Revival GOLD Delivers Substantial Resource Increase at Beartrack-Arnett
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REVIVAL GOLD DELIVERS
SUBSTANTIAL RESOURCE INCREASE AT BEARTRACK-ARNETT
Toronto, ON – February 3rd, 2020 – Revival Gold Inc. (TSXV: RVG, OTCQB: RVLGF) (“Revival Gold”
or the "Company"), a growth -focused gold exploration and development company, announces
the results of an updated mineral resource estimate (“Mineral Resource”) completed by Roscoe
Postle Associates Inc. (“RPA”) on the company’s past -producing Beartrack-Arnett Gold Project
(“Beartrack-Arnett”) located in Lemhi County, Idaho.
Highlights
• The updated RPA Beartrack-Arnett Mineral Resource contains:
o An Indicated Mineral Resource of 36.4 million tonnes at 1.16 g/t gold containing
1.35 million ounces of gold; and,
o An Inferred Mineral Resource of 47.2 million tonnes at 1.08 g/t gold containing
1.64 million ounces of gold, including an initial bulk underground component of
6.7 million tonnes at 2.19 g/t gold containing 0.47 million ounces of gold
• These results represent an increase of 11% in Indicated Mineral Re sources and an
increase of 1 14% in Inferred Mineral Res ources over the Company’s prior mineral
resource estimates at Beartrack (see May 29th, 2018 press release, “Revival Gold Unveils
43-101 Gold Resource at the Beartrack Gold Project in Idaho, USA”).
• The Mineral Resource is defined by 563 core and reverse circulation drill holes totalling
approximately 93,000 meters and was estimated at an assumed gold price of US$1,400
per ounce of gold.
• Mineralization at Beartrack remains open to the north, south and at depth.
Mineralization at Arnett remains open in all directions.
• The f ocus of technical work will now turn to preparations for a Preliminary Economic
Assessment on the potential re-start of heap leach operations at Beartrack and plans for
future exploration drilling at Beartrack-Arnett. Details to follow.
“Results at Beartrack-Arnett have well exceeded Revival Gold’s ambitious goals for exploration
success,” said Hugh Agro, President & CEO. “ Inferred gold resources have more than doubled
while indicated gold resources are up 11% with this resource update. The deposit remains open
laterally and at dept h and, at its current scale, Beartrack -Arnett represents a n outstanding
opportunity for further growth.”
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Details
Table 1 below outlines the pit -constrained and initial underground Mineral Resource s for
Beartrack-Arnett.
Table 1: Summary of Beartrack-Arnett Project Indicated and Inferred Mineral Resources
by Material Type and Location1, 4
Resource Category
Tonnes
(‘000)
Gold Grade
(g/t Au)
Contained Gold
Ounces (‘000)
Indicated Heap Leach5
Beartrack – open pit
Arnett – open pit
11,900
2,300
0.56
0.66
215
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Indicated Mill
Beartrack – open pit
Beartrack – underground
22,216
NA
1.52
NA
1,089
NA
Total Indicated 36,416 1.16 1,353
Inferred Heap Leach5
Beartrack – open pit
Arnett – open pit
9,961
8,300
0.53
0.55
169
147
Inferred Mill
Beartrack – open pit
Beartrack - underground
22,228
6,700
1.19
2.19
850
471
Total Inferred 47,189 1.08 1,638
1 Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral
Reserves dated May 10, 2014 (CIM (2014) definitions) were used for Mineral Resource classification reported in this press
release. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. It is reasonably
expected that the majority of Inferred Mineral Resources could be upgraded to Indicated Mineral Resources with
continued exploration.
2 Mineral Resources were tabulated for model blocks with positive net value that lie within an optimized conceptual pit.
Table 2 summarizes the various economic parameters that were used to generate the Mineral Resource pit . The price,
recovery and cost data translate to a breakeven gold cut-off grade of approximately 0.52 g/t gold and 0.17 g/t cyanide
soluble gold for mill and heap leac h respectively for the open pit at Beartrack, a breakeven gold cut -off grade of
approximately 1.3 g/t gold for the incremental underground mill option at Beartrack, and approximately 0.19 g/t gold for
heap leach at Arnett. The cut-off grades include considerations of metal price, process plant recovery, mining, processing
and general and administrative costs.
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3 Rounding may result in apparent discrepancies between tonnes, grade, and contained metal content. The estimate of
mineral resources may be materially affected by geology.
4 The effective date of the mineral resource estimate is December 10, 2019.
5 Heap Leach material defined by cyanide soluble grade leach characteristics.
The Mineral Resource includes all oxide, mixed oxide-sulphide and sulphide material constrained
within an economic open pit and underground bulk mining scenario based on a gold price of
US$1,400/ounce along with the cost, recovery and slope parameters summarized in Table 2
below.
