The newly discovered Forget Me Not zone is the third gold zone discovered since the initial high-grade gold discovery at South Zone in late 2018 (SN18-14: 17.7 metres of 24.5 grams per tonne gold) and the recent discovery at Franz Zone, which reported 7.78 metres of 14.84 grams per tonne gold in September of this year.

Recent highlights:

• SN20-139 (FMN)
  • At 271.15 metres to 291 metres: 19.85 metres of 2.62 g/t Au and 139.75 g/t silver;
  • including: 10.44 m of 3.67 g/t Au and 209.04 g/t Ag;
  • including: 5.5 m of 4.58 g/t Au and 267.35 g/t Ag.
  • Third-highest silver intercept drilled to date on this property (0.58 m of 581 g/t silver).
• SN20-112 (Franz)
  • At 68.4 metres to 77.37 metres: 8.97 m of 2.38 g/t Au and 63.59 g/t Ag;
  • including: 5.72 m of 3.46 g/t Au and 87.38 g/t Ag.
• SN20-134 (Franz)
  • At 80.26 metres to 98 metres: 17.74 m of 2.85 g/t Au and 56.24 g/t Ag;
  • including: nine metres of 4.15 g/t Au and 89.26 g/t Ag;
  • also including: 2.5 m of 9.29 g/t Au and 172.38 g/t Ag.
• Westhaven completed 43,166 metres of diamond drilling in 2020. Assays are pending for 24 drill holes completed in the FMN and Franz zones.

Gareth Thomas, president and chief executive officer of Westhaven Gold, adds: “With the discovery of high-grade gold and silver at the FMN zone there are now four separate zones of high-grade mineralization at Shovelnose. Vein zone one now spans approximately four kilometres, is open along strike, and appears to be strengthening as drilling continues northwest from the FMN zone towards the Franz zone. With the discovery of three new gold zones in 2020, and several new zones to test in early 2021, we continue to increase the size and scale of mineralization on this largely underexplored property.”

Peter Fischl, exploration manager for Westhaven Gold, stated: “Recent drilling on the FMN and Franz targets continues to return significant gold and silver assays. Continuing along strike to the northwest, the Franz Zone has been extended farther northwest with the drilling of hole SN20-124. This hole, collared 500 metres northwest of the Franz discovery hole, SN20-101 (14.84 g/t Au over 7.78 metres), encountered a 4.7-metre calcite vein assaying 0.71 g/t Au and 0.6 g/t Ag over 3.53 metres, including 1.51 g/t Au over 0.62 metre. This vein also contains elevated mercury, up to 0.27 parts per million. This vein intersection is now interpreted to represent the uppermost part of the vein zone that has been preserved in a down-dropped fault block, potentially preserving a zone of boiling and gold deposition. Follow-up drilling will test the zone down dip and along strike to the northwest.”

FMN (Forget Me Not)

The FMN target represents the northwestward extension of vein zone one from the Tower/Mik and South zones. Quartz veining comprising zone one has now been traced continuously from South Zone through FMN for 2.8 kilometres of strike. Vein zone one remains open to the northwest where stronger mineralization is now being intersected. Hole SN20-139 for example, encountered 3.67 g/t Au and 209.04 g/t Ag over 10.44 metres. This intersection is centred at 1,200 m elevation, the same level at which stronger mineralization at South Zone occurs. Follow-up step-outs to the northwest have intersected vein zone one at shallower depths, such as in hole SN20-147, collared 90 metres northwest of hole 139, which intersected 35 metres of colloform/crustiform-banded centimetres to metre-scale quartz/chalcedony veins centred at 1,330 m elevation. Follow-up drilling will continue northwest into the untested 700-metre-long gap between FMN and Franz targets.

Qualified person statement

Mr. Fischl, PGeo, who is a qualified person within the context of National Instrument 43-101 has read and takes responsibility for this release.

Quality assurance/quality control

Core samples were prepared using the PREP-31 package in ALS’s Kamloops facility. Each core sample is crushed to better than 70 per cent passing a two-millimetre (Tyler 9 mesh, U.S. Std. No. 10) screen. A split of 250 grams is taken and pulverized to better than 85 per cent passing a 75-micron (Tyler 200 mesh, U.S. Std. No. 200) screen. Of this pulverized split, 0.75 g is digested by four-acid and analyzed via ICP-MS, which reports a 49-element suite of elements. All samples are analyzed by fire assay with an AES finish, method code Au-ICP21 (30-gram sample size). Additional Au screening is performed using ALS’s Au-SCR24 method, select samples are dry screened to 100-micron. A duplicate 50-gram fire assay is conducted on the undersized fraction as well as an assay on the entire oversize fraction. Total Au content, individual assays and weight fractions are reported. All analytical and assay procedures are conducted in ALS’s North Vancouver facility. A QA/QC program included laboratory and field standards inserted every 25 samples. At least one field blank is inserted in every batch of 25 samples, with additional blanks inserted following samples with visible gold.

Hudson collected 38 samples from outcrop on the Project area (NR2020-13) which sits on the southern margin of the large Sarfartoq Carbonatite Complex which also hosts the Company’s ST1 Rare Earth Element (“REE”) deposit.

A total of 35 grab rock samples were taken from the outcrop approximately every three meters along the 112 meters of the roughly east-west trending structure that is coincident with an elevated radiometric anomaly. Three additional samples were also collected for mineralogical work along the same outcrop. Assay results for the key elements of niobium, tantalum and uranium are shown below in Table 1.

Highlights of the sampling program include:

• 35 grab samples reported an average grade of 19.35% Nb2O5, 0.27% Ta2O5, 0.38% U3O8.
• Including a 30-meter section with 12 grab samples with an average grade of 32.35% Nb2O5.
• The highest-grade grab sample reported a value of 48.5% Nb2O5, 1.21% Ta2O5, 1.08% U3O8.

The mineral of economic interest in the Project area is pyrochlore, a sodium – calcium niobate with common but minor substitution by tantalum, titanium, and uranium. The Nukittooq project is one of several niobium targets within a one square kilometer area that the Company is evaluating. The targets have similar geology supported by historical high-grade niobium assays.

Pyrochlore mineralization at Nukittooq occurs as massive replacement, thin veins and disseminations within dilational zones of shear/breccia structures that cut Precambrian granite gneiss and diabase dikes. The pyrochlore is co-crystalline with aegirine, alkali feldspar, and ferric-biotite formed during metasomatism and mineralization by ultra-alkaline (fenite) solutions and coeval with dolomitic carbonatite stringers and veinlets. Some of the pyrochlore has undergone remobilization during later hydrothermal activity as evidenced by alteration overprinting.

Niobium and tantalum are vital to a wide range of products in the energy, infrastructure, transportation, medical and defense sectors. The EU and the United States have designated niobium and tantalum as critical to their security and wellbeing. There are only three primary producers of niobium in the world with typical mine grades ranging from 0.56% Nb2O5 to 2.5% Nb2O5.

The niobium price has averaged US$42/kg over the past five years with expected demand growth of 8%/annum. Tantalum currently trades at US$150/kg. The grab samples were analysed by SGS Lakefield, Canada, and the laboratory has commenced mineralogical work, including QEMSCAN and microprobe analysis, which will assist to drive a metallurgical testwork program.

Jim Cambon, President, commented: “These results are exceptional and confirm our belief that our Sarfartoq license hosts some of the highest-grade niobium mineralization reported by a public company. Mineralogical work has commenced which will allow us to rapidly move towards a metallurgical testwork program. We will be exploring similar targets in the near vicinity with an objective to commence a drill program in the first half of 2021. We are excited to be advancing this project which is an important part of our portfolio of critical and strategic minerals in Greenland.”

Hudson owns 100% of the Sarfartoq exploration license which hosts the Sarfartoq Carbonatite Complex, this includes the Company’s advanced Sarfartoq ST1 Rare Earth Element project which hosts 24 million kg of neodymium oxide and 8 million kg of praseodymium oxide which are key components in permanent magnets. Hudson also holds a 31.1% interest in Hudson Greenland A/S which owns the White Mountain Anorthosite mine in Greenland, where the Company provides operational, marketing and sales support.

Dr. Michael Druecker is a Qualified Person, as defined by National Instrument 43-101, and reviewed the preparation of the geological and technical information in this press release.

Why? Because shortly after starting, like a good disciple, I invested seven figures alongside my newfound mentor only to witness the total collapse of the mining sector and along with it, the vanishing of all my investments. Welcome to the wild and crazy ride of entrepreneurship.

Timing is everything

Everyone knows that many industries, and mining in particular, is cyclical, and I had simply entered the industry at the wrong time. But for those who can stomach the ups and downs, the uncertainty of the markets, and perhaps most importantly, have the perseverance and the courage to get back up for that one final champions round after being beat up for 14 brutal rounds, the rewards are undeniable. For me, that came in 2018 when I took two of the biggest Canadian venture deals public — Curaleaf, a $520-million raise and a $5-billion plus RTO, and then shortly after, Arizona-based Harvest Health & Recreation, which was a $300-million raise and a $2-billion RTO.

And then, sensing a possible shift in precious metals sentiment, on July 4, 2019, armed with the confidence of family, friends and investors, I launched Blue Lagoon Resources with a vision of developing the next great Canadian gold exploration and mining company.

With governments around the world printing money at unprecedented rates, riots and demonstrations causing social unrest, and the addition of a worldwide pandemic, the timing to launch a gold-focused company simply could not have been better. And for a small junior exploration company that started trading just 18 months ago, I believe we have accomplished much in 2020 and have built a solid foundation for what will be a very busy and exciting 2021.

Here are some of the milestones that we achieved and key highlights from this year.

Dome Mountain gold mine — our crown jewel

In March, 2020, we acquired Metal Mountain Resources Inc., a private B.C. company that held interests in two properties — the past-producing Dome Mountain gold mine and the Big Onion copper porphyry. The terms of the acquisition were very favourable for the company as it involved no cash payment and only the issuance of 12,151,220 shares that are escrowed over 30 months, with the first 10 per cent to be released at the end of March, 2021. You can read the full details of transaction in the news release dated March 31, 2020.

The Dome Mountain project is accessible year-round, is located a short 50-minute drive from the small town of Smithers in northwestern B.C. and holds a mining permit and environmental management act permit that provides for up to 75,000-tonnes production annually. In addition, the property has 15 known high-grade gold veins with nearly 90 per cent of the property yet to be explored (see the company’s news release dated May 4, 2020).

I believe there are three key opportunities with this project. Firstly, an opportunity to work on a vast prospective land package comprised of nearly 19,000 hectares that have seen virtually no exploration to date; secondly, advance the 15 known high-grade gold-silver veins on the property; and lastly, advance the Dome Mountain gold mine and put it back into production by completing the required amendment work under the existing mining permits.

In regards to advancing the Dome Mountain gold mine, the three key tasks (amendments) that must be completed to meet permit conditions are:

• Completion of the water treatment plant (started and expected to be completed in February, 2021);
• Completion of ground control management plan, including underground bolting (completed); and
• Update the reclamation and closure plan (expected to be completed end of April, 2021).

Please note that 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.

You can view the mine site via a short two-minute video, which will give you a first-hand look at the easy all-year-round road access, the water treatment plant that we are working to complete, the office and storage buildings, and the nearly 1,000 metres of underground mine development that leads right to the face of the Boulder vein. Since the video, we have also completed an ore storage building capable of storing over 2,000 tonnes of mineralized material that will be shipped offsite for processing.

With regards to the exploration potential, although $68-million has been spent on the property by past operators, including Timmins and Noranda, almost all of the focus in the past was on the small portion of the property where the Boulder vein and the current mine is located, while 90 per cent of the property remained unexplored. I suspect this was for good reason, as the mining market remained difficult over the past number of years and it made sense for past operators to focus on established targets.

When we recently drilled the Boulder vein, the results included notable high-grade gold intercepts. Here are some of the highlights reported from the recently completed 26-hole 3,786-metre drill program. For complete details on the reported results, see individual news releases, as per the dates below.

News releases

Sept. 28, 2020: 107 grams per tonne gold and 278.5 g/t silver over 1.42 metres, including 165.3 g/t gold over 0.71 metre;

Oct. 21, 2020: 34.5 g/t gold over 1.53 metres, 41.86 g/t gold over 1.32 metres and 15.02 g/t gold over 1.71 metres;

Nov. 10, 2020: 25.92 g/t gold and 169.46 g/t silver over 4.52 metres; and

Dec. 9, 2020: 53.76 g/t gold over 2.2 metres, including 83 g/t gold over 1.13 metres and 17.69 g/t gold over 3.13 metres.

Beyond the nice high-grade results delivered by this drill program, what was particularly beneficial to our technical team was the data from the intercept in hole DM-120-139 which, at 335 metres, is the deepest hole drilled to date on the Boulder vein. This confirmed that the Boulder vein remains in place and mineralized at depth (see news release dated Dec. 9, 2020).

