Kokkus Au Project

  • Agreement to acquire 100% of Kokkus project in exchange for:
    • US$500,000 (already paid)
    • US$550,000 due on Dec 2019
    • US$1,750,000 due on March 2020
  • Geological model considered similar to massive Russian gold deposit, Sukhoi Log (Polyus, 63 Moz Au) with folded, silicified-sericitised back shale, very little pyrite and 70-75% free gold in the oxide zone and 47% free gold in the sulphide zone (gravity tests 2019)
  • Metallurgical testwork indicates potentially 50%-70% gravity recovery for both oxide and sulphide
  • Current internal (JORC) resource estimates:
    • “indicated”: 4.2 Mt at 1.4 g/t Au for 177.3 koz contained Au;
    • “inferred”: 0.8 Mt at 0.8 g/t Au for 20 koz contained Au; and
    • “total”: 5.1 Mt at 1.3 g/t Au for 197 k oz contained Au @ 0.3g/t COG
  • Current resource estimates based on only 5% (250 m) of the total length of silicification and sericitised black shales (6,000 m) already mapped and  sampled now available for drilling
  • Estimated current strike length of at least 3.4km of good Au mineralization, which could generate an Au resource of 2.6+ million oz Au
  • Total resource potential believed to be 5+ million oz Au over 7 separate Au zones
  • Existing power lines on license area

Kokkus – ASTER Analysis

Advanced Spaceborne Thermal Emission and Reflection Radiometer (ASTER) data showing Sericite Alteration

Current mapping has identified intensely folded very altered banded shale & chert with a possible mylonitic structural controls  on Au mineralization

The folds show internal tight isoclinal folds within a larger fold structure The Au mineralization is contained in silicified banded shales & chert layers with qtz + py veins along the banding

Potential width 50-150m, and combined length 8km. The mineralization mapped corresponds directly with ASTER alteration anomalies

Analysis using SWIR spectrometer and hand held XRF machines by the Uni of St Andrews on some Kokkus core, (2 samples)  with significant Au values, confirmed that the main alteration associated with Au mineralization was strong silica and illite alteration, exactly what was seen on the ASTER images

Kokkus – Geological Map

Kokkus– 2018 Drilling Results

  • Verification and exploration holes allowed SMG to convert the Kokkus resource to 5.1 Mt at 1.3 g/t Au for 197 k oz contained Au @ 0.3g/t COG
  • Gravity test work using a Knellson Concentrator, indicates 70%  Au recovery from the oxide zone and 47% recovery from the sulphide zone
  • This 188,000 oz Au resource represents only 5% of the overall length of mineralization

KOKKUS PROJECT
Drilling Results Summary

Hole From To Thickness (m) Au g/t*
Criteria: >3m thick >0.3g/t and max 2m internal waste. *Included intervals > 3m Thickness and average >0.5g/t Au
KK_18_DD_006 12,00 30,00 18,00 1,18
KK_18_DD_006 65,20 73,00 7,80 1,24
KK_18_DD_006 76,00 110,00 34,00 0,66
KK_18_DD_006 139,00 143,00 4,00 0,90
KK_18_DD_006 160,00 164,00 4,00 0,70
KK_18_DD_006 172,00 177,00 5,00 0,64
KK_18_DD_005 23,00 107,10 84,10 2,26
*Includes 47,00 60,00 13,00 7,16
KK_18_RC_004 58,00 80,00 22,00 0,49
KK_18_DD_008 126,00 132,00 6,00 2,01
KK_18_DD_008 142,00 147,00 5,00 0,85
KK_18_DD_008 152,00 162,00 10,00 1,24
Hole From To Thickness (m) Au g/t*
Criteria: >3m thick >0.3g/t and max 2m internal waste. *Included intervals > 3m Thickness and average >0.5g/t Au
KK_18_DD_004 50,00 57,40 7,40 0,94
KK_18_DD_004 104,00 126,00 22,00 1,48
KK_18_DD_004 145,00 154,00 9,00 3,28
KK_18_DD_004 160,00 169,10 9,10 0,57
KK_18_DD_009 11,00 36,10 25,10 0,49
KK_18_DD_009 46,50 49,50 3,00 1,63
KK_18_DD_009 63,50 69,50 6,00 1,74
KK_18_DD_009 74,00 77,00 3,00 0,95
KK_18_DD_002 15,10 19,10 4,00 0,76
KK_18_DD_002 46,00 58,90 12,90 0,71
KK_18_DD_002 126,40 143,40 17,00 0,41
KK_18_DD_007 36,00 48,00 12,00 0,30
KK_18_DD_007 52,00 59,00 7,00 0,76
KK_18_DD_007 68,00 124,00 56,00 0,53
KK_18_DD_007 142,00 147,00 5,00 0,31

Kokkus – Work Program / Estimated Timeline to Production

Drilling on Kokkus 1,2 & 3
  • 9,500m RC Drilling
  • 38 x 80m lines, covering a combined strike length of 3,000m
  • 2 holes per line (1 x 150m, 1x 100m)
  • 200m DDH drilling

2019

Q3 Q4
Infill Drilling on Kokkus 1, 2 & 3 Drilling on Kokkus 4, 5, 6 & 7
  • Target conversion of inferred resources to JORC indicated category
  • Minimum of 2 lines on each zone
  • Important to show mineralization for future conversion to mining lease

2020

Q1 Q2 Q3 Q4
2018 Drilling Results Complete Additional Analysis / Testing

Government Submissions
Targeting additional 2m oz Au JORC inferred resource Metallurgical Hydrological Geotechnical Local feasibility study Mining license application
Feasibility Study Targeted First Production
  • Completion of international -feasibility study
  • Targeting an average of 100,000 oz Au per year

2021

Q1 Q2 Q3 Q4
Financing / Construction
IPO / debt funding followed by project construction