The Goldenville Gold District in Nova Scotia is considered one of the most prolific gold mining districts in eastern Canada. Over 200,000 ounces of gold averaging nearly 12 g/t Au were produced between 1862 and 1942*. Typical deposits in this district have stratabound quartz veins hosting gold mineralization within folded Ordivician age metasediments.

• Inferred Resource Estimate of 2,335,000 tonnes at 4.1 g/t gold for 310,000 ounces of gold 
• Largest historic gold producer in Nova Scotia with 212,300 ounces of gold production prior to 1942
• 135 km northeast of Halifax, easily accessible by road
• Opportunity to expand resource by lowering cutoff grade; structure also remains open along strike and at depth
• Under-explored target areas permissive for expansion drilling

• Drill targeting and planning underway, based on 2020 resource update and technical report
• Anticipated targets at Mitchell Lake Zone, 3.5 km west of the main resource area, and additional drilling to expand the resource along strike, and through infill

* Bottrill, T. J., 1987, Report on the 1987 Winter Exploration Program - Assessment Report ME 1989-154

**2020 inferred resource includes a near surface and an underground resource with a cut-off of 0.5 g/t and 2.0 g/t respectively.

Goldenville Inferred Mineral Resource Estimate (Effective Date: June 4, 2020)

Table 3 - Goldenville Mineral Resource and Sensitivities, Near Surface

 Goldenville Mineral Resource and Sensitivities, Underground

The technical report, including this resource estimate, is available at www.sedar.com. Dave Thomas, M.Sc., P.Geo. and Neil Pettigrew, M.Sc. P.Geo, are both a ‘Qualified Person’ for the purpose of National Instrument 43-101 Standards of Disclosure for Mineral Projects of the Canadian securities administrators (“NI 43-101”). They have both approved the disclosure of, and are the ‘Qualified Persons’ responsible for the scientific and technical information in this news release, inclusive of the resource estimate information. They have verified the data disclosed.

The current mineral resource estimate, effective date June 4, 2020, was prepared by David G. Thomas M.Sc., P. Geo. and Neil Pettigrew M.Sc., P. Geo. using Minesight 3D commercial mining software. Resources were estimated from 206 core drillholes and 67 underground channel samples in 4 x 2 x 2 meter blocks by ordinary kriging coded by indicator domain. Fladgate created probabilistic indicator models to progressively constrain the mineralization into domains. Indicator models were estimated using inverse-distance weighting to the power of three (IDW3). Grade estimates were based on capped 2.0 meter composited assay data with a top cut of 70 g/t.

Fladgate has constrained near surface mineral resources to an L-G optimized pit shell and has constrained underground mineral resources to a grade shell above a grade cut-off incorporating an underground mining cost of $50/t.

The Goldenville Property is located in St. Mary’s District, Guysborough County, approximately 135 km northeast of Halifax and 60 km south of Antigonish. Provincial Highway 7 runs through the eastern part of the Goldenville property and the closest town is the village of Sherbrooke, located 3 km to the north; an approximately five-minute drive from the project with basic services such as gas / service stations, a grocery store, restaurants, accommodation and a hospital. Power, telephone, and high speed Internet service are available at the project site as well. The Halifax Stanfield International Airport is 185km from Goldenville.

• Structurally controlled slate belt hosted gold
• Vein hosted mineralization controlled by bedding, anticline plunge, and cross cutting structures
  • Anticline trends roughly east-west, dips gently west
  • Up to 46 sequenced vein packages identified on both limbs of the anticline
• Disseminated mineralization within slates/argillite
• Classic Meguma terrain-style deposit, similar to the Bendigo camp in Australia
  • Potential for veining to continue at depth, similar to Australian deposits

Gold is predominantly found in the quartz veins on the property, measuring up to 40cm in thickness. Gold is also found within slate belts associated with the veining. Gold concentrations of interest appear to be controlled by the regional plunge of the Goldenville anticline and the influence of northwest trending structural waves across the anticline.

The Goldenville Gold District has the highest reported gold production of any district in the province. Total reported gold production for the district is as follows:

The Goldenville Property is comparable to other Meguma Group gold deposits. MegumaGold is focused on the potential for extending mineralized structures laterally and at depth, while also pursuing new discoveries of gold-bearing quartz veins along the length of the Goldenville anticline.

Qualified Person

Technical aspects of this website have been reviewed and approved by the Qualified Person, Perry MacKinnon P.Geo., hereby designated as a QP under National Instrument 43-101.

A copy of the Company’s technical report titled “Independent Technical Report, Goldenville Property, Guysborough County, Nova Scotia” prepared by David G. Thomas, M.Sc., P. Geo. and Neil Pettigrew, M.Sc., P. Geo. is available under the Company’s profile at www.sedar.com. They have both approved the disclosure of, and are the ‘Qualified Person’ responsible for the scientific and technical information in the resource estimate.

Footnotes to mineral resource statement:

• Fladgate undertook data verification, and reviewed CROSBY’s quality assurance and quality control programs on the mineral resources data.  Fladgate concluded that the collar, survey, assay, and lithology data were adequate to support mineral resources estimation.
• Domains were modelled in 3D using indicator probabilities to separate mineralization from surrounding waste rock.  The domains conform approximately to the shape of the anticline. Raw drill hole assays were composited to 2 m lengths. High grade assays were capped to 70 g/t prior to compositing.
• Block grades for gold were estimated from the composites using ordinary kriging (OK) into 4  x 2 x 2 m blocks coded by indicator domain. A hard boundary grade model was used to report UG mineral resources. A weighted-grade model was used to report open-pit mineral resources.
• A dry bulk density value of 2.67 g/cm3 for all material was assigned from similar Meguma-type gold mineralization with similar rock types in Nova Scotia.
• Fladgate assumed a metallurgical recovery of 90% based on a qualitative assessment of the gold mineralogy and grain size and a gold price of $1,400 US per ounce.
• Potentially open pit mineable mineral resources are constrained within an open pit shell optimized with an L-G algorithm. A process and G&A cost of $20.00 and a mining cost of $3.00/tonne have been used. Mineral resources potentially amenable to underground extraction have been constrained within a grade shell using a 2 g/t threshold, assuming a mining cost of $60.00/tonne in addition to the operating costs. Isolated blocks were removed from the grade shell. The mineral resources have been depleted for historical mining using solids representing underground development and areas of stoping.
• Blocks were classified as inferred in accordance with CIM Definition Standards.
• The contained metal figures shown are in situ. The resource estimation methodology incorporates a significant amount of external and internal dilution due to the use of 2 meter composites, probabilistic domaining and the grade smoothing introduced by ordinary kriging with a variogram which has a short range of influence.
• No assurance can be given that the estimated quantities will be produced.  All figures have been rounded to reflect accuracy and to comply with securities regulatory requirements.  Summations within the tables may not agree due to rounding.
• Due to the uncertainty associated with Inferred Mineral Resources, it cannot be assumed that all or any part of the Inferred Mineral Resource will be upgraded to an Indicated or Measured Mineral Resource as a result of continued exploration.