The Tower Gold Project, hosts 9 gold deposits along a 9 km long mineralized corridor. This corridor contains two highly prospective geological settings: a northern corridor with sheared mafic and ultramafic volcanic units and syenitic intrusive complexes, and a southern corridor defined by Timiskaming sediments containing banded iron formation (BIF). The majority of resources are hosted within the sedimentary basins to the south.

Resource growth potential exists along the remaining 8 km of largely sediment hosted mineralization along the regional banded iron formation (“BIF”) contact and within untested mafic volcanic rocks along additional splays of the Destor in contact with ultramafic units, where limited historical drilling has already confirmed gold mineralization. The main unconformity which occurs as the mafic volcanic-sediment contact also remains largely untested.

Tower Gold Project Mineral Resources

An updated NI 43-101 Mineral Resource Estimate (“MRE”) was announced by the Company on September 7, 2022 and is shown below covering the Golden Highway deposits and the Garrison deposits.

September 2022 NI 43-101 Mineral Resource Estimate by Deposit – Tower Gold Project

September
2022
Resource
Category Indicated Inferred
Category Tonnes
(t)
Grade
(g/t Au)
Ounces
(oz)
Tonnes
(t)
Grade
(g/t Au)
Ounces
(oz)
Total Open Pit 149,773,000 0.90 4,338,000 223,910,000 0.92 6,652,000
Underground 801,000 4.75 122,000 11,719,000 4.35 1,640,000
Total Open Pit + Underground 150,574,000 0.92 4,460,000 235,629,000 1.09 8,292,000
Breakdown by Deposit
South West Open Pit 16,687,000 0.90 482,000 49,415,000 0.97 1,546,000
Underground 211,000 4.53 31,000 6,725,000 4.26 920,000
Windjammer South Open Pit 42,049,000 0.78 1,058,000 34,461,000 0.97 1,074,000
Underground - - - 704,000 4.16 94,000
Westaway Open Pit 750,000 2.20 53,000 22,106,000 1.95 1,383,000
Underground - - - 2,349,000 4.23 320,000
Windjammer Central Open Pit 28,498,000 0.63 581,000 77,834,000 0.64 1,595,000
Underground - - - - - -
55 Zone Open Pit 4,780,000 1.30 199,000 4,266,000 1.01 139,000
Underground - - - 150,000 3.95 19,000
Discovery Open Pit 3,244,000 1.20 125,000 5,767,000 0.85 158,000
Underground - - - 326,000 3.97 42,000
Garrcon Open Pit 26,787,000 1.01 872,000 971,000 0.83 26,000
Underground 590,000 4.82 91,000 1,466,000 5.22 246,000
903 Open Pit 18,090,000 1.01 585,000 24,127,000 0.75 581,000
Underground - - - - - -
Jonpol Open Pit 8,898,000 1.34 383,000 4,962,000 0.94 151,000
Underground - - - - - -

Mineral resources which are not mineral reserves do not have demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, market or other relevant factors.

Notes:

  1. Mineral Resource Estimates are reported at two different cut-off grades; 0.3 g/t Au for the surface mining scenario and 2.6 g/t Au for the underground mining scenario.
  2. The cut-off grade was determined at a gold price of US$1,750 per ounce and an exchange rate of USD$/CDN$ of 0.78.
  3. The resource estimate is supported by statistical analysis with different high-grade capping applied to each of the deposits ranging from 0.6 g/t Au to 79.0 g/t Au applied on assays composited into one (1) metre composites
  4. The mineral resources presented here were estimated with a block size of 2.5mx2.5mx2.5m utilizing percent blocks and constrained within geological wireframes with a minimum width of 1.50m. Gold was estimated by Ordinary Kriging using locally varying anisotropy variogram models. The maximum range of the variogram models generally are between 65mx25mx2.5m and 80m x 45m x5m. The search ellipse was constrained to selecting composites flagged within each domain.
  5. The mineral resources presented here were estimated by personnel from APEX Geoscience Ltd. using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Standards on Mineral Resources and Reserves definitions and guidelines.
  6. The quantity and grade of reported Inferred Resources are uncertain in nature and there has not been sufficient work to define these Inferred Resources as Indicated or Measured Resources. It is reasonably expected that the majority of the Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with continued exploration.
  7. The historical underground voids from mining in any of the deposit areas have been removed.
  8. Tonnage estimates are based on bulk densities individually measured and calculated for each of the deposit areas. Resources are presented as undiluted and in situ.
  9. This mineral resource estimate is dated September 7, 2022. The effective date for the drill-hole database used to produce this updated mineral resource estimate is March 15, 2022. Tonnages and ounces in the tables are rounded to the nearest thousand and hundred, respectively. Numbers may not total due to rounding.
  10. A new updated NI 43-101 technical report will be produced with updated resources as part of the updated PEA.
  11. Discovery includes the Windjammer North resource. Windjammer South includes the Golden Highway Iron Formation resource. South West North resource is included in South West.
  12. Michael Dufresne, M.Sc., P.Geo. of APEX Geoscience Ltd., who is deemed a qualified persons as defined by NI 43-101 is responsible for the completion of the updated mineral resource estimation.

The Golden Highway property hosts the South West, 55, Westaway, Windjammer South, Windjammer Central and Discovery deposits.

The Golden Highway drill hole database consists of 748 drill holes.

The central portion of the Golden Highway property has been the focus of exploration work and is divided into a North Corridor and South Corridor that together define the Destor-Porcupine Fault Zone (“DPFZ”). These distinct geological corridors contain the bulk of the known gold mineralization discovered at the property to date.

There are no royalties or encumbrances on the Golden Highway property. The Garrison area deposits are subject to net smelter royalties, of which some can be acquired, averaging approximately 1.5%.

The Garrison property hosts several gold mineralized zones, namely Garrcon, 903 and Jonpol. Gold mineralization at the Garrcon deposit occurs primarily as native gold in stock work quartz veins hosted in altered and metamorphosed Timiskaming metasediments.

The Jonpol deposit consists of four high grade gold mineralized zones (JP, JD, RP and East) discovered over a strike length of 1.7 km within the Munro Fault Zone. Jonpol is situated on the Munro Fault, a west striking splay off the north side of the Destor-Porcupine Fault Zone (DPFZ). Gold mineralization is hosted in quartz carbonate narrow veins in mafic and ultramafic host rocks and associated with zones of intense albite, sericite alteration and pyrite mineralization.

903 occurs within linear syenite dykes hosted within sheared ultramafics of the Destor-Porcupine Fault Zone (DPFZ). The syenite dykes have widths ranging from several meters to tens of meters and can be traced along strike for hundreds of meters. Typical mineralized widths range from 10 to 20 m.

Gold mineralization in the main 903 zone is entirely hosted within the syenite dykes and the surrounding ultramafic assemblages are typically barren of mineralization. The 903 zone presents a significant opportunity for resource growth in the Garrison area.