Torex Reports Encouraging Results From Drilling at EPO

2023-03-23 / @GlobeNewswire

 

TORONTO, March 23, 2023 (GLOBE NEWSWIRE) -- Torex Gold Resources Inc. (the “Company” or “Torex”) (TSX: TXG) is pleased to report results from the 2022 drilling program at EPO, a deposit located to the north of the Media Luna deposit in close proximity to the Guajes Tunnel, south of the Balsas River. The program was focused on upgrading Inferred Resources to the Indicated category and expanding Inferred Resources through step-out drilling.

Jody Kuzenko, President & CEO stated:

“We are very encouraged by the results of the 2022 drilling program at EPO, which is expected to achieve our target of upgrading approximately half of the current Inferred Mineral Resource to the Indicated category. We are also optimistic about the potential to further increase the size of EPO, as the deposit remains open to the north, south and west. Results from infill drilling targeting to upgrade Inferred Resources to the Indicated category conducted in 2022, and the infill program planned for the first half of 2023, will form the basis of an internal prefeasibility study on EPO, which we expect to complete in H1 2024.

“Infill drilling at EPO returned intersections with similar thickness and even better grades than previous drilling in these areas. Based on the 2022 drill results, we expect a reasonably high conversion rate when upgrading Mineral Resources from the Inferred category to the Indicated category. Notable assay results include 18.9 grams per tonne gold equivalent (“gpt AuEq”) over a core length (not true width) of 32.9 metres (“m”), 107.7 gpt AuEq over 4.3 m, 10.8 gpt AuEq over 35.1 m, 7.3 gpt AuEq over 42.0 m, and 16.4 gpt AuEq over 17.2 m.

“Step-out drilling to the south and west of EPO was also successful in extending the mineralized footprint of the deposit approximately 200 m to the west and 250 m to the south. Based on the results of the program, we expect to add Inferred Mineral Resources within the area drilled off.

“Drilling EPO, with a view to advancing to the mine design stage, is a strategic priority given the potential for EPO to play a key role in supporting our efforts to fill the mill and maintain consistent gold equivalent production beyond 2027. These drill results continue to demonstrate the underlying resource potential of the Morelos Property and reinforce our positive outlook on our ability to complement future production from Media Luna.”

Table 1: Highlights from the 2022 drilling program at EPO

Drill HoleDrilling TypeFrom
(m)		To
(m)		Core
Length1
(m)		Au
(g/t)		Ag
(g/t)		Cu
(%)		AuEq2
(g/t)
ML22-900DInfill – Indicated634.21667.0832.8712.2572.383.5918.90
ML22-924DInfill – Indicated636.83654.0617.235.32149.775.7716.38
  664.09668.374.2899.5291.054.42107.73
ML22-886DInfill – Indicated646.27681.3235.054.9375.613.1110.83
ML22-927Step-out – Inferred484.65502.0017.359.1111.470.319.75
  553.92595.9442.025.9921.080.677.31
ML22-926DInfill – Indicated669.00701.1032.101.3581.083.868.54
ML22-925DInfill – Indicated674.01702.4728.461.1945.922.125.16
  727.46732.555.098.51137.215.7819.44
ML22-909AInfill – Indicated671.70686.4814.781.7170.092.887.17
  702.48720.8218.342.1058.232.827.33
ML22-919DInfill – Indicated665.27671.566.056.8235.061.469.58
  685.15693.968.478.0411.310.789.43
ML22-815DInfill - Indicated592.14606.8514.718.588.120.419.33
ML22-912DInfill – Indicated523.14541.9118.774.238.210.084.45
ML22-920AStep-out – Inferred621.69626.004.3112.4716.320.1912.96

Notes to Table:

1)Intersections are reported as core length (not true width/thickness). Core lengths reflect drilling core recovery.
2)The gold equivalent grade calculation used is as follows: AuEq (g/t) = Au (g/t) + Ag (g/t) * 0.011385 + Cu (%) * 1.621237 and use the same metal prices ($1,550/oz gold, $20/oz silver and $3.50/lb copper) and metallurgical recoveries (85% gold, 75% silver and 89% copper) used in the Mineral Resource estimate for the EPO deposit.
  

