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Fenelon Project

Fenelon Gold, Main Gabbro Zones Long Section

Fenelon Gold, Property Compilation Map

Fenelon Gold, 1:3,000 Scale Plan view

Fenelon Gold, Composite Long Section looking Northeast

Fenelon Gold, Tabasco Zone Long Section looking Northeast

Fenelon Gold, Cross Section 9900_E

Fenelon Gold, Cross Section 9975_E

Fenelon Gold, Cross Section 10050_E

Fenelon Gold, Cross Section 10125_E

Fenelon Gold, Cross Section 10200_E

Fenelon Gold, Cross Section 10275_E

Fenelon Gold, Cross Section 10350_E

Fenelon Gold, Cross Section 10425_E

Fenelon Gold, Cross Section 10500_E

Wallbridge Fenelon Gold Property 2020 drill hole information

Wallbridge Fenelon Gold Property 2019 drill hole information

Fenelon Gold - Drill Hole FA-19-086 (619-621 m)

Fenelon Gold - Drill Hole FA-19-086 (606 m)

Fenelon Gold - Drill Hole FA-19-086 (638 m)

Fenelon Gold - Drill Hole FA-19-086 (620 m)

Visible Gold NV-03


Fenelon Gold Pour

Fenelon Gold Pour

Fenelon Gold Pour

Fenelon Gold 3D View

Habanero Zone

Naga Viper Zone

UG Drill Assay Highlights

Chipotle Long

5213 Plan

Cross Section 0990

Cross Section 1030

Cross Section 1040

Cross Section 1050

Abitibi Map

Drill Core FA 17 26

Regional Geology

Photo with example of visible gold at 135.50 metres depth in drill hole FA-17-17

Photo with example of visible gold at 136.75 metres depth in drill hole FA-17-17

Photo with example of visible gold at 125.52 metres depth in drill hole Fa-17-18

Photo with example of visible gold at 121 metres depth in drill hole Fa-17-19

Technical Report on the Pre-feasibility Study for the Fenelon Mine Property March 17, 2020

High Grade Visible Gold

High Grade Visible Gold

High Grade Visible Gold

Fenelon Gold is located in the Nord-du-Québec administrative region, approximately 75 kilometres west-northwest of the town of Matagami, in the province of Québec, Canada and consists of one block of nineteen (19) mining claims and one (1) mining lease. Fenelon Gold is proximal to the Sunday Lake Deformation Zone ("SLDZ") which hosts the Detour Gold Mine in Ontario, and Balmoral Resources' gold deposits at Martinière. The 1,052-hectare property hosts the Discovery Zone gold deposit and surrounding 4 km strike length of a gold-hosting secondary splay of the SLDZ.

In 2016, Wallbridge purchased Fenelon Gold from Balmoral Resources for a purchase price of $3,700,000. Wallbridge owns a 100% undivided interest in Fenelon Gold (subject to royalty provisions) ("the Acquisition").

In September 2019, Ely Gold and the Company entered into an acknowledgement and amendment of the Net Smelter Return Royalty agreement (refer to June 30, 2019 MD&A) with an effective date of June 30, 2019 whereby it was agreed that:

  • The Company acknowledged the Morrison Royalty and supported its registration with the appropriate Ministries in Quebec;
  • Payment of the Morrison Royalty on bulk samples at Fenelon Gold will only apply after the effective date; and
  • Toll milling will not be considered a deductible expense when calculating royalty payments.

The property is now subject to three separate royalties on any future commercial production. A 1% net smelter return royalty ("NSR") payable from production at the Fenelon Gold Property to Cyprus Canada Ltd., a 1% NSR payable to a company beneficially owned by Eric Sprott, and the 2% NSR to Ely Gold.

Since the Acquisition, Wallbridge has updated the mineral resource estimate, completed a positive prefeasibility study and a 33,500-tonne bulk sample with reconciled grade of 18.5 grams per tonne of gold. These efforts have demonstrated the attractive economics of Fenelon Gold within the top 100 metres of the deposit.

Wallbridge initiated exploration immediately after Acquisition. The first phase of work was comprised of a review of historic drilling and additional sampling of previously unsampled historic drill core where warranted. This work identified new gold mineralization (e.g. 19.7 g/t Au over 1.90 m in the 2004 drill hole 1050-005) and provided a better understanding of the geologic and structural controls that formed the basis of a property-wide geologic modeling and targeting exercise in preparation for drill testing.

Since the Acquisition to the end of 2019, Wallbridge has completed close to 100,000 metres of exploration drilling at Fenelon Gold discovering new zones, significantly expanding the known footprint, thereby demonstrating the large size potential of the gold system.

2018 Exploration & Development

In early 2018, Wallbridge secured all permits and Certificates of Approval required to allow for the commencement of dewatering of the open pit along with water treatment and discharge as well as underground exploration activities at Fenelon Gold, including a 35,000 tonne bulk sample.

Mobilization to site occurred during the first quarter of 2018 with the setup of temporary camp facilities followed by contractor mobilization to the mine site. Dewatering of the pit and existing underground infrastructure was completed in the middle of the second quarter of 2018 and underground development began on June 10, 2018.

