The BCSC has informed the company that it has identified a number of examples where the Dome report does not comply with the requirements of National Instrument 43-101 — Standards of Disclosure for Mineral Projects (NI 43-101) and the requirements of Form 43-101F1 technical report. As a result, the company’s preliminary economic assessment is not supported by a compliant NI 43-101 technical report, and the company has determined to hereby retract its technical disclosure relating to project economics, as originally announced in the company’s news release of May 19, 2020, and as disclosed in the Dome report.

The company is working with the independent authors of the report to prepare and file a current technical report to support the mineral resource disclosed in its May 19, 2020, news release. The company currently expects to file an updated current technical report in draft with the BCSC within the next two weeks and subject to clearing comments of the BCSC on SEDAR thereafter. As a result, investors should not rely on the results disclosed in the Dome report pending a compliant technical report being filed.

A total of 80,500 metres of drilling since 2018 have delivered a total estimated indicated mineral resource of 4.96 million ounces gold equivalent AuEq (177 million t with an average grade of 0.87 gram per tonne AuEq) and total estimated inferred mineral resource of 3.15 million oz AuEq (116.7 million t with an average grade of 0.84 g/t AuEq) (see press release dated July 28, 2020), the majority of which is derived from 72,000 metres of drilling proximal to the Z87/Z87 South and the J zones. Drilling at these zones will target upgrading the inferred mineral resources within current open-pit constraining shells to support the planned prefeasibility study, as well as expand and extend near-surface mineralization to support the open-pit mine development scenario.

The Southwest zone is located 3.5 kilometres southwest of Z87, parallel and directly adjacent to the access road to the Troilus mine site. The Southwest zone is characterized by the same dioritic host rock as Z87, but having a more intense level of alteration and mineralization. An 8,500-metre drill program undertaken in late 2019 and early 2020 delivered some of the best results ever drilled at the Troilus property, including 1.56 g/t AuEq over 73 metres in hole TLG-ZSW20-189 (see press release dated April 21, 2020), and outlined a more-than-500-metre mineralized trend that remains open along strike. The SWZ contributed 583,000 AuEq open-pit inferred ounces (22.6 million t with an average grade of 0.80 g/t AuEq) to the overall estimated mineral resources (see press release dated July 28, 2020). Management believes successful drilling at the SWZ has the potential to outline more near-surface, higher grade material that could have a significant impact on future engineering studies and production scenarios.

Justin Reid, chief executive officer of Troilus Gold, commented: “The drills are currently turning. We anticipate that our team will be able to complete a minimum of 20,000 metres before the end of the year. It is our expectation that drilling will aggressively continue through 2021 as well. Over the last three years, our technical team has consistently delivered positive results by refining our structural model and understanding of the Troilus deposit and controls on gold emplacement. This has resulted in a 142-per-cent increase to estimated indicated mineral resources and a 350-per-cent increase to estimated inferred resources since we acquired Troilus in 2017, thereby solidifying management’s belief that this project has the potential to emerge as a long-life, open-pit gold producer of scale located in one of the most favourable mining jurisdictions on the globe.”

“The recent preliminary economic assessment (PEA)* results confirm that the Troilus project, based on the current estimated mineral resources, has the potential to deliver an after-tax IRR of 22.9 per cent and NPV 5 per cent of $576-million based on $1,475/oz gold increasing to 32.2 per cent and $915-million at $1,750/oz gold and 38.3 per cent and $1,156-million at $1,950/oz spot gold prices over the course of a 22-year mine life with production averaging 35,000 tonnes per day (see press release dated Aug. 31, 2020). It is our expectation that with more drilling we have the potential to identify additional resources that could further contribute to the economic forecast of the future mine in terms of life of mine and/or daily production capacity.”

* Assuming a U.S.-dollar/Canadian-dollar exchange of 74 cents.

Troilus remains underexplored and highly prospective. Extensive field exploration work undertaken this summer across the over-107,000-hectare Troilus property is currently being compiled to identify new prospective targets. Assays of samples collected in the field are pending and will be updated in due course.

The company has engaged the services of drilling company Forages Chibougamau Ltee. and three drills have been mobilized on site.

Altus Strategies PLC begins trading today on OTCQX under the symbol ALTUF. U.S. investors can find current financial disclosure and real-time Level 2 quotes for the company on the OTC Markets website.

Upgrading to the OTCQX market is an important step for companies seeking to provide transparent trading for their U.S. investors. For companies listed on a qualified international exchange, streamlined market standards enable them to utilize their home market reporting to make their information available in the United States. To qualify for OTCQX, companies must meet high financial standards, follow best practice corporate governance and demonstrate compliance with applicable securities laws.

Steven Poulton, chief executive officer of Altus, commented: “Altus is a precious metal focused royalty generator with a number of notable institutional and retail shareholders who are based in the U.S.. OTCQX is the highest tier of the OTC Market and we are delighted to be admitted to trading as a means of increasing our visibility to prospective investors and provide them with the opportunity to participate in our continued progress.”

Highlights

• Airborne magnetic and gravity survey will cover seven separate nickel-bearing target structures with more than 30 kilometres of total strike length and ranging from 150 to 600 metres wide. Survey provides same data that was successfully utilized in the discovery and subsequent delineation of its Crawford nickel-cobalt sulphide project.
• Historic drilling yielded nickel-bearing intersections on all of the target structures, including:
  • Kingsmill — 0.30 per cent Ni over core length of 503 metres from 118 metres in historic hole KML-12-02 (2012) and 0.31 per cent Ni over 302-metre core length from 20 metres in historic hole 27090 (1966);
  • Nesbitt-North — 0.28 per cent Ni over core length of 163 metres from 233 metres in historic hole 27083 (1966);
  • Mahaffy-Aubin — 0.23 per cent Ni over core length of 127 metres from 82 metres in historic hole 31901 (1966) and core length of 276 metres of serpentinized ultramafic mineralization (similar host mineralization at Crawford) in historic hole T2-80-2 (1980) with no assays provided.

“This airborne survey is the critical next step in unlocking the nickel-cobalt sulphide potential of the overall land package we have assembled in addition to our Crawford project: seven different structures ranging in size from 2.2 kilometres long by 375 to 600 metres wide (Kingsmill), to eight kilometres long by 200 to 500 metres wide (Mahaffy-Aubin). Each structure has yielded historical drill intersections indicating that the geophysical targets identified are nickel bearing,” said Mark Selby, chair and chief executive officer of Canada Nickel.

“With our recently announced $13-million financing and this airborne survey under way, we look forward to building on the large resource we have already defined at our Crawford nickel-cobalt project and beginning to unlock the district-scale nickel-cobalt potential we believe this region holds over the coming autumn and winter seasons.”

Airborne survey and drilling results from the Crawford Main and East zones showed a strong correlation between specific magnetic and gravity signatures and nickel mineralization. This unique geophysical signature was successfully utilized for ranking drill targets at Crawford.

The Crawford nickel-cobalt sulphide project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.

Airborne survey

The airborne survey, flown by CGG Canada Services Ltd. using the Falcon system, will include measurements of the total magnetic intensity and the vertical gravity gradient made along flight lines oriented north-south and spaced 100 m apart. The current survey totals 2,731 line kilometres and adds to the previously acquired 2,000 line km to completely cover Crawford and Carnegie townships as well as the Nesbitt-North, Kingsmill, MacDiarmid and Mahaffy exploration targets.

Overview of option properties (previously released on July 13, 2020)

Kingsmill

The Kingsmill target is a large serpentinized ultramafic intrusion which is 2.2 kilometres long and between 375 and 600 metres wide. For reference, the Crawford Main zone resource is 1.7 km long and 225 to 425 metres wide.

An initial review of historical drilling results has yielded both significant nickel and PGM (platinum group metal) intersections and the north side of the structure appears to have the same PGE enrichment as Crawford Main and East zones: 1.0 g/t PGM over two metres from 96 metres within 0.3 g/t PGM over 30 metres from 69 metres in historic hole KML-12-11; and 0.8 g/t PGM over five metres from 523 metres within 0.5 g/t PGM over 24 metres in historic hole KML-12-07.

The company believes that the initial review points to several large portions of the structure which remain highly prospective for nickel-cobalt-PGM mineralization:

• The two sections were 1.3 km apart, leaving a large portion of the overall structure completely untested.
• There are several intersections which point to the potential for relatively higher quantities of recoverable minerals.
• Holes KML-12-06, KML-12-11, KML-12-12 on the eastern section all contained intersections with significant nickel and sulphur content (which is necessary for formation of nickel sulphide minerals) across wide intersections (see attached tables).
• Hole KML-12-03, yielding 0.26 per cent nickel and 0.03 per cent sulphur over 130 metres, was the only hole (of four holes on the western section) drilled on the northern half of the structure, which has yielded the best mineralized portions of the Crawford Main and East zones.
• Historic hole 27090, also drilled on north side of the structure in 1966, yielded 0.31 per cent nickel over 302 metres (sulphur was not assayed).

The understanding of the mineralogy of these deposits has evolved significantly since the Kingsmill drilling was completed eight years ago, particularly the controls and the deportment of potentially recoverable nickel minerals across a deposit. Initial mineralogy results from Kingsmill in 2012 were inconclusive as the test was conducted on one master sample compiled from all drill cores across a distance of two km — not taking into account the significant variability in mineralogy between rock types, and that some ultramafic rock will have low amounts of potentially recoverable nickel minerals.

