Goliath Gold Complex

Development Focus

Goliath Gold Complex

Location

20 km east of Dryden, Northwestern Ontario

Mineral Reserves

210Koz Au, 731Koz Ag Proven and 1.1moz Au, 993Koz Ag Probable

Host to

Gold and Silver

Stage

Exploration and Development

Jurisdiction

Stable, mining-friendly jurisdiction of Northwestern Ontario

Infrastructure

Trans-Canada Highway, Hydro One 115/230 kV power availability, municipally controlled roads, TransCanada natural gas pipeline, CP Rail, and skilled local workforce readily available

Mineral Resources

2.1Moz M&I and 0.8Moz Inferred resource

Resource designs and all drilling at Goliath

Created

The Goliath Gold Complex is composed of the Goliath, Goldlund, and Miller projects.

The Goliath Gold Project (Mine + Mill) consists of the construction, operation, decommissioning, and remediation of an open-pit and underground gold mine and associated milling infrastructure including a tailings storage facility located 20 km east of the City of Dryden, Ontario. The Goliath Gold Project received Federal Environmental Assessment Approval in 2019 with the Minister of Environment and Climate Change Canada concluding that the Goliath Gold Project was unlikely to result in significant adverse effects to the environment. NexGold has commenced the process of receiving additional permits and approvals to construct and operate the Goliath Gold Project (Mine + Mill).

NexGold received a Federal government Decision Statement for the Project under the Canadian Environmental Assessment Act, 2012 (CEAA, 2012) on 19 August 2019 (Decision Statement), with the Minister of Environment and Climate Change Canada concluding that with the implementation of mitigation measures, the Project is not likely to cause significant adverse environmental effects referred to in subsection 5(1) CEAA, 2012.

As per Condition 2.9, NexGold is required to prepare an annual report each reporting year. Below is a link to the Annual Report in support of Condition 2.9.

GGC Complex

100% ownership of the Goliath Gold Complex (“GGC”) located in Northwestern Ontario

Easy access to world-class infrastructure

Federal EA in hand

Robust PFS demonstrating $625M NPV5% and 41.1% after-tax IRR at US$2,150/oz Au

Updated mineral resource includes a combined 2.1Moz M&I and 0.8Moz Inferred resource

Infrastructure

World class infrastructure at our doorstep, including:
- Trans-Canada Highway
- Ontario Provincial Hwy 72
- CP Rail
- Hydro
Ready access to experienced and available workforce in Dryden and Sioux Lookout
Environmental Assessment approval received for Goliath
- Potential co-development opportunity at Goldlund as a past producer

Exploration

In 2021, the Company reviewed the regional exploration potential for the entire Goliath Gold Complex. The Goliath and Goldlund datasets were integrated into one geological naming and logging scheme. This allowed the team to look at the entire land package as one. The geology team looked at belt-scale controls on gold mineralization and identified key geological features that could localize gold mineralization. The team also considered the local controls on mineralization for the Goliath and Goldlund deposits to identify other similar targets.

At the Goliath Property, the team identified targets with similar geological settings to the Goliath Deposits as well as high-grade lode-gold style targets.

Goliath – 2VD-TMI Geophysics

On the Goldlund trend, the team identified additional targets with similar footprints and geophysical signature to Goldlund and Miller. In addition, the team identified high-grade lode-gold targets on the property that have seen little to no exploration historically.

Goldlund – RMI FIN CVG geophysics

The Company implemented and monitored a thorough quality assurance/quality control program (“QA/QC” or “QC”) for the diamond drilling and sampling undertaken at the Goliath Gold deposit from 2008 through current programs. QC protocol included the insertion of QC samples into every batch sent for analysis. QC samples included certified reference materials, blanks and duplicates.

Geology

Goliath Gold Complex

The 330 km² Goliath Gold Complex demonstrates numerous highly prospective targets that show potential to host gold mineralization, including about 65-km prospective strike along the trend from the Goliath, Goldlund, and Miller deposits. The Goliath Gold Complex is located in the Archean Eagle-Wabigoon-Manitou greenstone belt in the Wabigoon Subprovince of the Superior Province.

