Scottie starts FS after phase 2 ore sorting results

Executive Summary

• Scottie Resources Corp. has launched a Feasibility Study (FS) for its 100%-owned Scottie gold mine project, led by Tetra Tech Inc., targeting completion in Q2 2027.
• The company confirmed successful Phase 2 ore sorting results, validating the Direct-Ship Ore (DSO) strategy which eliminates the need for a conventional processing plant and tailings facility, significantly reducing capital costs and environmental footprint.
• X-ray transmittance (XRT) technology was selected over X-ray fluorescence (XRF) for the FS due to superior recovery curves and logistical advantages (75mm particle size compatibility with the Stewart bulk terminal).

Key Details

• Feasibility Study Scope: The FS will evaluate a high-margin DSO operation producing a gold-bearing concentrate for shipment to Asian smelters. The development plan envisions initial production from a shallow open pit at the Blueberry zone, followed by underground mining from both Blueberry and the historic Scottie gold mine.
• Ore Sorting Technology: XRT was selected for the FS. Phase 2 tests showed XRT has an advantage over XRF at the optimal operating range of 50% to 65% mass pull to sorter product (35% to 55% mass rejection).
• Recovery Metrics: The XRT sorter can recover 82% to 92% of the gold when accepting 50% to 65% of the mass as sorter product.
• Sample Data: Phase 2 tests used composite samples (~260 kg each) from the Blueberry open pit, Blueberry underground, and Scottie underground, based on the May 2025 Mineral Resource Estimate (MRE).
• Grade Context: Gold grades in the Phase 2 study were lower than the 2025 PEA (e.g., 3.17 g/t Au vs. 7.71 g/t Au for the open pit), yet recoveries remained strong.
• Logistics: The proposed XRT plant will produce DSO material at negative 75 mm particle size, which is favorable for loading at the Stewart bulk terminal compared to 100 mm material.
• Next Steps: A Phase 3 production-scale sample will be taken in spring 2025 using drill core from the 2025 season, guided by a mine plan. This sample will be tested at the Tomra facility in Germany.
• PEA Economics (Context): The previously released PEA outlined a base case DSO project with an after-tax NPV (5%) of $215.8M to $668.3M (at $2,600-$4,200/oz Au), initial capital costs of $128.6M, and a payback period of 1.7 years.

Notable Quotes

• "This marks another important step forward for the Scottie gold mine project. Ore sorting is an important component of our DSO strategy, and optimizing this process is key to maximizing the payability structure under our offtake agreement with Ocean Partners," stated Thomas Mumford, president and chief executive officer of Scottie.