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FireFly Metals Ltd. Capital/Financing Update 2021

Jul 14, 2021

48548_rns_2021-07-14_f3af350a-e55d-4313-a073-05ae24cd9509.pdf

Capital/Financing Update

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ASX: AUT 15 July 2021

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ASX ANNOUNCEMENT

Pickle Crow Gold Project, Canada

Resource increases 71% to 1.7 Moz

Updated estimate comprises a high-grade Inferred Resource of 1,470,000oz at 10.1 g/t gold (up 470,000oz) and a maiden BIF-hosted JORC Inferred Resource of 240,000oz at 3.7 g/t gold

Key Points

  • The total Inferred Resource at the Pickle Crow project has increased by 710,000 oz to 1.7 Moz

  • The Inferred Resource comprises a high-grade component of 1,470,000 oz at 10.1g/t, an increase of 47%

  • An additional broad shallow Inferred Resource hosted within the adjacent Banded Iron Formation (BIF) totals 240,000 oz at 3.7 g/t, and is potentially amenable to bulk mining methods

  • The Resource growth has come at a cost of just A$15.25/oz, reflecting an outstanding return on the recently completed 45,000m drilling campaign

  • The subsequent 50,000m drill program is underway and is already generating strong results, pointing to future Resource growth. Intersections returned outside of the 1.7 Moz Inferred Resource include:

  • 1.8m @ 16.6 g/t gold from 61.5m AUDD0138 (New Structure)

  • 3.3m @ 8.0 g/t gold from 836.4m in AUDD0166 (New Structure)

  • 1.8m @ 21.2 g/t gold from 838mm in AUDD0166W1 (New Structure)

  • 4.9m @ 4.7 g/t gold from 514m in AUDD0178 (New Structure); Including 2.1m @ 10.4 g/t

  • o 1.0m @ 14.1 g/t gold from 432m in AUDD0179 (New Structure)

  • Follow up drilling at the Carey discovery is in progress, with results expected this quarter

  • Auteco is fully-funded for its growth strategy, with $26.8M cash on hand at March 31 2021

Mineralisation Lower Tonnes Gold Grade Gold Variance to September
Domain Cut-off (Mt) (g/t) (Million oz) 2020 Resource
Quartz Lodes 3.5g/t 4.5 10.1 1.47 + 0.47Moz
Banded Iron 2.0g/t 2.1 3.7 0.24 + 0.24Moz
TOTAL 6.6 8.1 1.71 + 0.71Moz

Auteco Inferred Mineral Resource Estimate as at 30 June 2021. Please refer to Appendix B JORC Table 1 for details of the Inferred Resource estimate. Note that all numbers are rounded.

ASX: AUT

ACN: 110 336 733 Principal and Registered Office: Ground Floor 24 Outram Street West Perth WA 6005

Ray Shorrocks - Executive Chairman Michael Naylor - Non-Executive Director Stephen Parsons - Non-Executive Director Nicholas Katris - Company Secretary

T: +61 8 9220 9030 E: [email protected] W: www.autecominerals.com

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Auteco Minerals (ASX: AUT) is pleased to announce that the Inferred Mineral Resource estimate at its Pickle Crow Project in Canada has increased by 71% to 1.7 million ounces of gold.

The outstanding result includes a high-grade vein-hosted Resource of 4.5 million tonnes at 10.1 g/t for 1.47 Moz of gold, an increase of 47 per cent.

In addition, the new estimate contains a maiden JORC Inferred Resource of 2.1Mt at 3.7 g/t for 242,000 oz of gold hosted within the adjacent Banded Iron Formation (BIF).

Auteco is also pleased to report that recent drilling done since the cut-off for the Resource update has intersected more high-grade gold outside the Resource.

Auteco Executive Chairman Ray Shorrocks said: “To grow the high-grade Resource by almost 50 per cent by adding 470,000oz at more than 10 g/t is an exceptional result. Achieving that at a cost of around A$15/oz is even better.

“Pickle Crow now has genuine scale and is truly high-grade by any measure. These factors highlight the quality of the mineralised system.

“And the good news continues to flow, with the new drilling program already intersecting significant high-grade mineralisation outside the updated Resource envelope.”

The Resource update is the successful culmination of the September 2020 exploration and growth program, which was underpinned by 45,000m of drilling. This campaign resulted in the addition of 710,000oz of gold at a cost of A$15.25 per Resource ounce, in addition to the discovery of numerous new veins and mineralised zones such as Carey.

The Pickle Crow mine was one of Canada’s highest grade historical producers, with 1.5 Moz of gold produced at a grade of 16.1 g/t between 1935 and 1966. Gold was sourced from narrow high-grade vein quartz carbonate veins mined from underground. This style of mineralisation forms the bulk of the Inferred Resource, accounting for 1.47 Moz at 10.1 g/t gold.

A review of historic data in addition to recent drill intersections highlighted the potential of mineralisation hosted in Banded Iron Formation. This mineralisation style characteristically contains gold in alteration halos surrounding vein arrays, resulting in relatively broad intersections potentially amenable to bulk mining methods. Assessment of the BIF hosted mineralisation resulted in a maiden JORC Inferred Resource of 242,000 oz at 3.7 g/t gold.

The mineral Resource estimation was prepared in accordance with the JORC Code (2012 edition) by reputable Australian firm Cube Consulting Pty Ltd with oversight from Auteco personnel.

ABOUT THE GROWTH AND EXPLORATION PROGRAM

The strategic work program completed between September 2020 and July 2021 (Figure 1) has reached its conclusion after the successful delivery of all key objectives. The drilling phases of the work program included a total of 166 diamond holes drilled for 45,522m.

In June 2021, the stage two 50,000m drill campaign commenced. To date 5,622m of drilling for 14 diamond drill holes have been completed from the new program. Assay results have been partially received for 5 holes, and assays are yet to be received for a further 9 holes. There are currently four drill rigs on site.

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Figure 1: AuTECO strategic work plan, key work phases and progress to date (this forward work plan is indicative).

The key highlights of the strategic work program (Figure 2) include:

  • Successful upgrade of the Resource to 1 Moz at 11.3 g/t gold in September 2020

  • Discovery of multiple previously unknown mineralised structures proximal to the Resource

  • Step-out extensions of known mineralised structures that form the current Mineral Resource

  • Commencement of concept-stage exploration target testing, which has yielded immediate results with the Carey discovery that returned an intersection of 20.4m @ 5.3 g/t gold

  • The addition of 710,000 ounces to the Inferred Resource in July 2021

  • Continued growth of the high-grade underground Resource, which now totals 4.5Mt at 10.1 g/t for 1.47 Moz (this announcement)

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Figure 2: Highlights delivered to date from the Auteco strategic work program (Sep 2020 to July 2021).

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FORWARD WORK PLAN

The forward work plan to the end of 2021 for the Pickle Crow project has been summarised into three key activity categories shown in Figure 3. The three-staged approach will continue to focus on exploration / growth, preparing for a year end Resource estimate and completing activities that potentially demonstrate a pathway to production for the Pickle Crow deposit.

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Figure 3: Auteco forward work plan to the end of 2021. Please note that timeframes are indicative.

Growth & Exploration Program – Phase Two

Auteco has a compelling pipeline of exploration and growth drill targets (Figure 4), ranging from early-stage concepts through to advanced prospects with potential to generate additional Resources. Due to the strong success of the recent drill campaigns, the Company commenced an additional 50,000m of drilling in June 2021.

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Figure 4: Exploration and growth pipeline for the Pickle Crow project.

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The dual strategy of driving near-mine Resource growth combined with early-stage exploration targeting will continue to be the focus of the program.

EXPLORATION AND GEOLOGICAL DETAIL – DRILL RESULTS

The Pickle Crow deposit is a typical Mesothermal narrow-vein high grade Archean orogenic gold deposit, with mineralised veins present within local structures formed within a broader Riedel shear zone. Historically between 1935 and 1966, 1.5 Moz of gold at a grade of 16.1 g/t was mined from more than 10 individual quartz reefs. To date >30 individual veins have been identified proximal to underground shaft infrastructure (Shaft 1, Shaft 3, and Albany Shaft). Exploration results have been grouped based on proximity to the three main shafts.

A plan map showing the collar locations of significant intersections in the near-mine area is presented in Figure 5.

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Figure 5: Surface plan showing location of significant intersections in the Shaft 1, Shaft 3 and Albany areas.

Shaft 3 Area Exploration Drilling

Drilling completed since June 2021 has continued to test the extent and continuity of newly discovered veins to the north-west of Shaft 3. Drilling proximal to a previously reported intersection of a newly discovered vein structure in hole AUDD0152[1] (4.9m @ 7.5 g/t gold) has continued to intersect veins that indicating continuity.

1 Please refer to ASX release dated 16 June 2021 for details of the intersection in drill hole AUDD0152

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Significant intersections returned from drilling north-west of Shaft 3 include:

  • 3.3m @ 8.0 g/t gold from 836.4m in AUDD0166 (New Structure)

  • 1.8m @ 21.2 g/t gold from 838mm in AUDD0166W1 (New Structure)

  • 4.9m @ 4.7 g/t gold from 514m in AUDD0178 (New Structure) Including 2.1m @ 10.4 g/t

  • 1.0m @ 14.1 g/t gold from 432m in AUDD0179 (New Structure)

Mineralisation in this area is the quartz-carbonate vein hosted style, as demonstrated in the core photographs of hole AUDD0166W1 (Figure 6). Please refer to Appendix A (Table 1) for details of drilling completed. Also refer to Appendix B, JORC Table 1 Section 2 for an isometric view of all drilling in the Pickle Crow mine area.

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Figure 6: Hole AUDD0166W1 - New discovery. 838.05m to 844.5m. Multiple quartz-tourmaline-scheelite-gold veins up to 0.6m wide within sheared, sericite-carbonate altered, basalt unit. Interval 6.45m @ 6.6 g/t gold from 838.05m, including 1.75m @ 21.2 g/t Gold from 838.05m and 0.6m @ 58.6 g/t gold from 839.2m

ABOUT THE MINERAL RESOURCE ESTIMATE

The Resource estimate as at 30 June 2021 is presented in Table 1. All Resources are classified as inferred.

