TSX-V ARTG
LAST $5.65 CAD (-0.30)
SPOT GOLD
LAST $1914.50 USD (+4.20)
TSX-V ARTG
LAST 5.65
CHANGE -0.30

Mineral Resource Estimate

The mineral resource is estimated from a drill hole database containing 1,002 drill holes and 288,738 assay intervals. Three domains were generated based on the major north-south fault and changes in orientation of the mineralization.  The block model has a 10m x 10m x 10m selective mining unit, with interpolation of gold done by Multiple Indicator Kriging (“MIK”) and interpolation of silver using Ordinary Kriging (“OK”).  The interpolations were limited by the domain boundaries and were clipped to the overburden surface. Blocks were assigned a preliminary classification based on the variography and drill hole spacing by domain, with Measured and Indicated confidence classifications then adjusted for continuity of blocks.

The base case cut-off grade within the “reasonable prospects of eventual economic extraction” pit is 0.20 g/t gold equivalent (“AuEq”), as highlighted in the table below.  At a 0.20 g/t AuEq cut-off, the total Measured and Indicated Mineral Resource is estimated at 597 Mt at 0.65 g/t AuEq, 0.61 g/t Au, and 6.4 g/t Ag for a total of 12.4 million AuEq ounces . Of the total Measured and Indicated Mineral Resources, 75% are in the Measured category.

Table 6 – Mineral Resource Sensitivity (effective date of May 5, 2020)

      In situ Grades In situ Metal
Classification Cutoff Tonnage AuEq Au Ag AuEq Au Ag
(g/t) (ktonnes) (g/t) (g/t) (g/t) (koz) (koz) (koz)
Measured 0.20 427,123 0.68 0.65 5.5 9,360 8,905 75,802
0.30 313,739 0.84 0.80 5.9 8,463 8,109 59,009
0.40 238,649 0.99 0.96 6.1 7,627 7,347 46,727
0.50 186,687 1.15 1.11 6.2 6,881 6,656 37,333
0.60 149,261 1.30 1.26 6.4 6,223 6,039 30,521
0.70 120,916 1.45 1.41 6.6 5,633 5,479 25,619
Indicated 0.20 169,642 0.56 0.51 8.5 3,046 2,766 46,578
0.30 123,309 0.68 0.61 10.4 2,677 2,431 41,112
0.40 86,473 0.81 0.74 12.4 2,264 2,057 34,419
0.50 64,305 0.94 0.85 14.8 1,947 1,763 30,681
0.60 50,527 1.05 0.95 17.2 1,705 1,537 27,957
0.70 40,317 1.15 1.03 19.6 1,493 1,340 25,458
Measured + Indicated 0.20 596,765 0.65 0.61 6.4 12,406 11,672 122,381
0.30 437,048 0.79 0.75 7.1 11,140 10,540 100,120
0.40 325,122 0.95 0.90 7.8 9,890 9,404 81,146
0.50 250,992 1.09 1.04 8.4 8,828 8,419 68,014
0.60 199,788 1.23 1.18 9.1 7,928 7,577 58,478
0.70 161,233 1.37 1.32 9.9 7,125 6,819 51,077
Inferred 0.20 16,935 0.53 0.45 12.8 288 246 6,953
0.30 11,485 0.66 0.57 16.2 245 210 5,971
0.40 8,690 0.77 0.65 19.2 214 182 5,373
0.50 5,552 0.95 0.79 26.0 169 142 4,648
0.60 4,065 1.10 0.90 32.7 143 118 4,279
0.70 3,328 1.20 0.97 36.9 128 104 3,951

Notes: 

  1. The Mineral Resource estimate has been prepared by Sue Bird, P.Eng., an independent Qualified Person.
  2. Resources are reported using the 2014 CIM Definition Standards and were estimated in accordance with the CIM 2019 Best Practices Guidelines .   
  3. Mineral Resources are reported inclusive of Mineral Reserves.
  4. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  5. The Mineral Resource has been confined by a “reasonable prospects of eventual economic extraction” pit using the following assumptions: US $2,000/oz. Au and US $21.43/oz Ag at a currency exchange rate of 0.75 US$ per CAD$; 99.9% payable Au; 95.0% payable Ag; $8.50/oz Au and $0.25/oz Ag offsite costs (refining, transport and insurance); a 1.5% NSR royalty; and uses a 93% metallurgical recovery for gold and 55% recovery for silver.
  6. The AuEq values were calculated using US $1,400/oz Au, US $15/oz Ag, a gold metallurgical recovery of 93%, silver metallurgical recovery of 55%, and mining smelter terms for the following equation: AuEq = Au g/t + (Ag g/t x 0.006).
  7. The specific gravity of the deposit has been determined by lithology as being between 2.6 and 2.74.
  8. Numbers may not add due to rounding.

There are no other known factors or issues that materially affect the Mineral Resource estimate other than normal risks faced by mining projects in the province in terms of environmental, permitting, taxation, socio-economic, marketing, and political factors and additional risk factors as listed in the “Cautionary Note Regarding Forward-Looking Information” section below.

Mineral Reserve Estimate

The Mineral Reserves for Blackwater are a subset of the Measured and Indicated Mineral Resources, described above.  Proven and Probable Mineral Reserves are modified from Measured and Indicated Mineral Resources and are summarized in the table below.  Inferred Mineral Resources are set to waste.  Mineral Reserves are estimated in accordance with the CIM 2019 Best Practices Guidelines and are classified using the 2014 CIM Definition Standards.

Table 7 – Mineral Reserve Estimate

Classification Run of Mine
(Mt)
AuEq Grade
(g/t)
Gold Grade
(Au, g/t)
Contained Metal
(Au, Moz.)
Silver Grade
(Ag, g/t)
Contained Metal
(Ag, Moz.)
Proven 325.0 0.78 0.74 7.8 5.8 60.7
Probable 9.1 0.84 0.80 0.2 5.5 1.6
Total Reserve 334.0 0.78 0.75 8.0 5.8 62.3

Notes:

  1. The Mineral Reserve estimates were prepared by Marc Schulte, P.Eng. (who is also the independent Qualified Person for these Mineral Reserve estimates), reported using the 2014 CIM Definition Standards, and have an effective date of August 18, 2020.
  2. Mineral Reserves are based on the PFS Life of Mine Plan.
  3. Mineral Reserves are mined tonnes and grade, the reference point is the mill feed at the primary crusher and includes consideration for operational modifying factors.
  4. Mineral Reserves are reported at an NSR cut-off grade of $13.00/t.
  5. Cut-off grade assumes US$1,400/oz. Au and US$15/oz Ag at a currency exchange rate of 0.75 US$ per C$; 99.9% payable gold; 95.0% payable silver; $8.50/oz Au and $0.25/oz Ag offsite costs (refining, transport and insurance); a 1.5% NSR royalty; and uses a 93% metallurgical recovery for gold and 55% recovery for silver.
  6. The cut-off grade covers processing costs of $10.00/t and administrative (G&A) costs of $3.00/t.
  7. The AuEq values were calculated using commodity prices of US$1,400/oz Au, US$15/oz Ag, a gold metallurgical recovery of 93% silver metallurgical recovery of 55%, and mining smelter terms for the following equation: AuEq = Au g/t + (Ag g/t x 0.006).
  8. Numbers have been rounded as required by reporting guidelines.

There are no other known factors or issues that materially affect the Mineral Reserve estimate other than normal risks faced by mining projects in the province in terms of environmental, permitting, taxation, socio-economic, marketing, and political factors and .additional risk factors as listed in the “Cautionary Note Regarding Forward-Looking Information” section below.