TDG GOLD Corp. Increases Grade , Quantity and Confidence IN Mineral
Page 1 of 12
TDG Gold Corp.
Unit 1 - 15782 Marine Drive
White Rock, B.C. V4B 1E6
www.tdggold.com
TDG GOLD CORP. INCREASES GRADE , QUANTITY AND CONFIDENCE IN MINERAL RESOURCE ESTIMATE
FOR SHASTA, TOODOGGONE
White Rock, British Columbia, May 01, 2023 - TDG Gold Corp. (TSXV: TDG) (the “Company” or “TDG”) is
pleased to announce an updated Mineral Resource Estimate1 (“MRE”) incorporating the results of its 2022
Phase 2 drill program at the former producing Shasta gold-silver (“Au-Ag”) mine. The key outcomes were
increased grade, increased contained ounces and a substantial improve ment of the classification of the
mineral resources. An updated technical report will be filed on the Company's website and SEDAR within
45 calendar days of this disclosure.
Highlights: 2023 Expanded & Upgraded Mineral Resource Estimate (see Table 1; below for details)
• Indicated Mineral Resource of 514.8 thousand ounces (“koz”) gold equivalent (“AuEq”2) grading
1.27 grams per tonne (“g/t”) AuEq2, contained within 12.6 million metric tonnes (“Mt”).
• Inferred Mineral Resource of 496.3 koz AuEq2 grading 1.00 g/t AuEq2, contained within 15.4 Mt.
• Increased cut-off grade for new base case scenario: 0.4 g/t AuEq 2 cut-off grade (“COG”) versus
the 0.3 g/t AuEq2 COG used in 2022 MRE1.
• MRE expanded to include the Cayley-Rainier zone to the south (Figure 1).
• MRE pit outline extends to within 100 m of the Newberry exploration target zone3 (Figure 1).
• MRE shows continuity and consistency, with an increased COG having relatively minor impact on
the pit-constrained AuEq2 ounces.
• Shasta deposit remains open at depth and along strike (see TDG news release March 20, 2023).
• MRE does not include any of the Greater Shasta-Newberry3 satellite exploration target zones.
Fletcher Morgan, TDG’s CEO, commented: “ TDG has systematically expanded and upgraded the
confidence in the Shasta deposit over the past two field seasons with ~13,250 metres of drilling. The Shasta
deposit remains open along strike and at depth, with further potential for grade improvement and
conversion of currently unclassified material contained within the mineral resource limiting pit to mineral
resources through additional drilling.
In parallel, as we have previously disclosed, our technical team has outlined potential at Gr eater Shasta-
Newberry for one or more additional Shasta scale deposits. Given the Shasta deposit’s proximity to our
existing infrastructure (consisting of the Baker mill, mine road, tailings storage facilities, mining leases and
permits), we are keen to sh ow that the project can continue to grow rapidly through targeting these
satellite exploration target zones for drilling.”
Table 1 - Shasta Updated Mineral Resource Estimate including Sensitivity (base case highlighted)*
Class AuEq2 Cutoff In Situ Tonnage and Grade AuEq2 Metal Au Metal Ag Metal AuEq2 Au Ag NSR
(g/t) Mt (g/t) (g/t) (g/t) ($CDN) (koz) (koz) (koz)
Indicated
0.30 15.830 1.08 0.84 29.8 77.58 550.9 429.6 15,167
0.35 14.026 1.18 0.92 32.5 84.57 532.2 414.9 14,660
0.40 12.578 1.27 0.99 35.0 91.22 514.8 401.4 14,166
0.45 11.300 1.37 1.07 37.6 98.11 497.4 388.0 13,667
0.50 10.198 1.47 1.1 40.2 105.04 480.6 375.1 13,187
1.00 4.579 2.41 1.89 65.1 172.39 354.1 277.5 9,584
Inferred
0.30 19.881 0.85 0.66 24.6 61.18 545.7 419.9 15,718
0.35 17.391 0.93 0.72 26.8 66.62 519.8 400.1 14,974
0.40 15.432 1.00 0.77 28.7 71.69 496.3 382.3 14,249
0.45 13.762 1.07 0.83 30.6 76.70 473.6 365.2 13,548
0.50 12.276 1.14 0.88 32.5 81.88 451.0 348.4 12,823
1.00 4.610 1.89 1.50 49.1 135.47 280.2 221.9 7,282
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TDG Gold Corp.