Assay results from the infill drilling program at EPO can be found in Table 2 and results from the expansion drilling program in Table 3. Highlights from the 2022 drilling program at EPO are also outlined in Figure 1.

The gold equivalent grade calculation accounts for the same metal prices ($1,550/oz gold, $20/oz silver and $3.50/lb copper) and metallurgical recoveries (85% gold, 75% silver and 89% copper) used in the current Mineral Resource estimate for the EPO deposit, set out in the March 2022 Technical Report.

2022 EPO DRILLING PROGRAM

During 2022, approximately 30,100 metres were drilled at EPO, for which 100% of assays have been received. Drill results from the 27,400 metres drilled at Media Luna in 2022 were released earlier this month (refer to press release dated March 8, 2023 titled Torex Gold Reports Results From Drilling at Media Luna).

Drilling at EPO in 2022 was focused on both upgrading and expanding Mineral Resources. Infill drilling was primarily targeted at upgrading Inferred Mineral Resources to the Indicated category, with the Indicated Resource to be used as the basis for an internal prefeasibility study on EPO. Expansion drilling was primarily targeted at increasing the overall size of the Mineral Resource.

Figure 1: 2022 EPO drilling program successful in upgrading Inferred Mineral Resources to the Indicated category and expanding mineralized footprint of the deposit

Torex

In total, the Company invested over $19 million in drilling within the Media Luna Cluster in 2022. A similar level of drilling is anticipated in 2023, with the 2023 program focused on upgrading Inferred Resources at EPO and expanding the overall mineralized footprint of the Media Luna Cluster.

Infill Drilling Program

Approximately 16,100 metres of drilling in 2022 was directed towards upgrading Inferred Resources to the Indicated category. Based on the results of the drilling program, which has reduced the drill spacing to 30 m by 30 m (from 70 m by 70 m), a relatively high conversion rate of Inferred Mineral Resources to the Indicated category is anticipated. Given many of the drill holes returned gold equivalent grades higher than previous drilling results, we expect a higher portion of contained metal (gold, silver and copper) to be upgraded to the Indicated category relative to the level of tonnes upgraded.

Results from the Indicated Resource drilling carried out in 2022, in addition to drilling planned in H1 2023, will form the basis of an internal prefeasibility study evaluating the economics of developing a new mining front at EPO. The prefeasibility study is expected to be completed in H1 2024. If economic, EPO would contribute to the Company’s strategic priority of filling the mill beyond 2027 when, based on year-end 2021 Mineral Reserves only, Media Luna is the only source of ore for the processing plant.

Results from the 2022 infill drilling program at EPO are outlined in Table 2.

Expansion Drilling Program

Approximately 14,000 metres of drilling in 2022 was directed towards expanding Mineral Resources at EPO. Based on the results of the drilling conducted in 2022, the Company expects to add Inferred Resources, which are expected to offset a portion of Inferred Mineral Resources upgraded to the Indicated category.

Drilling carried out in 2022 was successful in extending the mineralized footprint of EPO ~200 m to the west and ~250 m to the south, directions in which mineralization remains open.

Results from the 2022 expansion drilling program at EPO are outlined in Table 3.

MEDIA LUNA REGIONAL GEOLOGY

The Media Luna deposit is hosted within the Mesozoic carbonate-rich Morelos Platform, which has been intruded by Paleocene stocks, sills, and dykes of granodioritic to tonalitic composition. Skarn-hosted gold-silver-copper mineralization is developed within the sedimentary rocks along the contacts of intrusive rocks as well as within altered dykes of the skarn envelope. The main portion of this mineralized package dips to the southwest at approximately 30°; in the lowest part of the known mineralization, the dip steepens to approximately 60°, while the northernmost portion of the deposit dips to the north, resulting in a broad antiformal geometry of the deposit.

Mineralization at Media Luna is hosted in skarn that developed at the contact of the intrusive granodiorite and overlying sedimentary rocks. The skarn is characterized by a mineral assemblage of pyroxene, garnet, and magnetite. Metal deposition and sulfidation occurred during retrograde alteration and is associated with a mineral assemblage comprising amphibole, phlogopite, chlorite, and calcite ± quartz ± epidote as well as variable amounts of magnetite and sulfides, primarily pyrrhotite. Additional mineralization is associated with skarn developed within and along dykes and sills above the main granodiorite intrusion.

