TAU.V · 2024-09-05 12:00:00

Thesis Gold Updated PEA for Lawyers-Ranch Project: After-Tax NPV5% of C$1.28 Billion, IRR of 35.2% and 2.0 Year Payback

Economic Studies

Thesis Gold Updated PEA for Lawyers-Ranch

Project: After-Tax NPV5% of C$1.28 Billion,

IRR of 35.2% and 2.0 Year Payback

Vancouver, British Columbia--(Newsfile Corp. - September 5, 2024) - Thesis Gold Inc. (TSXV: TAU)

(FSE: A3EP87) (OTCQX: THSGF) is pleased to announce positive results from the updated

independent Preliminary Economic Assessment ("PEA") for its 100% owned Lawyers-Ranch Project

(the "Project") in the prolific Toodoggone Mining District of northern British Columbia. The updated PEA

outlines a plan for developing the combined Lawyers-Ranch project using both open-pit and

underground mining methods, with mineralized material processed at a single facility, achieving an

estimated average gold recovery of 93%. The PEA was prepared by JDS Energy & Mining Inc. ("JDS")

of Vancouver, British Columbia, Canada in accordance with National Instrument 43-101 - Standards of

Disclosure for Mineral Projects ("NI 43-101"). The updated NI 43-101 PEA Technical Report will be filed

on SEDAR+ at

www.sedarplus.ca

and Thesis Gold's website

www.thesisgold.com

within 45 days of this

announcement.

Highlights

Strong Economics:

Pre-tax internal rate of return ("IRR") of

46.0%

, pre-tax net present value at a

5% discount rate ("NPV5%") of

C$1.99 billion

, after-tax IRR stands at

35.2%,

and an after-tax

NPV5% of

C$1.28 billion

, using US$1,930 per ounce of gold and US$24 per ounce of silver (see

Table 1)

Gold Price Sensitivity:

The project remains robust at a wide range of gold prices from US$1,750

to US$2,500 with after-tax IRR of 28.8% to 52.8% (see Table 2).

Increased Production:

The 2024 PEA saw a considerable increase in production versus the

previous (2022) PEA with a 32% increase in annual average production to

215,000

gold-

equivalent ("AuEq"*) ounces, including an average

273,000

gold-equivalent ounces annually over

the first three years, and a 55% increase in Life-of-mine ("LOM") production to

3.0 million

gold-

equivalent ounces, extending mine life to over 14 years.

Low AISC:

LOM all-in sustaining cash cost ("AISC") of

US$1,013

per ounce of gold equivalent.

Quick Payback:

The project offers a quick after-tax payback of 2.0 years, a 29% decrease

compared to the previous (2022) PEA.

Capex:

Initial capital expenditure is estimated at C$598.4 million, with a compelling after-tax

NPV5% to initial capital ratio of 2.1:1.

Project Upside:

Significant Mineral Resource growth potential remains across both Lawyers and

Ranch projects. The underground Mineral Resource at Lawyers is still open for expansion at depth,

while Ranch Mineral Resource zones also remain open. Additionally, there are over 20 unexplored

targets that hold potential for further discoveries.

Dr. Ewan Webster, President and CEO, commented, "Starting in 2023, we set an ambitious goal to

focus our exploration and engineering efforts on optimizing our project establishing a low-cost future

producer with a quick payback period and a projected mine life exceeding 10 years, while in parallel

establishing substantial opportunities for future expansion. We are delivering on that promise, with

215,000 ounces per year over a 14-year mine life, a 117% improvement in NPV, and a 46%

improvement in IRR. This translates to a robust after-tax NPV5% of C$1.28 billion and an after-tax IRR of

35.2%, based on a conservative 3-year trailing average gold price of US$1,930 per ounce. With today's

gold price near US$2,500 per ounce, the substantial economic potential of the Lawyers-Ranch Project is

clear. As we advance toward key project development milestones, we will continue to explore new

targets within our expansive, highly prospective land package. This approach will further enhance a

project that is not only straightforward and low-risk but also benefits from high-grade, easily accessible

open-pit and underground ounces, combined with proximity to existing infrastructure. This positions the

Lawyers-Ranch Project as one of Canada's most prospective gold projects."

Bill Lytle, Non-Executive Chairman, added, "The 2024 PEA confirms the positive potential of the

Lawyers-Ranch Project, utilizing industry-standard open-pit and underground mining methods alongside

an optimized processing flowsheet that ensures exceptional recoveries from both Lawyers and Ranch

streams, all while maintaining a compact project footprint. The inclusion of the Lawyers underground

brings high-grade, easily accessible ounces into the early stages of the mine life, significantly enhancing

the project's economics compared to the 2022 PEA. With 301,316 meters drilled to date, 86.9% of the

updated 2024 Mineral Resource is now classified as Measured and Indicated.

