TDG Gold Corp. Reports New NI 43-101 Mineral Resource Estimate Confirming Historical Resources at Nueva Esperanza Project, Maricunga Belt, Chile

WHITE ROCK, BC / ACCESSWIRE / July 8, 2021 / TDG Gold Corp (TSXV:TDG) (the “Company” or “TDG”) is pleased to report that Moose Mountain Technical Services (“MMTS”) and Atticus Chile S.A., independent engineering firms, have prepared the following Mineral Resource Estimate (“MRE”) of the silver-gold resource at the Nueva Esperanza project:

  • Indicated mineral resource of 14.44 million tonnes (“Mt”) containing 54.3 million ounces (“Moz”) silver equivalent (“AgEq”) at an average grade of 117 grams per tonne (“g/t”) AgEq.
  • Inferred mineral resource of 17.06 Mt containing 52.7 Moz AgEq at an average grade of 96 g/t AgEq (see Table 1).

MMTS’s approach to modelling the MRE under NI 43-101 compared to the published historical estimates for the Nueva has resulted in slightly less tonnes and also some tonnage historically classified as Indicated is now reclassified as Inferred. These changes to the resource are primarily due to differences in: cutoff grade, metal prices and smelter terms, classification and confining pit shapes. The differences in modelling methodology also contributed to tonnage and grade differences. No material is considered to be in the Measured category for the current resource due the spacing of drill holes with sufficient QAQC required to be classed as Measured. This can be rectified in future mineral resource estimates by re-sampling of core, coarse rejects and pulps as well as twinning of existing holes and infill drilling.

This additional drilling will be used as the foundation for an updated MRE to be used in future economic studies.

The Nueva Esperanza deposits are within the Maricunga Belt of central Chile. The three deposits modelled for this mineral resource estimate have potential to be extended both laterally and at depth. Targets within these deposits include the Arqueros feeder zones of high-grade Au and Ag, the potential for similar feeder zones in the Teterita deposit and extension to Chimberos known as the Teterita-Chimberos corridor. There are also at least three other under-explored areas within the Nueva Esperanza claims including Chimberos East, the Rifle-Boulder zones and potential porphyry-style mineralization south of Arqueros at Carachitas.

On June 29, 2021, TDG announced that it had entered into a non-binding letter of intent to acquire the Nueva Esperanza project (see TDG’s news release). Investors are cautioned that there is no guarantee that TDG will enter into a binding agreement in respect of, or ultimately complete, the proposed acquisition.

An independent NI 43-101-compliant technical report supporting the MRE will be completed and published once one of the technical report authors has visited the property. This has been delayed due to inclement weather in the vicinity of La Coipa, northern Chile, where the Nueva Esperanza project is located. All other aspects of the NI 43-101 technical report have been completed.

Mineral Resource Estimate

MMTS has prepared the silver-gold MRE for the Nueva Esperanza deposit in accordance with the 2014 CIM Definition Standards and the 2019 CIM Best Practices Guidelines, with an effective date of June 30, 2021.

The total mineral resource estimate for the Nueva Esperanza Project is summarized in Table 1. The resource estimates for each modelled deposit within the project are summarized in Tables 2 through 4 for the Arqueros, Teterita, and Chimberos deposits respectively. Sensitivity to NSR cutoff is also illustrated in the tables by deposit. The cutoff values used for each deposit correspond to the estimated process, and general and administration costs, which vary slightly by deposit as shown in the tables. The resources for all deposits are open pit resources and have been confined to a pit shape with reasonable prospects of eventual economic extraction. These mineral resource estimates include inferred mineral resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as mineral reserves. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.

Ordinary Kriging (“OK”) has been used for gold estimation with capping and outlier restriction implemented to reduce the effect of high-grade outliers and to reduce the coefficient of variation (C.V.).

