Eagle Mountain

Summary

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.

Key Facts

Location	Guyana
Ownership	100%
Claim Type	Prospecting License
Metals	Gold
Status/Stage	PEA 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.

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.

 

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.

 

History & Milestones

• 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