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Form 6-K PAN AMERICAN SILVER CORP For: Feb 18

February 22, 2022 4:11 PM EST

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
__________________
FORM 6-K 
_____________________
 
REPORT OF FOREIGN PRIVATE ISSUER
 
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT of 1934
 
February 22, 2022
_____________________
 
Pan American Silver Corp.
(Exact name of registrant as specified in its charter)
 
 1500-625 HOWE STREET
VANCOUVER BC CANADA V6C 2T6
(Address of principal executive offices)
 
 000-13727
(Commission File Number)
_____________________
 
Indicate by check mark whether the registrant files or will file annual reports under cover Form 20-F or Form 40-F.
Form 20-F  Form 40-F   X 
 
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1). _____
  
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____





EXHIBIT LIST
 
 
Cautionary Note to U.S. Investors Concerning Estimates of
Measured, Indicated and Inferred Resources

The NI 43-101 Technical Report, Updated Mineral Resource and Mineral Reserve Estimate for the Timmins West Mine Property, Bristol Township, Timmins, Ontario, Canada, included as Exhibit 99.1 hereto (the “Technical Report”), has been prepared in accordance with Canadian National Instrument 43-101 — Standards of Disclosure for Mineral Projects (“NI 43-101”) and the Canadian Institute of Mining, Metallurgy and Petroleum classification system. NI 43-101 is a rule developed by the Canadian Securities Administrators that establishes standards for all public disclosure an issuer makes of scientific and technical information concerning mineral projects.

Canadian public disclosure standards, including NI 43-101, differ significantly from the requirements of the United States Securities and Exchange Commission (the “SEC”), and reserve and resource information included herein may not be comparable to similar information disclosed by U.S. companies. In particular, and without limiting the generality of the foregoing, the Technical Report uses the terms “measured resources,” “indicated resources” and “inferred resources.” U.S. investors are advised that, while such terms are recognized and required by Canadian securities laws, the SEC does not recognize them. The requirements of NI 43-101 for the identification of “reserves” are also not the same as those of the SEC, and reserves reported by the Registrant in compliance with NI 43-101 may not qualify as “reserves” under SEC standards. Under U.S. standards, mineralization may not be classified as a “reserve” unless the determination has been made that the mineralization could be economically and legally produced or extracted at the time the reserve determination is made. U.S. investors are cautioned not to assume that any part of a “measured resource” or “indicated resource” will ever be converted into a “reserve”. U.S. investors should also understand that “inferred resources” have a great amount of uncertainty as to their existence and as to their economic and legal feasibility. It cannot be assumed that all or any part of “inferred resources” exist, are economically or legally mineable or will ever be upgraded to a higher category. Under Canadian rules, estimated “inferred resources” may not form the basis of feasibility or pre-feasibility studies except in rare cases. In addition, disclosure of “contained ounces” in a mineral resource is permitted disclosure under Canadian regulations. However, the SEC normally only permits issuers to report mineralization that does not constitute “reserves” by SEC standards as in place tonnage and grade, without reference to unit measures. Accordingly, information concerning mineral deposits set forth in the Technical Report may not be comparable with information made public by companies that report in accordance with U.S. standards.




Signatures
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
 
Pan American Silver Corp.
(Registrant)
   
Date: February 22, 2022By:/s/ "Delaney Fisher"
Delaney Fisher
VP Associate General Counsel & Corporate Secretary



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National Instrument 43-101 Technical Report, Updated Mineral Resource and Mineral Reserve Estimate for
the Timmins West Mine Property, Bristol Township, Timmins, Ontario, Canada
NTS: 42-A-05
Longitude: 81.55° West, Latitude: 48.32° North
UTM (NAD 83, Zone17): 458,915m East, 5,359,043m North
Effective date: June 30, 2021
Prepared by:
Eric Lachapelle, P. Eng., Manager, Technical Services
Al Mainville, P. Geo., Geology Manager
Dave Felsher, , P. Eng., Mill Manager
 







PAN AMERICAN SILVER CORP

Table of Contents
1Summary11
1.1Property Description and Ownership11
1.2Geology and Mineralization11
1.3Status of Exploration, Development, and Operations11
1.4Mineral Resource and Reserve Statements13
Mineral Resources    
13
Mineral Reserves    
14
1.5Mineral Tenure, Surface Rights, and Royalties15
1.6Permits16
1.7Environmental Considerations16
1.8Mining Operations16
1.9Processing16
1.10Capital and Operating Costs17
1.11Conclusions and Recommendations17
2Introduction18
2.1List and Responsibilities of Qualified Persons18
3Reliance on Other Experts19
4Property Description and Location19
4.1Location, Description, Issuer’s Interest, Mineral Tenure, and Surface Rights19
4.2Ownership History and Underlying Agreements24
4.3Past Mining, Environmental Liabilities and Permitting28
4.4Significant Factors and Risks28
4.5Consultation28
5Accessibility, Climate, Local Resources, Infrastructure, and Physiography28
5.1Physiography, Vegetation, and Climate28
5.2Accessibility, Local Resources, Population Centres, and Transport30
5.3Surface Rights31
5.4Power and Water31
5.5Infrastructure31
6History32
6.1Historical Resource Estimates36
6.1.1
Historically Significant Non‐Compliant NI 43‐101 Resource Estimates    
36
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6.1.2
 NI 43‐101 Compliant Mineral Reserve and Mineral Resource Estimates
36
6.2Historic Production43
7Geological Setting and Mineralization44
7.1Regional Geology44
7.2Local and Property Geology49
Timmins Deposit Portion of the Timmins West Mine    
51
Thunder Creek Portion of the Timmins West Mine    
54
144 Gap Deposit Portion of the Timmins West Mine    
57
7.3Structural Geology60
7.4Mineralization61
Timmins Deposit    
62
Thunder Creek Deposit    
64
144 Gap Deposit    
66
8Deposit types    `69
9Exploration72
10Drilling74
10.1Historic Drilling Summary74
10.2Drilling on the Timmins Deposit Property by Lake Shore Gold77
10.3Drilling on the Thunder Creek Property by Lake Shore Gold80
10.4Drilling on the 144 Gap Property by Lake Shore Gold    `82
10.5Material Impact on the Accuracy and Reliability of Drilling Results92
11Sample Preparation, Analyses, and Security92
11.1Surface Diamond Drill Programs92
General Statement    
92
Core Handling and Logging Protocols    
92
Property Grids, Hole Collar, and Downhole Attitude Surveys    
93
Security    
93
Drill Core Sampling Method and Approach, Sample Preparation, Analysis, and Analytical Procedures    
94
11.2Underground Diamond Drill Program101
General Statement    
101
Core Handling and Logging Protocols    
102
Property Grids, Hole Collar, and Downhole Attitude Surveys    
102
Security    
104
Underground Diamond Drill Core Sampling Protocols    
104
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11.3Data Management for Surface and Underground Diamond Drill Programs106
Accuracy and Contamination Analysis - Standards and Blanks106
Reporting and Plotting107
11.4Check Assay Program108
General Statement    
108
Procedures    
108
11.5Discussion109
12Data Verification110
12.1Geology Data Reviews110
13Mineral Processing and Metallurgical Testing111
13.1Introduction and Previous Work111
13.2Metallurgical Recovery112
14Mineral Resource Estimates114
14.1Summary114
14.2Database Compilation and Verification116
14.3Interpretation and Modelling of Mineralized Zones117
14.4Statistical Analysis122
Grade Capping    
122
Assay Compositing    
124
Variography    
125
14.5Specific Gravity126
14.6Block Model Mineral Resource Modeling127
Block Model Parameters    
127
Grade Interpolation    
128
14.7Block Model Validation132
14.8Removal of Mined and Non-Recoverable Resource Blocks135
14.9Mineral Resources Classification135
14.10Mineral Resources135
14.11Reconciliation to Previous Mineral Resource Estimate137
14.12Additional Drill Hole Information140
15Mineral Reserve Estimates140
15.1Summary140
15.2Cut-Off Grade141
15.3Timmins Deposit Mineral Reserve Estimate142
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15.4Thunder Creek Deposit Mineral Reserve Estimate143
15.5144 Gap Deposit Mineral Reserve Estimate143
15.6Timmins West Mine Mineral Reserves144
16Mining Methods146
16.1Overview146
Underground Access    
147
Primary / Secondary Access    
147
16.2Shaft and Hoisting Facilities148
Hoisting Plant    
148
Shaft Services    
148
Ore / Waste Handling System and Loading Pocket    
149
16.3Stoping Methods149
Timmins Deposit    
149
Thunder Creek Deposit    
151
144 Gap Deposit    
152
16.4Resource Analysis (Dilution and Recovery)152
Mining Dilution and Recovery152
16.5Haulage154
16.6Development154
Timmins Deposit    
154
Thunder Creek Deposit    
155
144 Gap Deposit    
155
Ground Support    
156
16.7Development Schedules156
16.8Backfill156
16.9Production156
Timmins Deposit Production    
156
Thunder Creek Deposit Production    
157
144 Gap Deposit Production    
157
Timmins West Mine Production    
157
16.1Production Equipment157
16.11Ventilation158
Timmins Deposit Ventilation    
158
Thunder Creek Ventilation    
159
144 Gap Ventilation    
159
Mine Air Heating and Cooling    
160
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16.12Personnel160
16.13Underground Mine Services162
Electrical Distribution and Communications163
Compressed Air163
Service Water163
Mine Dewatering164
Roadbed Material164
16.14Materials Supply164
16.15Maintenance164
16.16Safety165
16.17Geotechnical165
17Recovery Methods166
17.1History167
17.2Bell Creek Mill Process Description167
17.3Metallurgical Balance168
17.42021 Mineral Processing Results of Timmins West Mine Ore171
18Project Infrastructure171
18.1Timmins West Mine Site171
18.2Bell Creek Mill Site173
19Market Studies and Contracts175
19.1Contracts and Marketing175
Gold Sales    
175
Gold Market    
175
19.2Review by the Qualified Person175
20Environmental Studies, Permitting, and Social or Community Impact176
20.1Regulatory and Framework176
20.2Mine Waste Disposal, Site Monitoring and Water Management176
20.3Social and Community Factors177
20.4Project Reclamation and Closure177
21Capital and Operating Costs177
21.1Capital Costs177
21.2Operating Costs179
22Economic Analysis179
23Adjacent Properties179
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23.1Pelangio Exploration Inc. – Poirier Option – Bristol Township180
23.2
1571925 Ontario Ltd. (formerly SGX Resources Inc.) - West Timmins Gold Project – Carscallen Township180
23.3Richmont Mines Inc. – Cripple Creek Property – Denton Township181
23.4
Galleon Gold (formerly Explor Resources Inc.) – West Cache Property – Bristol and Ogden Townships182
23.5Melkior – Carscallen Gold Project Property – Carscallen Township183
23.6Moneta – Denton Property – Denton and Thorneloe Townships183
24Other Relevant Data and Information184
25Interpretation and Conclusions184
26Recommendations186
27References188
27.1Reports and Schedules188
27.2Assessment Research Imaging Files (AFRI)195
28Date, Signatures, and Certificates202
CERTIFICATE    
203
CERTIFICATE    
204
CERTIFICATE    
205

Figures
Figure 4.1: Regional Timmins West Property Location    
21
Figure 4.2: Timmins West Mine    
22
Figure 4.3: Timmins West Mine Royalties Map    
27
Figure 5.1: Physiography    
30
Figure 7.1: Tectonic Assemblages of the Abitibi Subprovince East of the Kapuskasing Structural Zone (After Ayer, J.A., Dubé, B., Trowell, N.F.; NE Ontario Mines and Minerals Symposium, April 16, 2009)     
46
Figure 7.2: Regional Geology Map    
49
Figure 7.3: Property Geology    
50
Figure 7.4: Timmins Deposit Underground Geology at 790L (Lower Mine)    
52
Figure 7.5: Timmins Deposit Generalized Cross-Section 4575E (Timmins West Mine Grid – looking West)    
53
Figure 7.6: Thunder Creek Underground Geology at 765L (Lower Mine)    
55
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Figure 7.7: Thunder Creek Generalized Cross-Section, 9550N (Thunder Creek Rotated Surface Grid looking SW)    
56
Figure 7.8: 144 Gap Deposit Geological Level Plan, 820L (Exploration Drift)    
59
Figure 7.9: 144 GAP Deposit Generalized Cross-Section, 8600N (Highway 144 Rotated Surface Grid, Looking Southwest)    
60
Figure 7.10: 144 GAP 835L Crosscut Sampling and Wall Mapping Showing Different Generations and Density of Veining relative to Gold Grades    
69
Figure 10.1: Surface Diamond Drilling relative to Vertical Projection of Generalized Resource Envelopes    
76
Figure 14.1: 3D View of Mineralized Domain Solids, Looking Northwest    
121
Figure 14.2: Log Histogram of Capped Assay Composites within the W_POR Mineralized Domain of the 144 Gap Deposit    
125
Figure 14.3: Log Variogram Model of Composited Assays within the W_POR Mineralized Domain of the 144 Gap Deposit    
126
Figure 14.4: 144 GAP Deposit Schematic Plan View at 820L – Block Model and Diamond Drill Holes    
133
Figure 14.5: 144 GAP Deposit – Schematic Section 8600 Looking Southwest – Block Model and Diamond Drill Holes    
134
Figure 14.6: Schematic 3D View of Block Models Looking Northwest    
137
Figure 16.1: Timmins West Mine Existing Underground Infrastructure    
147
Figure 16.2: Longitudinal Longhole Mining Method    
150
Figure 16.3: Transverse Longhole Mining Method    
152
Figure 16.4: Timmins West Mine Ventilation System    
159
Figure 17.1: Simplified Milling Process and Sampling Points    
170
Figure 18.1: Timmins West Mine Surface Infrastructure    
172
Figure 18.2: Bell Creek Mill Facility    
174
Figure 23.1: Timmins West Mine – Adjacent Properties    
180

Tables
Table 1.1: Timmins West Mine Mineral Resources    
13
Table 1.2: Timmins West Mine Proven and Probable Mineral Reserves    
14
Table 4.1: Timmins West Mine Land Tenure    
23
Table 5.1: Average Temperature, Precipitation and Snowfall Depths for the Timmins Area    
29
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Table 6.1: Chronology of Events for the Timmins West Mine Area    
32
Table 6.2: WGM polygonal Mineral Resource October 31 2006 for TWM    
37
Table 6.3: LSG Updated Mineral Resource based on SRK Polygonal Resource and Stantec Mineral Reserve, August 2009 (Darling et al., 2009) for TWM    
37
Table 6.4: LSG Initial Mineral Resource for the Thunder Creek Deposit (Crick et al., 2011)    
38
Table 6.5: LSG Updated Mineral Resource for Timmins West Mine (Crick et al., 2012A)    
38
Table 6.6: LSG Mineral Reserve and Indicated Mineral Resource for Timmins West Mine (Crick et al., 2012B)    
38
Table 6.7: LSG Mineral Reserve and Mineral Resource Timmins West Mine, at Year-End 2012 (AIF 2012; Press Release Dated March 18, 2013)    
39
Table 6.8: Timmins West Mine Mineral Resource and Mineral Reserve Estimates, March 2014    
39
Table 6.9: Timmins West Mine Mineral Resource and Mineral Reserve Statements, February 2016    
40
Table 6.10: Timmins West Mineral Resource and Mineral Reserve Statement, January 2017    
41
Table 6.11: Timmins West Mineral Resource Statement, May 15, 2017    
42
Table 6.12: Timmins West Mineral Reserve Statement, May 15, 2017    
43
Table 6.13: Timmins West Mine Annual Production Figures    
43
Table 7.1: Tectonic Assemblages    
47
Table 8.1: Operations with Greater than 100,000 Ounces of Gold Production in the Porcupine Gold Camp (as of 2020)    
71
Table 9.1: Summary of Significant Exploration Activities Conducted by LSG at the Timmins West Mine, 2013 – Present (Excludes Drilling)    
72
Table 10.1: Diamond Drilling by Previous Operators on the Timmins West Mine Property (1984-2002)    
75
Table 10.2: Statistics on Diamond Drilling for Timmins West Mine Area by LSG (2003 - April 19, 2021)
87
Table 10.3: Drilling and Sampling Statistics to Cut-Off Dates from Database    
89
Table 11.1: Standards used by Lake Shore Gold    
99
Table 11.2: Summary of Sample Distribution by Analytical Laboratories101
Table 11.3: Timmins West Mine Diamond Drill Core QA/QC Sample Summary up to April 19, 2021109
Table 13.1: Timmins West Mine Yearly Milling Recovery114
Table 14.1: Timmins West Mine Mineral Resource Statement115
Table 14.2: Summary of Gems SQL Drill Hole Database Fields used in the Mineral Resource Estimate117
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Table 14.3: Description of Mineralized Domains118
Table 14.4: Statistics for Capped vs. Uncapped Gold Grades122
Table 14.5: Specific Gravity by Zone127
Table 14.6: Block Model Grid Parameters128
Table 14.7: Timmins Deposit Search Ellipse Parameters130
Table 14.8: Thunder Creek Deposit Search Ellipse Parameters131
Table 14.9: 144 GAP Deposit Search Ellipse Parameters131
Table 14.10: Timmins West Mine Mineral Resources Statements136
Table 14.11: Comparison of 2020 Midyear and 2021 Midyear Mineral Resource Estimates (exclusive of Mineral Reserves) and Mineral Reserves    
138
Table 15.1: Timmins West Mine Mineral Reserve estimate140
Table 15.2: Timmins West Mine Cut-Off Grade Assumptions141
Table 15.3: Timmins West Mine Combined Proven and Probable Mineral Reserves144
Table 16.1: Surface and Underground Mobile Equipment Fleet157
Table 16.2: Personnel on Payroll160
Table 17.1: Timmins West Mine Material Processed in 2020171
Table 20.1: List of Main TWM Environmental Permits and Approvals176
Table 21.1: Sustaining Capital Cost Summary for 2022178
Table 21.2: Operating Costs Summary179



June 30, 2021        10




1Summary
Pan American Silver Corp. (“Pan American” or the “Company”), through its wholly owned subsidiary, Lake Shore Gold Corporation (“LSG”), owns and operates the Timmins West Mine (“TWM”) in Ontario, Canada. The TWM is comprised of three deposits: the Timmins Deposit, Thunder Creek Deposit, and 144 Gap Deposit which are Archean-age gold deposits within the Abitibi subprovince of Canada.
1.1    Property Description and Ownership
This technical report (the “Report” or “Technical Report”) refers to the TWM, an underground gold mine located in Bristol Township, Timmins, Ontario, Canada. Pan American is the 100% owner of the property (the “Property” as outlined in Figure 4.1) through its wholly owned subsidiary, LSG.
1.2    Geology and Mineralization
The TWM includes the Timmins, Thunder Creek, and 144 Gap Deposits, all of which occur along the 144 Trend, a broad structural corridor that extends to the southwest from the Timmins Deposit area. This corridor generally coincides with the northeast trending contact zone between southeast facing mafic metavolcanic rocks of the Tisdale Assemblage (to the northwest) and dominantly southeasterly facing metasedimentary rocks of the Porcupine Assemblage (to the southeast). The contact dips steeply to the northwest and is modified, and locally deflected by folds and shear zones that are associated with gold mineralization.
Gold mineralization occurs in steep north-northwest plunging zones which occur within, or along favorable lithostructural settings in proximity (within hundreds of metres (“m”)) to the 144 Trend and related structures (i.e. Holmer and Rusk Shear Zones). Mineralization comprises multiple generations of quartz-carbonate-tourmaline ± albite veins, associated pyrite alteration envelopes, and disseminated pyrite mineralization. Textural evidence suggests that veining formed progressively through D3 and D4 deformation events. All phases of gold-bearing veins cut and post-date the Alkalic Intrusive Complex (“AIC”) and syenitic to monzonitic intrusions, although mineralization is often spatially associated with, and ore preferentially developed within, these intrusive suites (Rhys, 2010).
1.3    Status of Exploration, Development, and Operations
Near mine exploration takes place annually and includes testing undrilled areas of the deposit at depth and along strike, as well as infill drilling to upgrade the confidence categories assigned to the mineral resource and mineral reserve estimates. Drilling at the Timmins Deposit involved testing from both surface and underground locations to evaluate its extensions below the 1,315 metre Level (“L”). Exploration along the
June 30, 2021        11



