TMAC Resources’ Second Quarter Exploration Results Include High-Grade Intercepts at Doris and Madrid North

TMAC Resources Inc. (TSX: TMR) (“TMAC” or the “Company”) is pleased to provide second quarter exploration results, which include underground drilling targeted at growing the high-grade Doris North BTD Extension as well as surface results from the winter programs at Doris and Madrid North. Also included are limited initial results from the 2019 summer program. For the third quarter, underground drilling at Doris North BTD Extension continues, regional exploration programs ramp up, and the Boston Camp has been opened with drilling to commence soon.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20190715005814/en/

Jason Neal, President and Chief Executive Officer of TMAC, stated, “Underground diamond drilling on the Doris North BTD Extension zone continued to expand the high-grade mineralization to the north, in this quarter stepping out a further 60 metres from previous results in the first quarter. Also, drilling from surface at Doris intersected consistent mineralization, with visible gold noted, a further 325 metres to the north of the established resources, and at a shallower depth than the Doris North BTD Extension. At this point we do not have information to determine if this a continuation of Doris North BTD Extension, fault offset block, or a new mineralized zone. Expanding the BTD Extension zone adds high-grade mineralization that will be mined in the near future; however, encountering similar mineralization on a significant step out drill hole increases our confidence in the long-term sustainability of Doris operations.”

Jason Neal continued, “Also during the quarter, remaining assays were received for the winter ice-based drilling program at Madrid North Suluk along strike of the current Indicated Mineral Resource and at depth, highlighting the potential for significant expansion. Madrid North as a whole has an established Measured and Indicated Resource of 2.84 million ounces of gold, almost entirely above the 400 metre level and at the Suluk zone above the 300 metres level. Ore grade intercepts of minable width at Suluk zone at the 660 metre level is another data point supporting the upside of these deposits. Suluk is one of the core zones at the Madrid North deposit and we are currently evaluating collaring the portal and driving an underground advanced exploration decline to Suluk, and to Madrid North Naartok, for collection of a bulk sample ahead of a production decision.”

Jason Neal concluded, “Boston may be the best of the currently identified deposits at Hope Bay and we are enthusiastic about getting drills turning again for the first time in nearly two years. Our geology team is now set up at the Boston camp and our summer program is soon kicking off. Our third quarter exploration release will include the initial results from this program.”

DORIS – SECOND QUARTER 2019 EXPLORATION DRILLING

The Doris BTD is north of and beneath the diabase dyke (Figure 1) and is the equivalent of the high-grade Doris North zone hinge structure. Development of the Doris North BTD Extension exploration drive continued through the second quarter and, in mid-June, reached the current drill bay approximately 100 metres north of the first quarter drilling platform. The current drill bay will allow an expansion drilling of approximately 125 metres along strike to the north. The initial two drill holes have intersected the high-grade BTD Extension west limb as planned, returning 330.7 grams of gold per tonne over 3.4 metres and 146.8 grams of gold per tonne over 1.0 metres in drill hole TMBDE-19-50043 and 16.9 grams of gold per tonne over 0.4 metres and 81.2 grams of gold per tonne over 1.2 metres in drill hole TMBDE-19-50044. Assay results from the second quarter diamond drilling on the BTD Extension are summarized in Table 1, drill hole locations are illustrated in Figure 2, and gold grade contours are illustrated in Figure 3. The BTD Extension zone remains open for expansion to the north and diamond drilling will continue through the third quarter. In addition to diamond drilling in the north, production development has now accessed the BTD Extension zone on four levels within the southern extent of the zone. Both vein geometry and fold grade continue to show good continuity on each level.

Also during the second quarter, surface diamond drilling has resumed after transitioning from winter to summer helicopter supported drilling programs. One drill rig has commenced drilling approximately 325 metres north of the current underground BTD Extension drilling. The initial two holes have both intersected the Doris deposit stratigraphy, with mineralized quartz veins at the Fe-Ti Tholeiite – Mg Tholeiite contact, suggesting the Doris BTD zone may continue at least 325 metres along strike to the north (Figure 4). Drill holes TMRDC-19-00001 and TMRDC-19-00002 both intersected mineralized quartz veins, with visible gold noted. Step-out drilling from surface will continue through the quarter and will assist in planning and design of the underground BTD Extension exploration ramp. Assays for Doris surface drilling will be released after the third quarter.