Combined with well-

advanced engineering and environmental baseline work, the project is rapidly moving towards Pre-

Feasibility and an accelerated permitting timeline, while still offering substantial upside potential and

opportunities for Mineral Resource growth."

PEA Overview

The PEA is preliminary in nature and includes Inferred Mineral Resources considered too speculative

geologically to have the economic considerations applied to them that would enable them to be

categorized as Mineral Reserves, and there is no certainty that the results of the PEA will be realized.

Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability.

The 2024 PEA considers a conventional truck and shovel open-pit mining ("OP") operation with

common equipment sizing feeding a 12,600 tonnes per day (t/d) industry standard processing plant with

crushing, grinding, flotation, leaching and a Merrill Crowe recovery circuit, with production of precious

metal concentrate and gold-silver doré bullion on site. The 2024 PEA considers a crossover to

underground mining ("U/G") using longhole stoping and a small zone of drift and fill to feed up to 2,500

t/d from the Duke's Ridge, Cliff Creek and Ranch Deposits from years 2 to 14. The PEA is based on an

update of the Mineral Resource Estimate announced by the Company on the June 1, 2024 press

release.

JDS was appointed as lead consultant in January 2024 to prepare the updated PEA in accordance with

NI 43-101 and was assisted by Knight Piesold Consulting ("KP") for tailings storage facility ("TSF") and

waste rock storage facility ("WRSF") design and costing, Frank Wright Consulting ("Frank Wright") for

metallurgy, P&E Mining Consultants Inc. for Mineral Resource estimation, and One-Eighty Consulting for

permitting.

PEA Highlights

Positive after-tax NPV (5%) of C$1.28 billion, 35.2% IRR and 2.0 Year Payback Period.

Open pit and underground mining at the Lawyers and Ranch properties, with the inclusion of

underground mining leading to an increase grade and tonnage compared to previous PEA.

Inclusion of underground mining leading to an overall reduction in LOM strip ratio for the Project.

Optimized flowsheet utilizing both flotation and leaching to maximize overall recovery. The addition

of a flotation circuit allows for an increased gold recovery to 93% and silver recovery to 86.1%

across a combined Lawyers and Ranch process plant feed.

Increase Life of Mine of 14 years with 215, 000 oz AuEq* average annual production.

Life of Mine (LOM) production of 64.7 Mt of Process Plant Feed at an average grade of 1.61 g/t

AuEq*.

Optimized infrastructure to increase operational efficiency.

These results reinforce the economic potential of the project, highlighting efficient and effective

processing strategies to maximize metal recovery.

PEA Parameters and Assumptions

The financial modeling for this PEA was done by JDS Energy & Mining Inc. and included the following

parameters and assumptions:

Table 1: Summary of PEA Parameters and Economics Results

General

Unit

LOM Total / Avg.

Au Price

US$/oz

1,930

Ag Price

US$/oz

Mine Life

yrs

Total Processed Feed Tonnes

64,700

Waste Mined

294,000

OP Stripping Ratio

W:O

Production

Unit

LOM Total / Avg.

Head Grade - Au

g/t

1.23

Head Grade U/G - Au

g/t

2.40

Head Grade OP - Au

g/t

1.10

Head Grade - Ag

g/t

33.1

Head Grade U/G - Ag

g/t

68.4

Head Grade OP

- Ag

g/t

27.5

Head Grade - AuEq*

g/t

1.61

Head Grade U/G - AuEq*

g/t

3.17

Head Grade OP - AuEq*

g/t

1.44

Recovery Rate - Au

Recovery Rate - Ag

86.1

Total Payable Au

koz

2,323

Total Payable Ag

koz

56,405

Total Payable AuEq*

koz

3,025

Average Annual Production - Au

koz/yr

165

Average Annual Production - Ag

koz/yr

4,011

Average Annual Production - AuEq*

koz

215

Operating Costs

Unit

LOM Total / Avg.

OP Mining

CA$/t Mined

4.08

UG Mining

CA$/t Mined

72.47

Processing

CA$/t Processed

15.85

G&A

CA$/t Processed

5.23

Total

CA$/t Processed

50.57

AISC

US$/AuEq* oz

1,013

Capital Cost

Unit

LOM Total / Avg.