See below caution regarding historical information.

                  KINGSMILL SELECTED HISTORICAL DRILLING KEY NICKEL INTERSECTIONS --
                 HOLES 6, 11, 12 (EASTERN), 3 (WESTERN), KINGSMILL TOWNSHIP, ONTARIO
   
                From        To    Length        Ni        Co        Pd        Pt         S        Fe
DDH ID            (m)       (m)       (m)       (%)       (%)     (g/t)     (g/t)       (%)       (%)

KML-12-02      117.1     620.6     503.5      0.30     0.012     0.003     0.003      0.01      5.36

KML-12-03      134.0     264.4     130.4      0.26     0.012     0.022     0.022      0.03      6.51
including      134.0     169.0      35.0      0.24     0.013     0.042     0.055      0.01      7.59
Including      235.0     264.4      29.4      0.27     0.011     0.008     0.003      0.06      5.94

KML-12-06       54.7     550.0     495.3      0.21     0.011     0.006     0.005      0.05      5.89
including       57.0     324.0     267.0      0.26     0.011     0.008     0.006      0.03      5.88

KML-12-11      112.0     304.0     192.0      0.24     0.011     0.009     0.006      0.03      6.11
including      181.0     303.0     122.0      0.27     0.012     0.008     0.005      0.02      6.25

KML-12-12      175.0     272.0      97.0      0.18     0.011     0.018     0.010      0.10      5.98

Note: The lengths reported are core lengths and not true widths. Canada Nickel has insufficient 
      information to determine the attitude, either of the ultramafic body or of mineralized zones 
      within it. True widths will be less than the core lengths by a number of factors. 


  

              KINGSMILL SELECTED HISTORICAL DRILLING KEY PGM INTERSECTIONS --
            HOLES 6, 11, 12 (EASTERN), 3 (WESTERN), KINGSMILL TOWNSHIP, ONTARIO
  
DDH ID          From        To    Length     Pd+Pt        Pd        Pt        Ni        Co
                  (m)       (m)       (m)     (g/t)     (g/t)     (g/t)       (%)       (%)

KML-12-07      522.0     546.2      24.2       0.4       0.2       0.2      0.06     0.008
including      523.0     528.0       5.0       0.8       0.5       0.3      0.02     0.005

KML-12-11       69.0      99.0      30.0       0.3       0.1       0.1      0.01     0.004
including       96.0      98.0       2.0       1.0       0.3       0.7      0.01     0.005

KML-12-12      153.0     157.0       4.0       0.4       0.2       0.3      0.02     0.005

Note: The lengths reported are core lengths and not true widths. Canada Nickel has 
      insufficient information to determine the attitude, either of the ultramafic body or 
      of mineralized zones within it. True widths will be less than the core lengths by a 
      number of factors. 


  

For details on Noble Mineral Exploration Inc.’s 2012 drilling program, please see Noble’s press release dated March 15, 2018, that is filed on SEDAR.

Once the resource update for Crawford is complete, the historic drilling will be relogged based on the company’s understanding of the geology, and mineralogical samples will be selected to understand the deportment of potentially recoverable nickel minerals (pentlandite, heazlewoodite, awaruite).

Crawford-Nesbitt-Aubin

Two targets have been identified in Crawford-Nesbitt-Aubin township, consisting of two ultramafic units six km long and 150 to 200 metres wide containing serpentinized peridotite, much of it was not assayed. Inco drilling in 1964 to 1966 yielded highlights including narrow intervals of up to 0.35 per cent Ni which tested the edges of the geophysical target. For reference, the Crawford Main zone resource is 1.7 km long and 225 to 425 metres wide.

Nesbitt North

Two ultramafic units 3.7 km long by 150 to 300 metres wide with significant nickel intersections were identified in Nesbitt township. Inco 1966 drilling highlights included 0.28 per cent Ni over 163 m in historic hole 27083. For reference, the Crawford Main zone resource is 1.7 km long and 225 to 425 metres wide.

MacDiarmid

A target of three km by 150 to 600 metres wide ultramafic intrusion with serpentinized peridotite has been identified, much of it was not assayed. Highlights include historic hole 18127 which intersected 142 m of mineralized peridotite which was not assayed, and narrow intervals of up to 0.22 per cent Ni over 1.5 m in NRK-65-7 (1965). For reference, the Crawford Main zone resource is 1.7 km long and 225 to 425 metres wide.

Mahaffy-Aubin

A target of eight km by 200 to 500 metres wide interpreted ultramafic intrusion has been identified, much of it was not assayed. Highlights include historic hole 31901 (1966) which intersected 0.23 per cent Ni over 127 m, and hole T2-80-2 (1980) which intersected 277 m of serpentinized ultramafic rock with no assays reported. For reference, the Crawford Main zone resource is 1.7 km long and 225 to 425 metres wide.

Option terms

As detailed in its March 4, 2020, and May 22, 2020, news releases, Canada Nickel acquired the Crawford Annex property and the option to earn up to an 80-per-cent interest in five additional nickel targets within the project 81 land package. The Crawford Annex comprises 4,909 hectares in Crawford and Lucas township and the five option areas (Crawford-Nesbitt-Aubin, Nesbitt North, Aubin-Mahaffy, Kingsmill-Aubin and MacDiarmid) range in size of 903 to 5,543 hectares.

Canada Nickel has the option to earn up to an 80-per-cent interest in each of the option properties on the following terms and conditions.

1. Canada Nickel can initially earn a 60-per-cent interest in each of the option properties within two years by:
   1. Financing at least $500,000 of exploration and development expenditures on each option property;
   2. Paying all property maintenance costs for each option property, including all applicable mining land taxes;
   3. Making a payment to Noble of $250,000 in cash or, at Noble’s election, Canada Nickel common shares.
2. Canada Nickel has the right to then increase its interest to 80 per cent in each of the option properties within three years by financing an additional $1-million of exploration and development expenditures on each option property (for a total of $1.5-million per option property).

If the conditions to earn a 60-per-cent interest or 80-per-cent interest have been satisfied, a joint venture would be formed on that basis and a 2-per-cent net smelter return royalty (NSR) would be granted to Noble on the portion of the property which are mining claims and currently do not have any royalty on them. (The overall result would be a total 2-per-cent NSR on each property.)

Cautionary statement concerning historical information

The historical information referenced in this press release is based primarily on drilling results reported by Inco Ltd. and Noble Mineral Exploration Inc. A majority of the holes were drilled more than 40 years ago, only tested the periphery of the target structures and did not traverse entire width of the mineralized targets. This historical information has been filed with the Ontario government and is available on-line though the Mining Lands Administration System (MLAS) website.

The company believes this information is relevant, as it was completed by reputable companies using drilling and sampling practices that were industry standard at the time. The company or its qualified person (for the purposes of National Instrument 43-101 — Standards of Disclosure for Mineral Projects) has reviewed the information to confirm it has been correctly reproduced from the public MLAS database, but given the company’s and its qualified person’s inability to access the underlying data, the company or its qualified person has not done sufficient work to verify the historical information contained in this news release.

“Listing on the NYSE American furthers our aims of improving liquidity for our shareholders while broadening access for prospective retail and institutional investors,” stated Brendan Cahill, president and chief executive officer. “We are delighted to join our silver-producing and exploring peers on the NYSE American and look forward to delivering returns to shareholders from the ongoing precious metals bull market.”

Highlights:

• The Kitami metallogenic province of northeastern Hokkaido is host to numerous historic gold mines, including the Konomai mine, Japan’s third largest gold mine (2.35 million ounces (oz) at 6.4 grams per tonne (g/t) gold).
• The 40 new applications cover seven historic gold mines and workings with limited development and production prior to 1942; locally high grades reported in these mines indicate further investigation is warranted.

The Kanehana project

Located on the west side of the Ikutahara project, the Kanehana project covers favourable Miocene-age rhyolite and associated graben-fill volcanics and sediments. The Kanehana and Ikutahara projects, combined, cover a 25-kilometre strike zone along the eastern edge of the Monbetsu-Rubeshibe graben where the intersection of deep-seated graben margin and crosscutting faults provide the pathways for ascending gold-bearing hydrothermal fluids. The majority of mines and workings within the projects occur close to these structural intersections, with seven within Kanehana and 20 within Ikutahara. These mines include the region’s third largest gold producer, the Kitano-o mine, where in excess of 96,000 ounces of gold at a grade of 5.9 g/t were mined at Kitano-o prior to 1943; gold was won largely from shallow open pits in gold-bearing eluvium.

Included within the Kanehana project are the historic Muka, Jindai, Jomon, Hokushin, Kokka, Hyakuhan and Souryu gold mines and workings.

