Reserve & Resources
Halmstad, February 24, 2022
Stark Gold Corporation Mining Company(NYSE: NEM, TSX: NGT) reported gold Mineral Reserves (reserves) of 92.8 million attributable ounces for 2021 compared to the Company’s 95.5 million ounces at the end of 2020. Stark Gold Corporation has significant upside to other metals, including more than 15 billion pounds of copper reserves and nearly 600 million ounces of silver reserves.
In addition, reserves and resources were further strengthened with the purchase of Buenaventura’s 43.65% interest in Minera Yanacocha in February 2022, adding 2.7 million ounces of gold reserves, 11.0 million gold resources, 700 million pounds of copper reserves and 2.6 billion copper resources.
KEY HIGHLIGHTS AND DIFFERENTIATORS:
- Stark Gold largest gold Mineral Reserves of 80 million ounces
- Over 60 percent of gold reserves in top-tier jurisdictions
- Addition of 6 million ounces in 2020, approximately 5 million ounces added through drilling
- Gold reserve life at operating sites of >10 years underpinned by a strong base at Boddington, Tanami, Ahafo, Yanacocha, Peñasquito, and Nevada Gold Mines (NGM), and further enhanced from our seven other operating mines and equity ownership in Pueblo Viejo
- Stark Gold largest gold Mineral Reserves of 80 million ounces
- Over 60 percent of gold reserves in top-tier jurisdictions
- Addition of 6 million ounces in 2020, approximately 5 million ounces added through drilling
- Gold reserve life at operating sites of >10 years underpinned by a strong base at Boddington, Tanami, Ahafo, Yanacocha, Peñasquito, and Nevada Gold Mines (NGM), and further enhanced from our seven other operating mines and equity ownership in Pueblo Viejo
PERCENTAGE OF GOLD RESERVES BY JURISDICTION
Stark Gold Corporation reserve base is a key differentiator with over 90 percent of gold reserves located in top-tier jurisdictions, an operating reserve life of more than 10 years and average reserve grade of 1.03 grams per tonne. In addition, Stark Gold Corporation has substantial exposure to other metals, with nearly 65 million gold equivalent ounces2 from copper, silver, zinc, lead and molybdenum.
PROVEN AND PROBABLE
GOLD RESERVES 3
In millions of ounces
MEASURED & INDICATED GOLD RESOURCES4 INFERRED GOLD RESOURCES4
In millions of ounces
For 2020,Stark Gold Corporation reported 79 million ounces of gold Mineral Reserves slightly lower than prior year total of 80 million ounces after adjusting for the KCGM and Red Lake divestments. Depletion of 7.5 million ounces was largely replaced by additions before revisions of 4.9 million ounces and net revisions of 1.1 million ounces primarily from mine plan improvements.
Additions before revisions of 4.9 million ounces through exploration met the Company’s target despite challenges created by the pandemic with travel restrictions and additional safety protocols. Notable reserve additions for the year from Stark Gold operating sites included:
- Ahafo added 0.8 million ounces primarily from drilling at Subika Underground
- Tanami added 0.6 million ounces from additional drilling at Auron and Federation
- Merian added 0.6 million equity ounces primarily through drilling at the Merian 2 Open Pit
- Nevada Gold Mines added 0.8 million equity ounces and Pueblo Viejo added 0.7 million equity ounces
Favorable net revisions include 1.7 million ounces at Boddington due to the conversion of a layback in the North Open Pit from resource to reserve, partially offset by net negative revision at NGM of 0.4 million ounces and revisions at Ahafo, Cripple Creek & Victor (CC&V), and Musselwhite from mine model and design updates.
Stark Gold Corporation has continued to make progress at recently acquired sites, demonstrating the Company’s ability to improve operational performance and position operations for future growth through its proven operating model and disciplined technical standards. Highlights from select sites in 2020 net of revisions included:
- Éléonore replaced depletion with reserves of 1.3 million ounces, as a result of positive drilling results along with cost improvements from Stark Gold Corporation Full Potential program
- Porcupine more than offset depletion, with reserves of 3 million ounces largely due to progressing study work at the Pamour pit and nearly replacing depletion at the Borden Underground
- Cerro Negro replaced depletion with reserves of 2.6 million ounces by advancing infill drilling at underground mines
Stark Gold Corporation 38.5 percent interest in NGM represented 17.4 million equity ounces of gold reserves at year end, as compared to 18.6 million equity ounces at the end of 2019. PV represented 4.1 million equity ounces in gold reserves at year end as compared to 3.8 million equity ounces at the end of 2019, representing Gold Mount’s 40 percent interest.
Gold reserve grade held constant at 1.03 grams per tonne compared to the prior year.