The transaction consolidates the O’Brien, Kewagama and New Alger gold mine properties into one continuous package covering approximately five kilometres of the gold localizing Cadillac break with several National Instrument 43-101 resources.

Globex is pleased with the transaction and points out to its shareholders that Globex currently owns 9.55 million shares of Renforth, holds a 1-per-cent net smelter royalty on the New Alger gold mine property as well as a 2-per-cent NSR on the Kewagama gold mine portion of the O’Brien/Kewagama property as well as a 3-per-cent gross metal royalty on Renforth’s flagship Parbec gold property. Radisson is currently drilling on the O’Brien/Kewagama property and the acquisition of the New Alger gold mine property extends the exploration potential of their successes there along the prolific Cadillac break.

This press release was written by Jack Stoch, Geo, president and chief executive officer of Globex, in his capacity as a qualified person under NI 43-101.

Pursuant to the investor rights agreement between Cartier and Agnico Eagle Mines Ltd., Agnico Eagle elected to maintain its pro rata 16.4-per-cent interest in Cartier.

The gross proceeds from the offering will be used by the company to advance and explore, respectively, the company’s Chimo mine and the Benoist project. These expenditures will be eligible Canadian exploration expenses that will qualify as flow-through mining expenditures as such terms are defined in the Income Tax Act (Canada) related to the company’s projects in Quebec. All qualifying expenditures will be renounced in favour of the subscribers of the flow-through shares effective Dec. 31, 2020.

The shares issued under the offering are subject to a four-month-and-one-day hold period expiring on Dec. 12, 2020. The offering remains subject to the final approval of the TSX Venture Exchange.

The proceeds from the private placement will be used for exploration on the company’s projects and general corporate purposes. All shares issued in connection with the private placement are subject to a statutory hold period in Canada expiring four months and one day from the date of issuance. No commission is payable in connection with the private placement.

The private placement constituted a related party transaction within the meaning of TSX Venture Exchange Policy 5.9 and Multilateral Instrument 61-101 as certain insiders of the company subscribed for an aggregate of 4,626,352 shares pursuant to the private placement. The company is relying on the exemptions from the valuation and minority shareholder approval requirements of MI 61-101 contained in sections 5.5(b) and 5.7(1)(a) of MI 61-101 as the fair market value of the participation in the private placement by insiders does not exceed 25 per cent of the market capitalization of the company, as determined in accordance with MI 61-101. The company did not file a material change report in respect of the related party transaction at least 21 days before the closing of the private placement, which the company deems reasonable in the circumstances in order to complete the private placement in an expeditious manner.

Ms. Siwanowicz brings over 25 years of business law experience. From 1991 to 2016, Ms. Siwanowicz practised law at McMillan LLP and its predecessor, Lang Michener LLP, with an emphasis on securities law. She has significant experience advising public companies on corporate finance, mergers and acquisitions, regulatory compliance, and corporate governance matters.

“On behalf of the board of directors, I would like to welcome Hellen to the board,” said Gerald Panneton, executive chairman of Gold Terra. “Her level of experience and knowledge will further strengthen the board’s skills as Gold Terra continues to advance exploration and realize the full value potential of its Yellowknife City gold project.”

David Wolfin, President and CEO commented, “Similar to many other mining companies, Avino’s financial performance for the second quarter was impacted by the temporary mine shutdown due to Covid-19, which in turn resulted in decreased production.

At the beginning of June, the Company announced a phased ramp-up of operational activities and a production restart. As we head into the second half of the year, our plans to commence the 2020 exploration program, as well as connect the underground levels at the Avino Mine to allow for a higher haulage rate to surface for processing, have been put on hold with the current strike action.

I would like to thank our employees globally for their dedication and commitment to safety during these challenging times. The health and wellness of all of our employees and stakeholders continues to be imperative along with protecting our shareholder’s interests.”

Second Quarter 2020 Financial Highlights

• — Revenues from mining operations of $4.8 million, down 38% from Q2 2019
• — Mine operating income of $0.8 million, up 166% from Q2 2019
• — Loss before interest, taxes, depreciation, and amortization (“EBITDA”)2 of $0.8 million
• — Adjusted EBITDA2 of $2.0 million
• — Net loss from continuing operations of $1.1 million, or $0.01 per share
• — Consolidated cash costs2 of $10.92 per silver equivalent payable ounce1
• — Consolidated all-in sustaining cash cost (“AISC”)2 of $16.37 per silver payable equivalent ounce1
• — Working capital of $13.8 million
• — Reduction in term facility and equipment debt by $2.2 million since December 31, 2019

1. In Q2, 2020, AgEq was calculated using metals prices of $16.38 oz Ag, $1,707 oz Au and $2.45 lb Cu. In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 lb Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA, and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

HIGHLIGHTS      (Expressed in 000's of US$)              Second quarter 2020 Second quarter 2019   YTD 2020  YTD 2019
Financial                                      
Revenues                                                      $        4,840       $      7,813  $  11,956  $  14,524
Mine operating income                                         $          787       $        296  $   1,630  $     352
Net loss from continuing operations                           $      (1,111)       $      (125)  $ (1,343)  $   (664)
Net loss including discontinued operations                    $      (1,276)       $      (166)  $ (1,508)  $   (776)
Cash                                                          $       10,386       $      3,405  $  10,386  $   3,405
Working capital                                               $       13,797       $      8,665  $  13,797  $   8,665
Earnings before interest, taxes and amortization  
("EBITDA")1                                                   $        (797)       $        609  $   (425)  $     658
Adjusted EBITDA1                                              $        1,958       $        350  $   2,349  $     350
Per Share Amounts                                             
Loss per share from cont. operations  -- basic                $       (0.01)       $          -  $  (0.02)  $  (0.01)
Loss per share -- basic                                       $       (0.02)       $          -  $  (0.02)  $  (0.01)
Cash Flow per share (YTD)1 -- basic                           $            -       $       0.01  $       -  $    0.01

1. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA, and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

Costs and Capital Expenditures:

Capital expenditures for the first half of 2020 were $0.7 million compared to $4.9 million for the corresponding period in 2019, with the decrease due mostly to the timing of expenditures and a cautious approach regarding the current COVID-19 pandemic. We expect that this amount will increase later into 2020, as certain capital expenditures have been pushed into the latter half of the year, and potentially into 2021.

