EAU CLAIRE
Overview
Project Location Map
Fury owns a 100% interest in the high-grade gold Eau Claire project, which is situated on over 24,000 hectares in the mining friendly Eeyou-Istchee/James Bay region of Quebec. Eau Claire is one of five known deposits in the region with the largest of these, the Newmont-owned Éléonore mine, located 57 kilometres (km) north of the Eau Claire project.
Location and Infrastructure
Infrastructure
The Eau Claire project is located approximately 800km north of Montreal and 350km northwest of Chibougamau. It is immediately north of the Eastmain 1 reservoir and about 10km northeast of Hydro Quebec’s EM-1 hydroelectric power facility. The Eau Claire deposit is situated at the western end of the property, about 2.5km from a Hydro Quebec service road. The exploration base camp is located 5km from the permanent road network. Drill roads allow seasonal access to portions of the project.
Project Geology
Regional Geology
Gold mineralization at the Eau Claire deposit is hosted within broadly EW-trending structurally controlled, high-grade en-echelon quartz-tourmaline (QT) veins and adjacent altered wall rocks, as well as variable width ESE trending gold-bearing amphibole – biotite - chlorite alteration zones.. The gold bearing vein sets may occur as narrow intervals with tourmaline and develop into thick quartz-tourmaline veins with zoned tourmaline+/-actinolite+/-biotite+/-carbonate alteration halos which can measure up to several metres in thickness. The deposit’s QT veins occur as two distinctly oriented vein sets known as the 450W and 850W zones, which form a crescent-shaped body covering a footprint approximately 100 metres (m) wide, extending for approximately 1.8km in lateral extent and to a vertical depth in excess of 900m. The 450W and 850W zones outcrop on topographic highs and surface stripping has exposed several veins within the deposit. The 450W zone vein set is interpreted to be oriented at N 85°E / 45° to 60°S, plunging steeply to the southeast, sub-parallel to an F2 fold axis. The 850 West Zone vein set is oriented N 60° E, dipping sub-vertically and plunging gently to the southwest.
Exploration
Eau Claire 7 km Deposit Trend
Eau Claire Deposit Long Section
The regional Cannard Deformation Zone hosts or is proximal to several known showings including the Knight, Natel and Clovis; all showings with known gold-quartz-tourmaline mineralization.
The Spider, Eau Claire North and Beluga targets fall within a 6km radius of the deposit and represent fold axis/fold limb-related gold tourmaline mineralization.
2020 and 2021 exploration work will focus on the Eau Claire deposit trend from Rosemary in the west out to Clovis to the east. Additional work will look to develop additional drill targets throughout the Eau Claire project.
Resources
The Eau Claire deposit contains resources as listed in the table below: *(refer to NI 43-101 report dated February 4, 2018 filed at www.sedar.com)
Table 1: Open Pit and Underground Mineral Resources as of February 4th, 2018(1-6)
| Open Pit (surface to 150 m) | Underground (150 m – 860 m) | Underground (150 m – 860 m) | Underground (150 m – 860 m) | Underground (150 m – 860 m) | Underground (150 m – 860 m) | |
|---|---|---|---|---|---|---|
| Category | Tonnes | (g/t Au) | Contained Au (oz) | Tonnes | (g/t Au) | Contained Au (oz) |
| Measured | 574,000 | 6.66 | 123,000 | 332,000 | 6.56 | 70,000 |
| Indicated | 636,000 | 5.13 | 105,000 | 2,752,000 | 6.27 | 555,000 |
| Measured & Indicated | 1,210,000 | 5.86 | 228,000 | 3,084,000 | 6.30 | 625,000 |
| Inferred | 43,000 | 5.06 | 7,000 | 2,339,000 | 6.56 | 493,000 |
Eau Claire Deposit –
COG Comparisons Underground Resource
Eau Claire Infill Drill Program
Eau Claire Intersection Lineation –
Down Plunge Extension Opportunity
Eau Claire Geology Update
(1) Mineral Resources which are not Mineral Reserves do not have demonstrated economic viability. All figures are rounded to reflect the relative accuracy of the estimate. Composites have been capped where appropriate.
(2) Open pit Mineral Resources are reported at a cut-off grade of 0.5 g/t Au within a conceptual pit shell and underground Mineral Resources are reported at a cut-off grade of 2.5 g/t Au outside the conceptual pit shell. Cut-off grades are based on a gold price of US$1,250 per ounce, a foreign exchange rate of US$0.80 and a gold recovery of 95%.