Muka mine

Small-scale exploitation at the Muka mine was conducted by Sumitomo Metal Mining Co. Ltd. between 1939 to 1942 with 12,473 tonnes of ore mined at an average grade of 7.09 g/t gold (Au) and 20.8 g/t silver (Ag). Two types of mineralization are described at Muka; a quartz vein event with more than 10 north-south-oriented and east-west-oriented veins, with dimensions between 0.2 to one metres wide and up to 100 m in strike length; and a network-breccia-like body formed around the veins with lateral dimensions of 80 by 40 metres and up to 130 metres vertical extent. It is reported that the highest grades occur at vein intersections with grades up to 500 g/t gold and 2,000 g/t silver; the breccia is also gold bearing and described as having a clay matrix hosting silicified fragments; surficial-elluvial gold mineralization is also reported. It is unclear based on the historic description what the chronology of mineralizing events are but the presence of superimposed gold bearing vein and breccia events is a strong vector for deeper exploration.

Jindai mine

Underground mining between 1938 to 1942 focused on narrow (0.5 to one m width) gold-bearing epithermal quartz veins and veinlets. Small-scale exploitation reported average grades of 11.8 g/t gold and 90.8 g/t silver in the rhyolite hosted veins.

Exploration completed after the second world war reports shallow tunneling on so-called residual elluvial workings and up to 50 shallow drill holes which intersected two major veins. Based on this work, it was reported that a full-scale exploration program was proposed for the deeper levels but no additional information is available on this work as it may not have been financed.

Jomon mine

Information on mining is limited but sampling of numerous quartz boulders in the small open-pit report grades averaging 25 g/t gold and 50 g/t silver. In 1933, an underground crosscut was excavated to locate the source of the high-grade boulders but results are unknown.

The Hokushin, Kokka, Hyakuhan and Souryu workings published on the 1:50,000 Japanese geological survey maps show these as gold-silver occurrences, but limited data on the workings has been sourced by the company to date.

The Kitami metallogenic province

The Kitami metallogenic province of northern Hokkaido is characterized by rhyolite geology associated with epithermal gold mineralization, localized along two major north-south-trending grabens. Numerous gold mines hosted within these two grabens were developed in the region up to 1943, including the Konomai mine, Japan’s third largest gold mine, which produced 2.35 million ounces of gold at an average grade of 6.4 g/t and 40 million ounces of silver prior to closure in 1974; the Kanehana project is located 25 kilometres south of the Konomai mine.

Shareholders will consider the following seven items at the meeting, which will not be followed by a corporate presentation or update:

• Financial statements;
• Number of directors;
• Election of directors;
• Reappointment of auditor;
• Reapproval of the stock option plan;
• Approval of restricted share unit plan;
• Approval of share issuance and new control person.

Management is nominating the following individuals for election as director: David Birkett, David Laing, Lawrence Lepard, Michael Mutchler, Rostislav Raykov, Antenor Silva and Rowland Uloth. Stephen Stow and Colin Sutherland will not be standing for re-election.

“I’d like to thank Mr. Stow and Mr. Sutherland for their service on the board,” said Mr. Uloth, Amarillo’s chairman. “I also look forward to welcoming Mr. Laing and Mr. Silva to the board. Their guidance will be invaluable as we move into the construction phase for the Posse gold project at our Mara Rosa property in Brazil.”

Mr. Laing and Mr. Silva bring extensive experience in building mines in Brazil to the board. Mr. Laing is a mining executive and engineer with 40 years of experience in mine operations and construction. He was most recently the chief operating officer of Equinox Gold, where he rebuilt the Aurizona project. Mr. Silva has over 50 years of mining experience. He was a co-founder of Yamana Gold, where he was the COO and president until he retired in 2009. He is based in Brazil.

Pursuant to the transaction, the company, among other things, cancelled the intercompany debt owed by the company’s subsidiary, Hudson Greenland AS, to the company and converted approximately $13.7-million (U.S.) of the existing debt of $43-million (U.S.) owed to the lenders pursuant to existing loan facilities into preferred shares of Hudson Greenland, thereby reducing the company’s interest payments substantially. Hudson Greenland also issued a convertible debenture in the amount of $10-million (U.S.) to the lenders to provide financing directly into Hudson Greenland to ensure sufficient working capital to get the White Mountain anorthosite mine back into operation. The debenture has a maturity date of five years from the date of issuance and will be convertible into preferred shares in the capital of Hudson Greenland. The debenture will not bear interest and will not confer voting rights on the lenders until conversion of the debenture, in accordance with its terms.

Hudson Greenland will use the proceeds of the debenture for working capital to put the White Mountain mine back into production and for general corporate purposes, as approved by Hudson Greenland’s board of directors. The company notes that the new structure and the capital injection do not dilute the number of shares in Hudson Resources. The company retains the right to buy back 100 per cent of the White Mountain mine for the next five years.

In accordance with the policies of the TSX Venture Exchange and as a condition to completing the transaction, the company obtained written shareholder approval of more than 50 per cent of the holders of the company’s common shares to complete the transaction.

The mineral licence and safety authority of Greenland has also approved the debt transaction as it relates to a change of control in the licence that holds the White Mountain mine.

Jim Cambon, president, commented: “We are pleased to have concluded the debt restructuring, which will allow operations at the White Mountain mine to move forward so we can ship product to customers. The team on site has recommenced operations, and we have already shipped a 26-tonne sample, which will be utilized for commercial trials for potential paints and coatings customers in North America and Europe.”

The company now owns approximately 31 per cent of the White Mountain anorthosite mine through its subsidiary, Hudson Greenland. This percentage may decrease to approximately 21 per cent should the debenture be converted into preferred shares of Hudson Greenland.

The company also holds the Sarfartoq rare earth element (REE) and niobium/tantalum exploration licence in Greenland. Activities have commenced on the high-grade niobium project, on which the company will provide an update shortly.

Mr. Tremblay, a seasoned mining professional with over 30 years of mine building and mine operations experience, is currently the chief operating officer with Dalradian Resources Inc. He previously held the role of general manager at Canadian Malartic, Canada’s largest open-pit gold mine. He was responsible for building the operations team, establishing operating procedures and standards, expanding stakeholder engagement, and subsequently managing an internal team of 700 employees. Mr. Tremblay was also the general manager at Iamgold Corp.’s Westwood project, where he participated in closure of the Doyon mine and construction of the Westwood project, completing the permitting, scoping study, feasibility study, surface construction and underground development at Westwood. Previous positions include underground superintendent at Cambior’s Mouska mine, along with underground captain/project and engineer/senior supervisor over a seven-year period at Cambior and Barrick’s Doyon mine, where he was involved in mine planning, construction, development and production. During his studies and afterwards he worked on various underground mines and projects, including Musselwhite. Mr. Tremblay graduated from Laval University with a bachelor of science in mining engineering and mineral processing.

Morris Prychidny, chairman of the board, commented: “Eric brings exceptional mine building and mine optimization experience to the board, with a background in mining engineering and mineral processing. His track record for optimizing operations and stakeholder outreach are valuable assets as we embark on preliminary engineering studies at the flagship Colomac gold project. On behalf of the board of directors, it is my pleasure to welcome Eric, who joins our diversified team which includes, capital markets, geology, mining engineering and M&A expertise.”

Dome Mountain, an all-year road-accessible project located a short 50-minute drive from Smithers, B.C., holds both an Environmental Management Act permit (EMA) and a mining permit providing for up to 75,000 tonnes production annually. In addition, the property has 15 known high-grade gold veins (see the company’s news release dated May 4, 2020) with nearly 90 per cent of the 11,290-hectare property yet to be explored.

“From the very beginning when we started to consider acquiring the Dome Mountain gold mine, our due diligence confirmed that there were two key opportunities with this project. Firstly, an opportunity to explore and define the 15 known high-grade gold-silver veins on the property; and secondly, the potential to advance the Dome Mountain mine by completing the required amendment work under the existing mining permits,” said Rana Vig, president and chief executive officer of Blue Lagoon Resources. “Having recently raised more than $7.5-million and managing the company to ensure that it’s debt free, I’m very pleased that the company is in a great position to pursue both of these opportunities in an unprecedented gold market,” he added.

Key amendments required and in progress

The following three key tasks (amendments) must be completed by the company as the next steps to meet permit conditions:

• Completion of the water treatment plant (WTP) and water chemistry trials;
• Completion of the ground control management plan;
• Update the reclamation and closure plan.

The company will evaluate a production decision once all permit requirements are in place. Any production decision in advance of obtaining a feasibility study of mineral reserves demonstrating economic and technical viability of the project is associated with increased uncertainty and risk of failure.

Agreement with leading water treatment technology company signed

An agreement with Muddy River Technologies of Delta, B.C., an innovative water technology company led by Dr. Rob Stephenson, one of the leading experts in the field, has been signed and the work required on completing the existing water treatment plant has begun. The full scope of work on the project will take approximately 16 weeks and includes the following:

• Site visit and collection and analysis of surface water (completed);
• Full-scale test equipment preparation;
• Full-scale test equipment installation and modification of existing water treatment plant;
• Full-scale testing and report; regulatory approval to proceed with permanent upgrade;
• Permanent upgrade equipment installation, training and routine WTP operations.

Agreement for ground control management plan signed

An agreement for the ground control management plan has been signed with Smithers, B.C., based Cobra Mining, a local firm familiar with the Dome Mountain project. The scope of work includes underground work consisting of bolting on 650 metres of drift from the portal to the face on the 1270 level and installation of a secondary emergency egress from the 1270 level to the 1370 level.