Additional information on the Media Luna deposit, the Media Luna Feasibility Study and the analytical and sampling process is available in the Company’s technical report entitled the “Morelos Property, NI 43-101 Technical Report, ELG Mine Complex Life of Mine Plan and Media Luna Feasibility Study, Guerrero State, Mexico”, dated effective March 16, 2022 filed on March 31, 2022 (the “Technical Report”) on SEDAR at www.sedar.com and the Company’s website at www.torexgold.com.

QUALITY ASSURANCE / QUALITY CONTROL

At the Company’s Morelos Property (see description below), all the Media Luna project drill core is logged and sampled at the core facility within the project camp under the supervision of Nicolas Landon, Chief Exploration Geologist for the Media Luna Project. A geologist marks the individual samples for analysis and sample intervals, sample numbers, standards and blanks are entered into the database. The core is cut in half lengthwise using an electric core saw equipped with a diamond tipped blade. One half of the core is placed into a plastic sample bag and sealed with zip ties in preparation for shipment. The other half of the core is returned to the core box and retained for future reference in the Company core shack with the assay pulps and coarse rejects. The core samples are picked up at the project camp and delivered to Bureau Veritas (“BV”) to conduct all the analytical work.

Sample preparation is carried out by BV at its facilities in Durango, Mexico and consists of crushing a 1 kg sample to >70% passing 2 mm followed by pulverisation of 500 g to >85% passing 75 μm. Gold is analyzed at the BV facilities in Hermosillo, Mexico following internal analytical protocols (FA430) and comprises a 30g fire assay with an atomic absorption finish. Samples yielding results >10 g/t Au are re-assayed by fire assay with gravimetric finish (FA530-Au). Copper and silver analyses are completed at the BV facilities in Vancouver, Canada as part of a multi-element geochemical analysis by an aqua regia digestion with detection by ICP-ES/MS using BV internal analytical protocol AQ270. Overlimits for the multi-element package are analyzed by internal protocol AQ374.

Torex has a sampling and analytical Quality Assurance/Quality Control (“QA/QC”) program in place that has been approved by BV and is overseen by Nicolas Landon, Chief Exploration Geologist for the Media Luna Project. The program includes 5% each of Certified Reference Materials and Blanks; blind duplicates are not included, but Torex evaluates the results of internal BV laboratory duplicates. Torex uses an independent laboratory to check selected assay samples and reference materials and has retained a consultant to audit the QA/QC data for every drill campaign at Media Luna. The QA/QC procedure is described in more detail in the Technical Report filed on SEDAR.

QUALIFIED PERSONS

The scientific and technical data contained in this news release has been reviewed and approved by Carolina Milla, P.Eng. Ms. Milla is a member of the Association of Professional Engineers and Geoscientists of Alberta (Member ID #168350), has experience relevant to the style of mineralization under consideration, is a qualified person under NI-43-101, and is an employee of Torex. Ms. Milla has verified the data disclosed, including sampling, analytical, and test data underlying the drill results; verification included visually reviewing the drillholes in three dimensions, comparing the assay results to the original assay certificates, reviewing the drilling database, and reviewing core photography consistent with standard practice. Ms. Milla consents to the inclusion in this release of said data in the form and context in which they appear.

ABOUT TOREX GOLD RESOURCES INC.

Torex is an intermediate gold producer based in Canada, engaged in the exploration, development, and operation of its 100% owned Morelos Property, an area of 29,000 hectares in the highly prospective Guerrero Gold Belt located 180 kilometres southwest of Mexico City. The Company’s principal asset is the Morelos Complex, which includes the El Limón Guajes (“ELG”) Mine Complex, the Media Luna Project, a processing plant, and related infrastructure. Commercial production from the Morelos Complex commenced on April 1, 2016, and an updated Technical Report for the Morelos Complex was released in March 2022. Torex’s key strategic objectives are to optimize and extend production from the ELG Mine Complex, de-risk and advance Media Luna to commercial production, build on ESG excellence, and to grow through ongoing exploration across the entire Morelos Property.

