08:47:49 EDT Thu 30 May 2024
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Thesis Gold Inc (2)
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Close 2024-04-30 C$ 0.72
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Thesis Gold releases MRE for Lawyers-Ranch

2024-05-01 11:06 ET - News Release

Dr. Ewan Webster reports


Thesis Gold Inc. has provided an updated mineral resource estimate (MRE) at the company's newly combined 100-per-cent-owned Lawyers-Ranch project. The project now boasts a combined measured and indicated mineral resource of four million ounces and an inferred mineral resource of 727,000 oz, at respective grades of 1.51 and 1.82 grams per tonne AuEq (gold equivalent), hitting an important milestone for project scale. The Lawyers-Ranch project is road-accessible and together the projects form a contiguous, 495-square-kilometre land package in the prolific Toodoggone mining district in Northern British Columbia.

Highlights -- 2024 updated mineral resource estimate:

  • Significant mineral resource growth:
    • Measured and indicated mineral resource:
      • Four million ounces (Moz) grading 1.51 grams per tonne (g/t) gold equivalent (AuEq) contained within 82 million tonnes; AuEq calculated using 80:1 Ag:Au ratio (with $1,850 (U.S.)/ounce gold, $24 (U.S.)/oz silver, and recoveries at 92 and 88 per cent, respectively);
      • Representing over 85 per cent of the total mineral resource ounces and a 27-per-cent increase in AuEq ounces;
    • Inferred mineral resource:
      • 727,000 ounces grading 1.82 AuEq contained within 12.4 million tonnes;
      • An increase of 76 per cent AuEq ounces;
    • Total tonnage:
      • 94.4 million tonnes at 1.55 g/t AuEq a 32-per-cent increase in tonnes;
    • This MRE outlines both pit-constrained resources -- defined by a conceptual pit at a cut-off grade of 0.4 g/t AuEq and out-of-pit mineral resources that have a cut-off grade of 1.5 g/t AuEq, which demonstrate excellent continuity.
  • Substantial silver value:
    • At an 80:1 Ag:Au ratio, silver represents 25 per cent of the mineral resource value for AuEq;
    • Measured and indicated mineral resources contain 84 million silver ounces, and inferred mineral resources contain 8.3 million silver ounces, respectively, an increase of 58 per cent and 34 per cent.
  • Potential for continued growth:
    • In 2023, the drilling program at Ranch was strategically aimed at defining near-surface, high-grade zones. This focus was specifically designed to maximize the impact on the coming preliminary economic assessment update (Q3 2024) and establish an initial mineral resource. All zones remain open for significant expansion potential;
    • Ranch has greater than 20 drill-ready targets for potential new discoveries and multiple additional gold-silver mineralization targets generated for follow-up.

Dr. Ewan Webster, president and chief executive officer, commented: "Today's combined mineral resource is a major milestone for the project and a key step in our strategic plan to unlock the full potential of these outstanding assets. This process began in 2023 when we launched a targeted drilling campaign focused on the highest-impact areas of Lawyers and Ranch. The drill results supported two key 2024 catalysts: today's updated global resource for both Lawyers and Ranch, and its integration into an improved PEA. We're on track, with a 32-per-cent increase in gold equivalent ounces, identification of higher-grade zones and a revised mine plan that positions the project to deliver substantial improvements on already-strong economics. We foresee this materializing in a significant underground potentially minable mineral resource, and secondly, as you can see in the sensitivity table for Ranch, there is the opportunity to develop much higher-grade starter pits to jump-start production and reduce the payback period. I see today's resource as just the beginning, with substantial growth ahead, particularly at Ranch, where we have only scratched the surface."

The updated mineral resource estimate is a key component in the coming update to the preliminary economic assessment, slated for completion in third quarter 2024. This MRE outlines both pit-constrained resources -- defined by a conceptual pit shell with mineral resources at a lower cut-off grade of 0.4 g/t AuEq-and out-of-pit mineral resources, with a lower cut-off grade of 1.5 g/t AuEq and that demonstrate excellent continuity utilizing an industry-standard conceptual stope optimizer software. While they are indicative of the potentially minable mineral resources through conceptual open-pit and underground mining methods, this will be determined through a crossover analysis in the coming updated PEA. The crossover analysis will assess the most advantageous depths for transitioning from open-pit to underground mining methods to enhance economic efficiency, and overall conversion of mineral resources to potentially minable mineral resources. At the Lawyers area drilling suggests that higher-grade material is situated at the bottom of the conceptual pit-constrained mineral resource and extends below into the out-of-pit zone at both Cliffs Creek and Dukes Ridge, where underground mining could allow production earlier in the mine life. Moreover, the cut-off grade sensitivity analysis of the MRE at the Ranch project shows a clear opportunity of near-surface, high-grade material by initiating production from higher-grade starter pits. These options will be evaluated in the updated PEA, with a strategy to integrate high-grade underground mineral resources and starter pits from Ranch early on to establish an optimized mining schedule to reduce the payback period. In addition, given the location and grade of the defined additional ounces and the revised mine plan contemplated in the coming PEA, there is an expectation that there will be a higher conversion of ounces in the MRE (M&I and inferred) into potentially minable ounces in the updated PEA relative to the previous PEA on only the Lawyers project.

Quality assurance and quality control

Results from samples were analyzed at ALS Global Laboratories (geochemistry division) in Vancouver, Canada (an ISO/IEC 17025:2017 accredited facility). The sampling program was undertaken by company personnel under the direction of Rob L'Heureux, PGeol. A secure chain of custody is maintained in transporting and storing of all samples. Gold was assayed using a fire assay with atomic emission spectrometry and gravimetric finish when required (over 10 g/t Au). Drill intervals with visible gold were assayed using metallic screening. Rock chip samples from outcrop/bedrock are selective by nature and may not be representative of the mineralization hosted on the project.

The technical content of this news release has been reviewed and approved by Michael Dufresne, MSc, PGeol, PGeo, and Eugene Puritch, PEng, FEC, CET, both qualified persons as defined by National Instrument 43-101. Mr. Puritch, president of P&E Mining Consultants Inc., is independent of Thesis Gold.

About Thesis Gold Inc.

Thesis Gold is unlocking the combined potential of the Lawyers-Ranch gold-silver project in the Toodoggone mining district of north-central British Columbia, Canada. A 2022 preliminary economic assessment for the Lawyers project alone projected an open-pit mining operation yielding an average of 163,000 gold equivalent ounces annually over a 12-year span. By integrating the Ranch project, the company aims to enhance the economics and bolster the overall project's potential. Central to this ambition was the expansive 2023 drill program, which continues to define a high-grade out-of-pit mineral resource at Lawyers and augment the near-surface high-grade deposits at Ranch. The project now boasts a combined measured and indicated mineral resource of four Moz and an inferred mineral resource of 727,000 oz, at respective grades of 1.51 and 1.82 g/t AuEq. The company road map includes new metallurgical work, a robust 2024 exploration and drill program, and a combined updated preliminary economic assessment slated for Q3 2024. Through these strategic moves, Thesis Gold intends to elevate the Ranch-Lawyers project to the forefront of global precious metals ventures.

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