LEAGOLD MINING CORPORATION

TECHNICAL REPORT ON THE

FAZENDA BRASILEIRO MINE,
BAHIA STATE, BRAZIL

NI 43-101 Report

Qualified Persons:
Mark B. Mathisen, C.P.G.
Hugo M. Miranda, MBA, ChMC (RM)
Robert L. Michaud, P.Eng.
Paul Hampton, P.Eng.

November 26, 2018

Effective Date May 31, 2018
RPA 55 University Ave. Suite 501 I Toronto, ON, Canada M5J 2H7 I T + 1 (416) 947 0907 www.rpacan.com
Report Control Form

Document Title Technical Report on the Fazenda Brasileiro Mine, Bahia

State, Brazil

Client Name & Address Leagold Mining Corporation

Suite 3043 – 595 Burrard Street
(Bentall Centre 3), PO Box 49152
Vancouver, British Columbia
V7X 1J1

Document Reference Status & FINAL

Project #2997 Issue No. Version

Issue Date November 26, 2018

Lead Author Hugo Miranda (Signed)

Mark Mathisen (Signed)
Robert L. Michaud (Signed)
Paul Hampton (Signed)

Peer Reviewer Deborah A. McCombe (Signed)

Project Manager Approval Hugo Miranda (Signed)

Project Director Approval Richard J. Lambert (Signed)

Report Distribution Name No. of Copies

Client

RPA Filing 1 (project box)

Roscoe Postle Associates Inc.

55 University Avenue, Suite 501
Toronto, ON M5J 2H7
Canada
Tel: +1 416 947 0907
Fax: +1 416 947 0395
[email protected]
 www.rpacan.com

TABLE OF CONTENTS
PAGE

1 SUMMARY ...................................................................................................................... 1-1

Executive Summary ....................................................................................................... 1-1
Economic Analysis ......................................................................................................... 1-8
Technical Summary ....................................................................................................... 1-8
2 INTRODUCTION ............................................................................................................. 2-1
3 RELIANCE ON OTHER EXPERTS ................................................................................. 3-1
4 PROPERTY DESCRIPTION AND LOCATION ................................................................ 4-1
Property Location........................................................................................................... 4-1
Mineral and Surface Rights in Brazil .............................................................................. 4-1
Land Tenure .................................................................................................................. 4-2
Royalties ........................................................................................................................ 4-4
5 ACCESSIBILITY, CLIMATE, LOCAL RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY ............................................................................................................... 5-1
6 HISTORY ........................................................................................................................ 6-1
Prior Ownership and Exploration History........................................................................ 6-1
Historical Resource Estimates ....................................................................................... 6-2
Past Production ............................................................................................................. 6-3
7 GEOLOGICAL SETTING AND MINERALIZATION .......................................................... 7-1
Regional Geology .......................................................................................................... 7-1
Local Geology ................................................................................................................ 7-3
Mineralization ................................................................................................................ 7-8
8 DEPOSIT TYPES ............................................................................................................ 8-1
9 EXPLORATION ............................................................................................................... 9-1
Exploration Potential ...................................................................................................... 9-1
10 DRILLING .................................................................................................................... 10-1
Sampling Method and Approach .................................................................................. 10-3
11 SAMPLE PREPARATION, ANALYSES AND SECURITY ............................................ 11-1
Sample Preparation and Analyses ............................................................................... 11-1
Quality Assurance/Quality Control ............................................................................... 11-2
Sample Security......................................................................................................... 11-10
12 DATA VERIFICATION ................................................................................................. 12-1
13 MINERAL PROCESSING AND METALLURGICAL TESTING ..................................... 13-1
Mineralogy ................................................................................................................... 13-1
Metallurgical Testing .................................................................................................... 13-1
14 MINERAL RESOURCE ESTIMATE ............................................................................. 14-1
Resource Database ..................................................................................................... 14-2

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Geological Interpretation .............................................................................................. 14-4

Statistical Analysis ....................................................................................................... 14-8
Bulk Density............................................................................................................... 14-36
Block Model ............................................................................................................... 14-36
Interpolation Parameters............................................................................................ 14-46
Block Model Validation............................................................................................... 14-47
Cut-off Grade ............................................................................................................. 14-53
Classification ............................................................................................................. 14-55
Mineral Resource Reporting ...................................................................................... 14-58
15 MINERAL RESERVE ESTIMATE ................................................................................ 15-1
Cut-off Grade ............................................................................................................... 15-4
Dilution and Extraction ................................................................................................. 15-5
Model Reconciliation .................................................................................................... 15-8
16 MINING METHODS ..................................................................................................... 16-1
Open Pit Mining ........................................................................................................... 16-1
Underground Mining..................................................................................................... 16-2
Production Schedule .................................................................................................... 16-5
Mine Equipment ........................................................................................................... 16-6
Mine Ventilation ........................................................................................................... 16-7
17 RECOVERY METHODS .............................................................................................. 17-1
Process Description ..................................................................................................... 17-1
Mineral Process Plant Production Statistics ................................................................. 17-9
18 PROJECT INFRASTRUCTURE .................................................................................. 18-1
Infrastructure ............................................................................................................... 18-1
Workforce Accommodation .......................................................................................... 18-2
Security........................................................................................................................ 18-3
19 MARKET STUDIES AND CONTRACTS ...................................................................... 19-1
Markets ........................................................................................................................ 19-1
Contracts ..................................................................................................................... 19-1
20 ENVIRONMENTAL STUDIES, PERMITTING, AND SOCIAL OR COMMUNITY IMPACT
......................................................................................................................................... 20-1
Introduction .................................................................................................................. 20-1
Environmental Licensing .............................................................................................. 20-1
Socioeconomics........................................................................................................... 20-5
Mine Closure Requirements......................................................................................... 20-6
Acid Rock Drainage Evaluation .................................................................................... 20-7
21 CAPITAL AND OPERATING COSTS .......................................................................... 21-1
Capital Costs ............................................................................................................... 21-1
Operating Costs ........................................................................................................... 21-2
Manpower .................................................................................................................... 21-4
22 ECONOMIC ANALYSIS............................................................................................... 22-1
23 ADJACENT PROPERTIES .......................................................................................... 23-1

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24 OTHER RELEVANT DATA AND INFORMATION ........................................................ 24-1

25 INTERPRETATION AND CONCLUSIONS .................................................................. 25-1
26 RECOMMENDATIONS................................................................................................ 26-1
27 REFERENCES ............................................................................................................ 27-1
28 DATE AND SIGNATURE PAGE .................................................................................. 28-1
29 CERTIFICATE OF QUALIFIED PERSON .................................................................... 29-1

LIST OF TABLES
PAGE
Table 1-1 Mineral Resource Summary as of May 31, 2018............................................... 1-2
Table 1-2 Mineral Reserve Summary as of May 31, 2018................................................. 1-3
Table 1-3 Projected Capital Costs .................................................................................. 1-14
Table 1-4 Actual Unit Operating Costs – 2015 to May 2018............................................ 1-14
Table 1-5 Projected Total Operating Costs ..................................................................... 1-15
Table 1-6 Projected Unit Operating Costs....................................................................... 1-15
Table 4-1 Exploration Permit List ...................................................................................... 4-3
Table 4-2 Exploration Permit with Final Positive Report .................................................... 4-4
Table 4-3 Mining Concession List ..................................................................................... 4-4
Table 6-1 Exploration History............................................................................................ 6-1
Table 6-2 FBDM Historical Production 1984 to May 31, 2018 ........................................... 6-3
Table 10-1 Drilling Completed as of May 31, 2018 ......................................................... 10-1
Table 11-1 Laboratory QA/QC Protocols ........................................................................ 11-2
Table 11-2 Certified Reference Materials........................................................................ 11-3
Table 11-3 Summary of 2016-2018 CRM Results ........................................................... 11-4
Table 11-4 Field Duplicates (FBDM) ............................................................................... 11-6
Table 11-5 Check Assays ............................................................................................... 11-8
Table 14-1 FBDM Mineral Resources as of May 31, 2018 .............................................. 14-2
Table 14-2 FBDM Resource Database Summary ........................................................... 14-3
Table 14-3 FBDM Domain Assignments (2016) .............................................................. 14-4
Table 14-4 FBDM Domain Assignments (2018) .............................................................. 14-5
Table 14-5 Statistics of Resource Raw Assay Values by Domain ................................... 14-8
Table 14-6 Capping of Resource Assay Values by Domain .......................................... 14-10
Table 14-7 Summary Statistics of Uncapped vs. Capped Assays (g/t Au) .................... 14-11
Table 14-8 Descriptive Statistics of Capped Composite Stats (g/t Au) by Domain ........ 14-23
Table 14-9 FBDM Variogram/Correlogram Results ....................................................... 14-35
Table 14-10 Average Bulk Density Values .................................................................... 14-36
Table 14-11 Block Model MOP Dimensions .................................................................. 14-38
Table 14-12 Block Model MC2 Dimensions .................................................................. 14-39
Table 14-13 Block Model MUG Dimensions ................................................................. 14-40
Table 14-14 Block Model EDEEP Dimensions .............................................................. 14-41
Table 14-15 Block Model LGT Dimensions ................................................................... 14-42
Table 14-16 Block Model MFBF Dimensions ................................................................ 14-43
Table 14-17 Block Model MFBG Dimensions................................................................ 14-44
Table 14-18 Block Model PPQ Dimensions .................................................................. 14-45
Table 14-19 OK Block Estimate Search Parameter by Domain .................................... 14-46

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Table 14-20 ID2 Block Estimate Search Parameter by Domain ..................................... 14-47
Table 14-21 Volume Comparison ................................................................................. 14-52
Table 14-22 Statistics of Block Grades Compared to Composite Grades by Domain.... 14-53
Table 14-23 Underground and Open Pit Cut-off Grade Optimization Factors as of May 2018
....................................................................................................................................... 14-54
Table 14-24 Correlogram Ranges Used for Resource Classification ............................ 14-56
Table 14-25 Reconciliation for January through May 2018 ........................................... 14-59
Table 14-26 Mineral Resource Summary by Zone as of May 31, 2018 ......................... 14-62
Table 15-1 Mineral Reserve Summary as of May 31, 2018............................................. 15-1
Table 15-2 Mineral Reserve Summary by Domain as of May 31, 2018 ........................... 15-2
Table 15-3 Underground Cut-off Grade Calculations ...................................................... 15-4
Table 15-4 Open Pit Cut-off Grade Estimation ................................................................ 15-5
Table 15-5 Recovery and External Dilution Factors by Resource Area (Underground) ... 15-6
Table 15-6 Monthly Reconciliation – 2017 ...................................................................... 15-8
Table 16-1 Fazenda Brasileiro Historical Production....................................................... 16-1
Table 16-2 FBDM Mine Production Schedule ................................................................. 16-5
Table 16-3 FBDM Mill Feed Schedule ............................................................................ 16-6
Table 16-4 FBDM Underground Mining Equipment......................................................... 16-6
Table 17-1 FBDM Processing Operating Parameters (2016 to May 2018).................... 17-10
Table 19-1 Monthly Primary Service Contract Expenditures (2017) ................................ 19-1
Table 19-2 Monthly Consumable Expenditures (2017) ................................................... 19-2
Table 20-1 FBDM Mining Permit Status .......................................................................... 20-2
Table 20-2 Socioeconomic Impacts Associated with Mine Closure ................................. 20-6
Table 20-3 Estimated Mine Closure Costs ...................................................................... 20-7
Table 21-1 Actual Sustaining Capital Costs - 2015 to May 2018 ..................................... 21-1
Table 21-2 Projected Capital Costs ................................................................................ 21-2
Table 21-3 Actual Operating Costs – 2015 to May 2018 ................................................. 21-2
Table 21-4 Actual Unit Operating Costs – 2015 to May 2018 .......................................... 21-3
Table 21-5 Projected Total Operating Costs ................................................................... 21-3
Table 21-6 Projected Unit Operating Costs..................................................................... 21-4

LIST OF FIGURES
PAGE
Figure 4-1 Location Map ................................................................................................... 4-5
Figure 4-2 Land Status Map ............................................................................................. 4-6
Figure 7-1 Regional Geology ............................................................................................ 7-2
Figure 7-2 Weber Belt Surface Geology ........................................................................... 7-5
Figure 7-3 Schematic Mine Cross Section ........................................................................ 7-6
Figure 7-4 FBDM Simplified and Refined Stratigraphy Column (2013) ............................. 7-7
Figure 7-5 FBDM Cross Section 92130E .......................................................................... 7-9
Figure 10-1 Drilling Plan View ......................................................................................... 10-2
Figure 11-1 CRM Results over Time for the 2016-2018 Diamond Core Drill Program
(FBDM) ............................................................................................................................. 11-4
Figure 11-2 Coarse Blanks Submitted with Core Samples (FBDM) ................................ 11-5
Figure 11-3 Drill Core Field 2016-2018 Duplicate Au Assays (FBDM) ............................ 11-7
Figure 11-4 Thompson-Howarth Estimate of Precision ................................................... 11-7
Figure 11-5 Relative Difference of Check Assays Analyzed in 2018 ............................... 11-8
Figure 11-6 QQ Plot of Check Assays Analyzed in 2018 ................................................ 11-9

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Figure 14-1 Drill Hole Location and Resource Wireframes 2018 ..................................... 14-6
Figure 14-2 Drill Hole Location and Resource Wireframes 2016 vs. 2018 ...................... 14-7
Figure 14-3 Domain Assignment (Wireframe) Volume 2016 vs. 2018 ............................. 14-8
Figure 14-4 Domain Box Plots ........................................................................................ 14-9
Figure 14-5 Capping Definition of CLX1 Zone............................................................... 14-12
Figure 14-6 Capping Definition of CLX2 Zone............................................................... 14-13
Figure 14-7 Capping Definition of EDEEP_CLX1 Zone ................................................. 14-14
Figure 14-8 Capping Definition of LGT Zone................................................................. 14-15
Figure 14-9 Capping Definition of Canto CARB Zone ................................................... 14-16
Figure 14-10 Capping Definition of Canto QTZ Zone .................................................... 14-17
Figure 14-11 Capping Definition of VQ Target .............................................................. 14-18
Figure 14-12 Capping Definition of F Zone ................................................................... 14-19
Figure 14-13 Capping Definition of G Zone ................................................................... 14-20
Figure 14-14 Capping Definition of PPQ Zone .............................................................. 14-21
Figure 14-15 Histogram of Sample Lengths .................................................................. 14-22
Figure 14-16 CLX1 Variogram ...................................................................................... 14-25
Figure 14-17 CLX2 Correlogram ................................................................................... 14-26
Figure 14-18 EDEEP Zone Correlogram....................................................................... 14-27
Figure 14-19 LGT Correlogram ..................................................................................... 14-28
Figure 14-20 Canto CARB Variogram ........................................................................... 14-29
Figure 14-21 Canto 2 QTZ Correlogram ....................................................................... 14-30
Figure 14-22 VQ Correlogram ...................................................................................... 14-31
Figure 14-23 F Zone Correlogram ................................................................................ 14-32
Figure 14-24 G Zone Correlogram ................................................................................ 14-33
Figure 14-25 PPQ Correlogram .................................................................................... 14-34
Figure 14-26 Block Model MUG Vertical Cross Section E90425 ................................... 14-49
Figure 14-27 Block Model MUG Vertical Cross Section E91550 ................................... 14-50
Figure 14-28 CLX1 Swath Plot ..................................................................................... 14-51
Figure 14-29 F Zone Mineral Resource Tonnes and Grade at Various Cut-off Grades . 14-55
Figure 14-30 Classification of F and G Zones ............................................................... 14-57
Figure 14-31 1.0 g/t Au Grade Shell Wireframes for F and G Zones ............................. 14-60
Figure 14-32 Stope and Pit Design for F and G Zones ................................................. 14-61
Figure 15-1 Slab Model Stope Design Model .................................................................. 15-7
Figure 16-1 Typical Underground Development and Stope Mining ................................. 16-4
Figure 17-1 Process Flow Sheet ..................................................................................... 17-2
Figure 17-2 FBDM Plant Site Layout .............................................................................. 17-3
Figure 17-3 JAnuary 2017 to May 2018 FBDM Mill Production, Budgeted vs. Actual.... 17-11
Figure 17-4 Gold Recovery and Gold Grade for January 2017 TO May 2018 ............... 17-12
Figure 17-5 Reagent Consumptions in January 2017 to May 2018 ............................... 17-13
Figure 17-6 Power Consumption in January 2017 to May 2018 .................................... 17-13
Figure 17-7 Plant Unit Operating Costs in January 2017 to May 2018 .......................... 17-14
Figure 20-1 Legal Reserve Areas ................................................................................... 20-4
Figure 20-2 Acid Base Accounting Characterization ....................................................... 20-8
Figure 20-3 Field Lysimeter Design .............................................................................. 20-10

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1 SUMMARY
EXECUTIVE SUMMARY
Roscoe Postle Associates Inc. (RPA) was retained by Leagold Mining Corporation (Leagold)
to prepare an independent Technical Report on the Fazenda Brasileiro Desenvolvimento
Mineral Mine (FBDM, Fazenda Brasileiro Mine, or the Mine), located in Bahia state, Brazil.
The purpose of this report is to support the disclosure of the Mineral Resource and Mineral
Reserve estimates prepared by Leagold for the FBDM operations as of May 31, 2018. This
Technical Report conforms to National Instrument 43-101 Standards of Disclosure for
Mineral Projects (NI 43-101). RPA visited the property on June 21 and 22, 2018.

Leagold is a Canadian publicly listed mining company with significant gold producing,
development, and exploration stage properties in Brazil and Mexico. Leagold’s portfolio
includes three operating mines in Brazil: FBDM, Pilar, and Riacho dos Machados mines, as
well as the Santa Luz Project, which is a permitted mine currently on care and maintenance.
These mines were acquired from Brio Gold Inc. (Brio) on May 24, 2018. Leagold also owns
the Los Filos mine, which is an operating mine in Mexico. Gold production in 2017 totalled
approximately 178,000 ounces (oz) of gold from the Brazil operations and approximately
191,000 oz from the Los Filos mine.

FBDM is an open pit and underground mine, which has been operational since 1984. FBDM
started as a heap leach operation, however, a carbon-in-pulp (CIP) milling facility was added
in 1988 to process underground ore. The plant was subsequently converted to pre-aeration
with carbon-in-leach (CIL). In 2017, approximately 1.3 million tonnes of ore were mined and
processed, producing a total of approximately 61,000 ounces of gold, with most of the ore
sourced from the underground mine. FBDM’s production since 1984 totals approximately 3.2
million ounces of gold.

The current Mineral Resource estimate, inclusive of Mineral Reserves, is summarized in

Table 1-1. Canadian Institute of Mining, Metallurgy and Petroleum (CIM) Definition
Standards for Mineral Resources and Mineral Reserves dated May 10, 2014 (CIM (2014)
definitions) were followed for presenting the FBDM Mineral Resources and Mineral
Reserves.

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TABLE 1-1 MINERAL RESOURCE SUMMARY AS OF MAY 31, 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine
Tonnage Au Grade Au Ounces
Category
(000 t) (g/t) (000 oz)
Measured
Underground 3,700 2.35 280
Open Pit 1,170 1.57 59
Total Measured 4,870 2.17 339

Indicated
Underground 2,370 2.66 203
Open Pit 300 1.63 16
Total Indicated 2,670 2.55 219

Measured + Indicated
Underground 6,070 2.47 483
Open Pit 1,470 1.59 75
Total Measured + Indicated 7,540 2.30 558

Inferred – Underground 5,260 2.58 436

Inferred – Open Pit 780 1.61 40
Total Inferred 6,040 2.45 476

Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are reported at a cut-off grade of 0.40 g/t Au for Open Pit and 1.0 g/t Au for
underground.
3. Mineral Resources are inclusive of Mineral Reserves.
4. Mineral Resources are estimated using a gold price of US$1,500 per ounce and a US$/R$ exchange
rate of R$3.70 = US$1.00.
5. A minimum mining width of 1.0 m was used for underground Mineral Resources.
6. Bulk density ranges from 2.72 t/m3 to 3.00 t/m3.
7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
8. Numbers may not add due to rounding.

The current Mineral Reserve estimate is presented in Table 1-2.

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TABLE 1-2 MINERAL RESERVE SUMMARY AS OF MAY 31, 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

Tonnage Au Grade Au Ounces

Category (000 t) (g/t) (000 oz)

Proven
Underground 1,456 1.94 91
Open Pit 1,176 1.57 59
Sub-total Proven 2,632 1.77 150

Probable
Underground 2,726 1.91 168
Open Pit 29 1.64 2
Sub-total Probable 2,756 1.91 169

Total Proven & Probable 5,387 1.84 319

Notes:
1. CIM (2014) definitions were followed for Mineral Reserves.
2. Mineral Reserves are reported at a cut-off grade of 1.29 g/t Au for underground material and
0.64 g/t Au to 0.72 g/t Au for open pit material.
3. Mineral Reserves are estimated using an average long-term gold price of US$1,200 per
ounce and a US$/R$ exchange rate of R$3.70 = US$1.00.
4. A minimum mining width of 3.0 m was used for underground Mineral Reserves.
5. Bulk density ranges from 2.72 t/m3 to 3.00 t/m3.
6. Numbers may not add due to rounding.

RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic,
marketing, political, or other relevant factors that could materially affect the Mineral Resource
or Mineral Reserve estimate.

CONCLUSIONS
Based on the site visit, discussions with FBDM personnel, and available information, RPA
offers the following conclusions.

GEOLOGY AND MINERAL RESOURCES

• RPA has reviewed the FBDM Mineral Resource estimates dated May 31, 2018 and is
of the opinion that the parameters, assumptions, and methodology used are
appropriate for the style of mineralization.

• The geological model employed by Leagold is reasonably well understood, and it is

well supported by field observations in both outcrop and drill core.

• Sampling and assaying have been carried out using industry standard quality
assurance/quality control (QA/QC) practices. These practices include, but are not

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limited to, sampling, assaying, chain of custody of the samples, sample storage, use
of third-party laboratories, standards, blanks, and duplicates.

• Interpretations of the geology and the three dimensional (3D) wireframes of the
estimation domains derived from these interpretations, appear to be reasonable.

• The resource model has been prepared using appropriate methodology and
assumptions, including:
o Treatment of high grade assays;
o Compositing length;
o Search parameters;
o Bulk density;
o Cut-off grade; and
o Classification.

• The block model has been validated using a reasonable level of rigour consistent with
common industry practice.

• Mineral Resources for FBDM comply with all disclosure requirements for Mineral
Resources as set out in NI 43-101.

• Exploration potential exists laterally along strike to the north and south and at depth
below the existing FBDM operations. The area has seen 40 years of extensive
geologic exploration along the mineral trend and has successfully identified additional
underground and open pit resources that are in various stages of mine development.
This exploration success is anticipated to continue into the future, but will include
some deeper targets.

MINING AND MINERAL RESERVES

• The mining methods utilized at FBDM include both conventional open pit mining and
underground mechanized sub-level stoping. These methods are appropriate for the
deposit.

• Proven and Probable Mineral Reserves for the Mine, as of May 31, 2018, total 5.4
million tonnes (Mt) grading 1.84 g/t Au, containing 319,000 oz of gold.

• The bulk of the mill feed is being sourced from underground. Small open pits are
used to supplement the underground production. Total mining capacity is
approximately 3,300 tonnes per day (tpd).

• Five separate declines originate on surface and access the various orebodies over a
strike length of several kilometres. The deepest level for underground workings is the
-750 RL (metres below the Mine’s reference elevation).

• The underground workings have good ground conditions that do not require any
special support to ensure stable openings.

• The LOM mining and processing schedules are based on Mineral Reserves only.

• The Mineral Reserve estimates have been prepared using appropriate methodology
and assumptions including:

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o Dilution;
o Mining extraction;
o Ground conditions;
o Access development;
o Stope design;
o Extraction sequence;
o Productivities;
o Operating costs;
o Sustaining capital costs.

• Through annual development and definition diamond drilling programs, FBDM has
been successful in converting a sufficient quantity of Mineral Resources to Mineral
Reserves to replace the Mineral Reserves extracted and processed during the year.
This conversion of Mineral Resources to Mineral Reserves has been repeated
annually for more than a decade.

RPA is of the opinion that the Mineral Reserves are being estimated in an appropriate
manner using current mining software and procedures consistent with reasonable
practice.

METALLURGICAL TESTWORK AND MINERAL PROCESSING

• The mineral processing facilities are operating well, are performing close to projected
ore throughput and gold production levels, and are keeping up with mining rates. The
gold grades are expected to decrease in the future, and an increased production rate
along with the successful discovery of higher-grade material as a result of continued
exploration drilling will be required to compensate for a decrease in the mined head
grade.

• The plant facilities require some refurbishment as well as normal maintenance. The
structural steel in the grinding, leaching, and acid wash circuits is showing significant
deterioration due to corrosion. Maintenance work includes replacement of the
structural steel on a periodic basis and over a span of several years during ongoing
operations. Maintenance work including refurbishment of equipment and structures
will be a high priority in the future.

• The pre-aeration circuit is configured for processing sulphide and carbonaceous ores.
The leach circuit has been converted to allow pre-aeration for sulphide oxidation
followed by CIL, which then flows into the former CIP circuit, which is now operated
as an extension of the CIL circuit. More carbonaceous ores are expected in the
future.

ENVIRONMENTAL ASPECTS
• FBDM has a comprehensive environmental policy, partially inherited from Yamana
Gold Inc. (Yamana) and Companhia Vale do Rio Doce (CVRD) operations, previous
owners of FBDM. This policy has been developed in line with the Plan of Recovery of
Degraded Area Document (PRAD) as outlined by the relevant Brazilian authority. The
environmental authorities in Brazil use the PRAD as a commitment for the company
to complete the rehabilitation on mine closure.

• FBDM is an established gold mine with a 34-year history and an established track
record with the Brazilian and Bahia state government regulatory agencies. The

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operation has all relevant permits in place along with management plans and
monitoring programs. The permits require periodic renewal. Applications have been
submitted to the appropriate agencies for the permits nearing expiration. The water
discharge and withdrawal permits are under renewal and are valid during the renewal
approval process.

• A detailed acid rock drainage (ARD) evaluation of the tailings was carried out in 2012.
A total of 57 samples of tailings were collected from the three existing tailings facilities
and almost 100% of samples presented a neutralization potential two times higher
than the acid generation potential.

• The arsenopyrite and pyrrhotite in the tailings facilities have low potential to become
future ARD generators, as the proportion of carbonates is well in excess of the
amount of the sulphides. FBDM has developed a field procedure to test different
types of tailings covers which, when implemented, will reduce the amount of
contaminants in the dam's toe drains by preventing surface water runoff and
precipitation from having contact with the tailings.

SOCIAL ASPECTS
• FBDM has developed an exemplary and creditable program for social and community
involvement in the area of the FBDM operations, which should be maintained for the
life of the mine.

• The main socioeconomic impacts that will be generated by the FBDM closure include
unemployment, decreased tax revenues, end of demand for local regional suppliers,
reduction in personal income, and the end of projects with the local communities.
FBDM has developed mitigation measures for some of these impacts.

CAPITAL AND OPERATING COSTS

• The LOM plan capital cost estimate includes sustaining capital expenditures, followed
by closure and reclamation. The capital cost of these activities is estimated to total
US$61.1 million and is based on a R$/US$ exchange rate of 3.7.

• LOM plan operating costs are estimated to total US$197.3 million, which averages
US$36.6 per tonne milled.

RISKS
• FBDM has been in production since 1984 and is a mature operation. In RPA’s
opinion, there are no significant risks and uncertainties that could reasonably be
expected to affect the reliability or confidence in the exploration information, mineral
resource or mineral reserve estimates, or projected economic outcomes.

RECOMMENDATIONS
RPA makes the following recommendations:

MINERAL RESOURCE ESTIMATE

• Geologic Model (Leapfrog)

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o Ensure that Hanging Wall and Footwall points are properly assigned to the
individual wireframes to eliminate or reduce the number of “gaps” in the
wireframe.
o Compress controlling boundaries and eliminate pinch outs to allow for better
modelling of grade continuity across lithologies.
o Set minimum mining thickness to 1.0 m.
o Clip or remove all isolated one-hole based wireframes or include them within the
main controlling boundary.

• Block Model
o If wireframes are built using a specific lithology code, ensure that all blocks within
the wireframe are assigned the same number.
o Ensure that all wireframes (triangulations) are properly closed and validated,
including mine design shapes.
o Reduce parent block size of underground models from 10 m by 10 m x 1 m to 2 m
x 2 m x 2m with sub-blocks set to a minimum size of 1 m x 1 m x 0.5 m to reduce
smoothing of local grade variabilities.

• Interpolation Parameters
o Ensure that the search ellipsoids are properly aligned along the geometric
orientations (strike, dip, and plunge) of the wireframe or use dynamic anisotropy
search to minimize horizontal striping of grades.

• Mineral Resources
o Ensure the waste volumes that do not have a grade are filled with blocks with an
assigned grade value of zero for reconciliation.
o Complete an underground survey program on the unsurveyed mine workings in
the Main Underground (MUG) area.

MINING AND MINERAL RESERVES

• The average Mine Call Factor (MCF) for 2017 is 101% with the greatest variation
from the detailed mine planning model versus process plan (MO) comparison. There
are also wide monthly fluctuations in the long term versus short term model (MM)
comparison and consistent underestimation of gold content in the short term model
versus mine planning (MP) comparison. RPA recommends that FBDM further
evaluate the reasons for the variations in all of the models so that appropriate
changes can be identified with the goal of improving the model predictive capability
and accuracy.

MINERAL PROCESSING
• The plant facilities require refurbishment as well as normal maintenance. Leagold
should perform refurbishment work in critical areas including grinding, leaching, CIL
and the carbon acid washing and elution circuit.

• Leagold should continue work in optimizing the CIL circuit and test any new ore types
that will be processed in the future, especially ores containing significant amounts of
carbon.