FOR FURTHER INFORMATION, PLEASE CONTACT:

TOREX GOLD RESOURCES INC. 
Jody KuzenkoDan Rollins
President and CEOSenior Vice President, Corporate Development & Investor Relations
Direct: (647) 725-9982Direct: (647) 260-1503
jody.kuzenko@torexgold.comdan.rollins@torexgold.com
  

CAUTIONARY NOTES ON FORWARD LOOKING STATEMENTS
This press release contains "forward-looking statements" and "forward-looking information" within the meaning of applicable Canadian securities legislation. Forward-looking information also includes, but is not limited to, statements about: the objective of filling the mill beyond 2027; the results of the 2022 drill program at EPO are expected to achieve the Company’s target of upgrading approximately half of the current Inferred Mineral Resource to the Indicated category; the potential to further increase the size of EPO, as the deposit remains open to the north, south and west; based on the 2022 infill drill results at EPO, the Company expects a reasonably high conversion rate when upgrading Mineral Resources from the Inferred category to the Indicated category; given many of the drill holes from the infill drilling results returned gold equivalent grades higher than previous drilling results, the Company expects a higher portion of contained metal (gold, silver and copper) to be upgraded to the indicated category relative to level of tonnes upgraded; based on the results of the step-out drilling program at EPO, the Company’s expects to add Inferred Mineral Resources within the area drilled off; the Company’s a view to advancing EPO to the mine design stage, as a strategic priority given the potential for EPO to play a key role in supporting the Company’s efforts to fill the mill and maintain consistent gold equivalent production beyond 2027; the underlying resource potential of the Morelos Property and it reinforcing the Company’s positive outlook on its ability to complement future production from Media Luna; if the prefeasibility study of EPO is economic, EPO would contribute to the Company’s strategic priority of filling the mill beyond 2027 when, based on year-end 2021 Mineral Reserves only, Media Luna is the only source of ore for the processing plant; and the Company’s key strategic objectives to extend and optimize production from the ELG Mining Complex, de-risk and advance Media Luna to commercial production, build on ESG excellence, and to grow through ongoing exploration across the entire Morelos Property. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “objective”, “strategy”, “target”, “continue”, “potential” or variations of such words and phrases or statements that certain actions, events or results “will”, “would”, or “is expected to" occur. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including, without limitation, risks and uncertainties associated with: the ability to upgrade mineral resources categories of mineral resources with greater confidence levels or to mineral reserves; risks associated with mineral reserve and mineral resource estimation; uncertainty involving skarns deposits; and those risk factors identified in the Technical Report and the Company’s annual information form and management’s discussion and analysis or other unknown but potentially significant impacts. Forward-looking information is based on the assumptions discussed in the Technical Report and such other reasonable assumptions, estimates, analysis and opinions of management made in light of its experience and perception of trends, current conditions and expected developments, and other factors that management believes are relevant and reasonable in the circumstances at the date such statements are made. Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in the forward-looking information, there may be other factors that cause results not to be as anticipated. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readers should not place undue reliance on forward-looking information. The Company does not undertake to update any forward-looking information, whether as a result of new information or future events or otherwise, except as may be required by applicable securities laws.

Table 2: Drill results from 2022 infill drilling at EPO targeting to upgrade Inferred Mineral Resources to the Indicated category

