What changed in this filing

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Item 2. Properties

2024-03-08 compared with 2023-03-08 · 23 added, 25 removed, 342 unchanged (12% of the section changed)

8 unchanged sentences

You are cautioned that, except for that portion of mineral resources classified as mineral reserves, mineral resources do not have demonstrated economic value.

Inferred mineral resources are estimates based on limited geological evidence and sampling and have a too high degree of uncertainty as to their existence to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.

Inferred mineral resources are estimates based on limited geological evidence and sampling and have too high of a degree of uncertainty as to their existence to apply relevant technical and economic factors likely to influence the prospects of economic extraction in a manner useful for evaluation of economic viability.

Estimates of inferred mineral resources may not be converted to a mineral reserve.

9 unchanged sentences

While the requirements for reporting mineral resources, including subcategories of measured, indicated and inferred resources, and mineral reserves are largely similar for NI 43-101 and S-K 1300 standards, disclosures of resources and reserves in Canada and the United States could vary as a result of applying the applicable requirements of each jurisdiction.

The information that follows relating to the Livengood Gold Project is derived, for the most part, from, and in some instances is an extract from, the TRS relating to the property attached hereto as Exhibit 96.1 and prepared in compliance with Item 601(b)(96) and subpart 1300 of Regulation S-K.

The information that follows relating to the Livengood Gold Project is derived, for the most part, from, and in some instances is an extract from, the TRS and prepared in compliance with Item 601(b)(96) and subpart 1300 of Regulation S-K.

Portions of the following information are based on assumptions, qualifications and procedures that are not fully described herein.

Reference should be made to the full text of the TRS, incorporated herein by reference and made a part of this Annual Report on Form 10-K.

Reference should be made to the full text of the TRS, incorporated herein by reference into this report.

LIVENGOOD GOLD PROJECT, ALASKA

The Company currently holds, or has rights to acquire, ownership or leasehold interests in a group of adjacent mineral properties in Alaska which are collectively referred to as the “Livengood Gold Project.” The Livengood Gold Project is located approximately 113 km (70 miles) by road northwest of Fairbanks, Alaska and approximately 65 km (40 miles) north of the boundary of the Fairbanks North Star Borough as shown in Figure 1 below.

The Company currently holds, or has rights to acquire, ownership or leasehold interests in a group of adjacent mineral properties in Alaska that we collectively refer to as the “Livengood Gold Project.” The Livengood Gold Project is located approximately 113 km (70 miles) by road northwest of Fairbanks, Alaska and approximately 65 km (40 miles) north of the boundary of the Fairbanks North Star Borough as shown in Figure 1 below.

The Project lies within the Tolovana Mining District in the northern part of the Tintina Gold Belt.

6 unchanged sentences

The Project area is centered on Money Knob, a local topographic high point located at 65 ̊30’16’’N, 148 ̊31’33’’W.

This feature and the adjoining ridgelines are the probable lode gold source for the Livengood placer deposits which lie in the adjacent valley and which have been actively mined since 1914 and have produced more than 500,000 ounces of gold.

This feature and the adjoining ridgelines are the probable lode gold source for the Livengood placer deposits that lie in the adjacent valley and that have been actively mined since 1914 and have produced more than 500,000 ounces of gold.

The Livengood Gold Project straddles and is accessed via the Elliot Highway, a paved, all-weather road linking the north slope oil fields at Prudhoe Bay to central and southern Alaska through Fairbanks.

At present there are no full-time residents in the former mining town of Livengood.

A number of unpaved roads have been developed in the area providing excellent access.

A number of unpaved roads have been developed in the area providing excellent access to the Livengood Gold Project.

A 427 m (1400-foot) runway is located 6 km (3.7 miles) to the southwest near the former Alyeska Pipeline Company Livengood Camp and is suitable for light aircraft.

11 unchanged sentences

The Company does not have any plant or equipment at the site, relying on contractors to perform the work.

The nearest community to Livengood Gold Project is the village of Minto, a town with a population of approximately 132 located approximately 65 km (40 miles) southwest by road.

The nearest community to Livengood Gold Project is the village of Minto, a town with a population of approximately 132 people located approximately 65 km (40 miles) southwest by road.

The Fairbanks metropolitan area has a population of approximately 100,000 people, and comprises the regional center with hospitals, government offices, businesses and the University of Alaska, Fairbanks.

41 unchanged sentences

Alaska Mental Health Trust Lease.

A lease of the AMHT mineral rights having a term commencing July l, 2004 and extending 19 years until June 30, 2023, subject to further extensions beyond June 30, 2023 by either commercial production or payment of an advance minimum royalty equal to 125% of the amount paid in year 19 and diligent pursuit of development.

A lease of the AMHT mineral rights having a term commencing July l, 2004 and extending 19 years until June 30, 2023, subject to further extensions beyond June 30, 2023 by either (1) commercial production or (2) payment of an annual advance minimum royalty equal to 125% of the amount paid in year 19 and diligent pursuit of development.

Both requirements of (2) above have been satisfied through June 30, 2024.

The lease requires minimum work expenditures and advance minimum royalties (all of which minimum royalties are recoverable from production royalties) which escalate annually with inflation.

64 unchanged sentences

Carbonate appears to have been introduced with and subsequent to these stages.

Arsenopyrite and pyrite were introduced

primarily during the albite-quartz and sericite-quartz stages.

Arsenopyrite and pyrite were introduced primarily during the albite-quartz and sericite-quartz stages.

Gold correlates strongly with arsenic and occurs primarily within and on the margins of arsenopyrite and pyrite.