Unit 1 - 15782 Marine Drive
White Rock, B.C. V4B 1E6
www.tdggold.com
*Notes to the MRE table:
1. The Mineral Resource estimate has been prepared by Sue Bird, P.Eng., an independent Qualified Person. The effective date of the
mineral resource estimate is February 11, 2023.
2. Mineral Resources are reported using the 2014 CIM Definition Standards and were estimated in accordance with the CIM 2019 B est
Practices Guidelines, as required by NI43-101.
3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that all Mineral
Resources will be converted into Mineral Reserves.
4. These Mineral Resource estimates include Inferred Mineral Resources that are considered too speculative geologically to have
economic considerations applied to them that would enable them to be categorized as Mineral Reserves. It is reasonably expected that
the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued exploration.
5. The Mineral Resource has been confined by a “reasonable prospects of eventual economic e xtraction” pit using the f ollowing
assumptions, which were estimated from comparable projects:
a. Au price of US$1,800/oz, Ag price of US$20/oz at an exchange rate of 0.75 US$ per CDN $;
b. 99.8 % payable Au; 95.0 % payable Ag; US$4.25/oz Au and US$1.53/oz Ag offsite costs (refining, transport and insurance);
c. a 1.5 % NSR royalty; and uses a 94.8 % metallurgical recovery for Au and 77.2 % recovery for Ag;
d. Mining costs of CDN$2.56/tonne mineralized material, CDN$2.40/tonne waste, CDN$1.8/tonne overburden;
e. Processing Costs of CDN$12/tonne and G&A of CDN$5.00/tonne processed;
f. Pit slopes of 45 degrees.
6. The resulting NSR equation is: NSR (CDN$) = 75.67*Au Grade*0.948 + 0.74*Ag Grade*0.772
7. The resulting AuEq equation is: AuEq = Au + Ag*0.008
8. The bulk density of the deposit is based on 2021 & 2022 measurements and is 2.61 throughout the deposit and 2.00 for overburden.
9. The QP is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral
Resources.
10. Numbers may not sum due to rounding.
Figure 1: Shasta Plan Map with MRE Pit Outline.
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TDG Gold Corp.
Unit 1 - 15782 Marine Drive
White Rock, B.C. V4B 1E6
www.tdggold.com
Overview
Following the release of the initial Shasta MRE 1 in 2022 (see TDG news release May 17, 2022 ), TDG
completed a second drill campaign of 5,034 m of HQ oriented diamond drilling in 21 drillholes. This Phase
2 program focused on infill drilling to upgrade the resource classification and additional drilling to step
out and test for down dip/plunge extensions to the mineralized envelope. TDG also re -assayed all 2021
drill core with greater than detection concentrations of Au after a potential low bias was detected during
data quality analysis (see TDG news release August 29, 2022). This work, in addition to re-modelling, has
resulted in a MRE that has upgraded a significant portion of the mineral resource into the Indicated
category and has added blocks outside of the original mineral resource model into the Inferred mineral
resource. Exploration has also helped to identify t arget areas 3 for potential future mineral resource
expansion and reclassification in subsequent drilling (Figure 2).
Figure 2 – 2022 MRE1 vs. 2023 MRE Visual Comparison.
Mineral Resource overview
The Shasta deposit mineral resource database consists of 384 drillholes with 18,526 assay intervals from
1983 through 2022. This represents 37,474 metres (“m”) of assayed intervals at an average interval of 1.3
m per assay interval. Approximately 50 % of all assayed interval lengths of core used in t he mineralized
domains is comprised of TDG’s modern, HQ diameter, oriented, diamond drill core from 2021 and 2022.
The remaining assay intervals from the mineralized domains are from historical 4,5 drilling. All data used
for the mineral resource estimate h as been validated statistically to show no significant bias, either by
twinned drillholes in 2021 or through statistical comparison of historic al4,5 data with TDG drilling using
Point Validation. Historical drilling has also been validated by field validation of collar locations.
Two mineralized domains ( Figure 3) were generated based on: ( i) the major north -south Shasta fault
system as well as, (ii) the northwest trending, sub-vertical JM zone. The block model (Figure 4) has a 5 m
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TDG Gold Corp.
