked, high-grade, gold-bearing vein zones, which are characterized by thick gold bearing quartz veins and thin vein arrays within highly altered argillite, separated from the neighboring vein zones by un-mineralized greywacke. The EG System contains an indicated resource of 414,000 tonnes grading 6.91 g/t gold (92,000 ounces) and an inferred resource of 1,127,000 tonnes grading 4.11 g/t gold (148,900 ounces) at a cut-off grade of 2.0 g/t Au (see press release dated March 3, 2017).