U.S. Markets close in 4 hrs 23 mins

Doris Drilling Continues to Define Continuity of the High Grade BTD Extension; First Quarter 2019 Exploration Update

Figure 1: Doris deposit longitudinal section (Graphic: Business Wire) Multimedia Gallery URL

TORONTO--(BUSINESS WIRE)--

TMAC Resources Inc. (TMR.TO) (“TMAC” or the “Company”) is pleased to provide initial results of the ongoing 2019 exploration program. Diamond drilling and initial sill access development at Doris has continued to demonstrate continuity of high grade gold mineralization with visible gold within the BTD Extension zone. The BTD Extension zone remains open to the north and drilling through the remainder of 2019 will continue to upgrade confidence in and expand the zone, supporting our 2019 strategy for continued reserve and resource expansion within the Doris mine, as well as provide high grade feed to the processing plant in 2019.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190407005030/en/

BTD Extension Highlights:

  • TMDBE-19-50004 214.0 g/t Au over 0.8 metres
    And 13.8 g/t Au over 5.2 metres
  • TMDBE-19-50005 407.0 g/t Au over 1.1 metres
  • TMDBE-19-50018 207.0 g/t Au over 0.9 metres
  • TMDBE-19-50031 682.9 g/t Au over 1.4 metres

At Madrid North, near surface drilling on the Naartok East zone has been completed with encouraging results, supporting the evaluation of potential development and mining in 2019. As well, infill drilling on the Suluk zone is designed to better define the high grade plunges within the zone and provide material for metallurgical testing to facilitate a decision to initiate advanced exploration development and bulk sampling.

Madrid North Highlights:

  • TMMNE-19-00011 11.5 g/t Au over 9.0 metres
    And 10.1 g/t Au over 27.0 metres
  • TMMNE-19-00013 10.6 g/t Au over 27.0 metres
  • TMMSU-19-00007 97.9 g/t Au over 4.9 metres
    And 26.2 g/t Au over 6.1 metres
    And 22.0 g/t Au over 4.4 metres
    And 7.9 g/t Au over 4.2 metres
  • TMMSU-19-00002 11.3 g/t Au over 7.4 metres
    And 9.6 g/t Au over 10.0 metres

Jason Neal, President and Chief Executive Officer of TMAC, stated, “We are very excited by our results in the BTD Extension where drilling is extending the resource to the north while we are concurrently developing into the zone at the south. Where we are developing in the south, we are encountering visible gold and high grade mineralization. The drill holes to the north are expected to continue expanding the resource, which remains open. The consistency of visible gold identified in the drilling and high grade assay results is rarely seen in Archean gold deposits. Our BTD exploration is very relevant to our near-term mine plan as this material is expected to begin being processed in meaningful quantities in the second half of 2019.”

Jason Neal continued, “The 2019 exploration programs have increased significantly over those completed in 2017 and 2018 as we begin to add value through exploration. In addition to the BTD Extension, drilling programs at Madrid North are focused on the near surface Naartok East zone and Suluk zone, which will enable further exploration program decisions as well as future evaluation and development and production decisions.”

DORIS – FIRST QUARTER 2019 EXPLORATION DRILLING

The Doris BTD is north of and beneath the diabase dyke (Figure 1) and is the equivalent of the high grade Doris North zone hinge structure. The 2019 drilling builds on the successful 2018 program and continues to upgrade inferred resources and expand the zone to the north as the exploration development drive advances. The BTD Extension zone returned high grade intersections throughout the 2018 program and initial drilling in 2019 has further defined the plunge of high grade gold mineralization along the west limb of the fold structure. An unusually high proportion of diamond drill hole vein intercepts have visible gold observed and assay results greater than 100 grams of gold per tonne are common. Drilling to date suggests good continuity of high grade gold mineralization greater than 30 grams of gold per tonne over an approximately 250 metre strike, and remains open to the north (Figure 2). Development of the BTD exploration ramp is ongoing and is scheduled to reach the next drilling platform late in the second quarter, which will allow an additional 100 metres of drilling along strike. A summary of the 2019 Doris BTD assay results received to date is provided in Table 1 and drill hole locations are illustrated in Figure 3.

