Skeena Increases Eskay Creek Resource to 5.9 Moz AuEq1 in Measured and Indicated Categories
Skeena Increases Eskay Creek Resource to 5.9 Moz AuEq1 in
Measured and Indicated Categories
Vancouver, BC (June 20, 2023) Skeena Resources Limited (TSX: SKE, NYSE: SKE) (“Skeena” or
the “Company”) is pleased to announce an updated Mineral Resource Estimate (“MRE”) for the 100%
owned Eskay Creek gold-silver Project (“Eskay Creek” or the “Project”) located in the Golden Triangle
of British Columbia. Effective June 20, 2023, the updated MRE incorporates an additional 278
drillholes totaling 67,885 metres, enhancements to the resource estimation methods, and updated
metallurgical process recoveries.
2023 Eskay Creek MRE Highlights:
• Total pit constrained Measured and Indicated Resource of 5.6 million ounces (“Moz”) at
3.47 g/t gold equivalent 1 (“AuEq”) including 4.1 Moz at 2.57 g/t Au and 102 .5 Moz Ag at
63.63 g/t Ag
• The pit constrained Measured and Indicated Resource has increased by 0.43 Moz AuEq1,
representing a growth of 8%
• Measured Category AuEq1 Resource increased by 23% and now accounts for 73% of the
total pit constrained MRE, up from 63% in the previous estimate
• MRE reported using conservative commodity prices of US$1,700/oz Au and US$23/oz Ag
• Metallurgical process recoveries applied to Resource are 84% Au and 88% Ag
Table 1: 2023 Measured, Indicated, and Inferred Pit Constrained Resource Reported at a 0.7 g/t AuEq 1
Cut-off Grade
Category Tonnes
(000)
AuEq1
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq1 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Measured 27,881 4.60 3.34 88.91 4,126 2,997 79,701
Indicated 22,229 2.05 1.60 31.91 1,465 1,142 22,803
Total M+I 50,109 3.47 2.57 63.63 5,591 4,138 102,504
Inferred 643 1.92 1.46 32.33 40 30 668
Table 2: 2023 Measured, Indicated, and Inferred Underground Constrained Resource Reported at a
3.2 g/t AuEq1 Cut-off grade Assuming Drift and Fill Mining Methods
Category Tonnes
(000)
AuEq1
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq1 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Measured 838 7.31 5.29 142.59 197 142 3,842
Indicated 989 4.91 4.12 55.68 156 131 1,771
Total M+I 1,827 6.01 4.66 95.54 353 274 5,613
1 All references to AuEq in this disclosure for the 2023 MRE have factored metallurgical recoveries as per the calculation: AuEq =
((Au (g/t)*1700*0.84) + (Ag (g/t)*23*0.88)) / (1700*0.84). US$1,700/oz Au, US$23/oz Ag, 84% gold recovery and 88% silver recovery.
Detailed notes regarding the 2023 estimation are presented at the end of this release.
NR: 23-14 | June 20, 2023
Category Tonnes
(000)
AuEq1
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq1 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Inferred 272 4.57 4.21 25.37 40 37 222
Skeena’s Senior Vice President of Exploration & Resource D evelopment, Paul Geddes, commented
“Considerable analysis was undertaken during this MRE , which includes a new methodology for
restricting the influence of high-grade mineralization proximal to formerly mined areas, optimization of
block sizes for mining selectivity, and added conservatism with process recoveries derived from the
2022 FS. The exploratory and delineation drilling performed in 2022 surrounding the new 23 and 21A
West Zones has resulted in a positive return on investment.”
Randy Reichert, Skeena’s President & CEO, goes on to comment “With the outcome of an additional
432,000 gold equivalent ounces, we are very pleased with the continued Resource growth at Eskay
Creek. We successfully converted a significant amount of Indicat ed Resources to th e Measured
category, increasing our confidence in the deposit. G iven most of the Resources included in this
update are within the Measured and Indicated categories we expect a large percentage to convert to
Reserves, potentially adding a year or more of mine life to the Q4 2023 Definitive Feasibility Study.”