144 Trend included drilling designed to continue testing of the 144 Southwest target, approximately 1.6 kilometre (“km”) southwest of the 144 Gap Deposit, as well as new areas over 1km to the southwest along the 144 Offset target trend. Work on these targets is now complete for 2021 but information is currently being reviewed for possible follow-up drilling in 2022.
The existing infrastructure includes the typical components of an operating underground mine, including the mine workings, shaft, hoist room, compressors, workshops, warehouse, offices, water and power lines, access roads, and water storage and treatment facilities.
Mining at TWM utilizes underground longhole stoping methods. Ore from the TWM is processed at the Company’s Bell Creek mill facility (the “Bell Creek Mill”) at a rate of approximately 3,300 tonnes per day (“tpd”) to produce gold-rich doré for sale to bullion banks and metal traders.
LSG reached commercial production at the Timmins and Thunder Creek deposits in January 2011 and January 2012, respectively. In October 2014, LSG announced the discovery of the 144 Gap Deposit, followed by an initial mineral resource estimate in February 2016 and the commencement of production. Through June 30th, 2021, the TWM had produced 1,128,795 ounces of gold from approximately 9.4 million tonnes of ore with an average gold grade of 3.74 grams per tonne (“g/t”).
This Technical Report provides an update of the TWM operations, supports the declaration of mineral resources and mineral reserves, and provides economic parameters from June 30, 2021 onwards.
Highlights of this Report for the TWM include:
Measured and indicated mineral resources of 0.25 million tonnes at an average gold grade of 3.73 g/t containing 30,100 ounces of gold and 0.97 million tonnes at an average gold grade of 3.32 g/t containing 103,100 ounces of gold, respectively.
inferred mineral resources of 174,000 tonnes at an average gold grade of 4.36 g/t containing 24,300 ounces of gold.
Proven and probable mineral reserves of 1.52 million tonnes at an average gold grade of 3.03 g/t containing 148,000 ounces of gold and 4.17 million tonnes at an average gold grade of 2.94 g/t containing 393,400 ounces of gold, respectively.
Mineral resources and mineral reserves stated in this Report have an effective date of June 30, 2021. Unless noted otherwise, mineral resources are reported exclusive of mineral reserves. All currency used is in United States dollars.
June 30, 2021        12



1.4    Mineral Resource and Reserve Statements
Mineral Resources
Pan American has prepared an updated mineral resource estimate for the TWM which includes mineralized zones from the Timmins, Thunder Creek and 144 Gap Deposits. The mineral resource estimate for the TWM is based on historical diamond drilling dating back to March 1984 and drilling completed by LSG between July 2003 and April 19, 2021. The database used to estimate the mineral resources at TWM includes data from 9,177 diamond drill holes totaling 1,718 km. The drill hole database has been subjected to verification and is considered to be robust and of adequate quality for the estimation of mineral resources.
The mineral resource estimate for the TWM contains 30,100 ounces of gold classified as measured resources, 103,100 ounces of gold classified as indicated resources, and 24,300 ounces of gold classified as inferred resources. The mineral resource has been depleted for mining up to the effective date of this Report (June 30, 2021). The TWM mineral resource statements is summarized in Table 1.1.
Table 1.1: Timmins West Mine Mineral Resources
In-Situ Resources Above 1.5 g/t Gold Cut-Off Grade
DepositClassificationTonnes(‘000)Gold Grade (g/t)Gold Ounces
TimminsIndicated5513.4661,200
Inferred1224.9219,300
Thunder CreekIndicated134.081,700
Inferred213.212,100
144 GapMeasured2523.7330,100
Indicated4033.140,200
Measured & Indicated6553.3470,300
Inferred312.933,000
Total Timmins West MineMeasured2523.7330,100
Indicated9673.32103,100
Measured & Indicated1,2193.4133,200
Inferred1744.3624,300
1The effective date of the mineral resource estimate is June 30, 2021.
2Mineral resource estimates have been classified according to the Canadian Institute of Mining Metallurgy and Petroleum’s “CIM Standards on Mineral Resources and Reserves, Definition and Guidelines” (the “CIM Definitions and Guidelines”), as per Canadian Securities Administrator’s NI 43-101 requirements.
3Mineral resources are reported exclusive of mineral reserves.
4The mineral resource estimate as at June 30, 2021 was calculated using a block model that was estimated in May 2021 and depleted for mining to April 2021 and from month-end production for May and June 2021
5Tonnage information is rounded to the nearest thousand and gold ounces to the nearest one hundred. As a result, totals may not add exactly due to rounding
6The mineral resource estimate was prepared under the supervision of, and verified by, Al Mainville, P. Geo., Geology Manager, LSG, who is a qualified person under NI 43-101.
June 30, 2021        13



The mineral resource for the Timmins Deposit is modeled as 88 sub‐zones which define the broader mineralized Ultramafic, Footwall and Vein Zones. The Thunder Creek Deposit is divided into 25 sub‐zones which define the broader Rusk and Porphyry Zones, while the 144 Gap Deposit is divided into 38 zones comprising the larger East Porphyry and West Porphyry bodies and Mafic Volcanic inclusions.
Estimation was completed using the inverse distance squared (“ID2”) interpolation method with an anisotropic search. All gold assays were capped with capping limits varying by zone between 10 and
120 g/t. A minimum width of 2.0 m was used for modeling mineralized zones. Only samples within a mineralized zone were used for estimation of the zone.
Several steps were taken in order to review and validate the current block model and reported results which included: comparison of solid and block model volumes, comparison of the block model against diamond drill results, and comparisons with recent production data. No significant issues were identified.
Mineral Reserves
The estimated proven and probable mineral reserves (diluted and recovered) for TWM are summarized in Table 1.2.
Table 1.2: Timmins West Mine Proven and Probable Mineral Reserves
DepositClassificationTonnes(‘000)Gold Grade (g/t)Gold Ounces
TimminsProbable
806
2.90
75,200
Thunder CreekProbable
22
2.69
1,800
144 GapProven
1,518
3.03
148,000
Probable
3,345
2.94
316,400
Proven & Probable
4,862
2.97
464,300
Total Timmins West MineProven
1,518
3.03
148,000
Probable
4,172
2.94
393,400
Proven & Probable
5,690
2.96
541,300
June 30, 2021        14



1.The effective date of this report is June 30, 2021. The mineral reserves as at June 30, 2021 were calculated using a block model that was estimated in May 2021 and depleted for mining to April 2021 and from month-end production for May and June 2021.
2.The mineral reserve estimates are classified in accordance with the CIM Definitions and Guidelines as per Canadian Securities Administrator’s NI 43-101 requirements.
3.Mineral reserves are based on a long-term gold price of US$1,450 per ounce and an exchange rate of 1.3 $CAD/$US.
4.Mineral reserves are supported by a mine plan that features stope thicknesses that vary per zone, and expected cost levels which change based on the mining methods utilized.
5.Mineral reserves incorporate a minimum cut-off grade of 2.0 g/t at 144 and Thunder Creek and 2.2 g/t at Timmins Mine. The cut-off grade includes estimated mining and site G&A costs of US$62.27 per tonne for 144/Thunder Creek and US$71.58 per tonne for Timmins Mine, milling costs of US$19.09 per tonne, trucking costs of US$6.80 per tonne for both deposits, mining recovery of 95%, external dilution of 22% at Timmins Deposit, 15% at Thunder Creek Deposit and 9% at 144 Gap Deposit, and a metallurgical recovery rate of 97.0%.
6.Tonnes information is rounded to the nearest thousand and gold ounces to the nearest one hundred. As a result, totals may not add exactly due to rounding.
7.The mineral reserve estimate was prepared under the supervision of, and verified by, Eric Lachapelle, Manager of Technical Services, LSG, who is a qualified person under NI 43-101.
To estimate the mineral reserves, the measured and indicated mineral resources were isolated from inferred mineral resources and assessments were made of the geometry and continuity of each of the mineralized zones. Geotechnical evaluations were taken into account in the assessment and appropriate mining methods and stope sizes were assigned. Individual stope designs (wireframes) were then created in three dimensions. These stope wireframes were queried against the block models to determine the in-situ mineral resource. This allowed for fair inclusion of internal dilution from both low grade and barren material. Additional factors were assigned for external dilution (with or without grade) depending on the specific mining method and geometry of each stoping unit being evaluated. Finally, a recovery factor was assigned to the overall mineral reserves to allow for in-stope and mining process losses. Stope cut-off grades were estimated to determine which stopes to include in the mineral reserves. Detailed mine development layouts and construction activities were assigned to provide access to each of the stoping units. A detailed life of mine (“LOM”) development and production schedule was prepared to estimate the annual tonnes, average grade, and ounces mined to surface. Development, construction, and production costs were estimated and an economic assessment was made comparing the capital and operating expenses required for each area to the expected revenue stream to ensure economic viability.
1.5     Mineral Tenure, Surface Rights, and Royalties
The TWM as defined by the current Timmins West Mine Closure Plan (the “Closure Plan”) as of the date of this Report is approximately 1548 hectares (“ha”). The TWM is situated in the south-central portion of Bristol Township stretching southwestwards into the northwestern portion of Thorneloe Township and includes the Timmins, Thunder Creek, and 144 Gap Zone Deposits.
Through patented and leased land, LSG owns 100% of the surface and mining rights of the entire 1548 ha, subject to underlying royalties. The TWM currently consists of 5 leases and 18 patents with a combination of mining and surface rights collectively (Table 4.1).
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Over the history of the TWM multiple patents and mining claims have been acquired with several consolidated into leases to facilitate the mining process. Figure 4.3 shows the ownership of royalties relative to underlying agreements on the TWM as of the date of this Report.
1.6     Permits
All of the required provincial, federal and municipal permits, approvals and authorizations have been obtained (and amended from time to time) for the TWM to allow for operations and project development. Closure Plan amendments are ongoing relating to changes in the site’s infrastructure. All permits are in good standing.
1.7    Environmental Considerations
LSG has implemented a comprehensive environmental management plan to regularly and systematically monitor surface and groundwater quality, air quality, stream sediment geochemistry, waste rock and tailings geochemistry (ARD monitoring and mitigation), waste disposal practices, reagent handling and storage and reclamation and reforestation progress. As of January 2021, the operations have attained a level A as per the Mining Association of Canada’s Towards Sustainable Mining program.
1.8     Mining Operations
The TWM is accessed by a production shaft and portal/ramp system from the surface. Access ramps are driven from the main ramp system to establish sublevels on 20m vertical intervals at the Timmins Deposit and 35m intervals at the Thunder Creek and 144 Gap Deposit. Primary and secondary development headings are generally mined 5m wide by 5m high. Primary ramps are typically driven at a maximum incline or decline of 15 percent. Mining is currently being conducted by longhole stoping methods.
Ore is hoisted to the surface via the shaft and by truck to the ore stockpile, where it is loaded into over-the-road trucks for haulage to the Bell Creek mill, located approximately 56km from the TWM. Development waste that is not used for backfill underground is hauled to the surface waste rock facility.
Tailings from the Bell Creek Mill are back-hauled to the TWM where they are combined with cement and water to make a structural fill for use as backfill underground. A paste backfill plant located on the surface produces paste backfill for delivery via piping into the mine for placement in the mined out stopes.
Mining at the TWM was initiated in the second half of 2009. From 2009 to June 30th, 2021 9.38 million tonnes at an average grade of 3.7 g/t gold (1.09 million ounces) have been mined.
1.9     Processing
All ore mined from the TWM is processed at the Company’s Bell Creek Mill. The Bell Creek Mill is located approximately 6.5 km north of Highway 101 in South Porcupine, Ontario and approximately 56 km from the TWM. The Bell Creek Mill is a conventional gold processing plant utilizing cyanidation with gravity and
June 30, 2021        16



carbon-in-pulp (“CIP”) recovery. Current mill throughput is approximately 4,500 tpd (max capacity of 5,359 tpd) and recovery is approximately 97.2% for the TWM ore.
1.10     Capital and Operating Costs
Several years of operating experience provides a solid basis for estimating the capital and operating costs for the TWM. Each year the operating costs are budgeted based on actual costs and by using first principles to help determine mining costs. Sustaining capital costs are also reviewed on an annual basis and are determined based on equipment rebuild and purchase requirements, as well as other sustaining requirements based on infrastructure upkeep. The capital cost review includes all capital required for surface and underground facilities at TWM and relevant capital costs at the Bell Creek Mill facility.
1.11    Conclusions and Recommendations
Proven and probable mineral reserves for the TWM are supported by the actual operating results and the LOM financial model. The costs and productivities used to estimate the mineral reserves and formulate the LOM plan are based on the performance metrics of the operation as experienced between 2011 and 2021. These factors are considered low risk to the mineral reserve estimate. In addition, social, political, and environmental factors appropriately managed are all considered to be low risk factors for the continued operation of TWM and the mineral reserves.
Recommendations for development of the mineral resource are:
1.Implement definition drilling to refine shapes and grades for existing mineral resources and exploration drilling to expand the overall mineral resource base. Review these programs annually.
2.Complete the suggested surface and underground diamond drilling programs for 2022:
Underground drilling: approximately 21,300m of combined operating, capital and exploration drilling.
Of this total, approximately 11,700m are for operations and capital drilling to support the 2022 Mine Plan and infill drilling to support future mining. The remaining 9,600m are planned for near mine exploration, primarily testing the down plunge extents of both the Timmins Deposit and the 144 Gap Deposit as well as targeting the South-West Zone.
Surface exploration: 8,000m drilled to test regional targets along the main 144 Trend and along the HWY 144 Offset trend.
June 30, 2021        17



2Introduction
This Technical Report has been prepared by LSG for and on behalf of Pan American in compliance with the disclosure requirements of National Instrument 43-101 – Standards of Disclosure for Mineral Projects of the Canadian Securities Administrators (“NI 43-101”), to disclose current information about the TWM.
The effective date of this Technical Report is June 30, 2021. No new material information has become available between this date and the signature date given on the certificate of the qualified persons (“Qualified Persons” or “QPs”).
Pan American is a silver mining and exploration company listed on the Toronto and NASDAQ stock exchanges under the ticker “PAAS”.
This Technical Report has been prepared under the supervision of Al Mainville (P. Geo.) and Eric Lachapelle (P. Eng.) on behalf of LSG and complies with the requirements of NI 43-101. These individuals are employees of LSG and are QPs as defined by NI 43-101.
The purpose of this Report is to provide a summary of the TWM mineral resources (comprised of the Timmins Deposit, Thunder Creek Deposit, and 144 Gap Deposit), current mine infrastructure, and estimated mine operating costs to substantiate an updated mineral reserve and mineral resource statement for TWM. The work completed to support the updated mineral reserve and mineral resource statement has been conducted on the measured and indicated mineral resources contained in the Timmins Deposit, Thunder Creek Deposit, and 144 Gap Deposit with mining parameters, metallurgical recovery, and cost estimation based on operating experience at TWM and the Bell Creek mill.
Historical work in the TWM area was reviewed by referencing assessment reports filed at the Ministry of Northern Development and Mines’ office at the Ontario Government Complex, Highway 101 East, Timmins (Porcupine), Ontario; and the online Assessment File Research Imaging. Option and legal agreements were reviewed at LSG’s exploration office.
2.1        List and Responsibilities of Qualified Persons    
This Technical Report has been prepared by Al Mainville (P. Geo), Eric Lachapelle (P. Eng.), and Dave Felsher (P. Eng.) on behalf of LSG and complies with the requirements of NI 43‐101. These individuals are employees of LSG and are QPs as defined by NI 43‐101. They are intimately aware of the work going on at the TWM and have visited the TWM on numerous occasions both prior to and after the effective date of this Technical Report.
Mr. Mainville works full time at LSG’s Exploration office and core shack located at 1515 Government Rd South. in Timmins where he reviews and inspects exploration drilling, sampling, and sample security protocols, drill core and the core cutting and storage facilities, the geochemical laboratory performance on a regular (almost daily) basis. He is involved with regular meetings and reviews (weekly, monthly) of
June 30, 2021        18



operational mine plan, actual mine operation data, operating costs, reconciliation, mining parameters, interpretations of the veins and mineralized structures and the mineral resource estimation process. Mr. Mainville most recently visited and toured TWM on January 17, 2022 and inspected operational and general business performance.
Mr. Lachapelle works full time at LSG. He is involved with regular meetings and reviews (weekly, monthly) of operational mine plan, actual mine operation data, operating costs, reconciliation, mining parameters, budgeting plans and reviews the mineral reserves estimation process. Mr. Lachapelle most recently visited and toured the Timmins West Mine on January 17th, 2022 and the Bell Creek Mill on December 21, 2021 and inspected operational and general business performance.
Mr. Felsher most recently visited TWM on December 8, 2021 and the Bell Creek Mill on February 9, 2022 and inspected operational and general business performance.
Al Mainville (P. Geo), Geology Manager for LSG is responsible for Sections 7, 8, 9, 10, 11, 12, 14, and 23 and parts of Sections 1, 2, 3, 4, 5, 6, 20, 25, 26, and 27.
Eric Lachapelle (P. Eng.), Manager, Technical Services for LSG is responsible for Sections 15, 16, 22 and 23 and parts of Sections 1, 2, 3, 4, 5, 6, 13, 17, 18, 19, 20, 21, 24, 25, 26, and 27.
Dave Felsher (P. Eng.), Mill Manager for LSG is responsible for Sections 13, and 17 and parts of Sections 1, 2, 18, 19, and 21.
3 Reliance on Other Experts
The Qualified Persons responsible for this Technical Report have relied on the following internal expert within the organization for input to certain sections of this report for which they do not have specific expertise and have taken appropriate steps, in their professional judgement, to ensure that the work, information, or advice that they have relied upon is sound:
Marcel Cardinal, Director of Environmental and Sustainability at LSG leads the environmental, permitting and sustainability matters at the TWM and has contributed to Sections 1, 4 and 20 by providing information and opinions relating to environmental, permitting and community or social impact details that are described in those sections. The information and opinions are believed to be current, accurate and complete as of the effective date of this Technical Report.
4Property Description and Location
4.1    Location, Description, Issuer’s Interest, Mineral Tenure, and Surface Rights
Timmins West Property
The Property is located 14km southwest of the City of Timmins, and 544km north-northwest of Toronto, Ontario, Canada. The Property consists of a combination of crown patents and 21-year term leases
June 30, 2021        19



containing mining rights, surface rights or both, and cell or boundary cell claims containing mining rights for a combined area of approximately 14,010 ha. Although the Property is centered on Bristol and Thorneloe townships, the Property stretches eastward into Ogden and Price townships, and as far west as Carscallen, Denton, and Keefer townships (Figure 4.1).

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Figure 4.1 – Regional Timmins West Property Location
figure41.jpg
Timmins West Mine
The TWM as defined by the current TWM Closure Plan as of the date of this Report is approximately 1548 ha. Through patented and leased land, LSG owns 100% of the surface and mining rights of the entire 1548 ha, subject to underlying royalties. The TWM is situated in the south-central portion of Bristol Township stretching southwestwards into the northwestern portion of Thorneloe Township. Highway 101 west and highway 144 crosscut the TWM in a northeast/southwest and a north/south direction respectively providing excellent access to most portions of the Property (Figure 4.2).

June 30, 2021        21



Figure 4.2 – Timmins West Mine
image_2.jpg
The TWM currently consists of 5 leases and 18 patents with a combination of mining and surface rights collectively (Table 4.1).







June 30, 2021        22



Table 4.1 – Timmins West Mine Land Tenure
pg23image.jpg
The TWM headframe resides 19km southwest of the City of Timmins and 552km north northwest of Toronto, Ontario, Canada. The TWM headframe is situated within NTS 42-A-05 at UTM NAD83, Zone 17N, at approximately 458915E, 5359043N, on patent PAT-3439. The TWM site is accessed via highway 101 west, 1.3km east northeast of the highway 101 west and the highway 144 intersection. The TWM contains the Timmins Deposit, Thunder Creek Deposit, and the 144 Gap Zone Deposit as depicted in Figure 4.2.