Also during the quarter, the initial access development reached the southernmost area of the BTD Extension on the 4690 level (Figure 2). To date, four development rounds have been taken on the BTD Extension vein and have returned face samples of the quartz vein grading 1,220 grams of gold per tonne over 0.7 metres, 103 grams of gold per tonne over 0.6 metres and 506 grams of gold per tonne over 0.8 metres, with assays for the remaining round pending. Although the quartz vein is relatively narrow, the initial sill development on the BTD Extension vein has confirmed continuity of both the quartz vein and high grade gold mineralization. Development will continue through the second quarter in preparation for production.

MADRID NORTH – NAARTOK EAST AND SULUK

The Madrid North Deposit consists of five separate mineralized zones, Naartok West, Naartok East, Rand, Spur and Suluk (Figure 4). The first quarter 2019 surface diamond drilling is focused on near surface Naartok East and Suluk zones. At Naartok East, an addition 22 diamond drill holes completed during the quarter have continued to define the mineralization near surface within the crown pillar. Results from the 2019 drilling are consistent with 2018 results and will be incorporated into the resource estimate and facilitate a development decision. Current permits allow for the crown pillar to be extracted from surface and is being considered for production in the second half of 2019. Highlights from the 2019 drilling include TMMNE-19-00008 grading 12.8 grams of gold per tonne over 11.5 metres, TMMNE-19-00011 grading 11.5 grams of gold per tonne over 9.0 metres and 10.1 grams of gold per tonne over 27.0 metres, and TMMNE-19-00013 grading 10.6 grams of gold per tonne over 27.0 metres. A summary of all 2019 Naartok East assay results is provided in Table 2 and drill hole locations illustrated in Figure 5.

Also at Madrid North, a surface diamond drilling program, from ice based platforms on Patch Lake is ongoing. Drilling is targeted within the current resource, to better define the higher-grade plunges within the zone prior to deciding to initiate underground development and advanced exploration in 2019. Highlights from the 2019 Suluk drilling include TMMSU-19-00003 grading 13.9 grams of gold per tonne over 3.2 metres and 20.3 grams of gold per tonne over 13.8 metres, TMMSU-19-00002 grading 11.3 grams of gold per tonne over 7.4 metres and 9.6 grams of gold per tonne over 10.0 metres, and TMMSU-19-00007 grading 97.9 grams of gold per tonne over 4.9 metres and 26.2 grams of gold per tonne over 6.1 metres and 22.0 grams of gold per tonne over 4.4 metres and 7.9 grams of gold per tonne over 4.2 metres. A summary of all 2019 Suluk assay results received to date is provided in Table 2 and drill hole locations illustrated in Figures 6. The Suluk drilling program is ongoing and will transition to deeper drilling below the current indicated resource and along strike to the south.

UPCOMING EXPLORATION PROGRAMS

A significant regional exploration program will be executed in 2019 and is scheduled to commence in the second quarter. The northern regional drilling will focus on high priority exploration targets identified through historical and TMAC exploration efforts, including geophysical surveys, extensive geological mapping and sampling, and more recent gold in glacial till sampling results. In addition to regional exploration work, we will initiate the opening of the Boston camp, in preparation for a second half 2019 exploration program. Initial exploration drilling will focus on high priority regional targets proximal to Boston, including the Domani trend to the south. The Domani trend is characterized by mineralized quartz veining found within an approximately 6 km long strongly iron-carbonate altered shear zone, up to 40 metres wide extending south from the Boston deposit. Summer 2019 drilling on the Boston deposit will focus on defining the high grade plunges within the known resources above the 325 metre level. This program will transition into a second phase of winter drilling in 2019-2020 once ice platforms on Spyder Lake can be established. The winter ice drilling will target the high grade plunge, down dip of and below the current mineral resource, where widely-spaced historical drilling has intersected significant mineralization.

