The company has also applied for a OTCQB listing along with blue sky status. The QB listing will result in the company filing financial statements in the United States, while blue sky laws are designed to identify issuers of securities that have met certain disclosure and registration requirements for distribution in most states.

These actions in aggregate signal the company’s initiative to provide improved liquidity and transparency for U.S. investors. The ability to have Fenixoro’s shares electronically transferred between brokerage firms in the United States is significantly more efficient and cost-effective for the settlement of securities trading. Existing investors will benefit from greater liquidity and execution capabilities, while new or prospective investors should experience greater access where trading may have been previously restricted and enhanced transparency with respect to the company’s readily available financial information.

Before giving effect to the settlement, Peal had ownership and control over 3,266,6183 common shares of Magna representing approximately 4.44 per cent of the issued and outstanding common shares. After giving effect to the settlement, Peal has ownership or control over 14,266,618 common shares of Magna representing approximately 16.87 per cent of the issued and outstanding common shares.

Peal has no current intention to increase its beneficial ownership of, or control or direction over, securities of Magna. Peal may, depending on various factors including, without limitation, market and other conditions, increase or decrease its beneficial ownership, control or direction over common shares or other securities of Magna, through market transactions, private agreements, treasury issuances, exercises of convertible securities or otherwise.

Peal has prepared an early warning reporting in accordance with the requirements of National Instrument 62-103 — The Early Warning System and Related Take-Over Bid and Insider Reporting Issues that will appear under Magna’s profile SEDAR.

The TSX Venture Exchange has been advised that closing occurred on July 14, 2020, for gross proceeds of $7.13-million (including proceeds under the overallotment option).

Underwriters:  BMO Nesbitt Burns Inc., Beacon Securities Ltd. and Stifel Nicolaus Canada Inc.

Offering:  12.7 million common shares, including all shares issuable under the overallotment option and eight million charity flow-through (FT) common shares

Share price:  30 cents per common share and 41.5 cents per charity FT common share

Overallotment option:  The underwriters were granted an option to purchase an additional 2.7 million common shares (none of which were issuable on a flow-through basis), representing up to 15 per cent of the offering, at 30 cents per additional share for a period of 30 days following closing of the offering, to cover overallotments and for market stabilization purposes. The TSX Venture Exchange has been advised that the overallotment option was fully exercised and the additional shares under the overallotment option were issued at closing of the offering.

For further information, refer to the company’s prospectus dated July 9, 2020, and its news release dated July 14, 2020, which are available under the company’s profile on SEDAR.

Under the terms of the agreement, the company has agreed to acquire the target by issuing up to 9.74 million common shares on closing and paying an aggregate of $5-million (U.S.) within 12 months from closing of the acquisition. The company may elect to cause the target to grant Timmins a 1-per-cent net smelter return royalty on a portion of the property in lieu of the cash consideration.

Additionally, the exchange has accepted for filing documentation pertaining to a letter of intent between the company and Peal de Mexico S.A. de C.V., dated April 6, 2020, as amended on May 1, 2020, and the acknowledgment of debt and payment agreement dated June 29, 2020, between the target and Peal, whereby the arbitration procedure between the target and Peal is settled for the following consideration: (i) the issuance of 11 million common shares at deemed price of 35 cents per share; and (ii) the payment of $3,495,130.18 (U.S.) plus value-added tax in cash within a period of 18 months from execution of the settlement agreement.

The company has also agreed to remunerate Medalist Capital Ltd. and Trinity Advisors Corp. for their advisory services in connection with acquisition by paying the aggregate of $240,000 in cash and issuing 1.03 million shares at deemed price of 40 cents per share.

For more information, please refer to the company’s news releases dated March 6, 2020, April 24, 2020, May 6, 2020, June 22, 2020, and June 30, 2020.

“The depth potential continues to stand out with additional high-grade results from the lower 36E zone that demonstrate the continuity of mineralization well below the current resource boundary. All holes drilled as part of this campaign have intersected mineralization within the targeted geological units, with most holes returning high-grade intercepts, often accompanied by visible gold showings. Of note, OB-19-98W2 returned 37.76 grams per tonne gold over 2.00 m approximately 720 m below the surface, and 60 m west and 100 m above previously released intercept of 66.71 g/t Au over 4.70 m. Drilling continues to demonstrate strong continuity of high-grade mineralization down to 950 m, and within what appears to be a mineralized trend bearing similarities to that historically mined at the Old O’Brien mine. Mineralization remains open for expansion laterally and at depth, with additional drilling under way to expand mineralization to the west in a largely untested area below the resource boundary.