35 unchanged sentences

In 2009, the Company completed 12 diamond drill holes totaling 4,572 m and 195 RC holes totaling 59,757 m.

Six of the diamond drill holes were drilled across the NNW-trending Core Zone in order to better understand the structural controls and to test the depth continuity of the mineralization.

Six of the diamond drill holes were drilled across the North-North-West-trending Core Zone in order to better understand the structural controls and to test the

depth continuity of the mineralization.

This drilling confirmed that the Core Zone is the locus of a swarm of 0.2 - 1.0 m thick southerly dipping dikes.

In addition, a number of larger (+10 m thick) steeply dipping NNW-trending dikes were observed, suggesting that ENE extension may have occurred at about the time of dike magmatism.

In addition, a number of larger (+10 m thick) steeply dipping North-North-West-trending dikes were observed, suggesting that East-North-East extension may have occurred at about the time of dike magmatism.

The RC holes were primarily targeted at grid infill drilling to improve resource estimation of the Core Zone and a step-out program that led to discovery and delineation of the Sunshine and Tower Zones.

103 unchanged sentences

There are no municipal or community agreements required for the Livengood Gold Project.

2021 Pre-Feasibility Study (“PFS”)

On November 4, 2021, the Company announced the results of the PFS for its Livengood Gold Project, which are summarized in the TRS.

The TRS detailed a project that would process 65,000 tons per day and produce 6.4 million ounces of gold over 21 years from a gold resource estimated at 13.6 million ounces at 0.60 g/tonne.

The PFS utilized a third-party review by Whittle Consulting and BBA Inc.

to integrate new interpretations based on an expanded geological database, improved geological modelling, new resource estimation methodology, an optimized mine plan and production schedule, additional detailed metallurgical work at various gold grades and grind sizes, changes in the target grind for the mill, new engineering estimates, and updated cost inputs, all of which significantly de-risked the Project.

The TRS estimated the capital costs of the Project at $1.93 billion, the total cost per ton milled at $13.12, the all-in sustaining costs at $1,171 per ounce, and the net present value (5%) at $1,800/oz of $400 million.

Technical Report Summary (“TRS”)

The Company has a 100% interest in the Livengood Gold Project, which as of December 31, 2023, has proven and probable reserves of 430.1 million tonnes at an average grade of 0.65 g/tonne (9.0 million ounces) based on a gold price of $1,680 per ounce and measured and indicated mineral resources, exclusive of mineral reserves, of 274.51 million tonnes at an average grade of 0.52 g/tonne (4.62 million ounces), based on a gold price of $1,650 per ounce, both as reported in the TRS attached as Exhibit 96.1 to the 2022 Annual Report on Form 10-K/A filed with the SEC on October 17, 2023.

The TRS details a project that would process 65,000 tons per day and produce 6.4 million ounces of gold over 21 years from a gold reserve estimated at 9.0 million ounces at 0.65 g/tonne.

The study utilized a third-party review by Whittle Consulting and BBA Inc.

The TRS has estimated the capital costs of the Project at $1.93 billion, the total cost per ton milled at $13.12, the all-in sustaining costs at $1,171 per ounce, and net present value (5%) at $1,800/oz of $400 million.

The Project configuration evaluated in the TRS is a conventional, owner-operated surface mine that would utilize large-scale mining equipment in a blast/load/haul operation.

Mill feed would be processed in a 65,000 tons per day comminution circuit consisting of primary and secondary crushing, wet grinding in a single semi-autogenous (“SAG”) mill and single ball mill followed by a gravity gold circuit and a conventional carbon in leach (“CIL”) circuit.

December 2021 Report

In December 2021, the Company filed the December 2021 Report with respect to the Livengood Gold Project.

Readers are cautioned that the NI 43-101 reports filed on SEDAR by the Company in September of 2013, October of 2016, and April 2017 are no longer considered current and should therefore no longer be relied upon by investors.

Technical Report Summary (“TRS”)

The TRS, current as of December 31, 2023, indicates that the Project generates a minimal positive return at a gold price of $1,680 per ounce.

Readers are encouraged to review the entire TRS on EDGAR, with particular emphasis on the sensitivity analyses contained therein.

The TRS for the Livengood Gold Project is filed as Exhibit 96.1 to this Annual Report on Form 10-K.

The TRS for the Livengood Gold Project was filed as Exhibit 96.1 to the Company’s Annual Report on Form 10-K/A, dated October 17, 2023.

Readers are cautioned that the NI 43-101 reports filed on SEDAR+ by the Company in September of 2013, October of 2016, April 2017, and December 2021 are no longer considered current and should therefore no longer be relied upon by investors.

Mineral Resource and Reserve Estimates

5 unchanged sentences

The Qualified Person for the mineral resource estimate is Resource Development Associates Inc.

The effective date of the estimate is August 20, 2021 and the estimate is current as of December 31, 2022.

The effective date of the estimate is August 20, 2021 and the estimate remains current as of December 31, 2023.

Mineral resources for the Project are enumerated as per §229.1302(d)(1)(iii)(A) (Item 1302(d)(1)(iii)(A) of Regulation S-K).

21 unchanged sentences

Eng., of BBA USA Inc.

The effective date of the estimate is October 22, 2021 and the estimate is current as of December 31, 2022.

The effective date of the estimate is October 22, 2021 and the estimate remains current as of December 31, 2023.

Mineral reserves for the Project are enumerated as per added §229.1302(e)(2) (Item 1302(e)(2) of Regulation S-K).

10 unchanged sentences

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-K

Item 2. Properties