MADRID NORTH: SULUK AND PATCH 7

The Madrid North deposit consists of five separate mineralized zones, Naartok West, Naartok East, Rand, Spur and Suluk (Figure 5). The initial 2019 winter ice-based diamond drilling was focused on infill drilling within the Suluk zone, to better define the higher-grade plunges within the zone, prior to deciding to initiate underground development and advanced exploration in 2019. The Suluk zone consists of a wide zone of mineralization, including multiple subparallel, high-grade lenses within the overall mineralized package. Partial results from the 2019 Suluk drilling were reported in the news release issued April 7, 2019 and additional results are summarized in Table 2 and drill hole locations illustrated in Figure 6. Highlights from the recent drilling within the Suluk advanced exploration target area include TMMNE-19-00015 grading 13.9 grams of gold per tonne over 13.7 metres, TMMNE-19-00022 grading 27.5 grams of gold per tonne over 3.2 metres. In addition to infill drilling within the advanced exploration target area, two deeper drill holes, below the current mineral resources, were completed. Drill hole TMMSU-19-00023 crossed the Suluk stratigraphy from east to west and intersected 10.0 grams of gold per tonne over 3.0 metres, 14.5 grams of gold per tonne over 5.5 metres and 10.8 grams of gold per tonne over 9.3 metres. This lowermost intersection on the Suluk west lens, represents the deepest intersection on the Suluk zone to date, at approximately the 660 metre level, and demonstrates the significant potential below the current Mineral Resources. Hole TMMSU-19-00024 did not lift as planned and failed to intersect the western lens or full Suluk stratigraphy.

Also, during the Madrid North program, five drill holes were completed in the Madrid North Patch 7 zone. The Madrid structure extends more than two kilometres south of the Suluk zone, where wide spaced historical drilling has intersected significant mineralization not currently accounted for in the Mineral Resource, most notably in the Patch 7 zone (Figure 7). Significant intersections from the 2019 drilling include TMMP7-19-00028, intersecting 50.0 grams of gold per tonne over 1.0 metres, and TMMP7-19-00029 intersecting 14.4 grams of gold per tonne over 7.4 metres and 13.0 grams of gold per tonne over 2.4 metres and 9.4 grams of gold per tonne over 11.0 metres. Both drill holes were targeted below historical drilling and highlight the potential to add to the Madrid North Mineral Resources, in the Patch 7 area with continued drilling in the future.

REGIONAL EXPLORATION PROGRAMS

Exploration activity in 2019 has increased significantly over the previous two years. A significant regional exploration program, which commenced late in the second quarter will be executed in 2019. The northern regional drilling will focus on high priority exploration targets identified through historical and TMAC exploration efforts, including geophysical surveys, extensive geological mapping and sampling, and more recent gold in glacial till sampling results. Initial drilling targets include the Quituq area, west of Doris, where historical reverse circulation drilling and recent gold in glacial till sampling suggest gold mineralization may be associated with the margins of a felsic intrusive unit, and step-out drilling north to test the strike potential of the Doris BTD Extension zone. Regional drilling will transition southward to the Kamik Pogey area where historical surface sampling, and near surface drilling have intersected significant mineralization within a fold structure similar to the Doris deposit. Opening of the Boston exploration camp has commenced and the camp is expected to be available to support exploration crews in the second half of July. The southern regional exploration program will focus on high priority regional targets proximal to Boston, including the Domani trend to the south. The Domani trend is characterized by mineralized quartz veining found within an approximately six kilometres long strongly iron-carbonate altered shear zone up to 40 metres wide, extending south from the Boston deposit. Summer 2019 drilling on the Boston deposit will focus on defining the high-grade plunges within the known resources above the 325 metre level. This program will transition into a second phase of winter drilling in 2019-2020 once ice platforms on Spyder Lake can be established. The winter ice drilling will target the high-grade plunge, down dip of and below the current mineral resource, where widely-spaced historical drilling has intersected significant mineralization.

Table 1: Doris BTD Extension exploration diamond drilling intersections.

(1) True width varies depending on the dip of the drill hole. Drill holes were designed to intersect target zone(s) at as close to a perpendicular orientation as possible, true widths are estimated to be approximately 30% to 90% of down hole widths.
(2) Individual assays are capped at 100 g/t Au.

Table 2: Madrid North exploration diamond drilling intersections.