June 30, 2021        23



4.2    Ownership History and Underlying Agreements
In May 2003, LSG and Holmer Gold Mines Limited (“Holmer”) entered into an option agreement (the “Holmer Agreement”) pursuant to which LSG was granted an option to earn a 50% interest in the Holmer property (the present Timmins Deposit property) by March 24, 2006.
This portion of the property consists of 11 Freehold Patents with surface and mining rights; Lease 109356 (formerly lease 106534 and 102611), a group of six Leasehold Patents with surface and mining rights; and Lease 107874 (formerly Lease 104075), a group of six Freehold Patents with mining rights, as well as six Leasehold Patents of surface rights for the same area.
LSG completed the requirements to earn 50% of the Holmer property in September 2004. On December 31, 2004, a business combination agreement between LSG, its wholly owned subsidiary LSG Holdings Corp. and Holmer came into effect, pursuant to which Holmer became a wholly owned subsidiary of LSG. A 1.5% Net Smelter Return (“NSR”) royalty is assigned to patent PAT-30031 (claim P4227) payable to Mr. Lorne Labrash. This royalty may be purchased for $1 million. The current mineralization model does not extend to PAT-30031.
LSG optioned a 60% interest in the Thunder Creek property from Band-Ore Resources Limited (“Band-Ore”) in November 2003 pursuant to an option agreement dated November 7, 2003 (the “Band-Ore Agreement”). Under the terms of the Band-Ore Agreement, LSG could earn a 60% interest in the Thunder Creek property by completing in excess of $1,705,000 in expenditures, $370,000 in cash payments and issuing 100,000 shares within a four-year period. In September 2006, Band-Ore and Sydney Resources Corporation merged to form a new company, West Timmins Mining Inc. (“WTM”). The rights and obligations of Band-Ore under the Band-Ore Agreement were assigned to and assumed by WTM. In May 2008, LSG informed WTM that the obligations to earn a 60% interest in the Thunder Creek property had been fulfilled. On November 6, 2009, LSG and WTM completed a business combination agreement resulting in WTM becoming a wholly owned subsidiary of LSG. On January 1, 2012, WTM was amalgamated into LSG, which now holds a 100% interest in the Thunder Creek property.
Brief summaries of the underlying agreements and royalties are stated below. Figure 4.3 illustrates the applicable royalties.
Mineral claims 4211037, 4211038, 4211039, and 4211040 were staked by LSG and have no underlying royalties, but, because the claims were within the area of influence outlined in the Band-Ore Agreement, they became subject to the agreement.
Claims 1189528, 1193477, 1203840, and 1217601 were staked by Band-Ore and are not subject to any underlying royalty agreements.

June 30, 2021        24



Mineral claims optioned originally from Mr. Jim Croxall were subject to a 2% NSR royalty. These claims were also subject to an advanced annual royalty payment of $5,000 until commercial production begins. LSG purchased 1% of the NSR in November 2010 in exchange for approximately $1,500,000 equivalent in LSG stock. The other 1% NSR was purchased from Jim Croxall by Premier Royalty Corp. in 2012. Sandstorm Gold Ltd. has since acquired Premier Royalty Corp as of October 2013. The surface rights for leased claims P495307, P495308, and P495309 (mineral rights only lease number 108773) have been acquired by LSG (surface lease number 108774), with both leases to remain in good standing until June 30, 2032. The claim with number 1189886 was optioned from Mr. Bruce Durham and has a 3.0% NSR royalty attached.
Eight claims optioned from the late Mr. Matt Kangas and Mr. Jim Croxall (1177807, 1177808, 1177809, 1177811, 1181410, 1181413, 1198803, and 1198804) are subject to a 2% NSR royalty of which 1% may be purchased for $1,000,000. An advanced royalty payment of $5,000 (indexed for inflation) is paid annually to the estate of Mr. Kangas and to Mr. Croxall in equal portions. After the signing of the original agreement, mineral claims came open and were re‐staked: claim 1181410 was formerly claim 1177813, claim 1181413 was formerly claim 1177810, claim 1198803 was formerly claim 1177812, and claim 1198804 was formerly claim 1177806.
Four claims (1189593, 1181995, 1189580, and 1189592) were purchased by Bruce Durham, Robert Duess, Ken Krug, and Henry Hutteri from Ray Meikle and Steve Anderson and then optioned to Band‐Ore. A 3% NSR royalty is payable, 1.5% to Durham et al., and 1.5% to Meikle and Anderson. There is no buy down of this royalty.
Claims 1189552 and 1189553 were optioned from Mr. Bruce Durham and partners (“Durham”) and has a 3.0% NSR royalty attached.
Claims 923646 and 923647 are subject to a 3% NSR, payable to Royal Gold Inc. and Torogold Resources Inc.
As of March 1 2012, Franco‐Nevada Corporation (“Franco-Nevada”) entered into an agreement with LSG through which Franco‐Nevada paid LSG US$35M for a 2.25% NSR royalty on the sale of minerals from the TWM.
The surface and mining rights for claims P26392, P26393, P26394, P26395, P26396, P26397, P26398, P26399, P26400, P26403, known as the Meunier 144 Property, are currently held by LSG and Adventure Gold Inc. (each with a 50% interest). There is a 2.5% NSR royalty payable to David Meunier, with an option to purchase 1%.
All patents, leases and mining claims are in good standing as of the effective date of this Report.
In addition to the royalties, the properties comprising TWM were temporarily pledged as security against the outstanding debt obligations of LSG under an agreement with Sprott Resource Lending Partnership for a
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credit facility totaling up to $70M. The obligations for this senior secured facility, first arranged in the summer of 2012 to help finance the expansion of the Bell Creek mill, were met in full with the final payment made by LSG in May 2015.
A land survey was completed in late 2015 in order to bring a boundary of 56 mining claims to lease (Figure 4.2). The lease was issued by the Ministry of Northern Development and Mines (“MNDM”) in June 2016 (Mining Lease No. 109670) for surface and mining rights.
Over the history of the TWM multiple patents and mining claims have been acquired with several consolidated into leases to facilitate the mining process. Based on the TWM as of the date of this Report, Figure 4.3 represents the ownership of royalties related to underlying agreements.
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Figure 4.3: Timmins West Mine Royalties Map
image_4.jpg
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4.3    Past Mining, Environmental Liabilities and Permitting
Prior to the commencement of mining operations at TWM in 2009, there were no large-scale mining conducted on the property.
As outlined in Table 6.1 below, several historic, shallow pits, trenches and prospecting shafts were done on the property. Most of these known historic excavations have been reclaimed and filled in with only a few, more remote shallow shafts left to do.
In the opinion of the authors, there are no significant environmental liabilities associated with past mining activities.
All current infrastructure and liabilities are listed on Figure 18.1 of this document.
4.4    Significant Factors and Risks
To the best of the author’s knowledge there is no significant factor or risk that may affect access, title, or the right or ability to perform work on the Property.
4.5    Consultation
Consultation is being undertaken with regulatory agencies, the general public, the Métis Nation of Ontario, Wabun Tribal Council who represent many indigenous communities as well as the Indigenous communities of Flying Post First Nation and Mattagami First Nation. Consultation provides an opportunity to identify and address the impacts of LSG’s activities on external stakeholders and to expedite the authorization process with the government agencies.
The consultations have been held in order to comply with LSG corporate policy, the provincial requirements of Ontario Regulation 240/00 and the Environmental Bill of Rights.
An Impact and Benefits Agreement (“IBA”) was finalized in 2011 with an amendment in 2019. The IBA outlines how the company and the Indigenous communities will work together in the following areas: education/training of Indigenous community members, employment, business and contracting opportunities, financial considerations and environmental provisions.
5Accessibility, Climate, Local Resources, Infrastructure, and Physiography
5.1    Physiography, Vegetation, and Climate
The TWM area and the City of Timmins experience a continental climate with an average mean temperature range of -16.8°C (January) to +17.5°C (July) and an annual precipitation of approximately 835 mm. Table 5.1 summarizes the average temperatures and precipitation values at the Timmins Victor M. Power Airport for the 30-year period between 1981 and 2010.
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Table 5.1: Average Temperature, Precipitation and Snowfall Depths for the Timmins Area

Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sep
Oct
Nov
Dec
Year
Temperature
Daily Average (°C)

‐16.8

‐14.0

‐7.4

1.8

9.6

14.9

17.5

16.0

11.1

4.4

‐3.4

‐11.9

1.8
Daily Max. (C)
‐10.6
‐7.2
‐0.6
8.0
16.6
21.9
24.2
22.5
17.1
9.0
0.6
‐6.9
7.9
Daily Min. (C)
‐23.0
‐20.7
‐14.2
‐4.5
2.5
7.8
10.7
9.4
5.2
‐0.3
‐7.4
‐17.0
‐4.3
Precipitation
Rainfall (mm)


3.2


1.7


14.1


30.1


62.3


83.2


90.9


81.6


83.7


68.1


30.9


8.5


558.3
Snowfall (cm)
58
46
45
27
5
0
0
0
1
15
49
65
311
Precipitation (mm)
51.8
41.3
54.5
56.2
67.4
83.4
90.9
81.6
84.7
82.5
78.9
64.5
834.6
Snow Depth (cm)
53
64
54
18
1
0
0
0
0
0
7
28
19
Wind
Speed (km/h)

12.3

12.3

13.4

13.5

12.4

11.5

10.3

9.8

11.2

12.3

12.5

11.8
Data from Environment Canada: http://climate.weather.gc.ca/climate_normals/results_1981_2010_e.html?stnID=4180&autofwd=1

Local lakes typically will begin to freeze over in mid‐November, and breakup typically takes place in late April to early May. Work can be carried out on the Property year‐round.
The Property generally exhibits low to moderate relief. The elevation of Highway 101 as it traverses the Property varies from 308m above sea level in the east to 320m in the west. At the junction of Highways 144 and 101, the elevation is approximately 312m. The highest point on the Property is 353m and is located at UTM co-ordinate 458,879.9m east and 5,357,321.5m north. The elevation of the Tatachikapika River (historically known as the Lost and/or Redsucker River) ranges from 300m to 292m as it flows east-northeast to the northerly flowing Mattagami River. Outcrop exposure varies between 5 and 15%. Figure 5.1 illustrates the claim boundary of the Pproperty relative to the City of Timmins and draped over a Landsat panchromatic image of the area.
The continental climate and the location on the Canadian Shield give rise to a plant hardiness zone 2a which supports the following boreal forest tree species and a timber, pulp and paper industry. In no particular order of significance local trees species include: American Mountain-Ash (Sorbus Americana), Balsam Fir (Abies Balsamea), Black Spruce (Pincea Mariana), Eastern White Cedar (Thuja Occidentalis), Eastern White Pine (Pinus Strobus), Jack Pine (Pinus Banksiana), Pin Cherry (Prunus Pensylvanica), Red Pine (Pinus Resinosa), Tamarack (Larix Laricina), Trembling Aspen (Populus Tremuloides), White Birch (Betula Papyrifera) and White Spruce (Pincea Glauca).
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Hawley, J.E. (1926) reports that part of Ogden, Bristol and Carscallen Townships were swept by several forest fires dating back to 1911. Darling et al. (2007) state the Provincial Forest Resources Inventory stand numbers provided by TEMBEC indicated that most of the forestry related disturbance to the Property occurred approximately 25 years ago, and that the forest communities are composed of poplar, jack pine, white birch, black spruce, and white spruce.
Figure 5.1: Physiography
figure51.jpg

5.2    Accessibility, Local Resources, Population Centres, and Transport
The City of Timmins, with an area of approximately 2,979 km2 and a population of 43,165 (2011 Census), has an economic base dominated by the mining and logging industries. The area is serviced from Toronto via Highways 400/69 to Sudbury and Highway 144 from Sudbury to Timmins, or Highway 400/11 to Matheson and Highway 101 westward to Timmins. The Timmins Victor M. Power Airport has scheduled service provided by Air Canada Jazz, Bearskin Airlines, and Air Creebec. Porter Airways also provides air service between Timmins and the Toronto Billy Bishop Airport. The Timmins and District Hospital is a major regional health care center for northeastern Ontario.
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The Property is accessible by Highways 101 and 144 and is in close proximity to the main hydro grid transmission line. An experienced mining labour pool is accessible in the Timmins area.
To the best of the authors’ knowledge, there are sufficient surface rights, a willing and skilled labour pool, and readily available infrastructure to carry on a mining operation.
5.3    Surface Rights
The mine workings and infrastructure, water storage facilities, waste disposal areas, effluent management and treatment facilities, roads, and power lines are located within the boundaries of the mining leases and patented claims illustrated in Figure 4.2 for which the surface rights are controlled by LSG.
The authors believe that the Property has sufficient surface rights to carry out mining operations.
5.4    Power and Water
All‐weather road access and electrical power transmission lines are established and operational to the TWM. Water for mining operations is supplied from the underground mine dewatering systems and wells located on the Property, and is adequate for the existing and planned future requirements of the mine.
5.5    Infrastructure
Material from TWM is processed at the Bell Creek Mill. All tailings storage areas are located on that site.
At the effective date of this Report, the surface and underground infrastructure at the TWM included the following:
portable trailers that serve as administrative buildings and dry facility with office space, including a conference room, and infirmary;
a main garage, a millwright shop and an electrical shop;
a warehouse;
water treatment and supply facilities;
a hoist room, a headframe, and a 710m deep shaft;
a portal, ramp, paste backfill plant, ventilation raises and a series of ramp‐connected underground sublevels;
a fleet of underground mobile mine equipment; and
site power supply provided by a 115 kV power line from Hydro One.
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6History
LSG acquired the Property by fulfilling the earn-in requirements as set out in option agreements with Holmer and WTM and by completing business combination agreements with those companies. Holmer became a wholly-owned subsidiary of LSG in December 2004, and WTM became a wholly-owned subsidiary in November 2009.
The discovery of gold in Bristol Township on the McAuley-Brydge property (currently LSG’s TWM) occurred in 1911. At the time, only a few claims were staked within the Bristol Township area
Fires in 1911 swept across large parts of Carscallen, Bristol and Ogden Townships. The surface infrastructure at the Hollinger, Dome, West Dome, Vipond, Standard, Preston, East Dome, and North Dome mines were completely destroyed. The town of South Porcupine, parts of Pottsville and the north part of Porcupine were also destroyed (Burrows, A.G., 1915, Hawley, J.E., 1926).
The following table (Table 6.1) highlights the chronology of significant exploration, surveys, and reports carried out over and surrounding the TWM area.
Table 6.1: Chronology of Events for the Timmins West Mine Area
DateDescription
1911 – 1914Gold was discovered on the McAuley-Brydge property and two shafts were sunk; the deepest was 12 metres deep (Timmins Mine original surface showing - Main Zone and Hanging-wall Veins).
1938 – 1944Orpit Mines Limited acquired the claims and completed 7,620m of diamond drilling.
1941Rusk Porcupine Mines excavated several pits and trenches across a 150m to 200m area of the Thunder Creek portion of the property. The gold discovery pit was 1.2m x 1.2m and returned values of $24.85 over 121.9 cm, $15.05 over 76.2 cm and $8.41 over 91.4 cm (T-File 542). The 1941 London Fix average price for gold was $33.85 (US) an ounce. Eighteen diamond drill holes totaling 1,981m were also completed.
1945Piccadilly Porcupine Mines acquired the property and completed 4,983m of diamond drilling.
1946Gold is reported from a diamond drill hole to the northwest of the TWM on the O’Shea claim group (now referred to as the Meunier-144 property).
1953Standwell Oil and Gas Ltd. acquired the property.
1958Hollinger Mines Ltd. completed seven diamond drill holes in the northern portion of the Thunder Creek property area. No assays were reported.
1959Paul Meredith purchased the “Standwell Oil” property.
1963The property is transferred to Holmer.
1964United Buffadison Mines Limited optioned the property from Holmer; constructed a road from Highway 101 to the Main Showing, and completed ten boreholes (2,116m). United Buffadison Mines Limited interpreted the gold mineralization to be associated with stacked north dipping en-echelon quartz veins. The property was returned to Holmer.
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1968 – 1981Holmer diamond drilled 45 boreholes totaling 10,512m. The geological interpretation of the day indicated two mineralized zones: the “Main” Zone (also referred to as the “Western Zone”) and the “Shaft” Zone (also referred to as the “Eastern Zone”). A historically significant, but non 43-101 compliant “Probable Mineral Reserve” of 720,000 tons grading 0.124 oz. per ton gold (653,000 tonnes grading 4.25 grams per tonne gold) was estimated. Additional surface exploration included ground geophysical surveys (magnetometer and VLF) and limited diamond drilling.
1980Falconbridge Nickel Mines Ltd. carried out metallurgical analysis of samples provided by Jim Croxall for the Thunder Creek property.
1981Preussag Canada Limited completed geophysical surveys in Bristol and Thorneloe Townships including magnetometer, VLF-EM, HLEM and Induced Polarization (“IP”). Ten diamond drill holes (613.9m) were bored. Adjacent holes, 64m apart, intersected 2.57 g/t over 2.43m, and 4.46 g/t gold over 4.6m in an area of the Rusk Showing.
1984Noranda Exploration Company Limited (“N.P.L.”), (“Norex”) optioned the Holmer property and completed a “regional” airborne magnetic and electromagnetic survey, follow-up ground geophysics, and drilled four boreholes totaling 1,465m. Norex interpreted a historically significant, non 43-101 compliant, mineral resource estimate of 785,000 tonnes grading 2.4 g/t gold. This included a core of better grade mineralized material estimated to be 159,000 tonnes grading 4.46 g/t gold. The property was returned to Holmer.
1984 – 1985N.P.L. also completed geological mapping, humus geochemical sampling, and outcrop mechanical stripping and trenching in the Thunder Creek property area. The best assays returned in the trenching were 2.86 g/t gold and 5.54 g/t gold. Nine overburden, reverse circulation drilling and three diamond drill holes (332.3 metres) were also completed with no assay results reported.
1987Chevron Minerals Ltd. optioned the Holmer property and completed line cutting, ground geophysics (magnetic, VLF, IP surveys), and geological mapping. A large area of the Main Zone and Hanging-wall Veins was stripped, channel sampled and mapped. Twenty-nine (29) diamond drill holes (totaling 6,115m) were completed, testing the mineralization to a vertical depth of 360m. The property was subsequently returned to Holmer.
1987Highwood Resources Ltd. optioned a portion of the Thunder Creek property from J. Croxall. Four diamond drill holes (400m) testing geophysical targets were bored. No assay results are reported.
1994N.P.L. carried-out line cutting, IP and ground magnetometer surveys in the Thunder Creek and Highway-144 property areas. A single diamond drill hole (totaling 302m) was completed with no assay results reported.
1995Hemlo Gold Mines Inc. funded work carried out by Norex on the Thunder Creek and Highway-144 project areas. Surveys include line cutting, magnetometer and IP. Seven diamond drill holes (95-2 to 95-8; 1,581m) were drilled with no significant assays reported.
1996Band-Ore makes gold discoveries on their Thorneloe property and renewed gold exploration in Bristol and Thorneloe Townships.
1996 – 1997Holmer carried out an exploration program which included ground geophysics (VLF, magnetometer, and IP), humus sampling, geological mapping and rock sampling. A total of 66 drill holes (25,380m) were completed, 54 of which were directed to expand “resources” in the “Main” Zone area; 12 holes were drilled to test geophysical anomalies elsewhere on the property.
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1997Battle Mountain Canada Limited continued to explore the Thunder Creek – Mahoney Creek area. Fourteen diamond drill holes (3,547m) tested stratigraphy and geophysical targets. Drill hole MC 97-20 returned an assay value of 5.9 g/t gold over 1m. Hole MC 97-26 intersected a few anomalies, including 1.28 g/t gold over 2m. The property was returned to Band-Ore.
1998Holmer drilled 22 boreholes (3,923m) to test the continuity of mineralization at shallow depths.
1999St. Andrew Goldfields Ltd. (“St. Andrew”) drilled ten boreholes (1,341m) exploring the potential for an open pit deposit.
2002Holmer completed a closely spaced (25m centers) 22 hole diamond drill program totaling 5,220m. A mineral resource estimate was produced which was audited and revisited by Watts, Griffis and McOuat as 422,000 tonnes grading 13.68 g/t gold in the indicated category and 270,000 tonnes grading 9.0 g/t gold in the inferred category.
2003LSG entered into an option agreement with Holmer that allows LSG to earn 50% of the Holmer property by May 26, 2006. In November 2003 LSG enters into an agreement with Band-Ore to earn a 60% interest in the Thunder Creek property.
2003Fugro completed an airborne magnetic survey (237km) over the Timmins Mine claims for LSG (Soltanzadeh & Griffith, 2003).
2004LSG completed outcrop stripping, geological mapping, and grab/channel sampling (103 samples collected) on the Thunder Creek property (Hocking and Marsden, 2004).
2004LSG completed Mobile-Metal-Ion (”MMI”) soil geochemical survey (830 samples collected) on the Thunder Creek property (Hocking and Marsden, 2004).
2004In September, LSG released an updated mineral resource estimate (see Item 6.3) and thereby completed its earn-in option agreement with Holmer. In December, LSG acquired all outstanding shares of Holmer, giving it 100% ownership of the property, then referred to as the Timmins Gold Project (currently hosting the “Timmins Deposit”).
2005Abitibi Geophysics completed airborne magnetic (60km) and IP (45km) geophysical surveys over the Thorneloe, Denton and Carscallen Townships for the Porcupine Joint Venture. A few diamond drill holes containing values between 0.5-3.0 g/t over narrow intervals were completed.
2006LSG completed outcrop stripping, geological mapping, and grab/channel sampling (135 samples collected) in three target areas on the Thunder Creek property (J. Samson, 2008).
2006In May, LSG initiated the application permit process for advanced underground exploration programs. In December, LSG released another updated mineral resource estimate for the Timmins Gold Project (see Item 6.3).
2007In April 2007, LSG received government approval of the closure plan application and receipt of related permits required to proceed with the program. In August, LSG reported mineral reserves and a positive pre-feasibility study for the Timmins West Project (formerly named the “Timmins Gold Project”). In December, LSG also completed the requirements to vest a 60% interest in the Thunder Creek property from WTM.
2008 - 2013Lithogeochemical and stable isotope study (with emphasis on correlation to gold mineralization) initiated in Bristol and Thorneloe Townships as part of M.Sc. thesis (Z. Stevenson and Dr. E.H. van Hees, Wayne State University, 2013) on behalf of LSG.
2009Adventure Gold Inc. completed three shallow drill holes (1,229m) on the Meunier-144 property. No significant results were reported.
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2009
LSG completed geological mapping over a 5km2 area surrounding the Rusk surface showing on the Thunder Creek property (Internal memorandum and maps; Camier, 2009).
2009In November, LSG acquired the outstanding shares of WTM, thereby acquiring 100% of the Thunder Creek property. This business combination triggered an update to the mineral resource and mineral reserve for the Timmins Deposit. The exploration emphasis of the Thunder Creek project changed from anomaly testing to systematic definition drilling.
2010In-depth regional compilation (including analysis and interpretation of available government and private geophysical surveys) for project generation and targeting initiatives completed by consultants on behalf of LSG (Internal memorandum and catalog of occurrences; L. Reed and D. Power, June 2010).
2010Abitibi Geophysics completed resistivity/pole-dipole IP (45 km), and ground magnetic (82 km) surveys over the Thunder Creek area for LSG as part of the Tailings Site condemnation program.
2010JVX Geophysics completed 3-D downhole spectral IP survey in 9 drill holes on the Timmins Mine and Thunder Creek properties for LSG (Internal report, 2010).
2010LSG and RT Minerals Corp. entered into an option agreement with Adventure Gold Inc. for each to earn-in 25% interest in the Meunier-144 property. A “deep drilling exploration program” targeting the extension at depth of the Timmins Deposit was completed (4,038m). Mineralization was weak and most significant results included 1.46 g/t gold over 1.60m, 2.26 g/t gold over 0.60m, and 1.34 g/t gold over 1.00m (see Item 9). Through some business arrangements in 2013, LSG now has a 50% vested interest in the property (see Item 4). LSG also has an option to increase its interest to 60% by completing a Preliminary Economic Assessment (“PEA”).
2011In January, commercial production was declared for the Timmins Deposit. In November, LSG released an initial mineral resource estimate for the Thunder Creek Deposit.
2012In January, commercial production was declared for the Thunder Creek Deposit. Subsequently, the Timmins and Thunder Creek Deposits were combined into a single operation called the TWM. In March, LSG filed an updated mineral resource estimate for the Timmins Deposit, including a PEA for the TWM. In May, LSG released a Pre-feasibility Study and Mineral Reserves (see Item 6.3).
2012JVX Geophysics completed Clarity3D DSIP/Resistivity survey in 6 drill holes on the Thunder Creek and Highway-144 properties for LSG (Internal report, 2012).
2013In March, LSG reported updated mineral reserve and mineral resource estimates for the TWM (see Item 6.3).
2013Updated compilation, re-processing, and interpretation of regional and property-scale geophysical data completed by consultant on behalf of LSG (Internal memorandum; L. Reed, 2013).
2014In March, LSG reported updated mineral reserve and mineral resource estimates for the Timmins West Mine (see Item 6.3).
2014LSG announced the discovery of the 144 Gap Deposit with the intersection of wide, high-grade gold mineralization (HWY-14-48: 5.37 g/t over 46.0m) confirming anomalous results from earlier (2012) diamond drilling at the Highway-144 property (Press Release dated October 07, 2014).
2015LSG reported significant expansion of the 144 Gap Deposit through continued surface diamond drilling. With the completion of an underground exploration drift driven to the southwest from the Thunder Creek Deposit, the focus of exploration efforts at the Highway-144 property was changed to systematic definition drilling of the new 144 Gap Deposit.
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2016LSG announced an initial mineral resource using a 2.6 g/t cut-off grade of 301,700 ounces in indicated category (1,734,000 tonnes at average grade of 5.41 g/t) and 319,200 ounces in inferred category (1,914,000 tonnes at average grade of 5.19 g/t) at the 144 Gap Deposit (Press Release dated February 08, 2016).
2016In March, LSG reported updated mineral resource and mineral reserve estimates for the TWM (see Item 6.3).
2016
Tahoe Resources Inc. (“Tahoe”) acquired LSG in April, with LSG dba Tahoe Canada becoming a wholly-owned subsidiary of Tahoe.
2019Pan American acquired Tahoe in February, with LSG becoming a wholly-owned subsidiary of Pan American.
6.1    Historical Resource Estimates
6.1.1 Historically Significant Non‐Compliant NI 43‐101 Resource Estimates
The following mineralization estimates were not reported in accordance with NI 43-101 nor estimated by a QP, but are considered historically significant in keeping exploration interest active and continuing to entice companies to explore, better define, and outline the gold bearing system at TWM. A QP has not done sufficient work to classify these historical estimates as current mineral resources or mineral reserves. These estimates are not considered to be current, and are quoted from the documents referenced.
1946:The earliest record found to attempt a mineralization estimate is stated in Ontario Department of Mines, Mineral Resource Circular No. 13, p. 50, which references Survey of mines 1946, p 152 and describes the Orpit property: “Results of drill holes 32, 41, 42, 45, and 46 indicated a zone of 200 feet in length, 50 feet in width, which averaged 0.16 ounces of gold per ton. Indicated mineral reserves were estimated at 300,000 tons between a depth of 400 feet and 800 feet.”
1968-1981:Holmer estimated a “Probable Mineral Reserve” of 720,000 tons at a grade of 0.124 oz. per ton gold (653,000 tonnes at 4.25 g/t gold) (WGM, 2004).
1984:Norex estimated a mineral resource of 785,000 tonnes at a grade of 2.4 g/t gold. This includes a core of better grade mineralized material estimated to be 159,000 tonnes at 4.46 g/t gold (WGM, 2004).

