TDG Gold Corp. Increases Grade, Quantity and Confidence in Mineral Resource Estimate for Shasta, Toodoggone

2023-05-01

TSXV - TSX Venture Exchange · Gold · Silver · Copper · Zinc · Lead · Molybdenum · Cobalt · Canada

WHITE ROCK, BC / ACCESSWIRE / May 1, 2023 / TDG Gold Corp. (TSXV:TDG) (the "Company" or "TDG")is pleased to announce an updated Mineral Resource Estimate1("MRE") incorporating the results of its 2022 Phase 2 drill program at the former producing Shasta gold-silver ("Au-Ag") mine. The key outcomes were increased grade, increased contained ounces and a substantial improvement of the classification of the mineral resources. An updated technical report will be filed on the Company's website and SEDAR within 45 calendar days of this disclosure.

Highlights: 2023 Expanded & Upgraded Mineral Resource Estimate (see Table 1; below for details)

Indicated Mineral Resource of 514.8 thousand ounces("koz") gold equivalent ("AuEq"2) grading 1.27 grams per tonne ("g/t") AuEq2, contained within 12.6 million metric tonnes ("Mt"). Inferred Mineral Resource of 496.3 kozAuEq2grading 1.00 g/t AuEq2, contained within 15.4 Mt. Increased cut-off gradefor new base case scenario: 0.4 g/t AuEq2cut-off grade ("COG") versus the 0.3 g/t AuEq2COG used in 2022 MRE1. MRE expandedto include the Cayley-Rainier zone to the south (Figure 1). MRE pit outline extends to within 100 m of the Newberry exploration target zone3(Figure 1). MRE shows continuity and consistency, with an increased COG having relatively minor impact on the pit-constrained AuEq2ounces. Shasta deposit remainsopen at depth and along strike(see TDG news release March 20, 2023). MRE does not include any of the Greater Shasta-Newberry3satellite exploration target zones.

Fletcher Morgan, TDG's CEO, commented: "_TDG has systematically expanded and upgraded the confidence in the Shasta deposit over the past two field seasons with ~13,250 metres of drilling. The Shasta deposit remains open along strike and at depth, with further potential for grade improvement and conversion of currently unclassified material contained within the mineral resource limiting pit to mineral resources through additional drilling._

In parallel, as we have previously disclosed, our technical team has outlined potential at Greater Shasta-Newberry for one or more additional Shasta scale deposits. Given the Shasta deposit's proximity to our existing infrastructure (consisting of the Baker mill, mine road, tailings storage facilities, mining leases and permits), we are keen to show that the project can continue to grow rapidly through targeting these satellite exploration target zones for drilling."

_*Notes to the MRE table:_

1. The Mineral Resource estimate has been prepared by Sue Bird, P.Eng., an independent Qualified Person. The effective date of the mineral resource estimate is February 11, 2023. 2. Mineral Resources are reported using the 2014 CIM Definition Standards and were estimated in accordance with the CIM 2019 Best Practices Guidelines, as required by NI43-101. 3. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability. There is no certainty that all Mineral Resources will be converted into Mineral Reserves. 4. These Mineral Resource estimates include Inferred Mineral Resources that are considered too speculative geologically to have economic considerations applied to them that would enable them to be categorized as Mineral Reserves. It is reasonably expected that the majority of Inferred Mineral Resources could be upgraded to Measured or Indicated Mineral Resource with continued exploration. 5. The Mineral Resource has been confined by a "reasonable prospects of eventual economic extraction" pit using the following assumptions, which were estimated from comparable projects: 1. Au price of US$1,800/oz, Ag price of US$20/oz at an exchange rate of 0.75 US$ perCDN$; 2. 99.8 % payable Au; 95.0 % payable Ag; US$4.25/oz Au and US$1.53/oz Ag offsite costs (refining, transport and insurance); 3. a 1.5 % NSR royalty; and uses a 94.8 % metallurgical recovery for Au and 77.2 % recovery for Ag; 4. Mining costs of CDN$2.56/tonne mineralized material, CDN$2.40/tonne waste, CDN$1.8/tonne overburden; 5. Processing Costs of CDN$12/tonne and G&A of CDN$5.00/tonne processed; 6. Pit slopes of 45 degrees.

6. _The resulting NSR equation is: NSR (CDN$) = 75.67*Au Grade*0.948 + 0.74*Ag Grade*0.772_ 7. _The resulting AuEq equation is: AuEq = Au + Ag*0.008_ 8. The bulk density of the deposit is based on 2021 & 2022 measurements and is 2.61 throughout the deposit and 2.00 for overburden. 9. The QP is not aware of political, environmental, or other risks that could materially affect the potential development of the Mineral Resources. 10. Numbers may not sum due to rounding.

