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Eagle Mountain Gold Project

Project Overview

Overview

The Eagle Mountain Project comprises two gold deposits, Eagle Mountain and Salbora, in addition to several other exploration targets. The deposits are structurally controlled and affected by a zone of saprolitic weathering up to 50 metres thick. Gold mineralization starts at surface in saprolite (soft rock) and extends into the underlying fresh rock.

Location

Guyana

Ownership

100%

Land Position

5,050 Ha

Metals

Gold

Status/Stage

Resource definition

Mineral Resources: Indicated

848,000 oz gold1

Mineral Resources: Inferred

868,000 oz gold1

1 23 million tonnes grading 1.14 gpt Au for 848,000 oz in Indicated Resources and 25 million tonnes grading 1.09 gpt Au for 868,000 oz in Inferred Resources

The Property is located approximately 7 km south of Mahdia Township (population ~3000). Mahdia can be accessed by road from Georgetown, a driving distance of ~325 km, or via air with a commercial flight.

Mahdia is a central mining location. Consequently, the local economy is dominated by small-scale mining activity and has a labour force and mechanical shops familiar with mining. Additionally, as capital of Potaro Region 8, the township offers a local hospital, school, shops, and a paved airstrip.

Unpaved roads and tracks from Mahdia provide access to and within the EMPL. Goldsource’s current field activities are supported by the 65-man exploration camp and offices on the Property.

Mineral Resources

Mineral Resource Update and Current Program
  • In February 2021, the Company delivered an updated mineral resource estimate (MRE) for the Eagle Mountain Project (Refer to the MRE news release, dated February 22, 2021).
    • 23 million tonnes grading 1.14 g/t for 843,000 ounces of gold contained in Indicated Resources; and
    • 25 million tonnes grading 1.09 gpt gold for 866,000 oz of gold in Inferred Resources.
  • The MRE includes the Eagle Mountain and Salbora deposits, both of which feature gold mineralization starting at surface in saprolite (soft rock) and extending into the underlying fresh rock. The saprolite is estimated to contain 42% of the gold in Indicated Resources and 16% of the gold in Inferred Resources.
  • Mineral resources, employing cut-off grades of 0.30 gpt gold for the saprolite and 0.50 gpt gold for the fresh rock, are contained within a conceptual open pit. Gold in surficial saprolite and the shallow sub-horizontal zones of the Eagle Mountain deposit result in a low average strip ratio. The strip ratio of the saprolite is estimated to be below 1:1.
  • The updated MRE is defined by a total of 674 core holes for 57,550 metres drilled, as well as 158 auger drill holes for 532 metres drilled, which includes infill and exploration drilling up to November 6, 2020.  
February 2021 Mineral Resource Update for the Eagle Mountain Project
Classification Tonnes (000 t) Gold (gpt) Ounces Au (oz)
Indicated
  Saprolite 11,000 0.95 353,000
  Fresh rock 12,000 1.32 495,000
  Total 23,000 1.14 848,000
Inferred
  Saprolite 5,000 0.82 140,000
  Fresh rock 20,000 1.16 728,000
  Total 25,000 1.09 868,000

 
Eagle Mountain Deposit Mineral Resource

Classification Tonnes (000 t) Gold (gpt) Ounces Au (oz)
Indicated
  Saprolite 11,000 0.95 346,000
  Fresh rock 11,000 1.23 436,000
  Total 22,000 1.09 782,000
Inferred
  Saprolite 5,000 0.81 134,000
  Fresh rock 19,000 1.15 701,000
  Total 24,000 1.08 835,000

 
Salbora Deposit Mineral Resource

Classification Tonnes (000 t) Gold (gpt) Ounces Au (oz)
Indicated
  Saprolite 150 1.45 7,000
  Fresh rock 660 2.82 60,000
  Total 810 2.57 67,000
Inferred
  Saprolite 200 0.99 6,000
  Fresh rock 500 1.74 27,000
  Total 700 1.52 33,000

