Fire Creek Surface Drilling Discovers High Grade Mineralization

VANCOUVER – Klondex Mines Ltd. reported an update on the 2017 surface and underground exploration drill programs at its Fire Creek Mine (“Fire Creek”) located in northern Nevada. Three surface drill holes totaling 4,171 ft (1,271 m) have been completed to-date on the Zeus target. A total of 52 underground drill holes totaling 30,843 ft (9,401 m) were drilled from current underground workings.

This surface exploration drill program was to follow up on the 2016 exploration program which successfully tested a north-south geophysical anomaly located approximately 4,000 ft (1,219 m) west of the current mine workings. These drill results discovered a zone of high grade mineralization within the Zeus structure. Drilling to-date has delineated a mineralized area within the structure approximately 650 ft (198 m) in length and 400 ft (122 m) vertically, within 400 ft (122 m) of surface and is open in all directions. Additional follow up holes are in progress to continue to expand and infill this significant high grade mineralization.

The underground drill program was designed to extend mineralization up and down-dip on the existing veins currently in production. Results continue to support high grade mineralization continuity in both directions outside the currently defined resource. These drill results are not included in the current resource estimate. The up-dip underground drilling above the veins currently in production has returned significant assay results along a strike of 275 ft (84 m) and up-dip by 100 ft (31 m). The down-dip underground drilling below the Karen vein has returned significant assay results along a strike of 150 ft (46 m) and down-dip by 75 ft (23 m).

Brian Morris, Senior Vice President, Exploration, said, “The surface drill results are extremely exciting. These results demonstrate that the potential for high grade mineralization, similar to what is currently being mined at Fire Creek, exists within the Zeus structure about 4,000 feet northwest from our current underground development. Geophysics suggest this is a major 6,500 ft structure. We will continue step-out and infill drilling in this area to fully delineate this high grade structure with the intent to bring it into an inferred resource category in our year-end resource update to be released in Q1 2018.” Mr. Morris continued, “Additionally, the up and down-dip underground drilling was extremely productive, having the potential to add significant new near mine resources to our production profile.”

Mexican Hat Gold Project Step-Out Drilling Results

VANCOUVER, BC – GMV Minerals Inc. has received assay results from the six drill holes testing the eastern limits of the known extent of the Mexican Hat gold deposit. All drill holes intersected significant gold mineralization including 2.07 gpt gold over 18.3 m and 0.73 gpt gold over 18.3 m in MHRC 17-6. Drill hole MHRC 17-3 terminated in mineralization with the last 21.3 m of the hole returning 0.39 gpt gold. All drill holes reported here encountered multiple intercepts of hematized and/or limonitized volcanic rocks that are typically associated with gold mineralization. Samples were collected throughout the extent of the drilling and submitted to Bureau Veritas labs together with certified standards and blanks. 

The current NI #43-101 resource was calculated with a 0.2 gpt gold cut-off, so all assays that exceed the cut off are considered material and further support an open pit heap leach extraction model.

The eastern margin of the mineralization at the Mexican Hat deposit was not well defined by previous drilling, with many of the drillholes completed in a less than optimal orientation to define either the 060o or 120 o trending zones. The Company’s latest drill holes, together with those it completed in 2016 will allow for better modeling of the mineralization in this area which should allow for one or more 060 o trending zones to be added to the seven already identified. Additional zones appear to exist to the northwest of the established resource as identified from the 2017 core drilling.

Greens Creek Produced 2.3 Million Ounces Of Silver In Third Quarter

COEUR D’ALENE, ID – Hecla Mining Company reported that at the Greens Creek in Alaska, drilling in the third quarter targeted the Deep 200 South, East Ore, Gallagher and the Upper Plate zones. Exploration drilling on the Deep 200 South Zone extended the 200 South Bench mineralization south of current resource. Drilling on the East Ore, Gallagher and Upper Plate zones upgraded and expanded the known resource. Strong assay results were also received from previous drilling on the East Ore, Gallagher and Upper Plate zones.

