In July, 2020, the Company resumed mining of its 10,000 tonne bulk sample at the Moroy Project. The Moroy project is 900 metres south of the old Bachelor Mine, and the Company uses the underground infrastructure of the Bachelor Mine to access the Moroy Project. In August 2020, the Company emptied the old material inventory in the underground muck handling circuit to make room for the material coming from the bulk sample at Moroy. The old material was stockpiled in the silos, and on the ore pad on surface. On September 8, 2020, Bonterra began to process the material stored on surface from the old Bachelor Mine and will continue to process the old material until September 21, 2020.

On Sept. 29, 2020, the Company plans to start processing the material from the bulk sample at Moroy and expects to complete the bulk sample around the end of October, 2020. An independent consulting engineering firm is supervising the processing of the bulk sample at the Bachelor Mill. The consulting firm will produce a report after the bulk sample is completed. The company will publish the report once available, and it will be incorporated into an eventual preliminary economic assessment.

The bulk sample program at the Moroy project is being undertaken in order to verify the grade continuity within the mineralized structure and reconcile the resource grade to the recovered ounces following processing. The bulk sample is focused on the M1 shear zone on level 11,440 metres (“m”) below surface. The M1 structure is sub-vertical and the company plans to extract it via a sub-level long-hole stoping method at 15 m intervals.

Exploration update

In July 2020, the Company announced the beginning of a 56,000 m drill campaign. The Company ramped up the campaign during July and August 2020, and now has seven diamond drill rigs fully staffed active on the projects. There are now six drill rigs between the Moroy, Barry, and Gladiator projects. The seventh drill rig is targeting potential sectors in the Desmaraisville camp just outside the Bachelor/Moroy area. The Company will add an eighth drill rig on regional targets in the Urban-Barry camp before the end of September 2020.

Pascal Hamelin, Interim CEO and VP, Operations commented: “I’m very happy to see that we have safely ramped up the rigs from zero to seven rigs in 6 weeks. With the selective assaying of the material from the bulk sample expected to be completed by the end of this month, we will be able to switch our assay lab’s focus to our cut drill core assay backlog and release those results when available.”

Qualified Person

Francis Lefebvre, PGeo, Assistant manager for the Company supervises all the activities on the Moroy project. Mr. Lefebvre is a Qualified Person as defined by National Instrument 43-101 — Standards of Disclosure for Mineral Projects. Pascal Hamelin, PEng, has approved the information contained in this release. Mr. Hamelin is a Qualified Person as defined by NI-43-101.

Flow-through (FT) shares

Number of FT shares:  3.5 million flow-through shares

Purchase price:  64.5 cents per flow-through share

Warrants:  3.5 million share purchase warrants to purchase 3.5 million shares

Warrant initial exercise price:  80 cents

Warrant term to expiry:  two years

Non-flow-through (NFT) shares

Number of NFT shares:  2,559,444 non-flow-through shares

Purchase price:  45 cents per non-flow-through share

Warrants:  2,559,444 share purchase warrants to purchase 2,559,444 shares

Warrant initial exercise price:  80 cents

Warrant term to expiry:  two years

Number of placees:  22 placees

Total pro group involvement:  150,000 (two placees)

Note that in certain circumstances the exchange may later extend the expiry date of the warrants, if they are less than the maximum permitted term.

Number of shares:  12.1 million shares

Purchase price:  60 cents per share

Warrants:  6.05 million share purchase warrants to purchase 6.05 million shares

Warrant initial exercise price:  90 cents

Warrant term to expiry:  two years

Number of placees:  107 placees

Finders’ fees:  Mariusz Skonieczny, 575,000 warrants; Pertinax Capital BVBA, $5,994 cash

Finder’s warrant initial exercise price:  60 cents

Finder’s warrant term to expiry:  24 months

Note that in certain circumstances the exchange may later extend the expiry date of the warrants, if they are less than the maximum permitted term.

Number of shares:  1.2 million shares

Purchase price:  38 cents per share

Warrants:  1.2 million share purchase warrants to purchase 1.2 million shares

Warrant initial exercise price:  50 cents

Warrant term to expiry:  three years

Number of placees:  one placee

Note that in certain circumstances the exchange may later extend the expiry date of the warrants, if they are less than the maximum permitted term.

© 2020 Canjex Publishing Ltd. All rights reserved.

Highlights:

• Altus selling a 100-per-cent interest in two Ivory Coast gold projects;
• Altus to receive an initial payment of:
  • A 2.5-per-cent NSR (net smelter return) royalty on the projects;
  • 2.5 million Stellar shares with a current market value of $125,000;
  • 2.5 million share purchase warrants, each exercisable to purchase a Stellar share for 24 months at seven cents;
• Subject to the progress of the projects, Altus will receive further equity-based payments;
• The transaction remains subject to TSX Venture Exchange approval.

Steven Poulton, chief executive officer of Altus, commented: “We are pleased to conclude this royalty and equity transaction with Stellar on our two prospective gold projects in Ivory Coast. Altus is focused on realizing value from a high-quality, diversified and precious metal-focused portfolio of royalty assets. This transaction further underscores our royalty generation strategy and we look forward to Stellar’s exploration progress on the projects.”

Transaction terms

Stellar has acquired a 100-per-cent interest in Aeos Resources Ltd., a formerly wholly owned Seychelles incorporated subsidiary of the company. Through its Ivorian subsidiary, Aucrest SARL, Aeos holds a 100-per-cent interest in the projects. The agreements have the following headline terms:

Part 1: consideration:

• Upon signing of the agreements by the parties, Stellar will:
  • Within 14 days and subject to any regulatory or shareholder approvals as may be required, issue 2.5 million units of Stellar to Altus. Each unit will consist of one Stellar share and one 24-month share purchase warrant, with each warrant granting the holder the right but not the obligation to purchase one Stellar share at a price of seven cents.

Part 2: milestone payments:

• Upon the definition of a resource, confirmed by an independent National Instrument 43-101 report, which exceeds 500,000 ounces of gold (including at least 250,000 ounces within the indicated category), Stellar will (in respect of the first 500,000 ounces on each project):
  • Within 14 days and subject to any regulatory or shareholder approvals as may be required, issue Stellar shares valued (at the time of issuance) at $250,000 (U.S.) to Altus.
• Upon the completion of a definitive feasibility study on either project, Stellar will:
  • Within 14 days and subject to any regulatory or shareholder approvals as may be required, issue Stellar shares valued (at the time of issuance) at $250,000 (U.S.) to Altus.

Part 3: project royalties:

• Altus will retain a 2.5-per-cent NSR royalty on each of the projects.
• Stellar will have the right to repurchase up to 1.0 per cent of each NSR for $500,000 (U.S.) for each 0.5 per cent repurchased.

Prikro project

The Prikro project comprises a single 369.5-square-kilometre exploration licence in the Prikro and Koun-Fao departments in eastern Ivory Coast, approximately 240 km northeast of the capital of Abidjan. The project is located 40 km northwest of the town of Agnibilekrou and 25 km west of the town of Koun-Fao, both of which can be accessed by asphalt roads from Abidjan. The licence was selected due to the presence of historically reported gold occurrences, prospective geology and the existence of artisanal workings in the surrounding areas including along strike of a major northeast-southwest-trending shear zone, which is interpreted to traverse the licence area. Birimian-age greenstone rocks reportedly crop out extensively across the Prikro licence and represent Paleoproterozoic metasedimentary units, with associated granite to diorite intrusives, which are the dominant host setting for gold deposits across West Africa.

Zenoula project

The Zenoula project comprises a single 400-square-kilometre licence application, which is currently pending grant in the Marahoue department in central Ivory Coast, approximately 300 km north of Abidjan. The project is located 100 km northwest of the city of Yamoussoukro, which can be accessed by asphalt roads from Abidjan. Zenoula is centred within a north-northeast-trending Birimian-age granite greenstone belt, 65 km along strike from the Abujar project of Australian Securities Exchange-listed Tietto Minerals Ltd. Mineralization hosted on this property is not necessarily indicative of the Zenoula project. Zenoula targets a 22 km long oblique east-northeast-trending structure, interpreted by historic air magnetic data. Geologically, the project reportedly comprises metasediments, metabasalts and syntectonic granitoid intrusives.

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 Alternative Investment Market rules and National Instrument 43-101 — Standards of Disclosure of Mineral Projects — of the Canadian Securities Administrators.

The initial two drill holes completed and released are in the Plomosas mine area, targeting expansion of the mineralization footprint along strike and confirmation of attractive near-surface mineralized zones. The results received confirm the presence of wide, shallow or near-surface silver-gold-lead-zinc (polymetallic) veins and hydrothermal breccias. The company’s continuing review and validation of historic data on the same sections indicate high-grade silver and gold mineralization in low sulphidation epithermal veins outside of the polymetallic silver-rich hydrothermal breccia zone. The drilling currently in progress has validated recent geological modelling, confirming near-surface zones of wide Ag-Au-Zn-Pb (silver-gold-zinc-lead) mineralization. Recent access to historic workings near the area being drilled by the company, together with historic and recently completed drill holes, is being integrated into a 3-D model to support the expansion and potential delineation of near-surface resources.