“In addition, shallower drilling aimed at resource expansion and conversion has continued to deliver high-grade results in the upper 400 m of the deposit. In particular, drill hole OB-20-127 returned 3.07 g/t Au over 32.20 m close to the western boundary of currently defined resources, including four high-grade subintercepts (5.20 g/t Au over 2.00 m, 7.12 g/t Au over 2.70 m, 6.52 g/t Au over 2.30 m and 8.04 g/t Au over 3.20 m) within and outside the boundary of currently modelled inferred resources. Our team is currently developing additional drill targets on this part of the deposit, which remains open laterally for resource expansion. Another shallow hole, OB-20-135, drilled 300 m east of this area, returned 18.15 g/t Au over 4.40 m at the fringe of an indicated resource block, confirming and expanding mineralization 15 m east of a historical intercept of 125.31 g/t Au over 3.05 m.

“Our exploration program is focused on three key opportunities for resource expansion: the western extension of the first mineralized trend defined on Lower 36E, the second mineralized trend recently highlighted approximately 300 m east of the first trend, and on resource expansion opportunities at shallower depths east and west of these two trends.

“Results released so far represent only about 45 per cent of our fully funded 60,000 m program. With three drill rigs now operating at O’Brien, we look forward to releasing additional updates as we continue to drill test high-potential targets over the coming months,” commented Mario Bouchard, president and chief executive officer.

                           EXPLORATION HIGHLIGHTS
 
Hole                    From               To      Core length         Au uncut
                         (m)              (m)              (m)            (g/t)
OB-19-98W1
                      916.00           918.50             2.50             5.70
                      917.00           917.50             0.50            28.10
OB-19-98W2
                      860.80           862.80             2.00            37.76
                      861.80           862.80             1.00            75.20
OB-20-123
                      349.60           351.60             2.00             8.00
                      350.60           351.60             1.00            15.90
                      534.25           536.85             2.60             5.12
OB-20-125
                      516.65           519.30             2.65             6.89
                      516.65           517.90             1.25            14.17
OB-20-127
                      103.50           105.50             2.00             7.68
                      104.50           105.50             1.00            15.32
                      468.00           500.20            32.20             3.07
                      470.00           472.00             2.00             5.20
                      476.90           479.60             2.70             7.12
                      486.30           488.60             2.30             6.52
                      497.00           500.20             3.20             8.04
OB-20-128
                      157.90           160.15             2.25             4.91
                      158.35           158.85             0.50            17.80
OB-20-129
                      173.00           175.00             2.00             7.09
                      173.00           174.00             1.00            13.75
OB-20-131
                      214.35           219.60             5.25             5.52
                      215.40           217.75             2.35             8.70
                      241.00           243.35             2.35             6.77
                      241.50           242.40             0.90            15.70
OB-20-133
                      216.00           218.00             2.00             9.09
                      216.00           217.00             1.00            13.85
OB-20-135
                      237.10           241.50             4.40            18.15
                      237.10           237.90             0.80            44.80
                      239.00           241.50             2.50            17.33
                      240.00           241.00             1.00            39.50
OB-20-136
                      523.00           525.00             2.00             7.61
                      523.00           524.00             1.00            12.00
OB-20-137
                      399.00           401.00             2.00             6.21
                      399.00           400.00             1.00            10.70

(1) Core length or downhole width. True widths are estimated at 70 per cent to 
80 per cent of downhole width. To the extent possible, primary intercepts 
reflect minimum mining width (1.5 m true width) consistent with assumptions 
used in the 2019 resource estimate.
(2) Assay grades shown uncapped. A capping factor of 60 g/t Au was used in 
the 2019 resource estimate. 
(3) Table includes only intercepts that meet five g/t Au cut-off and minimum 
mining width constraints used in the 2019 MRE.

Lower 36E zone (below 600 m) — expansion drilling at depth:

• Hole OB-19-98W2 returned 37.76 grams per tonne gold over 2.00 m core length (vertical depth of 720 m) with visible gold showing in a smoky quartz vein:
  • The intercept was obtained 720 m below the surface at the 36E zone;
  • 100 m above and 75 m to the west of previously released intercept of 66.71 g/t Au over 4.70 m (OB-19-92W2b).
• Hole OB-19-98W1 returned 5.70 g/t Au over 2.50 m core length (vertical depth of 950 m approximately) with visible gold showings:
  • The intercept was obtained 75 m below OB-19-98W2 and 75 m west of OB-19-92W2b.

In addition, OB-19-98W3, drilled approximately 60 m east of OB-19-98W2, also intersected mineralized zones in the targeted structures including a visible gold showing, albeit within a wider, lower-grade envelope.

