MINERAL RESOURCES AND ORE RESERVES

Table 1. Hard Rock Ore Reserve Statement for Amur Zoloto, Far East Russia, by SRK Consulting (Russia) Limited as of 1 July 2020 (1)

Hard Rock Source

Tonnage

Au Grade Au Metal Ag Grade Ag metal
Mt g/t t koz g/t t

koz

Probable Reserves

Yubileyniy

Krasivoe UG

3.1

6.3 19.8 640 2.8 8.7

279

Total Yubileyniy

3.1 6.3 19.8 640 2.8 8.7

279

Perevalnoe

Brekchiyevaya OP

0.2 6.8 1.4 45 25.9 5.2 167
Brekchiyevaya UG

0.2

7.8 1.3 55 21.4 4.3

138

Brekchiyevaya HL

0.3

1.3 0.4 15 16.8 5.0

162

Stockpiles HL

0.4

1.5 0.5 17 7.6 3.0

98

Priyatnoe

0.1

5.0 0.7 24 62.0 6.2

199

Priyatnoe HL

0.16

1.2 0.2 6.2 46.3 7.4

238

Total Perevalnoe 1.4 3.3 4.5 162 22.9 31.1

1,002

Malyutka

Malyutka

9.3 1.2 11.2

360

Total Malyutka

9.3

1.2 11.2

360

     
Total Hard Rock

13.8

2.6 35.5 1,162 2.9 39.8

1,281

Table 2. Placer Reserve Statement for Amur Zoloto, Far East Russia, by SRK Consulting (Russia) Limited as of 1 July 2020 (1)

Placer Source

Volume Au Au Metal
000’m3 g/m3 t

koz

Probable Reserves – Placers

Lower Buor Creek

133

0.6 0.1

2.2

Hayunda and Chohcho creek

426 1.5 0.6

20

Upper Kagkan and Chudnyy

113

0.6 0.1

3.2

Total Placer

672 1.2 0.8

25.4

Table 3. Hard Rock Mineral Resource Statement for Amur Zoloto, Far East Russia, by SRK Consulting (Russia) Limited as of 1 July 2020 (2)

Site

Tonnage

Au grade Au metal Au metal Ag grade Ag metal

Ag metal

Mt

g/t t koz g/t t

koz

Open pit Measured

Perevalnoe CIP 0.3 9.0 2.7 86 59.7 17.9 576
Perevalnoe Heap Leaching 2.2 1.2 2.7 85 23.4 51.5 1,662
Total Open Pit Measured 2.5 2.2 5.4 171 27.8 69.4 2,238

Open pit Indicated

Perevalnoe CIP

0

11.1 0.2 6 24.3 0.4

14

Perevalnoe Heap Leaching

0.1

2.0 0.2 6 29.0 2.9

95

Malyutka Heap Leaching

9.2

1.4 12.8 411 1.2 11.4

366

Total Open Pit Indicated

9.3

1.4 13.2 423 1.6 14.7

475

Underground Measured

Perevalnoe CIP

0.3 9.8 2.6 84 23.3 6.2

201

Total Underground Measured

0.3

9.8 2.6 84 23.3 6.2

201

Underground Indicated

Perevalnoe CIP

0.1 5.0 0.5 15 16.0 1.6

52

Yubileyniy CIP

3.7 6.5 24.1 777 2.4 8.7

280

Total Underground Indicated

3.8

6.5 24.6 792 2.7 10.3

332

Open pit Measured + Indicated

CIP

0.3

9.7 2.9 92 59.7 18.3

589

Heap Leaching

11.5

1.4 15.7 502 5.7 65.8

2,123

Underground Measured + Indicated

CIP

4.1

6.6 27.2 876 4.0 16.5

533

Heap Leaching              

Total Measured + Indicated

CIP

4.4

6.8 30.1 968 7.9 34.8

1,122

Heap Leaching

11.5

1.4 15.7 502 5.7 65.8

2,123

Total Measured + Indicated

15.9

2.9 45.8 1,470 6.3 100.6

3,245

Inferred

Yubileyniy Underground CIP

1.7

5.6 9.6 308 2.0 3.4

108

Total Inferred

1.7

5.6 9.6 308 2.0 3.4

108

Total Measured + Indicated + Inferred

17.6

3.1 55.4 1,778 5.9 104

3,353

Table 4. Placer Mineral Resource Statement for Amur Zoloto, Far East Russia, by SRK Consulting (Russia) Limited as of 1 July 2020 (2)

