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Next Stage Advancement For East Golden Gorge Target

THE INDUSTRY’S LEADING NEWSPAPER SINCE 1889 THE VOICE OF THE MINING INDUSTRY

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Published by: The Mining Record Company

Volume 131, Number 7

July 2020 Denver, Colorado, USA

TM

Metals Watch (07/16/20): Gold $1,795.70 • Silver $19.11 • Copper $2.90 • Lead $.82 • Zinc $.99 • Platinum $818.00 • Palladium $1,944.00 • Uranium $32.30 • Rhodium $6,000.00 • Coal: $48.00

NewsNewsIntersects at the Kay Mine Project in Arizona.........................2

Grassy Mountain tailings dam design approval.......................4

Assays on holes at project in Bullfrog Mining District...........5

Phase III expansion study on Island Gold Mine......................6

Gold Rock project resource expansion....................................7

Hecla Mining reports preliminary production results..............8

Kinsley Mountain project phase one exploration plan............8

Operations update for Aurora target......................................11

Johnson tract project exploration activities- drill program....12

Plans accelerated at Brewery Creek Mine.............................12

Positive preliminary economic assessment, Waihi District...14

Drilling and preparations for re-starting Gold Road Project.16

Horsethief Gold Property dill holes completed.....................16

RENO, NV - Nevada Ex-ploration Inc. (NGE) reportedits next-stage plans to advancethe East Golden Gorge target atits district-scale South GrassValley Carlin-type gold project.The target is defined by theintersection of a series ofregional-scale, high-angle faultsthat the Company has namedthe Water Canyon structuralcorridor and a Cambrian-agedlimey mudstone (the “ClmUnit”), which together theCompany believes represent thedominant primary and sec-ondary controls for the hydro-thermal fluids responsible forthe mineralization seen in itsdrilling to date. To advance EastGolden Gorge, NGE has de-signed a 12,500 metre, 10-holecore drilling program to test forpotentially-economic mineral-ization along a 3,500-metrelength of the target.

President, James Buskard,said, “When we review theresults of our two drilling pro-grams as a whole, what we’reseeing at South Grass Valley isa typical Carlin-type geologicsetting with characteristic alter-ation and anomalous geochem-istry across several cubic kilo-metres of bedrock, which re-mains open.  By integrating theresults of our drilling and map-ping with the data from our geo-physical surveys we believe wehave established the primarysource for the mineralizedhydrothermal fluids responsiblefor these Carlin-type features,namely the Water Canyon struc-tural corridor. Based on theintensity and zonation of thealteration, gold, and pathfinder

concentrations there is strongevidence that the secondary, lat-eral movement of the fluidsthrough the district was strati-graphically-controlled withinthe Clm Unit. With a handle onwhat we think are both the pri-mary and secondary controls forthe mineralized hydrothermalfluid flow through the district,our focus has narrowed towhere the Clm Unit dips closerto the Water Canyon structuralcorridor, representing the geo-logically-constrained target

called East Golden Gorge.  Totest East Golden Gorge forCarlin-type mineralizationwe’re proposing a program ofcarefully-targeted core holes tosample the full thickness of theClm Unit along a three-and-a-half-kilometre length of the tar-get. As we plan this ambitiousdrilling program, we want tohighlight what differentiates thetarget from other early-stageprojects in Nevada.  

Most significantly, comparedto the size of the mineral sys-

tems hosting some of Nevada’slargest deposits at the north endof the valley, we believe thesize of the target and scale of itsassociated alteration featuressupport the potential to discoveran entire new district.  Our next-stage program is designed totest for both a flat-lying geome-try associated with stratigraph-ic-hosted mineralization withinthe Clm Unit, as well as more-vertical-hosted mineralizationassociated with the breccia fea-tures we’re seeing and the mar-gins of the Grass Valley Stock.To ensure the spacing of ourproposed holes is suitable to testfor this more-vertical type ori-entation, we’ve placed them anaverage of 600 metres apartalong the length of the target.

As we continue to advanceand de-risk this district-scaletarget, we believe strongly thatin today’s covered search spacesgeology is what is drives dis-coveries.  From the beginning,we’ve taken a systematicapproach to building the geolog-ic framework we’re now usingto target mineralization basedon the latest research on the fea-tures and processes responsiblefor Nevada’s largest Carlin-typegold districts, as well as by inte-grating new exploration tools.This is the exact geology-drivenprocess being used by theworld’s largest mining compa-nies, and we believe based onour results to date, that we have

the opportunity here at SouthGrass Valley to make a signifi-cant discovery, at a completelycovered and otherwise blindproject, that we discovered as aresult of our industry-leadinggroundwater chemistry explo-ration program.”

To advance East Golden Gorge, NGE has designed a 12,500 metre, 10-hole core drilling program to test for potentially-economicmineralization along a 3,500-metre length of the target.

NGM Exceeds FirstYear ExpectationsTORONTO - “Nevada Gold

Mines (NGM), has posted anexceptional performance in itsfirst 12 months of operation,delivering real value to all itsstakeholders,” said, Mark Brist-ow, President and Chief Exe-cutive of Barrick Gold. In itsfirst year of combined operation,NGM not only met the produc-tion and cost targets set out atthe start of the joint venture, butdid so despite the past fewmonths of stress experienced asa result of the Covid-19 pan-demic.

Bristow said, “This was asignificant achievement, consid-ering that the merger had re-quired the integration of multi-ple assets, in-cluding threemines into a unified complex. Atthe same time, the company hasbeen working with the State ofNevada and its stakeholders toprovide financial and logisticalsupport to mitigate the impact ofthe pandemic on its employees,local communities and theState.”

2 THE MINING RECORD JULY 2020

Intersects At The Kay Mine VMS Project In ArizonaTORONTO - Arizona Metals

Corp. reported that drilling atthe South Zone of its Kay MineProject, located near BlackCanyon City, Arizona, hasintersected massive sulphidemineralization in an area previ-ously untested by historic ex-

ploration. Hole KM-20-10 inter-sected an interval of 4.9 m at agrade of 6.2% CuEq, including3.0 m at a grade of 7.8% CuEq,from a vertical depth of 480 m.