Table 1 Summary Mineral Resource Estimate

Class

Deposit

Cutoff

ROM

In situ Grades

In situ Metal Content

NSR

Tonnage

NSR

Ag

Au

AgEqv

Ag

Au

AgEqv

(US$/tonne)

(ktonnes)

(US$/tonne)

(gpt)

(gpt)

(gpt)

Moz

koz

Moz

Indicated

Arqueros

18.53

9,170

60.13

83.9

0.372

115.2

24.7

109.6

34.0

Teterita

21.65

1,441

56.22

119.7

0.000

119.7

5.5

0.0

5.5

Chimberos

18.84

3,829

68.45

66.8

0.636

120.3

8.2

78.3

14.8

Total Indicated

varies

14,440

61.94

82.97

0.40

116.98

38.5

187.9

54.3

Inferred

Arqueros

18.53

4,026

39.15

47.0

0.291

71.5

6.1

37.6

9.3

Teterita

21.65

2,354

50.05

102.5

0.000

102.5

7.8

0.0

7.8

Chimberos

18.84

10,675

59.04

51.2

0.627

103.9

17.6

215.2

35.7

Total Inferred

varies

17,055

53.11

57.32

0.46

96.07

31.4

252.8

52.7

Notes for Tables 1 through 4:

  1. Resources are reported using the 2014 CIM Definition Standards and were estimated using the 2019 CIM Best Practices Guidelines.
  2. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
  3. The Mineral Resource has been confined by a pit shell with reasonable prospects of eventual economic extraction, using the following assumptions: 150% pit case using a Au price of US$1800/oz and a Ag price of US$22/oz; US$40.87/oz Au offsite costs (refining, transport, and insurance), US$1.07/oz Ag offsite for Arqueros and Chimberos and US$0.89/oz for Teterita.
  4. Processing Costs of US$14.74, US$ 15.05, US$17.86/oz are assumed for Arqueros, Chimberos and Teterita respectively.
  5. Metallurgical recoveries varying from 71% to 88,1% for Ag and between 82.1 and 90.2 for Au depending on deposit and mineralization type (see Table 5).
  6. The specific gravity is the mean by deposit as: 2.01, 2.42,2.08 for Arqueros, Chimberos and Teterita respectively
  7. Pit slope angles are assumed at 50º.
  8. Numbers may not add due to rounding.

Table 2: Mineral Resource Estimate Sensitivity – Arqueros Deposit

Class

Cutoff

ROM

In situ Grades

In situ Metal Content

NSR

Tonnage

NSR

Ag

Au

AgEqv

Ag

Au

AgEqv

(US$/tonne)

(ktonnes)

(US$/tonne)

(gpt)

(gpt)

(gpt)

Moz

koz

Moz

Indicated

15

10,002

$ 56.52

79.1

0.346

108.1

25.4

111.2

34.8

18.53

9,170

$ 60.13

83.9

0.372

115.2

24.7

109.6

34.0

20

8,843

$ 61.64

85.9

0.383

118.1

24.4

108.9

33.6

30

6,841

$ 72.44

100.0

0.468

139.4

22.0

103.0

30.7

40

5,317

$ 83.24

113.9

0.562

161.1

19.5

96.1

27.5

50

4,170

$ 93.82

127.8

0.657

183.0

17.1

88.0

24.5

100

1,407

$ 141.13

198.0

1.140

293.8

9.0

51.6

13.3

Inferred

15

4,813

$ 35.48

43.5

0.254

64.8

6.7

39.3

10.0

18.53

4,026

$ 39.15

47.0

0.291

71.5

6.1

37.6

9.3

20

3,724

$ 40.76

48.5

0.308

74.4

5.8

36.9

8.9

30

2,190

$ 52.10

57.6

0.443

94.8

4.1

31.2

6.7

40

1,310

$ 63.99

64.9

0.612

116.4

2.7

25.8

4.9

50

808

$ 76.08

71.3

0.800

138.5

1.9

20.8

3.6

100

124

$ 129.90

112.9

1.648

251.4

0.4

6.6

1.0

Total

18.53

13,196

$ 53.73

72.669

0.347

101.8

30.8

147.2

43.2

Table 3: Mineral Resource Estimate Sensitivity – Teterita Deposit

Class

Cutoff

ROM

In situ Grades

In situ Metal Content

NSR

Tonnage

NSR

Ag

AgEqv

Ag

AgEqv

(US$/tonne)

(ktonnes)

(US$/tonne)

(gpt)

(gpt)