Placer

Gravel

Au grade Au Metal
000’m3 g/m3 t

koz

Indicated resources

Lower Buor Creek

133

0.6 0.1

2.2

Hayunda and Chohcho creek

426

1.5 0.6

20

Upper Kagkan and Chudnyy

202

1.0 0.2

6.2

Kurun-Uryakh Creek – p. Iotkan

3,894

0.4 1.6

51.0

Total Indicated Resources

4,655

0.54 2.5

79.4

Inferred Resources

Lower Buor Creek

9

1.3 0.01

0.4

Creek Dzhemkiye

8

2.9 0.02

0.7

Total Inferred Resources

17

2.1 0.03

1.1

Total Resources

4,672 0.5 2.5

80.5

Krasny

Table 5. Mineral Reserve Statement for the Krasny Gold Deposit, Irkutsk Region, Russia, Micon International, February 18, 2018 (3)

JORC Reserves

Ore type

Tonnage (kt) Au grade (g/t) Au (kg)

Au (koz)

Krasny Probable

Oxide

3 031 1.06 3 203

103

Krasny Probable

Transition

2 536 1.02 2 598

84

Krasny Probable

Primary

1 775 1.24 2 198

71

Krasny Probable

 

7 342 1.09 7 999

257

Table 6. Mineral Resource Statement for the Krasny License area (inclusive of Mineral reserves), Irkutsk Region, Russia, Micon International, February 18, 2018 (4)

Category

Ore type

Tonnage (kt) Au grade (g/t) Au (kg)

Au (koz)

Krasny

Indicated Oxide

2 871

1.17 3 372

108

  Transition

2 424

1.14 2 770

89

  Primary

2 244

1.29 2 904

93

Indicated total  

7 539

1.20 9 045

291

           

Inferred

Oxide

582 0.95 555

18

  Transition

732

1.62 1 185

38

  Primary

17 201

2.07 35 631

1 146

Inferred total

18 515

2.02 37 371

1 202

         

Vostochny

Inferred

6 689

1.57 10 537

339

 
Grand total  

32 743

  56 953

1 832

Notes

(1) Notes:

  • Ore reserves include losses and dilution values
  • Tonnages and metal content have been rounded to the nearest 0.1 Mt, 0.1 t and koz.
  • Ore reserves estimation is based on mine schedule
  • Perevalnoe complex:
    • Brekchiyevaya Mining loss and dilution: 2.95% / 12.0%
    • Priyatnoe Mining loss and dilution: 12.9% / 44%
    • For open stoping, ore loss and dilution of 2% and 8% were calculated, for cut-and-fill stoping, 5% and 10%, and for pillar recovery, 20% and 25%
    • The Open pit reserves reports material falling into a final pit design above level 1080 m.
    • Gold price: 1,250 $/oz
    • Mining cost: 2.6 $/t
    • Transportation: 2 $/t
    • Processing cost: 12.4 $/t
    • General and Administration: 52 $/t
    • Reserve cut-off grade: HL – 0.5 g/t; OP CIP – 4.0 g/t, UG CIP – 6.0 g/t
    • Recovery: 94% for CIP and 61% for HL
  • Malyutka deposit: The Resource statement reports material falling into a final pit design based upon the following assumptions:
    • Mining loss & dilution allowed for in model block regularisation (av. loss 18.8%, dilution 19.4%);
    • Gold price: 1,200 $/oz
    • Ore Mining cost: 2.94 $/t
    • Waste Mining cost (no haul): 2.20 $/t
    • Waste Mining haulage: 0.74 $/t
    • Processing cost: 7.50 $/t
    • General & Administration: 6.40 $/t
    • Recovery: By formula (av. 67,5%)
    • Reserve cut-off grade: 0.74 g/t Au
  • Yubileyniy complex:
    • Mining loss and dilution: 3% / 15%
    • Gold price: 1,500 $/oz
    • Mining cost: 16 $/t
    • Transportation: 2 $/t
    • Processing cost: 42 $/t
    • General and Administration: 28 $/t
    • Reserve cut-off grade: 2.7 g/t Au
  • Placer deposits
    • Mining loss: zero
    • Gold price: 1,185 $/oz
    • Royalty: 6%
    • Stripping cost: 9 $/m3
    • Gravel mining and washing cost: 9 $/m3
    • General and Administration: 0 $/m3

