Gold X Mining – Fast Track to Mining License - Seite 2

The TMA also sets forth the agreement of the GoG to issue the Mining License under a specific set of conditions which include:

• Receipt of an Environmental Authorization from the Guyana EPA (Environmental Protection Agency).
• Demonstration to the GoG that the Toroparu project meets GoG Economic Standards.
• Establishment of a Timeline for commencement of production.

Paul Matysek, Chairman and CEO stated “The extensive historical permitting work and recent acquisition of our local partner’s interest in the Medium and Small Scale Mining Permits that was completed in March 2020 meets all necessary requirements for issuance of the Large Scale Mining License to Gold X.  Subject to the continuing pressure of the COVID-19 pandemic we expect the final review of our Mining License application to move forward in due course.”

Environmental Authorization: The Environmental Authorization for the Toroparu Project was issued by the Guyana EPA in 2012 and renewed by the EPA in August of 2019.  The Mining License application was reactivated by ETK and GGMC in October 2019.  Both the Environmental Authorization and Mining License applications are being amended to include the Sona Hill satellite deposit and Northern Access Route to Toroparu (“Access Road”).¹

The Mining License Application includes eight Medium Scale Mining Permits, one Medium Scale Prospecting Permit and seven small scale licenses surrounding the Toroparu, SE Zone, and Sona Hill deposits covering 3,176 hectares (37.16 km²). In addition, authorization to build and operate the Tailings Management Facility (TMF), camp, and other infrastructure will be provided under the Mining License.

GoG Economic Standards: The demonstration that the Project met the GoG Economic Standards was originally acknowledged by GGMC after its review of the 2013 Prefeasibility Study² (the “2013 PFS”) in 2015.  The License process was suspended by mutual agreement due to the prevailing bear market in gold and gold equity prices in late 2015.

The 2013 PFS was replaced by a Preliminary Economic Assessment in June 2019 (the “2019 PEA”) in which Measured, Indicated, and Inferred Resources were used, replacing the Proven and Probable Reserves in the 2013 PEA³. The 2019 PEA defined a 5.02 M-oz Gold Resource and mine plan producing 188 thousand ounces of gold per year over a 24-year mine-life.   The 2019 PEA has been delivered to the GoG and it is being reviewed as part of the Licensing process.