Moz

Moz

Indicated

15

1,845

$ 47.90

101.5

101.54

6.0

6.0

20

1,530

$ 54.14

115.1

115.15

5.7

5.7

21.65

1,441

$ 56.22

119.7

119.70

5.5

5.5

30

1,062

$ 67.10

143.9

143.93

4.9

4.9

40

793

$ 78.17

169.2

169.20

4.3

4.3

50

606

$ 88.52

193.7

193.68

3.8

3.8

100

205

$ 127.84

302.9

302.94

2.0

2.0

Inferred

15

3,118

$ 42.23

86.3

86.32

8.7

8.7

20

2,510

$ 48.24

98.7

98.71

8.0

8.0

21.65

2,354

$ 50.05

102.5

102.47

7.8

7.8

30

1,618

$ 61.22

125.7

125.71

6.5

6.5

40

1,134

$ 72.64

149.7

149.73

5.5

5.5

50

829

$ 82.97

171.8

171.78

4.6

4.6

100

206

$ 123.85

268.3

268.27

1.8

1.8

Total

21.65

3,951

$ 50.32

104.707

104.707

13

13

Table 4: Mineral Resource Estimate Sensitivity – Chimberos Deposit

Class

Cutoff

ROM

In situ Grades

In situ Metal Content

NSR

Tonnage

NSR

Ag

Au

AgEqv

Ag

Au

AgEqv

(US$/tonne)

(ktonnes)

(US$/tonne)

(gpt)

(gpt)

(gpt)

Moz

koz

Moz

Indicated

15

4,115

$ 64.88

63.8

0.596

114.0

8.4

78.9

15.1

18.84

3,829

$ 68.45

66.8

0.636

120.3

8.2

78.3

14.8

20

3,727

$ 69.80

67.9

0.651

122.7

8.1

78.1

14.7

30

2,923

$ 82.18

77.6

0.798

144.7

7.3

75.0

13.6

40

2,268

$ 95.86

86.7

0.981

169.2

6.3

71.6

12.3

50

1,820

$ 108.45

94.1

1.163

191.9

5.5

68.0

11.2

100

706

$ 167.13

125.0

2.072

299.2

2.8

47.0

6.8

Inferred

15

11,669

$ 55.46

48.7

0.582

97.6

18.3

218.2

36.6

18.84

10,675

$ 59.04

51.2

0.627

103.9

17.6

215.2

35.7

20

10,371

$ 60.21

52.1

0.642

106.0

17.4

214.1

35.3

30

7,906

$ 71.23

59.5

0.787

125.6

15.1

199.9

31.9

40

6,108

$ 81.96

65.9

0.939

144.8

12.9

184.4

28.4

50

4,752

$ 92.57

71.9

1.095

163.9

11.0

167.3

25.0

100

1,362

$ 151.86

104.9

1.991

272.2

4.6

87.2

11.9

Total

18.53

14,504

$ 61.53

55.365

0.629

108.3

25.8

293.5

50.5

The following factors, among others, could affect the MRE: commodity price and exchange rate assumptions; pit slope angles; assumptions used in generating the Lerchs-Grossmann (LG) pit shell, including metal recoveries, and mining and process cost assumptions. The Company is not aware of any environmental, permitting, legal, title, taxation, socioeconomic, marketing, political, or other relevant factors that could materially affect the MRE. A summary of metal recoveries based on testing to date is shown in Table 5.

Table 5: Summary of Metallurgical Recoveries used for NSR and Ag Equivalent Calculations

Deposit / Ore Type

*Recovery (%)

Grind size, P80

Ag

Au

Arqueros Mantos

80.4

85.1

120

Arqueros Vein

75.5

90.2

120

Arqueros Mantos and Vein

79

87

120

Teterita Massive Silica

74.9

na

120

Teterita Stockwork

71

na

120

Teterita Stockwork and Massive Silica

73

na

120

Chimberos Gold (west)

88.1

82.1

753

Chimberos Silver (east)

No testwork has been carried out

Mineralised Waste

No testwork has been carried out

* μmAg avg. extract at 48 hrs % Au avg. extract at 48 hrs

 

The three block models each had block sizes of 5mx5mx5m. The models are “block percent” models with the domain and percent of each domain within a block coded to the model. Interpolations are done using hard boundaries honoring the domain codes and matching the domain with the composite domain code. The total block grades are then calculated as the weighted average grades of each domain within the block.

MineSight© software was used for geostatistical investigations and interpolations, as well as for the pit shell design and to generate the resource statement.

Grade interpolations have been completed in four passes with the search orientations and distances based on the variography. Ordinary kriging has been used for grade interpolation with validation of the modelled grades achieved by comparison with the de-clustered composite data as defined by the nearest neighbour models.

