Gold Terra Announces Initial Mineral Resource Estimate: 109,000 Gold Ounces Indicated and 432,000 Gold Ounces Inferred on the Con Mine Option Property, NWT
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Gold Terra Announces Initial Mineral Resource Estimate: 109,000 Gold Ounces Indicated and
432,000 Gold Ounces Inferred on the Con Mine Option Property, NWT
September 7, 2022, Vancouver, B.C. – Gold Terra Resource Corp. (TSX-V: YGT; Frankfurt: TX0; OTC QX:
YGTFF) (“Gold Terra” or the “Company” ) is pleased to announce the initial Mineral Resource Estimate
(“MRE”) on the Con Mine property, which is under option from subsidiaries of Newmont Corporation and
acquirable by the Company upon fulfillment of certain conditions set out in the option agreement (the
“Con Mine Option Property”), and located adjacent to the Company’s 100% owned Yellowknife City Gold
project (the YCG Project”) in the Northwest Territories.
The Company’s initial MRE on the Con Mine option Property is comprised of an underground mineral
resource of 109,000 gold ounces in the Indicated category and 432,000 ounces of gold in the Inferred
category (see Table below). In addition, the Company has 1.2 Moz inferred resources (see March 31, 2021
Technical Report) on their adjacent 100% owned YCG property. This extensive land package is close to
the City of Yellowknife with all its extensive existing infrastructure.
Mineral Resource Estimate Highlights
Con Mine Option Property initial MRE:
▪ Underground Indicated Mineral R esource of 0.45million tonnes averaging 7.55 g/t for 109,000
ounces of contained gold
▪ Underground Inferred Mineral Resource of 2.0 million tonnes averaging 6.74 g/t for 432,000 ounces
of contained gold
Chairman and CEO, Gerald Panneton, commented, “This initial mineral resource estimate (MRE) on the
Con Mine Option Property represents a measuring stick of our progress toward satisfying one of the
requirements of the option agreement with Newmont, namely delineating a potential of a minimum of 1.5
million ounces of gold in all categories. Th is initial MRE confirms the significant high-grade potential of
this project as it remains open for further expansion in all directions , and along its 6-kilometre-long
structure. The Con Mine produced more than 5 million ounces of high-grade gold (16 g/t Au) from the
Campbell Shear structure on 2 kilometres of strike length alone. We strongly believe that additional drilling
along strike and at depth will continue to expand the current MRE , as all the surface drilling so far has
been very successful. The Company has spent approximately $6.2 million for an approximate cost of $12
per ounce of gold to date.”
Mr. Panneton further commented, “We look forward to continuing our drilling program on the Campbell
Shear with the goal of advancing the project towards an economic study and bringing further value to our
shareholders by discovering more multi-million ounces deposits on our projects.”
Mineral Resource Estimate
This initial Con Mine Option Property MRE incorporates a total of 41 diamond drill holes totaling 21,019
metres, completed by Gold Terra from September 2020 to June 2022 and all existing historic holes drilled
before 2003, as interpreted by Gold Terra. The Yellorex Indicated resource was drilled on 25 to 50-metre
spacing, between surface and 300 metres, and remains open at depth.
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This MRE on the Con Mine Option Property demonstrates the success and progress of Gold Terra’s recent
drilling programs toward satisfying the minimum 1.5 million ounces of gold requirement in all resource
categories, under the option agreement with subsidiaries of Newmont Corporation (see details below
under Option to Acquire the Con Mine Property).
The table b elow shows the MRE for the Con Mine Option Property and the Company’s adjacent YCG
Project, which was reported in the March 16, 2021 news release and subsequent Technical Report dated
March 31, 2021. The Company has not updated the YCG MRE with the positive results from t he 2022
winter drilling program of 6,011 metres in the Mispickel area, part of the Northbelt block . More drilling
is required on these multiple high-grade mineralized structures located only 20 kilometres north of the
City of Yellowknife.
