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NI 43-101 Technical Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

FEASIBILITY STUDY of the WASAMAC PROJECT

Rouyn-Noranda, Québec, Canada

Prepared for:

Monarques Gold Corporation Effective Date: December 1, 2018 Signature Date: December 3, 2018

By Qualified Persons:

Carl Caumartin, P. Eng. ................... BBA Inc. Alain Dorval, P. Eng....................... BBA Inc. John Henning, P. Eng. ................... BBA Inc. Richard Jundis, P. Eng. ................. BBA Inc. Luciano Piciacchia, P. Eng. ........... BBA Inc. Tudorel Ciuculescu, P. Geo. .......... Roscoe Postle Associates Inc.

Monarques Gold Corporation

NI 43-101 – Technical Report Wasamac Project – Feasibility Study

DECEMBER 2018 BBA Document No.: 6233002-000000-40-ERA-0001-R01

DATE AND SIGNATURE PAGE

This report is effective as of the 1st day of December 2018.

“Original signed and sealed” December 3, 2018

Carl Caumartin, P. Eng. BBA Inc.

Date


Alain Dorval, P. Eng. BBA Inc.

Date


John Henning, P. Eng. BBA Inc.

Date


Richard Jundis, P. Eng. BBA Inc.

Date


Luciano Piciacchia, P. Eng. BBA Inc.

Date


Tudorel Ciuculescu, P. Geo. Roscoe Postle Associates Inc.

Date

2020 Robert-Bourassa Blvd. Suite 300 Montréal, QC H3A 2A5 T +1 514.866.2111 F +1 514.866.2116

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Date: December 3, 2018

To: Monarques Gold Corporation And to: Alberta Securities Commission Autorité des marchés financiers (Québec) British Columbia Securities Commission Ontario Securities Commission And to: Toronto Stock Exchange

CONSENT of QUALIFIED PERSON – FILED BY SEDAR

I, Carl Caumartin, P. Eng., consent to the public filing of the technical report titled “Wasamac Project – Feasibility Study in Rouyn-Noranda, Quebec, Canada ” (the “Technical Report”) dated December 3, 2018 and prepared for Monarques Gold Corporation (“Monarques”) with the securities regulatory authorities referred to above.

I also consent to any extracts from or a summary of the Technical Report in the news release entitled “Monarques Gold’s Wasamac Feasibility Study Shows Positive Pre-Tax 23.6% IRR and Cash Costs of $720 per Ounce (US $550 per Ounce)” and dated December 3, 2018 (“News Release”).

I certify that I have read the News Release and it fairly and accurately represents the information in the sections of the Technical Report for which I am responsible.

Dated this 3rd day of December, 2018.

“Original signed”

Carl Caumartin, P. Eng.


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CERTIFICATE OF QUALIFIED PERSON

Carl Caumartin, P. Eng., MBA

This certificate applies to the NI 43-101 Technical Report for the Wasamac Project – Feasibility Study in Rouyn-Noranda, Québec, Canada prepared for Monarques Gold Corporation issued on December 3, 2018 (the “Technical Report”) and effective December 1, 2018.

I, Carl Caumartin, P. Eng., MBA, do hereby certify that:

I am a Geological Engineer currently employed as Director of Mining Engineering Group with BBA Inc. 1.located at 2020 Robert-Bourassa Blvd., Suite 300, Montréal, Québec, H3A 2A5, Canada.

I am a graduate of Queen’s University at Kingston, Ontario, Canada, where I obtained a B.Sc. Geological 2.Engineering; option Mining Exploration (1986). In 1994, I obtained a Master of Business Administration (MBA) from the Université de Sherbrooke, Quebec, Canada.

I am a member in good standing of the Ordre des Ingénieurs de Québec Engineers (OIQ) #45588. 3. I have over 25 years of international experience in the industry as a mining executive and consultant. I have 4.

extensive background in exploration, project management, feasibility studies and operations - open pit and underground – in a variety on geological and socio-political environments. I have conducted exploration and valuation work programs, estimated mineral resources and modeled reserves, reporting under NI 43-101 and AusIMM JORC standards.

I have read the definition of “qualified person” set out in the NI 43-101 – Standards of Disclosure for Mineral 5.Projects (“NI 43-101”) and certify that, by reason of my education, affiliation with a professional association, and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101.

I am independent of the issuer applying all the tests in Section 1.5 of NI 43-101. 6. I am responsible for the preparation of chapters 2, 3, 19, 21, 22, 23 and 24, and section 18.1. I am also 7.

responsible for the relevant portions of chapters 1, 25, 26, and 27 of the Technical Report. I personally visited the property that is the subject to the Technical Report on numerous occasions between 8.

June 2018 and October 2018. I have had no prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and the sections of the Technical Report for which I am responsible have been 10.

prepared in compliance with NI 43-101. As at the effective date of the Technical Report, to the best of my knowledge, information and belief, the 11.

sections of the Technical Report for which I am responsible contain all scientific and technical information that is required to be disclosed to make the portions of the Technical Report for which I am responsible not misleading.

Dated this 3rd day of December, 2018

“Original signed and sealed”

Carl Caumartin, P. Eng., MBA


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I, Alain Dorval, P. Eng., consent to the public filing of the technical report titled “Wasamac Project – Feasibility Study in Rouyn-Noranda, Quebec, Canada ” (the “Technical Report”) dated December 3, 2018 and prepared for Monarques Gold Corporation (“Monarques”) with the securities regulatory authorities referred to above.





Alain Dorval, P. Eng.


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I, Alain Dorval, P. Eng., do hereby certify that:

I am employed as an engineer and carried out this assignment for BBA Inc. – Consulting Firm in Engineering, 1.located at 2020 Boul. Robert-Bourassa, Suite 300, Montréal, Québec, Canada, H3A 2A5

I graduated with a Bachelor of Mining and Mineral Engineering degree from Université Laval (Québec, 2.Québec) in 1983.

