TMAC Provides Operational Update and Results of Drilling

  • Highlights Include 22.0 g/t Au over 17.6 metres at Boston Deposit

TORONTO--()--TMAC Resources Inc. (TSX: TMR) (“TMAC” or the “Company”) is pleased to report additional drilling results from the 2017 drilling campaigns at both Doris Mine and Boston Deposit, on its 100% owned Hope Bay Project. The initial drilling results at Boston were reported on August 10, 2017 and TMAC has since received all assay results from the remaining Boston and Doris drilling to date. The Company is also providing an operational update.

“TMAC’s Initial Drilling At Boston Intersects 15.3 G/T Gold Over 22.3 Metres”

 

Highlights Boston:

 

• TMB0009

        Boston B2         22.0 g/t Au over 17.6 metres

Including

80.4 g/t Au over 3.2 metres

• TMB0015

Boston B2 15.9 g/t Au over 18.4 metres

Including

29.4 g/t Au over 8.4 metres
 

Highlights Doris BTD:

 

• TM50089

Doris BTD 18.8 g/t Au over 2.4 metres

• TM50094

Doris BTD 12.7 g/t Au over 1.0 metres
 

Dr. Catharine Farrow, Chief Executive Officer of TMAC, stated, “We are pleased with the very positive and encouraging results of TMAC’s initial exploration drilling campaign on the Boston deposit that was completed this summer. The campaign targeted wide, high-grade gold trends within the known Boston Mineral Resources and the results being reported today confirm the tremendous potential to mine these high grade zones using bulk underground mining methods. The results also indicate the potential to significantly increase the gold Mineral Resources at Boston and will be used to establish the 2018 Mineral Resource estimates. This summer’s drill program also confirmed that Boston has tremendous exploration upside, along strike and at depth. Drilling at Doris BTD, which is designed to refine the structural controls of the zone to guide infill drilling, will resume in the fourth quarter. The infill drilling continues to intersect high grade gold over mineable widths. In addition, the underground development in the BTD confirms the continuity and ore grade of the ore bearing structures at depth below the diabase dyke.” She added, “The processing plant’s performance continues to improve with average daily throughputs for September at 90% of design capacity. Optimization work is continuing in the gravity and flotation areas of the crushing, grinding, gravity and flotation side of the plant. Our systematic approach to troubleshooting performance issues is also being employed to improve performance on the concentrate treatment side of the plant.”

Operations

The processing plant (the “Plant”) can and has operated at or in excess of its design capacity of 1,000 tonnes per day (“tpd”) and average daily throughput for September is over 900 tpd as a result of much improved plant availabilities. Recoveries in the crushing, grinding, gravity and flotation part of the Plant (the “Python”), one component of the overall recovery for the Plant, are now consistently in the high 80%. Efforts continue to further optimize the Python in order to reach designed circuit recoveries. Work to improve Concentrate Treatment Plant (“CTP”) recoveries that, to date have been disappointing, is ongoing with the focus on the regrind, batch intensive leach and resin areas. This work is being completed in conjunction with Gekko specialists, input from consultants, and from vendor technicians. Third party metallurgical consultants advise the Company that the expected throughputs and recoveries can be achieved with continued optimization and improvements in both the Python and CTP, with the target being to bring the overall gold recoveries for the Plant up to those estimated by the PFS. Overall recoveries are a combination of recoveries from the Python and CTP parts of the Plant.

TMAC has safely and successfully completed its fourth annual sealift.