                  
         Final   Intersection    
Drill-HoleAreaUTM-EUTM-NElevationHoleMotherAzimuth
Dip
DepthFromToLength1AuAgCuAuEq2Lithology
  (m)(m)(m)TypeHole  (m)(m)(m)(m)(gpt)(gpt)(%)(gpt) 
ML22-781DEPO422195.891985617.851460.66DDML22-766  722.35613.79615.161.373.1731.050.143.75Marble with Gar in patches and Py+ Apy in spots.
          655.64657.792.150.0648.871.232.61Skarn Composite 1
ML22-787DEPO422195.891985617.851460.66DDML22-766  682.80507.78514.646.861.1543.000.392.27Skarn Composite 1
          599.10600.101.005.0465.400.015.80Skarn Composite 2
          605.83617.8712.042.066.160.092.27Skarn Composite 3
          630.69637.376.682.1120.620.362.94Skarn Composite 4
          656.05657.461.413.945.480.294.47Skarn Composite 5
          665.05665.760.711.08104.504.529.60Skarn Composite 6
ML22-788EPO421980.871985603.511440.41CD 3.14-80.85783.75612.77614.301.536.517.800.387.22Skarn Composite 1
          629.00668.6239.623.1690.052.958.97Skarn Composite 2
ML22-792DEPO422195.891985617.851460.66DDML22-766  682.35512.60515.162.561.0953.180.352.27Skarn Composite 1
ML22-799DEPO422195.891985617.851460.66DDML22-766  731.15580.74584.233.492.627.190.032.74Skarn composite 1
          647.28648.000.725.5718.200.025.80Skarn composite 2
          667.30670.182.881.7238.061.164.04Skarn composite 3
          703.36707.524.160.4745.032.074.33Skarn composite 4
ML22-801DEPO421983.001985601.111440.31DDML20-386B  667.60612.31613.861.551.49150.082.978.01Skarn composite 1
          624.06628.023.969.96141.485.3920.31Skarn composite 2
ML22-803DEPO422195.891985617.851460.66DDML22-766  695.20568.77577.628.851.7913.040.062.03Skarn composite 1
          656.92657.921.004.228.200.545.19Skarn composite 2
          665.26668.002.742.725.570.493.59Skarn composite 3
          677.60679.832.230.3116.960.962.05Skarn composite 4
ML22-807DEPO421983.001985601.111440.31DDML20-386B  575.80       No significant values/ Abandoned
ML22-811DEPO421983.001985601.111440.31DDML20-386B  675.30603.18605.101.920.3029.921.132.47Skarn composite 1
          613.41624.1210.710.8618.830.782.35Skarn composite 2
ML22-815DEPO421983.001985601.111440.31DDML20-386B  682.65592.14606.8514.718.588.120.419.33Skarn Composite 1
          629.94635.515.570.5939.280.962.58Skarn Composite 2
          638.00643.765.760.5939.601.573.58Skarn Composite 3
ML22-824DEPO421983.001985601.111440.31DDML20-386B  722.80       No significant values
ML22-830DEPO421983.001985601.111440.31DDML20-386B  682.55633.00637.884.881.449.060.312.04Skarn composite 1
          660.30669.238.9318.0695.474.2626.06Skarn composite 2
ML22-834EPO421981.421985602.891440.40CD 69.54-85.66713.95       Completed/ don´t intersected skarn
ML22-843DEPO421981.421985602.891440.40DDML22-834  737.65683.67706.3122.641.4319.690.822.98Skarn composite 1 (with BFP intersection)
ML22-849EPO422197.311985618.271461.01CD 339.55-81.65727.25601.21611.009.792.684.900.152.97Skarn Composite 1
          660.00671.4611.460.9551.882.205.11Skarn Composite 2