Our drill rig is still sitting on this pad and, on Jan. 11, 2020, we will pick up from where we left off and once again target this vein at deeper levels to test proof of concept that the gold-bearing mineralization at the Boulder vein goes much deeper than what the historical drilling has outlined.

In addition, our first hole drilled in this program hit high-grade mineralization in the Boulder vein further east than previously drilled. Hole DM-20-114 hit 107 g/t Au (including 165.3 g/t Au over 0.71 m) in a mineralized quartz carbonate vein at 67 metres depth and confirmed that the Boulder vein strike also extends to the east (see news release Sept. 28, 2020). We will also follow-up on this and test for further extension.

But this property is more than just the Boulder vein. Shortly, I’ll discuss why we recently added significantly to the land package; but first, let me highlight one of the 15 known high-grade veins that we intend to focus on immediately — namely, the Forks vein.

This vein is located 500 metres south of the Boulder vein and was Noranda’s focus from 1985 to 1987 when they drilled 16 diamond drill holes and outlined a historical resource of 20,000 tonnes at a grade of 23.6 g/t gold.

The Forks vein remains open along strike and at depth and will be a priority drill target in our coming 2021 drill program starting in January.

Compelling data leads to adding 7,646 hectares

Looking beyond the Boulder and the Forks veins, on Nov. 18, 2020, we announced the results of the data received from the first-ever propertywide airborne geophysical survey flown on the property. After careful analysis of this data, we found it compelling to significantly expand our land package by staking an additional 7,646 hectares, thereby nearly doubling our previous land position to nearly 19,000 hectares (see news release Nov. 18, 2020).

Encouraging to see was that this survey successfully delineated several new anomalous zones of strong conductivity in the north eastern part of the Dome Mountain project where no known modern airborne EM system had ever been flown. After assessing the airborne mag and EM results, we identified new high-interest zones of anomalous conductivity representing potential drill targets. These new zones will be a significant focus of our planned 2021 program, which will include soils and geological prospecting, to get a better understanding of what this new airborne data adds to the prospectivity of these claims.

These recent developments mean that 2021 will be a very busy year for exploration at Dome Mountain.

We also conducted an extensive soil program that included nearly 1,200 soil samples that were collected and sent to ALS labs of North Vancouver. Of these, 120 samples were collected over the newly identified MAG anomaly called Dipole and 116 samples were collected on the western margin of the Far East EM anomaly. We await the results and should have them before the end of this year.

Healthy treasury with no debt

In August, we completed a non-brokered financing of over $7.5-million and subsequently last month another one for over $2.3-million, $2.2-million of which was flow-through at $1 per share. With a healthy treasury and no debt, this puts us in a great position to be able to complete the three key amendments required for the mine, as well as execution of the 2021 planned exploration program, which will include a 20,000-metre-plus drill program scheduled to start on Jan. 11, 2021.

Additional value drivers

When we acquired Metal Mountain Resources, as part of the deal, we also negotiated the acquisition of the Big Onion property, a porphyry copper project that consists of 13 contiguous mineral claims comprising a total area of 4,493 hectares located a short 20-minute drive from the town of Smithers, B.C.

Copper occurrences were originally discovered on this property in the early 1900s. Between 1964 and 1998, various operators conducted diamond and percussion drilling, totalling over 134 holes (19,487 metres). Eagle Peak Resources, a company that previously owned the Dome Mountain project, subsequently drilled a total of 84 holes (21,523 metres) to explore the depth and extent of the mineralized zones, conducted preliminary metallurgical test work, completed magnetic and induced polarization geophysical surveys, and calculated two resource estimates. To date, 313 drill holes totalling 45,477 metres have been drilled on the Big Onion property with approximately $8.2-million spent on the project since 2006.

With copper prices reaching seven-year highs so far this December, the Big Onion property is currently a very good asset to have in our portfolio, giving us great exposure to the base metal. Copper has key uses in infrastructure, and is also a critical component in the continually expanding electric vehicle market. And with both the Dome Mountain gold project and the Big Onion being a stone’s throw away from each other, we joined them with a bridge claim so that any expenditures on Dome Mountain can be spread across to the Big Onion, if desired.

In other words, this property is not going to be a burden on our treasury, so we can be patient to see how best to monetize it and drive the maximum value for our shareholders.

Pellaire gold project now 100-per-cent owned

In May of 2020, we exercised our option to acquire a 100-per-cent interest in the Pellaire gold project after having renegotiated improved terms with the vendor. The improved terms included a reduction in the remaining cash payments from $200,000 (U.S.) to $35,000, and a reduction in the remaining consideration shares from 700,000 shares to 600,000 shares. The shares are subject to a release schedule — equal installments of 50,000 shares every three months over 36 months. In addition, we renegotiated the right to repurchase a 2-per-cent net smelter returns royalty from the vendor to reduce the repurchase price from $2-million (U.S.) to $1-million (U.S.) which, if exercised, would leave the vendor with a 0.5-per-cent NSR royalty.

This is a great road-accessible gold project that comprises 22 claims totalling 7,829 hectares, and located in central British Columbia. So far 10 different high-grade gold-silver-telluride veins have been identified and the exploration work we completed on the property in 2019 clearly supports a follow-up program.

A significant opportunity also exists at the Pellaire project to test the potential to monetize 25,000 tonnes of stockpiled mineralized material that have been sitting on the property for many years. This stockpile material can be shipped, without the need of any permits, to a mill for processing. It’s our intention to sample this stockpiled material to verify grade and potential recoveries, and thereafter work towards shipping this material for processing in the summer of 2021.

We also filed the first ever NI 43-101 technical report on this property, which was prepared by Richard Goodwin, PEng, of JDS Energy and Mining, a well-respected and trusted organization in the mining industry.

This coming year is going to be a pivotal year for our young company. A big part of a mining exploration company’s value is driven by turning potential into something tangible and measurable. This requires significant additional drilling to expand and define known mineralized zones. This is why our entire team, contractors and key stakeholders, are looking forward to Jan. 11, 2021. That’s the day we will start on what will be the largest exploration program ever conducted on the Dome Mountain gold project, that will include a minimum 20,000-metre drill program.

I want to thank all our loyal shareholders for their continued support and belief in my vision and all that which may be possible at Dome Mountain, particularly during this very difficult year that was dominated by unprecedented challenges posed by COVID-19.

I also want to recognize and thank our chief geologist, Bill Cronk, who I have come to appreciate and respect tremendously. Thank you for your dedication and tireless efforts in helping me to continue to build the next great Canadian gold exploration and mining company.

And last but not least, I want to appreciate the tireless efforts of all our dedicated Smithers staff, contractors and consultants, who through their daily dedication, are diligently working to advance the Dome Mountain gold project to benefit not only Blue Lagoon shareholders, but the local community. Thank you!

I’m expecting 2021 to be one of the most exciting years of my life and I’m looking forward to sharing all of that, and more, with all of you.

Stay safe and healthy.

-Rana Vig

Prime Mining’s Chief Executive Officer Daniel Kunz commented, “We are extremely pleased with the continued progress made during the quarter as Prime Mining and our Los Reyes project continue to evolve. The appointment of three key individuals both corporately and in operations has materially strengthened our management team. On the ground, we continued our comprehensive exploration program of field mapping, core re-logging and trench sampling. In December we started our highly anticipated diamond drill program, which now has been expanded from 10,000 metres to 15,000 metres, intended to upgrade and expand the current resource and test high-potential targets defined by our surface mapping and core re-logging program.”

CORPORATE HIGHLIGHTS

The Company was pleased to welcome three additions to senior management.

On August 4th Ian Harcus was appointed Chief Financial Officer (CFO), bringing over 12 years of financial and accounting experience. As a Chartered Professional Accountant, he has an extensive background in financial management and reporting, corporate transactions and working with international jurisdictions including Mexico. Prior to joining Prime, he served as CFO and Vice President Finance at Alio Gold Inc., prior to its acquisition by Argonaut Gold Inc. He has held public accounting positions with Grant Thornton LLP and Ernst and Young.

On October 13th Kerry Sparkes was appointed Executive Vice President of Exploration. As a registered professional geologist and Qualified Person in British Columbia and Newfoundland, he brings over 30 years of experience in the mineral exploration as an exploration geologist and a senior mining executive. Mr. Sparkes recently retired after 7 years as Vice President Geology for Franco-Nevada Corporation and co- founder and director of Orla Mining Ltd. He also serves as a director of Aurion Resources Ltd.

On October 13th Mario Castellanos was appointed as Project Manager to provide day-to-day management of the Los Reyes exploration program. Ing. Castellanos is a geologist and a Principal of Resource Geosciences Incorporated, a company with over 20 years’ experience working on exploration projects in Mexico.

The Company’s Board of Directors has approved the granting of incentive stock options to a consultant to purchase up to 125,000 common shares in the capital stock of the Company, at a price of $1.75 per share, for a period of 5 years from the grant date. The options will vest 1/3 immediately as of the date of grant; 1/3 six months after the date of the grant; and 1/3 twelve months after the date of the grant. This stock option grant is subject to acceptance by the TSX Venture Exchange.

EXPLORATION HIGHLIGHTS

Significant exploration progress has been made at Los Reyes including:

• Field mapping, trench sampling and re-logging of historic diamond drill core, which aided the initial structural and rock alteration interpretations prior to the commencement of drilling.
• The Company’s first diamond drill program began on December 1. Based on targets identified to-date, this Phase 1 drill program has been expanded from 1,000 metre to 15,000 m.
• The diamond drill program results, coupled with the 8 known deposits, are key to development of the first wireframed and integrated geological, structural and alteration model to serve as the framework for advanced exploration and discovery of new deposits at Los Reyes.
• Drilling will initially focus on the Zapote North, Zapote South-Tahonitas, San Miguel and Noche Buenos deposits and their associated structural trends. The objective of Phase I drilling is to upgrade Inferred resource category material to Measured and Indicated resource categories; drill into the up and down dip areas to infill and expand the deposits; acquire silver assays in certain areas where they are absent in the historical data, and test new targets developed from surface mapping, re-logging and re-interpretation of the geology at Los Reyes.
• This Phase 1 drill program will provide an initial test of our exploration model and is expected to be completed by June 2021. A follow-up drill program that tests the ultimate potential of the eight or more deposits at Los Reyes is planned for the second half of 2021 recognizing that drilling will be halted from mid-August through September during the peak rainy season.

To date we have completed over 6,226 assay samples for approximately 8,200 m. The breakdown includes 3,457 trench samples and 2,769 road and prospecting samples.

On August 19th, the Company reported more significant surface mineralization at Los Reyes. Surface trench:

• Surface trench NB-4490N returned 42.0 m at 1.93 grams per tonne (“g/t” gold (“Au”) and 25.7 g/t silver (“Ag”). Based on area mapping, trench NB-4490N has an 18.0 m estimated true width (“etw”). This trench included a 9.0 m interval (4.0 m etw) with 7.46 g/t Au and 98.1 g/t Ag. Sampling started in mineralization and crews are extending the trench to ensure the full width of the zone is tested.
• These results show that grades and widths of the mineralized structure at the south end of Noche Buena are consistent with subsurface historic drilling results. Noche Buena remains open along southeast strike.

On October 26, the Company reported sampling results from Guadalupe East continues to demonstrate resource expansion potential:

• Rock chip sampling inside the old, existing mine adit GE-Adit 17 returned 2.21 g/t Au and 95 g/t Ag over 46 m, including 29.0 g/t Au and 226 g/t Ag over 2.0 m.
• Two other veins in GE-Adit 17 were also sampled, returning 0.84 g/t Au and 37.7 g/t Ag over 4.5 m and 0.76 g/t Au and 23.6 g/t Ag over 6.0 m, respectively. These veins may be a continuation of the San Manual vein system and the results suggest that the Guadalupe system remains open to the east where historic drilling has not occurred.
• Sampling results from existing mine adit GL-Adit 20 returned 1.69 g/t Au and 62.3 g/t Ag over 19.5 m, including 4.55 g/t Au and 121.4 g/t Ag over 3.0 m.
• Results from existing adit GE-Adit 25, further to the north, returned gold and silver mineralization that demonstrates this part of the San Manuel vein system within Guadalupe is also underexplored and merits additional exploration work.

     Q2 2021 FINANCIAL HIGHLIGHTS
 
Net loss        Q2 2021         Q1 2021  

Total       $(1,656,466)    $(2,338,461)

QA/QC Protocols and Sampling Procedures

Surface sampling is targeting wide outcropping zones of hard quartz bearing altered bedrock. In hand dug trenches, local shallow overburden is removed to expose the mineralized bedrock material. Sample collection consists of crews, using hammers and chisels, chipping continuous 1.5 m channels to produce approximately 8 to 10 kilograms of material for each 1.5 m sample interval. The larger rocks within the collected material is then broken with a hammer to homogenize them to a standard size. On a canvas mat the collected material mixed, divided, and bagged. The bagged samples are then trucked to a lab for prep and assay. Similar samples are also collected from exposed road cuts and from open underground adit areas across mapped and unmapped structures. True widths of mineralized zones have not been calculated from the surface samples except where specified. Assay results range from below detection to 48.30 g/t gold and 1,250.0 g/t silver. Composite intervals use a cut-off grade of 0.2 g/t gold.