Current resources at the 36E zone are limited to 600 m vertical depth. Additional drilling is planned to establish the resource potential in the Lower 36E area; drilling thus far suggests strong continuity of mineralization down to 950 m, within an area extending approximately 300 m laterally and 350 m vertically below the resource boundary. This area remains a key focus for the current drilling program with one drill rig currently drilling a first wedge branch from a pilot hole (OB-20-148) with the objective of testing the western lateral extension of the high-grade mineralized trend defined on Lower 36E.

Upper 36E zone (above 600 m) — resource expansion and conversion drilling:

• Hole OB-20-127 returned 3.07 g/t Au over 32.20 m core length (vertical depth of 430.00 m):
  • This includes multiple high-grade structures including:
    • 5.20 g/t Au over 2.00 m core length;
    • 7.12 g/t Au over 2.70 m core length;
    • 6.52 g/t Au over 2.30 m core length;
    • 8.04 g/t Au over 3.20 m core length.
  • Results highlight the opportunity to expand inferred resources in a sparsely drilled area just above higher-grade intercepts within the main mineralized trend at the 36E zone.
  • The area remains open laterally in both directions.
  • See assay details for 3.07 g/t Au over 32.20 m (OB-20-127).
• Hole OB-20-135 returned 18.15 g/t Au over 4.40 m core length (vertical depth of 190.00 m) including:
  • 44.80 g/t Au over 0.80 m core length;
  • 17.33 g/t Au over 2.50 m core length;
  • 300 m east of main mineralized trend at the 36E zone and 15 m east of historical intercept, which returned 125.31 g/t Au over 3.05 m;
  • Results demonstrate potential to expand indicated resources in the area.

Drill holes completed within the resource area have generally been successful in confirming high-grade mineralization within and at the fringe of key indicated resources blocks. They have also demonstrated the opportunity to further expand some of these blocks and convert inferred resources at shallower depths. OB-20-127 (3.07 g/t Au over 32.20 m), OB-20-123 (8.00 g/t Au over 2.00 m and 5.12 g/t Au over 2.60 m) and OB-20-125 (6.89 g/t Au over 2.65 m) were completed within and at the fringe of modelled inferred resources demonstrating continuity of mineralization and highlighting an opportunity to expand resources in an area that remains open laterally in both directions and sparsely drilled between 430 m and 550 m vertical depth. Hole OB-20-135 (18.15 g/t Au over 4.40 m), drilled 300 m east of the main mineralized trend at the 36E zone, also appears to highlight the lateral extension of high-grade mineralization at the fringe of indicated resources.

Fully financed for the completion of the 60,000 m program:

• To date 72 drill holes have been completed for a total of 34,230 m; assays are pending for 6,967 m of drilling in 18 drill holes.
• With approximately $8.5-million in treasury, Radisson is fully financed to complete and expand the 60,000 m drill program.

Q2 2020 Highlights

• Anaconda sold 3,712 ounces of gold in Q2 2020, generating metal revenue of $8.4 million at an average realized gold price1 of $2,249 (US$1,674) per ounce sold. As at June 30, 2020, the Company had 470 ounces of gold in gold dore inventory, which was subsequently sold in July.
• Point Rousse produced 3,657 ounces of gold in Q2 2020, a 26% increase compared to Q2 2019, due to higher mill availability. Production for the first six months of 2020 was 8,654 ounces.
• Mine operations produced 111,167 tonnes of ore during the second quarter from the Pine Cove open pit at an average grade of 1.22 g/t at a strip ratio of 5.1 waste tonnes to ore tonnes. The Company ended the second quarter with over 36,000 tonnes of ore in stockpiles.
• The Pine Cove Mill processed 118,333 tonnes during Q2 2020 and achieved a recovery rate of 86.4%, an increase in throughput of 22% compared to Q2 2019 when unplanned maintenance of the regrind mill led to lower mill availability.
• Anaconda announced drill results from multiple locations at the Point Rousse Project, including the Argyle Deposit where work is progressing on a mineral resource, reserve, and development plan, and exciting wide, high-grade intercepts at the Stog’er Tight Deposit.
• The Company initiated a 5,500-metre infill diamond drill program at the Goldboro Gold Project, to convert priority Inferred Mineral Resources, considered proximal to planned development under the ongoing feasibility study, into Indicated Mineral Resources.
• On July 16, 2020, Anaconda announced a non-brokered private placement for up to $5.51 million, which will accelerate its highly prospective exploration and diamond drill programs in Atlantic Canada.
• As at June 30, 2020, the Company had a cash balance of $5.5 million, preliminary working capital1 of $6.1 million, and additional available liquidity of $0.3 million2 from an undrawn revolving line of credit facility.

