Tudor Gold (TSXV:TUD) - Resource Update Reveals Tier-One Potential

Tudtor Gold Corp. – Treaty Creek Gold Storm Deposit Update: A Detailed Summary

Key Concepts:

• Mineral Resource Estimate: An assessment of the quantity and quality of mineral deposits.
• Indicated Mineral Resources: Mineral resources for which quantity, grade, geological characteristics, and physical characteristics are estimated with sufficient confidence to support preliminary economic assessment.
• Inferred Mineral Resources: Mineral resources for which quantity and grade are estimated with a lower level of confidence than indicated resources.
• Net Smelter Revenue (NSR): The revenue received from the sale of metal concentrate, after deducting smelting and refining costs.
• Tier One Asset: A high-quality, large-scale, long-life gold deposit with low production costs.
• Pre-Feasibility Study (PFS): A study that defines the economic viability of a mining project at a preliminary level.
• Metallurgy: The science of extracting metals from their ores.
• Block Model: A three-dimensional computer model representing the geological and grade distribution of a mineral deposit.
• Longhole Stope: An underground mining method used for steeply dipping ore bodies.

1. Updated Mineral Resource Estimate & Strategic Focus

Tudtor Gold Corp. has announced an updated mineral resource estimate for its Gold Storm deposit at Treaty Creek, containing 24.9 million ounces of gold in the indicated category and 4 million ounces in the inferred category. The company’s strategic focus is shifting towards production, prioritizing higher-grade mineralization to maximize revenue. This is being assessed through sensitivity analyses using different Net Smelter Revenue (NSR) calculations – $50, $125, and $175 per ton.

At a $125/ton NSR, the deposit contains 5.8 million ounces of gold indicated and 2.6 million ounces inferred. Increasing this to $175/ton yields 3.4 million ounces indicated and 2.4 million ounces inferred. Crucially, at $175/ton, the indicated grade is 2.33 g/t gold, while the inferred grade is 4.02 g/t gold. Combining both categories results in a combined grade approaching 3 g/t gold (excluding silver and copper), positioning the deposit as a potential Tier One asset (defined as a large, high-quality, low-cost gold deposit).

2. Path to Production & Concurrent Activities

The company is actively pursuing a path to production, beginning with a focus on mine planning and metallurgical testing. Metal Energy, a partner company, is concurrently working on metallurgical studies. If these studies are positive, the next steps include a Preliminary Economic Assessment (PEA) followed by a push towards production. A permit application for an underground development ramp has been filed, with the government requesting additional data, expected to be submitted in the coming month. The company aims to secure the permit this year.

3. Exploration & Resource Expansion – A Dual Approach

Despite the focus on production, Tudtor Gold is committed to continued exploration. The company plans to drill 10,000-15,000 meters this summer, targeting other deposits on the property – Perfect Storm, CBS Zone, and Eureka Zone – while simultaneously advancing the Gold Storm deposit towards production. The goal is to develop another resource with an initial target of 5 million ounces from this year’s exploration program, demonstrating the broader potential of the property.

4. Resource Modeling & Grade Continuity

The updated resource estimate was achieved through improved modeling techniques, rather than solely new drilling data. While new drilling contributed approximately 10-15% to the increase, the primary improvement came from refining the resource model. The previous model used 10x10x10 meter blocks, which was refined to utilize 5x5x5 meter blocks, or 0.5 meter blocks where grade boundaries were present. This tighter definition provides more accurate boundaries for mine planning.

The company is confident in the grade continuity of the deposit, as evidenced by images presented in the news release showing consistent mineralization at different NSR cut-off values ($50, $125, and $175). These images demonstrate that while the size of the mineralized solids decreases with higher cut-offs, they remain cohesive and represent significant gold resources.

5. Mine Planning & Metallurgical Considerations

The company is currently working on a mine plan and metallurgical studies concurrently, aiming to have both completed this quarter. The initial mine plan envisions a longhole stope mining method, targeting a production rate of 8,000-10,000 tons per day. Trade-off studies will be conducted to determine the optimal sequence of mining, prioritizing the highest-grade material for early payback.

The deposit exhibits grade variability, with potentially higher grades in the upper and lower zones, and additional potential in the SC1 zone. The company will conduct infill drilling in the SC1 zone to further define the resource.

6. Financial Outlook & Financing Options

The current gold and silver price environment (nearly $5,000/oz gold and over $100/oz silver) is favorable for financing. The company has already received an inbound offer from an investment banker, indicating strong investor interest. The company believes that with a solid asset and a clear path to production, securing financing will be achievable.

7. Project Scale & Starter Project Considerations

Given the scale of the Gold Storm deposit, the company aims to start with a production rate of around 300,000 ounces of gold per year. The logistical challenges of operating in the Golden Triangle (road access, transmission lines, harsh environment) necessitate a certain level of production to justify the fixed costs. The company believes that a smaller-scale starter project would not be economically viable.

8. PEA & Feasibility Study Progression

The company is confident that the current resource estimate is sufficient for a PEA. The key to progressing to a feasibility study lies in the results of the metallurgical studies and the development of a robust mine plan. The company is considering potentially skipping the traditional Pre-Feasibility study and moving directly to a more detailed feasibility study if the PEA results are highly positive.

Quote: "In this market, it's almost like, you know, throwing things at the wall. But I I think what they want to see is that you have a path to production." – Joe Olsen, President & CEO, Tudtor Gold Corp.

Conclusion:

Tudtor Gold Corp. is making significant progress towards bringing the Gold Storm deposit into production. The updated resource estimate, coupled with a strategic focus on higher-grade mineralization and concurrent mine planning and metallurgical studies, positions the company for success. The company’s commitment to both production and continued exploration demonstrates a long-term vision for maximizing the value of the Treaty Creek property. The favorable metal price environment and strong investor interest further enhance the company’s prospects.