Quality control of the sampling program includes the insertion of reference standards and blanks as well as reject duplicate analysis to monitor the integrity of assay results. All samples are stored until picked up by Bureau Veritas Minerals and transported to its laboratory in Durango, Mexico. Samples are then dried, crushed, split and pulp samples are prepared for analysis. Gold is determined by fire assay with an atomic absorption spectroscopy (AAS) finish, and silver plus 34 other elements by multi-acid digestion and ICP finish, over-limits by fire assay and gravimetric finish. Bureau Veritas is an ISO/IEC accredited laboratory.

Kerry Sparkes, P.Geo., Executive Vice President of Exploration, is a qualified person for the purposes of National Instrument 43-101 and has reviewed and approved the technical content in this news release.

Los Reyes Gold and Silver Project

The Los Reyes Gold-Silver Project is district scale epithermal gold-silver project in a prolific mining region of Mexico. Mineralization in the Los Reyes area is typical of low sulfidation epithermal gold/silver systems. Over $20 million in exploration and engineering has already been spent on the project over 2 1/2 decades. Previous operators completed various prefeasibility studies and plans yet held back from development due to declining gold prices. While work completed has provided sufficient understanding of resources to fast-track Los Reyes to production, the bulk of work at Los Reyes has been conducted over less than 40% of the known structures leaving significant opportunity to expand known resources. Current Measured and Indicated pit-constrained oxide mineral resources for the Property include 19.8 million tonnes containing 633,000 oz Au at 1.0 gpt and 16,604,000 oz Ag at 26.2 gpt. Los Reyes holds substantial resource upside based on open extensions of known resources, ten kilometres of undrilled strike length and at least eight additional exploration targets.

About Prime Mining Corp.

Prime is an ideal mix of successful capital markets and mining executives and experienced local exploration personnel who are expanding the exploration initiative at the historically productive Los Reyes gold and silver project in Sinaloa, Mexico. Current Measured and Indicated pit-constrained oxide mineral resources for the Property include 19.8 million tonnes containing 633,000 ounces of gold at 1.0 g/t and 16,604,000 ounces of silver at 26.2 g/t. Inferred pit-constrained oxide mineral resources include 7.1 million tonnes containing 179,000 ounces of gold at 0.78 g/t and 6,831,000 ounces of silver at 30.0 g/t. Los Reyes holds substantial resource upside based on open extensions of known resources, ten kilometres of undrilled strike length and at least eight additional exploration targets. Prime Mining has a well-planned capital structure with significant management and insider ownership.

We seek Safe Harbor.

• Three gold targets defined at Grootfontein (80 kilometres northeast of B2 Gold’s Otjikoto mine) based on low detection limit gold anomalies, up to six kilometres in strike length coincident with favourable structural lineaments.
• The delineation of a major gold anomaly covering 25 square kilometres at the Highlands target underlines the potential for gold discoveries within the massive Grootfontein mafic complex.
• Grootfontein target areas covered by thick calcrete. Follow-up with high-resolution UAV magnetic and ground induced polarization surveys to define drill targets.
• Soil sampling completed over Erongo (20 kilometres from Osino Resource’s Twin Hills discovery) has identified three priority target areas defined by strong arsenic anomalies coincident with favourable structural lineaments.

Namibia Critical Metals holds four exclusive prospecting licences comprising 2,150 square kilometres within the central Namibian gold belt. The EPLs are situated within the central Namibian gold belt which hosts a number of significant orogenic gold deposits, including the Navachab gold mine (4.41 million ounces), the Otjikoto gold mine (1.83 million ounces) and more recently the discovery of the Twin Hills deposit. Gold mineralization throughout the belt is associated with northeast-striking fault zones and second- and third-order structures related to these faults which have been identified on the company’s EPLs.

Don Burton, president of Namibia Critical Metals, stated: “With the delineation of gold anomalies at Grootfontein, the potential of the Namibian central gold belt now extends for 400 kilometres in length. Investment in the belt has been driven by the historic gold discovery at Navachab, the success of B2 Gold’s operation at Otjikoto and the ongoing drilling success at Osino’s Twin Hills discovery. We are well positioned in key areas of the belt and we are especially excited about the Highlands target which covers 25 square kilometres and is clearly open to the east.”

Work by the company completed to date includes detailed structural interpretations and mapping over the entire Grootfontein and Erongo project areas, and regional soil sampling programs over designated target areas. Over 16,000 soil samples have been collected and analyzed for pathfinder elements using handheld XRF analyzers. Low-detection gold analyses have been completed on 5,685 of these samples from Grootfontein. Gold analyses are pending from Erongo.

The Grootfontein project area comprises two EPLs covering 1,643 square kilometres located 80 kilometres northeast of B2 Gold’s Otjikoto gold mine and 20 kilometres northeast of Osino Resources’ Otjikoto East project.

The geology of the property is dominated by the Grootfontein mafic complex. Grootfontein lies at the northeastern extremity of the central Namibian gold belt where the Grootfontein shear zone transects the GMC and is bounded to the south by the Waterberg fault. Gold anomalies identified to date at Grootfontein occur within the mafic rocks of the GMC itself and in basement and Damaran supergroup rocks in proximity to the Grootfontein shear zone. The project area has extensive alluvial and calcrete cover up to 40 metres in thickness.

A structural interpretation of the entire project area was undertaken by Earthmaps Consulting using airborne magnetic and radiometric geophysical data together with one-to-250,000 scale geological maps. The study provided a detailed structural analysis of the area delineating the Grootfontein shear zone and the Waterberg fault, and associated second- and third-order structures considered favourable for gold mineralization, with a focus on the potential of a 50-kilometre-long segment of the GSZ. Given the extensive calcrete cover, regional-scale soil sampling was undertaken to identify potentially mineralized zones associated with the GSZ.

Results have outlined three large, low-grade gold anomalies of gold related to the GSZ:

• The Highlands target covers an area of 25 square kilometres situated 2.5 kilometres north of the Grootfontein shear zone. Gold anomalies are associated with second-order structures over strike lengths up to six kilometres within the Grootfontein mafic complex and following the contact zone of the GMC and the Huab basement. Orogenic gold deposits in sheared mafic intrusive rocks are well documented and this represents the first such target in the central Namibian gold belt.
• The Gressenhof target is coincident with the Grootfontein shear zone over a strike length of three kilometres and is underlain by metasediments of the Damaran supergroup.
• The Rothof target is a well-defined, linear corridor following second-order structures over a strike length of six kilometres, immediately north of the Grootfontein shear zone within the GMC.

Follow-up of all three targets will be undertaken using high-resolution magnetics with UAV (drone) and induced polarization geophysical surveys to delineate drill targets. Regional soil sampling will continue to fill in the 20-kilometre gap between the Gressenhof and Rothof targets along the Grootfontein thrust zone and explore the second and third structures within the basement rocks to the south.

Gold exploration targets at Erongo

The Erongo project area comprises 320 square kilometres and is largely underlain by metasediments of the Damaran supergroup dominated by a turbiditic sequence of metapelites of the Kuiseb formation and syntectonic granites of the Damaran orogen. The Kuiseb formation hosts the Twin Hills gold project of Osino Resources just 20 kilometres south of the Erongo project.

The structural interpretation of the entire project area by Earthmaps Consulting delineated the Omaruru fault zone and the Kanona fault zone, both of which are considered prospective for structurally controlled orogenic gold mineralization. The project area has extensive alluvial or calcrete cover and regional soil sampling was undertaken as the initial exploration tool to identify areas of potential interest. Over 8,000 samples were collected and analyzed by handheld XRF for base metals and gold pathfinder elements. All soil samples are pending preparation for low-level detection limit gold analyses. The priority target at Erongo is the Kanona fault zone.

Based on arsenic anomalies in soils from handheld XRF analyses, three target areas associated with the Kanona fault have been identified:

• The Kanona North target has a strike length of four kilometres, which clearly follows a lower-order structure splaying off the main Kanona fault. This target is defined by the most intense arsenic anomaly in the area and occurs within the Kuiseb formation and syntectonic leucogranites (orthogneisses).
• The Kanona Central target is similarly situated along the Kanona fault over a strike length of six kilometres but displays a broader, less-confined arsenic anomaly within the Kuiseb formation and syntectonic leucogranites.
• The Kanona East target is a northeast-trending linear anomaly with a strike length of 2.5 kilometres coincident with an interpreted dike swarm cross-cutting the Karibib formation into Salem granite.

The Kanona fault is a first-order structure characterized by a kilometre-wide corridor of second- and third-order structures clearly expressed at surface by quartz gravels. In the limited areas where subcrops occurred, samples of the detrital quartz gravel were collected as composites of 20 to 40 small quartz vein chips over an area of up to 50 metres by 50 metres from gravel plains. These composite samples were analyzed by fire assay but did not return any gold values above 100 parts per billion.

Further evaluation of all target areas at Erongo are pending results from low-detection limit gold analyses of the regional soil samples. Targets with defined gold anomalies will be further evaluated by high-resolution UAV magnetic (drone) and induced polarization geophysical surveys to delineate drill targets.

Soil sample programs and analyses

Soil samples were systematically taken every 100 metres with a line spacing of 400 metres at Grootfontien and a line spacing of 200 metres at Erongo. A total of 8,028 samples were taken at Grootfontein and 8,078 samples at Erongo. All samples were sieved to minus-180 microm and analyzed by handheld XRF for base metals and gold pathfinder elements. The XRF analyzer was calibrated in a daily routine by GeoExpert Services. A total of 5,525 soil samples from Grootfontein were submitted to Actlabs (Windhoek) for full sample preparation (Code S1) and gold analyses were carried out by Actlabs (Ancaster) to a low-detection limit of 0.01 ppb gold (Code 1A6-10) using a cyanide leach with ICP-MS finish. Quality assurance/quality control samples (duplicates, CRMs, blanks) were inserted at a rate of four in 100 samples. Quartz composites were submitted to Actlabs (Windhoek) for full sample preparation (Code RX1) and gold analyses were carried out by Actlabs (Ancaster) using fire assay and atomic absorption finish to a detection limit of five ppb Au (Code 1A2) with insertion of a QA/QC sample at a rate of one CRM, blank or duplicate per 20 samples.

About Namibia Critical Metals Inc.

Namibia Critical Metals holds a diversified portfolio of exploration and advanced-stage projects in the country of Namibia focused on the development of sustainable and ethical sources of metals for the battery, electric vehicle and associated industries. The two advanced-stage projects in the portfolio are Lofdal and Epembe. The company also has significant land positions in areas favourable for gold mineralization.

Heavy rare earths: The Lofdal heavy rare earth project is the company’s most advanced project, having completed a preliminary economic assessment in 2014 and full environmental impact assessment in 2017. An application has been made for a mining licence at Lofdal. The project is now in joint venture with Japan Oil, Gas and Metals National Corp., who are financing the current $4.1-million drilling and metallurgical program with the objective of doubling the resource size and optimization of the process flow sheet.

Gold: At the Erongo gold project, stratigraphic equivalents to the sediments hosting the recent Osino gold discovery at Twin Hills have been identified but not yet sampled. Soil surveys are progressing over this highly prospective area. The Grootfontein base metal and gold project, which has potential for magmatic copper-nickel mineralization, Mississippi Valley-type zinc-lead-vanadium mineralization and Otjikoto-style gold mineralization. Detailed interpretation of geophysical data and regional geochemical soil sampling surveys are under way.

Tantalum-niobium: In addition to Lofdal, the Epembe tantalum-niobium project is also at an advanced stage with a well-defined, 10-kilometre-long carbonatite dike that has been delineated by detailed mapping with over 11,000 metres of drilling. Preliminary mineralogical and metallurgical studies including sorting tests indicate the potential for significant physical upgrading. Further work will be undertaken to advance the project to a preliminary economic assessment stage.

Copper-cobalt: The Kunene copper-cobalt project comprises a very large area of favourable stratigraphy along strike to the west of the Opuwo cobalt-copper-zinc deposit. Secondary copper mineralization over a wide area points to preliminary evidence of a regional-scale hydrothermal system. Exploration targets on EPLs held in the Kunene project comprise direct extensions of the DOF-style mineralization to the west, sediment-hosted cobalt and copper, orogenic copper, and stratabound manganese and zinc-lead mineralization.

The common shares of Namibia Critical Metals trade on the TSX Venture Exchange under the symbol NMI.

We seek Safe Harbor.