Goliath Deposit

Approximately 20 km east of the town of Dryden, the Goliath deposit is hosted within a 100 to 150 m thick unit of intensely deformed and variably altered, fine- to medium-grained, muscovite-sericite schist and biotite-muscovite schist with minor metasedimentary rocks. Native gold and silver are associated with finely disseminated sulphides, coarse-grained pyrite, and very narrow light grey translucent “ribbon” quartz veining. The main sulphide phases are pyrite, sphalerite, galena, pyrrhotite, minor chalcopyrite, and arsenopyrite, and dark grey needles of stibnite. The alteration consists of primarily sericitization and silicification in association with the gold mineralization.

At Goliath, the gold-bearing zones strike from 090° to 072° with dips that are consistently between 72° and 78° south or southeast. The mineralized zones are tabular composite units defined on the basis of moderate to strongly altered rock units, anomalous to strongly elevated gold concentrations, and increased sulphide content and are concordant to the local stratigraphic units. In the Goliath deposit, higher-grade gold mineralization occurs in shoots with relatively short strike lengths (up to 50 m) that plunge steeply to the west. The main area of gold, silver, and sulphide mineralization and alteration occurs up to a maximum drill-tested vertical depth of ~805 m, over a drill-tested strike length in excess of 2,500 m. The mineralized zones remain open at depth.

Mineral Resource Classification	Tonnes (kt)	Au (g/t)	Au (koz)	Ag (g/t)	Ag (koz)
Measured	6,393	1.33	273.6	5.17	1,062.7
Indicated	61,318	0.95	1,865.0	2.92	2,459.3
M&I	67,711	0.98	2,138.6	3.42	3,522.0
Inferred	32,571	0.75	782.8	0.84	91.5

PFS Highlights

Total Recovered Gold

Throughout its operational life, the project is expected to recover a total of 1.2 million ounces of gold.

Operating Costs

The cash cost over the first 9 years is projected at US$892 per ounce, with the All-In Sustaining Cost (AISC) estimated at US$1,037 per ounce.

Production Life & Output

The project is planned for a 13-year Life of Mine (LOM), with an average annual gold production of 109,000 ounces from years 1 to 9.

Financial Projections at Different Gold Prices

At a gold price of US$1,750 per ounce, the project boasts a Net Present Value (NPV) of $336 million with a 5% discount rate and a 25.4% Internal Rate of Return (IRR) post-tax. When the gold price increases to US$2,150 per ounce, the NPV rises to $652 million with a post-tax IRR of 41.4%.

Capital Efficiency & Payback Period

The project demonstrates low capital intensity with pre-production capital expenditures estimated at $335 million. It features a quick payback period of 1.92 years at $2150 Au.

Project Characteristics and Potential

The mining project is characterized as technically simple, enhancing its feasibility and efficiency. It also holds significant potential for further exploration, suggesting the possibility of expanding resource estimates and extending the mine’s life.

Beneficial features of the Project location

Year-round fieldwork can be completed in comfortable working conditions

Excellent year-round road access

On-site power supply

Trans-Canada Natural Gas Pipeline

Neighbouring major industrial services in Dryden

Nearby workforce in surrounding communities

March 2023 PFS Highlights

13yr mine life with average production >100koz Au in first 9 years

6.5ktpd gravity-CIL plant; average Au recovery 92.8%

C$336mm Post-tax NPV5% and 25.4% IRR at US$1,750 Au

LOM Cash Cost US$935/oz; LOM AISC US$1,072/oz

C$335mm initial capex, 2.8yr payback

LOM C$1.3B EBITDA and post-tax FCF of C$869mm

Annualized EBITDA of C$145mm, FCF of C$106mm, Cash Cost US$820/oz and US$1,008/oz AISC in first 5 years of production

At Spot Prices (US$2,300 Au, US$26.50 Ag, FX $0.73);

C$808mm Post-tax NPV5% and 48.3% IRR
LOM C$2.2B EBITDA and post-tax FCF of C$1.5B
Annualized EBITDA and post-tax FCF of C$278mm and C$200mm in first 5 years of production
1.7yr payback