Boston Deposit

The Boston Deposits are hosted within a regional-scale, south-plunging fold (synformal or overturned anticline) that is cored by a sequence of mafic metavolcanic rocks and flanked by an extensive metasedimentary rock domain (Figure 1). There are a number of sub-units within the mafic package including variolitic and non-variolitic metabasaltic units, intercalated interflow metasedimentary units, gabbroic rocks, picritic sills, and felsic dykes. The metasedimentary rocks typically range from fine-grained argillitic to quartzo-feldspathic wacke metasedimentary rocks. Gold mineralization at the Boston deposits is hosted within a series of axial-planar, sub-parallel anastomosing high-strain domains referred to as the B2, B3, and B4 zones (Figure 1). Within these zones, gold mineralization occurs within and around structurally-controlled quartz-carbonate-tourmaline veins, which are generally developed along lithological contacts. Gold is associated with an alteration assemblage comprising paragonite-sericite, iron carbonate, and sulphides with a distal assemblage primarily of chlorite and calcite. For a more detailed geological description of the Boston mineralization refer to the news release dated August 10, 2017 and titled “TMAC’s Initial Drilling At Boston Intersects 15.3 G/T Gold Over 22.3 Metres”.

Boston Exploration Drilling

The objective of the 2017 program at Boston was to provide further understanding of the geological controls on gold mineralization and demonstrate the potential to add significant high-grade gold ounces to the Boston Mineral Resource base at shallow depths. Figure 2 illustrates the TMAC drillholes from the 2017 drill program and historical intersections of greater than 5 grams per tonne (“g/t”) gold (“Au”) over greater than five metres, highlighting the wide high grade trends within the known Mineral Resources. The B2 zone’s Measured and Indicated Mineral Resources extend from surface to the 350 metre level and are open at depth. Widely-spaced historical drilling below the current Mineral Resources have intersected significant mineralization, including drillhole 11SBD414A, which intersected 28.5 g/t Au over 7.1 metres, 17.3 g/t Au over 4.8 metres, and 46.6 g/t Au over 7.8 metres, and drillhole S03-293, which intersected 56.6 g/t Au over 8.7 metres at the 1020 metre level (Figure 2). Recent significant results from the B2 zone include drillhole TMB0009, which intersected 22.0 g/t Au over 17.6 metres, including 80.4 g/t Au over 3.2 metres, and drillhole TMB0015 which intersect 15.9 g/t Au over 18.4 metres, including 29.4 g/t Au over 8.4 metres. A summary of all assay results received to date from the 2017 drill campaign is provided in Table 1 and drillhole locations are illustrated in Figures 2 and 3. The data generated from this phase of drilling will help to refine the geological model. The Boston exploration program was funded under the flow-through financing completed on March 18, 2016. As of the first week of August, TMAC’s flow through financing commitments have been met and TMAC’s Boston exploration program was completed on August 12, 2017. The Boston camp has been closed for the balance of the 2017 season.

 

TABLE 1: BOSTON 2017 DIAMOND DRILLING INTERSECTIONS

Boston - TMAC 2017 Intersections

DRILL HOLE

 

ZONE

 

AZIMUTH
(degrees)

 

DIP
(degrees)

  Inclusion  

FROM
(m)

 

TO (m)

 

CORE
LENGTH
(m)1

 

ASSAY
(Au g/t)2

 