As reported on Aug. 28, the SEA was instructed by the courts to conduct a PPP process prior to finalizing the environmental approval process. Such process was implemented during the Nov. 18 to Dec. 14 period. Over the coming weeks, the SEA will review and compile the comments and questions raised during the PPP and send them to the company, which is expected to address them formally by March 13, 2021. Once this process is completed, the environmental permit application is resubmitted for voting to the regional environmental committee (Comision de Evaluacion Ambiental).

Fernando Porcile, executive chairman of Los Andes, commented: “The public participation process was a great opportunity for us to strengthen our relationship with the community. While these workshops were focused on the upcoming PFS drilling, they help improve the awareness of the project and, by listening to the concerns of the community, we are better able to tailor the project to manage their concerns going forward.

“Although this extended environmental approval process has delayed drilling by a few months, we do not expect that this will impact the overall timing of the project.”

Highlights:

A total of 10,000m of core drilling is planned in 24 holes during the January-March drilling season The drilling will have three objectives: Expansion, Infill and Exploration The three westernmost sections are open to the south Company is well funded with $11.2M in the treasury

Craig Parry, Chief Executive Officer commented: “IsoEnergy is uniquely positioned to benefit from a resurging uranium sector. With a strong treasury plus proceeds from the recently announced $4 million Flow-through financing, the Company will be well financed as it enters 2021. Those funds will largely be for drilling on our Larocque East property and the Hurricane zone.”

Steve Blower, Vice President of Exploration commented: “The upcoming winter drilling program should be very exciting and will satisfy three key objectives. The Expansion drill holes will evaluate high priority areas where the Hurricane zone can grow. Infill drilling will provide valuable orebody knowledge, and Exploration drilling will test our highest priority targets well to the east of Hurricane.”

Summary of 2020 Drilling Results

Two drilling campaigns were completed during the year – one in the winter and one in the summer/fall. Both programs had an enormous impact on the Hurricane zone footprint, with the discovery of a large zone of intense mineralization on the western side of Hurricane. Figure 2 compares the western side of the Hurricane zone before and after the 2020 drilling. At the beginning of the year, only two drill holes were present in the 125m along-strike gap between the most western section drilled and the western property boundary. Drilling to fill the gap began with the January-March 2020 drill program and returned some spectacular intersections, including:

LE20-53: 10.5m @ 11.7% U308, including 3.0m @ 40.4% U308 LE20-52: 7.5m @ 22.7% U308, including 2.5m @ 67.2% U308 LE20-51: 7.5m @ 14.5% U308, including 3.5m @ 30.9% U308 LE20-40: 4.0m @ 20.5% U308, including 1.5m @ 53.8% U308 LE20-34: 8.5m @ 33.9% U308, including 5.0m @ 57.1% U308 LE20-32A: 8.5m @ 19.6% U308, including 2.5m @ 63.6% U308

At the close of the winter drilling campaign in March 2020, many of the western sections were still open to the south, often with intense mineralization present in the most southerly drill holes. Therefore, southern expansion of the western side of the Hurricane zone was the top priority of the summer/fall drilling campaign. This recently completed program was also successful, with many outstanding intersections obtained as the footprint expanded, including:

LE20-76: 7.5m @ 38.8% U308, including 3.5m @ 74.0% U308 LE20-72: 6.0m @ 6.2% U308, including 1.5m @ 20.7% U308 LE20-68: 11.0m @ 6.9% U308, including 1.5m @ 49.3% U308 LE20-64: 5.0m @ 48.8% U308 including 4.0m @ 57.5% U308 LE20-62: 4.5m @ 6.2% U308 including 2.5m @ 11.1% U308 LE20-57: 10.0m @ 11.7% U308 including 2.5m @ 46.0% U308 LE20-54: 9.0m @ 12.8% U308 including 4.0m @ 27.1% U308

The three westernmost sections remain open for expansion after the summer/fall drilling program. Thick intersections of uranium mineralization are present in the most southerly holes on each of these sections, including drill hole LE20-77 on the 4460E section, which intersected 8.0m @ 2.6% U3O8.

2021 Winter Plans

A total of 10,000m of core drilling in 24 drill holes is planned for the upcoming winter drilling season in January to March, 2021. There are three main objectives to the program; Expansion, Infill and Exploration. A total of 10 drill holes will be devoted to expanding the footprint of the Hurricane zone (Figure 3). This will include drilling at both the western side of the zone and the eastern side. Five infill drill holes will provide valuable information on the continuity of the higher-grade portions of the zone. Also, a total of nine drill holes have been allocated to exploration of the Larocque conductor trend to the east of previous IsoEnergy drilling (Figure 4). The commencement of the 2021 winter drilling program is subject to the direction of the Saskatchewan Public Health Authority, which at this time has strongly recommended no travel amongst and outside the Northern Saskatchewan Administrative District communities unless it’s for essential services.

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 48 drill holes in 2020. Dimensions are currently 575m along-strike, up to 75m wide, and up to 11m thick. The zone is open for expansion along-strike to the east and to the north and south on some sections. Mineralization is polymetallic and commonly straddles the sub-Athabasca unconformity 320 m below surface. The best intersection to date is 38.8% U3O8 over 7.5m in drill hole LE20-76. 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.

Qualified Person Statement

The scientific and technical information contained in this news release was prepared by Andy Carmichael, P.Geo., IsoEnergy’s Senior Geologist, who is a “Qualified Person” (as defined in NI 43-101 – Standards of Disclosure for Mineral Projects). Mr. Carmichael has verified the data disclosed. All radioactivity measurements reported herein are total gamma from an RS-125 hand-held spectrometer. As mineralized drill holes at the Hurricane zone are oriented very steeply (-70 to -90 degrees) into a zone of mineralization that is interpreted to be horizontal, the true thickness of the intersections is expected to be greater than or equal to 90% of the core lengths. This news release refers to properties other than those in which the Company has an interest. Mineralization on those other properties is not necessarily indicative of mineralization on the Company’s properties. All chemical analyses are completed for the Company by SRC Geoanalytical Laboratories in Saskatoon, SK. For additional information regarding the Company’s Larocque East Project, including its quality assurance and quality control procedures, please see the Technical Report dated effective May 15, 2019, on the Company’s profile at http://www.sedar.com.

About IsoEnergy

IsoEnergy is a well-funded uranium exploration and development company with a portfolio of prospective projects in the eastern Athabasca Basin in Saskatchewan, Canada. The Company recently discovered the high-grade Hurricane Zone of uranium mineralization on its 100% owned Larocque East property in the Eastern Athabasca Basin. IsoEnergy is led by a Board and Management team with a track record of success in uranium exploration, development and operations. The Company was founded and is supported by the team at its major shareholder, NexGen Energy Ltd.

The effects on Sudan’s designation for the past 27 years have been extensive. The designation has severely limited options of international economic assistance and effectively blocked financing or debt relief from the International Monetary Fund and the World Bank, even though trade sanctions against Sudan had substantially been lifted by the end of 2017.

For Orca, the lifting of the terror designation from Sudan increases financing and development options for the Company’s Block 14 Project in northern Sudan. With this strategic achievement realized, Orca management will now accelerate discussions with the Sudanese government towards a timeline for the construction of Block 14. Concurrently, Orca’s physical presence and activity in Sudan will significantly increase in early 2021. Block 14 is ready to advance to development and we look forward to working with the Sudanese people to demonstrate and realize the exciting potential of this project.

Commenting upon today’s announcement by the United States, Richard Clark, CEO and Director of Orca Gold, said: “Today is a very special day for Sudan. After decades of being designated as a pariah state by much of the international community, the country is now being recognized and rewarded for their progressive efforts. I and my colleagues at Orca extend our sincere congratulations to the people of Sudan. We look forward to working with them to bring more foreign investors into the country to build what we are confident will be a thriving commercial mining industry.”

Two underground drill holes (PLI20-01, PLI20-02) drilled by GR Silver Mining have confirmed attractive new mineralized zones in the footwall and hanging wall of previously mined areas in the Plomosas Mine Area. These areas were previously thought to be barren wall rock zones. The surface drill hole (PLS20-04), also drilled by the Company, has identified the presence of a wide polymetallic (lead-zinc) mineralized zone along strike from recently drilled areas, supporting ongoing surface work to expand shallow resources.

Our ongoing review and validation of historic data (SD-62 and SD-63) has confirmed the presence of Au-Cu rich mineralization in other levels of the Plomosas Mine Area (similar to the Zone 775 Discovery – see News Release dated September 28, 2020 ). In addition, the review has confirmed the presence of massive sulphide (sphalerite-galena) narrow veins in historic workings (PD-121) in the Plomosas Mine Area, presenting a new target for future underground drilling along strike and down dip.

The integration of current drilling results with sampling and validation of historic data, has proved to be a valuable tool to support ongoing resource modelling, identifying potential areas to delineate additional underground resources and near surface resources.

The drilled area represents a highly prospective mineralized system incorporating multiple mineralization styles. The system is open for expansion along strike and down dip (see Figure 1). GR Silver Mining’s current underground drilling has identified the presence of high-grade narrow Ag-Au-Pb-Zn hydrothermal breccias, as well as multiple precious and base metal rich veinlets on the hanging wall of the Plomosas Fault. The hanging wall zone has defined a mineralized corridor ranging from 20 m to 50 m thick (Link to Section). The broad geometry of this structural corridor provides opportunity for delineation of high volume, bulk mineable style mineralization as part of the ongoing resource modelling process.

The review, sampling and validation of the historical data has also revealed Au-Cu rich zones and narrow massive sphalerite-galena veins in the vicinity of high-grade polymetallic (Au-Cu-Ag-Pb-Zn) sulphide-rich mineralization, which was discovered during initial underground channel sampling on the lower (775m RL) level of the Plomosas Mine.

GR Silver Mining President and CEO, Marcio Fonseca, commented, “The assays resulting from GR Silver Mining’s current Plomosas drilling program continue to validate the presence of a large hydrothermal system at the Plomosas Mine Area. They have identified a wide mineralized corridor on the hanging wall of the Plomosas Fault with attractive precious and base metals grades. Our integration of the recent and historic drilling data continues to define new Au-Cu-Ag-Pb-Zn mineralized structures and is discovering several attractive, near surface Pb-Zn zones. The integration of all data for the first time in a 3D model, is a valuable exploration tool to maximize the opportunity to continue to drill and expand the footprint of the potential resource area.”

Based on the recent underground and surface drilling results, GR Silver Mining has added another drill rig on site. The Company currently has five drill rigs operating at the Plomosas Project: three at the Plomosas Mine Area and two at the San Juan Area. The initial 4,500 m surface core drilling program (see News Release dated July 15, 2020 ), has been increased to 11,900 m, aiming to delineate a much larger initial resource footprint in both areas.

The Company has recently completed processing of an aeromagnetic and ground geophysical (IP) survey in both areas, with positive results identifying new anomalies in areas outside of the historic underground workings.

Table 1 summarizes the latest, most significant assay results for the Company’s drilling program.

Table 1: Summary 2020 Surface-Underground Drill Hole Results - News Release December 15, 2020 (Plomosas Mine Area)
  
  
   PLOMOSAS DRILLING PROGRAM 2020                                                                  
Hole No.TypeFrom (m)To (m)Drilled width (m)Est. true  width  (m)Ag g/tAu g/tPb %Zn %Cu %AgEq g/t
PLI20-01UG  0.0     16.0  16.0             16.0                 30    0.01  1.3 2.8     254     
includes    0.0     4.0   4.0              4.0                  55    0.01  4.0 8.3     429     
PLI20-02UG  3.4     35.4  32.0             32.0                 18    0.30  1.0 1.7     130     
includes    3.4     7.6   4.2              4.2                  107   1.70  6.6 9.6 0.2 778     


  

AgEq is based on long term gold, silver, zinc and lead prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn.and 70% Cu. “na” = no relevant assays. All numbers are rounded. Results are uncut and undiluted. UG: Underground Drill Hole, SURF: Surface Drill Hole

The review and validation of historic data is an important component of the upcoming resource modelling, due to its location on the surface and in the underground areas. The Company continues to release this historic information as validation is completed on site. Table 2 summarizes the most significant drill assay results for historic drilling data for this News Release.

