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The Elder Mine

The Elder mine property is conveniently located 10 kilometres northwest of the mining community of Rouyn-Noranda, Quebec, and is 100% owned by Abcourt.  The property comprises 26 contiguous claims, a mining concession and a mining lease.  There are royalties of 2% to 3% NSR payable on different parts of the Elder property.

The surface plant includes an office, a service building, a hoist room and a shaft building. The mine is serviced to a depth of 794 meters (2,606 feet) by two shafts and several drifts on 16 levels. All mining equipment and required facilities are in place.

From 1995 to 2012, several surface drilling programs were completed and results obtained were used to revise the 43-101 resources. The revision of resources was completed by Mr. Jean-Pierre Bérubé, P. Eng. Mr. Bérubé is a Qualified Person under Regulation 43-101.  Based on these resources, a preliminary economic assessment report (PEA) was prepared to determine if additional exploration work was needed to increase resources before considering mine development before production.  The PEA prepared by Roche Ltd., Consulting Group (Roche) and independent consultants indicated that enough resources were available to continue with our exploration and valuation work. 

Commercial operations at the Elder mine started in January 2016. For results obtained since the start of commercial operations, please refer to the Company’s management’s discussion and analysis and financial reports filed on SEDAR and available on the Investors Relations section.

In March 2018, Mr. Jean-Pierre Bérubé prepared an update report of resources on the Elder mine according to Regulation 43-101.  This update was done in three parts.

The first part is inside the limits of mining concession 363 and covers the upper part of the mine, from the 10th level to surface.

The second part covers the lower part of the mine, below the 10th level. This update was prepared for an application to have a mining lease.

The third part on the Tagami property which is located immediately to the North of the Elder mine and was incorporated in the 2012 calculations of resources.

See the cross-section below.

At the Elder mine, the No. 1 vein is the main vein. It extends over a strike distance of about 650 meters, from surface to the bottom of the mine. The dip is 22o  to the South. It is accompanied by vein #3 and #6 with the same strike and dip. There are also veins No.2 and No.2A, from the 4th level to surface, with the same strike and a dip of 40o S and vein No.4 with a North-South direction and a dip of 22o to the East. See the cross-section above.

Vein #7 is indicated in one hole with marginal values. Additional drilling will be done to assess the economic potential of this structure.

Table of Resources and Parameters Used

As of June 30, 2017, mineral resources in the measured and indicated categories, within the mining concession 363, in the upper part of the mine were as follows:

CATEGORIES   MEASURED     INDICATED     MEASURED + INDICATED   GOLD
ZONE   TONNES GRADE   TONNES GRADE   TONNES GRADE OUNCES
    (metric) (g/t Au)   (metric) (g/t Au)   (metric) (g/t Au) (Oz) 
ELDER
   VEIN 1   8,091 6.00   111,146 7.60   119,237 7.49 28,727
   VEIN 2   16,102 5.28   73,925 6.53   90,027 6.31 18,253
   VEIN 3   5,200 8.23   37,942 6.21   43,142 6.46 8,954
   VEIN 4 44,947 5.76 97,086 5.63 142,034 5.67 25,892
   VEIN 6 0 0 71,711 7.71 71,711 7.71 17,768
TOTAL   74,341 5.85 391,811 6.80 466,151 6.65 99,594

Measured and Indicated Resources on M.C. 363

 In addition, inferred resources total 360,900 tonnes with a grade of 5.78 g/t Au.

CATEGORY   INFERRED     GOLD 
ZONE   TONNES GRADE THICK OUNCES
    (metric) (g/t Au) (m) (Oz) 
ELDER
   VEIN 1   102,600 5.32 2.08 17,544
   VEIN 2   70,191 6.24 1.93 14,079
   VEIN 3   64,258 6.17 2.18 12,749
   VEIN 4 81,628 5.04 1.93 13,218
   VEIN 6 42,227 6.97 1.81 9,460
TOTAL   360,904 5.78 2.00   67,050

Inferred Mineral Resources within M.C 363

The technical parameters used were: 

Density: 2.70 t/m3, minimum thickness: 1.8 m

Lower cutting grade  = 3.45 g/t Au

Higher cutting grade = 31.1 g/t Au

 

RESOURCES LOCATED WITHIN MINING LEASE 1045

As of March 22, 2017, measures and indicated resources located within mining lease 1045 were as follows:

