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Overview

The Company’s Neita Concession  encompasses 21,031 Ha of the Tireo Formation, a thick sequence of intermediate volcanic and volcanoclastic rocks produced by island arc volcanism that are highly prospective for:

  • Porphyry Cu and Cu-Au deposits;
  • High to low sulphidation Au and Au-Ag epithermal deposits; and
  • Volcanogenic Hosted Massive Sulphide (“VHMS”) Au-Ag-Cu-Pb-Zn deposits.

Project to date investment totals CAD$ 40.0 M. Completed work includes:

  • Soil geochemistry of the entire concession (32,000 samples) that has highlighted twenty one (21) prospective targets;
  • 11,000 surface rock geochemistry samples confirming all identified soil anomalies;
  • 32,000 meters of surface trenching, predominantly at the Candelones Main and Connector deposits;
  • 100,000 meters of resource definition drilling  at the Candelones Main, Connector and Extension deposits;
  • 23,000 meters of reconnaissance exploration drilling at 12 additional targets.

The Company owns and operates two CS1000 drill rigs with a maximum hole depth rating of 700 meters. The Company’s all in exploration cost is approximately CAD $125 per meter.

The Company has trained and employs a Dominican labour force and maintains a 98.5% local (25 km radius) hire rate.

In 2013, the Company reported an initial mineral resource estimate for the Candelones Main, Connector and Extension deposits with an estimated inferred mineral resource of 39.5 M tonnes averaging 1.6 g.t Au (2.0 M ozs Au contained). This estimate included an at surface oxide resource of 3.6 M tonnes averaging 0.98 g/t Au (112, 000 ozs Au).

2013 Technical Report

In 2015, the Company reported an updated mineral resource estimate for the Candelones Extension deposit only, with an estimated inferred mineral resource of 5.2 M tonnes averaging 5.27 g/t Au and 0.35% Cu (894,000 ozs Au; 41.2 M lbs Cu contained).

2015 Technical Report

Based on the inferred resources noted above, the Company’s all in discovery cost per ounce of gold resource is approximately CAD$ 15.00 per ounce.

The mineral resource estimates were based on drill holes spaced on 100 meter centers. In Q4, 2015, the Company initiated a diamond drill program to increase the geological confidence of the inferred mineral resource by infill drilling, targeting high grade intercepts identified in the initial 100 meter spaced drill pattern. The first hole in this program, LP15-93, a 50 meter step out hole from LP17 (6.0 meters averaging 6.05 g/t Au; 0.8% Cu), intersected pyrite rich massive sulphide mineralization returning 15.7 meters at 7.45 g/t Au; 1.1% Cu.

Drilling has since extended high grade mineralization at three distinct target areas. The results to date suggest that the Candelones deposits are a result of multiple phases of faulting with a minimum of three seperate mineralization events.

An initial, VHMS event deposited Au, Ag, Zn, Pb and Cu as stratiform mineralization within a dacite breccia that typically extends 20 to 100 from the hanging wall andesite volcanics. This was followed by an initial epithermal gold copper event introduced mineralization along conjugate fault systems formed during the orogeny. A second epithermal event, interpreted to be largely Au, Zn and Ag rich, was emplaced along the same reactivated fault systems. Finally, late stage intermediate to mafic dikes intruded these same fault systems which remobilized mineralization along the dike margins with a significant increase in Au grade.

Select results from the Company’s latest drill program targeting the high grade mineralization include:

Table 1.0 – Candelones Sulphide Drilling - Summary of Significant Results 2019-2020

Target Hole (#) From(m) To (m) Interval (m)1 Au (g/t) Ag (g/t) Cu (%) Zn (%)
A LP19-131M 284.00 309.00 25.00 5.67 NSV  0.40 NSV
  LP19-133M 283.00 300.00 17.00 7.31 22.5 1.22 NSV
  LP19-137 258.20 393.50 135.30 1.28 1.1 0.14 NSV
B LP19-134M 368.00 392.00 24.00 4.59 3.4 0.54 0.23
  LP19-135 397.30 421.00 23.70 6.03 4.9 0.31 0.10
C LP20-146 111.00 120.50 9.5 14.14 46.6 0.26 3.20
  LP20-148 130.50 149.00 18.50 10.18 4.5 0.19 1.53
  LP20-150 212.00 222.50 10.50 12.94 15.6 0.27 3.03

The accompanying longitudinal section demonstrates the sub-vertical continuity of the high grade systems, all of which remain open at depth.

