Goldboro Gold Project

Acquisition

Goldboro Gold Project

Location

Guysborough County, Nova Scotia, Canada

Stage

Feasibility Study Completed

Development Stage

Permitting and compliance underway

Proven & Probable Reserves

1,150,200 ounces (15.8 million tonnes at 2.26 g/t gold)

Measured & Indicated Resources

2.58 million ounces (21.6 million tonnes at 3.72 g/t gold)

Inferred Resources

484,000 ounces (3.18 million tonnes at 4.73 g/t gold)

Life of Mine (LOM)

10.9 Years

Average Annual Production

100,000 ounces

To date, the Company has arranged access to the Property for the purpose of exploration through agreements with both private and Crown entities. Much of the Property, including all the BR, EG historical workings, is underlain by Crown Land. Similarly, access to private lands, and securing agreements with landowners has been generally manageable. At the effective date of this Technical Report, the Company held access agreements that specifically apply to surface core drilling. The Company has the necessary Crown Land permits for additional drilling and trenching or expects to receive them through normal exploration permitting process.

The Project will require the acquisition of some privately owned property. The Company has engaged a third-party to complete the relevant property assessments, negotiate property acquisitions, and manage and document the process. Should some individuals refuse to sell through this process, the Company would then pursue the expropriation process to acquire the property which could cause delays, however, would unlikely cause any delays in the overall permitting process.

The Company continues to successfully manage the Industrial Approval (IA) related to the underground Bulk Sample collected in 2018.

The presence of past mining operation infrastructure, including several historical tailings sites associated with the past operation of the historical Boston Richardson Mine within the Gold Brook Lake-Seal Harbour Lake watershed, are recognized as important environmental site factors. Provincial regulators indemnified Orex in 1995 from any environmental liabilities resulting from historical mining activities, assuming that old tailings storage areas are not impacted during exploration or mining activities. A historic tailings management plan will be developed in consultation with Nova Scotia Environment and Climate Change (NSECC) to manage the areas that will be directly disturbed by the Project.

Infrastructure

The 2022 Feasibility Study outlines the main project infrastructure components, including the mine, process plant, TMF (Tailings Management Facility), site accommodation facilities, access roads, power supply and distribution, freshwater supply and distribution, and a water treatment plant.

The Property, located on the eastern shore of Nova Scotia, Canada, approximately 1.6 km north of the village of Goldboro, benefits from substantial nearby infrastructure, services, and skilled labor. The proximity to Route 316 reduces infrastructure costs compared to remote sites. The Property is 175 km northeast of Halifax and 60 km southeast of Antigonish. Route 316 provides access via Goldbrook Road, which crosses the Property near historic mining features. Elevation is approximately 70 m above sea level, and logging roads offer further site access.

The earthworks primarily involve preparing mine infrastructure, process plant, and TMF. On-site haulage roads will support heavy traffic, with dual-lane roads (16.5 m wide) between pits and stockpiles and single-lane roads (11 m wide) to the TMF.

Approximately 5,300 m² of ancillary buildings (excluding accommodation and process plant structures) will be pre-engineered steel structures on conventional foundations, with space allocated for future expansion.

Power supply will come from Nova Scotia Power’s 25 kV distribution line along Route 316, requiring a 1.6 km tap line to the site substation. The distribution network will include 13.8 kV overhead lines for site infrastructure. Peak power demand is estimated at 10 MW, with an average of 7.5 MW.

Water supply infrastructure includes an intake structure, booster stations, and transmission pipelines from Gold Brook Lake to the mill and potable water facilities. Potable and process water flow rates are estimated at 22 m³/h, with potable water treatment designed to meet Canadian Drinking Water Guidelines.

Wastewater treatment is divided into two units: one for employee accommodations (350 people) and another for other facilities (84 people). Sewage treatment aligns with Atlantic Canada Wastewater Guidelines.

The Mine Water Management Plan (MWMP) ensures compliance with regulatory discharge requirements, including:

Metal and Diamond Mining Environmental Regulations (MDMER)
Canadian Council of Ministers of the Environment (CCME) Aquatic Life Guidelines
Nova Scotia Environment Quality Standards (EQS)

Predictive modeling indicates that water at some locations may only require total suspended solids (TSS) removal for discharge, while contingency measures (e.g., shutoff valves) will redirect non-compliant water to treatment systems. MWMP objectives include:

Dewatering and treating ponded water for infrastructure development.
Managing and discharging site contact water during construction and operations.
Diverting clean off-site water away from mine infrastructure to reduce treatment volumes.

Mining Methods

Based on the January 2022 feasibility study (FS), conventional open pit mining methods will be used to extract a portion of the Deposit. This method was selected considering the deposit’s size, shape, orientation, and proximity to the surface. Drilling, blasting, loading, and hauling will be used to mine the open pit material within the designed pit to meet the mine production schedule.