  MEASURED     INDICATED     MEASURED + INDICATED   GOLD
ZONE   TONNES GRADE THICK   TONNES GRADE THICK   TONNES GRADE THICK OUNCES
    (metric) (g/t Au) (m)   (metric) (g/t Au) (m)   (metric) (g/t Au) (m) (Oz) 
ELDER
   Vein 1   230,217 7.66 5.18   51,030 5.01 2.13   281,247 7.18 4.63 64,916
CDR      
4,172 16.49 2.50 4,172 16.49 2.50 2,213
TOTAL   230,217 7.66 5.18 55,202 4.63 1.97   285,419 7.07 4.56 67,129

Measured and Indicated Resources within mining lease 1045

 In addition, inferred resources totaled 94,088 tonnes with a grade of 5.15 g/t Au.

  INFERRED GOLD
ZONE   TONNES GRADE THICK OUNCES
    (metric) (g/t Au) (m) (Oz) 
ELDER
   Vein 1   43,840 5.14 2.49 7,246
CDR  
50,248 5.15 1.83 8,328
TOTAL   94,088 5.15 2.14 15,574

Inferred Mineral Resources in mining lease 1045

The technical parameters used for the calculation of these resources were the same as those used for the calculation of resources in the mining concession above.

TAGAMI RESOURCES LOCATED IMMEDIATELY TO THE NORTH OF THE ELDER MINE, NEAR SURFACE

In his 43-101 report of 2012, Jean-Pierre Bérubé estimated the Tagami resources. As there has not been any additional drilling since that time, these calculations are still considered valid.

CATEGORIES   MEASURED     INDICATED     MEASURED + INDICATED   GOLD
ZONE   TONNES GRADE   TONNES GRADE   TONNES GRADE OUNCES
    (metric) (g/t Au)   (metric) (g/t Au)   (metric) (g/t Au) (Oz) 
TAGAMI  0 0 173,200 6.54 173,200 6.54 36,400

Indicated Mineral Resources at Tagami project (Bérubé 2012)

The parameters used for the calculation of these resources were the same as those above, except that the minimum thickness was 1.5 m instead of 1.8 m.

TOTAL RESOURCES OF THE ELDER MINE AND THE TAGAMI PROPERTY

The measured and indicated resources of the Elder mine and the Tagami property are shown below. These resources are estimated at 924,700 tonnes with a grade of 6.8 g/t Au, for a total of 200,000 ounces.

 CATEGORIES   MEASURED     INDICATED  
ZONE   TONNES GRADE OUNCES   TONNES GRADE OUNCES
    (metric) (g/t Au) (oz)   (metric) (g/t Au) (oz)
CM 363 (1) 74,300 5.85 14,000 391,800 6.80 85,650
BM 1045   230,200 7.66 56,700 55,200 4.63 8,200
Tagami Project   0 0.00 0 173,200 6.54 36,400
TOTAL   304,500 7.22 70,700 620,200 6.53 130,250

Measured and Indicated Mineral Resources for the Elder and Tagami properties

 Note (1): From July 1, 2017, to March 31, 2018, Elder produced 82,450 tonnes with a grade of 4.41 g/t Au.

The inferred resources at Elder and Tagami is shown in the table below. These resources are estimated at 630,400 tonnes with a grade of 5.7 g/t Au, for a total of 114,800 ounces.

 CATEGORY   INFERRED
ZONE   TONNES GRADE OUNCES
    (metric) (g/t Au) (oz)
CM 363 360,900 5.78 67,100
BM 1045   94,100 5.15 15,600
Tagami Project   175,400 5.69 32,100
TOTAL   630,400 5.66 114,800

Inferred Mineral Resources for the Elder and Tagami properties

Quality Control and Assurance

In its operations, Abcourt applies a procedure for the three methods of sampling used: drill core (series D), chips (series F) and broken muck (series M), to reconcile grade with the ounces produced at the Sleeping Giant mill. The lab is directed by a chief analyst with adequate experience in this domain. This lab maintains an internal quality control program. Assay results of blanks, duplicates and standards appear regularly (3/24) on assay reports.

Check assays done for 15 chip samples (F) and 10 muck samples (M) done by an accredited laboratory (ALS-Chemex) indicate that the assay results from both laboratories have a very good coefficient of correlation (R2=0.975) for sample M18465. See graph below.

Strong correlation coefficient between Sleeping Giant (GD) and ALS-Chemex (ALS) assays without the odd value