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White Rock, British Columbia, May 17, 2022 – TDG Gold Corp – (TSXV: TDG) (the “Company” or “TDG”) is pleased to announce an initial National Instrument 43-101 Mineral Resource Estimate (“MRE”) following the conclusion of its 2021 – Phase 1 drill program its former producing Shasta gold-silver (“Au-Ag”) mine. An updated technical report will be filed on the Company’s website and SEDAR within 45 calendar days of this disclosure.
*The resulting AuEq equation is: AuEq = Au + Ag*0.008
Figure 1: Shasta Plan Map with MRE Pit Outline.
Fletcher Morgan, TDG’s CEO, commented: “This initial mineral resource estimate represents a solid start by our team towards redefining Shasta as a bulk tonnage gold-silver project.
We’ve managed to define an initial 709,200 gold-equivalent Inferred ounces for just over 8,000 metres drilled in our first phase of drilling and which tested around 40% of the mineralized footprint included within our published exploration target range area at Shasta. The estimate excludes the higher-grade gold-silver mineralization we drilled to the south in the Cayley-Rainier Zone, which was the only step-out we tested in 2021.
In summary, we see a direct roadmap to resource improvement and growth at Shasta in 2022 and which we’re fully funded to execute.”
Shasta Initial Mineral Resource Estimate
The Shasta project database consists of 333 drillholes with 12,007 metres (“m”) from 1983 through 2021. The MRE is based on drillholes from 2021 drilling and historical drilling surrounding the 2021 drilling in the central area of the deposit. The MRE database contains 236 drill holes and 13,875 m of assaying for Au and Ag within the domains and area used for estimation. Three domains were generated based on the major north-south Shasta fault system as well as the NW trending, sub-vertical JM Zone. The block model has a 5 m x 5 m x 5 m selective mining unit, with interpolation of gold and silver done by Inverse distance cubed (ID3). The interpolations were limited by the domain boundaries and were clipped to the overburden surface. Previous underground mining was removed from the resource. Blocks were assigned a classification of Inferred due to uncertainties in potential low bias of the 2021 assaying, based on Certified Reference Materials (“CRMs”) analyses as discussed in TDG’s May 12, 2022 News Release.
The base case cut-off grade within the “reasonable prospects of eventual economic extraction” pit is 0.30 g/t AuEq, which covers the Processing + General and Administrative (“G&A”) costs of CDN$17.00/tonne processed. At a 0.30 g/t AuEq cut-off, the Mineral Resource is estimated at 22 million tonnes (“Mt”) at 1.00 g/t AuEq, 0.79 g/t Au, and 26.7 g/t Ag for a total of 709.2 thousand AuEq ounces. The Mineral Resource Estimate and sensitivity to cut-off grade is summarized in Table 1, below.
Table 1 – Mineral Resource Sensitivity (effective date of May 16, 2022)
Notes to the MRE table:
There are no other known factors or issues that materially affect the MRE other than normal risks faced by mining projects in the province of British Columbia, Canada, in terms of environmental, permitting, taxation, socio-economic, marketing, and political factors and additional risk factors as listed in the “Cautionary Note Regarding Forward-Looking Information” section below.
TDG followed Quality Assurance/Quality Control (”QA/QC”) protocols close to industry standards for the 2021 drill program by inserting 118 blanks (1 in 48 samples) and 183 blind CRMs, (1 in 31) into a sample stream of 5,609 core samples at regular intervals. In addition, defined 58 core intervals (1% of total) for field duplicate sampling and 83 samples (1.5%) for pulp duplicate preparation at the lab at SGS Canada Inc. (“SGS”). A full review of all QA/QC data was performed. Significant contamination was not identified and both field duplicates and pulp duplicates indicate acceptable sample and prep precision for Au and Ag. However, the CRM data suggests an accuracy issue, with a potential low bias of Au as discussed in the News Release of May 12, 2022.
Five of the 2021 drill holes are twin holes of historical 1987-2010 drilling with twins showing no significant bias.
Key Assumptions and Methods Used for the Mineral Resource Estimate
Cumulative probability plot (“CPPs”) for the assays within each domain have been used to determine high grade outliers which were capped. CPPs of the composited data (composited at 2m) have been used to determine the Outlier Restriction during interpolation. Outlier restriction values are applied for distances beyond 5m from the composite locations.
Table 2 – Capping and Outlier Restriction Values
Variography and Interpolations
Variography was completed on each domain for Au and Ag to determine appropriate search parameters. Interpolation has been done by inverse distance cubed (ID3) in 4 passes with increasing search parameters up to 150 m for the major and minor axes. The modelled grades have been validated using de-clustered composites (Nearest Neighbour or Polygonal model) and indicate no global bias with appropriate smoothing throughout the grade-tonnage curves.
The geologically related technical content of this new release has been reviewed and approved by Steven Kramar, P.Geo., Senior Geologist for TDG and a Qualified Person, as defined under National Instrument 43-101.
The technical information relating to the resource estimate was prepared by Sue Bird, P.Eng. (Moose Mountain Technical Services) a Qualified Person, as defined under National Instrument 43-101 and who is independent of TDG.
This news release includes historical information that has been reviewed by the Company’s geological team. The Company’s review of the historical records and information reasonably substantiate the validity of the information presented in this news release; however, the Company cannot directly verify the accuracy of the historical data, including the procedures used for sample collection and analysis. Therefore, the Company encourages investors to exercise appropriate caution when evaluating these results.
About TDG Gold Corp.
TDG is a major mineral claim holder in the historical Toodoggone Production Corridor of north-central British Columbia, Canada, with over 23,000 hectares of brownfield and greenfield exploration opportunities under direct ownership or earn-in agreement. TDG’s flagship projects are the former producing, high grade gold-silver Shasta, Baker and Mets mines, which are all road accessible, produced intermittently between 1981-2012, and have over 65,000 m of historical drilling. In 2021, TDG advanced the projects through compilation of historical data, new geological mapping, geochemical and geophysical surveys, and, for Shasta, drill testing of the known mineralization occurrences and their extensions. In 2022, TDG will prioritize drilling the known mineralization at Shasta which extends south for ~700 metres from the historical JM Pit. TDG currently has 96,343,142 common shares issued and outstanding.
ON BEHALF OF THE BOARD
Chief Executive Officer
For further information contact:
TDG Gold Corp.,
Email: [email protected]
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