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ENVIRONMENTAL ASPECTS
• ARD generation has been associated with pyrrhotite, pyrite, and arsenopyrite in some
of the metallurgical testing at FBDM, potentially resulting in increasing acidity within
the tailings facilities over an extended period of time (years and decades). However,
the arsenopyrite and pyrrhotite in the FBDM tailings ponds have low potential to
become future ARD generators, as the proportion of carbonates is well in excess of
the amount of the sulphides. An ongoing measurement and monitoring program
would allow this risk to be minimized.

ECONOMIC ANALYSIS
Under NI 43-101 rules, “producing issuers”, as that term is defined in NI 43-101, may exclude
the information required for Section 22 Economic Analysis on properties currently in
production, unless the technical report includes a material expansion of current production.
RPA notes that Leagold is a producing issuer, FBDM is currently in production, and a
material expansion is not being planned at this time. RPA has performed an economic
analysis of FBDM using the estimates presented in this Technical Report and confirms that
the outcome is a positive cash flow that supports the statement of Mineral Reserves.

TECHNICAL SUMMARY
PROPERTY DESCRIPTION AND LOCATION
The FBDM is located in Bahia state, Brazil, at 11º 27' south latitude and 39º 03' west
longitude. The Mine is approximately 180 km northwest of the state capital city of Salvador.
Topography is gently rolling with elevations of 300 metres above sea level (MASL) to 500
MASL. Relief is generally 50 m to 100 m, although there are occasional hills and series of
hills rising 200 m to 300 m. Vegetation is generally sparse.

LAND TENURE
The FBDM property covers an area totalling 49,555.48 ha including 35 exploration permits,
eight mining permits, three mining permits in application, and one exploration permit with a
final positive report in application.

HISTORY
Modern production at FBDM began circa 1984. The primary operators of the Mine since
1984 have been CVRD (1984 to 2003), Yamana (2004 to 2014), and Brio (2015 to 2018).

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Leagold currently operates FBDM following the acquisition of Brio on May 24, 2018.
Approximately 3.2 million ounces of gold have been produced as of May 2018.

GEOLOGY AND MINERALIZATION

FBDM is located within the Rio Itapicurú Greenstone Belt (RIGB), a 100 km long, 60 km wide
north-south trending volcano-sedimentary belt situated within the São Francisco Craton.

The structural history of the area is complex, with at least three phases of ductile and ductile-
brittle deformation followed by late brittle faulting, which laterally offset the FBDM
mineralization by up to 100 m.

FBDM is an epigenetic, structurally controlled, and hydrothermally altered Precambrian

quartz vein hosted lode gold deposit that has been subjected to greenschist facies
metamorphism. There is some suggestion of a partial syngenetic origin for the gold because
of the anomalous gold content (0.05 g/t Au to 0.10 g/t Au) throughout visibly unmineralized
quartz-chlorite schist.

The main mineralization, in the form of sulphide-bearing quartz veining, is associated with a
second deformation event. These multiple vein systems vary in true width from 1.5 m to 40
m and horizontal mining widths vary from a minimum 3 m to 40 m. The veins are generally
arcuate east-west trending and 40° to 70° south dipping, and have a shallow to moderate
mainly east plunge to mineralized trends.

EXPLORATION STATUS
Recent exploration at FBDM has mostly been drilling to increase and/or replace reserves
depleted during mining. Much of this exploration drilling has been carried out from
underground drifts with the objective of identifying new resources and converting resources
to reserves. A deeper drilling program has been designed and implemented to extend the
underground Mineral Resources at depth and to the east.

The primary focus of recent exploration was the 10 km long east-west trending and south
dipping shear zone (Weber Belt), which is abruptly folded towards the south near its western
extremity. The Weber Belt also hosts the Barrocas Oeste, Papagaio, Logoa do Gato, and
Canto zones, all of which are present or have had past small-scale production.

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MINERAL RESOURCES
Based on internal production records and discussions with the FBDM mine team, FBDM
geologists noticed variable differences in grade and recovery percentages across the zone
boundaries compared to their short-term mining block model. As a result, FBDM initiated a
program in 2017 to reinterpret the mineralized zones based on better understandings of the
geology, grade continuity, and structural controls in the area. This work is ongoing in 2018.
The current Mineral Resource estimate as reported in Table 1-1 is based on this
reinterpretation. RPA subsequently audited the model as received from Leagold and found
that it was reasonably prepared and provided a good representation of the geologic data.

The methodology of estimating Mineral Resources by FBDM staff includes:

• Statistical analysis and variography of gold values in the assay database.

• Geological and mineralized envelope models developed using Leapfrog Geo

software.

• Construction of a block model using Datamine.

• Grade interpolation using Ordinary Kriging (OK) or Inverse Distance Squared (ID2).

As of May 31, 2018, Measured plus Indicated Mineral Resources, inclusive of Mineral
Reserves, are estimated to total 7,540,000 tonnes at an average grade of 2.30 g/t Au
containing approximately 558,000 oz of gold (Table 1-1). Inferred Mineral Resources are
estimated at 6,040,000 tonnes grading 2.45 g/t Au containing approximately 476,000 oz of
gold.

MINERAL RESERVES
RPA reviewed and validated the Mineral Reserve estimatesas received from Leagold. These
Mineral Reserves are a combination of the open pit and underground operations and
stockpiles. The Mineral Reserves are generated based on mine designs applied to the
Mineral Resource model. The design methodology uses both the cut-off grade estimation
and economic assessment to design and validate the Mineral Reserves. Wireframes are
also created for the mined volumes by the mine survey personnel. The resource models are
constrained by stope and development void spaces in the underground mine as well as the
volume depleted from the open pit. FBDM maintains a system of both ore and low grade
stockpiles.

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The Mineral Reserves for the FBDM operations are shown in Table 1-2. As of May 31, 2018,
Proven and Probable Mineral Reserves are estimated to total 5,387,000 tonnes at an
average grade of 1.84 g/t Au containing approximately 319,000 oz of gold.

MINING METHODS
OPEN PIT
Many of the identified mineralized lenses outcrop to surface. Over the course of the
operation’s history, several shallow open pits have been excavated to extract these near
surface deposits. Currently, several small open pits are in operation, and mining is being
completed using contractors. Typically, these small pits are 30 m to 50 m deep and employ
air-track drills and backhoe excavators for mining, and highway-type trucks for haulage to the
mill.

UNDERGROUND
The main access to the underground operation is through a series of declines. Over the life
of the operations, eight main declines - the B, C, D, E, F, G, EW, and EDEEP - have been
developed along the strike of the mineralization. A main central shaft (470 m deep) exists,
however, it is no longer used for hoisting as the portion of the deposit located within
economic distance of the shaft has been mined out. The shaft is now utilized only as a part
of the escapeway and ventilation circuit.

Underground mining employs blast hole stoping from sub-levels developed along the trend of
the mineralization. The stoping areas are accessed initially from 5 m wide by 5.5 m high
main haulage ramps developed at 12% road grade in the footwall, which leads to primary
development crosscuts of 4.5 m wide by 5.1 m high, and secondary development drifts and
crosscuts of 4.5 m wide by 4.7 m high. Sub-levels are spaced at 25 m vertical intervals.
Mined out stopes are not backfilled.

Sub-levels are developed into the stoping areas and fan drilling of blast holes into the
mineralization is used to further define the boundaries of the mineralization and design the
ultimate blast patterns. Remote-controlled 12 t Load-Haul-Dump (LHD) machines are used
to load and haul the ore from the stoping areas to 25 t and 35 t articulated haulage trucks at
loading points in the sub-levels.

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The sub-horizontal plunge and approximate 45° dip of the orebody, combined with a
thickness up to 40 m, provides for low development and operating costs. Maximum stope
heights are 20 m. Future operations in the deeper areas of E Ramp will have higher haulage
costs that will be partially offset by the shorter underground haulage in the F and G Ramps.

All bodies have a planned dilution of 15%, except for the EDEEP, which has a dilution of
18%. Planned mining recovery was estimated to be 90%.

MINERAL PROCESSING
Production at FBDM began in 1984 using heap leaching. A conventional cyanide leaching
and CIP plant, Circuit 1, was then added to treat the underground ore at a rate of 34 tonnes
per hour (tph). In 1991, the plant was expanded by adding a second 95 tph circuit, Circuit 2,
to give a total capacity of 120 tph or approximately 960,000 tonnes per annum (tpa).
Currently the two leaching circuits operate with pre-aeration and CIL. With improvements
made over time, the plant is capable of processing 175 tph, approximately 1,200,000 tpa.
The heap leach operation was discontinued sometime between 2003 and 2007.

PROJECT INFRASTRUCTURE
FBDM has been operational for 34 years and has all of the necessary roads, powerlines,
access, medical facilities, and employee support communities. The major assets and
facilities associated with FBDM are:

• The open pit mines and associated waste dumps and haul roads.
• The underground mines and mine development.
• Open pit and underground mining equipment and support equipment.
• A 1,200,000 tpa CIL plant with crushers, grinding circuit, cyanide leaching circuit,
and cyanide destruction circuits.
• Paste tailings backfill plant.
• On-site and main access roads.
• Abundant water from a series of well fields with a total production capacity of 480
m3/h.
• Four lined tailings impoundments.
• Power supplied from the local grid.

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MARKET STUDIES
Gold is the principal commodity at FBDM and is freely traded, at prices that are widely
known, so that prospects for sale of any production are virtually assured. Prices are usually
quoted in US dollars per troy ounce.

FBDM has a large number of contracts in place, which is not uncommon for a typical mining
operation located in Brazil. The terms of the various contracts are within Brazilian Law. The
number of contractors in 2018 was 271. This is explained by the use of multiple small local
companies. FBDM prioritizes sourcing goods and services through local suppliers, and
thereby contributing to the sustainable economic development of local communities.

ENVIRONMENTAL, PERMITTING AND SOCIAL CONSIDERATIONS

FBDM has been operating for 34 years and therefore all relevant permits have been in place
for this period. There are no identified environmental liabilities associated with the
tenements.

FBDM has a comprehensive environmental policy, partially inherited from Yamana/CVRD

operations. This policy has been developed in line with the PRAD as outlined by the relevant
authority. The environmental authorities in Brazil use the PRAD as a commitment for the
company to complete the rehabilitation on mine closure.

A detailed ARD evaluation of the FBDM tailings was carried out in 2012 and analytical results
showed that almost 100% of samples presented a neutralization potential two times higher
than the acid generating potential. The risks of ARD generation are controlled by the natural
presence of carbonates in the mineralogy of the waste rocks, however, it is still possible to
find some elevated arsenic concentrations in the water from the tailings dam ponds,
according to the water monitoring campaigns carried out through the 34 years at the FBDM
site. In order to address the mitigation methods for this potential ARD issue, FBDM has
developed a field procedure to test different types of tailings covers and to effectively prevent
surficial and meteoric water from contact with the tailings.

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CAPITAL AND OPERATING COST ESTIMATES

The sustaining, non-sustaining and closure/reclamation capital costs for the LOM period of
June-December 2018 to 2023 are estimated to be US$61.1 million as shown in Table 1-3.
These costs are based on an exchange rate of R$3.70 = US$1.00.

TABLE 1-3 PROJECTED CAPITAL COSTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

2018 (Jun 2023 and

to Dec) 2019 2020 2021 2022 Beyond Total
Description (US$ M) (US$ M) (US$ M) (US$ M) (US$ M) (US$ M) (US$ M)
Sustaining Capital
Buildings & Infrastructure 0.254 0.809 0.151 0.129 1.343
Machinery & Equipment 0.888 0.888
UG Mine Development 2.469 7.875 2.931 3.546 1.500 18.320
OP Mine Development 1.935 1.933 1.365 5.233
Vehicles 0.173 0.080 0.253
Tailings Dam Expansion 0.357 3.400 1.714 5.471
Sub-Total sustaining 6.076 14.097 4.447 5.389 1.500 0 31.508

Non-sustaining
Machinery & Equipment 2.354 3.185 1.885 7.424
UG Mine Development 0.783 0.783
Exploration 0.299 0.299
Sub-Total Non-sustaining 3.436 3.185 1.885 0 0 0 8.506
Closure & Reclamation 0.100 1.243 1.919 3.650 2.650 11.520 21.082
Total 9.612 18.525 8.251 9.039 4.150 11.520 61.096

Operating costs for the period 2015 to mid-2018 averaged US$39.45 per tonne milled as
shown in Table 1-4.

TABLE 1-4 ACTUAL UNIT OPERATING COSTS – 2015 TO MAY 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

2015 2016 2017 Jan to May 2018 Average

Activity (US$/t milled) (US$/t milled) (US$/t milled) (US$/t milled) (US$/t milled)
Open Pit Mining 1.61 2.56 3.19 4.02 2.67
Underground Mining 18.78 17.92 20.40 22.57 19.48
Milling 12.48 13.18 13.35 13.67 13.10
General & Administration 3.66 5.00 4.02 3.92 4.20
Total 36.53 38.66 40.97 44.18 39.45
Exchange Rate (BRL/USD) 3.33 3.49 3.19 3.38 3.34

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LOM operating costs, estimated to total US$197.3 million, are summarized in Table 1-5 and
are based on an exchange rate of R$3.70 = US$1.00. This translates into an average
operating cost of US$36.6 per tonne milled as detailed in Table 1-6.

TABLE 1-5 PROJECTED TOTAL OPERATING COSTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

2018
(Jun-Dec) 2019 2020 2021 2022 Total
Activity (US$M) (US$M) (US$M) (US$M) (US$M) (US$M)
Open Pit Mining 1.1 4.2 3.9 5.4 4.9 19.5
Underground Mining 15.6 26.7 21.8 15.0 10.0 89.1
Milling 8.5 14.4 13.5 11.1 10.9 58.4
General & Administration 5.3 6.3 6.3 6.3 6.2 30.3
Total 30.5 51.7 45.5 37.7 31.9 197.3

TABLE 1-6 PROJECTED UNIT OPERATING COSTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

2018 2019 2020 2021 2022 Average

(Jun-Dec) (US$/t (US$/t (US$/t (US$/t (US$/t
Activity (US$/t milled) milled) milled) milled) milled) milled)
Open Pit Mining 1.4 3.2 3.1 5.3 4.9 3.6
Underground Mining 19.9 20.1 17.4 14.6 10.0 16.5
Milling 10.8 10.8 10.8 10.8 10.8 10.8
General & Administration 6.7 4.7 5.0 6.2 6.2 5.6
Total 38.9 38.8 36.4 36.9 31.8 36.6

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2 INTRODUCTION
Roscoe Postle Associates Inc. (RPA) was retained by Leagold Mining Corporation (Leagold)
to prepare an independent Technical Report on the Fazenda Brasileiro Desenvolvimento
Mineral Mine (FBDM, Fazenda Brasileiro Mine, or the Mine), located in Bahia state, Brazil.
The purpose of this report is to support the disclosure of the Mineral Resource and Mineral
Reserve estimates prepared by Leagold for the FBDM operations as of May 31, 2018. This
Technical Report conforms to National Instrument 43-101 Standards of Disclosure for
Mineral Projects (NI 43-101).

Leagold is a Canadian publicly listed mining company with significant gold producing,
development, and exploration stage properties in Brazil and Mexico. Leagold’s portfolio
includes three operating mines in Brazil: FBDM, Pilar, and Riacho dos Machados mines, as
well as the Santa Luz Project, which is a permitted mine currently on care and maintenance.
These mines were acquired from Brio Gold Inc. (Brio) on May 24, 2018. Leagold also owns
the Los Filos mine, which is an operating mine in Mexico. Gold production in 2017 totalled
approximately 178,000 ounces (oz) of gold from the Brazil operations and approximately
191,000 oz from the Los Filos mine.

FBDM is an open pit and underground mine, which has been operational since 1984. FBDM
started as a heap leach operation, however, a carbon-in-pulp (CIP) milling facility was added
in 1988 to process underground ore. The plant was subsequently converted to utilize pre-
aeration with carbon-in-leach (CIL). In 2017, approximately 1.3 million tonnes of ore were
mined and processed, producing a total of approximately 61,000 ounces of gold, with most of
the ore sourced from the underground mine. FBDM’s production since 1984 totals
approximately 3.2 million ounces of gold.

SOURCES OF INFORMATION
The site visit to the FBDM property was carried out by Hugo Miranda, MBA, ChMC (RM),
RPA Principal Mining Engineer, and Mark Mathisen, C.P.G., RPA Principal Geologist, on
June 21 and 22, 2018. Robert Michaud, P.Eng., RPA Associate Mining Engineer; and
Andrew P. Hampton, P.Eng., RPA Associate Metallurgical Engineer, visited the site on
March 17, 2015.

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RPA held discussions with the following personnel:

• Thiago Teixeira, Geology and Mine Planning Manager.
• Carlos Pires – Mineral Resource Coordinator
• Thiago Souza – Geologist
• Erivelton Belem – Laboratory Coordinator
• Ana Luisa Santos Luz – Mine Planning Engineer
• Raphael Maracajas – Mine Plan Manager
• Jorge Fernandes – Corporate Resource Manager

Mr. Miranda, Mr. Mathisen, Mr. Michaud, and Mr. Hampton, are the Qualified Persons taking
responsibility for this Technical Report. Mr. Miranda is responsible for the overall preparation
of the Technical Report and Sections 2 to 6, 23 and 24 and related disclosure in Sections 1,
25, 26 and 27. Mr. Mathisen is responsible for Sections 7 to 12 and 14 and related
disclosure in Sections 1, 25, 26 and 27. Mr. Michaud is responsible for Sections 15, 16, 19,
21, and 22 and related disclosure in Sections 1, 25, 26 and 27 and Mr. Hampton is
responsible for Sections 13, 17, 18, and 20 and related disclosure in Sections 1, 25, 26 and
27.

The documentation reviewed, and other sources of information, are listed at the end of this
report in Section 27 References.

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LIST OF ABBREVIATIONS
Units of measurement used in this report conform to the metric system. All currency in this
report is US dollars (US$) unless otherwise noted.

A annum kWh kilowatt-hour

A ampere L litre
Bbl barrels lb pound
Btu British thermal units L/s litres per second
°C degree Celsius m metre
C$ Canadian dollars M mega (million); molar
Cal calorie m2 square metre
Cfm cubic feet per minute m3 cubic metre
Cm centimetre µ micron
cm2 square centimetre MASL metres above sea level
D day µg microgram
Dia diameter m3/h cubic metres per hour
Dmt dry metric tonne mi mile
Dwt dead-weight ton min minute
°F degree Fahrenheit µm micrometre
Ft foot mm millimetre
ft2 square foot mph miles per hour
ft3 cubic foot MVA megavolt-amperes
ft/s feet per second MW Megawatt
G gram MWh megawatt-hour
G giga (billion) oz Troy ounce (31.1035g)
Gal Imperial gallon oz/st, opt ounces per short ton
g/L grams per litre ppb parts per billion
Gpm Imperial gallons per minute ppm parts per million
g/t grams per tonne psia pounds per square inch absolute
gr/ft3 grains per cubic foot psig pounds per square inch gauge
gr/m3 grains per cubic metre RL relative elevation
Ha hectare s second
Hp horsepower st short ton
Hr hour stpa short tons per year
Hz hertz stpd short tons per day
in. inch t metric tonne
in2 square inch tpa metric tonnes per year
J joule tpd metric tonnes per day
K kilo (thousand) US$ United States dollar
Kcal kilocalorie USg United States gallon
Kg kilogram USgpm US gallons per minute
Km kilometre V volt
km2 square kilometre W watt
km/h kilometres per hour wmt wet metric tonne
kPa kilopascal wt% weight percent
kVA kilovolt-amperes yd3 cubic yard
kW kilowatt yr year

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3 RELIANCE ON OTHER EXPERTS

This report has been prepared by RPA for Leagold. The information, conclusions, opinions,
and estimates contained herein are based on:
• Information available to RPA at the time of preparation of this report, and

• Assumptions, conditions, and qualifications as set forth in this report.

For the purpose of this report, RPA has relied on ownership information provided by Leagold.
RPA has not researched property title or mineral rights for FBDM and adjoining deposits and
expresses no opinion as to the ownership status of the property.

RPA has relied on Leagold for guidance on applicable taxes, royalties, and other government
levies or interests, applicable to revenue or income from the FBDM.

Except for the purposes legislated under provincial securities laws, any use of this report by
any third party is at that party’s sole risk.

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4 PROPERTY DESCRIPTION AND LOCATION

PROPERTY LOCATION
FBDM is located in east central Brazil close to the Atlantic coast, in the eastern part of Bahia
state, 180 km northwest of the state capital city of Salvador as shown in Figure 4-1.
Topographic coordinates of the Mine area are 11º 27' south latitude and 39º 03' west
longitude.

MINERAL AND SURFACE RIGHTS IN BRAZIL

Brazilian mining laws and concession ownership are administered by the National
Department of Mineral Production (Departamento Nacional de Produção Mineral, or DNPM),
the Federal Mining agency. In Brazil, all mineral ownership has standard protocols and
applications for all aspects of exploration and mining of mineral deposits.

The exploration and exploitation of mineral deposits in Brazil are defined and regulated in the
1967 Mining Code and overseen by the DNPM. There are two main legal classifications
under the Mining Code regulating Exploration and Mining in Brazil: Exploration Permits
(“Autorização de Pesquisa”) and Mining Concessions (“Concessão de Lavra”).

Applications for an Exploration Permit (EP) are made to the DNPM and are available to any
company incorporated under Brazilian law and maintaining a main office and administration
in Brazil. EPs are granted following submission of required documentation by a legally
qualified Geologist or Mining Engineer, including an exploration plan and evidence of funds
or financing for the investment forecast in the exploration plan. An annual fee per hectare
ranging from US$0.35 to US$0.70, is paid by the holder of the EP to the DNPM, and reports
of exploration work performed must be submitted. During the period where a formal EP
application has been submitted by a company for an area, which has not yet been granted,
exploration works are permitted with the exception of drilling. In this document, these areas
are referred to as Exploration Claims.

EPs are valid for a maximum of three years, with a maximum extension equal to the initial
period, issued at the discretion of the DNPM. The annual fee per hectare increases by 50%

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during the extension period. After submission of a Final Exploration Report, the EP holder
may request a mining concession. Mining concessions are granted by the Brazilian Ministry
of Mines and Energy, are renewable annually, and have no set expiry date. The concessions
remain in good standing subject to submission of annual production reports and payments of
royalties to the federal government.

For those areas where the maximum extension of an EP has been reached, and a positive
Final Exploration Report and mining concession request has not been submitted by the
company, the EP is no longer held by the company and the area is designated with a status
of “Available”. Following expiry, the DNPM will accept EP applications from the public,
including the first owner, for a period of 60 days. In this document, where FBDM is re-
applying for these claims, the areas are referred to as “Re-Application for Exploration Permit
in Process”. If any valid, external EP applications are submitted during this period in addition
to FBDM’s application, the DNPM will review, with consideration of the work completed, and
decide to whom they will issue the permit. Before a decision is reached, claim status is set to
“In Dispute”.

Surface rights can be applied for if the land is not owned by a third party. The owner of an
EP is guaranteed, by law, access to perform exploration field work, provided that adequate
compensation is paid to third party landowners and the EP holder accepts all environmental
liabilities resulting from the exploration work.

LAND TENURE
The FBDM property covers an area totalling 49,555.48 ha including 35 EPs (37,335.14 ha),
eight mining permits (7,732.04 ha), three mining permits in application (2,556.46 ha), and
one exploration permit with final positive report in application (Figure 4-2). The EPs are
listed in Table 4-1, exploration permit with final positive report in application is listed in Table
4-2, and mining concessions are listed in Table 4-3, and reflect status as of November 2018.

RPA is not aware of any environmental liabilities on the property. Leagold has all required
permits to conduct the proposed work on the property. RPA is not aware of any other
significant factors and risks that may affect access, title, or the right or ability to perform the
proposed work program on the property.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 4-2
 www.rpacan.com

TABLE 4-1 EXPLORATION PERMIT LIST

Leagold Mining Corporation – Fazenda Brasileiro Mine

DNPM Number Application Date Expiry Date Area (ha) Status

870.497/11 7-Feb-11 21-Mar-20 582.74
870.946/11 15-Mar-11 4-Jan-20 792.01
871.020/89 1-Aug-89 21-Mar-19 959.12
870.143/12 19-Jan-12 14-Sept-18 998.11 Renewal Pending
870.144/12 19-Jan-12 14-Sept-18 490.07
870.145/12 19-Jan-12 14-Sept-18 948.92 Renewal Pending
870.315/12 9-Feb-12 14-Sept-18 193.88 Renewal Pending
870.423/11 31-Jan-11 3-Sept-18 26.77 Renewal Pending
870.461/12 22-Feb-12 14-Sept-18 77.26 Renewal Pending
870.637/09 6-May-09 3-Sept-18 1,973.79 Renewal Pending
870.765/12 22-Mar-12 14-Sept-18 2,000.00 Renewal Pending
870.769/12 22-Mar-12 14-Sept-18 1,920.86 Renewal Pending
872.022/12 25-Sept-12 15-Sept-18 999.91 Renewal Pending
872.253/12 22-Oct-12 15-Sept-18 1,105.17 Renewal Pending
872.282/12 24-Oct-12 15-Sept-18 999.90 Renewal Pending
872.313/10 13-Oct-10 3-Sept-18 1,912.20 Renewal Pending
874.678/11 6-Dec-11 15-Sept-18 1,000.05 Renewal Pending
870.090/15 20-Jan-15 29-Oct-18 220.49 Renewal Pending
872.045/13 28-Aug-13 8-Dec-18 1,174.79
872.282/13 8-Dec-15 8-Dec-18 1,924.77
872.554/15 6-Nov-15 31-May-19 1,000.01
872.556/15 6-Nov-15 31-May-19 1,566.61
871.470/16 12-Jul-16 17-Oct-19 414.44
871.473/16 12-Jul-16 17-Oct-19 1,999.45
871.476/16 12-Jul-16 17-Oct-19 999.66
871.521/16 14-Jul-16 19-Oct-19 1,130.87
871.522/16 14-Jul-16 19-Oct-19 1,999.21
871.528/16 14-Jul-16 6-Oct-19 932.50
871.836/16 10-Aug-16 20-Mar-20 1,945.61
871.856/16 11-Aug-16 20-Mar-20 1,128.85
870.553/17 2-Mar-17 27-Jun-20 1,293.65
871.429/17 12-Jul-17 21-Dec-20 1,634.04
871.430/17 12-Jul-17 21-Dec-20 598.33
871.431/17 12-Jul-17 21-Dec-20 190.84
871.496/17 19-Jul-17 11-Jan-21 200.26

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 4-3
 www.rpacan.com

TABLE 4-2 EXPLORATION PERMIT WITH FINAL POSITIVE REPORT

Leagold Mining Corporation – Fazenda Brasileiro Mine

DNPM Number Application Date Area (ha) Status

Final Report under
870.827/11 10-Mar-2011 1,931.84
Evaluation
Total 1 1,931.84

TABLE 4-3 MINING CONCESSION LIST

Leagold Mining Corporation – Fazenda Brasileiro Mine

DNPM Number Date of Application Date of Award Status Area (ha)

802.203/75 16-Mar-89 28-Jan-94 Mining Concession 1,000.00
802.206/75 16-Mar-89 28-Jan-94 Mining Concession 1,000.00
802.212/75 16-Aug-84 3-Mar-86 Mining Concession 1,000.00
802.266/78 26-Oct-88 28-Jan-94 Mining Concession 1,000.00
807.869/75 17-Nov-83 3-Oct-84 Mining Concession 875.74
870.226/82 10-Oct-90 4-Sep-95 Mining Concession 856.30
870.425/85 5-May-94 14-Aug-06 Mining Concession 1,000.00
871.077/84 29-Jun-05 13-Sep-06 Mining Concession 1,000.00
802.264/78 26-Jun-81 Application Submitted 669.82
802.265/78 29-May-91 Application Submitted 949.68
870.898/83 14-Jul-95 Application Submitted 936.96
Total 11 10,288.50

ROYALTIES
The Brazilian government collects a 1.5% gross revenue royalty on all gold operations in
Brazil. This royalty is split among the various levels of government with 65% of the royalty
payable to the Municipality (this portion of the royalty is split further between Barrocas (52%),
Teofilândia (26%) and Araci (22%)), 23% of the royalty paid to the Bahia state government,
and the remaining 12% of the royalty paid to the federal government.

Under Brazilian law, surface owners have a right to a 0.5% gross revenue royalty. FBDM
owns most of the surface rights over planned production areas, however, there are a few
small parcels of land for which this royalty applies.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 4-4
 www.rpacan.com
70° 60° 50° 40°
Santa TRINIDAD AND

Marta Maracaibo Caracas TOBAGO

Port-of-Spain
Legend:
Barcelona
10° Barquisimeto Valencia Maturin International Boundary 10°
NORTH
Ciudad Bolivar State Boundary
Cucuta
San Cristobal ATLANTIC
Georgetown National Capital
VENEZUELA New Amsterdam OCEAN
Bucaramango Paramaribo
Puerto Carreno GUYANA State Capital
Santa Elena Cayenne
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Macapa Equator
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Ama
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FAZENDA BRASILEIRO MINE
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10° Assis Brasil Guajara-Mirim

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Matarani Ilo aiba
Santa Cruz Rio P
aran GERAIS
Tacna Oruro Corumba
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Campo Santa Fe Uberlandia ESPIRITO
Grande do Sul
Rio Grande
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ay

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20° Iquique
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Porto Alegre
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0 200 400 Kilometres

Santa
Maria 200 400 Miles
0
30° Santa Fe 30°
Cordoba URUGUAY
Rio Grande
Mendoza Rosario
Valparaiso
Colonia
Figure 4-1
Santiago Buenos Aires
La Plata Montevideo
Leagold Mining Corporation
Concepcion
Mar del Plata
Bahia Bianca Fazenda Brasileiro Mine
70° 60° 50° Bahia40°
State, Brazil 30°
Location Map
November 2018

4-5
 N
Legend:
4-6

Figure 4-2

Leagold Mining Corporation

www.rpacan.com
Fazenda Brasileiro Mine
0 10 20
Bahia State, Brazil
Kilometres
Land Status Map
November 2018 Source: Leagold, 2018.
 www.rpacan.com

5 ACCESSIBILITY, CLIMATE, LOCAL

RESOURCES, INFRASTRUCTURE AND
PHYSIOGRAPHY
ACCESSIBILITY
Access to FBDM from the city of Salvador is via 180 km of paved road on highways BR324
and BA409, and secondary paved highways to the village of Teofilândia, which is located 15
km, by road, southeast of the mine. This final 15 km of the road is unpaved but of good
quality. There are numerous direct flights daily from Salvador to São Paulo and other major
Brazilian cities, from which connections are available to a variety of international
destinations. Various secondary and tertiary roads, some of poor quality, lead from the Mine
area to portions of the exploration properties being assessed by Leagold.