(2) Notes:

  • Mineral Resources presented in Table 3 are inclusive of the Hard rock Ore Reserves shown in Table 1.
  • Tonnages and metal content have been rounded to the nearest 0.1 Mt, 0.1 t and koz.
  • Perevalnoe complex: Heap leaching cut-off grade of 0.5 g/t; CIP cut-off grade of 3.1 g/t.
  • Gold price for Yubileyniy and Perevalnoe – 1,500 $/oz
  • The Open pit resource reports material falling into a final pit design above level 1080 m.
  • Malyutka deposit: The Resource statement reports material falling into a final pit design based upon the following assumptions:
    • Mining Cost Ore 74 $/t
    • Mining Cost Waste 67 $/t
    • Mining Losses 8%
    • Mining Dilution 4%
    • Ore Processing Fixed Cost 5 $/t
    • G&A 67 $/t
    • Royalty 6%
    • Gold price 1,200 $/oz
    • Silver price 5 $/oz
    • Cut-off grade 40 g/t
    • Silver processing fixed recovery 10%
  • Yubileyniy complex: Krasivoe deposit: underground cut-off grade of 2.5 g/t;
  • Yubileyniy complex: Ulun deposit: The Resource statement reports material based upon the following assumptions:
    • Gold price 1,500 $/oz
    • Process recovery 87%
    • Processing cost 36 $/t
    • Cut-off grade 3 g/t Au
  • Mineral Resources presented are inclusive of Ore Reserves
  • Mineral resources are estimated based on the Russian Statutory 5GR inventory reporting

(3) Notes:

  • Reserves stated as contained within an economically minable open pit stated above a 0.4 g/t Au cut-off;
  • Pit optimization is based upon an assumed gold price of $1,250/oz, metallurgical recovery of 77.5% for oxide ore, 87.8% for transition ore and 88.5% for primary ore. The open-pit slope angle is between 40 and 52 degrees for different directions. The operating cost values are $1.38/t for waste mining, $1.82/t for ore mining, $6.95/t for ore processing, and G&A costs are $5.54/t at fixed 60 Rub/USD exchange rate;
  • Mining losses – 5%, ore dilution – 10%.
  • Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding;

(4) Notes:

  • Mineral Resources are not Ore Reserves and do not have demonstrated economic viability.  There is no certainty that all or any part of the Mineral Resources estimated will be converted into Ore Reserves estimate;
  • Resources stated as contained within a potentially economically minable open pit stated above a 0.4 g/t Au cut-off;
  • Pit optimization is based upon an assumed gold price of $1,250/oz, metallurgical recovery of 77.5% for oxide ore, 87.8% for transition ore and 88.5% for primary ore. The open-pit slope angle is between 40 and 52 degrees for different directions. The operating cost values are $1.38/t for waste mining, $1.82/t for ore mining, $6.95/t for processing, and G&A costs are $5.54/t;
  • Mineral resource tonnage and contained metal have been rounded to reflect the accuracy of the estimate, and numbers may not add due to rounding;
  • Mineral resources presented in Table 6 are inclusive of the reserves shown in Table 5.