Mineralisation Lower Tonnes Gold Grade Gold Variance to September
Domain Cut-off (Mt) (g/t) (Million oz) 2020 Resource
Quartz Lodes 3.5g/t 4.5 10.1 1.47 + 0.47Moz
Banded Iron 2.0g/t 2.1 3.7 0.24 + 0.24Moz
TOTAL 6.6 8.1 1.71 + 0.71Moz

Table 1: Pickle Crow Mineral Resource estimate as at 30 June 2021. All Resources are classified as Inferred. Please note that figures may not add up due to rounding. Mineral Resources that are not Ore Reserves have not demonstrated economic viability and an Inferred Mineral Resource carries a lower level of confidence than that applying to Indicated Mineral Resource and must not be converted to an Ore Reserve. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues. Mineral Resources are reported at a block cut-off grade of 3.5 g/t Au for the vein and 2.0 g/t Au for the BIF domain. No minimum mining SMU parameters have been applied to the underground Inferred Mineral Resources. The average bulk density assigned to the quartz vein hosted mineralisation is 2.7 g/cm[3] .

The Resource has been independently estimated by Cube Consulting Perth (see Competent Person statement). The estimate has been produced by 3D modelling of the lode systems and block model grade estimation using a combination of the 2D estimation modelling approach and 3D dynamic interpolation, both using Ordinary Kriging (OK) and Inverse Distance to the power of 2 (ID[2] ). A full summary of the resource methodology and validation is included in the Appendix B JORC Table 1 Section 3.

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All project resources have been classified as Inferred based on current drill spacing and the historical drill results, which will require further supporting verification drilling and QAQC insertion. It is anticipated that Infill drilling and verification drilling will support an increase in resource classification.

The updated resource differs from the previous Resource dated 1 September 2020 due to:

  • Addition of new drilling information outside of the previous estimation domains and interpretations.

  • Inclusion of the shallow mineralisation zones, including the BIF hosted mineralisation within the #1 Shaft area and Porphyry hosted mineralisation within the Albany shaft area.

  • Updated geological model and high-grade plunge interpretation for some domains based on a detailed structural review completed by AUT geologists – 16 domains updated for the June 2021 MRE.

  • Improved orebody modelling by using vein function modelling on 3D data vs the original sectional interpretation.

  • Revised resource estimation methodology more suitable for narrow vein gold deposits.

The spatial distribution and gold grades of Inferred blocks in the mineral Resource estimate is shown in Figure 7.

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Figure 7: Isometric image showing drill data density and distribution of the Inferred Mineral Resource block model. Blocks are coloured by gold grade. Grid spacing is 500m by 500m by 500m.

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Summary of JORC Table One

A summary of JORC Table 1 is provided below for compliance with the Mineral Resource and in-line with the requirements of ASX listing rule 5.8.1.

Geology and Geological Interpretation

The Archean Pickle Crow Orebody consists of 91 separate high to medium grade, lode gold domains hosted across a variety of different lithologies ranging from Pickle Crow Basalts, through Banded Iron Formation and Porphyry units. There is sufficient confidence in the geological modelling of the orebody geometries for Inferred Resource Estimation, with variable confidence dependent on drilling density, geological confidence and historical QAQC.

The Mineral Resource sits within an area of 3,800m strike (in a NE direction) of the core mine trend and within an 800m section of stratigraphy and has been interpreted to extend at its maximum 1,500m below surface in close proximity to where the underground development stops.

Drilling Techniques, Sampling and Assaying

Drilling included in the Resource Estimation at Pickle Crow consists of historical surface and underground drilling. Overall, 4,038 holes for 412,949m of dominantly NQ diamond drilling are incorporated into the database with 3,080 holes for 129,000m drilled from underground prior to 1988 and the remainder from surface. A total of 173 NQ Diamond drill holes for 46,389m have been completed by Auteco in 2020 and 2021 and have been incorporated into the June 2021 resource estimation.

Core was cut in half with one half retained as a reference, and the other sent for assay. Assays from diamond drilling post 1981 are Fire Assay results from various accredited Canadian laboratories. Historical assay methods prior to this are unknown but have been verified by duplicate sampling by historical operators at the project.

Post 2008 samples were dispatched to ALS Chemex for gold by 50g Fire Assay with atomic absorption finish. Samples greater than 5 g/t gold were reassayed by 50g Fire Assay with gravimetric finish. All samples greater than 10 g/t gold were additionally sent for pulp metallics (950g).

Auteco drilling samples were dispatched to AGAT laboratories for assay by 30g Fire Assay with atomic absorption finish. Samples greater than 5 g/t gold were reassayed by 50g Fire Assay with gravimetric finish. All samples greater than 0.2 g/t gold have additionally been sent for pulp metallics (1000g) but results have not yet been received.

Estimation Methodology

The MRE has been produced by 3D modelling of the lode systems and block model grade estimation using a combination of 2D estimation modelling approach and 3D dynamic interpolation (DK), both using OK and ID[2] . The estimation methodology is briefly summarised as follows:

  • The primary estimation domains are based on the 3D geological wireframing of quartz veins and BIF hosted mineralisation provided by Auteco. The domain interpretations were based on historical UG mining knowledge of the steeply dipping quartz veining known to host gold mineralisation from drill logging and descriptions of mapping and sampling.

  • The mineralised domains acted as a hard boundary to control the June 2021 MRE.

  • Drill hole sample data was flagged using domain codes generated from 3D mineralisation domains. Sample data was composited over the full downhole interval. There were consequently no residuals.

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Intervals with no assays were assigned background grades for the compositing routine as these unassayed intervals in the drill holes were assumed to be waste.

  • Gold grade distributions within the estimation domains were assessed to determine if high grade cuts or distance limiting should be applied on a domain by domain basis. The influence of extreme grade values was reduced by top-cutting where required. The top cut levels were determined using a combination of top-cut analysis tools (grade histograms, log probability plots and CVs). Top cuts were reviewed and applied on a domain basis.

  • The 2D estimation approach using OK was deemed appropriate for the very narrow, linear and continuous zones hosted by quartz veins. Interval composites were generated for the mineralised lode, which were then weighted by their respective widths to calculate an accumulation variable. The accumulation variable for gold was then used for variogram analysis and 2D interpolation of gold grades. The estimated 2D block values were then exported back into 3D space.

  • Several quartz vein hosted domains show ribbon-like structures and although the overall dip and dip direction of most of the lodes are consistent, there are enough changes in geometry to require locally varying search ellipse and variogram directions. The dynamic anisotropy search feature in Surpac was used in which the search neighbourhood ellipse dip and dip direction are defined separately for each block approximating the orientation of each of the mineralised zones.

  • For mineralised domains estimated using 2D OK method, variogram ranges and search distances were defined in a rotated horizontal plane. For the 3D DK method, variogram modelling was conducted to provide nugget, sill and range for 3 directions. Variogram maps were initially analysed in plan, east-west and north-south section to confirm continuity trends and to refine parameters for experimental variogram calculation.

  • The data spacing has relied on a combination of recent and historic surface diamond drilling.

Block model validation was conducted by the following means:

  • Visual inspection of block model estimation in relation to raw drill data on a section by section basis.

  • Volumetric comparison of the wireframe/solid volume to that of the block model volume for each domain.

  • A global statistical comparison of input and block grades, and local composite grade (by northing and RL) relationship plots (swath plots), to the block model estimated grade for each domain.

Bulk Density

A bulk density was assigned based on test work completed by previous operator’s PC Gold Inc. as follows:

  • Mineralised quartz veins = 2.7g/cm[3]

  • BIF hosted mineralisation = 3.21g/cm[3]

  • Porphyry hosted mineralisation = 2.83g/cm[3]

Classification

The Mineral Resource has been entirely classified as Inferred. The classification is based on the relative confidence in the mineralised domain countered by high nugget values, variable drill spacing, un-verifiable historical database and partial lack of historical QAQC.

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Mining Factors or Assumptions

Both open pit and underground mining is assumed due to the shallow nature of major mineralisation zones.

Extensive underground mining operations have previously taken place with historical documentation providing good background information for future mining considerations.

No rigorous application has been made of internal or external dilution for mining.

Initial metallurgical test work was completed by previous operators on the high-grade vein mineralisation at Pickle Crow and can be summarised as:

  • Excellent total gold extractions to a maximum exceeding 99% through a combination of gravity and 48hour cyanide leach bottle rolls

  • Excellent gravity recoveries of up to 92.4% of total gold recovered by the Knelson Concentrator prior to cyanide leaching.

These results are in line with the historical performance of the Pickle Crow Gold mine which operated between 1935 and 1966 with recoveries averaging slightly over 98% recovered through a combination of gravity and cyanidation.

No environmental factors have been considered as part of the June 2021 MRE.

Reporting Cut-Off Grade

A 3.5 g/t cut-off grade was used to report the Mineral Resources within the quartz vein mineralised domains, and a cut-off grade of 2.0 g/t was used for the Banded Iron Formation (BIF) mineralised domains. The cut-off grades are estimated to be the minimum grade required for economic extraction at current prices.

Given the depth, width and grade of the deposit Auteco Minerals considers that the mineralisation incorporated into the resource estimation has a reasonable prospect of eventually being mined. Particularly when considering the high-grade resources are close to existing underground infrastructure and in proximity to existing highways and commercial power lines. In addition, there is already a successful history of commercial production at the Pickle Crow Gold Mine which produced 1.5 Million oz @ 16.1 g/t Gold between 1935 and 1966 before eventual closure.

This announcement has been authorised for release by the Auteco Board.

For further information, please contact:

Mr Ray Shorrocks Paul Armstrong Executive Chairman Media enquiries Auteco Minerals Ltd Read Corporate +61 8 9220 9030 +61 8 9388 1474

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ABOUT AUTECO MINERALS

Auteco Minerals Ltd (ASX: AUT) is an emerging mineral exploration company focused on advancing high-grade gold resources at the Pickle Crow Gold Project in the world-class Uchi sub-province of Ontario, Canada.

The Pickle Crow Gold Project currently hosts a JORC 2012 Mineral Resource of 1.7 Moz at 8.1 g/t gold, with a 50,000m drilling program underway to expedite Resource growth.

