Mineral Reserves

Mineral Reserves were estimated for open pit and underground production based on the 2019 revised resource model. Open pit Mineral Reserves were developed from a Lerchs-Grossmann optimization study conducted using a $1,200/oz gold price, incorporating updated operating cost assumptions, pit slope angles, dilution and mining loss factors, gold recovery and mining constraints. Final designs were developed to optimize mine design parameters and ore production schedules.

Underground Mineral Reserves were estimated for portions of the Rory’s Knoll, East Walcott, Aleck Hill and Mad Kiss deposits. Mineral Reserves included dilution and extraction factors, variable minimum mining widths depending on the deposit and cut-off grades based on operating cost assumptions and a $1,200/oz gold price.

Mineral Reserves
As at December 31, 2019
Category Quantity ('000 t) Grade (g/t Au) Contained Metal ('000 oz)
Proven
Open Pit 1,762 2.11 120
Underground 
Surface Stockpiles 118 0.85 3
Total Proven 1,880 2.03 123
Probable
Open Pit Saprolite 32 2.8 3
Open Pit Fresh 651 2.46 52
Underground 23,289 2.75 2,063
Total Probable 23,972 2.75 2,118
Proven & Probable
Open Pit 2,445 2.21 174
Underground 23,289 2.75 2,063
Surface Stockpiles 118 0.85 3
Total Proven & Probable 25,852 2.70 2,240

(1) Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) (2014) definitions were followed for Mineral Reserves.

(2) Open pit Mineral Reserves are estimated at a cut-off grade of 0.93 g/t Au for saprolite and 0.94 g/t Au for fresh rock at Rory’s Knoll and 0.98 g/t Au for Aleck Hill.

(3) Underground Mineral Reserves are estimated at a cut-off grade of 1.70 g/t Au for Rory’s Knoll, 2.5 g/t Au for East Walcott, and 2.2 g/t Au for the Mad Kiss and Aleck Hill satellite deposits.

(4) Mineral Reserves are estimated using an average long-term gold price of US$1,200 per ounce.

(5) Open pit Mineral Reserves used a minimum mining width of 5 metres.

(6) A minimum mining width of 3 metres was used for the underground satellite deposits. Dilution at Mad Kiss and Aleck Hill is based upon the addition of 0.5 metres on the hanging wall and the footwall

(7) Bulk density is 2.8 t/m3 for fresh mineralization and 1.73 t/m3 for saprolite mineralization.

(8) Numbers may not add due to rounding.

Mineral Resources

The Mineral Resource estimated at December 31, 2019 is summarized as follows:

Mineral Resources
As at December 31, 2019
Category Tonnage (Mt) Grade (g/t Au) Contained Metal (000 oz Au)
Open Pit
Measured 2.0 2.47 161
Indicated 0.8 2.85 76
Measured + Indicated  2.9  2.58  237 
Inferred  0.2   2.8217 
Underground
Measured 1.7 3.25 178
Indicated 33.1 3.20 3,402
Measured + Indicated 34.8 3.20 3,580
Inferred 25.8 2.28 1,884 
Total Mineral Resource
Measured 3.7 2.82 339
Indicated 33.9 3.19 3,477
Total Measured + Indicated 37.6 3.15 3,816
Total Inferred 25.9 2.28 1,901

(1) CIM (2014) definitions were followed for Mineral Resources.

(2) Open pit Mineral Resources are reported at a cut-off grade of 0.52 g/t Au for saprolite and 0.70 g/t Au for fresh rock, and underground Mineral Resources are reported at a cut-off grade of 1.2 g/t Au for Rory’s Knoll area, and 1.7 g/t Au for other areas. Cut-off grades are based on a price of US$1,500 per ounce of gold and gold recoveries dependent on mine method, material type, and/or location.

(3) Minimum mining widths of 5 metres for open pit and 3 metres for underground were used.

(4) Bulk density is 2.8 t/m3 for fresh mineralization and 1.73 t/m3 for saprolite mineralization.

(5) Mineral Resources are inclusive of Mineral Reserves.

(6) Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

(7) Numbers may not add due to rounding.

The estimation of the updated Mineral Reserves and Mineral Resources was completed by R. Dennis Bergen (P.Eng.) and Katherine M. Masun (P.Geo.) of RPA, both of whom are independent qualified persons for the purposes of NI 43-101. For further details, please refer to the Technical Report available on SEDAR at www.sedar.com.