Cobra Mining has worked on the Dome Mountain gold mine in the past and is currently at the mine site with its team and work on the underground bolting has started.

The company expects this portion of the amendment work to be completed in the next 90 days or less.

Agreement with globally based ERM signed

The company has chosen and executed an agreement with ERM Consultants Canada, a part of the ERM Group Inc., a leading global provider with a footprint in 40 countries and territories, that specializes in environmental, health, safety, risk, social consulting and sustainability services. ERM will fulfill one of the key amendment requirements to update and complete the five-year reclamation and closure plan, and will update the following existing plans:

• Environmental monitoring and surveillance plan;
• Erosion and sediment control plan;
• Water management plan;
• Sediment handling plan;
• Sludge management plan;
• ML/ARD management plan;
• Bat management plan;
• Invasive plant management plan.

The company expects this portion of the amendment work to be completed in the next 20 weeks.

Continuing site activity at Dome Mountain

The Dome Mountain mine site is a decidedly active project at this time.

Activity on the property at this time is as follows:

• Planned 2,800 m drilling continues, with first results expected on or before Sept. 30, 2020.
• All heavy mining equipment has been removed from the underground tunnel, and is currently undergoing maintenance and inspection and being readied for use.
• Underground bolting work has started and is expected to be completed in the next 90 days.
• Electrical systems are undergoing inspection and, where necessary, upgrading is taking place on power generators, mine fans and panels.
• All fuel tanks have been inspected and filled.
• Water samples have been collected and sent to the appropriate lab for analysis and recording.
• Keeping with health and safety standards, an emergency transport vehicle has been purchased to be available at the mine site 24-7.
• All communication protocols have been reassessed and reviewed. Upgrading, where necessary, has been commissioned.

The scientific and technical data contained in this news release was approved by William Cronk, PGeo, a qualified person as defined in National Instrument 43-101 and a consultant to the company.

Nominee                Votes for   % votes for    Votes withheld   % votes withheld
                                                                          
Edward J. Munden     209,017,882       99.324%         1,421,747             0.676%       
Barry Hildred        208,984,082       99.308%         1,455,547             0.692%       
Andrew W. Dunn       209,000,482       99.316%         1,439,147             0.684%       
Ian Pritchard        209,014,882       99.323%         1,424,747             0.677%       
Paul Johnson         208,970,082       99.302%         1,469,547             0.698%       
Pamela Saxton        209,066,782       99.348%         1,372,847             0.652%

Final voting results on all matters voted on at the meeting will be filed on SEDAR.

Aquila thanks Kevin Drover, Jacques Perron and Joseph de la Plante for their service

“Due to other commitments, Kevin, Jacques and Joseph did not stand for re-election this year. On behalf of the board of directors of Aquila, I would like to express sincere appreciation to each of them for their many contributions to the company,” said Edward Munden, chair of the board of directors. “We wish them well in all of their personal and professional endeavours.”

Paul Johnson joins the board of directors

The company is also pleased to announce the election of Mr. Johnson to its board of directors. Mr. Johnson is a mining engineer with close to 40 years of experience in the mining industry. He joined Osisko Gold Royalties in August, 2017, as open-pit project evaluation manager until his retirement in January, 2020. Before joining Osisko, Mr. Johnson worked for Hewitt Equipment’s mining division as senior manager, strategic development. He also worked for Blackrock Metals on its iron ore/vanadium project as vice-president, mine development. He joined the Osisko Mining Corp. team as manager of mining and general manager of technical services. Mr. Johnson was part of the initial development team for its Canadian Malartic project. Previously, he occupied the mine engineering manager position for Iamgold following the acquisition of Cambior, where he held several positions for 16 years, all related to open-pit mine operation. He actively participated in the development of Rosebel Gold Mines as mine manager from feasibility study to construction and operation. Mr. Johnson began his career in the Quebec North Shore area, working for Quebec Cartier Mining and Quebec Iron and Titanium. He holds a bachelor of mining engineering from Laval University in Quebec.

Mr. Munden added: “We are delighted to welcome an individual with Paul’s technical experience and capabilities to our board. We look forward to benefiting from Paul’s insights as we advance Back Forty and our projects in Wisconsin through their next phase of development.”

1. Of the options, 1,375,000 will vest in the event that the trading price of the common shares is within the top quartile share price performance for the period from Sept. 1, 2020, to Aug. 31, 2021, as compared with a group of 15 peer companies which were identified in an executive compensation report commissioned and prepared for the company by an independent compensation consultant.
2. Of the options, 875,000 will vest upon the company defining a mineral resource of greater than 1.5 million ounces of gold in a technical report, prepared in accordance with National Instrument 43-101, on the company’s Mali exploration properties, above two grams per tonne, using standard cut-off grade with finding costs of $25 (U.S.) per ounce (oz) or less.
3. Of the options, 875,000 will vest upon the company defining a mineral resource of greater than two million ounces of gold in a technical report on the company’s Mali exploration properties, above two grams per tonne, using standard cut-off grade with finding costs of $25 (U.S.) per oz or less.
4. Of the options, 875,000 will vest upon the company defining a mineral resource of greater than 2.5 million ounces of gold in a technical report on the company’s Mali exploration properties, above two grams per tonne, using standard cut-off grade with finding costs of $25 (U.S.) per oz or less.

The common shares issuable upon exercise of the options are subject to a four-month hold period from the date of grant.

Number of shares:  682,500 flow-through common shares

Purchase price:  $2.60 per flow-through common share

Number of placees:  eight placees

Insider:  Mark Selby, 10,000 shares

“We welcome Mr. Letwin to Frontier’s Board of Directors. He is a grounded person and an appreciable addition with over 30 years of impressive operating and financial experience in the resource industry,” stated the Company Chair Reginald (Rick) Walker. “We are looking forward to working with Steve as he will significantly aid Frontier as we work toward building a fully integrated lithium mining and chemical company.”

Mr. Letwin commented “I am thrilled to be joining Frontier Lithium’s Board of Directors and recognize the Company’s quality lithium assets. I am enthused about its potential to supply critical materials required by clean tech and an emerging global energy transition. This is an exciting time.”

In February 2020, Mr. Letwin was appointed President and CEO of Mancal Corporation. Prior to Mancal, Mr. Letwin was President and CEO of IAMGOLD Corporation for ten years and was also a member of their Board of Directors. In 2018, Mr. Letwin, was recognized as the North American Mining Executive of the Year at the Mines & Money Outstanding Achievement Awards. Under his leadership, IAMGOLD and Sumitomo Metal Mining Co. was awarded the 2018 Viola R. Macmillan Award from the Prospectors and Developers Association of Canada (PDAC) for demonstrating leadership in the financing and management of one of Canada’s largest undeveloped gold projects. Prior to joining IAMGOLD, Mr. Letwin was previously with Enbridge Inc. in Houston, Texas, as Executive Vice President, Gas Transportation & International. He was responsible for natural gas operations including overall responsibility for Enbridge Energy Partners as Managing Director. Before Enbridge, he was President & CEO of TransCanada Energy and CFO of TransCanada Pipelines, Numac (Westcoast Energy), and Encor Energy.

Currently, Mr. Letwin is a Director of Hess Midstream (2018) and of Margaux Resources. Mr. Letwin holds an MBA from the University of Windsor, is a Certified General Accountant, a graduate of McMaster University (B.Sc., Honours), and a graduate of the Harvard Advanced Management Program. Throughout his career Mr. Letwin has made significant contributions to North American resource development and volunteerism whereby some of his achievements have been recognized: Alberta Centennial Award (2006), L’officer de l’ordre national – Burkina Faso (2011), Queen Elizabeth II Diamond Jubilee Medal (2016), and Order of the Yellow Star Medal – Suriname (2018).

The company engaged Clarus Securities Inc. and PowerOne Capital Markets Ltd. as financial advisers in connection with the offering. The company paid finders’ fees of $109,900 on a portion of the offering.

The proceeds of the private placement will be applied to the company’s Brewery Creek project. The securities issued under the private placement are subject to a statutory hold period expiring on Jan. 24, 2021.

Hole KM-20-16 was drilled 50 m downdip of hole KM-20-13, and intersected 38.4 m grading 2.9 per cent copper equivalent, including 12.5 m at a grade of 6.0 per cent CuEq, as well as 3.5 m of 10.2 per cent CuEq and 3.0 m of 11.3 per cent CuEq, from a depth of 385 m vertically below surface.

Hole KM-20-14 was drilled 50 m updip of hole KM-20-13 and intersected an interval of 39.9 m at a grade of 3.4 per cent CuEq, including 3.5 m grading 11.6 per cent CuEq, as well as 3.5 m of 6.6 per cent CuEq.

Branch hole KM-20-14A was drilled 40 m updip of hole KM-20-13 and 50 m north of trunk hole KM-20-14. This hole intersected 22.5 m at a grade of 2.4 per cent CuEq, including 4.1 m of 5.2 per cent CuEq and 0.8 m of 14.0 per cent CuEq.

Hole KM-20-15 was drilled 50 m updip of hole KM-20-10C (which intersected 6.8 m of 7.3 g/t AuEq) in a previously announced potential new gold-zinc-rich lens. This hole intersected 3.3 m of 11.3 per cent ZnEq.