I am a member in good standing of the Ordre des Ingénieurs du Québec (OIQ licence No. 196127). 3. I have worked as an engineer for a total of thirty-five (35) years since graduating from university in 1983. My 4.

expertise in mineral processing has been acquired with Mine Arnaud in Quebec, with Norda Stelo Inc., with Met-Chem Canada Inc. (now DRA), with CRM (now COREM) and with Minnova Inc. in Quebec. I have been a consulting process engineer for BBA Inc. since October 2017.

I have read the definition of “qualified person” set out in National Instrument 43 101/Regulation 43-101 5.(“NI 43-101”) and certify that by reason of my education, affiliation with a professional association (as defined in NI 43-101) and past relevant work experience, I fulfill the requirements to be a “qualified person” for the purposes of NI 43-101.

I am independent of the issuer applying all the tests in Section 1.5 of NI 43-101. 6. I am responsible for the preparation of chapters 13 and 17. I am also responsible for the relevant portions of 7.

chapters 1, 25, 26 and 27 of the Technical Report I did not personally visit the property that is the subject to the Technical Report. 8. I have not had prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and the sections of the Technical Report for which I am responsible have been 10.







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I, John Henning, P. Eng., consent to the public filing of the technical report titled “Wasamac Project – Feasibility Study in Rouyn-Noranda, Quebec, Canada ” (the “Technical Report”) dated December 3, 2018 and prepared for Monarques Gold Corporation (“Monarques”) with the securities regulatory authorities referred to above.





John Henning, P. Eng.


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This certificate applies to the NI 43-101 Technical Report for the Wasamac Project – Feasibility Study in Rouyn-Noranda, Québec, Canada prepared for Monarques Gold Corporation issued on December 3 2018 (the “Technical Report”) and effective December 1, 2018.

I, John Henning, P. Eng., do hereby certify that:

I am a Principal Rock Mechanic Engineer with BBA Inc. located at 10 Carlson Court, Suite 420, Toronto, 1.Ontario M9W 6L2, Canada.

I have a graduated with a Bachelor in Science (Geology) from McMaster University, Canada in 1982, a 2.Bachelor in Applied Science degree from University of Toronto (Geotechnical Engineering option) in 1985, and with M. Eng. (1998) and Ph.D. (2007) degrees in Mining Engineering (Rock Mechanics option) from McGill University, Canada.

I am a registered member of the Professional Engineers of Ontario (PEO #19284306) 3. I am a specialist geotechnical mining engineer with over 32 years of operational expertise in managing 4.

geotechnical risk across a wide range of rock conditioned in both underground and surface mines. I have performed and reviewed similar technical geotechnical evaluations at numerous locations within the Abitibi region of Quebec, in northern Ontario, as well as in Central and South America.


I am independent of the issuer applying all the tests in Section 1.5 of NI 43-101. 6. I am responsible for the preparation of section 16.2. I am also responsible for the relevant portions of 7.

chapters 1, 25, 26, and 27 of the Technical Report. I personally visited the property that is the subject to the Technical Report on September 12, 2018. 8. I have had no prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and the sections of the Technical Report for which I am responsible have been 10.







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I, Richard Jundis, P. Eng., consent to the public filing of the technical report titled “Wasamac Project – Feasibility Study in Rouyn-Noranda, Quebec, Canada ” (the “Technical Report”) dated December 3, 2018 and prepared for Monarques Gold Corporation (“Monarques”) with the securities regulatory authorities referred to above.





Richard Jundis, P. Eng.


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I, Richard Jundis, P. Eng., do hereby certify that:

I am a Senior Mine Engineer with BBA Inc. located at 2020 Robert-Bourassa Blvd., Suite 300, Montréal, 1.Québec H3A 2A5, Canada.

I am a graduate of McGill University in Montreal, Quebec, Canada, in 1999 with B.Eng (Co-op) in Mining 2.Engineering.

I am registered as an Engineer in the Province of Ontario, member of Professional Engineers of Ontario 3.(Member Number: 100048382).

I have worked in the mining industry for the past 18 years in mining companies (Vale, Syncrude Canada, 4.Barrick Gold, Goldcorp) in mine planning and project management roles; and, in consulting firms (Golder Associates, Deswik and BBA) as a mining consultant. I have worked on mining projects located in Canada, United States, Brazil, Argentina, Indonesia, and Morocco.


I am independent of the issuer applying all the tests in Section 1.5 of NI 43-101. 6. I am responsible for the preparation of chapters 15 and 16, with the exception of sections 16.2 and 16.3, and 7.

section 18.4. I am also responsible for the relevant portions of chapters 1, 25, 26 and 27 of the Technical Report.

I personally visited the Wasamac project property that is the subject to the Technical Report on July 11, 8.2018.

I have had no prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and the sections of the Technical Report for which I am responsible have been 10.







bba.ca




I, Luciano Piciacchia, P. Eng., consent to the public filing of the technical report titled “Wasamac Project – Feasibility Study in Rouyn-Noranda, Quebec, Canada ” (the “Technical Report”) dated December 3, 2018 and prepared for Monarques Gold Corporation (“Monarques”) with the securities regulatory authorities referred to above.





Luciano Piciacchia, P. Eng.


bba.ca




I, Luciano Piciacchia, P. Eng., do hereby certify that:

I am an engineer and the director of Waste Management with BBA Inc. located at 2020 Robert-Bourassa 1.Blvd., Suite 300, Montréal, Québec H3A 2A5, Canada.

I am a graduate of mining engineering from McGill University in 1981 and a Masters’ and Ph.D. focusing in 2.soil and rock geotechnics, also from McGill in 1983 and 1988.