Table 3: 2022-2023 Pit Constrained Resource Comparison
2023 Pit Constrained Resource
Category Tonnes
(000)
AuEq1
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq1 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Measured 27,881 4.60 3.34 88.91 4,126 2,997 79,701
Indicated 22,229 2.05 1.60 31.91 1,465 1,142 22,803
Total M+I 50,109 3.47 2.57 63.63 5,591 4,138 102,504
Inferred 643 1.92 1.46 32.33 40 30 668
2022 Pit Constrained Resource
Category Tonnes
(000)
AuEq2
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq2 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Measured 21,784 4.80 3.50 92.40 3,355 2,481 64,679
Indicated 24,724 2.30 1.80 37.60 1,804 1,400 29,896
Total M+I 46,508 3.50 2.60 63.20 5,159 3,881 94,575
Inferred 3,420 1.50 1.30 20.20 170 140 2,222
2022 - 2023 Pit Constrained Resource Comparison
Category Tonnes
(000)
AuEq1,2
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq1,2 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Measured +28% -4% -4% -4% +23% +21% +23%
Indicated -10% -11% -11% -15% -19% -18% -24%
2 All references to AuEq in this disclosure for the 2022 MRE have not factored in metallurgical recoveries: AuEq = Au(g/t) + [Ag
(g/t)/74]. US$1,700/oz Au, US$23/oz Ag.
Category Tonnes
(000)
AuEq1,2
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq1,2 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Total M+I +8% -1% -1% +1% +8% +7% +8%
Inferred -81% +28% +12% +60% -77% -78% -70%
Pit Constrained Resource Discussion
The 2023 MRE pit parameters used to determine Resources with reasonable prospects for eventual
economic extraction are analogous to those used for the 2022 MRE apart from the updated
metallurgical process recoveries of 84% gold and 88% silver which informed the 2022 Feasibility
Study. The differential in assumed process recoveries resulted in the shallowing of the Resource
reporting pit in certain areas relative to the 2022 MRE. Conversely, the 2022 drilling programs in the
23 and 21A West Zones generated new resources which resulted in pit expansions.
Table 4: Pit Constrained Scenario Assumptions for Determining Cut-off Grade with Reasonable
Prospects of Eventual Economic Extraction
Input Parameters 2022 Value 2023 Value Unit
Pit Wall Angles 45 45 Degrees
Reference Mining Cost 3.00 3.00 US Dollars per Tonne Mined
Mining Recovery 95 95 Percent
Mining Dilution 5 5 Percent
Processing Cost 15.50 15.50 US Dollars per Tonne Processed
General and Administration 6.00 6.00 US Dollars per Tonne Generalized
Process Recovery Au 90 84 Percent
Process Recovery Ag 80 88 Percent
Gold Price 1700 1700 US Dollars per Ounce
Silver Price 23 23 US Dollars per Ounce
Transportation/ Refining Costs Au 25.00 18.50 US Dollars per Ounce
Transportation/ Refining Costs Ag - 7 US Dollars per Ounce
Strip Ratio 7.55:1 7.14:1 Waste:Ore
Underground Constrained Resource
No material chan ge has occurred in the reported underground Resources. Variation in remnant
tonnages relative to the 2022 MRE is largely due to the new 2023 pit geometry and the 1 metre
geotechnical buffer around the underground workings being rem oved due to the selective nature of
the drift and fill mining method . The current MRE for underground Resources are proximal to the
planned pit. The Company’s 2022 drilling in the Eskay Deeps Discovery has not yet affected the
underground constrained resource due to the widely spaced nature of the two drillholes.
Table 5: Underground Scenario Assumptions for Determining Cut-off Grades with Reasonable
Prospects of Economic Extraction Assuming Drift and Fill Mining Methods
Input Parameters Value Unit
Reference Mining Cost 100.00 US Dollars per Tonne Mined
Processing Cost 25.00 US Dollars per Tonne Processed
General and Administration 12.00 US Dollars per Tonne Generalized
Input Parameters Value Unit
Process Recovery Au 84 Percent
Process Recovery Ag 88 Percent
Gold Price 1700 US Dollars per Ounce
Silver Price 23 US Dollars per Ounce
Transportation/ Refining Costs Au 18.50 US Dollars per Ounce
Transportation/ Refining Costs Ag 7.00 US Dollars per Ounce
Modification to Block Size
The 2023 MRE now applies a regular block size of 5 x 5 x 2.5 metres (XYZ), to better inform future
economic analyses that will contemplate more selective mining. This will also be incorporated into the
Definitive Feasibility Study (“DFS”) with 10 metre benches split with three dig flitches per bench and
smaller backhoe excavators. The 2022 pit constrained MRE utilized 10 x 10 x 5 metre parent blocks
with 5 x 5 x 2.5 metre subblocks which are not as well suited for engineering the more selective mining.