CLIMATE
The climate is semi-arid and seasonal variations are minimal, however, rain is more
prevalent between November and January. Average annual rainfall, measured on the site, is
approximately 500 mm. The average annual temperature is approximately 24ºC with
minimal month to month variation. The local climate conditions are conducive to year round
mining operations.

LOCAL RESOURCES
The town of Teofilândia serves as the main community for workers at the Mine although a
smaller village is located between Teofilândia and the mine. The local population base is
approximately 20,000, the vast majority of whom live in Teofilândia. The general area of the
exploration properties is inhabited largely by subsistence farmers and garimpeiros (local
artisanal miners who work prospect pits on a small scale).

In addition to mining, local economic activity consists of subsistence agriculture, goat herding
and cattle ranching. Sisal is the main crop with its sword-shaped leaves being transformed
into twine and rope-making material, and more recently, into craft objects for export to
Europe.

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Teofilândia is a full service town and along with the Mine has access to electricity from the
national power grid. There is a freight-only rail line, which passes through the area in a
northwest-southeast direction close to FBDM. The rail line is not used by FBDM.

INFRASTRUCTURE
Mine site infrastructure includes a 470 m deep vertical shaft; a series of underground ramps;
a 1,200,000 tpa (3,300 tpd) CIL facility; geomembrane-lined heap leach pads and associated
processing equipment; a series of geomembrane-lined tailings disposal ponds; a warehouse,
maintenance shops; drill core logging, splitting and storage facilities; a sample preparation
facility and assay laboratory; a cafeteria, and several office complexes. In addition, the Mine
has a water system consisting of a well field located east of Teofilândia, a buried pipeline,
and a pumping system to provide potable and processing water to Teofilândia and the mine.
The water supply is more than sufficient for the mining operation and has been relied on for
years. Sufficient surface area exists for all necessary surface facilities, including mill tailings
and waste rock stockpiles.

PHYSIOGRAPHY
Topography is gently rolling with elevations of 300 MASL to 500 MASL. Relief is generally
50 m to 100 m, although in some areas there are hills and series of hills rising 200 m to 300
m. Vegetation is generally sparse. Plant cover is composed of rough, low grasses,
algarroba (mesquite-like) trees, and commercially harvested sisal plants. There are very few
flowing water courses in the area although there are a number of small, gentle depressions
and valleys that carry water during the occasional rainy periods.

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Technical Report NI 43-101 – November 26, 2018 Page 5-2
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6 HISTORY
PRIOR OWNERSHIP AND EXPLORATION HISTORY
The Weber Belt has been explored by Companhia Vale do Rio Doce (CVRD) since the late
1960s by its exploration division, DOCEGEO. Mineralization at Fazenda Brasileiro was
discovered in the late 1970s and the Mine entered into production in 1984.

Table 6-1 summarizes FBDM’s exploration history prior to Leagold’s acquisition.

TABLE 6-1 EXPLORATION HISTORY

Leagold Mining Corporation – Fazenda Brasileiro Mine

Year Description
1969 -1970 Prospecting for alluvial gold along the Itapicurú River was conducted by CPRM, the
Brazilian Federal government geologic survey.
1972 DOCEGEO, the exploration division of CVRD, conducted base metal oriented
regional stream geochemical surveys in the area. Numerous anomalies were
detected.
1974 and 1975 DOCEGEO carried out ground follow-up, including detailed stream geochemical
surveys. Numerous important copper and zinc anomalies were identified.
1976 DOCEGEO conducted airborne electromagnetic (EM) surveys and 300 of the 2,500
anomalies were selected for follow-up. Surface sampling programs were
implemented and the most significant sample returned 2.0 g/t Au. Additional
magnetic, induced polarization (IP), and geochemical surveys were conducted at a
higher level of detail than previous surveys.
Post-1976 DOCEGEO/CVRD conducted surface exploration programs including significant
diamond drilling focusing on the Weber Belt rocks, which contain the mineralization
at Fazenda Brasileiro. Approximately 28,200 holes were drilled by CVRD for a total
of approximately 1,288,000 m. CVRD discovered the Fazenda Brasileiro deposit in
the late 1970s and began mining operations in 1984 with an open pit and heap
leach gold operation. In 1988, underground mining operations commenced. FBDM
mine has been in continuous production since start up. In the late 1990s, Barrick
conducted limited work on some properties in the northern Rio Itapicurú Greenstone
Belt (RIGB), which hosts most of the known gold deposits.
2003 Yamana Gold Inc. acquired FBDM and carried out drilling of approximately 20,300
holes for approximately 905,000 m.
2015 Brio acquired FBDM and carried out drilling of approximately 4,100 holes for
approximately 220,000 m.
2018 Leagold acquired FBDM through its acquisition of Brio.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 6-1
 www.rpacan.com

HISTORICAL RESOURCE ESTIMATES

In 2003, immediately prior to the sale of the FBDM to Yamana Gold Inc. (Yamana), CVRD
estimated a Proven and Probable Mineral Reserve of 2,399,000 t grading 3.39 g/t Au for a
total of 261,500 oz of contained gold. In addition, CVRD estimated an Indicated Mineral
Resource for the G and F zones of 311,000 t at 6.12 g/t Au for an additional 61,200 oz
contained gold.

Watts, Griffis and McOuat (WGM) estimated an Indicated Mineral Resource for the EDEEP
zone of 462,000 t grading 4.48 g/t Au for an additional 66,600 oz of contained gold and
reported it in a Technical Report in 2003 (Watts, Griffis and McOuat, 2003). A 2.0 g/t Au cut-
off grade was applied.

Following the WGM 2003 report, Yamana internally updated the resource estimate on a
regular basis. Technical Reports were prepared for Yamana, the first by MCB Serviços e
Mineração Ltda in 2011 and a second by Coffey Consultoria e Serviços Ltda (Coffey) in
2014. Coffey reported an open pit Indicated Resource of 1.5 Mt grading 2.35 g/t Au for a
total of 102,600 oz of contained gold and an underground Indicated Resource of 6.8 Mt
grading 2.21 g/t Au for a total of 486,800 oz of contained gold as of July 2014. In addition,
Inferred Resources were estimated to be 0.5 Mt grading 1.36 g/t Au for a total of 23,300 oz
contained gold for the open pit and 3.1 Mt grading 2.20 g/t Au for a total of 219,400 oz of
contained gold for the underground.

In May 2016, RPA audited and prepared a NI 43-101 Technical Report on FBDM Mineral
Resources and Mineral Reserves estimated by Yamana as of December 31, 2015.
Exclusive of Mineral Reserves, total open pit and underground Measured and Indicated
Mineral Resources were estimated to be 1.9 Mt grading 3.72 g/t Au containing 229,000 oz of
gold. Inferred Mineral Resources were estimated to be 1.0 Mt grading 2.8 g/t Au containing
90,000 oz of gold. Total open pit and underground Proven and Probable Mineral Reserves
were estimated to be 6.5 Mt grading 1.88 g/t Au containing 392,000 of gold (RPA, 2016).

RPA notes that the above estimates are considered to be historical in nature and should not
be relied upon. A qualified person has not completed sufficient work to classify the historical
estimate as a current Mineral Resource or Mineral Reserve and Leagold is not treating the
historical estimates as current Mineral Resources or Mineral Reserves.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 6-2
 www.rpacan.com

The Mineral Resource and Mineral Reserve estimates described above are superseded by
the estimates documented in Section 14 of this Technical Report.

PAST PRODUCTION
FBDM began production in 1984 as an open pit mining operation with gold extraction by
means of conventional heap leaching. In 1988, underground production operations
commenced. The majority of the underground ore has been processed in a CIP plant which
was commissioned in 1988. The circuit was subsequently converted to pre-aeration and a
CIL circuit. A small amount of heap leach production continued until after 2003, when oxide
resources were mostly exhausted and heap leach operations were stopped sometime
between 2003 and 2007.

Figure 6-1 summarizes historic production for the heap leach, CIP, and subsequently CIL
operations. FBDM has produced approximately 3.2 million ounces of gold as of May 31,
2018.

TABLE 6-2 FBDM HISTORICAL PRODUCTION 1984 TO MAY 31, 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine
Production
Company Method Year
(000 oz)
1984 3
1985 15
Heap Leach 1986 15
1987 17
1988 21
1989 63
1990 77
1991 115
1992 138
CVRD 1993 148
1994 148
1995 151
CIP + Heap Leach
1996 175
1997 172
1998 170
1999 141
2000 154
2001 165
2002 152

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 6-3
 www.rpacan.com

Production
Company Method Year
(000 oz)
2003 79
2004 95
2005 74
2006 76
2007 88
CIP
2008 96
Yamana Converted to pre-
2009 76
aeration and CIL
2010 70
2011 55
2012 67
2013 70
2014 64
2015 61
2016 71
Brio CIL
2017 61
Jan-May 2018 27
Total 3,170

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 6-4
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7 GEOLOGICAL SETTING AND

MINERALIZATION
REGIONAL GEOLOGY
FBDM is located near the south end of the Rio Itapicurú Greenstone Belt (RIGB), a 100 km
long and 60 km wide north-south trending volcano-sedimentary belt situated within the São
Francisco Craton (Figure 7-1).

The RIGB is of early Proterozoic age and is generally divided into three lithologic domains:
1. A mafic volcanic domain of pillowed and massive tholeiitic basalts.

2. A felsic volcanic domain of calc-alkaline andesites, rhyodacites, and pyroclastics.

3. A sedimentary domain of fine-grained clastics and conglomerates of volcanic origin.

These rocks are intruded by Proterozoic granitoids, and are locally metamorphosed up to
greenschist or amphibolite facies. The belt is underlain by Archaean basement gneisses and
migmatites.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 7-1
 www.rpacan.com
450,000 460,000 470,000 480,000 490,000 500,000 510,000

Figure 7-1

8,810,000
8,810,000

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
Regional Geology

8,800,000
8,800,000

The Itapicuru River Greenstone Belt

8,790,000
8,790,000

SANTALUZ PROJECT
N

8,780,000
8,780,000

8,770,000
8,770,000

8,760,000
8,760,000

8,750,000
8,750,000

Legend:
Lithologic Domains
TQ Cover
Mesozoic Basin
8,740,000
8,740,000

Granitoids
Subvolcanic Rocks
Chemical Sequence
Sedimentary Sequence FAZENDA BRASILEIRO MINE
Felsic Volcanic Sequence
8,730,000
8,730,000

Weber Belt
Mafic Sequence
Archean Complex
0 2 4 6 8 10

Kilometres
SIRGAS 2000 UTM Zone 24S

450,000 460,000 470,000 480,000 490,000 500,000 510,000

November 2018 Source: RPA, 2016.

7-2
 www.rpacan.com

LOCAL GEOLOGY
Outcrop is sparse (±10%) both regionally and locally throughout the FBDM area. Most of the
detailed geological information is obtained from surface trenching, drilling, and data collected
from both the open pit and underground operations at FBDM.

The Weber Belt is a 10 km long arcuate east-west trending, south dipping shear zone. It is
abruptly folded towards the south near its western extremity. The Weber Belt is host to the
most significant gold mineralization in the RIGB, including FBDM. The Weber Belt also hosts
the Barrocas Oeste, Papagaio, Lagoa do Gato (LGT), Canto 1 Sul and Canto 2 deposits, all
of which are either in small-scale production or have been in production from small tonnage
open pits.

The Weber Belt has been divided into four distinct overturned sequences from south to north:

• The Riacho do Incó unit, composed of carbonate-chlorite schist (CCX) with minor
intercalations of carbonaceous schist. The protolith of this rock is assumed to be
basaltic lava.

• The Fazenda Brasileiro unit, which is dominated by felsic and mafic schists and
contains the most important gold concentrations. This unit is subdivided into three
units, namely:
o The graphitic schist (GRX), which forms the hanging wall of the main FBDM
ore zone. Due to its lateral persistence and distinctive character, it is
considered a marker horizon.
o The magnetic quartz-chlorite schist (CLX), which consists of two major layers
of 20 m and 3 m average thickness. Part of this unit is situated at the contact
with the GRX and hosts the main FBDM ore shoot.
o The Intermediate Sequence, which is composed of sericite-chlorite-carbonate
schist (CAX) and plagioclase-actinolite schist (PAX). The CAX rocks
represent less mafic surrounding basalts. PAX is derived from weakly altered
gabbroic bodies, which show ophitic to subophitic textures and occur
disseminated within the CAX and sometimes within the CLX units.

• The Canto unit, consisting of fine-grained carbonaceous sediments (pelites and

rhythmically banded pelites and psammites), volcanic layers, and an agglomeratic
pyroclastic sequence. The pyroclastic sequence is the main host rock for the Canto
mineralization.

• The Abóbora unit, located in the northernmost part of the Weber Belt, comprises a
thick sequence of basalt flows with local, narrow sedimentary intercalations.

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Technical Report NI 43-101 – November 26, 2018 Page 7-3
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Deformation along the main east-west shear zone has destroyed most of the original
features in the rocks in the FBDM area. Figures 7-2 and 7-3 show the Weber Belt surface
geology and a schematic section of the FBDM geology, respectively.

The structural history of the area is complex, with at least three phases of ductile and ductile-
brittle deformation followed by late brittle faulting, which laterally offset the FBDM ore shoots
by up to 100 m. The first phase (D1), which consisted of an intense ductile shearing with no
major folds observed, produced an undulating lineation extending east-west. The second
event (D2) produced northward-verging asymmetric folds (F2) on all scales, which folded the
existing shear fabrics and produced ductile-brittle shear zones. These are oriented
approximately east-west, parallel to the axial planes of the folds. This event appears to be
responsible for the present southerly dip of the entire local succession. Late localized
crenulations to open metre-scale folds have refolded the first set of folds but are not
important regionally. The main mineralization, in the form of sulphide bearing quartz veining,
is associated with the second deformation event.

In 2013, the FBDM database had 241 different rock types subdivided into 21 major rock
codes. A program was initiated that simplified the lithology by combining 18 of the major
rock types in the stratigraphic column for the RIGB by the geomechanics, mineralization, and
presence of carbonaceous material. Further refinement simplified the 18 rock types into nine
distinct lithotypes (Figure 7-4).

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 7-4
 484000 486000 488000 490000 492000 494000 496000

8736000
8736000

8734000
8734000
7-5

8732000
8732000

492000 494000 496000

Legend:
Figure 7-2
Metasediments Metadiorite

Leagold Mining Corporation

www.rpacan.com
Tuffaceous Metasediments Pyroclastic Agglomerate
0 1 2
Granite Quartz Porphyry
Kilometres
Fazenda Brasileiro Mine
Metabasalts Andesite
Bahia State, Brazil
Metagabbros Quartz-chlorite schist Weber Belt Surface Geology
November 2018 Source: WGM, 2003.
 CANTO
S FAZENDA OPEN PIT N
33100N 33300N 33500N 33700N BRASILEIRO 34100N
OPEN PIT
FB
FB
FB FB

Legend:
7-6

MGB Metagabbro
CAX Quartz chlorite sericite carbonate schist
CLX Quartz carbonate chlorite schist)
GRX Graphitic carbonate chlorite sericite schist
CCX Carbonate chlorite schist
Canto sequence (pelites and Psammitites)
“Ore” shoots
Granite
Vertical shear

Figure 7-3

Leagold Mining Corporation

www.rpacan.com
0 100 200
Metres Fazenda Brasileiro Mine
Bahia State, Brazil
Schematic Mine Cross Section

November 2018 Source: WGM, 2003.

Technical Report NI 43-101 – November 26, 2018
Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

FIGURE 7-4 FBDM SIMPLIFIED AND REFINED STRATIGRAPHY COLUMN (2013)

Type Code Description Geotechnical Priority? Priority

ATR Hilling (Aterro) Significant 18
SOIL
SOLO Soil / Saprolite Significant 19
VF Volcanic Felsic (Intrusive) 10
ANF Anfibolite 11
Riacho do Inco Sequence
DIO Quartz Dirotie (Papagaio?) 9
CCX MetaBasalt / Basalt / MetaMafic / Basalt Milonitic Significant 8
GRX Graphite Schist Major Signficant 5
CLX Clorite Schist 1
Fazenda Brasileiro Sequence (Intrusiva Posterior)
CAX Carbonate Actinolite Schist Significant 7
MGB MetaGabbro / Plagioclase Actinolite Schist 17
BIX Biotite Schist Meta Sedimetary Domain 16
GRX Graphite Schist Carbonaceous Domain Major Signficant 6
MCH Chert / MetaChert 15
MDA MetaDacite / Quartz Porfire 14
Canto Sequence
MPC Metapelite Carbonaceous Intermediate to Felsics 3
AGV Volcanic Aglomerate Lavas Domain 2
MPV Grauvaca - MetaTuffo Significant 4
MAD Andiste / MetaAndisite 13
Teofilandia Tonalite TON Tonalite / Micortonalite 12
Code Legend
Cabonaceous
Main Ore (Obs: In Canto Sequnce the MPV are minerlized with Gold and the MPC coud be minralized or not)

Source: Leagold 2018

SOIL
Riacho do Inco Sequence Waste exept the DIO the need to take care
FB GRX
Fazenda Brazileiro Sequence CLX

www.rpacan.com
CAX+MGB+BIX (BIX are not FB Sequence but would be englobated)
CANTO GRX
Canto Sequence AGV + MPV (Would be observed Grade to be modeled)
MCH + MDA + MPC +MAD - Canto Waste
Teofilandia Tonalite * Tonalite / Micortonalite
* Tonalite is not modelled because of limited number of intercepts
Page 7-7
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MINERALIZATION
Gold mineralization is related to multi-phase quartz veining events. The gold occurs in at
least three textural settings at FBDM: as particles attached to sulphide grains, as particles
within fractures in sulphide grains, and as particles within fractures in quartz/albite gangue.
Gold grains typically contain less than 5% silver.

The bulk of the mineralization is hosted by quartz-albite-sulphide veins within the chlorite
schist (CLX1) unit. Individual veins vary from one centimetre to four centimetres thick, have
irregular margins, and are typically oriented sub-parallel to the predominant east-west trend
of the felsic and mafic schists. The veins occur in multiple vein sets which vary in true width
from 1.5 m to 40 m and in horizontal mining width from a minimum 3 m to 40 m. The veins
are generally arcuate in an east-west trend and south dipping at 40° to 70°, with a shallow to
moderate east plunge. The plunge, however, is quite variable, with some zones plunging
westerly.

Mineralization is also found stratigraphically below the CLX1 unit in the CLX2 and Canto
horizons (Figure 7-5). Economic mineralization occurs in horizontal to sub-horizontal shoots,
the locations of which are influenced by a combination of folding and shearing. Shoots range
from tens of metres to hundreds of metres in length and tens of metres in height.

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 Looking West
7-9

0 100 200 300 400

Figure 7-5
Metres
Leagold Mining Corporation

www.rpacan.com
Legend:
Riacho do Incó Sequence CLX 2 Fazenda Brasileiro Mine
Fazenda Brasileiro Sequence CLX 1 Bahia State, Brazil
Canto Sequence AGV FBDM Cross Section 92130 E
Drill Holes Mineralized Orebody

November 2018 Source: Leagold, 2018.

 www.rpacan.com

8 DEPOSIT TYPES
The Fazenda Brasileiro gold deposit is an epigenetic, structurally controlled and
hydrothermally altered Precambrian quartz vein hosted lode gold deposit that has been
subjected to greenschist facies metamorphism. There is some suggestion of a partial
syngenetic origin for the gold because of the anomalous gold content (0.05 g/t Au to 0.10 g/t
Au) throughout visibly unmineralized CLX.

Hydrothermal alteration and the style of veining are typical of well-studied greenschist facies
deposits such as Sigma and Kerr-Addison in the Canadian Archaean and the Hunt Mine in
Western Australia.

RPA notes that the Fazenda Brasileiro deposit area is well known and well studied, with
multiple scientific investigations completed over the past 40 years. The current models
developed by FBDM geologists reflect the large amount of available data in the area, and
provide both mining operations and exploration programs with a substantial database to
guide further work.

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9 EXPLORATION
Leagold has not yet carried out any surface exploration at FBDM. Historical exploration is
described in Section 6 History. More recent exploration at FBDM has mostly been drilling to
increase and/or replace reserves depleted during mining. Much of this exploration drilling
has been carried out from underground drifts with the objective of identifying new resources
and converting resources to reserves. Drilling programs carried out at FBDM are described
in Section 10.

EXPLORATION POTENTIAL
Exploration potential exists laterally along strike to the north and south and at depth below
the existing FBDM operations. The area has seen 40 years of extensive geologic exploration
along the mineral trend which has successfully identified additional underground and open pit
resources that are in various stages of mine development. This exploration success is
anticipated to continue into the future, but will include some deeper targets.

The majority of Leagold’s concessions are at an early exploration stage or have seen no
exploration activity other than regional mapping, regional geochemical surveys, and airborne
surveys completed by the previous owners. RPA is of the opinion that these concessions
remain prospective for gold.

Extensive drilling has been completed on the portion of the concessions that covers the
Weber Belt and includes the area comprising FBDM (Section 10).

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10 DRILLING
Diamond drilling at FBDM has been conducted in phases by several companies since 1979
and totals 52,623 drill holes totalling over 2.4 million metres. The drilling at FBDM is
summarized in Table 10-1 and hole locations are shown in Figure 10-1.

TABLE 10-1 DRILLING COMPLETED AS OF MAY 31, 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

Number Metres
Mine Ownership
of Drill Holes Drilled
CVRD 1979-2003 28,224 1,287,739
Yamana 2003-2014 20,295 905,205
Brio 2015-2018 4,104 220,106
TOTAL 52,623 2,413,050

Prior to 2003, CVRD conducted surface diamond drilling in the initial search for new
mineralization. This was followed by underground fan drilling on a 100 m by 50 m grid using
B-sized equipment to establish Indicated Mineral Resources. A-sized core fan drilling on a
25 m by 10 m grid pattern was then used to upgrade the classification of Mineral Resources
from Indicated to Measured. Since 2003, both Yamana and Brio maintained the same
methodology of drilling as CVRD.

In October 2018, Leagold completed a 38-hole underground drill program totalling 5,964 m
with the objective of identifying new resources and upgrading Inferred Mineral Resources to
Indicated. Preliminary assessment of the drilling results shows that there is an opportunity to
increase both reserves and resources, however, further analysis is required. The results of
the Leagold October 2018 drilling have not been included in the current Mineral Resource
estimate.

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 N
10-2

Drill Hole Trace

Figure 10-1

Leagold Mining Corporation

www.rpacan.com
0 1000 2000 3000 4000 Fazenda Brasileiro Mine
Metres Bahia State, Brazil
Drilling Plan View

November 2018 Source: RPA, 2018.

 www.rpacan.com

SAMPLING METHOD AND APPROACH

Surface diamond drill holes are set up in the field by site geologists and technicians using a
global positioning system (GPS). If the site is appropriate for construction of a drilling pad, a
more accurate GPS or total station instrument is used to obtain the final collar coordinates.
Final positions are collected in UTM coordinates, WGS84 datum - 24 South Zone. In the
underground mine, collars are marked up prior to drilling by FBDM surveyors who then return
when the hole is complete to determine accurate collar coordinates.

Historically, all drill holes were surveyed down hole at 3.0 m intervals with either a Reflex
Maxibor or Flexibor instrument. In recent years, Yamana ceased surveying holes that were
shorter than 150 m due to the minimal deviation recorded in earlier drilling programs. In
2015, longer drill holes were surveyed using a nonmagnetic multishot instrument
manufactured by Devico.

Drill core is placed in wooden core boxes with a nominal capacity of four metres for NQ, 4.6
m for LTK sized drill core, and three metres for HQ sized core. The drill hole number, box
number, and downhole depths are stamped onto an aluminum tag and affixed to the edge of
the box. Wooden downhole core depth markers are placed in the core box by the driller and
affixed with an aluminum tag stamped with the depth, the length of the interval, and the
length of the recovered sample.

Upon receipt of the drill hole core at the logging shed, the entire length of the drill hole is
photographed and marked for lithological contacts. Samples are marked down the entire
length of the hole at 0.5 m intervals in mineralization and 1.0 m intervals in waste, except at
lithological contacts where the sample is selected to respect lithological boundaries. Paper
sample number tags are plasticized and stapled to the core box next to the corresponding
sample, with a red square marked on the box with a pen indicating the start and end of the
sample interval.

Prior to sampling, the geologist logs the core in detail for lithology, structure, mineralization,
and alteration. Codes are assigned for the oxidation state, lithology, and alteration (including
pyrite, pyrrhotite, arsenopyrite, chalcopyrite, silicification, biotitization, sericitization,
amphibolitization, and albitization). Angles of structures such as foliation, faults, or quartz
veins are recorded, although drill holes are not oriented. In addition, any log observation

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relevant is also described in the “remarks”, especially the details of mineralized zones.
Sample intervals and sample numbers are also recorded on the log.

Core sample recovery is not recorded by the geologist, although a record of the drill hole
recovery is made manually by the driller on a run by run basis. Recovery in the mineralized
zones is generally good, on average better than 90%. Core recovery values are used to
confirm the reliability of the sample and to determine how to assign grades to any missing
sample portions.

The drill core is then sawn in half with an electric diamond core saw. Half core samples are
selected by a site geological technician, and placed in a numbered plastic bag along with a
paper sample tag. The bags are closed and secured with a tie string. Sample weight is
approximately 1.5 kg for mineralization and 3.0 kg for waste.

In RPA’s opinion, the drilling and logging methods are acceptable for the purposes of a
Mineral Resource estimate.

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11 SAMPLE PREPARATION, ANALYSES AND

SECURITY
SAMPLE PREPARATION AND ANALYSES
RPA visited the FBDM laboratories and core logging facilities during the site visit and found
them to be clean, well maintained, and serviceable for the functions designed. The FBDM
laboratory incorporates quality assurance and quality control (QA/QC) procedures, including
the insertion of reference material, blank and duplicate samples, which are continually
monitored to ensure reliable results. The laboratory is accredited with ISO
9001:2008/ISO17025:2005 for gold FA/AAS chemical and geochemical analyzes, certified by
ABS Quality Evaluation Inc., Texas (USA) that is accredited by INMETRO (Brazil), RVA
(Netherlands) and ANAB (USA). SGS Geosol uses the LIMS/CCLAS System for
management of preparation and chemical analysis of the samples. An external professional
prepares monthly and annual reports of laboratory performance.

Sample preparation and assaying procedures are as follows:

• Each sample is dried at 100°C.

• All core samples are coarse crushed to 90% passing 2.0 mm.

• This material is passed through a rotary splitter.

• A 500 g aliquot is taken and pulverized to 95% passing 150 mesh. The crushing and
grinding equipment is cleaned with compressed air after each sample and barren
silica sand is passed through the equipment prior to running batches of samples.

• Gold determinations are carried out on 50 g (±0.05 g) samples by fire assay with an
Atomic Absorption (AA) finish.

• Granulometric tests are performed three times per shift on the crushing and
pulverizing processes. Preparation duplicates are inserted every 20 to 30 samples.

RPA is of the opinion that the sample preparation and analytical methods utilized at FBDM
are appropriate. Sufficient quality control data exists to allow thorough review of the
analytical performance of the site assay laboratory.

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QUALITY ASSURANCE/QUALITY CONTROL

The FBDM laboratory and protocols were established in 1984 by CVRD and since then both
Yamana and Brio have maintained the laboratory and incorporated all protocols into their
operation of the mine. The QA/QC program used at FBDM included the insertion of Certified
Reference Material (CRM), blanks, and duplicates into the sample stream at the frequency
summarized in Table 11-1. RPA reviewed the protocols set in place in the event that any of
the blanks, CRMs, duplicates, or check pulps return a failed assay. On a monthly basis,
FBDM reviews the results and requests all failed samples to be rerun by the laboratories. In
RPA’s opinion, the protocols set in place by FBDM are of industry standard and are sufficient
to support a resource estimate.

TABLE 11-1 LABORATORY QA/QC PROTOCOLS

Leagold Mining Corporation – Fazenda Brasileiro Mine

QA/QC Type Insertion Frequency Acceptance Criteria

Blank 1 in 30 Assay ≤ 0.04 g/t Au

Preparation Duplicate 1 in 30 Relative Difference ≤ ±20%
Pulp Replicate 1 in 20 Relative Difference ≤ ±10%
95% of samples ≤ ±2 Std. Dev
CRM 1 in 20
≤ 1% of samples ≥ ±3 Std. Dev
Relative Difference ≤ ±10%
100 per month sent to 2 external Std. Dev ≤ 15%
Check Assay
laboratories Difference between means ≤ 5%
R2 ≥ 0.9

RPA considers the QA/QC protocols in place at FBDM to be acceptable and in line with
standard industry practice.

CERTIFIED REFERENCE MATERIAL

CRM samples are materials of known gold content used to check and quantify the analytical
accuracy of laboratories. There were seven types of gold CRMs used by FBDM, all of which
were purchased from Geostats Pty Ltd (Geostats), O'Connor, Western Australia, Australia.
Each has a known, certified gold content as determined by extensive round-robin assaying at
accredited assay laboratories. The variation from the CRM’s mean value in standard
deviations (SD) defines the QA/QC variance and is used to determine acceptability of the
CRM sample assay. Results within +/- 2 standard deviations (±2SD) are considered
acceptable. The certified values, acceptable ranges for analyses, and other statistics for the

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CRMs are presented in Table 11-2. Approximately 150 g of sample material is submitted per
QA/QC sample.