Drilling of the East Ore Zone compares favorably to previously modeled resource estimates at higher elevations and indicate expanded resources to the south and at depth. Drilling intercepted 75.1 oz/ton silver, 0.16 oz/ton gold, 5.32% zinc and 2.67% lead over 9.5 feet in an area without previously identified resources and another exploration drill hole intercepted 11.0 oz/ton silver, 0.13 oz/ton gold, 12.8% zinc and 7.3% lead over 7.7 feet within an area of no previously identified mineralization. Aggressive drilling of the East Ore Zone is planned to continue well into 2018 with the goal of confirming reserves and expanding the known resource.

Assays received for the Upper Plate Ore Zone further upgraded the existing resource and included 75.2 oz/ton silver, 0.09 oz/ton gold, 6% zinc and 3% lead over 5.4 feet. This Upper Plate mineralization is close to underground mine infrastructure and only 300 feet below the mine portal. Drilling of the Gallagher Zone identified new mineralization between current resources and included 11.6 oz/ton silver, 0.09 oz/ton gold, 5.2% zinc and 2.5% lead over 32.3 feet.

Surface drilling was completed on targets in the Gallagher, East Ore and 5250 zones. Drilling on the Gallagher Zone intersected mineralized sheared veins and breccia intervals of up to 100 feet thick containing higher-grade intervals of 1.5 to 4 feet wide that have up to 15% zinc and 4.0 oz/ton silver. This mineralized structure appears to be the same Klaus Shear identified within the mine workings east of the Gallagher fault. The mineralized Klaus Shear now extends 1,500 feet west of the mine and over 3,000 feet north to south. Drilling successfully intercepted the main mine horizon of the 5250 Zone over 2,000 feet south of the known resource showing promising alteration at the contact. Assays from the drilling of a number of holes on the Gallagher and 5250 zones are pending.

Greens Creek mine reported 2.3 million ounces of silver and 12,563 ounces of gold were produced in the third quarter with lower silver production resulted from lower grades due to mine sequencing. The mill operated at an average of 2,391 tons per day (tpd) in the third quarter, a record and 9% higher than the third quarter of 2016.

At the Lucky Friday Mine in Idaho, 88,298 ounces of silver were produced in the third quarter, compared to 887,364 ounces in the third quarter of 2016, with the decrease due to the ongoing strike by unionized employees. Limited production and capital improvements are being performed by salaried staff.

The Casa Berardi mine in Quebec, reported a record 44,141 ounces of gold were produced in the third quarter, including 8,949 ounces from the East Mine Crown Pillar (EMCP) pit, compared to 31,949 ounces in the third quarter of 2016, with the increase primarily due to higher ore throughput and gold grades. The mill operated at an average of 3,545 tpd in the third quarter, an increase of 26% over the third quarter of 2016 due to ramp up of the EMCP pit, and set a monthly throughput record of 3,913 tpd in September.

The AISC, after by-product credits, was $1,091 per gold ounce for the third quarter compared to $1,442 in the third quarter of 2016, primarily due to higher gold production, reduced stripping, and lower capital spending. The higher gold grades and production are expected to continue in the fourth quarter of 2017, combined with the reduced stripping costs at the EMCP pit, the improved cash cost, after by-product credits, and the AISC, after by-product credits, is anticipated to continue in the fourth quarter.

Automation of the 985 drift, which is under construction, is on track for commissioning by the end of the year, as are several other innovations such as the control room.

At the San Sebastian mine in Mexico, 880,885 ounces of silver and 6,342 ounces of gold were produced in the third quarter, compared to 975,610 ounces and 8,189 ounces, respectively, in the third quarter of 2016. The lower silver and gold production was expected with lower ore throughput and lower gold grades. The mill operated at an average of 397 tpd in the third quarter. Work is underway to transition from open pit mining and stockpile feeds to underground mining, which is expected to occur in early 2018. Construction of the ramp to connect the new portal to a ramp being driven from the existing workings continues, and the construction should be completed by year end. The Company has extended the mill agreement until the end of 2020. 

