Golden Highway Property

The Golden Highway property hosts numerous gold deposits, gold mineralized zones and gold drill intersections along a 12-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 Golden Highway property hosts the South West, 55, Westaway/West Block, Windjammer South, Windjammer North, and Discovery deposits, the Western, Dyment 3, LC, Windjammer Central, Halfway, Twin Creeks, Landing gold zones and several other gold mineralized zones.

Golden Highway Property - Location of Gold Deposits and Zones

The South West Deposit

The South West deposit currently hosts an indicated resource of 4.53 Mt @ 4.07 g/t Au for 0.59 Moz contained gold and 9.61 Mt @ 4.01 g/t Au for 1.24 Moz contained gold in the inferred category

The South West deposit is a quartz-carbonate vein hosted deposit situated on the DPFZ, where the veins are hosted by moderately to steeply dipping, compressional, brittle-ductile shear zones and faults with locally associated extensional veins and hydrothermal breccias.

In September 2020, Micon International Ltd completed a preliminary economic study (“PEA”) on the South West underground gold deposit entitled A Second Updated Mineral Resource Estimate and Preliminary Economic Assessment for the South West Deposit at the Golden Highway Project. Michaud and Garrison Townships , Black River - Matheson Area, Northeastern Ontario, Report Date: January 22, 2021, PEA Effective Date: September 9, 2020, one of 6 deposits located on the Golden Highway project. The PEA report highlighted an underground bulk mining operation consisting of an 11-year mine life with an after-tax NPV5% of C$236MM, IRR of 30% and a 3.4 year payback, generating C$371MM LOM after-tax free cash flow. The project envisaged producing 76,000 oz/pa at a cash cost of US$590/oz at a gold price of US$1,500/oz and an exchange rate of US$0.77/C$. The open pit resources and new underground discoveries have not yet been subjected to a preliminary economic assessment study at Golden Highway.

The South West Deposit PEA Highlights are as follows:

  • After Tax Net Present Value at a 5% discount rate (“NPV5%”) of C$236 million and after-tax Internal Rate of Return (“IRR”) of 30% at US$1,500/oz gold and exchange rate of US$0.77/C$
  • C$371 million after tax cash flow over the life of mine
  • 75,700 ounces annual production during full production for 719,000 ounces total gold production
  • Peak gold production of 85,700 ounces per annum
  • Cash cost of US$590 per ounce and all in sustaining cost of US$747 per ounce gold
  • Highly leveraged to the gold price with after tax NPV5% of C$423 million and 47% IRR at US$1,900 per ounce gold
  • Initial capital of C$144 million, and sustaining capital of C$136 million
  • After-tax discounted pay-back of 3.4 years, with an 11 year mine life
  • Attractive alternative Toll Milling development option with after-tax NPV5% of C$197 million and IRR of 44% at US$1,500 gold with initial capital costs of C$65 million
  • Potential to expand production from additional deposits located on the Golden Highway Project

The full PEA report can be found under the South West PEA.

Windjammer South Deposit

The Windjammer South open pit resource currently contains 1.10 Moz gold indicated resources and 1.05 Moz gold inferred resources at a 0.3 g/t Au cut-off and the current underground resource at South West currently contains 0.59 Moz gold indicated and 1.24 Moz gold inferred resources at a 2.6 g/t cut-off within a total project gold resource endowment of 4.00 Moz gold indicated and 4.40 Moz gold inferred.

The 2020/2021 expanded drill program intersected significant new gold mineralization outside of the current gold resource. The drilling has intersected gold mineralization within the Gap area, located between the current South West underground deposit and Windjammer South open pit deposit. Significant gold mineralization has been intersected up to 150 m south of and over a strike length of 700 m between the South West and Windjammer South resources.

The Windjammer South deposit is located within Timiskaming sediments south of the regional oxide facies banded iron formation (BIF). The mineralized stockwork zones and vein structures at Windjammer South occur in the same geological setting as the South West deposit located two kilometres to the west.