Figure 1: Shasta Plan Map with MRE Pit Outline.

Overview

Following the release of the initial Shasta MRE1in 2022 (see TDG news release May 17, 2022), TDG completed a second drill campaign of 5,034 m of HQ oriented diamond drilling in 21 drillholes. This Phase 2 program focused on infill drilling to upgrade the resource classification and additional drilling to step out and test for down dip/plunge extensions to the mineralized envelope. TDG also re-assayed all 2021 drill core with greater than detection concentrations of Au after a potential low bias was detected during data quality analysis (see TDG news release August 29, 2022). This work, in addition to re-modelling, has resulted in a MRE that has upgraded a significant portion of the mineral resource into the Indicated category and has added blocks outside of the original mineral resource model into the Inferred mineral resource. Exploration has also helped to identify target areas3for potential future mineral resource expansion and reclassification in subsequent drilling (Figure 2).

Figure 2 - 2022 MRE1vs. 2023 MRE Visual Comparison.

Mineral Resource overview

The Shasta deposit mineral resource database consists of 384 drillholes with 18,526 assay intervals from 1983 through 2022. This represents 37,474 metres ("m") of assayed intervals at an average interval of 1.3 m per assay interval. Approximately 50 % of all assayed interval lengths of core used in the mineralized domains is comprised of TDG's modern, HQ diameter, oriented, diamond drill core from 2021 and 2022. The remaining assay intervals from the mineralized domains are from historical4,5drilling. All data used for the mineral resource estimate has been validated statistically to show no significant bias, either by twinned drillholes in 2021 or through statistical comparison of historical4,5data with TDG drilling using Point Validation. Historical drilling has also been validated by field validation of collar locations.

Two mineralized domains (Figure 3) were generated based on: (i) the major north-south Shasta fault system as well as, (ii) the northwest trending, sub-vertical JM zone. The block model (Figure 4) has a 5 m x 5 m x 5 m selective mining unit, with interpolation of Au and Ag calculated by Inverse Distance Cubed ("ID3"). The interpolations were limited by the domain boundaries and were clipped to the overburden surface. Historical mine workings4were removed from the in-situ mineral resource estimate.

There are no other known factors or issues that materially affect the MRE other than normal risks faced by mining projects in the province of British Columbia, Canada, in terms of environmental, permitting, taxation, socio-economic, marketing, and political factors and additional risk factors as listed in the "Cautionary Note Regarding Forward-Looking Information" section below.

Mineral Resource growth potential

The Shasta mineral resource area (Figure 5, hatched area) is open at depth and along strike. This provides TDG with potential to increase the mineral resource outside of the current MRE pit extent in addition to potentially converting unclassified blocks that may be mineralized within the MRE pit between the two dominant mineralized trends (Shasta & JM). The expansion potential includes: (i) down-dip further west in the Creek/Shasta zone (see TDG news release February 21, 2023); (ii) east of the JM zone toward the Hood and Fisher zones3(see TDG news release February 28, 2023); (iii) south of the JM pit where approximately 700 m of strike length is demonstrated to be mineralized but sparse drilling and poor assay density suggests potential to upgrade material within the MRE pit (see TDG news release February 7, 2022); (iv) further south beyond the Cayley-Rainer zone where soil geochemistry, historical4trenching, outcrop mapping and ground geophysics suggest the anomalous trend continues; and, (v) north towards Newberry where the edge of the MRE pit is < 100 m from the edge of the Newberry exploration zone3(see TDG news release February 28, 2023).

The Greater Shasta exploration target area3(Figure 5) comprises ~256 hectares ("ha") of prospective exploration ground of which the Shasta mineral resource area accounts for only 43 ha. The other ~213 ha represents road-connected, highly prospective exploration ground with potential for the discovery of additional epithermal Au-Ag style mineralization in close proximity to the defined Shasta mineral resource area. During 2022, TDG focused grassroots exploration efforts on recompilation and targeting outside of the Shasta mineral resource area (Figure 1). This included a comprehensive data review led by key TDG consultant, Chris Dail, in addition to field exploration which included geological reconnaissance, ground geophysics and soil geochemistry (see TDG news release September 13, 2022). This work resulted in the defining of four high priority, drill-ready targets within the Greater Shasta target area3(Figure 5) and the ‘rediscovery' of the Newberry target, the southern extent of which lies within 100 m of the Greater Shasta target area3and is also drill-ready (Figure 5). These targets have similar geological, geochemical, geophysical and structural characteristics to the Shasta deposit (see TDG news releases April 03, 2023and April 06, 2023) and present an opportunity to discovery and define additional mineralization in close proximity to the Shasta deposit.

