Back to basics: Restarting a high-grade gold producer near Yellowknife

Aerial view of the Mon Gold Mine, North Portal in September 2021.

BaCk to BasICs.

restarting a high-grade gold producer near yellowknife

Sixty North Gold Mining Ltd. (CSE:SXTY, FKT:2F4, OTC-Pink:SXNTF) plans to continue underground development of its former-producing Mon Gold Mine in 2022, developing stopes in preparation for anticipated full production in 2023. The Mon Gold Property is located 45-kilometres north of Yellowknife, NWT. Past production in the 1990’s extracted 15,000 tonnes of ore to depths of only 15 metres below surface, recovering an estimated 15,000 ounces of gold. The overall size, grade and form of the Mon mineralization, as well as its host rock assemblage, is similar to the Discovery Mine (located 50 kilometres to the north) where one-million tons of ore were mined and one-million ounces of gold were recovered between 1949 and 1969, to a depth of 1,200 metres below surface.

History of tHe Mon ProPerty

During the initial staking rush in Yellowknife in the 1930’s, a high-grade quartz vein was discovered outcropping along the side of a hill 45 kilometres north of Yellowknife, NWT. Cominco identified a 42-metre-long folded quartz vein with the fold grading 121.7 gpt gold over 1.5 metres, and the planar western limb grading 14.4 gpt gold over 0.7 metres. success. In 1988, it was recognized that the vein was folded into a horseshoe shape and drill holes intersected 50.7 gpt gold over 2.8 metres, and 35.3 gpt gold over 1.5 metres. Mining over the next six years extracted 15,000 tonnes of ore grading >27 gpt gold to a depth of 15 metres below surface, operating on a seasonal basis, with gold prices generally averaging between US$350 and US$400 per ounce. It closed as gold prices declined to below US$300 per ounce. Drilling has traced the gold bearing vein to a depth of 60 metres below surface where it remains open.

Sixty North Gold Mining Ltd. signed an earn-in agreement on the property in 2016, and in 2022 acquired a 100 per cent

interest in the property, with licenses, claims, permits, and other assets being transferred from New Discovery Mines Ltd.

The project is permitted to operate at 100 tpd, similar to what the Discovery Mine and Con Mine started producing at, before growing to 230 tons/day and 1,400 tons/day, respectively.

The concept of starting a mine at 100 tpd proved to be very successful in Yellowknife in the past at the Con Mine, Giant Mine, and Discovery Mine, where nuggety, high-grade gold mineralization was difficult to assess

using diamond drilling. The diamond industry demonstrated that the grades of very nuggety deposits are best assessed using bulk samples. Drill holes confirm that deposit’s location, and that it is mineralized but not used to develop a grade model.

Current aCtivities

Sixty North Gold has sampled the crown pillar of the hinge zone over 45 metres with results shown in chart.

The Mon Project is permitted to mine, process, and dispose of tailings.

A winter road was constructed to the site in 2021 and a camp, equipment, and supplies were mobilized to site. The winter road was used again in early 2022 and an additional 90,000-litre fuel tank, underground drill, fuel, explosives, and other supplies were hauled to site.

The north portal was re-opened in 2021 and the main ramp was widened to threemetres-by-four-metres to accommodate the larger mining equipment then what was used in the past. A total of eight personnel were on the property in 2021.

Plans for 2022 are to recommence mining

Trench Intersection Au Grade (metres) (gpt)

17-1 0.28 20.3 0.50 3.4 17-2 0.50 688.8 0.80 273.1 0.50 2.6 17-3 0.40 5.6 0.60 15.9 17-4 0.40 1.8 17-5 0.50 8.4 17-6 0.50 4.9 0.50 390.0 0.60 3.0 17-7 0.50 16.3 0.90 1.2 17-8 0.90 143.9 17-9 0.50 65.0 0.50 311.6 0.70 198.8 17-10 1.00 60.2 0.90 27.7

MON GOLD PROPERTY

Near Yellowknife, NWT, Canada Restarting a Past-Producing Mine

• Mon Gold is the only gold project in the NWT permitted for production • Bulk sampling program commenced with owned mining equipment and camp on site • Similar to the regional 1m oz, 1 oz/ton gold Discovery Mine • Crown pillar grades up to 688 g/t gold over 0.5 m; 98.8% met recoveries • Further exploration potential for VMS and shear zone gold

SIXTY NORTH GOLD MINING LTD.

CSE: SXTY FRANKFURT: 2F4 OTC-PINK: SXNTF

Contact: Dave Webb, Ph.D., P.Geol., P.Eng., President & CEO p: 604-818-1400 • e: dave@drwgcl.com www.sixtynorthgold.com

by driving an additional 70 metres of three-metre-by-four-metre ramp to the high-grade portion of the A-Zone, 20 metres below the historic stopes where 15,000 tonnes of 30 gpt ore was mined and processed. Crews are being lined up to restart operations as soon as possible. Historic diamond drilling supports the size and grade of the vein at our target location. Several thousand tonnes of vein material are planned to be collected during this phase for sampling, testing, and ultimately processing in early 2023. Cross-cuts will be driven in to

the vein and two to three stopes will be developed in preparation for anticipated full production and milling in 2023. Underground diamond drilling below the level of the new stopes will better define extensions of this high-grade zone for future production planning.

When planned milling starts in 2023, an additional four personnel would be needed, with a similar number of people off property on rotation.

exPloration oPPortunities

While the company’s focus remains the development of the A-Zone into becoming a producing gold mine, it has other exploration opportunities on its property:

Gold Shear Zones. The broad mineralized

shear zones that made the Con and Giant

Mines world-class deposits (combined 13 million ounces of gold mined) transect the same rocks here on the Mon Property. We have trench results of up to 7.22 gpt gold over 6.0 metres (see NR August 29, 2018) that have never been drilled. These zones will be targeted for follow-up this

summer.

VMS Zones. The Nelson Lake volcanogenic massive sulphide (VMS) deposits discovered in 2018 extend over 2,500 metres in length on the Mon Property, and likely extend onto the recently optioned Hangstone Property. Eight grab samples collected from an exposed lens on the Mon Property in 2018

2022 supplies delivered to site with A Zone in background with front end loader.

average 253.3 gpt silver, 1.61 gpt gold, 2.45 per cent lead, and 1.66 per cent zinc. These VMS zones have never been drilled, and additional geophysics on extensions across the Hangstone Property will be completed and evaluated prior to a larger drill program.

New Nickel-Cobalt PGM Zone. This is the first reported nickel showing in the Yellowknife Gold Belt. An unusual nickel-cobalt PGM (platinum group metals)-rich zone is associated with the 600-metre thick less than threekilometre-long Eastern Mafic Trend on the Mon Property. A new discovery is located 1,800 metres south of the A-Zone where a prospecting program followingup on anomalous biogeochemical samples produced grab samples returning less than one per cent nickel and 0.19 per cent cobalt, together with 0.43 gpt gold from a rusty gabbroic phase. Future exploration on this zone would include mapping, sampling, geophysics, trenching, and drilling. 7