“Exploration success continues at San Sebastian with the discovery of additional high-grade mineralization that has the potential to extend the mine life. When we restarted San Sebastian we had less than a two-year mine plan and now we see potential through 2020 and beyond. As well, new zones are emerging along both the Middle and Francine veins with similar mineralogy as the Hugh Zone, a 1.5 million ton polymetallic resource, so we see the underground sulphide deposit potentially growing to further extend mine life,” said Phillips S. Baker, Jr., President and CEO. “At Casa Berardi, the exploration confirms our view of the exploration potential we believed was possible when we acquired the property. The surface program is expanding the open pits and the underground is identifying new lenses with good grades. Finally, drilling at Greens Creek has discovered high-grade mineralization high up in the mine which could enhance Greens Creek’s already exceptional mine economics.”

Expanding High-Grade Zones And New Targets At Mother Lode Project

VANCOUVER – Corvus Gold Inc. has received assays results from three new drill holes at its Mother Lode project in southern Nevada. The new results are from the Main Target area and continues to confirm and expand the Upper and Lower Zones of the deposit to the North and at depth with broad intercepts. These most recent holes have also intersected a new upper zone of low-grade mineralization in the Crater Flat Tuff (CF Zone), with oxide mineralization that the Company believes could be potentially similar to Corvus’ Sierra Blanca deposit at the North Bullfrog property, as well as the Secret Pass deposit and the Bullfrog deposit to the west. There was little to no historical data on the CF Zone as many parts of this area were never assayed when it was previously drilled. Additionally, hole ML17-005 ended in low-grade mineralization below the Lower Zone target which the Company believes could be indicating a low-grade halo from the Deep Target Zone below.Corvus has recently began a series of deeper holes to 450 meters to evaluate the Deep Target potential in the main intrusive center area of the gold system.

Jeff Pontius, President and CEO said, “These latest results are expanding the overall Mother Lode gold deposit as well as identifying new areas of gold mineralization in the system.  The consistent high-grade nature of the Mother Lode deposit is characteristic of a large, intrusion related, sediment hosted deposit.  In addition, the continuity of the high-grade Mother Lode Structural Zone is encouraging as it is now defining a sizable body that remains open to the north and down dip with multiple +5 g/t gold over 10 meter intercepts.”

Kinross Tracking Towards High End Of 2017 Production

TORONTO, ON – J. Paul Rollinson, President and CEO of Kinross Gold Corporation said, “The company delivered strong third quarter results, bolstered by outperformance at our two Nevada mines and at Tasiast. We are on target to meet our annual guidance range for the sixth consecutive year, and are tracking towards the high end of our production and the low end of both our cost of sales and all-in sustaining cost guidance. We also generated solid cash flow and maintained one of the best balance sheets. Development at our suite of organic projects continues to proceed well. Tasiast Phase One is on track for full commercial production towards the end of Q2 2018 and engineering at Phase Two is now 25% complete. We also expect to start construction at Tasiast Phase Two, Round Mountain Phase W and the Vantage Complex at Bald Mountain early next year, as initial development work at all three projects is already in progress.

Kinross produced 653,993 attributable Au eq. oz. in Q3 2017, compared with production of 684,129 attributable Au eq. oz. in Q3 2016.

Production cost of sales: Production cost of sales per Au eq. oz.2 decreased to $662 for Q3 2017, compared with $719 for Q3 2016, mainly as a result of lower cost of sales per ounce at Round Mountain in Nevada, Bald Mountain in Nevada, and Fort Knox in Alaska.