ML22-851DEPO421981.421985602.891440.40DDML22-834  726.95629.83634.804.972.0821.181.324.45Skarn composite 1
ML22-861DEPO422197.311985618.271461.01DDML22-849  486.85       Abandoned
ML22-864DEPO422197.311985618.271461.01DDML22-849  719.20628.96637.318.350.7144.170.882.64Skarn composite
ML22-869DEPO422197.311985618.271461.01DDML22-849  710.45562.52567.104.587.4914.530.047.73Skarn Composite 1
          582.17585.943.771.8848.440.393.07Skarn Composite 2
ML22-874DEPO422197.311985618.271461.01DDML22-849  752.40535.15545.6210.472.0931.680.202.78Skarn composite 1
ML22-881DEPO422197.311985618.271461.01DDML22-849  713.40635.33637.982.651.2016.240.452.12Skarn composite 1
          654.52666.0011.480.3422.101.042.28Skarn composite 2
          672.65689.1616.518.05135.946.4720.09Skarn composite 3
ML22-886DEPO422197.311985618.271461.01DDML22-849  694.25606.60610.103.505.157.250.395.86Skarn composite 1
          646.27681.3235.054.9375.613.1110.83Skarn composite 2
ML22-891DEPO422197.311985618.271461.01DDML22-849  252.85       Abandoned
ML22-893DEPO422197.311985618.271461.01DDML22-849  699.60542.17544.962.791.6647.930.062.30Skarn composite 1
          550.86552.671.8112.0927.990.1412.63Skarn composite 2
          571.32574.923.6015.73128.710.1617.46Skarn composite 3
ML22-898EPO422319.581985614.241479.08CD 283.24-82.41254.00       Pilot Finished
ML22-898AEPO422319.581985614.241479.08CDML22-898  356.10       No significant values/ Pilot Finished
ML22-900DEPO422197.311985618.271461.01DDML22-849  723.75634.21667.0832.8712.2572.383.5918.90Skarn composite 1
          700.00701.631.633.7031.911.646.73Skarn composite 2
ML22-903DEPO422319.581985614.241479.08DDML22-898A  749.3443.08444.781.700.3788.292.074.72Skarn composite 1
          496.93505.898.962.506.040.192.87Skarn composite 2
          565.00566.551.552.509.950.192.92Skarn composite 3
          581.00582.851.853.6232.550.044.05Skarn composite 4
ML22-905EPO422197.031985617.611461.01CD 306.33-77.22453.7       No significant values/ Pilot Finished
ML22-907DEPO422319.581985614.241479.08DDML22-898A  659.3469.57471.582.0111.264.600.0711.43Skarn composite 1
          489.70491.681.981.953.560.132.20Skarn composite 2
          500.42514.9214.502.715.550.102.93Skarn composite 3
          646.26650.253.991.17132.040.142.90Skarn composite 4
ML22-909EPO421930.841985578.351432.34CD 8.4-76.4223.85       No significant values/ Finished
ML22-909AEPO421930.841985578.351432.34CDML22-909  776.6671.70686.4814.781.7170.092.887.17Skarn composite 1
          702.48720.8218.342.1058.232.827.33Skarn composite 2
          746.36749.383.020.2334.791.042.31Skarn composite 3
ML22-911DEPO422197.031985617.611461.01DDML22-905  793.95571.16574.092.931.8634.290.232.62Skarn composite 1
          652.14655.703.561.656.160.462.46Skarn composite 2
          661.35663.852.500.7539.081.113.00Skarn composite 3
          668.56694.8726.311.8821.551.174.03Skarn composite 4
ML22-912DEPO422319.581985614.241479.08DDML22-898A  755.3431.90432.670.770.02108.303.476.88Skarn composite 1