Initial Capital

M CA$

598.4

Sustaining Capital

M CA$

547.2

including U/G Sustaining Capital of:

M CA$

251.3

Closure Capital

M CA$

47.8

Total Capital

M CA$

1,193.3

Pre-Tax Financials

Unit

LOM Total / Avg.

NPV (5%)

M CA$

1,991

IRR

46.0

Payback Period

Yrs

1.6

After-Tax Financials

Unit

LOM Total / Avg.

NPV (5%)

M CA$

1,277

IRR

35.2

Payback Period

Yrs

2.0

After-Tax NPV:Initial Capital

2.1:1

Sensitivity Analysis

A sensitivity analysis was done on the financial model to verify the robustness of the outcomes and the

impacts on the Project's After-Tax NPV and IRR are tabulated below:

Table 2: Metal Price Sensitivity Analysis

Base Case

Gold Price ($US)

1,750

1,930

2,500

3,000

Silver Price ($US)

22.00

24.00

30.00

35.00

Pre-Tax

NPV5% (CA $M)

1,503

1,991

3,520

4,847

IRR

37.5%

46.0%

69.6%

87.5%

After Tax

NPV5% (CA $M)

968

1,277

2,247

3,089

IRR

28.8%

35.2%

52.8%

66.3%

NPV5%: Initial Capex

1.6

2.1

3.8

5.2

Payback Years

2.4

2.0

1.3

0.9

Project Enhancements in the updated PEA

Since the publication of the previous (2022) PEA, a comprehensive review was undertaken to identify

and incorporate optimizations that would improve overall project economics and focus exploration

activities on adding the most value to the project. The primary enhancement identified was the

integration of underground mining methods at Lawyers. In the updated PEA, underground mining will

extract 6.5 Mt at an average grade of 3.17 g/t AuEq*, representing approximately 10% of the process

plant feed and 20% of the contained ounces. Compared to the previous (2022) PEA, this change

brought forward higher grade ounces in the mine schedule, increased LOM production, extended mine

life, and reduced the strip ratio of open-pit mining. Additionally, metallurgical test work focused on

optimizing recovery, particularly silver, leading to the inclusion of a flotation circuit in the process

flowsheet. Collectively, these changes, along with the updated Mineral Resource Estimate from June 1,

2024, result in improved annual production, particularly during the early mine years, and a notable

increase in LOM production and extension of mine life (see Table 3).

The results of the updated PEA were compared to the existing (2022) PEA and are detailed in the table

below:

Table 3: Comparison of 2024 PEA to 2022 PEA Economic Results

General

Unit

2024 PEA

2022 PEA

Change

After-Tax NPV (5%)

CA$ M

1,277

589

+117%

After-Tax IRR

35.2

24.1

+46%

Payback Period

yrs

2.0

2.8

-29%

Payable AuEq*

koz AuEq*

3,025

1954

+55%

Life of Mine

yrs

+18%

After-Tax NPV:Initial Capital

2.1:1

1.2:1

+73%

AISC

US$/AuEq* oz

1,013

941

+8%

OP Stripping Ratio

W:O

5.0

5.9

-24%

Mineral Resource Estimate

The PEA is based on the Mineral Resource Estimate prepared by P&E Mining Consultants Inc., and

APEX Geoscience Ltd., and reported by Thesis Gold on June 1, 2024, which is summarized in the table

below:

Table 4: Summary of June 1, 2024 Mineral Resource Estimate

Total Pit-Constrained and Out of Pit-Stope-Constrained Mineral Resource Estimate @ 0.4 g/t and 1.5 g/t AuEq* Cut-Off

Mineral

Resource

Area

Cut-off

AuEq*

(g/t)

Classification

Tonnes

(k)

(g/t)

(%)

AuEq*

(g/t)

(koz)

(Moz)

(kt)

AuEq*

(koz)

All

Combined

Measured

35,987

1.10

38.5

1.58

1,268

44.5

1,825

Indicated

46,023

1.11

26.7

0.01

1.46

1,648

39.5

2,153

M&I

82,010

1.11

31.9

1.51

2,917

84.0

3,978

Inferred

12,401

1.48

20.9

0.06

1.82

590

8.3

727

Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. The

estimates of Pit-constrained and out-of-pit Measured, Indicated and Inferred Mineral Resources

assumed metal prices of US$1,850/oz Au, US$24/oz, 0.76 US$:CDN$ FX, with process recoveries of

91% Au and 88% Ag. A C$15/t process cost and C$5/t G&A cost were used. The Au:Ag ratio was 80:1.

