AUGG Augusta Gold Corporation (QB)

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

FORM 8-K

 

CURRENT REPORT

 

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

Date of report (date of earliest event reported): July 14, 2023

 

AUGUSTA GOLD CORP.

(Exact name of registrant as specified in its charter)

 

Delaware		000-54653		41-2252162
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)

 

Suite 555 – 999 Canada Place, Vancouver, BC, Canada		V6C 3E1
(Address of principal executive offices)		(Zip Code)

 

Registrant’s telephone number, including area code: (604) 687-1717

 

_____________________________________________

(Former name or former address, if changed since last report)

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

 

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

 

Securities registered pursuant to Section 12(b) of the Act: None

 

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

 

Emerging growth company ☐

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 

 

Item 7.01. Regulation FD Disclosure.

 

On July 14, 2023, Augusta Gold Corp. (the “Company”) released a technical report titled “S-K 1300 Technical Report, Mineral Resource Estimate, Bullfrog Project, Nye County, Nevada” with an effective date of December 31, 2021 (the “Technical Report”).

 

The Technical Report was released solely to update the “qualified persons” (as defined under Item 1300 of Regulation S-K under the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) named as having prepared the Technical Report, which previously, the Company had filed in materially the same form (the “Original Technical Report”) as Exhibit 96.1 to the Company’s Annual Report on Form 10-K for the year ended December 31, 2021. Under the Original Technical Report certain employees of Forte Dynamics, Inc. were named as the “qualified persons” that prepared the Original Technical Report. Under the Technical Report as issued on July 14, 2023, Forte Dynamics, Inc. itself is named as the “qualified person” firm in place of its previously named employees.

 

Outside of changing the issue date of the report, minor typographical edits, removing the previously named “qualified persons” and adding Forte Dynamics, Inc. as the sole “qualified person” technical firm that prepared the report, there are no amendments, revisions or updates between the contents of the Original Technical Report and the Technical Report, including no amendment, revisions or updates to the mineral resource estimates contained therein. Both the Original Technical Report and the Technical Report have an effective date of December 31, 2021.

 

A copy of the Technical Report is attached to this report as Exhibit 99.1. In accordance with General Instruction B.2 of Form 8-K, the information set forth herein and in the Technical Report is deemed to be “furnished” and shall not be deemed to be “filed” for purposes of the Exchange Act and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing. The information set forth in Item 7.01 of this report shall not be deemed an admission as to the materiality of any information in this report on Form 8-K that is required to be disclosed solely to satisfy the requirements of Regulation FD.

  

Item 9.01 Financial Statements and Exhibits.

 

(d)

Exhibits

 

Exhibit No.		Name
99.1		Technical Report of Augusta Gold Corp. – Bullfrog Gold Project
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

SIGNATURE

 

Pursuant to the requirement of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

 

	AUGUSTA GOLD CORP.
Date: July 14, 2023	By:	/s/ Tom Ladner
	Name:	Tom Ladner
	Title:	VP Legal

 

 

2

Exhibit 99.1

 

S-K 1300 Technical Report   Mineral Resource Estimate   Bullfrog Gold Project   Nye County, Nevada   EFFECTIVE DATE: December 31, 2021   ISSUE DATE: July 14, 2023   PREPARED FOR: Augusta Gold Corp. Vancouver, BC BY QUALIFIED PERSONS:   Forte Dynamics, Inc.   120 Commerce Drive, Units 3-4   Fort Collins, CO 80524

  

 

Date and Signature Page

 

This report titled “S-K 1300 Technical Report Mineral Resource Estimate on the Bullfrog Gold Project, Nye County, Nevada” is current as of December 31, 2021 and was prepared and signed by Forte Dynamics, Inc., acting as a Qualified Person Firm.

 

(signed and sealed)          Date: July 14, 2023

 

Forte Dynamics, Inc.

120 Commerce Drive, Units 3-4

 

Fort Collins, CO 80524

 

 

Table of Contents

 

1.	Executive Summary					9
	1.1	Location, Property Description and Ownership				9
	1.2	Geology and Mineralization				10
	1.3	Exploration, Drilling, Sampling and QA/QC				11
		1.3.1		Exploration		11
		1.3.2		Drilling		12
		1.3.3		Sampling		13
		1.3.4		QA/QC		14
		1.3.5		Database Improvements		14
	1.4	Mineral Processing and Metallurgical Testing				14
	1.5	Mineral Resource Estimates				17
	1.6	Conclusions				20
		1.6.1		Geology and Mineral Resources		20
		1.6.2		Metallurgical Test Work and Mineral Processing		21
		1.6.3		Infrastructure		22
	1.7	Recommendations				22
2.	Introduction					23
	2.1	Units of Measure				23
	2.2	Abbreviations				23
	2.3	Qualified Persons and Details of Inspection				24
3.	Property Description					24
	3.1	NPX Assignment of Lands				48
	3.2	Mojave Gold Option				48
	3.3	Barrick Bullfrog Inc. Lease and Option				48
	3.4	Lunar Landing Lease				48
	3.5	Brown Claims				49
	3.6	Barrick Claims (2020)				49
	3.7	Abitibi Royalties Option				50
	3.8	Other Property Considerations				50
	3.9	Environmental and Permitting				50
	3.10	Significant Risk Factors				51
4.	Accessibility, Climate, Local Resources, Infrastructure and Physiography					52
	4.1	Accessibility				52
	4.2	Physiography, Climate and Vegetation				52
	4.3	Local Resources and Infrastructure				53
5.	History					54
6.	Geological Setting, Mineralisation and Deposit					56
	6.1	Regional Geology				56
	6.2	Local and Property Geology				57
		6.2.1		Cenozoic Rocks		59
		6.2.2		Pre-14 Ma Rocks		59
		6.2.3		14 to 11 Ma Rocks		61
		6.2.4		Post 11 Ma to 7.6 Ma Rocks		63

 

 

		6.2.5		10.6-10.0 Ma Rainbow Mountain Sequence (Trm, Tr11-16 and other units)		64
	6.3	District Geology				65
	6.4	Mineralization and Veining				66
		6.4.1		Bullfrog Mineralization		66
		6.4.2		Montgomery-Shoshone Mineralization		67
		6.4.3		Bonanza Mineralization		69
	6.5	Deposit				69
7.	Exploration					71
	7.1	Bullfrog				72
		7.1.1		Mystery Hills		72
		7.1.2		Ladd Mountain		72
	7.2	Montgomery-Shoshone Area				72
		7.2.1		Polaris Vein		72
		7.2.2		East Zone		72
		7.2.3		Deep Potential		72
	7.3	Bonanza Mountain				73
	7.4	Gap				73
	7.5	Drilling				74
		7.5.1		2020 - 2021 Drilling		76
		7.5.2		2021 Additional Drilling Included in the End of Year 2021 Resource Model		86
8.	Sample Preparation, Analyses, and Security					91
	8.1	Historic Data (1983 – 1996)				91
	8.2	Augusta Gold Corp. (2020-2021)				91
		8.2.1		Augusta Gold Corp. 2020		91
		8.2.2		Augusta Gold Corp 2021		93
9.	Data Verification					103
	9.1	Check Assay				104
10.	Mineral Processing and Metallurgical Testing					108
	10.1	St. Joe				108
		10.1.1		Large Column Leach Test		108
		10.1.2		Bottle Roll Tests on UG Samples		109
		10.1.3		Column Testing by Kappes Cassiday & Associates		109
	10.2	Pilot Testing by Barrick				110
	10.3	Column Leach Tests				111
	10.4	Conclusions for Heap Leaching				112
	10.5	Leach Pad Siting				113
	10.6	Additional Testing				114
11.	Mineral Resource Estimates					116
	11.1	Summary				116
	11.2	Database				119
		11.2.1		Vulcan Isis Drillhole Database		120
		11.2.2		Drillhole Exclusion		122
	11.3	Grade Shells				123
	11.4	Statistical Analyses and Capping of Outlier Values				125
	11.5	Compositing				126

 

 

	11.6	Variography		126
	11.7	Block Model		129
	11.8	Estimation Methodology		131
	11.9	Resource Estimate Classification		133
	11.10	Density Data		133
	11.11	Pit Slopes		135
	11.12	Reblocking		136
	11.13	Pit Shell Optimization		137
12.	Mineral Reserve Estimates			140
13.	Mining Methods			140
14.	Process and Recovery Methods			140
15.	Infrastructure			140
16.	Market Studies			140
17.	Environmental Studies, Permitting, and Plans, Negotiations, or Agreements with Local Individuals or Groups			140
18.	Capital and Operating Costs			140
19.	Economic Analysis			140
20.	Adjacent Properties			141
21.	Other Relevant Data and Information			142
22.	Interpretation and Conclusions			143
	22.1	Geology and Mineral Resources		143
	22.2	Metallurgical Test Work and Mineral Processing		144
	22.3	Infrastructure		144
23.	Recommendations			145
	23.1	Exploration		145
	23.2	Baseline Studies		145
	23.3	Additional Studies		145
	23.4	Estimated Costs		145
24.	References			147
25.	Reliance on Information Provided by the Registrant			153
26.	Appendix 1			154
	26.1	Statistical Analysis of Drillhole Data for Gold Assays		154
	26.2	Statistical Analysis of Drillhole Data for Silver Assays		161
	26.3	Swath Plots		168

 

 

List Of Tables

 