Table 2: Conceptual Parameters
Parameter
Units
Value
Base Case Gold Price US$/ounce gold $1,400
Mill Throughput Mineralized tonnes/day 20,000
Leach Operation Mineralized tonnes/day 10,000 - 15,000
Heap Leach Recovery - Beartrack % of cyanide soluble gold1 85%1
Heap Leach Recovery - Arnett % of contained gold2 75%
Mill Recovery % of contained gold2 94%
Open Pit Mining Cost US$/tonne mined $2.25
Underground Bulk Mining Cost US$/tonne mined $35.00
Heap Leach Processing Cost US$/tonne processed $3.25
Mill Processing Cost US$/tonne processed $18.46
Re-Handle Cost – Beartrack US$/tonne processed $0.10
G & A Cost US$/tonne processed $0.50 - 1.003
Pit Slope Angle Degrees 37 - 504
1 Gold grades based on cyanide soluble analysis methods. Equivalent to approximately 70% of contained gold.
2 Gold grades based on fire assay methods.
3 US$0.50/tonne and US$1/tonne processed G&A for incremental underground and open pit resources respectively.
4 Beartrack: 37o for Tertiary rocks, dikes, faults & backfill; 45o for Yellowjacket Fm. & Rapakivi Granite. Arnett: 50o.
As presently conceived, Mineral Resources at Beartrac k are largely assumed to be exploited by
open pit mining methods. However, mineralization at Beartrack extends over 600 meters
vertically below surface in the South Pit area and has also been intercepted at depth in holes
drilled in the Ward’s Gulch, North Pit and Joss areas. Resource modeling by RPA supports
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the inclusion of an initial component of bulk underground material in the Mineral Resource
located in the South Pit and Joss areas at Beartrack.
The deposit at Arnett is envisioned as an open pit operation that could either be operated
independently of Beartrack or as a satellite operation taking advantage of existing infrastructure
at Beartrack.
Heap leach resources are primarily composed of oxide and mixed oxide -sulphide material. Mill
resources are primarily composed of sulphide material. Two separate net economic values were
calculated for each resource block based on heap leach and mill processing parameters. The
Mineral Resource was generated from the maximum of the two conceptual block net economic
values.
Heap leaching is assumed to take place at a rate in the range of 10,000 to 15,000 tonnes of
mineralized material per day with two-stage crushing to minus two inches.
The mill operation is assumed to take place at a rate of about 20,000 tonnes of material per day
with approximately 3,000 tonnes per day of flotation concentrates pressure oxidized and cyanide
leached to produce gold doré on site. M ill flotation tailings would also be cyanide leached to
produce gold doré on site.
The mill operating parameters shown in Table 2 above translate into a breakeven gold cut -off
grade of 0.5 2 g/t gold for Beartrack open pit mill material and an incremental breakeven gold
cut-off grade of 1.26 g/t gold for Beartrack incremental underground mill material. Heap leach
operating parameters translate into breakeven gold cut -off grades of 0.17 g/t cyanide so luble
gold and 0.19 g/t fire assay gold respectively for Beartrack and Arnett open pit heap leach
material.
Beartrack was previously operated as an open pit, heap leach operation exploiting leachable ore
until the operation was shutdown in 2000 when the price of gold was below US$300/ounce. The
historic Beartrack operation involved open pit mining by truck and shovel at a rate of 13,600
tonnes per day of ore, with two-stage crushing to minus two inches, conveyed to a heap leach
pad with gold recovered in an Adsorption, Desorption, Regeneration plant. A total of 21,880,000
tonnes at 0. 98 g/t cyanide soluble gold were processed producing 609, 141 ounces of go ld,
yielding an average recovery of 88% of the cyanide soluble gold (approximately 70% of contained
gold).
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Significant infrastructure from the historic operation remains. Revival Gold is evaluating the
economic potential for a re-start of heap leach operations at Beartrack and intends to continue
to aggressively explore for additional mill and leach material on the Beartrack-Arnett property.
Cut-off grade sensitivity at various gold prices is summarized in Table 3 below.
Table 3: Sensitivity Analysis of Grade and Tonnage at Varying
Cut-Off Grades for the Beartrack-Arnett Project
Assumed Gold
Price
($US/oz Au)
Resource Category2
Tonnes
(‘000)
Gold Grade
(g/t Au)
Contained Gold
Ounces
(‘000)
$1200 Indicated 33,652 1.21 1,307
$1300 Indicated 35,062 1.18 1,331
$1400 Indicated 36,416 1.16 1,353
$1500 Indicated 37,455 1.14 1,368
$1600 Indicated 38,678 1.12 1,387
$1200 Inferred 38,633 1.14 1,420
$1300 Inferred 43,271 1.11 1,542
$1400 Inferred 47,189 1.08 1,638
$1500 Inferred 49,794 1.06 1,691
$1600 Inferred 53,921 1.03 1,787
1 Base case cut-off grades at US$1,400/ounce gold are approximately 0.517 g/t gold and 0.17 g/t cyanide soluble gold for
mill and heap leach respectively for Beartrack and approximately 0.193 g/t gold for heap leach for Arnett. Heap leach cut-
off grade varies as does mill cut-off grade based on gold price.