"During the second quarter, amid the ongoing uncertainty related to the COVID-19 pandemic, Anaconda sold 3,712 ounces of gold to generate metal revenue of $8.4 million at record high Canadian dollar gold prices. We have noted some variability to the block model that has impacted tonnes and grade in the second quarter which we are addressing, plus we have also identified areas of opportunities in the Pine Cove open pit based on ongoing blast hole assays and definition drilling which could positively impact the production profile going forward. We are also advancing the development of Argyle and expect to announce further details on the mineral resource and reserve soon, with the potential to accelerate the contribution of ore from Argyle to production. The second quarter also saw the announcement of strong drill results at Stog'er Tight and the initiation of a 5,500 metre drill program at the Goldboro Gold Project. Our $5.5 million of cash combined with our recent private placement of up to $5.51 million gives us the financial wherewithal to execute our growth strategy."

~ Kevin Bullock, President and CEO, Anaconda Mining Inc.

COVID-19 Pandemic Update – Point Rousse has continued to operate throughout the pandemic and to the Company's knowledge, no employees, contractors, or consultants directly involved with Anaconda, whether at corporate or at site, have been diagnosed with COVID-19. Strict health and safety protocols, including social distancing, remain in place and are continually reviewed based on recommendations from medical authorities. Due to the low number of cases in Atlantic Canada, individuals are now able to move between the provinces and the Company has been able to resume its exploration activities, including at the Tilt Cove Gold Project.

Annual General and Special Meeting

Anaconda Mining Inc. will hold its Annual General and Special Meeting (the "Meeting") on July 30, 2020, beginning at 10:00 AM ET (Toronto). To proactively deal with the unprecedented public health impact of COVID-19, to ensure that no one is unnecessarily exposed to any risks, and to comply with recent Provincial and Federal guidance regarding public gatherings, shareholders and proxyholders are strongly encouraged NOT to attend the Meeting in person. Furthermore, so that the Corporation can mitigate potential risks to the health and safety of shareholders, employees, and the community, there will be strict limitations on the number of persons permitted entry to the Meeting in compliance with Provincial health guidance, and anyone who is not a registered shareholder or proxyholder will not be permitted entry.

The Corporation urges all shareholders to vote by proxy in advance of the Meeting and to virtually attend the Meeting through the live conference call details provided below:

Date and Time: Thursday, July 30, 2020, at 10:00 a.m. (Toronto time)

Dial-in Numbers: (877) 407-8031 or (201) 689-8031

Webcast: https://www.issuerdirect.com/virtual-event/anxto

*Participants should dial in approximately 5 to 10 minutes prior to the scheduled start time.

If events arise that require us to make changes to the date, time and/or location of the Meeting we will promptly notify shareholders and communicate any changes through a press release. The Corporation intends to resume holding unrestricted in-person shareholder's meetings in future years.

Second Quarter Operating Statistics
Three months ended Six months ended 
                                   June 30, 2020    June 30, 2019    June 30, 2020    June 30, 2019
Mine Statistics
Ore production (tonnes)                  111,167           78,123          214,388          155,490
Waste production (tonnes)                561,950          427,425        1,123,714          706,837
Total material moved (tonnes)            673,117          505,548        1,338,102          862,327
Waste: Ore ratio                             5.1              5.5              5.2              4.6

Mill Statistics
Availability (%)                            98.4             85.8             98.1             82.0
Dry tonnes processed                     118,333           96,895          231,469          176,653
Tonnes per day ("tpd")                     1,321            1,241            1,296            1,191
Grade (grams per tonne)                     1.11             1.25             1.34             1.55
Recovery (%)                                86.4             74.7             87.0             79.3
Gold Ounces Produced                       3,657            2,907            8,654            7,083
Gold Ounces Sold                           3,712            3,153            8,843            8,404

Operations Overview for the Three Months Ended June 30, 2020

Anaconda sold 3,712 ounces of gold during the second quarter of 2020, generating gold revenue of $8.4 million at an average realized gold price of $2,249 (US$1,674) per ounce sold. Gold production of 3,657 ounces was 26% higher than Q2 2019, due to better mill availability and resulting higher throughput. Low mill availability in Q2 2019 was due to planned maintenance on the main ball mill and unplanned maintenance for the regrind mill. However, gold production in Q2 was down 37% from the first quarter of 2020 due to lower grade, as the mine operation has observed some variability in grade and tonnage in certain lower levels of the Pine Cove pit. Year-to-date production of 8,654 ounces is consistent with the mine plan and the Company remains on track to meet guidance and produce and sell between 18,000 and 19,000 ounces of gold. With mining activity winding down in the Pine Cove open pit, the operation has identified certain opportunities in the pit which may contribute tonnes to the production profile. Also, in light of recent Argyle drill results (see press release dated June 18, 2020) and advancement of the related development plan, the Company is exploring opportunities to accelerate the development of Argyle in the second half of 2020.