Longitudinal Section

The three high grade targets tested to date all lie within the Candelones Extension footprint of the 850 Ha Candelones Project area, representing less than 4% of the total Concession area. Exploration at the remaining 18 targets highlighted by the soil geochemistry is minimal. As a result, the Company believes that there is significant potential for additional discoveries outside the Candelones Project area.

In 2019, the Company targeted the at surface oxide resource at Candelones Main and Candelones Connector identified as part of the 2013 mineral resource estimate. The objective was to increase the geological confidence of the 2012 mineral resource and evaluate the metallurgical response of the oxide resource. Metallurgical testing in 2020 confirms that the oxide mineralization is amenable to direct cyanidation with recoveries in excess of 90% after 72 hours in standard column tests. Additional metallurgical testing is underway and an updated mineral resource estimate of the oxide mineralization is underway.

Regional Geology

The island of Hispaniola is part of the Greater Antilles volcanic arc extending from Hispaniola through Cuba. The arc is a product of subduction of the North America plate below the migrating Caribbean plate. Volcanism related to the subduction zone emplaced of a series northwest trending litho-structural domains, three of which, the Tireo, Los Ranchos and Maimon Formations offer demonstrated potential to host economic gold and copper mineralization. Barrick’s flagship Pueblo Veijo Project (22 M oz Au resource) located within the Lower Cretaceous aged Los Ranchos Formation. The younger Tireo Formation hosts known gold and copper gold mineralization at Candelones (2.0 M oz inferred resource), Goldquest’s Romero discovery (1.1 M oz Au equivalent Probable Reserve) and Newmont’s La Miel project located 5 kms to the NW in Haiti.

Regional Geology of Hispaniola
“Geologic Map of Hispaniola, Edited from Draper, Lewis and Gutierrez, 1995”

Local Geology, Structure and Mineralization

The Neita Concession is comprised almost exclusively of intermediate volcanic and volcanoclastic rocks of the Upper Cretaceous aged Tireo Formation, intruded by Upper Cretaceous to Eocene aged felsic to ultramafic intrusive rocks. The main structural fabric trends northwest, consistent with the dominant structural trend of the island. The southern boundary of the concession is marked by an east-west trending composite thrust fault, interpreted to be a splay off the main northwest trending San Jose – Restauracion thrust. The composite thrust faults parallel the main east-west splay creating a stacked sequence of andesitic and dacitic volcanic and volcaniclastic rocks.

Neita Concession Geology Plan

The Company believes that at least three mineralizing events have formed the Candelones deposits. The initial phase of mineralization introduced low tenor VHMS mineralization (Au, Ag, Cu and Zn) within a brecciated dacite tuff extending from the overlying andesite for 20 to 100 meters. Gold, silver, zinc, lead and copper grades typically decrease as the distance from the andesite-dacite contact increases.  Gold grades typically range from 0.10 to 2.00 g/t Au with minor associated silver, copper and zinc mineralization. The mineralization is interpreted to be a result of intermediate volcanism in a shallow, back arc environment.

In 2016, the Company intersected what it interprets to be higher grade, epithermal style mineralization along north-northwest and east-northeast faults zones. This mineralization offers significantly higher grade gold, silver and copper grades relative the the stratabound, VHMS type mineralization originally discovered.

Metallurgical testing in 2020 indicates that the later, epithermal mineralization offers enhanced metallurgical recoveries relative to the lower grade VHMS type mineralization. Gold recoveries of up to 88% were obtained in standard bottle roll leaching of floatation concentrate from the late epithermal mineralization.

The epithermal mineralization occurs within the same dacite breccia host rock but is discordant to stratigraphy with a sub vertical dip. The high grade lenses lie within the 100 meter stratabound mineralization and trends in an east-northeast direction, roughly parallel to the andesite-dacite contact. Within that east-northeast corridor, high grade lenses strike to the northeast or west-northwest, coincident with interpreted, sub vertical normal faulting. This produces an en-echelon series of high grade lenses that repeat throughout the trend.

Candelones Geology Plan