2 Includes both heap leach and mill material.
Mineral Resources were estimated for the Beartrack and Arnett deposits using inverse distance
squared (ID2). Several different interpolation processes including inverse distance cubed (ID3),
ordinary kriging, and nearest neighbor methods were completed as secondary parallel estimation
validation. Mineral Resources based on the ID2 grade model compare favourably with the
ordinary kriged and nearest neighbor models. Block size in the block model s measure 20 feet
(6.1 meters) in each direction . This block size was deemed to be appropriate by RPA given the
current drill hole spacing, assay length and style of mineralization. Block grades were estimated
using Metric units (grams/tonne).
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Gold mineralization at Beartrack is associated with a large, northeast-trending regional structure
known as the Panther Creek Shear Zone (“PCSZ”). Mineralization in the Joss area is hosted by the
Proterozoic Yellowjacket Formation and the PCSZ, mineralization in the South Pit and Ward’s
Gulch areas is hosted by the Yellowjacket Formation, the PCSZ and a Proterozoic Rapakivi Granite,
and mineralizatio n in the North Pit and Moose areas is hosted by the PCSZ and the R apakivi
Granite. The estimate of gold resources was constrained by a combination of lithologic and gold
grade wireframes. Block gold grades were independently estimated using fire assays and cyanide
soluble analyses. The grade models were validated using visual and statistical methods. In
addition, the grade models were extensively compared to historical cyanide soluble and fire assay
blast hole data and historical production reports. The estimated block grades were classified as
Indicated and Inferred categories based on drill hole spacing and continuity of mineralization.
The Mineral Resource for Beartrack was completed by RPA in Denver, USA with Mark Mathisen,
C.P.G. and Ryan Rodney, C.P.G serving as the independent Qualified Person s for th is Mineral
Resource estimate. A National Instrument 43-101 Technical Report will be filed on SEDAR within
45 days.
Steven T. Priesmeyer, C.P.G., Vice President Exploration, Revival Gold Inc., is the Company’s
designated Qualified Person for this news release within the meaning of National Instrument 43-
101 Standards of Disclosure for Mineral Projects and has reviewed and approved its scientific and
technical content.
About Revival Gold Inc.
Revival Gold Inc. is a growth-focused gold exploration and development company. The Company
has the right to acquire a 100% interest in Meridian Beartrack Co., owner of the former producing
Beartrack Gold Project located in Lemhi County, Idaho. Revival Gold also owns rights to a 100%
interest in the neighboring Arnett Gold Project.
In addition to its interests in Beartrack and Arnett, the Company is pursuing other gold
exploration and development opportunities and holds a 51% interest in the Diamond Mountain
Phosphate Project located in Uintah County, Utah.
Revival Gold currently h as approximately 52.8 million shares outstanding and had a working
capital balance of approximately $0.7 million as of December 31st, 2019. Additional disclosure
of the Company’s financial statements, technical reports, material change reports, news releases
and other information can be obtained at www.revival -gold.com or on SEDAR at
www.sedar.com.
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For further information, please visit www.revival-gold.com or contact:
Hugh Agro, President & CEO or Adam Rochacewich, CFO
Telephone: (416) 366-4100 or Email: [email protected]
Cautionary Statement
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news
release.
This News Release includes certain "forward -looking statements" which are not comprised of historical
facts. Forward-looking statements include estimates and statements that describe the Company’s future
plans, objectives or goals, including words to the effect that the Company or management expects a stated
condition or result to occur. Forward -looking statements may be identified by such terms as “believes”,
“anticipates”, “expects”, “estimates”, “may”, “could”, “would”, “will”, or “plan”. Since forward -looking
statements are based on assumptions and address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Although these statements are based on information currently
available to the Company, the Company provides no assurance that actual results will meet management’s
expectations. Risks, uncertainties and other factors in volved with forward -looking information could
cause actual events, results, performance, prospects and opportunities to differ materially from those
expressed or implied by such forward -looking information. Forward looking information in this news
release includes, but is not limited to, the Company’s intentions regarding its objectives, goals or future
plans and statements. Factors that could cause actual results to differ materially from such forward -
looking information include, but are not limited to, failure to identify mineral resources, failure to convert
estimated mineral resources to reserves, the inability to complete a feasibility study which recommends
a production decision, the preliminary nature of metallurgical test results, delays in obtaining or failures
to obtain required governmental, environmental or other project approvals, political risks, uncertainties
relating to the availability and costs of financing needed in the future, changes in equity markets, inflation,
changes in exchange rates , fluctuations in commodity prices, delays in the development of projects,
capital, operating and reclamation costs varying significantly from estimates and the other risks involved
in the mineral exploration and development industry, and those risks set o ut in the Company’s public
documents filed on SEDAR. Although the Company believes that the assumptions and factors used in
preparing the forward-looking information in this news release are reasonable, undue reliance should not
be placed on such information, which only applies as of the date of this news release, and no assurance
can be given that such events will occur in the disclosed time frames or at all. The Company disclaims any
intention or obligation to update or revise any forward -looking information, whether as a result of new
information, future events or otherwise, other than as required by law.