Pickle Crow is one of Canada’s highest-grade gold mines – historically, producing 1.5 Moz at 16 g/t gold.

For further information regarding Auteco Minerals Ltd please visit the ASX platform (ASX: AUT) or the Company’s website https://www.autecominerals.com

COMPETENT PERSON STATEMENT

Certain Exploration Results referred to in this announcement were first reported in accordance with ASX Listing Rule 5.7 in the Company's announcements of 28/01/2020, 26/03/2020, 01/09/2020, 11/11/2020, 19/1/2021, 7/4/2021 and 16/6/2021. Auteco confirms that it is not aware of any new information or data that materially affects the information included in the original announcements. The Company confirms that the form and context in which the Competent Persons’ findings are presented have not been materially modified from the original market announcements.

The information in this announcement that relates to new Exploration Results and the Mineral Resource Estimate is based on and fairly represents information and supporting information compiled by Mr Marcus Harden, who is a Member of the Australasian Institute of Geoscientists. Mr Harden is an employee of the Company and has sufficient experience in the style of mineralisation and type of deposit under consideration and qualifies as a Competent Person as defined in the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Mr Harden holds securities in Auteco Minerals Limited and consents to the inclusion of all technical statements based on his information in the form and context in which it appears.

The information in this announcement that relates to the Mineral Resource Estimate is based on and fairly represents information and supporting information compiled by Mr Brian Fitzpatrick. Mr Fitzpatrick is a full-time employee of Cube Consulting Pty Ltd, who specialises in mineral resource estimation, evaluation and exploration. Neither Mr Fitzpatrick nor Cube Consulting Pty Ltd holds any interest in Auteco Minerals Ltd, its related parties, or in any of the mineral properties that are the subject of this announcement. Mr Fitzpatrick is a member of the Australian Institute of Geoscientists and has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person (or “CP”) as defined in the 2012 Edition of the Australian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code). Mr Fitzpatrick has reviewed the contents of this ASX announcement and consents to the inclusion in this announcement of all technical statements based on his information in the form and context in which they appear.

DISCLAIMER

References to previous ASX announcements should be read in conjunction with this release.

FORWARD LOOKING INFORMATION

Various statements in this announcement constitute statements relating to intentions, future acts, and events. Such statements are generally classified as “forward looking statements” and involve known and unknown risks, uncertainties and other important factors that could cause those future acts, events, and circumstances to differ materially from what is presented or implicitly portrayed herein. The Company gives no assurances that the anticipated results, performance, or achievements expressed or implied in these forward-looking statements will be achieved.

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APPENDIX A: DRILLING RESULTS

TABLE 1: Significant Intercept Table – Auteco Drilling

Cut-off grade of 1 g/t Gold allowing for 1m internal dilution (NSI – No significant Intercept). All cords in UTM NAD 83 z15

Hole No. Easting Northing Elevation Azimuth Dip Drilled
Length
(m)		 From
(m)		 To
(m)		 Width
(m)		 Assay
(g/t)		 Comment
AUDD0121 705309 5711301 338 180 60 296 148.45 148.75 0.3 1.73
AUDD0122 705095 5711315 337 180 62 447 155.2 156 0.8 1.23
341.9 343 1.1 11.3
348.5 348.8 0.3 11.7
373.5 374 0.5 8.56
395.5 395.8 0.3 1.12
AUDD0123 704921 5710791 340 140 65 204 NSI
AUDD0124 705025 5711114 340 180 55 255 196.8 197.1 0.3 12.9
204.45 204.75 0.3 1.58
AUDD0125 705090 5711050 340 180 55 260 NSI
AUDD0126 705261 5711307 338 180 62 444 44 45 1 1.55
77.8 78.1 0.3 2.37
85.1 85.7 0.6 1.05
341.5 353.2 11.7 1.29
372.75 375 2.25 2.16
385.6 386 0.4 1.47
409 410.25 1.25 1.25
AUDD0127 705026 5711377 337 180 60 510 NSI
AUDD0128 704919 5711220 337 175 60 399 82.05 83.35 1.3 21.43
106 106.3 0.3 1.38
319.95 320.55 0.6 42.9
368.7 369.5 0.8 1.13
AUDD0129 705445 5711288 342 310 55 168 NSI
AUDD0130 704959 5711109 339 180 55 303 NSI
AUDD0131 705190 5711302 338 180 60 339 227.65 227.95 0.3 5.59
AUDD0132 704930 5711362 337 160 60 519 294.5 294.85 0.35 1.39
314.15 315.3 1.15 1.33
322 323.25 1.25 2.04
437.6 437.9 0.3 1.24
489.15 490.15 1 1.64
505.65 506 0.35 2.03
AUDD0133 705210 5711475 337 180 60 519 54.2 55.5 1.3 1.42
138.3 138.7 0.4 2.84
316.8 317.2 0.4 1.55
366.3 366.6 0.3 1.29
469.6 469.9 0.3 3.6
472.3 472.7 0.4 3.05
AUDD0134 705635 5711299 358 200 60 345 10.4 11.05 0.65 6.83 Partial Assay

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Hole No. Easting Northing Elevation Azimuth Dip Drilled
Length
(m)		 From
(m)		 To
(m)		 Width
(m)		 Assay
(g/t)		 Comment
54.3 57.6 3.3 4.67
AUDD0135 705520 5711140 356 180 55 128 11 14.25 3.25 1.73
20 21 1 1.32
76.9 77.45 0.55 1.26
AUDD0136 705560 5710945 347 210 55 102 NSI
AUDD0137 705617 5711186 355 180 55 345 28.7 43.6 14.9 2.21 Partial Assay
73.95 75.5 1.55 2.32
83 84 1 1.34
114 114.65 0.65 4.26
AUDD0138 705837 5711257 350 210 55 258 61.5 63.2 1.8 16.6
96.5 93 6.5 4.64
105 106 1 1.13
110.5 113 2.5 3.96
124 124.65 0.65 4.24
AUDD0139 705058 5711454 338 185 75 636 347.9 348.8 0.9 0.99
376.3 376.6 0.3 3.01
508.35 508.9 0.55 11.9
520.25 520.55 0.3 3.13
524.5 524.8 0.3 3.78
AUDD0140 705210 5711475 337 195 75 587 187 188 1 2.61
544 544.95 0.95 1.2
547.5 547.8 0.3 7.01
AUDD0141 706024 5711437 354 210 60 189 160.55 177 16.45 2.2 Partial Assay
AUDD0142 705802 5711140 347 180 55 133 NSI
AUDD0143 705934 5711370 353 210 55 219 43.5 44.4 0.9 1.66
59.2 59.5 0.3 1.35
68.95 69.3 0.35 2.5
111.5 111.8 0.3 34.1
195.25 195.6 0.35 1.57
AUDD0144 705954 5711484 360 330 60 141 Awaiting Assay
AUDD0145 705820 5711430 361 210 55 221 39.1 40.45 1.35 3.66 Partial Assay
46.05 47.05 1 2.94
AUDD0146 705802 5711140 348 250 55 210 Awaiting Assay
AUDD0147 705897 5711466 361 330 55 105 Awaiting Assay
AUDD0148 705210 5711475 337 180 73 582 544.75 545.4 0.65 1.04 Partial Assay
AUDD0149 706177 5711593 350 180 55 138 40.85 43.35 2.5 4.5 Partial Assay
AUDD0150 705964 5711328 350 200 50 252 83.75 84.75 1 1.28 Partial Assay
AUDD0151 706257 5711557 345 145 55 168 Awaiting Assay
AUDD0152 704504 5711072 338 160 63 765 466.05 467 0.95 1.89 Partial Assay
483.2 488.1 4.9 7.5
inc: 483.5 485 1.5 17
AUDD0153 706312 5711610 346 145 55 129 Awaiting Assay
AUDD0154 706361 5711673 348 145 55 135 Awaiting Assay
AUDD0155 705710 5711350 358 200 55 249 Awaiting Assay

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Hole No. Easting Northing Elevation Azimuth Dip Drilled
Length
(m)		 From
(m)		 To
(m)		 Width
(m)		 Assay
(g/t)		 Comment
AUDD0156 705965 5711328 350 145 50 225 36.8 37.5 0.7 1.69 Partial Assay
AUDD0157 704999 5711407 337 180 76 672 Awaiting Assay
AUDD0158 705868 5711368 356 210 55 348 54.7 59.25 4.55 2.44
68.25 68.55 0.3 1.23
87 87.5 0.5 1.09
103.2 104 0.8 1.61
105 106.9 1.9 1.4
108.9 109.3 0.4 2.31
111.5 112 0.5 1.64
112.8 118.6 5.8 16.16
inc: 116 118.15 2.15 39.34
120 120.5 0.5 1.15
122.65 123 0.35 3.12
128.6 130 1.4 1.19
152.75 153 0.25 3.02
159.3 159.65 0.35 2.39
195 197 2 2.73
214.85 215.15 0.3 3.55
217 219.15 2.15 1.77
290 290.65 0.65 5.31
297.4 298.3 0.9 1.54
AUDD0159 705690 5711298 358 200 55 291 Awaiting Assay
AUDD0160 705602 5711341 356 200 55 274 Awaiting Assay
AUDD0161 704776 5710431 342 175 55 257 Awaiting Assay
AUDD0162 704694 5710407 342 175 55 222 Awaiting Assay
AUDD0163 705559 5711210 358 180 55 301 Awaiting Assay
AUDD0164 704485 5710851 340 160 57 585 Awaiting Assay
AUDD0165 704504 5711072 338 165 72 108 Awaiting Assay
AUDD0166 704489 5711151 338 161 66 847 836.40 839.65 3.25 8.03 Partial Assay
AUDD0166W1 704525 5711039 117 161 54 737 838.05 844.50 6.45 6.61 Partial Assay
inc: 838.05 839.80 1.75 21.20
inc: 839.20 839.80 0.60 58.60
AUDD0167 706648 5712082 345 320 50 144 AwaitingAssay
AUDD0168 705615 5711100 351 180 55 267 AwaitingAssay
AUDD0169 705146 5711502 338 180 78 621 587.20 587.55 0.35 2.27 Partial Assay
AUDD0170 706618 5712060 345 320 50 105 Awaiting Assay
AUDD0171 705613 5711235 359 180 60 509 Awaiting Assay
AUDD0172 706585 5712028 345 320 45 111 Awaiting Assay
AUDD0173 704549 5710828 340 160 62 600 Awaiting Assay
AUDD0174 706548 5711976 348 180 45 171 Awaiting Assay
AUDD0175 706477 5711848 348 160 45 87 Awaiting Assay
AUDD0176 705559 5711261 357 180 57 411 193.80 194.20 0.40 1.14 Partial Assay
AUDD0177 706205 5711651 347 180 60 282 Awaiting Assay

