Benz Mining: Multiple New Conductors Open Eastmain to the North

2021-05-26

TSXV - TSX Venture Exchange · Gold · Copper · Silver · Lithium · Cesium · Tantalum · Rubidium · Nickel · Beryllium · Tin · Niobium · Canada

HIGHLIGHTS

FLEM identify multiple conductors 2.5km north of the Eastmain Mine at Placer Lake Conductors extend over strike length of approximately 2km and coincident with historical rock chip samples of 8.3g/t gold at surface and untested by drilling Total strike length of conductors exceeds 6km highlighting the potential scale of the district In excess of 130 FLEM and DHEM modelled conductors have been identified by Benz Mining Placer Lake conductors will be tested as part of ongoing 50km fully funded drill program 2 drill rigs currently on-site drilling over 1,000m of core per week Additional FLEM survey underway covering another 3km of prospective strike to the west of Loop F

Toronto, Ontario--(Newsfile Corp. - May 26, 2021) - Benz Mining Corp. (TSXV: BZ) (ASX: BNZ) (the Companyor Benz) is pleased to provide an update on the results of the latest Fixed Loop Electromagnetic (FLEM) surveys completed to date. FLEM surveys were recently completed to the north of the Eastmain Mine in an area surrounding Placer Lake prospect. FLEM Loop F has returned positive responses significantly expanding the potential footprint of the Eastmain project to the north into an area with sparse drilling that has not tested the FLEM conductors.

[](https://orders.newsfilecorp.com/files/1818/85308_85741fe61478396a_001full.jpg)

Figure 1: Eastmain project showing location of Loop F and new associated modelled conductors over simplified geology and gridded VTEM anomalies.

To view an enhanced version of Figure 1, please visit: https://orders.newsfilecorp.com/files/1818/85308_85741fe61478396a_001full.jpg

Benz CEO, Xavier Braud, said

"_The results from our electromagnetic surveys continue to deliver beyond all expectations on the Eastmain Gold Project. Since commencing our surveys less than 9 months ago, we have now identified in excess of 130 Fixed Loop and Down Hole modelled plates over a strike length of 6km, with several of these new conductors drilled discovering new gold bearing zones. Our exploration concept and methodology continue to show that this system has the potential to be significantly larger than the currently identified resource suggests and what was previously believed to have existed at Eastmain._

"We look forward to the continued work being done as part of our 50km fully funded drill program for 2021."

Extensive conductors at Placer Lake coincident with 8.3g/t gold surface rock sample

FLEM Loop F identified several FLEM conductors in the Placer Lake area. The prospect is located 2.5km from the Eastmain Mine on a parallel litho-structural trend.

The location of the newly defined conductors coincides with airborne VTEM anomalies identified from the survey flown in 2005.

[](https://orders.newsfilecorp.com/files/1818/85308_85741fe61478396a_002full.jpg)

Figure 2: FLEM loop F with newly modelled conductors over simplified geology and 2005 VTEM anomalies and best gold drill hole intersections.

To view an enhanced version of Figure 2, please visit: https://orders.newsfilecorp.com/files/1818/85308_85741fe61478396a_002full.jpg

Several FLEM plates were modelled and are recognised in three main areas within this grid. There are only 2 historical holes drilled in the central area, however, these holes did not test the FLEM plates. High grade gold has been identified in the area with rock chips up to 8.3g/t gold above the conductors. The other FLEM anomalies further west and east have not been drilled. The modelled EM plates are shallow and show a steeper dip to the NE compared to the FLEM conductors found in the southern part of the Eastmain project.

Several historical drill holes have intersected high grade gold mineralisation within Loop F. For example, at the Meg Prospect, historical drilling has identified high grade gold mineralisation including 1.0m at 80.6g/t gold and 1.0m at 17.3g/t gold. Interestingly, this mineralisation was not identified in the recent FLEM program and represents another style of mineralisation present at Eastmain.

Ongoing work programs including mapping, soil surveys, surface sampling and drilling at Placer Lake will continue as part of the fully funded 50km drill program for 2021.

[](https://orders.newsfilecorp.com/files/1818/85308_85741fe61478396a_003full.jpg)

Figure 3: Schematic long section of the Eastmain project featuring existing resource envelope, best intersections pierce points, FLEM and DHEM conductors modelled to date. Note the new F loop conductors extending the strike covered by conductors to 6km.