6.1.2 NI 43‐101 Compliant Mineral Reserve and Mineral Resource Estimates
In 2002 a mineral resource estimate completed by Holmer and audited and revised by Watts, Griffis and McOuat Limited (“WGM”) included 422,000 with an average grade of 13.7 g/t classified as indicated and 207,000 tonnes at 9.0 g/t classified as inferred (WGM, 2004)
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In 2004 WGM audited a mineral resource estimate prepared by LSG. WGM revised the estimate by lowering the cap on high assays in the Footwall Zone and transferring some indicated resource blocks into the inferred category. The estimate used a 6.0 g/t gold cut-off, and a 50 g/t cap (except in the Footwall Zone where a 30 g/t gold cap was used). The estimate included an indicated resource of 1,369,000 tonnes at an average grade of 10.9 g/t gold (capped grade) or 16.5 g/t gold (uncapped grade), with an inferred resource of 200,000 tonnes at a grade of 8.7 g/t gold (capped grade) or 12.4 g/t gold (uncapped grade). Total contained ounces with a cut grade of 6.0 g/t gold in the inferred and indicated categories was estimated to be 538,000 ounces gold (WGM, 2004).
In November 2006 WGM audited an updated mineral resource estimate prepared by LSG. The audit validated the assay data, the construction of polygons, and the resulting tonnages and grade. The estimated indicated and inferred mineral resources for the TWM on October 31, 2006, are summarized in Table 6.2
Table 6.2: WGM polygonal Mineral Resource October 31 2006 for TWM
Classification / ZoneGrade Cut to 3.0 g/t GoldContained Gold (ounces)Uncut Grade
(g/t)
Top Cut Grade
(g/t)
TonnesGrade (g/t)
Indicated
Vein Zone346,0009.9110,00017.650
Footwall Zone1,185,0007.3277,1007.630
Ultramafic Zone1,737,0009.3517,60014.550
Total Indicated3,268,0008.6905,00012.3
Inferred
Vein Zone543,0005.799,1007.350
Footwall Zone340,0005.965,0006.350
Ultramafic Zone85,0003.910,6003.950
Total Inferred968,0005.5174,7005.8
In 2007, SRK Consulting Canada Inc. estimated the probable mineral reserve at 3,387,000 tonnes with an average grade of 7.6 g/t gold, for a content of 826,000 ounces of gold.
In August 2009 LSG and WTM updated a NI 43-101 Technical Report for TWM. The 2009 update is summarized in Table 6.3.
Table 6.3: LSG Updated Mineral Resource based on SRK Polygonal Resource and Stantec Mineral Reserve, August 2009 (Darling et al., 2009) for TWM
ClassificationGrade Cut to 3.0 g/t GoldContained Gold (ounces)
TonnesGrade (g/t)
Indicated Resource3,200,0008.6893,000
Inferred Resource890,0005.7165,000
Probable Mineral Reserve3,358,0007.5812,006
In November 2011, LSG completed the first mineral resource estimate for the Thunder Creek Deposit of the TWM. The associated mineral resource statement is summarized in Table 6.4.
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Table 6.4: LSG Initial Mineral Resource for the Thunder Creek Deposit (Crick et al., 2011)
DepositResource ClassificationGrade Cut to 2.0 g/t GoldContained Gold (ounces)
TonnesGrade (g/t)
Thunder CreekIndicated2,877,0005.6521,600
Inferred2,693,0005.9510,000
In February 2012, LSG released a PEA and updated mineral resource for the TWM, combining the Timmins and Thunder Creek Deposits as summarized in Table 6.5.
Table 6.5: LSG Updated Mineral Resource for Timmins West Mine (Crick et al., 2012A)
DepositResource ClassificationCapped GradeContained Gold (ounces)
TonnesGrade (g/t)
TimminsIndicated2,949,0006.3600,900
Inferred1,579,0005.5281,500
Thunder CreekIndicated2,877,0005.6521,600
Inferred2,693,0005.9510,000
Total Timmins West MineTotal Indicated5,826,0006.01,122,500
Total Inferred4,272,0005.8791,500
*Notes:
1.    The mineral resources were reported above a cut-off grade of 1.5 g/t gold for the Timmins Deposit, and 2.0 g/t gold for the Thunder Creek Deposit.
2.    Effective Date of October 28, 2011 for Thunder Creek Deposit, and January 31, 2012 for the Timmins Deposit.
In May 2012, a Pre-feasibility Study and mineral reserve statement were released. The mineral reserves were based on indicated mineral resources included in revised block models prepared by LSG and validated by SGS Geostat. The mineral resource and mineral reserve statement is summarized in Table 6.6.
Table 6.6: LSG Mineral Reserve and Indicated Mineral Resource for Timmins West Mine (Crick et al., 2012B)
DepositClassificationCapped GradeContained Gold (ounces)
TonnesGrade (g/t)
Timmins DepositProbable Mineral Reserve2,250,0005.6405,900
Thunder CreekProbable Mineral Reserve2,673,0004.9418,000
Total Timmins West MineTotal Probable Mineral Reserve4,922,0005.2823,800
Timmins DepositIndicated Mineral Resource2,124,0007.9541,700
Thunder CreekIndicated Mineral Resource2,053,0007.0463,000
Total Timmins West MineTotal Indicated Mineral Resource4,177,0007.51,004,700
*Notes:
1.    Mineral reserves and mineral resources were reported above a cut-off grade of 3.0 g/t gold.
2.    Effective Date of October 28, 2011 for Thunder Creek Deposit, and January 31, 2012 for the Timmins     Deposit.
3.    Indicated mineral resources are inclusive of mineral reserves.
4.    Numbers may not add up due to rounding.
June 30, 2021        38



In March 2013, LSG published another updated mineral resource and mineral reserve statement in connection with the filing of its 2012 Annual Information Form. The results are summarized in Table 6.7.
Table 6.7: LSG Mineral Reserve and Mineral Resource Timmins West Mine, at Year-End 2012 (AIF 2012; Press Release Dated March 18, 2013)
DepositClassificationCapped GradeContained Gold (ounces)
TonnesGrade (g/t)
Total Timmins West MineProbable Mineral Reserve4,811,0005.2798,000
Indicated Mineral Resource5,978,0005.51,061,000
Inferred Mineral Resource3,549,0005.4615,000
*Notes:
1.    Mineral reserves were reported above cut-off grade of 3.0 g/t gold.
2.    Mineral resources were reported above a cut-off grade of 1.5 g/t gold.
3.    Indicated mineral resources are inclusive of mineral reserves.
4.    Mineral reserves accounted for a depletion of 64,177 ounces in 2012.
In March 2014, LSG released an updated mineral resource and mineral reserve statement in conjunction with the filing of an updated NI 43-101 technical report for the TWM. The results are summarized in Table 6.8.
Table 6.8: Timmins West Mine Mineral Resource and Mineral Reserve Estimates, March 2014
DepositClassificationCapped GradeContained Gold (ounces)
TonnesGrade (g/t)
Timmins DepositProbable Reserve1,540,0004.6227,700
Indicated Resource1,893,0005.2314,200
Inferred Resource2,075,0005.7378,500
Thunder CreekProbable Reserve1,792,0004.6264,500
Indicated Resource2,471,0005.0400,500
Inferred Resource864,0005.0137,800
Total Timmins West MineProbable Reserve3,332,0004.6492,200
Indicated Resource4,364,0005.1714,600
Inferred Resource2,939,0005.5516,300
*Notes:
1.    CIM Definitions and Guidelines were followed when classifying the mineral resources.
3.    Capped gold values were used for grade estimation.
4.    The estimate includes low grade material which is not included in the mine plan.
5.    Mineral reserves were reported above a cut-off grade of 2.8 g/t gold.
6.    Mineral resources were reported above a cut-off grade of 1.5 g/t gold and include internal dilution to maintain zone continuity.
7.    Indicated mineral resources are inclusive of mineral reserves.
8.    Weighted average gold price was assumed to be US$1,000 per ounce (approx. CAD$1,150).
9.    Metallurgical recoveries are assumed to average 96%.

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In February 2016, LSG released an updated mineral resource and mineral reserve in conjunction with the filing of an updated NI 43-101 technical report for the TWM. The results are summarized in Table 6.9.
Table 6.9: Timmins West Mine Mineral Resource and Mineral Reserve Statements, February 2016
DepositClassificationCapped GradeContained Gold (ounces)
TonnesGrade (g/t)
Timmins DepositProbable Reserve1,397,0004.4195,500
Indicated Resource1,816,0005.1296,000
Inferred Resource606,0004.892,600
Thunder CreekProbable Reserve1,498,0004.1196,300
Indicated Resource2,225,0004.3305,700
Inferred Resource151,0003.617,500
144 GapIndicated Resource1,734,0005.4301,700
Inferred Resource1,914,0005.2319,200
Total Timmins West MineProbable Reserve2,895,0004.2391,800
Indicated Resource5,775,0004.9903,400
Inferred Resource2,671,0005.0429,300
*Notes:
1.    Numbers may not add up due to rounding.
2.    CIM Definitions and Guidelines were followed when classifying the mineral resource.
3.    Capped gold values were used for grade estimation.
4.    The estimate includes low grade material which is not included in the mine plan.
5.    Mineral reserves were reported above a cut-off grade of 2.3 g/t gold
6.    Mineral resources were reported above a cut-off grade of 1.5 g/t gold for Timmins and Thunder Creek Deposits     and 2.6 g/t gold for Highway – 144 Deposit and include internal dilution to maintain zone continuity.
7.    Indicated resources were inclusive of mineral reserves.
8.    Mineral reserves were based on a long-term gold price of US$1,000 per ounce and an exchange rate of 0.80     $US/$CAD.
9.    Metallurgical recoveries were assumed to average 97%.
On January 1, 2017, LSG released an updated mineral resource and mineral reserve statement in conjunction with the filing of an updated NI 43-101 technical report for the TWM. The results are summarized in Table 6.10.
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Table 6.10 Timmins West Mineral Resource and Mineral Reserve Statement, January 2017
Indicated Mineral Resources
DepositTonnes (M)Gold (g/t)Gold (koz)
Timmins1.34.8200
Thunder Creek1.33.8163
144 Gap5.33.9661
Total Indicated7.941,023
Inferred Mineral Resources
DepositTonnes (M)Gold (g/t)Gold (koz)
Timmins0.54.783
Thunder Creek0.1417
144 Gap0.73.780
Total Indicated1.34.2179
Probable Mineral Reserves
DepositTonnes (M)Gold (g/t)Gold (koz)
Timmins1.23.9145
Thunder Creek0.83.488
144 Gap---
Total Indicated24.2233
1.
The mineral resource and mineral reserve statement is based on an estimate dated February 29, 2016
2.
Mineral resources and mineral reserves as at January 1, 2017 were calculated by subtracting June through October 2016 mine depletion volumes and November through December 2016 forecasted production based on an updated mineral resource estimate effective June 1, 2016
3.
Mineral resources were reported using a lower cut-off grade of 1.5 g/t gold
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4.
Mineral reserves were reported using a lower cut-off grade of 2.0 g/t gold and a gold price of $1250/oz.
5.
Mineral resources were inclusive of mineral reserves.

In May 2017, the mineral resource for the TWM was updated for the previous NI 43-101 technical report. The mineral resource was depleted for mining up to the effective date of May 15, 2017.
Table 6.11 details the mineral resource and Table 6.12 the mineral reserve statements for this update.
Table 6.11 Timmins West Mineral Resource Statement, May 15, 2017
In-Situ Resources Above 1.5 g/t Gold Cut-Off Grade
DepositClassificationTonnesGold Grade (g/t)Gold Ounces
TimminsIndicated
1,428,000
4.7
213,800
Inferred
358,000
4.3
49,700
Thunder CreekIndicated
1,249,000
3.7
149,800
Inferred
39,000
2.6
3,300
144 GapMeasured
361,000
5.0
57,500
Indicated
4,862,000
3.9
602,900
Measured & Indicated
5,223,000
3.9
660,400
Inferred
695,000
3.6
80,500
Total Timmins West MineMeasured
361,000
5.0
57,500
Indicated
7,539,000
4.0
966,500
Measured & Indicated
7,900,000
4.0
1,024,000
Inferred
1,092,000
3.8
133,400

1. The effective date of the mineral resource estimate was May 15, 2017.
2. Mineral resource estimates had been classified according to CIM Definitions and Guidelines.
3. Mineral resources were reported inclusive of mineral reserves.
4. Mineral resources had been estimated using ID2 interpolation technique and gold grades which have been capped between 15 and 120 g/t based on statistical analysis of each zone.
5. Domain were modeled assuming a minimum mining width between two and ten metres depending on the zone.
6. Tonnage information is rounded to the nearest thousand and gold ounces to the nearest one hundred. As a result, totals may not add exactly due to rounding.
7. The mineral resource estimate was prepared under the supervision of, and verified by, Kara Byrnes, P. Geo., Director of Technical Services, LSG, who is a QP under NI 43-101.
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Table 6.12: Timmins West Mineral Reserve Statement, May 15, 2017
DepositClassificationTonnesGold Grade (g/t)Gold Ounces
TimminsProbable
1,247,000
3.6
145,100
Thunder CreekProbable
668,000
3.1
67,200
144 GapProven
407,000
3.6
47,200
Probable
4,830,000
3.1
478,300
Proven & Probable
5,237,000
3.1
525,500
Total Timmins West MineProven
407,000
3.6
47,200
Probable
6,745,000
3.2
690,600
Proven & Probable
7,152,000
3.2
737,800
1.The effective date of this mineral reserve estimate was May 15, 2017.
2.The mineral reserve estimates were classified in accordance with the CIM Definitions and Guidelines, as per Canadian Securities Administrator’s National Instrument 43-101 requirements.
3.Mineral reserves were based on a long-term gold price of US$1,250 per ounce and an exchange rate of 1.3 $CAD/$US.
4.Mineral reserves were supported by a mine plan that features variable stope thicknesses, depending on zone, and expected cost levels, depending on the mining methods utilized.
5.Mineral reserves incorporate a minimum cut-off grade of 2.0 g/t. The cut-off grade includes estimated mining and site G&A costs of $US50.38 per tonne, surface haulage costs of $US5.97 per tonne, milling costs of $US16.23 per tonne, mining recovery of 95%, external dilution of 15.0% for TD, 13.0% for TC, and 9.0% for 144 Gap and a metallurgical recovery rate of 97%.
6.The mineral reserve estimate was prepared under the supervision of, and verified by, Kara Byrnes, P. Geo., Director of Technical Services, LSG, who is a QP under NI 43-101.

