Genesis Metals Corp. reported a new mineral resource estimate for the Main Zone and updates for the East and South Zones, classified as mineral inventories, at its Chevrier gold project near Chibougamau, Quebec. For the South Zone deposit, located immediately southwest and along strike from the Main Zone, a mineral inventory was updated based on remodelling of the mineralization and grade estimations into a block model.

Tabulations within pitshells using gold prices of USD 1700 and USD 1870/oz provided tonnage and grade ranges for the South Zone deposit between 13 to 31 Mt at 0.70 to 0.60 g/t gold, respectively using a 0.30 g/t gold cut-off. This stated potential quantity and grade is conceptual in nature as there is currently insufficient exploration at this zone to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource. The deposit modelling was based on 18 historic drillholes over a strike length of 1100 metres.

Genesis will have to complete infill drilling to increase the confidence in continuity and gold grades derived from the historical drillholes in this deposit. A previously reported mineral resource estimation for the East Zone in 2019 has been reviewed and downgraded to a mineral inventory due to too few drillholes and uncertainty related to the continuity of the mineralization. LGGC assessed the 44,000 Oz of underground and In-pit Inferred Mineral Resources was too small to meet the requirement of Reasonable Prospects of Eventual Economic Extraction.

The open pit mineral inventory is between 0.3 and 0.4 Mt at 1.23 to 1.26 g/t gold and underground mineral inventory between 0.20 and 0.70 Mt at 1.20 to 1.25 g/t gold. These values are based on the interpreted solids and blocks from the 2019 model but filtered using different zone combinations. This stated potential quantity and grade is conceptual in nature as there is currently insufficient exploration at this zone to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a mineral resource.

The East Zone modelling was based on 32 drillholes over a strike length of 750 metres. For the Main Zone, the drill hole database is comprised of 220 holes with 63,640 metres of drilling. The mineral resource estimate is based on 1.0 metre composites (N=5,362) from 174 drill holes intersecting the mineralized zones over a strike length of 1400 metres.

Extreme assay grades were capped and a restricted outlier strategy was applied to composites to allow elevated gold grades to influence local blocks. Correlograms were modeled to assess the gold grade continuity of each zone. Gold grades were estimated into 10x10x5 m blocks using ordinary kriging (OK) method, with additional runs using inverse distance squared (ID 2) and nearest neighbour (NN) methods for validation purposes.

The estimates were validated and classified based on the gold grade continuity and drillhole density. Estimation methodology and classification were completed compliant to the standards of the Canadian Institute of Mining, Metallurgy and Petroleum (CIM). The resource estimate and mineral inventories were constrained within optimized Lerchs-Grossmann constrained pits and the underground resources at the Main Zone were limited within resource solids with contiguous blocks above cut-off.