Moray Gold Project – Overview
The 100% owned Moray Gold Project ("Moray") is located approximately 49 km southeast of Timmins, Ontario, within Zavitz, Hincks and Hutt Townships. The Moray Property comprises 62 contiguous mining claim units encompassing approximately 2,894 hectares.
Moray is situated in the world-class Abitibi greenstone belt of northeastern Ontario with the Property having compelling drill intersections of gold mineralization that have never been followed up. It is accessible by highway and all-weather gravel logging roads south from Timmins or via Hwy 566 west from the town of Matachewan and is within trucking distance to multiple producing mines and mills.
The Young-Davidson Gold Mine, operated by Alamos Gold Inc. ("Alamos"), is located approximately 32 km southeast of Moray. First discovered in 1916, the mine produced one million ounces of gold from 1934 to 1957 from open pit and underground development. Commercial production resumed in 2012. The Young-Davidson Mine produced 195,000 ounces of gold in 2021 and 192,200 in 2022. Alamos has forecast 2023, 2024 and 2025 gold production to be 185,000 to 200,000 ounces at total cash costs of US$900 - US$950 per ounce and all in sustaining costs of US$1,175 to US$1,225 per ounce, providing annual free cash flow in excess of US$100 million, at US$1,800 gold. As at December 31, 2022, the Young-Davidson Mine had NI 43-101 compliant Mineral Reserves of approximately 3.335 million ounces contained in 44.208 million tonnes at an average grade of 2.35 g/t Au at a gold price of US$1,400 per ounce and a cut-off grade of 1.5 g/t Au (Source: www.alamosgold.com Mineral Reserve and Resource Statement dated December 31, 2022). The estimated Mineral Reserves and Mineral Resources are hosted in volcanic rocks and altered syenite.