| |
|
|
Average Grade |
Metal Content |
| Classification |
Zone |
Tonnage
Mt |
Gold
g/t |
Silver
g/t |
Copper
% |
Lead
% |
Gold
oz |
Silver
Moz |
Copper
Mlb |
Lead
Mlb |
| Indicated |
HM |
0.736 |
7.02 |
74.8 |
0.18 |
0.077 |
165,993 |
1.8 |
2.87 |
1.25 |
| Total Indicated |
|
0.736 |
7.02 |
74.8 |
0.18 |
0.077 |
165,993 |
1.8 |
2.87 |
1.25 |
| |
|
|
|
|
|
|
|
|
|
|
| Inferred |
HM |
1.747 |
6.33 |
35.9 |
0.35 |
0.107 |
355,553 |
2.0 |
13.32 |
4.14 |
| |
HS |
3.354 |
3.13 |
146.0 |
0.03 |
0.178 |
337,013 |
15.7 |
2.19 |
13.20 |
| |
SR |
0.445 |
8.68 |
4.9 |
0.04 |
0.001 |
124,153 |
0.1 |
0.36 |
0.00 |
| Total Inferred |
|
5.545 |
4.58 |
100.0 |
0.13 |
0.142 |
816,719 |
17.8 |
15.87 |
17.34 |
Notes:
1. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) definitions), as incorporated by reference in NI 43-101, were followed for Mineral Resource estimation.
2. Mineral Resources are estimated at a cut-off grade of 2.0 g/t AuEq.
3. AuEq values were calculated using a long-term gold price of US$1,300 per ounce, silver price at US$20 per ounce and copper price at US$2.5 per pound and an exchange rate of US$/C$1.20. The AuEq calculation included provisions for metallurgical recoveries, treatment charges, refining costs and transportation.
4. Bulk density ranges from 2.69 t/m3 to 3.03 t/m3, depending on the domain.
5. Differences may occur in totals due to rounding.
6. The Qualified Person responsible for this mineral resource estimate is Philip A. Geusebroek, P. Geo., RPA. |
Mineral Resources Sensitivity by Cut-off Grade
| |
|
Average Grade |
Metal Content |
Cut-off g/t
AuEq |
Tonnage
Mt |
Gold
g/t |
Silver
g/t |
Copper
% |
Lead
% |
Gold
oz |
Silver
Moz |
Copper
Mlb |
Lead
Mlb |
| Total Indicated |
|
|
|
|
|
|
|
|
| 5.0 |
0.372 |
10.99 |
131.3 |
0.20 |
0.120 |
131,463 |
1.6 |
1.7 |
0.99 |
| 4.0 |
0.465 |
9.57 |
111.2 |
0.20 |
0.105 |
142,911 |
1.7 |
2.0 |
1.07 |
| 3.0 |
0.592 |
8.18 |
90.5 |
0.19 |
0.090 |
155,730 |
1.7 |
2.5 |
1.18 |
| 2.0 |
0.736 |
7.02 |
74.8 |
0.18 |
0.077 |
165,993 |
1.8 |
2.9 |
1.25 |
| 1.0 |
0.862 |
6.19 |
65.2 |
0.17 |
0.069 |
171,441 |
1.8 |
3.1 |
1.32 |
| Total Inferred |
|
|
|
|
|
|
|
|
| 5.0 |
2.158 |
8.25 |
145.7 |
0.21 |
0.216 |
572,444 |
10.1 |
9.8 |
10.26 |
| 4.0 |
2.972 |
6.78 |
133.4 |
0.18 |
0.189 |
648,212 |
12.8 |
11.9 |
12.36 |
| 3.0 |
4.136 |
5.52 |
118.6 |
0.15 |
0.163 |
734,275 |
15.8 |
14.0 |
14.84 |
| 2.0 |
5.545 |
4.58 |
100.0 |
0.13 |
0.142 |
816,719 |
17.8 |
15.9 |
17.34 |
| 1.0 |
6.448 |
4.09 |
90.9 |
0.12 |
0.127 |
847,996 |
18.9 |
17.0 |
18.07 |
Notes:
1. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014) definitions), as incorporated by reference in NI 43-101, were followed for Mineral Resource estimation.
2. Mineral Resources are estimated at a cut-off grade of 2.0 g/t AuEq.
3. AuEq values were calculated using a long-term gold price of US$1,300 per ounce, silver price at US$20 per ounce and copper price at US$2.5 per pound and an exchange rate of US$/C$1.20. The AuEq calculation included provisions for metallurgical recoveries, treatment charges, refining costs and transportation.