I am a member of the order of engineers in, Quebec, Ontario, Newfoundland & Labrador, British Columbia 3.and Nunavut

I have over 30 years of experience in geotechnical engineering with a focus on mining. I have applied my 4.geotechnical / civil background to mine waste management, including waste rock, tailings and water.


I am independent of the issuer applying all the tests in Section 1.5 of NI 43-101. 6. I am responsible for the preparation of chapter 20, and sections 16.3, 18.2 and 18.3 as they relate to the 7.

tailings facility. I am also responsible for the relevant portions of chapters 1, 25, 26 and 27 of the Technical Report.

I personally visited the property that is the subject to the Technical Report on June 21 and 22, 2018. 8. I have had no prior involvement with the property that is the subject of the Technical Report. 9. I have read NI 43-101 and the sections of the Technical Report for which I am responsible have been 10.






RPA 55 University Ave. Suite 501 | Toronto, ON, Canada M5J 2H7 | T +1 (416) 947 0907 www.rpacan.com




I, Tudorel Ciuculescu, M.Sc., P. Geo., consent to the public filing of the technical report titled “Wasamac Project – Feasibility Study in Rouyn-Noranda, Quebec, Canada ” (the “Technical Report”) dated December 3, 2018 and prepared for Monarques Gold Corporation (“Monarques”) with the securities regulatory authorities referred to above.





Tudorel Ciuculescu, M.Sc., P. Geo.

RPA 55 University Ave. Suite 501 | Toronto, ON, Canada M5J 2H7 | T +1 (416) 947 0907 www.rpacan.com




I, Tudorel Ciuculescu, M.Sc., P. Geo., do hereby certify that:

I am Senior Geologist with Roscoe Postle Associates Inc. located at Suite 501, 55 University Ave Toronto, ON, M5J 2H7.

I am a graduate of University of Bucharest, Romania, with a B.Sc. degree in Geology in 2000 and University of Toronto, Toronto, Ontario, Canada, with a M.Sc. degree in Geology in 2003.

I am registered as a Professional Geologist in the Province of Ontario (Reg. #1882). I have worked as a geologist for a total of 15 years since my graduation. My relevant experience for the

purpose of the Technical Report is:

• Preparation of Mineral Resource estimates. • Over 5 years of exploration experience in Canada and Chile.

I have read the definition of “qualified person” set out in the NI 43-101 – Standards of Disclosure for Mineral Projects (“NI 43-101”) and certify that, by reason of my education, affiliation with a professional association, and past relevant work experience, I fulfill the requirements to be a qualified person for the purposes of NI 43-101.

I am independent of the issuer applying all the tests in Section 1.5 of NI 43-101. I am responsible for the preparation of Chapters 4 to 12, 14 and 23. I am also responsible for the relevant

portions of chapters 1, 25, 26, and 27 of the Technical Report. I personally visited the property that is the subject to the Technical Report on September 29, 2017. I have prepared a previous Technical Report dated October 25, 2017 on the property that is the subject of the

Technical Report. I have read NI 43-101 and the sections of the Technical Report for which I am responsible have been

prepared in compliance with NI 43-101. As at the effective date of the Technical Report, to the best of my knowledge, information and belief, the







DECEMBER 2018 i

TABLE OF CONTENTS

1. SUMMARY ......................................................................................................................................... 1-11.1 Contributors .............................................................................................................................. 1-1 1.2 Key Project Outcomes ............................................................................................................. 1-3 1.3 Property Description and Ownership ....................................................................................... 1-3 1.4 Land Tenure ............................................................................................................................. 1-4 1.5 Property History........................................................................................................................ 1-5 1.6 Geology and Mineralization ...................................................................................................... 1-7 1.7 Exploration and Drilling ............................................................................................................ 1-7 1.8 Data Verification ....................................................................................................................... 1-8 1.9 Interpretation, Geological and Resources Model ..................................................................... 1-9 1.10 Mineral Processing and Metallurgical Testing ......................................................................... 1-9 1.11 Mineral Resource Estimate .................................................................................................... 1-11 1.12 Mineral Reserve Estimate ...................................................................................................... 1-12 1.13 Mining Methods ...................................................................................................................... 1-13

1.13.1 Overview ................................................................................................................................. 1-13 1.13.2 Mine Hydrogeology ................................................................................................................. 1-13 1.13.3 Rail-Veyor® Integrated Top Down Long Hole Stoping Method Description ............................. 1-13 1.13.4 Mine Design ............................................................................................................................ 1-14 1.13.5 Development Schedule ........................................................................................................... 1-14 1.13.6 Production Rate ...................................................................................................................... 1-15 1.13.7 Production Plan ....................................................................................................................... 1-15 1.13.8 Electrical Distribution and Networks ........................................................................................ 1-15 1.13.9 Permanent Mine Pumping Network ......................................................................................... 1-15 1.13.10 Ventilation ............................................................................................................................... 1-15

1.14 Project Infrastructure .............................................................................................................. 1-16 1.15 Environmental and Permitting ................................................................................................ 1-17 1.16 Capital and Operating Costs Estimates ................................................................................. 1-18

1.16.1 Capital Costs ........................................................................................................................... 1-18 1.16.2 Operating Costs ...................................................................................................................... 1-20

1.17 Project Economics ................................................................................................................. 1-22 1.18 Project Schedule and Organization ....................................................................................... 1-25 1.19 Interpretations and Conclusions ............................................................................................. 1-27 1.20 Recommendations ................................................................................................................. 1-28



DECEMBER 2018 ii

2. INTRODUCTION ................................................................................................................................ 2-12.1 Monarques Gold Corporation ................................................................................................... 2-1 2.2 Basis of Technical Report ........................................................................................................ 2-1 2.3 Report Responsibility and Qualified Persons ........................................................................... 2-2 2.4 Effective Dates and Declaration ............................................................................................... 2-4 2.5 Sources of Information ............................................................................................................. 2-5