(3) The results from the pit optimization are used solely for the purpose of testing the “reasonable prospects for economic extraction” by an open pit and do not represent an attempt to estimate Mineral Reserves. There are no Mineral Reserves on the Property. The results are used as a guide to assist in the preparation of a Mineral Resource Estimate and to select an appropriate resource reporting cut-off grade.
(4) The Inferred Mineral Resource in this estimate has a lower level of confidence that that applied to an Indicated Mineral Resource and must not be converted to a Mineral Reserve. It is reasonably expected that the majority of the Inferred Mineral Resource could be upgraded to an Indicated Mineral Resource with continued exploration.
(5) The mineral resources in this Technical Report were estimated using the Canadian Institute of Mining, Metallurgy and Petroleum (CIM), CIM Standards on Mineral Resources and Reserves, Definitions and Guidelines prepared by the CIM Standing Committee on Reserve Definitions and adopted by CIM.
The Mineral Resource estimate was prepared by P&E Mining Consultants Inc. for the Eau Claire deposit as of February 4, 2018. It is an update to a N1 43-101 Mineral Resource estimate completed for Eastmain and reported on September 11, 2017 (filed on SEDAR under Eastmain’s profile).
PEA Highlights:
| 2018 Eau Claire PEA Highlights1 | 2018 Eau Claire PEA Highlights1 |
|---|---|
| Resource at 0.5 g/t COG OP and 2.5 g/t COG UG | M&I1: 853k oz @ 6.18 g/t Au Inf1: 500k oz @ 6.53 g/t Au |
| Mill Au Recovery, % | 95 |
| LOM, Years | 12 (OP:3; UG 10) |
| Diluted Grade | OP – 3.78 g/t Au UG – 5.24 g/t Au |
| Prod Rate, pa | 79k oz Au |
| LOM Production | 951k oz Au |
| Total Capex, C$M | $283M ($175M initial; $108M LOM sustaining) |
After-tax NPV5% (US$1,250 oz/Au) | C$260M |
After-tax NPV5% (US$1,500 oz/Au) | C$397M |
- Study at US$1,250 gold and assumes an exchange rate of $0.80 (CAD:USD); Refer to NI43-101 report dated Feb 4, 2018 filed under Eastmain’s profile at**www.sedar.com**.
Communities & the Environment
Fury Gold Mines understands the shared value that mining can bring but also understands its risks and the importance of responsible and sustainable development. The Company strives to maintain the highest standards of environmental protection and community engagement throughout all of its projects.
Eau Claire
The Company currently has sufficient capital resources to complete the 50,000m drilling program at Eau Claire over 2021. The Company will need to raise additional funds in order to initiate the regional exploration program at the Eau Claire project as noted below. There are no seasonal weather restrictions at Eau Claire, therefore, the Company can undertake exploration activity at the project all year round. There can be no assurances that Fury Gold will be able to obtain sufficient financing in the future.
The exploration program at Eau Claire will comprise 25,000m of infill drilling and a further 25,000m of exploration drilling, targeting the one-kilometre (“km”) down plunge extension east of the Eau Claire deposit as well as untested targets within the 7km deposit trend. The goal of the deposit expansion program is to upgrade the resource from inferred to indicated category at the southeastern limit of the deposit as well as add additional ounces between currently defined resource blocks. While the goal of the exploration drill program is to identify additional mineralization within the deposit trend, the 2021 – 2022 program will incorporate environmental, geotechnical, and metallurgical aspects in order to advance the project on all fronts.
On February 10, 2021, the Company also provided an update on its regional exploration plans at the Eau Claire deposit, with plans to explore the Percival trend, located 14km east of the Eau Claire deposit. Subject to raising sufficient additional funds, Fury Gold plans to conduct an extensive biogeochemistry program across the Eau Claire property with the goal of developing new drill targets. In conjunction with the geochemical surveys, ground-based induced polarization geophysical surveys are planned along the Percival trend to fingerprint the geophysical
Fury Gold Mines Limited 9Management’s Discussion and Analysis of Financial Condition and
Results of Operations for the Three Months Ended March 31, 2021
(Amounts expressed in thousands of Canadian dollars, unless otherwise noted)
signature of the mineralization. If no additional financing is obtained, the biogeochemistry and geochemical surveys will be deferred until such time as additional funds are secured. Additionally, on April 12th, 2021, the Company announced that it had identified two target areas on the western limit of the resource located below an area called the 850 Zone and were developed through an increased understanding of the structural and lithological controls on mineralization within the deposit