TABLE 11-2 CERTIFIED REFERENCE MATERIALS

Leagold Mining Corporation – Riacho dos Machados Gold Mine

Certified Au
Standard Acceptable Range
CRM Content Provider
Deviation (ppm) (g/t) (±2SD)
(ppm)
G311-3 0.27 0.02 0.23 0.31 1*
G310-4 0.43 0.03 0.37 0.49 1*
G398-2 0.50 0.04 0.42 0.58 1*
G912-8 0.53 0.02 0.49 0.57 1*
G909-6 0.57 0.03 0.51 0.63 1*
G915-6 0.67 0.04 0.59 0.75 1*
G910-10 0.97 0.04 0.89 1.05 1*
G315-2 0.98 0.04 0.9 1.06 1*
G313-1 1.00 0.05 0.9 1.1 1*
G909-1 1.02 0.06 0.9 1.14 1*
G312-5 1.60 0.08 1.44 1.76 1*
G910-6 3.09 0.13 2.83 3.35 1*
G310-9 3.29 0.14 3.01 3.57 1*
G312-4 5.30 0.22 4.86 5.74 2**
Quartz 403/002P <0.025***

* GEOSTATS PTY LTD, O'Connor, WA, Australia

** QUÍMICA BRASILEIRA LTDA, Belo Horizonte, Brazil
*** 5x lower detection limit used as pass/fail

There is a good correlation between the CRMs used and the average economic metal
concentration in the drill samples. Very small biases, both positive and negative, were
observed for the CRM submitted to FBDM from 2016 to May 2018. On average, less than
1% of samples were outside the precision limits, set at 20% of the expected value of each
CRM. The precision and performance over time of the laboratory is displayed graphically in
Table 11-3 and Figure 11-1.

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TABLE 11-3 SUMMARY OF 2016-2018 CRM RESULTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

≥2SD // <3SD ≥3SD

Expected FBDM % Inside % Outside
Values (Au Laboratory Diff No. Precision Precision
CRM ppm) (Au ppm) (ppm) Bias Analyses Number Limits Number Limits
G912-5 0.380 0.374 -0.006 -1.554% 440 5 1.14% 3 0.68%
G310-4 0.430 0.417 -0.013 -2.946% 6 0 0.00% 0 0.00%
G998-6 0.800 0.801 0.001 0.076% 422 0 0.00% 3 0.71%
G911-10 1.300 1.304 0.004 0.308% 3 0 0.00% 0 0.00%
G997-3 1.410 1.364 -0.046 -3.245% 4 0 0.00% 0 0.00%
G997-6 1.680 1.676 -0.004 -0.213% 430 0 0.00% 2 0.47%
G911-4 2.430 2.413 -0.017 -0.716% 385 1 0.26% 5 1.30%
G900-5 3.210 3.203 -0.007 -0.226% 8 0 0.00% 0 0.00%
G398-10 4.070 4.005 -0.065 -1.597% 3 0 0.00% 0 0.00%
G312-9 5.840 5.846 0.006 0.105% 9 0 0.00% 0 0.00%
G314-3 6.700 6.687 -0.013 -0.187% 462 3 0.65% 5 1.08%
G307-7 7.870 7.868 -0.002 -0.021% 3 0 0.00% 0 0.00%
Total -0.525% 2175 9 0.41% 18 0.83%

Source: Leagold 2018

FIGURE 11-1 CRM RESULTS OVER TIME FOR THE 2016-2018 DIAMOND
CORE DRILL PROGRAM (FBDM)

Notes: “zScore” on the vertical axis is a normalization of the SD (1SD = 1 zScore unit), allowing results for
different standards to be plotted on the same chart.

Source: Leagold (2018)

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RPA is of the opinion that the results of the CRM samples from 2016 to 2018 support the use
of samples assayed at the FBDM laboratory during this period in Mineral Resource
estimation.

BLANKS
From 2016 to 2018, blanks were sourced from a combination of barren quartz and historical
core visually assessed as being barren of mineralization. The detection limit was 0.04 g/t Au
at the FBDM laboratory, with a failure defined as greater than 0.08 g/t Au. In processing and
analyzing blanks for gold, the laboratory performed very well. Of the 3,389 blanks analyzed,
only 12 samples reported results above the lower detection limit for gold, and the highest
gold value reported was 6.17 g/t Au. Details of the performance of blanks are provided in
Figure 11-2.

FIGURE 11-2 COARSE BLANKS SUBMITTED WITH CORE SAMPLES (FBDM)

Source: Leagold (2018)

DUPLICATE SAMPLES
Field duplicates were prepared for insertion into the sample stream to monitor sample
homogeneity and laboratory precision. Field duplicates were taken by preparing two quarter-
split samples from one sample interval and sending to the FBDM laboratory for analysis.
Preparation duplicates were prepared by producing two pulps from the drill core sample after

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it has been crushed to less than 2 mm. Comparing the results from the preparation duplicate
pair gives an indication of the efficacy of the sample preparation procedure for producing a
representative sample for analysis. The duplicate samples are compared by computing the
Absolute Relative Difference between the two analyses from each pair and by preparing
scatter plots and histograms. Absolute Relative Difference is the absolute value of the
difference in the two analyses, divided by the average of the two analyses, and expressed as
a percent.

Results of preparation duplicates submitted from January 2016 to May 2018 were compiled
by FBDM site personal and reviewed by RPA. A total of 3,959 preparation duplicates were
submitted during this time and plotted in scatter plots and Thompson Howarth plots. Low to
moderate precision was observed between preparation duplicates below approximately 0.2
g/t Au. Over 57% of the pairs show more than 10% variation in returned gold grade. Most
duplicate pairs submitted were low in gold (1.0 ppm), and therefore not a good indicator of
sample variability in the grade range of interest at FBDM. RPA notes that, in general, there
is better agreement between duplicate pairs when the variation in gold grades is raised to
30%. RPA is of the opinion that this result is consistent with the natural variability often seen
in orogenic gold deposits. The results are provided graphically in Table 11-4 and Figures 11-
3 and 11-4.

TABLE 11-4 FIELD DUPLICATES (FBDM)

Leagold Mining Corporation – Fazenda Brasileiro Mine

Average Results (Au ppm) Relative Max. Max.

Total Total % Relative Standard Orig Au Dup Au
Samples Original Duplicates Failures Failures Variance Deviation (%) (ppm) (ppm)
3959 0.471 0.472 2275 57.46% 0.216 0.464 97.07 97.12

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FIGURE 11-3 DRILL CORE FIELD 2016-2018 DUPLICATE AU ASSAYS (FBDM)

Source: Leagold (2018)

FIGURE 11-4 THOMPSON-HOWARTH ESTIMATE OF PRECISION

Source: Leagold (2018)

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CHECK ASSAYS
From January to May 2018, 662 pulp samples were submitted to SGS laboratories and
FBDM to measure the accuracy of results from FBDM laboratory (Table 11-5). RPA
reviewed the results and found high degrees of correlation and relative bias within
acceptance limits (Figures 11-5 and 11-6).

TABLE 11-5 CHECK ASSAYS

Leagold Mining Corporation – Fazenda Brasileiro Mine

Average Results (Au ppm) Relative Max. Max.

Total Total % Relative Standard Orig Dup
Au < 0.50 % < 0.50
Samples Original Duplicates Failures Failures Variance Deviation Au Au
(%) (ppm) (ppm)
662 1.8638 2.0648 402 60.73% 0.2318 48.14% 32.32 35.51 347 52.42

In RPA’s opinion, the QA/QC program as designed and implemented by Yamana, and
maintained by Brio and now Leagold, is adequate and the assay results within the database
are suitable for use for Mineral Resource estimation.

FIGURE 11-5 RELATIVE DIFFERENCE OF CHECK ASSAYS ANALYZED IN

2018

Source: Leagold 2018

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Source: Leagold 2018

FIGURE 11-6 QQ PLOT OF CHECK ASSAYS ANALYZED IN 2018

Source: Leagold 2018

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SAMPLE SECURITY
The mine site is surrounded by a security fence, and there is controlled access at a gate
house manned by full time security personnel.

At the drill site, samples were under the control of FBDM employees and employees of the
drilling company. Sample handling procedures at the drill rig were as described in Section
10 Drilling in this report. Samples were delivered daily by drilling company personnel to the
sample processing facility at the mine site and turned over to FBDM personnel. Only
employees of FBDM and of the drilling contractor were authorized to be at the drill sites and
in the sample processing facility. Core is normally collected from the drill rig and taken
directly to the core yard for sampling. Samples are then sent directly to the laboratory at the
mine site, following industry standard sample security procedures. All analytical pulps and
archival split core are stored within the secure mine compound.

Samples are currently collected by a trained sampler under the supervision of a technician or
a geologist, with all QA/QC samples inserted within a sequential numbered sequence and
recorded.

RPA finds that the sampling methods, chain of custody procedures, and analytical
techniques are appropriate and meet acceptable industry standards. In RPA’s opinion, the
sample preparation, analysis, and security procedures at FBDM are adequate for use in the
estimation of Mineral Resources.

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12 DATA VERIFICATION
RPA reviewed the methods and practices used by Leagold to generate the FBDM resource
database (including drilling, sampling, analysis, and data entry). The verification included a
review of the QA/QC methods and results, standard database validation tests, and a site
visit. The review of the QA/QC program and results is presented in Section 11 of this report.

RPA checked a select number of drill holes to verify the described methods and application
of practices and performed the following digital queries:
• Reviewed the drill hole traces in 3D, level plan, and vertical sections and found no
unreasonable geometries.

• Queried the database for missing or repeated data, unique header, duplicate holes,
and gaps or overlapping intervals. No issues were identified.

• Ensured that the total depth recorded in each drill hole database table was
consistent. No issues were identified.

• Visited the core handling facility.

• Reviewed core logs for several drill holes during the site visit.

Of the 52,623 drill holes in the database, 33,379 drill holes totalling over 1.9 million metres
were used for the 2018 estimate. Omission of the remaining 19,244 drill holes from the
database is the result of an internal review and data verification process conducted by FBDM
geologists during 2017, which determined the drill holes should be excluded due to:
• Incorrect or missing collar coordinates
• Incorrect or missing downhole survey data
• Incorrect or missing assay data (core no longer available for retesting (assay))

RPA found no issues with the validation process and found the work to be appropriate for the
geology and style of mineralization. In RPA’s opinion, the practices and procedures used to
generate the FBDM database and the data contained therein are acceptable to support
Mineral Resource and Mineral Reserve estimation.

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13 MINERAL PROCESSING AND

METALLURGICAL TESTING
MINERALOGY
Gold mineralization is related to multi-phase quartz veining events. The gold occurs in at
least three textural settings at FBDM: as particles attached to sulphide grains; as particles
within fractures in sulphide grains; and as particles within fractures in quartz/albite gangue.
Gold grains typically contain less than 5% silver.

The bulk of the mineralization is hosted by quartz-albite-sulphide veins within the chlorite
schist (CLX) unit. Veins, often multiple, vary from 10 mm to 40 mm thick, have irregular
margins and are typically oriented sub-parallel to the east-west trend of the mine package.
The multiple vein systems vary in true width from 1.5 m to 40 m and horizontal mining widths
vary from a minimum 3 m to 40 m.

Graphitic schist (GRX) forms the hanging wall of the main FBDM ore zone. Due to its lateral
persistence and distinctive character, it is considered a marker horizon.

The Canto unit consists of fine grained carbonaceous sediments (pelites and rhythmically
banded pelites and psammites), volcanic layers, and an agglomerate pyroclastic sequence.
The pyroclastic sequence is the main host rock for the Canto mineralization.

METALLURGICAL TESTING
Metallurgical test work was not available for this report, nor is it applicable because FBDM is
a well-established mine and mill operation. Metallurgical information used to evaluate the
operation consists of current and historical process operating data. Several years of detailed
key process indicators have been supplied for review.

RPA recommends that testing programs be carried out on any new ore types encountered
that show variation in ore hardness and sulphide content and especially ores containing
graphitic carbon.

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FBDM is now performing regular testing of plant feed samples and ore samples from the
current areas scheduled for mining, to determine the preg-robbing characteristics of the
naturally occurring carbon in the ore. The focus of the testing is to determine the most
effective way to apply the carbon-in-leach (CIL) process, and to investigate, if necessary, the
use of kerosene as a natural carbon blinding agent to reduce losses of gold to naturally
occurring carbon.

FBDM is also investigating the use of oxygen in the pre-oxidation and leach circuits instead
of air to improve sulphide oxidation and metal recovery.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 13-2
 www.rpacan.com

14 MINERAL RESOURCE ESTIMATE

FBDM is a mine with more than 30 years of historic exploration and production conducted by
Leagold’s predecessors and, as such, several surface areas and underground workings that
had been previously mined had no available survey data or had not been converted to digital
format to allow for reconciliation of previously depleted resources. To ensure that all
reported Mineral Resources and Mineral Reserves are potentially mineable, Leagold’s
predecessor initiated a program in 2015 to survey the historical workings and enter the data
into a digital database. This work has continued through 2016, 2017, and is ongoing in 2018.

Based on internal production records and discussions with the FBDM mine team, FBDM
geologists noticed variable differences in grade and recovery percentages across the zone
boundaries compared to their short-term mining block model. As a result, FBDM initiated a
program in 2017 to reinterpret the mineralized zones based on a better understanding of the
geology, grade continuity, and structural controls in the area. This work is ongoing in 2018.
The Mineral Resource estimate reported in this document is based on this reinterpretation.
RPA subsequently audited the model and found that it was reasonably prepared and
provided a good representation of the geologic data.

RPA has summarized the Mineral Resources in Table 14-1, based on the end of May 2018
topographic surface. The Mineral Resources in Table 14-1 are inclusive of the Mineral
Reserves. This Mineral Resource estimate conforms to Canadian Institute of Mining,
Metallurgy and Petroleum (CIM) Definition Standards for Mineral Resources and Mineral
Reserves dated May 10, 2014 (CIM (2014) definitions).

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-1
 www.rpacan.com

TABLE 14-1 FBDM MINERAL RESOURCES AS OF MAY 31, 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine
Tonnage Grade Contained Metal
Category
(000) (g/t Au) (000 oz Au)
Measured
Underground 3,700 2.35 280
Open Pit 1,170 1.57 59
Total Measured 4,870 2.17 339

Indicated
Underground 2,370 2.66 203
Open Pit 300 1.63 16
Total Indicated 2,670 2.55 219

Measured + Indicated
Underground 6,070 2.47 483
Open Pit 1,470 1.59 75
Total Measured + Indicated 7,540 2.30 558

Inferred – Underground 5,260 2.58 436

Inferred – Open Pit 780 1.61 40
Total Inferred 6,040 2.45 476

Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are reported at a cut-off grade of 0.40 g/t Au for open pit and 1.0 g/t Au for
underground.
3. Mineral Resources are inclusive of Mineral Reserves.
4. Mineral Resources are estimated using a gold price of US$1,500 per ounce and a US$/R$ exchange
rate of R$3.70 = US$1.00.
5. A minimum mining width of 1.0 m was used for underground Mineral Resources.
6. Bulk density ranges from 2.72 t/m3 to 3.00 t/m3.
7. Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
8. Numbers may not add due to rounding.

RPA is not aware of any environmental, permitting, legal, title, taxation, socio-economic,
marketing, political, or other relevant issues that would materially affect the Mineral Resource
estimate.

RESOURCE DATABASE
The resource model was prepared by Leagold as of May 2018 and all of the relevant files
were transferred to RPA for an independent review and audit. RPA was supplied with the
drill hole database for FBDM by Leagold in comma delimited and Datamine formats. The
database included collar, downhole survey, assay, alteration, density, lithology, and
geotechnical tables and is complete as of February 25, 2018 and contains 33,379 drill holes

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-2
 www.rpacan.com

for an aggregate length of approximately 1.9 million metres. The drill hole database used for
the FBDM resource modelling included historic drilling by Leagold predecessors. The drilling
was predominantly core drilling, with a limited number of reverse circulation holes.

Additionally, RPA was supplied with FBDM’s lithology and grade envelopes developed in
Leapfrog, and the block model for the geology and grades in comma delimited format,
completed during February 2018. Table 14-2 provides a summary of the drill hole database.

TABLE 14-2 FBDM RESOURCE DATABASE SUMMARY

Leagold Mining Corporation – Fazenda Brasileiro Mine

Table Number of Records

Collar 33,379
Survey 248,268
Assay 1,173,466
Composite (1 M) 123,717

RPA audited drill hole records to ensure that the grade, thickness, elevation, and mineralized
zone used in preparing the current Mineral Resource estimate correspond to mineralization.
RPA’s data verification procedures included the following:

• Checked for duplicate drill hole traces, twinned holes, etc.

• Checked collar locations for zero/extreme values.

• Checked that drill hole collar coordinates and drill hole deviations were entered in the
database, displayed in plan views and sections, and visually compared to relative
locations of the holes.

• Checked for gaps and overlapping assay intervals.

• Checked for non-numeric data in assay tables.

• Checked for maximum depth inconsistencies.

The resource database is considered by RPA to be sufficiently reliable for grade modelling
and Mineral Resource estimation.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-3
 www.rpacan.com

GEOLOGICAL INTERPRETATION
In the 2016 Technical Report (RPA 2016), there were six separate mineralized
structures/domains based on geology, structural behaviour, and grade continuity (Table 14-
3) at FBDM.

TABLE 14-3 FBDM DOMAIN ASSIGNMENTS (2016)

Leagold Mining Corporation – Fazenda Brasileiro Mine

Domain Zone
1 C Target
2 E Target
3 F Target
4 LGT Target
5 Canto Target
6 G Target

Previous designated zones (C Target, E Target, and Canto Target) were based on mine
region designations and not specifically to the controlling structures and lithology in the area.
Based on internal production records and discussions with the FBDM mine team, FBDM
geologists noticed variable differences in grade and recovery percentages across the zone
boundaries compared to their short-term mining block model. As a result, a program was
initiated in 2017 to reinterpret the mineralized zones based on a better understanding of the
geology, grade continuity, and structural controls in the area. FBDM resource wireframes
were modelled based on grade information, geological observations, and short-term
modelling that considered the refined stratigraphy of the area, historical design shape,
several years of mapping, and the continuity of grade along strike and between mine levels.

Mineralized domains were interpreted using Leapfrog software with a cut-off grade of 1.0 g/t
Au for underground zones and 0.4 g/t Au for open pit zones. As a general rule, Leagold
geologists used the 200 Mean Sea Level (MSL) as the demarcation from 1.0 g/t Au to 0.4 g/t
Au cut-off grade. The sectional outlines are snapped to drill holes (one metre assay
intervals) and contain internal waste where appropriate to ensure plausible zone geometries
and grade continuity.

A total of 10 structural and lithologic controlled domains were identified consisting of a total of
85 wireframes (Table 14-4 and Figure 14-1). The 2018 wireframes resulted in an increase in
mineralized volume of 15.3 million cubic metres (Figures 14-2 and 14-3) with no changes for

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-4
 www.rpacan.com

the F and G zones. For evaluation purposes and to discreetly separate domains and block
models, RPA renumbered the rock type variables (block model domain) as follows: F Zone
was renamed from 3 to 8, G Zone was renamed from 6 to 9, and Pau a Pique (PPQ) was
renamed from 7 to 10.

TABLE 14-4 FBDM DOMAIN ASSIGNMENTS (2018)

Leagold Mining Corporation – Fazenda Brasileiro Mine

Block Model Domain Zone Number of Wireframes

1 CLX1 13
2 CLX2 4
3 EDEEP_CLX1 5
4 LGT 1
5 CANTO_CARB 11
6 CANTO_QTZ 38
7 VQ 10
8 F Zone 1
9 G Zone 1
10 PPQ 1
Total Wireframes 85

RPA inspected the wireframe models and notes that they appear to honour the logged
lithology, and represent reasonable interpretations of the geology and grade distribution that
are consistent with field observations. The boundaries of the deposit appear to be
constrained to a reasonable distance from the nearest drill holes. RPA recommends the
following updates to the Leapfrog wireframes prior to any future resource estimation updates:

• Ensure that Hanging Wall and Footwall points are properly assigned with the
individual wireframes to eliminate or reduce the number of “gaps” in the wireframe.

• Compress controlling boundaries and eliminate pinch outs to allow for better
modelling of grade continuity across lithologies.

• Set minimum mining thickness to 1.0 m.

• Clip or remove all isolated one-hole and/or thin (<0.5 m) wireframes.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-5
 Looking North

Drill Hole Trace

Legend:
CLX1
14-6

CLX2
EDEEP_CLX1
LGT
Canto Carb
Canto Qtz
VQ
F Zone
G Zone
PPQ

Figure 14-1

www.rpacan.com
Leagold Mining Corpation
0 1000 2000 3000 4000
Metres
Fazenda Brasileiro Mine
Bahia State, Brazil
Drill Hole Location and
Resource Wireframes 2018
November 2018 Source: RPA, 2018.
 Looking North

Drill Hole Trace

14-7

Legend:
2016 Resource Wireframe
2018 Resource Wireframe

Figure 14-2

www.rpacan.com
Leagold Mining Corporation
0 1000 2000 3000 4000
Metres
Fazenda Brasileiro Mine
Bahia State, Brazil
Drill Hole Location and Resource
Wireframes 2016 vs 2018
November 2018 Source: RPA, 2018.
 www.rpacan.com

FIGURE 14-3 DOMAIN ASSIGNMENT (WIREFRAME) VOLUME 2016 VS. 2018

STATISTICAL ANALYSIS
The modelled mineralized wireframes were used to flag drill hole samples in the database.
For each mineralized zone, resource assays, descriptive statistics, and histograms were
investigated. Table 14-5 and Figure 14-4 present the descriptive and visual statistics for
individual domains.

TABLE 14-5 STATISTICS OF RESOURCE RAW ASSAY VALUES BY DOMAIN

Leagold Mining Corporation - Fazenda Brasileiro Mine

Zone Domain Count Min Max Mean Variance StDev CV

CLX1 1 72,582 0.04 1154.39 4.27 102.7 10.13 2.37
CLX2 2 17,633 0.04 213.62 4.43 68.97 8.30 1.87
EDEEP-CLX1 3 5,717 0.04 126.63 3.31 36.02 6.00 1.81
LGT 4 4,891 0.04 65.04 0.93 5.2 2.28 2.45
CANTO_CARB* 5 8,415 0.04 250.00 3.20 78.51 8.86 2.77
CANTO_QTZ 6 24,220 0.04 999.90 2.86 126.6 11.25 3.94
VQ 7 1,890 0.04 152.25 5.25 96.01 9.80 1.87
F Zone 8 6,666 0.04 69.37 2.68 13.56 3.68 1.38
G Zone 9 3,475 0.04 52.56 2.30 11.82 3.44 1.49
PPQ 10 3,243 0.04 101.72 1.61 9.8 3.13 1.94

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FIGURE 14-4 DOMAIN BOX PLOTS

Au Box Plot
Domain
1000 10

100 6

10 2
Au / Mean

0.1

0.01
1 2 3 4 5 6 7 8 9 10
Domain

CAPPING OF HIGH GRADE ASSAYS

Where the assay distribution is skewed positively or approaches log-normal, erratic high
grade assay values can have a disproportionate effect on the average grade of a deposit.
One method of treating these outliers in order to reduce their influence on the average grade
is to cut or cap them at a specific grade level. Sample capping was evaluated for each of the
10 mineralized zones. Histogram and probability plots for each grade zone is shown in
Figures 14-5 through 14-14.

The influence of outliers was assessed for each domain and involved:

• Reviewing the grade histograms and the point at which the high grade tail of the
distribution begins to break up
• Reviewing the global influence after applying various top-cuts
• Reviewing the spatial location of outliers

Based on the evaluation of the outliers found in the upper end of the sample population
distribution for each of the grade zones, Leagold capped the grades at an appropriate level.
The highest grade samples in the distribution were considered outliers, which are deemed

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Technical Report NI 43-101 – November 26, 2018 Page 14-9
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unrepresentative of the population distribution. The capping parameters are shown in Table
14-6.

TABLE 14-6 CAPPING OF RESOURCE ASSAY VALUES BY DOMAIN

Leagold Mining Corporation - Fazenda Brasileiro Mine

Zone Ore Cap Grade (g/t Au) No. Of Samples Capped

CLX1 30 1,005
CLX2 30 246
EDEEP_CLX1 18 127
LGT 20 10
CANTO_CARB 27 137
CANTO_QTZ 30 154
VQ 27 45
F Zone 40 10
G Zone 22 20
PPQ 18 13

Table 14-7 summarizes the statistical results of the capping strategy used. After compositing
the sample values to one metre composites, the mean grades are still very similar to the
original capped sample grades for each of the grade zones.

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Technical Report NI 43-101 – November 26, 2018 Page 14-10
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TABLE 14-7 SUMMARY STATISTICS OF UNCAPPED VS. CAPPED ASSAYS

(G/T AU)
Leagold Mining Corporation - Fazenda Brasileiro Mine

Zone CLX1 CLX2 EDEEP-CLX1

Descriptive Statistics Raw Cap Comp Raw Cap Comp Raw Cap Comp
Number of Samples 72,582 72,582 54,425 17,633 17,633 14,982 5,717 5,717 5,332
Min 0.040 0.040 0.000 0.040 0.040 0.000 0.040 0.04 0.040
Max 1,154.39 30.00 30.00 213.62 30.00 30.00 126.63 18.00 18.00
Mean 4.27 3.97 3.54 4.43 4.13 3.95 3.31 3.01 3.01
Variance 102.70 33.12 25.10 68.97 33.60 31.26 36.02 14.70 14.66
StDev 10.13 5.76 5.01 8.30 5.80 5.59 6.00 3.83 3.83
CV 2.37 1.45 1.42 1.87 1.40 1.41 1.81 1.27 1.27
Number of Caps 0 1005 0 246 0 127

Zone LGT CANTO_CARB* CANTO_QTZ

Descriptive Statistics Raw Cap Comp Raw Cap Comp Raw Cap Comp
Number of Samples 4,891 4,891 5,315 8,415 8,415 7,413 24,220 24,220 22,339
Min 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04 0.04
Max 65.04 20.00 20.00 250.00 27.00 27.00 999.90 30.00 30.00
Mean 0.93 0.89 0.82 3.20 2.75 2.56 2.86 2.58 2.48
Variance 5.2 2.38 2.24 78.51 22.22 19.64 126.60 16.81 15.76
StDev 2.28 1.54 1.50 8.86 4.71 4.43 11.25 4.10 3.97
CV 2.45 1.73 1.82 2.77 1.71 1.73 3.94 1.59 1.60
Number of Caps 3 137 154

Zone VQ F Zone G Zone

Descriptive Statistics Raw Cap Comp Raw Cap Comp Raw Cap Comp
Number of Samples 1,890 1,890 1,653 6,666 6,666 5,789 3,475 3,475 3,226
Min 0.040 0.040 0.040 0.040 0.040 0.040 0.040 0.040 0.040
Max 152.25 27.00 27.00 69.37 40.00 40.00 52.56 22.00 22.00
Mean 5.25 4.69 4.52 2.68 2.66 2.62 2.30 2.25 2.22
Variance 96.01 34.61 32.49 13.56 12.39 11.59 11.82 9.23 8.91
StDev 9.80 5.88 5.70 3.68 3.52 3.41 3.44 3.04 2.98
CV 1.87 1.25 1.26 1.38 1.32 1.35 1.49 1.35 1.34
Number of Caps 0 45 0 10 0 20

Zone PPQ
Descriptive Statistics Raw Cap Comp
Number of Samples 3,243 3,243 3,243
Min 0.040 0.040 0.040
Max 101.72 18.00 18.00
Mean 1.61 1.55 1.55
Variance 9.80 5.22 5.22
StDev 3.13 2.28 2.28
CV 1.94 1.47 1.47

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Technical Report NI 43-101 – November 26, 2018 Page 14-11
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FIGURE 14-5 CAPPING DEFINITION OF CLX1 ZONE

Au Histogram
25 gm 50 m 75
ROCK = CLX1
20

18

16
Au
Frequency (% of 72582)

count 72582
14 min 0.0400
max 30.0000 (1005 capped)
mean 3.9744
12 stdev 5.7553
skewness 2.59
kurtosis 7.29
10 variance 33.12
CV 1.45
geom mean 1.4636
8 25% 0.5200
median 1.7600
75% 4.7400
6

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = CLX1

Cap=30CapCapped=1005 CV=1.45 Total Lost=7% M
99.98 25% 75%
4.74 98.6%
30
0.52
99.95
99.9
99.8
99.5
99
98
Au
95
count 72582
90 min 0.0400
max 1154.3900
Cumulative %

80 mean 4.2734
70 stdev 10.1330
60 variance 102.7
50 CV 2.37
40 25% 0.5200
30 median 1.7600
20 75% 4.7400
97.5% 23.0000
10 99% 34.0000

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-12
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FIGURE 14-6 CAPPING DEFINITION OF CLX2 ZONE

Au Histogram
25 gm 50 m 75
ROCK = CLX2
20

18

16
Au
Frequency (% of 17633)

count 17633
14 min 0.0400
max 30.0000 (246 capped)
mean 4.1305
12 stdev 5.7966
skewness 2.52
kurtosis 6.93
10 variance 33.60
CV 1.40
geom mean 1.5207
8 25% 0.5700
median 1.9200
75% 4.9700
6

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = CLX2

Cap=30CapCapped=246 CV=1.4 Total Lost=6.8% Max
99.98 25% 75%
4.97 98.6%
30
0.57
99.95
99.9
99.8
99.5
99
98
Au
95
count 17633
90 min 0.0400
max 213.6200
Cumulative %

80 mean 4.4319
70 stdev 8.3047
60 variance 68.97
50 CV 1.87
40 25% 0.5700
30 median 1.9200
20 75% 4.9700
97.5% 23.5070
10 99% 35.0634

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-13
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FIGURE 14-7 CAPPING DEFINITION OF EDEEP_CLX1 ZONE

Au Histogram
25 gm 50 m 75
ROCK = EDEEP CLX1

22

20

18
Au
count 5717
Frequency (% of 5717)

16 min 0.0400
max 18.0000 (127 capped)
mean 3.0095
14
stdev 3.8337
skewness 2.24
12 kurtosis 5.18
variance 14.70
CV 1.27
10 geom mean 1.2467
25% 0.4700
median 1.7100
8 75% 3.7100

