Element79 Gold Reports Updated NI 43-101 Compliant Resource on the Maverick Springs Project
Element79 Gold Reports Updated NI 43-101 Compliant Resource on the Maverick Springs
Project
VANCOUVER, BC / ACCESSWIRE / January 31, 2022 / Element79 Gold Corp.
(CSE:ELEM)(OTC PINK:ELMGF)(FSE:7YS) ("Element79 Gold", the "Company") is pleased
to announce an updated National Instrument 43-101 compliant, pit-constrained Mineral Resource
Estimate (the "MRE") on the flagship Maverick Springs Project ("Maverick Springs") located in
the famous gold mining district of northeastern Nevada. The MRE report will have the effective
date of February 4, 2022.
Highlights of the Maverick Springs Mineral Resource Estimate include:
• 3.71 million gold equivalent ounces "Au EQ" (278.0M Ag EQ ounces), within 125.4
million tonnes at an average grade of 0.92 g/t Au EQ (68.9 g/tonne Ag EQ) in the
Inferred category.
Table 1. 2022 Pit-Constrained Mineral Resource Estimate for Maverick Springs
Class Tonnes
Ag
(g/t)
Au
(g/t)
Ag
(Moz)
Au
(Moz)
Ag EQ
(g/t)
Ag EQ
(Moz)
Au EQ
(g/t)
Au EQ
(Moz)
Inferred 125,421,000 43.5 0.34 175.7 1.37 68.9 278.0 0.92 3.71
• The classification of the current Mineral Resource Estimate into Inferred is consistent
with current 2014 CIM Definition Standards - For Mineral Resources and Mineral
Reserves and 2019 CIM Estimation of Mineral Resources & Mineral Reserves Best
Practice Guidelines.
• 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 and Indicated Mineral Resource and must not be converted to a
Mineral Reserve. It is reasonably expected that the majority of Inferred Mineral
Resources could be upgraded to Indicated Mineral Resources with continued
exploration.
• All figures are rounded to reflect the relative accuracy of the estimate. Composites have
been capped where appropriate.
• Resources are presented undiluted and in situ and are considered to have reasonable
prospects for economic extraction.
• Open pit mineral resources are reported at a cut-off grade of 22.5 g/tonne Ag EQ. Cut-
off grade is based on a gold price of US$1,650 per ounce and a silver price of US$22 per
ounce, a gold recovery of 75%, a silver recovery of 85% and reasonable mining,
processing and transportation costs.
• High grade capping was done on silver grades in the composite data. A capping value of
25 oz/ton Ag was applied to the silver grades.
• A fixed specific gravity value of 13.6 ft3/ton (2.35 g/cm3) was used to estimate the
tonnage from block model volumes.
• The Authors are not aware of any known environmental, permitting, legal, title-related,
taxation, socio-political or marketing issues, or any other relevant issue not reported in
the technical report, that could materially affect the mineral resource estimate.
Table 2. 2022 Maverick Springs Open-Pit Optimization Parameters
Parameter Unit In-Pit Maverick Springs
Gold Price $US per ounce $1,650
Silver Price $US per ounce $22
Gold Recovery Percent (%) 75
Silver Recovery Percent (%) 85
Pit Slope Degrees 45
Strip Ratio Waste:Mineralisation 5.8:1
Mining Cost $US per tonne mined $1.90
Processing Cost and G&A $US per tonne milled $12.50
Mining Dilution Percent (%) 5%
Mining Recovery Percent (%) 95%
Cut-Off Grade g/t Au EQ 0.3
Cut-Off Grade g/t Ag EQ 22.5
The current MRE was completed by Allan Armitage, PhD., P. Geo., and Rohan Millar, B.Sc., P.
Geo. of SGS Canada Inc. This new MRE incorporates an additional 52 drill holes (Figure 2 and
3) drilled since the historical 2004 Mineral Resource Estimate by Snowden Mining Industry
Consultants Inc. (the "2004 MRE")(5) (Table 3.) and is constrained by a conceptual Whittle Pit
(Figure 4.). The current MRE while containing a similar gold equivalent ounce total, differs
substantially from the 2004 MRE, which was not pit-constrained. The current MRE is entirely
classified as Inferred in line with modern National Instrument 43-101 best practices, whereas the
historical 2004 MRE had 45% of the resource classified as Indicated. The current MRE is also
higher grade (Table 1 and 3).