Table 2: Summary Surface-Underground Historic Drill Hole Results - 
News Release December 15, 2020 (Plomosas Mine Area)
  
  
   HISTORIC DRILLING DATA**                                                                        
Hole No.TypeFrom (m)To (m)Drilled width (m)Est. true width  (m)Ag g/tAu g/tPb %Zn %Cu % AgEq g/t
SD-58   SURF256.1   282.0 25.9             25.5                9     na    0.5 0.8 0.2          
SD-62   SURF307.2   332.9 25.7             25.3                31    0.12  0.8 1.4 1.3 200      
SD-66   SURF271.0   273.4 2.4              2.4                 7     1.63  0.2 2.5 na           
            297.8   308.2 10.4             10.4                12    0.27  2.2 1.4 na           
            318.0   345.8 27.9             27.8                17    0.12  0.7 0.9 na           
            351.4   366.9 15.5             15.4                17    1.19  0.6 1.1 na           
SD-67   SURF84.6    91.8  7.3              6.1                 115   1.04  11.35.4 0.7 800      
            99.9    107.2 7.3              6.1                 11    0.10  0.6 2.7 na           
SD-69   SURF96.6    111.9 15.3             15.0                59    0.13  0.3 0.6 0.4 125      
SD-71   SURF133.4   137.3 4.0              3.9                 297   na    3.9 0.2 na  436      
SD-74   SURF74.4    84.2  9.8              7.0                 106   0.86  11.22.8 0.4 680      
            102.8   142.5 39.7             39.1                13    0.16  0.8 1.2 na           
158     UG  0.0     7.0   7.0              6.8                 21    0.32  2.9 2.4 na  219      
PD-121  UG  47.5    48.5  1.0              0.9                 72    2.80  27.518.5na  1,807    


  

** Drilling Program completed by Grupo Mexico AgEq is based on long term gold, silver, zinc and lead prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn.and 70% Cu. “na” = no relevant assays. All numbers are rounded. Results are uncut and undiluted. UG: Underground Drill Hole, SURF: Surface Drill Hole

The Company continues to review and sample attractive new zones of mineralization in historical holes that were previously un-sampled. This has identified new mineralized zones providing additional surface and underground targets for the current drill program at the Plomosas Mine Area. Table 3 highlights sampling of historical holes related to the current News Release.

Table 3: Summary Sampling Results Historical Core - News Release December 15, 2020 (Plomosas Mine Area)
  
  
   SAMPLING OF AVAILABLE UN-SAMPLED CORE***                                                  
Hole No.TypeFrom (m)To (m)Drilled width (m)Est. true width (m)Ag g/tAu g/tPb %Zn %AgEq g/t
PLI16-03UG  148.9   152.8 4.0              3.9                17    0.04  0.1 0.2         
PLI16-04UG  280.9   301.7 20.9             20.2               4     0.06  0.1 0.2         


  

*** Drilling Program completed by First Majestic AgEq is based on long term gold, silver, zinc and lead prices of US$1600 per ounce gold, US$16.50 per ounce silver, US$0.85 per pound zinc, US$0.95 per pound lead and US$2.00 per pound copper. The metallurgical recoveries are assumed as 90% Ag, 95% Au, 78% Pb, 70% Zn.and 70% Cu. “na” = no relevant assays. All numbers are rounded. Results are uncut and undiluted. UG: Underground Drill Hole, SURF: Surface Drill Hole

The Plomosas Mine Area has a series of surface outcrops representing quartz stockwork veining and locally hydrothermal breccias hosted in a Tertiary bimodal volcanic (andesitic-rhyolitic) sequence, commonly intruded by rhyolitic dykes. Structurally, the area is marked by a series of high angle NW trending faults which are commonly intersecting the N-S 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 vein infill. Late-stage quartz Ag-Au epithermal veining is commonly observed overprinting Ag-Pb-Zn mineralization in the hydrothermal breccias. Table 4 provides collar co-ordinates for the drill holes presented in this News Release.

GR Silver Mining 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.

Qualified Person

The scientific and technical data contained in this News Release related to the Plomosas Project was reviewed and/or prepared under the supervision of Marcio Fonseca, P.Geo. He has approved the disclosure herein.

Quality Assurance Program and Quality Control Procedures (“QA/QC”)

The Company has implemented QA/QC procedures which include insertion of blank and standard samples in all sample lots sent to SGS de Mexico, S.A. de C.V laboratory facilities in Durango, Mexico, for sample preparation and assaying. For every sample with results above Ag >100 ppm (over limits), these samples are submitted directly by SGS de Mexico to SGS Canada Inc at Burnaby, BC. The analytical methods are 4-acid Digest and Inductively Coupled Plasma Optical Emission Spectrometry with Lead Fusion Fire Assay with gravimetric finish for silver above over limits. For gold assays the analytical methods are Lead Fusion and Atomic Absorption Spectrometry Lead Fusion Fire Assay and gravimetric finish for gold above over limits.

The recent drill holes, completed by First Majestic from 2016 to 2018, followed QA/QC protocols reviewed and validated by GR Silver Mining, including insertion of blank and standard samples in all sample lots sent to First Majestic’s Laboratorio Central facilities in La Parilla, Durango, for sample preparation and assaying. Additional validation and check assays were performed by an independent laboratory at SGS de Mexico, S.A. de C.V. facilities in Durango, Mexico. The analytical methods applied for these recent holes for Ag and Au assays comprised of Fire Assay with Atomic Absorption finish for samples above Au >10ppm and Ag >300ppm and Gravimetric Finish. Pb and Zn were analyzed using Inductively Coupled Plasma Optical Emission Spectrometry. GR Silver Mining has not received information related to the Grupo Mexico QA/QC and assay protocols and at this stage is considering the information historic for news release purposes.

About GR Silver Mining Ltd.

GR Silver Mining Ltd. is a Mexico-focused company engaged in cost-effective silver-gold resource expansion on its key assets which lie on the eastern edge of the Rosario Mining District, Sinaloa, Mexico.

We seek Safe Harbor.

In connection with the closing of the Final Tranche, the Company will pay finder’s fees to an arm’s length finder of $11,500 in cash.

The net proceeds of the Offering will be used to fund drilling campaigns at Bonterra’s Moroy, Gladiator and Barry projects and to prepare a resource estimate update and a Preliminary Economic Assessment (“PEA“) on these three projects and for general working capital purposes. The PEA is expected to be completed in the fall of 2021. Along with a total of 124,000 m drilled since the 2019 resource estimates on the Moroy, Gladiator and Barry projects as well as the bulk sample at Moroy, the Company expects these initiatives to help demonstrate the value of the Company’s assets.

The Shares issued in the Final Tranche of the Offering are subject to a statutory hold period expiring on April 16, 2021. The Offering remains subject to final acceptance by the TSX Venture Exchange.

FOR ADDITIONAL INFORMATION:

Pascal Hamelin, President and Chief Executive Officer

Peter O’Malley, Director, Chair of the Special Committee

Email: ir@btrgold.com

2872 Sullivan Road, Suite 2, Val d’Or, Quebec J9P 0B9
819-825-8678 | Website: www.btrgold.com

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary and Forward-Looking Statements

The Shares offered have not been 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. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Shares in any State in which such offer, solicitation or sale would be unlawful.

This news release contains “forward-looking information” that is based on Bonterra’s current expectations, estimates, forecasts and projections. This forward-looking information includes, among other things, statements with respect to Bonterra’s exploration and development plans, the execution of its strategy, the terms and timing of the proposed financing, and potential strategic alternatives and transactions that the Company may pursue. There can be no assurance that the Company will complete its proposed financing. Any financing may be subject to applicable regulatory approvals, including of the TSX Venture Exchange. In addition, the PEA may not be completed as planned or at all and the results of such PEA are unknown at this time and may indicate that the projects may have economic values below the Company’s expectations. The words “will”, “anticipated”, “plans” or other similar words and phrases are intended to identify forward-looking information. This forward-looking information includes namely, information with respect to the planned exploration programs and the potential growth in mineral resources. Exploration results that include drill results on wide spacings may not be indicative of the occurrence of a mineral deposit and such results do not provide assurance that further work will establish sufficient grade, continuity, metallurgical characteristics and economic potential to be classed as a category of mineral resource. The potential quantities and grades of drilling targets are conceptual in nature and, there has been insufficient exploration to define a mineral resource, and it is uncertain if further exploration will result in the targets being delineated as mineral resources. Forward-looking information is subject to known and unknown risks, uncertainties and other factors that may cause Bonterra’s actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information. Such factors include but are not limited to: uncertainties related exploration and development; the ability to raise sufficient capital to fund exploration and development; changes in economic conditions or financial markets, environmental and other judicial, regulatory, political and competitive developments; technological or operational difficulties or inability to obtain permits encountered in connection with exploration activities; and labour relations matters. This list is not exhaustive of the factors that may affect our forward-looking information. These and other factors should be considered carefully and readers should not place undue reliance on such forward-looking information.

In a related matter, the Company advises that it and Minera Cedros are at an advanced stage of negotiations with respect to executing the transaction (see press release dated July 28, 2020) in its terms, whereby Santacruz will acquire the Zimapan Mine and all related assets.

Further, the Company advises that it is in advanced discussions with a senior mine finance group with respect to putting in place a financing facility to support the acquisition of the Zimapan Mine and related assets.

Carlos Silva, CEO of Santacruz, commented, “Management is very pleased to have reached this accommodating mining lease extension agreement with Minera Cedros in these difficult Covid-19 operating times. We believe that we are well on our way to being able to complete the acquisition of the Zimapan Mine in early 2021.”

About Santacruz Silver Mining Ltd.

Santacruz is a Mexican focused silver company that currently owns and operates the Rosario Mine. The Company also owns 100% of Carrizal Mining. Carrizal Mining holds a 20% working interest in the Company’s Veta Grande Project and has the right to operate the Zimapan Mine until June 30, 2021 under a mining lease agreement. The acquisition of the Zimapan Mine and related assets is subject to a number of conditions, including receipt of all necessary regulatory approvals including approval of the TSX Venture Exchange (“TSXV“) to the transaction which will constitute a “Fundamental Acquisition” pursuant to TSXV Policy 5.3.

The Company is managed by a technical team of professionals with proven track records in developing, operating and discovering silver mines in Mexico. Our corporate objective is to become a mid-tier silver producer.

‘signed’

Arturo Préstamo Elizondo,
Executive Chairman

For further information please contact:

Arturo Prestamo
Santacruz Silver Mining Ltd.
Email: info@santacruzsilver.com
Telephone: 52 81 8378-5707

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Forward looking information

Certain statements contained in this news release constitute “forward-looking information” as such term is used in applicable Canadian securities laws, including statements relating to the acquisition of the Zimapan Mine by the Company and potential funding transactions for the Purchase Price thereof. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions. In making the forward-looking statements included in this news release, the Company has applied several material assumptions, including that the Company’s financial condition and development plans do not change as a result of unforeseen events, that the Company will receive all required regulatory approvals and that future metal prices and the demand and market outlook for metals will remain stable or improve. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, unanticipated delays in obtaining or failure to obtain regulatory or stock exchange approvals; the risk that any of the assumptions referred to above prove not to be valid or reliable; there can be no assurance that the Company will be successful in completing the acquisition of the Zimapan Mine (including obtaining the necessary funding); risk of delays or inability to obtain the approval of the TSXV to the acquisition of the Zimapan Mine; market conditions and volatility and global economic conditions, including increased volatility and potentially negative capital raising conditions resulting from the continued COVID-19 pandemic and risks relating to the extent and duration of such pandemic and its impact on global markets; risk of delay and/or cessation in planned work or changes in the Company’s financial condition and development plans; risks associated with the interpretation of data (including in respect of the third party mineralized material) regarding the geology, grade and continuity of mineral deposits; the uncertainty of the geology, grade and continuity of mineral deposits and the risk of unexpected variations in mineral resources, grade and/or recovery rates; risks related to gold, silver, base metal and other commodity price fluctuations; risks relating to environmental regulation and liability; the possibility that results will not be consistent with the Company’s expectations, as well as the other risks and uncertainties applicable to mineral exploration and development activities and to the Company as set forth in the Company’s continuous disclosure filings filed under the Company’s profile at www.sedar.com. There can be no assurance that any forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, the reader should not place any undue reliance on forward-looking information or statements. The Company undertakes no obligation to update forward-looking information or statements, other than as required by applicable law.

Pursuant to the Agreement, Victory will acquire all of the issued and outstanding shares of Nevada King (“Nevada King Shares“) by way of statutory plan of arrangement (the “Arrangement“) whereby all of the outstanding Nevada King Shares will be exchanged for common shares of Victory (the “Victory Shares“). The shareholders of Nevada King will hold 50% of the issued and outstanding Victory Shares following completion of the Arrangement (the “Exchange Ratio“).

The Agreement was entered into pursuant to, and replaces, the previously announced binding letter agreement between Victory and Nevada King dated November 16, 2020.

The completion of the Arrangement is subject to the completion of a minimum CDN$8 million non-brokered private placement (the “Private Placement“) by Victory. The Private Placement will be conducted on a post-Arrangement basis and, as such, the common shares of the resulting issuer to be issued to subscribers of the Private Placement will not be considered in the calculation of the Exchange Ratio. Palisades Goldcorp Ltd. (“Palisades“), a major shareholder of both Nevada King and Victory, has committed to subscribe for any portion of the Private Placement that is not taken up by other investors.

Other customary conditions to the completion of the Arrangement include approval of the plan of arrangement by the shareholders of Nevada King; approval of the issuance of the Victory Shares to the Nevada King shareholders and certain other matters by the shareholders of Victory; court approval; approval of the TSX Venture Exchange; and other conditions customary for a transaction of this nature.