Mineral Resource Estimate: Con Mine Option Property (Effective date of September 2, 2022)
and YCG Project (Effective date of March 14, 2021):
Area Category Cut-off
Grade
g/t Au
Tonnes
000
tonnes
Grade
g/t Au
Contained
000 oz Au
Con Mine Option
PProperty
Yellorex Main Indicated /UG 3.5 821 7.55 109
Inferred/UG 3.5 993 6.89 220
Yellorex North Inferred/UG 3.5 463 7.42 111
Kam Point Inferred/UG 3.5 536 5.83 101
Subtotal Indicated/UG
3.5 821 7.55 109
Inferred/UG 3.5 1.992 6.74 432
YCG Project
Sam Otto/Dave’s
Pond
Inferred/In-Pit 0.4 20,403 1.10 721
Inferred/UG 1.4 948 1.75 53
Mispickel Inferred /In-Pit 0.4 893 2.22 64
Crestaurum Inferred/In-Pit 0.4 461 6.17 91
Inferred/UG 2.5 954 6.16 189
Barney Inferred/UG 2.0 646 4.30 89
Subtotal Inferred/In-Pit 21,757 1.25 876
Inferred/UG 2,548 4.04 331
Inferred In-Pit+UG
InpPPit+UG
24,305 1.54 1,207
Table 1: Parameters Used to Estimate the Underground Base Case Cut-off Grade
Parameter Unit Underground
Bulk
Gold Price US$ per ounce $1,750
Gold Recovery Percent (%) 92
Mining Cost US$ per tonne mined $98.00
Processing Cost US$ per tonne milled $33.00
General and
Administrative US$ per tonne milled $30.00
Mining Recovery Percent (%) 90
Cut-Off Grade g/t Au 3.50
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Table 2: Cut-off Grade sensitivity
Yellorex-Kam Total
Cut-off Grade
(g/t Au) Tonnes Grade
(Au g/t)
Contained
Gold Ounces
Indicated
2.0 821,000 5.34 141,000
2.5 673,000 6.02 130,000
3.0 550,000 6.75 120,000
3.5 449,000 7.55 109,000
4.0 377,000 8.27 100,000
5.0 273,000 9.73 85,000
Inferred
2.0 5,310,000 4.08 697,000
2.5 3,336,000 5.18 556,000
3.0 2,501,000 6.01 483,000
3.5 1,992,000 6.74 432,000
4.0 1,720,000 7.20 398,000
5.0 1,385,000 7.86 350,000
(1) The current Indicated and Inferred mineral resource was estimated by Allan Armitage, Ph.D., P.
Geo., (“Armitage” or the “Author”) of SGS Geological Services. Armitage is an independent
Qualified Person as defined by NI 43-101 and is responsible for the MRE. The effective date of the
mineral resource estimate is September 2, 2022.
(2) Armitage conducted a site visit to the Property on August 15, 2022.
(3) The classification of the current Mineral Resource Estimate into Inferred is consistent with current
2014 CIM Definition Standards - For Mineral Resources and Mineral Reserves
(4) All figures are rounded to reflect the relative accuracy of the estimate.
(5) All Resources are presented undiluted and in situ, constrained by 3D wireframe models within
broader shear zone models , and are considered to have reasonable prospects for eventual
economic extraction.
(6) 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.
(7) Resource modelling, based on historic and recent drilling, was completed by Gold Terra geologists
and reviewed by Armitage. Minor revisions were made based on the review.
(8) It is envisioned that the Yellorex -Kam (Campbell Shear) deposits may be mined using lower cost
underground bulk mining methods. A selected base case cut -off grade of 3.5 g/t Au is used to
determine the underground mineral resource.
(9) Values in this table reported above and below the base case cut -off grade should not be
misconstrued with a Mineral Resource Statement. The values are only presented to show the
sensitivity of the block model estimates to the selection of cut-off grade.
(10) High grade capping was done on 1.0 m composite data. A capping value of 28 g/t Au was applied.
(11) A Specific gravity value of 2.80 was determined based on physical specific gravity test work from
other similar deposits on the Property.
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(12) Gold was estimated for the Yellorex -Kam deposits using the the inverse distance cubed (ID 3)
interpolation method. Blocks within each mineralized domain were interpolated using only
composites assigned to that domain.
(13) The base case cut -off grade is based on a gold price of US$1,750 per ounce, a gold recovery of
92%, processing and G&A cost of $US63.00 per tonne milled, and a mining cost of $US98.00 for
underground. The cut -off grade should be re -evaluated in light of future prevailing market
conditions (metal prices, exchange rates, mining costs etc.).
(14) The estimate of Mineral Resources may be materially affected by environmental, permitting, legal,
title, taxation, socio-political, marketing, or other relevant issues
(15) Armitage is not aware of any known mining, processing, metallurgical, environmental,
infrastructure, economic, permitting, legal, title, taxation, socio -political, or marketing issues, or
any other relevant factors that could materially affect the current MRE.
The MRE on the Con Mine Option Property includes three gold deposits – Yellorex Main, Yellorex North,
and Kam Point (Figure s 1 and 2). The MRE on the YCG Project includes four gold deposits – Sam Otto,
Mispickel, Crestaurum and Barney (Figure 1).
Figure 1 – Location of Con Mine Option Property and Part of the YCG Project
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Figure 2 – Location of the Gold Deposits on Con Mine Option Property
Potential to Increase Mineral Resources on the Con Mine Option Property
The Yellowknife gold camp was developed along the Campbell Shear, a significant structure on the belt
and host to the Giant and Con gold mines which produced a combined 14 million ounces of gold. The
Company’s strategy is to continue drilling on the Campbell Shear at depth and south of the Con Mine to
further increase the mineral resources. The exploration potential along the Campbell Shear south of the
Con Mine is shown in Figure 3.