A QP has not done sufficient work to classify the historical estimates described in this section as current mineral resources or mineral reserves. These estimates are not considered to be current, and are quoted from the documents referenced.
6.2    Historic Production
Prior to March 2009 there was no production activity at the TWM. Annual production figures for the TWM from March 2009 to June 30, 2021 (including the Timmins, Thunder Creek and 144 Gap Deposits) are summarized in Table 6.13. Production from the 144 Gap Deposit began in April 2016.
Table 6.13: Timmins West Mine Annual Production Figures
YearMilled TonnesGrade (g/t)Recovered Ounces
200972,8993.37,745
2010258,0675.544,485
2011491,7233.758,839
2012536,9473.864,175
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2013747,4894.6106,905
2014971,2314.8144,043
20151,010,9564.4139,050
2016924,5064.1114,875
20171,008,3113.8119,075
2018956,2672.987,500
2019941,1893.086,609
2020944,8652.779,115
Jan 1-Jun 30, 2021515,8522.438,673
Totals9,380,3023.71,091,089

7Geological Setting and Mineralization
7.1    Regional Geology
In 1991, Jackson and Fyon defined a lithostratigraphic association of rock units in the Western Abitibi Subprovince within the boundaries of 55 tectonic assemblages. An assemblage is defined as stratified volcanic and/or sedimentary rock units built during a discrete interval of time in a common depositional or volcanic setting. Jackson and Fyon (1991) suggest a four stage evolutionary model for the Southern Abitibi Greenstone Belt:
Formation of submarine oceanic assemblages in regional‐scale, complex micro‐plate interactions perhaps caught between two larger converging plates located north and south of the micro‐plate region;
Termination of submarine volcanism by collision of a large continental mass to the south at ~2700 Ma. The collision may have been oblique, involving the 2800 to 3000 Ma Minnesota River Valley gneiss terrane.
Tectonic thickening during collision led to emergent sediment source area(s) for post ~2700 Ma turbidite deposits, including both local deposits and a massive sedimentary accretionary wedge. As collision continued, previously formed volcanic and turbidite deposits, including the Pontiac Subprovince, were deformed;
Terminal subduction, possibly involving complex plate interactions at 2685 to 2675 Ma, generated alkalic volcanic rocks and alluvial–fluvial sediments in proximity to crustal–scale shear zones.
Most of the gold produced in the Abitibi Subprovince were from deposits formed proximal to two major regional structures. The major gold deposits in the Kirkland Lake and Rouyn-Noranda camps are located along the Cadillac-Larder Lake Fault (“CLLF”) and those in the Timmins camp are located along the Destor-Porcupine Fault (“DPF”).
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Supracrustal rocks in the Timmins region are assigned as members of nine tectonic assemblages within the Western Abitibi Subprovince of the Superior Province. The seven volcanic and two sedimentary assemblages are of Archean age. Intrusions were emplaced during Archean and Proterozoic times and are associated with various mineralization styles and deposits. Tectonic assemblages of the Abitibi Subprovince, east of the Kapuskasing Structural Zone, are illustrated in Figure 7.1 (after Ayer J.A., Dubé, B., and Trowell, N.F., 2009). Table 7.1 is modified after Ayer (1999, 2000, 2003, 2005, 2011) and summarizes the characteristics of the assemblages from youngest to oldest.
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DRAFT
Figure 7.1: Tectonic Assemblages of the Abitibi Subprovince East of the Kapuskasing Structural Zone (After Ayer, J.A., Dubé, B., Trowell, N.F.; NE Ontario Mines and Minerals Symposium, April 16, 2009)
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Table 7.1: Tectonic Assemblages
AssemblagesDescription
Timiskaming Assemblage

Unconformably deposited from 2676- 2670 Ma (6 Ma time span)
Consists of conglomerate, sandstone and alkalic volcanics
Coeval Gold mineralization occurs near regional fault zones (PDF & CLLF)
Mineralised deposits associated with this assemblage occur include:
Quartz veins (e.g. Timmins & Val d’Or deposits)
Sulphide rich Stockworks ( e.g. Holloway Twp., Kirkland Lake, Matachewan)
AIC (Thunder Creek) 2687 ±3Ma (Barrie, 1992)
Porcupine Assemblage

Deposited from 2690 – 2685 Ma (5 Ma time span)
Lithologies found are turbidites with minor conglomerates & iron formation locally.
The Krist Formation forms part of the Porcupine assemblage and is coeval with calc-alkalic felsic porphyries (2691 ±3 to 2688 ±2 Ma).
Blake River Assemblage

Deposited from 2703 – 2696 Ma (7 Ma time span)
Upper and Lower Units composed of Tholeiitic volcanics and Calc-alkaline mafic to felsic volcanics.
Mineralised deposits associated with this assemblage occur as:
Volcanogenic Massive Sulphide (VMS) deposits associated with F3 felsic volcanics ( Noranda deposit)
Syngenetic gold & base metals (Horne, Thompson Bousquet deposits)
Tisdale Assemblage

Deposited from 2710 – 2704 Ma (6 Ma time span)
Upper and Lower Units composed a tholeiitic to komatiite suite and a calc-alkaline suite.
Mineralised deposits associated with this assemblage include:
VMS Deposits:
Kamiskotia – contained in tholeiitic volcanics, gabbros & F3 felsics
Val d’Or – contained in calc-alkaline volcanics & F2 felsics
Sheraton Township area – contained in intermediate-felsic calc-alkaline volcanics
Ni-Cu-PGE: Shaw Dome, Texmont, and Bannockburn
Kidd-Munro Assemblage

Deposited from 2719 – 2711 Ma (8 Ma time span)
Consists of two units:
Tholeiitic to komatiitic volcanics.
Calc-alkaline suite.
Several different minerlised styles are found:
VMS deposits:
mineralisation associated with F3 felsic volcanics & komatiites (Kidd Creek deposit)
mineralisation associated with tholeiitic-Komatiitic volcanism (Potter deposit)
Ni-Cu-PGE (Alexo deposit)
Stoughton-Roquemaure Assemblage

Deposited from about 2723 – 2720 Ma (3 Ma time span)
Composed primarily of magnesium and iron rich tholeiitic basalts with localized komatiites and felsic volcanics.
PGE mineralization occurs in mafic-ultramafic intrusions and komatiites (Mann & Boston Townships)
Deloro Assemblage

Deposited from about 2730 – 2724 Ma (6 Ma time span)
A single unit composed of mafic to felsic calc-alkaline volcanics which is commonly capped by regionally extensive chemical sediments.
Two different types of VMS deposits generally associated with this assemblage:
F2 felsic volcanics and synvolcanic intrusion (e.g. Normetal)
Localized sulphide-rich facies in regional oxide facies iron formations (e.g. Shunsby)
Pacaud Assemblage

Deposited from 2750 – 2735 Ma (15 Ma time span)
A single unit composed of magnesium and iron rich tholeiitic basalt with localized komatiites and felsic volcanics.