Marc Pais, chief executive officer, commented: “Holes KM-20-14 and KM-20-14A have successfully intersected massive sulphide mineralization 50 m updip of the broad high-grade hinge zone identified in hole KM-20-13. These two holes also demonstrate the potential to identify wide intervals of high-grade mineralization in the hinge zone over at least 50 m of strike extent.

“Hole KM-20-16 successfully intersected massive sulphide mineralization 50 m downdip of the high-grade hinge zone identified in hole KM-20-13.

“Hole KM-20-15 is located in an area of newly defined gold-rich zinc mineralization, and was drilled 30 m south of KM-20-10C (6.8 m of 7.3 g/t AuEq) in order to test the strike extension of the potential gold-rich zinc lens. This hole intersected 3.3 m of 11.3 per cent ZnEq, located 50 m updip of the previously identified gold-rich zinc mineralization, and also by 30 m into a previously untested area to the south.

“Last month we completed a downhole electromagnetic testing program in order to better define new targets for extension of the hinges. These geophysical results were used in conjunction with today’s results to plan the phase 2 drill program detailed below.

“We believe there is excellent potential to expand the Kay mine deposit, which currently covers a strike length of only 320 m, on strike both to the north and south. Permitting is currently under way for two drill pads to test 500 m of strike to the north, and another pad to test 300 m of strike to the south. We are also permitting drill pads for the Central target, located 500 m west of Kay, and the Western target, located 1,000 m west of Kay. Arizona Metals has completed structural mapping, soil sampling, rock sampling and a helicopter VTEM survey over these targets, all of which show coincident anomalies. We are excited to start drilling these targets later this year, as we believe both have the potential to host one or more deposits similar to the Kay mine.”

Kay mine phase 2 drill program to commence Q4 2020

Permitting is currently under way to test the Kay mine deposit on strike by 500 m to the north as well as 300 m to the south. The company is also planning to test the previously undrilled Central and Western targets later this year. The total phase 2 drill program would consist of up to 11,000 m in 29 core drill holes. Arizona Metals has completed structural mapping, soil sampling, rock sampling and a helicopter VTEM survey over these targets, all of which show coincident anomalies.

COVID-19 monitoring and mitigation procedures

The company’s drill contractor, Boart Longyear, has instituted COVID-19 monitoring procedures for all drill crew members, including daily temperature and symptom checks. Arizona Metals will be provided with daily health tracking updates for the drill crews and has also instituted its own social distancing policies and provided a guidance manual for employees at site.

Summary of North zone drill results

Holes KM-20-01 through KM-20-06 all intersected massive sulphide mineralization. Hole KM-20-07 did not intersect significant mineralization and is believed to have passed between the North and South zones. Arizona Metals’ drilling tested a vertical extent of approximately 50 m in the North zone, to a vertical depth between 120 and 170 m. Historic underground exploration by Exxon Minerals reported mineralization at depths in the North zone of up to 300 m below recent drilling by Arizona Metals.

Highlights of the first eight holes in the North zone include:

• KM-20-03: 2.7 metres grading 5.4 per cent copper equivalent (including 0.9 m of 10.3 per cent CuEq), from a depth of 120 m;
• KM-20-03A: 4.6 m grading 6.9 per cent CuEq (including 0.8 m of 18.2 per cent CuEq) from a depth of 122 m;
• KM-20-05: 2.4 m grading 9.2 per cent CuEq (including 1.2 m of 13.9 per cent CuEq) from a depth of 150 m;
• KM-20-06: 13.5 m grading 2.9 per cent CuEq (including 4.9 m of 4.5 per cent CuEq) from a depth of 158 m;
• KM-20-11: 2.7 m grading 9.2 per cent CuEq from a depth of 490 m;
• KM-20-12: 4.9 m grading 4.8 per cent CuEq (including 1.9 m of 10.1 per cent CuEq) from a depth of 318 m;
• KM-20-12: 25.9 m grading 0.9 per cent CuEq from a depth of 326 m.

                  RESULTS OF INITIAL DRILL PROGRAM AT KAY MINE NORTH ZONE, YAVAPAI COUNTY, ARIZONA

Hole ID       From     To  Vertical depth below surface  Length (1)    CuEq (2)      Au      Ag      Cu     Pb    Zn
               (m)    (m)                           (m)         (m)         (%)   (g/t)   (g/t)     (%)    (%)   (%)

KM-20-01    275.82   81.5                           156         5.6        1.70    0.48    11.6    0.57   0.18  1.20
including   275.82   76.5                                       0.6        4.23    1.22    32.0    0.50   0.73  5.04
including   279.82   81.5                                       1.6        3.10    0.98    22.6    1.21   0.23  1.49
KM-20-02    297.83   00.8                           172         3.0        1.01    0.20     1.4    0.77   0.01  0.04
KM-20-03    256.32   59.1                           120         2.7        5.41    1.01    69.6    3.40   0.09  0.65
including   256.32   57.3                                       0.9       10.32    1.79    56.0    7.42   0.17  1.11
KM-20-03    292.22   92.6                           152         0.5        2.72    0.19     2.0    2.43   0.04  0.15
KM-20-03    295.82   96.3                           154         0.5        2.61    0.80     6.0    1.35   0.06  0.91
KM-20-03A   252.42   56.9                           122         4.6        6.85    2.55    35.6    3.70   0.03  0.27
including   252.42   53.1                                       0.8       18.19    6.34   164.0    9.74   0.11  0.40
KM-20-05    266.62   69.0                           150         2.4        9.19    1.94    43.3    6.47   0.14  0.57
including   266.62   67.8                                       1.2       13.89    2.21    50.0   10.60   0.26  1.05
KM-20-06    267.92   81.5                           158        13.5        2.92    0.85    45.6    1.02   0.30  1.23
including   267.92   68.4                                       0.5        6.73    2.20    31.0    1.54   0.81  6.10
including   276.62   81.5                                       4.9        4.54    0.87    92.1    1.86   0.42  1.96
including   280.02   81.0                                       1.1        7.82    1.03   340.0    3.22   0.04  0.64
KM-20-11    554.15   56.9                           490         2.7        9.23    2.83    70.0    4.14   0.28  3.56
KM-20-12    371.93   76.7                           318         4.9        4.76    0.37    12.4    3.99   0.07  0.62
including   371.93   73.7                                       1.9       10.10    0.67    28.0    8.49   0.16  1.53
KM-20-12    379.54   05.4                           326        25.9        0.87    0.08     2.3    0.73   0.01  0.08

(1) True widths of the reported mineral intervals have not been determined; additional drilling is required. 
(2) Assumptions used in U.S. dollars for the copper equivalent calculation were metal prices of $2.28 per pound 
copper, $1,650 per ounce gold, $15 per ounce silver, 86 cents per pound zinc and 77 cents per pound lead, and 
recovery is assumed to be 100 per cent as no metallurgical test data are available. The following equation was 
used to calculate copper equivalence: CuEq equals copper (per cent) plus (gold (g/t) times 1.06) plus (silver 
(g/t) times 0.0096) plus (zinc (per cent) times 0.3772) plus (lead (per cent) times 0.3377).

Summary of South zone drill results

Below are highlights of drilling to date in the South zone:

• KM-20-09: 6.1 m grading 7.8 g/t AuEq, including 4.4 m grading 9.3 g/t AuEq, and also including 1.1 m grading 16.0 g/t AuEq, from a depth of 575 m;
• KM-20-10A: 10.7 m grading 4.4 per cent CuEq, including 1.5 m grading 8.6 per cent CuEq, 3.1 m grading 4.2 per cent CuEq, and 1.4 m grading 12.2 per cent CuEq from a depth of 442 m;
• KM-20-10B: 27.6 m grading 2.9 per cent CuEq, including 6.6 m at 4.8 per cent CuEq, 4.4 m grading 5.3 per cent CuEq, and 3.5 m grading 6.7 per cent CuEq from a depth of 423 m;
• KM-20-10C: 6.8 m grading 7.3 g/t AuEq, including 4.3 m grading 10.1 g/t AuEq, and 0.8 m grading 27.6 g/t AuEq from a depth of 422 m;
• KM-20-13: 43.1 m grading 3.9 per cent CuEq, including 15.2 m grading 6.7 per cent CuEq and 4.4 m grading 10.3 per cent CuEq from a depth 341 m;
• KM-20-14: 39.9 m grading 3.4 per cent CuEq, including 3.5 m grading 11.6 per cent CuEq and 3.5 m grading 6.6 per cent CuEq, from a depth of 314 m;
• KM-20-14A: 22.5 m grading 2.4 per cent CuEq, including 0.8 m of 14.0 per cent CuEq and 4.1 m of 5.2 per cent CuEq, from a depth of 312 m. This hole also intersected 4.4 m grading 5.1 per cent CuEq, including 1.7 m grading 10.4 per cent CuEq, from a depth of 303 m;
• KM-20-15: 3.3 m grading 11.3 per cent ZnEq, from a depth of 402 m;
• KM-20-16: 38.4 m grading 2.9 per cent CuEq, including 12.5 m grading 6.0 per cent CuEq.