Table 1-1: Location and Depth of 2020 - 2021 Holes		12
Table 1-2: 1994 Leach Test Results		14
Table 1-3: 1995 Pilot Heap Leach Test Results		15
Table 1-4: 2018 Column Leach Test Results		15
Table 1-5: 2019 Column Leach Test Results		16
Table 1-6: 2020 Bottle Roll Test Results		17
Table 1-7: Bullfrog Mineral Resources		18
Table 1-8: Montgomery-Shoshone Mineral Resources		19
Table 1-9: Bonanza Mineral Resources		19
Table 1-10: Combined Mineral Resources		20
Table 3-1: Lands Under the Control of Augusta Gold Corp.		26
Table 3-2: Additional Minor Permits Required		51
Table 5-1: Bullfrog Project Production		54
Table 7-1: Drilling Totals by Type		75
Table 7-2: Active Years by Operator		76
Table 7-3: Location and Depth of 2020 - 2021 Holes		78
Table 7-4: Drilling Results from the 2020 - 2021 Program		81
Table 7-5: Location and Depth of Additional 2021 Holes		87
Table 7-6: Drilling Results from Additional Drilling in 2021 Program		88
Table 8-1: CRM Expected Values		92
Table 8-2: Summary of Gold in CRM’s		92
Table 8-3: CRM Expected Values		92
Table 8-4: Blank Failure Threshold		93
Table 8-5: Duplicate Sample Results		93
Table 8-6: CRM Expected Values		100
Table 8-7: Summary of Gold in CRMs		101
Table 8-8: Blank Failure Threshold		101
Table 9-1: Check Assay Gold Statistics		106
Table 10-1: Typical Processing Statistics from 1989-1999		108
Table 10-2: Leach Test Results		109
Table 10-3: Heap Leach Pilot Tests – Barrick		110
Table 10-4: Column Leach Test Results (2018)		111
Table 10-5: Column Leach Test Results (2019)		112
Table 10-6: Estimated Heap Leach Recovery		112
Table 10-7: Summary Metallurgical Results – Bottle Roll Tests		114
Table 11-1: Bullfrog Mineral Resources		117
Table 11-2: Montgomery-Shoshone Mineral Resources		118
Table 11-3: Bonanza Mineral Resources		118
Table 11-4: Combined Property Mineral Resources		119
Table 11-5: Drillhole Exclusion for Bullfrog Deposit		122
Table 11-6: Drillhole Exclusion for Montgomery-Shoshone Deposit		123
Table 11-7: DOMAIN Codes and Corresponding Grade Shell Triangulations		125
Table 11-8: Capping Values and Statistics for Gold Assays		126
Table 11-9: Capping Values and Statistics for Silver Assays		126
Table 11-10: Block Model Extents		129

 

 

Table 11-11: Block Estimation Parameters		131
Table 11-12: Block Estimation Parameters		133
Table 11-13: Density Assignments for Mineralized Domains		134
Table 11-14: Density Assignments for Unmineralized Domains		134
Table 11-15: Density Assignments for Dump, Fill and Alluvium		134
Table 11-16: LG Pit Optimization Parameters		137
Table 23-1: Land Positions of the Bullfrog Project and Adjacent Properties		146
List Of Figures
Figure 1-1: Location Map		10
Figure 1-2: District Geology Map		11
Figure 3-1: Location Map		25
Figure 3-2: Property Map of the Bullfrog Project		47
Figure 4-1: Photo of Bullfrog Hills at Rhyolite		52
Figure 6-1: Regional Setting of the Bullfrog Mine (Eng et al., 1996)		56
Figure 6-2: Bullfrog District – Stratigraphy and Mineralization		58
Figure 6-3: Cross Section of the Bullfrog Project Area		59
Figure 6-4: District Geology Map — Each Section is 1.6 km, or 1 Mile Square		66
Figure 7-1: Exploration and Mining Targets at the Bullfrog Project		71
Figure 7-2: Plan Map of Drill Hole Collars		77
Figure 7-3: Drilling in the Montgomery-Shoshone Area from the 2020 - 2021 Drill Campaign		80
Figure 7-4: Drilling in the Bullfrog Area from the 2020 - 2021 Drill Campaign		80
Figure 8-1: Truck Mounted Core Rig		94
Figure 8-2: Laydown Yard and Sample Storage		94
Figure 8-3: Logging Laptop		95
Figure 8-4: Core Shed and Quick Log Station		96
Figure 8-5: Logging Facility		97
Figure 8-6: Core Saw		98
Figure 8-7: Sampling Tables		98
Figure 8-8: Core Cutting Facility		99
Figure 8-9: Sample Pick Up Area		100
Figure 8-10: Gold Pulp Comparison		102
Figure 9-1: Check Assay Gold Comparison		105
Figure 9-2: Check Assay Gold - Percent Difference		106
Figure 9-3: Silver Check Assay Comparison		107
Figure 10-1: Leach Test Results		110
Figure 10-2: Potential Leach Pad Sites & Approximate Capacities		113
Figure 11-1: Drillhole Collar Locations		121
Figure 11-2: Grade Shell (DOMAIN) Triangulations		124
Figure 11-3: Variogram for Bullfrog Low Grade Domain (11)		127
Figure 11-4: Variogram for Bullfrog High Grade Vein Domain (12)		127
Figure 11-5: Variogram for Montgomery-Shoshone Low Grade Domain (21)		128
Figure 11-6: Variogram for Bonanza Low Grade Domain (31)		128
Figure 11-7: Bullfrog Underground Stope Shapes		130
Figure 11-8: Bullfrog 8620N Cross-Section Showing Gold Blocks and Composites		132
Figure 11-9: Oxide and Sulfide Coding – Bullfrog Section 8600N		133

 

 

Figure 11-10: Bullfrog Pit Slope Angles and Slope Sector Assignments		135
Figure 11-11: Bonanza Pit Slope Angles and Slope Sector Assignments		136
Figure 11-12: Montgomery-Shoshone Pit Slope Angles and Slope Sector Assignments		136
Figure 11-13: Bullfrog		137
Figure 11-14: Montgomery-Shoshone		138
Figure 11-15: Bonanza		138
Figure 20-1: Land Positions of the Bullfrog Project and Adjacent Properties		141

  

  

1.

EXECUTIVE SUMMARY

 

A technical report has been prepared for Augusta Gold Corp. (Augusta, Augusta Gold, or the Company) by Forte Dynamics for the Bullfrog Gold Project (Project, project, or Bullfrog Project) in Nye County, Nevada. This is a Technical Report Summary (TRS) summarizing an Initial Assessment of Mineral Resources aligned with Securities and Exchange Commission Regulation S-K subpart 1300 (S-K 1300).

 

This report was prepared for the purpose of producing an updated mineral resource statement for the project that includes new drilling information, and geologic modeling associated with the work that was completed through 2021.

 

New resource models were completed for the three deposits at Bullfrog (Bullfrog, Montgomery-Shoshone, Bonanza) and mineral resource estimates were calculated within optimized pit shells for the Bullfrog area, Montgomery-Shoshone area and the Bonanza area. Previously, resources were reported from earlier models in an August 2021 NI 43-101 technical report.

 

1.1

Location, Property Description and Ownership

 

The Company’s whollyowned Bullfrog Gold Project is located in the Bullfrog Hills of Nye County, Nevada and in the southern half of the Bullfrog Mining District (Figure 1-1). Basic amenities are available in the town of Beatty, which is situated 6.5 km east of the Project. Las Vegas is the largest regional city with full services and is a 260 km drive to the site. Project properties are located in Sections 25, 26, 35 and 36 of T11S, R46E and Sections 1, 2, 3, 4, 5, 6, 8 9, 10, 11, 12, 13, 14, 15, 16, 17, and 23 of T12S, R46E, Mt. Diablo Meridian. The location of the property is shown in Figure 1-1.

 

The Company has four option/lease/purchase agreements in place and has located 61 claims that give it control of 439 unpatented lode mining claims and mill site claims, and 86 patented. The claims do not have an expiration date, as long as the fees and obligations are maintained.

 

 

Figure 1-1: Location Map

 

 

1.2

Geology and Mineralization

 

The Project is in the southern Walker Lane trend within brittle upper-plate volcanic host rocks that were severely deformed from dominant detachment faulting and associated dip-slip and strike-slip displacements. Epithermal solutions permeated the broken host rocks in the Bullfrog Montgomery-Shoshone (M-S) and Bonanza areas precipitating micron-sized and relatively high-grade gold (Au) within major quartz-calcite veins and disseminated gold in associated stock-works. The veins contain gangue minerals other than quartz, such as calcite and manganese oxides, the latter of which contributes associated silver (Ag) recoveries and gold. The district geology map is shown below in Figure 1-2.

 

 

Figure 1-2: District Geology Map

 

 

1.3

Exploration, Drilling, Sampling and QA/QC

 

1.3.1

Exploration

 

The Company’s exploration activities to date have focused on the following:

 

●

Exploration drilling, data acquisition and geologic modeling;

●

Acquiring, organizing, digitizing and vetting electronic and paper data bases obtained from Barrick mainly related to drill data, metallurgy and project infrastructure; and

●

Maintaining and expanding the land holdings.

 

 

1.3.2

Drilling

 

The project drilling includes 1,311 holes, for a total of 263,757 meters completed between 1983 and early 2021. The holes were drilled using both core and reverse circulation methods, as detailed in the drilling section of this report. Table 1-1 summarizes the project drilling by year.

 

Table 1-1: Location and Depth of 2020 - 2021 Holes

Year	Total Drilling		Coring		Reverse Circulation
	Holes	Meters	Holes	Meters	Holes	Meters
1983	6	975	6	975	0	0
1984	37	3,560		0	37	3,560
1985	3	303		0	3	303
1986	29	3,364		0	29	3,364
1987	163	29,479	3	732	163	28,747
1988	321	66,325	32	6,121	321	60,204
1989	71	12,285		0	71	12,285
1990	154	37,114	33	3,676	154	33,438
1991	79	22,954	42	3,627	79	19,327
1992	23	4,907		0	23	4,907
1993	9	387		0	9	387
1994	210	31,362	9	1,412	210	29,951
1995	99	22,370	3	248	99	22,122
1996	58	15,254	19	3,329	45	11,924
2020	26	4,405	1	502	25	3,903
2021	43	14,820	38	12,749	5	2,071
Total	1,331	269,864	186	33,371	1,273	236,493

 

A total of 69 drill holes, 30 reverse circulation (RC) and 39 core holes have been drilled by Augusta from 2020-2021. The purpose of the drilling was to further define resources and the ultimate limits of the Bullfrog and Montgomery-Shoshone pits and gather data to support advanced geotechnical and metallurgical studies. The 2020 program also fulfilled a final work commitment for the Company to purchase a 100% interest in lands under lease from Barrick by mid-September 2020. Two holes were drilled at the Paradise Ridge target. Section 7 of this report details the results of the 2020 - 2021 drilling program.

 

 

1.3.3

Sampling

 

1.3.3.1

Historic (1983-1986)

 

Historic drilling and coring information used in this resource estimate was obtained from several drill programs that began in 1983 with St. Joe Minerals, continued with Bond Gold and Lac Minerals, and ended by Barrick in late 1996. Of 1,262 total holes drilled in the area, 147 holes included core and 1,243 holes were drilled using reverse circulation methods. Most of the cored holes included intervals of core plus RC segments. Percent recovery and RQD measurements were made on all core intervals. An assessment was made of the quality of the orientation data and the core was marked accordingly. The core was then logged, recording lithological, alteration, mineralization, and structural information including the orientation of faults, fault lineation’s, fractures, veins, and bedding. With few exceptions, the entire lengths of the holes were sampled. Sample intervals were 5 feet and occasionally based on the geological logging, separating different lithologies and styles of mineralization and alteration. Samples were marked and tagged in the core box before being photographed, after which the core was sawed in half, with one half sent for assay and one half retained for future reference. Each sample interval was bagged separately and shipped to the lab for analysis.