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Hole No. Easting Northing Elevation Azimuth Dip Drilled
Length
(m)		 From
(m)		 To
(m)		 Width
(m)		 Assay
(g/t)		 Comment
AUDD0178 704489 5711151 338 160 57 861 514.05 518.90 4.85 4.70 Partial Assay
inc: 514.05 516.10 2.05 10.43
590.60 592.00 1.40 1.06
AUDD0179 704586 5710883 340 160 62 606 431.95 432.90 0.95 14.10 Partial Assay

APPENDIX B - JORC CODE, 2012 EDITION

Table 1 – JORC Code 2012 Edition

Section 1 Sampling Techniques and Data (Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Sampling techniques • Nature and quality of sampling (eg cut • Drilling since 2008, quoted with PC- prefix is from PC Gold
channels, random chips, or specific exploration with NQ diameter (47.6mm) drill core was
specialised industry standard measurement recovered from drilling. Noramco drilling, CP- prefix is BQ
tools appropriate to the minerals under diameter (36.5mm). All other quoted intercepts and the bulk
investigation, such as down hole gamma of historical drilling data is of NQ diameter including Auteco
sondes, or handheld XRF instruments, etc). drilling subject to this release (prefix AUDD**).
These examples should not be taken as • The core was sawn in half following a sample cutting line
limiting the broad meaning of sampling. determined by geologists during logging and submitted for
• Include reference to measures taken to analysis on nominal 1m (1ft for historical drillholes) intervals
ensure sample representivity and the or defined by geological boundaries determined by the
appropriate calibration of any measurement logging geologist.
tools or systems used. • Samples from PC Gold holes (PC- prefix) post 2008 were
• Aspects of the determination of submitted to ALS Chemex in Thunder Bay and North
mineralisation that are Material to the Vancouver for analysis. Samples were prepared for analysis
Public Report. using a jaw crusher which was cleaned with a silica abrasive
• In cases where ‘industry standard’ work has between samples resulting in 90% of the sample passing
been done this would be relatively simple through an 8 mesh screen. A split of the crushed sample
(eg ‘reverse circulation drilling was used to weighing 1000g was then pulverised to 90% passing a 150
obtain 1 m samples from which 3 kg was mesh screen. Sample pulps were analysed for gold by Fire
pulverised to produce a 30 g charge for fire Assay using 50g sample charge with atomic absorption
assay’). In other cases, more explanation spectroscopy (AAS) finish. If the returned assay result was
may be required, such as where there is equal to or greater than 5g/t then the sample was reassayed
coarse gold that has inherent sampling by Fire Assay with a gravimetric finish. Samples from
problems. Unusual commodities or historical diamond drilling programs conducted between
mineralisation types (eg submarine nodules) 1981 and 2008 were dispatched to a variety of accredited
may warrant disclosure of detailed laboratories in Canada for Fire Assay analysis. Historical drill
information. results prior to 1981are Fire Assay conducted by unknown
laboratories (most likely the mine laboratory during the
operational life of the Pickle Crow Mine) and with unknown
preparation methods and assay charge, however previous
operators have duplicated and verified results. Recent
sampling by Auteco minerals on drill holes subject to this
release (prefix AUDD**) were submitted to AGAT
Laboratories, Thunder Bay for analysis. Auteco samples
undergo the same preparation and analysis techniques
previously used for PC Gold.
• All samples >10g/t gold and samples collected from PC gold
drilling (PC- prefix) suspected of nugget gold were
additionally sent for pulp metallics analysis.
•
Drilling techniques • Drill type (eg core, reverse circulation, open- • Drilling quoted with PC- prefix is from PC Gold exploration
hole hammer, rotary air blast, auger, with NQ diameter (47.6mm) drill core was recovered from
Bangka, sonic, etc) and details (eg core drilling. Noramco drilling, CP- prefix is BQ diameter
diameter, triple or standard tube, depth of (36.5mm). All other drilling is NQ diameter including Auteco
diamond tails, face-sampling bit or other drilling subject to this release (prefix AUDD**).
type, whether core is oriented and if so, by
what method,etc).
Drill sample recovery • Method of recording and assessing core and • All drilling quoted is NQ diamond core (including Auteco
chip sample recoveries and results assessed. drilling subject to this release -prefix AUDD**) with the
exception of Noramco drillholes(CP-prefix). RQD was

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
• Measures taken to maximise sample recorded for all diamond drilling as per industry standard. A
recovery and ensure representative nature review of the available diamond drill core RQD’s from the
of the samples. Pickle Crow project (PC- prefix and recently completed
• Whether a relationship exists between Auteco drilling - AUDD* prefix) indicated that nearly all of the
sample recovery and grade and whether holes produced excellent recoveries with an average of
sample bias may have occurred due to >90%. For drilling conducted by other operators recoveries
preferential loss/gain of fine/coarse are unknown although reports do not highlight significant
material. core loss.
• A review of RQD results does not highlight a relationship
between sample recovery and grade or highlight any sample
bias due to loss of material.
Logging • Whether core and chip samples have been • All PC Gold and Auteco samples (PC- and AUDD* hole prefix)
geologically and geotechnically logged to a were geologically logged. Lithology, veining, alteration,
level of detail to support appropriate mineralisation and weathering are all recorded in the
Mineral Resource estimation, mining studies geology table of the drill hole database. Other historical
and metallurgical studies. drillholes have been similarly logged and records have been
• Whether logging is qualitative or digitized from report format.
quantitative in nature. Core (or costean, • Geological logging of Diamond Core samples is qualitative
channel, etc) photography. and descriptive in nature.
• The total length and percentage of the • All holes quoted have been logged in their entirety.
relevant intersections logged.
Sub-sampling • If core, whether cut or sawn and whether • All drilling quoted from PC Gold and Auteco exploration (PC-
techniques and sample quarter, half or all core taken. and AUDD* hole prefix) is.NQ diameter (47.6mm) drill core
preparation • If non-core, whether riffled, tube sampled, recovered from drilling. All other quoted intercepts are NQ
rotary split, etc and whether sampled wet or diameter with the exception of Noramco drilling (CP- Prefix)
dry. which is BQ (36.5mm) diameter. The core was sawn in half
• For all sample types, the nature, quality and following a sample cutting line determined by geologists
appropriateness of the sample preparation during logging and submitted for analysis on nominal 1m (or
technique. 1ft) intervals or defined by geological boundaries determined
• Quality control procedures adopted for all by the logging geologist.
sub-sampling stages to maximise • This sampling technique is industry standard and deemed
representivity of samples. appropriate.
• Measures taken to ensure that the sampling • PC Gold QA/QC protocols include the use of crush duplicates,
is representative of the in-situ material ¼ core field duplicates, the insertion of certified reference
collected, including for instance results for materials (CRM’s) including low, medium and high-grade
field duplicate/second-half sampling. standards and coarse blanks. This was accomplished by
• Whether sample sizes are appropriate to the inserting the QA/QC samples sequentially in the drill core
grain size of the material being sampled. sample numbering system. One set of the four QA/QC types
were inserted every 30 samples consisting of 1 crush
duplicate, 1 ¼ split field duplicate, 1 CRM (altering between
low, medium and high standard) and 1 blank. This resulted in
approximately every seventh sample being a QA/QC sample.
Auteco minerals (AUDD* prefix holes) follows the same
QA/QC protocols but with CRM’s and duplicates inserted
every 25 samples. QAQC procedures are not disclosed in
previous reporting but results are consistent with visual
observations of mineralisation as recorded in the geological
logs and qualitative proportions of logged veining and
sulphide content. Post-Mining Pickle Crow Property
operators employed the usual in-laboratory blanks,
standards and duplicate analyses to ensure precision and
accuracy of results. Whist there is no documentation
available for earlier results sample duplicate verification has
been conducted.
• Sample size is deemed industry standard for Orogenic Gold
deposits.
Quality of assay data • The nature, quality and appropriateness of • Samples were submitted to ALS Chemex in Thunder Bay and
and laboratory tests the assaying and laboratory procedures used North Vancouver for analysis. Samples were prepared for
and whether the technique is considered analysis using a jaw crusher which was cleaned with a silica
partial or total. abrasive between samples resulting in 90% of the sample
• For geophysical tools, spectrometers, passing through an 8 mesh screen. A split of the crushed
handheld XRF instruments, etc, the sample weighing 1000g was then pulverized to 90% passing a
parameters used in determining the analysis 150 mesh screen. Sample pulps were analysed for gold by
including instrument make and model, Fire Assay using 50g sample charge with atomic absorption
reading times, calibrations factors applied spectroscopy (AAS) finish. If the returned assay result was
and their derivation, etc. equal to or greater than 5g/t then the sample was reassayed
byFire Assaywith agravimetric finish. . Samples from