Further downhole, from avertical depth of 491 m, KM-20-10 also intersected an inter-

val of 0.6 m at a grade of 9.6 g/tAuEq, and 1.6 m of 3.1% CuEqfrom a depth of 494m.

Marc Pais, CEO, said, “Theresumption of our Phase 1 drillprogram at the Kay Mine pro-ject has continued to confirmthe historic results reported byprevious operators. We havealso encountered new mineral-ization outside of the historicworkings. To date, we have hitmassive sulphide mineralizationin 9 out of the first 10 holesreported. Holes 11, 12, andbranch hole 10A are currently atthe lab for assay. Branch hole10B is currently underway(about 30 m north of the hole),as is hole 13. We expect asteady flow of drill results fromthe Kay Mine Project over thenext few weeks and months. Weare also anticipating drilling tostart on July 6th, 2020 at ourSugarloaf Peak Project, whichhas a historic estimate of 1.5million ounces of gold1”.

Hole KM-20-10 is beingused as a trunk hole in order towedge a number of branch holesaimed at the 1500-foot leveldescribed by Exxon, locatedapproximately 50 m above theinterval announced today.Branch hole KM-20-10A, inthis location, has been complet-ed and samples submitted toALS Laboratories in Tucson.

Branch hole KM-20-10B is cur-rently in progress.

Hole KM-20-11 was drilledto target the 1500-foot level ofthe North Zone at a target depthof 550 m. Samples of this holehave been submitted to ALS

Laboratories for assay. HoleKM-20-12 was drilled to targetthe 1200-foot level of the NorthZone at a target depth of 300 m.Samples of this hole have beensubmitted to ALS Laboratoriesfor assay.

Drill Program IncreasedAt McKenzie Gold Project

VANCOUVER - Nexus GoldCorp. has added an additional1000 meters to its phase one dia-mond drill program currentlyunderway at the Company’s100% owned McKenzie GoldProject, located in Red Lake,Ontario. Previously announced,the Company commenced aphase one 1000-meter diamonddrill program at the McKenzieproject.  Phase one drilling willnow be increased, doubling insize for a total of 2000 meters.The added meterage will focuson drill targets previously identi-fied in the southernmost sectionof the property.

“With the first few holescomplete, we’ve decided its inour best interests to execute alarger drill program,” said presi-dent and CEO, Alex Klenman.The environment is right for amore aggressive allocation ofassets, so we’re doubling the ini-

tial commitment. It’s obvious agood drill hole can have a signifi-cant impact. Increasing the phaseone meterage gives us the oppor-tunity to cover more ground andtest more targets.  We think it’sthe right time to do that.” 

The current drill program atMcKenzie is intended to expandon 2005 drilling and to followup on anomalous rock samplesthat were collected as part of theCompany’s fall 2019 prospect-ing program completed in the St.Paul’s Bay area of the property.The prospecting program tracedthe mineralized contact corridorto the property’s eastern bound-ary and helped further determinedrill targets on the property’ssouthern end. The focus of theprospecting was concentrated inand around Perch Lake, in theSaint Paul’s Bay area, located inthe southernmost section of theproperty.

THE MINING RECORD 3JULY 2020

MIKE@SUNSETMFG.COM

4 THE MINING RECORD JULY 2020

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Grassy Mountain Tailings Dam Design Receives Key Approval WINNEMUCCA, NV - Para-

mount Gold Nevada Corp.reported that the Oregon WaterResource Department (OWRD)has reviewed and approved theplans and specifications for thetailings dam proposed for theGrassy Mountain mine and stat-ed that from a safety perspec-tive, the plans are construction-ready.

The OWRD reviewed datawithin the Consolidated PermitApplication which Paramountsubmitted in November, andwhich included all tailingsdesign drawings, safety analy-sis, field data collected and lab-oratory testing. The OWRD isrequired to review and evaluatethe data and design, classify thehazard level (high, significant,or low hazard rating) and evalu-ate readiness for constructionfrom a dam safety perspective.

Considering the project’sremote location, low populationdensity, arid nature with no riversor permanent streams in closeproximity, seismic analysis andall other data compiled, OWRDhas rated the dam as low hazard.The approval for construction isvalid for 5 years with extensions.

President and COO, Glen VanTreek said, “This is an importantachievement which shows confi-dence by the OWRD in the quali-ty of the work completed by con-sultants on the Tailings StorageFacility design.”

Paramount continues to workwith the Oregon Department ofGeology and Mineral Industries(“DOGAMI”) and all of the coor-dinating and permitting Stateagencies to advance the Consoli-dated Permit Application processfor the proposed Grassy Moun-tain Gold Mine.

THE MINING RECORD 5JULY 2020

Assays On Remaining Holes At Project In Bullfrog Mining District GRAND JUNCTION, CO -

Bullfrog Gold Corp. reported thatassay results have been receivedfrom the six remaining holes ofthe 25 total holes recently drilledat its Bullfrog Project. TheProject comprises 2,125 hectares(5,250 acres) of strategic lands,established resources and pro-spective exploration potential inthe Bullfrog Mining Districtlocated 4 miles west of Beatty,Nevada. The Bullfrog and sur-rounding area are in one of themost prolific gold explorationregions in North America.

The remaining hole of the 17holes drilled in the Mystery Hill(MH) area intercepted 35 meters(115 feet) of 0.44 g gold/t start-ing at the surface and included 15m of 0.64 g/t staring at 2m.  Most of this intercept was notwithin previous estimates ofmeasured and indicated (M&I)resources. The last 3 of 6 holesdrilled in the Montgomery-Shoshone (MS) area were col-lared near the west rim of the pitand angled to test for down dipmineralization that could not bedrilled in the MS pit. BM-20-21intercepted 61 meters at 0.78 ggold/t and 7.25 g silver/t from 99

meters to 160 meters, including20 meters at 1.84 g gold/t and18.3 g silver/t starting at 134meters. BM-20-22 intercepted 6meters at 0.33 g gold/t and 5.2 gsilver/t starting at the surface and24 meters at 0.54 g gold/t and2.08 g silver /t starting at 93meters. These intercepts were inareas that were not included inM&I resource. The initial twoholes drilled in the far south ofthe Paradise Ridge explorationtarget did not discover any signif-icant mineralization. Notwith-standing, this target is approxi-mately 2,000 meters long and400 meters wide and these twoholes tested a representative areaof  approximately 30,000 squaremeters, or less than 4% of theprospective target area. 