Table 1: Doris BTD Extension exploration diamond drilling intersections

Doris BTD - TMAC 2019 Intersections

DRILL
HOLE

  ZONE  

AZIMUTH
(degrees)

 

DIP
(degrees)

  Inclusion  

FROM
(m)

 

TO
(m)

 

CORE
LENGTH
(m)1

 

ASSAY
(Au g/t)

 

CAPPED
(Au g/t)2

TMDBE-19-50001

  BTD Extension   111.3   -2.5       134.46   134.91   0.45   18.95    
TMDBE-19-50002   BTD Extension   41.0   42.0       110.60   110.90   0.30   2.84    
TMDBE-19-50003   BTD Extension   122.0   -18.0       105.60   106.14   0.54   1.99    
TMDBE-19-50004   BTD Extension   90.0   -18.0     80.00   80.76   0.76   214.00   100.00
                And   87.96   89.24   5.24   13.84    
TMDBE-19-50005   BTD Extension   75.0   46.0       85.36   86.49   1.13   407.03   73.50
TMDBE-19-50006   BTD Extension   90.0   39.0       109.06   109.70   0.64   1.03    
TMDBE-19-50007   BTD Extension   111.3   -16.0       142.82   143.12   0.30   15.80    
TMDBE-19-50008 BTD Extension 116.8 -26.0 79.20 79.50 0.30 102.50 100.00
                And   84.94   85.93   0.99   134.45   69.98
TMDBE-19-50009   BTD Extension   124.0   -36.0       76.59   76.90   0.31   135.50   100.00
TMDBE-19-50010   BTD Extension   138.0   -42.0       81.40   82.00   0.60   154.50   100.00
TMDBE-19-50011   BTD Extension   70.0   -42.0       80.86   81.77   0.91   0.39    
TMDBE-19-50012   BTD Extension   116.8   -26.0       75.20   76.34   1.14   0.01    
TMDBE-19-50013   BTD Extension   155.0   -43.0       89.57   90.16   0.59   12.75    
TMDBE-19-50014   BTD Extension   146.0   -55.0       78.50   79.10   0.60   1.01    
TMDBE-19-50017   BTD Extension   106.0   -19.0       109.15   109.45   0.30   0.01    
TMDBE-19-50018   BTD Extension   96.0   -25.0       91.02   91.90   0.88   207.00   100.00
TMDBE-19-50019   BTD Extension   98.0   -15.0       108.43   108.73   0.30   3.02    
TMDBE-19-50020   BTD Extension   96.0   -4.0       112.60   113.00   0.40   5.20    
TMDBE-19-50021   BTD Extension   108.0   -39.0       77.11   77.67   0.56   227.00   100.00
TMDBE-19-50030*   BTD Extension   106.0   8.0       40.63   45.68   5.05   61.65   16.81
TMDBE-19-50031   BTD Extension   99.5   7.0       48.29   49.67   1.38   682.88  

73.53

(1) True width varies depending on the dip of the drill hole. Drill holes were designed to intersect target zone(s) at as close to a perpendicular orientation as possible, true widths are estimated to be approximately 30% to 90% of down hole widths.

(2) Individual assays are capped at 100 g/t Au.

* Samples analysed at TMAC’s internal lab operated by SGS SA.

Table 2: Madrid North exploration diamond drilling intersections

Madrid North - TMAC 2019 Intersections

DRILL HOLE

  ZONE  

AZIMUTH
(degrees)

 

DIP
(degrees)

  Inclusion  

FROM
(m)

 

TO
(m)

 

CORE
LENGTH
(m)1

 

ASSAY
(Au g/t)