The drilling completed to date, together with recently announced results, has delineated a 700 m long mineralized system, consisting of multiple veins. It demonstrates the presence of, not only the polymetallic Pb-Zn-Ag-rich hydrothermal breccia hosted on the north-south-oriented low-angle Plomosas fault, but also a series of high-angle, low sulphidation vein and stockwork systems, commonly on the hangingwall or crosscut by the former hydrothermal breccias.

The mineralized zones reported in this news release represent multiple mineralization styles, including wide, polymetallic Pb-Zn-Ag-rich hydrothermal breccias, high-grade Au in low sulphidation veins/stockworks and narrow high-grade Ag low sulphidation veins. The definition of wide zones or high-grade zones close to the surface represents a new opportunity for future shallow drilling along strike, aiding potential resource definition.

GR Silver Mining president and chief executive officer, Marcio Fonseca, commented: “First assay results have now been received from GR Silver Mining’s own drilling program at Plomosas. We continue to encounter evidence of a large hydrothermal system at the Plomosas mine area with the identification of wide mineralized intervals or high-grade zones representing multiple mineralization styles and events. Our 3-D integration of the recent and historic drilling data has proved valuable in defining the Pb-Zn-Ag-mineralized zones, as well as the discovery of several attractive near surface Ag-Au-Pb-Zn zones. The recent recommissioned access to the Plomosas underground mine, together with surface access, provides a unique opportunity to guide our surface and underground drilling program in the upcoming months, aiming at further discoveries and delineation of a resource in the area.”

GR Silver Mining is currently advancing its surface drilling program on the two areas marked in an image on the company’s website. The company recently completed the integration of a previous ground geophysical survey (IP) in the area and has advanced its program of underground mapping and sampling.

The initial 4,500 m surface core drilling program is expected to continue through 2020 and has a dual focus: shallow drilling (up to 150 m below surface) to expand the known mineralized zones along strike at the Plomosas mine and San Juan-La Colorada areas and follow-up drilling on several new high-grade Au-Ag low sulphidation epithermal vein occurrences at Yecora and El Saltito (see news release dated July 15, 2020).

The planned drill sites on the Plomosas project are located in the Plomosas mine area and San Juan trend areas where historic drilling was completed by previous owners; however, GR Silver Mining has outlined undrilled areas with additional multiple epithermal veins along strike and at shallow depth.

In addition to drill testing the areas with historic drill holes at the Plomosas project, the company will also commence initial reconnaissance and surface exploration on 11 priority targets identified as displaying potential for new discoveries.

The associated table summarizes the most significant drill assay results for this set of drill holes released for the Plomosas mine area.

                                   SURFACE DRILLING PROGRAM 2020  
                                                                  
Hole No.     From      To    Drilled width     Est. true width      Ag       Au     Pb    Zn     AgEq
              (m)     (m)              (m)                 (m)   (g/t)    (g/t)    (%)   (%)    (g/t)

PLS20-01      8.0    16.5              8.5                 6.0      85      0.4    1.1   0.6      177
includes     11.5    15.0              3.5                 2.5     172      0.9    2.7   1.4      387
PLS20-02     72.4    98.1             25.7                22.3      48      0.1    0.3   0.6       85
            101.0   149.0             48.0                41.6      na       na    0.1   0.5
includes    139.0   146.9              7.9                 6.8      na       na    0.4   1.4

                                      HISTORIC DRILLING DATA
                                                                       
Hole No.      From      To   Drilled width    Est. true width      Ag      Au      Pb      Zn    AgEq
               (m)     (m)             (m)                (m)   (g/t)   (g/t)     (%)     (%)   (g/t)

PLS-3         74.2    88.3            14.1               12.2      46      na     0.1     0.2      55
              98.8   103.9             5.1                4.4      16    19.2     0.1     0.1   1,986
PLS-6         77.5    80.7             3.2                3.2      74     0.2     0.2     0.3      87
237          136.8   145.8             9.0                4.5      na      na     0.4     1.0
241           51.0    51.7             0.8                0.6     163     0.3     0.6     0.7     232
251           58.0    59.1             1.1                 06     136      na     0.9     1.1     251
             119.3   123.7             4.4                2.5      na     1.8     0.1      na
261          206.5   226.5            20.0               15.3      na     1.2      na      na
268          163.0   168.9             5.9                4.5      73     0.3     0.2     0.4     127
315           21.0    39.0            18.0               16.9     321     0.9     2.7     1.9     554
318           36.0    50.0            14.0                9.0      30     1.7     1.3     2.0     318
PSD-1         77.8   101.5            23.7               20.5      81      na      na      na
PSD-2         75.0    88.7            13.7               11.9      44      na     0.1     0.3
              93.6   100.8             7.2                6.2      na      na     0.3     1.0
             121.7   132.6            10.9                9.4      na     0.3     0.2     1.1
PSD-3         95.1   108.0            12.9               11.2      na      na     0.4     0.5
PSD-5         84.3    91.3             7.0                7.0      32      na      na      na
PSD-7         63.3    65.6             2.4                2.2      83      na      na      na
              75.5    96.6            21.0               19.3      27      na      na      na
             109.7   125.0            15.3               14.0      na      na     0.2     0.4
PSD-11        89.3   103.3            14.0               13.8      37      na      na      na
SD-83         61.3    66.7             5.5                5.2      18      na     0.1     0.2

* AgEq is based on long-term gold, silver, zinc and lead prices of $1,600 (U.S.) per ounce gold, 
$16.50 (U.S.) per ounce silver, 85 U.S. cents per pound zinc and 95 U.S. cents per pound lead. 
The metallurgical recoveries are assumed as 90 per cent Ag, 95 per cent Au, 78 per cent Pb and 
70 per cent Zn. All numbers are rounded. Results are uncut and undiluted. 
 

The drill holes in this news release were generated by a core drilling campaign initiated by the company in the third quarter of 2020 (PLS20-01 and PLS20-02), and historical drill holes completed by Grupo Mexico. Neither of the drill sets were previously released.

The area being drilled has a series of outcrops representing quartz stockwork veining and locally hydrothermal breccias hosted in a Tertiary volcanic bimodal andesitic-rhyolitic sequence commonly intruded by rhyolitic dikes. Structurally, the area is marked by a series of high-angle northwest-trending faults, which are commonly intersecting the north-south low-angle Plomosas fault, a common host structure for Ag-Au-Pb-Zn polymetallic hydrothermal breccias. Alteration is mainly represented by a propylitic assemblage containing chlorite-epidote-quartz-pyrite and abundant specular hematite. Locally on surface, argillic alteration halos and large oxidized zones are observed, a result of previous accumulation of pyrite and other sulphides. The polymetallic mineralization is mainly represented by fine galena and sphalerite, common hematite-quartz cemented hydrothermal breccias and filling veins. Late-stage quartz Ag-Au epithermal veining is commonly observed overprinting Ag-Pb-Zn mineralization in the hydrothermal breccias.

The associated table lists the drill hole intervals previously not sampled (NS) for this group of released holes. The company continues to investigate previous unsampled intervals for evidence of mineralization in the core that warrants additional sampling and assaying.

   PLOMOSAS MINE AREA -- DRILL 
   HOLE INTERVALS NOT SAMPLED 
  (intervals greater than 20 m)
    
Hole No.              From-to (m)

PLS-3            0.00 m to 74.2 m
PLS-6            0.00 m to 59.1 m
237             0.00 m to 18.95 m
241             0.00 m to 18.05 m
251             0.00 m to 24.35 m
261            0.00 m to 152.15 m
268             0.00 m to 99.45 m
PSD-11           0.00 m to 89.3 m
SD-83            0.00 m to 61.3 m

All numbers are rounded.  

The company believes that the Plomosas mine area is part of a much larger low sulphidation epithermal system as indicated by field evidence along 1.0 km of strike length, where only 400 m of that strike had previously been drilled. This represents an opportunity for the company’s current surface drilling program to continue discovering new mineralized zones close to the surface.

Victory intends to use the proceeds of the private placement to advance its Iron Point vanadium project and for general working capital purposes.

All securities to be issued in connection with the private placement will be subject to a four-month-and-one-day statutory hold period in accordance with applicable securities laws. Completion of the private placement will be subject to the approval of the TSX Venture Exchange.

In 1954, Stratmat mapped the area and undertook a gravity survey followed by seven drill holes totalling 590 metres on the resulting gravity anomaly. A subsequent report (Report on the National Management Limited Property (N.B. 28A), Grassville, N.B., 1955) by K.O.J. Sidwell reported 453,500 tonnes of manganese mineralization grading 11 per cent manganese and 8.45 per cent iron to a depth of 80 metres in a body 250 metres long and approximately 10 metres wide. (Note: The resource calculation is historical and preliminary in nature and was undertaken prior to the implementation of National Instrument 43-101 regulations; has not yet been verified by Globex or its geological staff; and, thus, should not be relied upon.)

Mr. Sidwell suggested that there was poor correlation between the drill results and the gravity anomaly and the company’s consulting geologist has indicated that the mineralized zone has a strike of approximately 15-degree variance with the gravity anomaly. In other words, there is every chance that additional mineralization should not be ruled out. In addition, much of the area is blanketed by a deep cover that made exploration difficult.