The regional BIF units (BIF-A and BIF-B) extend from the South West deposit and are separated by a greywacke unit <12 m in thickness. As at South West, the southern BIF A unit is in unconformable contact to the south with a polymictic conglomeratic unit 1 to 10 m in true thickness. Medium to coarse grained greywacke units conformably overlie the conglomerate and they are commonly 100 to 150 m thick.

Eight subvertical northwest-trending fault zones have been identified across the Windjammer South deposit.

The BIF sequence is notably offset by faults in the horizontal dimension. Two main faults of this set are situated in the western and eastern parts of the deposit and have been labeled the W1 and E3 faults respectively (strike 160 - 165 degrees). The W1 and E3 faults host only minor gold mineralization, however, the bulk of the gold mineralization at WJS is focused in the vicinity of these faults and gold zone grades and widths tend to be higher in their proximity. Gold mineralization at Windjammer South deposit is also spatially associated with the southern contact of BIF A and is dominantly hosted within medium- to coarse-grained greywackes. Mineralization within this corridor is associated with extensional quartz-carbonate veining with accompanying

widespread silica-ankerite-sericite-pyrite and lesser hematite-chlorite related alteration products. Gold mineralization has been intersected up to 300 m south of the BIF-A unconformity but tends to be narrower and lower grade within the finer grained greywackes.

The Windjammer Central zones are hosted in a 500-m wide section of the Timiskaming sedimentary sequence north of the Windjammer South deposit. They are bounded by the regional iron formation to the south and to the north by the Kidd-Munro volcanics hosting the Windjammer North deposit. Drilling on Windjammer Central has identified gold mineralization over wide intervals in the sediments both along the volcanic contact and well south into the sediments. The mineralization has been traced along the volcanic/sedimentary contact for a 750 m strike length, a width of up to 350 m southerly into the hanging wall, and to a depth of only 350 m. The gold mineralization is dominantly of the stockwork style associated with pyrite in and around fine quartz stringers and variable scale quartz and quartzcarbonate veining.

Westaway Deposit

The Westaway underground resource currently consists of 662,000 ounces gold inferred resources at a 3.00 g/t Au cut-off. The Company is testing the resource extension potential of the Westaway underground gold resource as part the expanded 2020/2021 winter drill program.

The Westaway (including the West Block zone) deposit is located between the South West deposit and the 55 deposit, south of the south branch of the DPFZ. Significant gold mineralization was discovered at Westaway in historical drill holes dating 1996 and 1997. Moneta has expanded this mineralization to a resource with drilling in 2019 and 2020. In the deposit area, the regional BIF units (BIF-A and BIF-B) form discontinuous lenses along the northern contact between the ultramafic volcanic and the sedimentary sequence.

Gold mineralization is associated with quartz veining and breccias within Timiskaming sediments. They form vein corridors with associated ankerite alteration, silicification and pyritization of the wall rock sediments. Drilling to date has outlined twenty-seven southeast striking (135⁰-145⁰) extensional vein corridors at Westaway. These tension vein arrays are continuous from the Main Fault over a distance of 1.4 km along a southwest strike. In the West Block zone, a set of twelve vein corridors (WB1-WB12) have been outlined, dipping at 60⁰-70⁰ southwest. The West Block vein corridors are generally open below a vertical depth of 600 m.

55 Deposit

The 55 Deposit currently contains an open pit resource of 9,896,000 tonnes at 1.30 g/t Au for a total of 413,000 indicated contained ounces and 5,079,000 tonnes at 1.10 g/t Au for a total of 180,000 inferred contained ounces, and an underground resource of 123,000 tonnes at 4.65 g/t Au for a total of 18,000 inferred ounces.

It hosts gold mineralization in a similar geological setting to South West, within Timiskaming clastic sediments between two iron formation horizons, the northern one being the regional BIF-B along the ultramafic to mafic volcanic contact and the southern being the hematitic BIF-C horizon. The central portion of the 55 deposit consists of a thick sequence (150-180 m) of fine- to medium-grained greywacke hosting gold mineralization. South of the greywacke is a package of iron formations. This southern IF complex consists of several grey hematitic magnetite iron formations (same as the IF-C type at South West) interbedded with greywackes.

