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Winter 2017 Features:

Infrastructure Developments will Benefit the North, Canada

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The News is 'GOLDEN'

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Freezing Trees,
Finding Answers

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The Washington
Companies to Acquire Dominion

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PDAC 2018 Awards

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Norway to be Home
to World's Tallest
Timber Building


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2018 Buyers' Guide & Product Source Directory

 

Four news items from 2017 have caught our eye and all relate to companies that explore for or produce gold in the Mid-Canada region:

TMAC RESOURCES ANNOUNCES COMMERCIAL PRODUCTION
AT DORIS MINE AND MILL COMPLEX

May 23, 2017– TMAC Resources Inc. (TSX: TMR) is pleased to announce that commercial production was achieved, effective May 15, 2017, at its Doris Mine and Mill Complex situated on the company’s Hope Bay property located in the Kitikmeot region of Nunavut, Canada.

The processing plant has operated at an average in excess of 60% of its 1,000 tonnes per day (tpd) nameplate capacity over a 45-day period, and at an average of over 80% of capacity from May 4 to 15. TMAC continues to make improvements to operations that will enable ramp up to steady state throughput of 1,000 tpd. As the processing throughput increases, the tonnes of ore brought to surface from underground mining will also be increased. As well, TMAC is focusing on optimizing recoveries, which have yet to reach expected levels. As improved recoveries are achieved, a transition to higher grade feed from the currently blended, lower grade stockpile ore will be fed to the processing plant.

Catharine Farrow, CEO of TMAC Resources, stated, “Achieving commercial production is a significant achievement of which our entire team is proud. It is a great step toward achieving steady state operations at our Doris Mine and Mill Complex, which is the first step in our plans to funding the development of the Madrid and Boston deposits. We are proud of the work and dedication of our employees, contractors and consultants as we complete the transformation of TMAC to a producing company and position ourselves for the next phase of growth at Madrid.”

The Madrid and Boston properties are expected to begin production in 2020 and 2022, respectively. TMAC has a 100% interest in the 1,101 sq. km (approximately 80 km by 20 km) Hope Bay Project located in Nunavut, Canada. The Hope Bay Project is a high-grade gold deposit with established Measured and Indicated Mineral Resources totaling approximately 4.91 million ounces of gold at an average grade of 8.6 g/t Au and Inferred Mineral Resources totaling approximately 1.694 million ounces of gold at an average grade of 7.1 g/t Au, and with recently established Proven and Probable Mineral Reserves totaling approximately 3.6 million ounces of gold at an average grade of 7.7 g/t Au.

MADSEN MINE PREPS FOR OPERATIONAL READINESS
Sept. 14, 2017 – On August 2, 2017, Pure Gold Mining Inc.
(TSX-V: PGM) announced a new and significantly expanded mineral resource estimate for the Madsen Gold Project. The Madsen Gold Project resource includes the high-grade Austin, South Austin, A3, McVeigh, and 8-Zone deposits. These deposits are adjacent to existing underground mine infrastructure1. This was followed by a September 14, 2017 announcement of a new Preliminary Economic Assessment (PEA) for an underground mining operation based on the August 2017 Resource Estimate.

Q4 2017 Resource Estimate Update
The Company plans to update the August 2017 resource estimate in Q4 2017, by incorporating initial mineral resource estimates for the satellite deposits Russet South and Fork.

Highlights

  • Located in Red Lake, Ontario, an established mining jurisdiction with more than 28 million ounces of high-grade gold produced to date.
  • Madsen is one of the highest grade undeveloped Gold deposits in the world3. Structurally controlled high-grade gold mineralization is hosted near ultramafic and basalt contacts.

August 2017 Mineral Resources Estimate
Current mineral resources from four zones within the historic Madsen Mine include:

  • Indicated mineral resource of 1,648,000 oz gold in 5.78 million tonnes grading 8.9 g/t
    Gold4 (4 g/t cut-off);
  • Inferred mineral resource of 178,000 oz gold in 0.57 million tonnes grading 9.4 g/t Gold4
    (4 g/t cut-off);
  • Additional Resource Update planned for Q4 2017 including, for the first time, two satellite deposits;
  • The Madsen Gold Project is connected to roads and power and has access to an experienced mining workforce in the Red Lake area.

2017 Preliminary Economic Assessment (PEA)
In September 2017, Pure Gold released a new PEA for an underground mining operation based on an August 2017 Resource Estimate which outlined a long life high margin mine, with low initial capital requirements and fast timeline to production.

The 2017 PEA showed a robust after-tax net present value (at a 5% discount rate) of $258 million and an internal rate of return of 47% with a 2.8-year payback of initial capital. The mine would produce a total of 911,497 ounces of gold during a mine life of 14 years. The pre-production construction period would be 12 months with an initial capital investment of $51 million.

Past Producer
The property is host to two significant past producing mines, including the Madsen Mine, which produced 2.4 million ounces of gold. It is located on patented ground with permitted tailings facility.

Infrastructure
Existing mining infrastructure in place, including:

  • 27 levels of underground workings;
  • 1,275 metre deep shaft and headframe; and
  • Mill and Tailings Facility: Existing Environmental Compliance Approval allows for operation of a 1,089 tonne per day mill & CIP circuit.

Madsen Portal and Ramp
The PEA study contemplates underground mining with access via the Madsen Portal and Ramp. The Madsen Portal currently provides ramp access to the upper 150 vertical meters of mine workings including the Austin, South Austin, and McVeigh Deposits. Underground exploration and delineation drilling commenced July 2017.