Shareholders are probably aware of the current speculation regarding the development of a new type of battery containing manganese as a possible replacement for cobalt and the rise in the stock price of Manganese X over the last several days. The addition of another manganese property will allow Globex to take further advantage of the current interest in manganese as a potentially important battery metal by seeking to option this new asset.

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.

• March 15, 2021: $2-million (U.S.) and common shares equal to $2-million (U.S.) (based on the greater of the 20-day volume-weighted average trading price of Southern Silver’s shares on the TSX Venture Exchange and the discounted market price (as that term is defined in the policies of the TSX-V) of the shares;
• Sept. 15, 2021: $2-million (U.S.) and common shares equal to $2-million (U.S.) (based on the greater of the prior 20-day volume-weighted average trading price and the discounted market price).

The company has the option to pay all cash in lieu of shares. To secure the aforementioned payments, the company has pledged to Electrum the shares representing Electrum’s 60-per-cent indirect working interest in the CLM project. Southern Silver has received both shareholder and TSX-V approval of the transaction.

Benefits to Southern Silver shareholders:

• Simplifies ownership structure of the CLM project;
• Establishes full control over project timeline and removes perceived joint venture discount;
• Provides 100-per-cent ownership of a premier, polymetallic deposit in Mexico with substantial resource growth potential (with a focus on targeting high-grade silver targets);
• 150-per-cent increase in attributable resources to current resource of 134 million ounces silver indicated and 138 million ounces silver equivalent inferred;
• Highly accretive to Southern Silver shareholders;
• Electrum remains a supportive cornerstone investor;
• Southern Silver becomes a more attractive takeover target;
• Enhances the market profile of the company relative to its peer group.

Through the transaction, Southern Silver will acquire an additional 49.9 million ounces silver and 1.35 billion pounds of combined lead and zinc to its account based on the current National Instrument 43-101 mineral resource estimate of the CLM project. Additionally, Southern Silver will become more attractive on a corporate level with the company’s market profile being enhanced by having ownership of one of the larger and highest-grade undeveloped silver projects in the world.

Lawrence Page, Southern Silver’s president and director, stated: “Sole ownership of the CLM project inclusive of the significant resources developed to date allows us great latitude in developing the project for substantial resource growth. The transaction also provides a 150-per-cent increase in attributable resources which is highly accretive to Southern Silver shareholders. An extensive diamond drill program will begin within the next two weeks designed to develop previously identified mineralization east of the intrusion for ultimate inclusion into the existing resource calculation.”

Private placements recently closed:

• Brokered offering of 50 million subscription receipts at a price of 20 cents per subscription receipt for gross proceeds of $10-million: Each subscription receipt has now been exchanged, for no additional consideration, into one unit of the company. Each unit consists of one common share and one-half of one share purchase warrant, with each full warrant exercisable to purchase one additional common share at a price of 25 cents during the first year, increasing to 30 cents in year 2 and to 35 cents in year 3.
• Non-brokered offering of 19,047,620 subscription receipts at a price of 21 cents per subscription receipt for gross proceeds of $4-million: Each subscription receipt has now been exchanged, for no additional consideration, into one unit of the company. Each unit consists of one common share and one-half of one share purchase warrant, with each full warrant exercisable to purchase one additional common share at a price of 28 cents during the first year, increasing to 33 cents in year 2 and to 38 cents in year 3.
• Non-brokered private placement of 1.2 million units at a price of 38 cents per unit for gross proceeds of $456,000: Each unit consists of one common share and one share purchase warrant, with each warrant exercisable to purchase one additional common share at an exercise price of 50 cents per share for a period of three years.

Cerro Las Minitas project

The CLM project is an advanced-exploration-stage polymetallic silver-lead-zinc-copper skarn/carbonate replacement deposit project located in southern Durango, Mexico.

The CLM project, as of May 9, 2019, contains a mineral resource estimate, at a 175-gram-per-tonne-silver-equivalent cut-off, of:

• Indicated — 134 million ounces silver equivalent: 37.5 million ounces silver, 40 million pounds copper, 303 million pounds lead and 897 million pounds zinc;
• Inferred — 138 million ounces silver equivalent: 45.7 million ounces silver, 76 million pounds copper, 253 million pounds lead and 796 million pounds zinc.

A total of 133 drill holes for 59,000 metres have now been completed on the CLM project with exploration expenditures of approximately $18.5-million (U.S.), equating to exploration discovery costs of approximately seven cents per silver equivalent ounce to the end of 2019.

Southern Silver has identified a further 10,000 metres in exploration drilling for 2020, targeting specific stepouts from strongly silver-enriched mineral intercepts in the Las Victorias, South Skarn and Mina La Bocona targets. The targeting is designed to increase the current mineral resource estimate by approximately 30 per cent. The CLM project remains one of the larger undeveloped silver-lead-zinc projects in the world. It is fully permitted.

As reported by New Placer, drill hole BL20-01, located in the south mine fault zone, intersected 1.08 grams per tonne gold and 26 grams per tonne silver over 38.1 metres, including 1.8 g/t gold over 12.2 metres (see an attached table). The BL20-01 intercept expands gold mineralization approximately 40 metres vertically below 2019 drill hole BL19-04, which intersected 122 metres of 1.2 g/t gold in hole BL19-041, and delivers on one of the key goals of the 2020 Bolo project drill campaign, which is to test Carlin-style gold mineralization at depth in the south mine fault zone, where it remains open and untested.

To date, eight reverse circulation drill holes, totalling 2,301 metres, have been drilled as part of the 2020 Bolo project drill program currently under way. New Placer and Allegiant expect continued news flow over the coming weeks and months as assay results are received from the laboratory.

RC drilling at Bolo has defined a 1.2-kilometre, north-south-trending corridor of gold-silver mineralization containing the south mine fault zone, the Uncle Sam zone and the northeast extension zone. Gold mineralization at Bolo exhibits characteristics of classic Carlin-type mineralization, including strong subvertical structural control, in addition to evidence of gold mineralization extending laterally at low angles within favourable silty carbonate units. The relatively untested, 500 m strike length south mine fault zone/Uncle Sam segment is particularly prospective and is the focus of New Placer Dome’s 2020 exploration, designed to prove out these compelling structural and stratigraphic gold targets.

Methodology and quality assurance/quality control

As reported by New Placer, the analytical work reported on herein was performed by ALS Global, Vancouver, Canada. ALS is an ISO/IEC 17025:2017-accredited and ISO 9001:2015-accredited geoanalytical laboratory and is independent of New Placer Dome and the qualified person. RC drill samples were subject to crushing at a minimum of 70 per cent passing two micrometres, followed by pulverizing a 250-gram split to 85 per cent passing 75 micrometres. Gold determination was via standard atomic absorption finish and 30-gram fire assay analysis, in addition to 48-element ICP-MS geochemistry. New Placer Dome follows industry-standard procedures for the work carried out on the Bolo gold-silver project with a quality assurance/quality control program. Blank, duplicate and standard samples were inserted into the sample sequence sent to the laboratory for analysis. New Placer Dome detected no significant quality assurance/quality control issues during the review of the data. New Placer Dome is not aware of any drilling, sampling, recovery or other factors that could materially affect the accuracy or reliability of the data referred to herein.

An amended and restated technical report entitled “Amended Independent Technical Report for the Cachinal Silver-Gold Project, Region II, Chile” with an effective date of Sept. 11, 2020, has been filed under the company’s profile on SEDAR. The mineral resource estimate was performed by independent qualified persons Glen Cole, PGeo, of SRK Consulting (Canada) Inc., and Sergio Alvarado Casas, CMC, of Geoinvest SAC EIRL (Chile).

The amended and restated technical report was prepared in accordance with the Canadian Securities Administrators’ National Instrument 43-101 — Standards of Disclosure for Mineral Projects.

  SUMMARY OF THE CIM COMPLIANT MINERAL RESOURCE ESTIMATE FOR THE CACHINAL SILVER-GOLD PROJECT
 
Classification  Material type  Tonnes (Mt)  Silver (g/t)  Gold (g/t)  Silver (Moz)  Gold (Koz)

                     Open pit         4.83            97        0.13         15.03       20.05   
                  Underground         0.22           182        0.22          1.29        1.65   
Indicated               Total         5.05           101        0.13         16.32       21.70   
                     Open pit         0.17            73        0.07          0.41        0.43   
                  Underground         0.36           180        0.19          2.07        2.18   
Inferred                Total         0.53           145        0.15          2.48        2.61   

Notes on the Cachinal mineral resource estimate

For full details on the Cachinal mineral resource estimate, please refer to the NI 43-101 technical report titled “Independent Technical Report for the Cachinal Silver-Gold Project, Region II, Chile” by qualified persons Mr. Cole (PGeo) of SRK Consulting and Mr. Alvarado Casas of Geoinvest dated Sept. 11, 2020, with an effective date of Aug. 10, 2020, filed on the Aftermath Silver SEDAR profile.

Cachinal mineral resources were classified according to the CIM definition standards for mineral resources and mineral reserves (May, 2014).

Mineral resources that are not mineral reserves do not have demonstrated economic viability.

All figures have been rounded to reflect the relative accuracy of the estimates. Cut-off grades are based on metal price assumptions of $22 (U.S.) per ounce of silver and $1,550 (U.S.) per ounce of gold, and metallurgical recoveries of 85 per cent for both silver and gold using milling and cyanide leaching.