To view an enhanced version of Figure 3 please visit: https://orders.newsfilecorp.com/files/1818/85308_85741fe61478396a_003full.jpg

The Eastmain Gold Project, situated on the Upper Eastmain Greenstone Belt in Quebec, Canada, currently hosts a NI 43-101 and JORC (2012) compliant resource of 376,000oz at 7.9gpt gold (Indicated: 236,500oz at 8.2g/t gold, Inferred: 139,300oz at 7.5g/t gold). The existing gold mineralization is associated with 15-20% semi-massive to massive pyrrhotite, pyrite and chalcopyrite in highly deformed and altered rocks making it amenable to detection using electromagnetic techniques. Multiple gold occurrences have been identified by previous explorers over a 10km long zone along strike from the Eastmain Mine with very limited but highly encouraging testing outside the existing resource area.

This press release was prepared under supervision and approved by Dr. Danielle Giovenazzo, P.Geo, acting as Benz's qualified person under National Instrument 43-101.

About Benz Mining Corp.

Benz Mining Corp. brings together an experienced team of geoscientists and finance professionals with a focused strategy to acquire and develop mineral projects with an emphasis on safe, low risk jurisdictions favourable to mining development. Benz is earning a 100% interest in the former producing high grade Eastmain gold mine, Ruby Hill West and Ruby Hill East projects in Northern Quebec.

On behalf of the Board of Directors of Benz Mining Corp. Xavier Braud, CEO

For more information please contact:

Paul Fowler Head of Corporate Development (Canada) Benz Mining Corp. Telephone: +1 416 356 8165 Email: info@benzmining.com

Xavier Braud CEO, Head of Corporate Development (Aus) Benz Mining Corp. Telephone +61 423 237 659 Email: info@benzmining.com

Forward-Looking Information: Certain statements contained in this news release may constitute "forward-looking information" as such term is used in applicable Canadian securities laws. Forward-looking information is based on plans, expectations and estimates of management at the date the information is provided and is subject to certain factors and assumptions, including, that the Company's financial condition and development plans do not change as a result of unforeseen events and that the Company obtains regulatory approval. Forward-looking information is subject to a variety of risks and uncertainties and other factors that could cause plans, estimates and actual results to vary materially from those projected in such forward-looking information. Factors that could cause the forward-looking information in this news release to change or to be inaccurate include, but are not limited to, the risk that any of the assumptions referred to prove not to be valid or reliable, that occurrences such as those referred to above are realized and result in delays, or cessation in planned work, that the Company's financial condition and development plans change, and delays in regulatory approval, as well as the other risks and uncertainties applicable to the Company as set forth in the Company's continuous disclosure filings filed under the Company's profile at www.sedar.com. The Company undertakes no obligation to update these forward-looking statements, other than as required by applicable law.

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ACCURACY OR ADEQUACY OF THIS RELEASE.

Competent Person's Statements:The information in this report that relates to Exploration Results is based on and fairly represents information and supporting information compiled by Mr Xavier Braud, who is a member of the Australian Institute of Geoscientists (AIG membership ID:6963). Mr Braud is a consultant to the Company and has sufficient experience in the style of mineralization and type of deposits under consideration and qualifies as a Competent Person as defined in the 2012 edition of the "Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves". Mr Braud holds securities in Benz Mining Corp and consents to the inclusion of all technical statements based on his information in the form and context in which they appear.

The information in this announcement that relates to the Inferred Mineral Resource was first reported under the JORC Code by the Company in its prospectus released to the ASX on 21 December 2020. The Company confirms that it is not aware of any new information or data that materially affects the information included in the original market announcement and confirms that all material assumptions and technical parameters underpinning the estimate continue to apply and have not materially changed. The Company confirms that the form and context in which the Competent Person's findings are presented have not been materially modified from the original market announcement.