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There is a time span of 80 Ma between the volcanic eruption of the lower Pacaud assemblage (2750 Ma) and the sedimentation and volcanism of the upper Timiskaming Assemblage (2670 Ma). Each of the assemblages demonstrates a melt evolution from komatiitic or tholeiitic basalt, to felsic or calc-alkaline volcanics. In the TWM area, only the Deloro [2730 – 2724 Ma (6 Ma)], Kidd-Munro [2719 – 2711 Ma (8 Ma)], Tisdale [2710 – 2704 Ma (6 Ma)], Porcupine [2690 – 2685 Ma (5 Ma)], and Timiskaming Assemblages [2676 – 2670 Ma (6 Ma)] are present. The Krist Formation is comprised of calc-alkaline felsic pyroclastic rocks with minor amounts of carbonaceous argillite. Revised age dates for the Porcupine Assemblage indicate that the Krist Formation is coeval with emplacement of calc-alkalic felsic porphyries in Timmins (2692 ±3 to 2688 ±2 Ma).
Figure 7.2 shows the location of the Property relative to the regional geology.
Regionally, deformation in the Timmins area is characterized by a sequence of early, pre-metamorphic folds lacking axial planar cleavage (D1 and D2) to a series of syn-metamorphic, fabric–forming events, which overprint the earlier folds (D3 and D4 events) and a later crenulation cleavage (D5) (Rhys, 2010). The multi-phase Destor-Porcupine fault system passes approximately 5km to the south of the Property. The fault system is a composite corridor of shear zones and faults that records at least two main stages of displacement: syn-Timiskaming (2680-2677 Ma) brittle faulting associated with truncation of early D1 and D2 folds, apparent sinistral displacement, and formation of half grabens that are locally filled with Timiskaming clastic sedimentary rocks; and the formation of syn-metamorphic D3-D4 high strain zones over a broad corridor generally several hundred metres wide. These shear zones record variable kinematic increments but sinistral with north side up displacement are regionally dominant (Rhys, 2010).
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Figure 7.2: Regional Geology Map
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7.2    Local and Property Geology
The Property is dominated by mafic volcanic and sedimentary rocks which are interpreted to be from the Tisdale, Deloro and Porcupine Groups and occurring within a broad basin like feature which opens to the east (Figure 7.3). Rocks within the basin generally strike in an easterly direction and dip moderately to steeply northwards. Crosscutting the earlier rock units are a series of ultramafic to felsic intrusions including diabase dykes of several orientations. The most prominent are a northeasterly set of alkaline intrusives located on the north side of the metavolcanic-metasedimentary contact which are collectively termed the AIC. Key structural features of the property include the Destor Porcupine Fault Zone (“DPFZ”) which passes through the south portion of the interpreted basin and as well as the 144 and Gold River Trends which occur on the north and south limbs. These two trends represent intense zones of alteration and deformation and are the host to all of the main gold occurrences identified on the Property to date including the Timmins Deposit, Thunder Creek Deposit and 144 Gap Deposit.
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Figure 7.3: Property Geology
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Timmins Deposit Portion of the Timmins West Mine
The Timmins Deposit occurs at the northeast tip of the 144 Trend and is interpreted to overlie an overturned fold nose which formed at the contact between mafic metavolcanic rocks of the Tisdale assemblage and metasedimentary rocks of the Porcupine assemblage (Figure 7.3 and Figure 7.4). The fold nose has a steep northwesterly plunge and has been defined by drilling from surface to a minimum depth of 1,475m below surface. All gold mineralization identified and mined to date at the Timmins Deposit is located within or immediately adjacent to this structure.
The mafic volcanic rocks underlie the western portion of the mine area and include mainly fine-grained extrusive rocks which are massive in nature, but with local pillowed, vesicular, and flow breccia textures. Composed mainly of chlorite-feldspar ± calcite assemblages, these rocks are commonly dark green in color, except where affected (bleached) by sericite-Fe-carbonate ± albite alteration and veining (e.g. mineralized footwall-style zones proximal to the AIC). It is notable that these mafic volcanic rocks are often strongly magnetic, which has significant implications on tracking of drill hole orientations (see Items 11 and 12).
The metasedimentary rocks occur in the easterly portions of the deposit and in the core of the Timmins Deposit Fold Nose (“TDFN”). The main sedimentary sequence is generally comprised of thinly to thickly bedded turbiditic greywacke, siltstone, and mudstone.
Poorly exposed at surface, the multi-phase AIC intrudes the Timmins Deposit stratigraphy at depth near the core of the TDFN (Figure 7.4). The most common and texturally/mineralogically distinct phases include: 1) a fine- to coarse-grained pyroxenite; 2) a biotite-rich pyroxenite; 3) a porphyritic garnet-rich pyroxenite; 4) a fine-grained calcareous syenite; 5) fine-grained dykes with disseminated mafic minerals in a pinkish-brown matrix, often termed hornblende syenite, and; 6) a fine- to medium-grained equigranular monzonitic phase which appears to cut earlier phases. It is unclear whether these various phases are co-magmatic or form suites of significantly different ages. The main pyroxenite body is largely massive and only weakly foliated, but is cut locally by high strain zones up to several metres wide. Within and in proximity to mineralized veins and structures (i.e. Ultramafic Zones (“UM”-style zones) of the Timmins Deposit), the various phases of pyroxenite are frequently bleached to greyish and/or buff (tan) brown colors with pervasive fine-grained iron (“Fe”)-carbonate and sericite (+ albite) alteration and abundant disseminated magnetite. In areas of moderate to high strain, finely laminated biotite-(chlorite)-calcite and selective hematite are the dominant alteration assemblage. The AIC in the Timmins Deposit is commonly intermingled with a highly deformed, fine-grained talc-chlorite altered komatiite in the fold closure area. At depth, this komatiitic unit separates the AIC into two predominantly pyroxenitic lobes, referred to as the western and eastern lobes. The UM Zones are hosted in the western lobe and a series of smaller UM-style zones (“Sediment Sub-Zones” prefixed by the letter “S”) are located in the eastern lobe (Figure 7.4 and Figure 7.5). Zones of high strain in the relatively incompetent komatiite unit, coupled with similar shear sense indicators in proximal sediments to the east within the “core” of the fold nose, are interpreted as defining the down-plunge position of the Holmer Shear Zone (Rhys, 2015; Figure 7.4). The Holmer Shear Zone is an important set of gold-related structures visible in both surface exposures and shallow mine levels.
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Figure 7.4: Timmins Deposit Underground Geology at 790L (Lower Mine)
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Figure 7.5: Timmins Deposit Generalized Cross-Section 4575E (Timmins West Mine Grid – looking West)
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Thunder Creek Portion of the Timmins West Mine
The Thunder Creek Deposit lies approximately 800m to 900m south-southwest of the Timmins Deposit (Figure 7.3). It occurs along the same mafic metavolcanic metasedimentary contact hosting the Timmins Deposit, in an area where the contact has been intruded by a syenite unit and is transected by the northeast trending Rusk Shear Zone.
The western portion of the deposit is underlain by mafic metavolcanic rocks interpreted to belong to the Tisdale Assemblage. These rocks are fine-grained, green in color and exhibit massive, pillowed or flow breccia textures locally. Metamorphism varies from mid-greenschist to lower-amphibolite facies. In proximity to the AIC, pervasive chlorite, abundant disseminated fine-grained magnetite, and localized hematite alterations are also common (Camier, 2009).
The eastern portion of the deposit is overlain, perhaps uncomformably, by a succession of metasedimentary rocks belonging to the Porcupine Assemblage. In the Thunder Creek area, this unit presents as a discontinuous sequence of biotite-rich meta-greywacke, metamorphosed siltstones, metamorphosed argillite, fine- to medium-grained clastic tuff, and laminated chemical metasediments containing magnetite (Camier, 2009; Samson, 2008). These metasedimentary units occur in the footwall to the AIC and along the Rusk Shear Zone. Within the shear zone, sediments are strongly deformed to a quartz-sericite-carbonate (± hematite) mylonite. The most common alteration assemblage comprises sericite, weak hematite and silicification.
Cutting through the metavolcanics and metasediments are a northeast trending set of intrusions with the most significant being the Thunder Creek Porphyry which is a 200m long monzonitic body which hosts the Porphyry Zone in the Thunder Creek Deposit. The top of the main Thunder Creek Porphyry occurs approximately 400m below surface, immediately northwest of the key volcanic-sediment contact. It intrudes the mafic volcanic rocks in the AIC footwall and the Rusk Shear Zone (Figure 7.6 and Figure 7.7).
Occurring in the central to southern portion of the property is the Thunder Creek Stock. It is a nearly circular intrusion with a diameter greater than 500m which forms an area of high topographic relief on surface (Figure 7.3). The composition of the intrusion varies with 10-40% quartz eyes and 10-20% tabular feldspars contained within a fine-grained pinkish-grey groundmass. Owing to significant variation in quartz and feldspar content, multiple names have been used to describe this rock type, including quartz monzonite, monzonite, syenite, and peralkaline syenite. The characteristic pink to brick-red color is interpreted as the result of variable albitic, potassic, and hematitic alteration intensities. Camier (2009) noted the presence of riebeckite in the eastern half of the intrusive, which may suggest an alkaline magmatic source. Although no age dating has been completed, it is speculated that the intrusions at Thunder Creek may be part of the Timiskaming Assemblage (2676-2670 Ma).
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Figure 7.6: Thunder Creek Underground Geology at 765L (Lower Mine)
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Figure 7.7: Thunder Creek Generalized Cross-Section, 9550N (Thunder Creek Rotated Surface Grid looking Southwest)
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144 Gap Deposit Portion of the Timmins West Mine
The 144 Gap Deposit occurs along the 144 Trend, approximately 750m to the southwest of the Thunder Creek Deposit and between 600m and 1,000m below surface. Continued drilling following the 2014 discovery hole (HWY-14-48: 5.37 g/t over 46.0 metres including 21.87 g/t over 6.0m and 12.54 g/t over 4.4m (Press Release dated October 07, 2014) has outlined a mineral deposit similar in style and setting to the nearby Thunder Creek Deposit. Multiple internal studies, combined with the expertise of external consultants have helped to better understand the geological, structural, and geochemical controls on the new deposit. The interpreted results and supporting observations of these studies are summarized in the following deposit description.
Similar to the Thunder Creek Deposit, the 144 Gap Deposit is located immediately northwest of the northeast trending contact between the metavolcanic and metasedimentary rocks where it has been cut by a prominent northeast trending high strain zone (Figure 7.8). This high strain zone comprises an intense northeast trending, steep northwest dipping mylonitic to phyllonitic shear zone that varies between 5m and 20m thick (Rhys, 2015). The high strain zone varies in alteration style and intensity from hanging-wall to footwall primarily in response to variations in host-rock unit across its width. In the hanging-wall where it is generally developed within the mafic volcanic-pyroxenite sequence, the structure is a dark grey laminated biotite-magnetite-chlorite-calcite shear zone with intense phyllonitic foliation, and which may contain variable amounts of apatite and K-feldspar (Ross and Rhys, 2015). The shear zone typically grades into more sericite (-carbonate)-rich components in its footwall, likely denoting a change in primary protolith and overprinting alteration from the mafic volcanic-pyroxenite sequence to altered Porcupine sediments. Carbonate in the contact zone is appreciably more Fe-rich (dolomite-ankerite) and indicates a younger alteration phase that overprints the biotite-magnetite-calcite portions of the shear zone (Ross and Rhys, 2015). Highly deformed, boudinaged, and folded pink syenite dykelets are also spatially associated with the sericite-rich portions of the structure. Lithological contacts are highly obscured (and considered gradational) due to the intense nature of alteration and deformation in this central part of the shear zone. In the footwall to the structure, sediments exhibit strong sericite-carbonate (dolomite) alteration and may be intensely foliated up to tens of metres away (Ross and Rhys, 2015).
Work to date suggests that gold mineralization at the 144 Gap Deposit is concentrated dominantly in the footwall to the high strain zone where mineralized syenite bodies intrude an upward-tapering lobe of mafic volcanic rocks (Figure 7.8 and Figure 7.9). The mafic volcanic lobe extends upward to elevations of approximately 500m to 700m below surface with an approximate thickness of 150m in its upper portions and greater than 300m at the lower limits of current drilling. This mafic lobe is separated in its upper portions from the high strain zone and the hanging-wall volcanic sequence by a wedge of altered Porcupine sediments as depicted in Figure 7.9. This wedge appears to extend from the main body of sediments that occur to the southeast and tapers downward along the immediate footwall of the high strain zone. At depth, these highly strained and altered sediments are intercalated with and increasingly difficult to distinguish from the adjacent altered mafic volcanic rocks. The lack of a clearly identifiable structure at the
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contact between the mafic lobe and the adjacent sediment wedge, coupled with the southeasterly orientation of the bedded sediments, suggests this may be a primary basal contact of the unconformity between the Tisdale volcanic sequence and overlying Porcupine sediments (Rhys, 2015). Rhys (2015) also suggests that the wrapping of sediments around the top of the mafic lobe may represent the hinge zone of an antiformal fold which has been truncated along its northwestern limb by the high strain zone (Figure 7.9).
Syenite intrusions account for approximately 15% to 25% of the mafic lobe (by volume) and are most abundant within 50m to 200m of the footwall to the high strain zone as lenticular sill-like bodies that locally exceed 100m in thickness within and below the main mineralized areas (Rhys, 2015). Smaller/thinner syenite dykes and sills are also noted locally in the hanging-wall. Syenite in the 144 Gap Deposit area is typically K-feldspar porphyritic, with blocky to tabular phenocrysts and megacrysts (often exhibiting oscillatory zoning) set in a fine-grained matrix. Multiple phases of syenite are evident with early K-feldspar megacrystic varieties cut by later finely porphyritic varieties that resemble the monzonitic intrusion which is host to the Porphyry Zone at the Thunder Creek Deposit. Matrices range in color from dark grey or grey-brown in least-altered syenite to salmon pink, reddish-orange, or brick-red in phases affected by a combination of K-feldspar-quartz-albite-hematite alterations (Ross and Rhys, 2015; Linnen and Campbell, 2015).
Hanging-wall rocks to the deposit include mafic volcanics of the Tisdale Assemblage similar in nature to those described above for the Timmins and Thunder Creek portions of the TWM. These rocks, as well as those within the mafic volcanic lobe that hosts the 144 Gap Deposit mineralization, are generally massive and dark green-grey in color with pillowed and vesicular textures locally. Patchy selective epidote-calcite-magnetite are the main alteration phases present with pinkish-brown biotite (phlogopite) appearing in proximity to syenite dykes, possibly the result of contact metamorphism. Though typically massive to weakly foliated, strong fabrics are observed within narrow intervals associated with the high strain zone and related structures.
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Figure 7.8: 144 Gap Deposit Geological Level Plan, 820L (Exploration Drift)
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Figure 7.9: 144 GAP Deposit Generalized Cross-Section, 8600N (Highway 144 Rotated Surface Grid, Looking Southwest)
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7.3     Structural Geology
Regionally, deformation in the Timmins area is characterized by three major deformation sequences (split into five major events):
a sequence of early, pre-metamorphic folds lacking axial planar cleavage (D1 and D2 events)
a series of syn-metamorphic, fabric–forming events which overprint the earlier folds (D3 and D4 events)
a later crenulation cleavage (D5) (Rhys, 2010).
The multi-phase Destor-Porcupine fault system passes approximately 5km to the south of the Property. This fault system is a composite corridor of shear zones and faults that record at least two main stages of displacement: 1) syn-Timiskaming (2680-2677 Ma) brittle faulting associated with truncation of early D1 and D2 folds, apparent sinistral displacement, and formation of half grabens that are locally filled with
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Timiskaming clastic sedimentary rocks, and; 2) syn-metamorphic D3-D4 formation of high strain zones over a broad corridor generally several hundred meters wide and corresponding with, or developed south of, the trace of the older faults. These shear zones record variable kinematic increments but are regionally dominated by sinistral, north side up displacements (Rhys, 2010).
At least three areas of high strain, reflecting probable intense S3 shear zones, have been recognized in the Timmins Deposit, Thunder Creek, and 144 Gap Deposit areas:
the west-northwest trending, but significantly folded Holmer Shear Zone (Timmins Deposit);
the northeast trending Rusk Shear Zone (Thunder Creek), and;
the high strain zone in the 144 Gap Deposit area, interpreted as a possible southwest extension of the Rusk Shear Zone, or related structure.
Shear zones may also be significantly folded, as occurs in the Main Zone in upper portions of the Timmins Deposit. These closures have localized gold mineralization which plunge parallel to them, suggesting the definition of additional F4 fold closures (Rhys, 2010).
Shear sense indicators in the Holmer Shear Zone surface outcrops, coupled with the oblique (clockwise) nature of the S3 foliation in the Rusk Shear Zone, suggest that both of these dominant structures in the TWM area accommodated sinistral displacement during D3. Subsequent D4 shear zone development in narrower, generally east-west trending and steeply dipping structures with dominantly reverse kinematic indicators in the Timmins Deposit would then imply a change in kinematics later in the deformation history to a more contractional setting associated with development of the stretching lineation. Such variations in kinematics are also suggested in other deposits in the Timmins area and imply changing patterns of far field stress and regional transpression between D3 and D4 (Rhys, 2010).
A post-mineral deformation event (D5) has also been recorded at the Timmins Deposit, evidenced by the folding of shear zones (F5 folds) in the upper parts of the deposit, particularly near surface, thereby causing variation in dip of the sequence and associated mineralization.
7.4     Mineralization
Gold mineralization in the Timmins, Thunder Creek, and 144 Gap Deposits occurs in steep north-northwest plunging mineralized zones which plunge parallel to the local orientations of the L4 lineation. Features including folds and elongated lithologies also plunge parallel to this lineation. Mineralization occurs within, or along favorable lithostructural settings within 100m of the Holmer and Rusk Shear Zones. Mineralization comprises multiple generations of quartz-carbonate-tourmaline ±albite veins, associated pyrite alteration envelopes, and disseminated pyrite mineralization. Textural evidence suggests that veining formed progressively through D3 and D4 deformation. All phases of gold-bearing veins cut and postdate the AIC and syenitic to monzonitic intrusions, although mineralization is often spatially associated with ore preferentially developed within these intrusive suites (Rhys, 2010).
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Timmins Deposit
At the Timmins Deposit, the character and sequence of veining in the Main, V1 and V2 veins is similar in all exposures. Four phases of veining have been recognized in the Timmins Deposit (Rhys 2003, 2010 and 2011). The sequence of veining observed is as follows, with most veins in the upper Timmins Deposit mineralization forming composite veins which have this paragenetic sequence.
1.Early tourmaline-rich phase: early, tourmaline-quartz vein material forms the earliest veining phase. It comprises both dilation veins and tabular vein-style wall rock replacement zones along strike from, or parallel to dilation veins. The veins have tan carbonate ±sericite alteration envelopes. Tourmaline can comprise the majority of the vein material in these veins, forming a black matrix cross cut by later phases of veining. These veins vary from a few centimetres to more than 2 meters wide, and may be significantly boudinaged or folded, with S4 axial planar to the folds. Boudins, where developed, are linear and shallow plunging and at a high angle to the L4 stretching lineation. Dilational veins have sharp contacts and massive central fill consistent with formation as void fill. Replacement tourmaline comprises 5cm to 40cm wide replacement veins which, unlike the dilational veins, have gradational contacts over 0.5cm to 2cm. Relic textures of the wallrock, including fragmental textures in deformed potential clastic sedimentary or fragmental tuffaceous units which occur in the Holmer Shear Zone are preserved. These may laterally grade into more dilational quartz-tourmaline veins which have sharp contacts. Both vein styles are spatially associated and close in timing with the replacement style locally enveloping the dilational style veins. Dilational tourmaline-rich veins locally form en-echelon, moderate to steeply north dipping extension veins separate from the main veins. Broad zones of veining with multiple dilational and parallel, sheeted replacement tourmaline veins may alternate with slivers of carbonate-quartz-sericite altered wall rock. Tourmaline veins may contain disseminated pyrite and arsenopyrite.
2.Quartz-rich second phase: exploiting the earlier tourmaline-rich veins, this phase of veining forms white quartz ± tourmaline ± sericite ± pyrite ± arsenopyrite vein material which overprints, but occurs along and parallel to the earlier tourmaline vein material. This, combined with wallrock slivers, creates a banded appearance to the quartz-tourmaline veins. Tourmaline coeval with this phase may occur with sulphides and carbonate as stylolites in the vein material. Earlier tourmaline may occur as slivers, lenses and fragments in the younger white quartz, or the younger white quartz may occur on the margins of earlier tourmaline veins. This style of quartz may also occur independent of the tourmaline veins as a separate vein generation and locally occupies minor reverse, north-side up D4 Shear Zones.
