Ann: June 2021 Quarterly Activities Report, page-5

jeez the list of excuses given this 1/4ly was long
not much money in the bank
another crappy All-in-Sustaining-Costs were US$2,354/oz.
Begging bowl coming soon so Ken better get preparing another good story.

• Poor mechanical availability of dewatering pumps affected the ability to remove pooled water.
This factor, combined with periods of high rainfall in early April and late May, and the narrow
footprint of the mining areas, halted mining operations for several days.
• Continued progression of a wall failure at Spearpoint impacted safe access to a portion of the
Phase 2 mining area. Despite attempts to place a containment buttress to control movement, the
wall continued to fail which prevented reaching the final pit design in this portion of the pit.
• With the decreasing footprint in both Hicks and Spearpoint, mining operations could not achieve
the planned production rates (limited space available for both drilling and mining to occur
simultaneously). As a result, the pits were re-sequenced to switch between drill/blast and
load/haul activities. This resulted in a decrease in the size of the mining fleet required to carry out
the mine plan; mining and support crews were reduced to match the equipment fleet.
• A re-evaluation of the resource model based on grade control drilling reduced the remaining
reserve base in Spearpoint with Phase 1 being halted above its final design elevation.
Furthermore, the revised model indicated potential laybacks of both Phase 1 and Phase 2 as
uneconomic.
• Hicks 4 - Phase 1 pit was stopped short of design because i) grade control results were not
showing the presence of the higher-grade material at the lower benches of the design and ii) the
mining equipment could not operate safely and effectively within the narrow confines of the pit
below the -10m elevation