2.5.1 General ..................................................................................................................................... 2-5 2.5.2 BBA Inc. .................................................................................................................................... 2-6 2.5.3 Roscoe Postle Associates Inc. .................................................................................................. 2-8 2.5.4 Rail-Veyor® ................................................................................................................................ 2-8

2.6 Outotec ..................................................................................................................................... 2-8 2.7 Site Visits .................................................................................................................................. 2-9 2.8 Currency, Units of Measure, and Calculations ....................................................................... 2-10 2.9 Acknowledgement .................................................................................................................. 2-10

3. RELIANCE ON OTHER EXPERTS ................................................................................................... 3-13.1 Introduction ............................................................................................................................... 3-1 3.2 Mineral Tenure and Surface Rights ......................................................................................... 3-1 3.3 Taxation .................................................................................................................................... 3-1

4. PROPERTY DESCRIPTION AND LOCATION ................................................................................. 4-14.1 Location and Land Tenure ....................................................................................................... 4-1 4.2 Mineral Rights .......................................................................................................................... 4-2 4.3 Royalties and Other Encumbrances ........................................................................................ 4-3 4.4 Surface Rights .......................................................................................................................... 4-3 4.5 Permitting ................................................................................................................................. 4-3 4.6 Environmental Liabilities .......................................................................................................... 4-3

5. ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY ............................................................................................................................................................ 5-1

5.1 Accessibility .............................................................................................................................. 5-1 5.2 Climate ..................................................................................................................................... 5-1 5.3 Local Resources....................................................................................................................... 5-1 5.4 Infrastructure ............................................................................................................................ 5-1 5.5 Physiography ............................................................................................................................ 5-2

6. HISTORY ........................................................................................................................................... 6-16.1 Historical Mineral Resource Estimates .................................................................................... 6-3



DECEMBER 2018 iii

7. GEOLOGICAL SETTING AND MINERALIZATION .......................................................................... 7-17.1 Regional Geology ..................................................................................................................... 7-1 7.2 Local and Property Geology ..................................................................................................... 7-1 7.3 Mineralization ........................................................................................................................... 7-4

8. DEPOSIT TYPES ............................................................................................................................... 8-1

9. EXPLORATION ................................................................................................................................. 9-1

10. DRILLING ........................................................................................................................................ 10-110.1 Drilling Programs .................................................................................................................... 10-1 10.2 Drill Hole Surveys ................................................................................................................... 10-3 10.3 Core Recovery and RQD Data ............................................................................................... 10-3

11. SAMPLE PREPARATION, ANALYSES AND SECURITY ............................................................. 11-111.1 Core Logging and Sampling Procedures ............................................................................... 11-1 11.2 Sample Preparation and Assaying Procedures ..................................................................... 11-1 11.3 Density Measurements .......................................................................................................... 11-2 11.4 Quality Assurance/Quality Control Procedures ...................................................................... 11-3

11.4.1 2011 QA/QC results ................................................................................................................ 11-4 11.4.2 2012 QA/QC results .............................................................................................................. 11-12

12. DATA VERIFICATION ..................................................................................................................... 12-112.1 Database ................................................................................................................................ 12-1

13. MINERAL PROCESSING AND METALLURGICAL TESTING ...................................................... 13-113.1 Historical Metallurgical Data ................................................................................................... 13-1

13.1.1 Exploration Project Testwork Program .................................................................................... 13-1 13.1.2 Preliminary Economic Assessment (“PEA”) Testwork Program .............................................. 13-1

13.2 Trade-off Studies .................................................................................................................... 13-4 13.3 Feasibility Study Testwork ..................................................................................................... 13-5

13.3.1 Feasibility Study Sample Selection and Compositing ............................................................. 13-5 13.3.2 Head Grades and Mineralogical Analysis of Master Composites .......................................... 13-10 13.3.3 Silver Grade Determination ................................................................................................... 13-13 13.3.4 Comminution Testwork ......................................................................................................... 13-13 13.3.5 Leaching Testwork ................................................................................................................ 13-17 13.3.6 Cyanide Destruction Testwork .............................................................................................. 13-20 13.3.7 Thickening Testwork ............................................................................................................. 13-22 13.3.8 Filtration Testwork ................................................................................................................. 13-24



DECEMBER 2018 iv

14. MINERAL RESOURCE ESTIMATE ................................................................................................ 14-114.1 Mineral Resource Database ................................................................................................... 14-2 14.2 Geological Interpretation ........................................................................................................ 14-2 14.3 Underground Development and Stopes ................................................................................. 14-3 14.4 Descriptive Statistics .............................................................................................................. 14-6 14.5 Capping of High Grades ......................................................................................................... 14-6 14.6 Compositing ......................................................................................................................... 14-10 14.7 Variography and Trend Analysis .......................................................................................... 14-11 14.8 Density ................................................................................................................................. 14-13 14.9 Block Model .......................................................................................................................... 14-15 14.10 Interpolation Strategy ........................................................................................................... 14-15 14.11 Drilling Campaigns Resource Support ................................................................................. 14-16 14.12 Block Model Validation ......................................................................................................... 14-18 14.13 Classification ........................................................................................................................ 14-22 14.14 Cut-off Grade ........................................................................................................................ 14-24 14.15 Sensitivity to Cut-Off Grade ................................................................................................. 14-24 14.16 Comparison with Previous Resource Estimate .................................................................... 14-27

15. MINERAL RESERVE ESTIMATES ................................................................................................. 15-115.1 Mineral Reserves Calculation Methodology ........................................................................... 15-1 15.2 Mineral Reserves Statement .................................................................................................. 15-7