The constraining pit optimization parameters were C$3.5/t mineralized and waste material mining cost

and 52° pit slopes with a 0.40 g/t AuEq* cut-off. The underground parameters were C$80/t mined with

assumed 1.5x15x15 m stopes and a 1.50 g/t AuEq cut-off.

Capital and Operating Costs

The 2024 PEA estimates the initial capital requirements at $598.4 million, versus C$484.1 million in the

previous (2022) PEA, representing a 24% increase, the majority from cost inflation and a 18% increase

in the process plant throughput rate, from 10,700 t/d to 12,600 t/d, with cumulative sustaining and closure

capital amounting to $594.2 million. LOM operating costs for the Lawyers-Ranch Project are estimated

to average C$50.57 or US$37.42 per tonne processed.

The PEA is based on owner-operated open pit and underground mining, which has an estimated LOM

cost of C$14.75 per tonne processed. Open pit mining is projected to cost $22.21 per tonne processed,

totaling $1.4 billion, while underground mining is estimated at $7.28 per tonne. Processing costs are

estimated at C$15.85 per tonne milled. G&A costs are estimated at C$5.23 per tonne processed, which

includes TSF handlings of C$0.22 per tonne processed. The capital and operating cost estimate was

developed in Q3 2024 Canadian Dollars (C$).

The capital cost summary is presented in Table 5 and the operating cost summary is presented in Table

Table 5: Summary of Capital Costs

Capital Costs

Pre-Production

(M$)

Sustaining /

Closure

(M$)

Total

(M$)

Open Pit Mining

61.8

113.0

174.8

Underground Mining

251.3

On-site Development

18.5

10.4

28.9

Mineral Processing

204.6

Tailings and Waste Management

53.5

55.7

109.2

On-site Infrastructure

45.8

21.6

67.5

Off-site Infrastructure

0.3

62.2

62.5

Project Indirects

67.1

5.0

72.1

Engineering & Project Management

41.9

6.4

48.3

Owner's Costs

16.9

Closure

47.8

Subtotal

510.5

573.5

1,084.0

Contingency

87.9

21.5

109.4

Total Capital Costs

598.4

594.9

1,193.3.6

*Numbers may not sum due to rounding

Table 6: Summary of Operating Costs

Operating Costs

$/t Processed

Average Annual M$

LOM M$

Open Pit Mining

22.21

102.6

1,436.5

Underground Mining

7.28

33.6

471

Processing

15.85

73.2

1,024.7

G&A

5.23

24.2

338.3

Total

50.57

232.8

3,270.5

Mining

The PEA assumes conventional open pit truck and shovel mining as well as underground mining using

longhole stoping and drift and fill production designed to achieve a processing rate of 12,600 t/d. Open

pit mining was used for the majority of the Mineral Resources due to its relative low cost and high

productivity, as well as the proximity to surface of the mineralized material. Underground mining methods

were utilized to target deeper higher-grade areas.

The open pits were selected from a series of optimized pit shells for each deposit. Each of the selected

shells was then divided into pushbacks to help optimize the production schedule. The mining sequence

aims to maximize economic returns and achieve the target process plant feed rate of 4.6 Mt/a (12,600

t/d) by targeting the pushbacks in descending order of net unit value. Open pit mining activities will move

an average of 64 kt/d with a peak of 84 kt/d over the 14-year mine life.

Each of the underground mines was mined in a bottom up sequence, utilizing permanent sill pillars to

allow for multiple production horizons. Underground mining will extract 6.5 Mt at an average grade of

3.17 g/t AuEq*

Over the life of mine (LOM) the Project is expected to produce 64.7 Mt of process plant feed at an

average grade of 1.61 g/t AuEq* with a total contained metal of 2,559 koz of gold and 68,798 koz of

silver based on a pit cut-off grade of 0.43 g/t AuEq* for AGB, 0.39 g/t AuEq* for Cliff Creek, 0.52 g/t

AuEq* for Ranch and an underground cut-off grade of 1.50 g/t AuEq*.

Stripping ratios average 3.1:1 at AGB, 5.0:1 at Cliff Creek and 8.7:1 at Ranch. The peak combined mine

production is approximately 84 kt/d.