Operational Highlights and Overview

HIGHLIGHTS
(Expressed in US$)                             Second quarter 2020 Second quarter 2019   YTD 2020   YTD 2019
Operating           
Tonnes Milled                                               40,190            200,873     204,286    398,560
Silver Ounces Produced                                      50,581            246,129     317,299    514,528
Gold Ounces Produced                                           404              1,609       1,935      3,422
Copper Pounds Produced                                     459,767          1,136,113   2,267,939  2,198,815
Silver Equivalent Ounces1 Produced                         158,286            599,493     842,230  1,214,512
Concentrate Sales and Cash Costs                         
Silver Equivalent Payable Ounces Sold3                     322,886            618,894     897,953  1,141,521
Cash Cost per Silver Equivalent Payable Ounce1,2,3    $      10.92       $      10.89    $  10.22   $  11.14
All-in Sustaining Cash Cost per Silver Equivalent 
Payable Ounce1,2,3                                    $      16.37       $      15.61    $  15.42   $  15.89

1. In Q2, 2020, AgEq was calculated using metals prices of $16.38 oz Ag, $1,707 oz Au and $2.45 lb Cu. In Q2, 2019, AgEq was calculated using metals prices of $14.88 oz Ag, $1,309 oz Au and $2.77 lb Cu. Calculated figures may not add up due to rounding.

2. “Silver equivalent payable ounces sold” for the purposes of cash costs and all-in sustaining costs consists of the sum of payable silver ounces, gold ounces and copper tonnes sold, before penalties, treatment charges, and refining charges, multiplied by the ratio of the average spot gold and copper prices to the average spot silver price for the corresponding period.

3. The Company reports non-IFRS measures which include cash cost per silver equivalent payable ounce, all-in sustaining cash cost per payable ounce, EBITDA, adjusted EBITDA, and cash flow per share. These measures are widely used in the mining industry as a benchmark for performance, but do not have a standardized meaning and the calculation methods may differ from methods used by other companies with similar reported measures. See Non-IFRS Measures section for further information and detailed reconciliations.

As a result of the temporary shutdown due to COVID-19, all production results in Q2 2020 were lower than anticipated compared to Q2 2019. In addition, all production for the quarter came from the Avino Mine only. Silver equivalent production in Q2 2020 decreased by 56% compared to Q2 2019. Copper production decreased by 54%, with silver and gold production decreased by 52 and 50%, respectively. This was offset by higher than planned grades, as well as higher recovery rates as a result of the grade increase and metallurgical improvements.

Operational Overview

Consolidated Production Tables
                                              Q2 2020                                       
Production by Mine                   Tonnes Processed    Silver Oz  Gold Oz   Copper Lb     AgEq

Avino                                          40,190       50,581      404     459,767  158,286
Historic Above Ground Stockpiles                    -            -        -           -        -   
Consolidated                                   40,190       50,581      404     459,767  158,286
                                             YTD 2020                                      
Production by Mine                   Tonnes Processed    Silver Oz  Gold Oz   Copper Lb     AgEq

Avino                                         199,575      312,819    1,916   2,263,082  835,370
Historic Above Ground Stockpiles                4,711        4,481       19       4,857    6,860 
Consolidated                                 204,286       317,299    1,935   2,267,939  842,230

                                Q2 2020              
Grade & Recovery by Mine        Grade Ag g/t  Grade Au g/t  Grade Cu %  Recovery Ag %  Recovery Au %  Recovery  Cu %

Avino                                     43          0.40        0.58             90             79              90
Historic Above Ground Stockpiles           -            -           -               -              -               -
Consolidated                              43          0.40        0.58             90             79              90
                                YTD 2020                                                    
Grade & Recovery by Mine        Grade Ag g/t  Grade Au g/t  Grade Cu %  Recovery Ag %  Recovery Au %  Recovery  Cu %

Avino                                     54          0.40        0.58             90             75              88
Historic Above Ground Stockpiles          59          0.31        0.15             50             41              31
Consolidated                              54          0.40        0.57             89             74              87

* In Q2, 2020, AgEq was calculated using metals prices of $16.94 oz Ag, $1,584 oz Au and $2.56 lb Cu. In Q2, 2019, AgEq was calculated using metals prices of $15.57 oz Ag, $1,304 oz Au and $2.82 lb Cu. Calculated figures may not add up due to rounding.

The Company continues to explore the potential of dry stack tailings as discussed earlier in the year as well as automation upgrades which are still planned and budgeted for. In addition, during the second quarter equipment was installed in Mill Circuit 4 to help boost metallurgical recovery on gold and to a lesser extent silver.

Exercise of Warrants

At the start of the third quarter, the Company received proceeds from the exercise of warrants. The Company will use the proceeds to execute on its operational plans.

Mine Update

Further to the company’s press release dated July 10, 2020, good-faith negotiations with representatives of the authorized union are ongoing and an update will be provided when further information is available.

Non-IFRS Measures

The financial results in this news release include references to cash flow per share, cash cost per silver equivalent ounce, and all-in sustaining cash cost per silver equivalent ounce, EBITDA and adjusted EBITDA, all of which are non-IFRS measures. Cash flow per share, cash cost per ounce, and all-in sustaining cash cost per ounce are measures developed by mining companies in an effort to provide a comparable standard of performance. However, there can be no assurance that our reporting of these non-IFRS measures is similar to that reported by other mining companies. Cash flow per share, cash cost per silver equivalent ounce, and all-in sustaining cash cost per silver equivalent ounce are measures used by the Company to manage and evaluate operating performance of the Company’s mining operations, and are widely reported in the silver and gold mining industry as benchmarks for performance, but do not have standardized meanings prescribed by IFRS, and are disclosed in addition to the prescribed IFRS measures provided in the Company’s financial statements and MD&A.

Conference Call and Webcast

In addition, the Company will be holding a conference call and webcast on Wednesday, August 12, 2020 at 8:00 am PDT (11:00 am EDT). Shareholders, analysts, investors and media are invited to join the webcast and conference call by logging in here http://services.choruscall.ca/links/avino20200812.html or by dialing the following numbers five to ten minutes prior to the start time:

Toll Free Canada & USA: 1-800-319-4610

Outside of Canada & USA: 1-604-638-5340

No passcode is necessary to participate in the conference call or webcast; participants will have the opportunity to ask questions during the Q&A portion.