16. MINING METHODS ......................................................................................................................... 16-116.1 Introduction ............................................................................................................................. 16-1 16.2 Rock Engineering ................................................................................................................... 16-3

16.2.1 Historic Mining Practices ......................................................................................................... 16-3 16.2.2 Rock Strength ......................................................................................................................... 16-4 16.2.3 In Situ Stress ........................................................................................................................... 16-5 16.2.4 Rock Mass Characterization ................................................................................................... 16-6 16.2.5 Rock Mass Jointing ................................................................................................................. 16-7 16.2.6 Anticipated Rock Mass Behaviour ........................................................................................... 16-8 16.2.7 Stope Dimensioning ................................................................................................................ 16-9 16.2.8 Stand-off Distance ................................................................................................................. 16-11 16.2.9 Twin Drift Stability ................................................................................................................. 16-12 16.2.10 Dilution Estimates ................................................................................................................. 16-12 16.2.11 Ground Support ..................................................................................................................... 16-13



DECEMBER 2018 v

16.2.12 Estimation of Backfill Strength Requirements ....................................................................... 16-16 16.2.13 Crown Pillar Stability ............................................................................................................. 16-16

16.3 Hydrogeology ....................................................................................................................... 16-16 16.4 Mine Design ......................................................................................................................... 16-17

16.4.1 Main Zone ............................................................................................................................. 16-18 16.4.2 Zone 1 and Zone 2 ................................................................................................................ 16-19 16.4.3 Zone 3 and Zone 4 ................................................................................................................ 16-20 16.4.4 Mine Design Criteria .............................................................................................................. 16-20

16.5 Mining Methods .................................................................................................................... 16-21 16.5.1 Rail-Veyor® System ............................................................................................................... 16-24 16.5.2 Stope Design ......................................................................................................................... 16-28 16.5.3 Drill and Blast Design ............................................................................................................ 16-29

16.6 Cemented Backfill ................................................................................................................ 16-35 16.7 Production Schedule ............................................................................................................ 16-35

16.7.1 Mine Sequencing .................................................................................................................. 16-36 16.7.2 Production Plan ..................................................................................................................... 16-37

16.8 Mine Services ....................................................................................................................... 16-39 16.8.1 Electrical Services ................................................................................................................. 16-39 16.8.2 Communication Network ....................................................................................................... 16-39 16.8.3 Permanent Mine Pumping Network ....................................................................................... 16-39 16.8.4 Process Water ....................................................................................................................... 16-42

16.9 Mine Ventilation .................................................................................................................... 16-50 16.9.1 Fresh Air Demand ................................................................................................................. 16-50 16.9.2 Design Basis ......................................................................................................................... 16-51 16.9.3 Ventilation System Development Stages .............................................................................. 16-52

16.10 Underground Mine Equipment ............................................................................................. 16-60 16.10.1 Operating Parameters and Equipment Performance ............................................................ 16-60 16.10.2 Production Requirements ...................................................................................................... 16-62 16.10.3 Mining Equipment List ........................................................................................................... 16-63

16.11 Mine Personnel .................................................................................................................... 16-65 16.11.1 Operators and Maintenance Personnel ................................................................................. 16-65 16.11.2 Supervision and Technical Services ..................................................................................... 16-67



DECEMBER 2018 vi

17. RECOVERY METHODS .................................................................................................................. 17-117.1 Process Plant Design Criteria ................................................................................................ 17-3

17.1.1 Throughput Capability ............................................................................................................. 17-3 17.2 Process Plant Facilities Description ....................................................................................... 17-4

17.2.1 Crushing, Storage and Reclaim .............................................................................................. 17-4 17.2.2 Grinding Circuit ....................................................................................................................... 17-4 17.2.3 Leaching.................................................................................................................................. 17-5 17.2.4 Adsorption-desorption-Recovery ............................................................................................. 17-6 17.2.5 Cyanide Destruction Circuit and Tailings Treatment ............................................................... 17-8 17.2.6 Reagents Area ........................................................................................................................ 17-9 17.2.7 Refining Area and Gold Room ................................................................................................ 17-9 17.2.8 Plant Process Control ........................................................................................................... 17-10 17.2.9 Process Plant Support Services ............................................................................................ 17-10

17.3 Energy, Water and General Services .................................................................................. 17-10 17.3.1 Energy ................................................................................................................................... 17-10 17.3.2 Water .................................................................................................................................... 17-11 17.3.3 Consumable Requirements ................................................................................................... 17-13

18. PROJECT INFRASTRUCTURE ...................................................................................................... 18-118.1 Wasamac Site Surface Infrastructure .................................................................................... 18-1

18.1.1 Site Preparation and Pad ........................................................................................................ 18-3 18.1.2 Site Access Road, and Site Security ....................................................................................... 18-6 18.1.3 Tailings Pipe Service Road ..................................................................................................... 18-6 18.1.4 Process Plant .......................................................................................................................... 18-6 18.1.5 Rail-Veyor® Dump Loop and Crushing Building ...................................................................... 18-7 18.1.6 Ore Storage and Reclaim Tunnel ............................................................................................ 18-9 18.1.7 Concentrator ......................................................................................................................... 18-10 18.1.8 Reagents Tank and Park....................................................................................................... 18-11 18.1.9 Mine Administrative Building and Mine Dry ........................................................................... 18-14 18.1.10 Warehouse ............................................................................................................................ 18-14 18.1.11 Fuel Storage and Dispensing ................................................................................................ 18-14 18.1.12 Potable Water ....................................................................................................................... 18-14 18.1.13 Domestic Sewage and Sanitary System ............................................................................... 18-15 18.1.14 Site Lighting .......................................................................................................................... 18-15 18.1.15 Electrical Substation and Power Line .................................................................................... 18-15



