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Lode Gold Resources Inc
Symbol LOD
Shares Issued 335,350,679
Close 2024-04-10 C$ 0.04
Market Cap C$ 13,414,027
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Lode Gold to investigate Fremont underground potential

2024-04-10 17:31 ET - News Release

Mr. Jonathan Hill reports


Lode Gold Resources Inc. (formerly Stratabound Minerals Corp.) has retained the services of Carlos Saban, an exploration and mine development geologist, to review the company's Fremont gold project and to develop a geological model for a potential high-grade underground gold mine.

Mr. Saban is skilled in reinterpreting complex mineralized systems. By carefully studying previously mined grades, reanalyzing cut-offs, and gaining new understanding of mineralization, structural and lithological controls, he has been able to systematically expand and upgrade resources in multiple brownfield projects, including work at the Uchucchacua and Recuperada districts, two of the top silver districts in Peru. Mr. Saban has been involved in the identification, delineation and modelling of several National Instrument 43-101 mineral resource updates, including PEA- (preliminary economic assessment) and PFS-compliant (prefeasibility study) multimillion-ounce precious metal deposits, during his career.

Lode Gold has tasked Mr. Saban to investigate Fremont as a potential high-grade underground mine. He will focus on understanding the mineralized veins and ore shoot plunges. This analysis will enable Lode Gold to better define brownfield exploration targets. He will also review Fremont's open-pit model, historical underground workings, previously mined grades, level plans and sections, sampling and production records, and drill hole database to establish the structural controls of high-grade gold mineralization at Fremont and to generate exploration targets extending beyond the limits of the current published resource.

Fremont began operations in or around 1860, with documented production of at least 125,825 ounces of gold at an average grade of eight grams per tonne (g/t) gold (Au). It was one of the many gold mines that was closed during the 1942 prohibition on gold mining due to the Second World War. At that time, gold was less than $40 (U.S.) per ounce (oz). Inevitably, the mine became a small-scale operation focused on high-grade (165 tonnes per day (t/d)). When the mine was shuttered by the government, Fremont was ramping up production and executing an extensive exploration program of the main Pine Tree and Josephine veins through drifting and underground diamond drilling. Work was focused on just two of the five known deposits.

Lode Gold acquired Fremont in an all-share transaction in August, 2021. Since then, the company has increased the indicated resource by 125 per cent and the inferred resource by 456 per cent; the project currently hosts an NI 43-101 resource of 1.16 million oz at 1.90 g/t Au within 19.0 million tonnes indicated, and 2.02 million oz at 2.22 g/t Au within 28.3 million tonnes inferred. At a sensitivity to the March 31, 2023, PEA at $2,000 (U.S.) per oz gold, the project has an after-tax NPV (net present value) (5 per cent) of $370-million (U.S.) and a 31-per-cent IRR (internal rate of return) over an 11-year LOM (life of mine).

The NI 43-101-compliant resource includes the Pine Tree-Josephine and Queen Specimen deposits and extends along 1,400 metres of combined strike, which represents only 35 per cent of the property length. This work envisioned mining the resource using open-pit methods. Of note, currently, the project mainly encompasses the upper levels, which are less than 200 metres deep; this constitutes approximately 35 per cent of that deposit. Specifically, areas of opportunities exist untapped below 200 metres, extending to 500 metres. Three stepout holes hit the mineralized structure, including a 1,200-metre wildcat drill hole. This is consistent with typical orogenic deposits that have structure and control at depth such as La Ronde (Agnico-Eagle), Hemlo (Barrick) and Homestake (Dakota Gold).