The portion of the mineral resources that has been determined to be amenable to extraction through open-pit methods uses a cut-off of 30 grams per tonne silver equivalent.

The open-pit mineral resource is constrained within Lerchs-Grossman optimized pit shells that assume mining dilution and losses of 2.5 per cent, 50-degree overall slope angles, mining costs of $2 per tonne of rock, general and administrative costs of $2 per tonne of rock, processing costs of $15 (U.S.) per tonne for processing using milling and cyanide leaching.

The portion of the mineral resources deemed to be amenable to extraction through underground methods are reported at a cut-off of 150 g/t silver equivalent. This assumes a mining cost of $90 (U.S.) per tonne, general and administrative costs of $2 per tonne, and a processing costs of $15 (U.S.) per tonne for agitated leaching.

The amended and restated technical report includes additional disclosure in the areas of the assumed metal prices, and the mining, general, administrative and processing costs used to establish the cut-off grades. It also includes the results of recent site visit and other data verification steps.

Ralph Rushton, president and chief executive officer of the company, commented: “We’re pleased to be able to release this current resource for Cachinal. We were fortunate to have been able to work with Chilean-based independent QP Sergio Alvarado Casas, who was able to conduct the site visit as Chilean COVID-19 restrictions have eased in some areas. As soon we’re able to, the company will commence fieldwork on both the Cachinal and Challacollo projects. Planning for this is well advanced.”

About Cachinal silver-gold project

The Cachinal silver-gold project is located in Chile’s Antofagasta region (region II). The project is located about 40 kilometres east of the Pan American Highway, in a nearly flat plain at an elevation of around 2,700 m above sea level, 16 km north of Austral Gold’s Guanaco gold-silver mine.

Aftermath Silver currently owns 80-per-cent interest in the Cachinal silver-gold project, through its Chilean holding company, Minera Cachinal SA. Aftermath has a binding agreement with SSR Mining to acquire the remaining 20 per cent (see Company news release dated May 27, 2020).

Cachinal is a low-sulphidation epithermal deposit. The epithermal veins and breccias have been recognized by mapping, trenching and over 37,000 m of drilling. Cachinal has a strike length of at least two km. Historic mining is known to have occurred to a depth of at least 300 m. The main veins trend north-northwest and northwest with a secondary set trending east-northeast to east-west, most strongly developed at the southern end of the deposit. The current mineral resources are demonstrated to a depth of approximately 150 m below surface and provide sufficient evidence to interpret the presence of high-grade shoots within the vein system extending below the base of the optimized pit shells.

Each unit consists of one common share and one-half of one common share purchase warrant. Each warrant entitles the holder thereof to acquire one common share of Defiance at an exercise price of 48 cents per share until Sept. 16, 2022.

Defiance intends to use the proceeds of the offering to begin an aggressive exploration program at its Zacatecas projects and for general working capital purposes. The drill program will focus on the following:

1. A 1.3-kilometre-by-300-metre corridor where a hanging wall mineralizing event has been identified;
2. Deep targets along strike of the Veta Grande to the immediate southeast;
3. El Mirador, part of a multikilometer felsic fault structure (La Veta Morada) with visible silver sulphides that outcrops near previous drilling in the vicinity of the Almaden shaft and underground working.

In connection with the offering, the agents received a cash commission of $499,844 and 1,470,782 non-transferable compensation options, each entitling the agents to purchase one unit of the company at a price of 34 cents per unit until Sept. 16, 2022. All securities issued under the offering are subject to a four-month hold period expiring on Jan. 17, 2021.

Insiders of Defiance subscribed for a total of 470,800 units for total gross proceeds of $160,072 under the offering. Participation by insiders constitutes a related party transaction as defined under Multilateral Instrument 61-101. The issuance of securities to such related parties is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 pursuant to Subsection 5.5(b) of MI 61-101 and exempt from the minority shareholder approval requirements of Section 5.6 of MI 61-101 pursuant to Subsection 5.7(b) of MI 61-101 as the purchase of securities does not exceed 25 per cent of the company’s market capitalization. The company is relying on exemptions from the formal valuation and minority shareholder approval requirements provided under sections 5.5(a) and 5.7(1)(a) of Multilateral Instrument 61-101. The company did not file a material change report 21 days prior to the closing of the offering as the details of the participation of insiders of the company had not been confirmed at that time.

In other news, Defiance is pleased to announce that it has entered into an advisory agreement with Red Cloud Financial Services Inc. Red Cloud is a Toronto-based financial services company that provides assistance in accessing capital markets. Under the agreement, Red Cloud will assist with organizing and administering road shows, drafting traditional marketing materials, managing Defiance’s social media, and providing traditional media support and assistance in the creation of video content for exclusive use on Red Cloud TV.

Under the engagement, Red Cloud will be paid a fee of $75,000 for an initial six-month period of services rendered to the company. The agreement will automatically renew month to month thereafter at $10,000 per month and may be terminated at any time.

The offering and agreement remain subject to regulatory approval.

Number of shares:  26,362,442 shares

Purchase price:  65 cents per share

Number of placees:  126 placees

Insider:  2176423 Ontario Ltd. (Eric Sprott), 9.2 million

Finders’ fees:  PI Financial Corp., $38,114.99 in cash payments and 10,500 common shares; Sprott capital Partners LP, $91,000 in cash payments; Haywood Securities Inc., $1,365 in cash payments; Canaccord Genuity Corp., $95,550$ in cash payments; Hannam & Partners Advisory Ltd., $37,538 in cash payments; Escoban Securities Corp., $230,999.95 in cash payments; Mackie Research Capital Corp., 279,860 common shares.

Highlights:

Chemical assays from drill hole LE20-54 returned 9.0m of 12.8% U3O8 and 3.9% Ni from 329.5 to 338.5m, including 4.0m of 27.1% U3O8 and 5.2% Ni from 333.0-337.0m, South Extension drill hole LE20-62 intersected 4.5m of uranium mineralization (>500 CPS) from 321.0 to 325.5m, including 2.5m of very strong mineralization (>30,000 CPS), South Extension drill hole LE20-64 intersected 5.0m of uranium mineralization (>500 CPS) from 324.0 to 329.0m, including 4.0m of very strong mineralization (>30,000 CPS), Drill holes LE20-62 and LE20-64 are located on section with, and 11m and 28m (respectively) south of well mineralized drill hole LE20-57 (previously reported), LE20-62 and LE20-64 extend mineralization close to the “J” fault, which remains open along-strike to the east for 200m.

Note:Radioactivity is total gamma from drill core measured with an RS-125 hand-held spectrometer (RS-125).

Craig Parry, Chief Executive Officer commented: “I want to congratulate our Technical team on these results. The expansion of the Hurricane zone to the south is very encouraging. Our team continues to deliver excellent drilling results efficiently and safely.”

Steve Blower, Vice President of Exploration commented: “Our primary objective with the summer drilling program was to extend the zone of intense uranium mineralization to the south on the western side of the Hurricane zone. The results in drill holes LE20-62 and 64 have certainly done that. Importantly, it has now been extended nearly to the “J” fault, which is open along-strike to the east for at least 200m.”

LE20-62 Radioactivity (Drill 1)

Drill hole LE20-62 is located 11m south of previously reported drill hole LE20-57, which was well mineralized (Figures 2 and 3). LE20-62 cored strongly altered Athabasca sandstone before intersecting an upper 2.5m thick interval of weak uranium mineralization from 314.0-316.5m, followed by a 4.5m thick interval of strong mineralization from 321.0-325.5m. Included in this interval is 2.5m of intensely radioactive mineralization greater than 30,000 CPS (RS-125), which includes a 0.5m sub-interval that is off-scale on the RS-125 hand-held scintillometer. As with all drill holes to date at the Hurricane zone, the mineralization is located at the sub-Athabasca unconformity. Table 1 summarizes the summer 2020 drilling results to date.

LE20-64 Radioactivity (Drill 1)

Located 17m south of drill hole LE20-62 (Figures 2 and 3), drill hole LE20-64 cored strongly altered Athabasca sandstone before intersecting an upper 3.5m thick layer of weak uranium mineralization from 316.5-320.0m, followed by a 5.0m thick interval of strong mineralization from 324.0-329.0m. Included in this interval is 4.0m of intensely radioactive mineralization greater than 30,000 CPS (RS-125). Mineralization on this north-south section (4435E) now measures at least 48m in width, and is open to the north and south. Most importantly, the summer drilling has now expanded the zone of intense mineralization over 30m to the south, almost to the “J” fault. This fault is parallel to the other main mineralized “H” and “I” faults, and is wide open to the east for at least 200m.

LE20-54 Assays (Drill 1)

Drilled to expand the very strong mineralization intersected in drill hole LE20-32A (8.5m @ 19.6% U3O8) during the winter 2020 drill program, drill hole LE20-54 intersected the sub-Athabasca unconformity approximately 7.0m north of winter drill hole LE20-32A (Figures 2 and 4). Radioactivity in drill hole LE20-54 was previously reported. Chemical assays have now been received and the intersection consists of 9.0m of uranium mineralization that averages 12.8% U3O8 and 3.9% Ni from 329.5-338.5m. Included in this interval is 4.0m of 27.1% U3O8 and 5.2% Ni. Within the higher-grade subinterval is a 0.5m section of off-scale radioactivity that contains 52.5% U3O8 and 1.6% Ni.