 

Cuttings from nearly all reverse circulation drill programs were divided into two streams, one was sampled and the other was disposed during the reclamation of each drill site. Using a Jones splitter, the sample stream was further divided into two sample bags, one designated for assaying and the second duplicate designated as a field reject. Samples were collected at five-foot intervals and bagged at the drill site. Each five-foot sample was sealed at the drill site and not opened until it reached the analytical lab. At each 20-foot rod connection, the hole was blown clean to eliminate material that had fallen into the hole during the connection. The designated assay samples for each five-foot interval were collected by the site geologist and moved to a secure sample collection area for shipment to accredited laboratories off site. When duplicate samples were collected, they were retained at the drill site as a reference sample, if needed. If the duplicate samples were not used, they were blended with site materials during site reclamation.

 

1.3.3.2

Augusta Gold Corp (2020-2021)

 

Augusta Gold Corporation (Augusta Gold) commenced exploration on the Bullfrog Gold Project in 2020, continuing through the second quarter of 2021. Work performed consisted of oriented diamond core drilling, conventional Reverse Circulation (RC) drilling and reconnaissance mapping and surface sampling for drill target generation. A digital, Access based database (GeoSpark) has been maintained by Augusta Gold, including all assays from drill samples and geochemical analysis from surface rock chip samples, completed on the project.

 

Oriented diamond core drilling (HQ3) was performed using two track-mounted LF-90 drills and one truck mounted LF-90 drill. Core orientation was collected using Reflex ACTIII tooling, overseen by staff geologists and verified by a third-party contractor. All drill core was logged, photographed, split, and sampled on-site.

 

Conventional Reverse Circulation drilling was performed using a single Atlas Copco RD 10+, with a hole diameter of 6.75 inches. All RC samples were logged and sampled on-site. Samples were air dried, sealed in bulk bags on-site. Additionally, surface rock chip samples were collected during field reconnaissance. These samples were collected, described, and geolocated in the field before being in sealed rice bags for transport.

 

 

1.3.4

QA/QC

 

The sampling QA/QC program was originally established by St. Joe Minerals. Subsequent owners followed the procedures with any necessary updates to meet quality assurance standards of the time. The standard practices included the supervision of drilling, logging of core, as well as in-stream sample submittal for blanks, certified standards, and duplicate testing to ensure laboratory performance. All assay testing was completed by outside, fully accredited laboratories, such as Skyline, Legend, Iron King, Barringer, American Assay, Chemex, ALS and Paragon Geochemical. Assay certificates are available and have been electronically scanned to complete the project drilling database.

 

1.3.5

Database Improvements

 

During the later half of 2021, Augusta Gold Corp. staff conducted an in-depth review and update of legacy data in the Bullfrog drilling database. During the process, previously missing assay information was found on old assay certificates, was verified against drill logs, and added to the database. Additionally, assay grades were checked throughout the legacy data set and consistent conversions from imperial to metric grade units were updated where needed. During the process, it was discovered that some series of older drillholes had improper imperial-metric grade conversions and were subsequently updated, resulting in grade increases for the majority of affected drillholes. Forte Dynamics requested and received assay certificate and logging data for approximately 10% of the relevant legacy drillholes in the economically important portions of gold deposits and has verified the accuracy of the database for those drillholes.

 

1.4

Mineral Processing and Metallurgical Testing

 

Metallurgical testing programs that are relevant to the development plans of the Project are summarized below.

 

In 1986 St. Joe American performed two large column tests on composites of M-S samples and recovered 56% of the gold after 59 days of leaching material grading 0.034 opt and crushed to -19 mm (-3/4 inch). The other column recovered 49% of the gold after 59 days of leaching minus 304.8 mm (-12-inch) material grading 0.037 opt. Projected 90-day recoveries were 61% and 54% respectively.

 

Results from leach tests performed in 1994 by Kappes Cassiday of Reno, Nevada on 250 kg of sub-grade material from the Bullfrog mine are shown below:

 

Table 1-2: 1994 Leach Test Results

	Bottle	Column	Column
Size, mesh, & mm (inch)	-100 mesh	-38 mm (-1.5”)	-9.5 mm (-3/8”)
Calc.  Head, opt Au	0.029	0.035	0.029
Rec %	96.6	71.4	75.9
Leach time, days	2.0	41	41
NaCN, kg/t (lb/short ton)	0.5 (0.1)	0.385 (0.77)	5.35 (10.7)
Lime, kg/t (lb/short ton	1.0 (2.0)	0.155 (0.31)	1.75 (0.35)

 

 

In 1995 Barrick performed pilot heap leach tests on 765 t (844 short tons) of BF subgrade material and 730 t (805 short tons) from the M-S pit. Both composites were crushed to 12.7 mm (-1/2 inch). Results are shown in Table 1-3 below.

 

Table 1-3: 1995 Pilot Heap Leach Test Results

	BF Low-Grade	M-S Mineralization
Calc.  Head, opt Au	0.019	0.048
Calc.  Head, opt Ag	0.108	0.380
Projected Au Rec %	67	74
Projected Ag Rec %	9	32
Leach Time, days	41	37
NaCN, kg/t (lb/short ton)	0.10 (0.20)	0.125 (0.25)
Lime, kg/t (lb/short ton)	Nil (Nil)	Nil (Nil)

 

In 2018 and 2019, standard column leach tests were performed on materials from the Bullfrog property by McClelland Laboratories, located in Reno, NV. The sample tested in 2018 was a composite sample created from a bulk sample representing “Brecciated Vein Ore Type”. Results from the 2018 test work are shown in Table 1-4 below.

 

Table 1-4: 2018 Column Leach Test Results

Feed Size	Crush Method	Test	Time	Au Recovery, %
9.5mm (3/8”)	Conventional	Column	60 days	58
9.5mm (3/8”)	Conventional	Bottle Roll	4 days	59
1.7mm (10 mesh)	HPGR	Column	60 days	77
1.7mm (10 mesh)	HPGR	Bottle Roll	4 days	70
150µm	Conventional/Grind	Bottle Roll	4 days	89

 

The 2018 column leach test results suggest a crush size dependency where HPGR crushing (high pressure grinding rolls) may have the potential to significantly improve recovery. The lime requirement for protective alkalinity was low and cyanide consumption was moderate. The results of the 2019 program are summarized in Table 1-5 below.

 

 

Table 1-5: 2019 Column Leach Test Results

Sample	Feed Size	Crush Method	Test	Time	Au Rec., %
Composite E	9.5mm (3/8”)	Conventional	Column	151 days	75
Composite E	6.3mm (1/4”)	HPGR	Column	122 days	77
Composite E	1.7mm (10 mesh)	HPGR	Column	102 days	89
MS-M-1	9.5mm (3/8”)	Conventional	Column	108 days	66
MS-M-1	6.3mm (1/4”)	HPGR	Column	108 days	77
MS-M-1	1.7mm (10 mesh)	HPGR	Column	89 days	85
MH-M-2	9.5mm (3/8”)	Conventional	Column	109 days	83
MH-M-2	6.3mm (1/4”)	HPGR	Column	105 days	88
MH-M-2	1.7mm (10 mesh)	HPGR	Column	86 days	91

 

In 2020, cyanidation bottle rolls tests were conducted on 14 variability composites from the Bullfrog project. Details of this testing can be found in Section 10 of this report. The Bullfrog variability composites generally were amenable to agitated cyanidation treatment at a nominal 1.7 mm feed size. The samples were not crushed with an HPGR. Gold recovery ranged from 38.7% to 86.8% and averaged 68.0%. Recovery was 58.1% or greater for 12 of the 14 composites. Gold recovery was not correlated to gold head grades for these 14 composites. Gold recovery consistently decreased with increasing sulfide sulfur content. Results from the bottle roll test are shown below in Table 1-6.

 

 

Table 1-6: 2020 Bottle Roll Test Results

Composite	Drillhole						REAGENT REQUIREMENTS
		Interval (ft)		Au Rec.	Head Grade Au g/tonne		kg/tonne mineralized material
		From	To	%	Calculated	Assayed	NaCN Cons.	Lime Added
4594-001	BM-20-1	0	40	67.8	0.59	0.80	0.15	1.1
4594-002	BM-50-1	40	75	67.2	0.58	0.50	0.11	1.2
4594-003	BM-20-4	280	335	44.4	0.27	0.26	0.12	1.7
4594-004	BM-20-4	335	390	38.7	0.31	0.30	0.17	1.5
4594-005	BM-20-6	295	395	66.7	0.27	0.29	0.11	1.4
4594-006	BM-20-6	395	485	58.5	1.06	0.86	0.11	1.6
4594-007	BM-20-11	95	185	72.7	0.22	0.18	<0.07	1.1
4594-008	BM-20-14	0	45	58.1	0.31	0.27	<0.07	1.8
4594-009	BM-20-14	90	135	80.0	0.15	0.13	0.14	1.5
4594-010	BM-20-14	170	235	84.2	0.19	0.21	0.14	1.2
4594-011	BM-20-14	235	260	86.8	0.53	0.57	0.09	1.2
4594-012	BM-20-15	35	130	72.3	0.47	0.46	0.17	1.4
4594-013	BM-20-19	0	115	73.3	0.30	0.27	0.08	1.4
4594-014	BM-20-22	305	385	81.0	0.63	0.67	0.09	1.6

 

1.5

Mineral Resource Estimates

 

Mineral resources were updated based on technical information as of December 31, 2021, by Forte Dynamics for the Bullfrog project. The update utilizes all new drilling through the end of 2021 in addition to updated geologic models and database improvements by Augusta Gold Corp. staff. Three-dimensional block models for each area (Bullfrog, Montgomery-Shoshone and Bonanza) were created using Vulcan software. Surfaces and solids representing topography, overburden, geologic units, historic stope shapes and gold mineralization were incorporated into the resource models. Resource estimates utilize drill hole, survey, analytical and bulk density information provided by the project personnel. Gold and silver values have been given null values for all material that has been historically mined by both open pit and underground methods. Bulk density has been adjusted for backfill material placed in the historical open pit and underground operations.