Dave Beling, CEO, said, “Thedrill assay results achieved ourobjectives to further de-fine   resources and ultimate lim-its of proposed expansions to theBullfrog and MS pits.

The program also fulfilled afinal work commitment for theCompany to purchase a 100%interest in lands under lease fromBarrick by mid-September 2020.The first two holes in theParadise Ridge target did notintercept any significant mineral-ization, but this large undrilledarea continues to be highlyprospective and needs severalmore drill holes to fully exploreand assess its potential thatextends nearly 2,000 meters tothe northwest.”  

BM-20-20 was located todetermine if the mineralizationthat was identified in several oldholes continued along strike tothe northeast and southwest andparticularly up dip. The 12-meterintercept of 0.30 g/t is approxi-mately 70 meters below the exist-ing pit and may not add anyresources within an optimized pitplan but was needed to defineultimate pit limits in that area.

BM-20-21 intersected 61meters at 0.78 g gold/t and 7.25 gsilver/t approximately 40 metersbelow the northern pit wall. Thenew intercept confirms continuityof mineral along strike as well asup and down dip, particularly incombination with the new drillassay data in holes BM-20-1, 2,20 and 22 and a few intercepts inold, wide-spaced holes. The newintercept is in an area that previ-ously was not in M&I resourceestimates.

BM-20-22 intercepted 24meters of 0.54 g/t starting at 45meters below a 50-meter widebench in the northeast end of theMS pit.  Much of the strippingover the northeast extension ofthis intercept was completed byprevious operators.  

Laybacks of the pit wallstoward the north and south willlimit how far the MS pit can bedeepened, but there now isenough information to optimize apit plan and its ultimate depth.The new intercept is in an areathat previously was not in M&Iresource estimates.

The two holes drilled in thefar south of the Paradise Ridgetarget did not intercept any sig-nificant mineralization. Notwith-standing, this target is approxi-mately 2,000 meters long and400 meters wide and these twoholes tested a representative areaof approximately 30,000 squaremeters, or less than 4% of thetotal prospective target area.

6 THE MINING RECORD JULY 2020

www.rmcmi.org

Phase III Expansion Study Conducted On Island GoldLong-hole open stoping will

continue to be utilized as the pri-mary mining method; however,increased development and keyinfrastructure changes includingthe addition of a paste plant andshaft will allow for mining ratesto increase to 2,000 tpd.

A 5.0 metre diameter con-crete lined shaft will be con-structed with a steel head frame.The shaft will house two 12tonne skips in dedicated com-partments for ore and wastemovement, and a double-deckservice cage for the transport ofpersonnel and materials. Theshaft will be sunk to an initialdepth of 1,373 metres. Thehoisting plant is designed for anultimate depth of 2,000 metresproviding flexibility to accom-modate future exploration suc-cess. At the initial depth of1,373 metres, the shaft has acapacity of 4,500 tpd, more thansufficient to accommodate thepeak mining rates of 3,300 tpd(ore & waste).

A conventional blind sinkmethodology will be utilizedproviding improved schedulereliability with minimal impacton existing operations. A com-bined raise-bore from the 840metre level, and blind sinkoption below the 840 metre levelwas evaluated; however, thisoption would significantlyimpact existing operations. Thecuttings from the raise bore inthe upper mine, and waste gen-erated from the conventionalsink in the lower mine woulddisplace underground through-put capacity and significantlyreduce mining rates below 1,200

tpd by as much as 400 tpd overthe next several years.

The underground ore andwaste handling and loadingpocket will be a conventionalconfiguration similar to that ofYoung-Davidson. Once skippedto surface, ore will be trucked tothe expanded mill circuit.

Ventilation requirementsunder the Shaft Expansion arelower than under the ramp sce-narios given the significantlysmaller mobile fleet allowingthe shaft to serve as the onlynew required fresh air source.The total construction capital forthe shaft installation includingall supporting infrastructure is$232 million.

With the exception of thecurrent base case operation, theaddition of a paste plant wasincluded in all scenarios for anumber of reasons, principallythe high project returns with anafter-tax IRR of 32%. The addi-tion of paste fill undergroundwill allow for faster stopecycling, thereby supportinghigher mining rates and provid-ing increased geotechnical sta-bility. It will also increase min-ing recovery resulting in anadditional 100,000 ounces ofgold recovered over the life ofmine, an in-situ value of $145million at a gold price of $1,450per ounce. Further, 56% of tail-ings will be placed undergroundreducing tailings dam raiserequirements, a capital savingsof $13 million.

The paste plant will have acapacity of 2,000 tpd and capitalcost of $34 million4 with theplant expected to be completed

TORONTO - Alamos GoldInc. reported results of the posi-tive Phase III Expansion Studyconducted on its Island Goldmine, located in Ontario. Basedon the results of the study, theCompany is proceeding with anexpansion of the operation to2,000 tonnes per day (tpd)(Shaft Expansion). This followsa detailed evaluation of severalscenarios which demonstratedthe Shaft Expansion as the bestoption, having the strongest eco-nomics, being the most efficientand productive scenario, and thebest positioned to capitalize onfurther growth in Mineral Re-serves and Resources.

“Island Gold has been a tre-

mendous acquisition for AlamosGold. We acquired Island Goldin 2017 at a cost of approxi-mately $600 million when it had1.8 million ounces of MineralReserves and Resources. Thishigh-grade deposit has morethan doubled to 3.7 millionounces and we expect furthergrowth yet. The Phase IIIExpansion Study showcases thegrowing value of Island Gold.Already one of the most prof-itable mines in Canada, theexpansion will increase produc-tion, lower costs, and make thisoperation even more profitable.The expansion will also bestposition the operation to benefitfrom additional exploration suc-

cess,” said John A. McCluskey,President and Chief ExecutiveOfficer.   