The conference call and webcast will be recorded, and the replay will be available on the Company’s web site later that day.

Qualified Person(s)

Peter Latta, P.Eng, MBA, Avino’s VP Technical Services, who is a qualified person within the context of National Instrument 43-101 and has reviewed and approved the technical data in this document.

A syndicate of five international financial institutions, including BNP Paribas (BNPP), ING Capital LLC, Mizuho Bank Ltd., Natixis, New York branch, and Societe Generale, will act as the mandated lead arrangers (MLAs). The formal mandate follows the signing of a non-binding indicative term sheet for an up-to-$325-million (U.S.) debt facility.

The execution of the mandate is a key milestone in the project financing process for the development of Araguaia. BNPP, ING, Mizuho, Natixis and Societe Generale have extensive experience in providing project financing to greenfield mining projects and were chosen as mandated lead arrangers due to their extensive Latin American project finance experience and the strength of their mining teams.

Closing of the facility, targeted for end of the calendar year 2020, remains subject to completion of due diligence in form and substance satisfactory to the MLAs, final credit approvals, and execution of definitive facility documentation.

The definitive facility documentation will include customary project finance terms and conditions, as well as a comprehensive intercreditor agreement. Drawdowns under the facility would be subject to customary conditions precedent.

Jeremy Martin, chief executive officer of Horizonte, commented: “The mandating of five international financial institutions, with strong mining and metals track records, for the arrangement of a large senior debt facility is a significant achievement for Horizonte. This debt facility will cover a significant portion of the preproduction capex required to complete the stage 1 construction for Araguaia. We are targeting completion of the project financing package for the project by the end of 2020, provided that restrictions related to the COVID-19 pandemic do not cause further delays. We aim to start construction in early 2021.

“The interest of top-tier financial institutions further validates Araguaia’s status as a Tier 1 nickel project and will be the first of our two 100-per-cent-owned nickel projects to move to the construction phase. This major milestone moves us closer to our goal of becoming a nickel producer. We look forward to updating the market throughout the rest of this year on our progress.”

Endeavour Financial is acting as financial adviser to the company. Norton Rose Fulbright LLP is acting as legal counsel to the company.

The government aeromagnetic survey (SYSMIN), which covers both the Kandiole project area and the area of hole DDMan-20-59, indicates that the Southern Mankouke mineralized trend is faulted off to the west, and the continuation of the Northern mineralization trend is shown by DDMan-20-59.

Drilling highlights:

Southern Mankouke — diamond drill holes:

• 6.15 g/t gold over 46.5 m from drill hole DDMan-20-54 from 118.5 m;
• 5.20 g/t gold over 41.0 m from drill hole DDMan-20-57 from 38.5 m:
  • Including 52.6 g/t over 1.0 m from 61.5 m;
  • And 2.01 g/t gold over 25.0 m from 7.5 m;
• 3.98 g/t gold over 68.0 m from drill hole DDMan-20-56 from 7.5 m;
• 4.89 g/t gold over 22.0 m from drill hole DDMan-20-59 from 7.5 m;
• 4.18 g/t gold over 17.0 m from drill hole DDMan-20-52 from 133.5 m:
  • And 9.57 g/t gold over 7.0 m from 157.5 m;
• 2.92 g/t gold over 18.0 m from drill hole DDMan-20-50 from 114.5 m;
• 2.76 g/t gold over 6.0 m from drill hole DDMan-20-61 from 146.4 m:
  • Including 9.55 g/t over 1.0 m from 151.4 m;
• 1.98 g/t gold over 47.0 m from drill hole DDMan-20-48 from 6.5 m.

Air core drilling:

• 3.00 g/t gold over 20.0 m from drill hole ACMan20-467 from 8.0 m;
• 1.12 g/t gold over 36.0 m from drill hole ACMan20-469 from 12.0 m;
• 2.80 g/t gold over 12.0 m from drill hole ACMan20-660 from 34.0 m;
• 1.79 g/t gold over 20.0 m from drill hole ACMan20-663 from 30.0 m (end of hole);
• 1.62 g/t gold over 12.0 m from drill hole ACMan20-665 from 38.0 m (end of hole).

AC regional fence drilling tests termite mound anomalies. In the event that significant results are returned, first follow-up is generally more AC fence drilling along strike and if mineralization of significant grade is confirmed over a significant strike distance follow-up is done with RC and/or DD drilling. These 314 AC holes aided the company in establishing a 200 m strike length at the northern extension to date.

Nana Sangmuah, president and chief executive officer, stated: “These positive results demonstrate the extension of the Southern Mankouke mineralization to the north, based on the offset which the geophysics identified in [an image on the company’s website]. We have traced this new zone over 200 metres in strike length and continue to increase the footprint of the deposit. We are very excited to intersect gold in the fresh rock again and increase the depth of mineralization at Mankouke South. We remain focused on testing the full potential of our tenement package in order to yield more discoveries and expand on Mankouke South. Drilling in 2020 should unlock the potential of our highly prospective land package leading to more news flow in the coming weeks.”

The gold mineralization at Mankouke South is associated with quartz veining and/or disseminated and stringer pyrite hosted in brecciated, silicified and locally sheared greywackes and mudstones underlain by interbedded limestones and mudstones of the Kofi formation. Mankouke South is located approximately 25 km east of the Fekola mine (B2Gold Corp.).

Drilling contract and analytical protocol

The drilling contracts were awarded to Target Drilling SARL and Geodrill, which both employ multipurpose (AC/RC/DD) rig and AC rigs at the Kandiole project. The AC drilling is mainly focused on drilling exploration targets.

All diamond drill samples are sent for preparation to Bureau Veritas Mineral Laboratories in Bamako, Mali, and transported by Bureau Veritas to its analytical facility in Abidjan, Ivory Coast, for fire assay with atomic absorption finish and by gravimetric finish for grades above 10 g/t Au. Most the AC drilling was sent to SGS. Roscan applied industry-standard QA/QC procedures to the program. Certified reference materials, blanks and field duplicates are inserted at appropriate intervals.