 

Mineral resources are pit constrained using reasonable cost assumptions, however detailed costing and economic evaluations have not been performed. The resources only consider mining mineralization and waste that will take place on lands controlled by Augusta Gold Corp. Pit slope parameters are based on the existing pit wall angles and vary by geology, depth and lateral extent. Different metallurgical recoveries were assigned to oxide and sulphide material and used in the calculation of the optimized pit shells.

 

Mineral resources are reported inside optimized pit shells with Minemax software using high-level economic assumptions, geotechnical pit slope parameters and property boundaries. Estimated mineral resources for the Bullfrog Project are being reported for the Bullfrog, Montgomery-Shoshone and Bonanza areas, respectively.

 

 

Table 1-7: Bullfrog Mineral Resources

Mineral Resources as of December 31, 2021 - Bullfrog
Redox	Classification	Tonnes (Mt)	Au grade (g/t)	Ag grade (g/t)	Au Contained (koz)	Ag Contained (koz)
Oxide	Measured	24.50	0.537	1.28	422.77	1,010.02
	Indicated	36.32	0.515	1.14	602.02	1,332.18
	Measured and Indicated	60.82	0.524	1.20	1,024.79	2,342.20
	Inferred	14.40	0.460	0.77	213.06	358.49
Sulphide	Measured	1.30	0.710	1.28	29.77	53.52
	Indicated	1.99	0.625	1.32	39.94	84.47
	Measured and Indicated	3.29	0.659	1.30	69.72	137.99
	Inferred	1.05	0.657	1.14	22.14	38.53
Total - Oxide and Sulphide	Measured	25.80	0.545	1.28	452.55	1,063.54
	Indicated	38.31	0.521	1.15	641.96	1,416.65
	Measured and Indicated	64.12	0.531	1.20	1,094.51	2,480.19
	Inferred	15.44	0.474	0.80	235.20	397.02

 

Notes:

 

1.	Oxide estimated Mineral Resources are reported within a pit shell using the Lerch Grossman algorithm, a gold price of US$1,550/oz and a recovery of 82% for Au and silver price of US$20/oz and a recovery of 20% For Ag.

 

2.	Sulphide estimated Mineral Resources are reported within a pit shell using the Lerch Grossman algorithm, a gold price of US$1,550/oz and a recovery of 50% for Au and silver price of US$20/oz and a recovery of 12% for Ag.

 

3.	Mining costs for mineralized material and waste are US$2.25/tonne.

 

4.	Processing, general and administration, and refining costs are US$5.00/tonne, US$0.50/tonne, and US$0.05/tonne respectively.

 

5.	Due to rounding, some columns or rows may not compute as shown.

 

6.	Estimated Mineral Resources are stated as in situ dry metric tonnes.

 

7.	The estimate of Mineral Resources may be materially affected by legal, title, taxation, socio-political, marketing, or other relevant issues.

 

  

Table 1-8: Montgomery-Shoshone Mineral Resources

Mineral Resources as of December 31, 2021 - Montgomery-Shoshone
Redox	Classification	Tonnes (Mt)	Au grade (g/t)	Ag grade (g/t)	Au Contained (koz)	Ag Contained (koz)
Oxide	Measured	1.97	0.637	3.35	40.35	212.12
	Indicated	1.35	0.555	2.85	24.04	123.66
	Measured and Indicated	3.32	0.603	3.15	64.38	335.78
	Inferred	1.05	0.586	3.45	19.76	116.41

 

Notes:

 

1.	Oxide estimated Mineral Resources are reported within a pit shell using the Lerch Grossman algorithm, a gold price of US$1,550/oz and a recovery of 82% for Au and silver price of US$20/oz and a recovery of 20% For Ag.

 

2.	Sulphide estimated Mineral Resources are reported within a pit shell using the Lerch Grossman algorithm, a gold price of US$1,550/oz and a recovery of 50% for Au and silver price of US$20/oz and a recovery of 12% for Ag. No sulphide material was reported for Montgomery-Shoshone.

 

3.	Mining costs for mineralized material and waste are US$2.25/tonne.

 

4.	Processing, general and administration, and refining costs are US$5.00/tonne, US$0.50/tonne, and US$0.05/tonne respectively.

 

5.	Due to rounding, some columns or rows may not compute as shown.

 

6.	Estimated Mineral Resources are stated as in situ dry metric tonnes.

 

7.	The estimate of Mineral Resources may be materially affected by legal, title, taxation, socio-political, marketing, or other relevant issues.

 

Table 1-9: Bonanza Mineral Resources

Mineral Resources as of December 31, 2021 - Bonanza
Redox	Classification	Tonnes (Mt)	Au grade (g/t)	Ag grade (g/t)	Au Contained (koz)	Ag Contained (koz)
Oxide	Measured	2.35	0.446	0.44	33.78	33.48
	Indicated	1.22	0.422	0.44	16.61	17.17
	Measured and Indicated	3.58	0.438	0.44	50.40	50.65
	Inferred	0.19	0.473	0.37	2.94	2.28

 

Notes: 

 

1.	Oxide estimated Mineral Resources are reported within a pit shell using the Lerch Grossman algorithm, a gold price of US$1,550/oz and a recovery of 82% for Au and silver price of US$20/oz and a recovery of 20% For Ag.

 

2.	Sulphide estimated Mineral Resources are reported within a pit shell using the Lerch Grossman algorithm, a gold price of US$1,550/oz and a recovery of 50% for Au and silver price of US$20/oz and a recovery of 12% for Ag. No sulphide material was reported for Bonanza.

 

3.	Mining costs for mineralized material and waste are US$2.25/tonne.

 

4.	Processing, general and administration, and refining costs are US$5.00/tonne, US$0.50/tonne, and US$0.05/tonne respectively.

 

5.	Due to rounding, some columns or rows may not compute as shown.

 

6.	Estimated Mineral Resources are stated as in situ dry metric tonnes.

 

7.	The estimate of Mineral Resources may be materially affected by legal, title, taxation, socio-political, marketing, or other relevant issues.

 

  

Table 1-10: Combined Mineral Resources

Combined Global Resources as of December 31, 2021 - Oxide and Sulphide
Classification	Tonnes (Mt)	Au grade (g/t)	Ag grade (g/t)	Au Contained (koz)	Ag Contained (koz)
Measured	30.13	0.544	1.35	526.68	1,309.13
Indicated	40.88	0.519	1.18	682.61	1,557.49
Measured and Indicated	71.01	0.530	1.26	1,209.29	2,866.62
Inferred	16.69	0.481	0.96	257.90	515.72

 

Notes:

 

1.	Oxide estimated Mineral Resources are reported within a pit shell using the Lerch Grossman algorithm, a gold price of US$1,550/oz and a recovery of 82% for Au and silver price of US$20/oz and a recovery of 20% For Ag.

 

2.	Sulphide estimated Mineral Resources are reported within a pit shell using the Lerch Grossman algorithm, a gold price of US$1,550/oz and a recovery of 50% for Au and silver price of US$20/oz and a recovery of 12% for Ag. No sulphide material was reported for Montgomery-Shoshone or Bonanza.

 

3.	Mining costs for mineralized material and waste are US$2.25/tonne.

 

4.	Processing, general and administration, and refining costs are US$5.00/tonne, US$0.50/tonne, and US$0.05/tonne respectively.

 

5.	Due to rounding, some columns or rows may not compute as shown.

 

6.	Estimated Mineral Resources are stated as in situ dry metric tonnes.

 

7.	The estimate of Mineral Resources may be materially affected by legal, title, taxation, socio-political, marketing, or other relevant issues.

 

Combined Mineral Resources presented in this report have increased over those reported in the June 2021 Bullfrog NI 43-101 technical report. Measured and Indicated Resources increased by 18.7 million tonnes, 329,500 gold ounces, and 476,000 silver ounces. Inferred Resources increased by 7.6 million tonnes, 127,900 gold ounces, and 272,200 silver ounces. The changes are primarily due to new drilling, database improvements, and the updated geological controls that have led to greater continuity of higher-grade material in lower portions of the Bullfrog pit resulting in a more robust pit optimization.

 

1.6

Conclusions

 

This report is based on all technical and scientific data as of December 31, 2021, the effective date of this report. Mineral resources are considered by the QP to meet the reasonable prospects of eventual economic extraction. Analytical data has been collected and analyzed using industry standard methods at the time they were collected. Geologic data has been interpreted and modeled using historic maps, reports, field mapping, drillhole logging and three-dimensional computer modeling. Resource block models were developed using the geologic and analytical data to best represent the mineralization within each of the areas and accounts for historic mining of the resource by open pit and underground methods. Lerch-Grossman optimized pit shells have been generated for each area using representative costs, metal recoveries and slope angles and resources have been summarized within those pit shells.

 

1.6.1

Geology and Mineral Resources

 

●

The exploration potential within the district is high and recent drilling has shown that mineralized structures and features continue both laterally and vertically along the known mineralized trends in and near all three major areas. Specific areas for additional exploration drilling and interpretation include Ladd Mountain and Mystery Hills near the Bullfrog pit; the Polaris vein and related disseminated mineralization near the Montgomery-Shoshone pit; along strike and beneath Bonanza Mountain near the Bonanza pit; and in the structurally prospective Gap area in the northern portion of the property.

 

 

 

●

Considerable effort has been placed on verifying historic assays and surveys by checking against historic drill logs and assay certificates. The database has been updated to include additional assay certificate data that was recently discovered. Problems with imperial-metric grade conversions in a porting of the legacy data have been corrected.

●

Forte Dynamics completed a review of the drilling database for Bullfrog and has verified assay data against lab certificates for approximately 10% of drillholes in the economically important portions of the deposits.

●

The recent assay data has been collected in a manner appropriate for the deposit type and mineralization style. Assay QA/QC analyses have been taken to ensure that assays are of a quality suitable for the estimation of mineral resources.

●

The level of understanding of the geology is very good. A district wide geologic model has been constructed using historic maps, geology reports and field mapping. Drillhole logs are used in the interpretation, when possible, but more effort should be placed on utilizing the downhole logging data to help refine the geologic models.

●

Drillholes excluded from resource estimation have been reviewed and the list has been updated. Some holes now have assay data and have been removed from the exclusion list. A few additional RC drillholes with downhole contamination have been added to the exclusion list. Location and downhole survey issues for a few holes have also been identified.

●

Historical production data, blastholes, pit maps, underground maps, stope surveys should be extracted from the historical archives and digitized into a format that can aid in the interpretation of the geologic model and resource block model. The historic data can be used to calibrate the resource model and provide a validation check.