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = EDEEP

Cap
CLX1
Cap=18 Capped=127 CV=1.27 Total
Max
Lost=9.1%
99.98 25% 75%
3.71 97.8%
18
99.95 0.47
99.9
99.8
99.5
99
98
Au
95
count 5717
90 min 0.0400
max 126.6300
Cumulative %

80 mean 3.3122
70 stdev 6.0013
60 variance 36.02
50 CV 1.81
40 25% 0.4700
30 median 1.7100
20 75% 3.7100
97.5% 16.9030
10 99% 25.4826

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-14
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FIGURE 14-8 CAPPING DEFINITION OF LGT ZONE

Au Histogram
25 50
gm m 75
ROCK = LGT

40

35

Au
count 4891
Frequency (% of 4891)

30 min 0.0400
max 20.0000 (10 capped)
mean 0.8901
25 stdev 1.5424
skewness 6.80
kurtosis 67.16
variance 2.38
20 CV 1.73
geom mean 0.4393
25% 0.1600
median 0.4700
15
75% 1.0800

10

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = LGT Cap

Cap=20 Capped=10 CV=1.73
Max
Total Lost=4.2%
% 99.98 75%
1.08 99.8%
20
16
99.95
99.9
99.8
99.5
99
98
Au
95
count 4891
90 min 0.0400
max 65.0400
Cumulative %

80 mean 0.9294
70 stdev 2.2799
60 variance 5.20
50 CV 2.45
40 25% 0.1600
30 median 0.4700
20 75% 1.0800
97.5% 4.1273
10 99% 6.8054

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-15
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FIGURE 14-9 CAPPING DEFINITION OF CANTO CARB ZONE

Au Histogram
25 gm 50 75 m
ROCK = Canto_Carb
22

20

18
Au
16 count 8415
Frequency (% of 8415)

min 0.0400
max 27.0000 (137 capped)
14 mean 2.7519
stdev 4.7135
skewness 3.47
12 kurtosis 13.11
variance 22.22
CV 1.71
10
geom mean 1.0213
25% 0.4300
8 median 1.2200
75% 2.6325

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = Canto_Carb

Cap
Cap=27 Capped=137 CV=1.71 Total Lost=14% Max
99.98
25% 75%
2.6325 98.4%
27
99.950.43
99.9
99.8
99.5
99
98
Au
95
count 8415
90 min 0.0400
max 250.0000
Cumulative %

80 mean 3.2032
70 stdev 8.8604
60 variance 78.51
50 CV 2.77
40 25% 0.4300
30 median 1.2200
20 75% 2.6325
97.5% 19.6188
10 99% 37.3035

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-16
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FIGURE 14-10 CAPPING DEFINITION OF CANTO QTZ ZONE

Au Histogram
25 gm 50 m 75
ROCK = Canto_QTZ

16

14
Au
Frequency (% of 24220)

count 24220
12 min 0.0400
max 30.0000 (154 capped)
mean 2.5767
stdev 4.0988
10 skewness 3.94
kurtosis 19.02
variance 16.80
8 CV 1.59
geom mean 1.1329
25% 0.5600
median 1.3000
6 75% 2.7300

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = Canto_QTZ

Cap=30
Cap
Capped=154 CV=1.59 Total Lost=9.8% Max
99.98 25% 75%
2.73 99.4%
30
0.56
99.95
99.9
99.8
99.5
99
98
Au
95
count 24220
90 min 0.0400
max 999.9000
Cumulative %

80 mean 2.8558
70 stdev 11.2531
60 variance 126.6
50 CV 3.94
40 25% 0.5600
30 median 1.3000
20 75% 2.7300
97.5% 14.8900
10 99% 23.9500

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

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FIGURE 14-11 CAPPING DEFINITION OF VQ TARGET

Au Histogram
25 gm 50 m 75
ROCK = VQ

14

12

Au
count 1890
Frequency (% of 1890)

10 min 0.0400
max 27.0000 (45 capped)
mean 4.6898
stdev 5.8834
skewness 2.20
8
kurtosis 4.76
variance 34.61
CV 1.25
geom mean 2.0380
6 25% 1.0400
median 2.6200
75% 5.8150

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = VQ
Cap=27
Cap
Capped=45 CV=1.25 Total Lost=11%
Max
99.98 25% 75%
5.815 97.6%
27
1.04
99.95
99.9
99.8
99.5
99
98
Au
95
count 1890
90 min 0.0400
max 152.2500
Cumulative %

80 mean 5.2535
70 stdev 9.7985
60 variance 96.01
50 CV 1.87
40 25% 1.0400
30 median 2.6200
20 75% 5.8150
97.5% 25.2525
10 99% 40.9900

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-18
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FIGURE 14-12 CAPPING DEFINITION OF F ZONE

Au Histogram
25 gm 50 m 75
ROCK = F Zone
14

12

Au
count 6666
10
Frequency (% of 6666)

min 0.0400
max 40.0000 (10 capped)
mean 2.6640
stdev 3.5198
8 skewness 4.53
kurtosis 32.19
variance 12.39
CV 1.32
6 geom mean 1.4220
25% 0.7500
median 1.7000
75% 3.2000

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = F Zone

Cap=40 Capped=10
Cap
CV=1.32
Max
Total Lost=0.5%
99.98 25% 75%
3.2 99.9%
40
0.75
99.95
99.9
99.8
99.5
99
98
Au
95
count 6666
90 min 0.0400
max 69.3700
Cumulative %

80 mean 2.6771
70 stdev 3.6827
60 variance 13.56
50 CV 1.38
40 25% 0.7500
30 median 1.7000
20 75% 3.2000
97.5% 11.4970
10 99% 17.9000

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-19
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FIGURE 14-13 CAPPING DEFINITION OF G ZONE

Au Histogram
25 gm 50 m 75
ROCK = G Zone
22

20

18
Au
16 count 3475
Frequency (% of 3475)

min 0.0400
max 22.0000 (20 capped)
14 mean 2.2544
stdev 3.0378
skewness 3.26
12 kurtosis 14.39
variance 9.23
CV 1.35
10
geom mean 1.0039
25% 0.3900
8 median 1.3400
75% 2.6925

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = G Zone Cap

Cap=22 Capped=20
Max
CV=1.35 Total Lost=2%
99.98
25% 75%
2.6925 99.5%
22
0.39
99.95
99.9
99.8
99.5
99
98
Au
95
count 3475
90 min 0.0400
max 52.5600
Cumulative %

80 mean 2.3011
70 stdev 3.4382
60 variance 11.82
50 CV 1.49
40 25% 0.3900
30 median 1.3400
20 75% 2.6925
97.5% 10.2575
10 99% 16.1075

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-20
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FIGURE 14-14 CAPPING DEFINITION OF PPQ ZONE

Au Histogram
ROCK = PPQ
30 25 gm 50 m 75

25

Au
count 3243
Frequency (% of 3243)

min 0.0400
20
max 18.0000 (13 capped)
mean 1.5543
stdev 2.2840
skewness 3.77
kurtosis 18.81
15 variance 5.22
CV 1.47
geom mean 0.6776
25% 0.2200
median 0.8800
10 75% 1.8250

0
0 2 4 6 8 10 12 14 16 18
Au

Log Probability Plot Au

99.99 ROCK = PPQ

Cap

Cap=18 Capped=13 CV=1.47 TotalMax
Lost=3.7%
25% 99.98 75%
1.825 99.6%
18
0.22
99.95
99.9
99.8
99.5
99
98
Au
95
count 3243
90 min 0.0400
max 101.7200
Cumulative %

80 mean 1.6136
70 stdev 3.1313
60 variance 9.80
50 CV 1.94
40 25% 0.2200
30 median 0.8800
20 75% 1.8250
97.5% 8.1378
10 99% 12.3497

5
2
1
0.5
0.2
0.1
0.05
0.02
0.01
1 10 100 1000
Au

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-21
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TREATMENT OF BELOW DETECTION SAMPLES

Samples that assayed below the detection limit were treated to better handle the influence of
these samples in the subsequent compositing process. Negative or zero gold grades (below
detection) were generally assigned a value of one half of the laboratory detection limit (i.e.,
0.005 g/t Au grades were adjusted to 0.0025 g/t Au). In RPA’s opinion, this is a reasonable
approach.

COMPOSITING
The composite lengths used for grade interpolation were chosen considering the
predominant sample length, the minimum mining width, the style of mineralization, the width
of domains, and the continuity of grade. The raw assay data contains samples that have
irregular sample lengths. Sample lengths range from 0.01 m to 29.0 m within the wireframe
models, with 60% of the samples taken on one metre intervals and an average length of
0.896 m (Figure 14-15). Given this distribution, and considering the width of the mineralized
domains, Leagold chose to composite to a length of one metre. These composites were
then used in the subsequent grade modelling in the block model. RPA considers that the
compositing approach is reasonable.

FIGURE 14-15 HISTOGRAM OF SAMPLE LENGTHS

100 gm m

50%
1

90

80
Frequency (% of 148732)

70
LENGTH
count 148732
60 min 0.010
max 29.000
mean 0.826
50 stdev 0.511
variance 0.26
CV 0.62
geom mean 0.722
40

30

20

10

0
0.0 0.5 1.0 1.5 2.0 2.5 3.0
Length (m)

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-22
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Assays within the wireframe domains were composited starting at the first mineralized
wireframe boundary from the collar and resetting at each new wireframe boundary. Assays
were capped prior to compositing. Table 14-8 shows the composite statistics by mineralized
domain.

TABLE 14-8 DESCRIPTIVE STATISTICS OF CAPPED COMPOSITE STATS (G/T

AU) BY DOMAIN
Leagold Mining Corporation – Fazenda Brasileiro Mine

Variable Min Max Mean

Zone Name Number Count (g/t) (g/t) (g/t) Variance StDev CV
CLX1 1 54,425 0 30.00 3.54 25.10 5.01 1.42
CLX2 2 14,982 0 30.00 3.95 31.26 5.59 1.41
EDEEP_CLX1 3 5,332 0.04 18.00 3.01 14.66 3.83 1.27
LGT 4 5315 0.04 20.00 0.82 2.2 1.48 1.81
CANTO_CARB 5 7,413 0.04 27.00 2.56 19.64 4.43 1.73
CANTO_QTZ 6 22,339 0 30.00 2.48 15.76 3.97 1.60
VQ 7 1,653 0.04 27.00 4.52 32.49 5.70 1.26
F Zone 8 5,789 0.04 40.00 2.62 11.59 3.41 1.35
G Zone 9 3,226 0.04 22.00 2.22 8.91 2.98 1.34
PPQ 10 3,243 0.04 18.00 1.55 5.22 2.28 1.47

CONTINUITY ANALYSIS
FBDM generated downhole, directional, and omnidirectional geostatistical analyses using
Isatis (Version 2017) mining software to evaluate the grade variability changes with distance,
as well as to quantify nugget effects (Figures 14-16 to 14-24). In this document, the term
variogram will be used to denote a generic spatial measure and will be used interchangeably
with correlogram. The variogram was used to generate the downhole correlogram to
establish the nugget variance (C0) prior to generating directional variography, when it occurs.
The major, semi-major, and minor axes of the variography are selected based on the
interpreted mineralization zone geometry and incorporate the known geological controls. The
principal direction and dip associated with the domains are shown and are aligned with the
strike and axes of structures which control the mineralization. The second direction is
perpendicular to the principal direction, aligned with dip. The third direction is normal to the
plane, aligned to the mineralization thickness.

The correlograms were evaluated to determine the optimum range and directions of mineral
continuity, which was found to be consistent with the structural orientation of the mineralized

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-23
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zones. RPA visually inspected the correlograms and notes that they appear to have been
generated and interpreted correctly and are reasonable. The observed distribution of grades
within the model is reasonable, which suggests that the models were configured
appropriately. In RPA’s opinion, the search ranges are reasonable for the style of
mineralization and are generally consistent with the correlogram results. The major and
semi-major search directions are typically within a plane oriented N20°E and dipping 40° to
45° east, which is the direction of maximum continuity of the mineralization (Table 14-9).

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-24
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Figure 14-16

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
CLX1 Variogram

November 2018 Source: Leagold, 2018.

14-25
 www.rpacan.com

Figure 14-17

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
CLX2 Correlorgam

November 2018 Source: Leagold, 2018.

14-26
 www.rpacan.com

Figure 14-18

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
Edeep Zone Correlorgam

November 2018 Source: Leagold, 2018.

14-27
 www.rpacan.com

Figure 14-19

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
LGT Correlorgam

November 2018 Source: Leagold, 2018.

14-28
 www.rpacan.com

Figure 14-20

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
Canto Carb Correlorgam

November 2018 Source: Leagold, 2018.

14-29
 www.rpacan.com

Figure 14-21

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
Canto 2 Qtz Correlorgam

November 2018 Source: Leagold, 2018.

14-30
 www.rpacan.com

Figure 14-22

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
VQ Correlorgam

November 2018 Source: Leagold, 2018.

14-31
 www.rpacan.com

Figure 14-23

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
F Zone Correlorgam

November 2018 Source: Leagold, 2018.

14-32
 www.rpacan.com

Figure 14-24

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
G Zone Correlorgam

November 2018 Source: Leagold, 2018.

14-33
 www.rpacan.com

Figure 14-25

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
PPQ Correlorgam

November 2018 Source: Leagold, 2018.

14-34
Technical Report NI 43-101 – November 26, 2018
Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

TABLE 14-9 FBDM VARIOGRAM/CORRELOGRAM RESULTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

Nugget Structure 1 Structure 2 Structure 3 Structure 4

Code Domain Type Azimuth Dip
Effect Sill X Y Z Sill X Y Z Sill X Y Z Sill X Y Z
1 CLX1 Variogram 86 44 12.00 5.00 8 4 3 6.00 25 10 5 3.00 45 35 10
2 CLX2 Correlogram 90 45 0.40 0.51 7 7 5 0.02 40 30 20 0.03 ∞ 40 25 0.04 ∞ ∞ 25
3 EDEEP_CLX1 Correlogram 110 35 0.32 0.58 4 5 5 0.07 40 25 18 0.03 ∞ ∞ 30
4 LGT Correlogram Omnidirectional 0.1 0.72 5 5 5 0.22 40 40 40
5 CANTO_CARB Variogram 70 35 8.00 9.50 10 5 4 3.00 20 30 5
6 CANTO_QTZ Correlogram 80 30 0.40 0.40 4 6 4 0.06 20 18 30 0.07 50 25 35 0.07 ∞ 32 50
7 VQ Correlogram 65 41 0.60 0.27 10 8 5 0.12 40 15 15 0.01 70 25 20
8 F Correlogram 100 35 0.3 0.5 5 10 5 0.15 20 30 15 0.05 120 80 40
9 G Correlogram 90 45 0.3 0.6 5 10 5 0.1 40 35 25
10 PPQ Correlogram Omnidirectional 0.4 0.35 5 5 5 0.15 25 25 25 0.1 90 90 90

www.rpacan.com
Page 14-35
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BULK DENSITY
Bulk density measurements were determined using 10 cm long samples from each lithology
encountered and from each one metre assay interval in each core hole. Measurements were
determined by a water displacement method as follows:
• The sample is dried, coated in Vaseline, and then weighed.
• The sample is then placed in a graduated, water-filled cylinder.
• The amount of water displaced is measured.
• The bulk density is then calculated as the weight of the sample divided by the volume
of water displaced.

The measured average bulk density by zone used in the estimation ranges from 2.77 g/cm3
to 3.01 g/cm3, with an overall average of 2.86 g/cm3. RPA is of the opinion that this value is
reasonable for the rock types observed at site and is typical for the host rock types of the
mineralization (Table 14-10).

TABLE 14-10 AVERAGE BULK DENSITY VALUES

Leagold Mining Corporation - Fazenda Brasileiro Mine

# of Ore Ore Density # of Waste Waste Density

Domain Code
Samples (g/cm3) Samples (g/cm3)
CLX1 1 82 2.98 335 2.96
CLX2 2 30 2.84 146 2.81
EDEEP_CLX1 3 55 3.01 340 2.94
LGT* 4 2.77 4 2.77
CANTO_CARB 5 2 2.77 74 2.77
CANTO_QTZ 6 12 2.84 64 2.77
VQ 7 2 2.78 14 2.81
F Zone 8 154 2.79 639 2.83
G Zone 9 25 2.96 238 2.82
PPQ* 10 2.88 2.86

Note: * Density values for LGT and PPQ are based on historically average values

BLOCK MODEL
Eight block models were created by Leagold in Datamine to support the Mineral Resource
estimate at FBDM: Main Open Pit - Canto 1 Sul (MOP), Main Canto 2 (MC2), Main
Underground (MUG), EDEEP, LGT, F Zone (MFBF), G Zone (MFBG), and PPQ. Estimated
grades of the deposit were constructed by Leagold in Isatis (Version 2017) mining software.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-36
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For the open pit deposits, the block size was selected to be consistent with the Selective
Mining Unit (SMU) size for the planned open pit mining regularized to 5 m by 5 m by 5 m.
For underground deposits, sub-blocking was used to give a more accurate volume
representation of the wireframes. Sub-blocks were set to a minimum size of 1.0 m x 1.0 m x
0.5 m (x, y, and z). The models are oriented with an azimuth of 0.0°, dip of 0.0°, and a
plunge of 0.0°. The FBDM model origin (lower-left corner at lowest elevation) is set at local
mine coordinates. A summary of the block model extents and properties for each of the
FBDM block models is provided in Tables 14-11 to 14-18.

RPA notes that the actual Datamine block model produced block sizes smaller than the
schema outlined in Tables 14-11 to 14-18. FBDM personnel states this was a function of the
Datamine software and has been fixed for the next model update. RPA performed validation
and visual checks of block model slices against both drill hole assay and composite grades,
and is of the opinion that the discrepancy in minimum block sizes should not materially affect
the Mineral Resource estimate.

RPA considers the FBDM block model parameters to be acceptable, however, RPA
recommends the following in future block model updates:
• If wireframes are built using a specific lithology code, ensure that all blocks within the
wireframe are assigned the same number.

• Ensure that all wireframes (triangulations) are properly closed and validated including
mine design shapes.

• Reduce parent block size of underground models from 10 m by 10 m x 1 m to 2 m x 2

m x 2m with sub-blocks set to a minimum size of 1 m x 1 m x 0.5 m to reduce
smoothing of local grade variabilities.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-37
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TABLE 14-11 BLOCK MODEL MOP DIMENSIONS

Leagold Mining Corporation - Fazenda Brasileiro Mine

Origin Value
Xmin 89,150
Ymin 33,600
Zmin 300
X Extents 4,750
Y Extents 900
Z Extents 150
Schema Value
Parent
DX 5
DY 5
DZ 5
NX 950
NY 180
NZ 30
Sub-Block
DX 0
DY 0
DZ 0
NX 0
NY 0
NZ 0

Model Rotation Value

Bearing 90
Plunge 0
Dip 0
Project Units Metres
Coordinate System Local Mine
Coordinates

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-38
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TABLE 14-12 BLOCK MODEL MC2 DIMENSIONS

Leagold Mining Corporation - Fazenda Brasileiro Mine

Origin Value
Xmin 93,400
Ymin 34,000
Zmin 0
X Extents 1,200
Y Extents 800
Z Extents -450
Schema Value
Parent
DX 5
DY 5
DZ 5
NX 240
NY 160
NZ 90
Sub-Block
DX 0
DY 0
DZ 0
NX 0
NY 0
NZ 0

Model Rotation Value

Bearing 90
Plunge 0
Dip 0
Project Units Metres
Coordinate System Local Mine
Coordinates

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-39
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TABLE 14-13 BLOCK MODEL MUG DIMENSIONS

Leagold Mining Corporation - Fazenda Brasileiro Mine

Origin Value
Xmin 89,150
Ymin 32,800
Zmin -600
X Extents 4,750
Y Extents 1,450
Z Extents 900
Schema Value
Parent
DX 10
DY 10
DZ 1
NX 475
NY 145
NZ 900
Sub-Block
DX 1.0
DY 1.0
DZ 0.5
NX 4,750
NY 1,450
NZ 1,800

Model Rotation Value

Bearing 0
Plunge 0
Dip 0
Project Units Metres
Coordinate System Local Mine
Coordinates

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-40
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TABLE 14-14 BLOCK MODEL EDEEP DIMENSIONS

Leagold Mining Corporation - Fazenda Brasileiro Mine

Origin Value
Xmin 90,900
Ymin 32,400
Zmin -900
X Extents 1,800
Y Extents 600
Z Extents 550
Schema Value
Parent
DX 10
DY 10
DZ 1
NX 180
NY 60
NZ 550
Sub-Block
DX 1.0
DY 1.0
DZ 0.5
NX 1,800
NY 600
NZ 1,100

Model Rotation Value

Bearing 90
Plunge 0
Dip 0
Project Units Metres
Coordinate System Local Mine
Coordinates

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-41
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TABLE 14-15 BLOCK MODEL LGT DIMENSIONS

Leagold Mining Corporation - Fazenda Brasileiro Mine

Origin Value
Xmin 96,250
Ymin 36,250
Zmin -500
X Extents 5,000
Y Extents 2,500
Z Extents 1,000
Schema Value
Parent
DX 12.5
DY 12.5
DZ 1
NX 400
NY 200
NZ 1000
Sub-Block
DX 1.0
DY 1.0
DZ 0.5
NX 5,000
NY 2,500
NZ 2,000

Model Rotation Value

Bearing 90
Plunge 0
Dip 0
Project Units Metres
Coordinate System Local Mine
Coordinates

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-42
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TABLE 14-16 BLOCK MODEL MFBF DIMENSIONS

Leagold Mining Corporation - Fazenda Brasileiro Mine

Origin Value
Xmin 86,500
Ymin 32,000
Zmin -900
X Extents 8,500
Y Extents 3,000
Z Extents 1,350
Schema Value
Parent
DX 12.5
DY 12.5
DZ 1
NX 680
NY 240
NZ 1350
Sub-Block
DX 1.0
DY 1.0
DZ 0.5
NX 8,500
NY 3,000
NZ 2,700

Model Rotation Value

Bearing 90
Plunge 0
Dip 0
Project Units Metres
Coordinate System Local Mine
Coordinates

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-43
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TABLE 14-17 BLOCK MODEL MFBG DIMENSIONS

Leagold Mining Corporation - Fazenda Brasileiro Mine

Origin Value
Xmin 86,500
Ymin 32,000
Zmin -900
X Extents 8,500
Y Extents 3,000
Z Extents 1,350
Schema Value
Parent
DX 12.5
DY 12.5
DZ 1
NX 680
NY 240
NZ 1350
Sub-Block
DX 1.0
DY 1.0
DZ 0.5
NX 8,500
NY 3,000
NZ 2,700

Model Rotation Value

Bearing 90
Plunge 0
Dip 0
Project Units Metres
Coordinate System Local Mine
Coordinates

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-44
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TABLE 14-18 BLOCK MODEL PPQ DIMENSIONS

Leagold Mining Corporation - Fazenda Brasileiro Mine

Origin Value
Xmin 85,250
Ymin 31,750
Zmin -500
X Extents 2,000
Y Extents 2,500
Z Extents 900
Schema Value
Parent
DX 12.5
DY 12.5
DZ 1
NX 160
NY 200
NZ 900
Sub-Block
DX 1.0
DY 1.0
DZ 0.5
NX 2,000
NY 2,500
NZ 1,800

Model Rotation Value

Bearing 90
Plunge 0
Dip 0
Project Units Metres
Coordinate System Local Mine
Coordinates

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-45
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INTERPOLATION PARAMETERS
Block model representations of the deposit lithology and grade zones were constructed,
along with grade estimations for gold. Estimation of the grades was controlled by the
individual lithologic grade domains. Search ellipsoid geometry was oriented into the
structural plane of the mineralization, as indicated by the variography. One-metre
composites were used for the estimation, with composites matched to domain zone.
Ordinary Kriging (OK) estimation or Inverse Distance Squared (ID2) interpolation methods
were used to assign a gold grade to each block in Isatis (Version 2017). Estimation was
made on a regular parent cell model (open pit and underground) in Isatis and then was
imported back into Datamine. Open pit grade estimation used a regular parent cell model
while underground grade estimation was made using sub-blocks. Sub-blocks for the
underground domains were assigned the grade value of the parent block. Search ellipses
were oriented along determined trends within the mineralized wireframes. Table 14-19
presents the grade estimation parameter for OK and Table 14-20 presents the grade
estimation parameter for ID2.

TABLE 14-19 OK BLOCK ESTIMATE SEARCH PARAMETER BY DOMAIN

Leagold Mining Corporation – Fazenda Brasileiro Mine

Semi Min. Number of

Domain Estimation Type Azimuth Dip Major Axis Minor Axis
Major Samples
CLX1 OK 86 44 54 42 12 4
CLX2 OK 90 45 48 48 30 4
EDEEP_CLX1 OK 110 35 48 30 36 4
LGT OK 90 45 180 120 144 4
CANTO_CARB OK 70 35 24 36 6 4
CANTO_QTZ OK 80 30 60 38.4 60 4
VQ OK 65 41 84 30 24 4
F Zone OK 90 45 192 132 156 4
G Zone OK 90 45 180 120 180 4
PPQ OK 0 35 110 110 110 4

Optimum Min. Distance Max. No. of Optimum

No. of Horizontal Max. No. of
No. of Between Two Consecutive No. of
Domain Angular Sectors Samples Nugget
Samples Selected Empty Samples
(Split Vertically) per Hole
per Sector Samples (m) Sector per Hole
CLX1 4 2 1 4 2 2 12
CLX2 4 2 1 4 2 2 0.4
EDEEP_CLX1 4 2 1 4 2 2 0.32
LGT 4 2 1 4 2 2 0.1
CANTO_CARB 4 2 1 4 2 2 8
CANTO_QTZ 4 2 1 4 2 2 0.4
VQ 4 2 1 4 2 2 0.6
F Zone 4 2 1 4 2 2 0.3
G Zone 4 2 1 4 2 2 0.3
PPQ 4 2 1 4 2 2 0.4

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-46
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TABLE 14-20 ID2 BLOCK ESTIMATE SEARCH PARAMETER BY DOMAIN

Leagold Mining Corporation – Fazenda Brasileiro Mine

Min. Number of
Domain Estimation Type Azimuth Dip Major Axis Semi Major Minor Axis
Samples
CLX1 ID2 86 44 81 63 18 4
CLX2 ID2 90 45 72 72 45 4
EDEEP_CLX1 ID2 110 35 72 45 54 4
LGT ID2 90 45 300 200 250 4
CANTO_CARB ID2 70 35 36 54 9 4
CANTO_QTZ ID2 80 30 90 57.6 90 4
VQ ID2 65 41 126 45 36 4
F Zone ID2 90 45 350 200 300 4
G Zone ID2 90 45 300 200 300 4
PPQ ID2 0 35 400 400 400 4

Optimum Min. Distance Max. No. of Optimum

No. of Horizontal Max. No. of
No. of Between Two Consecutive No. of
Domain Angular Sectors Samples
Samples Selected Empty Samples
(Split Vertically) per Hole
per Sector Samples (m) Sector per Hole
CLX1 4 2 1 4 2 2
CLX2 4 2 1 4 2 2
EDEEP_CLX1 4 2 1 4 2 2
LGT 4 2 1 4 2 2
CANTO_CARB 4 2 1 4 2 2
CANTO_QTZ 4 2 1 4 2 2
VQ 4 2 1 4 2 2
F Zone 4 2 1 4 2 2
G Zone 4 2 1 4 2 2
PPQ 4 2 1 4 2 2

RPA considers the FBDM interpolation parameters to be acceptable, however, RPA

recommends the following in future block model updates:
• Ensure that the search ellipsoids are properly aligned along the geometric
orientations (strike, dip, and plunge) of the wireframe or use dynamic anisotropy
search to minimize horizontal striping of grades.

BLOCK MODEL VALIDATION

RPA validated the block model using the following methods:
• Visual inspection of block versus composite grades on plan, vertical cross section,
and long section.
• Swath plots of composite grades versus OK and NN grades in the X, Y, and Z
directions.
• Volumetric comparison of blocks versus wireframes.
• Statistical comparison of block grades with assay and declustered composite grades.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-47
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VISUAL COMPARISON
The block model was visually validated by the examination of the drill hole composite grades
compared with the estimated block grades on sections and plans. RPA found grade
continuity to be reasonable and confirmed that the block grades were reasonably consistent
with local drill hole composite grades. Figures 14-26 and 14-27 are cross sections
demonstrating the consistency.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-48
 www.rpacan.com

Looking West

Legend: 0 20 40 60 80 100
Au (ppm) Metres
< 0.1
0.1 - 0.5 Figure 14-26
0.5 - 1.0
1.0 - 1.5 Leagold Mining Corporation
1.5 - 3.0
3.0 - 5.0 Fazenda Brasileiro Mine
5.0 - 10.0 Bahia State, Brazil
> 10.0 Block Model MUG Vertical
Cross Section 90425 E
November 2018 Source: RPA, 2018.

14-49
 Looking West

Legend:
Au (ppm)
< 0.1
0.1 - 0.5
0.5 - 1.0
1.0 - 1.5
1.5 - 3.0
3.0 - 5.0
5.0 - 10.0
> 10.0
14-50

0 20 40 60 80 100
Metres
Figure 14-27

www.rpacan.com
Leagold Mining Corporation
Fazenda Brasileiro Mine
Bahia State, Brazil
Block Model MUG Vertical
Cross Section 91550 E
November 2018 Source: RPA, 2018.
 www.rpacan.com

SWATH PLOTS
The gold grade block model was also evaluated on a sectional basis using swath plots from
Isatis as shown in an example in Figure 14-28. The swath plots were generated for northerly
increments (east-west sections) to show the composite mean compared to the OK gold
grade model, as well as with the NN check model. An NN estimate is considered to be an
unbiased grade check, representing the highest grades that would be expected globally in
the block model. The OK estimate, being a moving average estimate, will tend to be more
smoothed. Some local variability between the NN and OK grades would be expected. In
RPA’s opinion, the swath plots show reasonably good correlation among the OK grades, the
NN grades, and the composite grades.