The Phase III Expansion ofIsland Gold to 2,000 tpd from acurrent rate of approximately1,200 tpd will involve variousinfrastructure investments.These include the installation ofa shaft, paste plant, and anexpansion of the mill and tail-ings facility. Following the com-pletion of the shaft constructionin 2025, the operation will tran-sition from trucking ore andwaste to skipping ore and wasteto surface through the new shaftinfrastructure, driving produc-tion higher and costs significant-ly lower.

THE MINING RECORD 7JULY 2020

Mine Results In Proceeding With Expansion Of Projectin the fourth quarter of 2023.

Mining rates are expected toramp up to 2,000 tpd followingthe completion of the shaft in2025. This will be supported bya significantly smaller mobilefleet than required under theramp scenarios. Post completionof the shaft, a total of five haultrucks will be required to sup-port a mining rate of 2,000 tpd.This compares to a peak of 18haul trucks required to sustainramp haulage at 1,200 tpd and25 haul trucks for ramp haulageat 1,600 tpd. This contributes tothe lower ventilation require-ments with the Shaft Expansion,and significantly lower diesel

usage and green house gas emis-sions.

The expanded mill will be aconventional milling operationwith a nominal capacity of 2,000tpd, up from approximately1,200 tpd currently. The expan-sion will include upgrading thecrushing circuit, adding a secondparallel ball mill, and a new elu-tion and carbon in pulp (“CIP”)circuit with carbon screens. Thetotal cost of the mill expansionis $40 million.

To accommodate the in-creased electricity requirementswith the larger mill and shaft,the power line to site will beupgraded at a cost of $14 mil-

lion. The same power lineupgrade is required under allscenarios including maintainingthe existing operating rates of1,200 tpd. This reflects in-creased ventilation requirementswith the ramp scenarios as min-ing progresses deeper.

An expansion of the existingtailings impoundment area isunderway and required under allscenarios to accommodate thegrowth in the deposit over thelast several years. With two

planned future raises beyond2020 and the addition of thepaste plant, the tailings facilityhas sufficient capacity to accom-modate existing MineralReserves and Resources.

The Shaft Expansion, as cur-rently configured is not expectedto require a lengthy environmen-tal assessment process and themajority of the permitting re-quirements fall within theprovincial government jurisdic-tion. These include amendments

to existing authorizations andnew authorizations for construc-tion activities. All of the ShaftExpansion permitting require-ments are expected to be com-pleted within an 18 to 24 monthtimeframe.

This is a well known juris-diction within which Alamoshas successfully operated foryears, achieving various permit-ting milestones at both of itsYoung-Davidson and IslandGold mines.

Feasibility Study Drilling BeginsVANCOUVER, BC - Fiore

Gold Ltd. reported the start of aprogram of resource expansion,metallurgical, geotechnical andcondemnation drilling in supportof a Feasibility Study (FS) target-ed for completion in the secondhalf of 2021. The drilling pro-gram will consist of a mix of HQand PQ diamond core holes, aswell as reverse circulation (RC)and sonic holes. Total footage forthis phase of the drilling programwill be approximately 198,000 ft(60,000 m), with approximately115,000 ft (35,000 m) focused onresource expansion to add Meas-ured and Indicated resources forinclusion in the FS.

The federally permitted GoldRock gold project is located in

White Pine County, Nevada. TheGold Rock Preliminary Econo-mic Assessment (PEA) providesan updated mineral resource esti-mate and a base case assessmentof developing the Project as asatellite open pit operation that.

The PEA also identifies a con-siderable number of opportunitiesto enhance the project economicsas Gold Rock advances to theFeasibility stage by drilling toincrease the mineral resource, fur-ther metallurgical testing aimed atoptimizing recoveries, and geo-technical drilling aimed at reduc-ing the stripping ratio. The PEAwas prepared in accordance withCanadian Securities Administr-ators' National Instrument 43-101Standards Of Disclosure.

8 THE MINING RECORD JULY 2020

Hecla Mining Reports Preliminary Production ResultsCOEUR D'ALENE, ID -

Hecla Mining Company report-ed preliminary productionresults and its cash position atthe end of the second quarter aswell as a new investment byInvestissement Quebec. All fivemines in operation (Casa Berar-di and San Sebastian were sub-jected to government-mandatedshutdowns of 3 and 4 weeks,respectively in the quarter).Silver production of 3.4 millionounces, and gold production of59,982 ounces - Silver equiva-lent production of 12.5 millionounces or gold equivalent pro-duction of 119,037 ounces.There was reduced borrowingunder revolving credit facilityfrom $200 million to $50 mil-lion, and cash position of ap-proximately $76 million.

In the third quarter, to enableopen market purchasing of someexisting 7.25% coupon bondsand fund Casa Berardi’s capitalexpenditures, Hecla is issuingUS$36.8 million of senior unse-cured notes to InvestissementQuebec with a five-year maturi-ty yielding 5.74%.

Phillips S. Baker, Jr., Presi-dent and CEO, said, “Our quickactions at the beginning of thepandemic minimized impact onour operations and finances, soproduction and cash flow gener-ation were strong this quarter.Because U.S. mines are essen-tial businesses and the other twomines returned to production inthe quarter, we increased pro-duction and internally generatedcash flow. This performance hasallowed us to substantiallyreduce our revolving line ofcredit which we expect to befully repaid by year end. Heclaproduces one third of all the sil-ver in the U.S., giving investorsunique exposure to what webelieve will be higher silver

prices in the future. The an-nouncement of the investmentby Investissement Quebec isanother example of why Quebecis one of the leading miningjurisdictions in the world. Weare happy to have the provinceinvesting in five-year notes tofund Casa Berardi capitalexpenditures and replace exist-ing bonds.”

