OBALSKI PROPERTY

TomaGold owns 100% of the Obalski property, a former gold-copper producer. The property covers 345 hectares, including a 33-hectare mineral concession, about 2 km south of Chibougamau, Quebec, in the heart of the Chibougamau mining camp.

The Obalski property hosts seven currently known mineralized zones, one 85-metre shaft and two ramps. A total of 230 holes have been drilled on the property for a total of over 60,000 metres of drilling, most of which was surface drilling. A total of 100,273 tonnes at grades of 1.14% Cu, 2.08 g/t Au and 6.04 g/t Ag from the A Zone between 1964 to 1972, and around 9,000 tonnes at a reported grade of 8.50 g/t Au from the D zone in 1984 were processed at a local mill, outside of the Obalski property.

Geology

Gold-copper mineralization of economic interest at Obalski occurs as sulphide-rich (up to 60%) quartz-carbonate veins within highly chloritized, carbonated and pyritized shear zones. The mineralization varies from massive to disseminated. The quartz veining is injected within fractures/shears.

Property history

Early work

Exploration began on the Obalski property in 1929. A shaft was sunk in 1936 to explore and develop the A zone and was used from 1964 to 1972 to mine 100,273 tonnes grading 1.14% Cu, 2.08 g/t Au and 6.04 g/t Ag from the A zone. A decline was developed to access the D zone and mine 9,000 tonnes grading 8.50 g/t Au in 1983-1984, with the ore processed off-site at a local mill. The decline did not connect with the earlier underground workings at the shaft.

1980s

Significant surface drilling was done in the early 1980s by Camchib Resources and in the late 1980s by Syngold Exploration. Syngold (which became Thunderwood) systematically assessed the Obalski property from 1987 to 1989, carrying out deeper drilling to probe the potential extensions of the known gold-copper-bearing mineralized structures, namely the A, B, C, D and G zones. Drilling was largely focused on the G zone, at the east end of the mining claim block; nevertheless, the best results were obtained from more limited core drilling in the area of the shaft and the decline. The 16 holes in this central area led to the discovery of a new structure to the west of the shaft, called the A-Po zone. Syngold traced the new structure, which was characterized by a thick sulphide envelope, over a strike length of more than 450 metres. The best results obtained for the A-Po zone were:

* The original drill hole number has been modified to include the year it was drilled to avoid confusion.

** The true widths of the intersections are estimated at 60% of core length for the deeper holes and 80% for the shorter holes.

*** Indicates the new metric reference for the sections; 000 m corresponds to the original 32 00W (feet).

Assaying (gold, multi-element and whole rock) was performed at three different independent laboratories: Chimitec Ltd., Bourlamaque Assay Laboratories Ltd. and Metriclab (1980) Inc. Cyanidation test work was also done at Lakefield Research. Syngold did not introduce standards or blanks into the assaying chain but carried out diligent re-sampling of the mineralization. The work report (GM-48538) included the assay certificates but did not provide any information on the sample preparation and assaying procedure or the internal control results for the laboratories. The above values have been recalculated from the original assays, taking into consideration re-assaying done by Syngold in 1988.

These values are considered as historical only and are solely used for exploration planning purposes.

Data verification by Syngold at the end of the drilling program (duplicate samples) indicated “strong variations” attributed to the nugget effect:

Note: A factor of 34.25 was used to convert ounces per ton (oz/t) to grams per tonne (g/t).

Given the highly variable results, Syngold decided to re-run samples using a leaching procedure. It should be noted that assay certificates are not available for the leaching results and the data shows come discrepancies. The most significant variations reported were as follows:

Note: A factor of 34.25 was used to convert ounces per ton (oz/t) to grams per tonne (g/t).

Notably, leaching on samples from hole OBS-87-03 returned an average grade of 2.1 g/t Au over 17.1 m, from 331.3 m to 348.4 m (compared to 0.18 g/t Au for the original assays), including a 6.7-m section, from 339.9 m to 346.6 m, grading 3.43 g/t Au (compared to just 0.254 g/t for the original assay).

In its final report, Syngold recommended a series of three wedge cuts through the A-Po zone for holes OBS-88-26, OBS-88-27, OBS-88-29, OBS-88-30 and OB-83-78; these holes were selected with the goal of reducing the “nugget effect”.

2012-2015

From 2012 to 2015, David Malouf carried out very limited diamond drilling and stripping and channel sampling on the C zone. Significant results of economic interest were intersected by both the drilling and the channel sampling, which were aimed at testing previously reported gold values. The trench has since been filled in; the drill results were as follows:

* The true width of the structure is about 71% of the core length.