During the bulk sample, approximately 2,000 meters of underground development were completed, establishing four mining horizons and infrastructure required for exploitation of the first 100 vertical meters of the known deposit. The extensive development program was designed to establish all of the infrastructure required to reflect normal operating conditions for a 400 tonne per day operation with the goal of de-risking the project and future operations. Further to understanding operating conditions and costs, establishment of this infrastructure up front allows for lower cost of capital in the subsequent phases.

The results of the bulk sample (see press release of May 15, 2019) are as follows:

  • Approximately 33,230 tonnes of ore with an average grade of 18.49 g/t gold containing approximately 19,755 ounces of gold were processed at a toll mill facility in four separate mill runs.
  • More than 19,000 ounces of gold were recovered and sold
  • Stope grades are meeting expectations, ranging from 11 to 38 g/t gold (See Table 1 below).

The table below represents the final Bulk Sample Summary.

final Bulk Sample Summary

The 2018 underground drill program commenced in early June and to the end of December a total of 10,913 metres were drilled with visible gold observed to be present in 51 of the 92 drill holes. Initially, drilling mainly targeted the high-grade shoots down to 5130 Level (~120 m depth), which was the lowermost level being developed during the 2018/2019 bulk sample program. Stopes that were part of the bulk sample were drilled-off to a nominal 6 to 7 metre spacing and the drill results have validated the geological model and proven the continuity of high-grade shoots. Consistent high-grade intersections from this stope in-fill drill program included highlights of 137.63 g/t gold over 4.85 metres and 48.81 g/t gold over 6.13 metres in the Naga Viper zone and 50.31 g/t gold over 10.13 metres and 144.96 g/t gold over 2.12 metres in the Chipotle zone.

The 2018 program also successfully delineated a high-grade shoot in the Habanero Zone, which was discovered as part of the Company's 2017 surface drilling. The high-grade domain in this mineralized structure has shown excellent continuity with over 20 drill intersections yielding grades between 6.29 to 122.35 g/t gold over mineable widths. Highlights included: 144.77 g/t gold over 6.10 metres, 54.45 g/t gold over 7.79 metres, 122.35 g/t gold over 2.95 metres, 41.02 g/t gold over 5.52 metres. Also, in the West extension area, the Paprika zone has provided some respectable intersections including 134.57 g/t gold over 1.70 metres and 35.91 g/t gold over 3.42 metres, whereas the Fresno zone returned 87.63 g/t gold over 2.16 metres. In another high-grade shoot located in the East extension area, the Naga Viper zone returned 13.62 g/t gold over 4.27 metres and 6.23 g/t gold over 4.88 metres.

Surface exploration drilling was also carried out in the fourth quarter of 2018 with two drill rigs and a total of 6,109 metres were drilled in 17 drill holes. This program was aimed at following known mineralized zones to 300-400 metres depth as well as test for additional zones further away from the mine workings.

The last hole of the 2018 surface drill program, FA-18-051 intersected an approximately 200m wide, previously unknown package of favorable intermediate to mafic host rocks with broad low-grade gold mineralization throughout. This new mineralized system is made up of a network of gold-bearing veins and shear zones. The broad, mineralized corridor graded 0.90 g/t gold over 105.00 metres, which includes several higher grade shear zones: 3.93 g/t gold over 9.96 m (including 12.70 g/t gold over 2.71 m), 3.13 g/t gold over 4.78 m, 5.16 g/t gold over 3.40 m and 5.92 g/t gold over 1.44 m.

This discovery, which was named Area 51, lines up well with a strong break in the airborne magnetic signatures, and this gold system appears to have formed along the regional contact of a, thus far unknown, southern extension of the Jeremie Pluton. Geophysical data indicates that this northwest-southeast-trending contact may extend over 2.5 kilometres on the property and appears to control other, so far isolated, historic gold intersections including 34.20 g/t gold over 0.32 m in FA-06-299. The Area 51 gold system represents one of the main targets for the 2019 exploration drill program.

Other highlights of the surface program included 4.70 g/t gold over 2.99 metres intersected by FA-18-038 in the Habanero zone, and 29.90 g/t gold over 1.00 metres intersected between 440.46 and 441.46 metres depth by the same hole in what is interpreted to be the depth extension of the Tabasco zone; 19.18 g/t gold over 0.58 metres intersected by FA-18-040 in the Cayenne zone, extending this zone approximately 100 metres to the Northwest; 3.08 g/t gold over 3.27 metres in a new zone at depth in the Tabasco South area.

2019 Exploration & Development

In 2019, Wallbridge had five drill rigs operating on the property and completed 75,000 metres to the end of the year. Four rigs (three surface, one underground) were active on exploration drilling, doing large-spaced step-outs to define the footprint of the Fenelon gold system and one underground drill rig was working on definition drilling, in-filling the Main Gabbro zones near the existing mine workings.

