Garrison Property (Garrcon, Jonpol, 903 Zones)

Moneta’s recent acquisition of O3 Mining’s Garrison project asset makes the Tower Gold Project one of the largest undeveloped gold projects in Canada.

The Garrison property includes approximately 4 kilometres of the regionally significant Destor-Porcupine Fault System, a major crustal break.

The Property is favourably situated for gold mineralization astride two major faults, including a 4.3 kilometre portion of the Destor-Porcupine Fault Zone (to the south) and a 2.3 kilometer portion of the Munro Fault (to the north), a splay off the Destor-Porcupine. The rocks underlying the Property are the Kidd-Munro Assemblage of metavolcanics which are unconformably overlain by the Timiskaming Assemblage metasedamentary rocks, composed of conglomerate, wacke-sandstone, siltstone, argillite and schist. The Timiskaming Assemblage rocks are closely associated with the Destor-Porcupine Fault Zone for approximately 65 km from the Hislop Township on the west to the Quebec border on the east.

On the Garrison Gold Property, gold mineralization is found in rocks exposed at surface at numerous locations and is reported in hundreds of drill holes by various operators creating multiple targets for current and future exploration.

The Garrison Gold Property hosts several gold mineralized zones. Previous operators identified and focused their work on three gold mineralized zones that today are known as the Garrcon Gold Deposit, the Jonpol Gold Deposit and the 903 Project. Gold mineralization at the Garrcon Deposit occurs primarily as native gold in stock work quartz carbonate veins hosted in altered and metamorphosed Timiskaming Metasediments. Gold mineralization at the Jonpol Deposit is primarily native gold hosted in quartz carbonate veins hosted in sheared, altered and metamorphosed mafic volcanic rocks. The less advanced 903, Linton, JD Extention and Hastings Zones also hosted on the property provide strong exploration upside with known drill hole intersections.

Gold mineralization in the Garrcon North and Garrcon Shaft sub-zones is hosted by Timiskaming-age metasedimentary sequences, occurring adjacent to the Destor-Porcupine Fault Zone. These metasedimentary sequences have been hydrothermally altered and mineralized in distinct zones that persist to depths greater than 650 meters vertically. Gold occurs in a complex system of stockwork veins hosted in a zone of brecciated and silicified metasediments. The veins are composed predominately of quartz carbonate with and without albite. The stockwork veins are normally less than one centimeter in width with many being only a half centimeter wide or less. Gold occurs primarily as native gold within the stockwork veins with minor dissemination into the vein walls. Higher grade intersections (above 10 g/t) are frequently intersected in intervals where pyrite makes up much less than 1% of the total rock.

The Garrcon Eastern High Grade Zone has been interpreted as a down plunge eastern extension of the Garrcon zone. Hosted within Timiskaming metasediments and contained within a low grade halo is a system of quartz carbonate vein and fracture arrays that parallel the southern contact with the Destor Porcupine Fault Zone. This system is often accompanied by visible gold mineralization and notable alteration surrounding the low grade halo. A continuous body of lamprophyre containing quartz feldspar xenoliths is found in close proximity to the high grade material and is thought to parallel the system. At its western extent the zone is thought to feed into the larger Garrcon low grade zone.

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

The 903 Zone occurs within linear syenite dykes hosted within sheared ultramafics of the Destor-Porcupine Fault zone. 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 20m.

The syenite bodies show considerable chloritic fracturing and the development of narrow (1-5cm) quartz stringers and veins. Sulphide content generally ranges from trace to 5% and higher sulphide content is typically coincident with higher gold grades. Rarely visible gold is observed in the quartz veins and stringers. Peripheral mineralization (Hastings North and South Zones) occurs within Timiskaming type metasedimentary hosts where very strong silicification, brecciation and quartz vein development occur. The peripheral zone’s mineralization is similar to the bulk tonnage Garrcon deposit located 1 km to the east. Mineralization extends over 720 meters of strike length and occurs as multiple parallel zones across a width of 150m. The zone has been traced to depths of 300m with diamond drilling and remains open at depth.

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 on the Garrison Gold Project.

O3 Mining engaged Ausenco Engineering Canada (“Ausenco”) to complete an independent updated NI 43-101 resource estimate and preliminary economic assessment (“PEA”) study on the Garrison Gold project in December 2020. The results of the PEA study are detailed in the published NI 43-101 report completed by Ausenco Engineering Canada, dated 27 January 2020 with an effective date of 25 November 2020 entitled “NI 43-101 Technical Report & Preliminary Economic Assessment of the Garrison Project” (O3 Mining press release dated 14 December 2020). The PEA study highlighted a measured and indicated open pit resource of 1,822,000 ounces contained within 66.3 Mt @ 0.86 g/t Au and an inferred open pit resource of 1,062,000 ounces contained within 45.3 Mt @ 0.73 g/t Au at a 0.30 g/t Au cut-off. The PEA study showed an open pit mining operation consisting of a 12-year mine life with an after-tax NPV5% of C$321MM, IRR of 33% and a 2.3 year payback. The project envisaged open pit mining producing 121,000 oz/pa in years 1 to 8 (94,000 oz/pa LOM), at a strip ratio of 2.7:1 at a cash cost of US$721/oz using a gold price of US$1,450/oz and an exchange rate of US$0.75/C$.

The full NI 43-101 resource estimate and PRA study on the Garrison Gold project can be found under the Garrison PEA tab on this website.