Other Drill Holes (Drill 2)

Five additional drill holes (LE20-58C1, 59, 60, 61 and 63A) have also been completed with Drill 2 on the eastern side of the Hurricane zone. While all but LE20-60 are weakly mineralized, there have been no intersections of strong uranium mineralization in the holes completed by Drill 2 to date.

Next Steps

Expansion of the Hurricane zone mineralization to the north and south on the western side will remain the primary focus of the program. Samples collected from the drilling completed to date are periodically shipped to the analytical laboratory in Saskatoon. Chemical assay results generally follow within three to four weeks of the shipping dates.

The Larocque East Property and the Hurricane Zone

The 100% owned Larocque East property consists of 31 mineral claims totaling 15,878ha that are not encumbered by any royalties or other interests. Larocque East is immediately adjacent to the north end of IsoEnergy’s Geiger property and is 35km northwest of Orano Canada’s McClean Lake uranium mine and mill.

Along with other target areas, the Property covers a 15-kilometre-long northeast extension of the Larocque Lake conductor system; a trend of graphitic metasedimentary basement rocks that is associated with significant uranium mineralization at the Hurricane zone, and in several occurrences on Cameco Corp. and Orano Canada Inc.’s neighbouring property to the southwest of Larocque East. The Hurricane zone was discovered in July 2018 and was followed up with 29 drill holes in 2019 and an additional 14 drill holes to date in 2020. Dimensions are currently 575m along-strike, 40m wide, and up to 11m thick. The zone is open for expansion along-strike to the east and on most sections. Mineralization is polymetallic and commonly straddles the sub-Athabasca unconformity 320 m below surface. The best intersection to date is 33.9% U3O8 over 8.5m in drill hole LE20-34. Drilling at Cameco Corp.’s Larocque Lake zone on the neighbouring property to the southwest has returned historical intersections of up to 29.9% U3O8 over 7.0m in drill hole Q22-040. Like the nearby Geiger property, Larocque East is located adjacent to the Wollaston-Mudjatik transition zone – a major crustal suture related to most of the uranium deposits in the eastern Athabasca Basin. Importantly, the sandstone cover on the Property is thin, ranging between 140m and 330m in previous drilling.

Table 1 - Summer 2020 Drilling Program Results
  
  
   Hole-ID   From (m)  To (m)  Length (m) Radioactivity1,2Chemical AssaysOrientationLocation  
                                       (CPS)           U3O8 (%) Ni (%)(Azm/Dip)            
LE20-543  329.5     338.5   9.0        >500            12.8     3.9   180/-79    Sect 4510E
incl.     333.0     337.0   4.0        >30,000         27.1     5.2                        
incl.     334.0     334.5   0.5        Off-scale5      52.5     1.6                        
LE20-553  No significant mineralization                               180/-70    Sect 4785E
LE20-563  351.0     358.5   7.5        >500            Pending        180/-70    Sect 4660E
LE20-573  335.8     336.8   1.0        >500            Pending        217/-70    Sect 4435E
and       343.8     353.8   10.0       >500                                                
incl.     347.3     349.8   2.5        >40,000                                             
incl.     347.8     348.3   0.5        Off-scale5                                          
LE20-58   Abandoned before target                                     180/-69    Sect 4785E
LE20-58C15144.0     146.5   2.5        >500            Pending        180/-71    Sect 4785E
LE20-59   342.0     347.0   5.0        >500            Pending        112/-69    Sect 4610E
Incl.     345.0     345.5   0.5        >5,000                                              
LE20-60   No significant mineralization                               000/-90    Sect 4660E
LE20-61   313.0     322.0   9.0        >500            Pending        000/-90    Sect 4660E
incl.     321.5     322.0   0.5        >10,000                                             
LE20-62   314.0     316.5   2.5        >500            Pending        000/-90    Sect 4435E
and       321.0     325.5   4.5        >500                                                
incl.     323.0     325.5   2.5        >30,000                                             
incl.     324.5     325.0   0.5        Off-scale5                                          
LE20-63A  329.5     330.5   1.0        >500            Pending        180/-85    Sect 4660E
LE20-64   316.5     320.0   3.5        >500            Pending        000/-90    Sect 4435E
and       324.0     329.0   5.0        >500                                                
incl.     324.5     328.5   4.0        >30,000                                             
                                                                                           
Notes:
1.  Radioactivity is total gamma from drill core measured with an RS-125 hand-held spectrometer
2.  Measurements of total gamma on drill core are an indication of uranium content, but may 
not correlate with chemical assays
3.  Radioactivity previously disclosed
4.  Off-scale radioactivity is defined as exceeding 65,536 cps, the maximum measurable by an 
RS-125 spectrometer              
5.  LE20-58C1 is a wedged off-cut from LE20-58 at 200m

Following on DDH 17315-20-121 (Press Release; August 18, 2020) , which set out the depth potential at Bonnefond, these assay results indicate the Bonnefond footprint is also expanding to the west and to the east. The drilling campaign to the north of the intrusive was recently completed (assays pending) and QMX is currently drilling Bonnefond at depth in the intrusive and to the south of the deposit.

Highlights include (Grades are uncut; lengths are measured along the holes, Table 1):

In the Bonnefond intrusive:

DDH 17315-20-111 returned 1.70 g/t Au over 78.5 m, including 9.48 g/t Au over 6.0 m DDH 17315-20-114 returned 1.18 g/t Au over 136.2 m DDH 17315-20-128A returned 1.28 g/t Au over 50.4 m; 2.31 g/t Au over 22.5m and 40.52 g/t Au over 2.0m

East of the Bonnefond intrusion:

DDH 17315-20-100 returned 3.98 g/t Au over 15.0m, including 4.91 g/t Au over 4.5m in a shear zone.

West of the Bonnefond intrusion:

Extends the shear zone system on a 200m strike west of the intrusive (Figure 1) DDH 17315-18-068-Ext returned 62.44 g/t Au over 1.0m in a shear zone DDH 17315-20-123 returned 3.44 g/t Au over 6.0m in a shear zone DDH 17315-20-124 returned 27.20 g/t Au over 1.5m in a shear zone

North of the Bonnefond intrusion:

DDH 17315-19-084-Ext returned 6.43g/t Au over 3.0m in a shear zone.

“We are very happy to report the western extension of mineralization in connection with the shear zones already encountered within the Bonnefond intrusion”, says Dr. Andreas Rompel, Vice President Exploration, “Bonnefond continues to expand in all directions including at depth. As we await assay results from our recently completed drill program to the north, we have started drilling the gap to the South, between Bonnefond and New Louvre.”

Highlights from DDH 100; 111; 114; 123, 124, 128A and Extensions of DDHs 068 and 084 --Bonnefond Deposit. 
 
 Hole Number      From(metre)To(metre)Length*(metre)Au**(g/t)  Comment  
                                                                       
17315-20-100        343.5     358.5       15.0       3.98   East Shear 
Including           343.5     348.0       4.5        4.91              
                                                                       
17315-20-111        307.0     385.5       78.5       1.70    Tonalite  
Including           337.5     343.5       6.0        9.48              
                                                                       
17315-20-114        356.8     493.0      136.2       1.18    Tonalite  
                                                                       
17315-20-128A       174.0     224.4       50.4       1.28    Tonalite  
                    268.6     291.1       22.5       2.31    Tonalite  
                    427.6     429.6       2.0        40.52   Tonalite  
                                                                       
17315-20-123        327.0     333.0       6.0        3.44   West Shear 
                                                                       
17315-20-124        375.0     376.5       1.5        27.20  West Shear 
                                                                       
17315-18-068-Ext    275.0     276.0       1.0        62.44  West Shear 
                                                                       
17315-19-084-Ext    209.1     212.1       3.0        6.43   North Shear
                                                                       

* Reported length measured along the hole.

** Au uncapped Bonnefond {᛼ –} Main zone and East extension

Seven of the drill holes reported in this batch of assays are located on the eastern side and in the main part of the Bonnefond deposit. The holes were drilled to test the mineralization in the Bonnefond intrusive and in the shear zone system south and east of the intrusive. Two of the reported holes were extensions of 2019 drill holes, 17315-19-079 and 084.

DDH 100 and 111 were drilled towards the north-west, along the strike of the intrusive to intersect its eastern contact and test the distribution of the mineralization. DDH 100 intersected 3.98 g/t Au over 15.0m, including 4.91 g/t Au over 4.5m in a shear zone south-east of the intrusive. Even though the drilled angle for DDH 111 and 100 was not optimized to intersect the mineralized veins, DDH 111 encountered 1.70 g/t Au over 78.5m, including 9.48g/t Au over 6.0m in the intrusive.

DDH 128A was the last drill hole of a series of 3 down plunge hole testing the mineralization at depth in the intrusive. It was drilled on the western edge of the tonalite and exited the intrusive after 450m down the hole. It returned a series of mineralized intervals with 4.66 g/t Au over 6.7m; 1.28 g/t Au over 50.4m; 2.31 g/t Au over 22.5m; 16.14 g/t Au over 1.3m and 40.52 g/t Au over 2.0m.