               RESULTS OF INITIAL DRILL PROGRAM AT KAY MINE SOUTH ZONE, YAVAPAI COUNTY, ARIZONA

                          Vertical depth 
Hole ID      From     To   below surface  Length (1)  CuEq (2)   AuEq (3) ZnEq (4)     Au     Ag    Cu    Pb     Zn
              (m)    (m)             (m)         (m)       (%)      (g/t)      (%)  (g/t)  (g/t)   (%)   (%)    (%)

KM-20-09    588.1  588.4             550         0.3                 3.52            1.74   15.0  0.91  0.40   1.86
KM-20-09    613.4  614.1             568         0.7                 3.15            1.81   10.0  0.90  0.08   1.04
KM-20-09    614.6  614.9             569         0.3                 3.41            0.36   19.0  2.64  0.10   0.98
KM-20-09    632.8  638.9             578         6.1                 7.80            4.18   41.7  0.12  0.82   8.02
including   633.6  637.9                         4.4                 9.29            5.46   33.1  0.15  0.50   9.06
including   636.9  637.9                         1.1                16.03            9.77   68.0  0.17  0.78  14.65
KM-20-10    563.6  568.5             490         4.9      6.24                       2.16   24.9  2.39  0.31   3.27
including   563.6  566.6                         3.0      7.78                       2.42   28.2  3.66  0.32   3.16
including   567.2  568.5                         1.2      5.33                       2.52   28.4  0.33  0.43   5.10
KM-20-10    574.2  574.9             498         0.6     10.09                       4.33  113.0  0.12  0.16  11.30
KM-20-10    577.7  579.3             500         1.6      3.09                       0.70   45.9  0.03  0.68   4.38
KM-20-10    582.3  583.1             502         0.8      2.42                       0.42   51.0  0.03  1.07   2.90
KM-20-10A   521.2  522.5             437         1.3      7.07                       1.27   51.1  2.13  0.91   7.46
KM-20-10A   527.9  538.6             442        10.7      4.40                       1.66   27.2  1.32  0.30   2.58
including   527.9  529.4                         1.5      8.59                       0.92   30.2  6.69  0.07   1.62
including   532.2  535.3                         3.1      4.17                       1.75   34.3  0.72  0.42   2.99
including   537.2  538.6                         1.4     12.24                       7.29   79.2  0.16  0.60   9.06
KM-20-10B   503.0  530.7             423        27.6      2.87                       0.97   21.3  0.87  0.32   1.76
including   503.0  509.6                         6.6      4.79                       1.55   29.8  1.78  0.37   2.55
including   513.9  518.3                         4.4      5.29                       1.89   47.4  1.08  0.68   4.05
including   527.2  530.7                         3.5      6.68                       2.32   52.9  1.91  0.99   3.93
KM-20-10C   523.9  530.7             422         6.8                 7.25            3.32  102.0  0.58  1.15   5.84
including   523.9  528.2                         4.3                10.05            4.89  125.2  0.88  1.45   7.61
including   525.6  526.4                         0.8                27.62           16.65  214.0  0.52  2.76  21.40
KM-20-13    443.6  486.8             341        43.1      3.94                       1.26   23.3  1.68  0.24   1.67
including   444.4  459.6                        15.2      6.71                       1.80   38.5  3.42  0.39   2.36
including   444.4  447.1                         2.7     10.14                       3.74   55.0  1.02  1.88  10.64
including   451.4  455.8                         4.4     10.34                       1.18   65.3  8.41  0.02   0.16
KM-20-14    421.7  461.6             314        39.9      3.40                       1.00   18.4  1.47  0.19   1.67
including   426.3  429.8                         3.5     11.58                       1.28   30.0  9.56  0.07   0.95
including   457.2  460.7                         3.5      6.61                       2.58   26.3  0.36  0.38   8.33
KM-20-14A   404.6  409.0             303         4.4      5.07                       1.48   79.2  1.67  0.41   2.50
including   404.6  406.4                         1.7     10.41                       2.46  173.6  4.08  0.53   5.02
KM-20-14A   421.0  443.5             312        22.5      2.41                       0.72   15.9  0.86  0.18   1.51
including   421.0  421.8                         0.8     14.01                       2.91   45.0  9.81  0.19   1.69
including   421.0  425.0                         4.1      5.17                       1.14   21.4  3.23  0.14   1.30
KM-20-15    506.8  510.1             402         3.3                        11.25%   0.33 192.03  0.05  1.75   3.73
KM-20-16    480.4  518.8             385        38.4      2.87                       0.81   24.3  0.85  0.25   2.24
including   480.4  492.9                        12.5      5.95                       1.98     49  1.63  0.50   4.23
including   480.4  483.4                         3.0     11.29                       4.74   77.9  2.40  0.91   7.49
including   489.8  492.9                         3.0     10.22                       2.59  100.7  3.61  0.92   6.90

(1) True widths of the reported mineral intervals have not been determined; additional drilling is required. 
(2) Assumptions used in U.S. dollars for the copper equivalent calculation were metal prices of $2.28 per pound 
copper, $1,650 per ounce gold, $15 per ounce silver, 86 cents per pound zinc and 77 cents per pound lead, and 
recovery is assumed to be 100 per cent as no metallurgical test data are available. The following equation was 
used to calculate copper equivalence: CuEq equals copper (per cent) plus (gold (g/t) times 1.06) plus (silver 
(g/t) times 0.0096) plus (zinc (per cent) times 0.3772) plus (lead (per cent) times 0.3377).
(3) Assumptions used in U.S. dollars for the gold equivalent calculations were metal prices of $2.28/lb copper, 
$1,650/oz gold, $15/oz silver, 86 cents/lb zinc and 77 cents/lb Pb, and recovery is assumed to be 100 per cent 
as no metallurgical test data are available. The following equation was used to calculate gold equivalence: 
AuEq equals gold (g/t) plus (copper (per cent) times 94.72) plus (silver (g/t) times 0.009) plus (zinc (per 
cent) times 35.73) plus (lead (per cent) times 31.99).       
(4) Assumptions used in U.S. dollars for the gold equivalent calculations were metal prices of $2.28/lb copper, 
$1,650/oz gold, $15/oz silver, 86 cents/lb zinc and 77 cents/lb Pb, and recovery is assumed to be 100 per cent 
as no metallurgical test data are available. The following equation was used to calculate Zn equivalence: 
ZnEq equals zinc (per cent) plus (copper (per cent) times 2.65) plus (silver (g/t) times 0.0003) plus (lead 
(per cent) times 1.12).

Sugarloaf Peak project update

On July 6, 2020, Arizona Metals commenced a phase 1 drill program at its Sugarloaf Peak project in La Paz county, Arizona. Drill core from this program will be sent to Kappes Cassiday and Associates of Reno, Nev., to undergo bottle roll and column testing of gold recoveries by leaching of oxide material. Samples will also be sent to ALS Minerals in Reno, Nev., for gold assay, multielement testing and spectral analysis to determine trace element levels and hydrothermal alteration variations.

The phase 1 program, comprising four drill holes, has been completed. The program was originally planned to total 1,300 m but was increased to 1,700 m. Two cored drill holes were extended to depths of approximately 550 m each to test a large geophysical target that the company believes has the potential to host a higher-grade feeder zone, that could be the source of the disseminated oxide mineralization identified by previous operators. The holes are currently at the lab with assays pending.

Engagement of Equity Guru Media Inc.

Arizona Metals is also pleased to announce that it has engaged Equity Guru Media Inc. to provide media relations services pursuant to a contracting services agreement. The services agreement is dated effective Sept. 22, 2020, and will be effective for a six-month term. Services provided by the contractor will relate to continuing communications and promotional support for the company’s relations with the professional investment community. Pursuant to the services agreement, the company will pay to the contractor a fee of $30,000 (plus applicable taxes) for a six-month term. The contractor is an arm’s-length party to the company and, to the company’s knowledge does not currently own any securities of the company as at the date hereof but may purchase securities in the company from time to time for investment purposes. The services agreement is subject to acceptance by the TSX Venture Exchange.

The sensor label will demonstrate cost-effective, scalable printed and flexible electronics and displays produced by Ynvisible. The work is funded by the European Union Horizon 2020 financial instrument, under the Smartees 2 project.

There is a substantial market and public interest in developing sterilization technologies for public spaces that are chemical-free and less hazardous for the environment. According to a new report by Reports and Data, the global disinfectant products market is forecasted to reach $30.11-billion (U.S.) by 2027. UVC technology is among the most interesting of the technologies poised to challenge the use of chemical-based disinfectants. Several companies are investing in automated sterilization technologies to guarantee safe and sterile surfaces. The solutions showcased by Agiler and Ynvisible will help reassure commuters, parents and individuals that surfaces in public spaces and transport are sanitized and safe.

“With the COVID-19 pandemic, you have seen some crazy things like vehicles spraying or fuming chemical sterilization agents in public spaces, even outdoors, partly only to make people feel safe. When Agiler approached us with their idea, we felt that there was a natural match with our visual indicator technology together with the design and manufacturing services we provide,” said Samuli Stromberg, head of business development, smart labels, at Ynvisible. “It is great to partner up with such an innovative company with something that addresses some of the great challenges of our time.”

