AMN - MAURITANIA: Tijirit gold resource upgraded

Algold Resources Corp has updated the mineral resource for its Tijirit Gold Project in Mauritania. The Eleanore Zone at Tijirit now has 94,250 ounces in the indicated category at an average grade of 4.08 g/t gold and 394,690 ounces in the inferred category at a grade of 4.07 g/t.

There were previously 357,920 ounces of gold in the inferred category at an average grade of 4.18 g/t.

The 100%-owned Tijirit Mine Lease, which encompasses more than 300 square kilometres, is about 25 kilometres southeast of Kinross’ Tasiast gold mine.

The updated NI 43-101-compliant resource estimate is based on results of Algold’s successful exploration program, which included more than 50,000 metres of drilling from June 2016 to August 2017.

It was prepared only nine months after reporting resources from an initial phase of 23,000 metres of drilling.

The overall high-grade nature of the Eleonore deposit allows for various cut-off grade parameters to be applied, allowing Algold to choose between various potential mining scenarios as future drilling provides better definition of width, depth and strike extension.

Algold’s base case resource estimate was prepared using a cut-off grade of 1.5 g/t gold, without pit constraints.

An alternate case, with a pit constrained cut-off of 1.0 g/t and 1.7 g/t under pits, includes indicated resources of 102,200 ounces of gold at an average grade of 3.45 g/t and inferred resources of 422,900 ounces of gold at an average grade of 3.49 g/t.

In the Lily and Sophie zones, the base case using a pit constrained cut-off of 0.4 g/t and 1.7 g/t under pits, includes measured and indicated resources of 75,200 ounces at an average grade of 0.94 g/t and inferred resources of 254,100 ounces at an average grade of 1.06 g/t.

The alternate case, with a cut-off of 1.5 g/t without pit constraints, includes measured and indicated resources of 22,410 ounces at an average grade of 2.24 g/t and inferred resources of 112,820 ounces at an average grade of 2.26 g/t.

The updated report takes into consideration 80,954 metres of reverse-circulation drilling and 14,704 metres of core drilling, about half of which were carried out on the Eleonore Zone.

Algold CEO Francois Auclair said: "The increase in gold ounces is primarily due to an increase in the mineral resources at the Eleonore Zone over the previous 2017 resource estimate.

"The increase in resources and the high-grade ounces, at over 4.0 g/t gold, continue to highlight the extensive high-grade gold mineralisation at Tijirit.

“We continue to focus on building and expanding existing resources at Tijirit, which now consist of three larger main mineralised zones, all in close proximity, thus enabling many future operating synergies.”

Algold has started drilling on the Salma zone with the objective of further delineating the high-grade gold deposit on Salma and determining the key zones for further exploration along the 10-kilometre channel.

www.algold.com