West Red Lake's Madsen produces 3,800 ounces Au in July

Executive Summary

• July 2024 production at the Madsen mine totaled 3,800 oz of gold, generating US$12 M (CAD 16.4 M) in revenue.
• Sill development delivered exceptionally high grades – low‑grade sills averaged 9.56 g/t Au and high‑grade sills 21.82 g/t Au, well above expectations.
• The company initiated two key ramp‑up projects (shaft renovation and cemented rock fill) to increase material handling capacity by 300–400 t/d and reduce waste haulage, supporting continued production growth.

Key Details

• July Production: 3,800 oz Au poured; 3,595 oz sold at US$3,320/oz.
• Mill Performance: Average recovery 94 %; processing 500–800 t/d.
• Ore Grade: Mined material averaged 8.9 g/t Au; blended mill feed ~5 g/t Au.
• Sill Grades (Weeks 26‑27):
• Low‑grade sill: 1,274 t @ 9.56 g/t Au (expected 1.5–3.5 g/t).
• High‑grade sill: 1,171 t @ 21.82 g/t Au.
• Stope Reconciliation: Tight drill spacing (7 m) yielded close match between predicted and actual grades/tonnage.
• Shaft Renovation – Phase 1 (to be completed FY 2025):
• New hoist rope, 5‑t skip, scrolls purchased; loading pocket on Level 11 being prepared.
• Expected capacity increase: additional 300–400 t/d of material to surface.
• Cemented Rock Fill (CRF) Project:
• Batch plant and operator mobilized in July; backfilling to start August.
• Historic stopes on Level 9 can accommodate >70,000 t of waste rock; additional voids up‑hole ~102,000 t.
• Future Outlook: Continued ramp‑up targeting higher daily tonnage and sustained gold ounces; positive grade surprises in sills expected to aid production targets.

Notable Quotes

• “July was a good month for Madsen… the mill achieved an average of 94‑percent recovery… material mined from sill access development carried gold grades well above expectation.” – Shane Williams, President & CEO
• “In July, we saw the short‑term resource model doing its job… higher‑grade sills really shone.” – Jill Christmann, Chief Geologist

The technical information has been reviewed and approved by qualified persons as required under NI 43‑101.