        DRILL HOLE HIGHLIGHTS AT MANKOUKE SOUTH (AUG. 11, 2020)

Hole ID                      From        To        Interval            Au
                              (m)       (m)             (m)         (g/t)

DDMAN20-42                                                            NSR
DDMAN20-43                                                            NSR
DDMAN20-44                      8        10               2          1.14
                               24        25               1          0.97
                               31        34               3          1.87
                               39        57              18          2.11
including                      41        43               2          9.43
                               99       100               1          0.91
                              127       128               1          0.79
DDMAN20-45                                                            NSR
DDMAN20-46                                                            NSR
DDMAN20-47                     30        31               1          0.61
                               46        61              15          1.05
                              103       130              27          1.36
                              146       152               6          3.47
                              157       165               8          0.96
DDMAN20-48                    6.5      53.5              47          1.98
including                    35.5      38.5               3          5.35
and                          49.5      51.5               2          6.68
                             86.5      87.5               1          1.31
                             96.5     103.5               7          2.62
DDMAN20-49                                                            NSR
DDMAN20-50                   28.5      35.5               7           1.5
                             47.5      48.5               1           0.8
                             65.5      70.5               5          0.85
                             82.5      88.5               6          1.06
                            114.5     132.5              18          2.92
including                   119.5     121.5               2          19.8
                            142.5     145.5               3          2.64
                            155.5     156.5               1          0.51
DDMAN20-51                     64        70               6          1.08
DDMAN20-52                   25.5      30.5               5          1.46
                             50.5      51.5               1          0.65
                             63.5      64.5               1          0.76
                             69.5      79.5              10          4.03
including                    76.5      79.5               3          10.4
                             93.5      99.4             5.9          0.55
                            104.4     116.5            12.1          1.78
                            133.5     150.5              17          4.18
including                   141.5     145.5               4          9.14
                            157.5     164.5               7          9.57
including                   161.5     164.5               3          15.6
                            170.5     171.5               1          0.66
DDMAN20-53                                                            NSR
DDMAN20-54                  109.5     112.5               3          0.67
                            118.5       165            46.5          6.15
including                     120     126.5             6.5          10.3
and                         132.5     142.5              10          10.1
                            172.5       174             1.5          0.76
DDMAN20-55                                                            NSR
DDMAN20-56                    7.5      75.5              68          3.98
including                    27.5      42.5              15           8.1
and                          64.5      66.5               2            14
DDMAN20-57                    7.5      32.5              25          2.01
including                    23.5      24.5               1          22.3
                             38.5      79.5              41           5.2
including                    47.5      49.5               2          13.9
and                          56.5      64.5               8          15.4
including                    61.5      62.5               1          52.6
                             84.5     100.5              16          1.97
                            122.5     126.5               4          1.69
including                   127.5     128.5               1           5.3
DDMAN20-58                                                            NSR
DDMAN20-59                    7.5      29.5              22          4.89
including                    18.5      23.5               5          9.07
and                          27.5      29.5               2          9.17
DDMAN20-60                   68.3      69.3               1          1.67
                            103.3     107.3               4          0.57
DDMAN20-61                  117.5     124.5               7          1.19
                            146.4     152.4               6          2.76
including                   151.4     152.4               1          9.55
                            175.4     176.4               1          0.54
                            185.4     187.4               2          1.13
                            198.4     199.4               1          0.52
                            218.4     226.4               8          0.96
ACMAN20-46                     18        28              10          0.99
ACMAN20-46                      8        28              20             3
ACMAN20-46                     12        48              36          1.12
ACMAN20-47                      6        14               8          0.74
                               34        38               4          0.77
                               48        50               2           0.5
ACMAN20-47                     10        18               8          1.68
                               24        26               2          0.52
ACMAN20-47                     10        16               6          0.98
                               24        26               2          0.65
ACMAN20-47                     10        22              12          0.59
                               44        48               4          2.97
ACMAN20-64                     14        20               6          0.59
                               30        32               2          0.76
ACMAN20-65                     14        22               8          0.81
                               30        36               6          1.27
                               42        48               6          0.48
ACMAN20-65                     18        32              14          0.76
                               36        44               8          0.65
ACMAN20-65                     36        44               8          0.81
                               48        50               2          0.63
ACMAN20-65                     18        20               2          0.55
ACMAN20-66                     34        46              12           2.8
ACMAN20-66                     20        28               8          3.06
                               32        34               2          0.58
ACMAN20-66                      8        10               2          2.07
ACMAN20-66                     14        16               2          0.61
                               30        50              20          1.79
ACMAN20-66                      8        14               6          0.45
                               18        26               8          1.41
                               44        50               6          0.61
ACMAN20-66                     22        24               2          0.59
                               38        50              12          1.62
ACMAN20-33                      6         7               1           0.7
ACMAN20-35                     18        20               2          0.86
ACMAN20-35                     18        19               1          0.83
                               34        38               4          1.29
ACMAN20-41                     24        28               4          1.75
ACMAN20-49                      0         2               2          0.68

Qualified person (QP) and National Instrument 43-101 disclosure

Greg Isenor, PGeo, executive vice-chairman for the company, is the designated qualified person for this news release within the meaning of National Instrument 43-101 and has reviewed and verified that the technical information contained herein is accurate and approves of the written disclosure of same.

The seventy-six holes reported here were drilled at several locations around the main North Pan pit, as well as one hole near the smaller Syncline satellite pit (Figure 1). The holes were aimed at expanding the existing oxide resources and reserves both at depth and laterally beyond the current reserve boundaries. In total, 183 holes for a total of 21,741 m (71,330 ft) were drilled as part of the 2019-2020 Pan resource expansion program and all but the last few of these holes will be incorporated in the upcoming resource and reserve estimate. The most recent Proven and Probable reserve estimate from 2018 shows 275,600 gold ounces at an average grade of 0.51 g/t gold (0.015 oz/ton), with reserve cutoff grades of 0.21 g/t gold for the North and satellite pits and 0.14 g/t gold for the South Pit.

Highlights from these seventy-six holes, all from the North Pan area, include:Hole PR20-089 returned 48.8 metres of 0.40 g/t goldHole PR20-092 returned 16.8 metres of 1.03 g/t goldHole PR20-095 returned 54.9 metres of 0.43 g/t goldHole PR20-121 returned 29.0 metres of 0.53 g/t goldHole PR20-132 returned 39.6 metres of 0.60 g/t goldHole PR20-137 returned 30.5 metres of 0.50g/t goldHole PR20-147 returned 38.1 metres of 0.49 g/t goldHole PR20-151 returned 27.4 metres of 0.65 g/t gold

Tim Warman, Fiore’s CEO commented, "These holes represent the last of the 140 holes drilled in late 2019 and early 2020 as part of a resource expansion program, and all but the last few of these holes will be included in the resource and reserve update which we expect to complete before the end of September. The updated model will incorporate several previously unrecognized structures that appear to localize higher-grade zones of gold mineralization. These structures were recognized during detailed geological mapping in and around the North and South pits and have been successfully targeted during this most recent round of drilling. Our geological team is already planning the next phase of drilling at Pan which is intended to continue expanding the resource base, test new targets away from the existing pits, and collect PQ core for confirmatory metallurgical testing in the newly identified areas of mineralization."