Page | 16

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
• Nature of quality control procedures historical diamond drilling programs conducted between
adopted (eg standards, blanks, duplicates, 1981 and 2008 were dispatched to a variety of accredited
external laboratory checks) and whether laboratories in Canada for Fire Assay analysis. Historical drill
acceptable levels of accuracy (i.e. lack of results prior to 1981are Fire Assay conducted by unknown
bias) and precision have been established. laboratories (most likely the mine laboratory during the
operational life of the Pickle Crow Mine) and with unknown
preparation methods and assay charge, however previous
operators have duplicated and verified results. Recent
sampling by Auteco minerals on drill holes subject to this
release (prefix AUDD**) were submitted to AGAT
Laboratories, Thunder Bay for analysis. Auteco samples
undergo the same preparation and analysis techniques
previously used for PC Gold.
• In addition to the Company QAQC samples (described
earlier) included within the batch the laboratory included its
own CRM’s (Certified Reference Materials), blanks and
duplicates.
• Sample assay results continue to be evaluated through
control charts, log sheets, sample logbook and signed assay
certificates to determine the nature of any anomalies or
failures and failures were re-assayed at the laboratory. Check
assaying was also conducted on 1 in every 20 samples. QAQC
protocols are unknown for historical drill programs (without
the PC- hole prefix).
• QA/QC work is industry standard and acceptable levels of
accuracy and precision have been established.
Verification of sampling
•		 The verification of significant intersections • Historical significant intersections quoted have been verified
and assaying by either independent or alternative by Independent Geological Consultants Micon International
company personnel. Limited. For more details see document ‘Updated Mineral
• The use of twinned holes. Resource Estimate for the Pickle Crow Property, Patricia
• Documentation of primary data, data entry Mining Division, Northwestern Ontario, Canada’ NI-43-101
procedures, data verification, data storage dated 15 June 2018 and available from System for Electronic
(physical and electronic) protocols. Document Analysis and Retrieval (www.sedar.com) for First
• Discuss any adjustment to assay data. Mining Inc.
• There are no twinned holes in the dataset but a comparison
of the results of different drilling generations showed that
results were comparable. In addition previous operators
have duplicated and verified results by re-sampling historical
core.
• For PC Gold drilling (PC- prefix), once all logging data was
completed, core marked up, logging and sampling data was
entered directly into the Gems Logger program (an MS
Access-based database and stored on the onsite server. At
approximately weekly intervals the server onsite was
synchronised with the main server in Thunder bay. Only one
individual was responsible for synchronising the field and
office databases. Auteco records new drilling data in Excel
spreadsheet format synchronized with the Auteco server in
Perth, Australia.
• No adjustments were made to assay data but the procedure
to determine which gold assay to enter into the database is
as follows. If a pulp metallic assay was performed it was
used. If a pulp metallic assay was not performed, then a
gravimetric assay was used. If a gravimetric assay was not
performed, then the AAS assay was used. If re-assays were
preformed then the first analysis was used unless a QA/QC
investigation proved that the first assay was suspect, in
which case the second analysis was then used.
Location of data points • Accuracy and quality of surveys used to • Upon completion of PC Gold drillholes collars (PC Gold prefix)
locate drill holes (collar and down-hole were surveyed by third party contractors Delta Surveying and
surveys), trenches, mine workings and other J.D.Barnes of Thunder Bay to with +/- 1m using an SX Blue.
locations used in Mineral Resource For all other drilling hole collars were converted from local
estimation. grids or digitised from georeferenced maps. Where possible
• Specification of the grid system used. these historical surface drillholes have been re-located,
• Quality and adequacy of topographic surveyed and verified in the field. Drillhole locations are also
control. recorded by the Ontario Ministry of Northern Development
and Mines in freelyavailable GIS datasets. Auteco drilling

Page | 17

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
(AUDD* prefix) has been surveyed with a hand-held GPS to
an accuracy of less than 3m.
• A variety of down hole survey tools have been used on the
property. All holes were surveyed at 50m intervals while
drilling using an EZY Shot magnetic compass based tool
supplied by the drillers. In conjunction with this, all holes
were surveyed after completion with a non-magnetic down-
hole instrument. A variety of tools were trialled including
Maxibore tool provided by Reflex Instruments, a Devifelx tool
operated by TECH Directional services and an SPT North
Seeking Gyro. For Auteco drilling subject to this release down
hole surveys have been conducted by a REFLEX North
Seeking Gyro. For further historical details of survey
reproducibility and tools used please refer to document
‘Updated Mineral Resource Estimate for the Pickle Crow
Property, Patricia Mining Division, Northwestern Ontario,
Canada’ NI-43-101 dated 15 June 2018 and available from
System for Electronic Document Analysis and Retrieval
(www.sedar.com) for First Mining Inc. For all drilling not
conducted by PC Gold (lacking the PC- prefix) surveys were
conducted during drilling with hole orientation recorded by
the geologist in the field. Downhole surveys of dip are
recorded by azimuths away from the collar are generally
lacking.
• All location data is in UTM grid (NAD83 Zone 15) except
where noted.
• Topographic Control for PC Gold and Auteco drilling (PC- and
AUDD* prefix) is from a DTM created generated from a
LIDAR survey completed in 2008 and are to an accuracy of
<1m and verified by drill collar surveys. For all other collar
data elevation was estimated from contours provided from
SRTM. Topographic control for underground drillhole collars
has been digitised from level plans or converted from mine
grids. All surface collars have now been projected to a DTM
generated from a LIDAR survey completed in 2008 and are to
an accuracy of <1m.
Data spacing and • Data spacing for reporting of Exploration • Due to the nature of mineralisation the hole spacing is highly
distribution Results. variable and of a progressive exploration in nature.
• Whether the data spacing, and distribution • Data spacing is considered sufficient to establish geological
is sufficient to establish the degree of and grade continuities for mineral resource estimation at the
geological and grade continuity appropriate Inferred Category
for the Mineral Resource and Ore Reserve • No sample compositing was applied.
estimation procedure(s) and classifications
applied.
• Whether sample compositing has been
applied.
Orientation of data in • Whether the orientation of sampling • Drill hole orientations were designed to test perpendicular or
relation to geological achieves unbiased sampling of possible sub-perpendicular to the orientation of the intersected
structure structures and the extent to which this is mineralisation. Drilling was typically oriented perpendicular
known, considering the deposit type. to the trend of geophysical anomalism and the mapped
• If the relationship between the drilling strike and dip of observed mineralisation on surface and
orientation and the orientation of key elsewhere in the project area.
mineralised structures is considered to have • Due to the density of drilling and the orientation of drilling
introduced a sampling bias, this should be perpendicular to mineralised bodies there is limited bias
assessed and reported if material. introduced bydrillhole orientation.
Sample security • The measures taken to ensure sample • For PC Gold and Auteco drilling (PC- and AUDD* prefix), once
security. the core samples are cut, bagged and sealed with zip ties, ten
samples are put into rice bags which are sealed and secured
with numbered security tags. Once samples arrive at the
laboratory the security tags and corresponding samples were
verified against onsite logs. Prior to shipment samples are
stored in a locked building onsite. Site is always occupied,
and no samples are left at the project during field breaks. For
all other drillholes the measures taken to ensure sample
security are unknown.

Page | 18

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Criteria JORC Code explanation JORC Code explanation Commentary Commentary
Audits or reviews • The results of any audits or reviews of • An audit and review of sampling techniques and data was
sampling techniques and data. conducted as part of NI-43-101 resource estimation by
Independent Consultants Micon International in 2018. Please
refer to document ‘Updated Mineral Resource Estimate for
the Pickle Crow Property, Patricia Mining Division,
Northwestern Ontario, Canada’ NI-43-101 dated 15 June
2018 and available from System for Electronic Document
Analysis and Retrieval (www.sedar.com) for First Mining Inc.

Section 2 Reporting of Exploration Results (Criteria listed in the preceding section also apply to this section)

Criteria JORC Code explanation Commentary
Mineral tenement and • Type, reference name/number, location and • The mineral concessions of the Pickle Crow project consist of
land tenure status ownership including agreements or material 106 patented mining claims covering 1,712ha and 88
issues with third parties such as joint ventures, contiguous, unpatented claims covering approximately
partnerships, overriding royalties, native title 14,048ha. Of the 106 patented claims 98 (the Pickle Crow
interests, historical sites, wilderness or national Lease) are held in the name of Teck Cominco Limited (Teck)
park and environmental settings. and 8 are held in the name of PC Gold. The unpatented
• The security of the tenure held at the time of claims are held in the name of PC gold. PC Gold has a lease
reporting along with any known impediments to on the 98 patented claims held by Teck which expires in
obtaining a license to operate in the area. 2067. These leasehold claims are subject to two net smelter
return (NSR) royalties totalling 1.25%. The other 8 patented
claims (the Crowshore Patents), plus certain unpatented
claims are subject to NSR royalties ranging from 2% to 3%. A
full list of tenements along with details of relevant NSR’s as
they pertain to individual properties is given in Auteco ASX
releases dated: 28/01/2020 and 17/02/2020. An additional
600 claims were staked by Auteco subsidiary, Revel Resource
(JV) Ltd. and are subject to the terms of the Earn-In-
Arrangement.
• Auteco has entered into an agreement to acquire up to 80%
of the Pickle Crow Gold Project from First Mining, and as of
31 May 2021 has completed stage 1 Earn-in obligations
under the agreement. AS the result of completing the Stage
1 Earn-in obligations, Auteco has a 51% equity interest in the
Pickle Crow Gold Project.
Stage 2 Earn-In: Auteco can earn a further 19% interest in the
project by: Expending exploration expenditure in the 24-
month period commencing on the date that Auteco satisfies
the Stage 1 Earn-in of C$5,000,000 ('Expenditure Payment
3'); and Within 90 days of completing expenditure Payment
3, making a cash payment to Seller in the amount of
C$1,000,000 ('Expenditure Payment 4'), (together the 'Stage
2 Earn In'). Also, Buy In: May buy a further 10% interest by
paying C$3,000,000 to First Mining; and a 2% Net Smelter
Return granted after the Stage 2 Earn-In. Further details are
included in ASX releases (17/02/2020, 13/03/20 and
18/3/21).
• For a more complete discussion of type, reference
name/number, location and ownership including agreements
or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests,
historical sites, wilderness or national park and
environmental settings relating to the Pickle Crow Project
please refer to document ‘Updated Mineral Resource
Estimate for the Pickle Crow Property, Patricia Mining
Division, Northwestern Ontario, Canada’ NI-43-101 dated 15
June 2018 and available from System for Electronic
Document Analysis and Retrieval (www.sedar.com) for First
MiningInc.