Table 3. Maverick Springs 2004 Historical Mineral Resource Estimate(5)
Class Tons Ag g/t Ag
Moz Au g/t Au
Moz
Ag EQ
g/t
Ag EQ
Moz
Au EQ
g/t
Au EQ
Moz
Indicated 69,630,000 34.3 69.6 0.34 0.70 61.7 125.3 0.84 1.71
Inferred 85,550,000 34.3 85.6 0.27 0.68 51.4 128.3 0.78 1.93
• This historical estimate is the most recent historical resource estimate relevant to the
Maverick Springs Project, uses only the categories set out in Sections 1.2 and 1.3 of
National Instrument 43-101 Standards of Disclosure for Mineral Projects, and was
prepared to the quality and rigour as defined by NI 43-101 standards in 2004. A qualified
person has not conducted sufficient work on the historical estimate required to categorize
this resource to the CIM definition of a current mineral resource, which may include the
preparation of a new NI 43-101 Technical Report on Maverick Springs. Element79 Gold
is not treating this historical estimate as current mineral resources and a qualified person
has not reviewed the work to define the quality of work associated with this historical
estimate. Element79 Gold intends to have a qualified person conduct all work required to
classify this historical resource estimate as a current mineral resource as defined by the
CIM Definition Standards.
• Reported by Snowden Mining Industry Consultants in the document "Technical Report,
Maverick Springs Project, Nevada, USA", published April 13, 2004
• Calculated using a $US327/oz gold and $US4.77/oz silver price, not pit constrained
• Calculated using a 34.3 g/t Ag cut off grade
• Silver equivalency is calculated as Ag Eq = Ag +Au*68.46
• Based on 159 drill holes
The Maverick Springs Project
The Maverick Springs Project consists of approximately 4,800 acres across 247 unpatented
claims that straddle the border of Elko County and White Pine County, proximal to the Carlin
Trend, a belt of gold deposits approximately 5 miles wide and 40 miles long that is one of the
world's richest gold mining districts, having produced more gold than any other mining district in
the US.(1) The Maverick Springs Project is located just 30 kilometres northeast of Kinross's Bald
Mountain Mine with measured and indicated resources (inclusive of proven and probable
reserves) of 4.5 million ounces grading 0.52 g/t gold.(2)
Maverick Springs is a silver-rich sediment/carbonate hosted deposit located adjacent to the
famous Carlin Trend (Figure 1) which hosts some of the largest gold deposits in the world, such
as Nevada Gold Mines' Carlin Mine, a combination of Newmont Corporation's Carlin Mine and
Barrick Gold Corporation's Goldstrike Mine, which reported 1.665 million ounces of gold
produced in 2020.(1,4) As of 2019, the Carlin Trend as a whole has produced over 92.5 million
ounces of gold since the original Carlin Mine went into production in 1965(6).
In addition to Carlin style gold deposits Nevada is also famous for large silver-rich epithermal
deposits such as Comstock Lode and Tonopah Districts.(3) Work by the authors of current MRE
suggests that Maverick Springs has similarities to silver rich epithermal deposits. Maverick
Springs is a blind deposit comprising a 30-120 metre thick, flat-lying zone centered on an
anticlinal structure with oxidation pervasive to 120 metres and intermittent to 270 metres.(5) The
fact that Maverick may be an epithermal deposit leaves open the possibility of additional
mineralization above this flat laying zone, which could have a significant positive impact on any
future open pit mining.
The Maverick Springs Project is accessible year-round via gravel road, with a network of drill
roads spread throughout its claims. Nearby electrical power can be sourced from the eastern
Nevada grid system to the northwest. The claims at Maverick Springs were first staked in 1986,
with several exploration programs conducted from 1987 to 2004, including a total of 195 drill
holes totaling 47,000 metres.(8)
Figure 1. Location Map of the Maverick Springs deposit, and nearby select significant gold
mines.
Figure 2. Plan View looking North of Maverick Springs Mineralized wireframe and drill holes
by year.
Figure 3. View looking north showing all drill holes, the mineralized wireframe, the base of
oxidation and surface topography of the Maverick Springs Deposit.
Figure 4. Isometric View of Conceptual Open Pit and In-Pit Block Model
Qualified Persons
The National Instrument 43-101 Mineral Resource Estimate on the Maverick Springs Project
was independently prepared by Allan Armitage, PhD., P.Geo, and Rohan Millar, B.Sc. P.Geo.,
both of whom are "qualified persons" as defined by National Instrument 43-101 and a Senior
Resource Geologist and Senior Geologist, respectively, of SGS Canada Inc.
The technical information in this release has been reviewed and verified by Neil Pettigrew,
M.Sc., P. Geo., Director of Element79 Gold and a "qualified person" as defined by National
Instrument 43-101.
About Element79 Gold
Element79 Gold is a mineral exploration company focused on the acquisition, exploration and
development of mining properties for gold and associated metals within the mining-friendly
jurisdictions of Nevada, British Columbia, and Ontario. In Nevada, the Company has 16 wholly-
owned assets across the state: the flagship Maverick Springs Project, which consists of 247
unpatented mining claims on the border of Elko County and White Pine County, Nevada, and the
Battle Mountain Portfolio, which consists of 2,203 unpatented mining claims in Elko County,
Eureka County, Humbolt County, Lander County, and Nye County, Nevada. In British
Columbia, the Company has executed a Letter of Intent to acquire a private company which
holds the option to 100% interest of the Snowbird High-Grade Gold Project, which consists of 10
mineral claims located in Central British Columbia, approximately 20km west of Fort St. James.