1 Refer to Non-IFRS Measures Section below.

Point Rousse Mill Operations – The Pine Cove Mill processed 118,333 tonnes during Q2 2020, an increase of 22% compared to the second quarter of 2019 when a combination of the planned maintenance on the main ball mill with unplanned maintenance on the head of the regrind mill resulted in low mill availability, which impacted throughput. Since the challenges experienced in the second quarter of 2019, the mill has operated consistently and effectively, maintaining high levels of mill availability and throughput since.

Average grade during Q2 2020 was 1.11 g/t, an 11% decrease over the second quarter of 2019, when mill feed was primarily from the higher-grade Stog'er Tight Mine, and a decrease of 31% from Q1 2020 as the mine experienced variability to the block model in certain lower areas of the pit. The mill achieved an average recovery rate of 86.4%, an increase from 74.7% achieved in Q2 2019 despite the lower grade profile in Q2 2020. The higher throughput and better recovery resulted in gold production of 3,657 ounces, an increase of 26% compared to the second quarter of 2019.

Point Rousse Mine Operations – During the second quarter of 2020, the mine operations produced 111,167 tonnes of ore from the Pine Cove Pit, a 42% increase from Q2 2019, which reflects the higher mining rate at the Pine Cove Pit compared to the lower tonnage profile of mining at Stog'er Tight, which was the main mining area in the prior period. The Company ended the second quarter with an ore stockpile of over 36,000 tonnes.

The mine operations achieved a strip ratio of 5.1 waste tonnes to ore tonnes at the Pine Cove Pit, a decrease compared to Q1 2020 as the operation moves into the bottom levels of the Pine Cove Pit. The strip ratio is expected to continue to decrease throughout 2020. The strip ratio is lower compared to the second quarter of 2019 when mining activity included development of the pushbacks to the Pine Cove Pit.

During the second quarter, the mine operation experienced grade and tonnage variability in lower levels of the pit as it approached the outer limits of the mine model. The operation has also identified further tonnage opportunities from blast hole assays, which it will continue to test moving forward. The Company is also expecting permits for Argyle in early August, which could enable accelerated development of the Argyle Deposit.

The adjournment of the June 19th meeting was to allow the Company the opportunity to solicit additional proxies for Proposal #3 to the stockholders concerning the recommended approval of an amendment to the Company’s certificate of incorporation providing the Board of Directors the flexibility to effect a reverse stock split of the Company's common stock. This proxy proposal had been prompted by the notices of deficiency by the NYSE American LLC in September 2019 and March 2020, as the General Moly stock had traded for a low price for an extended period of time. Following the approval of Proposal #3, the Company will work with the NYSE American to complete any compliance requirements with the stock exchange's continued listing standards.

Stockholders re-elected Gary A. Loving and Gregory P. Raih to the Board of Directors to each serve for a term of three years. In addition, at the Annual Meeting of Stockholders, stockholders approved the Company's executive compensation structure through an advisory vote; and ratified the selection of Plante & Moran PLLC as the Company's independent registered public accounting firm for 2020.

The drill results confirm the prospectivity of near surface, multiple veins and hydrothermal breccia systems close to existing underground development, which will facilitate access for follow up in our upcoming drill program. Significantly, these drill holes also indicate the discovery of multiple subparallel mineralized systems below the current footwall of previously mined areas.

A large epithermal system is evident based on the most recently released set of drill results. The Company has initiated a shallow (100-150 m depth) surface drilling program aiming to confirm the mineralization footprint and the new high-grade vein discoveries along strike and down dip.

GR Silver Mining President and CEO, Marcio Fonseca, commented, “The mineralized veins and hydrothermal breccias at the Plomosas Mine Area were originally interpreted to be confined only along the major Plomosas Fault, however our recent validation and integration of all drill results, underground structural mapping and sampling, supports the occurrence of additional mineralized veins outside of that major structure.

1. AgEq is based on long term gold, silver, zinc and lead prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc and US$0.95 per pound lead. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb and 70% Zn.