●

The treatment of outlier assays in the database is appropriate and reasonable. The block grade interpretations have been carried out using conventional methods consistent with common industry practice.

●

Block model grades have been zeroed out in areas of historic underground and open pit mining. Block model grades were also zeroed out within geologic units known to be barren. Backfilled areas within the open pit and underground mines have been accounted for in the volume and tonnage to be mined.

●

Mining and processing costs based on similar Nevada operations have been applied in the pit optimization. The existing pit walls remain very stable with steep overall slope angles on a majority of the pit walls. The existing wall angles have been measured and applied in the pit optimization.

 

1.6.2

Metallurgical Test Work and Mineral Processing

Metallurgical testing performed to date indicates reasonable gold recovery at small particle sizes. The column leach tests on HPGR fine crushed materials suggest gold recovery could exceed 85% on 10 mesh material; however, further testing is required to properly characterize the recovery potential for each mineralized zone.

 

The metallurgical test program should be comprehensive, and include the following (at a minimum):

 

●

Full characterization of composite samples – Au/Ag content, carbon and sulfur speciation, typical Geochem including Hg, solids specific gravity

●

Crushing work index testing

●

Abrasion index testing

 

 

●

Column leach testing at various HPGR crush sizes, including comparative bottle roll tests and size fraction recovery analysis

●

Agglomeration testing

●

Compacted permeability testing

●

Any required environmental tests on column test residues measured

 

1.6.3

Infrastructure

●

The project is in a jurisdiction that is amenable to mining.

●

The project site is near the town of Beatty, Nevada which has adequate amenities and services.

●

The project was open pit and underground mined from 1989-1999 and has remaining infrastructure that includes power lines on site, a paved highway to site and a network of roads across the district.

●

Availability of adequate power through the local utility, as well as available water and water rights to support operations require further evaluation.

 

1.7

Recommendations

The current estimation of mineral resources indicate the potential for further work to advance the project to a Preliminary Economic Assessment (PEA).

 

Additional exploration drilling and delineation drilling should be carried out to expand the resource base and to further refine the geologic models and resource block models.

 

Metallurgical testing performed to date indicates gold recovery is reasonable at small particle sizes. The column leach tests on HPGR fine crushed materials suggest gold recovery could exceed 85% on 10 mesh material; however, further testing is required to properly characterize the recovery potential for each mineralized zone.

 

Baseline study work across a range of activities can be started to support permitting activities for future study stages.

 

 

2.

Introduction

 

This report has been prepared for Augusta Gold Corp. for the Bullfrog Gold Project in Nevada with the purpose of updating and reporting mineral resources utilizing the most recent drilling and geologic models. The drillhole and geologic information has been used to generate a three-dimensional block model of the mineralized areas and optimized pit shells have been developed from those block models to report mineral resources.

 

Technical information, including locations, orientations, mapping, and analytical data has been supplied by Augusta Gold Corp. Information pertaining to title, environment, permitting and access has also been supplied by Augusta Gold Corp. Introductory summaries pertaining to infrastructure, location, geology, and mineralization have been primarily sourced from the historical reports from past producers and by Augusta Gold Corp.

 

The project site was inspected by Forte on December 14, 2021.

 

2.1

Units of Measure

All references to dollars in this report are to U.S. dollars (US$) unless otherwise noted. Distances, areas, volumes, and masses are expressed in the metric system unless indicated otherwise. Historic data is expressed in English units, such as feet and tons.

 

For the purpose of this report, common measurements are given in metric units. All tonnages shown are in Tonnes (t) of 1,000 kilograms, and precious metal grade values are given in grams per tonne (g/t), precious metal quantity values are given in troy ounces (toz). To convert to English units, the following factors should be used:

 

●

1 short ton = 0.907 tonne (T)

●

1 troy ounce = 31.1035 grams (g)

●

1 troy ounce/short ton = 34.286 grams per tonne (g/t)

●

1 foot = 30.48 centimeters (cm) = 0.3048 meters (m)

●

1 mile = 1.61 kilometer (km)

●

1 acre = 0.405 hectare (ha)

 

2.2

Abbreviations

The following is a list of the abbreviations used in this report:

 

Abbreviation		Unit or Term
2D		two-dimensional
3D		three-dimensional
Ag		silver
Au		gold
cm		centimeter
cm3		cubic centimeters
g		gram
g/t		grams per tonne
g/cm3		grams per cubic centimeter
ha		hectare

 

 

kg		kilogram
km		kilometer
km2		square kilometers
km/h		kilometers per hour
kw-h		kilowatt per hour
m		meter
M		million
Mm		millimeter
mm/yr		millimeters per year
Mya		million years before present
NDEP		Nevada Department of Environmental Projection
NI 43-101		Canadian Securities Administrators’ National Instrument 43-101
NSR		Net Smelting Return
Pb		lead
PEA		Preliminary Economic Assessment
ppm		parts per million
QA/QC		quality assurance/quality control
T		metric ton
toz		Troy ounces
T/d		Tonnes per day
US$		United States dollars

 

2.3

Qualified Persons and Details of Inspection

Forte is acting as a Qualified Person firm consisting of mining experts to prepare the report. Below is a list details of the QPs inspection of the property.

 

A Forte QP conducted a site visit of the property on December 14, 2021, where he was able to review infrastructure, existing pits, waste dumps, roads, and the observable geologic features of the site. The exploration program had been completed earlier so logging and sample preparation were not directly reviewed, although the sampling and logging procedures were reviewed. The Forte team did receive a thorough geologic review of the site by the project geologist.

 

Information contained in the report is current as of December 31, 2021.

 

The reports and documents listed in Chapter 24 and Chapter 25 of this Report were used to support Report preparation.

 

3.

Property Description

 

The Project is located in the Bullfrog Hills of Nye County, Nevada (Figure 3-1). Bullfrog Mine’s property covers approximately 3,157 hectares of patented and unpatented lode mining claims in Sections 25, 26, 35 and 36 of T11S, R46E and Sections 1, 2, 3, 4, 5, 6, 8, 9, 10, 11, 12, 14, 15, 16, 17, and 23 of T12S, R46E, Mt. Diablo Meridian. The Project is accessible via a 2¼ hour (260 km) drive north of Las Vegas, Nevada along US Highway 95. Las Vegas is serviced by a major international airport and is the closest major hub for providing equipment, supplies, services, and other support to the Project. The Project lies 4 miles west of the Town of Beatty, Nevada, which has a population of approximately 1,000 and contains most basic services, including motels, gasoline stations, schools, and a variety of stores and services. Access around the Project is provided by a series of reasonably good gravel roads that extend to the existing mines and important exploration areas.

 

 

Figure 3-1: Location Map

 

 

Augusta Gold has four option/lease/purchase agreements in place and has located 61 claims that give it control of 439 unpatented lode mining claims and mill site claims, and 86 patented. These lands are listed in Table 3-1. A property map with the locations shown in detail can be seen in Figure 3-2. The claims do not have an expiration date, as long as the fees and obligations are maintained.

 

 

Table 3-1: Lands Under the Control of Augusta Gold Corp.

Augusta Gold Corp. Patented Claims
Standard Gold
Patent Name	Mineral Survey No.
Providence	2470
Aurium	2654
Augusta Gold Corp. Patented Claims
Mojave Gold Mining
Patent Name	Mineral Survey No.
Polaris Fraction	2426
Inaugural Fraction	2426
Three Peaches	2426
Little Fraction	2471A
Indian Johnnie	2471A
Shoshone	2471A
Del Monte Fraction	2501A
Shoshone Two	2471A
Shoshone Three	2471A
Oro Grande	2470
Shoshone Extension	2470
Greenhorn	2470
Augusta Gold Corp. Patented Claims
Brown Claims
Patent Name	Mineral Survey No.
Crystal	2418
Oliver	2340

 

 

Augusta Gold Corp. Patented Claims
Lunar Landing Claims
Patent Name	Mineral Survey No.
Elkhorn	2736
Red Bluff	2540
Black Bull	2425
Bell Boy Fraction	2425
South Fraction	2425
Lookout	2461
Molly Gibson #1	3043
Molly Gibson # 2	3043
Molly Gibson #3	3043
Molly Gibson #4	3043
Molly Gibson #5	3043
Rand	2784
Rand #1	2784
Rand #2	2784
Rand #3	2784
Rand Fraction	2784
Early Bird	2491
Unexpected	2735
Scorpion	2411
St. Anthony	2734
Eva Bell	2576
Gem Fraction	2377
Quartzsite Fraction	2422
Annex	2715

 

 

Augusta Gold Corp. Unpatented Claims
Claim Name	BLM Serial Number
BFGC 1	NMC1147851
BFGC 2	NMC1147852
BFGC 3	NMC1147853
BFGC 4	NMC1147854
BFGC 5	NMC1147855
BFGC 6	NMC1147856
BFGC 8	NMC1147857
BFGC 9	NMC1147858
BFGC 10	NMC1147859
BFGC 11	NMC1147860
BFGC 12	NMC1147861
BFGC 13	NMC1147862
BFGC 14	NMC1147863
BFGC 15	NMC1147864
BFGC 16	NMC1147865
BFGC 17	NMC1147866
BFGC 18	NMC1147867
BFGC 19	NMC1147868
BFGC 20	NMC1147869
BFGC 21	NMC1147870
BFGC 22	NMC1147871
BFGC 23	NMC1147872
BFGC 24	NMC1147873
BFGC 25	NMC1147874

 

 

BFGC 26	NMC1147875
BFGC 27	NMC1147876
BFGC 28	NMC1147877
BFGC 29	NMC1147878
BFGC 30	NMC1147879
BFGC 31	NMC1147880
BFGC 32	NMC1147881
BFGC 33	NMC1147882
BFGC 34	NMC1147883
BFGC 35	NMC1147884
BFGC 36	NMC1147885
BFGC 37	NMC1147886
BFGC 38	NMC1147887
BFGC 39	NMC1147888
BFGC 40	NMC1147889
BFGC 41	NMC1147890
BFGC 42	NMC1147891
BFGC 43	NMC1147892
BFGC 44	NMC1147893
BFGC 45	NMC1147894
BFGC 46	NMC1147895
BFGC 47	NMC1147896
BFGC 48	NMC1147897
BFGC 49	NMC1147898
BFGC 50	NMC1147899
BFGC 51	NMC1147900

 

 