At Fort Knox, production increased compared with Q2 2017 mainly due to more ore processed and ounces recovered from the heap leach, but decreased slightly compared with Q3 2016 primarily due to lower tonnes placed on the heap leach pad. Cost of sales per ounce was largely in line with Q2 2017 and was lower compared with Q3 2016 mainly as a result of a decrease in operating waste mined and lower contractor costs as the site began to transition more of its maintenance function to self-perform.

Kinross’ Nevada operations outperformed during the quarter as both Round Mountain and Bald Mountain increased production and lowered cost of sales per ounce quarter-over-quarter and year-over-year. Round Mountain increased production by 30% over Q3 2016 mainly due to the highest mill grades since 2003, the year Kinross first started operating the mine. Production increased quarter-over-quarter mainly due to higher mill grades and recoveries. The high mill grade was also the main driver for the decrease in cost of sales per ounce, which was at its lowest level in five years. Lower labour and contractor costs also contributed to the 25% reduction in cost of sales per ounce compared with Q3 2016. Bald Mountain achieved record production during the quarter and continues to be on track to double annual production for 2017 compared with full-year 2016. Production increased compared with Q2 2017 and Q3 2016 mainly due to higher grades and a significant increase of tonnes placed on the heap leach pads. Cost of sales per ounce decreased compared with Q2 2017 and Q3 2016 mainly due to higher grades and more gold equivalent ounces sold. Additionally, maintenance costs decreased compared with Q3 2016. 

Kettle River-Buckhorn in Washington produced approximately 17,000 gold equivalent ounces from its stockpiles during the quarter, as the last batch of ore was hauled from Buckhorn in July. Reclamation is now well underway at the site and exploration is continuing in the region. At Paracatu in Brazil, production was lower quarter-over-quarter and year-over-year due to the temporary curtailment of mining and Plant 2 operations as a result of lower than average rainfall in the region. The curtailment of mining and Plant 2 began in early July and continued through October, with Plant 1 running intermittently during that month mainly due to the slow start of this year’s rainy season. The decrease was partly mitigated by production from the tailings reprocessing at Plant 1, which was higher than expected. Cost of sales per ounce was higher due to the reduction in production and gold equivalent ounces sold. Mining and processing activities re-started in early November at Paracatu, as the area received sufficient rainfall in late October. Paracatu is expected to resume normal production in Q4 as sufficient water becomes available. The Company continues to advance its water mitigation efforts to prepare for potential lower rainfall levels going forward. These efforts include securing ground water rights and installation of wells around the site.

In Russia, the region performed well in Q3 2017 with production from Kupol and Dvoinoye largely in line with Q2 2017. Production decreased compared with Q3 2016 mainly due to anticipated lower grades. Cost of sales per ounce was lower compared with Q2 2017 primarily as a result of lower fuel and maintenance costs and continued to be among the lowest in Kinross’ portfolio. Cost of sales per ounce increased year-over-year mainly due to the lower grades, higher operating waste mined and unfavorable foreign exchange rates.

Tasiast In Africa performed well during the quarter, as production increased 10% compared with Q2 2017 primarily due to strong mill grades, the highest since 2010, and more tonnes processed from the dump leach. Cost of sales per ounce was lower compared with Q2 2017 mainly due to the higher grades and an increase in gold equivalent ounces sold. Production was higher and cost of sales per ounce lower compared with Q3 2016 due to higher mill grades and the impact of the temporary suspension of mining last year. And in Africa at Chirano, production was higher compared with Q2 2017 and Q3 2016 mainly due to, respectively, better mill performance as a result of a more stable supply of electricity from the country’s power grid, and higher grades. Cost of sales per ounce was lower quarter-over-quarter mainly as a result of less operating waste mined and lower mining costs due to the cessation of open pit mining. Cost of sales per ounce was lower year-over-year mainly due to lower overhead and energy costs.

