SGX Resources Inc.
55 North Mining Inc. Announces Updated Resource Estimate in conjunction with April 20, 2021 start of trading
Toronto, Ontario – April 19, 2021 – 55 North Mining Inc. (“55 North” or the “Company”) is pleased to report an updated NI 43-101 compliant resource estimate on its high grade Last Hope Gold Project in Lynn Lake Manitoba. The update to the resource estimate was a requirement for the upcoming listing of its common shares (“Common Shares”) on the Canadian Securities Exchange (“CSE”) under the symbol “FFF”.
Resource Estimate Updated for Gold Price and Costs, Not for New Drilling
The Company notes that the updated resource estimate does not reflect any new drilling, but was prepared to reflect: 1) a recent (February 2021) site visit by the Technical Report authors, P&E Mining Consultants Inc., and, 2) using an updated gold price and costs used to calculate the cut-off grade for the resource estimate. With regards to the latter, a higher gold price was used (US$ 1,550/oz versus the previous $1,225/oz) representing the approximate 2 year trailing average price as at December 31, 2020. This was partially offset by the effect of a higher mining cost (C$ 90/tonne versus the previous C$ 80/tonne) resulting in a cut-off grade of 1.8 g/t (versus the previous 2.0 g/t). The resulting updated resource estimate is as follows:
1) Mineral Resources, which are not Mineral Reserves, do not have demonstrated economic viability. The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
2) The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
3) The Mineral Resources in this Technical Report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
4) The Mineral Resource Estimate is based on 219 drill holes of which 15 holes were drilled in 2012 and 204 holes were historical diamond drill holes. The core from this historical drilling remains intact at the Property and was partially re-assayed in 2012.
5) The underground Mineral Resource grade blocks were quantified above the 1.8 g/t Au cut-off and had exhibited continuity and reasonable potential for extraction by cut and fill and longhole mining methods.
New Drilling Underway: New Resource Estimate expected later in 2021
There are currently 2 diamond drill rigs operating on the Last Hope Gold Project resource area. The goal is to infill, upgrade and extend the current resource estimate. Drill results will be released in the coming weeks as drill results are received, compiled, and analyzed. A new resource estimate, reflecting this new data, is expected to be completed before the end of 2021.
Increase to Indicated and Inferred Resources
As shown in the following table, Indicated resources increased to 38,000 ounces from 37,000 ounces, and Inferred resources increased to 184,100 ounces from 182,000 ounces.
Table 1: Mineral Resource at Last Hope using 1.8 g/t and 2.0 g/t cut-off
Sensitivity to Gold cut-off grades
The Au cut-off sensitivities to the Mineral Resource Estimate are demonstrated in the following table:
Table 2: Mineral Resource Estimate Sensitivity
About 55 North Mining Inc.
55 North Mining Inc. is an exploration and development company advancing its high-grade Last Hope Gold Project located in Manitoba, Canada.
FOR FURTHER INFORMATION, PLEASE CONTACT:
Mr. Bruce Reid
Chief Executive Officer, Director
55 North Mining Inc.
br@idahochamp.com
Source: https://www.55northmining.com/news/
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