(1) True width varies depending on the dip of the drill hole. Drill holes were designed to intersect target zone(s) at as close to a perpendicular orientation as possible, therefore, true widths are estimated to be approximately 30% to 90% of down hole widths.

SAMPLE PREPARATION, ANALYSIS AND QUALITY ASSURANCE/QUALITY CONTROL

For the Doris and Madrid drilling campaigns, samples were prepared at ALS Laboratories in Yellowknife, Northwest Territories, and assayed at their Vancouver, British Columbia laboratory (an ISO/IEC 17025 accredited lab for gold analysis). Analysis for gold is completed on sawn half-core samples (NQ) using 50 gram fire assay with atomic absorption (AAS) finish. Samples with higher grade gold (greater than100 grams per tonne) are re-assayed using the pulp and fire assay with gravimetric finish procedures. Samples with visible gold and surrounding samples are analyzed using screen metallics (1,000 grams of material is screened to 100 microns, with all +100 micron material analyzed and two samples of -100 micron analyzed by 50 gram fire assay with AAS finish, results are averaged based on weight). Chip samples and select drill hole samples from Doris were prepared and analyzed at the internal laboratory located at the Doris mine site (non accredited lab), operated by SGS SA. Analysis for gold is completed using 30 gram fire assay with atomic absorption (AAS) finish. Samples with higher grade gold (greater than10 grams per tonne) are re-assayed using the pulp and fire assay with gravimetric finish. Samples with visible gold are selected to go directly to fire assay with gravimetric finish. The Company control checks include the insertion of standard reference materials and blank samples to monitor the precision and accuracy of the assay data. For a complete description of TMAC’s sample preparation, analytical methods and QA/QC procedures refer to the 2018 Annual Information Form dated March 12, 2019 and filed on TMAC’s profile at www.sedar.com.

SCIENTIFIC AND TECHNICAL INFORMATION

Information of a scientific or technical nature in respect of the Hope Bay property, other than new information related to Doris mine development, is based upon the Hope Bay Technical Report, as filed on TMAC’s profile at www.sedar.com. Scientific and technical information contained in this document was reviewed and approved by David King, P.Geo., Vice President, Exploration and Geoscience of TMAC, who is a “Qualified Person” as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects.

ABOUT TMAC RESOURCES INC.

TMAC Resources operates Hope Bay located in Nunavut, Canada. The property and operations are remote but not isolated, serviced by both a port and airstrip. Hope Bay is an 80 km by 20 km Archean greenstone belt that has been explored by BHP, Miramar, Newmont and TMAC over a period spanning more than 30 years. In that time, more than $1.5 billion of sunk expenditures have been expended in exploration, evaluation, surface infrastructure and mine and process plant development. TMAC began producing gold in early 2017 from Doris, its first mine at Hope Bay, and processed gold at the Doris Plant which originally had nameplate capacity of 1,000 tonnes per day and expanded to 2,000 tonnes per day midway through in 2018. Hope Bay has 4.8 million oz of measured & indicated resources at Doris, Madrid and Boston deposits, largely within 350 metres of surface, with the potential to grow these established deposits considerably at depth, and then grow resources further through the prioritized exploration of the other more than 90 identified regional targets. TMAC is now permitted to produce from Madrid and Boston.

FORWARD-LOOKING INFORMATION

This release contains “forward-looking information” within the meaning of applicable securities laws that is intended to be covered by the safe harbours created by those laws. “Forward-looking information” includes statements that use forward-looking terminology such as “may”, “will”, “expect”, “anticipate”, “believe”, “continue”, “potential” or the negative thereof or other variations or comparable terminology.

“Forward-looking information” is not a guarantee of future performance and management bases forward-looking statements on a number of estimates and assumptions at the date the statements are made. Furthermore, such “forward-looking information” involves a variety of known and unknown risks, uncertainties and other factors, which may cause the actual plans, intentions, activities, results, performance or achievements expressed or implied. See “Risk Factors” in the Company’s Annual Information Form dated March 11, 2019 filed on SEDAR at www.sedar.com for a discussion of these risks.

View source version on businesswire.com: https://www.businesswire.com/news/home/20190715005814/en/

TMAC Resources Inc.
Jason Neal
President and Chief Executive Officer
Phone: 416-628-0216
Lisa Wilkinson
Director, Investor Relations and Strategic Development
Phone: 416-628-0216
Email: Lisa.Wilkinson@tmacresources.com
www.tmacresources.com