BFGC 52	NMC1147901
BFGC 53	NMC1147902
BFGC 54	NMC1147903
BFGC 55	NMC1147904
BFGC 56	NMC1147905
BFGC 57	NMC1147906
BFGC 58	NMC1147907
BFGC 59	NMC1147908
BFGC 60	NMC1147909
BFGC 61	NMC1147910
BFGC 62	NMC1147911
BFGC 7	NMC1154057
BFGC 63	NMC1154058
BFGC 64	NMC1154059
BFGC 65	NMC1154060
BFGC 66	NMC1154061
BFGC 67	NMC1154062
BFGC 68	NMC1154063
BFGC 69	NMC1154064
BFGC 70	NMC1154065
BFGC 71	NMC1154066
BFGC 72	NMC1154067
BFGC 73	NMC1154068
BFGC 74	NMC1154069
BFGC 75	NMC1154070
BFGC 76	NMC1154071

 

 

BFGC 77	NMC1154072
BFGC 78	NMC1154073
BFGC 79	NMC1154074
BFGC 80	NMC1154075
BFGC 81	NMC1154076
BFGC 82	NMC1154077
BFGC 83	NMC1154078
BFGC 84	NMC1154079
BFGC 85	NMC1154080
BFGC 86	NMC1154081
BFGC 87	NMC1154082
BFGC 88	NMC1154083
BFGC 89	NMC1177609
BFGC 90	NMC1177610
BFGC 91	NMC1177611
BFGC 92	NMC1177612
BFGC 93	NMC1177613
BFGC 94	NMC1177614
BFGC 95	NMC1177615
BFGC 96	NMC1177616
BFGC 97	NMC1177617
BFGC 98	NMC1177618
BFGC 99	NMC1177619
BFGC 100	NMC1177620
BFGC 101	NMC1177621
BFGC 102	NMC1177622

 

 

BFGC 103	NMC1177623
BFGC 104	NMC1177624
BFGC 105	NMC1177625
BFGC 106	NMC1177626
BFGC 107	NMC1177627
BFGC 108	NMC1177628
BFGC 109	NMC1177629
BFGC 110	NMC1177630
BFGC 111	NMC1177631
BFGC 112	NMC1185280
BFGC 113	NMC1185281
BFGC 114	NMC1185282
BFGC 115	NMC1185283
BFGC 116	NMC1185284
BFGC 117	NMC1185285
BFGC 118	NMC1185286
BFGC 119	NMC1185287
BFGC 120	NMC1185288
BFGC 121	NMC1185289
BFGC 122	NMC1185290
BFGC 123	NMC1185291
BFGC 124	NMC1185292
BFGC 125	NMC1185293
BFGC 126	NMC1185294
BFGC 127	NMC1185295
BFGC 128	NMC1185296

 

 

BFGC 129	NMC1185297
BFGC 130	NMC1185298
BFGC 131	NMC1185299
BFGC 132	NMC1185300
BFGC 133	NMC1185301
BFGC 134	NMC1185302
BEATTY CON # 1	NMC109662
LUCKY QUEEN	NMC109667
BC # 8 BABINGTON	NMC109697
BC # 9 CORNELL	NMC109698
BC # 10 FLIN FLON 2	NMC109699
BVD 6	NMC987963
BVD 5	NMC987964
BVD 324	NMC987965
BVD 323	NMC987966
BVD 322	NMC987967
BVD 321	NMC987968
BVD 317	NMC987969
BVD 316	NMC987970
BVD 315	NMC987971
BVD 314	NMC987972
BVD 303	NMC987973
BVD 302	NMC987974
BVD 301	NMC987975
BVD 300	NMC987976
BVD 207	NMC987977

 

 

BVD 206	NMC987978
BVD 205	NMC987979
BVD 204	NMC987980
BVD 203	NMC987981
BVD 202	NMC987982
BVD 201	NMC987983
BVD 200	NMC987984
BVD 107	NMC987985
BVD 106	NMC987986
BVD 105	NMC987987
BVD 41	NMC987988
BVD 40	NMC987989
BVD 32	NMC987990
BVD 31	NMC987991
BVD 30	NMC987992
BVD 29	NMC987993
BVD 36	NMC987994
BVD 35	NMC987995
BVD 34	NMC987996
BVD 33	NMC987997
BVD 28	NMC987998
BVD 27	NMC987999
BVD 26	NMC988000
BVD 25	NMC988001
BVD 19	NMC988002
BVD 18	NMC988003

 

 

BVD 17	NMC988004
BVD 16	NMC988005
BVD 24	NMC988006
BVD 23	NMC988007
BVD 22	NMC988008
BVD 21	NMC988009
BVD 20	NMC988010
BVD 15	NMC988011
BVD 14	NMC988012
BVD 13	NMC988013
BVD 12	NMC988014
BVD 11	NMC988015
BVD 39	NMC988016
BVD 38	NMC988017
BVD 37	NMC988018
BVD 10	NMC988019
BVD 9	NMC988020
BVD 8	NMC988021
BVD 7	NMC988022
BVD 4	NMC988023
BVD 3	NMC988024
BVD 2	NMC988025
BVD 1	NMC988026
BVD 401	NMC992989
BVD 402	NMC992990
BVD 403	NMC992991

 

 

BVD 404	NMC992992
BVD 405	NMC992993
BVD 406	NMC992994
BVD 407	NMC992995
BVD 408	NMC992996
BVD 409	NMC992997
BVD 410	NMC992998
BFG 135	NV105225834
BFG 136	NV105225835
BFG 137	NV105225836
BFG 138	NV105225837
Augusta Gold Corp. Unpatented Claims
Abitibi Option
Claim Name	BLM Serial Number
AR 1	1209019
AR 2	1209020
AR 3	1209021
AR 4	1209022
AR 5	1209023
AR 6	1209024
AR 7	1209025
AR 8	1209026
AR 9	1209027
AR 10	1209028
AR 11	1209029

 

 

AR 12	1209030
AR 13	1209031
AR 14	1209032
AR 15	1209033
AR 16	1209034
AR 17	1209035
AR 18	1209036
AR 19	1209037
AR 20	1209038
AR 21	1209039
AR 22	1209040
AR 23	1209041
AR 24	1209042
AR 25	1209043
AR 26	1209044
AR 27	1209045
AR 28	1209046
AR 29	1209047
AR 30	1209048
AR 31	1209049
AR 32	1209050
AR 33	1209051
AR 34	1209052
AR 35	1209053
AR 36	1209054
AR 37	1209055

 

 

AR 38	1209056
AR 39	1209057
AR 40	1209058
AR 41	1209059
AR 42	1209060
AR 43	1209061
Augusta Gold Corp. Patented Claims
Barrick Claims
Claim Name	Patent Number
EMERALD	44862
RUBY	44862
NORTHSTAR	45830
LOUISVILLE	35256
DENVER FRACTION	45316
TRAMP NO. 2	46191
SIDEWINDER	45387
TIGER	45387
TRAMP EXTENSION	46171
TRAMP NO. 1	46171
HOBO	45253
VIRGINIA	529024
DIAMOND HITCH	46187
COMET	46182
LE ROI	46181
UGLY DUCKLING	46180
LE ROI FRACTION	46179

 

 

DEL MONTE	46173
POLARIS	46173
DENVER NO. 2	45348
VENTURE	45348
DENVER NO. 3	77975
SUNSET NO. 1	45371
SUNSET NO. 2	45371
CHIEF	45815
PRINCE	45815
S.L.	46223
SPEARHEAD	46223
SUMMIT	46223
AURORA	47481
GRAND PRIZE	47481
QUARTETTE	47481
H071 TRACT 37 PATENT
BULL FROG NO. 2	44644
BULLFROG	44644
BULLFROG FRACTION LODE	45120
DELAWARE NO. 1	46263
ETHEL	46263
JUMBO	46263
NEVADA	88070
ROOSEVELT	88070
TEDDY	88070
TEDDY FRACTION	88070

 

 

PACIFIC PLACER	952102
NEVADA PLACER	952102
PARIAN PLACER	952102
Augusta Gold Corp. Unpatented Claims
Barrick Claims
Mine Claims
Claim Name	BLM Serial Number
Shorty 1	NMC 1058705
Shorty 2	NMC 1058706
Shorty 3	NMC 1058707
Shorty 4	NMC 1058708
Shorty 5	NMC 1058709
Shorty 6	NMC 1058710
Shorty 7	NMC 1058711
Shorty 8	NMC 1058712
Shorty 10	NMC 1058713
Shorty 11	NMC 1058714
Shorty 12	NMC 1058715
ACE NUMBER 1	NMC 112229
ACE NO. 2*	NMC 112230
ACE NO. 3*	NMC 112231
RHYOLITE NO. 1	NMC 128702
RHYOLITE NO. 5	NMC 128705
WEST SIDE RHYOLITE	NMC 128708
EAST SIDE	NMC 128709
YANKEE GIRL # 2	NMC 128710
FROG EXTENSION	NMC 128711

 

 

 

FROG NO. 1	NMC 128712
BOLIVAR NO. 1	NMC 128713
CASH BOY	NMC 128714
GOLDEN EAGLE # 2*	NMC 298788
GOLDEN EAGLE # 3*	NMC 298789
GOLDEN AGE # 1*	NMC 298790
GOLDEN AGE # 2*	NMC 298791
GOLDEN AGE # 3*	NMC 298792
GOLDEN AGE # 4*	NMC 298793
GOLDEN AGE # 5*	NMC 298794
GOLDEN AGE # 15*	NMC 298802
GOLDEN AGE # 16*	NMC 298803
BEV # 43	NMC 350754
BEV # 44	NMC 350755
BEV # 45	NMC 350756
BEV # 46	NMC 350757
BEV # 53	NMC 350764
BEV # 54	NMC 350765
BEV # 65	NMC 350776
BEV # 73	NMC 350784
RACHAEL # 3	NMC 400293
RACHAEL # 4	NMC 400294
RACHAEL # 5	NMC 400295
MIKE 9	NMC 415141
MIKE 10	NMC 415142

 

 

IRBF # 5	NMC 418634
IRBF # 6	NMC 418635
IRBF # 8	NMC 418637
IRISH EYES # 2	NMC 436850
CHERYL MARIE # 3	NMC 436852
GOLDEN SLIVER	NMC 436855
TOTO # 1	NMC 436856
TOTO # 2	NMC 436857
TOTO # 3	NMC 436858
TOTO # 4	NMC 436859
TOTO # 5	NMC 436860
TOTO # 6	NMC 436861
TOTO # 7	NMC 436862
OVERSIGHT	NMC 436870
ERICA ANN # 1	NMC 436876
DINY F	NMC 443898
DOUG’S DESPAIR # 1	NMC 453427
LITTLE BEV # 7	NMC 462038
BEV NO. 17	NMC 507261
BEV NO. 18	NMC 507262
BEV NO. 19	NMC 507263
BEV NO. 20	NMC 507264
BEV NO. 55	NMC 507277
BEV NO. 66	NMC 507287
BEV NO. 67	NMC 507288
LITTLE BEV # 9	NMC 523201