Steven Kramar, TDG VP Exploration, commented: "_Through our extensive data recompilation exercise, we have now defined multiple high priority target zones within the Greater Shasta-Newberry exploration target area of which the Shasta deposit is the first that we have drill tested. A pattern that is starting to emerge is the potential for these individual ‘higher priority' target zones to coalesce into what we hope will become a single, larger target. We have seen this with the Cody Lee zone, which has been expanded to the edge of the Hood zone. We have also seen this with the Fisher and Hood zones appearing to intersect east of the Shasta deposit and showing features that could suggest further connectivity into the Shasta deposit itself at the JM zone._

_Within the 256 ha Greater Shasta area, all target zones lie within 1 kilometre of the Shasta MRE pit outline and almost the entirety of the Greater Shasta area is interconnected by historical exploration roads and trails. The potential to discover additional Shasta-sized deposits within the Greater Shasta-Newberry target area is a priority for our proposed future exploration programs._"

Figure 3 - Shasta Deposit Domain Model.

Figure 4 - Shasta Deposit Resource Block Model.

Figure 5 - Greater Shasta-Newberry Project Area showing Shasta & Exploration Target zones3.

Forward Plan

In order to continue to upgrade and expand the Shasta MRE, and in anticipation of progressing towards a preliminary economic assessment ("PEA"), TDG plans to:

1. Integrate TDG's improved geological model using lithogeochemistry and detailed core logging from the 2021 and 2022 drill campaigns. The geology at Shasta is multifaceted, with alteration and hydrothermal brecciation often masking distinguishing features of primary lithology. TDG has employed modern lithogeochemical techniques to investigate: (i) if the volcanic/volcaniclastic facies of the Shasta deposit imply a distinct geochemical ‘fingerprint'; and, (ii) if there is a grade sensitivity based on lithogeochemical rheology. Improved understanding of controls on mineralization could further improve confidence in the MRE and provide tools for targeting additional mineralization. 2. Reconfirm historical4collar locations using Differential GPS ("DGPS"). A comprehensive program of high-precision DGPS to confirm/reconfirm as many historical4collars in the Greater Shasta area3as possible with a higher degree of precision than previously completed. This effort will modernize the Greater Shasta database (including the Shasta resource area) to a precision better than 50 cm; assisting with future exploration and vein location/orientation investigations. Such data are not expected to have a material impact on the current MRE but could improve understanding of controls on, and continuity of, mineralization. 3. Undertake Detailed surveying of historical4underground development.Utilizing DGPS, TDG will survey the historical4portals to a precision better than 50 cm and access the underground workings to tie high precision modern DGPS coordinates with modern survey data. This will enable location of the historical4underground workings to a certainty level of < 1 m and allow better control on future drilling from surface by providing a 3D view of the Shasta epithermal vein system and improve confidence in interpolation of mineralization. 4. Complete the vein-orientation study and link this to the lithogeochemical/lithological analysis. TDG has two drill campaigns of high density oriented large (HQ) diameter core drilling around the Shasta deposit. Most of these cores are oriented and are undergoing vein orientation analysis which, combined with the lithogeochemical work, should assist in understanding the dominant orientations of veins/vein arrays that contain the highest precious metal concentrations. This could further improve confidence in the MRE and enhance vectoring of higher grade internal mineralized trends. 5. Undertake additional drilling of the known open extensions of the mineralization. The Shasta deposit is open at depth and along strike (see TDG news release March 20, 2023). Drilling additional potential extensions of the known mineralized system could produce an increase in the overall Shasta mineral resource. Areas of interest have been identified within and adjacent to the proposed pit outline where drill density and assay data are currently sparse, but mineralization appears to persist; for example, between JM/Shasta zone and Cayley-Rainier zone(Figure 1). This area is within the mineral resource limiting pit and, as such, any mineralization encountered could positively impact a future MRE by increasing mineralized blocks and converting in-situ waste to mineralized tonnes, thus reducing the implied strip ratio. 6. Exploring Greater Shasta-Newberry as a larger mineralized system. Exploration and drilling at Greater Shasta-Newberry offers the potential to increase understanding of the epithermal system and presents the opportunity to make one or more additional Shasta-sized discoveries for potential inclusion within a larger, updated MRE.