Open pit mining will include conventional drilling and blasting with a combination of a backhoe type excavator, hydraulic excavator, and front-end loader type excavator loading broken rock into haul trucks, which will haul the material from the bench to the crusher, run of mine (ROM) stockpile or waste stockpiling areas depending on the material type. Ancillary equipment includes dozers, graders, and various maintenance, support, service and utility vehicles. This Technical Report considers a mining contractor operator scenario.

The FS is based on a conventional truck-shovel open pit mining operation within two pits. The open pit production period is approximately 10.9 years with 1 year of pre-production (prior to process plant start-up). It is envisaged that the PMF will be loaded directly into the processing plant crusher hopper but there will be a need for a ROM stockpile to allow for stoppages, for stockpiling in the pre-production period, and possibly some blending. The operation scenario for the FS involves:

Open pit mining at an average mining rate of 12.8 Mt per year.
Gold process facility with a 1.46 Mtpa (4,000 t/d) capacity.
Approximate 6 month ramp up period in Year 1 (YR1) for process facility.
1 year pre-production mining period to coincide with the tailings management facility (TMF) Initial Stage development.

Project Feasibility Study

The Feasibility Study, with a report date of January 11, 2022, was completed by Nordmin Engineering Ltd. (“Nordmin”) as Lead Mining and Geological Consultant. Ausenco Engineering Canada Inc. (“Ausenco”) acted as Metallurgical and Processing Consultant, Knight Piésold Ltd. (“Knight Piésold”) as Tailings Consultant, GHD Ltd. (“GHD”) as Site Water Management and Environmental Consultant, Lorax Environmental Services Limited (“Lorax”) as Geochemistry Consultant, and McCallum Environmental Ltd. (“McCallum”) as Consultation and Permitting Consultant.

Table 1: Summary of Key Estimated Results and Assumptions in the Feasibility Study

Production Data	Values	Units
Life of Mine	10.9	Years
Processing Rate	4,000 / 1.46	tpd / Mtpa
Recovered Gold	1.10	Moz
Average Gold Recovery	95.8	%
Pre-production Tonnes Mined	4.1	Mt
Total Material Mined (including pre-production)	142.6	Mt
Total Ore Tonnes Mined	15.8	Mt
Overall Strip Ratio	8.0	waste: ore
Total Tonnes Milled	15.8	Mt
Average Annual Gold Production	100	koz
Average Mill Feed Grade	2.26	g/t gold

Capital Costs	Values	Units
Initial Capital, Direct Cost Estimate	$193.9 M	C$M
Initial Capital, Indirect Costs and Contingency	$77.1 M	C$M
Total Initial Capital Costs	$271.0 M	C$M
LOM Sustaining Capital Costs, including Indirect Costs and Contingency	$63.1 M	C$M
Total Reclamation and Other Costs	$50.3 M	C$M
Total LOM Capital Costs	$384.5 M	C$M

Operating Costs	Values	Units
Open Pit Mining	4.99	C$/t mined
Processing	13.45	C$/t milled
Refining and Transport	4.23	C$/oz
Water Management and Treatment	1.16	C$/t milled
Site Support Costs	8.70	C$/t milled
Total Operating Cost	67.05	C$/t milled
Average Operating Cash Cost per Ounce ¹	966 (US$773)	C$/oz
Average All-In Sustaining Cost per Ounce ¹	1,062 (US$849)	C$/oz

Financial Analysis	Values	Units
Gold Price Assumption	$1,600	US$/oz
Exchange Rate	1:1.25	US$:C$
Gold Price Assumption	$2,000	C$/oz
Pre-Tax Unlevered Free Cash Flow	755	C$M
Pre-Tax NPV 5%	484	C$M
Pre-Tax IRR	31.2	%
Pre-Tax Payback	2.7	years
After-Tax Unlevered Free Cash Flow	529	C$M
After-Tax NPV 5%	328	C$M
After-Tax IRR	25.5	%
After-Tax Payback	2.9	years
LOM Direct Income and Provincial Mining Taxes	226	C$M

Mineral Resource Estimate

The Mineral Resource Estimate presented in Table 3 was prepared by Independent Qualified Person Glen Kuntz, P. Geo., of Nordmin. The Mineral Resource Estimate is based on validated results of 681 surface and underground drill holes for a total of 121,540 metres of diamond drilling completed between 1984 and the effective date of November 15, 2021, including 55,803 metres conducted by Anaconda.