Fremont highlights:

  • 100 per cent owned, 3,351 acres of private land;
  • Located on the Mother Lode belt (50 million ounces produced);
  • Located in Mariposa county, site of the original Gold Rush;
  • Excellent site infrastructure with hydro substation, highway access, and proximity to airports and seaports;
  • Historical mine production at eight g/t Au;
  • 23 kilometres of underground mine workings;
  • Only two of five known deposits have been exploited;
  • Mining operation suspended due to war in 1942;
  • NI 43-101 MRE (mineral resource estimate) evaluates only 1.4 kilometres of the four-kilometre strike length (35 per cent);
  • At a sensitivity to the March 31, 2023, PEA at $2,000 (U.S.) per oz gold, the project has an after-tax NPV (5 per cent) of $370-million (U.S.) and a 31-per-cent IRR over an 11-year LOM;
  • Depth potential with three stepout holes hit the mineralized structure.

Jonathan Victor Hill, director and chair of Lode Gold's technical committee, commented: "There is no doubt that Fremont is a significant gold deposit with material upside potential. Globally, there are not many examples for orogenic gold deposits, whereby upwards of two million oz of mineral resource can be optimized within a single pit as Lode Gold's published 2023 PEA demonstrates. Carlos's data review of historical data aims to identify structurally controlled, plunging high-grade targets typical of these orogenic systems, beyond the current mineral resource limits. Supporting this thesis is the grade of eight g/t Au attributed to historical production up to when the mine was shuttered in 1942 due to World War II. We are looking forward to demonstrating the potential for a multimillion-ounce high-grade deposit to compliment the large open-pit minable resources already in hand."

About Lode Gold Resources Inc.

Lode Gold is a Canadian exploration and development company with grassroots and advanced exploration properties in highly prospective and safe mining jurisdictions.

Its Golden Culvert and Win projects, Yukon, covering 99.5 square kilometres across a 27-kilometre strike length, are situated in a district-scale, high-grade-gold-mineralized trend within the southern portion of the Tombstone gold belt. Gold deposits and occurrences within the belt include Fort Knox, Pogo, Brewery Creek and Dublin Gulch, and Snowline Gold's Valley target on its Rogue property in the Selwyn basin.

Its McIntyre Brook project, New Brunswick, covering 120 square kilometres and a 17-kilometre strike length in the emerging Triple Fault gold belt, is surrounded by Puma Exploration's Williams Brook project (5.55 g/t Au over 50 metres) and is hosted by orogenic rocks of similar age and structure as New Found Gold's Queensway project.

The company is also advancing its Fremont gold development project in the historic Mother Lode gold belt of California, where 50 million oz of gold has been produced. Fremont, located 500 kilometres north of Equinox Gold's Castle Mountain and Mesquite mines, has a PEA with an after-tax NPV of $217-million (U.S.), a 21-per-cent IRR and an 11-year LOM, averaging 118,000 ounces per annum at $1,750 (U.S.) gold. A sensitivity to the March 31, 2023, PEA at $2,000 (U.S.) per oz gold gives an after-tax NPV (5 per cent) of $370-million (U.S.) and a 31-per-cent IRR over an 11-year LOM. The project hosts an NI 43-101 resource of 1.16 million oz at 1.90 g/t Au within 19.0 million tonnes indicated, and 2.02 million oz at 2.22 g/t Au within 28.3 million tonnes inferred. The MRE evaluates only 1.4 kilometres of the four-kilometre strike length of the Fremont property that features five gold-mineralized zones. Significantly, three stepout holes at depth hit mineralized structure, typical of orogenic deposits that often occur at depth. Fremont is located on private land in Mariposa, the original gold rush county, and is 1.5 hours from Fresno, Calif. The property has year-round road access and is close to airports and rail. Please refer to the Fremont Gold project PEA dated March 31, 2023, under NI 43-101 guidelines. The technical report has been reviewed and approved by independent qualified persons Eugene Puritch, PEng, FEC, CET, and Andrew Bradfield, PEng, both of P&E, and Travis Manning, PE, of KCA.

Qualified person statement

The scientific and technical information contained in this news release has been reviewed and approved by Jonathan Hill, director, BSc (honours) (economic ecology -- UCT), FAusIMM, and who is a qualified person as defined by NI 43-101, Standards of Disclosure for Mineral Projects.

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