For further information regarding the Arrangement, please refer to the Victory and Nevada King news release dated November 17, 2020. The material terms of the Agreement are consistent with the terms of the previously announced binding letter agreement. Additional details regarding the Arrangement, including Victory’s assumption of any liabilities of Nevada King, are included in the Agreement and will be included in the materials to be mailed to the shareholders of Victory and Nevada King for their respective shareholder meetings required in connection with the Arrangement.

The transaction is a “business combination” subject to Multilateral Instrument 61-101 Protection of Minority Security Holders in Special Transactions (“ MI-61-101“).  MI-61-101 provides that, in certain circumstances, where a “related party” (as defined in  MI-61-101) of an issuer is acquiring the issuer, such transaction may be considered a “business combination” for the purposes of MI-61-101 and may be subject to minority shareholder approval, formal valuation and other requirements.  Palisades is both a major shareholder of Victory and Nevada King, holding approximately 50% of the Victory Shares and 46% of the Nevada King Shares.  Consequently, minority shareholder approval of the Victory shareholders will be required for the Arrangement.  It is expected that the Arrangement will be exempt from the formal valuation requirement of  MI-61-101 as Victory is not listed on a specified market set out in section 4.4(1)(a) of  MI-61-101.

About Victory

Victory owns a 100% interest in the Iron Point Vanadium Project, located 22 miles east of Winnemucca, Nevada. The project is located within a few miles of Interstate 80, has high voltage electric power lines running through the project area and a railroad line passing across the northern property boundary. Victory is well financed to advance the project through resource estimation and initial feasibility study work. Victory has a proven capital markets and mining team led by Executive Chairman Paul Matysek. Major shareholders include Palisades (50%), and management, directors and founders (27%). 

Please see Victory’s website at www.victorymetals.ca.

About Nevada King

Nevada King is the fourth largest mineral claim holder in the State of Nevada, and the fastest growing mineral claim holder in the United States. Nevada King owns 100% of the Atlanta Mine, located 100km southeast of Ely, Nevada, which is a historical gold-silver producer that currently hosts a NI43-101 compliant mineral resource estimate constrained by a conceptual pit containing 11 million tonnes of measured and indicated resources grading 1.3g/t Au and containing 460,000 Au oz (Table 1-1). Inferred mineral resources are 5.31 million tonnes grading 0.83 g/t Au containing 142,000 Au oz. Past open pit production is reported to have been 110,000 oz Au and 800,000 oz. Ag (1975 – 1985). Exploration activities are currently covered by a BLM-approved Plan of Operations. Existing infrastructure includes electricity to the mine, phone/internet communications, access via a graded county road, and abundant water supply. The resource area remains open for expansion through further drilling.

Please see Nevada King’s website at www.nevadaking.ca

The technical information surrounding the recently released NI 43-101 compliant mineral resource for the Atlanta Mine has been reviewed and approved by Kevin Francis, SME RM, who is a Qualified Person as defined by National Instrument 43-101.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Cautionary Statements Regarding Forward Looking Information

This news release contains certain “forward-looking information” and “forward-looking statements” (collectively “forward-looking statements”) within the meaning of applicable securities legislation. All statements, other than statements of historical fact, included herein, without limitation, statements relating the future operations and activities of Victory, are forward-looking statements. Forward-looking statements are frequently, but not always, identified by words such as “expects”, “anticipates”, “believes”, “intends”, “estimates”, “potential”, “possible”, and similar expressions, or statements that events, conditions, or results “will”, “may”, “could”, or” should” occur or be achieved. Forward-looking statements in this news release relate to, among other things, statements relating the terms of the Arrangement; the terms of the Private Placement, the terms of the Agreement, and the completion of the Arrangement. Actual future results may differ materially. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Forward-looking statements reflect the beliefs, opinions and projections on the date the statements are made and are based upon a number of assumptions and estimates that, while considered reasonable by the Victory, are inherently subject to significant business, economic, competitive, political and social uncertainties and contingencies. Many factors, both known and unknown, could cause actual results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward-looking statements and the parties have made assumptions and estimates based on or related to many of these factors. Such factors include, without limitation, the Victory’s failure to complete the Arrangement, the failure or Victory shareholders or Nevada King shareholders to approve the transaction, the failure of the TSX Venture Exchange to approve the Arrangement and the Private Placement and management’s discretion to reallocate the use of proceeds. Readers should not place undue reliance on the forward-looking statements and information contained in this news release concerning these items. Victory does not assume any obligation to update the forward-looking statements of beliefs, opinions, projections, or other factors, should they change, except as required by applicable securities laws.

 View original content to download multimedia:http://www.prnewswire.com/news-releases/victory-metals–nevada-king-enter-into-arrangement-agreement-301192931.html

SOURCE Victory Metals Inc

 View original content to download multimedia: http://www.newswire.ca/en/releases/archive/December2020/15/c4181.html

Contact:

Victory Metals: Collin Kettell at ck@victorymetals.ca or (301) 744-8744; Nevada King: Susan Lavertu at susan@nevadaking.ca or (615) 516-2572

© 2020 Canjex Publishing Ltd. All rights reserved.

Highlights

• Publication of a Preliminary Economic Assessment (“PEA“) for the Baptiste Project (“Baptiste” or the “Project“) at the Company’s 100%-owned Decar Nickel District in central British Columbia showing robust economics:
  • Mine life of 35 years and after-tax payback of 4.0 years
  • After-tax net present value (“NPV“) (8%) of US$1.72 billion and internal rate of return (“IRR“) of 18.3%
  • Average nickel production of 99 million lbs. per year
  • Average C1 operating costs of US$2.74/lb nickel and all-in sustaining costs (“AISC“) of US$3.12/lb nickel
• Successful production of high-concentration nickel-cobalt chemical solution, positioning FPX as a potentially significant supplier of nickel and cobalt to the electric vehicle (“EV”) battery market
• Completion of field work designed to confirm the potential for the development of a low- or zero-carbon mining operation at Baptiste by establishing the carbon dioxide (“CO₂“) sequestration potential of Baptiste tailings
• Fully financed for 2021 activities, including but not limited to:
  • Maiden drill program at the Decar Nickel District’s Van target, a large and highly prospective zone of outcropping bedrock located 6 kilometers north of the Baptiste Project
  • Metallurgical test work to produce additional sample products for the EV battery market
  • Expansion of test work to evaluate CO₂ sequestration potential at Baptiste

Cautionary Statement: The PEA is preliminary in nature and includes inferred mineral resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.  Mineral resources are not mineral reserves and do not have demonstrated economic viability.  There is no certainty that the conclusions or results as reported in the PEA will be realized.

“We are highly encouraged by the impressive results of the PEA and results of our other activities in 2020 that provide a solid base for building significant shareholder value in 2021,” commented Martin Turenne, FPX’s President and CEO.  “We are particularly eager to perform additional metallurgical testing to further confirm the potential to produce significant quantities of nickel and cobalt for the EV battery markets.  Further, a maiden drill program is planned for the Van target, where extensive surface sampling has delineated a target with a larger footprint and higher nickel grades at surface than those at the Baptiste deposit.  With detailed planning underway on many additional fronts, we look forward to sharing comprehensive details of our 2021 work programs in the new year.”

2021 Van Target Drilling

Assay results of outcropping bedrock samples revealed by forestry activity have defined a promising drill-ready target at the Van target, which is located 6 km north of the Baptiste Deposit at similar elevations, and now accessible via logging roads.  These results demonstrate that the approximately 2.9 square kilometre surface expression of the Van target is larger in area and higher in Davis Tube Recoverable (“DTR”) nickel than those initially encountered at the Baptiste Deposit (see the Company’s January 15, 2018 news release).  A widely-spaced 10-hole, 3,000-metre maiden drill campaign is planned to test the potential for Van to comprise a standalone deposit to complement the Baptiste Deposit.

2021 Metallurgical Testing

In its January 7, 2020 news release, the Company reported that successful leach testing of high-grade Baptiste nickel concentrates confirmed nickel recoveries up to 99.5% in producing a high-concentration nickel-cobalt chemical solution suitable for the EV battery supply chain.  This testing established high-grade Baptiste nickel concentrate as an excellent feedstock with potential advantages over sulphide and laterite feedstocks in the ultimate production of nickel sulphate and cobalt sulphate.

Additional metallurgical testing on approximately 2.5 tonnes of assay reject material from Baptiste drill holes is planned for 2021 to evaluate grinding, flotation and other parameters for the production of high-grade nickel concentrate. It is expected that portions of the high-grade nickel concentrate will be utilized for additional testwork comprised of leaching, purification and solvent extraction to produce nickel sulphate and cobalt sulphate products suitable for the EV battery market.  Further details of the metallurgical test program will be provided by the Company in the first quarter of the 2021. 

2021 Carbon Sequestration Activities

As noted in the Company’s September 1, 2020 news release, researchers from the University of British Columbia, after several years of lab testing, commenced the first-ever field tests designed to measure the rate and amount of carbon capture from direct air exposure for samples from the Baptiste Deposit under natural conditions.  This test work was completed on a representative mineralized composite sample of approximately 300 kilograms of assay reject material from drill holes, ground to the similar sizes as the tailings at Baptiste as described in the PEA.

The test program was conducted in two stages.  The first stage comprised a field test in August at an outdoor location in Prince George which approximated the climactic conditions at the Decar Nickel District.  The second stage comprised an extended study conducted both outdoors and in a laboratory in the Vancouver area in September and October.

The Company expects to report the preliminary findings of the August field trial in the first quarter of 2021, and to report the final findings of the entire 2020 test program (including both the August field trial and subsequent field and lab testing from September-October) by the second quarter of 2021.

The Company will expand the scope of carbon sequestration testing in 2021, and expects to announce the details of those planned activities in connection with the publication of the final 2020 field test results in the second quarter.

PEA Results

The Baptiste PEA (which was filed September 29, 2020 under the Company’s SEDAR profile) demonstrates the potential for establishing a greenfield open-pit mine and an on-site magnetic separation and flotation processing plant, using conventional technology and equipment.  At a throughput rate of 120,000 tonnes per day (or 43.8 million tonnes per year), annual production is projected to average 99 million pounds nickel contained in ferronickel briquettes grading 63% nickel at C1 operating costs of US$2.74 per pound of nickel.  A summary of the PEA highlights is provided in Table 1.

Table 1 – Baptiste Project PEA Results and Assumptions (all in US$)

Dr. Peter Bradshaw, P. Eng., FPX’s Qualified Person under NI 43-101, has reviewed and approved the technical content of this news release.

About the Decar Nickel District

The Company’s Decar Nickel District claims cover 245 square kilometres of the Mount Sidney Williams ultramafic/ophiolite complex, 90 km northwest of Fort St. James in central British Columbia. The District is a two-hour drive from Fort St. James on a high-speed logging road.

Decar hosts a greenfield discovery of nickel mineralization in the form of a naturally occurring nickel-iron alloy called awaruite, which is amenable to bulk-tonnage, open-pit mining. Awaruite mineralization has been identified in four target areas within this ophiolite complex, being the Baptiste Deposit, the B target, the Sid target and Van target, as confirmed by drilling in the first three plus petrographic examination, electron probe analyses and outcrop sampling on all four.  Since 2010, approximately US $24 million has been spent on the exploration and development of Decar.

Of the four targets in the Decar Nickel District, the Baptiste Deposit, which was initially the most accessible and had the biggest known surface footprint, has been the main focus of diamond drilling since 2010, with a total of 82 holes and over 31,000 metres of drilling completed.  The Sid target was tested with two holes in 2010 and the B target had a single hole drilled into it in 2011; all three holes intersected nickel-iron alloy mineralization over wide intervals with DTR nickel grades comparable to the Baptiste Deposit.  The Van target was not drill-tested at that time as rock exposure was very poor prior to logging activity by forestry companies.

As reported in the current NI 43-101 resource estimate, having an effective date of September 9, 2020, the Baptiste Deposit contains 1.996 billion tonnes of indicated resources at an average grade of 0.122% DTR nickel, containing to 2.4 million tonnes of nickel, plus 593 million tonnes of inferred resources with an average grade of 0.114% DTR nickel, containing 0.7 million tonnes of nickel, both reported at a cut-off grade of 0.06% DTR nickel.  Mineral resources are not mineral reserves and do not have demonstrated economic viability.

About FPX Nickel Corp.

FPX Nickel Corp. is focused on the exploration and development of the Decar Nickel District, located in central British Columbia, and other occurrences of the same unique style of naturally occurring nickel-iron alloy mineralization known as awaruite. For more information, please view the Company’s website at www.fpxnickel.com or contact Martin Turenne, President and CEO, at (604) 681-8600 or ceo@fpxnickel.com.

On behalf of FPX Nickel Corp.

“Martin Turenne”
Martin Turenne, President, CEO and Director

Forward-Looking Statements
Certain of the statements made and information contained herein is considered “forward-looking information” within the meaning of applicable Canadian securities laws. These statements address future events and conditions and so involve inherent risks and uncertainties, as disclosed in the Company’s periodic filings with Canadian securities regulators. Actual results could differ from those currently projected. The Company does not assume the obligation to update any forward-looking statement.