4. Bulk density ranges from 2.69 t/m3 to 3.03 t/m3, depending on the domain.
5. Differences may occur in totals due to rounding.
6. The Qualified Person responsible for this mineral resource estimate is Philip A. Geusebroek, P. Geo., RPA. |
PEA Summary
| Base Case: $1,350/oz gold, $12/oz silver, $3.00/pound copper, $1.00/pound lead and an exchange rate of 0.70 (US$/C$) |
| Net present value (NPV5%) after tax and mining duties |
US$108 million |
| Internal rate of return (IRR) after tax |
23.6% |
| Pre-production capital costs |
US$88 million |
| After tax payback period |
36 months |
| All in sustaining costs (AISC) per ounce gold |
US$670 |
| PEA life of mine (LOM) |
13 years |
| LOM metal production gold equivalent ounces |
590,040 AuEq ounces |
| LOM average diluted head grade |
6.42g/t AuEq |
| Peak year annual production (year three) |
88,660 AuEq ounces |
| Average LOM payable production |
45,400 AuEq ounces |
| LOM mineralized material mined |
3.4 Million tonnes |
| Mining scenario tonnes per day |
900 tonnes |
The Company cautions that the PEA is preliminary in nature in that it includes Inferred Mineral Resources which are considered too speculative geologically to have the economic considerations applied to them that would enable them to be characterized as mineral reserves, and there is no certainty that the PEA will be realized. Mineral resources that are not mineral reserves do not have demonstrated economic viability.
The PEA was prepared in accordance with National Instrument 43-101 (“NI 43-101”) by MineFill Services Inc. of Seattle, WA with other contributors including Roscoe Postle Associates Inc. (RPA), now part of SLR Consulting Ltd. (SLR), (QP for updated mineral resource estimate) and One-Eighty Consulting Group (environmental, permitting and social). The Company plans to file the PEA on SEDAR at www.sedar.com within 45 days in accordance with NI 43-101.
¹All-in sustaining cost (“AISC”) is a Non-GAAP measure. The Company has calculated AISC using operating costs as a basis, and then adjusting it in accordance with the World Gold Council guidance.
Bria Target Rock Samples*
| Sample ID |
Au (g/t) |
Ag (g/t) |
Cu ppm |
Pb ppm |
Zn ppm |
| W725805 |
11.05 |
212 |
548 |
1445 |
203 |
| W725900 |
5.77 |
17.05 |
58.8 |
1770 |
506 |
| W725898 |
4.28 |
109 |
83.9 |
5020 |
41 |
| W725804 |
1.74 |
199 |
138.5 |
5430 |
616 |
| W725802 |
0.823 |
6.78 |
45.7 |
288 |
73 |
| W725899 |
0.757 |
448 |
36.5 |
8500 |
1480 |
| W725803 |
0.557 |
9.13 |
126 |
246 |
64 |
| W725897 |
0.299 |
201 |
141 |
5240 |
878 |
| *Approximately 1-2kg of material was collected for analysis and sent to ALS Lab in Thunder Bay, ON for preparation and then to Vancouver BC for analysis. All samples are assayed using 30g nominal weight fire assay with ICP finish (Au-ICP21) and multi-element four acid digest ICP-AES/ICP-MS method (ME-MS61). Where ICP21 results were > 5 g/t Au the assay were repeated with 30g nominal weight fire assay with gravimetric finish (Au-GRA21). Where MS61 results were greater or near 100 ppm Ag the assay were repeated with ore grade four acid digest method (Ag-OG62). QA/QC programs for 2017 rock grab samples using internal standard samples, lab duplicates, standards and blanks indicate good accuracy and precision in a large majority of standards assayed. Grab samples are selective in nature and cannot be consider as representative of the underlying mineralization. |
The southern target area, Kombi, has been defined by historical stream sediment samples taken in 2019, which Tropical’s technical team believes are robust due to the sample collection methodology and assaying methods. One of the high-priority areas at Kombi is defined by a two kilometer trend of gold-in-stream sediments within multiple adjoining drainage basins, demonstrating peak values of 0.91 g/t gold. This continuous trend of gold over multiple catchment areas coincides geologically with the Betty Creek Formation that also hosts the defined Homestake Ridge deposits.
The second high-priority area within Kombi has been identified through stream sediment samples from adjoining dranage basins that define a one-kilometer-long trend at the southern limit of the property. The anomalies are defined by strong gold, silver, copper, antimony and arsenic responses that coincide with the Stuhini group formation, which hosts the former producing high-grade Snip mine that produced approximately one million ounces of gold at an average grade of 27.5 g/t (1).
1. Source: https://www.skeenaresources.com/projects/snip
The 2018 2,482 metre drill program at the South Reef target consisted of six drill holes, that did not produce any significan tresults, although sporadic gold mineralization was encountered in each drill hole as presented below in Table 2.