Greens Creek exceededexpectations in the first half ofthe year due to higher grades.Lucky Friday is expected toincrease production in the sec-ond half under the plannedramp-up to full throughput. SanSebastian production is asexpected and should cease in thethird quarter. Nevada hasexceeded expectations due tohigher grades but has limitednon-refractory ore in the thirdquarter. Currently there is noestimate for the bulk sampleproduction of refractory ore.Casa Berardi is expected to havehigher production later in 2020due to more high-grade under-ground production from the EastMine. Production outlook isunchanged at this time.

At the Greens Creek mine,2.7 million ounces of silver and13,104 ounces of gold were pro-duced. Higher silver productioncompared to the second quarterof 2019, was due to higher oregrades as a result of minesequencing. The mill operated atan average of 2,366 tons per day(tpd).

Operations at Greens Creekcontinue strongly, with the minequickly implementing a 14�dayquarantine for all visitors toAdmiralty Island, where themine is located. This has helpedprotect the workforce from thepotential spread of the COVID-19 virus, and with the additionof strict testing protocols the

mine has now reduced the quar-antine period to 7 days. This isexpected to reduce the costassociated with protecting theworkforce as well as reducingworkforce stress.

At the Casa Berardi mine,30,756 ounces of gold were pro-duced, including 5,681 ouncesfrom the East Mine CrownPillar pit. The mine restartedoperations on April 15 after theGovernment-mandated shut-down of operations due toCOVID-19. The decrease ingold ounces compared to thesecond quarter of 2019 wasexpected due to the shutdown.The project to optimize the milloperations is making progresson many fronts and results areexpected over the coming sever-al quarters. The mill operated atan average of 3,595 tpd.

At the San Sebastian mine,0.2 million ounces of silver and1,331 ounces of gold were pro-duced. The mill restarted onMay 29 and the mine on June 6after a Government-mandatedshutdown of operations due toCOVID-19. Silver and gold pro-duction were lower compared tothe second quarter of 2019 dueto lower ore grades, as well asthe shutdown. Mining of oxidematerial is expected to be com-pleted in the third quarter andmilling in the fourth quarter of2020. The Company continuesto assess the viability of miningthe sulfide Hugh Zone. The milloperated at an average of 528tpd.

At the Nevada operations,14,791 ounces of gold and15,988 ounces of silver wereproduced. Mining of non-refrac-tory ore is expected to be com-pleted in the third quarter.Mining of refractory ore for thebulk sample test is expected tocontinue through the remainder

of 2020. Ore was processed atan average of 117 tpd.

At the Lucky Friday mine,469,537 ounces of silver wereproduced in the quarter. Themine has continued normaloperations during the pandemic,

with the ramp-up proceeding asplanned. The #2 shaft hoistupgrade project is proceedingon schedule. The mine isexpected to reach its full ton-nage throughput rate by the endof the year.

Kinsley Mountain Project PhaseOne Exploration Plan Initiated

VANCOUVER, BC - NewPlacer Dome Gold Corp. an-nounced initial plans for itshighly anticipated 2020 KinsleyMountain Project reverse circu-lation (RC) discovery drill pro-gram. The geological crew anddrill rig crews are mobilizingtowards the Project in prepara-tion for a 10,000 metre drillingprogram.

The Kinsley drill program isfocused on new high-grade dis-coveries and expansion of exist-ing mineralized zones. TheKinsley Mountain Gold Projectis located in the mining area ofElko, Nevada. 

Kinsley Mountain is a Carlin-style gold project hosting418,000 indicated ounces ofgold grading 2.63 g/t Au (4.95million tonnes), and 117,000inferred ounces of gold averag-ing 1.51 g/t Au (2.44 milliontonnes).

The Company believes thereis significant upside potentialfor new high-grade gold discov-eries and expanding the foot-print of known mineralizationand contained resources atKinsley.

New Placer Dome has plan-ned an initial 10,000 metrehigh-priority Reverse Circula-tion (RC) drill program, andselect diamond core drilling fol-lowing new discoveries to con-firm stratigraphy and continueto advance the geological

model. Up to 10,000 metres ofadditional drilling based oninterpretation of the initialresults from the high prioritytargets is also planned.

Drilling will focus on testingCarlin-style high-grade goldmineralization at depth hostedwithin the Secret Canyon shaleformations at the high-gradeWestern Flank zone where goldmineralization remains open anduntested along strike and atdepth.

The program will expandand step-out on previous targetsvalidated by Liberty Gold'stechnical team.

Maximilian Sali, CEO andFounder said, "The focus of thisexploration program is newhigh-grade gold discoveries.With only 20% of the propertypreviously drilled, the SecretCanyon shale has more potentialfor high-grade gold-hosting for-mations on the property. Weintend to make those new dis-coveries this summer by aggres-sively drilling multiple targets atthe same time with multiplerigs."

Drilling at the Western Flankzone will be followed closely byexpanded drill testing of theRacetrack, Transverse, BigBend, and KN targets wherestructural intersections with theSecret Canyon shale host hori-zon near NW-striking structuralzones are the primary targets.

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THE MINING RECORD 11JULY 2020

Operations Update For Aurora Target Drilling/Geophysical SurveysVANCOUVER - Millrock

Resources Inc. reported on anupdate on drilling and otherexploration at its 64NorthGold project. Explorationwork is being funded and man-aged by Resolution Mineralsin a collaborative arrangementwith Millrock as the projectoperator. The 64North GoldProject is a very large tract ofclaims in Alaska’s emergingGoodpaster Gold District.Drilling has been ongoingsince early June and continuesat present. The drilling pro-gram is focused on the AuroraTarget.