Notes:

  1. Exploration results up to November 6, 2020.
  2. The updated MRE was prepared by CSA Global in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum Definition.
  3. Mineral Resources are not Mineral Reserves as they do not have demonstrated economic viability.
  4. Refer to the MRE news release, dated February 22, 2021.
Eagle Mountain Project – Resource Classification

Eagle Mountain Project – DDH Summary

Adrian Martinez (P.Geo.) of CSA Global is the independent Qualified Person for the February 2021 Mineral Resource Estimates. The Company QP under NI 43-101 is N. Eric Fier, CPG, P.Eng, Executive Chairman and VP Finance for Goldsource.

Geology and Mineralization

The Eagle Mountain Project comprises two gold deposits, Eagle Mountain and Salbora, in addition to several other exploration targets. The deposits are structurally controlled and considered to be part of the same mineralizing system. They are affected by a zone of saprolitic weathering up to 50 metres thick and overprints earlier-formed mineralization in both the granodiorite and basalt but has not resulted in enrichment of gold in the saprolite horizon.

Eagle Mountain Deposit

Gold mineralization at the Eagle Mountain deposit is associated with a series of tabular to gently undulating, shallow, dip-slope shear zones developed within a granodioritic host rock. The deposit has a lateral extent that covers an area of approximately 2.5 kilometres by 1.0 kilometre. Three discrete zones of alteration and mineralization have been delineated. Zone 1 is shallowest and outcrops at surface across much of the deposit. Zones 2 and 3 lie at depth below Zone 1 separated by low grade material. Zone 1 contains 92% of the gold in the indicated resource category; and 77% of the gold in the inferred resource category. Zone 2 and Zone 3 make up the balance.

Salbora Deposit

i. Gold mineralization at Salbora is formed by a series of north to northwest-trending, steeply-dipping structures within a basaltic and granitic host rock, on the margin of a monzonite intrusion. These steep structures (shear zones and breccia bodies) coalesce into a broader zone of brecciation that forms a near-surface sub-horizontal lens up to 100 metres thick and approximated 200 metres by 200 metres in area, where higher-grade gold mineralization occurs, and which represents almost 100% of the mineral resources of this deposit.

Current Program

For the near term, the Company’s exploration program has three primary growth objectives:

  1. In-fill drilling of the 2021 MRE to upgrade a significant portion of mineralization currently classified as Inferred to the Measured and Indicated categories to be used as the basis for a Prefeasibility Study.
  2. Testing for new lateral extensions of the dip slope sub-horizontal zones of the Eagle Mountain Deposit, notably to the north, west and southwest currently outside of the 2021 MRE; and
  3. Follow-up exploration of several new target areas along the prospective Salbora-Powis trend, such as the Toucan, Powis, Ann and Montgomery prospects where the potential exists for Salbora-style mineralization;

History

February 2021

Mineral Resource Update (848,000 oz of Indicated Resources and 868,000 oz of Inferred Resources)

H1 2020

Discovery of the Toucan and Powis Targets along the Salbora-Powis trend

H1 2020

Expansion of the Friendly area with the Eagle Mountain deposit

H2 2018

First diamond hole at Salbora (69 metres grading 6.52 g/t)

H2 2018

Auger and initial core drilling of the high-grade Salbora area

September 2018

Received metallurgical test results from SGS Canada

H1 2018

Discovery of the Salbora area (trenching)

March 2017

Initiated exploration program to expand the Eagle Mountain resource base

February 2017

Pilot plant testing terminated

October 2015 - December 2015

Construction of the saprolite pilot plant (gravity recovery)

August 2014

Goldsource announced the granting of a Medium Scale Mining Permit

June 2014

PEA of the Eagle Mountain saprolite project

February 2014

Goldsource and Eagle Mountain Gold Inc completes business combination.