 

 

BROTHER 1	NMC 551789
BROTHER 2	NMC 551790
GOLDEN AGE # 6	NMC 583381
GOLDEN AGE # 7*	NMC 583382
GOLDEN AGE # 8*	NMC 583383
GOLDEN AGE # 9*	NMC 583384
GOLDEN AGE # 12*	NMC 583385
GOLDEN AGE # 13*	NMC 583386
GOLDEN AGE # 14*	NMC 583387
GOLDEN AGE # 17*	NMC 583388
BEV 47 A	NMC 819978
BEV 48 A	NMC 819979
Augusta Gold Corp. Millsite Claims
Barrick Claims
Claim Name	BLM Serial Number
BFMS NO. 1	NMC 519933
BFMS NO. 2	NMC 519934
BFMS NO. 3	NMC 519935
BFMS NO. 4	NMC 519936
BFMS NO. 5	NMC 519937
BFMS NO. 6	NMC 519938
BFMS NO. 7	NMC 519939
BFMS NO. 8	NMC 519940
BFMS NO. 9	NMC 519941
BFMS NO. 10	NMC 519942
BFMS 11	NMC 519943
BFMS NO. 12	NMC 519944

 

 

BFMS NO. 13	NMC 519945
BFMS NO. 14	NMC 519946
BFMS NO. 15	NMC 519947
BFMS NO. 16	NMC 519948
BFMS NO. 17	NMC 519949
BFMS NO. 18	NMC 519950
BFMS NO. 19	NMC 519951
BFMS NO. 20	NMC 519952
BFMS NO. 21	NMC 519953
BFMS NO. 22	NMC 519954
BFMS NO. 23	NMC 519955
BFMS NO. 24	NMC 519956
BFMS NO. 25	NMC 519957
BFMS NO. 26	NMC 519958
BFMS NO. 27	NMC 519959
BFMS NO. 28	NMC 519960
BFMS NO. 29	NMC 519961
BFMS NO. 30	NMC 519962
BFMS NO. 31	NMC 519963
BFMS NO. 32	NMC 519964
BFMS NO. 33	NMC 519965
BFMS NO. 36	NMC 519968
BFMS NO. 37	NMC 519969
BFMS NO. 38	NMC 519970
BFMS 41	NMC 519973
BFMS NO. 42	NMC 519974

 

 

BFMS NO. 43	NMC 519975
BFMS NO. 46	NMC 519978
BFMS NO. 48	NMC 519980
BFMS NO. 49	NMC 519981
BFMS NO. 50	NMC 519982
BFMS NO. 51	NMC 519983
BFMS NO. 52	NMC 519984
BFMS NO. 53	NMC 519985
BFMS NO. 56	NMC 519988
BFMS NO. 57	NMC 519989
BFMS NO. 58	NMC 519990
BFMS NO. 59	NMC 519991
BFMS NO. 60	NMC 519992
BFMS NO. 61	NMC 519993
BFMS NO. 63	NMC 519995
BFMS NO. 64	NMC 519996
BFMS NO. 65	NMC 519997
BFMS NO. 66	NMC 519998
BFMS NO. 67	NMC 519999
BFMS NO. 71	NMC 528590
BFMS 72	NMC 528591
BFMS NO. 73	NMC 528592
BFMS NO. 92	NMC 528611
BFMS NO. 93	NMC 528612
BFMS NO. 94	NMC 528613
BFMS NO. 95	NMC 528614

 

 

BFMS NO. 96	NMC 528615
BFMS NO. 97	NMC 528616
BFMS NO. 98	NMC 528617
BFMS NO. 101	NMC 528620
BFMS NO. 104	NMC 528623
BFMS NO. 105	NMC 528624
BFMS NO. 106	NMC 528625
BFMS NO. 107	NMC 528626
BFMS NO. 110	NMC 528629
BFMS NO. 111	NMC 528630
BFMS NO. 114	NMC 528633
BFMS NO. 115	NMC 528634
BFMS NO. 116	NMC 528635
BFMS NO. 119	NMC 528638
BFMS NO. 205	NMC 528724
BFMS NO. 206	NMC 528725
BFMS NO. 207	NMC 528726
BFMS NO. 208	NMC 528727
BFMS NO. 209	NMC 528728
BFMS NO. 250	NMC 528769
BFMS NO. 251	NMC 528770
BFMS NO. 252	NMC 528771
BFMS NO. 253	NMC 528772
BFMS NO. 254	NMC 528773
BFMS NO. 255	NMC 528774
BFMS NO. 256	NMC 528775

 

 

BFMS 257	NMC 528776
BGMW NO. 1	NMC 551064
BGMW NO. 3	NMC 551065
BGMW NO. 11	NMC 551066
BGMW NO. 13	NMC 551067
BFMS 47 A	NMC 817723

 

Figure 3-2: Property Map of the Bullfrog Project

 

3.1	NPX Assignment of Lands

In September 2011, the Company issued 14.4 million shares of the Company to the shareholders of Standard Gold Corp. (SGC) to acquire 100% of SGC and its assets. SGC is a private Nevada corporation and now wholly owned by the Company. Concurrently, NPX Metals, Inc. (NPX) and Bull Frog Holding, Inc. (BHI) assigned all title and interests in 79 claims and two patents to SGC. The Company granted a production royalty of 3% NSR on the property to NPX and BHI, plus an aggregate 3% NSR cap on any acquired lands within one mile of the 2011 boundary. Thus, NPX and BHI would not receive any royalty on acquisitions having a 3% or greater NSR.

 

3.2	Mojave Gold Option

In March 2014, the Company formed Rocky Mountain Minerals Corp. (RMMC), a private Nevada corporation, as a wholly owned subsidiary specifically for holding and acquiring assets. On October 29, 2014, RMMC exercised an option to purchase from Mojave Gold Mining Co. 12 patents west and adjacent to the Company’s initial property and that cover the NE half of the M-S pit. Mojave was paid 750,000 shares of BFGC plus $16,000. RMMC agreed to make annual payments totaling $180,000 over nine years to fully exercise the option and expend as a minimum work commitment for the benefit of the Property $100,000 per year and a total of $500,000 over five years on the Properties and surrounding lands within one-half mile of the 12 Mojave patents. Alternatively, RMMC can pay cash to Mojave at 50% of the difference between the minimum required and the actual expenditures. Mojave retained a sliding scale Net Smelter Return royalty ranging from 1% for gold prices below $1,200/ounce and up to 4% for gold prices above $3,200 per ounce. For reference, Barrick terminated a lease on the 12 Mojave patents in mid-2000 (then known as the Dees group) and all residual access rights in 2010.

 

3.3	Barrick Bullfrog Inc. Lease and Option

On March 23, 2015, Bullfrog Mines LLC (Bullfrog Mines), the successor by conversion of Barrick Bullfrog Inc., and RMMC, among others, entered into a lease and option to purchase agreement (the Lease and Option Agreement) dated March 23, 2015, for RMMC to acquire six patents, 20 unpatented claims, and eight mill site claims from Bullfrog Mines. The Lease and Option Agreement terminated upon execution of the Membership Interest Purchase Agreement (MIPA).

 

3.4	Lunar Landing Lease

On July 1, 2017, RMMC entered a lease with Lunar Landing LLC on 24 patents in the Bullfrog District:

 

	●	Two patents are adjacent and west of the M-S pit that could allow potential expansion of the pit down dip of the Polaris vein and stock work system.
	●	Ten patents have provided the Company with contiguous and connecting lands between the M-S and Bullfrog pits. These patents will also allow further expansions of the Bullfrog pit to the north and east.
	●	Four patents are within 0.5 to 1.2 miles west of the Bullfrog pit in the vicinity of the Bonanza Mountain open pit mine.
	●	Eight patents are in an exploration target area located about 1.5 miles NW of the Bullfrog pit and where the Company has owned the Aurium patent since 2011.

 

 

The lease includes the following:

 

	●	The Company paid $26,000 on signing and is scheduled to annually pay $16,000 for years 2-5, $21,000 for years 6-10, $25,000 for years 11-15, $30,000 for years 16-20, $40,000 for years 21-25 and $45,000 for years 26-30.
	●	Production royalty of 5% net smelter returns with the right to buy-down to 2.5%.
	●	The Company is to expend as a work commitment not less than $50,000 per year and $500,000 in total to maintain the lease.
	●	The Company has rights to commingle mineralization and the flexibility to operate the Project as a logical land and mining unit.

 

3.5	Brown Claims

On January 29, 2018, RMMC purchased the two patented claims, thereby eliminating minor constraints to expand the Bullfrog pit to the north. As partial consideration for the Brown Claims, RMMC granted the sellers of the Brown Claims a 5% net smelter returns royalty on the Brown Claims, of which 2.5% can be purchased by RMMC for aggregate consideration of US$37,500.

 

3.6	Barrick Claims (2020)

On October 26, 2020, the Company completed its acquisition of Bullfrog Mines pursuant to the MIPA with Homestake Mining Company of California (Homestake) and Lac Minerals (USA) LLC (Lac Minerals and together with Homestake, the Barrick Parties).

 

Pursuant to the MIPA, the Company purchased from the Barrick Parties all of the equity interests (the Equity Interests) in Bullfrog Mines for aggregate consideration of (i) 54,600,000 units of the Company, each unit consisting of one share of common stock of the Company and one four-year warrant purchase one share of common stock of the Company at an exercise price of C$0.30, (ii) a 2% net smelter returns royalty (the Barrick Royalty) granted on all minerals produced from all of the patented and unpatented claims (subject to the adjustments set out below), pursuant to a royalty deed, dated October 26, 2020 by and among Bullfrog Mines and the Barrick Parties (the Royalty Deed), (iii) the Company granting indemnification to the Barrick Parties pursuant to an indemnity deed, dated October 26, 2020 by and among the Company, the Barrick Parties and Bullfrog Mines, and (iv) certain investor rights, including anti-dilution rights, pursuant to the investor rights agreement, dated October 26, 2020, by and among the Company, Augusta Investments Inc., and Barrick.

