Resolute Mining : Tabakoroni Underground Update

14 October 2020

Tabakoroni Underground

Potential

Underground Resource grows to 1 million ounces at 4.4g/t gold Exploration success continues with further excellent results Study progress confirms potential future underground mine Updated Syama Life-of-Mine Plan expected

Highlights

• Tabakoroni Underground Mineral Resource Estimate updated to 7.4 million tonnes at 4.4 grams per tonne for 1.04 million ounces of gold
• Exploration program continuing at Tabakoroni with further exceptional assay results from recent drilling yet to be included in the updated Mineral Resource Estimate
• Recent deep intersections beyond updated resource outline confirm mineralisation is continuous at depth.
• Results from new drilling underneath the updated resource at Tabakoroni Deeps include:

TADD780 7m @ 10.5g/t Au from 405m;

TADD781 9m @ 5.2g/t Au from 443m; and

TADD773 5m @ 116.3g/t Au from 222m.

• Results from shallow oxide reverse circulation drilling at new zones of surface gold mineralisation at Tabakoroni Porphyry Splay include:

TARC767 8m @ 5.0g/t Au from 61m;

TARC772 7m @ 6.7g/t Au from 33m;

TARC791 4m @ 52.5g/t Au from 49m; and

TARC805 10m @ 4.2g/t Au from 104.

• Pre-FeasibilityStudy completed during September 2020 quarter demonstrates potential for future underground mine at Tabakoroni using existing Syama processing infrastructure. Key outputs include:
  o Tabakoroni Underground production of ~80,000 ounces of gold annually;
  o All-In Sustaining Cost of US$974 per ounce over an initial four-year mine life based on current Mineral Resource Estimate; and
  o Start-up capital requirement of US$86 million with total project capital of US$118 million.
• Tabakoroni underground operation expected to use modified Syama oxide processing infrastructure and thus planned to commence following completion of Syama oxide operations.
• Study outcomes and Syama oxide exploration progress to enable updated Syama Life-of-Mine Plan to be completed and published during the current quarter.

Resolute Mining Limited (ASX/LSE: RSG) (Resolute or the Company) is pleased to announce an updated Mineral Resource Estimate and ongoing exploration success at Tabakoroni which has enabled the completion of a Pre- Feasibility Study (PFS or the Study) to assess the potential for a new underground gold mine at Tabakoroni to augment gold production from the Company's Syama Gold Mine in Mali (Syama).

The Tabakoroni Mineral Resource has been upgraded to 7.4 million tonnes (Mt) at 4.4 grams per tonne (g/t) gold (Au) at a 1.5g/t Au cut off for a total of 1.04 million ounces (Moz), an increase of 22% over the previous estimate (see ASX Announcement dated 29 April 2019). The Study has established a mining schedule, consisting of Indicated and Inferred Resources, of 2.4Mt at 4.9g/t containing 387koz (see Note 1 below). Gold production is expected to average approximately 80,000oz per annum over an initial four-year mine life. The All-In Sustaining Cost (AISC) is calculated to be US$974/oz. The Tabakoroni underground deposit remains open both along strike and at depth and ongoing exploration success is expected to expand Mineral Resources and extend mine life.

Managing Director and CEO, Mr John Welborn, welcomed the Study, which provides support for the ambition of establishing underground operations at Tabakoroni which will enable total production from Syama to be sustained at approximately 250koz per annum going forward:

"Tabakoroni has been a highly successful Syama satellite open pit oxide mining operation for Resolute, producing approximately 400,000 ounces of gold over the past three years. We expect our ongoing exploration success and feasibility studies will confirm a future underground operation at Tabakoroni."

"Exploration and evaluation of the Tabakoroni underground mine potential will continue during the remainder of 2020 and into 2021. The timeline on development is supported by our contemporaneous exploration efforts to define further surface oxide mineralisation. We now have more than 500,000 ounces of oxide resources from in ground satellite deposits and oxide ore stockpiles. Our immediate ambition is to use this oxide material, and further satellite oxide resource targets we are exploring, to maintain our Syama oxide production going forward at approximately 80,000 ounces per annum."

"The Tabakoroni underground Study provides confidence that we will be able to transition current Syama Oxide gold production, based on Syama satellite open pit mining, to similar annual levels of production based on a Tabakoroni underground operation. Further detail on our plans for Syama will be published in an updated Syama Life-of-Mine plan which will be completed during the current quarter."

Figure 1: Tabakoroni open pit operation and existing surface infrastructure

1 Note that the Mining Inventory of 2.4Mt at 4.9g/t contains both Indicated (54%) and Inferred (46%) Mineral Resources. 46% of the production target ounces referred to in this document is based on Inferred Mineral Resources. There is a lower level of geological confidence associated with Inferred Mineral Resources and there is no certainty that further exploration work will result in the determination of indicated mineral resources or that the production target itself will be realised.

