Doubling of Gold Mineral Resources Confirmed - Seite 2

Mineral Resources inclusive of Mineral Reserves (no Mineral Reserves reported in this update)
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
All resources below 540mRL classified as inferred
Estimates over variable widths of 2 to 40m
Bulk Density ranges 2.0g/cm3 to 2.8g/cm3
55% attributable to the Company
Effective Date: May 15, 2020

The Report notes that ”Since the last update, June 2018, the Buckreef Shear Zone Measured Mineral Resources have more than doubled in terms of tonnage but increased by two and half times in terms of contained ounces mainly due to the high grades intersected in the Main Zone Central and North East extension during the last drilling campaign. Indicated Mineral Resources have increased by approximately 20% percent with a corresponding nearly 30% increase in contained ounces. Inferred Mineral Resources have also more than doubled but contained ounces just fall short of being double.  This is due to the deeper drilling and to reflect the open–ended nature of the mineralisation.”

Interested parties are encouraged to review the Report in its entirety.

Variances between the March 17, 2020 estimate and the final estimate:

There are several changes between the preliminary results released on March 17, 2020 and the final results released today; notably:

1. A reclassification in the Measured and Indicated Categories resulted in a reduction of tonnes in the Measured category and an in an increase in the tonnes of the Indicated category such that the combined tonnes in both categories was reduced by 21%; but combined ounces only declined by 13% (a reduction of 307,360 oz from March 17, 2020);
2. A notable increase of 14% in the grade of the Measured category to 1.99 g/t Au; and a 43% increase in the grade of the Indicated category to 1.48 g/t Au; and
3. In the Inferred category the tonnage and the grade increased by close to 80% such that the final in-situ ounces of gold in the Inferred category increased from 39,190 oz to 635,540 oz.

The major reason for this global reclassification in all three categories is that the March 17, 2020 estimate was based on kreiging parameters for the Main Zone which were applied to the South Zone and to the Northeast Zone and the narrow parallel zones in these areas. The estimate today improved classification by treating the zones separately and examining kreiging efficiencies accordingly.