Goldboro Gold Project Feasibility Study

The Feasibility Study, with a report date of January 11, 2022, was completed by Nordmin Engineering Ltd. (“Nordmin”) as Lead Mining and Geological Consultant. Ausenco Engineering Canada Inc. (“Ausenco”) acted as Metallurgical and Processing Consultant, Knight Piésold Ltd. (“Knight Piésold”) as Tailings Consultant, GHD Ltd. (“GHD”) as Site Water Management and Environmental Consultant, Lorax Environmental Services Limited (“Lorax”) as Geochemistry Consultant, and McCallum Environmental Ltd. (“McCallum”) as Consultation and Permitting Consultant.

Table 1: Summary of Key Estimated Results and Assumptions in the Feasibility Study

Production Data

Values

Units

Life of Mine

10.9

Years

Processing Rate

4,000 / 1.46

tpd / Mtpa

Recovered Gold

1.10

Moz

Average Gold Recovery

95.8

%

Pre-production Tonnes Mined

4.1

Mt

Total Material Mined (including pre-production)

142.6

Mt

Total Ore Tonnes Mined

15.8

Mt

Overall Strip Ratio

8.0

waste: ore

Total Tonnes Milled

15.8

Mt

Average Annual Gold Production

100

koz

Average Mill Feed Grade

2.26

g/t gold

Capital Costs

Values

Units

Initial Capital, Direct Cost Estimate

193.9

C$M

Initial Capital, Indirect Costs and Contingency

77.1

C$M

Total Initial Capital Costs

271.0

C$M

LOM Sustaining Capital Costs, including Indirect Costs and Contingency

63.1

C$M

Total Reclamation and Other Costs

50.3

C$M

Total LOM Capital Costs

384.5

C$M

Operating Costs

Values

Units

Open Pit Mining

4.99

C$/t mined

Processing

13.45

C$/t milled

Refining and Transport

4.23

C$/oz

Water Management and Treatment

1.16

C$/t milled

Site Support Costs

8.70

C$/t milled

Total Operating Cost

67.05

C$/t milled

Average Operating Cash Cost per Ounce 1

966 (US$773)

C$/oz

Average All-In Sustaining Cost per Ounce 1

1,062 (US$849)

C$/oz

Financial Analysis

Values

Units

Gold Price Assumption

$1,600

US$/oz

Exchange Rate

1:1.25

US$:C$

Gold Price Assumption

$2,000

C$/oz

Pre-Tax Unlevered Free Cash Flow

755

C$M

Pre-Tax NPV 5%

484

C$M

Pre-Tax IRR

31.2

%

Pre-Tax Payback

2.7

years

After-Tax Unlevered Free Cash Flow

529

C$M

After-Tax NPV 5%

328

C$M

After-Tax IRR

25.5

%

After-Tax Payback

2.9

years

LOM Direct Income and Provincial Mining Taxes

226

C$M

Notes:

  1. Refer to "Non-IFRS Financial Measures" below.