Esgold working on 3-D geological model of Montauban

Executive Summary

• Esgold Corp. has partially completed a comprehensive 3-D geological model of its Montauban gold-silver project in Quebec, consolidating over 50 years of data into a single representation.
• The model suggests the Montauban deposit may be a continuous, district-scale volcanogenic massive sulphide (VMS) system with consistent gold, silver, zinc, and lead enrichment, analogous to major deposits like Broken Hill and Millenbach.
• The company highlights a "self-financed discovery model," leveraging cash flow from its near-term tailings reprocessing operation to fund future exploration without excessive dilution.

Key Details

• 3-D Model Development: Developed by Geomatic World Inc., the model integrates geological data, drilling records, and mine plans to create a modern 3-D representation of the Montauban project.
• Geological Interpretation: Mineralization appears to follow a system resembling a VMS deposit with consistent enrichment in gold, silver, zinc, and lead. It shares key geological features with Broken Hill (Australia) and Millenbach (Noranda, Que.), though the deposit is not of the same age or geological context.
• Key Geological Highlights:
  • Continuous Zones: Multiple gold- and silver-rich sulphide horizons extend beyond historical mine workings, aligned with regional fault structures open along strike and at depth.
  • Structural Coherence: Mineralized lenses follow predictable structural trends and fold geometries, indicating a large-scale, multihorizon VMS system.
  • Digital Twin: The model integrates mineralized zones with historical tailings volumes, supporting near-term reprocessing cash flow and long-term exploration upside.
• Next Steps:
  • Seismic Survey: Expansion of the existing Ambient Noise Tomography (ANT) passive seismic program across the entire property to map deeper structures and potential feeder systems.
  • Data Digitization: Merging historical mine plans, underground workings, and regional geological data into the 3-D model.
  • Exploration Program: Finalizing a systematic exploration roadmap including stepout and infill drilling near the deposit and exploratory programs farther from known zones.
  • Permitting: Initiating the application process for permits for the next phase of exploration drilling.
• Operational Status: The Montauban mill building construction is complete, and the company is advancing sourcing and procurement of the Merrill-Crowe processing circuit. Production is anticipated in 2026.
• Qualified Person: Andre Gauthier, PGeo, reviewed and approved the technical content. Sampling was conducted for due diligence screening; independent verification and systematic work remain outstanding. No mineral resources or reserves are declared.

Notable Quotes

• Gordon Robb, CEO: "The Montauban model is the most significant technical milestone in the project's modern history. What was once seen as a series of small, isolated deposits now seems to emerge as a continuous, multilayered mineral system with dimensions not previously recognized at Montauban."
• Gordon Robb, CEO: "The continuity of mineralized horizons, structural alignment and metamorphic overprint identified in this model provide the geological backbone to explore Montauban as a true district. With our cash-flow-ready tailings operation and construction well advanced, we're uniquely positioned to self-fund exploration across the property and accelerate discovery without excessive dilution."