DECEMBER 2018 vii

18.2 Tailings Management Facility ............................................................................................... 18-16 18.2.1 Tailings Storage Facility Location .......................................................................................... 18-16 18.2.2 Tailings Handling Methodology ............................................................................................. 18-18 18.2.3 Tailings Deposition Strategy .................................................................................................. 18-20 18.2.4 Tailings Reclamation Strategy ............................................................................................... 18-25 18.2.5 Tailings Pipe Bench and Access Road ................................................................................. 18-28 18.2.6 Stability Analysis for TSF and Related Infrastructure ............................................................ 18-31 18.2.7 Tailings Filtration Building ..................................................................................................... 18-32 18.2.8 Truck Shop ............................................................................................................................ 18-34

18.3 Water Management .............................................................................................................. 18-34 18.3.1 Water Management Strategy ................................................................................................ 18-35 18.3.2 Project Watersheds ............................................................................................................... 18-36 18.3.3 Operational Water Balance and Flux Diagrams .................................................................... 18-38 18.3.4 Environmental Design Flood and Basins Sizing .................................................................... 18-40 18.3.5 Design of the Ditches Surrounding the TSF .......................................................................... 18-44 18.3.6 Waste Water Management, Treatment & Recycling ............................................................. 18-45

18.4 Wasamac Mine Site - Underground Infrastructure ............................................................... 18-46 18.4.1 Mine Air Intake and Heating .................................................................................................. 18-46 18.4.2 Backfill Plant Cement Discharge and Raise .......................................................................... 18-47 18.4.3 Underground Garage and Mobile Equipment Shop .............................................................. 18-49 18.4.4 Underground Fuel and Lube ................................................................................................. 18-51 18.4.5 Underground Explosives and Detonators Storage ................................................................ 18-51 18.4.6 Underground Refuge ............................................................................................................. 18-53 18.4.7 Dewatering and Pumping Stations ........................................................................................ 18-53 18.4.8 Process Water System .......................................................................................................... 18-55 18.4.9 Ventilation Raises & System ................................................................................................. 18-56 18.4.10 Underground Paste Fill Mixing Plant and Distribution ........................................................... 18-58 18.4.11 Underground Electrical Distribution ....................................................................................... 18-59

19. MARKET STUDIES AND CONTRACTS ......................................................................................... 19-119.1 Introduction ............................................................................................................................. 19-1 19.2 Market Studies ....................................................................................................................... 19-1 19.3 Gold Price Projections ............................................................................................................ 19-1 19.4 Gold Doré Sales ..................................................................................................................... 19-2



DECEMBER 2018 viii

20. ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT ............ 20-120.1 Environmental Studies and Issues ......................................................................................... 20-1

20.1.1 Environmental Studies ............................................................................................................ 20-1 20.1.2 Environmental Issues .............................................................................................................. 20-2

20.2 Waste Rock, Ore, Tailings and Water Management Strategy ............................................... 20-3 20.2.1 Waste Rock Management ....................................................................................................... 20-3 20.2.2 Ore Management .................................................................................................................... 20-4 20.2.3 Tailings Management .............................................................................................................. 20-4 20.2.4 Water Management ................................................................................................................. 20-5

20.3 Legal Aspects and Permitting ................................................................................................ 20-6 20.3.1 Federal .................................................................................................................................... 20-6 20.3.2 Provincial ................................................................................................................................. 20-8 20.3.3 City of Rouyn-Noranda .......................................................................................................... 20-11

20.4 Social and Communities Issues ........................................................................................... 20-12 20.5 Closure and Rehabilitation ................................................................................................... 20-12

20.5.1 Concepts ............................................................................................................................... 20-12 20.5.2 Cost Estimates ...................................................................................................................... 20-16

21. CAPITAL AND OPERATING COSTS ............................................................................................. 21-121.1 Capital Cost Summary and Basis .......................................................................................... 21-1

21.1.1 Type and Class of Estimate .................................................................................................... 21-1 21.1.2 General Direct Capital Costs ................................................................................................... 21-4 21.1.3 Indirect Costs .......................................................................................................................... 21-6 21.1.4 Contingency ............................................................................................................................ 21-7 21.1.5 Owner’s Costs ......................................................................................................................... 21-7 21.1.6 Exclusions ............................................................................................................................... 21-8 21.1.7 Assumptions ............................................................................................................................ 21-8 21.1.8 Initial Fill .................................................................................................................................. 21-8

21.2 Operating Costs ................................................................................................................... 21-12 21.2.1 Summary ............................................................................................................................... 21-12 21.2.2 Basis of Operating Cost Estimate ......................................................................................... 21-13 21.2.3 Underground Mining .............................................................................................................. 21-14 21.2.4 Process Plant ........................................................................................................................ 21-16 21.2.5 Tailings and Water Management .......................................................................................... 21-20 21.2.6 General and Administration ................................................................................................... 21-21

21.3 Closure and Rehabilitation Costs ......................................................................................... 21-22



DECEMBER 2018 ix

22. ECONOMIC ANALYSIS .................................................................................................................. 22-122.1 Valuation Methodology ........................................................................................................... 22-1 22.2 Assumptions and Basis .......................................................................................................... 22-3 22.3 Gold Production...................................................................................................................... 22-5 22.4 Pre-production and Sustaining Costs .................................................................................... 22-6 22.5 Royalties ................................................................................................................................. 22-6 22.6 Taxation .................................................................................................................................. 22-6 22.7 Financial Analysis Summary .................................................................................................. 22-7 22.8 Production Costs .................................................................................................................. 22-10 22.9 Sensitivity Analysis ............................................................................................................... 22-11