Neither the TSX Venture Exchange nor its Regulation Services Provider accepts responsibility for the adequacy or accuracy of this release.

SOURCE FPX Nickel Corp.

 View original content to download multimedia: http://www.newswire.ca/en/releases/archive/December2020/15/c8536.html

Contact:

please view the Company’s website at http://www.fpxnickel.com or contact Martin Turenne, President and CEO, at (604) 681-8600 or ceo@fpxnickel.com; Suite 620 – 1155 West Pender Street, Vancouver, BC Canada V6E 2P4, Tel: 604.681.8600, e-mail: info@fpxnickel.com

© 2020 Canjex Publishing Ltd. All rights reserved.

The mineral resource estimate used a conceptual open pit and underground optimized shapes to constrain the estimate.

 SUMMARY OF THE MINERAL RESOURCE ESTIMATE FOR THE CHALLACOLLO SILVER-GOLD PROJECT 

Classification    Material type  Tonnes (Kt)  Silver (g/t)  Gold (g/t)  Silver (Koz)  Gold (Koz)

Indicated              Open pit       5,597           170        0.27        30,639          49    
                    Underground       1,043           134        0.29         4,510          10    
                          Total       6,640           165        0.27        35,150          58    
Inferred               Open pit       2,360           117        0.15         8,912          11    
                    Underground         443           157        0.26         2,232           4     
                          Total       2,803           124        0.17        11,144          15    

Notes on the Challacollo Mineral Resource Estimate
CIM Definition Standards (2014) were used for reporting the Mineral Resources. The effective 
date of the estimate is Nov. 30, 2020. The qualified person is Dinara Nussipakynova, PGeo, 
of AMC Mining Consultants (Canada) Ltd. Mineral resources are constrained by an optimized pit
shell at a long-term metal price of $20/oz (U.S.) Ag with recovery of 92 per cent Ag and metal 
price of $1,400/oz (U.S.) Au with recovery of 75 per cent. Silver equivalency formula is 
AgEq (g/t) equals Ag (g/t) plus 57.065 *Au (g/t). The open pit mineral resources are based on 
a pit optimization using the following assumptions: Plant feed mining costs of $3.5/t (U.S.)
and waste mining cost of $2.5/t; Processing costs of $17/t (U.S.) and general and administration 
costs of $2.5/t; Edge dilution of 7.5 per cent and 100-per-cent mining recovery; 45-degree slope 
angles; Cut-off grade is 35 g/t AgEq g/t. The underground mineral resources are reported within 
Datamine MSO stopes based on the following assumptions: Mining costs of $35/t (U.S.); Processing
costs of $17/t (U.S.) and general and administration costs of $2.5/t (U.S.); Minimum width of 
2.5 m; No dilution or mining recovery; Cut-off grade is 93 AgEq g/t. Bulk density used was
2.47 t/m cubed. Drilling results up to Dec, 31, 2016. Mineral resources that are not mineral
reserves do not have demonstrated economic viability. The numbers may not compute exactly due
to rounding. Mineral resources are depleted for historic mined out material.

Source: AMC Mining Consultants (Canada) Ltd, (2020).

Further details supporting the geological model, estimation procedure, sampling and metallurgical testwork will be available in a NI 43-101 technical report. The technical report will be posted under the Company’s profile at http://www.sedar.com, the report is well advanced and is expected to be filed on SEDAR in within four weeks.

Ralph Rushton, President and CEO of the Company, commented, “We are extremely pleased with the results of this Mineral Resource estimate. For the first time, a significant amount of mineralisation is included from outside of the main Lolon Vein, from veins that are predominately on the hangingwall to the Lolon vein. We believe this validates our concept for the Project, approximately 84% of the Indicated and Inferred resources fall inside the conceptual pit shell. This estimate is only the first step for Aftermath Silver in reaching the Company’s ultimate vision for Challacollo, and the whole team is excited to start the program in the new year.”

Resource estimate details

The resource estimate is based on a geological model that utilised the geological logging and assaying of drilling as well as detailed surface mapping. A mineralised domain wireframe for the Lolon Structure was constructed by Aftermath and reviewed by the independent Qualified Person (QP). The other mineralised domains were wireframed by the QP. The mineralized wireframes for the Lolon structure were based on a silver threshold of nominally 60 g/t Ag; this structure is split into the five segments South, Main 2, Main, East Offset, and North zones, separated by fault offsets, as shown in

A total of 112 drillholes totalling 19,213 m are located in the block model area consisting of 57 diamond and 55 reverse circulation drillholes, of which 97 drillholes intercepted the interpreted mineralization and are used in the estimate.

The analysis of probability plots of the Ag grades for the domains demonstrated the presence of high-grade outliers in the Lolon structure. Top capping was applied individually to the zones. The top cut value of 1,500 g/t Ag was selected for Lolon Main zone and the other Lolon zones which were individually treated, varied from 800 g/t Au to 190 g/t Ag. No capping was applied to the hanging wall zones.

The mean sample length is 1.38 m and the median 1 m for the entire dataset. The compositing interval was selected as 1 m. Samples were composited by domain as equal length composites with no discards.

The composites of all five zones on the Lolon structure were combined into one file with a total of 1,025 samples. Variograms were produced for Ag and Au grades based on this larger dataset. Two structure spherical variograms were modelled in Datamine.

A block model was generated in Datamine software using 4 m E x 10 m N x 5 m RL parent block size. Sub-blocking was employed and resulted in minimum cell dimensions of 0.1 m E x 1 m N x 0.25 m RL.

The grade estimation was carried out by 3 passes. The grades were estimated for each domain individually. Ordinary kriging (OK) was used for estimating the Lolon structure, but due to the small number of samples inverse distance squared (ID2) was used for the hangingwall zones.

The estimation of the Lolon zones was interpolated using the Dynamic Anisotropy feature in Datamine. Dynamic anisotropy re-orientates the search ellipsoid for each estimated block based on the local orientation of the mineralization.

The block model was validated in four ways. First, visual checks were carried out to ensure that the grades respected the capped and composited assay data. Secondly, swath plots were reviewed. Thirdly, the estimate was statistically compared to the capped assay data, with satisfactory results. Lastly, the estimates were compared to other methods namely ID2, inverse distance cubed, and a nearest neighbour estimate as applicable, also with acceptable results.

Mineral Resource classification was completed using an assessment of geological and mineralization continuity, data quality, and data density. Search passes, different from those used to estimate grade, were used as an initial guide for classification. Wireframes were then generated manually to build coherent volumes defining the different classes.

The model is depleted for historical mining activities, using surveys where available or by removing the full width of the Lolon Structure where no accurate survey was available.

The maximum depth of the conceptual pit shell is 255 m. The underground conceptual stope shapes lie beneath the pit to a maximum vertical extent of 100 m, to the lower limits of the block model. Isolated stopes were not included in the Mineral Resource.

Data verification

Qualified person, Sergio Alvarado Casas, registered member of the Chilean Mining Commission (No. 004), and member of the IIMCh, of Geoinvest SAC E.I.R.L. (Chile) undertook a site visit to Challacollo in September 2020, this included verification of drill collars, storage of drill core and RC sampling.

Qualified Person, Mort Shannon, P.Geo., of AMC Mining Consultants (Canada) Ltd. considers sample preparation, analytical, and security protocols employed by Silver Standard and Mandalay to be acceptable. The QP has reviewed the Quality Assurance and Quality Control (QA/QC) procedures used by these operators including certified reference materials, blanks, duplicates, and umpire data and considers the assay database to be adequate for Mineral Resource estimation.

Qualified person, Dinara Nussipakynova, P.Geo., of AMC Mining Consultants (Canada) Ltd., is the QP for Mineral Resources and data verification. Data verification included a review of the assay database and collar locations. The QP undertook random cross-checks of assay results in the database with original assay results on the assay certificates returned from ALS Laboratories (Canada), ALS Chemex (Chile) and ALS Mineral (Chile). This verification consisted of comparing 1,210 of the 5,757 assay results in the database to those in the certificates. This is approximately 21% of the total samples. No errors were detected. The QP considers the assay database to be acceptable for Mineral Resource estimation.

Qualified person, Brendan Mulvihill, MAusIMM, chartered professional metallurgy of GR Engineering Services, is the QP for the review of the metallurgical testwork, and considers the recoveries used to be acceptable for use in the mineral resource estimate.

The QPs have identified no known legal, political, environmental or other risks that could materially affect the potential development of the mineral resources.

About Aftermath Silver Ltd.

Aftermath Silver is a Canadian junior exploration company focused on silver, and aims to deliver shareholder value through the discovery, acquisition and development of quality silver projects in stable jurisdictions.

Aftermath has developed a pipeline of projects at various stages of advancement. The Companies projects have been selected based on growth and development potential. Berenguela Silver-Copper project. The Company has an option to acquire a 100% interest through a binding agreement with SSR Mining. The project is located in the Department of Puno, in southern central Peru. An NI 43-101 Technical Report on the property is in progress. The company is planning to advance the project through a pre-feasibility study.

Qualified person

Peter Voulgaris, MAIG, MAusIMM, a consultant to the company, is a non-independent qualified person as defined by NI 43-101. Mr. Voulgaris has reviewed the technical content of this news release, and consents to the information provided in the form and context in which it appears.

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Highlights from 2020 Rock and Soil Geochemistry

• 81 rock samples returned greater than 1 g/t Au and 5 samples were greater than 31 g/t Au
• 68 rock samples returned greater than 1% Cu and 4 were greater than 5% Cu
• 38 rock samples returned greater than 100 g/t Ag and 6 were greater than 1000 g/t Ag
• 1,057 soils were above 30 ppb Au, 263 were above 100 ppb Au and 45 were above 500 ppb Au
• 2,298 soils were above 100 ppm Cu, 148 were above 500 ppm and 40 were above 1,000 ppm Cu

Chairman and CEO of Brixton Metals, Gary R. Thompson stated, “The push for more geochemical work at the Thorn Project has been a huge success this year. The 2020 field season, plus this past winter geochem data mining from 150 historical assessment reports of 10,524 soils and 3200 rocks and strategic mineral claim acquisitions, generated 6 new large scale copper-gold targets. The new total number of copper-gold targets at the Thorn Project now stands at 9, significantly increasing the probability of making a major discovery along its 75-80km of favourable geology.”

Mr. Thompson continued, “At the end of 2020, Brixton finds itself in the best position, both financially and from a project perspective than it has ever been in. Brixton is expected to finish the year with CAD$9 million in cash, a strong partner in High Power Exploration advancing its Hog Heaven Project, an active drill program at Langis pursuing a maiden resource and nine targets with potential to yield a major discovery at Thorn. Looking ahead to 2021, we plan to continue advancing each of the targets at Thorn with additional geochemical work, new geophysical work and drilling where warranted.”

The highest 20 gold-in-rock samples are listed in Table 1 below. The highest gold value from the 1473 rocks samples was collected from the Outlaw West Target which returned 68.8 g/t Au. The target with the greatest number of high-grade gold samples was the Trapper Target which had ten of the Top 20 gold-in-rock samples and ranged from 6.0 g/t Au to 47.0 g/t Au. The Camp Creek Target had five in the Top 20 gold-in-rock ranging from 6.0 g/t Au to 14.1 g/t Au.

The highest copper-in-rock sample was 7.2% Cu and came from the Camp Creek Target which also had 5 samples in the Top 20 for high-grade copper samples ranging from 4.5 To 7.2% Cu. Three targets namely Camp Creek, Metla and East Target had 5 samples in the Top 20 for high-grade copper samples, see Table 1 below.

The highest silver-in-rock grade was 2890 g/t Ag which came from the Outlaw Target. The Camp Creek Target had by far the most high-grade silver hits, returning 14 of the Top 20 high-grade silver samples ranging from 135.0 g/t Ag to 1890 g/t Ag.

The overall gold-in-rock samples are summarized in Table 2 below. The Trapper Target returned the greatest number of gold samples in all four grade categories: 1 g/t, 5 g/t, 10 g/t and 31 g/t Au. Eighty-one rock samples returned greater that 1 g/t Au. Twenty-one rocks samples were greater than 5 g/t Au. Twelve rocks samples were greater than 10 g/t Au and 5 rock samples were greater than 31 g/t Au. The Trapper Target had 26 samples greater that 1 g/t Au, 10 rock samples greater than 5 g/t Au, 6 samples greater than 10 g/t Au including 4 samples greater than 31.0 g/t Au with the high of 47 g/t Au.

The overall copper-in-rock values are summarized in Table 2 below. Sixty-eight rock samples returned greater than 1% Cu with the highest copper value of 7.2% coming from the Camp Creek Target. Twenty-nine of the 68 sample greater that 1% Cu were from the Metla Target. The Metla Target had 11 samples that were over 2% Cu out of the 31 samples over 2% Cu. Four samples returned over 4% Cu, 2 from Camp Creek, 1 from the East Target and 1 from the West Trapper Target.