An initial eight-hole program (PR20-072 to -079) at the Mustang target, located approximately 1,500 m northwest of the Pan North pit, encountered gold mineralization within a low angle structure at the contact between the Pilot shale and the underlying Devils Gate limestone. Five of the eight holes encountered significant gold mineralization, with the best intercepts in PR20-073 with 13.7 m at 0.48 g/t gold and PR20-074 with 10.7 m at 0.62 g/t gold. The Mustang zone will be targeted for follow-up in the next phase of drilling with the goal of defining a mineable resource.

Results

Significant results for the seventy-six holes reported here are shown in the table below. The holes in numeric sequence not shown in the table below were condemnation holes drilled in support of a waste dump expansion:

Hole    From(m)To(m)Length(m)Grade(g/t Au)
PR20-066no significant intercepts         
PR20-06779.2   99.1 19.8     0.70         
includes80.8   83.8 3.0      1.46         
PR20-068no significant intercepts         
PR20-069no significant intercepts         
PR20-07013.7   18.3 4.6      0.30         
PR20-071no significant intercepts         
PR20-07245.7   48.8 3.0      1.56         
PR20-07271.6   76.2 4.6      0.41         
PR20-0734.6    18.3 13.7     0.48         
PR20-07327.4   30.5 3.0      0.62         
PR20-07357.9   64.0 6.1      0.28         
PR20-07418.3   19.8 1.5      2.09         
PR20-07456.4   67.1 10.7     0.62         
PR20-075no significant intercepts         
PR20-07673.2   80.8 7.6      0.40         
PR20-0774.6    9.1  4.6      0.50         
PR20-07713.7   16.8 3.0      0.31         
PR20-07729.0   32.0 3.0      1.55         
PR20-07816.8   19.8 3.0      0.44         
PR20-079no significant intercepts         
PR20-08039.6   42.7 3.0      0.44         
PR20-0817.6    12.2 4.6      0.42         
PR20-08121.3   27.4 6.1      0.34         
PR20-082no significant intercepts         
PR20-083no significant intercepts         
PR20-08412.2   19.8 7.6      0.24         
PR20-08425.9   45.7 19.8     0.70         
PR20-08545.7   48.8 3.0      0.24         
PR20-08641.1   45.7 4.6      0.40         
PR20-08735.1   50.3 15.2     0.44         
PR20-08835.1   44.2 9.1      0.24         
PR20-08974.7   96.0 21.3     0.36         
PR20-089111.3  160.048.8     0.40         
PR20-090103.6  112.89.1      0.28         
PR20-090117.3  125.07.6      0.26         
PR20-09144.2   47.2 3.0      0.21         
PR20-09151.8   77.7 25.9     0.34         
PR20-09280.8   102.121.3     0.53         
PR20-092114.3  131.116.8     1.03         
includes115.8  125.09.1      1.48         
PR20-09345.7   50.3 4.6      0.33         
PR20-09380.8   86.9 6.1      0.23         
PR20-09391.4   105.213.7     0.27         
PR20-09480.8   106.725.9     0.39         
PR20-0950.0    54.9 54.9     0.43         
PR20-09576.2   86.9 10.7     0.36         
PR20-09670.1   85.3 15.2     0.29         
PR20-09694.5   121.927.4     0.33         
PR20-097no significant intercepts         
PR20-09853.3   67.1 13.7     0.59         
PR20-099no significant intercepts         
PR20-100no significant intercepts         
PR20-103no significant intercepts         
PR20-104no significant intercepts         
PR20-105no significant intercepts         
PR20-106no significant intercepts         
PR20-10742.7   57.9 15.2     0.99         
includes44.2   50.3 6.1      1.99         
PR20-108no significant intercepts         
PR20-109no significant intercepts         
PR20-110no significant intercepts         
PR20-111no significant intercepts         
PR20-112no significant intercepts         
PR20-113no significant intercepts         
PR20-114no significant intercepts         
PR20-11524.4   30.5 6.1      0.40         
PR20-116no significant intercepts         
PR20-117no significant intercepts         
PR20-118no significant intercepts         
PR20-119no significant intercepts         
PR20-120no significant intercepts         
PR20-12035.1   41.1 6.1      0.72         
PR20-12124.4   53.3 29.0     0.53         
includes30.5   33.5 3.0      1.51         
PR20-129no significant intercepts         
PR20-13039.6   42.7 3.0      0.69         
PR20-13161.0   67.1 6.1      0.67         
PR20-13173.2   93.0 19.8     0.28         
PR20-13242.7   82.3 39.6     0.60         
PR20-13286.9   89.9 3.0      0.23         
PR20-13297.5   109.712.2     0.34         
PR20-132155.4  161.56.1      0.22         
PR20-132166.1  169.23.0      0.25         
PR20-13356.4   86.9 30.5     0.28         
PR20-13391.4   106.715.2     0.21         
PR20-133115.8  120.44.6      0.36         
PR20-13422.9   56.4 33.5     0.35         
PR20-13474.7   86.9 12.2     0.27         
PR20-13548.8   67.1 18.3     0.35         
PR20-136no significant intercepts         
PR20-13732.0   62.5 30.5     0.50         
PR20-138no significant intercepts         
PR20-14354.9   57.9 3.0      0.56         
PR20-14459.4   65.5 6.1      0.22         
PR20-145no significant intercepts         
PR20-146no significant intercepts         
PR20-14751.8   70.1 18.3     0.34         
PR20-14774.7   112.838.1     0.49         
PR20-14856.4   68.6 12.2     0.32         
PR20-14879.2   86.9 7.6      0.61         
PR20-149no significant intercepts         
PR20-15076.2   82.3 6.1      0.45         
PR20-15086.9   94.5 7.6      0.22         
PR20-15148.8   54.9 6.1      0.25         
PR20-15161.0   88.4 27.4     0.65         
includes77.7   82.3 4.6      1.11         
PR20-15265.5   73.2 7.6      0.47         
PR20-153no significant intercepts         
PR20-15447.2   50.3 3.0      0.40         
                                          

