Overview

The DeLamar project is located in southwestern Idaho approximately 100 miles (160 km) from Boise. The project includes the historic Kinross’ DeLamar Mine that closed in 1998 due to low precious metal prices. The historic DeLamar Mine produced 1.6 million ounces of gold and 100 million ounces of silver1.

The DeLamar Project constitutes roughly 5,300 acres of patented and unpatented claims, and a further 4,100 acres of leased lands with approximately 1,575 historic drill holes and 145,940 meters of drilling outlined in historic databases. The DeLamar site includes all necessary infrastructure and existing on-site facilities, including all-season road access, grid power, a lined water treatment pond, workshop, and an office building.

The plan for 2020 at DeLamar is as follows:

  • Drilling at the Henrietta Target. The Company has commenced drilling at the high-grade Henrietta target, situated 500 m west of the DeLamar resource boundary. The drilling will include 1,500 m aimed at intersecting additional high-grade gold-silver mineralization on extent from previous drilling by the Company as announced on October 10, 2018.

    The Henrietta Target is host to a number of shallow, hand-dug shafts dating back to the late 1800s. In October 2018, drilling by the Company confirmed a shallow high-grade discovery at Henrietta with highlights including:

Drill Hole Number

From (m)

To
(m)

Interval
(m)
(1)

g/t Au

g/t Ag

g/t AuEq(2)

IDM18-066
(Previously Disclosed)

57.91

59.44

1.53

0.20

344.47

4.63

IDM18-066
Incl:
(Previously Disclosed)

74.68
80.77

105.16
85.34

30.48
4.57

0.35
0.28

252.69
1080.90

3.60
14.19

  • The Company plans on releasing an updated PEA in the second half of 2020 that will incorporate portions the 1.9 Moz AuEq of measured and indicated (“M&I”) unoxidized material and 0.3 Moz AuEq of inferred unoxidized material at the DeLamar Deposit into the updated economics and a new mine plan. The PEA released in September 2019 did not include this resource as the Company wanted to further test processing options for this gold-silver mineralized material. The Company believes that large portions of this resource can be included into the PEA update, potentially showing amenability to both on-site milling/leaching and off-site concentrate process. Extensive metallurgical test-work has been conducted throughout the DeLamar Deposit itself on this unoxidized material and the Company is working closely with McLelland Labs in Reno, Nevada on processing options for this material. Incorporating this material into the PEA update has the potential to increase the currently forecasted average annual production profile of 124,000 ozs AuEq to a substantially larger production case scenario.

    To view a table of the DeLamar Deposit in-pit unoxidized gold and silver equivalent resources, please click the following here.

During 2019, the Company completed the following:

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The 100% owned DeLamar Project was acquired from a wholly-owned subsidiary of Kinross Gold Corporation (“Kinross”) in November 2017.

The Delamar Project key highlights include:

  • Established production history: Over 100 years of prior open pit and underground mining operations, with total historic production of 1.6 million ounces of gold and 100 million ounces of silver. Typical recoveries for dominantly oxidized ores processed through the DeLamar agitated leach mill between 1990 and 1998 ranged between 85% to 95% for gold and 70% to 80% for silver. Recoveries for mixed oxide ore typically ranged between 77% to 90% for gold and 65% to 75% for silver1.

  • “Under the radar” opportunity with multiple untested targets: The mine has remained relatively unknown since it was put on care and maintenance in 1998 following low metal prices, and no exploration work has taken place on multiple high conviction targets in over two decades.

  • Robust resource potential: As a result of limited exploration work during DeLamar’s operating mine life and no exploration post closure, the potential to expand existing mineralization and outline further near-surface bulk tonnage resources is high, as well as the opportunity to employ modern techniques to explore high grade underground targets.

  • Excellent infrastructure and existing on-site facilities: All-season road access, grid power, a lined water treatment pond, workshop, and an office building.

The DeLamar project is subject to a retained variable net smelter return (“NSR”) royalty payable to Maverix Metals Inc.

  1. NI 43-101 Technical Report and Preliminary Economic Assessment for the DeLamar and Florida Mountain Gold – Silver Project, Owyhee County, Idaho, USA. The effective date of the DeLamar and Florida Mountain mineral resource estimate is May 1, 2019.

Summary of the DeLamar Deposit Mineral Resource Estimate

DeLamar Deposit Gold and Silver Resources

ClassificationTonnesg/t Auoz Aug/t Agoz Agg/t AuEqoz AuEq
Measured14,481,0000.51238,00036.416,942,0000.98456,000
Indicated105,140,0000.391,334,00023.479,241,0000.692,354,000
M&I119,621,0000.411,572,00025.196,183,0000.732,810,000
Inferred21,291,0000.39266,00015.210,418,0000.59401,000
  1. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  2. Oxidized and Transitional Mineral Resources are reported at a 0.2 g AuEq/t cut-off in consideration of potential open-pit mining and heap-leach processing. Unoxidized Mineral Resources are reported at a 0.3 g AuEq/t cut-off in consideration of potential open pit mining a milling / agitated leaching or flotation processing. The Mineral Resources are constrained by pit optimizations.
  3. Gold equivalent grades were calculated using the metal prices and recoveries presented elsewhere in this press release.
  4. Rounding as required by reporting guidelines may result in apparent discrepancies between tonnes, grades, and contained metal content.
  5. The Effective Date of the Mineral Resources is May 1, 2019.
  6. The estimate of mineral resources may be materially affected by geology, environment, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues