*This is contained within the mineral resource published-2023 MRE: 1.16 Moz at 1.90 g/t Au within 19.0 MT Indicated, and 2.02 Moz at 2.22 g/t Au Inferred.
The effective date of this MRE is March 5, 2025, and a NI 43-101 Technical Report will be filed on the Company's website and SEDAR within 45 days of this disclosure. For additional maps and figures of the Project, please view the Company's website at lode-gold.com.
This revised MRE is a new geological block model that is based on 43,000 m of drilling and 23 km of underground workings that includes veins and disseminated mineralized bodies contained in two separate domains, predicated on the structural controls of the higher-grade mineralization. A detailed analysis of cut-off grades has been reviewed to evaluate various mining methods to optimize project economics.
The Project is situated on 100% privately owned patented land spanning 3,351 acres. It is located ~120 km from Fresno and ~250 km from Sacramento with road, hydro, and railhead access. This area was the site of the original California Gold Rush in the 1800s. Of note, Mariposa County is one of the Trump Administration's dedicated Opportunity Zones2, designated for expedited investments and tax credits.
Highlights:
2025 MRE: 1.2 Moz Au at 3.97 g/t (cut-off 3 g/t), average true width of 16.8 m.
Half of the mineralization is in the veins; the other half is in the stockworks - outside the veins.
Consistency in grade is evidenced within and outside the veins in the dissemination mineralization.
The upcoming exploration program** includes systematic underground channel sampling and assaying to convert half of the current Inferred resources into the Measured and Indicated categories.
**Budget: $500,000. Lead time: 6 months. Cost-effective and expeditious method of resource upgrade.
Historical Context:
4 km mineralization on the prolific 190 km Mother Lode Belt (800 m of visible oxides at surface, first 60 m).
In 1942, during WWII, the Mining License was suspended as production was ramping up.
Previously mined grade: 10.7 g/t Au, 43,000 m drilled (diamond drill cores preserved).
Exploitation had been mostly in the first 250 m, open on strike and at depth.
Only a small portion has been mined out: 115,000 oz (8% of current MRE).
Underground bulk mining cost was defined in 2023 Preliminary Economic Assessment ("PEA") at $63.6 per tonne.
Cut-off grade
(g/t) | True Width
(metres) | Tonnes
(millions) | Average
Recoverable grade
(g/t) | Gold Recoverable
(troy Koz) |
| 1 | 53.1 | 35.8 | 2.44 | 2.807 |
| 2 | 34.3 | 20.6 | 3.13 | 2.071 |
| 3 | 16.8 | 9.2 | 3.93 | 1.167 |
| 4 | 8.6 | 3.0 | 5.06 | 483 |
| 5 | 6.4 | 1.0 | 6.34 | 211 |
| 6 | 5.8 | 0.5 | 7.27 | 120 |
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Table 1: Average true width for every cut-off grade.
The extraordinary average true width of the mineralized structure is ideal for the potential implementation of a large-scale underground mining plan similar to what was outlined in the 2023 PEA.
MRE covers only 20% of the structure:
Figure 1: Long section of the 4 km structure on the Project property, part of the Mother Lode Belt.
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"We are pleased with the newly updated Mineral Resource Estimate (MRE) results, which builds on the Project's proven resource base. The professionally modelled and estimated mineral resource now provides added optionality and leverage. This creates an ideal platform for comparing and contrasting various development, mining, and production scenarios from technical, capital intensity, and market optics perspectives," comments Jon Hill, a Director of the Board and Chair of the Technical Committee.
"The updated mineral resource model highlights thick (>15 m) gold mineralization, which supports the vital grade x thickness and ounces per vertical meter metrics. These metrics are fundamental requirements in any mining scenario for underpinning strong project economics. We look forward to progressing the necessary exploration and development work over the next months as we advance the Project's development."
| Resource Category | Vein | MTonnes | Recoverable
Au_g/t3 | Moz Au |
| Total Indicated | 0.91 | 4.13 | 0.120 |
| Total Inferred | 5.58 | 3.97 | 0.712 |
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| Category | Disseminated | MTonnes | Au_g/t3 | Moz Au |
| Total Inferred | 2.95 | 3.95 | 0.375 |
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| Category | Total | MTonnes | Au_g/t3 | Moz Au |
| Total Indicated | 0.91 | 4.13 | 0.120 |
| Total Inferred | 8.48 | 3.96 | 1.074 |
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Table 2: Fremont Gold Project's Mineral Resource Statement at 3 g/t Gold Cut-off
(1)Â Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability.
(2)Â The estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, socio-political, marketing, or other relevant issues.
(3)Â The Inferred Mineral Resource in this estimate has a lower level of confidence than that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
(4)Â The Mineral Resources in this report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by the CIM Council.
Only 8% of the 2025 MRE exploited:
Figure 2: Transversal section of the Pine Tree-Josephine area where the mined-out stopes of the Pine Tree Vein can be recognized (white void in the centre of the structure) and the higher grade (>6 g/t of Au) blocks that were left unmined. Historical production is 8% of the current MRE at 3 g/t cut-off.
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The project was mined between 1859 and 1942 with a production of 115,000 oz of gold at an average grade of 10.7 g/t Au (1942, Pacific Mining Co.4). That historical production is roughly equivalent to 8% of the current MRE. at 3 g/t cut-off. The mine was ramping up production from 90 to 180 tonnes per day when the mining license was suspended during the gold mining prohibition of the Second World War.
Extraction was mostly in the first 250 m, except for the Pine Tree Vein where production was up to 500 m in depth, following down plunge of just one ore shoot.
Significant portion has been left unmined:
Figure 3: The 2025 block model of the Pine Tree Vein where historical mined out stopes were subtracted from the model (hollowed areas in the centre of the vein).
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In the Josephine Vein, the mined stopes were only in the first 250 m. As such, the resource left behind unmined is larger than what's at the Pine Tree Vein.
Josephine Vein - an even bigger portion unmined:
Figure 4: 2025 block model of the Josephine Vein where historical mined out stopes were subtracted from the model (hollowed areas in the centre of the vein).
To view an enhanced version of this graphic, please visit:
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The 2025 Mineral Resource Estimation took into consideration two different domains: (i) within the veins and (ii) disseminated gold around the veins. The hypothesis was that gold in the veins had a much higher grade than in the disseminated body. Surprisingly, the 2025 MRE shows that both domains have the same grades at the same cut-offs.
100% of the disseminated body left unmined:
Figure 5: 2025 block model for the disseminated body with the higher-grade areas (> 4 g/t of Au in magenta, > 6 g/t of Au in dark purple).
To view an enhanced version of this graphic, please visit:
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Mineral Resources
The current mineral resource was based on a new geological block model that has been derived from 43,000 m of drilling and the technical information from the 2023 PEA.
The 2025 MRE and resource modelling was prepared under National Instrument 43-101 standards. Independent and Qualified Person ("QP"), Patrick J. Hollenbeck has reviewed, validated and approved the Fremont MRE as well as the technical disclosure in this release.
Upon completion of the assessment of the underground workings, access to adits will be made available. With further systematic underground channel sampling, a large portion of the current Inferred resources from the 2025 MRE (approximately 50%) could be upgraded to Measured and Indicated categories. This upgrade would be achieved by converting the extensive historical information at our disposal (23 km of underground workings with samples; 43,000 m of drilling with drill cores preserved), ensuring full compliance.
The current resource is derived from the upper 250 m to 500 m and covers only about 20% of the 4 km structure. Opportunity exists to expand resources; mineralization is open on strike and at depth.
Underground Optionality Exists to Optimize Project Economics
This study confirms that the Project, with an average mining true width of 16.8 m at 3 g/t of Au cut-off (between 0.6 m and 81 m), is conducive to an underground operation. Mining can be optimized at a higher production rate via long hole stoping underground bulk mining, possibly 200,000/oz annually. This method enables a higher rate of extraction than selective high grade vein mining at lower costs. Based on the 2023 PEA, the underground bulk mining cost is $65/t. As such, a low cut-off grade of 1.15 g/t (at $2,000/oz Au) could be considered using those numbers.
These results from the new 2025 MRE are crucial in transitioning the project from a combined open pit and underground mining scenario to a fully underground operation, aligning with the new management team's vision and Carlos Saban's work as Technical Advisor.
Choosing an underground project instead of an open pit can provide various advantages. Firstly, it can be easier to obtain permitting for underground operations as they typically have less social and environmental impact compared to open pit mining. This can lead to smoother regulatory processes and fewer delays in getting the Project up and running. Additionally, underground projects require less infrastructure and equipment to be built and maintained. This could result in cost savings for the company and potentially higher returns on investment. Furthermore, underground mining can be a more cost-effective option for accessing mineralization at depth (>250 m).
Fremont Gold Project Mineralization
The Project deposits represent a precious metal-rich ophiolitic orogenic deposit with listwaenitic alteration, hosted in the serpentinites of the Smartville Complex. Mineralization is contained in several veins, disseminated and stock work vein zones that display a variety of textural and mineralogical characteristics.
The veins are white quartz veins with free gold and electrum or relatively sulphide rich (>1% S) with gold as inclusions in the pyrite, chalcopyrite and gersdorffite. Disseminated and stockwork mineralization is mainly composed as quartz veinlets with free gold in them. Alteration is listwaenitic (carbonate alteration of serpentinites) with the formation of ankerite, fuchsite, magnesite and locally talc.
Before a Financial Investment Decision ("FID"), the Company will be conducting various aspects of evaluation, including the upcoming milestones.
Upcoming Catalysts
Complete an internal scoping study to optimize NPV.
Publish a new NI 43-101 Technical Report (45 days following the filing of this news release).
Revise and update the March 2023 PEA.
Conduct underground channel sampling to potentially upgrade approximately 50% of current Inferred resources from the 2025 MRE to higher-confidence Measured and Indicated categories.
Expand resources; 3,000 m underground drilling will be focused on low information areas next to the 2025 MRE.
"This transition from an open-pit and underground project to a fully underground operation is exciting. Likely, this translates to a lower Capex, and less environmental footprint and with only 8% of the current resource (>1.2 Moz at 4 g/t) having been exploited, we essentially have 92% left to mine," comments Wendy T. Chan, CEO and Director of Lode Gold.
"The new finding that mineralization in and outside the veins are the same grades is compelling. With this study, we are reassured that this is not your typical brownfield mined-out project; rather there was gold there when the mining license was suspended in 1942 (Gold mining prohibition during WW II). Without question, the project has been frozen in time, the gold left behind has essentially been 'forgotten' until now".
Over the next 12 to 24 months, Lode Gold will dedicate resources to assess the potential reactivation of the mine at the Project site, with an FID targeted for 2027. If the decision is to pursue reactivation of the mine, it could create 200 jobs for both men and women, with training programs set to begin 12-18 months before production commences. Additionally, the Company is exploring the possibility of constructing affordable housing on-site to support the workforce. Lode Gold is also considering the feasibility of implementing renewable electricity generated onsite to operate a sustainable mine.
Fremont Mineral Resource Estimate Notes
Mineral resources were estimated in conformity with generally accepted CIM "Estimation of Mineral Resource and Mineral Reserve Best Practices" Guidelines. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The Mineral Resources may be affected by subsequent assessment of mining, environmental, processing, permitting, taxation, socio-economic and other factors.
Mineral reserves can only be estimated based on the results of an economic evaluation as part of a preliminary feasibility study or feasibility study. As such, no Mineral Reserves have been estimated by the QP. There is no certainty that all or any part of the mineral resources will be converted into a mineral reserve.
Inferred mineral resources have a great amount of uncertainty as to their existence and as to whether they can be mined legally or economically. It is safe to assume that the majority of the Inferred mineral resources could be upgraded to a higher category with additional exploration. Mineral resources that are not mineral reserves have no demonstrated economic viability.
Resources are reported in situ and undiluted for underground scenarios and are considered to have reasonable prospects for economic extraction. Metallurgical recoveries of 90% Au were utilized in the determination of the Recoverable Gold.
Mineralization occurring within the historical underground drifts and stopes is not included in this MRE.
The calculated underground cut-off was determined to be 1.45 g/t Au in the 2023 PEA. Cut-off grades must be re-evaluated considering prevailing market conditions (including gold prices, exchange rates and costs). At the request of the Company, the underground resources are reported at a cut-off grade of 3 g/t Au.
Block tonnage was estimated from volumes using a bulk density of 2.76, the same that was used in the 2023 PEA.
Nine mineralization domains were created to constrain the estimate - seven vein constrained domains and two disseminated underground domains.
Each individual vein was defined by individual wireframes created in Leapfrog Geo (Seequent) software using geologically realistic solids using geological underground map plans, transversal sections and gold assays (with grades that were above 4 g/t). Each domain was modified or reassessed individually to consider presiding mineralization features.
High grade capping was set on a vein-by-vein basis depending on the grade distributions in each mineralized and non-mineralized domain within a given vein. Caps were set on the composited values in all cases where composites were used. Lognormal Probability Plots and histogram distributions were examined to look for breaks or peaks in the data, which in turn would suggest a cap value.
Search orientations were created using the Variable Anisotropy function in Leapfrog EDGE software using a combination of crossing faults and an overarching vein orientation, which facilitated the creation of "chutes" where the faults crossed the veins and allowed apertures of mineralization to form.
Three estimation methods were utilized to generate the Pine Tree/Josephine resource: Ordinary Krige ("OK"), Inverse Distance ("ID"), and Nearest Neighbor ("NN"). The Queen Specimen had too few samples for variography and was only estimated with ID and NN.
Resources were estimated using Leapfrog EDGE software from drill hole sampling in an Octree-style block model with 20x20x20m parent blocks, which are sub-blocked by a factor of 32 down to a minimum size of 0.625x0.625x0.625m blocks.
Indicated resources were categorized using the following criteria, which varied per vein based on the available drilling data:
A minimum distance to the nearest modern drilling sample used in the block estimation.
The Kriged Slope of Regression Value in a given block;
A minimum number of drillholes or channels used for the block estimation.
All blocks not categorized as Indicated were assigned an Inferred category. Additionally, all blocks in the Queen Specimen area were categorized as Inferred.
Estimates use metric units (metres, tonnes and g/t). Metal contents are presented in troy ounces (metric tonne x grade / 31.10348).
Neither the Company, nor the QP, is aware of any known environmental, permitting, legal, title-related, taxation, socio-political, marketing or other relevant issue that could materially affect this mineral resource estimate.
The quantity and grade of reported Inferred mineral resources in this estimation are uncertain in nature and there has been insufficient exploration to re-define these Inferred mineral resources as Indicated mineral resources.
About Lode Gold
Lode Gold (TSXV: LOD) is an exploration and development company with projects in highly prospective and safe mining jurisdictions in Canada and the United States.
In Canada, its Golden Culvert and WIN Projects in Yukon, covering 99.5 km2 across a 27-km strike length, are situated in a district-scale, high grade gold mineralized trend within the southern portion of the Tombstone Gold Belt. A total of four RIRGS targets have been confirmed on the property. A NI 43-101 technical report has been completed in May 2024.
In New Brunswick, Lode Gold has created one of the largest land packages with its Acadian Gold JV Co; consisting of an area that spans 445 km2 and a 44 km strike. McIntyre Brook covers 111 km2 and a 17-km strike in the emerging Appalachian/Iapetus Gold Belt; it is hosted by orogenic rocks of similar age and structure as New Found Gold's Queensway Project. Riley Brook is a 335 km2 package covering a 26 km strike of Wapske formation with its numerous felsic units. A NI 43-101 technical report has been completed in August 2024.
In the United States, the Company is advancing its Fremont Gold project. This is a brownfield project with over 43,000 m drilled and 23 km of underground workings. It was previously mined at 10.7 g/t Au in the 1930's.
Mining was halted in 1942 due the gold mining prohibition in World War Two just as it was ramping up production. Unlike typical brownfield projects that are mined out, only 8% of the veins have been exploited. The Company is the first owner to investigate an underground high grade mine potential at the Project site.
The Project is located on 3,351 acres of private and patented land in Mariposa County. The asset is a 4 km strike on the prolific 190 km Mother Lode Gold Belt, California that produced over 50,000,000 oz of gold and is instrumental in the creation of the towns, the businesses and infrastructure in the 1800s gold rush. It is 1.5 hours from Fresno, California. The property has year-round road access and is close to airports and rail.
