Kobada Gold Project, Mali

Definitive Feasibility Study

Mine Model Summary (After-tax)
LOM Tonnage Ore Processed	t(000)	45,028
LOM Feed Grade Processed	g/t	0.868
Production Period	Years	16
LOM Gold Recovery	%	95.6%
LOM Gold Production	oz(000)	1,202
Gold Price	US$/oz	1,750
Revenue	US$mln	2,102
Total Initial Capital Cost (Including Contingency)	US$mln	165.9
LOM Operating Costs	US$/oz	881
Discount Rate	%	5%
Discounted Payback Period	Years	3.91
Project Net Cash	US$mln	325.7
AISC	US$/oz	972
NPV	US$mln	355
IRR	%	37.6%

The mine plan targets higher grade ore zone at the early phase of the project to feed into the process plant in order to produce 100,000 oz per annum for the first 10 years, and thereafter lower production output as the grade drops and stockpiles are treated. Over the life of the project, 45 Mt of ore will be mined and delivered to the processing facility. Stripping ratio of 3.5:1 over LOM

Key Project Metrics Sensitivities to Gold Price
		Average Gold Price (US$/oz)
		1,488	1,575	1,750	1,925	2,013
NPV @ 5% (After Tax)	US$mln	191	246	355	465	520
IRR	%	23%	28%	38%	47%	52%
Cash Flow Payback	Years	3.87	3.22	2.33	1.76	1.55

Mineral Resource & Reserve Estimates

Resource Classification	Tonnage (Mt)	Grade (g/t)	Contained Gold (kg)	Contained Gold (koz)
Measured	21.40	0.83	17,784	572
Indicated	40.15	0.88	35,425	1,139
Measured & Indicated	61.54	0.86	53,209	1,711
Inferred	42.03	1.06	44,564	1,433

Notes:

1. Pit constrained mineral resources were estimated at a cut-off grade of 0.35 g/t Au
2. Mineral resources were estimated using long-term gold price of US$1,800 per ounce of gold
3. Geological losses have been applied
4. MIneral Resources are stated as inclusive of Mineral Reserves
5. Mineral Resources are reported as total Mineral Resources and are not attributed
6. Numbers may not add due to rounding

Reserve Classification	Tonnage 1 (Mt)	Grade (g/t)		Contained Gold (Koz)
Proven2	20.26	0.81		499.1
Probable2	24.83	0.91		696.0
Proven & Probable2,3,4	45.14	0.87		1,195.1

Notes:

1. Numbers may not add due to rounding
2. Mineral reserves were estimated using a gold price of US$1,610 per ounce of gold
3. The cut-off grade used to estimate the Mineral Reserves was 0.35 g/t, with a dilution of 5% and mining recovery of 95%
4. Only laterite, saprolite, transition and sulphide material from the Measured and Indicated Resource categories were considered for the Reserve Estimate

Exploration Potential

The Company intends to focus its activities on seeking to upgrade the existing resource through additional exploration, which may or may not include:

• regional geological techniques, including grab sampling, termite mound sampling, channel sampling and other known techniques;
• auger drilling;
• AC drilling;
• RC drilling; and
• diamond drilling.

A multi-year, multi-metre plan has been developed based upon the proposed budget, which includes an auger drilling programme (which is underway) on the contiguous exploration Faraba Permit and Kobada Est Permit and a proposed reverse circulation drilling programme. The objectives of these exploration plans are as follows: 

A) Auger Drilling Programme on Faraba Permit and Kobada Est Permit

The auger drilling programme will be used to satisfy the license requirements of both the Faraba Permit and Kobada Est Permit and to target RC and DD drilling prioritisation targets. The auger hole drill programme has been designed based upon historical exploration which includes, but is not limited to:

• historical artisanal mining activity;
• outcrops of mineralisation on surface;
• soil and termite geochemical sampling;
• geophysical surveys; and
• trenching.