GOLDSTRIKE DISCOVERS NEW GOLD ZONES IN YUKON TERRITORY
Nov. 21, 2017 – Goldstrike Resources Ltd. (TSX-V: GSR) is pleased to report two significant gold-in-soil discoveries, the ‘Sure Bet’ gold zone on the newly staked Hot Spot property and the “Gold Crest” zone on the newly staked Bull’s Eye property in the Yukon Territory. Both gold mineralized zones remain wide open for expansion.
Discovery of these projects comes as result of Goldstrike’s in-house project generation efforts. Successful project generation resulting in discovery continues to add assets to the company’s portfolio for long-term growth.

Hot Spot Property
Sure Bet zone is a 150 by 150 metre high-grade gold-in-soil anomaly that remains open. Reconnaissance soil sampling in 2017 returned three multi-gram values as high as 4.1 grams per tonne gold. The soil grid contained 97 samples. From this grid:

  • Three samples contained gold ranging from 1021 ppb gold to 4110 ppb.
  • Three samples contained gold ranging from 330 ppb gold to 867 ppb.
  • Ten samples contained gold ranging from 99.8 ppb gold to 245 ppb.
  • Fourteen samples contained gold ranging from 34 ppb gold to 71 ppb.

Rock chip grab samples from hand-dug pits near soil sample sites have also returned up to 389 ppb gold.

Recommended follow-up exploration includes expanding the soil grid to define the full extent of the gold anomaly, mechanized trenching and ground geophysics, all in preparation for drilling. Soil geochemical results from the Sure Bet zone exceed those seen early on at Goldstrike’s Lucky Strike property. The company will apply the same cost effective, proven techniques to the Hot Spot property that resulted in a discovery at Lucky Strike.

The Hot Spot property overlies a steeply incised gold bearing placer creek, coincident with a major contact between a regionally mapped Eocene felsic volcanic plug (porphyritic rhyolite) and older Permian to Proterozoic basement schists. A regional stream sediment sample containing 123 ppb gold (a 99th percentile sample within the Yukon regional stream sediment database) was collected from a stream draining from the property. The source of this anomalous sample remains to be located. Follow-up exploration of the catchment area is a key priority for the next phase of exploration.

Bull’s Eye Property
The Gold Crest zone is a 250 by 200 metre high-grade gold-in-soil anomaly that remains open. 2017 soil sampling returned values up to 215 ppb gold in soils from 121 samples collected. Of the samples collected from this grid, 28 of them contained gold ranging from 31.9 ppb gold to 215 ppb. Rock grab samples from the Gold Crest zone contained up to 253 ppb Au.

Recommended follow-up exploration includes expanding the soil grid to define the full extent of the gold anomaly, mechanized trenching and ground geophysics, all in preparation for drilling.

The Bull’s Eye property is adjacent to and contiguous with K2 Gold Corporation’s Wels property where recent drilling intersected 2.37 g/t Au over 28.5 m in 2017. The southern portion of the property is drained by creeks containing anomalous gold values in regional stream sediment samples.

Terry King, President and CEO of Goldstrike Resources, said, “Lucky Strike is one of the most important new discoveries in the White Gold Camp in 2017. The newly added Hotspot and Bulls Eye properties will complement our portfolio of properties in the White Gold District, all of which are 100% owned without the burden of underlying royalties or property payments. This model for project generation has been the catalyst for Goldstrike’s growth and has allowed us to create important new strategic relationships and partnerships such as our current joint venture with Newmont Mining. We look forward to expanding on all of our exciting new discoveries in 2018.”

KIRKLAND LAKE GOLD TO LIST ON AUSTRALIAN SECURITIES EXCHANGE
Nov. 27, 2017 – Kirkland Lake Gold Ltd. (TSX: KL; NYSE: KL) is pleased to announce that it has received approval from the Australian Securities Exchange (ASX) for a secondary listing of the company as a Foreign Exempt Listing and the quotation of its common shares as Chess Depositary Instruments (CDIs) on the ASX. Trading of the company’s CDIs on the ASX commenced on a normal settlement basis on November 30, 2017 under the symbol “KLA.”

Tony Makuch, President and CEO, Kirkland Lake Gold, said, “We are excited to be listing on the ASX on the one year anniversary of our transformational transaction with Newmarket Gold Inc., which resulted in the acquisition of our Australian assets. Since that transaction, our Fosterville Mine in Victoria has emerged as one of the world’s great high-grade, low-cost gold producers, with production on track to reach 250,000 – 260,000 ounces in 2017 and all-in sustaining costs currently averaging around $500 per ounce. The ASX listing reflects our company’s long-term commitment to Australia as one of our two core markets and provides existing and potential shareholders based in the country, including our 470 employees, with access to an Australian-based trading platform.”

Eddie Grieve, Head of Listings and Issuer Services, ASX, commented: “We are excited to welcome Kirkland Lake Gold to the ASX, where the Company will join some of the world’s leading resource, finance and technology companies. ASX is home to more than 260 international companies from around the world, and we look forward to providing Kirkland Lake Gold with access to our full suite of listing, trading, clearing and settlement services.”

There is no offering of common shares in connection with the secondary listing.
The production profile of Kirkland Lake Gold is anchored from two high-grade, low-cost operations, including the Macassa Mine located in northeastern Ontario and the Fosterville Mine located in the state of Victoria, Australia.


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