In Ontario, the Company has an option to acquire 100% interest in the Dale Property which
consists of 90 unpatented mining claims located approximately 100 km southwest of Timmins,
Ontario, Canada in the Timmins Mining Division, Dale Township. For more information about
the Company, please visit www.element79.gold or www.element79gold.com
Contact Information
For corporate matters, please contact:
James C. Tworek, Chief Executive Officer
E-mail: [email protected]
For investor relations inquiries, please contact:
Investor Relations Department
Phone: +1 (604) 200-3608
E-mail: [email protected]
Sources
Element 79 Gold makes no warranty as to the completeness, accuracy, verifiability, or
suitableness of any of the information contained on the following third-party links and expressly
undertakes no obligation to update the following links.
(1) https://www.kitco.com/news/2021-04-05/Top-10-biggest-gold-mines-in-the-United-States-
report.html
(2) Kinross Bald Mountain Mine 2020 Mineral Reserves and Resources
https://www.kinross.com/operations/default.aspx#reserves
(3) History of the Silver StateL Nevad and it's Silver Districts
https://www.visualcapitalist.com/nevada-silver-districts/
(4) Evidence for a magmatic origin for Carlin-type gold deposits: isotopic composition of sulfur
in the Betze-Post-Screamer Deposit, Nevada, USA - Stephen E. Kesler, Lee C. Riciputi, Zaojun
Ye, May 28, 2005
https://deepblue.lib.umich.edu/bitstream/handle/2027.42/46046/126_2005_Article_477.pdf;jsessi
onid=34000A663A86E4DA526E84CEB03811AD?sequence=1
(5) Vista Gold Corp. News Release 2004 https://www.vistagold.com/news/archive/news-
2004/578-vista-gold-corp-announces-updated-resource-estimate-for-the-maverick-springs-
project-in-nevada
(6) Special Publication MI-2019: The Nevada Mineral Industry 2019 - Nevada Bureau of Mines
and Geology, p. 3 https://pdacnv.com/wp-
content/uploads/2021/03/2019_MI_Report_Draft_21621.pdf
(7) Barrick Gold Corporation, March 22, 2019, NI 43-101 Technical Report on the Goldstrike
Mine, Eureka and Elko Counties, State of Nevada, USA, available on SEDAR
(8) Vista Gold Corp., December 16, 2002, Resource Estimate Report for the Maverick Springs
Project Nevada, USA, available on SEDAR
Neither the Canadian Securities Exchange nor the Market Regulator (as that term is defined in
the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Technical Disclaimer
This news release and related maps contain information about adjacent properties and properties
with similar characteristics on which the Company has no right to explore or mine. Readers are
cautioned that mineral deposits on adjacent properties or properties that share similar
characteristics are not indicative of mineral deposits on the Company's properties. Readers are
also cautioned that this news release contains historical technical information which is based on
prior data prepared by previous property owners. A qualified person has not done sufficient work
to confirm such information; significant data compilation, re-drilling, re-sampling and data
verification may be required to do so.
Cautionary Note Regarding Forward Looking Statements
This press contains "forward‐looking information" and "forward-looking statements" under
applicable securities laws (collectively, "forward‐looking statements"). These statements relate to
future events or the Company's future performance, business prospects or opportunities that are
based on forecasts of future results, estimates of amounts not yet determinable and assumptions
of management made in light of management's experience and perception of historical trends,
current conditions and expected future developments. Forward-looking statements include, but
are not limited to, statements with respect to: anticipated benefits to Element79 Gold of the
acquisitions of Maverick Springs and the Battle Mountain Portfolio; the Company's business
strategy; future planning processes; exploration activities; the timing and result of exploration
activities; capital projects and exploration activities and the possible results thereof; acquisition
opportunities; and the impact of acquisitions, if any, on the Company. Assumptions may prove to
be incorrect and actual results may differ materially from those anticipated. Consequently,
forward-looking statements cannot be guaranteed. As such, investors are cautioned not to place
undue reliance upon forward-looking statements as there can be no assurance that the plans,
assumptions or expectations upon which they are placed will occur. All statements other than
statements of historical fact may be forward‐looking statements. Any statements that express or
involve discussions with respect to predictions, expectations, beliefs, plans, projections,
objectives or future events or performance (often, but not always, using words or phrases such as
"seek", "anticipate", "plan", "continue", "estimate", "expect", "may", "will", "project", "predict",