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Mineral Ridge

Mineral Resource & Reserve Estimates
The Mineral Resource estimate for the material on the heap leach pad that is directly amenable to processing is provided in Table 1. No cut-off criteria have been applied since there will be no selectivity of areas to be processed and the leach pad will be processed in its entirety. The Mineral Resources are reported inclusive of Mineral Reserves and have an effective date of 29 June 2017. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

The Mineral Resource estimate for the open-pit (other) areas is provided in Table 2 (Measured and Indicated) and Table 3 (Inferred). The Mineral Resources are reported inclusive of Mineral Reserves and have an effective date of 30 November 2017. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Table 1: Mineral Resource Estimate for Mineralization Contained within the Heap Leach Pad
Mineral Resource Classification Tons
('000)
Gold
(opt)
Silver
(opt)
Contained Gold
('000 oz)
Contained Silver
('000 oz)
Measured 2,895 0.017 0.016 48.5 46.4
Indicated 4,220 0.017 0.018 73.2 74.1
Measured & Indicated 7,117 0.017 0.017 121.7 120.4
Inferred 76 0.016 0.027 1.2 2.0
Notes:
  1. The effective date of the Mineral Resource estimate is June 29, 2017.
  2. The QP for the estimate is Mr. Ian Crundwell, P.Geo., of Mine Technical Services.
  3. Mineral Resources are quoted inclusive of Mineral Reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  4. Mineral Resources are contained within the Mineral Ridge leach pad facility with the following assumptions: a long-term gold price of $1,216/oz; assumed process costs of $11/t; and metallurgical recovery for gold of 91%. Silver was not used in the consideration of reasonable prospects for eventual economic extraction. Silver recoveries from heap leach pad material are projected to be 24%.
  5. Rounding may result in apparent differences when summing tons, grade and contained metal content.
  6. Tonnage and grade measurements are in Imperial units. Grades are reported in ounces per ton.

Table 2: Measured and Indicated Mineral Resource Tabulation for Other Areas
Area Classification Tons
(kt)
Gold Grade
(opt)
Contained Gold
(koz)
Brodie Measured 455.7 0.063 28.6
Indicated 237.9 0.056 13.4
Subtotal Measured and Indicated 693.6 0.060 41.9
Custer Measured 147.8 0.083 12.3
Indicated 75.4 0.088 6.6
Subtotal Measured and Indicated 223.2 0.085 18.9
Drinkwater HW Measured 527.3 0.046 24.3
Indicated 209.2 0.049 10.3
Subtotal Measured and Indicated 736.6 0.047 34.6
Mary LC & Bunkhouse Measured 721.4 0.072 51.7
Indicated 403.3 0.074 29.8
Subtotal Measured and Indicated 1,124.7 0.072 81.5
Oromonte Measured 235.8 0.162 38.3
Indicated 169.0 0.074 12.6
Subtotal Measured and Indicated 404.8 0.126 50.9
Combined Measured 2,088.0 0.074 155.2
Indicated 1,094.8 0.066 72.6
Total Measured and Indicated 3,182.8 0.072 227.8
Notes:
  1. The effective date of the Mineral Resource estimate is November 30, 2017.
  2. The QP for the estimate is Mr. Ian Crundwell, P.Geo., of Mine Technical Services.
  3. Mineral Resources are reported inclusive of Mineral Reserves at a gold cut-off grade of 0.01 opt Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  4. Mineral Resources are constrained to the area within the grade-shell wireframes. The areas outside of these grade shells are assumed to be at zero grade.
  5. These Mineral Resource are considered to be amenable to open-pit mining. Conceptual Whittle pit shells used the following assumptions: a long-term gold price of $1,350/oz; assumed combined operating costs of $12.36/t (mining, process, general and administrative); metallurgical recovery for gold of 95%, and variable pit slope angles that ranged from 38--42.
  6. Rounding may result in apparent differences between when summing tons, grade and contained metal content. Tonnage and grade measurements are in Imperial units. Grades are reported in ounces per ton.