High-Grade Restriction Buffer Surrounding Historical Stopes
In the 20 22 MRE, a 1 metre buffer enveloping the underground stopes was used to constrain and
restrict the influence of the previously mined extremely high-grade drill hole samples. The 2023 model
now applies 15 g/t AuEq1 cut-off grade shells modelled in the orientation of the Contact Mudstone to
constrain and restrict the influence of the extremely high grades. This methodology forms a more
geologically based domain, as opposed to only utilizing the historical underground excavations.
Application of Dynamic Anisotropy
The NEX and HW Zones were estimated in Skeena’s 2022 model using the single-search ellipsoid of
the variogram. In the updated 2023 model, dynamic anisotropy, which adjusts for the folded orientation
of the search ellipse on a block -by-block basis was employed using the orientation of th e Contact
Mudstone as a guide. When compared to the 2022 MRE, the use of dynamic anisotropy results in a
more robust estimation.
Resource Model Reconciliation
As a test to determine the accuracy of the new model, an internal reconciliation study of the historically
mined portion of the 2023 MRE demonstrates that with the updated resource methodology, the grades
more closely resemble the gold and silver grades of the reported historical mine production relative to
the 2022 mod el. This improved reconciliation adds additional confidence to the methodologies and
optimizations applied to the 2023 MRE.
Table 6: 2023 Eskay Creek Consolidated Pit Constrained Resources (0.7 g/t AuEq1 cut-off grade) and
Underground Resources (3.2 g/t AuEq1 cut-off grade)
Category Tonnes
(000)
AuEq1
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq1 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Measured Pit 27,881 4.60 3.34 88.91 4,126 2,997 79,701
Measured UG 838 7.31 5.29 142.59 197 142 3,842
Total Measured 28,719 4.68 3.40 90.48 4,323 3,139 83,542
Indicated Pit 22,229 2.05 1.60 31.91 1,465 1,142 22,803
Category Tonnes
(000)
AuEq1
(g/t)
Au
(g/t)
Ag
(g/t)
AuEq1 Ounces
(000)
Au Ounces
(000)
Ag Ounces
(000)
Indicated UG 989 4.91 4.12 55.68 156 131 1,771
Total Indicated 23,218 2.17 1.71 32.92 1,621 1,273 24,574
M+I Pit 50,109 3.47 2.57 63.63 5,591 4,138 102,504
M+I UG 1,827 6.01 4.66 95.54 353 274 5,613
Total M+I 51,937 3.56 2.64 64.75 5,944 4,412 108,117
Inferred Pit 643 1.92 1.46 32.33 40 30 668
Inferred UG 272 4.57 4.21 25.37 40 37 222
Total Inferred 915 2.71 2.28 30.26 80 67 890
Eskay Creek 2023 MRE Notes:
The mineral Resources disclosed in this press release were estimated using the Canadian Institute of Mining, Metallurgy
and Petroleum (“CIM”) standards on mineral Resources and Reserves definitions, and guidelines prepared by the CIM
standing committee on reserve definition and adopted by the CIM council.
• Mineral Resources are not mineral Reserves and do not have demonstrated economic viability. There is no
certainty that any or any part of the mineral Resources estimated will be converted into mineral Reserves.
• As defined by 43-101, the Independent and Qualified Person for the Eskay Creek MRE is Ms. Terre Lane MMSA
QP, a registered member of the Society for Mining, Metallurgy and Exploration. Dr. Hamad Samari M MSA QP,
also a registered member of the Society for Mining, Metallurgy and Exploration, is the Independent and Qualified
Person for the Eskay Creek Geology.