DDH 079; 084; 107 and 114 were drilled towards the south to complete the drilling pattern in order to raise the confidence level in the inferred part of the resource located in the intrusive to the indicated category. DDH 114 intersected 1.18 g/t Au over 136.2m in the intrusive. The extension of DDH 084 intersected a shear north of the intrusive grading 6.43 g/t Au over 3.0m.

Bonnefond Shear System Expanding 200m to the West

Ten drill holes reported in this batch of assays are located west of the Bonnefond deposit. The holes were drilled to test the western extension of the Bonnefond shear system (Figure 1) between the Bonnefond intrusive and the western limit of the property. One of the reported holes was an extension of an earlier drill hole, 17315-18-068. All holes were drilled toward the south, except for DDH 122 and 125 which were drilled in a south-east direction to intercept the West Fault and shear zones in the process. The best intercepts include 62.44 g/t Au over 1.0m in DDH 068 and 27.20 g/t Au over 1.5m in DDH 124.

These assays results are the final batch to be included in the 2020 resource estimate update for the Bonnefond deposit. These new results confirm the extension of the Bonnefond shear system on both sides of the mineralized tonalite and extend the already defined 400m long shear zone systems increasing the overall footprint of the project.

Ongoing drilling at Bonnefond

QMX is currently operating two drill rigs in the Bonnefond area and recently completed the 9,000m drilling program north of the Bonnefond intrusive. The program tested the extension and geometry of the shear system north of the intrusive. One of the drill rigs has now mobilized to the western part of the New Louvre project, to the south of the Bonnefond Deposit, in order to test the western extension of the New Louvre shear system (Figure 2). Following the positive results from DDH 121A (Press Release; August 18, 2020) , t he second rig moved back on the Bonnefond intrusive to complete a 4,000m drilling program focusing on expanding the deposit at depth. A third drill rig will be added on the property during the fall to support these programs.

Corporate Update

QMX would like to welcome Paul Bozoki to the team as Chief Financial Officer. Mr. Bozoki has over 20 years of international accounting, tax and corporate finance experience largely in the mining industry.

This appointment follows Deb Battison’s resignation as Chief Financial Officer of QMX. Ms Battison will remain available to ensure a smooth transition. QMX’s Board of Directors and management would like to express their gratitude to Ms. Battison for her invaluable contributions since joining QMX in 2003 and wishes her all the best in her future endeavours.

QMX also announces that it has relocated its registered head office to 77 King Street West, TD North Tower Suite 700, P.O. Box 118 Toronto, Ontario, M5K 1G8

Quality Control

During the drilling program, assay samples were taken from the NQ core and sawed in half. One half is sent to Swaslab Ltd., a certified commercial laboratory. The other half of the core is retained for future reference. A strict quality assurance and quality control program was applied to all samples, which included insertion of mineralized standards, blank samples and duplicates inside each batch of 20 samples. The gold analyses were completed by fire-assay with an atomic absorption finish on 50 grams of material. Repeats were carried out by fire-assay with a gravimetric finish on each sample containing 5.0 g/t Au or more. The gold analyses were undertaken by fire-assay on 50 grams of pulp with an atomic absorption finish. Repeats were carried out by fire-assay with a gravimetric finish on each sample containing 5.0 g/t Au or more.

Qualified Persons

The scientific and technical content of this press release has been reviewed, prepared and approved by Melanie Pichon, P.Geo, M.Sc, Exploration Manager, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”).

About QMX Gold Corporation

QMX Gold Corporation is a Canadian based resource company traded on the TSX Venture Exchange under the symbol “QMX”. The Company is systematically exploring its extensive property position in the Val d’Or mining camp in the Abitibi District of Quebec. QMX Gold is currently drilling in the Val d’Or East portion of its land package focused on the Bonnefond Deposit and in the Bourlamaque Batholith. In addition to its extensive land package QMX Gold owns the strategically located Aurbel gold mill and tailings facility.

Results from DDH 100; 107; 111; 114; 122 to 131 and Extensions of DDHs 068; 079 and 084 -- Bonnefond. 
 
 Hole Number      Azimuth(degree)Dip(degree)HoleLengthFrom(metre) To(metre)Length*(metre)Au**(g/t)  Comment  
                                                                                                  
17315-20-100        315     -55     741       151.5      172.5       21.0       1.44   East Shear 
                                    Incl      162.0      168.0       6.0        2.52              
                                              246.0      250.2       4.5        1.95   East Shear 
                                              343.5      358.5       15.0       3.98   East Shear 
                                    Incl      343.5      348.0       4.5        4.91              
                                              450.0      456.0       6.0        1.11    Tonalite  
                                              460.5      463.5       3.0        4.51    Tonalite  
                                              531.0      540.0       9.0        1.31    Tonalite  
                                              546.0      549.0       3.0        2.58    Tonalite  
                                              600.0      603.0       3.0        2.32    Tonalite  
                                                                                                  
17315-20-107        175     -55     447       154.5      156.0       1.5        4.12    Tonalite  
                                              172.5      175.5       3.0        1.75    Tonalite  
                                              181.5      184.5       3.0        2.08    Tonalite  
                                              369.0      372.0       3.0        1.36   South Shear
                                              413.5      420.5       7.0        1.08   South Shear
                                                                                                  
17315-20-111        295     -45     663       228.0      233.0       5.0        1.79   North Shear
                                    Incl      228.0      229.0       1.0        5.09              
                                              307.0      385.5       78.5       1.70    Tonalite  
                                    Incl      337.5      343.5       6.0        9.48              
                                              396.5      415.5       19.0       0.80    Tonalite  
                                              423.5      425.5       2.0        3.92    Tonalite  
                                              455.0      457.0       2.0        4.47    Tonalite  
                                              466.5      469.0       2.5        1.70    Tonalite  
                                              504.5      512.5       8.0        2.97    Tonalite  
                                    Incl      506.5      508.5       2.0        9.04              
                                              527.0      529.0       2.0        3.59    Tonalite  
                                              561.0      563.9       2.9        4.40   Shear zone 
                                              652.8      655.5       2.7        2.93   Shear zone 
                                                                                                  
17315-20-114        175     -80     655       356.8      493.0      136.2       1.18    Tonalite  
                                    Incl      362.8      364.8       2.0        5.09              
                                    Incl      411.0      414.0       3.0        12.14             
                                              539.9      543.3       3.4        1.49   Shear zone 
                                              590.3      592.0       1.7        3.19   Shear zone 
                                                                                                  
Hole Number      Azimuth(degree)Dip(degree)HoleLengthFrom(metre) To(metre)Length*(metre)Au**(g/t)  Comment  
                                                                                                  
17315-20-128A        10     -70     663        99.0      105.7       6.7        4.66    Tonalite  
                                              159.0      160.5       1.5        6.33    Tonalite  
                                              174.0      224.4       50.4       1.28    Tonalite  
                                              258.4      260.6       2.2        5.90    Tonalite  
                                              268.6      291.1       22.5       2.31    Tonalite  
                                              360.7      362.0       1.3        16.14   Tonalite  
                                              427.6      429.6       2.0        40.52   Tonalite  
                                              456.2      457.8       1.6        3.41   South Shear
                                              533.9      535.5       1.6        3.64   South Shear
                                              547.0      550.4       3.4        2.88   South Shear
                                                                                                  
17315-19-079-Ext    180     -85     768       527.1      530.1       3.0        4.43   South Shear
                                                                                                  
17315-19-084-Ext    180     -85     654       209.1      212.1       3.0        6.43   North Shear
                                              380.8      397.2       16.4       2.00    Tonalite  
                                              405.5      409.1       3.6        1.80    Tonalite  
                                              424.9      426.0       1.1        3.02    Tonalite  
                                              446.8      449.6       2.8        3.02    Tonalite  
                                              454.2      456.2       2.0        2.53    Tonalite  
                                              474.2      477.4       3.2        2.56    Tonalite  
                                              534.8      538.4       3.6        2.83   South Shear
                                              576.5      479.8       3.3        2.34   South Shear
                                              591.7      594.3       2.6        2.71   South Shear
                                                                                                  
17315-20-122        115     -50     264       121.3      125.3       4.0        2.07   West Shear 
                                              169.5      173.7       4.2        2.54   West Shear 
                                              170.9      172.3       1.5        5.93   West Shear 
                                                                                                  
17315-20-123        180     -85     408       327.0      333.0       6.0        3.44   West Shear 
                                                                                                  
                                                                                                  
17315-20-124        180     -85     402       375.0      376.5       1.5        27.20  West Shear 
                                                                                                  
17315-20-125        115     -50     447       373.9      375.0       1.1        4.56   West Shear 
                                              411.2      413.5       2.3        2.27   West Shear 
                                                                                                  
17315-20-126        180     -85     444    No significant result                                  
                                                                                                  
                                                                                                  
Hole Number      Azimuth(degree)Dip(degree)HoleLengthFrom(metre) To(metre)Length*(metre)Au**(g/t)  Comment  
                                                                                                  
17315-20-127        180     -85     510       160.5      165.0       4.5        2.34   West Shear 
                                              278.0      281.0       3.0        3.08   West Shear 
                                              438.0      439.5       1.5        4.58   West Shear 
                                                                                                  
17315-20-129        180     -85     555       442.9      444.4       1.5        3.66   West Shear 
                                              496.1      497.5       1.4        6.27   West Shear 
                                                                                                  
17315-20-130        180     -85     345       322.5      327.0       4.5        1.33   West Shear 
                                                                                                  
17315-20-131        180     -60     327       106.0      109.5       3.5        1.85   West Shear 
                                                                                                  
17315-18-068-Ext    180     -85     504       275.0      276.0       1.0        62.44  West Shear 
                                                                                                  

* Reported length measured along the hole.