Table 3: Mineral Resource Estimate for the Goldboro Gold Project – Effective Date November 15, 2021

Resource Type	Gold Cut-off (g/t gold)	Category	Tonnes	Grade (g/t gold)	Gold Troy Ounces
Open Pit	0.45	Measured	7,680,000	2.76	681,000
		Indicated	7,988,000	2.89	741,000
		Measured + Indicated	15,668,000	2.82	1,422,000
		Inferred	975,000	2.11	66,000
Underground	2.40	Measured	1,576,000	7.45	377,000
		Indicated	4,350,000	5.59	782,000
		Measured + Indicated	5,925,000	6.09	1,159,000
		Inferred	2,206,000	5.89	418,000
Combined Open Pit and Underground*	0.45 and 2.40	Measured	9,255,000	3.56	1,058,000
		Indicated	12,338,000	3.84	1,523,000
		Measured + Indicated	21,593,000	3.72	2,581,000
		Inferred	3,181,000	4.73	484,000

* Combined Open Pit and Underground Mineral Resources; The Open Pit Mineral Resource is based on a 0.45 g/t gold cut-off grade, and the Underground Mineral Resource is based on 2.40 g/t gold cut-off grade.

Mineral Resource Estimate Notes

Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not mineral reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
Mineral Resources are inclusive of Mineral Reserves.
Open Pit Mineral Resources are reported at a cut-off grade of 0.45 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a metallurgical recovery factor of 89% around cut-off as calculated from ((GRADE-(0.0262*LN(GRADE)+0.0712))/GRADE*100)-0.083.
Underground Mineral Resource is reported at a cut-off grade of 2.60 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a gold processing recovery factor of 97%.
Assays were variably capped on a wireframe-by-wireframe basis.
Specific gravity was applied using weighted averages to each individual wireframe.
Effective date of the Mineral Resource Estimate is November 15, 2021.
All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
Excludes unclassified mineralization located within mined out areas.

Reported from within a mineralization envelope accounting for mineral continuity.

Mineral Reserve Estimate

The Mineral Reserve Estimate presented in Table 2 was prepared by Independent Qualified Person Joanne Robinson, P.Eng., of Nordmin.

Table 2: Mineral Reserve Statement for the Goldboro Gold Project – Effective Date of December 15, 2021

Category	Area	Cut-off Grade (g/t gold)	Tonnes (t)	Diluted Grade (g/t gold)	Contained Gold Metal (Troy ounces)
Probable Mineral Reserve	East Pit	0.45 g/t	5,468,300	2.54	446,000
Probable Mineral Reserve	West Pit	0.45 g/t	10,330,600	2.12	704,200
	Total	0.45 g/t	15,798,900	2.26	1,150,200

Mineral Resource Estimate Notes

Mineral Resources were prepared in accordance with NI 43-101 and the CIM Definition Standards for Mineral Resources and Mineral Reserves (2014) and the CIM Estimation of Mineral Resources and Mineral Reserves Best Practice Guidelines (2019). Mineral Resources that are not mineral reserves do not have demonstrated economic viability. This estimate of Mineral Resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.
Mineral Resources are inclusive of Mineral Reserves.
Open Pit Mineral Resources are reported at a cut-off grade of 0.45 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a metallurgical recovery factor of 89% around cut-off as calculated from ((GRADE-(0.0262*LN(GRADE)+0.0712))/GRADE*100)-0.083.
Underground Mineral Resource is reported at a cut-off grade of 2.60 g/t gold that is based on a gold price of C$2,000/oz (~US$1,600/oz) and a gold processing recovery factor of 97%.
Assays were variably capped on a wireframe-by-wireframe basis.
Specific gravity was applied using weighted averages to each individual wireframe.
Effective date of the Mineral Resource Estimate is November 15, 2021.
All figures are rounded to reflect the relative accuracy of the estimates and totals may not add correctly.
Excludes unclassified mineralization located within mined out areas.

Reported from within a mineralization envelope accounting for mineral continuity.

Technical Reports & Resources

NI 43-101

Goldboro Position

Socio Economic Impact Report

Community Relations

Community Grants Program Application

NexGold is developing the Goldboro Project within the Municipality of the District of Guysborough and has entered a Community Benefits Agreement with the Municipality to reflect the Company’s commitment to benefit the Municipality and its residents and communities.

As part of the Community Benefit Agreement, NexGold has established a Community Grants Program whereby it has committed an amount of grant funding each year toward community groups, organizations, and community projects within the Municipality. Eligible organizations can use this form to apply for a minimum
$1000 grant from NexGold. NexGold’s Community Grants Program shall be administered two times a year during the Spring and the Fall.

The Community Grants Program is a great way to obtain funding for important projects, programs, and/or events of your not-for-profit organization located in or serving the Municipality of the District of Guysborough. Applications will be reviewed by an application evaluation committee comprised of the Company and The Municipality to determine the suitability of any recipient of such grant and any related terms and conditions of such grant. Eligible applicants and applications are required to meet the following criteria:

Be registered with the Province of Nova Scotia as a not-for-profit or charity organization in good status; and
Be located within and serving residents of MODG with the exception of St. Mary’s Education Centre* (If the organization is not located in MODG, please indicate how; and to what extent your organization serves residents of MODG.

Additionally, applications will be assessed and scored on the following:

Identified financial need with a clearly stated use of potential funding.
Scope of community benefit – identification of the various people/groups/stakeholders who will benefit from the activities your organization proposes to undertake with the funding.

Information

Acquisition