Geological Interpretation

The Shasta property is underlain predominantly by a succession of feldspar, quartz, biotite and hornblende crystal-rich pyroclastic and epiclastic rocks within the Toodoggone volcanics. In the Shasta deposit area, these rocks have been informally termed the basal series, the pyroclastic series and the epiclastic series based on differences in composition and depositional environments. In general, the epiclastic/volcaniclastic rocks occur to the west and north of the Shasta deposit whereas the pyroclastic rocks host the mineralization and underlie most of the area immediately south and east of the Shasta deposit. The structure on the Shasta property is dominated by north-northwest trending normal and/or dextral block faulting where tilting and rotation of the fault blocks is gentle, and the structural fabrics/breaks control the initial emplacement and/or displacement of the Au-Ag mineralization.

Geology of the Shasta deposit is a succession of rocks derived from volcanic activity and periods of quiescence with subsequent active weathering of volcanic slopes. Rocks hosting the Shasta deposit can be summarized as lapilli-ash tuffs, lapilli-block tuffs with minor ash-flows, lava flows and associated epiclastic rocks. Rocks within this succession can be cryptic to identify with alteration, mineralization and hydrothermal brecciation masking protolith identification. While compositional rheology within these units is likely associated with vein development, comprehensive investigations utilizing modern lithogeochemical techniques aided by high-density drilling has never been completed (see Forward Plan).

The Shasta deposit is a low sulphidation epithermal multiphase quartz-carbonate stockwork/ hydrothermal breccia vein deposit (quartz-adularia type) endowed by significant Au-Ag mineralization. The deposit consists of multiple overlapping high-grade quartz-calcite stockwork/breccia systems that display similar characteristics, occurring as narrow curviplanar breccias that pinch and swell with variable alteration and vein intensity over known strike lengths > 1,000 m, in addition to a lower grade ‘halo' of mineralized rocks hosting Au-Ag mineralization proximal to the high-grade breccias.

Mineralization is dominantly native gold, silver, electrum and acanthite associated with finely disseminated grey sulphides and coarser grained pyrite. Mineralization is associated within quartz and calcite, with higher grades associated with higher proportions of calcite/quartz ratios. While rocks from the Shasta deposit can be strongly altered and/or silica flooded, alteration (potassic, chloritic, phyllic and propylitic) visual wallrock alteration intensity does not appear to be indicative of precious metal concentrations and geochemical methods are better utilized. Au:Ag ratios range from 1:10 (_i.e._1 g/t Au per 10 g/t Ag) to 1:100 with a deposit average of about 1:45.

The Au-Ag mineralization of the Shasta deposit is structurally controlled along two dominant trends, the Shasta/Creek zone and the JM zone. The two trends encompass most of the historically_4_mined mineral resources during past mining efforts. The Creek/Shasta zone strikes approximately 180°, dips moderately to the west, and has a strike extent of at least 800 m. The JM zone strikes approximately 330°, dips steeply to the east, and has a strike extent of at least 1,000 m. Both zones have an interpreted shallow northern plunge, with the attitude of the structures producing an inverted "V" shape geometry converging in the north and diverging to the south.

The Au-Ag mineralization crosses lithological boundaries. The Shasta/Creek zone mineralization may be associated with the Shasta fault, and the high-grade ‘core' of the mineralized envelope approximates the attitude of the Shasta fault for a significant portion of the strike length. While the Shasta fault is likely post-mineral, the north-northwest trend of the Shasta fault (and regional structures) and associated lithological units are continuous along the western portion of the Shasta deposit, and therefore modelling economic grade along these trends (i._e._lithological and mineralization) is appropriate to use as the primary basis of the 3D modelling. The JM zone has been interpreted as a fracture system with internal hydrothermal brecciation and has a consistently mapped attitude and trend of the high-grade mineralization (core) across significant distance of strike length. The improved lithological model demonstrates continuity across a significant portion of strike length, and thus the same methodology is applied to modelling as the Shasta/Creek zone. Geological downhole structural data (faults) were utilized to assist in the generation of the 3D Shasta domain model.

Data Verification

TDG followed industry standard Quality Assurance/Quality Control ("QA/QC") protocols for the 2021 and 2022 drill programs by inserting blind certified reference materials ("CRMs"), field duplicates and blanks into the sample stream of core samples at sufficient proportions to primary core samples. QA/QC is maintained internally at the lab through rigorous use of internal CRMs, blanks, and duplicates.