23. ADJACENT PROPERTIES.............................................................................................................. 23-123.1 Francoeur ............................................................................................................................... 23-1 23.2 Lac Fortune ............................................................................................................................ 23-1 23.3 Aldermac ................................................................................................................................ 23-1 23.4 RM Nickel ............................................................................................................................... 23-2

24. OTHER RELEVANT DATA AND INFORMATION .......................................................................... 24-124.1 Project Execution Plan ........................................................................................................... 24-1

24.1.1 Project Organisation ................................................................................................................ 24-1 24.1.2 Construction Management ...................................................................................................... 24-3

24.2 Project Execution Schedule ................................................................................................... 24-3

25. INTERPRETATION AND CONCLUSIONS ..................................................................................... 25-125.1 Overview ................................................................................................................................ 25-1 25.2 Data verification and Mineral Resources ............................................................................... 25-1 25.3 Metallurgy and Processing ..................................................................................................... 25-3

25.3.1 Metallurgical Testwork ............................................................................................................ 25-3 25.3.2 Recovery Method .................................................................................................................... 25-4

25.4 Mineral Reserves ................................................................................................................... 25-4 25.5 Mining Methods ...................................................................................................................... 25-5 25.6 Environmental Studies and Rehabilitation ............................................................................. 25-8 25.7 Infrastructure & TMF .............................................................................................................. 25-9 25.8 Capital and Operating Costs ................................................................................................ 25-10 25.9 Indicative Economic Results ................................................................................................ 25-11 25.10 Project Risks and Opportunities ........................................................................................... 25-12



DECEMBER 2018 x

26. RECOMMENDATIONS .................................................................................................................... 26-126.1 Summary ................................................................................................................................ 26-1 26.2 Geology, Resources and Exploration .................................................................................... 26-2 26.3 Underground Mining ............................................................................................................... 26-3 26.4 Metallurgical Testwork and Process Plant ............................................................................. 26-4 26.5 Processing Plant Infrastructures ............................................................................................ 26-4 26.6 Tailings, Waste Rock and Water Management ...................................................................... 26-4 26.7 Environment and Permitting ................................................................................................... 26-7 26.8 Proposed Work Program ........................................................................................................ 26-8

27. REFERENCES ................................................................................................................................. 27-127.1 Mineral Resources and Geology ............................................................................................ 27-1 27.2 Mining Methods ...................................................................................................................... 27-3 27.3 Recovery Methods ................................................................................................................. 27-4 27.4 Project Infrastructure .............................................................................................................. 27-4 27.5 Environment ........................................................................................................................... 27-5

APPENDICES

APPENDIX 1: Feasibility level design drawings for the required infrastructure

APPENDIX 2: Drawings of the feasibility design for option 1

APPENDIX 3: Detailed results of the slope stability analysis



DECEMBER 2018 xi

LIST OF TABLES Table 1-1: Report contributors ................................................................................................................... 1-1

Table 1-2: Mining Titles – As of November 20, 2018 ................................................................................. 1-5

Table 1-3: Surface and underground diamond drill holes in Wasamac database ..................................... 1-8

Table 1-4: Mineral Resource Statement as of October 20, 2017 ............................................................ 1-12

Table 1-5: Mineral Reserves statement by category as of December 1, 2018 ........................................ 1-12

Table 1-6: Development Metres of LOM .................................................................................................. 1-14

Table 1-7: Project capital cost summary .................................................................................................. 1-19

Table 1-8: Project operating cost summary ............................................................................................. 1-21

Table 1-9: Employee summary – all areas – over LOM .......................................................................... 1-22

Table 1-10: Financial analysis summary .................................................................................................. 1-23

Table 1-11: Major project activity milestones ........................................................................................... 1-26

Table 1-12: Work program budget ........................................................................................................... 1-28

Table 2-1: Qualified Persons and areas of report responsibility ................................................................ 2-2

Table 4-1: Mining Titles .............................................................................................................................. 4-2

Table 6-1: Historical Gold Production – Wasamac Mines Ltd. .................................................................. 6-1

Table 11-1: CRM result statistics ............................................................................................................. 11-4

Table 11-2: Pulp duplicate statistics ...................................................................................................... 11-10

Table 11-3: Reject re-assaying statistics ............................................................................................... 11-10

Table 11-4: CRM nominal assay values ................................................................................................ 11-13

Table 11-5: 2012 CRM results summary ............................................................................................... 11-13

Table 12-1: Surface and Underground Diamond Drill Holes in Wasamac Database .............................. 12-1

Table 13-1: Summary of the grindability results....................................................................................... 13-2

Table 13-2: Gold deportment by gold mineral species and by occurrences .......................................... 13-11

Table 13-3: DSIMS results ..................................................................................................................... 13-11

Table 13-4: Master composite head grades .......................................................................................... 13-12

Table 13-5 Variability sample head grades ............................................................................................ 13-12

Table 13-6: Comminution testwork summary ........................................................................................ 13-13

Table 13-7: Leaching optimization testwork matrix ................................................................................ 13-17

Table 13-8: Cyanide destruction summary ............................................................................................ 13-21

Table 13-9: Static thickening results ...................................................................................................... 13-22



DECEMBER 2018 xii

Table 13-10: Dynamic/High-rate thickening results ............................................................................... 13-23

Table 13-11: Pulp rheology results ........................................................................................................ 13-24

Table 13-12: Pressure filtration results .................................................................................................. 13-24

Table 14-1: Mineral Resource Statement as of October 20, 2017 .......................................................... 14-1

Table 14-2: Drift height summary ............................................................................................................. 14-3

Table 14-3: Assay descriptive statistics ................................................................................................... 14-6

Table 14-4: Decile analysis ...................................................................................................................... 14-9

Table 14-5: Assay descriptive statistics – Gold and capped gold............................................................ 14-9

