COCHRANE HILL


Location

The Cochrane Hill Gold deposit is located approximately 80 km from the central milling facility at Touquoy and is readily accessible by highway.

History

Gold was discovered at Cochrane Hill in the 1860’s with production of about 1,353 oz. between 1868 and 1929. Ore was won by underground mining from three shafts. During 1974-1989 a total of 96 holes for 13,946m was drilled by Massval Mines Ltd (1973-74), Northumberland Mines Ltd (1979-81) and Scominex (1984-87) and, in addition, underground development and exploration was undertaken by Scominex (1986-87) and Novagold Resources Inc (1988), with 56 underground holes for 2,873m drilled.

Mineral Resource

    Measured Indicated
  Cut-off Grade (g/t Au) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.)
Cochrane Hill 0.30 10.8 1.12 387 6.7 1.02 219
  0.35 10.0 1.18 378 6.2 1.07 214
  0.40 9.2 1.24 367 5.7 1.12 207
  0.50 8.0 1.34 346 4.9 1.24 194

 

    Measured+Indicated Inferred
  Cut-off Grade (g/t Au) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.) Tonnage (Mt) Grade (g/t Au) Contained Gold (000's oz.)
Cochrane Hill 0.30 17.4 1.08 607 1.8 1.24 73
  0.35 16.2 1.13 592 1.7 1.30 70
  0.40 15.0 1.19 574 1.5 1.39 68
  0.50 12.9 1.31 540 1.3 1.56 65

1. Mineral Resources have an effective date of February 15, 2019.  The Qualified Person for the estimates is Mr. Neil Schofield, MAIG, an employee of FSSI Consultants (Australia) Pty Ltd.
2. Mineral Resources are reported at a base case cut-off grade of 0.3 g/t Au.  The cut-off grade includes the following considerations: assumption of open pit mining methods; gold price of US $1,400/oz; and an exchange rate of 0.77 US$: CDN$.
3. Mineral Resources are reported inclusive of those Mineral Resources that have been converted to Mineral Reserves.  Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
4. Estimates have been rounded and may result in summation differences.

Cochrane Hill

The Phase 3 drilling program at the Cochrane Hill deposit successfully increased in-pit Measured and Indicated Mineral Resources to 607,000 ounces (at a cut-off grade of 0.3 g/t Au) representing an increase of 50% or approximately 203,000 ounces.

Figure 2:  Increase of Measured and Indicated Mineral Resources – Cochrane Hill

Increase of Measured and Indicated Mineral Resources Cochrane Hill

Phase 3 drilling at Cochrane Hill totalled 23,145 metres at a cost of CAD $3.9 million or CAD $19 per ounce of Measured and Indicated Mineral Resource ounces added.

Cochrane Hill

The recent drilling has resulted in an improved geological interpretation and identified a robust mineralized core zone with an approximate strike length of 325m. This core zone is thicker than average, at 20-25m true width, with a steep easterly plunge. Higher grades within this zone are spatially related to a greater abundance of quartz veining; there is an indication that this zone becomes wider down dip, and it is open at depth. To the east of this zone, smaller, parallel high-grade shoots have been identified and are also open down plunge as outlined in the long section below.

Figure 3:  Longitudinal Section – Cochrane Hill

Longitudinal Section Cochrane Hill

Inferred resources at Cochrane Hill (currently 73,000 ounces at a cut-off grade of 0.3 g/t Au) are higher grade than the Measured and Indicated Mineral Resources, partly reflecting the easterly plunging shoots which are only sparsely drilled to date.  Furthermore, higher grade mineralization has been identified in the footwall zone.

These easterly plunging shoots have only limited representation in the new resource model and will require further drill testing as they have potential to extend mineralization in the east and at depth, potentially materially impacting future pit designs.