CUT
(Au g/t)2

TMB0001*   B2   285.0   -65.0     50.80   73.10   22.30   22.42   15.27
Including 50.80 55.30 4.50 72.03 36.59
Including 59.75 66.00 6.25 18.85 18.85
                Including   70.50   73.10   2.60   20.63   20.63
TMB0002* B3 55.0 -55.0 30.67 32.00 1.33 21.20 21.20
B3 and 105.55 106.70 1.15 5.88 5.88
    B3           and   186.60   188.00   1.40   4.72   4.72
TMB0003*3 B2 285.0 -50.0 38.00 50.20 12.20 6.89 6.89
Including 38.00 40.05 2.05 17.27 17.27
                Including   45.50   50.20   4.70   10.27   10.27
TMB0004*   service hole           no significant assays
TMB0005 B2 185.0 -55.0 126.85 128.56 1.71 20.64 20.64
                Including   127.71   128.23   0.52   49.80   49.80
TMB0006* B2 285.0 -53.0 77.05 79.73 2.68 6.63 6.63
    B2           and   101.00   102.50   1.50   13.20   13.20
TMB0007*3 B3 285.0 -68.0 23.33 23.85 0.52 50.90 50.90
B3 and 47.38 49.77 2.39 9.23 9.23
B3 and 55.70 56.21 0.51 12.90 12.90
B2 and 197.20 199.46 2.26 4.12 4.12
B2 and 210.00 218.92 8.92 8.69 8.69
    B2           and   227.30   236.00   8.70   5.92   5.92
TMB0008 B2 55.0 -55.0 59.00 60.75 1.75 7.17 7.17
B3 and 172.50 173.30 0.80 7.47 7.47
B3 and 186.25 187.30 1.05 6.65 6.65
    B3           and   261.40   263.30   1.90   5.07   5.07
TMB0009 B2 285.0 -65.0 and 57.00 74.55 17.55 54.31 22.02
                Including   58.15   61.30   3.15   260.29   80.35
TMB0010   abandoned                            
TMB0011 B3 269.0 -61.0 123.20 124.77 1.57 6.93 6.93
B2 and 365.90 373.50 7.60 6.29 6.29
Including 365.90 369.00 3.10 11.50 11.50
B2 and 380.75 385.60 4.85 5.12 5.12
    B2           and   422.66   430.42   7.76   6.06   6.06
TMB0012 B3 267.0 -68.0 295.30 297.30 2.00 4.72 4.72
B3 and 305.00 306.95 1.95 7.86 7.86
Including 305.00 306.00 1.00 12.00 12.00
B2 and 592.87 597.00 4.13 4.91 4.91
Including 592.87 594.00 1.13 10.50 10.50
B2 and 607.00 609.50 2.50 5.30 5.30
    B2           and   615.00   617.45   2.45   4.86   4.86
TMB0013   B2   275.0   -54.0       251.85   258.00   6.15   4.64   4.64
TMB0014 B2 278.0 -48.0 105.75 110.66 4.91 5.55 5.55
                Including   109.72   110.66   0.94   19.00   19.00
TMB0015 B3 284.0 -59.0 72.03 90.45 18.42 21.91 15.85
Including 72.03 80.38 8.35 42.83 29.44
    B2           and   161.83   163.48   1.65   32.23   32.23
TMB0016 B3 271.0 -50.0 78.90 81.34 2.44 8.30 8.30
B3 and 121.90 124.95 3.05 5.01 5.01
B2 and 206.25 207.75 1.50 16.00 16.00
B2 and 238.50 244.05 5.55 6.83 6.83
                Including   238.50   240.00   1.50   16.75   16.75
 

*

 

TMAC Boston drill hole previously reported in 10/08/2017 release.

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 45% to 85% of down hole widths.

2

Individual assay values presented cut and uncut (when applicable) with individual values capped at 100 g/t Au.

3

Additional assay results received since 10/08/2017 release, composite intervals updated.

 

Doris Deposits

The Doris Trend is a north-south oriented structural trend developed within Archean-aged, mafic metavolcanic-dominant, host rocks. The Doris gold mineralization occurs at the contact between two mafic metavolcanic units, a high-titanium metabasalt and a high-magnesium metabasalt in either quartz vein or within shear breccia. The drill results reported are from the most northern known extent of the Doris Trend, below the diabase dyke (“Doris BTD”) (Figure 4). The current known high-grade Mineral Resources at Doris North Hinge zone are located above the diabase dyke and extend to a maximum depth of only 160 metres. Local parallel structures above the diabase include the West Valley Wall (“WVW”) veins, that also have future exploration potential. The Doris BTD zones are the extension of the Doris North zone, below a late, locally relatively flat-lying diabase dyke that bisects the known gold mineralization at Doris into upper and lower elevations. Initial Mineral Resources below the diabase dyke from the Doris BTD zones were reported in the June 30, 2017 Mineral Reserves and Mineral Resources statement and include the high grade Doris BTD East Limb. The Doris BTD zones are further subdivided into the Doris BTD East Limb and Doris BTD Extension, separated by the northwest-striking North Fault. The Doris BTD Extension is interpreted as the down-dropped continuation of the Doris North zone hinge structure on the north side of the North Fault beneath the diabase dyke. The Doris BTD East Limb is interpreted as the down-dip continuation of the Doris North East Limb mineralization south of the offsetting North Fault and beneath the diabase dyke. TMAC believes the Doris BTD exploration areas have the potential to add significant high grade gold ounces to the Doris North Mineral Resources with continued drilling and underground development.