Unit 1 - 15782 Marine Drive
White Rock, B.C. V4B 1E6
www.tdggold.com
x 5 m x 5 m selective mining unit, with interpolation of Au and Ag calculated by Inverse Distance Cubed
(“ID3”). The interpolations were limited by the domain boundaries and were clipped to the overburden
surface. Historical mine workings4 were removed from the in-situ mineral resource estimate.
There are no other known factors or issues that materially affect the MRE other than normal risks faced
by mining projects in the province of British Columbia, Canada, in terms of environmental, permitting,
taxation, socio -economic, marketing, and political factors and additional risk factors as listed in the
“Cautionary Note Regarding Forward-Looking Information” section below.
Mineral Resource growth potential
The Shasta mineral resource area (Figure 5, hatched area) is open at depth and along strike. This provides
TDG with potential to increase the mineral resource outside of the current MRE pit extent in addition to
potentially converting unclassified blocks that may be mineralized within the MRE pit between the two
dominant mineralized trends (Shasta & JM). The expansion potential includes: (i) down-dip further west
in the Creek/Shasta zone (see TDG news release February 21, 2023); (ii) east of the JM zone toward the
Hood and Fisher zones 3 (see TDG news release February 28, 2023 ); (iii) south of the JM pit where
approximately 700 m of strike length is demonstrated to be mineralized but sparse drilling and poor assay
density suggests potential to upgrade material within the MRE pit (see TDG news release February 7,
2022); (iv) further south beyond the Cayley -Rainer zone where soil geochemistry, historic al4 trenching,
outcrop mapping and ground geophysics suggest the anomalous trend continues; and, (v) north towards
Newberry where the edge of the MRE pit is < 100 m from the edge of the Newberry exploration zone 3
(see TDG news release February 28, 2023).
The Greater Shasta exploration target area 3 (Figure 5) comprises ~256 hectares (“ha”) of prospective
exploration ground of which the Shasta mineral resource area accounts for only 43 ha. The other ~213 ha
represents road -connected, highly prospective exploration ground with potential for the discovery of
additional epithermal Au-Ag style mineralization in close proximity to the defined Shasta mineral resource
area. During 2022, TDG focused grassroots exploration efforts on recompilation and targeting outside of
the Shasta mineral resource area ( Figure 1). This included a comprehensive data review led by key TDG
consultant, Chris Dail, in addition to field exploration which included geological reconnaissance, ground
geophysics and soil geochemistry (see TDG news release September 13, 2022 ). This work resulted in the
defining of four high priority, drill-ready targets within the Greater Shasta target area3 (Figure 5) and the
‘rediscovery’ of the Newberry target, the southern extent of which lies within 100 m of the Greater Shasta
target area 3 and is also drill- ready ( Figure 5). These targets have similar geological, geochemical,
geophysical and structural characteristics to the Shasta deposit (see TDG news releases April 03, 2023 and
April 06, 2023 ) and present an opportunity to discovery and define additional mineralization in close
proximity to the Shasta deposit.
Steven Kramar, TDG VP Exploration, commented: “Through our extensive data recompilation exercise, we
have now defined multiple high priority target zones within the Greater Shasta -Newberry exploration
target area of which the Shasta deposit is the first that we have dri ll tested. A pattern that is starting to
emerge is the potential for these individual ‘higher priority’ target zones to coalesce into what we hope
will become a single, larger target. We have seen this with the Cody Lee zone, which has been expanded
to the edge of the Hood zone. We have also seen this with the Fisher and Hood zones appearing to intersect
east of the Shasta deposit and showing features that could suggest further connectivity into the Shasta
deposit itself at the JM zone.
Within the 256 ha Greater Shasta area, all target zones lie within 1 kilometre of the Shasta MRE pit outline
and almost the entirety of the Greater Shasta area is interconnected by historical exploration roads and
trails. The potential to discover additional Shasta -sized deposits within the Greater Shasta- Newberry
target area is a priority for our proposed future exploration programs.”
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TDG Gold Corp.
Unit 1 - 15782 Marine Drive
White Rock, B.C. V4B 1E6
www.tdggold.com
Figure 3 – Shasta Deposit Domain Model.
Figure 4 – Shasta Deposit Resource Block Model.
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TDG Gold Corp.