The first surface hole of the 2019 drill program, FA-19-052 was designed to follow-up the newly discovered Area 51 gold system drilling on the same section as the discovery hole (FA-18-051), but from the opposite direction (Southwest to Northeast). This drill hole confirmed the significance of this new discovery, intersecting 1.46 g/t gold over 227.80 metres, with a higher grade subinterval of 2.81 g/t gold over 98.91 metres, including several higher grade shear zones: 20.89 g/t gold over 8.54 metres, 4.22 g/t gold over 16.02 metres, 5.14 g/t gold over 4.57 metres and 4.33 g/t gold over 2.16 metres. Apart from extending the Area 51 and Tabasco mineralized corridors to 500 metres vertical depth, this hole also successfully confirmed the presence of the Main Gabbro hosting silicified shear zones at a vertical depth of 650 metres, 400 metres below the last previously known occurrence on this section.

As at October 31, 2019, approximately 56,000 metres have been drilled as part of the 2019 exploration drill program and assay results are pending for 28 surface drill holes and 53 underground holes representing more than 30,000 metres

The 2019 exploration drilling has significantly expanded the footprint of the Fenelon gold system, now with 2 kilometres of strike length, 600 metres of corridor width along the Jeremie Pluton and 700 metres vertical depth extent confirmed. Apart from the originally known NW-SE structural trend we now have recognized another ENE-WSW trend that controls high-grade mineralization especially at Area 51, which has so far been traced several hundred metres into the Jeremie Pluton.

The Tabasco zone, known to be a narrow high-grade shear zone in the sediments near surface, has now been extended to 600 metres vertical depth showing excellent continuity and increasing gold endowment with depth as it is approaching more favorable host rocks, like the Jeremie Pluton or the Main Gabbro. Below 400 metre depth, the vertical dip is changing to more moderate 55-70° dip and the zone becomes significantly wider. Highlights from this zone include: 20.89 g/t gold over 8.54 metres, 7.32 g/t gold over 7.63 metres, 5.75 g/t gold over 10.94 metres, 5.50 g/t gold over 10.96 metres, 3.93 g/t gold over 20.72 metres (incl. 55.95 g/t gold over 1.24 metre) and 3.61 g/t gold over 18.96 metres. Most recently, the Company announced the intersection of 27.00 g/t gold over 38.39 metres from the Tabasco zone in drill hole FA-19-086 (see Wallbridge press release dated October 21, 2019). Further significant intersections were also reported in holes FA-19-090 and -092; assay results are currently pending.

Significant gold endowment and good continuity of several zones within two newly named corridors (Andromeda, Orion) in Area 51 is now indicated by numerous intersections including: 3.28 g/t gold over 17.60 metres (incl. 72.35 g/t gold over 0.43 metre), 2.43 g/t gold over 42.80 metres (incl. 5.00 g/t gold over 12.71 metres and 6.46 g/t gold over 3.09 metres). The higher grade sub-intervals form part of broad, low grade intersections with bulk mining potential: 0.98 g/t Au over 191.90 metres, 1. The high-grade gold mineralization hosted by The Main Gabbro has also been extended to 700 metres vertical depth including an intersection of 17.58 g/t gold over 11.04 metres at 600 m depth, which is currently interpreted to correspond to the thickening of the Cayenne zone as it transitions from the sediments into the Main Gabbro.

Testing of a grassroots geological-geophysical target within the Jeremie Pluton, approximately 800 metres to the northwest of the last known intersections of Area 51, hole FA-19-089 intersected an 'Area 51-style' visible gold-bearing zone and other related, possibly gold-bearing veins. Assays are pending and follow-up drill holes are planned to understand the significance of this discovery and to tie it back to the known Fenelon gold mineralization

An Orevision surface IP survey to test 600 metre strike length of the gold-hosting mineralized environment northwest of the main deposit was completed by Abitibi Geophysics Inc. in February 2019. Results of this study were incorporated with existing geophysical data into a coherent 3D model, which are used to guide geologic modeling and drill targeting.

With the completion of the bulk sample in April of this year, Wallbridge began pursuing production permitting activities, launching its Environment and Social Impact Study along with beginning consultations with First Nation and surrounding communities. Wallbridge's plans for the Main Gabbro zone were presented and as the remainder of the Fenelon Gold systems continues to be understood, Wallbridge will continue with the next logical steps for permitting the property with the intent of sustainable and profitable operation.

For additional information on the PFS and exploration on Fenelon Gold, please refer to press releases dated between February 2, 2017 and July 9, 2019. The press releases can be found on the Company's website at

2020 Exploration & Development

Five drill rigs are currently active on the Property: four are focusing on exploration drilling from surface, doing large-spaced step-outs to define the footprint of the Fenelon gold system, and one underground drill rig is doing more closely spaced definition drilling of the Main Gabbro zones near the existing mine workings. A total of 75,000 metres were drilled in 2019 and the program will be continuing in 2020 with the same drilling rate of approximately 9,000 metres per month for a total of 100,000 to 120,000 metres. The goals of this program are to 1) collect enough information to support a NI 43-101 maiden resource in Q1/2021, 2) establish >1M oz underground resource, mostly indicated, 3) demonstrate open-pit resource potential in Area 51, 4) expand known footprint & depth, make new discoveries.