Page | 19

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Criteria JORC Code explanation Commentary
Exploration done by • Acknowledgment and appraisal of exploration by • The first government survey of the area was performed by
other parties other parties. William McInnes of the Geological Survey of Canada (GSC)
along the Crow River from 1903 to 1905. Prospecting in the
Pickle Lake area commenced in 1926. In 1927, Lois Cohen of
Haileybury formed a prospecting group and early that winter
sent Alex and Murdock Mosher in to stake the first claims
(December 1927) on what ultimately became the Central
Patricia Gold Mines property. These claims were optioned by
F.M Connell and Associates in August 1928 and Central
Patricia Gold Mines Limited was incorporated on 19
February, 1929. Diamond drilling commenced at Central
Patricia in February 1929 and production in March 1930. The
Central Patricia discovery paved the way from exploration in
the region which led to the discovery and initial drilling
(1929) of the first Pickle Crow orebody the No.1 Vein by
Northern Aerial Mineral Exploration Limited, a company set
up in 1928 by J.E. (Jack) Hammell. In 1929 gold was also
discovered by Albany River Miners Ltd. (Albany River) at the
No.16 vein on the Albany River claims to the east of the then
Pickle Crow property. Northern Aerial was acquired by Pickle
Crow Gold Mines Limited (PCGM) in 1934 with Jack Hammell
continuing as president. Production from the Pickle Crow
mine began on 17 April, 1935. Albany river sank the Albany
shaft to a depth of 190m between 1933 and 1938 and
completed extensive underground development. Winoga
Patricia Gold Mines was created in 1936 and drilled 73
surface diamond drill holes on a pie-shaped property located
between PCGM’s holdings and the Albany River Mines
ground to the east. A mine shaft was subsequently sunk on
the property in 1938. That same year, PCGM took over
ownership of both Albany River Mines and Winoga Patricia
Gold Mines through a new company called Albany River Gold
Mines Ltd. It is believed that the Winoga Patricia Gold Mines
shaft later became the No.3 Shaft of the Pickle Crow
operation. The Cohen- MacArthur zone, located 2km to the
north of the developing Pickle Crow mine, was discovered in
1933. A total of 14 surface diamond holes were drilled at
Cohen-MacArthur in the winter of 1936. This property was
optioned by PCGM in 1938, With the acquisition of the
Cohen-MacArthur claims, PCGM became one of the largest
land holders in the Pickle Lake area. The GSC completed a
regional synthesis of the Pickle Crow Greenstone belt during
this period as well. Ground and airborne geophysical surveys
have been completed over all or parts of the Pickle Crow
property at various times during its early history. A dip-
needle survey completed in 1936 on the Pickle Crow
property was useful in tracing out the bands of the iron
formation. A detailed magnetic survey was carried out over
the property by Teck (or its predecessor companies) around
1960. The property then underwent a series of ownerships
until it became wholly owned by Teck in 1971. The property
then sat dormant until 1973 when Pickle Crow Exploration
Ltd. Reviewed the economics of reopening the mine. In 1978,
a merger between Pickle Crow Explorations Ltd. And four
other companies saw Teck’s ownership reduced to 44.6%
and a new exploration company called Highland-Crow
Resources Ltd. Highland Crow went on to option the
property to Galant Gold Mines Limited in 1979. Gallant
performed a VLF_EM geophysical survey and drilled 47
surface diamond drill holes for 7,356m. The only known soil
geochemical survey done on the Pickle Crow property was
completed for Gallant in 1983. Soil values ranged from 10 to
12,000ppb with the high values attributed to mine tailings
and cultural anomalies. In 1983 thepropertyreturned to

Page | 20

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Criteria JORC Code explanation Commentary
Highland-Crow. Noramco Mining Corp. bought Highland-
Crow in 1988. Between 1985 and 1987 Highland-Crow
completed line-cutting, magnetometer and IP, geophysical
surveying, geological mapping, surface trenching, diamond
drilling and environmental baseline studies. Noramco drilled
surface exploration holes, completed geophysical surveys
and commenced dewatering of the No.1 shaft. Noramco
drilled 286 surface diamond drill holes for 46,189m and 79
underground holes for 9,341m. Noramco also commissioned
Historic (non-compliant) Resource Estimates. In 1994
Noramco changed its name to Quest Capital. Quest assigned
its interest to Pickle Crow Resources Inc. A total of 4 surface
diamond drill holes for 2,287m were completed. Quest then
sold its interest to Wolfden Resource Inc who entered into an
option agreement with Jonpol Explorations Ltd. Who drilled
18 surface diamond holes for 2,173.5m. Wolfden also
entered into a surface mining agreement with Cantera
Mining Limited in 2000. Canterra commenced building a
225tpd gravity mill on site in 2002 but was placed into
receivership in 2004. In 2006 Wolfden transferred Pickle
Crow to Premier Gold Mines Ltd. Before the property was
sold to PC Gold in 2007. PC Gold then explored the property
completing 184 holes for 62,968m by 2011 and 173 holes for
35,840.4m from 2011 to 2014 before commissioning an NI-
43-101 compliant Resource Estimate.
Geology • Deposit type, geological setting and style of • The Pickle Crow Gold Deposit is considered to be an Archean
mineralisation. low-sulphide gold-quartz vein type deposit, also known as
shear-hosted gold, Archean quartz-carbonate vein gold
deposits, Archean lode gold, Archean mesothermal gold
deposits or simply orogenic gold. The deposit occurs
primarily within mafic volcanics and banded iron formation
(BIF) units in the Pickle Crow assemblage of the Pickle Lake
Greenstone belt in the Uchi Lake Sub province of the
Superior Craton of the Canadian Shield.
Drill hole Information • A summary of all information material to the • With regards to the drilling supporting the Resource, please
understanding of the exploration results refer to Appendix A in the ASX releases as indicated in this
including a tabulation of the following release.
information for all Material drill holes: • With regards to new drilling and in accordance with ASX
o
easting and northing of the drill hole collar		 listing rule 5.7.2, please refer to Appendix A in this release.
o
elevation or RL (Reduced Level – elevation		 The new drilling has not been included in the current
above sea level in meters) of the drill hole Resource estimate.
collar
o
dip and azimuth of the hole
o
down hole length and interception depth
o
hole length.
• If the exclusion of this information is justified on
the basis that the information is not Material and
this exclusion does not detract from the
understanding of the report, the Competent
Person should clearlyexplain whythis is the case.
Data aggregation • In reporting Exploration Results, weighting • All drill hole intersections are reported above a lower cut-off
methods averaging techniques, maximum and/or grade of 0.5g/t Gold or 1g/t as indicated, with no upper cut
minimum grade truncations (eg cutting of high off grade has been applied. A maximum of 1m internal waste
grades) and cut-off grades are usually Material was allowed. Tabulated results are presented in previous ASX
and should be stated. announcements as indicated in the body of this release and
• Where aggregate intercepts incorporate short in Appendix A of this release)
lengths of high-grade results and longer lengths
of low-grade results, the procedure used for such
• Metal equivalent values are not used
aggregation should be stated and some typical
examples of such aggregations should be shown
in detail.
• The assumptions used for any reporting of metal
equivalent values should be clearlystated.

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Criteria JORC Code explanation Commentary
Relationship between • These relationships are particularly important in • All intersections reported in the body of this release are
mineralisation widths the reporting of Exploration Results. down hole
and intercept lengths • If the geometry of the mineralisation with • The majority of the drill holes are drilled as close to
respect to the drill hole angle is known, its nature
orthogonal to the plane of the mineralised lodes as possible.
should be reported. A number of drill holes have intersected the mineralisation at
• If it is not known and only the down hole lengths high angles.
are reported, there should be a clear statement • Only down hole lengths are reported.
to this effect (eg ‘down hole length, true width
not known’).
Diagrams • Appropriate maps and sections (with scales) and • Maps and sections are included in the body of this release as
tabulations of intercepts should be included for deemed appropriate by the competent person.
any significant discovery being reported These • See images below for 3D location of AUT and historic
should include, but not be limited to a plan view drillholes.
of drill hole collar locations and appropriate
sectional views.
Balanced reporting • Where comprehensive reporting of all • Any significant higher-grade zones in historical drilling
Exploration Results is not practicable, quoted in this release have been reported in previous ASX
representative reporting of both low and high announcements as highlighted in the body of this release as
grades and/or widths should be practiced to well as Appendix A of this release)
avoid misleading reporting of Exploration Results.
• All results above 0.5g/t lower cut-off or 1g/t quoted in this
release have been reported in previous ASX announcements
as indicated in the body of this release as well as Appendix A
of this release)
Other substantive • Other exploration data, if meaningful and • Appropriate plans are included in the body of this release.
exploration data material, should be reported including (but not
limited to): geological observations; geophysical
survey results; geochemical survey results; bulk
samples – size and method of treatment;
metallurgical test results; bulk density,
groundwater, geotechnical and rock
characteristics; potential deleterious or
contaminatingsubstances.
Further work • The nature and scale of planned further work • Auteco Minerals Limited is currently conducting drill testing
(e.g. tests for lateral extensions or depth of additional lodes as well as step out and infill drilling of
extensions or large-scale step-out drilling). existing lodes to further enhance the resources quoted in
• Diagrams clearly highlighting the areas of this release. More information is presented in the body of
possible extensions, including the main this report.
geological interpretations and future drilling • Diagrams in the main body of this release show areas of
areas, provided this information is not possible resource extension on existing lodes. The company
commercially sensitive. continues to identify and assess multiple other target areas
within thepropertyboundaryfor additional resources.

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Isometric Image showing all drill holes completed by Auteco Minerals since March 2020. Gold assays greater than 2g/t are shown in pink. Historic underground development is shown in yellow.

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Isometric Image showing all historical drill holes completed before Auteco Minerals became project managers in March 2020. Gold assays greater than 2g/t are shown in pink. Historic underground development is shown in yellow.

