Gogota Base Metals Project

The Gogota nickel-cobalt-scandium deposit is 100% owned by the Company and is located in south-eastern Guinea near the borders of Côte d’Ivoire and Liberia. The Gogota cobalt-nickel occurrence has a prospective surface area of 1.96 km2 and is approximately 8 km away from SRG’s Lola graphite project.

Location:

The Gogota desposit is located near the town of Lola in eastern Guinea, 1,000 km from Conakry, the capital of the Republic of Guinea. The occurrence is within 50 km from the border with the Ivory Coast and is located about 8 km to the southeast of the town of Lola.

The area is well served with a road network leading to the Project from either Conakry or Côte d’Ivoire. All required services are available in the nearby towns of Lola and N’Zérékoré. The property is centered on UTM WGS 84 zone 29N latitude 7° 48’ 00’’ (UTM 863,000 N) and longitude 8° 32’ 00’ (UTM 551,000 E), The area includes the communities of Lola and several smaller villages. Within the license area the terrain is gently undulating providing good access to any part of the property.

 

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Exploration program:

Since 2010, the exploration activities included; stream sediment samplings and surface mapping which highlighted numerous Ni-Cu laterite rich occurrences.

Between 2010 and 2013, the Company started a regional stream sediment sampling program with the aim of delineating occurrences of nickel-copper sulphide, chromite and/or nickel-cobalt laterites. A total of 891 stream sediments and surface rock samples were collected within the initial exploration permits. The area covered approximately 500 km2 and was bounded on the East by the Ivory Coast border. The stream sediment sampling, coupled with surface rock sampling, allowed the Company to identify 27 new nickel-cobalt laterite occurrences including the Gogota deposit, for a total surface area of 7.8 km2.

The Company’s drilling programs started in May 2012 until April 2013 using Sama Ressources’ Jacro man-portable drilling rigs. A total of 51 boreholes were completed for a total of 1,360 m.

All 51 vertical drill holes over the Gogota Deposit were drilled on a 200 m by 400 m grid. A final square grid at 200 m spacing was achieved by filling in the first-pass lines that were 400 m apart.

DRA, a leading engineering firm, believes that the drill program was successful in defining the Ni-Co-Sc laterite mineralization in sufficient detail to support the current resource estimation. The survey of all the hole collars provides accurate location of the holes in the deposit. The hole deviation path was not measured as it was not necessary considering the short length of the holes.

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Mineral resource

In 2018, a mineral resource estimate, was prepared by DRA. The results showed a pit-constrained inferred resource of 44.9 million tonnes of mineralized material grading 1.28% nickel for 573,040 tonnes of contained nickel. The cobalt grade of the resource is 0.13% Co for 59,560t of contained cobalt. The resource also contains 29.4 grams per ton of scandium for 1.17 tonnes of contained scandium in the

The mineral resource for the Gogota project incorporates assay results from 51 vertical diamond drill holes representing 1,361 meters. 800 Samples were sent for analysis in 2013 representing 31 drill holes and the remaining 425 samples representing 20 drill holes were sent for analysis in 2018 for a total 1,225 samples representing all 51 drill holes. The maiden resource is established for the weathered profile of the deposit, from surface to a depth ranging from surface to approximately 40 meters with an average thickness of 22 meters. The surface area of the deposits covers 1.96 kilometers-squared.

Core logging and sampling were performed at the Company’s facility in the village of Gogota. Sample preparation was performed by Veritas Laboratory in Abidjan, Côte d’Ivoire. Pulp samples were delivered to Activation Laboratories Ltd., Ancaster, Ontario, Canada. All samples were assayed for nickel, cobalt and all major oxides using peroxide fusion XRF. Scandium was determined by inductively coupled plasma optical emission spectrometry.

The base case mineral resource estimate is summarized in the following table at a cut-off grade of 0.07% Co in the limonite facies of the profile and 0.70% Ni in the transition and saprolite layers together. Sensitivity estimates were conducted at 0.10% Co and 1.0% Ni, and 0.12% Co and 1.2% Ni in limonite and transition/saprolite respectively. The resource estimate and sensitivities are established with data from boreholes drilled in 2012 and 2013.

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Notes:
1) CIM definitions (May 10, 2014) observed for classification of mineral resources.
2) Block bulk densities interpolated from specific gravity measurements taken from core samples.
3) Resources are constrained by a Lersch Grossman (LG) optimized pit shell using MineSight software.
4) Pit shell defined using 30-degree pit slope, $USD 5.5/lbs Ni, $USD 30/lbs Co, $USD 0.0/g Sc, $USD 2.00/t mining costs, $USD 43/t processing costs, $USD 3.50/t G&A and $USD 175/t for concentrate transportation costs.
5) Mineral resources are not mineral reserves and have not demonstrated economic viability. The estimate of mineral resources may be materially affected by mining, processing, metallurgical, infrastructure, economic, marketing, legal, environmental, social and governmental factors (“Modifying Factors”).
6) Numbers may not add due to rounding.
7) Effective Date of Resource estimate is June 6th, 2018.