The target being drilled atAurora is adjacent and imme-diately west of the Pogo Mineproperty, which is owned andoperated by Northern StarResources Ltd. Northern Starhas previously reported a goldresource of 5.95 millionounces of gold in a series ofveins grading 9.6 grams pertonne gold. More than fourmillion ounces of gold hasalready been mined at Pogo,and Northern Star has recentlyannounced a new gold discov-ery called the Goodpasterdeposit a short distance awayfrom the mutual claim bound-ary. Millrock cautions thatmineralization on the nearbyNorthern Star property is notnecessarily indicative of gold

mineralization hosted on theCompany’s property.Presently, hole 20AU004 istesting a CSAMT conductivezone on-trend and below theHalf-Ounce Gulch prospect(“HOG”). High-grade goldgrab samples have beenreported from prior workers atthis site, and two historic drillholes intersected high-angleveins beneath the prospect.The earlier workers did nothave the benefit of theCSAMT data and those earlierholes (MR12-01 and MR12-02) were not drilled deepenough to intersect the shal-low-dipping conductive zonethat Millrock postulates to rep-resent low-angle fault struc-tures with quartz veining, sul-fides, and gold mineralization.The hole is presently at 900meters depth below surface.

The Aurora target is a two-kilometer by five-kilometerzone of low-magnetic rocksadjacent to a late diorite intru-sion. The setting is very simi-lar to that observed at the near-by Pogo Mine. Millrock postu-lates that the late diorite bodyintruded along a westerlyextension of the Liese Creekfault, which is known to haveplayed a key role in the gene-sis of the Pogo gold deposits.Highly anomalous gold-bis-muth-arsenic in soil is docu-

mented. High-angle gold-bear-ing quartz veins have beenintersected by prior drilling.However, the few holes drilledby earlier workers did not godeep enough to intersect thelow-angle, regional shear zonethat is known to host gold atPogo and the GoodpasterDeposit. Millrock believes thisstructure exists at the Auroratarget.

Numerous zones of maficrocks, fault zones, and quartzveins intercepted in drill hole20AU001 fit with the explo-ration model. The low-angle,regional shear preferentiallyruptured the mafic lithologicallayers. The Aurora Target islocated in this regional shearand the current drill hole pro-gram will test the shear forgold mineralization in a vari-ety of places. The regionalshear at Aurora was detectedby CSAMT and ELF ground-based geophysical surveys in2019. The ZTEM airborne sur-vey that was completed onJuly 8 and 9, 2020, has beenexecuted in the same area,along with detailed airbornemagnetic surveys. If the air-borne methods are able todetect the regional shear effec-tively, the method may beapplied elsewhere on the pro-ject in a very cost-effectivemanner.

Millrock has developed acomprehensive COVID-19safety plan with clear proto-cols that will help keep theoperating team safe. The plan

has been submitted to the rele-vant agencies and approved bythe State of Alaska. So far, theexploration team has remainedin good health.

12 THE MINING RECORD JULY 2020

Johnson Tract Project ExplorationActivities And Drill Program Commence

VANCOUVER - HighGoldMining Inc. reported the start-upof the 2020 drill program andexploration activities at its flag-ship Johnson Tract Gold Projectin Alaska. Phase I of theProgram plans for 7,000 to10,000 meters of diamond drill-ing utilizing two drill rigs onfive (5) target areas surroundingthe Johnson Tract deposit (JTDeposit) that hosts an indicatedresource of 750k ounces goldequivalent (AuEq) at 10.93 g/tAuEq. Based on the results ofPhase I, additional drilling maybe undertaken in a second phaseduring the latter half of 2020field season.

"We are excited to launch onthe first serious exploration drillprogram in 25 years at Johnson,"commented President and CEODarwin Green. "HighGold'swork in 2019 generated numer-ous quality drill targets withinan 800-meter radius of the high-

grade JT Deposit mineralresource, several of which willbe drilled for the first time thisyear. Focus is on expanding themineral resource base and dis-covering new zones of mineral-ization, with early emphasisgiven to the Northeast Offsettarget where limited drilling byprevious operators identifiedwhat is believed to be the fault-displaced continuation of thedeposit. Crews are on-site,COVID-19 mitigation plans arein place, and drills are in posi-tion and ready to commence cor-ing."

In addition to drilling in andaround the JT Deposit, High-Gold's technical teams will carryout geological mapping, geo-chemical sampling and geophys-ical surveys. The large, 8,500-hectare Johnson Tract propertyincludes a series of underexplored regional prospects thatcollectively define a 12-km long

mineral trend. The intent of thesurface work is to advanceregional prospects to the drill-ready stage. Limited reconnais-sance work in 2019 at theDifficult Creek prospect includ-ed the discovery of a new veinsystem and chip-channel sam-ples yielding up to 22.1 g/t Au,1.1% Cu, and 20% Pb over1.5m.

Plans Accelerated AtBrewery Creek Mine

VANCOUVER, BC - GoldenPredator Mining Corp. reportedthat due to the positive progressrealized during the Phase 1 workto restart the Brewery CreekMine from reprocessing of exist-ing heap leach material, theCompany has decided to accel-erate work on the Phase 2 plan.The Phase 2 study will evaluateresumption of the mining of newmaterial from oxide resourcescontained in the Company’sMineral Resource Estimate. Thecurrent Mineral Resource Esti-mate from late 2019 is beingupdated by Gustavson & Asso-ciates and is well advanced withcompletion expected within thenext 30 days.

Phase 2 work will begin withFeasibility level mine planningincorporating new data from theforthcoming updated resourceestimate.  The results of thesestudies will integrate Phase 1reprocessing of existing heapleach material and Phase 2 min-ing of new oxide material fromlicensed areas into a single com-prehensive Feasibility Study forthe Company’s 100%-ownedBrewery Creek gold project inCanada’s Yukon.  This defini-tive comprehensive FeasibilityStudy is expected by year end.

The Phase 1 Restart Study,by Kappes Cassiday & Asso-ciates, now 90% complete, eval-uates the economic viability ofreprocessing the approximately10 million tonnes of run of minematerial left by the previousoperator on the project’s heapleach pad with an originally cal-culated mined grade of 1.5 g/tgold.

Gold recovery from the runof mine ore by Viceroy was notas anticipated (less than 58%according to production records)and the work to date by Kappesconfirms the prospects of furthergold recoveries from this materi-al after crushing and restacking.