Doris BTD Exploration Drilling

Initial results from the 2017 Doris BTD drilling were included in a news release on August 10, 2017 titled “TMAC’s Initial Drilling At Boston Intersects 15.3 G/T Gold Over 22.3 Metres”. Additional assay received from the area of the Doris BTD East Limb Mineral Resources, including previous results are provided in Table 2 and drillhole locations are illustrated in Figure 5. Highlights from the recently received assays include drillhole TM50089 which intersected 18.8 g/t Au over 2.4 metres. Drilling has been suspended during the 2017 sealift period due to camp space considerations. To date, approximately 13,140 metres of the 20,000 metres budgeted have been completed in a total of 53 diamond drill holes. The next phase of Doris BTD drilling will target infill and expansion drilling on the high grade Doris BTD Extension on the north side of the North Fault (Figure 5) and is scheduled to resume in the fourth quarter.

 

TABLE 2: DORIS BTD EXPLORATION DIAMOND DRILLING INTERSECTIONS.

Doris BTD - TMAC Drill Hole Intersections
DRILL HOLE   ZONE  

AZIMUTH
(degrees)

 

DIP
(degrees)

  Inclusion   FROM (m)   TO (m)  

CORE
LENGTH
(m)1

 

ASSAY
(Au g/t)

TM50057*   BTD East Limb   86.4   -24.9       119.05   122.57   3.52   0.70
TM50059*   BTD East Limb   86.9   -36.7     143.12   146.39   3.27   7.32
                Including   143.12   144.05   0.93   18.00
TM50061*   BTD East Limb   85.0   -44.0       159.57   161.43   1.86   1.58
TM50064*   BTD East Limb   99.0   -36.0       132.50   135.30   2.80   3.19
TM50065*   BTD East Limb   96.2   -25.9       114.54   118.80   4.26   1.97
TM50066*   BTD East Limb   101.3   -45.7       153.18   155.11   1.93   2.59
TM50068* BTD East Limb 119.4 -38.3 147.00 149.96 2.96 3.10
                Including   149.04   149.96   0.92   9.75
TM50069* BTD East Limb 122.0 -26.6 122.68 127.18 4.50 5.21
                Including   126.00   127.18   1.18   18.45
TM50070* BTD East Limb 123.6 -46.9 159.91 162.27 2.36 5.46
                Including   160.75   161.43   0.68   11.50
TM50072*   BTD East Limb   107.3   -17.7       92.57   93.14   0.57   85.10
TM50074*   BTD East Limb   107.8   -29.0       117.54   118.10   0.56   10.40
TM50075A* BTD Extension 106.0 -41.0 99.82 103.82 4.00 4.53
Including 101.00 102.00 1.00 16.45
    BTD East Limb           and   142.00   146.61   4.61   0.89
TM50077* BTD Extension 105.4 -46.5 110.50 114.27 3.77 33.84
Including 110.50 112.21 1.71 117.26
    BTD East Limb           and   129.24   131.50   2.26   15.34
TM50078*   BTD East Limb   105.4   -4.5       95.30   96.00   0.70   77.00
TM50079*   BTD East Limb   94.7   -12.6       102.76   112.30   9.54   0.23
TM50080* BTD Extension 94.0 -31.8 135.98 144.12 8.14 5.31
Including 135.98 136.87 0.89 15.80
                Including   140.40   141.10   0.70   18.60
TM50081*   BTD East Limb   94.9   -26.4       85.27   85.70   0.43   15.00
TM50083* BTD Extension 94.0 -38.8 150.15 153.10 2.95 1.77
and 158.35 166.64 8.29 1.12
                and   171.75   173.25   1.50   2.47
TM50085* BTD Extension 107.0 -31.0 129.80 151.00 21.20 5.65
Including 132.82 133.82 1.00 57.40
                Including   149.48   151.00   1.52   14.75
TM50086 BTD Extension 105.0 -33.0 127.36 132.00 4.64 14.69
                Including   131.00   132.00   1.00   66.20
TM50087* BTD Extension 107.0 -36.0 155.26 170.20 14.94 1.91
Including 156.50 158.00 1.50 10.15
                Including   166.50   168.00   1.50   6.10
TM50088*   BTD Extension   105.0   -30.0       126.53   128.04   1.51   2.94
TM50089 BTD Extension 105.0 -37.0 150.98 153.33 2.35 18.82
Including 152.00 153.33 1.33 33.00
                and   172.73   173.13   0.40   16.00
TM50090   BTD Extension   107.0   -27.0                   NSV
TM50091   BTD Extension   105.0   -41.0       167.27   177.00   9.73   1.07
TM50092   BTD East Limb   116.0   -30.0                   NSV
TM50093   BTD Extension   88.0   -31.0       136.84   137.60   0.76   6.12
TM50094 BTD Extension 105.0 -51.0 181.09 189.50 8.41 1.91
                Including   187.60   188.63   1.03   12.70
TM50096 BTD Extension 88.0 -49.0 193.73 198.50 4.77 1.33
                Including   196.80   197.30   0.50   11.60
 