          439.21440.971.760.0351.571.823.56Skarn composite 2
          488.82496.007.181.6411.560.332.30Skarn composite 3
          513.91517.273.364.567.210.044.71Skarn composite 4
          523.14541.9118.774.238.210.084.45Skarn composite 5
          596.00599.983.981.883.180.092.06Skarn composite 6
          607.00608.591.592.1510.150.432.97Skarn composite 7
          664.00666.002.002.175.650.232.60Skarn composite 8
          681.65683.922.276.269.000.487.14Skarn composite 9
ML22-916DEPO422197.031985617.611461.01DDML22-905  700.15640.72660.0019.282.7123.881.144.82Skarn composite
          670.45678.327.871.5650.942.926.87Skarn composite 2
ML22-918DEPO421930.841985578.351432.34DDML22-909A  698.45645.25656.5211.272.07122.664.0410.02ISO
          662.74667.034.290.9057.612.746.00Skarn composite 1
ML22-919DEPO422197.031985617.611461.01DDML22-905  725.7603.90604.460.540.26107.901.253.52Skarn Composite 1
          617.67618.320.620.35147.800.072.16Skarn Composite 2
          635.77636.380.591.449.000.292.01Skarn Composite 3
          639.00640.000.961.7529.900.733.28Skarn Composite 4
          649.00653.934.743.1314.940.894.75Skarn Composite 5
          665.27671.566.056.8235.061.469.58Skarn Composite 6
          676.69677.500.789.3650.201.9713.13ISO
          677.70678.700.961.616.900.212.03ISO
          685.15693.968.478.0411.310.789.43Skarn Composite 7
          693.96694.720.730.0931.501.593.03Granodiorite with Qtz veinlets and Cpy +Apy in spots.
ML22-923DEPO422197.031985617.611461.01DDML22-905  887.4728.76741.8513.091.2649.483.166.95Skarn composite 1
          749.00750.001.005.091.900.185.40Skarn composite 2
          812.23816.023.790.4936.781.303.00Skarn composite 3
          827.33833.215.880.4637.151.072.62Skarn composite 4
ML22-924DEPO421930.841985578.351432.34DDML22-918D  719.45636.83654.0617.235.32149.775.7716.38Skarn composite 1
          664.09668.374.2899.5291.054.42107.73Skarn composite 2
ML22-925DEPO422197.031985617.611461.01DDML22-905  817.1576.64578.341.703.1585.060.094.26Skarn composite 1
          674.01702.4728.461.1945.922.125.16Skarn composite 2
          727.46732.555.098.51137.215.7819.44Skarn composite 3
          749.03763.0013.970.4821.070.882.16Skarn composite 4
          768.61774.005.391.3824.971.393.91Skarn composite 5
          793.00796.003.000.3129.550.862.04Skarn composite 6
          798.03801.353.320.1915.521.222.35Skarn composite 7
ML22-926DEPO421930.841985578.351432.34DDML22-909A  742.9655.00657.892.896.8813.250.267.46Skarn composite 1
          669.00701.1032.101.3581.083.868.54Skarn composite 2
ML22-928DEPO421930.841985578.351432.34DDML22-909A  784644.85647.402.550.9533.280.692.44Skarn composite 1
          654.33658.844.511.6712.380.322.32Skarn composite 2
          682.00684.802.801.2822.350.392.17Skarn composite 3
          707.66708.370.718.4724.000.469.49Skarn composite 4
          717.00723.406.401.063.750.562.01Skarn composite 5