Appendix 1: JORC Tables

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

| Criteria | JORC Code explanation | Commentary | | Sampling techniques | - Nature and quality of sampling (eg cut channels, random chips, or specific specialised industry standard measurement tools appropriate to the minerals under investigation, such as down hole gamma sondes, or handheld XRF instruments, etc). These examples should not be taken as limiting the broad meaning of sampling. Include reference to measures taken to ensure sample representivity and the appropriate calibration of any measurement tools or systems used. Aspects of the determination of mineralisation that are Material to the Public Report. In cases where 'industry standard' work has been done this would be relatively simple (eg 'reverse circulation drilling was used to obtain 1 m samples from which 3 kg was pulverised to produce a 30 g charge for fire assay'). In other cases more explanation may be required, such as where there is coarse gold that has inherent sampling problems. Unusual commodities or mineralisation types (eg submarine nodules) may warrant disclosure of detailed information. | - FLEM (TDEM) Survey:

1 loop for 37line-km of fixed loop survey was commissioned by Benz Mining to TMC Geophysics at the Company's Eastmain Property in Quebec.

The survey was conducted using a conventional Crone DPEM- TDEM Fixed conventional loop with ARMIT sensor and SmartEM 24 by EMIT receiver.

Downhole/Borehole Electromagnetics was conducted by TMC geophysics using a Crone Deep EM system.

This release does not contain any sampling results. | | Drilling techniques | - Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast, auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard tube, depth of diamond tails, face-sampling bit or other type, whether core is oriented and if so, by what method, etc). | - This release does not include drill results | | Drill sample recovery | - Method of recording and assessing core and chip sample recoveries and results assessed. Measures taken to maximise sample recovery and ensure representative nature of the samples. Whether a relationship exists between sample recovery and grade and whether sample bias may have occurred due to preferential loss/gain of fine/coarse material. | - This release does not include drill results | | Logging | - Whether core and chip samples have been geologically and geotechnically logged to a level of detail to support appropriate Mineral Resource estimation, mining studies and metallurgical studies. Whether logging is qualitative or quantitative in nature. Core (or costean, channel, etc) photography. The total length and percentage of the relevant intersections logged. | - This release does not include drill results | | Sub-sampling techniques and sample preparation | - If core, whether cut or sawn and whether quarter, half or all core taken. If non-core, whether riffled, tube sampled, rotary split, etc and whether sampled wet or dry. For all sample types, the nature, quality and appropriateness of the sample preparation technique. Quality control procedures adopted for all sub-sampling stages to maximise representivity of samples. Measures taken to ensure that the sampling is representative of the in situ material collected, including for instance results for field duplicate/second-half sampling. Whether sample sizes are appropriate to the grain size of the material being sampled. | - This release does not include drill results | | Quality of assay data and laboratory tests | - The nature, quality and appropriateness of the assaying and laboratory procedures used and whether the technique is considered partial or total. For geophysical tools, spectrometers, handheld XRF instruments, etc, the parameters used in determining the analysis including instrument make and model, reading times, calibrations factors applied and their derivation, etc. Nature of quality control procedures adopted (eg standards, blanks, duplicates, external laboratory checks) and whether acceptable levels of accuracy (ie lack of bias) and precision have been established. | - This release does not include drill results | | Verification of sampling and assaying | - The verification of significant intersections by either independent or alternative company personnel. The use of twinned holes. Documentation of primary data, data entry procedures, data verification, data storage (physical and electronic) protocols. Discuss any adjustment to assay data. | - This release does not include drill results | | Location of data points | - Accuracy and quality of surveys used to locate drill holes (collar and down-hole surveys), trenches, mine workings and other locations used in Mineral Resource estimation. Specification of the grid system used. Quality and adequacy of topographic control. | - This release does not include drill results

Grid: UTM NAD83 Zone 18N

Topographic control is cross-checked with a 2013 LIDAR survey | | Data spacing and distribution | - Data spacing for reporting of Exploration Results. Whether the data spacing and distribution is sufficient to establish the degree of geological and grade continuity appropriate for the Mineral Resource and Ore Reserve estimation procedure(s) and classifications applied. Whether sample compositing has been applied. | - This release does not include drill results | | Orientation of data in relation to geological structure | - Whether the orientation of sampling achieves unbiased sampling of possible structures and the extent to which this is known, considering the deposit type. If the relationship between the drilling orientation and the orientation of key mineralised structures is considered to have introduced a sampling bias, this should be assessed and reported if material. | - This release does not include drill results | | Sample security | - The measures taken to ensure sample security. | - This release does not include drill results | | Audits or reviews | - The results of any audits or reviews of sampling techniques and data. | - This release does not include drill results |

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

| Criteria | JORC Code explanation | Commentary | | Mineral tenement and land tenure status | - Type, reference name/number, location and ownership including agreements or material issues with third parties such as joint ventures, partnerships, overriding royalties, native title interests, historical sites, wilderness or national park and environmental settings. The security of the tenure held at the time of reporting along with any known impediments to obtaining a licence to operate in the area. | - The Eastmain Mine Project comprises 152 contiguous mining claims each with an area of approximately 52.7 ha covering a total of 8,014.36 ha plus one industrial lease permit that are owned by Eastmain Mines Inc., a wholly owned subsidiary of Fury Gold Mines. The claims are numbered 1133433 to 1133583 consecutively plus claim 104458. All of the claims are located within NTS sheet 33A 08.