*

 

TMAC underground drill hole previously reported in 10/08/2017 release.

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 45% to 85% of down hole widths.

 

CONFERENCE ATTENDANCE

September 18 – 20, 2017

Dr. Catharine Farrow, Chief Executive Officer, will present on Monday, September 18, 2017 at 2:00 p.m. MT at the 7th Annual Precious Metals Summit to be held in Beaver Creek, CO, USA.

September 25 – 27, 2017

Dr. Catharine Farrow, Chief Executive Officer, will present on Tuesday, September 26, 2017 at 3:30 p.m. MT at the 28th Annual Denver Gold Forum to be held in Colorado Springs, CO, USA.

ABOUT TMAC RESOURCES

TMAC holds a 100% interest in Hope Bay located in the Kitikmeot region of Nunavut, Canada. TMAC is an emerging gold producer with the Doris mine pouring first gold in the first quarter of 2017 and achieving commercial production in the second quarter of 2017. The Madrid and Boston properties are expected to commence production in 2020 and 2022, respectively. The Company has an experienced, expert board of directors combined with exploration, development and operating teams with extensive track records of discovering, developing and operating high grade, profitable underground mines. TMAC’s shares trade on the Toronto Stock Exchange under the trading symbol TMR.

SAMPLE PREPARATION, ANALYSIS AND QUALITY ASSURANCE/QUALITY CONTROL

For the Doris and Boston 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 (>100 g/t) 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 g of material is screened to 100 microns, with all +100 micron material analyzed and two samples of -100 micron analyzed by 50 g fire assay with AAS finish, results are averaged based on weight). 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 technical report for the Hope Bay Project dated May 28, 2015 entitled “Technical Report On The Hope Bay Project, Nunavut, Canada”, which has an effective date of March 31, 2015 (the “Hope Bay Technical Report”), as 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 Project, 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., the Vice President, Exploration and Geoscience of TMAC and Gil Lawson, P.Eng., Chief Operating Officer of TMAC, each of whom is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

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 thereof or comparable terminology. Such forward-looking information includes, without limitation, bringing the timing for bringing Madrid and Boston into production and the rate of ramp up at Doris throughout 2017.

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 of the Company to be materially different from any plans, intentions, activities, results, performance or achievements expressed or implied by such forward-looking information. See “Risk Factors” in the Company’s Annual Information Form dated February 23, 2017 filed on SEDAR at www.sedar.com for a discussion of these risks.

Contacts

TMAC Resources Inc.
Catharine Farrow, 416-628-0216
Chief Executive Officer
or
Ann Wilkinson, 416-628-0216
Vice President, Investor Relations
www.tmacresources.com
or
Renmark Financial Communications Inc.
Daniel Gordon, 416-644-2020 or 514-939-3989
dgordon@renmarkfinancial.com
www.renmarkfinancial.com

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