Notes to Table

1.Intersections are reported as core length (not true width/thickness). Core lengths reflect drilling core recovery.
2.The gold equivalent grade calculation used is as follows: AuEq (g/t) = Au (g/t) + Ag (g/t) * 0.011385 + Cu (%) * 1.621237 account for the same metal prices ($1,550/oz gold, $20/oz silver and $3.50/lb copper) and metallurgical recoveries (85% gold, 75% silver and 89% copper) used in the Mineral Resource estimate for the EPO deposit.
  

Table 3: Drill results from 2022 expansion drilling at EPO targeting to expand Inferred Mineral Resources

                  
         Final   Intersection    
Drill-HoleAreaUTM-EUTM-NElevationHoleMotherAzimuth
Dip
DepthFromToLength1AuAgCuAuEq2Lithology
  (m)(m)(m)TypeHole  (m)(m)(m)(m)(gpt)(gpt)(%)(gpt) 
ML22-809EPO422194.881985621.291460.91CD 83.32-82.74707.95454.10462.548.442.617.760.162.95Skarn composite 1
          476.00478.002.000.8916.150.752.29Skarn composite 2
          480.00490.4610.462.1618.160.473.12Skarn composite 3
          646.04655.599.551.7615.360.282.39Skarn composite 4
          659.00661.232.231.5223.260.392.41Skarn composite 5
ML22-820EPO422196.821985621.291461.04CD 69.54-70.20198.80       No significant values/ Mother hole finished
ML22-820AEPO422196.821985621.291461.04CDML22-820  617.80       No significant values
ML22-831EPO422199.461985617.371461.18CD 181.96-77.37623.90521.29522.921.635.085.570.045.20Skarn composite 1
ML22-841EPO422199.231985616.441461.16CD 177.99-70.86615.10506.02512.005.981.5221.230.562.68Dike with ISO and skarn level
          521.60522.821.220.6254.151.513.68Skarn composite
ML22-857EPO421981.641985603.781440.48CD 24.08-69.45753.75233.04236.352.442.4287.880.123.61Marble with strong oxidation
          238.35239.250.890.5760.805.6710.46Marble with strong oxidation
          240.15240.690.530.026.003.515.79Marble with strong oxidation
          602.78604.781.971.3878.750.282.72Skarn composite 1
          609.83610.830.980.06178.500.022.13Skarn composite 2
          622.60623.841.220.1380.001.483.44Skarn composite 3
          651.93652.660.720.5337.000.772.20Skarn composite 4
          655.30660.515.130.4822.500.992.35Skarn composite 5
          666.07678.4712.211.0514.721.373.43Skarn composite 6
ML22-865EPO421988.431985603.841440.53CD 20.43-62.28839.15506.28507.150.871.1039.600.342.10Marble with Apy and Py in spots.
          514.90516.031.131.6537.350.192.39Skarn composite 1
          522.60523.260.661.9116.500.282.55Marble with Py in patches.
          771.43774.853.420.3222.651.412.87Breccia with Py replacing clasts.
          777.65779.451.800.6195.323.256.97Breccia with Py replacing clasts, Mag and Cpy in patches.
ML22-878EPO421983.671985603.641440.51CD 310.46-75.47694.70491.77496.104.332.05321.080.426.39Breccia with clasts replaced by Py
          641.72649.958.231.7574.882.116.03ISO
ML22-885EPO421986.941985606.691440.48CD 310.68-66.52644.60       No significant values
ML22-895EPO421984.801985606.261440.50CD 125.94-68.09620.40       No significant values
ML22-899EPO421984.711985607.111440.34CD 114.77-73.09708.20556.81563.006.190.5726.340.832.21Skarn composite 1
          597.21601.474.260.1947.551.372.95Skarn composite 2
          639.00655.7016.701.9218.410.773.38Skarn composite 3
          674.44678.714.272.3016.800.964.04Skarn composite 4
ML22-904EPO421981.361985603.891440.53CD 149.82-73.74673.05252.22254.131.876.5032.100.117.04Marble with oxided breccia levels
          567.07568.000.912.371.200.062.49Dike with Po+ Apy+ Apy band in upper contact.
          571.69572.230.53429.4028.900.37430.33Skarn composite 1
          643.90644.800.882.484.400.463.28Skarn composite 2
ML22-908EPO421981.591985604.311440.43CD 141.09-79.49195.50       No significant values/ Finished
ML22-908AEPO421981.591985604.311440.43CDML22-908  653.60607.33609.141.812.452.980.343.03Skarn composite 1
          628.59629.891.301.0562.551.283.82Granodiorite with Qtz +Mo veinlets and Apy+ Cpy in spots.
ML22-914EPO421981.131985603.961440.40CD 170.19-83.46150.90       Finished
ML22-914AEPO421981.131985603.961440.40CDML22-914  782.60687.00694.007.005.9611.980.296.56Skarn composite 1
          753.30755.662.360.1929.331.142.37Skarn composite 2
ML22-920EPO421982.531985603.521440.58CD 151.84-68.45143.15       No significant values/ Finished
ML22-920AEPO421982.531985603.521440.58CDML22-920  674.55421.90424.933.031.8548.700.172.68Breccia with Py replacing clasts and matrix.
          621.69626.004.3112.4716.320.1912.96Skarn composite 1
ML22-927EPO422199.221985614.781460.91CD 143.58-76.43641.85371.54375.734.195.8553.530.397.09ISO
          454.37455.000.632.41205.805.6713.96Skarn composite 1
          464.66473.769.101.959.470.322.57Skarn composite 2
          484.65502.0017.359.1111.470.319.75Skarn composite 3
          539.44544.004.560.4714.800.852.02Skarn composite 4
          553.92595.9442.025.9921.080.677.31Skarn composite 5

Notes to Table

1.Intersections are reported as core length (not true width/thickness). Core lengths reflect drilling core recovery.
2.The gold equivalent grade calculation used is as follows: AuEq (g/t) = Au (g/t) + Ag (g/t) * 0.011385 + Cu (%) * 1.621237 account for the same metal prices ($1,550/oz gold, $20/oz silver and $3.50/lb copper) and metallurgical recoveries (85% gold, 75% silver and 89% copper) used in the Mineral Resource estimate for the EPO deposit.
  

A photo accompanying this announcement is available at https://www.globenewswire.com/NewsRoom/AttachmentNg/cf027405-947c-423e-9be6-e8f8047cfcc5


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Figure 1

2022 EPO drilling program successful in upgrading Inferred Mineral Resources to the Indicated category and expanding mineralized footprint of the deposit

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