These results illustrate the potential to expand Ag-Au mineralization along strike and down-dip, creating a much larger mineralized footprint for future resource estimation. Some of our recently released results are particularly impressive, not only for the thickness of the mineralization but also average grade, reporting intervals of 11.0 m at 1,235 gpt Ag and 5.4 m at 1,096 gpt Ag including 2.0 m @ 2,484 gpt Ag. The recent progress of the surface and underground exploration program suggests that these high-grade veins extend and are open down plunge. With further success, we anticipate that the high-grade multi-vein mineralization in the Plomosas Mine Area will add additional mineralized zones for future resource delineation”.

Table 1 summarizes the most significant drill assay results for this group of holes released for the Plomosas Mine Area.

Table 1: Summary Drill Hole Results - News Release July 20, 2020 (Plomosas Mine Area)
  
  
   Hole No.Hole TypeFrom (m)To (m)Drilled width (m)Est. true width (m)Ag g/tAu g/tPb %Zn %AgEq g/t
SD-14   SURF     102.0   105.4 3.4              2.8                123    na    na 0.1         
SD-17   SURF     81.0    84.7  3.7              3.5                169    na    na 0.1         
SD-17   SURF     93.4    107.4 14.0             13.2               239    na   0.1 0.3 252     
includes         98.7    105.3 6.6              6.2                362    na   0.2 0.5         
SD-20   SURF     93.3    126.4 33.1             32.6               35     na   0.1 0.2         
SD-39   SURF     79.0    84.4  5.4              4.4                161    na    na 0.1 168     
SD-39   SURF     96.3    98.8  2.5              2                  928    na   0.1 0.2 935     
SD-40   SURF     101.5   112.4 10.9             10.7               84     na   0.1 0.2         
SD-41   SURF     61.1    65.7  4.6              4.6                39    0.1   0.1 0.2         
SD-43   SURF     106.0   111.4 5.4              2.7                1,096  na   0.3 0.2 1,112   
includes         106.0   108.0 2.0              1                  2,484  na   0.7 0.3 2,498   
SD-43   SURF     118.0   123.0 5.0              2.5                234    na   0.0 0.1 240     
SD-55   SURF     173.0   175.3 2.3              1.6                19     na   1.7 5.3         
SD-79   SURF     205.8   213.7 7.9              5.1                6      na   0.6 0.7         
117     UG       6.3     9.3   3.0              1.3                191    na   1.1 0.9 254     
117     UG       20.5    21.4  0.9              0.4                375    na   3.0 2.1 536     
277-IM  UG       26.5    30.5  4.0              3.1                103   0.1   0.8 1.4 172     
 279-IM UG       25.3    38.3  13.0             10                 328   0.2   0.5 1.2 397     
281     UG       8.0     11.0  3.0              3                  16    0.3   1.2 2.9         
281     UG       14.0    18.0  4.0              4                  27    0.2   1.4 3.8         
281     UG       44.0    48.0  4.0              4                  12    0.1   1.6 2.7         
282     UG       2.0     4.0   2.0              1.9                20    0.4   1.9 5.0         
282     UG       6.0     8.0   2.0              1.9                50    3.8   1.9 9.0 745     
283     UG       14.0    20.0  6.0              3                  18    0.8   2.1 6.6         
283     UG       78.0    80.0  2.0              1                  185   0.8   1.5 2.1 377     
284     UG       38.5    40.5  2.0              2                  18    0.2   5.9 3.2         
286     UG       103.0   105.0 2.0              2                  4     0.1   0.1 2.4         
287     UG       96.0    101.0 5.0              4.8                7     0.2   1.9 1.9         
288     UG       76.8    80.8  4.0              3.5                9     0.4   0.5 2.7         
294     UG       51.7    52.7  1.0              0.6                18    0.2   0.6 3.0         
PLI17-18UG       51.9    55.3  3.4              3.3                15    0.1   0.5 3.4         
includes         53.4    53.9  0.5              0.5                59    0.2   2.6 11.3480     
PLI17-18UG       119.4   124.5 5.1              5                  147   0.9   0.1 0.2 244     


  
  

*AgEq is based on long term gold, silver, zinc and lead prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc and US$0.95 per pound lead. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb and 70% Zn. “na” = no relevant assays. All numbers are rounded. Results are uncut and undiluted. UG: Underground Drill Hole, SURF: Surface Drill Hole

The drill holes in this news release were generated by a drill campaign completed by First Majestic Silver Corp. (“First Majestic”) in 2017 (PLI17-08), and historical drill holes completed by Grupo Mexico. Both drill sets were not previously released. They are part of an extensive surface and underground diamond core drilling database, which GR Silver Mining continues to consolidate and validate. The Company recently announced a surface drilling program (see News Release dated July 15, 2020 ) which aims to expand the mineralization footprint along strike, which will lead to the first 3D geological model and resource estimation at the Plomosas Mine Area.