• The effective date of the MRE is June 20, 2023.
• The Resources are reported within a pit shell for the pit constrained Resources, and within drift and fill stope
optimized shapes with 5% ore loss for the underground Resources: both are considered to have reasonable
prospects for economic extraction.
• In accordance with 43-101 recommendations, the number of metric tonnes was rounded to the nearest thousand.
Any discrepancies in the totals are due to rounding effects.
• Metallurgical recoveries reflective of test work that averages 84% Au and 88% Ag were utilized in the determination
of cut-off grades and the AuEq1 calculation for the open pit and underground Resources.
• Metal prices used are US$1,700/oz Au, and US$23/oz Ag.
• Cut-off grades are based on metal prices of US$1,700/oz Au, US$23/oz Ag, gold recoveries of 84%, silver
recoveries of 88% and without considering revenues from other metals.
• AuEq = ((Au(g/t)*1700*0.84) + (Ag(g/t)*23*0.88)) / (1700*0.84).
• The calculated pit constrained cut-off grade was determined to be 0.47 g/t AuEq1, whereas the underground cut-
off grade for the drift and fill mining method was calculated to be 3.2 g/t AuEq 1. A pit constrained cut-off grade of
0.7 g/t AuEq 1 was selected for the MRE. Cut -off grades mu st be re -evaluated considering prevailing market
conditions (including gold prices, exchange rates and costs).
• A regular model was created using 5 x 5 x 2.5 meter block sizes.
• An additional 278 holes for 67,885 m of drilling has been included in this estimate since the 2022 FS MRE database
close out of September 11, 2021.
• Block tonnes were estimated using average specific gravity measurements using lithology and mineralization
domains. Specific gravity was coded into the block model and ranges from 2.6 g/ cm3 to 3.1 g/cm3.
• The geological model was updated to include seven intrusive bodies on the property.
• One hundred and one (101) mineralization domains were created in Leapfrog GeoTM (Seequent) and two (2)
mineralization domains were created using Maptek Vulcan. Overall, fourteen (14) high-grade domains and eighty-
nine (89) lower-grade domains were created. The mineralization domain s were separated into major fault block
and historical mining zones.
• The high-grade domains were created using an Indicator RB F Interpolation using a cut -off grade of 15 g/t AuEq 1
and dynamic anisotropy along the orientation of the Contact Mudstone.
• The lower grade domains were created using three methods: (1) an Indicator RBF Inter polation using a nominal
cut-off grade of 0.5 g/t AuEq 1 and a probability of 50% in the Contact Mudstone, (2) the Interval Selection tool
using a cut-off grade of ~ 0.5 g/t AuEq1 in the remaining lithologies and (3) two small, manually created wireframes
in Vulcan.
• All one hundred and three (103) mineralization domains were estimated and those bl ocks that were captured
within the optimized pit shell at a 0.7 g/t AuEq1 cut-off were reported as pit constrained Resources. The portion of
the mineralization domains which fell below the level of the optimized pit were reported within underground stope
optimized shapes.
• Grade capping was performed on assays prior to compositing. Gold capping ranged from 115 g/t to 1700 g/t in the
high-grade domains and 2.4 g/t to 350 g/t in the lower grade domains. Silver capping ranged from 200 g/t to 60,000
g/t in the high-grade domains and 30 g/t to 22,000 g/t in the lower grade domains.
• Assays were composited to 1 meter lengths honoring the domain boundaries. Composites were distributed equally
in length.
• Gold and silver variograms were used to determine the spatial relationsh ip of composites over distance. 1 meter
composites established the primary orientation, nugget, sills and ranges by zone. Variograms were created for the
main individual lithology separated zone. Where there were too few samples in a zone, the variogram fr om the
most similar zone was used.
• Ordinary Kriging was used for the estimation of gold and silver in all domains, except for two small zones in the
Water Tower which were estimated by Inverse Distance.
• Resources were estimated using Maptek Vulcan TM (Version 2022.4.1).
• Search orientations were modified with Dynamic Anisotropy using a surface that mimicked the local lithological
unit. Dynamic Anisotropy was used in the 21A, 21B, 21C, 21Be, NEX, HW and LP Zones. Remining zones used
an orientation defined by the variogram.