The Company is planning a winter 2023 drilling program which will include testing all zones mentioned in
the initial MRE at depth and along strike, south of the Mine. If budget permits, the Company also will be
testing the Campbell shear at depth of up to 2000 metres below surface.
Figure 3 – Campbell Shear Exploration Potential of the Con Mine Property
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SGS used Geovia Gems software to construct mineralized wireframes for each zone and then interpolated
tonnage and grade into block models constrained by the mineralized wireframes and used inverse
distance squared (ID2) or inverse distance cubed (ID3) interpolation. Appropriate interpolation parameters
were generated for each deposit based on the mineralization style and geometry.
Option to Acquire the Con Mine Property (Con Mine Option Property)
Gold Terra entered into a definitive option agreement (the "Option Agreement") with Newmont Canada
FN Holdings ULC ("Newmont FN") and Miramar Northern Mining Ltd. ("MNML"), both wholly owned
subsidiaries of Newmont Corporation, which grants Gold Terra the option, upon meeting certain minimum
requirements, to purchase MNML from Newmont FN (the "Transaction"), which includes 100% of all the
assets, mineral leases, Crown mineral claims, and surface rights comprising the Con Mine, as well as the
areas immediately adjacent to the Con Mine, as shown in Exhibit A (the "Con Mine Option Property"
(see November 22, 2021 news release).
Under the Option Agreement, Gold Terra has agreed to incur a minimum of $8.0 million in exploration
expenditures over a period of four (4) years, which will include all exploration expenditures incurred to
date under the initial Exploration Agreement. Gold Terra has also agreed to complete a mineral resource
estimate containing a minimum of 1.5 million ounces in all categories, consisting of a minimum of 40% of
a measured and indicated resource and not more than a 60% inferred resource; obtain all necessary
regulatory approvals for the purchase and transfer of MNML's assets and liabilities to Gold Terra; and post
a cash bond to reflect the status of the Con Mine reclamation plan at the time of closing. The closing of
the Transaction will then be completed with Gold Terra making a final cash payment of $8.0 million.
NI 43-101 Technical Report
A NI 43-101 Technical Report disclosing the MRE for the Con Mine Option Property will be filed on SEDAR
(www.sedar.com) within 45 days.
Qualified Persons
The MRE for Con Mine Option Property and YCG Project was prepared by Dr. Allan Armitage, P.Geo. from
SGS, an Independent Qualified Person as defined under NI 43-101.
Dr. Allan Armitage and Joe Campbell, P. Geo., Chief Operating Officer for Gold Terra, a Qualified Person
within the meaning of NI 43-101, have reviewed and approved the technical information contained in this
news release.
Technical Information and Quality Control Procedures
Gold Terra ’s drilling programs are monitored through the implementation of a quality assurance and
quality control (QA/QC) program. The drill core (NQ size) is logged and sample intervals for assay are
selected by Gold Terra’s geologists. In general, the sampling intervals vary from h alf-a-metre to one-
metre in length depending on the geology and mineralization observed. The drill core samples are cut by
diamond saw at Gold Terra's core facilities in Yellowknife. Half of the core sample is left in the core box
and stored in a dedicated core storage facility in Yellowknife. The other half-core samples are transported
in securely sealed bags by Gold Terra personnel to ALS Limited (“ALS”) preparation laboratory in
Yellowknife. After sample preparation, samples are shipped to ALS Vancouver facility for gold and a
complete digestion four acid ICP analysis for 33 elements. Gold assays of >3 g/t are re -assayed on a 30-
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gram split by fire assay with a gravimetric finish. ALS is a certified and accredited laboratory service
operating to ISO 17025 standards. ALS routinely inserts certified gold standards, blanks and pulp
duplicates, and results of all QC samples are reported. Gold Terra inserts certified standards and blanks
into the sample stream as a check on laboratory QC.
In addition to traditional assay methods, Gold Terra also carries out a variety of spectrometry tests on
selected core and rock samples to det ermine the associated mineral characterization and the gold
deportment within the mineralized zones.
About Gold Terra
The YCG project encompasses 800 sq. km of contiguous land imm ediately north, south and east of the
City of Yellowknife in the Northwest Territories. Through a series of acquisitions, Gold Terra controls one
of the six major high -grade gold camps in Canada. Being within 10 kilometers of the City of Yellowknife,
the YCG is close to vital infrastructure, including all -season roads, air transportation, service providers,
hydro-electric power, and skilled tradespeople. Gold Terra is currently focusing its drilling on the prolific
Campbell shear, where 14 Moz of gold has b een produced, and most recently on the Con Mine Option
claims immediately south of the past producing Con Mine (1938-2003).