Cortez Hills Deep South To Expand Mining In Lower Zone

TORONTO, ON – Barrick Gold Corporation reported that the Cortez Hills Deep South Underground Project, Nevada is expected to contribute average underground production of more than 300,000 ounces per year. The project remains on schedule and within budget, with initial capital costs estimated to be $153 million. The Deep South project will utilize infrastructure which has already been approved under current plans to expand mining in the Lower Zone. This includes construction of new twin declines, a conveyor haulage system, fuel and lubrication system, shotcrete and cemented rock fill plants, and an underground maintenance shop.

At the end of the third quarter, the twin declines had advanced a total of 6,581 feet, or 44 percent of the total distance, in line with schedule. Mass excavations for key underground infrastructure have also begun, and contracts for underground construction works have been awarded. Activities in the fourth quarter will include mobilizing contractors, advancing the twin declines, and completing temporary warehouses, in addition to continued procurement for construction activities.

Permitting for Deep South was initiated in 2016 with the submission of an amendment to the current Mine Plan of Operations to the Bureau of Land Management. Permitting is expected to take approximately three to four years, including the preparation of an Environmental Impact Statement. A record of decision is expected by 2020. On this basis, initial production from Deep South could commence by 2023.

The Goldrush Project in the Cortez District has the potential to become the company’s newest underground operation in Nevada, with first production expected as early as 2021, and sustained production by 2023. The mine is expected to produce approximately 450,000 ounces of gold per year during its first full five years in operation. The first phase of the project involves the construction of an exploration twin decline to provide access to the orebody at depth, which will enable further exploration drilling, as well as the conversion of existing resources to reserves. The exploration declines can be converted into full production declines in the future.

Initial site preparation works for the portal have been completed, and construction on the portal pad is now under way. Barrick has also completed a surface drilling program in the Red Hill zone of the deposit, which is expected to support additional resource conversion.

Work during the fourth quarter will focus on advancing portal pad construction, and the selection of an underground contractor for decline development, which is expected to begin in early 2018. Permitting is expected to commence in 2018, initiating a three- to four-year Environmental Impact Statement process.

At the Turquoise Ridge Third Shaft Project, Nevada the development of a third shaft, combined with improvements in mining productivity, Turquoise Ridge has the potential to increase output to an average of 500,000 ounces per year (100 percent basis). The project is expected to require additional underground development and shaft construction. All necessary permits for a third shaft are already in place.

Surface preparation works began in the third quarter, and included moving 95,000 cubic yards of earth, setting up storm water diversion infrastructure, and extending utilities to the shaft site. This work is expected to be complete by the end of 2017. Contracts and materials to support medium and high voltage electrical distribution, water handling and sewage treatment have been purchased, and a tender process is now open for the shaft sinking contract.

In keeping with the phased approach, construction on a ventilation shaft could begin in the second half of 2018, at roughly half the total capital expenditure of a full production shaft. This ventilation shaft would allow for expanded underground mining using existing infrastructure, and could be equipped and converted to a full production shaft to increase the mine’s output to approximately 500,000 ounces per year.

During the quarter, Turquoise Ridge also took delivery of its first road header. Building on the successful use of this technology at Cortez, the road header will enable the mine to transition to mechanical cutting, rather than traditional drilling and blasting, improving overall productivity and throughput at the operation, and supporting the increased hoisting capacity that a third shaft will support.

Barrick reported that in the third quarter, lower revenues, earnings, and cash flow for the quarter reflect lower gold production compared to the prior-year period. Despite these factors, a stronger balance sheet and robust cash flow generation allowed us to increase investments in the future of our business, with the ultimate objective of growing free cash flow per share over the long term.

The company allocated more capital to our pipeline of low risk, organic projects, located at or near Barrick’s core operations. These projects have the potential to contribute more than one million ounces of annual production to Barrick, beginning in 2020. In addition to organic growth and exploration, the impact of our ongoing investments in digital transformation and innovation, including improvements in safety, productivity, efficiency, and transparency, are expected to accelerate as we broaden the implementation of these projects across operations.