“As Phase 1 restart work hasprogressed, it has become evi-dent that Phase 1 and 2 shouldproceed together to take advan-tage of emerging synergies andhigher gold prices to generateenhanced cash flow.  Since mostof the project’s CAPEX isrequired for startup in Phase 1,combining the added potential ofhigher-grade new materialshould produce significantlymore ounces and a better eco-nomic return. Both reprocessingand newly mined material willuse the same crushing circuit,heap leach pad, ADR plant,power supply equipment, assaylab, machine shop, warehouse,office, camp facilities and otherassets.” said Janet Lee-Sheriff,CEO. “Key to this evolved strat-egy is the Phase 1 assessmentthat the original heap leach padis in excellent condition forearly reuse.”

14 THE MINING RECORD JULY 2020

Positive Preliminary EconomicAssessment For Waihi District AUSTRALIA - OceanaGold

Corporation reported results theWaihi District Study Preli-minary Economic Assessment(PEA) for the Waihi Districtlocated in New Zealand. ThePEA is being disclosed in accor-dance with National Instrument43-101 Standards of Disclosurefor Mineral Projects (NI 43-101). An NI 43-101 TechnicalReport of the PEA will befinalised and filed on SEDARwithin the next 45 days. Readersare cautioned that the PEA ispreliminary in nature. It includesInferred Mineral Resources thatare considered too speculativegeologically to have the eco-nomic considerations applied tothem that would enable them tobe categorized as Mineral Re-serves, and there is no certaintythat the PEA will be realised.Mineral Resources that are notMineral Reserves do not havedemonstrated economic viability.

Michael Holmes, Presidentand CEO said, "We are verypleased to share the positiveresults of the Waihi DistrictStudy that represents the initialvalue creating potential of thedistrict opportunities. The PEAindicates the potential for arobust project with an extendedmine life for Waihi to 2036 fromMartha Underground, Whare-kirauponga Underground (WKP),Gladstone open pit and a cut-back of the existing Martha openpit."

"Using our base case as-sumptions, the significant explo-ration potential recognised at

Martha Underground and WKP,combined with the existinginfrastructure and skilled work-force, the results of the studygive us confidence to move for-ward in the Waihi Districtopportunities and as a result, wewill continue advancing eachforward. Additionally, we seepotential for further significantgrowth through resource addi-tions particularly at MarthaUnderground and WKP de-posits. Resource expansion hasthe potential for sustained highlevels of annual gold productionand mine life extension.

Leveraging exploration po-tential through aggressive drillcampaigns has been the key toour success since acquiring theWaihi asset in late 2015. Thisyear, we have over 25,000metres of exploration drillingplanned and underway at MarthaUnderground where our focus ison resource conversion. AtWKP, we have an additional5,000 metres of drilling under-way as we continue to drill thehigh-grade East Graben vein andrelated foot-wall and hangingwall structures. We expect toupdate the WKP resource mid-2021." 

The critical path for successis expected to be resource con-senting of WKP and surface pro-jects including the Martha OpenPit Phase 5 and additional tail-ings storage capacity. TheCompany has successfully per-mitted projects in New Zealandover the past 30 years. Throughour understanding of the regula-

tory regime, strong reputation asa responsible miner, demonstra-tion of 30 years of responsiblemining and rehabilitation andsupport from local communities,we are confident to advancethese projects through the per-mitting phase.

"The results of the WaihiDistrict Study also show signifi-cant socio-economic benefits forthe rural communities in theCoromandel region and for NewZealand that can play a criticalrole in the post-COVID-19 eco-nomic recovery. With the poten-tial to extend the mine life out to2036, we can invest an estimated$1.4 billion in-country whileadding 300 new jobs to ourexisting 700-person countrywideworkforce. OceanaGold hasoperated responsibly for over 30years and has already deliveredsignificant benefits to NewZealand over that time."

WOODSTOCK - JoshuaGold Resources Inc. reportedthat the 43-101 National Instru-ment document has been com-pleted. Ben Fuschino, CEO said,“This filing of the 43-101 repre-sents the culmination of manyyears of persistence. The team inthe Swayze Greenstone belt arealocated in the western region ofthe Abitibi greenstone belt, thegold belt is an established goldmining district having producedover 100 mines, and 170 millionounces of gold since 1901. ”

New 43-101 NationalInstrument On C1 JV

New High Grade OxideGold Zone At Black Pine

VANCOUVER, BC - LibertyGold Corp. reported additionalreverse circulation (RC) drillresults from the 2020 drill pro-gram at its Carlin-style BlackPine oxide gold property insouthern Idaho.

A third high grade oxide golddiscovery (D-3 Zone) was iden-tified in close proximity to theD-1 and D-2 zone discoveriesmade in 2019. The D-3 Zonelies beneath the limit of shallowhistorical drilling in a strati-graphic unit that is modeled tounderlie at least the southerntwo thirds of the Black Pinegold system. Eight additionalholes have extended mineraliza-tion over 400 metres (m) in anorth-south direction by 250 min an east-west direction. D-3remains open for extension in all

directions. Drill hole LBP138lies at the south end of the zoneas currently defined, and re-turned 1.20 grams per tonnegold (“g/t Au”) over 67.1 m,including 2.57 g/t Au over 16.8m.  The hole bottomed in miner-alization, with the last 1.54 m-long interval returning 0.84 g/tAu.

“The new drill results con-firm that the D-3 Zone is a sig-nificant new discovery,” saidCal Everett, President and CEO.“Given the grade, thickness anddimensions that are beginning totake shape, we believe that D-3will have a positive materialimpact on the resource endow-ment at Black Pine. Each D-3drill hole to date contains multi-ple reportable oxide gold inter-vals above 0.5 g/t Au.”

Herbert Gold Project In AlaskaCommences Program And Testing

VANCOUVER - GrandePortage Resources Ltd. has com-menced drilling, using two 12hour shifts per day, at its HerbertGold project in S.E. Alaska.Grande Portage intends to drillapproximately 18-20 holes fromup to four different platformswhich will test up to four separatemajor veins and their satellitestructures. The 2020 drill pro-gram is a continuation of previousdrilling which successfully testedmultiple gold-quartz veins of theHerbert mesothermal vein systemwith very encouraging results.The current drill program will testtargets focusing on the expansion

of the gold-bearing Goat, Mainand Deep Trench veins. It willalso test the Floyd vein and thenewly discovered Elusive veinwhich was identified by LiDARand verified on surface as a quartzvein bearing visible gold.