FIGURE 14-28 CLX1 SWATH PLOT

Source: Leagold 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-51
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VOLUME COMPARISON
Wireframe volumes were compared to block volumes for each domain at FBDM. This
comparison is summarized in Table 14-21 and results show that there is good agreement
between the wireframe volumes and block model volumes with differences ranging from less
than 1% to 17%. Volume differences within the Canto Carb domains are attributed to the
wireframe not being completely filled with blocks.

TABLE 14-21 VOLUME COMPARISON

Leagold Mining Corporation – Fazenda Brasileiro Mine

Domain Wireframe Volume (m3) Block Model Volume (m3) %∆ Volume

01_CLX1_Rev01_rpa.00t 8,042,360 7,929,163 -1.41%
02_CLX2_Rev01_rpa.00t 1,854,555 1,841,156 -0.72%
03_EDEEP_CLX1_Rev02_rpa.00t 695,802 695,805 0.00%
1610_LGT_Rev1_rpa.00t 1,886,553 1,807,895 -4.17%
05_CANTO_CARB_Rev01_rpa.00t 1,466,983 1,220,484 -16.80%
06_CANTO_QTZ_Canto2_Rev00_rpa.00t 1,506,997 1,536,920 1.99%
06_CANTO_QTZ_Mina_Rev00_rpa.00t 3,637,746 3,355,460 -7.76%
07_VQ_Rev01_rpa.00t 204,986 199,889 -2.49%
1610_F_Rev1_rpa.00t 974,208 929,197 -4.62%
1610_G_Rev1_rpa.00t 324,504 324,503 0.00%
1610_PPQ_Rev2_rpa.00t 1,482,956 1,437,328 -3.08%
Total 22,077,650 21,277,799 -3.62%

STATISTICAL COMPARISON
A statistical comparison of the estimated block grades with the one-metre composites is
shown in Table 14-22. Declustered composites are shown to reduce the effects of the
drilling bias towards the mineralized areas, and to compare more directly with the model
blocks, which are declustered by the kriging process. The block results compare well with
the composites, indicating a reasonable overall representation of the gold grades in the block
model. RPA considers the FBDM block model estimates to be acceptable.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-52
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TABLE 14-22 STATISTICS OF BLOCK GRADES COMPARED TO COMPOSITE

GRADES BY DOMAIN
Leagold Mining Corporation – Fazenda Brasileiro Mine

Zone CLX1 CLX2 EDEEP_CLX1

Descriptive Statistics Comp Block % Diff Comp Block % Diff Comp Block % Diff
Number of Samples 54,425 2,430,048 14,982 798,340 5,332 1,231,560
Min 0.00 0.10 0.00 0.00 0.04 0.10
Max 30.00 19.41 30.00 16.43 18.00 12.37
Mean 3.54 3.48 -1.45% 3.95 3.75 -5.18% 3.01 2.78 -7.46%
Variance 25.10 3.95 31.26 4.54 14.66 2.41
StDev 5.01 1.99 5.59 2.13 3.83 1.55
CV 1.42 0.57 1.41 0.57 1.27 0.56

Zone LGT CANTO_CARB CANTO_QTZ

Descriptive Statistics Comp Block % Diff Comp Block % Diff Comp Block % Diff
Number of Samples 5,315 4,250,645 7,413 391,687 22,339 1,193,872
Min 0.04 0.00 0.04 0.11 0.00 0.10
Max 20.00 8.56 27.00 26.48 30.00 17.01
Mean 0.82 0.81 -1.86% 2.56 2.78 8.60% 2.48 2.63 6.18%
Variance 2.20 0.64 19.64 3.57 15.76 2.81
StDev 1.48 0.80 4.43 1.89 3.97 1.68
CV 1.81 1.00 1.73 0.68 1.60 0.64

Zone VQ F Zone G Zone

Descriptive Statistics Comp Block % Diff Comp Block % Diff Comp Block % Diff
Number of Samples 1,653 75,708 5,789 1,062,767 3,226 1,736,744
Min 0.04 0.10 0.04 0.00 0.04 0.00
Max 27.00 22.70 40.00 12.95 22.00 7.97
Mean 4.52 4.75 5.09% 2.62 2.61 -0.41% 2.22 2.22 -0.17%
Variance 32.49 10.50 11.59 2.40 8.91 1.57
StDev 5.70 3.24 3.41 1.55 2.98 1.25
CV 1.26 0.68 1.30 0.59 1.34 0.57

Zone PPQ
Descriptive Statistics Comp Block % Diff
Number of Samples 3,243 5,864,553
Min 0.04 0.00
Max 18.00 12.40
Mean 1.55 1.63 5.11%
Variance 5.22 1.95
StDev 2.28 1.40
CV 1.47 0.86

CUT-OFF GRADE
CIM (2014) definitions specify that to satisfy the definition of Mineral Resources, there must
be “reasonable prospects for eventual economic extraction”. This is most commonly taken to
mean that a cut-off grade should be applied to the resource model, which reflects some

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Technical Report NI 43-101 – November 26, 2018 Page 14-53
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generally acceptable assumptions concerning metal prices, metallurgical recoveries, costs,

and other operational constraints.

RPA notes that the price assumptions for gold are different for Mineral Resource and Mineral
Reserve pit shells. For the FBDM zones, a conceptual open pit optimization using
US$1,500/oz of Au was used to constrain the resources close to the surface, at an open pit
cut-off grade of 0.46 g/t Au which was rounded up to 0.50 g/t Au for reporting resources. The
underground resource cut-off grade was calculated to equal 0.97 g/t Au which was rounded
up to 1.0 g/t Au for reporting resources. The Mineral Resource optimization inputs are
shown in Table 14-23.

TABLE 14-23 UNDERGROUND AND OPEN PIT CUT-OFF GRADE

OPTIMIZATION FACTORS AS OF MAY 2018
Leagold Mining Corporation – Fazenda Brasileiro Mine

Parameter Unit Underground Open Pit

Au price $/oz 1,500 1500
Au recovery % 90 90
Dilution % 0 0

Mining royalty % 1.5 0

Refining costs US$/oz 3.25 3.25

Operating Cost
Exchange Rate R$/US$ 3.70:1.00 3.70:1.00

Mine $/t 22.29 2.77

Process $/t 13.34 13.35
G&A $/t 5.89 5.89
Ore Haulage Difference $/t 0 0.04
Rehandle $/t 0 0.5
Total $/t 41.52 19.78

Cut-off grade g/t 0.97 0.46

Source: Leagold 2018

Metal prices used for Mineral Reserves are based on consensus, long term forecasts from
banks, financial institutions, and other sources. For Mineral Resources, metal prices used
are higher than those for Mineral Reserves. The foreign exchange rate used in this analysis

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Technical Report NI 43-101 – November 26, 2018 Page 14-54
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has changed significantly to the present exchange rate of R$3.70 = US$1.00, and it
represents an economic benefit to the project.

Figure 14-29 shows an example of the sensitivity of the FBDM block model to various cut-off
grades for the FBDM F Zone. The tonnages and grades shown are for comparative
purposes only and are not to be considered as Mineral Resources.

FIGURE 14-29 F ZONE MINERAL RESOURCE TONNES AND GRADE AT

VARIOUS CUT-OFF GRADES

Grade vs Tonnage
F Zone 8
1.4M
7

1.2M
6

1M
5

Au (g/t)
Tonnes

0.8M
4

0.6M
3

0.4M 2

0.2M 1
Tonnes
Au (g/t)
0M 0
0.0 0.5 1.0 1.5 2.0 2.5 3.0 3.5 4.0 4.5 5.0 5.5 6.0
Cutoff Grade Au (g/t)

CLASSIFICATION
The FBDM Mineral Resources have been classified as Measured, Indicated, or Inferred
Resources. The resource classification was based on the number of samples and distance
to drill holes used to estimate a block within a certain range. A good criterion to ensure that
the distance to drill holes is appropriate to use is the range of the correlogram, as this
establishes spatial continuity of a variable. The main criterion of sample-based classification
is that distance to be used between the block and the samples used in the estimation. Each
domain inside the mine has been classified based on their own correlogram, resulting in
varying distances to the same category.

In this case the following were considered as criteria;

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Technical Report NI 43-101 – November 26, 2018 Page 14-55
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• Measured Resource - 100% of the Au correlogram/variogram range and at least eight

samples and four holes.
• Indicated Resource - 200% of the Au correlogram/variogram range and at least eight
samples and four holes.
• Indicated Resource - the remainder of the blocks.

Each target was considered as independent for estimation and classification as listed in
Table 14-24.

TABLE 14-24 CORRELOGRAM RANGES USED FOR RESOURCE

CLASSIFICATION
Leagold Mining Corporation – Fazenda Brasileiro Mine

Measured Indicated
Min. Min. Drill
Code Domain Search Range Search Range Inferred
Samples Holes
X Y Z X Y Z
1 CLX1¹ 8 4 45 34 10 90 68 20
2 CLX2¹ 8 4 40 40 25 80 80 50
3 EDEEP_CLX1¹ 8 4 40 24 30 80 48 60
4 LGT 8 4 20 20 20 40 40 40
Rest of
5 CANTO_CARB¹ 8 4 20 30 5 40 60 10
Blocks
6 CANTO_QTZ¹ 8 4 50 32 50 100 64 100
7 VQ² 8 4 70 25 20
8 F 8 4 60 40 20 120 80 40
9 G 8 4 20 17 12 40 34 24

Note:
1. Measured - 100% of Correlogram/Variogram / Indicated - 200% of Correlogram/Variogram
2. 100% of Correlogram Indicated, because it´s QV
* If ID2 used for estimation no Measured Resources allowed

After the classification was completed, the FBDM geologist made a manual review of blocks
by applying a smoothing envelope along the edges to eliminate any inconsistencies. Figure
14-30 shows the classification for the F and G zones.

RPA considers the Mineral Resource classification of the FBDM zones to be appropriate and
consistent with CIM (2014) definitions.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-56
 N

G Zone
14-57

F Zone

Figure 14-30

www.rpacan.com
Leagold Mining Corporation
Legend:
Depleted
Measured
0 100 200 300 400 500 Fazenda Brasileiro Mine
Indicated Metres Bahia State, Brazil
Inferred Classification of F and G Zones

November 2018 Source: RPA, 2016.

 www.rpacan.com

MINERAL RESOURCE REPORTING

After completing all final modelling routines (classification), estimations, data and
geostatistical analysis, FBDM geologists depleted the wireframes from all known mined
areas by flagging blocks in those areas as “mined”. These blocks were excluded from final
Mineral Resource estimate.

The models were then passed to the Reserves Team to evaluate all the resources with the
Mineable Shape Optimizer (MSO) (underground) or NPV (open pits) Datamine software
routines to determine what is economic to be mined without mine sequencing.

Following this phase, the underground stope development and open pit models were
delivered to the Resources Team. Listed below are the steps performed to prepare the final
Mineral Resource and Mineral Reserve estimates for FBDM.

1. Build original wireframes using 1.0 g/t Au cut-off grade for underground and 0.4 g/t
Au cut-off grade for open pit. (Figure 14-31).

2. Estimate block grade using OK or ID2.

3. Classify blocks as Measured, Indicated, or Inferred Mineral Resources

4. Deplete mined volumes from the model by flagging blocks as “mined” and exclude
these from resource estimate.

5. Develop economic criteria, economic stopes, drifts, and open pits (Figure 14-32).

6. Complete reserve and resource estimates:

a. Underground reserves are based on stopes/drifts (1.29 g/t Au cut-off grade)
b. Underground resources are flagged outside the stopes and development drifts
(1.0 g/t Au cut-off grade shell). RPA notes the following:
i. This methodology of resource reporting only applies to the F Zone, G
Zone, LGT, Canto 2 (underground), and PPQ areas which have not
been exposed to any current or historic underground mining
operations.
ii. Resources for the MUG and EDEEP areas which have been exposed
to both current and historic underground operations are reported using
stopes and development drifts based on a $1,500 gold price. The
primary factor contributing to this methodology change in resource
reporting is due to unrealiable survey information on historic mine
workings. For this reason, Leagold has elected to only report those
resources in which they are able to confidently design stopes using
MSO.
c. Open pit resources are flagged using $1,500/oz (0.5 g/t Au cut-off grade)

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d. Open pit reserves are flagged using $1,200/oz (0.64 g/t Au cut-off grade for
Canto 1 Sul and PPQ, and 0.72 g/t Au cut-grade for Canto 2)

7. Calculate waste tonnage using volume of stopes/drifts which do not have associated
blocks and are outside the original wireframes (step 1) and multiplying them by the
appropriate bulk density value.

8. Remove pillar material which needs to remain in place from the final resource
estimate.

RPA verified reported reconciliation records supplied by Leagold on FBDM key performance
indicators (KPI) vs. Vulcan estimates from January 2018 through May 2018 (Table 14-25).
RPA shows that the overall ore tonnage varies less than 5%, grade varies by 25%, and total
ounces by 13%. In RPA’s opinion, these numbers reflect acceptable reconciliation with the
block model but warrant further investigation for the causes of the variances.

TABLE 14-25 RECONCILIATION FOR JANUARY THROUGH MAY 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

Au Grade
Reconciliation Ore Tonnage (g/t) Au Ounces
KPI 539,143 1.80 27,069
RPA Vulcan Validation 515,592 1.44 23,896
Difference 23,550 0.36 3,174
Percentage 4.6% 24.6% 13.3%

RPA considers the FBDM block model estimates to be acceptable. RPA considers the waste
tonnage calculation to be acceptable but recommends that in the future the waste volumes
should be filled with blocks with an assigned grade value of zero for reconciliation. RPA also
recognizes that there remains potential for increasing the underground resources in the MUG
area dependent upon the validation of the location of the historic mine workings and
operations. RPA recommends that an underground survey program be completed in these
areas where data is lacking.

A summary of the Mineral Resource estimate by zone as of May 31, 2018 for FBDM is
provided in Table 14-26.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 14-59
 N

G Zone
14-60

F Zone

Figure 14-31

www.rpacan.com
Leagold Mining Corporation
Fazenda Brasileiro Mine
0 100 200 300 400 500
Bahia State, Brazil
Metres
1.0 g/t Grade Shell Wireframes
for F and G Zones
November 2018 Source: RPA, 2016.
 F Pit

G Zone F Shallow Stope

G Stope

F Deep Stope
14-61

F Zone

Figure 14-32

www.rpacan.com
Leagold Mining Corporation
Fazenda Brasileiro Mine
0 100 200 300 400 500
Bahia State, Brazil
Metres
Stope and Design Pit for
F and G Zones
November 2018 Source: RPA, 2016.
 TABLE 14-26 MINERAL RESOURCE SUMMARY BY ZONE AS OF MAY 31, 2018
Technical Report NI 43-101 – November 26, 2018
Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Leagold Mining Corporation – Fazenda Brasileiro Mine

Measured Indicated Inferred

Contained Contained Contained
Orebody Tonnage Grade Tonnage Grade Tonnage Grade
Metal Metal Metal
(000) (g/t Au) (000) (g/t Au) (000) (g/t Au)
(000 oz Au) (000 oz Au) (000 oz Au)
Underground
CLX1 830 2.27 61 410 2.09 28 370 4.17 50
CLX2 360 2.57 30 120 2.85 11 0 0.00 0
Canto Carb 0 0.00 0 360 3.22 37 130 3.99 17
Canto Qtz 970 2.45 76 160 2.91 15 810 3.36 87
VQ 0 0.00 0 100 4.28 14 0 3.34 0.0
EDEEP 290 2.30 21 120 2.53 9 0 5.07 0.0
F Target 550 2.47 43 900 2.67 77 360 1.82 21
G Target 630 2.21 45 0 0.00 0 0 0.00 0
LGT Target 0 0.00 0 0 0.00 0 1,040 1.77 59
Canto 2 60 1.30 3 30 1.61 2 270 1.72 15
PPQ 0 - 0 170 1.78 10 2,270 2.56 187
Total Underground 3,700 2.35 280 2,370 2.66 203 5,260 2.58 436

Open Pit
Canto 1 Sul 20 3.85 2 0 0.00 0 0 0.00 0
Canto 2 1,150 1.53 57 0 0.00 0 0 0.00 0
LGT Target 0 0.00 0 0 0.00 0 550 1.85 33
PPQ 0 0.00 0 300 1.63 16 220 1.01 7
Total Open Pit 1,170 1.57 59 300 1.63 16 780 1.61 40

TOTAL UG + OP 4,870 2.17 339 2,670 2.55 219 6,040 2.45 476

www.rpacan. com
Notes:
1. CIM (2014) definitions were followed for Mineral Resources.
2. Mineral Resources are reported at a cut-off grade of 0.40 g/t Au for open pit and 1.0 g/t Au for underground.
3. Mineral Resources are inclusive of Mineral Reserves.
Page 14-62

4. Mineral Resources are estimated using a gold price of US$1,500 per ounce and a US$/R$ exchange rate of R$3.70 = US$1.00.
5. A minimum mining width of 1.0 m was used for underground Mineral Resources.
6. Bulk density ranges from 2.72 t/m3 to 3.00 t/m3.
7. Numbers may not add due to rounding.
 www.rpacan.com

15 MINERAL RESERVE ESTIMATE

RPA has reviewed the Mineral Reserve estimates prepared by Leagold. RPA visited the
site, met with management, and carried out a number of checks to verify the procedures and
numerical calculations used by Leagold in the preparation of the FBDM Mineral Reserve
estimate.

The Mineral Reserves were estimated using a cut-off grade of 1.29 g/t Au for underground
operations and 0.64 g/t Au to 0.72 g/t Au for open pit operations.

For underground reserves, Leagold followed a three-step process:

1. Design a reserve envelope based on Indicated Mineral Resources using a cut-off
grade of 1.29 g/t Au using the MSO mine design software package. The reserve
envelopes are composed of stopes respecting such operating factors as planned
dilution, hydraulic radius, slot raise 45o, etc.

2. Prepare a development and stoping design for each of the areas being evaluated
(declines, access drifts, ventilation raises, etc.).

3. An economic evaluation of each stope is prepared. If the cash flow is positive, the
stopes are added to the Mineral Reserve.

Table 15-1 summarizes the May 31, 2018 Mineral Reserves.

TABLE 15-1 MINERAL RESERVE SUMMARY AS OF MAY 31, 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

Tonnage Grade Contained Metal

Category
(000) (g/t Au) (000 oz Au)

Proven
Underground 1,456 1.94 91
Open Pit 1,176 1.57 59
Sub-total Proven 2,632 1.77 150

Probable
Underground 2,726 1.91 168
Open Pit 29 1.64 2
Sub-total Probable 2,756 1.91 169

Total Proven & Probable 5,387 1.84 319

Notes:
1. CIM (2014) definitions were followed for Mineral Reserves.

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Technical Report NI 43-101 – November 26, 2018 Page 15-1
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2. Mineral Reserves are reported at a cut-off grade of 1.29 g/t Au for underground and ranging
between 0.64 g/t Au and 0.72 g/t Au for open pits.
3. Mineral Reserves are estimated using an average long-term gold price of US$1,200 per
ounce and a US$/R$ exchange rate of R$3.70 = US$1.00.
4. A minimum mining width of 3.0 m was used for underground Mineral Reserves.
5. Bulk density ranges from 2.72 t/m3 to 3.00 t/m3.
6. Numbers may not add due to rounding.

RPA is not aware of any mining, metallurgical, infrastructure, permitting, and other relevant
factors which would materially affect the Mineral Reserve estimates.

Table 15-2 lists the May 31, 2018 Mineral Reserves by domain.

TABLE 15-2 MINERAL RESERVE SUMMARY BY DOMAIN AS OF MAY 31, 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

Tonnage Au Au Ounces
Category Mine Unit Domain Code
(000t) (g/t) (000 oz)
Proven
Underground CLX1 1 69 2.09 5
CLX2 2 109 2.12 7
C Canto Carb 5 0 0.00 0
Canto Qtz 6 636 1.92 39
VQ 7 0 0.00 0
Total C 814 1.97 51
CLX1 1 57 1.62 3
D
CLX2 2 0 0.00 0
Total D 57 1.62 3
CLX1 1 38 1.67 2
E
CLX2 2 194 2.13 13
Total E 233 2.05 15
CLX1 1 137 2.09 9
EW
Canto Qtz 6 0 0.00 0
Total EW 137 2.09 9
EDEEP EDEEP_CLX1 3 213 1.71 12
F F 3 2 1.25 0
Total Underground Proven 1,456 1.94 91

Open Pit Canto 1 Canto Carb 5 22 3.35 2

Canto 2 Canto Qtz 6 1,154 1.53 57
Total Open Pit Proven 1,176 1.57 59

Total Proven 2,632 1.77 150

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Tonnage Au Au Ounces
Category Mine Unit Domain Code
(000t) (g/t) (000 oz)
Probable
Underground B Canto Qtz 6 35 2.36 3
CLX1 1 139 1.86 8
CLX2 2 14 2.11 1
C Canto Carb 5 438 2.09 29
Canto Qtz 6 179 2.12 12
VQ 7 135 2.86 12
Total C 905 2.18 63
CLX1 1 0 0.00 0
D
CLX2 2 32 2.43 2
Total D 32 2.43 2
CLX1 1 137 2.08 9
E
CLX2 2 56 2.49 5
Total E 193 2.20 14
CLX1 1 430 1.67 23
EW
Canto Qtz 6 107 2.40 8
Total EW 536 1.82 31
EDEEP EDEEP_CLX1 3 69 1.72 4
F F 3 956 1.64 50
Total Underground Probable 2,726 1.91 168

Open Pit PPQ VQ 7 29 1.64 2

Total Open Pit Probable 29 1.64 2

Total Probable 2,756 1.91 169

Proven + Probable
Underground 4,182 1.92 258
Open Pit 1,205 1.57 61
FBDM Total 5,387 1.84 319

Notes:
1. CIM (2014) definitions were followed for Mineral Reserves.
2. Mineral Reserves are reported at a cut-off grade of 1.29 g/t Au for underground and ranging
between 0.64 g/t Au and 0.72 g/t Au for open pits.
3. Mineral Reserves are estimated using an average long-term gold price of US$1,200 per ounce and
a US$/R$ exchange rate of RL$3.70 = US$1.00.
4. A minimum mining width of 3.0 m was used for underground Mineral Reserves.
5. Bulk density ranges from 2.72 t/m3 to 3.00 t/m3.
6. Numbers may not add due to rounding.

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CUT-OFF GRADE
FBDM estimates the cut-off grade based upon projected budget costs and metal prices as
set by Leagold. Metal prices used by Leagold in estimating the Mineral Reserves are based
on consensus, long term forecasts from banks, financial institutions, and other sources.

Cut-off grades are estimated on a fully costed basis for the underground and an incremental
basis for open pits. The cut-off grade calculations are shown in Tables 15-3 and 15-4 for
underground and open pit mining, respectively. FBDM has assumed a gold price of
US$1,200/oz in its cut-off grade calculation. RPA has included actual 2018 YTD operating
costs.

TABLE 15-3 UNDERGROUND CUT-OFF GRADE CALCULATIONS

Leagold Mining Corporation – Fazenda Brasileiro Mine

Parameter Unit Jan-May 2018 Reserve

Au price $/oz 1,200
Au recovery % 92 90
Dilution % 15

Mining royalty % 1.5

Refining costs US$/oz 3.25

Operating Cost
Exchange Rate R$/US$ 3.38:1.00 3.70:1.00

Mine $/t 26.59 21.10

Process $/t 13.67 11.9
G&A $/t 3.92 5.25
Total $/t 44.18 38.26

Cut-off grade LOM g/t Au 1.29

The underground cut-off grade calculation includes all relevant operating costs (underground
mining, processing of the underground ore, and full site G&A) as well as sustaining
development costs.

The open pit cut-off grade calculations are summarized in Table 15-4.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 15-4
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TABLE 15-4 OPEN PIT CUT-OFF GRADE ESTIMATION

Leagold Mining Corporation – Fazenda Brasileiro Mine

Parameter Unit Jan-May 2018 Canto 1 & PPQ Canto 2

Au price $/oz 1,200 1,200
Au recovery % 92 90 80
Dilution % 20 20

Mining royalty % 1.5% 1.5%

Refining costs US$/oz 3.25 3.25

Operating Cost
Exchange Rate R$/US$ 3.38:1:00 3.70:1.00 3.70:1.00

Rehandle $/t 0.50 0.50

Ore Incremental Haul $/t 0.04 0.04
Process $/t 13.67 11.90 11.9
G&A $/t 3.92 5.25 5.25
Total $/t 17.59 17.19 17.19

Cut-off Grade g/t 0.64 0.72

The open pit cut-off grade calculation includes incremental open pit mining, processing, and
G&A costs. The consideration of incremental mining costs only is a common practice in
open pit mining as all material must be excavated and hauled from the pit. The cut-off grade
shown in Table 15-4 applies to the Canto 1 and PPQ deposits only. The Canto 2 deposit
contains a higher percentage of carbonaceous material resulting in a lower processing
recovery (80% instead of 90%). In this case, the cut-off grade is increased from 0.64 g/t Au
to 0.72 g/t Au.

In the case of both underground and open pit mining, the RPA cost parameters used in the
cut-off grade calculations are comparable to January to May 2018 actual results. The cut-off
grade estimates are therefore considered to be representative of actual conditions.

DILUTION AND EXTRACTION

The process of mining factor analysis is based on the comparison between the estimated
and actual tonnage and grades produced. This information is provided by Leagold and
presented in a series of spreadsheets on a monthly basis to determine the dilution and
recovery factors.

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For the open pits, dilution is calculated by comparing actual excavation volumes with those
predicted from the pit shell designs.

For the underground mine, the dilution is calculated by the ratio of overbreak volume and
stope ore volume. Reconciliation of planned stope tonnes to actual mined is based on
measurements taken in the mining stopes using a Cavity Monitoring Systems (CMS) and
production records.

Based on local experience, the quantity of dilution is related to the geo-mechanical properties
of the stope, as expressed as the Hydraulic Radius. This information is used in economic
analysis to optimize the stope dimensions. The stope design criteria seeks to establish the
highest recovery with the least possible dilution, with the main objective of ensuring the
stability of underground openings and to minimize unplanned dilution, beyond the use of a
slab model stope design (Figure 15-1).

The underbreak is an effective estimate of ore loss or ore recovery and overbreak is an
effective measure of ore dilution. Typical mining recovery and dilution parameters that were
applied to the Mineral Resources in the stope design process are shown in Table 15-5.

TABLE 15-5 RECOVERY AND EXTERNAL DILUTION FACTORS BY

RESOURCE AREA (UNDERGROUND)
Leagold Mining Corporation – Fazenda Brasileiro Mine

Mine
Orebody Underbreak Recovery Overbreak Dilution
Name (%) (%) (%) (%)
B 10 90 15 15
C 10 90 15 15
D 10 90 15 15
E 10 90 15 15
EW 10 90 15 15
EDEEP 10 90 18 18
F 10 90 15 15

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Technical Report NI 43-101 – November 26, 2018 Page 15-6
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E=8+f

E=8+f
B

Figure 15-1

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
Slab Model Stope Design Model
November 2018 Source: RPA, 2018.

15-7
 www.rpacan.com

MODEL RECONCILIATION
On an ongoing basis, FBDM evaluates the estimated gold content from three different
phases of mine design and planning. The first (MM) compares the estimated contained gold
in the long term model with the short term model (oz Au LT/oz Au ST). This is intended to
evaluate the quality of the two models. The second (MP) compares the estimated contained
gold in the short term model with the detailed mine planning model (oz Au Planned/oz Au
ST). This is intended to evaluate the quality of the mine plan and the planned mine recovery.
The third (MO) compares the estimated gold contained in the detailed mine planning model
with the process plant (oz Au Planned/oz Au Executed). This is intended to evaluate mining
quality control. The three comparisons are then multiplied together to generate a Mine Call
Factor (MCF) which compares actual mill feed gold content to the long term model. Monthly
results for FBDM are shown in Table 15-6.

TABLE 15-6 MONTHLY RECONCILIATION – 2017

Leagold Mining Corporation – Fazenda Brasileiro Mine

Month MM MP MO MCF
January 100% 94% 112% 105%
February 102% 96% 96% 94%
March 89% 98% 103% 90%
April 101% 97% 104% 102%
May 87% 101% 106% 93%
June 102% 96% 117% 114%
July 81% 97% 104% 82%
August 90% 97% 141% 123%
September 109% 92% 93% 94%
October 114% 93% 96% 102%
November 92% 95% 111% 97%
December 95% 98% 112% 104%

Total 101% 97% 108% 101%

Notes:
1. MM compares the estimated contained gold in the long term model with the short term model
(oz Au LT/oz Au ST).
2. MP compares the estimated contained gold in the short term model with the detailed mine
planning model (oz Au Planned/oz Au ST).
3. MO compares the estimated gold contained in the detailed mine planning model with the
process plant (oz Au Planned/oz Au Executed).
4. The three (MM, MP, MO) are then multiplied together to generate a Mine Call Factor (MCF)
which compares actual mill feed gold content to the long term model.

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Technical Report NI 43-101 – November 26, 2018 Page 15-8
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The average MCF for 2017 is 101% with the greatest variation from the MO comparison.
There are also wide monthly fluctuations in the MM comparison and consistent
underestimation of gold content in the MP comparison. RPA recommends that FBDM further
evaluate the reasons for the variations in all of the models so that appropriate changes can
be identified with the goal of improving the model predictive capability and accuracy.

RPA is of the opinion that the Mineral Reserves are being estimated in an appropriate
manner using current mining software and procedures consistent with reasonable practice.

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Technical Report NI 43-101 – November 26, 2018 Page 15-9
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16 MINING METHODS
The mining methods utilized at FBDM include conventional open pit mining, and underground
mechanized sub-level stoping. Both of these methods are well known and widely used in the
mining industry. Both methods have been in continuous use since mining operations were
initiated in 1984. The bulk of the mill feed is currently being sourced from underground. The
small open pits are being used to supplement the underground production. Annual production
for the previous three and a half years (2015 through May 2018) is presented in Table 16-1.

