Wallbridge Continues To Intersect High Grade Mineralization With 49.06 g/t Gold Over 10.13 Metres

Highlights

• To date, 50 drill holes have been completed totaling more than 4,800 metres.
• Visible gold was observed to be present in 33 drill holes.
• Since the last press release (see Wallbridge Press Release dated August 14, 2018), partial assay results of 6 additional holes have been received with highlights as follows:

  18-1035-005: 48.81 g/t gold over 6.13 metres in the Naga Viper zone

  18-1035-010: 30.47 g/t gold over 3.63 metres in the Chipotle zone

  18-1035-017: 49.06 g/t gold over 10.13 metres in the Chipotle zone

• Assay results from additional 38 drill holes are pending.
• The 18,000-metre drilling program from underground and surface is planned to continue until December 2018.
• Blasting and mucking of the first stope (CH-01) is underway.
• Production drilling of the second stope (NV-01) will begin next week.
• Ramp development is nearing the second level (5180 Level).
• Over 2,000 tonnes of ore has been shipped and stockpiled at the Camflo mill.

“The highlighted intersections released today further confirm the robust gold grades and thicknesses within parts of the Chipotle and Naga Viper zones that were selected for this bulk sample program. The drilling from the 0990-setup testing the West extension area has also produced excellent results so far. We are defining the western extent of the new high-grade shoot discovered in the Naga Viper zone last year and are intersecting similar quality mineralization in the Paprika and Habanero zones as well, which led us to add additional drill holes to follow the mineralization westward in these two zones. We are looking forward to releasing results from these drill holes as they become available,” stated Attila Péntek, Vice-President, Exploration of Wallbridge.

The bulk sample is expected to produce 19,000 to 26,000 ounces of gold with close to 50% of gold priced at $1,720 per ounce. The expected cash flow upon completion of this bulk sample, net of all bulk sample costs and including the financing costs is expected to be sufficient to cover the budgeted working capital requirements.

“We are very pleased with the progress made in advancing underground development in preparation for the remaining bulk sample stopes. The project team, along with our contractors, have worked tirelessly to deliver a safe and successful project and we continue to build upon this as we evaluate all opportunities to deliver additional value through our ongoing efforts in health & safety, productivity and cost improvements,” stated Frank Demers, Vice-President, Mining & Projects of Wallbridge.

The bulk sample program is designed to test a few stopes in several zones. Overall grade from these planned stopes is estimated to average 18 to 25 g/t gold. The geology team has developed an extensive sampling program to characterize the mineralized material during this bulk sample. Chip samples are collected from a sampling line across each development face and muck samples are also taken in a regular pattern on surface.

Drilling to date from the 5213 level has mainly targeted the Chipotle and Naga Viper zones in the upper 100 m, between levels 5150 and 5213. Stopes that have thus far been drilled-off to the planned 6 to 7 m nominal spacing have provided good confirmation of the geological model and continuity of the high-grade shoots. Drilling is now focusing on defining stopes and expanding resources in the West extension area of the Naga Viper and Habanero zones, including the high-grade shoot discovered last year with intersections that included 260.44 g/t gold over 7.02 metres, 141.16 g/t gold over 7.06 metres and 311.08 g/t gold over 3.06 metres (see Wallbridge Press Release dated December 13, 2017).

Deeper drilling to test the down-plunge of known high-grade shoots is planned for Q4 of 2018 once the lower levels are developed.

A 10,000 metre surface drilling program is also scheduled to start in September to follow known mineralized zones and expand resources at depth and further away from the mine workings.

A summary of the drill hole results from the underground drilling are reported in Tables 1 and 2 and also shown on Figures 1 to 7 below.