** Au uncapped

The prefeasibility study was based on EMM; whereas production of EMD is less expensive due to reduction of electroplating costs for EMD, which is 20 per cent of the cost of EMM and the footprint for mines is 60 per cent of EMM footprint. The patented process is closed loop with dry tailings and reuse of water.

2020 Evolucion MRE highlights:

• Updated MRE incorporates 17,120 metres of additional surface drilling completed in the resource area from June, 2018, to Dec. 31, 2019;
• Indicated resource of 6,407,000 tonnes at 170 grams per tonne silver equivalent (AgEq) representing 35,091,000 silver equivalent ounces;
• Inferred resource of 14.96 million tonnes at 135 g/t AgEq representing 64,813,000 AgEq ounces;
• Expansion drilling being planned to test the strike extension of the mineralized zones and follow up on parallel structures, where grab samples taken during detailed mapping in 2020 returned values of up to 2.30 g/t Au, 203 g/t Ag and 10.4 per cent lead.

“We discovered the Lechuzas zone adjacent to our Miguel Auza mill in late 2018 and identified a sizeable mineral resource that, when combined with the historic Calvario vein, is similar to other deposits currently producing in the region,” stated Ben Pullinger, senior vice-president, geology. “This MRE represents a sizeable addition to Excellon’s overall metal inventory and a foundation to further advance the project, as both Lechuzas and Calvario are open for extension along strike and at depth.”

Resource summary for Evolucion project

The MRE will be included in an updated technical report prepared by SRK Consulting (Canada) Inc. under National Instrument 43-101, which will be published on SEDAR in the coming weeks.

                            MINERAL RESOURCE STATEMENT, EVOLUCION PROJECT, ZACATECAS, MEXICO

                                                               Grade                                     Contained metal
                            Tonnes     Ag     Au    Pb     Zn   AgEq         Ag        Au        Pb        Zn       AgEq
Category             Zone  (000 t)  (g/t)  (g/t)   (%)    (%)  (g/t)   (000 oz)  (000 lb)  (000 lb)  (000 lb)   (000 oz)

Indicated        Calvario    6,407     64   0.09  1.00   1.14    170     13,154        19   140,741   161,548     35,091
          total indicated    6,407     64   0.09  1.00   1.14    170     13,154        19   140,741   161,548     35,091
Inferred         Calvario    5,626     53   0.09  0.82   1.08    149      9,570        16   102,223   134,447     26,902
                 Lechuzas    9,335     30   0.11  0.71   1.18    126      8,953        33   145,235   243,300     37,911
           total inferred   14,960     39   0.10  0.75   1.15    135     18,524        49   247,459   377,747     64,813

Notes
(1) Mineral resources are estimated pursuant to National Instrument 43-101 with an effective date of Aug. 31, 2020. 
(2) Mineral resources are reported at a cut-off grade of 90 g/t AgEq. Cut-off grades are based on a silver price of 
$17 (U.S.) per troy ounce and a silver recovery of 76 per cent; a gold price of $1,550 (U.S.) per troy ounce and 
recovery of 20 per cent; a lead price of 90 U.S. cents per pound and recovery of 90 per cent; and a zinc price of 
$1.15 (U.S.) per pound and recovery of 88 per cent.
(3) Mineral resources that are not mineral reserves do not necessarily demonstrate economic viability. All figures 
have been rounded to reflect the relative accuracy of the estimates. Composites have been capped where appropriate.
(4) The mineral resources were estimated in conformity with the widely accepted CIM (Canadian Institute of Mining, 
Metallurgy and Petroleum) Estimation of Mineral Resource and Mineral Reserves Best Practices Guidelines (November, 2019)
and are reported in accordance with the Canadian Securities Administrators' National Instrument 43-101.
(5) The construction of the mineral resource model was a collaborative effort between Excellon and SRK personnel. Dr. 
Aleksandr Mitrofanov, PGeo (APGO No. 2824), is responsible for resource wireframing, geostatistical analysis, grade 
estimation and classification with senior review provided by Glen Cole, PGeo (APGO No. 1416).

The Lechuzas zone was modelled in conjunction with a remodelling of the historical Calvario vein system. The evaluation of mineral resources for these zones on the Evolucion project involved the following:

1. Validation and verification of the Excellon drill hole and analytical database and quality assurance/quality control performance;
2. Construction of explicit wireframe domains for mineralization using geological indices and structural trends;
3. Definition of resource domains;
4. Data conditioning (compositing and capping) for geostatistical analysis and variography and determination of specific gravity;
5. Definition and interpolation of a 3-D block model;
6. Validation, classification and tabulation;
7. Assessment of reasonable prospects for eventual economic extraction and selection of cut-off grade and grade sensitivity analysis;
8. Preparation of the MRE.

This model incorporates data from 239 drill holes (68,361 metres) completed by previous operators at Calvario and 34 diamond holes (14,509 metres) completed by Excellon from 2018 to 2020 on the Lechuzas zone. Additional work completed and integrated into the model included structural studies completed in 2018, oriented core data, petrographic studies, relogging and reassaying of historical mineralized intersections, and a reinterpretation of the geology and mineralization of the studied area.

Mineral resource modelling of the Evolucion project incorporates lithological and structural geology modelling and grade interpolation. SRK used the available data to create a geological model delimiting the different mineralized domains in Leapfrog Geo. The model comprises a total of 12 high-grade veins (eight at Calvario and four at Lechuzas), and three low-grade haloes for each zone.

The high-grade vein domains were generated using a combination of geological descriptions, where they were available, and AgEq values. The high-grade domains were constrained based on economic composites greater than 10 g/t AgEq threshold and a maximum waste inclusion of one metre. Low-grade domains were modelled based on economic composites of two g/t AgEq threshold and a maximum of three metres of waste inclusion, and further constrained using interval selections based on structural trends. The AgEq calculations are based on a silver price of $17 (U.S.) per troy ounce and a silver recovery of 76 per cent; a gold price of $1,550 (U.S.) per troy ounce and a gold recovery of 20 per cent; a lead price of 90 U.S. cents per pound and a lead recovery of 90 per cent; and a zinc price of $1.15 (U.S.) per pound and a zinc recovery of 88 per cent. Recovery values are based upon the total overall recovery values documented by Roscoe Postle Associates Inc. (2008), determined by the metallurgical testwork completed by Silver Eagle Mines Inc.

Approximately 12 per cent of the tonnage within the MRE (26 per cent of the indicated tonnage and 6 per cent of the inferred tonnage) is located within the La Antigua concession (part of the Evolucion project), which is the subject of litigation between a subsidiary of Excellon and a plaintiff. The initial decision in respect of this litigation does not affect Excellon’s contractual rights to this concession.

The MRE was prepared in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum’s (CIM) Mineral Resources and Mineral Reserves Best Practices guidelines (November, 2019) and is classified per the CIM Definition Standards for Mineral Resources and Mineral Reserves (May, 2014).

The Evolucion property covers 45,000 hectares (450 square kilometres) and 35 kilometres of strike in one of the world’s premier silver mining districts, known as the Fresnillo trend. The Lechuzas and Calvario zones are hosted within the Caracol formation, which hosts the most significant deposits on the Fresnillo trend. Precious and base metal mineralization is associated with structures featuring carbonate and quartz veining that crosscut the host rocks. Pyrite, sphalerite and galena are the most commonly observed sulphide minerals. The property includes a conventional grinding and flotation mineral processing facility, through which the company currently processes ore from its Platosa mine. The mineral processing facility currently has nameplate capacity of approximately 800 tonnes per day (tpd), with a 650 tpd ball mill in operation, and a second 150 tpd ball mill on standby, with opportunities available for further expansion.

Continuing exploration at Evolucion

Detailed mapping and surface sampling are under way on the Evolucion project. Numerous samples with anomalous geochemical signatures have been identified in the target area; these are thought to be the surface expressions of epithermal alteration and associated mineralization. The program will be used to aid in structural modelling and targeting for future drilling.

Qualified person

Ben Pullinger, PGeo, senior vice-president, geology, has acted as the qualified person, as defined in NI 43101, with respect to the disclosure of the scientific and technical information contained in this press release.

Update on trading symbols on the OTC Pink and Frankfurt exchanges

Further to the company’s press release on Sept. 10, 2020, announcing the effective date of the consolidation of the company’s common shares on a one-for-five basis, the following adjustments were made to trading symbols on the OTC Pink and Frankfurt Exchanges:

• On OTC Pink, Excellon’s symbol was changed from EXLLF to EXLLD. The new symbol will remain in effect for a period of 20 trading days after the consolidation was effected or until the company’s common shares start trading on the New York Stock Exchange, whichever comes first. Upon listing on the NYSE, the common shares will trade under the symbol EXN and trading on OTC Pink will cease.
• On the Frankfurt Stock Exchange, Excellon’s symbol was changed from E4X1 to E4X2.