Previously, in March 2023 the company completed an NI 43 101 PEA. A sensitivity to the March 31, 2023 PEA at USD $2,000/oz gold gives an after-tax NPV of USD $370M and a 31% IRR over an 11-year LOM. At $1,750 /oz gold, NPV (5%) is $217M. The project hosts an NI 43-101 resource of 1.16 Moz at 1.90 g/t Au within 19.0 MT Indicated and 2.02 Moz at 2.22 g/t Au within 28.3 MT Inferred. The MRE evaluates only 1.4 km of the 4 km strike of the Project's property. Three step-out holes at depth (up to 1200 m) hit structure and were mineralized.
All NI 43-101 technical reports are available on the Company's profile on SEDAR+ (www.sedarplus.ca) and the Company's website (www.lode-gold.com).
QUALIFIED PERSON STATEMENT
The Independent and Qualified Person for the Fremont MRE is Patrick J. Hollenbeck, P.Geo. He has reviewed, completed, validated and approved the Fremont MRE as well as the technical disclosure in this release. In accordance with National Instrument 43-101 Standards of Disclosure for Mineral Projects, this Qualified Person for the Company has validated and approved the technical and scientific content of this news release. The Company strictly adheres to CIM Best Practices Guidelines in conducting, documenting, and reporting its activities on its various exploration projects.
Cautionary Note Related to this News Release and Figures
This news release contains information about adjacent properties on which the Company has no right to explore or mine. Readers are cautioned that mineral deposits on adjacent properties are not indicative of mineral deposits on the Company's properties.
Cautionary Statement Regarding Forward-Looking Information
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release includes "forward-looking statements" and "forward-looking information" within the meaning of Canadian securities legislation. All statements included in this news release, other than statements of historical fact, are forward-looking statements including, without limitation, statements with respect to the use of proceeds, advancement and completion of resource calculation, feasibility studies, and exploration plans and targets. Forward-looking statements include predictions, projections and forecasts and are often, but not always, identified by the use of words such as "anticipate", "believe", "plan", "estimate", "expect", "potential", "target", "budget" and "intend" and statements that an event or result "may", "will", "should", "could" or "might" occur or be achieved and other similar expressions and includes the negatives thereof.
Forward-looking statements are based on a number of assumptions and estimates that, while considered reasonable by management based on the business and markets in which the Company operates, are inherently subject to significant operational, economic, and competitive uncertainties, risks and contingencies. These include assumptions regarding, among other things: the status of community relations and the security situation on site; general business and economic conditions; the availability of additional exploration and mineral project financing; the supply and demand for, inventories of, and the level and volatility of the prices of metals; relationships with strategic partners; the timing and receipt of governmental permits and approvals; the timing and receipt of community and landowner approvals; changes in regulations; political factors; the accuracy of the Company's interpretation of drill results; the geology, grade and continuity of the Company's mineral deposits; the availability of equipment, skilled labour and services needed for the exploration and development of mineral properties; currency fluctuations; and impact of the COVID-19 pandemic.
There can be no assurance that forward-looking statements will prove to be accurate and actual results, and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from the Company's expectations include a deterioration of security on site or actions by the local community that inhibits access and/or the ability to productively work on site, actual exploration results, interpretation of metallurgical characteristics of the mineralization, changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, uninsured risks, regulatory changes, delays or inability to receive required approvals, unknown impact related to potential business disruptions stemming from the COVID-19 outbreak, or another infectious illness, and other exploration or other risks detailed herein and from time to time in the filings made by the Company with securities regulators, including those described under the heading "Risks and Uncertainties" in the Company's most recently filed MD&A. The Company does not undertake to update or revise any forward-looking statements, except in accordance with applicable law.
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1Recoverable Gold (90% recovery, 10% discount over Content Gold).
2An Opportunity Zone refers to a specific designation and investment initiative established by the Tax Cuts and Jobs Act of 2017, enabling certain investments in economically disadvantaged areas to receive tax benefits. Opportunity zones | Internal Revenue Service. (n.d.). https://www.irs.gov/credits-deductions/businesses/opportunity-zones
3Recoverable Gold (90% recovery, 10% discount over Content Gold)
4Pacific Mining Co. (1941). Seventh Annual Report for the year ended December 31, 1939.
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