TMMSU-19-00001   Naartok East   94.0   -45.0       23.86   24.8   0.94   4.79
TMMNE-19-00002   Naartok East   94.0   -80.0     7.70   21.73   14.03   3.67
                And   26.13   38.45   12.32   2.59
TMMNE-19-00003   Naartok East   94.0   -45.0       10.00   26.20   16.20   6.40
TMMNE-19-00004   Naartok East   94.0   -65.0       17.00   20.30   3.30   1.81
TMMNE-19-00005   Naartok East   94.0   -45.0       15.00   16.00   1.00   1.37
TMMNE-19-00006 Naartok East 274.0 -80.0 9.20 21.00 11.80 1.86
And 29.00 36.40 7.40 1.92
                And   43.50   56.45   12.95   4.25
TMMNE-19-00007 Naartok East 274.0 -80.0 17.00 21.85 4.85 1.44
                And   27.70   29.00   1.30   8.47
TMMNE-19-00008   Naartok East   65.0   -65.0       15.00   26.50   11.50   12.81
TMMNE-19-00009   Naartok East   94.0   -50.0       No Significant Values
TMMNE-19-00010   Naartok East   274.0   -80.0       No Significant Values
TMMNE-19-00011 Naartok East 94.0 -80.0 8.00 17.00 9.00 11.46
                And   20.00   47.00   27.00   10.06
TMMNE-19-00012   Naartok East   94.0   -60.0       14.00   41.00   27.00   7.42
TMMNE-19-00013   Naartok East   94.0   -45.0       13.00   40.00   27.00   10.57
TMMNE-19-00014   Naartok East   94.0   -50.0       15.80   26.22   10.42   10.34
TMMNE-19-00015   Naartok East   94.0   -45.0       12.00   28.20   16.20   3.91
TMMNE-19-00016 Naartok East 94.0 -81.0 20.00 33.10 13.10 3.93
                And   41.50   62.00   20.50   2.17
TMMNE-19-00017 Naartok East 94.0 -81.0 13.05 16.80 3.75 2.12
And 50.55 54.00 3.45 2.14
                And   67.00   72.00   5.00   6.21
TMMNE-19-00018   Naartok East   95.0   -55.0       45.00   73.00   28.00   3.81
TMMNE-19-00019   Naartok East   70.0   -81.0       67.72   89.00   21.28   2.22
TMMNE-19-00020   Naartok East   70.0   -45.0       85.09   89.00   3.91   1.70
TMMNE-19-00021   Naartok East   94.0   -45.0       15.94   20.00   4.06   2.27
TMMNE-19-00022 Naartok East 274.0 -81.0 17.97 20.00 2.03 5.11
And 24.00 34.00 10.00 3.47
And 37.00 40.00 3.00 3.67
                And   56.00   65.00   9.00   2.88
TMMSU-19-00001   Suluk   65.0   -62.0       215.10   221.15   6.05   4.53
TMMSU-19-00002 Suluk 70.0 -42.0 157.00 164.40 7.40 11.28
And 197.00 217.00 20.00 4.61
                And   226.00   236.00   10.00   9.64
TMMSU-19-00003 Suluk 65.0 -65.0 101.50 104.65 3.15 13.94
And 121.20 134.95 13.75 20.27
                And   150.07   154.36   4.29   4.73
TMMSU-19-00004   Suluk   65.0   -65.0       214.35   224.20   9.85   3.58
TMMSU-19-00005 Suluk 65.0 -59.0 150.12 162.17 12.05 8.23
And 166.00 177.27 11.27 6.85
                And   240.23   247.77   7.54   4.55
TMMSU-19-00006   Suluk   65.0   -55.0       123.75   130.96   7.21   3.66
TMMSU-19-00007 Suluk 65.0 -60.0 157.54 162.47 4.93 97.85
And 167.45 173.50 6.05 26.24
And 249.10 260.60 11.50 3.82
And 264.44 268.81 4.37 21.96
                And   288.50   292.70   4.20   7.57
TMMSU-19-00008 Suluk 65.0 -65.0 142.20 161.10 18.90 11.40
164.00 202.00 38.00 6.52
                Including   173.00   179.05   6.05   11.59
TMMSU-19-00009 Suluk 65.0 -61.0 71.50 75.60 4.10 10.02
And 93.04 93.65 0.61 37.70
And 110.23 111.20 0.97 18.95
                And   132.00   136.00   4.00   6.17
TMMSU-19-00010   Suluk   70.0   -67.0       77.00   83.00   6.00   1.13

(1) True width varies depending on the dip of the drill hole. Drill holes were designed to intersect target zone(s) at as close to a perpendicular orientation as possible, therefore, true widths are estimated to be approximately 30% to 90% of down hole widths.