The former Mine Lease BM 817 was issued on January 10, 1995 and expired in 2015 after a 20-year term. This former Mine Lease was converted to Industrial Lease 00184710000 on September 1, 2015 and contains all normal surface rights. The former mineral rights for BM 817 are now included in the expanded Claims 1133523, 1133524, 1133525, 1133505, 1133506 and 1133507.

The claims are 100% held by Fury Gold Mines subject to certain net smelter royalties ("NSR").

On August 9, 2019, Benz Mining Corp. announced that it has entered into an option agreement with Eastmain Resources Inc. (now Fury Gold Mines) to acquire a 100% interest in the former producing Eastmain Gold Project located in James Bay District, Quebec, for CAD $5,000,000.

Eastmain Resources would retain a 2% Net Smelter Return royalty in respect of the Project. Benz may, at any time, purchase one half of the NSR Royalty, thereby reducing the NSR Royalty to a 1% net smelter returns royalty, for $1,500,000.

The Eastmain Mine, as defined by the perimeter of a historic mining lease, is subject to a production royalty net smelter return ("NSR") of 2.3% through production of the next 250,000 oz produced and 2% thereafter. A package of claims surrounding the mine precinct is subject to a production royalty (NSR) of 2% in favour of Goldcorp as a result of their succession to Placer Dome in an agreement dated December 30, 1988 between Placer Dome, MSV Resources Inc. and Northgate Exploration Limited.

The 152 claims that form the Eastmain Mine Property are all in good standing with an active status. | | Exploration done by other parties | - Acknowledgment and appraisal of exploration by other parties. | - 1930s & 1940s - Prospecting of gossans

1950s & 1960s - Riocanex - Exploration of the Upper Eastmain Greenstone Belt

Mid 1960s - Fort George - Diamond drilling of a gossan zone

1696 - Canex Aerial Exploration Ltd & Placer Dvelopment Ltd - Airborne magnetic and EM surveys with ground geophysics follow up.

1970 - Placer Development Ltd - Seven holes testing an EM anomaly. Discovery of A Zone with 1.5m @ 13.71g/t Au

1974 - Nordore - Aerodat airborne AEM survey and Ground geophysics. 3 holes returned anomalous gold values adjacent to B Zone

1974 - Inco Uranerz - Airborne geophysical survey over the whole greenstone belt.

1981 & 1982 - Placer - Airborne and ground EM, ground magnetics. Drilling of EM anomalies discovered B zone and C zone.

1983 to 1985 - Placer - Airborne and ground EM, downhole PEM, 91 holes over A B and C zones.

1986 - Placer - 25 holes into A B and C zones

1987 &1988 - Placer Dome / MSV JV - Drilling of A, B and C zones

1988 to 1994 - MSV Resources - Drilling, surface sampling, trenching, regional exploration, Seismic refraction over ABC Zones,

1994 & 1995 - MSV Resources - Mining of 118,356t at 10.58g/t Au and 0.3%Cu, processed at Copper Rand plant in Chibougamau, 40,000oz recovered

1997 - MSV Resources- Exploration, mapping, prospecting, trenching.

2004 - Campbell Resources - M&I resource calculation for Eastmain Mine.

2005-2007 - Eastmain Resources - Purchase of the project from Campbell Resources, VTEM, Prospecting, regional exploration.

2007-2019 - Eastmain Resources - Sporadic drilling, regional exploration, mapping, sampling, trenching. Surface geochemistry (soils) | | Geology | - Deposit type, geological setting and style of mineralisation. | - In the Eastmain Gold Deposit, gold mineralization occurs in quartz veins with associated massive to semi-massive sulphide lenses/ veins and silicified zones associated with a deformation corridor.