Table 2 lists the drill hole intervals previously not sampled (“NS”) for this group of released holes. The Company is investigating these intervals for evidence of mineralization in the core that warrants additional sampling and assaying. Additionally, Table 3 provides collar coordinates for the drill holes presented in this news release.

Table 2: Plomosas Mine Area - Drill Hole Intervals Not Sampled (Intervals greater than 20m)
  
  
   Hole No.From-To (m) Sampling
PLI17-1815.05-45.55 NS      
PLI17-1887.75-115.0 NS      
PLI17-18171.15-209.7NS      


  
  
   All numbers are rounded. NS - Core not assayed by First Majestic


  

The Plomosas Mine Area drill results continue to demonstrate the continuity of higher-grade precious and base metals mineralization along strike, expanding the footprint of the low sulphidation epithermal system for approximately 500 m. The high grades encountered, Ag-Pb-Zn and Ag, occur in an area with multiple deep-rooted fault systems and are confirming the presence of unmined near surface high-grade mineralized zones for upcoming drilling follow-up.

• Three potential zones of gold mineralization identified at Kaaresselka.
• Potential gold-bearing structure linking Aamurusko to Notches identified in till sampling on 2.5-kilometre-long magnetic anomaly.
• Recent discoveries on Rupert Resources’ property drilled approximately 200 metres from the property boundary with Aurion’s Kutuvuoma joint venture with B2 Gold Corp.

Since the initial discovery of high-grade gold mineralization at Aamurusko in late 2016 the company has discovered extensive surface gold mineralization over an area of approximately nine kilometres (km) by 15 km in a setting previously unrecognized as having potential for orogenic gold. One of the targets identified is the advanced Kaaresselka prospect located roughly four km to the south of Aamurusko, which was acquired from a third party in 2017. The company compiled and reinterpreted all historical drill data from three separate zones into a 3-D model, generating numerous drill targets.

Reconnaissance base of till (BoT) and heavy mineral concentrate (HMC) sampling completed in the overburden-covered gap area between Aamurusko and Notches, called Niligap, has identified new targets for follow-up.

Finally, Rupert Resources’ new Ikkari and Heina discoveries, drilled near the company’s Kutuvuoma joint venture (JV) property boundary, suggests mineralization continues to the west onto the JV property. In addition, the company noted that the same structural and stratigraphic setting occurs for approximately 16 km on Risti, from Risti Northwest to Notches.

Highlights

• At Kaaresselka, previous drilling completed by the GTK (Finnish Geological Survey) and Tertiary Minerals identified three zones of gold mineralization over an area of approximately 1.0 km by 0.6 km all within 150 m of surface.
• In the Niligap zone, 41 HMCs from BoT samples were collected along an approximately 2.5 km long high magnetic feature that suggests geologic continuity from Aamurusko to Notches.
  • All the samples were above the 95th percentile for the distribution of gold grains in till samples in the Central Lapland greenstone belt.
• Other regional targets: Aurion has identified a 16 km long northern basin bounding structure, which is a contact between the Kumpu and Savukoski groups that appears to be the same unconformity that is present in the area of Rupert Minerals’ recent discovery.
• Launi: Assays are currently pending on holes drilled at the company’s wholly owned Launi East property. The company is fully financed for 2020.

Kaaresselka

Kaaresselka is a road-accessible advanced gold prospect approximately four km south of Aamurusko Main. It was originally discovered through BoT sampling by the Finnish Geological Survey (GTK) in 1987. There are 127 historical drill holes (GTK drilled 112 and Tertiary Minerals drilled 15) totalling 8,900 m including seven RC drill holes and 120 diamond drill holes. Drilling intersected a number of high-grade intercepts including 11.01 grams per tonne Au over 4.90 m. Aurion acquired the project from Tertiary Minerals in 2017.

Additional work by Aurion on the Kaaresselka project included relogging of all drill holes, oriented core measurements, a detailed ground magnetic survey, whole rock geochemistry, GIS compilation and integration of historical data into 3-D modelling software. This compilation work has allowed for a reinterpretation of the geology and a better understanding of the property’s potential. The main host lithology is strongly altered and sheared mafic volcanics, which is a classic setting for major orogenic gold deposits.

Three individual zones, Vanha, Tienvarsi and Lampi, are found in a one km by 0.6 km area. Historical drilling was shallow with gaps along the strike of the zones. Aurion’s additional analysis suggests there is excellent potential along strike and down dip of these gold-bearing structures.

At Vanha, a 500 m long east-west-trending mineralized zone was drilled to a depth of 140 m and appears to be open in both directions along strike and at depth.

