PEA Results Summary
| Open Pit PEA Study Results | 2025 PEA Base Case |
Spot Prices (as of July 1, 2025)1 |
| After-Tax NPV (C$M, 5% discount rate) | $1,025 | $2,315 |
| After-Tax IRR (%) | 18.2% | 32.0% |
| Annual Average Free Cash Flow (C$M)4 | $85 | $173 |
| Annual Average Free Cash Flow Yr. 1-5 (C$M)4 | $311 | $454 |
| Initial Capex (C$M) | $1,250 | $1,250 |
| Total Cash Cost (US$ / Au oz)2 | $1,194 | $1,201 |
| AISC (US$ / Au oz)3 | $1,338 | $1,345 |
| Payback Period (years) After-Tax | 3.4 | 2.0 |
| Nominal Processing Throughput (tpd) | 26,000 | 26,000 |
| Strip Ratio (waste:mill feed resource) | 2:1 | 2:1 |
| Mine Life (years) | 24.5 | 24.5 |
| Annual Average Throughput (Mtpa) | 9,340 | 9,340 |
| Annual Average Production (koz/a) | 122 | 122 |
| Average Gold Head Grade (g/t) | 0.46 | 0.46 |
| Average Gold Recovery (%) | 89.3% | 89.3% |
| Metal Prices (US$ / oz) | $2,450 Au $28.50 Ag |
$3,300 Au $36.00 Ag |
| Exchange Rate USD/CAD | 1.35 | 1.35 |
| Total LOM Au ounces produced (Moz) | 3.0 | 3.0 |
| Total LOM Ag ounces produced (Moz) | 2.1 | 2.1 |
Notes for Table 1
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The economic analysis contained on this webpage is preliminary in nature and is based primarily on Measured and Indicated Mineral Resources totalling 33.3% and 65.1% respectively, and in part, Inferred Mineral Resources totalling 1.6% of the proposed mill feed from the Main deposit. Inferred Mineral Resources are considered too geologically speculative to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves. There is no certainty that economic forecasts on which this PEA is based will be realized. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The table below lists the breakdown by resource category of the run of mine (“ROM”) mill feed for the PEA life of mine plan.
ROM mill feed and ounces by resource category
| Category | ROM Mill Feed (Mt) | ROM Au (Moz.) | ROM Ag (Moz.) |
| Measured | 76.2 | 1.22 | 1.62 |
| Indicated | 148.9 | 2.10 | 3.09 |
| Total M+I | 225.1 | 3.32 | 4.72 |
| Inferred | 3.7 | 0.03 | 0.05 |
Initial Capital Costs
The initial capital expenditures for the Project as estimated by Ausenco are summarized in the table below, and the capital expenditures to be incurred after the start-up of operations are assigned to sustaining capital and are projected to be covered by operating cash-flows. Project contingencies have been added where applicable, excluding capitalized operating costs, which results in an overall contingency of $270.3M or 22.6% (excluding taxes).
Initial Capital Cost Estimate
| 2025 PEA Total (C$M) |
|
| Mining (Including contingency) | $113 |
| Process Plant and Facilities(1) | $419 |
| On-site Infrastructure (including tailings, water management, water treatment, environmental, site costs, and earthworks)(1) | $152 |
| Off-site Infrastructure | $159 |
| Project Indirects | $38 |
| EPCM, Owners Cost, Consultants | $112 |
| Project Contingency (excluding mining contingency) | $259 |
| TOTAL(2) | $1,250 |
Notes:
- Direct process plant capital costs are based on benchmarking and not from engineering design.
- Totals do not necessarily equal the sum of the components due to rounding adjustments; not all cost components are illustrated in this table.
Sustaining Capital Costs:
Ausenco estimates the LOM sustaining capital for Project to be C$443 M, which is expected to be funded by operating cash flows. The sustaining capital estimate is primarily for the expansion of the tailing storage facility, mining fleet additions as total material movements increase with depth, and reclamation and closure. The PEA has assumed C$163 M in closure and reclamation costs.
On Site Direct Operating Costs (“Opex”)
The estimated Opex for Project is US$15.33/t of mill feed – see below table. Ausenco and MMTS have estimated the Opex based on first-principles calculation, industry benchmarking, proprietary information and its professional experience.
On Site Operating Cost for Base Case
| Metric | Unit | 2025 PEA |
|
Open pit mining cost (excl. pre-prod) |
US$/t milled | 7.60 |
|
Processing cost (excluding G&A) |
US$/t milled | 6.66 |
|
G&A |
US$/t milled | 1.07 |
|
Total site operating cost |
US$/t | 15.33 |
Notes:
- Totals do not necessarily equal the sum of the components due to rounding adjustments; not all cost components are illustrated in this table.
Royalties
There is a 1.0 to 1.5% Net Smelter Royalty ("NSR") payable to two royalty holders. These are the only royalties that apply to the current Mineral Resources as mill feed for the Project and has been incorporated into the economic analysis of the 2025 PEA. The Company plans to exercise its right to buydown the NSRs to 1.5% and 1% respectively, for a total buydown payment of $1 million as provided in the agreements.
Cautionary Note for PEA
Various consultants provided input and helped write the forthcoming PEA Technical Report. Consultants that are responsible for elements of the Technical Report are independent qualified persons (“QP”) as defined within NI 43-101.
- Geology: Ron Voordouw, P.Geo., Equity Exploration
- Mineral Resource for Main Deposit: Bahram Bahrami, P.Geo., Equity Exploration
- Mineral Resource for Phoenix Deposit: Bahram Bahrami, P.Geo., Equity Exploration
- Metallurgy, Processing, Infrastructure, and Economic Evaluation: Kevin Murray, P.Eng., Ausenco
- Mining: Marc Schulte, P.Eng., Moose Mountain Technical Services
- Tailings and Water Management: Brad Russell, P.Eng., BGC
- Water Treatment: Lee Josslyn, PE, Linkan Engineering
- Geochemistry: Andrea Samuels, P.Geo., pHase Geochemistry
- Off-site Power and Electrical: Neil Brazier, P.Eng., WN Brazier Associates
- Environmental & Community: James Millard, P.Geo., Ausenco