 

Through the Company’s acquisition of the Equity Interests, the Company acquired rights to the 1,500 acres of claims adjoining the Company’s Bullfrog Gold deposit.

 

Pursuant to the Royalty Deed, the Barrick Royalty is reduced to the extent necessary so that royalties burdening any individual parcel or claim included in the Barrick Properties on October 26, 2020, inclusive of the Barrick Royalty, would not exceed 5.5% in the aggregate, provided that the Barrick Royalty in respect of any parcel or claim would not be less than 0.5%, even if the royalties burdening a parcel or claim included in the Barrick Properties would exceed 5.5%.

 

 

3.7	Abitibi Royalties Option

On December 9, 2020, Bullfrog Mines entered into a mining option agreement with Abitibi Royalties (USA) Inc. (Abitibi) granting Bullfrog Mines the option (the Abitibi Option) to acquire forty-three unpatented lode mining claims to the south of the Bullfrog deposit. Bullfrog Mines made an initial payment to Abitibi of C$25,000 and can exercise the Abitibi Option by:

 

	●	Paying to Abitibi C$50,000 in cash or shares of Company common stock by December 9, 2021;
	●	Paying to Abitibi C$75,000 in cash or shares of Company common stock by December 9, 2022; and
	●	Granting to Abitibi a 2% net smelter royalty on the claims subject to the Abitibi Option by December 9, 2022, of which Bullfrog Mines would have the option to purchase 0.5% for C$500,000 on or before December 9, 2030.

 

In order to exercise the Abitibi Option, Bullfrog Mines is also required to keep the underlying claims in good standing.

 

3.8	Other Property Considerations

All the unpatented lode mining claims are on U.S. public land administered by the Bureau of Land Management (“BLM”) and, therefore, are subject to exploration and development permits as required by the several current regulations. The unpatented lode mining claims require annual payments of $155 per claim to the BLM and $12 per claim to Nye County.

 

Total fees paid in 2020 for the lode and mill site claims was $26,739. Nye County property taxes paid in 2020 was approximately $1,781.

 

In summary, the lands controlled by Augusta Gold Corp. are in good standing with no significant liens, encumbrances, or title adversities.

 

3.9	Environmental and Permitting

The author is not aware of any outstanding environmental, reclamation or permitting issues that would impact future exploration work. Future exploration work will require a Plan of Operations to be filed with the BLM and the Nevada Department of Environmental Protection.

 

The following outlines the general framework for permitting a mine in Nevada and the required permits. Many of the permits discussed herein apply to the construction stage and are not currently being pursued.

 

Exploration activities on Federal mining claims on BLM lands requires a Notice of Intent (NOI) for exploration activities under five acres of disturbance and a Plan of Operations for larger scale exploration activities. A Plan of Operations is also required with the Nevada Department of Environmental Protection (NDEP) to fulfill the State of Nevada permitting obligations on private and public lands, respectively. Reclamation bonds related to environmental liabilities need to be calculated and posted to cover activities on the Project. Additional permits and bonding will be required for developing, constructing, operating, and reclaiming the Project.

 

Additional Baseline Studies will be required to update the historical studies completed by Barrick. This will include geochemistry, hydrologic studies of the in-pit water and water in existing wells, plant, wildlife and threatened and endangered species surveys, meteorological information, and cultural surveys.

 

 

Major permits, not inclusive of the Plan of Operations above, that will be required include:

 

	●	Water Pollution Control Permits (WPCP): The WPCP application must address the open pit, heap leach pad, mining activities and water management systems with respect to potentially degrading of the waters of Nevada. Sufficient engineering, design and modeling data must be included in the WPCP. A Tentative Permit Closure Plan must be submitted to the NDEP-BMRR in conjunction with the WPCP. A Final Permanent Closure Plan will be needed two years prior to Project closure.
	●	Air Quality: An application for a Class II Air Quality Permit must be prepared using Bureau of Air Pollution Control (BAPC) forms. The application must include descriptions of the facilities, a detailed emission inventory, plot plans, process flow diagrams and a fugitive dust control plan for construction and operation of the Project. A Mercury Operating Permit and a Title V Operating permit will also be necessary for processing loaded carbon or electro-winning precipitates.
	●	Water Right: Additional water rights will need to be acquired from third parties or obtained from the Nevada Division of Water Resources (NDWR) for producing Project water.
	●	Industrial Artificial Pond: Water storage ponds, which are part of the water management systems, will require Industrial Artificial Pond permits (IAPP) from the Nevada Department of wildlife. Approval from the Nevada State Engineer’s Office is also required if embankments exceed specified heights.

 

Additional minor permits will be required for the project to advance to production and are listed in Table 3-2.

 

Table 3-2: Additional Minor Permits Required

Notification/Permit	Agency
Mine Registry	Nevada Division of Minerals
Mine Opening Notification	State Inspector of Mines
Solid Waste Landfill	Nevada Bureau of Waste Management
Hazardous Waste Management Permit	Nevada Bureau of Waste Management
General Storm Water Permit	Nevada Bureau of Water Pollution Control
Hazardous Materials Permit	State Fire Marshall
Fire and Life Safety	State Fire Marshall
Explosives Permit	Bureau of Alcohol, Tobacco, Firearms & Explosives
Notification of Commencement of Operation	Mine Safety and Health Administration
Radio License	Federal Communications Commission
Public Water Supply Permit	NV Division of Environmental Protection
MSHA Identification Number and MSHA Coordination	U.S. Department of Labor Mine Safety and Health Administration (MSHA)
Septic Tank	NDEP-Bureau of Water Pollution Control
Petroleum Contaminated Soils	NV Division of Environmental Protection

 

3.10	Significant Risk Factors

The author is not aware of any outstanding environmental, reclamation or permitting issues that would impact future exploration work.

 

The author is unaware of any other significant risk factors that may affect access, title, or right or ability to perform work on the property.

 

 

4.	ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND PHYSIOGRAPHY

 

4.1	Accessibility

The Bullfrog Project is accessible via a 2½ hour (120 mile) drive north of Las Vegas, Nevada on US Highway 95. Las Vegas, the largest city in Nevada, is serviced by a major international airport, and has ample equipment, supplies and services to support many of the Project’s needs. The Project is 4 miles west of the Town of Beatty, Nevada via a paved highway. Beatty has a population of approximately 1,000 and can provide basic housing, services, and supplies. Access around the Project is by a series of reasonably good gravel roads that extend to the open pit mines and most of the significant exploration areas.

 

4.2	Physiography, Climate and Vegetation

 

Figure 4-1: Photo of Bullfrog Hills at Rhyolite

 

The Bullfrog Project is in Western Nevada’s high desert, which receives about 15 cm of precipitation per year, mostly as modest snowfall in the winter and thunderstorms in the summer. Temperatures typically range from -12°C (10°F) in winter to 43.3°C (110°F) in the summer. Due to the relatively mild climate at the Project, the operating season is year-round.

 

The hills at the Project are covered with sparse low brush including creosote, four-wing saltbush, rabbit brush, and Nevada ephedra. The Project is in the Basin and Range province, but the local topographic relief is only a few hundred feet. Elevations in the main Project areas range from 1,035 m in the valleys to

 

1,270 m at the peak of Ladd Mountain and 1,320 m at the peak of Montgomery Mountain. Most of the Project is characterized by low hills separated by modest width valleys. Although the U.S. Fish and Wildlife Service has designated the area as habitat for desert tortoise—a threatened and endangered species—Barrick and others have successfully coped with this designation, and the rough terrain is not conducive for these species. Additional studies may be required to meet requirements regarding the tortoise habitat.

 

 

4.3	Local Resources and Infrastructure

Augusta Gold Corp. maintains sufficient surface rights to support mining operations, including areas for potential waste disposal, tailings storage, heap leach pads and potential mill sites. The Company recently located additional mining claims and is pursuing the acquisition of other lands in the area. Most claim blocks are contiguous, and the water rights that Barrick held through Bullfrog Mines were indirectly acquired by Augusta Gold Corp. as part of its acquisition of Bullfrog Mines.

 

The towns of Beatty, Pahrump and Tonopah in Nye County have populations that support mining operations in the area.

 

Valley Electric Association based in Pahrump, Nevada owns a 138 KV transmission line and a 24.9 KV distribution line that remain on-site and serviced mining at the site previously. The substation connected to the 24.9 KV line remains on-site, but the transformers and switchgear have been removed.

 

Pumping from wells completed near the bottom of the Bullfrog pit is required to access deeper mineralization and could produce most of the Project water needs. Water may also be available from Barrick’s production wells located a few miles south of Highway 374, possibly from the Town of Beatty wellfield, and to a limited extent from deepening the M-S pit.

 

 

5.

History

 

The original Bullfrog deposit was discovered in 1904 by Frank “Shorty” Harris and Ernest Cross. This deposit is located 3.5 miles WSW of the Montgomery Shoshone (M-S) mine and initially had un-recorded but minor production. In 1904 the M-S deposit was discovered, and an underground mine was developed to the 700-foot level. A 300-tpd cyanidation mill was constructed for processing the mined material. The M-S operation recovered 67,000 gold equivalent ounces from 141,000 tons or 0.48 gold ounce/ton (opt) during the period 1907 to 1911. The mine was shut down in late 1910 due to declining grades and operating issues at depth. The adjacent Polaris mine produced 4,900 ounces of gold from 9,500 tons, or an average recovery of 0.52 gold opt.

 

Through 1911 the District produced 94,000 ounces of gold, but thereafter only minor exploration, development, and production activities occurred until St. Joe American successfully initiated modern exploration programs in 1982. In July 1987, Bond International Gold acquired St. Joe and constructed a nominal 9,000-tpd cyanidation mill in July 1989. In November 1989, Lac Minerals acquired Bond’s interest. In September 1994, Lac was acquired by Barrick. Recorded Project gold production from 1989 to 1999 is summarized in Table 5-1.

 

Table 5-1: Bullfrog Project Production

Year	Mined Tons	Gold Rec. OPT	Gold Rec. Oz	Silver Rec. Oz	Source Report
1989	1,025,000	0.060	56,771	35,752	Bond Gold
1990	3,036,000	0.080	220,192	228,647	Bond Gold
1991	2,988,000	0.073	198,863	188,824	Lac Min.
1992	3,173,000	0.111	323,825	313,100	Lac Min.
1993	3,080,000	0.125	354,900	469,899	Lac Min.
1994	3,093,000	0.105	301,000	NR	Barrick
1995	3,110,100	0.062	176,307	NR	Barrick
1996	3,008,600	0.073	205,300	NR