Pan Mine Geology

The Pan Mine is a Carlin-style, sedimentary rock-hosted, gold-only deposit, and is comprised of three main zones of mineralization which has currently been traced for over 1,800 m (6,000 feet) along the north-south trending Branham Fault. The North Zone is composed of a large body of silicified solution breccia along the western margin of the Branham fault. Mineralization extends westward from the breccia body along the relatively flat-lying Pilot Shale-Devils Gate Limestone contact. South Pan is largely hosted in strongly clay altered and mineralized solution breccias within the Branham fault zone, and clay altered sediments along the Pilot Shale-Devils Gate Limestone contact which dip to the southeast away from the Branham Fault. Central Pan consist of several smaller pods of mineralization largely along the Pilot Shale-Devils Gate contact along a series of west-northwest trending open folds and north-south secondary faults.

Technical Disclosure

The scientific and technical information relating to Fiore Gold's properties contained in this news release was approved by Paul Noland (AIPG CPG-11293), Fiore Gold's VP Exploration and a "Qualified Person" under National Instrument 43-101.

The reverse circulation (RC) drilling at Pan was performed by Boart Longyear of Salt Lake City, Utah. Down holes surveys were completed by Boart drill crews, supervised by Fiore personnel utilizing a REFLEX north seeking gyroscope. Select holes were surveyed additionally by International Directional Services for quality control. Holes are generally inclined to -65 to -90 degrees below horizontal and drill intersections are reported as drilled thicknesses. The irregular shape of the ore body at Pan make estimations of apparent widths difficult, but true widths are generally within 60% to 90% of the reported downhole intercepts.

Sampling is supervised by Fiore Gold geologists, with samples transported directly to ALS Minerals Lab in Reno, Nevada where samples are prepared, and pulps generated. Samples were assayed for gold by Fire Assay of a 30-gram (1 assay ton) charge with an AA finish, or if over 5.0 g/t were re-assayed and completed with a gravimetric finish. For these samples, the gravimetric data were utilized in calculating gold intersections. All drill samples were also subjected to additional cyanide leach analysis where the sample is treated with a 0.25% NaCN solution and rolled for an hour. An aliquot of the final leach solution is then centrifuged and analyzed by Atomic Absorption Spectroscopy. QA/QC for all drill samples consists of the insertion and continual monitoring of numerous standards and blanks into the sample stream, and the collection of duplicate samples at random intervals within each batch. Selected holes are also analyzed for a 48 multi-element geochemical suite by ICP-MS. ALS Geochemistry-Reno is ISO 17025:2005 Accredited.

Scientific and technical information regarding the Pan Mine resource and reserve estimates referred to herein has been extracted from and is hereby qualified by reference to the technical reports for our projects. The technical reports referenced herein are as follows: (1) the report titled "NI 43-101 Updated Technical Report, Pan Gold Project, White Pine County, Nevada", with an effective date of June 30, 2017, which was prepared by J.B. Pennington, M.Sc., C.P.G., Kent Hartley, P.E., Justin Smith, P.E., RM-SME, and Deepak Malhotra, RM-SME (the "Pan Mine 43-101"), as updated within the Pan Mine Reserve Statement, with an effective date of September 30, 2018, which was prepared by Kent Hartley, P.E., and Justin Smith, P.E., RM-SME.

Corporate Strategy

Our corporate strategy is to grow Fiore Gold into a 150,000 ounce per year gold producer. To achieve this, we intend to:continue to grow gold production at the Pan Mine, while increasing the resource and reserve baseadvance the development of the nearby Gold Rock projectacquire additional production or near-production assets to complement our existing operations

Net loss was $3.6-million (Q2 2019: $6.6-million) from higher revenue and lower tolling and production costs at MVC (Minera Valle Central, the company’s 100-per-cent-owned operation located near Rancagua, Chile). Loss per share during Q2 2020 was two cents (Q2 2019: four cents). MVC’s average copper price in Q2 2020 was $2.61 per pound (Q2 2019: $2.67/lb).

The company generated $2.8-million in operating cash flow before changes in non-cash working capital in Q2 2020 (Q2 2019: used cash of $4.8-million in operations). Quarterly net operating cash flow was $1.1-million (Q2 2019: $3.0-million).

Amounts in this news release are reported in U.S. dollars except where indicated otherwise.

MVC produced 13.0 million pounds of copper during Q2 2020 (Q2 2019: 13.3 million pounds) at a cash cost of $1.72/lb (Q2 2019: $1.97/lb):

• Q2 2020 production of 13.0 million pounds of copper (Q2 2019: 13.3 million pounds) included 6.3 million pounds from historical tailings (Cauquenes) (Q2 2019: 8.2 million pounds) and 6.7 million pounds from fresh tailings (Q2 2019: 5.1 million pounds). Q2 2020 production results were in line with the company’s guidance. Additional information on Q2 2020 production results is available on the company’s news release of July 23, 2020.
• Molybdenum production was 400,000 pounds (Q2 2019: 200,000 pounds).
• Cash cost (a non-GAAP (generally accepted accounting principles) measure equal to the aggregate of smelting and refining charges, tolling/production costs net of inventory adjustments and administration costs, net of byproduct credits) was $1.72/lb (Q2 2019: $1.97/lb).
• Total cost (a non-GAAP measure equal to the aggregate of cash cost, Codelco’s Division El Teniente (DET) notional copper royalties and DET molybdenum royalties of 50 cents/lb and depreciation of 33 cents/lb) decreased to $2.55/lb (Q2 2019: $2.95/lb), due to lower cash cost and lower DET notional royalties from lower metal prices.