KELVIN DUSHNISKY, President, said, “Achieving and maintaining a strong balance sheet remains a top priority. So far this year, we have reduced our total debt by nearly $1.5 billion, exceeding our target of $1.45 billion for 2017. During the third quarter, we completed the redemption of approximately $731 million of May 2023 notes, and fully repaid the amounts outstanding on our Pueblo Viejo project financing agreement. Our goal is to reduce our total debt to $5 billion by the end of 2018, using cash flow from operations, and through further portfolio optimization, including potential divestments and the creation of new joint ventures and partnerships. The Company will continue to pursue debt reduction with discipline, taking only those actions that make sense for the business, on terms we consider favorable to our shareholders.

Barrick produced 1.243 million ounces of gold in the third quarter. This compares to 1.381 million ounces, in the prior-year period. Production levels were expected to be lower in the third quarter, with higher gold production and lower costs expected in the fourth quarter. We have narrowed our full-year gold production and cost guidance ranges. We expect full-year gold production to be 5.3-5.5 million ounces, at a cost of sales3 of $790-$810 per ounce, and all-in sustaining costs4 of $740-$770 per ounce. This compares to our most recent production guidance of 5.3-5.6 million ounces, at a cost of sales3 of $780-$820 per ounce, and all-in sustaining costs4 of $720-$770 per ounce.

The Company produced 115 million pounds of copper in the third quarter, at a cost of sales3 of $1.67 per pound, and all-in sustaining costs7 of $2.24 per pound. This compares to 100 million pounds, at a cost of sales3 of $1.43 per pound, and all-in sustaining costs7 of $2.02 per pound, in the third quarter of 2016. Our full-year copper production guidance range has narrowed to 420-440 million pounds. We have increased our copper cost of sales3 guidance to $1.70-$1.85 per pound, primarily as a result of higher costs in Zambia. Our copper all-in sustaining cost guidance range has narrowed to $2.20-$2.40 per pound.”

The company aims to cultivate a high-performance culture defined by the following principles: a deep commitment to partnership, consistent execution, operational excellence, disciplined capital allocation, and continual self-improvement. Barrick is obsessed with talent, and seek out fresh perspectives from other industries, challenging ourselves to think differently as it transforms the company into a leading 21st century company.

Final 2017 Drill Results At The Yerington Copper Project

VANCOUVER, BC – Quaterra Resources Inc. and its subsidiary Singatse Peak Services LLC (SPS) announced results from the last three holes of a 13-hole, 26,056-foot drill program at its Yerington Copper Project. Drilling, which began in March 2017, tested targets across the Company’s 51-square-mile land package located in the historic Yerington Copper District of Nevada.

The three holes reported today (YM-043-17, YM-044-17 and YM-045-17) tested the depth extension of mineralization in and around the historic Yerington pit. (Hole YM-043-17, drilled at – 55 degrees, intersected 1,269.5 feet averaging 0.15% copper. Hole YM-045-17, also drilled at – 55 degrees, collared in the pit about 900 feet further east, intersected several thinner intervals with grades ranging to 0.55% copper, including a shallow oxide zone. Hole YM-044-17, drilled on the northwest rim of the Yerington pit at – 50 degrees, intersected several narrow zones of mineralization averaging less than 0.2% copper.

These results, in combination with previously announced holes YM-041A-17 and YM-042-17, have extended sulfide mineralization from 600 to 800 feet below the currently defined resource across a strike length of 4,400 feet. The absence of higher grade mineralization in these widely spaced holes decreases the likelihood that better grades over appreciable widths exist at greater depth below the pit.

Mineralization, primarily chalcopyrite, is hosted in a quartz monzonite-quartz monzonite porphyry complex and occurs as sheeted veins and vein swarms that are steeply dipping and strike northwesterly parallel to the long axis of the pit. Copper grades are directly related to vein intensity and spacing, which vary markedly over short distances.