“We hope that through the successful implementation of this project, the technologies that both companies have been working on for years can serve the greater good. It is our great privilege to work together with Ynvisible to create a solution with such a huge global impact. The innovative electrochromic display in the smart sensor label allows the public to see that their living and working spaces are safe. The wireless communication allows the labels to interact with other smart technologies such as sterilization robots. We are also inviting interested partners and customers to collaborate with us,” said Jarkko Miettinen, co-founder and chief executive officer of Agiler.

The duration of the Smartees-funded demonstrator project is a of maximum nine months. By then the companies expect to have demonstrated a first of its kind solution that can be taken into mass production. Products are introduced to the market in various formats as labels or integrated, flexible, functional elements on several different surfaces or products. Agiler expects to provide this solution first in the health care and retail markets and is open for discussions with interested parties for partnership.

Ynvisible sees readily scalable visible indicators of surface health as a natural product application of the Ynvisible display technology and printed electronics capability, along with further expansion into point-of-care health and security applications.

VANCOUVER, BC and TORONTO, ON / ACCESSWIRE / September 24, 2020 / Auryn Resources Inc. (TSX:AUG)(NYSE American:AUG) (“Auryn“or the”Company“) and Eastmain Resources Inc. (TSX:ER) (“Eastmain“) are pleased to jointly announce that Auryn has today completed the equity financing announced August 31, 2020 by raising C$23 million through the issuance of 7,750,000 subscription receipts (the “Subscription Receipts“). The bought-deal financing was co-led by Canaccord Genuity Corp. and Beacon Securities Limited. The Subscription Receipts will be exchanged for common shares of Fury Gold (as defined below) concurrently with the release of the escrowed proceeds from the sale of the Subscription Receipts as the final step of the previously announced plan of arrangement transactions pursuant to which Auryn is reorganized and acquires Eastmain (the “Transaction“). Under the Transaction, Auryn will acquire Eastmain after spinning out Auryn’s Peruvian assets into two new companies and distributing the shares of those new companies to Auryn shareholders. The Transaction will also create Fury Gold Mines Limited (“Fury Gold“), a leading developer of Canadian gold projects. The sale of the Subscription Receipts fulfills a principal closing condition for the Transaction.

A Message from Ivan Bebek, Executive Chairman & Director of Auryn:

“This financing is an integral part of the Fury business plan of building a Canadian gold mining company. The financing fulfills one of the key closing conditions of the Transaction with Eastmain, which we expect to close on October 9, 2020.

“The fully funded 50,000-meter drill program at and around the Eau Claire deposit in Quebec will be a significant catalyst for investors. We appreciate the continued support of the Auryn shareholders who participated and welcome the new future Fury shareholders.”

A Message from Blair Schultz, Interim President & CEO of Eastmain:

“This financing puts Fury Gold in a strong position to deliver on its plans to expand the Eau Claire deposit and explore several of the untested targets in Quebec as a first step in increasing potential value for shareholders.”

Of the Subscription Receipts sold, 5,000,000 were flow-through at a price of C$3.50 each and will be exchanged for Fury Gold common shares designated as “flow-through shares”, while 2,750,000 Subscription Receipts were sold as non-flow-through and will be exchanged for Fury Gold common shares. Pricing of the Subscription Receipts is reflective of Auryn’s Peruvian assets being spun-out to Auryn shareholders prior to the Subscription Receipts being exchanged for Fury Gold shares. The Fury Gold “flow-though shares” will be identical to its ordinary common shares, except that they will provide certain Canadian income tax deductions to the buyers related to the use of the proceeds for mineral exploration in Quebec.

Further details regarding the Transaction, including its principal completion conditions can be found in each of the Company’s and Eastmain’s management information circulars dated September 3, 2020 and filed under each of their profiles at www.sedar.com.

These securities will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. These securities have been sold and this announcement appears as a matter of record only.

Jeff Hussey, president and chief operating officer, commented: “Concurrent to the restart of drilling announced last month, the forthcoming submission of the EA will mark an important milestone towards advancing the Project to a “shovel ready” stage by late 2023. Supporting the environmental work, key recommendations from the recent PEA are being initiated in preparation for a Feasibility Study. We are committed to rapidly advancing the Pine Point Project to be well positioned to take advantage of a forecasted deficit in the zinc market supply. Furthermore, we are looking forward to releasing drill results in the coming weeks.”

A Message from Ivan Bebek, Executive Chairman & Director of Auryn:

“This financing is an integral part of the Fury business plan of building a Canadian gold mining company. The financing fulfills one of the key closing conditions of the Transaction with Eastmain, which we expect to close on October 9, 2020.

“The fully funded 50,000-meter drill program at and around the Eau Claire deposit in Quebec will be a significant catalyst for investors. We appreciate the continued support of the Auryn shareholders who participated and welcome the new future Fury shareholders.”

A Message from Blair Schultz, Interim President & CEO of Eastmain:

“This financing puts Fury Gold in a strong position to deliver on its plans to expand the Eau Claire deposit and explore several of the untested targets in Quebec as a first step in increasing potential value for shareholders.”

Of the Subscription Receipts sold, 5,000,000 were flow-through at a price of C$3.50 each and will be exchanged for Fury Gold common shares designated as “flow-through shares”, while 2,750,000 Subscription Receipts were sold as non-flow-through and will be exchanged for Fury Gold common shares. Pricing of the Subscription Receipts is reflective of Auryn’s Peruvian assets being spun-out to Auryn shareholders prior to the Subscription Receipts being exchanged for Fury Gold shares. The Fury Gold “flow-though shares” will be identical to its ordinary common shares, except that they will provide certain Canadian income tax deductions to the buyers related to the use of the proceeds for mineral exploration in Quebec.

Further details regarding the Transaction, including its principal completion conditions can be found in each of the Company’s and Eastmain’s management information circulars dated September 3, 2020 and filed under each of their profiles at http://www.sedar.com.

These securities will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. These securities have been sold and this announcement appears as a matter of record only.

Commencement of exploration follows the closing of the transaction with Electrum Global Holdings L.P. (“Electrum”) to acquire Electrum’s 60% indirect working interest in the CLM Project (thus increasing Southern Silver to a 100% interest) and the closing of previously announced private placements with gross proceeds of Cdn$14.456 million (see NR-12-20; September 16, 2020).

The exploration/drill program includes up to 10,000 metres of core drilling in 20 to 25 holes which will focus on the development of mineral resources on the east side of the Cerro through step-out drilling from previously identified high-grade, strongly silver-enriched mineralization in the Mina La Bocona and South Skarn target areas (see Figure 1 and Table 1). Some meterage will also be used to further extend mineralization at the Las Victorias target.Figure 1: Plan Map of the Area of the Cerro showing the distribution of the CLM deposits and the location for new drill targeting, at the Mina La Bocona, South Skarn and Las Victorias targets. To view an enhanced version of Figure 1, please visit:https://orders.newsfilecorp.com/files/5344/64510_1d4e6d16d4fa0868_002full.jpg

Drilling will test an approximate 800 metre strike length of the Skarn Front mineralized zone on the east side of the Cerro to depths of up to 650 metres, as well as a high-grade hanging wall zone in the Mina La Bocona target area. Between 2011 to 2015, Southern Silver drilled 15 core holes on the east side of the Cerro with select assay results summarized below. New drill targeting will step out from this known mineralization and aims to increase the current mineral resource estimate on the property by approximately 30%. The CLM Project remains one of the larger undeveloped silver-lead-zinc projects in the world and is fully funded and permitted.

Analyzed by FA/AA for gold and ICP-AES by ALS Laboratories, North Vancouver, BC. Silver (>100ppm), copper, lead and zinc (>1%) overlimits assayed by ore grade ICP analysis, High silver overlimits (>1500g/t Ag) and gold overlimits (>10g/t Au) re-assayed with FA-Grav. High Pb (>20%) and Zn (>30%) overlimits assayed by titration. AgEq and ZnEq were calculated using average metal prices of: US$16.6/oz silver, US$1275/oz gold, US$2.8/lbs copper and US$1.00/lbs lead and US$1.25/lbs zinc. AgEq and ZnEq calculations did not account for relative metallurgical recoveries of the metals. Ore-grade composites calculated using a 80g/t AgEq cut-off and <20% internal dilution, except where noted; anomalous intercepts calculated using a 10g/t AgEq cut-off.

Cerro Las Minitas Project

The Cerro Las Minitas project is an advanced exploration stage polymetallic Ag-Pb-Zn-Cu Skarn/CRD project located in southern Durango, Mexico.

The Cerro Las Minitas project as of May 9th, 2019 contains a Mineral Resource Estimate, at a 175g/t AgEq cut-off, of(1)Indicated – 134Moz AgEq: 37.5Moz Ag, 40Mlb Cu, 303Mlb Pb and 897Mlb ZnInferred – 138Moz AgEq: 45.7Moz Ag, 76Mlb Cu, 253Mlb Pb and 796Mlb Zn

A total of 133 drill holes for 59,000 metres have now been completed on the CLM Project with exploration expenditures of approximately US$25.5 million equating to exploration discovery costs of approximately C$0.09 per AgEq ounce to the end of 2019.

Stock Option Grant

Southern Silver also reports that it has granted 9,500,000 incentive stock options to directors, officers and consultants. The options are exercisable at a price of $0.51 per common share for a period of five years and are subject to the policies of the TSX Venture Exchange.