Table 14-6: Composites descriptive statistics ........................................................................................ 14-11

Table 14-7: Block model setup .............................................................................................................. 14-15

Table 14-8: Sample selection and search ellipse geometry .................................................................. 14-16

Table 14-9: Cut-off grade parameters and assumptions ....................................................................... 14-24

Table 14-10: Tonnage and grades by cut-off grade .............................................................................. 14-25

Table 14-11: Comparison with previous mineral resource estimate ...................................................... 14-28

Table 15-1: Cut-off grade calculation parameters ................................................................................... 15-1

Table 15-2: DSO Settings ........................................................................................................................ 15-2

Table 15-3: Mine stope types ................................................................................................................... 15-3

Table 15-4: Dilution by zone .................................................................................................................... 15-4

Table 15-5: Dilution grades by zone ........................................................................................................ 15-4

Table 15-6: Mine recovery factors ........................................................................................................... 15-5

Table 15-7: Mineral Reserves statement by category as of December 1, 2018 ...................................... 15-7

Table 16-1: Summary of laboratory testing of Wasamac core ................................................................. 16-5

Table 16-2: Wasamac stress assumptions .............................................................................................. 16-6

Table 16-3: Summary of rock mass characterization .............................................................................. 16-7

Table 16-4: Summary of hanging wall joint trends ................................................................................... 16-8

Table 16-5: Standard recommended ground support ............................................................................ 16-14

Table 16-6: Recommended ground support for large infrastructure ...................................................... 16-14

Table 16-7 Lateral development design criteria ..................................................................................... 16-21

Table 16-8: Rail-Veyor® installations breakdown by year ...................................................................... 16-27

Table 16-9: Rail-Veyor® drive station design criteria ............................................................................. 16-27

Table 16-10: Stope design parameters .................................................................................................. 16-28



DECEMBER 2018 xiii

Table 16-11: Summary of parameters of the five types of stope at Wasamac ...................................... 16-28

Table 16-12: Maximum PPV for building located less than 1 km from an underground mine ............... 16-29

Table 16-13: Drill productivity and powder factor for each type of stope ............................................... 16-30

Table 16-14: Drill and blast summary .................................................................................................... 16-33

Table 16-15: Summary of production by year ........................................................................................ 16-36

Table 16-16: Ore production by year ..................................................................................................... 16-38

Table 16-17: Ore production by zone .................................................................................................... 16-38

Table 16-18: List of underground mines with estimated production start dates .................................... 16-42

Table 16-19: List of required equipment during full production .............................................................. 16-42

Table 16-20: List of required equipment during development production ............................................. 16-43

Table 16-21: Pressure reducing system design..................................................................................... 16-44

Table 16-22: Mobile equipment list for the Wasamac Project ............................................................... 16-50

Table 16-23: K-Factors .......................................................................................................................... 16-51

Table 16-24: Velocities ........................................................................................................................... 16-52

Table 16-25: Monthly operating parameters .......................................................................................... 16-61

Table 16-26: Net productive operating hours by equipment and location ............................................. 16-62

Table 16-27: Equipment list over LOM .................................................................................................. 16-64

Table 16-28: Operators and maintenance personnel list ....................................................................... 16-66

Table 16-29: Supervision, management and technical services personnel .......................................... 16-68

Table 17-1: Process design criteria ......................................................................................................... 17-3

Table 18-1: Trucking option required equipment ................................................................................... 18-19

Table 18-2: Conveyor option main required equipment (2 alternatives) ................................................ 18-19

Table 18-3: CAPEX and OPEX Estimation for analyzed options and scenarios ................................... 18-19

Table 18-4: Produced tailings and designed TSF capacity ................................................................... 18-23

Table 18-5: Progressive reclamation and net surfaces to be managed at the TSF .............................. 18-25

Table 18-6: Options 1 and 2 - MTO for a 8 m wide corridor .................................................................. 18-30

Table 18-7: Options 1 and 2 - MTO for a 12 m wide corridor ................................................................ 18-31

Table 18-8: Shear strength parameters used in slope stability analysis ............................................... 18-31

Table 18-9: Results for slope stability analysis ...................................................................................... 18-32

Table 18-10: Design criteria of ditches at the TSF site .......................................................................... 18-34

Table 18-11: Normal hydrological scenario – Operational water balance output - Concentrator retention basin .................................................................................................................................. 18-39



DECEMBER 2018 xiv

Table 18-12: Normal hydrological scenario – Operational water balance output - TSF retention basin ........ ........................................................................................................................................... 18-40

Table 18-13: Time evolution of surfaces in the TSF area according to rehabilitation schedule ............ 18-41

Table 18-14: Design volume of the concentrator retention basin .......................................................... 18-42

Table 18-15: Design volume of the tailings management area ............................................................. 18-42

Table 18-16: Hydrological parameters of the northern ditch .................................................................. 18-44

Table 18-17: Hydraulic parameters of the northern ditch ...................................................................... 18-44

Table 18-18: Hydrological parameters of the southern ditch ................................................................. 18-45

Table 18-19: Hydraulic parameters of the southern ditch ...................................................................... 18-45

Table 18-20: Temperatures .................................................................................................................... 18-47

Table 18-21: Total head for each submersible pump ............................................................................ 18-53

Table 18-22: Dewatering pump system ................................................................................................. 18-54

Table 18-23: Total head and pipe lengths for dewatering system ......................................................... 18-55

Table 21-1: Blended crew rates per discipline based on “ACCQ - Annexe B2” ...................................... 21-2

Table 21-2: Labour productivity loss ratio ................................................................................................ 21-4

Table 21-3: Process plant pre-production capital costs ........................................................................... 21-6

Table 21-4: Work Breakdown Structure ................................................................................................... 21-9

Table 21-5: Capital cost estimate contr

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