Tower Gold Project Overview

The Company’s 100% owned flagship Tower Gold Project, located 100 km east of Timmins, is one of the largest undeveloped combined gold deposits in North America. Moneta has one of the largest land positions in the Timmins Camp , the most prolific gold producing belt in Canada and one of the most prolific gold - producing areas in the world , with over 85 million ounces of gold produced to date. The project currently hosts a total indicated resource of 3,967,000 ounces contained gol d and a total inferred resource of 4,399,000 ounces contained gold

The Tower Gold Project combined resource includes:

  • a total of 3,335,000 ounces of open pit indicated resources contained within 116.7 Mt @ 0.89 g/t Au and 2,270,000 ounces of open pit inferred resources contained within 79.4 Mt @ 0.89 g/t Au, at a cut - off grade of 0.30 g/t Au, and
  • 632,000 ounces of underground indicated resources contained within 4.9 Mt @ 4.05 g/t Au and 2,129,000 ounces of underground inferred resources within 15.7 Mt @ 4.21 g/t Au, at a 2.60 g/t Au cut - off grade at South West and 3.00 g/t Au cut - off grade for the other underground deposits

The Tower Gold project contains the combined Golden Highway property and Garrison property which cover 17 kilometres of the Destor Porcupine Fault Zone (DPFZ). The combined project NI 43-101 mineral resource is made up of numerous gold deposits and zones spanning only 8 km of the corridor and found primarily within sedimentary host rocks along a southern splay of the DPFZ. Resource growth potential exists along the remaining 9 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 DPFZ 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.

Longitudinal Section showing Golden Highway and Garrison Properties

In December 2020, Micon International Ltd updated the Golden Highway 43-101 mineral resource estimate 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. The resource update included the new underground gold discovery at Westaway as well as the newly modelled near surface open pit resources at 55 and Windjammer South. The updated resource contains a total indicated resource of 2,145,000 ounces gold contained within 55.3 Mt @ 1.21 g/t Au and a total of 3,337,000 ounces gold contained within 49.7 Mt @ 2.09 g/t Au in the inferred category at a 2.60 g/t Au at South West, 3.00 g/t Au cut-off for the other underground deposits and 0.30 g/t Au for the open pit deposits. The project includes a total of 1,512,000 ounces of open pit indicated resources contained within 50.5 Mt @ 0.93 g/t Au and 1,207,000 ounces of open pit inferred resources contained within 34.0 Mt @ 1.10 g/t Au. The project also includes 632,000 ounces of indicated underground resources contained within 4.9 Mt @ 4.05 g/t Au and 2,128,000 ounces of inferred underground resources within 15.7 Mt @ 4.21 g/t Au. The resource update was conducted upon completion of 2020 drill program which consisted of 36 holes for 18,159.00 m.

The full NI 43-101 Technical report covering the updated mineral resource estimate for the Golden Highway Project can be found under the Technical Reports.

The Company acquired the Garrison project from O3 Mining Inc. in February 2021. O3 Mining commissioned an independent NI 43-101 report by Ausenco Engineering Canada (“Ausenco”), dated January 27th, 2020 with an effective date of November 25th,2020 entitled “NI 43-101 Technical Report & Preliminary Economic Assessment of the Garrison Project. 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 full NI 43-101 resource estimate and PEA for the Garrison property can be found under the Garrison PEA tab on this website.

The acquisition increased the company’s land position by 73% and added 1.8 million ounces gold indicated and 1.1 million ounces gold inferred to Moneta’s previously identified 2.1 million ounces gold indicated and 3.3 million ounces gold inferred for a new combined total of 4.0 million ounces gold indicated and 4.4 million ounces gold inferred.

The Tower Gold project will be large enough to support milling infrastructure and a combined Preliminary Economic Assessment study will be produced on the entire combined project upon completion of a resource update. The South West deposit and the Garrison project have both demonstrated robust economics with excellent cash flow potential and low cash costs.

The Tower Gold Project combined mineral resource and full resource estimate table can be found under the Reserves and Resources tab on this website.

Tower Gold Project Deposits

Regional Geology

The Tower Gold project is located within the southern part of the Archean (ca. 2.7 Ga) Abitibi greenstone belt of the Superior Province of the Canadian Shield in northeastern Ontario. The Abitibi greenstone belt consists of Neoarchean supracrustal rocks divided into tectonic-stratigraphic assemblages that include metavolcanic rocks, synvolcanic intrusions, metasedimentary rocks, calc-alkaline and alkaline intrusive rocks, and late Proterozoic dykes. The dominant regional structures of interest are the Destor Porcupine Fault Zone (DPFZ) and Pipestone Fault Zone with their associated gold deposits and mineralization. The project is located on the DPFZ, a major gold mineralized regional fault structure.

The central portion of the property is the main area of exploration work and can be divided into a North corridor and South corridor that together define the DPFZ, as it crosses Michaud and western Garrison Townships. These distinct geological corridors contain the bulk of the known gold mineralization discovered to date. The North corridor contains the historical DPFZ (north branch) trace in a sequence of Tisdale mafic and ultramafic metavolcanics. The Timiskaming metasedimentary rocks, iron formation and associated rocks are contained in the South corridor.

Tower Gold Project Geological Setting

The South West, Westaway, Windjammer South, Discovery, Windjammer North, and 55 deposits have been classified as structurally controlled orogenic gold deposits in an Archean greenstone belt setting. This deposit type is a significant source of gold mined in the Superior and Slave provinces of the Canadian Shield.

2020/2021 Drilling Program

The 2020/2021 drill program is focused on expanding the Company’s current gold resource base as well as testing new gold targets. A mineral resource update is scheduled upon completion of the drilling, logging, assaying and interpretation of the 2020/2021 drill program results. This is planned to be followed by an expanded and updated PEA covering the combined Tower Gold Project highlighting a significantly larger scope and production profile for the expanded project.

Location Map of Deposits Targeted in the 2020/2021 Expansion Drilling Program

The 2019/2020 drill program at Windjammer South, 55 and the new Westaway discovery expanded the resource footprint by 2 kms to cover over 4 kms of continuous mineralization. The expanded 70,000 m 2020/2021 drill program is designed to test the resource extension potential of the Westaway underground resource, the Windjammer South open pit resource, the Discovery underground deposit and the 55 open pit resource. The drill program will also drill out a resource on the new Halfway gold discovery and test the resource potential of the new gold discovery made in 2020 at the South Basin target where significant mineralization has been intersected. In addition, the drill program will test the near surface lower grade mineralization at South West and test the Gap zone between South West and the Windjammer South open pit resource to the east. Drilling is also planned within the current 55 and Windjammer South open pits to lower the strip ratio and add ounces, where large areas have not yet been drilled and subsequently contain no resources.

Tower Gold 2020/2021 Expansion Drilling Targets