The Black Fox Complex is located with other gold deposits near the Destor-Porcupine Deformation Zone. The auriferous zones seem to be associated with an orogenic gold occurrence related to longitudinal shear zones (greenstone-hosted quartz-carbonate vein deposit). They correspond to structurally controlled, complex epigenetic deposits hosted in deformed metamorphosed terranes.

The life of mine (LOM) plan supporting the mineral reserve estimate for Black Fox Mine herein contains a total of 395,000 tonnes with an average gold grade of 8.88 g/t for a total of 113,000 ounces of contained gold. These figures include application of 15 percent dilution.

The production rate is based on available stopes as of October 31, 2017 (the time that the assets were transferred from Primero to McEwen Mining Ontario). Consequently, the mine has a variable monthly mining rate, averaging approximately 500 tonnes per day. The average ounces recovered at the mill per day is approximately 140, which is equal to an average of 4,200 ounces per month over the 26 months in the LOM.

The LOM duration is 2 years and 2 months with no ramp down period during the final year of the plan (2019). The current mineral reserves are exhausted by the end of December 2019.

LOM development requirements are approximately 4,400 metres total. This development consists of 935m of ramps, and 2,030 metres of lateral development, 1,280 metres of sills and 140 metres of raises.

The mine is accessed by a portal located at a bench at a depth of 87 metres within the Black Fox Pit.

Stopes are typically mined in 15-metre lengths along the strike with widths varying from 5 up to 20 metres.

The mining method is long hole retreat. The stope sequencing has generally been top-down as new ore is found at depth.

Cemented hydraulic backfill is used in almost all stopes. Stopes are mined in alternating sequence using backfilled stopes as pillars for subsequent mining of adjacent stopes.

Ore mined is crushed and hauled to the mill.

Crushing is currently carried out at the Black Fox mine site via a contract service (LPL Contracting).

The crushed material is conveyed from the fine ore bin to the feed chute of the primary ball mill which is operated in closed circuit with three (3) hydro cyclones. The cyclone underflow is recirculated to the ball mill while the overflow is further ground in one of the two (2) regrind mills. The regrind mills are operated in closed circuit with five (5) secondary cyclones. The overflows from the secondary cyclones flow to a vibrating trash screen. The trash screen undersize falls into the thickener feed pump box. The head sampler removes feed aliquots on 20-minute intervals from the thickener feed line.

A gravity circuit comprised of a fines riffle and a coarse riffle in series is present in the mill. The gravity circuit was installed as a trial unit and has yet to be commissioned. The riffles are currently not being used without any future commissioning bei ........