Gold mineralization is associated with quartz and quartz-carbonate veining within structural corridors associated with ankerite-sericite-silica-pyrite alteration. Sulphides are dominantly finely disseminated pyrite and scattered coarser-grained subhedral aggregates in veins. Visible gold and rare accessory molybdenite and chalcopyrite have been observed. Additional highgrade gold mineralization occurs when these veins intersect the northern iron formation and cause extensive sulphidization. A geological review of the 55 deposit was conducted by Moneta geologists during the summer of 2020. The update was conducted, because of additional drilling, totaling 2,265 m, in early 2020. The review has led to a change and a better definition of the gold zones at the 55 deposit. It has revealed two main sets of quartz and quartz-carbonate veins resulting in a set of steep zone wireframes and shallower (flat) zone wireframes. These shallow zone wireframes outlined at the 55 deposit are amendable to open pit mining. The zones have been traced for up to 1 km in strike length and drilled to depths of up to 450 m. The 55 mineralized system is currently known to extend for 1 km along the northeast strike, with possibly significant untested potential west of the diabase dyke and to depth.

Discovery Deposit

The Discovery deposit has a current underground mineral resource of 141,000 tonnes at 3.49 g/t Au for a total of 16,000 indicated ounces and 658,000 tonnes at 4.00 g/t Au for a total of 85,000 inferred ounces at a 3.00 g/t Au cut-off.

The Discovery deposit includes a mineralized DZ Main Zone (formerly Upper Zone) and a DZ5 Zone (formerly Contact Zone). It is located on a southern splay of the DPFZ and hosted within altered komatiitic ultramafic rocks of the Kidd-Munro assemblage to the north and the sheared fault contact with conglomerate and greywacke units of the Timiskaming sedimentary rocks to the south.

The Main Zone ultramafic host rocks have been intruded by a series of roughly east-northeast trending (070°) steeply-south dipping quartz-feldspar-syenite porphyry (QFP) to lamprophyre porphyry dykes spatially associated with quartz vein-hosted gold mineralization. The Main Zone is comprised of four parallel stacked mineralized lenses that have been traced for over 500 m in strike length and to a vertical depth of 400 m. The south dipping lenses of mineralization occur over an aggregate width of 175 m. Each lens is 5 to 15 m wide.

The DZ5 Zone is comprised of three mineralized lenses. The gold mineralization in the three lenses is characterized by quartz veining, stockwork and breccias often with altered QFP clasts. The mineralization is associated with pyrite-chlorite and ankerite alteration within the sediments. These lenses are narrower (5 m to 10 m) and potentially higher grade. The deeper lenses have been intersected for 200 m along strike and remain open to depth and on strike

Windjammer North

The Windjammer North deposit has an underground mineral resource of 182,000 tonnes at 3.98 g/t Au for a total of 23,000 indicated ounces, and 813,000 tonnes at 4.08 g/t Au for a total of 107,000 inferred ounces at a 3.00 g/t Au cut-off grade.

The Windjammer North deposit is located within the North corridor volcanics of the northern branch of the DPFZ. The deposit consists of three subparallel zones trending 065° and plunging 80-85° to the west. The zones vary in width from 5 to 15 m and are up to 25 m thick. They have been traced down plunge for over 600 m and tested to depths up to 450 m below surface. Gold mineralization is hosted by massive to brecciated ultramafic metavolcanics that have been altered to a green fuchsite-carbonate assemblage in the western and central portion of the zone with more mafic metavolcanics to the east displaying albite bleaching and sericite alteration. Fracture filling chlorite and specular hematite are common. The mineralization is associated with pyrite-rich white to light grey quartz veining and veinlets. The structural corridor has been intruded by variably altered felsic intrusive dykes.