Unit 1 - 15782 Marine Drive
White Rock, B.C. V4B 1E6
www.tdggold.com
Figure 5 – Greater Shasta-Newberry Project Area showing Shasta & Exploration Target zones3.
Forward Plan
In order to continue to upgrade and expand the Shasta MRE, and in anticipation of progressing towards a
preliminary economic assessment (“PEA”), TDG plans to:
1) Integrate TDG’s improved geological model using lithogeochemistry and detailed core logging
from the 2021 and 2022 drill campaigns . The geology at Shasta is multifaceted, with alteration
and hydrothermal brecciation often masking distinguishing features of primary lithology. TDG has
employed modern lithogeochemical techniques to investigate : (i) if the volcanic/volcaniclastic
facies of the Shasta deposit imply a distinct geochemical ‘fingerprint’ ; and, (ii) if there is a grade
sensitivity based on lithogeoc hemical rheology. Improved understanding of controls on
mineralization could further improve confidence in the MRE and provide tools for targeting
additional mineralization.
2) Reconfirm historical4 collar locations using Differential GPS (“DGPS”). A comprehensive program
of high-precision DGPS to confirm/reconfirm as many historical4 collars in the Greater Shasta area3
as possible with a higher degree of precision than previously completed. This effort will modernize
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TDG Gold Corp.
Unit 1 - 15782 Marine Drive
White Rock, B.C. V4B 1E6
www.tdggold.com
the Greater Shasta database (including the Shasta resource area) to a precision better than 50
cm; assisting with future exploration and vein location/orientation investigations. Such data are
not expected to have a material impact on the current MRE but could improve understanding o f
controls on, and continuity of, mineralization.
3) Undertake Detailed surveying of historical4 underground development. Utilizing DGPS, TDG will
survey the historical 4 portals to a precision better than 50 cm and access the underground
workings to tie high precision modern DGPS coordinates with modern survey data. This will enable
location of the historical 4 underground workings to a certainty level of < 1 m and allow better
control on future drilling from surface by providing a 3D view of the Shasta epithermal vein system
and improve confidence in interpolation of mineralization.
4) Complete the vein-orientation study and link this to the lithogeochemical/lithological analysis.
TDG has two drill campaigns of high density oriented large (HQ) diameter core drilling around the
Shasta deposit. Most of these cores are oriented and are undergoing vein orientation analysis
which, combined with the lithogeochemical work, should assist in understanding the dominant
orientations of veins/vein arrays that contain the highest precious metal concentrations. This
could further improve confidence in the MRE and enhance vectoring of higher grade internal
mineralized trends.
5) Undertake additional drilling of the known open extensions of the mineralization. The Shasta
deposit is open at depth and along strike (see TDG news release March 20, 2023 ). Drilling
additional potential extensions of the known mineralized system could produce an increase in the
overall Shasta mineral resource. Areas of interest have been identified within and adjacent to the
proposed pit outline where drill density and assay data are currently sparse, but mineralization
appears to persist; for example, between JM/Shasta zone and Cayley -Rainier zone (Figure 1).
This area is within the mineral resource limiting pit and, as such, any mineralization encountered
could positively impact a future MRE by increasing mineralized blocks and converting in-situ waste
to mineralized tonnes, thus reducing the implied strip ratio.
6) Exploring Greater Shasta -Newberry as a larger mineralized system . Exploration and drilling at
Greater Shasta-Newberry offers the potential to increase understanding of the epithermal system
and presents the opportunity to make one or more additional Shasta- sized discoveries for
potential inclusion within a larger, updated MRE.
Geological Interpretation
The Shasta property is underlain predominantly by a succession of feldspar, quartz, biotite and
hornblende crystal-rich pyroclastic and epiclastic rocks within the Toodoggone volcanics. In the Shasta
deposit area, these rocks have been informally termed the basal series, the pyroclastic series and the
epiclastic series based on differences in co mposition and depositional environments. In general, the
epiclastic/volcaniclastic rocks occur to the west and north of the Shasta deposit whereas the pyroclastic
rocks host the mineralization and underlie most of the area immediately south and east of the Shasta
deposit. The structure on the Shasta property is dominated by north -northwest trending normal and/or
dextral block faulting where tilting and rotation of the fault blocks is gentle, and the structural
fabrics/breaks control the initial emplacement and/or displacement of the Au-Ag mineralization.