About Southern Silver Exploration Corp.

Southern Silver Exploration Corp. is an exploration and development company with a focus on the discovery of world-class mineral deposits. Our specific emphasis is the 100% owned Cerro Las Minitas silver-lead-zinc project located in the heart of Mexico’s Faja de Plata, which hosts multiple world-class mineral deposits such as Penasquito, San Martin, Naica and Pitarrilla. We have assembled a team of highly experienced technical, operational and transactional professionals to support our exploration efforts in developing the Cerro Las Minitas project into a premier, high-grade, silver-lead-zinc mine. The Company engages in the acquisition, exploration and development either directly or through joint-venture relationships in mineral properties in major jurisdictions. Our property portfolio also includes the Oro porphyry copper-gold project located in southern New Mexico, USA. The 2019 Cerro Las Minitas Resource Estimate was prepared following CIM definitions for classification of Mineral Resources. Resources are constrained using mainly geological constraints and approximate 10g/t AgEq grade shells. The block models are comprised of an array of blocks measuring 10m x 2m x 10m, with grades for Au, Ag, Cu, Pb, Zn values interpolated using ID3 weighting. Silver and zinc equivalent values were subsequently calculated from the interpolated block grades. The model is identified at a 175g/t AgEq cut-off, with an indicated resource of 11,102,000 tonnes averaging 105g/t Ag, 0.10g/t Au, 1.2% Pb, 3.7% Zn and 0.16% Cu and an inferred resource of 12,844,000 tonnes averaging 111g/t Ag, 0.07g/t Au, 0.9% Pb, 2.8% Zn and 0.27% Cu. AgEq cut-off values were calculated using average long-term prices of $16.6/oz. silver, $1,275/oz. gold, $2.75/lb. copper, $1.0/lb. lead and $1.25/lb. zinc. Metal recoveries for the Blind, El Sol and Las Victorias deposits of 91% silver, 25% gold, 92% lead, 82% zinc and 80% copper and for the Skarn Front deposit of 85% silver, 18% gold, 89% lead, 92% zinc and 84% copper were used to define the cut-off grades. Base case cut-off grade assumed $75/tonne operating, smelting and sustaining costs. All prices are stated in $USD. Silver Equivalents were calculated from the interpolated block values using relative recoveries and prices between the component metals and silver to determine a final AgEq value. The same methodology was used to calculate the ZnEq value. Mineral resources are not mineral reserves until they have demonstrated economic viability. Mineral resource estimates do not account for a resource’s mineability, selectivity, mining loss, or dilution. The current Resource Estimate was prepared by Garth Kirkham, P.Geo. of Kirkham Geosciences Ltd. who is the Independent Qualified Person responsible for presentation and review of the Mineral Resource Estimate. All figures are rounded to reflect the relative accuracy of the estimate and therefore numbers may not appear to add precisely.

Robert Macdonald, MSc. P.Geo, is a Qualified Person as defined by National Instrument 43-101 and supervised directly the collection of the data from the CLM Project that is reported in this disclosure and is responsible for the presentation of the technical information in this disclosure.

“We are encouraged by these ongoing excellent results from our infill drilling program. These most recent results continue to expand and better define the higher-grade mineralization in the western end of the Main Zone which remains open to the west {හ –} the westernmost hole yielded a core length of 188 m of 0.34% nickel. In addition, new drill results delivered another strong intersection from the PGM Zone,” said Mark Selby, Chair and CEO of Canada Nickel.

“We anticipate receiving assays from the final three infill holes from the eastern end of the Main Zone within the next week and expect to deliver the updated resource during the first half of October. We also expect assays from the three follow-up holes on the previously reported PGM results from hole CR20-32 (which yielded three separate intersections including 2.6 g/t PGM over 7.5 metres) during the next few weeks. Additionally, we are expecting a steady series of assay results from drilling now underway on prospective geophysical nickel targets on the several kilometres of the Crawford structure. Canada Nickel looks forward to continue delivering regular and notable updates through the balance of 2020 and we remain on track to deliver a Preliminary Economic Assessment by year-end.”

The Crawford Nickel-Cobalt Sulphide Project is located in the heart of the prolific Timmins-Cochrane mining camp in Ontario, Canada, and is adjacent to well-established, major infrastructure associated with over 100 years of regional mining activity.

Main Zone Infill Results

Infill drilling on the Main Zone continued to focus on more clearly defining and upgrading the Higher-Grade Core resource, which was previously defined as part of the resource estimate and dips steeply within the ultramafic unit and having a previously reported true thickness that varies from 40 m to 160 m. Assays from the remaining six in-fill holes will be released over the next several weeks. See Table 1 and Figure 1 and 2 for results.

Table 1 {ᘬ –} Main Zone Nickel --
 Drilling Results, Crawford Nickel-Cobalt Sulphide Project, Ontario
   
  
  
   DDH ID  From  To  LengthEstimated  True  Width Ni  Co   Pd   Pt   S   Fe 
          (m)  (m)  (m)           (m)          (%)  (%) (g/t)(g/t)(%) (%) 
                                                                          
 CR20-51 49.6 405.0355.4           na          0.280.0130.0230.0130.146.70
including69.0 256.5187.5           na          0.340.0130.0370.0130.236.22
including73.5 174.0100.5           na          0.370.0150.0320.0110.395.43
including79.5 142.5 63.0           na          0.390.0160.0380.0140.514.92
                                                                          
 CR20-54 44.4 402.0357.6           na          0.290.0110.0190.0120.086.55
including71.5 317.5246.0           na          0.320.0100.0250.0140.116.21
including74.5 206.5132.0           na          0.340.0080.0160.0070.175.32
including121.0148.0 27.0           na          0.400.0100.0100.0050.234.64
                                                                          
 CR20-59 42.6 390.0347.4         223.3         0.260.0130.0150.0080.116.08
including42.6 163.5120.9          77.7         0.340.0150.0250.0080.285.34
including42.6 99.0  56.4          36.3         0.380.0150.0320.0100.294.73


  

These holes were drilled at steep angles of -80 degrees almost entirely within the higher-grade core to better determine grade, or -50 degrees to help better define northern or southern boundaries of the higher grade core. See Table 3. The estimated true width of this zone has been determined from previous drilling to vary from 40 to 160 m depending on location of the section.

0.35% nickel) Mineralization, Crawford Nickel-Cobalt Sulphide Project, Ontario. (CNW Group/Canada Nickel Company Inc.)” alt=”Figure 2 – Plan View of Main Zone Nickel Resource including Newly Defined Higher Grade (>0.35% nickel) Mineralization, Crawford Nickel-Cobalt Sulphide Project, Ontario. (CNW Group/Canada Nickel Company Inc.)”>

PGM Zone

Hole CR20-59 intersected 1.5 g/t palladium + platinum (0.6 g/t Pd, 0.9 g/t Pt) over 9 metres (true width 5.9m), from 460.5 metres downhole at the northern contact between the peridotite and pyroxenite layer immediately to the north and parallel to the Main Zone nickel-cobalt-palladium resource. See Table 2 and Figure 3 for results.

Table 2 {┿ –} PGM Zone --
 Drilling Results, Crawford Nickel-Cobalt Sulphide Project, Ontario
   
  
  
   DDH ID  From  To  LengthEstimated  True  WidthPd+Pt Pd   Pt   Ni  Co  
          (m)  (m)  (m)           (m)          (g/t)(g/t)(g/t)(%)  (%) 
                                                                       
 CR20-59 460.5469.5 9.0           5.9           1.5  0.6  0.9 0.040.010
including465.0468.0 3.0           2.0           1.8  0.6  1.2 0.050.013


  

Next Steps

All drill results to date will be incorporated into an updated resource now expected early next month. Drilling has begun on several other prospective geophysical targets on the several kilometres of the Crawford structure, including those which were previous untested on the west side of the highway.

Table 3 {ⱈ –} Drill Hole Orientation, Crawford Nickel-Cobalt Sulphide Project, Ontario DDH ID Easting Northing DipAzimuthLength (mE) (mN) (degree) (degree) (m) CR20-51472755.55408985.4-80 215.4 405 CR20-54472882.95408963.3-80 215.0 402 CR20-59472937.35408865.9-50 34.8 483

Assays, Quality Assurance/Quality Control and Drilling and Assay Procedures

William E. MacRae, MSc, P.Geo., a “qualified person” as defined by NI 43-101, is responsible for the on-going drilling and sampling program, including quality assurance (QA) and quality control (QC). The core is collected from the drill in sealed core trays and transported to the core logging facility. The core is marked and sampled at 1.5 metre lengths and cut with a diamond blade saw. Samples are bagged with QA/QC samples inserted in batches of 35 samples per lot. Samples are transported in secure bags directly from the Canada Nickel core shack to Actlabs Timmins, an ISO/IEC 17025 accredited lab. Analysis for precious metals (gold, platinum and palladium) are completed by Fire Assay while analysis for nickel, cobalt, sulphur and 17 other elements are performed using a peroxide fusion and ICP-OES analysis. Certified standards and blanks are inserted at a rate of one QA/QC sample per 32 core samples making a batch of 35 samples that are submitted for analysis.