Figure 1: Mine Production Schedule

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/6169/222217_thesisgold001.jpg

AuEq* = Au + Ag/87

Open Pit Mining

The PEA mine design consists of four pits at the Lawyers Property and several small pits at the Ranch

Property, with a mining sequence intended to maximize grade in the early years, smooth stripping

requirements and maintain the processing facility at full production capacity. Approximately 58 Mt of

open pit potentially mineable Mineral Resources have been defined with a grade of 1.44 g/t AuEq*

containing 2,057 koz of gold and 54,730 koz of silver and an Open Pit strip ratio of 5:1. Mining activities

will average 64 kt/d with a peak of 84 kt/d over a 14-year life of mine.

The open pit mining activities for the Project will be undertaken by an owner-operated truck/shovel fleet

with conventional drill, blast, load and haul operations. Bulk excavation will be performed using hydraulic

excavators with back-up units of either hydraulic excavators or a front-end loader. Given the overall scale

of operations and equipment requirements, a diesel-powered fleet has been selected.

Figure 2: Lawyers & Ranch Open Pits and WRSFs

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/6169/222217_thesisgold002.jpg

Underground Mining

Underground mining will take place at Dukes Ridge, Cliff Creek, and Ranch Deposits. The underground

will utilize a longhole stoping and a small zone of drift and fill to meet an average production rate of 2,500

t/d. Stopes will be extracted in a retreat sequence and backfilled with cemented rock fill (CRF) and/or

unconsolidated waste rock. All the underground development waste hauled to surface will be used as

backfill.

The mine will be developed using conventional underground equipment consisting of development

jumbos, longhole drills, bolters, LHDs, and haul trucks. Mineralized material will be hauled to the surface

to stockpile facility near the portal where open pit equipment will transport stockpiled material to the

crusher.

Figure 3: Longitudinal Projection Looking West Lawyers Underground

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/6169/222217_62ae9862940ceb83_004full.jpg

Figure 4: Longitudinal Projection Looking East Ranch Underground

To view an enhanced version of this graphic, please visit:

https://images.newsfilecorp.com/files/6169/222217_62ae9862940ceb83_005full.jpg

Approximately 6.5 Mt of underground potentially mineable Mineral Resources have been defined with a

grade of 3.17 g/t AuEq * containing 502 koz of gold and 14,068 koz of silver. Underground mine

production will occur during 9 years of the 14-year mine life. Lawyers underground will contribute 5.65 Mt

at an average grade of 3.32 g/t AuEq*, and Ranch underground 0.85 Mt at an average grade of 2.19 g/t

AuEq*.

Processing

The preliminary metallurgical testing for a bulk tonnage open pit mining scenario at Lawyers was

initiated in Spring 2020 and concluded in mid-2021. The 2020/2021 metallurgical laboratory testing

included investigations into both flotation, and cyanide leaching. Leaching was evaluated on whole rock

and on float concentrate under various operating conditions. Based on the tests results and economic

considerations the 2022 PEA flowsheet design was directed to whole rock cyanide leaching. The

laboratory data suggests an appropriate tank leach retention time of 32 hours. Washing of the pregnant

leachate solution (PLS) would be by counter current decantation (CCD) with the PLS going to zinc

precipitation in order to subsequently produce doré on site.

Metallurgical testing of a combined Ranch and Lawyers mining scenario was initiated in September

2023 and concluded with a laboratory report issued by SGS Canada Inc. in June 2024. Based on this

testwork and supported by earlier historical studies, a conceptual treatment flowsheet with

accompanying mass balance and projected gold and silver recoveries was formulated. The study

suggests that the various mineral zones of the two adjacent properties can be well served with a process

flowsheet that consists of grinding the process plant feed to 80% passing a particle size of 125 micron

of 125 µm) when the flotation circuit is used, and a P

of 106 µm when the circuit is run as leach

only. The comminution circuit will include a centrifugal gravity concentrator in the circulating load to scalp

out coarse free gold to an intensive cyanidation unit. The comminution circuit will discharge to the

flotation circuit, or in times where the feed is highly leachable, will bypass the flotation circuit directly to

the leaching circuit.

Flotation becomes particularly crucial for Ranch Mineral Resource material that exceeds approximately

1% total sulphur. The primary (rougher) flotation is where typically the majority of the precious metals

would report into a saleable concentrate. This method uses a selective collector, with the rougher bulk

product reground and cleaned in three stages, while increasing the slurry pH with lime to depress pyrite.

The rougher tail is then sent to a scavenger float circuit to produce a low grade concentrate suitable for

aggressive leaching procedures, with the primary purpose of improving overall silver recovery. The

resulting leach residue is attrition ground and then added to the final float tailing for a second stage

leach. The pregnant leachate solution (PLS), including from the gravity product is forwarded to Merrill

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