The overall silver-in-rock values are summarized in Table 2. Thirty-eight rock samples were greater than 100 g/t Ag and nineteen of these came from the Camp Creek Target. Seventeen rock samples were greater that 250 g/t Ag and ten of these came from the Camp Creek Target. Ten rock samples were greater than 500 g/t Ag with six of these coming from the Camp Creek target. Six rock samples were greater than 1000 g/t Ag with four coming from the Camp Creek Target.

During the 2020 field season 5588 soil samples were collected throughout the Thorn Project which is summarized in Table 3. The Top 10 gold-in-soils values ranged from 2,660 ppb Au to 16,750 ppb Au. The two highest gold-in-soil values were from the Metla Target returning 13,300 and 16,750 ppb Au respectively. The Outlaw Target had 6 soil samples in the Top 10 gold-in-soil values ranging from 2,660.0 ppb Au to 11,700.0 ppb Au.

The highest copper-in-soils came the East Target which was 3860 ppm Cu. Six of the Top 10 copper-in-soil values where from the East Target which ranged from 1860 ppm to 3860 ppm Cu.

The Outlaw Target generated the greatest number of gold-in-soils values. Anomalous gold-in-soil values of greater than 30 ppb Au from the 5588 samples was 1057 samples of which 500 were taken form the Outlaw Target, 273 were from the East Target, 220 were from the Metla Target, 19 from the West Target, 17 from the North Target, 9 from Trapper and 9 from Camp Creek. A total of 263 samples were greater than 100 ppb Au, of which 149 samples were from the Outlaw target. A total of 128 samples were greater than 200 ppb Au of which 76 were from the Outlaw Target. A total of 45 samples were greater than 500 ppb Au, of which 32 were from the Outlaw Target.

The Metla Target and East Target generated the greatest number of high copper-in-soil values. A total of 2298 samples from the 5588 collected were greater than 100 ppm Cu, of which 585 were from the Metla Target, 548 were from the East Target, 308 were from the Outlaw Target, 88 from the West Target, 48 were from the Trapper Target, 28 were from the North Target and 2 were from Camp Creek. A total of 148 samples returned greater than 500 ppm Cu of which 77 samples were from the East Target, 40 were from the Outlaw Target, 27 were from the Metla Target and 2 were from the West Target. A total of 40 samples were greater than 1000 ppm Cu of which 23 samples were from the East Target, 11 were from the Outlaw Target, 4 were from the Metla Target and 1 was from the West Target.

Prior to this season’s geochemical surveys, data mining of assessment reports and new property acquisitions the Thorn Project consisted of 3 targets, Camp Creek, Outlaw and Chivas. In addition to the Camp Creek Target, 3 new targets stand out as large scale copper targets: Metla, West Target and the East Target. The North and South Targets are of interest for copper as well but have had very limited sampling to date.

Two areas of interest stand out as gold dominate targets and they are the Trapper Gold Target and the Outlaw Gold Target. The Trapper Target is a NW-trending 7km long anomaly that consists of highly altered volcanic hosted zone with quartz stockwork-brecciation and visible sulphide mineralization. The Outlaw Target is a 4.3km east-west trending sediment hosted gold anomaly. Most targets contain both copper and gold, whereas the West Target is copper dominant (low gold), the Trapper and Outlaw are gold dominant (low copper).

Brixton commissioned Fathom Geophysics to conduct a property-wide alteration mapping using ASTER and SENTINEL 2 satellite data.

The Camp Creek Target

The copper-gold-silver mineralization within Camp Creek are of high-sulphidation veins containing pyrite, tetrahedrite, sulphosalts +- enargite where veins range from 0.1m to 5m meters in width, or breccia matrix filled sulphide/sulphosalts as diatreme or hydrothermal breccias. Copper results in Figure 4 are a complilation of all surface geochemical results for Camp Creek area. The Camp Creek Corridor has a minimum 2km long strike and has a series of northeast trending parallel veins-breccias over 1.5km wide that include the Talisker and Gelnfiddich zones. Thirty-five samples from Camp Creek area returned greater than 5% Cu with a high of 32.8% Cu. The Camp Creek target include the Oban diatreme polymetallic breccia which is about 100m in width having a north-south mineralized structure.

The West Target

The West Target is a new area of interest which is dominantly copper (low gold). Including the 2020 soil and rock sampling, 14 rock samples returned greater than 1% Cu and a high of 4.3% Cu. Porphyry related veins with chalcopyrite, bornite, malachite and chalcocite were sampled at this target. An airborne radiometric and magnetic survey was flown at the West Target and revealed a large potassic-altered zone that encompasses the majority of the copper anomalies. Potassic alteration is known to occur at the center of large porphyry Cu-Au deposits.

The Metla Target

The Metla Target was developed into a 20km Cu-Au anomaly by the strategic acquisition of the core lands held by Stuhini Exploration that came with significant previous work. An airborne radiometric survey flow over the central Metla Target which highlights an open ended multi-kilometre potassic altered zone which corresponds well to the high copper numbers. Most of the 2020 sampling focused on the Eastern portion of the Metla Target area where 11 rock samples returned greater than 1% Cu with a high of 3.4% Cu. The total number of copper values greater that 1% from the Central and East Metla combined are 36 with the highest copper value of 15.2% Cu from the Central Metla Target area. Mineralization is porphyry related with chalcopyrite, bornite, chalcocite and malachite/azurite.

The East Target

One of the new target this season is the East Target which is located on the East edge of the Thorn property. Twenty-two rock samples were greater than 1% Cu with a high of 5.2% Cu. Two large multi-kilometer copper-in-soil anomalies were identified on the East Target.

The South Target

Geochemical surveying at the South Target was limited given that other targets were prioritized, with only one rock sample of 1.5% Cu. However, the size of the alteration footprint at this target is remarkable (i.e. 20km x 20km) and worthy to follow-up with subsequent geochemical surveys and prospecting/mapping.

The Trapper Target

The Trapper Target returned the highest number of gold anomalies in rocks, with 26 samples greater that 1 g/t Au, 10 samples greater than 5 g/t Au, 6 samples greater than 10 g/t Au including 4 samples greater than 31.0 g/t Au, with one of 47 g/t Au.

The Trapper Gold trend is a NW-SE striking, 7km long gold trend which resulted from the strategic acquisition of the Trapper claims from Kodiak Copper earlier this year.

In 2017 Brixton drilled hole THN17-142 which returned 6.4m of 2.8 g/t Au and is located at the Chivas Target located in the northern portion of the Trapper Gold Trend characterized by a large gold-in-soils anomaly.

The Outlaw Target

The Outlaw Target generated a high number of gold-in-soil and gold-in-rock samples this season.

Conclusions

Soil and rock geochemistry has proven to be an effective tool in targeting mineralization at the Thorn Project. High priority targets include Trapper, Metla, Outlaw, Camp Creek. Secondarily, but also of interest, are the East and West Targets. Drill-ready targets for 2021 include Trapper, Metla, Outlaw and Camp Creek.

Mr. Antonio Celis, MSc., P.Geo., who is a qualified person as defined by National Instrument 43-101, reviewed and approved the information in this press release.

About Brixton Metals Corporation

Brixton is a Canadian exploration and development company focused on the advancement of its gold, copper and silver projects toward feasibility. Brixton wholly owns four exploration projects, the Thorn copper-gold-silver and the Atlin Goldfields Projects located in NWBC with a combined total of 3600sqkm of mineral tenure, the past producing Langis-HudBay silver-cobalt brownfield projects in Ontario and the past producing advanced stage Hog Heaven silver-gold-copper project in NW Montana, USA. Brixton Metals Corporation shares trade on the TSX-V under the ticker symbol BBB and in the USA OTCQB market under the ticker symbol BBBXF.

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Background:

As a result of the strong results achieved from the Company’s October sampling program on the Carmona property’s Southern Zone (see press release dated November 21, 2020) additional sampling of the zone was completed in November 2020.

Highlights:

• Recent soil sampling more than doubles Au – Ag – Cu anomaly to 1.8 km2.
• Additional rock chip samples from 1 – 3m wide veins range up to 9.3g/t gold, 264g/t silver and 4.69% copper.
• Numerous mineralized veins and breccias are concentrated in a 300m wide by 900m long zone on the SW flank of the soil anomaly.

This second sampling program uncovered additional copper oxide, secondary chalcocite, chalcopyrite, bornite and pyrite bearing veins and breccia zones that define a NE-SW trending 300m wide and 900m long zone with in the gold-silver-copper soil anomaly that was identified during the earlier phase of sampling.

While the bulk of the assays are pending, results reported to date have increased the size of the anomaly to 1.8 km2 and rock sample assays from the new veins discovered within the Southern Zone include the following results

• 5.9g/t to 9.3 g/t gold with
• 133 g/t to 264 g/t silver with
• 1.09% to 4.69% copper with
• 0.11% cobalt

The Company continues to be highly encouraged by the results from the Southern Zone and once all of the sample results have been received and evaluated, the Company plans to carry out an Induced Polarization geophysical survey with a view to establishing priority targets for a reconnaissance drilling program.

To facilitate mapping and continued exploration activities on the Central Zone the Company is currently upgrading its access road into the Central Zone from which previous rock samples returned assays up to 26.2 g/t gold and 235 g/t silver (see press release dated September 3, 2020).

Steve Cochrane, President and CEO of Lithium Chile commented: “We continue to see excellent results coming from our exploration efforts on our Carmona prospect where we have now identified 3 separate gold and silver bearing anomalies totaling 26 square kilometers. We look forward to providing our shareholders regular updates as we continue to advance this exciting project.

Qualified Person

Mr. Terence Walker, M.Sc., P.Geo., qualified person within the meaning of National Instrument 43-101, has reviewed the contents of this news release. During the course of the exploration program all samples were collected by experienced Lithium Chile staff. Each sediment and soil sample was sieved in the field to obtain about I kg of 18 mesh fines, bagged and sealed on site. Each rock sample consisted of 1 -1.5 kg of representative chips taken continuously from outcrop or across mineralized structures, was bagged and sealed on site. All samples were delivered by Lithium Chile’s staff to the ALS prep-lab in La Serena for processing. ALS subsequently shipped a 30g sub-sample pulp to their laboratory in Lima, Peru where they were analyzed for gold by fire assay pre-concentration, AA finish and 35 other elements, including copper and silver, by the ICP technique following Agua Regia digestion.

About Lithium Chile

Lithium Chile is advancing a lithium property portfolio consisting of 71,900 hectares covering sections of 10 salars and two laguna complexes in Chile.

Lithium Chile now also owns 5 properties that are prospective for gold, silver and copper. The Carmona property lies in the heart of the Chilean Mega Porphyry copper, gold and silver belt.

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Darwin Green, President and CEO of Highgold, commented, “This $3 million financing achieves the dual purpose of allowing the Company to accelerate exploration at its Munro-Croesus gold project, Ontario while at the same time preserving the Company’s $15 million hard dollar treasury for its Johnson Tract Gold (Zinc-Copper) Project, Alaska.”

The gross proceeds from the Offering are intended to be used to incur Canadian Exploration Expenses that are “flow-through mining expenditures” (as such terms are defined in the Income Tax Act (Canada)) on the Company’s Ontario gold projects located in the greater Timmins region, Ontario, which will be renounced to the subscribers with an effective date no later than December 31, 2020, in the aggregate amount of not less than the total amount of the gross proceeds raised from the Offering.

The Offering is expected to close on or before December 23, 2020 subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the acceptance for filing of the Offering by the TSX Venture Exchange (“TSXV”) and any applicable securities regulatory authorities.

The Company may pay finder’s fees to arm’s length parties that have introduced the Company to subscribers participating in the Offering. All securities issued in connection with the Offering will be subject to a four-month and one day hold period in Canada.

About Highgold

Highgold is a mineral exploration company focused on high-grade gold projects located in North America. Highgold’s flagship asset is the high-grade Johnson Tract Gold (Zn-Cu) Project located in accessible Southcentral Alaska, USA that contains an Indicated Resource of 2.14 Mt grading 10.93 g/t gold equivalent (AuEq) for 750,000 ounces AuEq and an additional Inferred Resource of 0.58 Mt grading 7.16 g/t gold equivalent for 134,000 ounces AuEq (see Technical Report titled “Initial Mineral Resource Estimate for the Johnson Tract Project, Alaska” dated June 15, 2020) along with excellent exploration potential indicated by several other prospects over a 12-kilometer strike length. The Company also controls a portfolio of quality gold projects in the greater Timmins gold camp, Ontario, Canada that includes the Munro-Croesus Gold property, which is renowned for its high-grade mineralization, and the large Golden Mile and Golden Perimeter properties. Highgold’s experienced Board and senior management team, are committed to creating shareholder value through the discovery process, careful allocation of capital, and environmentally/socially responsible mineral exploration.

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