Overview

The Yellowknife City Gold "YCG" project encompasses 800 sq. km of contiguous land immediately north, south and east of the City of Yellowknife in the Northwest Territories.

Being within 10 kilometres of the City of Yellowknife, the YCG project is close to vital infrastructure, including all-season roads, air transportation, service providers, hydro-electric power and skilled tradespeople.

The district-size property lies on the prolific Yellowknife greenstone belt, covering nearly 70 km of strike length on the southern and northern extensions of the shear system that hosts the Con and Giant gold mines, which have produced over 14 million ounces of gold (Giant mine: 8.1 Moz @ 16.0 g/t Au and Con mine: 6.1 Moz @ 16.1 g/t Au).

The Campbell Shear on the Newmont Option claims immediately south of the former high-grade Con Mine is one of Gold Terra’s highest priority targets to delineate higher-grade gold zones.

Gold Terra started exploration activities in 2013 on the initial 37 km² property and have now assembled a highly prospective district-scale land position, which overall has been relatively unexplored. Since acquisition, Gold Terra has carried out geological mapping and sampling, geochemical and geophysical surveys, and an extensive compilation of all prior exploration activities, including re-sampling of historic drill core. To date, Gold Terra has completed over 60,000 m of drilling within a 3 km radius that includes the Crestaurum, Barney, Sam Otto and Mispickel gold deposits.

In November 2019, Gold Terra released its initial NI 43-101 mineral resource estimate for these four deposits, which are just 12 km from the city of Yellowknife. The initial Inferred resource estimate of 735,000 ounces consisted of a pit constrained Inferred resource of 11.6 million tonnes averaging 1.4 g/t for 523,000 ounces of contained gold, and an underground Inferred resource of 1.2 million tonnes averaging 5.7 g/t for 212,000 ounces of contained gold.

In March, 2021, Gold Terra announced an updated mineral resource estimate for the Sam Otto, Crestaurum, Barney and Mispickel gold deposits (see Figure 1), which were previously reported in the initial November 2019 mineral resource estimate. The classification of the mineral resource estimate was completed in accordance with the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) Definition Standards incorporated by reference in National Instrument 43-101 (“NI 43-101”) and includes assay results from the 2020 drill program on the Sam Otto (9,622 metres) and Crestaurum (7,648 metres) deposits.

The 2021 mineral resource of 1,207,000 Inferred ounces consists of:

  • An Open pit constrained Inferred mineral resource of 21.8 million tonnes averaging 1.25 g/t for 876,000 ounces of contained gold, and an
  • An Underground Inferred mineral resource of 2.55 million tonnes averaging 4.04 g/t for 331,000 ounces of contained gold.

Figure 1 - Sam Otto, Crestaurum, Barney and Mispickel deposit location map.

The mineral resource estimates are summarized in the following table:

Mineral Resource Estimate for Yellowknife City Gold Project (Effective March 14, 2021)

Sam Otto/Dave’s Pond

Cut-off Grade
(g/t Au)

Tonnes

Grade
(Au g/t)

Contained
Gold Ounces

In-pit

0.4

20,403,000

1.10

721,000

Underground

1.4

948,000

1.75

53,000

Mispickel

Cut-off Grade
(g/t Au)

Tonnes

Grade
(Au g/t)

Contained
Gold Ounces

In-pit

0.4

893,000

2.22

64,000

Crestaurum

Cut-off Grade
(g/t Au)

Tonnes

Grade
(Au g/t)

Contained
Gold Ounces

In-pit

0.4

461,000

6.17

91,000

Underground

2.5

954,000

6.16

189,000

Barney

Cut-off Grade
(g/t Au)

Tonnes

Grade
(Au g/t)

Contained
Gold Ounces

Underground

2.0

646,000

4.30

89,000

Total Inferred Mineral Resources

Tonnes

Grade
(Au g/t)

Contained
Gold Ounces

In-pit

21,757,000

1.25

876,000

Outside-pit/UG

2,548,000

4.04

331,000

Grand Total Inferred Mineral Resources

24,305,000

1.54

1,207,000

  1. The classification of the current mineral resource estimate into an inferred mineral resource is consistent with current 2014 CIM Definition Standards - For Mineral Resources and Mineral Reserves
  2. All figures are rounded to reflect the relative accuracy of the estimate.
  3. All mineral resources are presented undiluted and in situ and are considered to have reasonable prospects for eventual economic extraction.
  4. Mineral resources which are not mineral reserves do not have demonstrated economic viability. An inferred mineral resource has a lower level of confidence than that applying to a measured mineral resource and an indicated mineral resource. The quantity and grade of reported inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to define these inferred mineral resources as a measured mineral resource or an indicated mineral resource and it is uncertain if further exploration will result in upgrading the inferred mineral resource to a measured mineral resource or an indicated mineral resource.
  5. It is envisioned that parts of the Sam Otto/Dave’s Pond, Mispickel and Crestaurum deposits may be mined using open pit mining methods. Open pit mineral resources are reported at a cut-off grade of 0.4 g/t Au within a conceptual pit shell.
  6. It is envisioned that parts of the Sam Otto/Dave’s Pond and Barney deposits may be mined using lower cost underground bulk mining methods whereas parts of the Crestaurum deposit may be mined by underground selective narrow vein methods. A selected cut-off grade of 1.4 g/t Au is used to determine the underground mineral resource for the Sam Otto/Dave’s Pond deposit, 2.0 g/t Au for the Barney deposit (assuming it can be accessed underground from the Crestaurum deposit), and 2.5 g/t for the Crestaurum Deposit.
  7. High-grade capping was done on 1 m composite data. Capping values of 55 g/t Au were applied to Crestaurum and 60 g/t Au for Mispickel.
  8. Specific gravity values were determined based on physical specific gravity test work from each deposit: Crestaurum at 2.85; Barney at 3.00; Sam Otto and Mispickel at 2.80.
  9. Cut-off grades are based on a gold price of US$1,500 per ounce, a gold recovery of 90%, processing cost of US$16.00 per tonne milled, and variable mining costs including US$2.00 for open pit and US$44.00 to US$79.00 for underground.
  10. The results from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic extraction” by an open pit and do not represent an attempt to estimate mineral reserves. There are no mineral reserves on the Property. The results are used as a guide to assist in the preparation of a mineral resource statement and to select an appropriate resource reporting cut-off grade.
  11. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
© 2021 Gold Terra Resource Corp.
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