Ian Klassen, CEO, said, "Weare excited to commence ourmuch anticipated summer drillprogram at the Herbert gold pro-ject. The Company has generatedmany very encouraging high-grade drill results in each of itsprevious drill campaigns. We arenow well positioned to follow upon this summer's program whichis entirely focused on expansion."

16 THE MINING RECORD JULY 2020

VANCOUVER, BC - GoldenLake Exploration Inc. reportedpositive gold and silver valuesfrom reconnaissance prospectingand geological mapping by theCompany's geological team onits keystone Jewel Ridge goldproperty located near the townof Eureka, Nevada.

Strong gold and silver valuesfrom selective samples returnedup to 5.48 grams per tonne (g/tAu) and 324.0 grams per tonnesilver (g/t Ag) from the A & ETarget, and up to 14.20 g/t Auand 562.0 g/t Ag from theCroesus-Connelly targets. Onegrab sample was also taken fromthe adit area at the South EurekaTunnel target which returned9.61 g/t Au and 78.9 g/t Ag.This is one of the key targetsfocused for drilling later thismonth, directed at Carlin-type,oxide gold mineralization.

"Jewel Ridge continues todeliver strong results. Withdrilling commencing this monthwe look forward to building thisexciting story." said MikeEngland, CEO and President.

The Jewel Ridge property islocated on the south end ofNevada's Battle Mountain -Eureka trend.

The property comprises 96unpatented lode mining claimsand 30 patented claims coveringapproximately 728 hectares(1,800 acres). The Jewel Ridgeproperty contains several his-toric small gold mines. TheCompany's focus is on Carlin-style disseminated gold deposits,the primary focus in the areasince the late 1970s.

Additional Strong Gold-Silver Values

Jewel Ridge Property

Drill Holes Completed AtHorsethief Gold Property

VANCOUVER - AlianzaMinerals Ltd. reported thatcrews have completed six holestotalling 1,770 metres (5805feet) of reverse-circulation (RC)drilling at the Horsethief GoldProperty, Nevada. This work isfunded by partner HochschildMining (US). The crew has leftsite for a mandated break andwill return to finish the programon this month.

Six holes have been complet-ed to date, with five reachingtarget depth. One hole (20HT-RC005) was terminated at 183metres (600 feet) when it inter-sected a large void and could notcontinue. Two holes were com-pleted at the Horsethief Northtarget area, three in theHorsethief South area and onewas collared to test the MustangIP target at depth. Logging iscomplete and all samples havebeen shipped to the laboratory

for analysis. Analytical resultsfrom the initial holes of the 2020program are expected to bereceived in mid-July.

Additionally, the Companyhas mobilized a geophysicalcrew to conduct approximately20 line-kilometres of magneticsand 5 line-kilometres of InducedPolarization (IP) survey, extend-ing the existing survey coverage.This is work is undertaken toinvestigate newly acquiredclaims that were not included inthe original survey.

Drilling at Horsethief followsa very successful 2019 programthat included detailed mappingfocussed on lithology, structureand alteration of the prospectivelimestone and dolostone stratig-raphy exposed at Horsethief.Significantly, based on lithologi-cal characteristics and fossilidentification, this work confi-dently assigned stratigraphicages ranging from upperCambrian to lower Ordovician.This is an important age deter-mination as it corresponds to theages of rocks hosting othermajor deposits such as the LongCanyon Gold Mine.

Additionally, the 2019 workprogram identified a new win-dow of upper Cambrian to lowerOrdovician-aged carbonatestratigraphy with significantjasperoid alteration in the north-east portion of the property. Anadditional 26 claims were stakedto cover this occurrence as wellas prospective stratigraphy iden-tified in the southern portion ofthe property.

Exploration Drilling And PreparationsFor Re-Starting The Gold Road ProjectROAD TOWN, BC - Aura

Minerals Inc. provided an updateon the status of the Gold RoadProject located in Arizona. GoldRoad is a narrow vein under-ground gold mine located in thehistorical Oatman mining districtof northern Arizona, northeast ofthe California-Nevada-Arizonaborder and 40 kilometers south-west of Kingman, Arizona.

Historical gold productionfrom the Oatman district hasbeen over two million ounceswith Gold Road contributingapproximately 746,000 Oz ofproduction.

Since the Acquisition, explo-ration drilling and preparationsfor re-starting the undergroundmine have been the main activi-ties at Gold Road. Preparationsfor re-starting the undergroundmine include development of thefirst 3-D ore model of thedeposit and a mine plan based on

inferred resources, personnelrecruitment, contract minernegotiations, mining equipmentmobilization to site, ventilationstudies, utility installations andwaste haulage to the surface. 

Aura initiated a multi-phasedrilling campaign in the 2ndquarter of 2020 to both upgradeportions of the inferred mineralresource to measured mineralresource and indicated mineralresource categories and to fur-ther delineate the extent of thedeposit, which is open downplunge and to both the east andwest along strike. 

The first phase of the dia-mond drilling campaign includesapproximately 12,900 feet ofdrilling in 33 holes. The objec-tive of this phase of drilling is toconfirm and support the mineplan by upgrading inferred min-eral resource blocks to the mea-sured mineral resource and indi-

cated mineral resource cate-gories.

Drilling started in the 3310zone, which initially is the high-est priority stope for develop-ment in the mine plan.

The results of first 4 drillholes were very successful andconfirmed projected grade fromthe inferred mineral resources inthe current mine plan. Theyintersected wider intervals thanestimated in the preliminary 3-Dore model. These holes delineateresource blocks up to 200 ftbelow the current mining levelin this zone.

The second phase of drilling,scheduled for 2020 and 2021,focuses on additional promisingextensions of the ore body thatare down plunge and alongstrike. The objective is toincrease the life of mine byexpanding the inferred mineralresource.

18 THE MINING RECORD JULY 2020