Table 2:
Intercepts Highlight 2018 – South Reef
| Hole ID |
From (m) |
To (m) |
Interval (m) |
Au (g/t) |
Ag (g/t) |
| 18HR-306 |
347 |
349 |
2 |
3.11 |
1.6 |
| 18HR-307 |
222 |
224 |
2 |
1.06 |
0.6 |
| |
302 |
304 |
2 |
1.43 |
1.4 |
| 18HR-310 |
74 |
76 |
2 |
1.96 |
0.4 |
| True widths of mineralization are unknown based on current geometric understanding of the mineralized intervals. |
The 2017 summer drill program was designed to test two of seven major target areas across the project with a focus on expanding the South Reef mineralized zone as well as the potential northwestern extension to the Homestake Main deposit. Drilling was discovery oriented which targeted new potential zones of mineralization or significant extensions. None of the drilling occurred within 500 metres of the Homestake Main and Homestake Silver deposits, leaving them open for expansion.
The drilling from South Reef demonstrated that the high-grade mineralization has a 15 - 20 degree shallow plunge to the northwest with the width of the structure and associated breccia’s increasing in the same direction. The shallow plunge observed at the South Reef main zone is similar to that observed at the Homestake Main and Silver deposits and represents an excellent opportunity to significantly expand mineralization on the project. The Company also discovered a 600-metre long gold-in-soil anomaly that coincides with the northwest direction of plunging high-grade mineralization that remains undrilled demonstrating the highly prospective nature of this structural corridor.
The Company’s 37 hole (14,850 metres) program at Homestake Ridge, which was completed under budget, represented its first field season on the project. Total drilling costs were approximately $400 per meter showing that this area of the Golden Triangle can be explored in an efficient manner.
Significant results from the South Reef diamond drilling are provided in the table below. No significant results were obtained from the Homestake Main extension drilling or other holes.
Significant Intercepts 2017 – South Reef
Hole
ID |
|
From
(m) |
To
(m) |
Interval
(m) |
Au
(g/t) |
Ag
(g/t) |
| 17HR-283 |
|
137 |
155 |
18 |
1.29 |
2.3 |
| |
including |
141 |
145 |
4 |
4.18 |
3.8 |
| 17HR-286 |
|
138 |
162 |
24 |
0.62 |
1.5 |
| |
|
178 |
186 |
8 |
2.67 |
1.9 |
| |
including |
178 |
180 |
2 |
5.59 |
3.4 |
| 17HR-293 |
|
52 |
80 |
28 |
0.51 |
2.2 |
| |
|
276 |
290 |
14 |
1.23 |
1.6 |
| |
including |
286 |
290 |
4 |
3.31 |
3.6 |
| 17HR-296 |
|
6 |
22 |
16 |
0.66 |
2.3 |
| 17HR-301 |
|
59 |
69 |
10 |
4.12 |
1.8 |
| |
including |
61 |
63 |
2 |
18.20 |
6.4 |
| 17HR-302 |
|
134 |
146 |
12 |
1.45 |
3.3 |
| |
including |
138 |
142 |
4 |
3.19 |
2.5 |
| 17HR-303 |
|
258 |
288 |
30 |
2.00 |
3.5 |
| |
including |
264 |
268 |
4 |
6.03 |
2.7 |
| |
including |
278 |
280 |
2 |
11.80 |
6.0 |
| 17HR-304 |
|
70 |
80 |
10 |
1.03 |
1.8 |
| * Composite interval includes no less than 4m < 0.2ppm Au True widths are estimated at between 50 – 75% of reported intervals |
Communities and the Environment
The pursuit of environmentally sound and socially responsible mineral development guides all of Tropical’s activities as the Company understands the broad societal benefits that responsible mining can bring, as well as the risks that must be managed through the implementation of sustainable development practices. Tropical strives to maintain the highest standards of environmental protection and community engagement at all of its projects.
Tropical considers sustainability to include the pursuit of three mutually reinforcing pillars: environmental and cultural heritage protection; social and community development; and, economic growth and opportunity. The Company assesses the environmental, social and financial benefits and risks of all our business decisions and believes this commitment to sustainability generates value and benefits for local communities and shareholders alike.
Tropical places a priority on creating mutually beneficial, long-term partnerships with the communities and countries in which it operates, and with its shareholders, respecting their interests as its own. At the community level, the Company works to establish constructive partnerships to address and contribute to local priorities and interests and ensure that local people benefit both socially and economically from its activities.
Tropical has undertaken early and ongoing engagement with respect to the Homestake Ridge gold project since January 2017. Engagement goals include providing Indigenous groups, residents of nearby communities and other regional interests with corporate and project-related information, details of work programs and other activities being undertaken in the field, project updates and opportunities for feedback and local involvement in the Homestake Ridge project.
Tropical’s approach to Indigenous and stakeholder engagement provides opportunities and benefits through:
- the provision of jobs and training programs
- contracting opportunities
- capacity funding for Indigenous engagement
- sponsorship of community events
Members of local Indigenous groups comprise approximately 40% of Tropical’s Homestake Ridge project team. Two of our primary contractors are local Indigenous-owned companies.
Tropical and the Nisga’a Lisims Government entered into a Confidentiality Agreement in January 2020. The parties look forward to a collaborative relationship based on mutual respect and a desire for economic prosperity generated by responsible natural resource development in British Columbia.