MVC’s average copper price in Q2 2020 was $2.61/lb:

• During Q2 2020, MVC’s copper price was $2.61/lb (Q2 2019: $2.67/lb) and MVC’s molybdenum price was $7.88/lb (Q2 2019: $11.84/lb).
• MVC’s financial performance is very sensitive to changes in copper prices. MVC’s Q2 2020 final prices will be the average London Metal Exchange prices for July ($2.88/lb), August and September, 2020. A 10-per-cent increase or decrease from the $2.61/lb provisional price used at June 30, 2020, would result in a $3.6-million change in revenue in Q3 2020 in respect of Q2 2020 production.
• Revenue during Q2 2020 was $26.0-million (Q2 2019: $22.7-million), including copper tolling revenue of $23.9-million (Q2 2019: $20.5-million) and molybdenum revenue of $2.1-million (Q2 2019: $2.2-million).
• Copper tolling revenue is calculated from MVC’s gross value of copper produced during Q2 2020 of $33.3-million (Q2 2019: $37.3-million) and positive fair value adjustments to settlement receivables of $1.4-million (Q2 2019: negative adjustments of $3.2-million), less notional items including DET royalties of $6.1-million (Q2 2019: $8.3-million), smelting and refining of $4.3-million (Q2 2019: $4.8-million), and transportation of $400,000 (Q2 2019: $500,000).

At June 30, 2020, MVC had a working capital deficiency of $26.7-million:

• At June 30, 2020, the company’s cash balance was $500,000 (Dec. 31, 2019: $7.2-million) due to a delay in payment of $4.6-million in receivables due to a Chilean holiday on June 29, 2020, which were paid on July 1, 2020. If payment had been received on time, cash balance at June 30, 2020, would have been $5.1-million and amounts receivable would have been $1.3-million, including a provision of $7.3-million in negative settlement adjustments due by MVC to DET, which, subsequent to June 30, 2020, were restructured for payment in 2021.
• At June 30, 2020, the company had a $26.7-million working capital deficiency (Dec. 31, 2019: $15.1-million). Subsequent to June 30, 2020, the company’s working capital deficiency was reduced by $3.7-million as settlement adjustments due to DET were restructured to be paid in 2021.
• The company’s working capital deficiency is a significant liquidity risk indicator, particularly given the volatility in copper prices experienced year to date 2020 in response to the uncertainty surrounding COVID-19 and its impact on the global economy.
• The company expects to meet obligations for the next 12 months from operating cash flow, assuming copper prices average at least $2.75/lb and actual production and cost results are consistent with the company’s outlook for the second half of 2020.

Investor conference call on Aug. 13, 2020

Amerigo’s quarterly investor conference call will take place on Thursday, Aug. 13, 2020, at 11 a.m. Pacific Daylight Time/2 p.m. Eastern Daylight Time. To join the call, please dial 1-800-273-9672 (toll-free North America) and let the operator know you wish to participate in the Amerigo Resources conference call, if asked please give the confirmation No. 4327621. The analyst and investment community are welcome to ask questions to management. Media can attend on a listen-only basis.

Highlights:

• Environmental impact assessment approved at Agdz silver and copper project;
• Approval of Ministry of Interior represents a key milestone in conversion to mining licence;
• Further silver and copper targets defined by BRGM predictive mapping program;
• Previously announced rock chip and grab samples results include:
  • 448 grams per tonne silver and 4.56 per cent copper and 287 g/t Ag and 2.01 per cent Cu from Makarn prospect;
  • 152 g/t Ag and 4.73 per cent Cu and 2.96 g/t Au from Daoud prospect;
  • 190 g/t Ag and 1.90 per cent Cu and 134 g/t Ag and 4.82 per cent Cu from Amzwaro prospect;
  • 12.90 g/t Ag and 13.05 per cent Cu from Miniere prospect;
• Mapping and induced polarization geophysical survey (IP) to be undertaken

Steven Poulton, chief executive officer of Altus, commented:

“We are pleased to report the successful approval of our environmental impact assessment and baseline study at our Agdz silver and copper project in Morocco. This approval represents a key milestone in the process of converting the current exploration licence into a mining licence.

“Separately, Altus has been working in partnership with the University of Orleans and the BRGM in France to generate new targets based on cutting edge predictive mapping techniques. This work has defined a one-kilometre-long, northeast-striking priority target in the vicinity of the Makarn prospect, where sampling by the company has yielded multiple high-grade silver and copper results, including 448 g/t Ag and 8.0 per cent Cu from outcrop. This target will be the next priority for our field team to assess, along with the Miniere prospect, where sampling of spoil from historic mine shafts, adits and exploratory pits has returned grades of up to 13.0 per cent Cu.

“Morocco is highly prospective for the discovery of silver and copper deposits and Agdz is located just 14 km from a hard rock silver and copper mine, operated by the Moroccan state mining group Managem. We look forward to advancing Agdz and to updating our shareholders on the resumption of our exploration activities.”

Agdz project: environmental impact assessment

Altus commissioned an independent Moroccan environmental consultancy to undertake the EIA for Agdz. The EIA specifies the baseline environmental conditions and details considerations relevant to a potential conversion of the current exploration permit into a mining licence. The EIA was completed in Q1 2020 and, following public consultation, was accepted and approved by the Ministry of the Interior, Administrator of the Draa Tafilalet Region and Regional Centre of Investment. The approval is valid for a period of five years and is renewable thereafter. Attainment of the approval of an EIA is a key milestone for the granting of a future mining licence and to undertaking mining activities thereafter.

Agdz project: priority prospects

A predictive mapping program for Agdz was completed at the University of Orleans, BRGM campus, in France. Analysis was undertaken on all surface data compiled by Altus to date, including surface rock and trench results, mapping data and gamma spectrometry, and ground magnetic survey results.

The predictive mapping program was designed to delineate targets in areas of shallow soil cover and where surface weathering or desert varnishing effects may mask the surface expression of mineralization below. A number of broad targets were identified from the study, encompassing parts of the Amzwaro and Makarn prospects. One of the priority targets is approximately one km long and strikes in a north easterly direction in the northern portion of the Makarn prospect.

The prospects identified at Agdz to date include:

• The Amzwaro prospect: multiple NNE- and NNW-trending structures within a zone up to two km in length and 200 metres wide, bound by extensional structures. Historical results include rock chip grades of 4.82 per cent Cu, 189 g/t Ag and 1.91 g/t gold;
• The Makarn prospect: a swarm of mineralized dikes, shears and veins which strike NNE over a distance of 2.8 km. Historical results include rock chip grades of 8.00 per cent Cu and 448 g/t Ag;
• The Miniere prospect: A 150 m long and 90 m wide area of historical underground artisanal mining, exploiting multiple subparallel copper-bearing zones of alteration. Historical results include rock chip and spoil sample grades of 13.05 per cent Cu, 12.90 g/t Ag and 0.49 g/t Au;
• The Daoud prospect: a series of NNW-striking quartz veins and pervasive silicification, mapped discontinuously over a 700 m strike length transected by ENE-striking chlorite rich alteration zones. Historical results include rock chip grades of 2.71 per cent Cu, 152 g/t Ag and 2.96 g/t Au.