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Section 3 Estimation and Reporting of Mineral Resources

Criteria JORC Code explanation Commentary
Database integrity • Measures taken to ensure that data has not been
corrupted by, for example, transcription or keying
errors, between its initial collection and its use for
Mineral Resource estimation purposes.
• Data validation procedures used.		 • The CP for the Mineral Resource estimates (MRE) has not
undertaken an independent data verification of the data
supplied in the databases pertaining to this project. Data
compilation and verification was undertaken by company
employees and independent consultants to the company,
and the Cube accepts that the work was diligently
undertaken and does not represent a material risk to the
project.
• The drilling data was supplied to Cube in a MS Excel format.
This data has been relied upon as the source data for the
June 2021 MRE work. Cube compiled the data for importing
into a standard resource database in MS Access. Validation
checks completed by the Cube included the following work:
o
Maximum hole depths check between sample/logging
tables and the collar records
o
Checking for sample overlaps
o
Reporting missing assay intervals
o
3D visual validation in Surpac v6.9 of co-ordinates of
collar drill holes to topography and UG workings
drilling locations
o
3D visual validation of downhole survey data to
identify if any inconsistencies of drill hole traces.
• No material issues were identified by Cube. No significant
errors due to data corruption and transcription have been
found.
Site visits • Comment on any site visits undertaken by the
Competent Person and the outcome of those
visits.
• If no site visits have been undertaken indicate why
this is the case.		 • Brian Fitzpatrick (Principal Geologist at Cube Consulting)
who is the Competent Person for the June 2021 MRE has
not undertaken a site visit to date.
• Due to the worldwide travel restrictions currently in place
because of the COVID-19 pandemic, it was not possible for
the CP to propose undertaking a site visit prior to the
completion of the June 2021 MRE. The CP has relied upon
information provided by Auteco Geologists, and data room
documentationprovided byAuteco.
Geological
interpretation		 • Confidence in (or conversely, the uncertainty of)
the geological interpretation of the mineral
deposit.
• Nature of the data used and of any assumptions
made.
• The effect, if any, of alternative interpretations on
Mineral Resource estimation.
• The use of geology in guiding and controlling
Mineral Resource estimation.
• The factors affecting continuity both of grade and
geology.		 • Mineralisation domain interpretations and 3DMs were
provided to Cube by Auteco for use in the June 2021 MRE.
• The confidence in the geological interpretation is high as a
result of the current knowledge within the limits of the
historical Pickle Crow UG workings (1935-1966) and
diamond drilling from surface and UG drilling extending out
from the workings. Interpreted extensions of mineralised
quartz veins have been established through production
history and available mapping and UG sampling records.
This information has been used to guide and control the
mineralisation interpretation and estimation factors.
Mineralisation trends are open along strike and down
plunge, so continuous review and understanding of
lithological and structural controls are required to further
increase the degree of precision and accuracy of the
geological interpretation beyond the limits of the current
information.
• The data used for the June 2021 MRE was comprised of
surface and UG diamond drill holes and underground (UG)
chip samples. Surface trench sampling results were not
used in the June 2021 MRE. UG drilling and sampling
locations have not been verified and UG chip sampling
intervals were estimated over the true width of the
mineralised quartz vein structures. Most of this data is in
stoped out areas and is not material to the depleted
Resource Estimate.
• Previous interpretations have separated vein structures and
domains into thin mineralised envelopes or interpreted
variable thickness waste or dilution haloes around the in-
situ mineralisation. Vein thicknesses were determined from
the 3D wireframe interpretations and interpolating these
thicknesses into the block model. Blocks with interpolated

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Criteria JORC Code explanation Commentary
thicknesses less than 1 m were then diluted to 1 m of
thickness and reported above the cut-off grade as diluted
tonnes and grade. The effect of this method resulted in the
reporting of a diluted grade estimate taking into account a
minimum mining width of 1 m.
• The current geological interpretation is based on
observations from logged diamond drill core, and the visual
mapping in outcrop and underground of vein quartz, BIF
hosted, and shear hosted zones within the host sequence.
o
The most prominent and continuous style of
mineralisation is the auriferous quartz vein hosted
mineralisation in several steeply dipping NE plunging
zones – mined over the life of the Pickle Crow UG as
the #1, 2, 5, 6, 7, 8 and 9 Veins.
o
The second style of mineralisation at Pickle Crow is the
gold-bearing BIF hosted type adjacent to the #1 and #5
vein mineralisation. Auriferous mineralisation
comprises stringers and discontinuous lenses of quartz
within sulphide replacement iron formation.
Mineralisation is generally broader in thickness (3m-
10m) but has been logged and mapped as both
contorted and tight to isoclinal folded following the
trend of the quartz vein hosted mineralisation.
o
The shear zone-hosted type of mineralisation has been
recorded in the Albany Shaft area. The mineralisation
is described as broad, highly complex zones (both
lithologically and structurally) of shearing with
discontinuous quartz veining, and sulphidic BIF hosted
zones.
o
For the June 2021 MRE, interpretations for 16 domains
were updated, and there were 11 new domains added
to the Vein model inventory: four Quartz Vein hosted
mineralisation zones, and 7 mineralisation domains
interpreted in the Albany Shaft area.
• Grade distribution plots were created in Surpac to assist
with assessing grade continuity along strike, down dip, and
to assess if any down plunge component was apparent.
Most major mineralised vein structures appear to plunge to
the NE and currently open at depth. There are no definitive
interpreted major fault structures and dyke intrusives
modelled in 3D available for the June 2021 MRE. but
available surface geology plans show several porphyry
sill/dyke intrusives and minor NW fault structures. Tight to
isoclinal folding within the Pickle Crow deposit area has
been well recorded from fold structures clearly visible in
the BIF units. Intrusives, fault structures and complex
folding are likely to have influence over grade continuity at
a local scale.
• For the June 2021 MRE update, a glacial overburden
surface was modelled across the resource area where
geologically logged within the surface drill holes. The
thickness of the overburden varies from 0m thick (where
disturbed by old surface mining activities, to 20m thick
within an apparent trough along the footwall of the main
mineralisation trend. AS all of the overburden is waste
material, there has been a minor depletion of previously
stated mineralisation volumes.
Dimensions • The extent and variability of the Mineral Resource
expressed as length (along strike or otherwise),
plan width, and depth below surface to the upper
and lower limits of the Mineral Resource.		 • The Mineral Resource area has overall dimensions of
3,800m strike (in a NE direction), 800m width and has been
interpreted to extend to 1,800m below surface. Multiple
lode systems exist within this area, predominantly within
and in close proximity to the historical Shaft #1 and Shaft
#3 workings.
Estimation and
modelling techniques		 • The nature and appropriateness of the estimation
technique(s) applied and key assumptions,
including treatment of extreme grade values,
domaining, interpolation parameters and
maximum distance of extrapolation from data		 • The estimate has been produced by 3D modelling of the
lode systems and block model grade estimation using a
combination of 2D estimation modelling approach and 3D
dynamic interpolation (DK), both using Ordinary Kriging
(OK)or Inverse Distance to thepower of 2(ID2):

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Criteria JORC Code explanation Commentary
points. If a computer assisted estimation method
was chosen include a description of computer
software and parameters used.
• The availability of check estimates, previous
estimates and/or mine production records and
whether the Mineral Resource Estimate takes
appropriate account of such data.
• The assumptions made regarding recovery of by-
products.
• Estimation of deleterious elements or other non-
grade variables of economic significance (e.g.
sulphur for acid mine drainage characterisation).
• In the case of block model interpolation, the block
size in relation to the average sample spacing and
the search employed.
• Any assumptions behind modelling of selective
mining units.
• Any assumptions about correlation between
variables.
• Description of how the geological interpretation
was used to control the Resource Estimates.
• Discussion of basis for using or not using grade
cutting or capping.
• The process of validation, the checking process
used, the comparison of model data to drill hole
data, and use of reconciliation data if available.		 o
The 2D estimation approach using OK was deemed
appropriate for the very narrow, linear and continuous
zones hosted by quartz veins. Interval composites
were generated for the mineralised lode, which were
then weighted by their respective widths to calculate
an accumulation variable. The accumulation variable
for gold was then used for variogram analysis and 2D
interpolation of gold grades. The estimated 2D block
values were then exported back into 3D space.
o
Several quartz vein hosted domains show ribbon-like
structures and although the overall dip and dip
direction of most of the lodes are consistent, there are
enough changes in geometry to require locally varying
search ellipse and variogram directions. The dynamic
anisotropy search feature in Surpac was used in which
the search neighbourhood ellipse dip and dip direction
are defined separately for each block approximating
the orientation of each of the mineralised zones
o
The influence of extreme grade values was reduced by
grade capping where required. The grade capping
levels were determined using a combination of grade
capping analysis tools (grade histograms, log
probability plots and CVs). Grade capping was
reviewed and applied on a domain basis.
o
The primary estimation domains are based on the
geological wireframing of quartz veins and BIF hosted
mineralisation within the Pickle Crow Shear Zone and
additional quartz vein and shear zone domains.
o
Drill hole sample data was flagged using domain codes
generated from 3D mineralisation domains. Sample
data was composited over the full downhole interval.
There were consequently no residuals. Intervals with
no assays were assigned background grades for the
compositing routine as these un-assayed intervals in
the drill holes were assumed to be waste.
o
_Interpolation and Search Parameters -_For mineralised
domains estimated using 2D OK method, variogram
ranges and search distances were defined in a rotated
horizontal plane. For the 3D DK method, variogram
modelling was conducted to provide nugget, sill and
range for 3 directions. Variogram maps were initially
analysed in plan, east-west and north-south section to
confirm continuity trends and to refine parameters for
experimental variogram calculation. Interpolation
parameters were set to a minimum number of 4
composites and a maximum number of 16 composites
for the estimate. Maximum search ellipse of 200
metres was used.
o
The maximum distance of extrapolation from data
points was half the drill spacing.
o
Computer software used for the modelling and block
construction was Surpac v.6.9. Snowden Supervisor
v.8.12 was used to prepare variogram and search
parameters for specific domains.
• Check Estimates/ previous estimates/mine production:
o
For the June 2021 MRE, ID2 estimation was used as a
check estimate against the OK estimation, with no
significant variations in global estimate results.
o
A previous MRE was completed by Cube (August 2020)
using the same methodology as reported for June
2021.
o
A previous MRE was reported by Micon (2018) with an
effective date of 31 August 2016, for First Mining Gold,
the owner of the Pickle Crow Deposit at that time. The
Resource Estimate was carried out using either OK
method or inverse distance squared estimation (ID2)
method (for estimation domains where data was
limited), based on interpreted narrow high-grade
zones. Overall,the lithological controls and