At Tienvarsi, drilling identified a 400 m long northwest-to-southeast-trending mineralized zone to a depth of 96 m. Mineralization at Tienvarsi appears to be open in all directions.

At Lampi, drilling identified two proximal 200 m long mineralized zones to only 100 m depth. Mineralization at Lampi appears to be open in all directions.

Aurion is currently planning a confirmation drill program at Kaaresselka for later this summer.

Niligap zone

Niligap is a 2.5 km long gap between the Aamurusko prospect, where Aurion has drilled multiple high-grade gold intercepts, including 2.89 m of 789 g/t Au, and the Notches prospect, a five km by one km area where over 2,669 angular boulders and outcrop samples averaging approximately 2.2 g/t Au were collected. The gap area is covered with thick glacial till.

In 2019, Aurion completed a BoT and HMC sampling program using an excavator to dig test pits on 10 to 200 m spacings. Forty-one samples were collected primarily to test a 2.5 km section of an east-west-trending magnetic high between Aamurusko Main and Notches as well as provide information on the glacial drift stratigraphy. The highest gold counts were along the magnetic high, which may represent a volcanic conglomerate unit, proximal to the unconformable contact between the older Sodankyla group volcanics and the younger Kumpu group sedimentary rocks. Indicator mineral sample size was five litres (about 10 kg) and samples were preconcentrated with a Knelson concentrator and panned for microscope grain counting. The recovered gold grains, which are up to 0.6 millimetre in size, are mostly pristine, indicating short transport distances. Grain counts were from 31 to 106 grains, which are all above the 95th percentile (27 grains) of historic regional heavy mineral sampling by Outokumpu (former state mining company) in the Central Lapland greenstone belt. These results highlight the gold anomalous nature of the Niligap zone and provide additional evidence of a potential gold-bearing structure present between Aamurusko and Notches.

Aurion is currently following up on the results with a wider sampling program at Niligap.

Other regional targets

The recent drill results announced by Rupert Resources, at its new Ikkari and Heina discoveries, immediately adjacent to Aurion’s wholly owned Risti property and the company’s Kutuvuoma joint venture (JV) with B2 Gold Corp., occur in a similar geological setting that occurs on both of those properties, near the contact between the young clastic sediments of the Kumpu group and older volcanics and sediments of the Savukoski group. These discoveries were drilled approximately 200 m north of Aurion’s Kutuvuoma JV property boundary and appear to extend to the west onto the JV property. B2 Gold Corp. is the operator of the JV and is currently drilling on the JV properties, including Kutuvuoma.

In addition, a number of the structures are believed to continue onto Aurion’s Risti property and 16 km of the Kumpu-Savukoski contact is present from the Risti Northwest (NW) target to Notches. Previous sampling by Aurion, proximal to this contact in the Risti NW target area, returned grab sample values of 27.0, 31.7 and 109 g/t Au from quartz blocks carrying visible gold (VG). Notches refers to a five km long by one km wide outcrop ridge notched with four lineaments identified from lidar imagery. Prospecting this ridge lead to multiple gold showings in subcropping quartz veins. Over 2,669 surface grab samples that averaged 2.2 g/t Au were collected over the 5,000 square m area. Aurion geologists note similar geology at Aamurusko and Notches, which are on strike with one another and 2.5 km apart. Mechanical trenching of surface gold showings at Notches exposed gold-bearing stockwork, breccia and shear quartz veins and importantly, gold-bearing conglomerate.

Aurion completed two drill holes in 2018 that targeted gold-mineralized conglomerate and quartz veins that returned drill core intercepts of 20.30 g/t Au over 0.65 m from 27.40 m (Drill hole NT18006) and 2.99 g/t Au over 2.10 m from 31.40 m (drill hole NT18005).

Easy road access and gentle topography at Notches allows for efficient and cost-effective drilling. The company is planning additional surface exploration work on the northern structure and at Notches to identify targets for potential drilling.

Comments

“The discovery of high-grade gold mineralization over a large area affirms our belief in the district-scale gold potential at Risti. The recent work completed by our team has provided us with additional evidence of this potential but also generated and refined new and existing priority targets,” says Mike Basha, Aurion’s president. “At Kaaresselka, which has been dormant for many years, there are ore grades over ore widths from multiple zones over several hundred metres strike that are open along strike and at depth. We look forward to following up on these results with further work, including drilling.”

Launi

Drilling on Launi East, which is located approximately eight km to the southeast of Risti, recently concluded to give the in-country team time to catch up on a significant backlog of core to be logged, cut and sent to the assay lab. Results will be announced pending receipt of assays.