This programme is underway and on target for completion in Q3-2022, after which an updated report will be available. The programme targets known anomalies across the two exploration concessions, and drill holes and targets are provided in Figure 1, Figure 2, Table 1 and Table 2. 

Figure 1 - Target Generation and Drill Hole Layout for the Faraba Permit Targets

Table 1 - Number of Holes and Spacing for the Faraba Permit

Project	Target ID	No. of Auger Holes	Grid
Faraba	A	59	400 x 50
Faraba	B	42	400 x 50
Faraba	C	9	400 x 50
Faraba	D	18	400 x 50
Faraba	E	27	400 x 50
Faraba	F	41	400 x 50
Faraba	G	41	400 x 50
Faraba Total	7	237

Figure 2 - Target Generation and Drill Hole Layout for the Kobada Est Permit

Table 2 - Number of Holes and Spacing on the Kobada Est Permit

Project	Target ID	No. of Auger Holes	Grid
Kobada Est	A	63	200 x 50
Kobada Est	B	36	200 x 50
Kobada Est	C	27	200 x 50
Kobada Est	D	18	200 x 50
Kobada Est	E	54	200 x 50
Kobada Est	F	60	200 x 50
Kobada Est	G	58	200 x 50
Kobada Est	H	18	200 x 50
Kobada Est	I	18	200 x 50
Kobada Est	J	27	200 x 50
Kobada Est	K	17	400 x 50
Kobada Est	L	36	200 x 50
Kobada Est	M	27	200 x 50
Kobada Est	N	9	50
Kobada Est	O	18	400 x 50
Kobada Est	P	9	50
Kobada Est	Q	48	400 x 50
Kobada Est Total	17	543

This auger drilling, which commenced on 7 April 2022, started on the Kobada Est permit with a local Malian drilling company (Kounfaga Mining Services SARL) and has completed 6,878 m of drilling to date. The auger holes were laid out on fences either 200m apart or 400m apart with the holes being spaced 50m along the fence lines. All 345 holes to date were drilled vertically to a depth of 20m. The auger drillholes with a 4.4-inch spiral were sampled in 2m increments resulting in 3,439 samples being sent to the Bamako SGS Laboratory. Drilling is continuing to test areas of interest.

The focus of the auger drilling campaign was on previously identified target areas, based on the termite geochemical sampling and geophysical interpretation, in the larger Kobada Est permit. The aim was to delineate surficial anomalous geochemical areas (testing the top 20 m) and potentially identifying mineralised areas and evidence of structures. This would shed light on the potential of mineralisation on the Kobada Est permit along the Kobada Shear and assist in the sighting of the follow-on AC or RC drilling campaigns.

Figure 3 shows the auger drilling programme completed to date along the Kobada Est Shear and additional areas of interest with the geophysical interpretation as background.

Figure 3 - 2022 Auger Drilling Programme and Targets over the Kobada Est Permit

Targets A to F were testing the Kobada Est Shear for mineralisation while targets M, H, Q and L were testing soil geochemical anomalies and possible side shears. The best results are associated with the central portion of the shear with the southern and northern extents indicating auger geochemical anomalies above 40 ppb (green shaded polygons) with evidence of vein quartz (orange shaded polygons) being identified in the samples. This can be seen in Figure 4 and Figure 5 which have the TMI aeromagnetic as background and the interpreted Kobada Est Shear position as large black dots. The 40 ppb background grade is based on the histogram of 2,722 samples which indicates that the lower background grade is at 40 ppb.

Figure 4 - Auger Drilling Results over the Southern Portion of the Kobada Est Shear (Target A to D)

Figure 5 - Auger Drilling Results over the Northern Portion of the Kobada Est Shear (Target F)

Target E, the central portion of the Kobada Est Shear, is showing the best potential for elevated mineralisation and Target Q also returning some promising results.

Figure 6 shows the auger drilling collars for Target E with the 40 ppb geochemical anomalies, vein quartz presence and gold intersections. The 40 ppb anomaly is approximately 1,200 m by 500 m as a surface expression with a higher grade 0.5 g/t anomaly with an approximate strike of 720 m. Target E could still extend further north and also seems to widen based on the 40 ppb anomaly and the presence of vein quartz. This is evident in Figure 7.