Altus Strategies PLC was informed on Sept. 16, 2020, by Steven Poulton (chief executive officer and director) that he had purchased 43,000 ordinary shares of five pence each at an average price of 64.4 pence per ordinary share.

Following this purchase, Mr. Poulton’s shareholding in the company has increased to 5,608,097 ordinary shares, representing approximately 8.0 per cent of the company’s issued share capital.

Arturo Bonillas, President and Chief Executive Officer of Magna, stated, “We are extremely pleased with the outcome of this study, which validates our view of value and leverage for San Francisco when we acquired the mine earlier this year. This marks an important milestone for Magna as it provides us with a base case operating plan from which we can drive ongoing optimization, growth, and near-term value creation. We see tremendous potential to expand the mineral resource, locally and regionally, and also to increase production scale. In addition to successfully executing the PFS operating plan, our focus will now be on creating additional value through the advancement of a number of identified opportunities.”

Pre-Feasibility Study Highlights

The PFS employs a gold price of $1,450 per ounce. All values are shown in United States dollars unless otherwise noted. Some figures may not add due to rounding.

Base case after-tax net present value (“NPV”) of $80M using a $1,450/oz gold price and 5% discount rate.

Assuming a spot gold price of $1,950 per ounce (“Spot Gold Price”), the project economics increase to an after-tax NPV of $231M using a 5% discount rate.

Average annual gold production of 69 kozs per year over 2021 to 2027.

Average all-in sustaining cash costs of $1,204 per gold ounce.

No major capital required for resumption of full mining operations.

The PFS contemplates a 16,875 tpd heap leach operation using existing processing capacity of 22,000 tpd. Ore placed on the existing leach pad will be sourced primarily from open pits over an initial mine life of eight years, supplemented by a small portion of underground ore. Magna is currently processing minerals from the La Chicharra pit, in addition to previously stockpiled material, and plans to initiate underground mining at the higher-grade lenses in the south wall of the San Francisco pit and also resume open pit mining in the San Francisco pit. Over the current mine life to 2028 outlined in the PFS, a total of 47.6 million tonnes at an average grade of 0.50 g/t containing 758 kozs gold will be mined and processed. Given the mine, processing plant and infrastructure are all existing at San Francisco, there are no significant capital investments required to realize the production outlined in the PFS.

Full details of the PFS and the current estimates of mineral reserves and resources can be found in the technical report entitled “NI 43-101F1 Technical Report Pre-Feasibility Study for the San Francisco Gold Project, Sonora, Mexico” dated August 28, 2020. The technical report was prepared by William J. Lewis, P.Geo., Richard M. Gowans, P.Eng., Nigel Fung, B.Sc.H, B.Eng., P.Eng., Christopher Jacobs, CEng, MIMMM, Ing. Alan San Martin, MAusIMM(CP) of Micon International Limited, and Rodrigo Calles-Montijo, CPG of Servicios Geologicos IMEx, S.C. A copy of the technical report has been filed under Magna’s profile on SEDAR.

Significant Leverage to Gold Price

Magna has calculated the impact to the NPV of San Francisco at various gold prices ranging between the price assumed for the PFS and the Spot Gold Price. Using the Spot Gold Price results in an NPV of $231 million, representing a 189% increase in the reported NPV in the PFS.

  
  
   Assumed Gold Price          PFS ($1,450)$1,600$1,800Spot ($1,950)
After-Tax NPV               $80M        $126M $186M $231M        
NPV Difference from PFS Case--          +58%  +133% +189%        


  

Value Enhancement Potential

Magna has identified several near-term resource growth and operational expansion opportunities that have the potential to extend the mine life of San Francisco and further optimize the project parameters and economics outlined in the PFS.

Magna is currently implementing an aggressive exploration strategy in and around the existing open pits and at depth to increase mineral reserves and resources in 2021. Magna’s exploration strategy also extends to various regional targets being evaluated as potential sources of satellite ore, such as the Mercedes property and La Vetatierra target, that could leverage existing equipment and infrastructure to provide incremental low-cost production in the near-term with minimal capital expenditures.

In addition, as part of the operational improvement plan that was implemented shortly after the acquisition of San Francisco, Magna is in the process of completing an extensive metallurgical test program and evaluating a potential upgrade of the crushing and leaching operation in order to increase capacity and improve metallurgical recoveries.

Magna’s overall goal is to establish an operation capable of producing around 100,000 ounces per year for 10 years, providing for an approximate 45% increase from production levels outlined in the PFS.

Summary of Operating Parameters

The table below provides a summary of the PFS inputs and parameters.

  
   Mining                                                 
Total Ore Tonnes Mined                    47.6 Mt      
Average Diluted Ore Grade                 0.50 g/t     
Total Contained Gold Ounces               758 kozs     
Mine Life (2021 Onwards)                  8 years      
Processing                                             
La Chicharra Gold Recovery                73%          
San Francisco Gold Recovery               66%          
Average Gold Production (2021 - 2027)     69 kozs      
Total Life of Mine Gold Production        527 kozs     
Cash Operating Costs ($/t Ore) and Capital Expenditures
Mining Costs                              $7.43        
Processing Costs                          $4.45        
General and Administrative Costs          $0.58        
Selling Costs                             $0.03        
Cash Operating Costs                      $12.49       
Royalties and Mining Tax                  $0.34        
Total Cash Cost                           $12.83       
Cash Costs per Ounce                      $1,160/oz    
All-In Sustaining Costs per Ounce         $1,204/oz    
Capital Costs                                          
Total Development Capital Costs           $3.4M        
Total Sustaining Capital Costs            $19.8M       
Total Life of Mine Capital Costs          $23.2M       


  

Mineral Reserves and Resources

Mineral reserves as of August 8, 2020 are summarized in the table below and have been estimated using a gold price of $1,350 per ounce.

  
   Category                        Tonnes (kt)Gold Grade (g/t)Contained Gold (kozs)
Proven Reserves                 21,058     0.511           346                  
Probable Reserves               25,789     0.490           406                  
Total Reserves                  46,847     0.499           752                  
Low Grade Stockpile             782        0.256           6                    
Total Reserves (incl. Stockpile)47,629     0.495           758                  


  

Mineral resources as of August 8, 2020 are summarized in the table below and have been estimated using a gold price of $1,500 per ounce.

  
   Category                     Tonnes (kt)Gold Grade (g/t)Contained Gold (kozs)
Measured Resources           34,675     0.462           515                  
Indicated Resources          65,025     0.437           914                  
Measured &Indicated Resources99,700     0.446           1,430                
Inferred Resources           11,374     0.467           171                  
Note: Inclusive of mineral reserves                                          


  

Mineral resources are not mineral reserves and do not have demonstrated economic viability.

Qualified Person

James Baughman (P. Geo.), Consulting Geologist and a Qualified Person as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects, has approved the scientific and technical information in this news release. Mr. Baughman is independent of Magna.

The positive PEA, announced August 5, 2020, demonstrates Back Forty’s potential as a near-term gold-zinc-copper producer in the United States, at a time when advanced and substantially de-risked projects are scarce. The Technical Report is available under the Company’s profile on SEDAR at http://www.sedar.com and on its website at http://www.aquilaresources.com.

2020 Annual and Special Meeting of Shareholders

As previously announced, Aquila will hold its 2020 Annual and Special Meeting of Shareholders (“AGM”) at 10:00 AM ET on September 23, 2020. Due to the ongoing public health concerns related to the COVID-19 pandemic, shareholders are encouraged to vote by proxy and to avoid attending the AGM in person. Shareholders who wish to observe the AGM may do so remotely via the live webcast which will be available at https://6ix.com/event/aquila-resources-annual-special-meeting-of-shareholders/.

The Company is extremely pleased with these initial positive results and plans to immediately conduct detailed infill sampling on additional areas to the west such that the balance of the claim block area has been sampled. During the Company's recent exploration program of detailed geological mapping and sediment and rock sampling an additional 380 samples were taken over the south zone of the main Carmona claim block. Assay results from this second phase program are expected over the next 30 days.

Steve Cochrane, President and CEO of Lithium Chile commented, "We are extremely pleased to see such good gold and silver grades coming out of our current Carmona exploration program. We see significant potential in this property and these recent assay results continue to reinforce our expectations."

The Company also wishes to provide an update of the current situation in Chile as it relates to the COVID-19 Pandemic. While a state of emergency still exists in Chile with restrictions on road travel and health checks in certain communities and at border crossings, some communal restrictions are being lifted. Airports are now open and domestic flights have resumed although on a reduced schedule. Santiago is returning to relative normality and it is anticipated the Chilean Courts will re-open to allow for more cases to be heard. With restrictions slowly being lifted throughout the country, Lithium Chile hopes that its Coipasa compensation hearing will proceed early this fall.

The prefeasibility study was based on EMM; whereas production of EMD is less expensive due to reduction of electroplating costs for EMD, which is 20 per cent of the cost of EMM and the footprint for mines is 60 per cent of EMM footprint. The patented process is closed loop with dry tailings and reuse of water.