• Hard boundaries were honoured between all zones.
• The mineral Resources were estimated using three passes with increasing search radii based on variogram
ranges. Pass 1 equaled the variogram range, Pass 2 equaled 2 times the variogra m range and Pass 3 equ aled
four times the variogram range. Pass 3 was only used for global statistic reporting and was not used in
Classification.
• Measured, Indicated and Inferred Resources were classified according to the following scheme:
o The Measured category is defined by blocks interpolated during Pass 1 only, using a minimum of 4 drill
holes, a kriging variance of less than 0.4 and an average distance of less than 18 m to the gold composites;
o The Indicated category is defined by blocks inte rpolated during Pass 1 only, us ing a minimum of 3 drill
holes;
o The Inferred category is defined by blocks interpolated during Pass 1 and 2 only, using a minimum of 2
drill holes and an average distance less than 100 meters to gold composites.
• An offset of 0.2 meters surrounds the underg round workings. Any mineralization that occurs within this buffer is
not included in the MRE.
• Estimates use metric units (metres, tonnes and g/t). Metal contents are presented in troy ounces (metric tonne x
grade / 31.10348)
• Neither the company, nor GRE, is aware of any known environmental, permitting, legal, title -related, taxation,
socio-political, marketing or other relevant issue that could materially effect this 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 redefine the Inferred mineral Resources as Indicated mineral Resources. It is
uncertain if further exploration will result in upgrading them to the indicated mineral Resources category.
• The Company does not consider the growth and conversion of Resources to be sufficiently material to warrant the
issuance of a new technical report for this MRE update. However, the Company does plan to file a new technical
report in conjunction with the Definitive Feasibility Study (DFS), expected in Q4 2023.
About Skeena
Skeena Resources Limited is a Canadian mining exploration and development company focused on
revitalizing the past-producing Eskay Creek gold-silver mine located in Tahltan Territory in the Golden
Triangle of northwest British Columbia, Canada. The Company released a Feasibility Study for Eskay
Creek in September 2022 which highlights an after -tax NPV5% of C$1.4B, 50% IRR, and a 1 -year
payback at US$1,700/oz Au and US$19/oz Ag.
On behalf of the Board of Directors of Skeena Resources Limited,
Walter Coles Randy Reichert
Executive Chairman President & CEO
Contact Information
Investor Inquiries: [email protected]
Office Phone: +1 604 684 8725
Company Website: www.skeenaresources.com
Qualified Persons
Terre Lane, ( MMSA QP ), Principal Mining Engineer for Global Resource Engineering Ltd., is an
independent Qualified Person as defined by 43-101 and has reviewed and approved the contents of
this news release. Ms. Lane is responsible for the 2023 Mineral Resource Estimate for the Eskay
Creek Deposit. In accordance with National Instrument 43 -101 Standards of Disclosure for Mine ral
Projects, Paul Geddes, P.Geo. Senior Vice President Exploration and Resource Development, is the
Qualified Person for the Company and has validated and approved the technical and scientific content
of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting,
documenting, and reporting the exploration activities on its projects.
Cautionary note regarding forward-looking statements
Certain statements and information contained or incorporated by reference in this press release constitute “forward-looking
information” and “forward -looking statements” within the meaning of applicable Canadian and United States securities
legislation (collectively, “forward-looking statements”). These statements relate to future events or our future performance.