Previously mined areas for both open pit and underground have been removed from the MRE.

For each deposit Lerchs-Grossmann (LG) pit optimizations have been done on a series of pits with varying price assumptions. The LG input parameters, including: the base case price, offsite costs, final net smelter prices (NSP), the processing, general administrative and mining costs and pit slope are summarized in Table 6. The final pit size chosen is the 150% price case.

Table 6: Net Smelter Prices and LG Cost Input Parameters

 

Price (US$/oz)

Offsite (US$/oz)

NSP ($US/gram)

 

$ 1,800.00

$ 40.87

$ 56.56

AG-Arqueros & Chimberos

$ 22.00

$ 1.07

$ 0.67

AG – Teterita

$ 22.00

$ 0.89

$ 0.68

       
 

Arqueros

Chimberos

Teterita

Processing (US$/tonne)

$ 14.74

$ 15.05

$ 17.86

G&A (US$/tonne)

$ 3.79

$ 3.79

$ 3.79

Total (US$/tonne)

$ 18.53

$ 18.84

$ 21.65

       

Waste Mining (US$/tonne)

$ 1.30

$ 1.35

$ 1.38

Ore Mining (US$/tonne)

$ 2.36

$ 2.38

$ 2.57

       

Pit Slopes (degrees)

50

50

50

Qualified Person

The technical content of this news release has been reviewed and approved by Sue Bird, P.Eng., a qualified person as defined by NI 43-101 and principal of MMTS, an independent contractor to TDG.

About TDG Gold Corp.

TDG is a major holder of mineral claims and mining leases in the historical Toodoggone Production Corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG’s flagship projects are the former producing, high-grade gold-silver Shasta, Baker and Mets mines which are all road accessible, produced intermittently between 1981-2012, and have over 65,000 metres of historical drilling. In 2021, TDG proposes to advance the projects through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and drill testing of the known mineralization occurrences and their extensions. On June 29, 2021, TDG announced that it had entered into a non-binding letter of intent to acquire the Nueva Esperanza silver-gold advanced exploration and development project located in the Maricunga Belt of northern Chile. TDG currently has 64,423,459 common shares issued and outstanding.

ON BEHALF OFTHE BOARD

Fletcher Morgan
Chief Executive Officer
[Football’s Coming Home]

For further information:

TDG Gold Corp.,
Telephone: +1.604.536.2711
Email: [email protected]

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This press release contains forward looking statements within the meaning of applicable securities laws. The use of any of the words “anticipate”, “plan”, “continue”, “expect”, “estimate”, “objective”, “may”, “will”, “project”, “should”, “predict”, “potential” and similar expressions are intended to identify forward looking statements. In particular, this press release contains forward looking statements concerning the completion of the proposed acquisition of the Nueva Esperanza project, the completion of equity financing, and the potential development of the Nueva Esperanza project and the Company’s existing mineral properties, including the completion of feasibility studies or the making of production decisions in respect thereof. Although the Company believes that the expectations and assumptions on which the forward looking statements are based are reasonable, undue reliance should not be placed on the forward looking statements because the Company cannot give any assurance that they will prove correct. Since forward looking statements address future events and conditions, they involve inherent assumptions, risks and uncertainties. Actual results could differ materially from those currently anticipated due to a number of assumptions, factors and risks. These assumptions and risks include, but are not limited to, assumptions and risks associated with the ability of the Company to enter into a binding agreement with respect to the proposed acquisition of the Nueva Esperanza project, the completion of other conditions precedent to such acquisition, including the receipt of regulatory approvals, the completion of the Company’s due diligence review in relation to the proposed acquisition, the state of equity financing markets, and results of future exploration activities by the Company.

Management has provided the above summary of risks and assumptions related to forward looking statements in this press release in order to provide readers with a more comprehensive perspective on the Company’s future operations. The Company’s actual results, performance or achievement could differ materially from those expressed in, or implied by, these forward looking statements and, accordingly, no assurance can be given that any of the events anticipated by the forward looking statements will transpire or occur, or if any of them do so, what benefits the Company will derive from them. These forward looking statements are made as of the date of this press release, and, other than as required by applicable securities laws, the Company disclaims any intent or obligation to update publicly any forward looking statements, whether as a result of new information, future events or results or otherwise.

SOURCE: TDG Gold Corp.

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