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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 controlledac 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%

Claim Type

Prospecting License

Metals

Gold

Status/Stage

PFS in progress

Mineral Resources: Indicated

1,183,000 oz gold1

Mineral Resources: Inferred

582,000 oz gold1

131.1 million tonnes grading 1.18 gpt Au for 1,183,000 oz in Indicated Resources and 18.4 million tonnes grading 0.98 gpt Au for 582,000 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 April 2022, the Company delivered an updated Mineral Resource estimate (MRE Update) for the Eagle Mountain Project (Refer to the MRE Update news release, dated April 7, 2022).
    • 31 million tonnes grading 1.18 gpt for 1,183,000 ounces of gold contained in Indicated Resources; and
    • 18 million tonnes grading 0.98 gpt gold for 582,000 oz of gold in Inferred Resources.
  • The MRE includes the Eagle Mountain and Salbora deposits as well as the earlier-stage Toucan and Powis prospects. Gold mineralization starts at surface in saprolite (soft weathered rock) with the base of the saprolite marked by a narrow transition zone (< 1 metre) and extends into the underlying fresh rock. Overall, the saprolite and transition contain 35% of the gold in Indicated Resource and 24% in Inferred Resource.
  • The Indicated Resource, representing 67% of the gold in the Updated MRE, are laterally extensive and generally shallow. At the Eagle Mountain deposit the Indicated Resource extends from surface to a maximum depth of 150 metres and has an average depth of 35 metres. 75% of the Indicated Resource is within 50 metres of surface. At the Salbora deposit the Indicated Resource extends from surface to a maximum depth of 156 metres and has an average depth of 49 metres. 58% of the Indicated Resource is within 50 metres of the surface.
  • 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.
  • The updated MRE is defined by a total of 772 core holes for 75,430 metres drilled up to December 31, 2021.
April 2022 Mineral Resource Update for the Eagle Mountain Project
Classification Tonnes (000 t) Gold (gpt) Ounces Au (oz)
Indicated
  Saprolite & Transition 12,500 1.04 417,000
  Fresh rock 18,700 1.28 766,000
  Total 31,100 1.18 1,183,000
Inferred
  Saprolite & Transition 6,100 0.71 139,000
  Fresh rock 12,300 1.12 443,000
  Total 18,400 0.98 582,000

Notes:

  1. Exploration results up to December 31, 2021.
  2. The MRE Update 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 Update news release, dated April 7, 2022.

Eagle Mountain Project Image #1

Leon McGarry (P.Geo.) of CSA Global is the independent Qualified Person for the April 2022 Mineral Resource estimate. The Company QP under NI 43-101 is N. Eric Fier, CPG, P.Eng, Executive Chairman for Goldsource.

Eagle Mountain Project Image #2

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, sub-horizontal to shallowly dipping shear zones developed within a granodioritic host rock. The deposit is laterally extensive; the mineral resource outline extends over 2.5 kilometres by 1.0 kilometre. Zones 1 and 2 represent the majority of mineralization within the Eagle Mountain deposit, including the mineralization at surface and to shallow depths. Two additional zones (Zone 3 and the more substantive Zone 4), both stratigraphically below Zone 2, are partially included in the Eagle Mountain pit-constrained resource. While at depth, more of Zone 4 is included in the MRE Update downslope and to the west where Zone 4 is closer to surface.
  • The mineral resource estimate for Eagle Mountain deposit also includes the Powis Prospect, which displays characteristics of shallowly dipping mineralized zones with higher-grade quartz veins, and the Toucan Prospect, which is at the western extents on the Eagle Mountain deposit, and whilst predominantly shallow-dipping, contains a component of Salbora-style steeply-dipping mineralization with increased silicification and mineralized breccias.

Salbora Deposit
  • Gold mineralization at the Salbora deposit is associated with steeply dipping mineralized breccias that cross-cut shallow-dipping shear structures within silicified, chlorite and carbonate-altered basaltic and granitoid units on the margin of a monzonite intrusion. The mineralization is strongest within the upper 50 metres where there exist broader zones of alteration and deformation. The Salbora pit-constrained resource is characterized by a generally shallow, sub-horizontal lens of mineralization approximately 80 metres thick with the breccia zones supporting the pit-constrained mineral resource to a depth of 156 metres. The core of the Salbora deposit has a lateral extent of approximately 200 metres by 200 metres with additional smaller pits along one kilometre of strike.

Current Program

The 2022 program will include drilling and generative exploration activities as well as a significant increase in technical work to progress the prefeasibility study.

The Company’s exploration and engineering programs have the following primary objectives:

  1. An initial 11,000-metre drilling program (2022 - Phase 1) will include testing of known target areas along the Salbora-Powis trend; infill and expansion drilling of the Toucan Prospect; and infill drilling of the Eagle Mountain deposit to upgrade new Inferred resources.
  2. The re-initiation of a generative exploration program, inclusive of geophysics, geochemistry, and trenching, among other techniques, to add to the pipeline of prospective greenfields gold targets for follow-up drilling.
  3. Complete and compile additional engineering data, including metallurgical, hydrogeology, geotechnical, and environmental to support the completion of a prefeasibility study focusing on establishing potential reserves in shallow and low strip ratio open pits.

History

April 2022

Mineral Resource Update (1,183,000 oz of Indicated Resources and 582,000 oz of Inferred Resources)

2021

Completion of 25,956 metres of drilling

Completion of Biodiversity Studies and PFS Gap Analysis

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

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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