Mana Project

2017 Exploration Program

In 2017, exploration activities at Mana include a discovery drilling program that has the aim of identifying near-site satellite deposits. The initial exploration budget for Mana has been set at $5 million and will include 80,000 meters of auger, 15,000 meters of reverse-circulation and 4,500 meters of core drilling designed to confirm or expand mineralization within trucking distance of the Mana Mine. Approximately $1 million of the 2017 budget has been assigned to testing the underground potential at Siou.

Siou

The Siou at depth program was completed in July prior to the rainy season with 15 core holes (4,400 meters), including three geotechnical drill holes, which also completed the geotechnical study for the program.

The following table provides the highlights of assay results received in the third quarter of 2017:

BHID From To Length Au
g/t
Au Capped
(40 g/t Au)
Zone
WDC944 244.5 247.5 3.0 10.81 6.67 Siou
WDC944 325.8 336.7 10.9 5.66 9
WDC947 301.0 302.8 1.8 29.76 18.85 55
WDC960 319.9 326.5 6.6 34.00 13.59 9
WDC961 317.0 329.5 12.5 14.94 11.78 9
WDC962 345.9 350.9 5.0 35.85 18.66 9
1 All lengths are along the hole axis.

Compilation and resource estimation is in progress with the aim of delivering a pre-feasibility study for Siou at depth in the first quarter of 2018.



Regional Exploration

Also in the quarter, 427 auger holes (6,850 meters) were drilled on the Bara permit along the Siou Shear Zone, some 20 kilometers north of the Siou deposit and 20 kilometers from the Mana processing plant.