TABLE 16-1 FAZENDA BRASILEIRO HISTORICAL PRODUCTION

Leagold Mining Corporation – Fazenda Brasileiro Mine

Mill Feed Gold Gold Gold Gold

Year Tonnes Grade Contained Recovery Recovered
(000 t) g/t (000 oz) % (000 oz)
2015 1,172 1.87 70.6 86.3 60.9
2016 1,259 2.00 80.7 87.8 70.9
2017 1,284 1.64 67.8 89.9 61.0
2018 (May YTD) 520 1.75 29.3 92.3 27.1
TOTAL 4,234 1.89 248.5 88.5 219.8

OPEN PIT MINING

Many of the mineralized lenses outcrop to surface. Over the course of the operation’s
history, several shallow open pits have been excavated to extract these near surface
deposits. Currently, several small open pits are in operation, and mining is being completed
using contractors. Typically, these small pits are 30 m to 50 m deep and are being
developed using air-track drills and backhoe excavators for mining, and highway-type trucks
for haulage to the mill. Open pit production is a small component of total annual mill feed.
Most of the mill feed is generated from underground mining. Pit depths are dependent on
the economics of stripping overlying waste. Mineralization exceeding pit depths is
considered for underground mining.

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UNDERGROUND MINING
UNDERGROUND ACCESS
The main access to the underground operation is through a series of declines. To date, eight
main declines - the B, C, D, E, F, G, EW, and EDEEP - have been developed along the strike
of the mineralization. The B, C, D, E, and G declines have surface portals and the F decline
was developed from an underground split from the G decline. The EW and EDEEP declines
were developed from an underground split from the E decline. A main central shaft (470 m
deep) exists, however, it is no longer utilized for hoisting as the portion of the deposit located
within economic distance of the shaft has been mined out. The shaft now is utilized only as a
part of the escape way and ventilation circuit.

MINING METHOD
Underground mining employs blast hole stoping from sub-levels developed in the footwall of
the mineralization. The stoping areas are accessed initially from 5 m wide by 5.5 m high
main haulage ramps developed at 12% road grade in the footwall, which leads to primary
development crosscuts of 4.5 m wide by 5.1 m high, and secondary development drifts and
crosscuts of 4.5 m wide by 4.7 m high. Sublevels are spaced at 25 m vertical intervals.
Mined out stopes are not backfilled.

At FBDM, active stoping areas are called bodies with the following names: B, C, D, E, EW,
EDEEP, and F. All bodies have a planned dilution of 15%, except for the EDEEP, which has
a dilution of 18%. Planned mining recovery is estimated to be 90%.

From the sub-levels, access drifts are developed into the stoping areas and fan drilling of
blast holes into the mineralization is used to further define the boundaries of the
mineralization and design the ultimate blast patterns. After blasting, remote-controlled 12 t
Load-Haul-Dump (LHDs) machines are used to load and haul the ore from the stoping areas
to 25 t and 35 t articulated haulage trucks at loading points in the sub-levels.

The sub-horizontal plunge and approximate 45° dip of the orebody, combined with a
thickness of up to 40 m, results in low development and operating costs. Maximum stope
heights are 20 m. Future operations in the deeper areas of E Ramp will have higher haulage
costs that will be partially offset by the shorter underground haulage in the F and G Ramps.
To date, most of the waste rock has been hauled to surface. As noted by RPA, the disposal

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of waste rock in abandoned underground workings should be investigated, which would

reduce costs. Figure 16-1 is a schematic of the development and sub-level stoping mining
method.

HYDROGEOLOGY
The Mine produces a small amount of water and most of the pumping requirements are the
direct result of mining activities.

Mine dewatering is carried out by a series of pump stations in the main ramps extending to
the bottom of the central ventilation raise. Water is then pumped to surface through
two additional pump stations.

GROUND SUPPORT
The underground workings have good ground conditions that do not require any special
support to ensure stable openings. Development headings are typically scaled and bolted,
using a combination of hand and a single-boom scaler with rock bolts installed by single
boom bolters. Cable bolts are also used to secure the hanging wall in the rib pillar area at
the entrance of the stoping areas from the sub-levels.

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Technical Report NI 43-101 – November 26, 2018 Page 16-3
 Remote Control LHD

Articulated
Haulage Truck

Rib Pillar
16-4

Installation of vent tube, air and water

Surveying Blast Hole Drilling

Figure 16-1

www.rpacan.com
Leagold Mining Corporation
Fazenda Brasileiro Mine
Bahia State, Brazil
Typical Underground
Development and Stope Mining
November 2018 Source: WGM, 2003.
 www.rpacan.com

PRODUCTION SCHEDULE
The Life of Mine (LOM) plan was prepared by the FBDM mine planning department. FBDM
expects that, through annual development and definition diamond drilling programs, FBDM will
be successful in converting a sufficient quantity of Mineral Resources to Mineral Reserves to
replace the Mineral Reserves extracted and processed during the year. RPA concurs with
Leagold’s view on the continuity of part of resource to reserve conversion at FBDM, and the
ability of those mines to continue operating into the future.

The current LOM plan is estimated at 4.5 years (mid-2018 to end of 2022). The LOM
production schedule is presented in Table 16-2. RPA has reviewed the plan and considers it
to be reasonable and achievable based on actual historical and recent performance and
results as previously shown in Table 16-1.

TABLE 16-2 FBDM MINE PRODUCTION SCHEDULE

Leagold Mining Corporation – Fazenda Brasileiro Mine

2018
(Jun-Dec) 2019 2020 2021 2022 Total
Underground
Tonnes Mined (kt) 733 1,224 1,032 702 491 4,182
Grade (g/t Au) 2.03 1.98 2.06 1.83 1.45 1.93
Contained Gold (koz) 47.9 77.9 68.3 41.2 22.9 258.0
Open Pit
Tonnes Mined (kt) 52 135 190 321 509 1,205
Grade (g/t Au) 2.37 1.71 1.69 1.30 1.58 1.57
Contained Gold (koz) 3.9 7.4 10.3 13.4 25.8 60.8
Waste Mined (kt) 1,404 2,870 2.430 2,380 2,000 11,084
Strip Ratio 27.2 21.3 12.8 7.4 3.9 9.2
TOTAL
Tonnes Mined (kt) 785 1,359 1,222 1,023 1,000 5,387
Grade (g/t Au) 2.05 1.95 2.00 1.66 1.52 1.84

The LOM processing schedule is summarized in Table 16-3.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

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TABLE 16-3 FBDM MILL FEED SCHEDULE

Leagold Mining Corporation – Fazenda Brasileiro Mine

2018
(Jun-Dec) 2019 2020 2021 2022 Total
Mill Feed Tonnes (kt) 783 1,330 1,248 1,023 1,003 5,387
Grade (g/t Au) 2.06 1.84 2.01 1.70 1.62 1.84
Contained Gold (000 oz) 51.9 78.6 80.7 55.9 52.1 319.1
Recovery (%) 91.4 89.5 89.8 89.7 89.9 85.0
Recovered Gold (000 oz) 47.4 70.3 71.0 44.7 37.8 271.2

MINE EQUIPMENT
Decline and sub-level development is carried out using two-boom electric hydraulic jumbos
and stope drilling is performed with single-boom electric hydraulic fan jumbos. Stope
mucking is carried out with remote control 12 t LHD units. Articulated 25 t and 35 t trucks are
used for ramp haulage of both ore and waste. The mine employs an equipment monitoring
and control system located on surface that tracks and dispatches the mobile equipment to
the various workplaces as required. The mine dispatch operates with daily plans as well as
ongoing progress and availability of equipment to optimize the allocation. Table 16-4 lists the
main underground mobile production equipment.

TABLE 16-4 FBDM UNDERGROUND MINING EQUIPMENT

Leagold Mining Corporation – Fazenda Brasileiro Mine

Type Manufacturer Model Units

Truck Volvo A35C 1
Truck Scania P420 6X4 16
LHD Caterpillar R1700G 5
LHD Sandvik LH514 1
Loader Caterpillar 950H 2
Fan Drill Atlas Copco SIMBA H253 1
Fan Drill Atlas Copco SIMBA H 1254 3
Jumbo Sandvik Axera - DD320-26X 5
Scaler Getman S324N-4WD 2
Rockbolter Sandvik DS411 1

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MINE VENTILATION
The mine is primarily ventilated by a series of raises that exhaust air to surface and the
declines and shaft, which provide fresh air intake. The raises are connected to the main
ramp in the active mining areas and secondary ventilation fans and tubing are used to carry
fresh air into individual stoping areas.

During the underground site visit, RPA noted that air quality appeared to be reasonable for
an underground operation using diesel-powered mining equipment.

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17 RECOVERY METHODS
PROCESS DESCRIPTION
Production at FBDM began in 1984 using heap leaching. A conventional cyanide leaching
and CIP plant, Circuit 1, was then added in 1988 to treat the underground ore at a rate of 34
tonnes per hour (tph). In 1991, the plant was expanded by adding a second 95 tph circuit,
Circuit 2, to give a total capacity of 120 tph or approximately 960,000 tpa (2,630 tpd).
Currently, the two leaching circuits operate with pre-aeration and CIL. With improvements
made over time, the plant is capable of processing 175 tph, and approximately 1,200,000 tpa
(3,300 tpd)). The heap leach operation was discontinued sometime between 2003 and 2007.
The process flow sheet for the plant is presented in Figure 17-1 and the plant layout is shown
in Figure 17-2.

The overall process flow sheet consists of:

• Three stage crushing
• Ball mill grinding consisting of two mills in parallel, closed with cyclones
• Gravity concentration using centrifugal concentrators; treating the underflow of one
cyclone in each of the grinding cyclone clusters
• Thickening to produce a leach feed of 50% solids
• Cyanide leaching in two parallel circuits, Circuits 1 and 2
• CIL in two parallel circuits, Circuits 1 and 2
• Zadra pressure stripping of the carbon
• Intensive cyanidation of the centrifugal concentrator concentrates
• Electrowinning of the carbon eluent and gravity concentrate leach solution
• Casting of gold bars in an induction furnace

ORE DELIVERY FROM THE MINE

Ore is delivered from the underground mine using articulated 25 t and 35 t Volvo haul trucks.
The ore is dumped directly into the primary crusher feed hopper, which is equipped with a
static grizzly with 800 mm openings. A hydraulic impact hammer is used to break the large
rocks that are retained by the grizzly.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 17-1
 MINE Primary
Primary & Secondary Cyclones
Primary Double Deck Vibrating Screens Mill No. 1
Crusher
Feed Silo
Mill Feed
Silo 1
Crusher Ore Flow
Stockpile Divider
Secondary
Cyclones
Mill No. 1
Primary
Crusher Vibrating Secondary Ball Mill
Feeders Screen No. 1 Primary
Feed Bin Secondary & Tertiary Mill Cyclones
Emergency Mill Feed
Cone Crusher Stockpile Discharge Mill No. 2
Silo 2
Pumpbox 1

Loaded Carbon
Secondary
Wash Screen
Cyclones
Mill No. 2
Ball Mill
Thickener Vibrating No. 2
Overflow Screen Mill
Process Water Discharge
Tank Pumpbox 2

Tailings
Leach Feed
Cyclones
Pre-aeration & Cyanidation CIL (Carbon in Leach) Thickener
17-2

Fine Carbon
Screen Tailings Dam (Impoundment)

Centrifugal Concentrators

Sodium Cyanide Pulp (Slurry)

Sodium Hydroxide
Carbon Water
Desorption
Gold
Columns Electrowinning
Cells Activated Carbon
Carbon Thermal Gravity Concentrate
Reagents
Calcium Hydroxide Carbon Acid Regeneration Kiln Intensive Cyanidation
Wash Columns Reactor Induction
Tailings
Furnance

Gold Doré
Liquified Natural Gas
Figure 17-1

www.rpacan.com
Leagold Mining Corporation

Note: Pre-aeration, cyanidation and CIL section of flowsheet is Fazenda Brasileiro Mine
illustrative only. Please see the text for detailed description. Bahia State, Brazil
Process Flow Sheet

November 2018 Source: RPA, 2018.

 www.rpacan.com

For Tailings
Lake

Retention Pond

Tailings Tank

50.500,000

Hydrogen Peroxide

Desorption &
Electrowinning Fuel Oil Storage Tank
Hydrochloric Acid
Crushed Ore Sulphuric
Substation Acid Water Demineralization System
Stockpile and
Reclaim Tunnel

CIL Tanks
Milling Pipe Rack
Water
Substation
Lime Reservoir
Sodium Hydroxide Elevated Reservoir
Sodium (Water Tower)
Cyanide Water Pump Station

Sodium
50.400,000
Cyanide Certification Shed
Lime Storage
Lead Nitrate

Cyanide
Leach Feed Thickener Leaching

Emergency Central Plant Air

Stockpile Cyanidation & CIL

Cooling Towers
Compessors Warehouse
Ore Feed
Conveyor
Area Reserved Transfer House
Hopper

for Ore Stockpilling

Production Administration
Substation Parking
Tertiary Crushing Offices
Primary and Screening
Crushing Secondary & Tertiary Crushing

50.300,000
Office Truck Scale
Building Plant Entrance Gate

Dressing Rooms
(Dry) Security
Servise Building
Station Substation

50.200,000
11.300,000

11.400,000

11.500,000

11.600,000

11.700,000
NOTES:
1- Coordinates & elevations in metres
2- The Origin of the system of coordinates 0 25 50 75 100
has the following correspondence with Metres
the UTM system:

UTM System Project System Figure 17-2

N=8,733.00 Y=50.000
E=490.000 X=10.000
Leagold Mining Corporation
Reference Drawings:

1- Topographical Survey Plan Map

500F-17-001 and 014 Fazenda Brasileiro Mine
Bahia State, Brazil
FBDM Plant Site Layout
November 2018 Source: RPA, 2018.

17-3
 www.rpacan.com

PRIMARY CRUSHING
The ore flows from the feed hopper to a twin shaft Blake type 1,200 mm by 900 mm primary
jaw crusher with a closed side setting of 89 mm. The discharge from the primary crusher is
conveyed to a crushed ore stockpile with a nominal capacity of 19,000 t.

SECONDARY/TERTIARY CRUSHING
The crushed ore is drawn from the stockpile by two vibrating feeders, installed in a tunnel
under the stockpile, and conveyed to the secondary/tertiary crusher area. The ore is
conveyed to the primary double deck, vibrating screen. The upper deck has 30 mm
openings and the bottom deck has 12 mm openings. The oversized material from both
decks feeds a Metso HP300 secondary cone crusher with a closed side setting of 19 mm.
The secondary crusher product is conveyed to the secondary screen feed bin and then to
two secondary double deck vibrating screens operating in parallel. The upper and lower
decks of the secondary screens have 12 mm screen openings. The oversized material from
the secondary screens feeds two tertiary Metso HP200 cone crushers operating in parallel,
with closed side settings of 10 mm. The tertiary crushers operate in closed circuit with the
secondary screens, therefore, the discharge of the tertiary crushers is conveyed to the
secondary screen feed bin and to the secondary vibrating screen closing the circuit.

The -12 mm undersized material from the primary screen joins the undersize material from
the secondary screen and is conveyed through a flow divider to the grinding mill feed silos,
where a reversible conveyor distributes the ore between the two silos. There are separate
feed bins for each of the two parallel mills. The flow divider allows for bypassing material
from secondary/tertiary crushing to an emergency stockpile with a capacity of 6,000 t. The
emergency stockpile provides feed for the mills during interruptions in crusher operation,
typically for maintenance.

GRINDING
The crushed ore is drawn from the mill feed bins by belt feeders into the two overflow ball
mills operating in parallel. One ball mill is 3.8 m diameter by 7.3 m long with a 1,500 kW
drive and a capacity of 116 tph. The second mill is a 3.0 m diameter by 5.2 m long with a
635 kW drive and a capacity of 45 tph. The discharges of the ball mills are fitted with
trommel screens to remove ball chips.

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The ball mills operate at a slurry density of approximately 75% solids. The slurry discharges
into separate cyclone feed sumps. Each mill operates with a separate set of cyclones for
classification. The cyclone clusters include two dedicated cyclones that feed a portion of the
cyclone underflow slurry to the gravity concentration circuit. The cyclone feed slurry density
is controlled at approximately 50% solids resulting in a cyclone overflow density of 30%
solids and a particle size distribution of 80% passing 74 µm. The cyclone underflow slurry
will have a density of approximately 75% solids.

The ball mill work indexes of the underground and open pit ores are 16 kWh/t and 10.5 kWh/t
respectively and the ball consumption is in the range of 720 g/t.

The cyclone underflow from each set of cyclones flows to the ball mill feed chute, closing the
circuit. The overflow slurry from all of the cyclones will flow to the leach feed thickener.

GRAVITY SEPARATION
The smaller, 3.0 m diameter ball mill feeds a bank of four cyclones, with two cyclones
operating and two in reserve. The cyclone overflow flows to the leach feed thickener. A
portion of the cyclone underflow is diluted to 40% solids and feeds a centrifugal concentrator.
The balance of the underflow slurry returns by gravity to the ball mill feed chute. The larger,
3.8 m diameter mill feeds two banks of cyclones, each with one cyclone operating and three
in reserve. The cyclone underflow slurry from the first bank is diluted to 40% solids and flows
to three centrifugal concentrators operating in parallel. The underflow slurry from the second
bank returns by gravity to the 3.8 m ball mill feed. The tailings from the centrifugal
concentrators are pumped to the second bank of cyclones. The underflow returns to the ball
mill feed chute and the overflow will advance to the leach feed thickener.

The concentrate from the centrifugal concentrators is pumped to the Acacia reactor for
intensive cyanidation. The Acacia reactor is an automated system providing security for the
processing of gravity gold concentrates. The concentrate is leached for twelve hours at
54°C, in a solution of 2.5% sodium cyanide and 1.5% sodium hydroxide to recover the gold.
The pregnant Acacia leach solution is then pumped to a storage tank in the refinery area in
preparation for electrowinning.

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THICKENING
The cyclone overflow slurry is pumped to a horizontal vibrating screen for the removal of
trash and other impurities. The screen underflow flows by gravity to a 32 m diameter leach
feed thickener where it is diluted to 15% solids, flocculent is added and directed into the
thickener feed well. The thickener underflow slurry density is controlled to approximately
50% solids using density measurement and variable speed underflow pumps. The underflow
slurry is then pumped to the cyanide leach tanks. The thickener overflow solution flows to
the process water tank for distribution to the processing facilities, including the grinding
circuit for use as dilution water.

LEACHING AND CARBON-IN-LEACH (CIL)

The thickener underflow slurry is pumped to two parallel trains of leach and CIL tanks.

Train 1 consists of six 350 m3 leach tanks in series, followed by six 110 m3 CIL tanks in
series. Leach tanks 1 through 3 are being used for pre-aeration, to oxidize sulphides in order
to reduce cyanide consumption. Lime is added and air is sparged into the tanks during pre-
aeration. Cyanide is added to tank 4 to begin leaching and carbon is transferred to tanks 5
and 6 from the former CIP circuit to operate as CIL tanks. The six tanks are now operating
as CIL tanks, though no air is sparged into the tanks. In summary, Train 1 consists of three
aeration, one leach, two 350 m3 CIL, and six 110 m3 CIL tanks.

Train 2 consists of eight 500 m3 leach tanks in series followed by six 350 m3 CIL tanks.
Similar to Train 1, leach tanks 1 through 3 are pre-aeration, tank 4 is a leach tank, where
cyanide is being added, and leach tanks 5 through 8 are CIL tanks. The six tanks are
operating as CIL tanks. In summary, Train 2 consists of three pre-aeration tanks, one leach
tank, four 500 m3 CIL tanks, and six 350 m3 CIL tanks.

Each leach circuit, including pre-aeration, leaching, and CIL is designed for a total retention
time of 32 hours. The leach configuration is intended to address two issues: sulphide
minerals, especially pyrrhotite, and naturally occurring carbon in the ore. The pre-aeration
tanks will oxidize weakly bound sulphur that would combine with cyanide during leaching to
form thiocyanate, CNS, increasing cyanide consumption. Lime added during pre-aeration
would react with the free sulphur to form calcium sulphate. The CIL tanks are intended to
address the presence of naturally occurring carbon, which could adsorb some of the gold

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cyanide that is formed during leaching. The activated carbon, which is added as part of the
CIL process, has a higher affinity for the gold cyanide and will load it in preference to the
natural carbon, so activated carbon is added during the leaching process to compete with the
natural carbon. Any gold loaded onto the natural carbon will be lost as it is very fine grained
and will not be captured by the carbon retention screens.

The activated carbon is added to the last downstream tank in the CIL circuits and transferred
from tank to tank counter current to the slurry flow. The carbon is loaded to approximately
800 g/t Au. Loaded carbon is pumped from the first CIL tank to the loaded carbon wash
screens. The carbon passes over the screen and is collected in portable carbon transfer
bins. The carbon is transferred to the absorption, desorption and refining (ADR) circuit for
desorption and regeneration, while the screen underflow slurry returns to the first CIL tank.

Process controls in the leaching circuit include analyzers for both pH and cyanide
concentration.

CARBON ELUTION
The gold is eluted from the carbon using the pressure Zadra process. The process treats the
carbon in four tonne batches.

The first step of the process is acid washing, which removes impurity metals and scaling
compounds such as calcium carbonate and sodium silicate from the carbon prior to elution.
The carbon is added to a four tonne capacity acid wash column. The column is then filled
with a 3% hydrochloric acid solution and allowed to soak for 30 minutes. Fresh water is then
added to displace the acid solution, wash, and neutralize the carbon prior to transferring it to
one of two, four tonne capacity carbon elution columns.

The carbon is contacted with an upward flow of solution containing 0.2% sodium cyanide and
2.0% sodium hydroxide at a temperature of 140°C and a pressure of 360 kPa. The solution
is circulated through the elution column to elute gold from the carbon, then through a heat
exchanger, where the solution is cooled to 80°C, and then on to the pregnant eluent tank.
The solution is then pumped through electrowinning cells operating at a current density of
0.05 A/cm2 and the gold is plated out on stainless steel cathodes. The barren solution is
then pumped to the barren solution tank, where the cyanide and caustic concentrations are

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adjusted. The barren solution is then pumped through a heat exchanger to raise the
temperature back to 140°C and recirculated through the elution column, completing the
circuit. The solution is circulated in this manner for 16 to 18 hours at a flow rate of two bed-
volumes per hour. The gold concentration in the eluent is monitored and when it reaches 5
mg/L, the elution process is stopped. The carbon is then discharged from the column, over a
carbon dewatering screen, and into the barren carbon storage bin ahead of the carbon
regeneration kiln. The barren solution is then pumped to the head of the CIL circuit.

CARBON REGENERATION
The barren carbon is reactivated in a horizontal gas fired rotary kiln operating at 720°C. The
hot carbon exiting the kiln is cooled in a quench tank and screened to remove carbon fines.
The carbon fines report to the tailings. The regenerated carbon is then transferred to the CIL
circuit to be reloaded. The capacity of the carbon regeneration kiln is 300 kg/h.

CYANIDE DESTRUCTION
The slurry leaving the last CIL tank passes through a carbon safety screen to recover fine
carbon and then flows to the cyanide detoxification circuit. The detoxification circuit consists
of four, 40 m3 mixed tanks in series. A mixture of sodium meta-bisulphite and copper
sulphate is added to the slurry to destroy the cyanide, and lime is added to control the pH.
The target for cyanide destruction is less than 10 ppm WAD cyanide.

ELECTROWINNING AND DORE CASTING

The carbon eluent and the pregnant gold solutions from the Acacia intensive cyanidation
reactor are processed by electrowinning. The solutions are circulated though electrowinning
cells and the gold in solution is plated out onto stainless steel cathodes. Once the cathodes
are loaded, the cathodes are removed from the cells and the gold is washed from the
cathodes with high pressure water. The resulting gold mud is filtered and then dried in a
drying oven. The dried mud is then mixed with fluxes and melted in an electric induction
furnace at 1,200°C to produce gold doré bars for sale. The doré from the leaching circuit
typically assays 86% gold, and the doré from the gravity and intensive cyanidation circuit
typically assays 90% gold.

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TAILINGS
There are four geomembrane-lined tailings impoundments, or “lakes” at FBDM. Lakes 1, 2,
and 3 are full and Lake 4 is currently in operation. The CIL tailings slurry is pumped to Lake
4. The tailings form beaches and the clear solution percolates to a low point collection area,
from which it is pumped back to the process water tank in the process plant. The water
balance is managed to maintain water freeboard levels as low as possible.

REAGENT STORAGE AND MIXING

SODIUM CYANIDE
Sodium cyanide is received in tanker trucks as a 33% aqueous solution. The solution is
transferred to storage tanks where it is diluted to 25% for storage and distribution to
hydrometallurgy. The sodium cyanide concentration in the leach tank solution is maintained
at 600 ppm NaCN resulting in a specific NaCN consumption of approximately 700 g
NaCN/tonne ore.

SODIUM HYDROXIDE
Sodium hydroxide is received in tanker trucks as a 50% aqueous solution. Sodium
hydroxide is used to elute gold in the carbon desorption solutions, to neutralize the activated
carbon after acid washing and to neutralize the waste acid wash solutions. The specific
consumption of sodium hydroxide is approximately 100 kg/t ore.

HYDROCHLORIC ACID
Hydrochloric acid is delivered in tanker trucks as a 33% aqueous solution. Hydrochloric acid
is primarily used in the acid washing of carbon. The specific consumption is approximately
50 kg/t ore.

HYDRATED LIME
Hydrated lime is delivered as a solid powder in one tonne bags. The lime is then mixed with
water to form a 5% milk of lime solution. Lime is used to control the pH in the leach circuits.

MINERAL PROCESS PLANT PRODUCTION STATISTICS

Table 17-1 presents key operating parameters and performance indicators for FBDM
processing facilities for year-end 2016, 2017, and January to May 2018.

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TABLE 17-1 FBDM PROCESSING OPERATING PARAMETERS (2016 TO MAY

2018)
Leagold Mining Corporation – Fazenda Brasileiro Mine

Operating Parameter Description 2016 Actual 2017 Actual 2018 Jan to

May Actual
Mine Production, Total tpa 1,215,826 1,241,791 539,143
Open Pit 107,896 91,782 44,938
Underground 1,107,930 1,073,169 494,205
Mill Production, tpa 1,258,599 1,283,562 519,843
Production Rate, tph 161 164 157
Grinding Availability, % 92 95 95
Grinding Utilization, % 97 96 96
Overall Efficiency% 90 96 88
Grind Particle Size P80, µm 74 74 74
Gold Head Grade, g/t 2.0 1.64 1.75
Overall Recovery, % Au 87.8 90.0 92.3
NaCN Consumption, kg/t 0.64 0.61 0.67
Grinding Media, kg/t 0.67 0.67 0.76
Lime, kg/t 1.51 1.81 1.76
Power, kWh/t 51 52.3 54.1
Carbonaceous ore blend, % Max 10 10 10
Plant Unit Operating Costs, US$/t 13.10 13.35 13.67

Ore was primarily supplied from the FBDM underground operation. In addition, open pit
provided 8.9% of the production in 2016, 7.6% in 2017, and 8.3% to May 2018.
Carbonaceous ore is not a common problem at the mine, however, when it is encountered, it
is blended to a maximum of 10% of the total plant feed. The FBDM cyanide leaching circuit
includes a CIL section to protect against losses due to naturally occurring carbon.

The capacity of the FBDM process plant is limited by the grinding circuit, which is capable of
consistently processing the FBDM mine ore at a rate of 158 tph, which, with an availability of
91%, would result in annual production of 1,260,000 t. The production rate in 2017 was
higher at 1,283,562, with an average production rate of 164 tph and availability of 95%. The
mill is generating similar numbers in 2018 with a production rate of 157 tph and a grinding
availability of 95%. Production at FBDM is primarily affected by ore supply from the mine and
plant availability due to maintenance. Figure 17-3 is a plot of the budgeted versus actual
production for 2017 and the first five months of 2018. The mill was available consistently
throughout the 17-month period.

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FIGURE 17-3 JANUARY 2017 TO MAY 2018 FBDM MILL PRODUCTION,

BUDGETED VS. ACTUAL

140.0

120.0

100.0
Prodution, t

80.0

60.0

40.0

20.0

-
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Actual, kt 111. 101. 90.0 106. 97.6 104. 118. 117. 111. 112. 98.6 113. 116. 100. 96.0 97.8 109.
Budget, kt 108. 97.7 108. 105. 95.4 105. 108. 102. 105. 108. 105. 108. 113. 101. 113. 109. 113.

Figure 17-4 is a plot of budgeted and actual gold recovery and gold head grade for 2017 and
the first five months of 2018. The gold recovery was 90.0% in 2017 and 92.3% for the first
five months of 2018. Gold recovery was consistent for the period, typically above 90% and
above budget. Recovery generally follows gold grade, with lags that may indicate variations
in in-process gold inventory.

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FIGURE 17-4 GOLD RECOVERY AND GOLD GRADE FOR JANUARY 2017 TO
MAY 2018
96% 2.50

94%
2.00
92%
Gold Recovery, %

90%

Gold Grade, g/t

1.50

88%

1.00
86%

84%
0.50
82%

80% -
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Actual, % 90% 90% 90% 87% 91% 89% 91% 88% 90% 92% 89% 94% 92% 94% 93% 92% 91%
Budget, % 89% 88% 87% 88% 89% 89% 87% 89% 88% 86% 87% 87% 89% 91% 91% 91% 90%
Gold Grade, g/t 1.87 1.59 1.57 1.43 1.67 1.71 1.27 1.56 1.95 1.54 1.85 1.75 1.52 1.84 1.68 2.07 1.71

Figure 17-5 shows the reagent consumptions in January 2017 to May 2018. Cyanide
consumption was consistent throughout the period with an average usage of 0.61 kg/t in
2017 and 0.67 kg/t in 2018. Grinding media consumption was also consistent with an
average of 0.67 kg/t in 2017 and 0.76 kg/t in 2018. Lime consumption ranged from 1.56 kg/t
to 2.57 kg/t during the period with an average of 1.81 kg/t in 2017 and 1.76 in 2018.