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Sampling and locally occurring visible gold in this vein phase indicates that it is auriferous. This veining is the intermediate stage of veining discussed by Rhys (2003). When occurring as independent shear veins, it may be joined by quartz-carbonate extension veins which are variably deformed. Like the tourmaline veins, this stage of veining is affected by folding. This generation of quartz also occurs with early tourmaline as composite folded veins which trend northwest along the southwestern margins of the Main Zone.
3.Variably deformed Quartz extension veins: shallow to moderate southeast dipping quartz greater than tourmaline + carbonate extension veinlets form ladder-like stacked arrays which preferentially occur in, and cut across the earlier quartz-tourmaline and banded quartz-rich vein phases. The extension veins may either terminate at the margins of the older veins, or nucleate in the early tourmaline and extend outward into surrounding wallrock. The extension veins are often closely spaced and may occur at intervals of a few centimeters to tens of centimeters apart. They range from hairline up to 10cm thick. This set of extension veins locally occurs as en echelon, locally sigmoidal arrays which record apparent northwest side up displacement internal to the older quartz-tourmaline veining, and which also record reverse north side up displacements. Where not folded in sigmoidal sets, these extension veins are developed approximately orthogonal to the steep northwest plunging L4 stretching/intersection lineation, suggesting that they formed during stretching of the lithology sequence parallel to L4 in response to north-south D4 shortening. This is consistent with the relatively late structural timing as suggested by the generally low strain state.
4.Late quartz extension veinlets: a late set of shallow dipping (generally to the southeast) quartz extension veinlets frequently occurs within the quartz-tourmaline veins, and cuts at low angles across the earlier set of extension veinlets described above, especially where they are folded into sigmoidal sets. These late veinlets are typically narrow (1mm to 10mm thick) and are volumetrically minor, although they can be locally very abundant. Their similar orientation with respect to L4 as the preceding extension veins set, but generally undeformed state suggest that they represent a second, structurally late increment of extension veining late during D4.
Textural and timing relationships of the different, but spatially related veining generations listed above suggest that they formed incrementally spanning deformation during D3 and D4. The early quartz-tourmaline veins, including the second phase quartz greater than tourmaline vein phase, are affected by all D4 strains. Folding has occurred when vein development is oblique to or at high angles to S4 foliation, and boudinaged in response to the stretching parallel to L4. However, these veins also cross S3 foliation as
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planar veins where they trend northeast at high angles to S3, suggesting that they were affected by only minor D3 strain. In addition, tourmaline replacement veins, where they overprint potential fragmental units, contain less strain relic fragments than the surrounding wallrock. This suggests that they formed part way through D3 when the wallrock were already deformed, but prior to the accommodation of all strains in the rocks. These field relationships are consistent with the quartz-tourmaline veins and the next generation of banded quartz, which is parallel to them, forming extensional veins and shear veins during D3 in response to sinistral displacement along, and shortening across, the Holmer Shear Zone. During later potentially progressive D4 deformation, additional phases of veining, mainly as quartz extension vein arrays, have formed exploiting the earlier rheologically competent quartz-tourmaline. These are at a high angle to the L4 lineation which suggests vein formation in response to the stretching parallel to L4. These extension veins and the very late set of extension veinlets may also form along the adjacent to minor east-west trending D4 shear zones which accommodate north side up displacement, and overprint the transposed fabrics associated with D3 (S3), (Rhys, 2010).
Systematic underground drilling and mapping have led to an improved interpretation of the internal lithological correlations within the AIC, which hosts the Ultramafic Zone in proximity to the “fold nose” (Rhys, 2012, J. Samson, personal communication). Figure 7.4 is a geological level plan on the 790L and illustrates a core of dominantly serpentinized, chloritized and locally talc-altered komatiite ultramafic unit that lies in the center of the “fold nose” in the AIC (dominantly pyroxenite). Mineralization in the altered pyroxenite in the Ultramafic Zone terminates against the altered komatiitic unit, with non-mineralized quartz-tourmaline veining extending into the komatiitic unit. Recognition of this allows for limiting the projection of the mineralization away from drillholes towards holes that intersected the komatiite, thus tightening up the mineralization shapes. This komatiitic unit also separates the AIC into two lobes of dominantly pyroxenite with the main part of the Ultramafic Zone being hosted within the western lobe and a series of smaller, generally shallow-dipping Ultramafic Zones, termed here as “Sediment Sub-Zones” (e.g. S2, S6, S7), being located in the eastern lobe (Figure 7.4). Here these zones are folded within the eastern pyroxenite around the core of the pyroxenite / sediment contact (Figure 7-5). Recent underground drill hole intersections show the potential for additional zones of mineralization within this eastern lobe of pyroxenite at depth.
Thunder Creek Deposit
In the Thunder Creek area, there are two main styles of mineralization:
1) the Rusk Shear Zone adjacent to and in the footwall of the pyroxenite unit,
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2) the Porphyry Zone which is hosted by the quartz monzonite intrusion which lies to the southeast below an elevation of approximately 500m below surface in the immediate footwall to the Rusk Shear Zone (Figure 7.6 and Figure 7.7).
Both of these zones are spatially related and occur in the same steep north-northwest plunging mineralization area which has been traced over a vertical dip length of more than 1km to date, and within which better intercepts occur along a strike length of 100m to 600m (Rhys, 2010).
Mineralization in the Rusk Shear Zone comprises areas of either higher quartz-carbonate-pyrite vein density, and/or areas of elevated medium- to coarse-grained disseminated pyrite and associated pyrite-quartz veinlets. Both of these styles were observed to occur in the intensely foliated, often compositionally laminated carbonate-albite-quartz-magnetite portions of the shear zone. Mineralization also locally preferentially overprints pink, K-feldspar-rich syenite dykes and local plagioclase-dominant probable diorite dykes in the shear zone, with clots and aggregates of coarse pyrite, often associated with quartz-albite-carbonate veinlets. Areas of gold mineralization occur in portions of the Rusk Shear Zone in which the shear zone matrix is variably Fe-carbonate altered.
The most common style of veining comprises deformed quartz-pink carbonate/albite veins with varying pyrite content and coarse-grained pyrite envelopes/selvages, which correspond generally with higher and more continuous grade. These early deformed veins are very similar in style and texture to the earliest phases of veining seen underground in the 650L Ultramafic Zone which are also deformed and could be coeval with the set (Rhys, 2010). Veins in the Rusk Shear Zone also include a younger phase of quartz-pyrite veins that cut the deformed veins and which have carbonate-pyrite envelopes that overprint the shear zone matrix. The coarse pyrite in vein envelopes also overprints the dominant shear zone foliation, which is preserved texturally as inclusion trails in the pyrite (Ross, 2010). This younger set of veinlets is likely coeval with the main stage extension vein sets on the 650L (Rhys, 2010). Both of these veining phases are auriferous and contain high gold grades. Gold in both phases was observed in a petrographic study in association with pyrite. Gold was present as inclusions in pyrite, associated with chalcopyrite and galena, on fractures in pyrite, and free in gangue minerals adjacent to pyrite grains (Ross, 2010).
“Porphyry Zone” mineralization is developed in the quartz monzonite intrusion that occurs at depth in the footwall to the Rusk Shear Zone immediately adjacent to mineralized areas in the shear zone. Mineralization is associated with sheeted sets of quartz extension veins which occur in abundance of up to several veins per metre within the intrusion. Most veins are less than 3cm thick and comprise white quartz with pyrite. Disseminated pyrite also occurs locally in the wall rock adjacent to the veins. Free visible gold can be locally observed in association with pyrite both in veins and disseminated in the host rock. The intrusion is generally massive in areas of veining. Veins have variable core axis angles, but angles are most commonly high (>70 degrees to core axis) which is consistent with a shallow dip to extension veinlets and is supported by geological underground mapping in development headings. Local irregularities in vein shapes and orientations, particularly in areas of the highest vein abundance, suggests some degree of deformation,
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possibly in the cores of sigmoidal vein arrays. These veins are of compatible style and probable orientation as the main stage Ultramafic Zone veins in the Timmins Deposit which they may be coeval with, and consequently they may also form areas of higher grade continuity which are dictated by the morphology of the extension vein arrays. These veins may have formed preferentially in the upper, thinner portions of the intrusion, in response to brittle behavior of the intrusive body during shear zone deformation. More isolated narrower intercepts deeper in the intrusion where it is thicker may reflect more rigid behavior, as is seen in many other Timmins area deposits, where an optimal thickness of the host unit is common for most abundant vein development. Modeling of the morphology and thickness of the host intrusion may as a result aid in definition of the distribution of best developed mineralization (Rhys, 2010).
Areas of veining are frequently associated with more intensely altered wallrock, obscuring the primary igneous textures. A systematic series of samples from drill hole TC09-69a across the host monzonite intrusion was stained using Na-cobaltinitrate. Intense yellow staining proximal to quartz veining confirmed that the reddish-orange alteration commonly observed adjacent to quartz veins is secondary k-feldspar (Rhys, 2010). Within the Porphyry Zone, systematic sampling of different vein generations confirms that there is a positive correlation between gold grade and quartz vein density (Campbell, 2014).
144 Gap Deposit
Gold mineralization in the 144 Gap Deposit occurs generally between 600m and 1,000m below surface in the footwall of the high strain zone within and adjacent to syenite bodies in the footwall mafic volcanic lobe (Figure 7.8 and Figure 7.9). The main mineralized areas occur between approximately 20m to 120m into the footwall of the high strain zone; however, mineralization also occurs locally within the shear zone itself. There are two main styles of mineralization identified in the 144 Gap Deposit area:
1) syenite-hosted quartz-pyrite extension vein sets and associated mineralization, and;
2) disseminated and vein-controlled pyrite in carbonate-sericite altered areas of higher strain in the shear zone and in altered mafic units along and within dyke margins.
The highest syenite-hosted gold grades in the 144 Gap Deposit are associated with areas of quartz extension vein development. These extensional quartz veinlets are typically 2mm to 30mm in diameter (although locally can reach up to greater than 15cm in width), exhibit sharp unfoliated margins, and are filled with blocky to prismatic quartz (Ross and Rhys, 2015). Vein densities seldom comprise more than 5% of the host syenite by volume. Though there is no apparent direct relationship between gold grade and quartz vein abundance, areas lacking quartz vein development altogether also typically lack significant gold grades. Instead, the highest gold grades are more directly linked to development of coarse-grained, often cubic pyrite occurring as individual grains, or locally as grain aggregates, along quartz veinlets and sometimes in wallrock within vein halos (Rhys, 2015). Vein-hosted pyrite is poly-generational and overgrows early gold-poor cores, which may suggest multiple incremental gold depositional pulses within an ongoing mineralizing event (Linnen and Campbell, 2015). Areas of gold-rich veining in syenite occur both with and without the
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reddish K-feldspar-albite-quartz (-hematite) alteration and associated local fine-grained in-situ brecciation which often affect the syenite matrix. Consistent with this alteration being earlier than main-stage mineralization, these gold-bearing veinlets also clearly cut the altered areas and breccia zones (Rhys, 2015). Despite this relationship, mineralized areas are seldom unaltered and typically exhibit pale orange-reddish colors in proximity to gold-bearing vein arrays, which may suggest a lower intensity, feldspar-stable alteration accompanies vein development (Rhys, 2015). Extensional quartz veins in the 144 Gap Deposit area are preferentially developed in the syenite and typically terminate at dyke/sill margins. Similar to Thunder Creek, this vein distribution highlights the importance of rheologically more competent units (i.e. syenite or monzonite) which can accommodate brittle fracturing and subsequent vein development. Extensional quartz veinlets in mineralized areas of the 144 Gap Deposit area exhibit variable, but generally moderate core axis angles, consistent with shallow, often southeasterly dipping extension vein sets. Veinlets with different orientations, as well as localized areas of more abundant and thicker quartz veining may suggest the development of sigmoidal quartz extension vein arrays and local shear veins, similar to the Porphyry Zone at Thunder Creek (Rhys, 2015). Although multiple vein generations may be present, most veins are likely the result of one protracted veining event during which veins formed in multiple pulses as sigmoidal vein arrays developed, with earlier veins progressively deformed and overprinted by younger vein generations (Rhys, 2015). Late steeply dipping veinlets occur locally and are interpreted to post-date the mineralized extension vein sets.
Despite a clear spatial relationship with syenite in the 144 Gap Deposit, gold mineralization also occurs outside of the syenite bodies in three general settings, each of which is associated with disseminated pyrite in dominantly carbonate (dolomite-ankerite; Ross and Rhys, 2015) altered mafic, pyroxenite, and locally sediment host-rocks:
1.In footwall portions of the high strain zone, where intercalated altered mafic volcanic rocks and sediments occur with deformed syenite dyke lenses, disseminated medium- to coarse-grained pyrite and local deformed quartz veinlets are developed in association with tan-brown carbonate-sericite alteration of mafic domains and reddish-orange syenite dykelets. Unlike at Thunder Creek, these mineralized areas are not continuous but do indicate the potential for steeply plunging mineralized zones localized along the shear (Rhys, 2015).
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2.In the mafic volcanic lobe, disseminated fine- to medium-grained pyrite occurs in association with brown to tan carbonate altered mafic volcanics in areas of increased foliation between and proximal (typically within 3m) to syenite bodies. This style of mineralization is estimated to contribute up to 30% of the gold content in the main mineralized areas of the 144 Gap Deposit. The disseminated pyrite and associated carbonate alteration are shown to overgrow the foliation commonly developed in these disseminated zones, consistent with a structurally late timing for gold mineralization. Earlier biotite-calcite-magnetite-K-feldspar-albite alteration is also overprinted by the gold-related pyritic carbonate assemblage adjacent to syenite dykes, although K-feldspar appears to remain stable in these areas (Ross and Rhys, 2015).
3.Patchy disseminated pyrite associated with varying intensities of carbonate-sericite alteration of mafic volcanic rocks and turbiditic sediments also occurs along or proximal to the southeastern contact between the volcanic lobe and the Porcupine Assemblage (Rhys, 2015).
The close spatial association of the different alteration styles with mineralization in the syenite bodies suggests that all mineralization styles are linked to the same event and simply reflect different manifestations of gold deposition related to contrasting host-rock composition and rheology (Rhys, 2015).
Some of the most detailed information regarding mineralization at the 144 Gap Deposit is from mapping and sampling of new crosscuts developed on the 835L (Figure 7.10). Results of the work confirm previous observations from drilling and indicate complex patterns in geology and gold distribution with the bulk of gold being hosted by syenite and closely associated with narrow extensional veins with relatively short strike length or coarse cubic pyrite surrounding the veins. Locally truncating mineralization are narrow lenses of mafic metavolcanic rocks.
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Figure 7.10: 144 GAP 835L Crosscut Sampling and Wall Mapping Showing Different Generations and Density of Veining relative to Gold Grades
figure710.jpg
8Deposit types
The Porcupine area is well known for hosting several types of mineral deposit types including:
base metal deposits such as Glencore’s Kidd Creek Mine, which is a volcanogenic massive sulphide deposit;
industrial mineral deposits such as the Penhorwood talc deposit; and
most notably numerous mesothermal Archean shear‐hosted gold deposits.
Gold production to the end of 2020, from some 62 operational and historical sites is reported to be 2,412,123 kilograms of gold (77,551,574 ounces of gold). Table 8.1 highlights the 26 locations that exceeded production of 3,110 kilograms of gold (100,000 ounces of gold).
The setting of the TWM is characteristic of mesothermal Archean shear-hosted gold deposits. Dube and Gosselin (2007) have summarized the general consensus that greenstone-hosted quartz-carbonate vein deposits are related to metamorphism, partial melting, and thermal re-equilibration of subducted volcano-sedimentary terrains. Deep-seated, gold-transporting fluids were channeled to higher crustal levels through major crustal faults or deformation zones, similar to the Destor-Porcupine Fault Zone located about 5km south of the TWM. Enrichment of these mineralizing hydrothermal fluids was likely derived from the leaching of various components, most notably gold, from the volcano-sedimentary country rocks during
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fluid transport and ascension. The fluids then precipitated as vein material or wall-rock replacement in second and third order structures at higher crustal levels through fluid-pressure cycling processes and other physicochemical reactions (temperature, pH, fS2, and fO2 changes).
Mineralization style at the TWM is typical of the Timmins and Kirkland Lake gold camps. There are detailed differences for each deposit with respect to individual structural controls, vein density, gold tenor, gold/silver ratio, and size, but they still maintain commonalities. In his 1997 PhD thesis titled “Geological Setting of Gold Deposits in the Porcupine Gold Camp, Timmins, Ontario”, Brisbin generalizes the ore bodies as typified by single or multiple quartz-carbonate veins with or without albite, tourmaline, sericite, pyrite + various sulphides, and native gold hosted in carbonatized, sericitized, albitized and pyritized host wallrock. Gold occurs both in the veins and the wallrock. The most significant gold deposits are spatially associated with quartz-feldspar porphyry stocks and dykes and with albitite dykes, both of which intrude the folded Archean supracrustal rocks. The supracrustal rocks, porphyry intrusions, albitite dykes, and gold mineralization were affected by metamorphism and penetrative deformation during the Kenoran Orogeny (Brisbin, 1997). Brisbin further compares gold production with lithology.
Over 75% of gold production from the Porcupine Camp (1997) was mined from orebodies in the Tisdale Group rocks (which are thus considered the most important rocks in the camp). Approximately 15% of the gold from the Porcupine Camp has been hosted by Timiskaming Group rocks, making them the second most important host. Porphyritic intrusions, heterolithic breccia bodies, and albitite dykes host nearly 10% of the gold produced in the camp.
Gold mineralization in the TWM occurs in steep north-northwest plunging mineralized zones which are also parallel to the local L4 stretching lineation. Mineralization occurs within, or adjacent to zones of strong deformation such as the Holmer and Rusk Shear Zones. Mineralization at the Timmins Deposit is hosted in multiple generations of quartz-carbonate-tourmaline (± albite) veins, associated pyrite alteration envelopes, and disseminated pyrite mineralization. Textural evidence suggests that veining formed progressively through D3 and D4 deformation events. Mineralization at the Thunder Creek and 144 Gap Deposits postdates the AIC, with two main generations of quartz-pyrite (± scheelite, galena, and molybdenite) veins. Veining is almost exclusively hosted in syenite-monzonite intrusions adjacent to the Rusk Shear Zone and related structures (Rhys, 2010).
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Table 8.1: Operations with Greater than 100,000 Ounces of Gold Production in the Porcupine Gold Camp (as of 2020)
MineTotal milled (Tonnes)Production (oz. Gold)Grade (g/t)
Hollinger76,612,77320,013,3167.41
Dome (incl. stockpile)108,014,16916,655,4324.38
McIntyre36,454,20310,770,2018.38
Detour Lake170,499,3765,825,0161.07
Pamour59,552,8694,820,0682.29
Hoyle Pond10,748,8644,196,46210.94
Aunor (Pamour #3)7,694,8992,502,2149.06
Hallnor (Pamour #2)3,834,1431,645,89212.19
Preston5,701,1161,539,3557.50
Paymaster5,086,9501,192,2066.56
Coniarum (Carium)4,049,6781,109,5747.81
Timmins West (incl. 144 Gap + Thunder Creek)8,918,5811,107,5043.44
Buffalo Ankerite4,530,416957,2925.94
Delnite3,541,133924,0067.40
Pamour
(other sources)
6,728,257676,6452.81
Bell Creek4,456,690593,3943.77
Broulan Reef Mine1,945,464498,9327.19
Vipond (Anglo–Huronian)1,419,942414,3678.13
Broulan Porcupine1,039,687243,7576.56
Owl Creek1,800,217236,8803.75
Nighthawk1,342,277175,8033.75
Borden968,168175,0035.94
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Moneta285,608149,25014.69
Crown (Hollinger)205,187138,33019.06
Stock745,074129,8565.00
Hugh–Pam577,651119,6045.94
Total (26 mines > 100,000 ounces)526,753,39276,810,3594.54
Total (all 62 mines)530,871,07677,551,5744.27
(source:http://http://www.geologyontario.mndm.gov.on.ca/mndmaccess/mndm_dir.asp?type=pub&id=OFR6374)