Agdz project: location

The company’s wholly owned subsidiary, Aterian Resources Ltd., has a 100-per-cent interest in the 59.7 square km Agdz project. The project comprises four contiguous licence blocks in the Souss-Massa-Dracirca region of the Anti-Atlas mountains of central Morocco, approximately 350 km south of the capital, Rabat. The project is approximately 14 km southwest of the Bou Skour copper-silver mine and 80 km southwest of the world-renowned Imiter silver mine, both operated by the Moroccan mining group Managem. Mineralization hosted on this property is not necessarily indicative of mineralization hosted at Agdz.

The project is located approximately 35 km east of the city of Ouarzazate, where infrastructure and services are of a high standard, including a regional airport. The Noor 1 solar station, which is the world’s largest concentrated solar power plant with a planned output of 580 megawatts, is located approximately 40 km northwest of Agdz. The project is accessed via a paved road and a network of unpaved roads and vehicle tracks close to and within the licence.

Agdz project: geological setting

Agdz is proximal to the Oued Dara Caldera, which formed within a brittle pull apart structure along a northeast-trending regional fault zone in the eastern Anti-Atlas. The caldera is located within the highly prospective Neoproterozoic Sidi Flah-Bou Skour inlier of the Saghro Massif, which developed during Pan-African tectonic events. This massif comprises a lower tightly folded volcano-sedimentary sequence formed from arc-related metagreywacke and metavolcanics lithologies deposited approximately 650 Ma. The lower complex was intruded by diorite, granodiorite and lesser gabbro and monzogranite between 615 Ma and 575 Ma. The upper complex comprises predominantly felsic metavolcaniclastics related to the development of several calderas emplaced typically between 575 Ma and 540 Ma and is intruded by granitic plutons. The upper complex is gently folded, sitting unconformably on the lower complex. Regionally, ore deposits are commonly associated with the upper complex and are typically spatially related to magmatic emplacement.

The geology at Agdz comprises meta-sedimentary and meta-volcanic sequences. These belong to the upper complex and are cut by a series of subparallel NE- to NW-striking brittle faults and alteration zones, a number of which have been historically mined for copper. The alteration (comprising variably chlorite, iron, silica, k-feldspar, actinolite, carbonate and barite) is generally located within brittle pull apart fault breccias and fracture zones, between (and oblique to) the mapped lineaments.

Mapping, sampling and ground magnetic surveys undertaken by the company to date have defined four priority prospects at Agdz namely, Makarn, Amzwaro, Miniere and Daoud. The company has completed a series of 13 reconnaissance trenches at Agdz, totalling 576 m in length and excavated to a depth of up to one m. The trenches have revealed a number of NNE-trending alteration zones in packages which are up to 33 m wide, beneath a thin cover of soil and float material. Previously reported assay results from five of the 13 trenches have been received and reported to date and include 0.65 per cent Cu and 36.54 g/t Ag over 14.12 m and 0.36 per cent Cu and 13.26 g/t Ag over 13.70 m.

Qualified person

The technical disclosure in this regulatory announcement has been read and approved by Mr. Poulton. A graduate of the University of Southampton in Geology (honours), he also holds a master’s degree from the Camborne School of Mines (Exeter University) in mining geology. He is a fellow of the Institute of Materials, Minerals and Mining and has over 20 years of experience in mineral exploration and is a qualified person under the AIM rules and National Instrument 43-101.

As announced in a Lithium Chile press release dated April 8, 2020, the Company entered into a joint venture agreement, dated March 25, 2020, where Apollo Gold has the right to earn up to 90% in the Apolo and Sancarron concessions by making total cash payments to Lithium Chile of $1,350,000 and incurring an aggregate $5,000,000 of expenditure on the properties over a maximum of 5 years.

It is currently anticipated that Apollo Gold will launch an initial work program on the properties in November of 2020 to coincide with spring in Chile. This initial program is designed to test and expand on prior sampling programs undertaken on the properties.

Steve Cochrane, President and CEO of Lithium Chile, comments: “We are excited now that Apollo Gold has received final approval from the TSX on our joint venture agreement. We look forward to Apollo’s work program as it will help support our belief in the exploration potential of not only Apolo and Sancarron but all of our properties.”

This phase of the diamond drilling program is expected to consist of 10 holes, totalling approximately 5,000 metres. The drilling has two main objectives, being to explore for additional high grade gold and silver mineralisation to augment the current oxide resources at the Oculto Zone and adjacent areas, and also to test for the continuity of underlying copper-gold sulphide mineralisation which may be linked to a porphyry intrusive that would have been the source of mineralising fluids.

David O’Connor, Chief Geologist of the Company, stated “We anticipate adding tonnage and grade to the gold and silver resources, both within the Oculto Zone and at satellite areas that have only had very limited or no drill testing. We are also excited about our continued exploration of the hypogene mineralisation underlying oxide mineralization in the Oculto Zone, and has the potential to be a substantially larger resource.”

Priority Targets

The first priority target area consists of the core Oculto Zone, which hosts the majority of the currently known silver-gold mineralization, as well as satellite areas (Laderas, Northeast Gold Zone, Zorro, Cerro Bayo and Cerro Bayo East). The proposed drill holes are shown on Figure 1 below. A detailed ground magnetic survey is planned to help define drill targets based on interpreted structures at depth combined with recently mapped outcropping siliceous breccia zones in these satellite areas.

The second priority target area consists of the sulphide mineralisation beneath the oxide resources in the Oculto Zone, which is hosted in Ordovician basement rocks comprised of granitoids and meta-sediments (see Figure 2). Based on recent drilling, these rocks have responded differently to the injection of mineralising fluids, with the north-eastern meta-sediments and granitoids being less restrictive. This is a new target area.

Timing of Phase 1 Drilling Results

The Company expects to receive results from the previously completed four drill holes over the next several weeks, at which stage the Company will provide an update. Sample shipments to the assay lab have been delayed due to increased transportation safety protocols associated with COVID-19 preventative measures, resulting in slower turnaround for assay results.