The use of words such as “anticipates”, “believes”, “proposes”, “contemplates”, “generates”, “targets”, “is projected”, “is
planned”, “considers”, “estimates”, “expects”, “is expected”, “potential” and similar expressions, or sta tements that certain
actions, events or results “may”, “might”, “will”, “could”, or “would” be taken, achieved, or occur, may identify forward -
looking statements. All statements other than statements of historical fact are forward-looking statements. Specific forward-
looking statements contained herein include, but are not limited to, statements regarding the results of the Feasibility
Study, processing capacity of the mine, anticip ated mine life, probable Reserves, estimated project capital and operating
costs, sustaining costs, results of test work and studies, planned environmental assessments, the future price of metals,
metal concentrate, and future exploration and development. Such forward -looking state ments are based on material
factors and/or assumptions which include, but are not limited to, the estimation of mineral Resources and Reserves, the
realization of resource and reserve estimates, metal prices, taxation, the estimation, timing and amount of future
exploration and development, capital and operating costs, the availability of financing, the receipt of regulatory approvals,
environmental risks, title disputes and the assumptions set forth herein and in the Company’s MD&A for the year ended
December 31, 2022, its most recently filed interim MD&A , and the Company’s Annual Information Form (“AIF”) dated
March 22, 2023. Such forward -looking statements represent the Company’s management expectations, estimates and
projections regarding future events or circumstances on the date the statements are made, and are necessarily based on
several estimates and assumptions that, while considered reasonable by the Company as of the date hereof, are not
guarantees of future performance. Actual events and results may differ materially from those described herein, and are
subject to significant operational, business, economic, and regulatory risks and uncertainties. The risks and uncertainties
that may affect the forward -looking statements in this news release inclu de, among others: the inherent risks involved in
exploration and development of mineral properties, including permitting and other government approvals; changes in
economic conditions, including changes in the price of gold and other key variables; changes in mine plans and other
factors, including accide nts, equipment breakdown, bad weather and other project execution delays, many of which are
beyond the control of the Company; environmental risks and unanticipated reclamation expenses; and other risk fact ors
identified in the Company’s MD&A for the year ended December 31, 2022, its most recently filed interim MD&A, the AIF
dated March 22, 2023, the Company’s short form base shelf prospectus dated January 31, 2023, and in the Company’s
other periodic filing s with securities and regulatory authorities in Ca nada and the United States that are available on
SEDAR at www.sedar.com or on EDGAR at www.sec.gov.
Readers should not place undue reliance on such forward-looking statements. Any forward-looking statement speaks only
as of the date on which it is made and the Company does not undertake any obligations to update and/o r revise any
forward-looking statements except as required by applicable securities laws.
Cautionary note to U.S. Investors concerning estimates of mineral Reserves and mineral Resources
Skeena’s mineral Reserves and mineral Resources included or incorporated by reference herein have been estimated in
accordance with National Instrument 43 -101 – Standards of Disclosure f or Mineral Projects (“NI 43 -101”) as required by
Canadian securities regulatory authorities, which differ fro m the requirements of U.S. securities laws. The terms “mineral
reserve”, “proven mineral reserve”, “probable mineral reserve”, “mineral resource”, “measured mineral resource”,
“indicated mineral resource” and “inferred mineral resource” are Canadian mining terms as defined in accordance with NI
43-101 and the Canadian Institute of Mining, Metallurgy and Petroleum (“CIM”) “CIM Definition Standards – For Mineral
Resources and Mineral Reserves” adopted by the CIM Council (as amended, the “CIM Definition Standa rds”). These
standards differ significantly from the mineral property disclosure requirements of the U.S. Securities and Exchange
Commission in Regulation S-K Subpart 1300 (the “SEC Modernization Rules”). Skeena is not currently subject to the SEC
Modernization Rules. Accordingly, Skeena’s disclosure of mineralization and other technical information may differ
significantly from the information that would be disclosed had Skeena prepared the information under the standards
adopted under the SEC Modernization Rules.
In addition, investors are cautioned not to assume that any part or all of Skeena’s mineral Resources constitute or will be
converted i nto Reserves. These terms have a great amount of uncertainty as to their economic and legal feasibility.
Accordingly, investors are cautioned not to assume that any “measured”, “indicated”, or “inferred” mineral Resources that
Skeena reports are or will be economically or legally mineable. Further, “inferred mineral Resources” have a great amount
of uncertainty as to their existence, and great uncertainty as to their economic and legal feasibility. It cannot be assumed
that all or any part of an “inferred mineral resource” will ever be upgraded to a higher category. Under Canadian securities
laws, estimates of “inferred mineral Resources” may not form the basis of feasibility or prefeasibility studies, except in rare
cases where permitted under NI 43-101.
For these reasons, the mineral reserve and mineral resource estimates and related information presented herein may not
be comparable to similar information made public by U.S. companies subject to the reporting and disclosure requirements
under the U.S. federal securities laws and the rules and regulations thereunder.