Table 3: Inferred Mineral Resource Tabulation for Other Areas
Area Classification Tons
(kt)
Gold Grade
(opt)
Contained Gold
(koz)
Brodie Inferred 2.4 0.034 0.08
Custer Inferred -- -- --
Drinkwater HW Inferred 180.1 0.059 10.61
Mary LC & Bunkhouse Inferred 0.1 0.061 0.01
Oromonte Inferred 0.4 0.092 0.03
Combined Total Inferred 182.9 0.059 10.73
Notes:
  1. The effective date of the Mineral Resource estimate is November 30, 2017.
  2. The QP for the estimate is Mr. Ian Crundwell, P.Geo., of Mine Technical Services.
  3. Mineral Resources are reported inclusive of Mineral Reserves at a gold cut-off grade of 0.01 opt. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
  4. Mineral Resources are constrained to the area within the grade-shell wireframes. The areas outside of these grade shells are assumed to be at zero grade.
  5. These Mineral Resource are considered to be amenable to open-pit mining. Conceptual Whittle pit shells used the following assumptions: a long-term gold price of $1,350/oz; assumed combined operating costs of $12.36/t (mining, process, general and administrative); metallurgical recovery for gold of 95%, and variable pit slope angles that ranged from 38--42.
  6. Rounding may result in apparent differences between when summing tons, grade and contained metal content. Tonnage and grade measurements are in Imperial units. Grades are reported in ounces per ton.

Mineral Reserve Statement

The Mineral Reserve estimates were prepared with reference to the 2014 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards and the 2003 CIM Best Practice Guidelines.

The Mineral Reserve estimate for the material on the heap leach pad is provided in Table 4. The estimate has an effective date of June 29, 2017.

Proven and Probable Mineral Reserves for the open-pit (other) area material are reported within the final pit design used for the mine production schedule and are shown in Table 5. The estimate has an effective date of November 30, 2017.

Table 4: Mineral Reserve Estimate for the Heap Leach Pad
Mineral Reserve Classification Tons
('000)
Gold
(opt)
Silver
(opt)
Contained Gold
('000 oz)
Contained Silver
('000 oz)
Proven 2,895 0.017 0.016 48.5 46.4
Probable 4,220 0.017 0.018 73.2 74.1
Less Material Remaining in Place due to facility designs (260) 0.017 0.017 (4.5) (4.6)
Total Proven & Probable 6,855 0.017 0.017 117.2 115.9
Notes:
  1. The Mineral Reserves have an effective date of June 29, 2017.
  2. The QP for the estimate is Mr. Jeffery Choquette P.E., an employee of Hard Rock Consulting.
  3. Mineral Reserves are contained within the Project leach pad facility with the following assumptions: long-term gold price of $1,216/oz; assumed total ore process costs of $10.59/t; metallurgical recovery for gold of 91%, and 24% for silver, refining and smelting cost of $28.39/oz of gold. Allowance has been made for the facility location which excludes 260,000 t; this material must remain in-place, based on the to the heap material mining and tailings placement design.
  4. Rounding as required by reporting guidelines may result in summation differences.

Table 5: Mineral Reserve Estimate for the Other Areas
Pit Area Mineral Reserve Classification Tons
('000)
Gold
(opt)
Contained Gold
('000 oz)
Brodie Proven 51 0.042 2.1
Probable 12 0.027 0.3
Subtotal Proven and Probable 63 0.039 2.5
Custer Proven 314 0.047 14.8
Probable 144 0.032 4.6
Subtotal Proven and Probable 459 0.042 19.4
Drinkwater Proven 836 0.038 32.1
Probable 352 0.033 11.7
Subtotal Proven and Probable 1,189 0.037 43.7
Mary LC Proven 470 0.035 16.3
Probable 276 0.035 9.7
Subtotal Proven and Probable 746 0.035 26.0
Bunkhouse Proven 239 0.047 11.1
Probable 4 0.021 0.1
Subtotal Proven and Probable 243 0.046 11.2
Oromonte Proven 563 0.071 39.8
Probable 449 0.030 13.7
Subtotal Proven and Probable 1,012 0.053 53.5
Total Combined Proven 2,474 0.047 116.2
Probable 1,239 0.032 40.1
Total Proven and Probable 3,713 0.042 156.3
Notes:
  1. The Mineral Reserves have an effective date of November 30, 2017.
  2. The Qualified Person for the estimate is Mr. Jeffery Choquette P.E., an employee of Hard Rock Consulting LLC.
  3. Mineral Reserves are reported within the pit designs at a 0.01 opt gold cut-off grade. Pit designs incorporate the following considerations: base case gold price of $1,300/oz; pit slope angles that range from 38--47; average life-of-mine metallurgical recovery assumption of 93%; crushing costs of $1.81/t, process cost of $5.79/t, general and administrative and tax costs of $2.90/t; and average mining costs of $1.42/t mined
  4. Rounding as required by reporting guidelines may result in summation differences.

An NI 43-101 compliant technical report in support of the resource and reserve estimates and associated updated feasibility study was filed on SEDAR on January 9, 2018.



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