SAMPLE PREPARATION, ANALYSIS AND QUALITY ASSURANCE/QUALITY CONTROL

For the Doris and Madrid drilling campaigns, samples were prepared at ALS Laboratories in Yellowknife, Northwest Territories, and assayed at their Vancouver, British Columbia laboratory (an ISO/IEC 17025 accredited lab for gold analysis). Analysis for gold is completed on sawn half-core samples (NQ) using 50 gram fire assay with atomic absorption (AAS) finish. Samples with higher grade gold (greater than 100 grams per tonne) are re-assayed using the pulp and fire assay with gravimetric finish procedures. Samples with visible gold and surrounding samples are analyzed using screen metallics (1,000 grams of material is screened to 100 microns, with all +100 micron material analyzed and two samples of -100 micron analyzed by 50 gram fire assay with AAS finish, results are averaged based on weight). Chip samples and select drill hole samples from Doris were prepared and analyzed at the internal laboratory located at the Doris mine site (non accredited lab), operated by SGS SA. Analysis for gold is completed using 30 gram fire assay with atomic absorption (AAS) finish. Samples with higher grade gold (greater than 10 grams per tonne) are re-assayed using the pulp and fire assay with gravimetric finish. Samples with visible gold are selected to go directly to fire assay with gravimetric finish. The Company control checks include the insertion of standard reference materials and blank samples to monitor the precision and accuracy of the assay data. For a complete description of TMAC’s sample preparation, analytical methods and QA/QC procedures refer to the 2018 Annual Information Form dated March 12, 2019 and filed on TMAC’s profile at www.sedar.com.

SCIENTIFIC AND TECHNICAL INFORMATION

Information of a scientific or technical nature in respect of the Hope Bay property, other than new information related to Doris mine development, is based upon the Hope Bay Technical Report, as filed on TMAC’s profile at www.sedar.com. Scientific and technical information contained in this document was reviewed and approved by David King, P.Geo., Vice President, Exploration and Geoscience of TMAC, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

ABOUT TMAC RESOURCES INC.

TMAC Resources operates Hope Bay located in Nunavut, Canada. The property and operations are remote but not isolated, serviced by both a port and airstrip. Hope Bay is an 80 km by 20 km Archean greenstone belt that has been explored by BHP, Miramar, Newmont and TMAC over a period spanning more than 30 years. In that time, more than $1.5 billion of sunk expenditures have been expended in exploration, evaluation, surface infrastructure and mine and process plant development. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris Plant which originally had nameplate capacity of 1,000 tonnes per day and expanded to 2,000 tonnes per day midway through in 2018. Hope Bay has 4.8 million oz of measured & indicated resources at Doris, Madrid and Boston deposits, largely within 350 metres of surface, with the potential to grow these established deposits considerably at depth, and then grow resources further through the prioritized exploration of the other more than 90 identified regional targets. TMAC is now permitted to produce from Madrid and Boston.

FORWARD-LOOKING INFORMATION

This release contains “forward-looking information” within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. “Forward-looking information” includes statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations or comparable terminology.

“Forward-looking information” is not a guarantee of future performance and management bases forward-looking statements on a number of estimates and assumptions at the date the statements are made. Furthermore, such “forward-looking information” involves a variety of known and unknown risks, uncertainties and other factors, which may cause the actual plans, intentions, activities, results, performance or achievements expressed or implied. See “Risk Factors” in the Company’s Annual Information Form dated March 11, 2019 filed on SEDAR at www.sedar.com for a discussion of these risks.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190407005030/en/

MULTIMEDIA AVAILABLE:https://www.businesswire.com/news/home/20190407005030/en/