Page | 26

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Criteria JORC Code explanation Commentary
mineralisation trends were similar to the 2020
interpretation. The main differences included: the
application of a minimum width of 1m applied to the
domains for the 2016 model; 2D and DK estimation
method applied for the 2021 model; Minor differences
in grade estimation and search parameters. Previous
work by other consultants in 2011 and 2016 involving
data compilation and verification/validation of the
historical UG drilling and sampling, along with the
compilation of mapping, UG development and stope
outlines, and early surface drilling provided support for
the completion of the 2021 model and estimation
work.
o
Pickle Crow Gold Mines (PCGM) acquired the project
in 1934 and commercial production at the mine began
in 1935. The Pickle Crow mine operated until 1966
during which time it produced 1,446,214 troy ounces
of gold and 168,757 troy ounces of silver from
3,070,475 tons of ore milled (at an average grade of
0.47 oz/ton or 16.14 g/t).
• No by-product recoveries were considered
• Estimation of deleterious elements was not completed for
the MRE. There has been insufficient multi-element
assaying completed in order to ascertain any effects of
potential deleterious elements. Arsenic is known to be
associated with some gold mineralisation but was not
estimated for this model.
• The parent block size used is 40mE, 5mN and 40m RL and
sub-blocked to 2.5mEN x 0.625mN x 2.5mRL. The data
spacing has relied on a combination of recent and historic
surface diamond drilling, UG drilling and UG chip samples
with no particular common sample spacing.
• No assumptions of selective mining units were made.
• No correlation analysis between gold and other elements
has been assessed for the current model. Only gold and
silver assays were provided for the June 2021 MRE.
• The mineralised domains acted as a hard boundary to
control the June 2021 MRE. The domain interpretations
were based on historical UG mining knowledge of the
steeply dipping quartz veining known to host gold
mineralisation from drill logging and descriptions of
mapping and sampling.
• Gold grade distributions within the estimation domains
were assessed to determine if high grade cuts or distance
limiting should be applied on a domain by domain basis.
• Block model validation was conducted by the following
means:
o
Visual inspection of block model estimation in relation
to raw drill data on a section by section basis.
o
Volumetric comparison of the wireframe/solid volume
to that of the block model volume for each domain.
o
A global statistical comparison of input and block
grades, and local composite grade (by northing and RL)
relationship plots (swath plots), to the block model
estimated grade for each domain.
o
Comparison the cut grade drill hole composites with
the block model grades for each lode domain in 3D.
o
No selective UG mining records assigned to stopes or
by Vein Number identification are currently available
and therefor no reconciliation analysis has been
conducted.
Moisture • Whether the tonnages are estimated on a dry
basis or with natural moisture, and the method of
determination of the moisture content.		 • The tonnages are estimated on a dry basis. Moisture was
not considered in the density assignment.
Cut-off parameters • The basis of the adopted cut-off grade(s) or quality
parameters applied.		 • The quartz vein style mineralised domains are reported at a
3.5g/t gold lower cut-off which is deemed acceptable based
on approximate industrycostings associated with the likely

Page | 27

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Criteria JORC Code explanation Commentary
mining method (narrow vein underground mining
methods).
• The Banded Iron Formation style mineralised domains are
reported at a 2.0g/t gold lower cut-off which is deemed
acceptable based on approximate industry costings
associated with the likely mining method (bulk
underground miningmethods or openpit mining).
Mining factors or
assumptions		 • Assumptions made regarding possible mining
methods, minimum mining dimensions and
internal (or, if applicable, external) mining dilution.
It is always necessary as part of the process of
determining reasonable prospects for eventual
economic extraction to consider potential mining
methods, but the assumptions made regarding
mining methods and parameters when estimating
Mineral Resources may not always be rigorous.
Where this is the case, this should be reported
with an explanation of the basis of the mining
assumptions made.		 • No rigorous application has been made of minimum mining
width, internal or external dilution for interpreted
mineralisation domains used for the June 2021 MRE.
• Underground (UG) mining has previously been assumed to
be the main mining method based on historical mining
activity at Pickle Crow. No assumptions on UG mining
methods have been made.
• 3DM modelling and block construction of a mineralised
waste halo have been created with aim of preparing a
suitable model for open pit mine design and pit
optimisation, with a minimum mining width of 2m.
Metallurgical factors or
assumptions		 • The basis for assumptions or predictions regarding
metallurgical amenability. It is always necessary as
part of the process of determining reasonable
prospects for eventual economic extraction to
consider potential metallurgical methods, but the
assumptions regarding metallurgical treatment
processes and parameters made when reporting
Mineral Resources may not always be rigorous.
Where this is the case, this should be reported
with an explanation of the basis of the
metallurgical assumptions made.		 • No metallurgical factors have been considered as part of
the June 2021 MRE
• Metallurgical test work was completed by previous
operators on the high-grade vein mineralisation at Pickle
Crow and are summarised as follows:
o
Total gold extractions to a maximum exceeding 99%
through a combination of gravity and 48-hour cyanide
leach bottle rolls
o
Gravity recoveries of up to 92.4% of total gold
recovered by the Knelson Concentrator prior to
cyanide leaching.
• These results are in line with the historical performance of
the Pickle Crow Gold mine which operated between 1935
and 1966 with recoveries averaging slightly over 98%
recovered through a combination of gravity and
cyanidation.
Environmental factors
or assumptions		 • Assumptions made regarding possible waste and
process residue disposal options. It is always
necessary as part of the process of determining
reasonable prospects for eventual economic
extraction to consider the potential environmental
impacts of the mining and processing operation.
While at this stage the determination of potential
environmental impacts, particularly for a
greenfields project, may not always be well
advanced, the status of early consideration of
these potential environmental impacts should be
reported. Where these aspects have not been
considered this should be reported with an
explanation of the environmental assumptions
made.		 • No environmental factors have been considered as part of
the June 2021 MRE. No assumptions have been made in
regard to possible waste and process residue disposal
options or the potential environmental impacts of the
mining and processing operation. However, the project is
the site of historic mining activity, located within an existing
mineral field
Bulk density • Whether assumed or determined. If assumed, the
basis for the assumptions. If determined, the
method used, whether wet or dry, the frequency
of the measurements, the nature, size and
representativeness of the samples.
• The bulk density for bulk material must have been
measured by methods that adequately account for
void spaces (vugs, porosity, etc), moisture and
differences between rock and alteration zones
within the deposit.
• Discuss assumptions for bulk density estimates
used in the evaluation process of the different
materials.		 • Bulk density (BD) assignment was determined by laboratory
BD sampling.
• PC Gold completed BD measurements on 2,602 samples of
mineralised and unmineralised diamond drill core and
select grab samples from old stockpiles onsite from the
Pickle Crow property (Micon, 2018). The majority of the
samples were measured by Accurassay of Thunder Bay,
Ontario using the water displacement method. BD was
assigned within the block model attribute ‘density’
according to rock types: Vein Quartz = 2.7; BIF Unit = 3.21;
Waste Rock =2.83.
• There were no considerations required for BD based on
weathering profiles or porosity, as the mineralised quartz
veins domains interpreted for this Resource Estimate lie
entirelywithin theprimaryor fresh sulphide zone.
Classification • The basis for the classification of the Mineral
Resources into varying confidence categories.		 • The Mineral Resource has been entirely classified as
Inferred. The Pickle Crow Deposit has been subject to
miningsince 1935 and historical workings demonstrate

Page | 28

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Criteria JORC Code explanation Commentary
• Whether appropriate account has been taken of all
relevant factors (i.e. relative confidence in
tonnage/grade estimations, reliability of input
data, confidence in continuity of geology and
metal values, quality, quantity and distribution of
the data).
• Whether the result appropriately reflects the
Competent Person’s view of the deposit.		 grade and geological continuity. When assessing the
combination of current drilling, historic drilling and
underground chip samples used in the June 2021 MRE, no
particular common sample grid exists. While data quality
control is lacking for the majority of historic UG drilling and
sampling used, a moderate amount of well controlled and
industry standard recent drilling and re-sampling provides
some validation of the information to support the
estimation and classification of a Mineral Resource.
• The June 2021 MRE results appropriately reflects the
Competent Person’s view of the deposit.
Audits or reviews • The results of any audits or reviews of Mineral
Resource Estimates.		 • Internal peer review has been completed by Cube which
verified the technical inputs, methodology, parameters and
results of the estimate.
Discussion of relative
accuracy/ confidence		 • Where appropriate a statement of the relative
accuracy and confidence level in the Mineral
Resource Estimate using an approach or procedure
deemed appropriate by the Competent Person.
For example, the application of statistical or
geostatistical procedures to quantify the relative
accuracy of the resource within stated confidence
limits, or, if such an approach is not deemed
appropriate, a qualitative discussion of the factors
that could affect the relative accuracy and
confidence of the estimate.
• The statement should specify whether it relates to
global or local estimates, and, if local, state the
relevant tonnages, which should be relevant to
technical and economic evaluation.
Documentation should include assumptions made
and the procedures used.
• These statements of relative accuracy and
confidence of the estimate should be compared
with production data, where available.		 • It is the CP’s opinion that reported Inferred Resources are
appropriate for the level of accuracy and confidence in the
June 2021 MRE for Pickle Crow. This is in part based on the
accuracy and precision of the assay determinations in the
UG historical data which are unknown and only partially
validated. There also exists potential errors in relation to
the chip sample locations and the accuracy of the digitised
UG workings and UG hole collar locations. In spite of these
inaccuracies, the grade and tonnage discrepancies are
minimal as much of these areas have not been stoped out,
and the depleted material margin of error is within
reasonable limits for Inferred Resource category.
• Modelling for the June 2021 MRE has provided an
understanding of the global grade distribution but not the
local grade distribution The Mineral Resources constitute a
global Resource Estimate.
• Relative accuracy and confidence of the Inferred Resource
Estimate is supported by a successful history of commercial
production at the Pickle Crow Gold Mine which produced
1.5 Million oz @ 16g/t Gold between 1935 and 1966.

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Isometric image showing drill data density and distribution of the Inferred Mineral Resource block model. Blocks are coloured by gold grade. Grid spacing is 500m by 500m by 500m.

Page | 29

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