Work done by TomaGold

In June 2016, TomaGold, in the process of acquiring the property, carried out limited geological mapping on mining concession CM-507 to locate the layered magnetite-rich zone and map the trenches (mineralized shears/quartz veins) and the scarce outcrops. Numerous old trenches were located outside of the main known structures. This work, along with the re-interpretation of previous magnetic surveys, confirmed that the stratigraphy within the Lac Doré Complex strikes roughly N-S on the property. Detailed contouring of the magnetic survey clearly indicates a moderate dip to the west of the layered zone of the Lac Doré Complex, which hosts the mineralization of economic interest. It is thought that the magnetite-rich layers may have acted as a typical iron formation for the deposition of gold mineralization. When alteration related to gold mineralization occurs in such environments, the magnetite is commonly replaced by sulphides (pyrrhotite). In the more recent drill logs, a substantial amount of pyrrhotite is described in association with the gold mineralization.

In 2017, TomaGold did limited surface drilling on the A zone/B zone intersection, with the following results:

In 2017, TomaGold mandated P. Roy, a Chibougamau land surveyor, to locate the old casings on the old Obalski mine concession.

In June 2019, TomaGold retained the services of Tech-2-Mines and Ovalbay Geological Services to locate and compile all the exploration data available for the Obalski property. The objectives of the program were to:

• Re-interpret the historical data to generate new drill targets.
• Conduct a limited drilling program to test the new interpretation, including introducing blanks and standards into the assaying process and paying attention to the nugget effect described by Syngold.
• Produce a NI 43-101-compliant technical report to audit the compilation of the previous data, complete data verification on the drill core from the new holes (as well as on core located for some of the holes drilled by Syngold, and holes drilled in 2012 and 2017) and make recommendations for future exploration.

From June 2019 to March 2020, most of the drill logs were located, entered into an Excel database and converted to metric, with the original hole numbers modified to include the year the hole was drilled. A surface compilation map was produced, along with a series of cross-sections at 30 m intervals from west to east, systematically covering the A-Po zone and the D, C, A, B and G zones.

The previous mineralized structures have been classified into two different families based on the mineralization and their orientation. The A, C and G zones strike 110° and show good copper values but lower gold grades than the D and B zones, which strike 080° and appear to cut and displace the older structures (A and C zones). The D zone is rich in gold with low copper values; whereas very limited sampling has been done on the B zone. The A-Po zone also strikes 110° but its mineralization and alteration appear different from that of the other 110°-striking structures, with local high gold and low copper content over large widths.

The (unaudited) database was also used to produce a preliminary 3D model of the mineralization on the Obalski property. It indicated that the A-Po zone is the western extension of the A and C zones, and confirmed that the D zone (shear and quartz veins) cut and displaced the older 110°-striking zones.

Recommendations for future exploration

The compilation work led to a recommendation for a limited diamond drilling program. Instead of “wedging” some of the holes as recommended by Syngold in its final report, the new holes would target the historical intersections, and would be drilled on the same cross-section but 30 metres above and 30 metres below the historical values.

The VMS potential of the Obalski property should not be overlooked, as the Waconichi Formation (hosting the old Lac Lemoine Mine and the Lac Scott deposit) is present in the northern portion of the property. Two holes drilled in 1951 to test the contact of the Lac Doré Complex with the surrounding mafic volcanics intersected significant stratigraphy: hole S-51-005 intersected mineralized rhyolite in contact with mafic volcanics and hole S-51-010 intersected a zone of massive sulphides (Po-Cpy) over a core length of 9.0 metres. An input anomaly also appears to identify this zone of massive sulphides.

In the area of the A-Po zone discovery hole (OBS-87-002) there is a weak electromagnetic (EM) conductor that was tested close to surface by holes O-39-29 to O-39-34. The presence of this conductor indicates that an induced polarization (IP) survey could be useful for testing the A-Po zone and its extensions at depth away from the power line. Old trenches in the vicinity of the EM anomaly should also be investigated.

2020 winter drilling program

TomaGold plans to carry out a seven-hole, 2,500-metre drilling program over the winter of 2020-21 to verify the historical results obtained for holes OBS-88-030, S-51-010 (which encountered massive sulphides) and OBS-87-002. The holes will be drilled on the same cross-sections as the old holes, 30 metres above and 30 metres below the historical values. The main goal is to better define the A-PO zone intersected on sections 120E and 450E, as only a few holes were drilled on these two sections, which lie 330 metres apart. The A-PO zone was intersected in three holes drilled on Section 120E and three holes drilled on Section 450E:

Note: Based on observations, true width is estimated at 60% of core length for longer holes and 80% for shorter holes.