Geology of the Shasta deposit is a succession of rocks derived from volcanic activity and periods of
quiescence with subsequent active weathering of volcanic slopes . Rocks hosting the Shasta deposit can
be summarized as lapilli- ash tuffs, lapilli- block tuffs with minor ash -flows, lava flows and associated
epiclastic rocks. Rocks within this succession can be cryptic to identify with alteration, mineralization and
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TDG Gold Corp.
Unit 1 - 15782 Marine Drive
White Rock, B.C. V4B 1E6
www.tdggold.com
hydrothermal brecciation masking protolith identification. While compositional rheology within these
units is likely associated with vein development, comprehensive investigations utilizing modern
lithogeochemical techniques aided by high-density drilling has never been completed (see Forward Plan).
The Shasta deposit is a low sulphidation epithermal multiphase quartz -carbonate stockwork/
hydrothermal breccia vein deposit (quartz- adularia type) endowed by significant Au -Ag mineralization.
The deposit consists of multiple overlapping high -grade quartz-calcite stockwork/breccia systems that
display similar characteristics, occurring as narrow curviplanar breccias that pinch and swell with variable
alteration and vein intensity over known strike lengths > 1,000 m, in addition to a lower grade ‘halo’ of
mineralized rocks hosting Au-Ag mineralization proximal to the high-grade breccias.
Mineralization is dominantly native gold, silver, electrum and acanthite associated with finely
disseminated grey sulphides and coarser grained pyrite. Mineralization is associated within quartz and
calcite, with higher grades associated with higher proportions of calcite/quartz ratios. While rocks from
the Shasta deposit can be strongly altered and/or silica flooded, alteration (potassic, chloritic, phyllic and
propylitic) visual wallrock alteration intensity does not appear to be indicative of precious metal
concentrations and geochemical methods are better utilized. Au:Ag ratios range from 1:10 ( i.e. 1 g/t Au
per 10 g/t Ag) to 1:100 with a deposit average of about 1:45.
The Au-Ag mineralization of the Shasta deposit is structurally controlled along two dominant trends, the
Shasta/Creek zone and the JM zone. The two trends encompass most of the histori cally4 mined mineral
resources during past mining efforts. The Creek/Shasta zone strikes approximately 180°, dips moderately
to the west, and has a strike extent of at least 800 m. The JM zone strikes approximately 330°, dips steeply
to the east, and has a strike extent of at least 1,000 m. Both zones have an interpreted shallow northern
plunge, with the attitude of the structures producing an inverted “V” shape geometry converging in the
north and diverging to the south.
The Au-Ag mineralization crosses lithological boundaries. The Shasta/Creek zone mineralization may be
associated with the Shasta fault, and the high-grade ‘core’ of the mineralized envelope approximates the
attitude of the Shasta fault for a significant portion of the strike length. While the Shasta fault is likely
post-mineral, the north -northwest trend of the Shasta fault (and regional structures) and associated
lithological units are continuous along the western portion of the Shasta deposit, and therefore modelling
economic grade along these trends (i. e. lithological and mineralization) is appropriate to use as the
primary basis of the 3D modelling. The JM zone has been interpreted as a fracture system with internal
hydrothermal brecciation and has a consistently mapped attitude and tren d of the high -grade
mineralization (core) across significant distance of strike length. The improved lithological model
demonstrates continuity across a significant portion of strike length, and thus the same methodology is
applied to modelling as the Shasta/Creek zone. Geological downhole structural data (faults) were utilized
to assist in the generation of the 3D Shasta domain model.
Data Verification
TDG followed industry standard Quality Assurance/Quality Control (”QA/QC”) protocols for the 2021 and
2022 drill programs by inserting blind certified reference materials (“CRMs”) , field duplicates and blanks
into the sample stream of core samples at sufficient proportions to primary core samples . QA/QC is
maintained internally at the lab through rigorous use of internal CRMs, blanks, and duplicates.
If a QA/QC sample returns an unacceptable value an investigation into the results is triggered and, when
deemed necessary, the samples that were tested in the batch with the failed QA/QC sample are re-tested.
The drill cores from 2021 and 2022 drilling were delivered to the core shack at TDG’s Baker Mine site, and
processed by geologists who inserted QA/QC samples into the sampling sequence. The drill core was cut
in half (1/2 HQ core) and placed in zip -tied polyurethane bags, then in security -sealed rice bags before