November 2012

Technical Report and Mineral Resource Update

November 2010

Mineral Resource Audit

December 2010

the Eagle Mountain Prospecting Licence was transferred to Eagle Mountain Gold Inc from IAMGOLD

2007-2010

Diamond drilling by Omai Gold Mines under IAMGOLD

2000

New Prospecting License issued to Omai Gold Mines Limited (a subsidiary of Cambior Inc.)

1998

3-year prospecting license granted to Golden Star Resources in October and then transferred to Omai Gold Mines Limited (a subsidiary of Cambior Inc) in December. Initial drilling of diamond drill holes in Kilroy and Zion Areas.

October 1987

The Eagle Mountain Property (then known as the Minnehaha License) was granted to Golden Star Resources Limited as a 5-year Mineral Agreement.

1964-1980

Guyana Geology and Mines Commission conduct soil sampling and diamond-drill hole program to investigate gold potential and to follow-up on molybdenum anomalies.

1947-1948

Anaconda British Guiana Mines Ltd conduct first exploration of Eagle Mountain with geological mapping, diamond drilling and exploration adits.

1884

First records of alluvial gold being mined in the area

Technical Reports

N. Eric Fier, CPG, P.Eng., Executive Chairman and Chief Operating Officer of the Company, is the Qualified Person under National Instrument 43-101, Standards of Disclosure for Mineral Projects, responsible for the preparation of the technical information included in this website and for supervision of field activities related to the Company projects.

About Guyana

Guyana officially the Co-operative Republic of Guyana, is a sovereign state on the Caribbean coast of South America. Although Guyana is part of the Anglophone Caribbean, it is the only Caribbean country that is part of South America. The Caribbean Community (CARICOM), of which Guyana is a member, has its secretariat's headquarters in Guyana's capital, Georgetown.

Guyana was originally colonised by the Netherlands. Later, it became a British Colony, known as British Guiana, and remained so for over 200 years until it achieved independence on 26 May 1966 from the United Kingdom. On 23 February 1970, Guyana officially became a republic. In 2008, the country joined the Union of South American Nations as a founding member.

Guyana is a member state of the Commonwealth of Nations and has the distinction of being the only South American nation in which English is the official language. The majority of the population, however, speak Guyanese Creole; an English-based Creole language with slight Dutch, Arawakan and Caribbean influences.

Modern Guyana is bordered by Suriname to the east, by Brazil to the south and southwest, by Venezuela to the west, and by the Atlantic Ocean to the north. At 215,000 square kilometres (83,000 sq mi), Guyana is the third-smallest independent state on the mainland of South America after Uruguay and Suriname.

Guyana contains one of the most prospective, yet under-explored, gold regions in the world. It has a long history of alluvial gold production, but only recently declared itself open to foreign investment and mineral exploration after enacting the Land Tenure Act in 2004. The self-financing Guyana Geology and Mines Commission (GGMC) is the government entity responsible for overseeing the country's mining and quarrying sector, a critical component of the Guyanese economy.

It is a stable parliamentary democracy with a population of approximately 770,000 people. Its currency is the Guyanese dollar, and its capital city is Georgetown, which is home to approximately 250,000 people. Guyana's other major cities include Linden, New Amsterdam, Rose Hall, Anna Regina, and Bartica.

WHY GUYANA IS AN EXCELLENT MINING JURISDICTION?
  • Westminster -style parliamentary democracy
  • English language and British Law
  • Government has followed a free-market model for development with a policy for economic liberalization and promotion of direct foreign investment
  • Long history of bauxite, gold and diamond production
  • Historical Omai Gold Mine produced approx. 3.6 million ounces (closed in 2005)
  • Stable Mining Act
  • Highly prospective, yet under-explored region. Gold proterozoic belt spanning from Venezuela through the Guyanas to Ivory Coast and Ghana.
  • Relatively low risk on community/environmental issues
  • Mineral exploration: 25+ Canadian, American and Australian companies
  • Current large-scale gold mines in production: Aurora mine (Zijin Mining) & Karouni mine (Troy Resources)

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