The YCG lies on the prolific Yellowknife greenstone belt, covering nearly 70 kilometers of strike length
along the main mineralized shear system that host the former-producing high-grade Con and Giant gold
mines. The Company's exploration programs have successfully identified significant zones of gold
mineralization and multiple targets that remain to be tested which reinforces the Company's objective of
re-establishing Yellowknife as one of the premier gold mining districts in Canada.
Visit our website at www.goldterracorp.com.
For more information, please contact:
Gerald Panneton, Chairman & CEO
Mara Strazdins, Manager of Investor Relations
Phone: 1-778-897-1590 | 604-689-1749 ext 102
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 release.
Information Concerning Estimates of Mineral Resources
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. Therefore,
investors are cautioned not to assume that all or any part of an Inferred Mineral Resource could ever be
mined economically. It cannot be assumed that all or any part of “ Measured Mineral Resources,”
“Indicated Mineral Resources,” or “ Inferred Mineral Resources” will ever be upgraded to a higher
category. The Mineral Resource estimates contained herein may be subject to legal, political,
environmental or other risks that could materially affect the potential development of such mineral
resources. Refer t o the Technical Report, once filed, for more information with respect to the key
assumptions, parameters, methods and risks of determination associated with the foregoing.
Cautionary Note to United States Investors
The Company prepares its disclosure in accordance with the requirements of securities laws in effect in
Canada, which differ from the requirements of U.S. securities laws. Terms relating to Mineral Resources
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in this news release are defined in accordance with NI 43 -101 under the guidelines set out in CIM
Definition Standards on Mineral Resources and Mineral Reserves, adopted by the Canadian Institute of
Mining, Metallurgy and Petroleum Council on May 19, 2014, as amended ("CIM Standards"). The U.S.
Securities and Exchange Commissi on (the "SEC") has adopted amendments effective February 25, 2019
(the "SEC Modernization Rules") to its disclosure rules to modernize the mineral property disclosure
requirements for issuers whose securities are registered with the SEC under the U.S. Securities Exchange
Act of 1934. As a result of the adoption of the SEC Modernization Rules, the SEC will now recognize
estimates of " Measured Mineral Resources", " Indicated Mineral Resources" and " Inferred Mineral
Resources", which are defined in substantiall y similar terms to the corresponding CIM Standards. In
addition, the SEC has amended its definitions of " Proven Mineral Reserves" and " Probable Mineral
Reserves" to be substantially similar to the corresponding CIM Standards.
U.S. investors are cautioned that while the foregoing terms are "substantially similar" to corresponding
definitions under the CIM Standards, there are differences in the definitions under the SEC Modernization
Rules and the CIM Standards. Accordingly, there is no assurance any Mineral Resources that the Company
may report as " Measured Mineral Resources", " Indicated Mineral Resources" and " Inferred Mineral
Resources" under NI 43 -101 would be the same had the Company prepared the Mineral R esource
estimates under the standards adopted under the SEC Modernization Rules. In accordance with Canadian
securities laws, estimates of " Inferred Mineral Resources" cannot form the basis of feasibility or other
economic studies, except in limited circumstances where permitted under NI 43-101.
Cautionary Note Regarding Forward-Looking Information
Certain statements made and information contained in this news release constitute "forward -looking
information" within the meaning of applicable securities legislation (" forward-looking information ").
Generally, this forward-looking information can, but not always, be identified by use of forward -looking
terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of
such words and phrases or statements that certain actions, events, conditions or results "will", "may",
"could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative conno tations
thereof.
All statements other than statements of historical fact may be forward -looking information. Forward -
looking information is necessarily based on estimates and assumptions that are inherently subject to
known and unknown risks, uncertaintie s and other factors that may cause the actual results, level of
activity, performance or achievements of the Company to be materially different from those expressed
or implied by such forward-looking information. In particular, this news release contains forward-looking
information regarding the current drilling on the Campbell Shear , potentially adding ounces to the
Company’s current YCG mineral resource, and the Company's objective of re-establishing Yellowknife as
one of the premier gold mining districts in Canada.
There can be no assurance that such statements will prove to be accurate, as the Company's actual results
and future events could differ materially from those anticipated in this forward -looking information as a
result of the factors discussed in the "Risk Factors" section in the Company's most recent MD&A and
annual information form available under the Company's profile at www.sedar.com.
Although the Company has attempted to identify important factors that would cause actual results to
differ materially from those contained in forward -looking information, there may be other factors that
cause results not to be as anticipated, estimated or intended. The forward-looking information contained
in this news release is based on information available to the Company as of the date of this news release.
There can be no assurance that such statements will prove to be accurate, as actual results and f uture
events could differ materially from those anticipated in such statements. All of the forward -looking