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Figure 2: Oxide processing plant at Syama, to be repurposed for Tabakoroni sulphide processing

Updated Tabakoroni Underground Mineral Resource Estimate

Geology and Mineralisation

Gold mineralisation at Tabakoroni is hosted within the 5 to 25m thick Tabakoroni Main Shear Zone (TMSZ), a brittle- ductile shear zone developed in carbonaceous shale and siltstone rocks and localised along the eastern margin of Syama Formation basalt-dolerite flows and interflow sediments. The TMSZ gold mineralisation is associated with pyritic and carbonaceous fault gouge. Adjacent sandstone and siliceous siltstone display stockwork quartz-carbonate veins with pyrite disseminated throughout. Stylolitic quartz reefs are developed along the length of the TMSZ.

Drilling to date has identified high grade gold mineralisation over a strike length of 1.8km with better gold grades seen where the shear intersects the basalt sediment contact. North of the Namakan pit the basalt is absent in the hanging wall and better grades are associated with felsic porphyry intrusives within the TMSZ.

Resource Estimation and Classification

Resolute published the maiden underground resource at Tabakoroni on 29 April 2019 comprising 5.2Mt @ 5.1g/t Au for 850,000oz. Since that time diamond drilling has continued uninterrupted with the focus on infill and extensional drilling to increase the confidence in the geological model and to improve continuity in the mineralisation. Interim results from this drilling was reported on 12 December 2019 with numerous high-grade intersections confirming the width and grade of the underground mineralisation. The drilling program was completed to a nominal drill density of 50m and the resource was subsequently re-estimated in the second quarter of 2020.

The underground resource at Tabakoroni was updated to underpin the Study. The resource was estimated by wireframe constrained Ordinary Kriged (OK) methodology, as used in the previous estimate in April 2019.

Tabakoroni Underground Resource

	Category			Tonnes			Gold			Ounces
			(000)s			(g/t)			(000s)
	Measured	410		3.73		50
	Indicated	2,940		4.86		460
	Inferred	4,070		4.04		530
	Total	7,420		4.35		1,040

Table 1: Tabakoroni Underground Mineral Resources

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Mineralisation wireframes for underground were created with a cut-off grade of 1.5 g/t Au with a minimum downhole thickness of 2m. Five domains have been identified at Tabakoroni. The main domain is the TMSZ which is a steeply dipping shear mineralised over 1.8km of strike. A second domain was created for the parallel lodes adjacent to the TMSZ, and there are a number of shear-parallel smaller lodes. Another domain was created for the shallow westerly- dipping lodes in the southern portion of the deposit. These lodes are dipping at 45° and appear to overprint the TMSZ. A further domain created was the steeply dipping mineralisation in the north-eastern portion of the deposit, which strikes at 20° to the northeast. The final domain is referred to as Namakan Deeps which are shallow westerly-dipping lodes in the central portion of the deposit. These lodes appear to be veins with significant presence of arsenopyrite.

Gold, sulphide sulphur, organic carbon and arsenic was estimated into a three-dimensional block model using OK methodology with dynamic anisotropy to account for the undulating nature of main shear zone.

Top cutting was required to reduce the influence of outlier values. Variograms were generated for the mineralised 1 metre composites. Optiro carried out kriging neighbourhood analysis based upon the gold variograms to optimise the estimation parameters, and these parameters were used for ordinary kriging into the 5m x 10m x 5m parent cells.

Density was assigned based on weathering codes; 2,190 measurements were taken from diamond hole samples. These measurements suggested a density of 2.72g/m3 for the fresh, 2.38g/m3 for the transitional material and 2.12g/m3 for the oxide material.

The estimation was validated and then classified as Measured, Indicated and Inferred in accordance with the JORC Code (2012) reporting guidelines. The default classification for the mineralisation is an Inferred Mineral Resource. Measured Mineral Resources are defined by contiguous zones where the nominal drillhole density is 12.5m by 12.5m, while an Indicated Mineral Resource has been defined by zones where the nominal drillhole density is around 25m by 25m. The resource has been depleted for mining as of 31 March 2020.

Study Outcomes

The Study incorporates the updated underground Mineral Resource and multiple technical studies. The Study estimates include all capital and operating expenditure and royalties over the proposed Life-of-Mine plan (LOM). Ore mined comprises Indicated and Inferred Mineral Resources (See Note 1). Project capital is estimated to be US$118 million (m) with estimated start-up capital of US$86m. Project capital includes US$20.4m for conversion of the current Syama Oxide processing plant to also process sulphide material (retains the ability to process oxide material in the event of further exploration success) and US$12.6m for a new paste plant, power and underground infrastructure for the underground operation at the Tabakoroni site. All existing open pit infrastructure will be repurposed for the underground. Underground mining and ore haulage to the processing plant at Syama is planned to be undertaken by a contractor similar to current practice at Syama and Tabakoroni open pits, further diminishing the initial capital requirement and ensuring prompt access to ore.

Key Study outcomes are summarised below:

	Units		2020
		Study

Underground development
Ore development		m	7,836
Waste development		m	14,492
Vertical development		m	1,498
Total development		m	23,826
	Ore production
Development ore		kt	403
Stoping ore		kt	2,056
Total ore		kt	2,459
Metal grade (ROM)		g/t	4.9

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