9Exploration
Prior to 2003, all exploration on the TWM area was carried-out by previous operators (as summarized in Item 6). Since then, exploration on the Timmins, Thunder Creek, and 144 Gap Deposits by LSG and Pan American has consisted primarily of diamond drilling (refer to Item 10).
Other exploration activities from 2003 to present include basic geological and structural mapping, prospecting, outcrop stripping, lithogeochemical sampling, and MMI soil geochemical surveys. Geophysical surveys including airborne magnetics as well as surface and downhole IP were also completed, along with various research projects. The most recent of these exploration activities (2013 to present) are summarized in Table 9.1. Some of the work has been contracted out to consultants, while other work has been done in tandem with universities in the form of sponsored academic studies.
Although exploration has been focused on diamond drilling at TWM, these campaigns have helped solidify the current level of geological understanding away from the main deposits and have provided the necessary framework in order to generate useful drill targets for advanced exploration of the TWM area.
Table 9.1: Summary of Significant Exploration Activities Conducted by LSG at the Timmins West Mine, 2013 – Present (Excludes Drilling)
YearActivityDescriptionComments
2013-2014Sponsorship of MSc Thesis Work: Characteristics of Syenite-Hosted Gold Mineralization in the Western Timmins CampAnalysis of ~200 core & grab samples (Thunder Creek and Highway-144 Projects)Completed thesis (R. Campbell, University of Western Ontario, 2014)
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2015High-Resolution Aerial Survey over the Thunder Creek/Highway-144 Trend
10 flights by UAV (drone) over 7.8km2 survey block.
Geo-referenced TIFF & JPEG digital ortho-photographs, 8cm resolution (Terrane Aerial Surveys, July 2015)
2015
Petrographic Study of the Highway-144 Gap Deposit:
Petrography of Representative Samples of Mineralization, Alteration and Shear Zones in the 144-Gap Deposit, Exclusive of Syenites, with Comparison to the Thunder Creek Rusk Zone
On-site core examinations. Thin section microscopy and analysis of ~30 core and underground grab samples.
Highway-144 Gap Deposit and Thunder Creek Deposits
Finalized internal report received Dec/15 (K. Ross and D. Rhys, 2015)
2015
Mapping & Drill Core Study of the Highway-144 Gap Deposit:
Structural Setting and Style of the 144 Gap Deposit and Other Areas: Observations from Drill Core, and Underground Exposures with Exploration Recommendations
On-site core examinations & underground mapping.
Highway-144 Gap Deposit, Thunder Creek, and Timmins Deposits
Finalized internal report received Dec/15 (D. Rhys, 2015)
2015-2016
Geophysical Surveys
(Thunder Creek/Highway-144 Trend)
185km line-cutting
184km MAG
169km IPower 3D IP
8km Gravity
15 core samples for baseline signatures
Internal reports and maps-sections for each of the work phases
(Abitibi Geophysics, Initial Report 15N037, 2015, Finalized report 15N049, 2016.)
2015-2016
Lithogeochemical Investigation of the Highway-144 Gap Deposit: Report on the Alteration and Geochemistry of the Gap Deposit, Timmins West Mine, Timmins, Ontario
On-site core examinations. Thin-section microscopy & major/trace element geochemistry for ~100 core samples from 8 drill holes
Progress report (Dr. R. Linnen and R. Campbell, Oct/2015)
Finalized internal report received Jan/16 (Dr. R. Linnen, 2016)
2016SGS Corescan Analysis of the 144 Gap DepositHyperspectral mineralogical analysis of 2 representative sections of core from the 144 Gap Deposit
Highway-144 Gap Deposit
Finalized internal report received Sep/16 (Brian Bennett, SGS and Ronell Carey, Corescan)
2016-2017Sponsorship of M.Sc. Thesis Work: Mineralogical and Geochemical Characterization of Gold Mineralization at the Highway-144 Gap DepositPetrographic and SEM microscopic studies on a suite of samples collected from 20 drill holes from 5 representative sections through the 144 Gap
In progress (L. Howitt, University of Western Ontario)
Internal progress presentation received Jul/16 (Dr. R. Linnen)
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2017-2018Sponsorship of M.Sc. Thesis Work: Trace Element Geochemistry and Nd-Sr Isotope Systematics of Scheelite from the Thunder Creek and 144 Gap Deposits, Timmins, Ontario: Implications for Timing and Genesis of Gold29 scheelite samples collected from the Thunder Creek and 144 Gap DepositsCompleted thesis (A. van Kessel, University of Western Ontario, 2018)
2018Steinert Ore Sorting Test Work of the 144 GapDual energy X-ray transmission and laser/3D camera sorting of 3 representative samples at 144 Gap
144 Gap
Finalized internal report received Feb/18 (Steinert)
2020-2021
Geophysical Surveys
(Timmins West Complex)
17 AMT stations placed in 2 lines from N-S through the TWC
Preliminary Internal Report and Presentation received Dec/20 (Quantec/MERC Partnership)
Internal progress presentation received Sept/21 (J. Ayer)
Note:    All drilling activities and relevant statistics are summarized in Item 10-Drilling.
10Drilling
10.1    Historic Drilling Summary
Between 1938 and 1980, 145 diamond drill holes totaling 27,622m were drilled on the Property. The information from this work is either missing, incomplete or unreliable and has not been used in the current LSG mineral resource estimate.
Between 1984 and 2002, diamond drilling on the Property was carried out by four operators, including Norex, Chevron, St. Andrew and Holmer. A total of 47,420 meters in 159 holes were completed during this period. All holes were drilled from surface and in reference to the same cut grid, oriented north-south, which was refurbished as required. Bradley Bros. Limited of Timmins contracted most of the drilling, using a variety of drill rigs. Most holes were NQ-size (47.6mm diameter core), except for 37 holes which were drilled using BQ rods (36.5mm diameter core). Core recoveries were consistently excellent and close to 100%. Drill hole direction and dips were monitored at regular intervals (mostly 50m spacing) using Sperry-Sun and EZ-Shot Reflex instruments. Casings were generally left in place and capped. The hole number was stamped on the cap or indicated by a labeled steel bar emplaced at the collar. All collars were subsequently surveyed by a qualified surveyor.
The majority of this drilling was directed towards initial mineral resource definition of the Timmins Deposit and is considered to be of sufficient quality to be used in the mineral resource estimates for the TWM. Details regarding collar and downhole surveys, core handling and logging protocols for the historical drill
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programs are noted in Item 11 and are further discussed in previous NI 43-101 technical reports (Darling et al, 2009; Powers, 2009). These reports are referenced in Item 27 and are filed on SEDAR.
Drilling on the Thunder Creek Deposit portion of the Property by previous operators (1942 to 1996) was sparse and very limited in nature. With missing, incomplete or unreliable information detailing the scope of work, these drill programs are considered insignificant and was not used in the current mineral resource estimate.
The drilling completed between 1984 and 2002 is summarized in Table 10.1. The table only includes drilling by previous operators which has been considered in the mineral resource estimates.
Table 10.1: Diamond Drilling by Previous Operators on the Timmins West Mine Property (1984-2002)
CompanyYearHolesMetres# Samples
Norex198441,465644
Chevron1987 – 1989317,8703,620
Holmer1996 – 200211436,74513,679
St. Andrew1999101,340667
Total:15947,42018,610
Note: Table only includes drilling by previous operators which has been considered in the LSG mineral resource estimates.
Refer to Figure 10.1 for surface diamond drill hole collar locations and traces plotted with respect to the surface projection of lithology and mineralization shapes.
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Figure 10.1: Surface Diamond Drilling relative to Vertical Projection of Generalized Resource Envelopes
figure101.jpg
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10.2    Drilling on the Timmins Deposit Property by Lake Shore Gold
Procedures for surface diamond drill holes completed by LSG are similar to those described above for previous operators. Drilling was mostly contracted to Bradley Bros. Limited, and a minor portion was contracted to Orbit Garant Drilling Services of Val-d’Or. NQ-size holes were standard, except where it was necessary to reduce to BQ rods due to difficult ground conditions. Drill core recoveries were consistently excellent. For deep drilling, numerous branches off the pilot holes were completed using steel wedges. Drill hole orientations were closely monitored using EZ-Shot tests at 30m to 50m intervals, and downhole gyro surveys were regularly done for deep holes. Most of the holes were initially not cemented, but in 2007 and 2008, cement grout was pumped down all of the casings which were relatively easy to access. Further details are discussed in Item 11.
Underground diamond drilling on the Timmins Deposit started in October 2008, and was initially carried out by Forage Azimuth Inc. of Rouyn-Noranda, followed by Boart-Longyear from April 2009 to April 2013, and has since been contracted to Orbit Garant of Val-d’Or. Various electric drills are being used and the majority of underground holes are BQ in diameter (36.5 mm diameter core), NQ-sized rods are occasionally used on deeper holes, and HQ-sized rods are typically used for service holes. LTK-48 and AQTK core is provided when air-powered drills are used. Further details are discussed in Item 11.
When LSG optioned the property from Holmer in 2003, the initial main focus of the surface exploration program was diamond drilling the down-plunge and along-strike extensions of the Footwall and Ultramafic Zones. As underground access became available (starting in 2008), the priorities gradually shifted towards infill drilling and stope definition drilling. This work led to the preparation of a mineral resource estimate in 2004, reported in accordance with NI 43-101 standards for disclosure, followed by updates in 2006, 2009, 2011, 2012, and 2014 (also NI 43-101 compliant).
For highlights of prior (2003 – 2013) surface and underground drill programs completed by LSG on the Timmins Deposit portion of the Property please refer to LSG’s previous technical report dated March 31, 2014. Recent drill campaigns are summarized as follows:
2014 to November 20, 2015: No surface exploration drilling was carried out on the Property during this period. The primary focus of all underground drilling during this span (846 holes totaling 115,780m) remained directed towards upgrading the mineral resource base and stope definition. 502m of development was completed to establish a two-phase (Phase 1 = 271m, Phase 2 = 231m) drill platform on the 910L to allow for infill drilling of the Timmins Deposit down to approximately the 1,310L. Some holes drilled from this key platform extend beyond or outside of the current mineralization model to test for new mineralized zones. An important drill drift was also developed in the upper part of the Timmins Deposit on the 480L in order to complete stope definition drilling and improve confidence in large mineral reserve blocks that reside in footwall-style mineralized zones (e.g. FW2A) for future detailed mine planning. A small number of holes were also collared from this platform and directed to the north to test the down-plunge
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projection of vein-style zones from the Upper Mine. By the end of 2015, the ramp in the lower part of the mine was advancing towards the 1000L.
Of the total underground drilling, a modest portion (17,036m) was allocated to test several exploration targets, including:
1) the up- and down-plunge extensions of the “Sediment Sub-Zones” (e.g. S1 and S2) as well as new targets along the northern limb of the TDFN structure at depth from the 790L East Exploration Drift (5,181m);
2) the down-plunge projection of the Main Zone from the 790L West Exploration Drift (4,167m);
3) east-west trending structures to the north, similar and sub-parallel to the gold-bearing Holmer Shear from the 790L S2 Access (1,848m); and
4) the key volcanic-sediment contact and associated structures between, and host to, the Timmins and Thunder Creek Deposits from the 830L Exploration Drift (5,840m).
Results of the underground exploration program were mixed with important alteration types and/or structures intersected in proximity to all intended targets, but few significant assays were returned. The most successful of these brief programs included the identification of several stacked shallow-dipping “Sediment Sub-Zones” (e.g. S6 and S7; refer to Figure 7.5) to the east of the main UM mineralized zones and immediately above the ultramafic-sediment contact in the TDFN structure (refer to Figure 7.4). These zones are interpreted to represent the down-plunge extension of the S1 and S2 type zones between the 890L and 970L, and are included in the current mineral resource estimate.
November 21, 2015 to April 19, 2021: The underground drilling conducted at the Timmins Deposit during this period continued to focus on upgrading the current mineral resources while concurrently completing stope definition drilling in support of the short and long term mine plan. The second objective was to test the down-plunge projection of the TDFN mineralized structure to the west and beneath the current mineral resources. The bulk of this drilling was completed with two electric drills. Infill and definition drilling was completed by one drill which operated from various drill platforms as level development was established while the second drill remained stationary on the 910L Exploration Drift targeting the lower D7, D8 and D9 mineralized zones. The D-Zones are interpreted as a series of mineralized extensional lenses offset from the main UM mineralized Zones at approximately the 930L. They occur along the north side of the ultramafic/pyroxenite contact and wraps around the limbs of the fold nose. This program was completed in July of 2017.
Key platforms for the infill drilling included diamond drill bays positioned at regular intervals off the west and east sides of the main ramp at the 950L, 970L, 1030L, 1070L, 1090L, 1110L, 1130L, 1150L, 1170L and 1210L. The main objective of these infill programs was to achieve a tight drill hole spacing sufficient for stope definition to support future mine planning.
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Extensive drilling from the 910L Exploration Drift continued through to August of 2017 targeting:
1) inferred mineral resources within various FW, UM and D Zones down to the 1350L; and
2) the down plunge projection of the main TDFN structure to the west and beneath the current mineral resource.
Another 2 holes plus 2 wedge holes from 910-242 (W1 and W2) were completed after May 15, 2017 for an additional 2,550m from the 910L platform. The total program once completed was 20 holes for 8,515m. Some of the holes drilled from this platform were also extended beyond the projected lithological models to test for new mineralized zones along trend.
Several smaller scale on-level programs were also completed during this period. While the majority of this drilling focused on infill and definition of stope blocks, programs were also implemented to evaluate and upgrade more recently identified styles and zones of mineralization (e.g. the S4 “Sediment Sub-Zone”). The S4 Zone is interpreted as part of a series of stacked shallow-dipping mineralized lenses which occur east of the main UM mineralized zones in close proximity to the ultramafic-sediment contact in the TDFN structure. Drilling completed from platforms on the 910L and 950L greatly improved definition of the S4 Zone and provided additional lithological information to help support the mine plan into 2017 and beyond.
A short program was also completed in the upper portion of the Timmins Deposit to evaluate the V3BL/V3BU Zones. The V3 Zones are interpreted as a series of sub-parallel, sediment hosted mineralized lenses that contain gold-bearing quartz + tourmaline stock work veining. They occur predominantly within and along the main contact between the mafic volcanic and sediment lithologic units in the upper Timmins Mine Deposit from 480L to 420L. Two platforms were utilized on the 450L and 420L. Short holes oriented north into the sediment contact generated encouraging results improving the overall grade and confidence in the V3 series of zones in the upper mine.
By November of 2018 the lower mine ramp had advanced to the 1170L where the main access drift and a 110m long hangingwall exploration drift were cut. These platforms were well suited for both infill and exploration drilling at this horizon. Infill drilling from the 1170L access drift targeted the D2 and D2_D blocks for short, medium and longer term mining plans. The hangingwall exploration drift provided a good platform for drilling of the D3, D7 and FW_8 zones down to the 1410L (top of the FW_8 zone) with a view to increasing the confidence in these areas. The decision was made to drive another exploration drift at the 1250L, approximately 80 vertical metres below the 1170L.
By mid-April 2021 the lower mine ramp had advanced down to the ventilation access drift between the 1230L and 1250L. Once the ramp is driven down to the 1250L, diamond drilling plans include both level infill drilling targeting the D3, D10, and D2 zone stope blocks similar to the above mentioned 1170L drilling, as well as an extensive exploration program targeting the D7, D8 and D9 zones at depth from a planned 228m exploration drift platform.
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Additional surface exploration on the Timmins Deposit property included a total of 3,839m (4 holes) of drilling targeting the down-plunge extension of the TDFN where prior results from underground proved mineralization extending at least 150m below the prior mineralization limit (LSG Press Release dated January 9, 2017). One deep master (parent) surface hole and one up-dip wedge (daughter) hole were successfully completed with a second up-dip wedge in progress to test the structure located near the 1,850L. One failed down-dip wedge was abandoned due to technical difficulties. Results to date from this program indicate significant alteration, local veining and sulphides on both the north and south limbs of the fold but with mostly low grade gold values. Additional possible follow-up drilling is being planned to improve the geological model and better constrain mineralization potential at depth.
Since the database cutoff date of the last technical report on the Timmins Deposit (May 15, 2017), a total of 750 new holes (86,819m) have been drilled and 51,184 assays have been received as of the effective date of this Report.
An annual breakdown of the number of diamond drill holes and metres drilled is provided in Table 10.2 and additional drilling statistics are included in Table 10.3.
10.3    Drilling on the Thunder Creek Property by Lake Shore Gold
Diamond drilling on the Thunder Creek Deposit initially focused on testing a historic surface exposure of the mineralized zone and various structures interpreted from geophysics, as well as following up on MMI and grab sample anomalies. This led to the discovery of the Rusk and Porphyry Zones, which quickly became the main focus of all diamond drilling on the Thunder Creek property.
Surface drilling on the Thunder Creek Deposit by LSG began in 2003 and amounts to a total of 115,837m completed in 209 holes to date. This figure includes pastefill holes, service holes, and ten grout holes completed in order to minimize underground water infiltration. The work was mostly contracted to Bradley Bros. Ltd. (Timmins), with shorter stints also contracted to Norex Drilling (Porcupine) and Orbit Garant (Val d’Or). All drilling protocols were the same as those implemented by LSG and described for the Timmins Deposit property (see Item 10.2). The only difference is that the cut grid lines are rotated, with the predominant drilling direction at an azimuth of 130 degrees. Further details are included in Item 11.
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Underground drilling on the Thunder Creek Deposit began in 2010 and remains ongoing. Access is provided via ramp as well as the TWM shaft and by connecting ramps on two separate levels. Operations are combined with the TWM, and drilling contractors, drill specifications, and protocols are therefore the same at both locations.
For highlights of prior (2003-2013) surface and underground drill programs completed by LSG on the Thunder Creek Deposit portion of the TWM, please refer to the previous technical report dated March 31, 2014. Recent drill campaigns are summarized as follows:
2014 to November 23, 2015: No surface exploration drilling has been carried out on the Thunder Creek property since late 2012. The main focus of all underground drilling during this period (466 holes totaling 49,454m) was aimed towards stope definition and upgrading the mineral resource classification. Drill holes are occasionally extended beyond and outside of the mineral resource envelopes in order to test for new mineralization. Because platforms for infill and stope definition drilling at Thunder Creek are highly dependent on level access development in order to achieve appropriate drill densities (~10m to 12m centers), the majority of this drilling is intimately linked with the mine operations. By the end of 2015, the ramp in the lower part of the mine had advanced down to the 785L; meanwhile the ramp in the upper mine had reached the 485L.
Of the total underground drilling, a minor portion (5,350m) was allocated to test two main exploration targets, including:
1) the potential expansion of the Porphyry Zone mineral resource to depth (below the 815L) from the 765L Main Access and 710L Exploration Drift (2,891m); and
2) the key volcanic-sedimentary contact and Rusk Shear Zone structure to the southwest of the Thunder Creek Deposit from the 710L Exploration Drift (2,459m).
The former program returned favorable results but drill angles limited the depth to which drilling could reach, and only short expansion of the mineralization along the southern margin of the Porphyry Zone was possible. The latter program identified intermittent areas of intense alteration with localized pyrite mineralization associated with sporadic syenite dykes and quartz-carbonate veining, but did not return any significant assays.
November 24, 2015 to April 19, 2021: The primary focus of underground drilling at Thunder Creek during this period was directed towards stope definition drilling down to the 850L and up to the 370L. The second objective was to test the Porphyry and Rusk Zones below the 850L.
Drilling at Thunder Creek in early 2016 focused on testing the potential down-dip extensions of both the Porphyry and Rusk Zones, from various crosscuts on the 785L. This drill campaign confirmed the continuity of the Rusk Shear Zone down to the 850L, and based upon these results, supplemental programs were initiated out of the 850L Ramp and the 850L in 2017. The objective of this additional drilling was to further
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investigate the potential for down-dip extensions below the 850L. Select drill holes were extended beyond and outside of current mineralization shapes in an effort to test for ancillary ore along the margins of the deposit and to identify potential new gold bearing structures. The 850L program indicated the potential for small lenses of gold mineralization within the Rusk Shear Zone down to the 970L.
An exploration drift in the hangingwall of the Thunder Creek Deposit was completed in July of 2017. This platform was centrally located within the Thunder Creek Deposit off the 850L and 100m to the north of the Rusk hangingwall structure. This platform provided favorable drill angles and allowed drilling down to approximately the 1250L targeting the down-dip extensions of the Rusk and Porphyry Zones, as well as exploring for any potential new mineralized structures at depth. Overall, drilling from this exploration drift did not return any significant assays; only occasional narrow, sporadic mineralized lenses. A total of 4,277m were completed over 7 drill holes targeting the deep Rusk and Porphyry extensions. One flat hole (TC850-119) was drilled to the south at 334 degrees azimuth testing for new zones. Only narrow 2m-10m pillowed and massive mafic volcanic flows were intersected throughout the length of the hole with local fault zones and structural shear zones marking the contacts of certain units. This hole also did not return any significant values.
Three large infill programs were initiated from the 450L, 415L and 395L during the November 24, 2015 to May 15, 2017 reporting period. Using various level accesses and crosscuts as drill platforms, these programs were designed to infill and define the Rusk and Porphyry mineralization shapes between the 485L and 370L and test the potential for extensions along the eastern and western flanks. A total of 234 holes (13,098m) were drilled during these campaigns to improve drill density and better define potential mining blocks up to the 370L.
Since the database cutoff date of the last technical report on the Thunder Creek Deposit (May 16, 2017), A total of 215 holes were drilled over 24,832m. These were completed in the remainder of 2017, intermittently throughout 2018 and concluding with a small program of 642m over 7 drill holes targeting short term planned stopes on the 625L and 730L. Of this total, 21,571 assays have been received as of the effective date of this Report.
An annual breakdown of the number of surface and underground diamond drill holes and metres drilled is provided in Table 10.2, and additional statistics are compiled in Table 10.3.
10.4    Drilling on the 144 Gap Property by Lake Shore Gold
Diamond drilling on the 144 Trend initially focused on testing the southwestern strike extension of the Thunder Creek Rusk Zone, interpreted from regional geology and geophysical signatures. This led to the discovery of the 144 Gap Deposit, which quickly became the central focus of all diamond drilling efforts on the Property.
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Surface drilling on the 144 Trend by LSG began in 2010 and amounts to a total of 248,284m completed in 306 holes to date. The work was largely contracted to Bradley Bros. Ltd. (eventually Major Drilling, Timmins) and Norex Drilling (Porcupine). All drilling protocols were the same as those implemented by LSG and described for the Timmins Deposit property (see Item 10.2). Similar to Thunder Creek, the only difference is that the cut grid lines are rotated, with the predominant drilling direction at an azimuth of 130 degrees. Further details are included in Item 11.
Underground drilling at the 144 Gap Deposit began in 2015 and remains ongoing. Access is provided from a 1,317m ramp and exploration drift developed to the southwest from the 765L at Thunder Creek. The exploration drift is established in the hanging wall to the Gap Deposit mineralization at an approximate elevation of 820m below surface (820L). Operations are combined with the Timmins and Thunder Creek Deposits, and drilling contractors, drill specifications, and protocols are therefore consistent with these locations.
Highlights of the various surface and underground drill programs completed on the 144 Gap property by LSG are summarized as follows:
2010:    Nine surface diamond drill holes (totaling 4,693m) were completed, targeting a 500m southwestern strike extension of the Thunder Creek Rusk Zone. A broad ‘step-out’ hole (TC10-85A) intersected a 20m alteration zone containing porphyry dykes, quartz veining, and increased pyrite mineralization similar in nature to the Thunder Creek Deposit. Favorable assay results were returned, including 8.07 g/t over 2.0m (LSG Press Release dated July 26, 2011), affirming the possibility of continued gold mineralization along the interpreted southwest extension of the Rusk Shear Zone along the Thunder Creek-144 Trend.
2011-12: LSG initiated a surface exploration program in 2011 to continue assessing the mineralization potential of the southwestern strike extension to the Thunder Creek Deposit. Three prospective targets (144 Gap, 144 North, and 144 South areas) were selected within a broad alteration/deformation corridor that is traceable by interpreted regional geophysical surveys over approximately 6km to the south-southwest from Thunder Creek. A total of 39 holes including wedges and extensions of previously drilled holes (totaling 28,929m) were completed in these areas by the end of 2012. Six of these holes (including 1 extension) were collared within 1.6km of the Thunder Creek Deposit. Drill hole HWY-12-40 returned significant gold intercepts, including 13.54 g/t over 2.0m and 6.07 g/t over 3.0m (LSG Press Release dated January 21, 2013). This intersection, coupled with earlier hole TC10-85A, illustrated the potential extension of the favorable volcanic-sedimentary contact and associated structures through the largely unexplored 144 Gap area.
2013: No surface exploration drilling was carried out during this period.
2014-15: Surface drilling resumed in early September with the primary intention of following up on the encouraging results from the 2012 campaign. The first hole in the program (HWY-14-48), designed as a 125m undercut (down-dip) to drill hole HWY-12-40, intersected 5.37 g/t over 46.0m (LSG Press Release
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dated October 7, 2014) and became known as the discovery hole to the 144 Gap Deposit. A total of 158 holes and wedges (totaling 149,841m) were completed by the end of 2015 with up to 6 to 7 drills operating for much of the period. This drilling quickly extended the 144 Gap Deposit dimensions to a minimum of 400m along strike and 400m of vertical height (LSG Press Release dated April 27, 2015). In addition, drilling up to 250m further southwest along the Thunder Creek-144 Trend identified another mineralized zone, here termed the 144 Gap Southwest (“144 SW”) Zone (HWY-15-116: 3.30 g/t over 40.8m, including 6.12 g/t over 9.5m; LSG Press Release dated June 25, 2015). More work is required to better constrain this new discovery, which could be easily accessible by extending the 144 underground exploration drift. Late in the year, surface drilling in the 144 Gap area focused on assisting with the mineral resource definition portion of the program, targeting the upper parts of the 144 Gap Deposit which could not be properly tested from the underground drift due to poor drilling angles.
New gold mineralization was also identified with surface drilling in the 144 South target area, which occurs approximately 1.6km to the southwest of the 144 Gap Deposit (HWY-15-142: 3.11 g/t over 19.1m and 5.38 g/t over 3.6m; HWY-15-142W2: 4.27 g/t over 7.3m; HWY-15-148: 9.59 g/t over 3.0m; LSG Press Release dated October 28, 2015). These key intercepts are located approximately 100m to 200m northeast and 450m below previously reported results from HWY-12-45 and HWY-11-28 (LSG Press Release dated January 21, 2013).
An underground exploration program was initiated in late May 2015 from drill cutouts in the 144 Ramp, driven to the southwest from the 765L at Thunder Creek. A total of 3,033m were completed in 3 drill holes, targeting the largely untested “Thunder Creek Stock”, which lies between the Thunder Creek and 144 Gap Deposits, to the southeast of the main mineralized trend. Each of the holes intersected varying widths of the thick porphyry unit with localized zones of increased alteration, veining, and mineralization. A follow-up program was highly recommended in order to complete a fourth planned flat hole extending across the eastern portion of the syenite intrusion towards a possible iron formation (projected from surface magnetic data) and test for mineralized flat-lying to shallow vein sets in proximity to anomalous assay results returned during the 2015 campaign.
The 144 underground drilling quickly shifted focus to the mineral resource definition portion of the program as soon as platforms became available in the hanging-wall drift (820L) in mid to late July 2015. With the exploration drift completed in early October, a total of 40,488m of infill drilling was completed by year end, towards an initial mineral resource estimate for the 144 Gap Deposit released by LSG in a previous technical report filed on SEDAR as of March 9, 2016.
January 11, 2016 to April 19, 2021: Drilling at the 144 Gap Deposit continued throughout 2016 and early 2017 from both surface and the 144 underground drill drift on the 820L with the key objective of converting a portion of the inferred mineral resources to an indicated category.
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Surface drilling at the 144 Gap Deposit included a total of 14,935m of infill drilling (26 holes) and 1,907m of extensional drilling (2 holes). The infill program was focused on upgrading the confidence classification mainly in the upper parts of the deposit that could not be reached from the underground drill platform with a few holes testing the bottom of zones to the east. Exploration drilling tested a potential easterly mineralized plunge with wide step out holes targeting approximately 50m to 100m to the east and to depth.
Underground drilling at the 144 Gap Deposit carried into 2016 with six electric drills operating from various drill cutouts along the 144 Exploration Drift on the 820L. The majority of drilling targeted the East Porphyry Zone, where the first production stopes were planned, and was designed to achieve a minimum drill spacing of 7-15m. The remainder of drilling was completed in the west and central areas of the deposit at 12.5m to 25m centers. The 2017 program was reduced to 1-2 drills and focused mainly on upgrading the confidence classification in the western portion of the deposit as well as definition of stope blocks within the East Porphyry Zone that were included in the 2017-2018 mine plan.
2017-18: Underground drilling in years 2017 and 2018 continued targeting the 144 Gap Zone primarily from the established 820L drill drift, as well as platforms on the 805L, 835L and 890L. Generally these drill programs were short, 2-4 drill hole programs designed to infill at adequate spacing for mineralization modelling and grade estimation of the deposit. They were designed to cover both the East and West Porphyry Zones to a much tighter 5-10m spacing on oriented sections at an azimuth of 130 degrees. This was done to provide tighter data on the highly variable north - south trending bands and inclusions of mafic volcanics within the 144 Gap Deposit.
2019: Drilling in 2019 followed similar strategies than the drill programs in 2017 and 2018. They were designed as infill drilling from the 775L, 925L and 960L. One major change in 2019 was the development of a drill bay in the footwall of the East Porphyry Zone on the 890L that allowed both infill and extensional drilling of the East Porphyry Zone laterally and at depth. Prior to this, drilling from the drill drift on the 820L could not intersect the lower extents of the East Porphyry Zone at proper angles between the 960 and 995L.
2020-21: Drilling continued to focus on infill and expansion of both the East and West Zones of the deposit using 2 to 3 electric drills. Drilling was conducted from several platforms on the 995L and tested the lower extents East Porphyry mineral resource. In late in 2020, a drill platform was established from the 715L ramp and provided drill coverage for most of the upper extents of the East and West Porphyry Zones above the 745L. Another platform was established on the 925L that allowed infill drilling of the West Zone down to below the 995L.
Infill and definition drilling completed at the 144 Gap Deposit during this period generally conformed to previous results but indicated a high degree of variability in gold grades over short distances. This variability is due to the gold being hosted within multiple small scale structures with varying orientation, limited continuity and with local nuggety coarse free gold.
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Underground exploration drilling was also executed from the 820L Exploration Drift with a total of 4,269m (7 holes) completed during the period. Three holes (totaling 1,752m) were drilled to follow-up on anomalous results in the Thunder Creek Stock target area from the 2015 campaign. Varying widths of porphyry were intersected with localized alteration, veining and sulphides but mainly low gold values. Four holes (totaling 2,517m) were also completed to test stratigraphic contacts and structural features between the 144 Gap and South West Zones. The overall program was highly beneficial in terms of advancing the geological model near the 820L but returned mostly low grade assay values.
Since the database cutoff date of the last technical report on the 144 Gap Deposit (January 11, 2016), a total of 1,108 new holes (132,203m) have been drilled and 184,102 assays have been received as of the effective date of this report.
Additional surface exploration on the property included a total of 17,202m (24 holes). Of this total, 13,638m (20 holes) targeted the 144 South Zone, located approximately 1.6km southwest of the 144 Gap Deposit, with exploration designed to extend mineralization surrounding a syenite porphyry previously identified from drilling in 2015 (described above). This campaign was successful in extending mineralization approximately 65m to the east and to depth as well as 50m to 150m to the west. Significant drill results reported at depth include 5.87 g/t over 8.6m (incl. 10.78 g/t over 4.0m) near the 875L and new intercepts defining extensions of mineralization to the west include 7.1 g/t over 2.0m, 3.5 g/t over 3.2m, 27.53 g/t over 1.8m and 4.06 g/t over 7.7m (LSG Press Release dated January 9, 2017). Four additional wide step out holes (including 1 re-start) for 3,564m were also completed to test regional trends towards the new 144 Offset target area which is located up to 1km to the west-northwest of the 144 South Zone. Results to date indicate broad zones of intermittent deformation with locally intense alteration, veining and sulphides but low gold values.
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An annual breakdown of the number of surface and underground diamond drill holes and metres drilled is provided in Table 10.2 and additional drilling statistics are compiled in Table 10.3.
Table 10.2: Statistics on Diamond Drilling for Timmins West Mine Area by LSG (2003 - April 19, 2021)
PROPERTYYEARSURFACE HOLESMETRES (m)U/G HOLESMETRES (m)
TIMMINS DEPOSIT20035217,145 0 0
 20043717,959 0 0
 20055828,876 0
 20065428,099 00
 20071811,493 0
 2008687,729675,496
 2009129,82929626,006
 201031,73735046,315
 201131,02229540,878
 20120045564,134
 20130046247,677
 20140037950,729
 20150048465,432
 20160045343,134
20179
6,7181
49045,851
20180030233,323
201900241,875
20200015517,783
Jan 1st - April 19th, 2021
00365,009
 Subtotal:314130,6074,248493,642
     
144-GAP201073,812 0 0
 20112416,461 0
20121713,348 0
 201300 0
 20142222,527 0 0
 2015136
127,3142
17241,458
 201647
29,9022
36681,951
20175
3,9342
35542,108
20180025739,147
20190023029,159
20200017217,290
Jan 1st - April 19th, 2021
00738,871
 Subtotal:258217,2981,625259,984
THUNDER CREEK200361,667
 2004134,370
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 200562,359
 20072210,6500
 2008167,921 0
 20093525,860 0
 20101811,07118324,123
 20115634,42524451,774
 20123315,83938261,513
 201341,67523821,349
 20140029835,403
 20150020316,662
 20160033824,411
20170037632,953
201800926,279
2019007642
20200000
Jan 1st - April 19th, 2021
0000
 Subtotal:209115,8372,361275,109