Quaterra’s Yerington Copper Project is located in the historic Yerington Copper District, about 70 miles southeast of Reno, Nevada. It consists of the Yerington pit sulfide and oxide deposit previously mined by Anaconda; the MacArthur oxide and sulfide deposit; the Bear porphyry copper deposit; and several untested exploration targets. Quaterra’s 51-square-mile land package is situated in a mining-friendly jurisdiction with a history of copper production and good infrastructure. It also owns valuable water rights in the district. Quaterra has been active in the Yerington District since 2006, and has released NI 43-101-compliant oxide and sulfide resources at both MacArthur and Yerington, and a preliminary economic assessment at MacArthur.

Drill Results From Western and Dip Slope Zones At Goldstrike

VANCOUVER, BC – Liberty Gold Inc. reported drill results from the Western Zone and Dip Slope Zone at the 100% controlled Goldstrike Oxide Gold Project in southwestern Utah. Throughout the Historic Mine Trend, the aggressive exploration program is focused on building continuity between the target areas and linking them together over large areas into continuous zones of mineralization.

The current drill results from the Western Zone are from holes drilled along the north margin of the Moosehead-Caribou Pit. Goldstrike is located in the eastern Great Basin, immediately adjacent to the Utah/Nevada border, and is a Carlin-style gold system. 

Approximately 1000 grams of coarse reject material are pulverized and screened. Two splits of the fine fraction are assayed, as well as all material that does not pass through the screen (the coarse fraction). The final gold assay reported is a weighted average of the coarse and fine fractions. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 51 multi-element geochemical suite by ICP-MS. ALS Geochemistry-Reno is ISO 17025:2005 Accredited, with the Elko prep lab listed on the scope of accreditation.

Goldstrike is an early-stage exploration project and does not contain any mineral resource estimates as defined by NI 43-101.  The potential quantities and grades disclosed herein are conceptual in nature and there has been insufficient exploration to define a mineral resource for the targets disclosed herein. It is uncertain if further exploration will result in these targets being delineated as a mineral resource. 

New Near Surface Oxide Gold Zones At Pamlico Project

VANCOUVER, BC – Newrange Gold Corp. reported drilling at the Company’s Pamlico project in Nevada has delineated two new high-grade gold zones now referred to as the K-Zone and N-Zone. Both new trends were initially recognized from Newrange’s surface geologic mapping in the area of the Merritt Zone (M-Zone). The Company has received assay results for two of the four drill holes currently completed in the K-Zone, with an intercept of 16.87 grams gold per metric tonne (g/T Au) over 4.6 meters as reported for P17-32 in the Table below. In addition, assay results for holes P17-21, 28 and 29 indicate the N-Zone is parallel to the adjacent M-Zone, with results of 12.60 g/T Au over 3.0 meters in P17-29 and 4.19 g/T Au over 21.3 meters in P17-21.

The exploration results to date strongly support the presence of a NW-oriented gold corridor with a width of approximately 65 meters (~220 ft) within a broader corridor that, as indicated by historic mining and recent mapping, may have a width of over 245 meters (~800 ft). Mapping along trend to the SE of the current drill area indicates that the same NW-oriented structures are still present for at least 365 meters (~1,200 ft) in historic workings and other exposures. Strike potential to the NW is covered and unknown at this time.  Drilling continues to suggest that the bulk of the gold mineralization is in iron oxide dominated structures and stockwork veining. No visible gold has been observed in the Company’s drill logging and underground sampling, indicating a fine grained gold distribution. As well, all mineralized intervals are completely oxidized and within 75 meters (~250 ft) of the surface. Drilling in the J-Zone indicates the presence of additional mineralized structures, increasing the potential width of this high-grade area. Almost all drill holes to date have intersected gold mineralization of some significance. None of the current drilling tests the more extensive Pamlico Ridge portion of the system which could extend for more than 2.4 kilometers to the southeast as indicated by historic mine workings and prospects. Further mapping, sampling and permitting will allow initial drill testing of this area by January, 2018.