Figure 6 - Auger Drilling Results over the Central Portion of the Kobada Est Shear (Target E)

Figure 7 - Target E Potential Northern Extension and Widening to the North

Figure 8 is an oblique view of the strip logs in Leapfrog software for Target E auger holes showing the elevated mineralisation above 40 ppb as disks. There is a possibility that the mineralisation is dipping to the west, but this still needs to be confirmed as the geology is still not understood. TRE geologists will be doing follow up surface geology work to assist in the geological interpretations.

Figure 8 - Oblique View of the Elevated Mineralisation in the Auger Drillholes in Target E

The significant gold intersections above 0.3 g/t are shown in Table 3. These intersections occur in four of the target areas (Target B, E, M and L). Target E has three auger drillholes that have elevated gold grades over 8m in two of the holes. The 0.3 g/t grade is based on the mineralisation halos that are used to constrain the Main Kobada estimation and used to delineate the geological model.

Table 3 - Significant Mineralised Intersections above 0.3 g/t Gold

Target	BHID	From (m)	To (m)	Grade (g/t)	Combined Mineralised Length (m)	Weighted Average Grade (g/t)
B	B-313	16	18	0.44	2	0.44
E	E-423	2	4	0.32	8	20.69
E	E-423	4	6	78.90
E	E-423	6	8	3.14
E	E-423	8	10	0.39
E	E-412	10	12	3.94	8	1.81
E	E-412	12	14	1.86
E	E-412	14	16	1.11
E	E-412	16	18	0.34
E	E-417	0	2	2.42	2	2.42
M	M-677	8	10	1.62	6	0.91
M	M-677	10	12	0.65
M	M-677	12	14	0.46
L	L-665	0	2	10.10	2	10.1

B) Multiple Additional Targets

Multiple additional targets have been identified at the Kobada Gold Project, and an exploration programme has been defined to target these areas. Initial priority targets are as follows (refer to Figure 10):

• Gosso Target (Phase 3) – Drilling to date has delineated 750m of continuous strike in this shear zone. The intention is to drill step out and infill drilling holes to seek to convert the drilling into an Inferred Mineral Resource. Future drill programmes will test the continuity of strike along its length;

• Main Shear Zone (Phase 4 A, B & C) – Infill drilling programme within the current resource pit shell – there are an estimated 285,000 inferred ounces that are within the RPEEE resource pit shell and require infill drilling to ascertain whether they can be converted into Indicated Mineral Resource ounces; and
• Main shear zone extension (Phase 5 & 6 – Northern Extension & Foroko) – Additional drilling is earmarked to test the potential of the northern strike extension of the current Mineral Resources at the Kobada Project.

Figure 10 - Map of Targets

C) Future Potential Exploration Drilling Based Upon Known Anomalies

A comprehensive drilling programme of approximately 67,000m (refer to Figure 11 and Table 4) has been designed to target all known anomalies on the Kobada Project. This programme will be revised according to the results from the ongoing auger drilling programme, and proposed drilling as stated above to generate priority targets.

Figure 11 - 67,000 m Exploration Programme

Table 4 - 67,000 m Exploration Programme

Target	Boreholes	Metres	Target Name
3	33	4,550	Gosso B & C
4	23	3,440	Kobada Main B & C
5	35	5,250	Gosso North – Target 5
6	65	9,750	Kobada Est – Target 6
7	35	5,250	Kobada Est – Target 7
8	40	6,000	Gosso NE – Target 8
9	20	3,000	Kobada Est – Target 9
10	35	5,250	Kobada Est – Target 10
11	35	5,250	Kobada Main – Target 11
12	40	6,000	Kobada Main – Target 12
13	40	6,000	Kobada South – Target 13
14	30	4,500	Faraba
15	8	960	Foroko Shear
16	15	1,800	Kobada North
	454	67,000