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FIGURE 17-5 REAGENT CONSUMPTIONS IN JANUARY 2017 TO MAY 2018

3.00

2.50
Reagent Consumption, kg/t
2.00

1.50

1.00

0.50

-
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May
NaCN, kg/t 0.70 0.56 0.62 0.54 0.52 0.42 0.48 0.60 0.59 0.74 0.85 0.69 0.61 0.68 0.63 0.87 0.58
Grinding Media, kg/t 0.59 0.66 0.90 0.70 0.71 0.63 0.74 0.59 0.86 0.59 0.33 0.74 0.58 0.65 0.78 0.90 0.91
Lime, kg/t 1.98 1.56 2.57 1.97 2.23 1.51 1.62 1.42 1.36 1.94 1.99 1.82 1.81 1.74 1.74 2.12 1.40

Figure 17-6 presents the unit power consumption in January 2017 to May 2018. Power
usage ranged from 45.9 kWh/t to 64.2 kWh/t and averaged 52.3 kWh/t in 2017 and 54.1 in
the first five months of 2018.

FIGURE 17-6 POWER CONSUMPTION IN JANUARY 2017 TO MAY 2018

70.0

60.0
Power Consumption, kWh/t

50.0

40.0

30.0

20.0

10.0

0.0
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Power, kWh/t 52.8 58.7 59.8 50.9 57.7 52.5 45.9 48.6 46.0 49.2 60.9 49.0 52.5 53.3 49.1 64.2 52.1

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Figure 17-7 presents the plant unit operating costs in January 2017 to May 2018. The
average unit operating cost was US$13.35/t in 2017 and US$13.67/t for the first five months
of 2018.

FIGURE 17-7 PLANT UNIT OPERATING COSTS IN JANUARY 2017 TO MAY

2018

20.00

18.00
Process Operating Costs,US$/t ore

16.00

14.00

12.00

10.00

8.00

6.00

4.00

2.00

-
Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar Apr May
Actual, US$/t 12.4 13.5 15.7 13.2 17.1 12.6 12.3 14.0 13.1 13.0 13.1 10.6 12.2 13.3 16.2 15.0 11.9
Budget, US$/t 12.2 12.8 14.5 12.8 15.3 13.0 12.2 12.6 13.9 12.3 12.9 12.8 13.4 14.0 13.2 13.9 13.2

In RPA’s opinion, the mineral processing facilities are operating consistently and efficiently.
The Mine has been near the anticipated end of its life for many years, so maintenance has
been optimized. During the previous visit in 2016, RPA noted that the physical structures
required maintenance and in some areas replacement. Progress has been made to repair
and upgrade structural steel and tankage in the conveying, grinding, and CIL areas.

RPA understands that the open pit ore contains carbonaceous material, which may result in
reduced recoveries. Currently, open pit carbonaceous ore is blended with the underground
ore to reduce the carbonaceous content of the plant feed to less than 10%.

The grinding circuit is operating under its design rate of 175 tph, at an average of 164 tph in
2017 and 157 tph during the first months of 2018, so there should be some excess capacity,
allowing to meet the required product particle size for cyanide leaching.

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RPA finds, based on the operating reports, that the gravity circuit is effective, with four
centrifugal concentrators operating in the primary cyclone underflow. The concentrate is
pumped to the Acacia reactor in a locked building. The Acacia system operates
automatically and the leach solution is pumped directly to the electrolyte storage tank in the
refinery area. FBDM reports that the gravity recovery is in the 40% range.

The two parallel leach circuits are now being operated in two stages, pre-aeration and CIL.
The former CIP circuit is being operated, along with tanks 5 to 8 of the leach circuit, as a
continuous CIL circuit. Close attention is being given by FBDM to the presence of sulphide
and carbonaceous ore, which is the reason that the pre-oxidation and CIL stages are being
optimized.

Sufficient water supplies are available for all mill and mine requirements.

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18 PROJECT INFRASTRUCTURE
INFRASTRUCTURE
FBDM has been operational for 34 years and has all the necessary roads, powerlines,
access, medical facilities, and surrounding communities that provide workers and services
that one would expect to find in one of the state’s major employers.

Teofilândia is a full service town and along with the Mine has access to electricity from the
national power grid. There is a freight-only rail line, which passes through the area in a
northwest-southeast direction close to the mine. The rail line is not used by the mine.

ACCESS ROADS
The Mine is located in the municipality of Barrocas in northeastern Bahia state. The Mine
can be accessed from Salvador (population approximately 2.7 million) by way of
approximately 180 km of paved road. The Mine is accessible by air and by road. Locally,
the Mine is accessed by a 12 km graded road from Teofilândia (population approximately
20,000).

TAILINGS DAM
There are four geomembrane-lined tailings impoundments, or “lakes”, at FBDM. Lakes 1, 2,
and 3 are full, and Lake 4 is currently in operation. The tailings slurry is pumped to Lake 4
and is spiggoted around the periphery of the Lake 4 tailings impoundment for better
distribution. The tailings form beaches and the clear solution percolates to a low point
collection area from which it is pumped back to the process water tank in the process plant.
The water balance is managed to maintain water freeboard levels as low as possible.

ELECTRICAL POWER SUPPLY

The power requirement for the FBDM and site facilities is approximately 8 MW, which is
supplied by the local grid. Figure 17-6 presented the unit power consumption for January
2017 to May 2018. Power usage ranged from 45.9 kWh/t to 64.2 kWh/t and averaged 52.3
kWh/t in 2017 and 54.1 kWh/t in the first five months of 2018.

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WATER SUPPLY
Water is supplied by a series of well fields with a total production capacity of 480 m3/h. The
water is supplied through a 10 in. diameter, 36.3 km long pipeline and supplies local
municipalities, communities, and FBDM. The aquifer is reported to be very large, therefore,
water supply appears to be secure.

SITE FACILITIES
Mine, administration, and process facilities are well established and include:
• 470 m vertical shaft
• Series of underground ramps
• CIL milling and processing facility
• Lined heap leach pads and associated process equipment
• Geomembrane-lined tailings disposal ponds
• Warehouse
• Maintenance shops
• Drill core logging, splitting and storage facilities
• Assay laboratory
• Cafeteria
• Helipad for emergency use and shipment of gold bullion
• Office complexes
• Water system consisting of a well field located east of Teofilândia, a buried pipeline
and water pumping system to provide potable and processing water to Teofilândia
and the mine
• Fuel station
• Explosive magazine

WORKFORCE ACCOMMODATION
The town of Teofilândia serves as the main community for workers at the Mine although a
smaller village is located between Teofilândia and the mine. The local population base is
approximately 20,000; the vast majority of whom live in Teofilândia. The general area of the
exploration properties is inhabited largely by subsistence farmers and garimpeiros (artisanal
miners).

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SECURITY
The process plant, mines, and dams are surrounded by a security fences to restrict access.
The main entrance has a manned gatehouse, and security staff to ensure the security of the
site, explosives, and accessories depots, as well as provide protection during gold pours.
Gold product is stored in a safe until it is transported off-site.

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19 MARKET STUDIES AND CONTRACTS

MARKETS
The principal commodity at FBDM is gold and is freely traded, at prices that are widely
known, so that prospects for sale of any production are virtually assured. RPA used a gold
price of US$1,200 per ounce for the estimation of Mineral Reserves.

CONTRACTS
FBDM has a large number of contracts in place, which is not uncommon for a typical mining
operation located in Brazil. The terms of the various contracts are within Brazilian Law. The
number of contractors is 271. This large number is explained by the use of multiple small
local companies. FBDM prioritizes sourcing goods and services through local suppliers, and
thereby contributing to the sustainable economic development of local communities.

The primary service contracts are summarized in Table 19-1. The Monthly Spend is the
actual average value for 2017 based on an exchange rate of US$1 = R$3.19. In RPA’s
opinion, these costs are within reasonable ranges.

TABLE 19-1 MONTHLY PRIMARY SERVICE CONTRACT EXPENDITURES

(2017)
Leagold Mining Corporation – Fazenda Brasileiro Mine

Monthly Spend
Contracts
(US$ 000)
Operational Contractors 760
Energy 391
Maintenance Contractors 111
Operational Services 63
Refining/Transport/Insurance 61
Maintenance Services 41

FBDM has contracts for various mine consumables; the average monthly expenditures for
the primary items for 2017 are listed in Table 19-2 based on an exchange rate of US$1 =
R$3.19. In RPA’s opinion, these costs are also within reasonable ranges.

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TABLE 19-2 MONTHLY CONSUMABLE EXPENDITURES (2017)

Leagold Mining Corporation – Fazenda Brasileiro Mine

Monthly Spend
Description (US$ 000)
Mobile Equipment Spare Parts 322
Diesel 228
Explosives 171
Cyanide 143
Other Equipment Spare Parts 133
Tires 90
Steel Grinding Balls 64

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20 ENVIRONMENTAL STUDIES, PERMITTING,

AND SOCIAL OR COMMUNITY IMPACT
INTRODUCTION
FBDM has a comprehensive environmental policy, partially inherited from the Yamana and
CVRD operations. This policy has been developed in line with the Plan of Recovery of
Degraded Area Document (PRAD) as outlined by the relevant authority. The PRAD was
prepared for FBDM by Mineral Engenharia e Meio Ambiente, an external consulting firm.
The environmental authorities in Brazil use the PRAD as a commitment for the company to
complete the rehabilitation required for mine closure.

The guidelines are, in essence, re-vegetation of the areas with native species, coverage of
the pits or conversion of the pits for storing water, along with stabilization and rehabilitation of
waste dumps and tailings dams. The demolition and removal of all structures and facilities
that will not be used in the future is also included. A summary of the items developed in the
PRAD are presented below.

ENVIRONMENTAL LICENSING
The Brazilian Environmental Policy was created in 1981 (law no 6938/81). Based on this
policy, the Resolution CONAMA 01/86 defined the nature of the studies required for
permitting the different types of activities which have the potential to cause environmental
impacts. FBDM currently has several licences and water permits. These permits were
issued by the Environmental Resources Centre through processes in the Environmental
State Board.

The permits currently effective at FBDM are tabulated in Table 20-1 and summarized below.

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Technical Report NI 43-101 – November 26, 2018
Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

TABLE 20-1 FBDM MINING PERMIT STATUS

Leagold Mining Corporation – Fazenda Brasileiro Mine

Document Description Certificate Process Granting Expiry Status

Number Number Date Date

Licence to operate Dwellings and INEMA 2013.001.000486/INEMA/ 16/08/2014 17/08/2022 ACTIVE

wastewater treatment for wastewater treatment 8.143/2014 LIC-000486
housing in Teofilândia for mine workforce

Water Withdrawal Permit Grant for use of INEMA 2011-001492/OUT/ RENOV- 28/12/2013 29/12/2017 IN RENEWAL
resource water – 6.616/2013 0217
Biritinga

Operating Permit Operating Permit for INEMA 2014.001.000549/INEMA/LIC- 03/04/2016 03/04/2018 IN RENEWAL
Mine, Mineral 11.387/2016 00549
Processing Facilities,
Waste Rock Storage
and Tailings Dam

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• The new integrated operating permit for mining, mineral processing, waste rock
storage, and tailings management facilities was issued in 2016.

• Operating permit for wastewater treatment plant for company housing in Teofilândia.

• Grant for use of groundwater at Biritinga.

FBDM has been operating for over 34 years and therefore all relevant permits have been in
place for this period. There are no identified environmental liabilities associated with the
tenements.

LAND USE
The site currently occupies an area of 1,181 ha which belongs to FBDM. If it is required to
use a third party area, a contract is formalized for land use with royalty payments according
to the production in that area. The contract also specifies that the company has the
responsibility for reclamation of that area.

Figure 20-1 shows the legal reserve areas near the current infrastructure. These are
protected areas that are not allowed to be disturbed by mining activities.

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39°5'30" W 39°3'51" W
11°26'27" S

N
11°27'41" S

0 200 400 600 800 1000

Metres
Coordinate System: GCS SIRGAS 2000
Datum: SIRGAS 2000

Figure 20-1

Legend: Leagold Mining Corporation

Tailings Storage Facility
Legal Reserve Fazenda Brasileiro Mine
Bahia State, Brazil
Legal Reserve Areas
November 2018 Source: RPA, 2016.

20-4
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ENVIRONMENTAL IMPACTS AND MITIGATION ACTIONS

The FBDM mining unit currently has an environmental control plan in place that was
developed before the operation started. All the impacts generated are monitored and
addressed as required. The impacts to be mitigated during the closure phase of the project
were also addressed in the closure plan update prepared by Mineral Engenharia e Meio
Ambiente.

The programs contemplated in the environmental control plan are:

• Environmental Management System
• Environmental Education Program
• Erosive Processes Prevention and Control Program
• Liquid Effluents Control Program
• Fauna and Flora Control Program
• Degraded Areas Rehabilitation Program
• Solid Residues Management Program
• Surface Waters Quality Monitoring Program
• Hydrogeological Monitoring Program
• Atmospheric Emissions and Air Quality Monitoring Program
• Noise and Vibration Monitoring and Control Program

SOCIOECONOMICS
The environmental impact assessment (EIA) identified the main impacts that will be
generated by the FBDM closure in the socioeconomic area such as unemployment,
decreased tax revenues, end of demand for local regional suppliers, reduction in personal
income, and the end of projects with the local communities. A summary of these impacts is
presented in Table 20-2.

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TABLE 20-2 SOCIOECONOMIC IMPACTS ASSOCIATED WITH MINE CLOSURE

Leagold Mining Corporation – Fazenda Brasileiro Mine

Mitigation
Impact Frequency Severity Coverage Nature
possibility
Unemployment Probable High Regional Negative Mitigable
Termination of tax collection Probable High Regional Negative Non mitigable
End of the demand for
Probable High National Negative Mitigable
suppliers
Income decrease Probable High Regional Negative Mitigable
End of the projects with the
Probable Medium Regional Negative Non mitigable
community

The unemployment could potentially be mitigated by the relocation of individual workers to

other Leagold operations. The nearest Leagold site is located at Santa Luz. The relocation
to other mining projects and other mining companies within the state is also a possibility.

The loss of tax revenue income is irreversible in the short and medium terms because there
are no prospective new enterprises scheduled, or planning in the FBDM Project’s area of
influence. The services and materials suppliers will have to look for new clients and Santa
Luz may present an opportunity for them. The reduction of personal income can be partially
offset with the implementation and support of sustainable projects within the communities
and educational training of the people before the project closure.

The end of the projects involving the community partnership program can be mitigated by
intensifying the investments in projects during the pre-closure phase (2018 to 2022). This
investment support has the objective of developing the autonomy and the sustainability of
these projects, mainly in the generation of employment and income.

MINE CLOSURE REQUIREMENTS

The estimated closure costs for the FBDM Mine are presented in Table 20-3.

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TABLE 20-3 ESTIMATED MINE CLOSURE COSTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

Total
Closure
(R$000)
Closure study 1,450
Canto II open pit and waste piles reclamation 4,049
Closure of open pit Corpo EW 12
Closure of the open pit “Cava da Barragem” 169
Tailings facility reclamation 29,905
Sealing and closure of portal G 806
Sealing and closure of portal FW Oeste 1,187
Closure of the open pit Cava Corpo F 8,789
Closure of the open pit Cava Canto 1 Sul 6,329
Closure of the open pit Cava Canto 2 Sul 1,026
Closure of the open pit Cava Pau-a-Pique PPQ03 1,365
Closure of the open pit Cava Pau-a-Pique PPQ14 1,200
Closure of the open pit Corpo Sul 4,147
Closure of the open pit Cava Lagoa do Gato – LG3 1,029
Topographic contouring of waste dumps 1,851
General revegetation 4,467
CIL plant, heap leach pads, and shop decommissioning 7,397
Revegetation Maintenance 914
UG mine stabilization and closure 925
Soil and water monitoring 5 years after closure 978
Total (Closure) 77,995

Note. Numbers may not add due to rounding.

At an exchange rate of R$3.70 = US$1.00, the total closure costs are estimated at US$21.08
million.

ACID ROCK DRAINAGE EVALUATION

A detailed acid rock drainage (ARD) evaluation of the FBDM tailings was carried out in 2012.
A total of 57 samples of tailings were collected from the three, existing tailings facilities and
analytical results showed that almost 100% of samples presented a neutralization potential
two times higher than the acid generating potential. Figure 20-2 shows the acid-base
accounting of these samples.

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FIGURE 20-2 ACID BASE ACCOUNTING CHARACTERIZATION

180
160
NP (Neutralization Potential)

NP/AP=2
140
120
tCaCO3/1000t

100
80
NP/AP=1
60
40
20
0
0 10 20 30 40 50 60 70 80
AP (Acidity Potential) tCaCO3/1000t

These results showed that although sulphides such as arsenopyrite, pyrite, and pyrrhotite are
present in the mineralogy of the site, the presence of carbonates are proportionately well in
excess of the amount of these sulphides. From these results it is possible to conclude that
ARD generation will not be a significant risk for the FBDM operation and closure. In addition,
these three tailings facilities have geosynthetic liners to prevent seepage from the
impoundments.

Although the risks of ARD generation are controlled by the natural presence of carbonates in
the mineralogy of the waste rocks, it is still possible to find some elevated arsenic
concentrations in the water from the tailings dam ponds, according to the water monitoring
campaigns carried out throughout the 34 years at the FBDM site. According to these results,
consultants have recommended that the arsenic mobility should be controlled after the
closure stage in order to avoid potential contamination of the surrounding areas.

In order to address the mitigation methods for this potential ARD issue, the Leagold staff
working with consultants developed a field procedure to test different types of tailings covers
which could effectively prevent surface water and precipitation from having contact with the
tailings. The most successful of the procedures is shown in a cut-away view of a field
lysimeter implemented as shown in Figure 20-3.

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Twelve months of testing of these barriers was carried out from 2013 to 2014. The results
from these tests showed that a cover layer with 30 cm of oxide material from an exhausted
heap leach pad combined with a capillarity break layer of 15 cm is sufficient to prevent the
infiltration of water through the cover and into the tailings. It was possible to identify also that
the grass grew in the top layers of the soil barrier cover without any problems.

Implementing a cover layer with this configuration should gradually decrease the arsenic
concentrations in the dam’s toe drain discharge water since the amount of water in contact
with the tailings will decrease significantly after the cover implementation.

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Figure 20-3

Leagold Mining Corporation

Fazenda Brasileiro Mine

Bahia State, Brazil
Field Lysimeter Design
November 2018 Source: RPA, 2016.

20-10
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21 CAPITAL AND OPERATING COSTS

CAPITAL COSTS
The 2015, 2016, 2017 and 2018 (January to May) actual sustaining capital costs for FBDM
are presented in Table 21-1. The R$/US$ exchange rate was 3.33:1 in 2015, 3.49:1 in 2016,
3.19:1 in 2017, and 3.38:1 for 2018 (January to May).

The LOM plan sustaining, non sustaining capital cost and closure cost estimate totals $61.1
million as shown in Table 21-2. These costs are based on a R$/US$ exchange rate of 3.7:1.

TABLE 21-1 ACTUAL SUSTAINING CAPITAL COSTS - 2015 TO MAY 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

2015 2016 2017 Jan to May 2018 Total

Description (US$ M) (US$ M) (US$ M) (US$ M) (US$ M)
Buildings & Infrastructure 0.967 0.632 0.615 0.195 2.409
Machinery & Equipment 3.094 6.134 4.504 2.586 16.317
UG Mine Development 6.560 7.462 4.130 1.035 19.187
Mineral Properties 0.436 0.213 0.649
Technical Studies 0.003 0.359 0.361
Tailings Dam Maintenance 1.393 1.393
Total 10.623 15.980 9.685 4.029 40.317

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TABLE 21-2 PROJECTED CAPITAL COSTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

2018 (Jun 2023 and

to Dec) 2019 2020 2021 2022 Beyond Total
Description (US$ M) (US$ M) (US$ M) (US$ M) (US$ M) (US$ M) (US$ M)
Sustaining Capital
Buildings & Infrastructure 0.254 0.809 0.151 0.129 1.343
Machinery & Equipment 0.888 0.888
UG Mine Development 2.469 7.875 2.931 3.546 1.500 18.320
OP Mine Development 1.935 1.933 1.365 5.233
Vehicles 0.173 0.080 0.253
Tailings Dam Expansion 0.357 3.400 1.714 5.471
Sub-Total sustaining 6.076 14.097 4.447 5.389 1.500 0 31.508

Non-sustaining
Machinery & Equipment 2.354 3.185 1.885 7.424
UG Mine Development 0.783 0.783
Exploration 0.299 0.299
Sub-Total Non-sustaining 3.436 3.185 1.885 0 0 0 8.506
Closure & Reclamation 0.100 1.243 1.919 3.650 2.650 11.520 21.082
Total 9.612 18.525 8.251 9.039 4.150 11.520 61.096

OPERATING COSTS
Actual operating costs for 2015, 2016, 2017, and 2018 January to May are presented in
Table 21-3. Unit operating costs for the three and one half year period averaged $39.45/t
milled including mining, milling and general and administration costs, as presented in Table
21-4. The average R$/US$ exchange rate for the three-year period was 3.34.

TABLE 21-3 ACTUAL OPERATING COSTS – 2015 TO MAY 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

2015 2016 2017 Jan to May 2018 Total

Activity (US$ M) (US$ M) (US$ M) (US$ M) (US$ M)
Open Pit Mining 1.886 3.218 4.096 2.091 11.291
Underground Mining 22.007 22.554 26.183 11.733 82.476
Milling 14.624 16.593 17.142 7.109 55.467
General & Administration 4.294 6.299 5.162 2.035 17.791
Total 42.810 48.663 52.582 22.968 167.024

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TABLE 21-4 ACTUAL UNIT OPERATING COSTS – 2015 TO MAY 2018

Leagold Mining Corporation – Fazenda Brasileiro Mine

2015 2016 2017 Jan to May 2018 Average

Activity (US$/t milled) (US$/t milled) (US$/t milled) (US$/t milled) (US$/t milled)
Open Pit Mining 1.61 2.56 3.19 4.02 2.67
Underground Mining 18.78 17.92 20.40 22.57 19.48
Milling 12.48 13.18 13.35 13.67 13.10
General & Administration 3.66 5.00 4.02 3.92 4.20
Total 36.53 38.66 40.97 44.18 39.45
Exchange Rate (R/USD) 3.33 3.49 3.19 3.38 3.34

As shown previously in Table 16-2, the FBDM operation is scheduled to extract 12.3 Mt of
material from the various open pits during the 2018 to 2022 LOM plan, including 1.2 Mt of ore
and 11.1 Mt of waste rock. As previously shown in Table 16-3, a total of 5.4 Mt is scheduled
to be processed in the mill during the 2018 to 2022 LOM plan.

Total operating costs for the FBDM LOM plan (2018 to 2022) of $197.3 million are detailed
by year in Table 21-5.

TABLE 21-5 PROJECTED TOTAL OPERATING COSTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

2018
(Jun-Dec) 2019 2020 2021 2022 Total
Activity (US$M) (US$M) (US$M) (US$M) (US$M) (US$M)
Open Pit Mining 1.1 4.2 3.9 5.4 4.9 19.5
Underground Mining 15.6 26.7 21.8 15.0 10.0 89.1
Milling 8.5 14.4 13.5 11.1 10.9 58.4
General & Administration 5.3 6.3 6.3 6.3 6.2 30.3
Total 30.5 51.7 45.5 37.7 31.9 197.3

Projected unit operating costs for this mill feed are shown in Table 21-6. The LOM plan
estimated unit operating cost averages $36.6/t milled. Operating costs are based on planned
operating metrics and recent actual results, modified to reflect a projected R$/US$ exchange
rate of 3.7.

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TABLE 21-6 PROJECTED UNIT OPERATING COSTS

Leagold Mining Corporation – Fazenda Brasileiro Mine

2018 2019 2020 2021 2022 Average

(Jun-Dec) (US$/t (US$/t (US$/t (US$/t (US$/t
Activity (US$/t milled) milled) milled) milled) milled) milled)
Open Pit Mining 1.4 3.2 3.1 5.3 4.9 3.6
Underground Mining 19.9 20.1 17.4 14.6 10.0 16.5
Milling 10.8 10.8 10.8 10.8 10.8 10.8
General & Administration 6.7 4.7 5.0 6.2 6.2 5.6
Total 38.9 38.8 36.4 36.9 31.8 36.6

MANPOWER
The total FBDM workforce in 2018 includes 649 employees and 271 contractors.

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22 ECONOMIC ANALYSIS
Under NI 43-101 rules, “producing issuers”, as that term is defined in NI 43-101 may exclude
the information required for Section 22 Economic Analysis on properties currently in
production, unless the technical report includes a material expansion of current production.
RPA notes that Leagold is a producing issuer, FBDM is currently in production, and a
material expansion is not being planned at this time. RPA has performed an economic
analysis of FBDM using the estimates presented in this Technical Report and confirms that
the outcome is a positive cash flow that supports the statement of Mineral Reserves.

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23 ADJACENT PROPERTIES
There are no adjacent properties relevant to the FBDM Mine properties.

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24 OTHER RELEVANT DATA AND

INFORMATION
No additional information or explanation is necessary to make this Technical Report
understandable and not misleading.

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25 INTERPRETATION AND CONCLUSIONS

Based on the site visits, discussions with FBDM personnel, and available information, RPA
offers the following conclusions.

GEOLOGY AND MINERAL RESOURCES

• RPA has reviewed the FBDM Mineral Resource estimates dated May 31, 2018 and is
of the opinion that the parameters, assumptions, and methodology used are
appropriate for the style of mineralization.

• The geological model employed by Leagold is well understood, and it is well

supported by field observations in both outcrop and drill core.

• Sampling and assaying have been carried out using industry standard QA/QC
practices. These practices include, but are not limited to, sampling, assaying, chain
of custody of the samples, sample storage, use of third-party laboratories, standards,
blanks, and duplicates.

• Interpretations of the geology and the 3D wireframes of the estimation domains

derived from these interpretations, appear to be reasonable.

• The resource model has been prepared using appropriate methodology and
assumptions, including:
o Treatment of high grade assays;
o Compositing length;
o Search parameters;
o Bulk density;
o Cut-off grade; and
o Classification.

• The block model has been validated using a reasonable level of rigour consistent with
common industry practice.

• Mineral Resources for FBDM comply with all disclosure requirements for Mineral
Resources as set out in NI 43-101.

• Exploration potential exists laterally along strike to the north and south and at depth
below the existing FBDM operations. The area has seen 40 years of extensive
geologic exploration along the mineral trend and has successfully identified additional
underground and open pit resources that are in various stages of mine development.
This exploration success is anticipated to continue into the future, but will include
some deeper targets.

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MINING AND MINERAL RESERVES

• The mining methods utilized at FBDM include both conventional open pit mining, and
underground mechanized sub-level stoping. These methods are appropriate for the
deposit.

• Proven and Probable Mineral Reserves for the Mine, as of May 31, 2018, total 5.4
million tonnes (Mt) grading 1.84 g/t Au, containing 319,000 oz of gold.

• The bulk of the mill feed is being sourced from underground. Small open pits are
used to supplement the underground production. Total mining capacity is
approximately 3,300 tpd.

• Five separate declines originate on surface and access the various orebodies over a
strike length of several kilometres. The deepest level for underground workings is the
-750 RL.

• The underground workings have good ground conditions that do not require any
special support to ensure stable openings.

• The LOM mining and processing schedules are based on Mineral Reserves only.

• The Mineral Reserve estimates have been prepared using appropriate methodology
and assumptions including:
o Dilution;
o Mining extraction;
o Ground conditions;
o Access development;
o Stope design;
o Extraction sequence;
o Productivities;
o Operating costs;
o Sustaining capital costs.

• Through annual development and definition diamond drilling programs, FBDM has
been successful in converting a sufficient quantity of Mineral Resources to Mineral
Reserves to replace the Mineral Reserves extracted and processed during the year.
This conversion of Mineral Resources to Mineral Reserves has been repeated
annually for more than a decade.

RPA is of the opinion that the Mineral Reserves are being estimated in an appropriate
manner using current mining software and procedures consistent with reasonable
practice.

METALLURGICAL TESTWORK AND MINERAL PROCESSING

• The mineral processing facilities are operating well, are performing close to projected
ore throughput and gold production levels, and are keeping up with mining rates. The
gold grades are expected to decrease in the future, and an increased production rate
along with the successful discovery of higher-grade material as a result of continued

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exploration drilling will be required to compensate for a decrease in the mined head
grade.

• The plant facilities require some refurbishment as well as normal maintenance. The
structural steel in the grinding, leaching, and acid wash circuits is showing significant
deterioration due to corrosion. Maintenance work includes replacement of the
structural steel on a periodic basis and over several years during normal operations.
Maintenance work including refurbishment of equipment and structures will be a high
priority in the future.

• The pre-aeration circuit is configured for processing sulphide and carbonaceous ores.
The leach circuit has been converted to allow pre-aeration for sulphide oxidation
followed by CIL, which then flows into the former CIP circuit, which is now operated
as an extension of the CIL circuit. More carbonaceous ores are expected in the
future.

ENVIRONMENTAL ASPECTS
• FBDM has a comprehensive environmental policy, partially inherited from Yamana
and CVRD operations. This policy has been developed in line with the PRAD as
outlined by the relevant Brazilian authority. The environmental authorities in Brazil
use the PRAD as a commitment for the company to complete the rehabilitation on
mine closure.

• FBDM is an established gold mine with a 34-year history and an established track
record with the Brazilian and Bahia state government regulatory agencies. The
operation has all relevant permits in place along with management plans and
monitoring programs. The permits require periodic renewal. Applications have been
submitted to the appropriate agencies for the permits nearing expiration. The water
discharge and withdrawal permits are under renewal and are valid during the renewal
approval process.

• A detailed ARD evaluation of the tailings was carried out in 2012. A total of 57
samples of tailings were collected from the three existing tailings facilities and almost
100% of samples presented a neutralization potential two times higher than the acid
generation potential.

• The arsenopyrite and pyrrhotite in the tailings facilities have low potential to become
future ARD generators, as the proportion of carbonates is well in excess of the
amount of the sulphides. FBDM has developed a field procedure to test different
types of tailings covers which, when implemented, will reduce the amount of
contaminants in the dam's toe drains by preventing water runoff and precipitation
from having contact with the tailings.

SOCIAL ASPECTS
• FBDM has developed an exemplary and creditable program for social and community
involvement in the area of the FBDM operations, which should be maintained for the
life of the mine.

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• The main socioeconomic impacts that will be generated by the FBDM closure include
unemployment, decreased tax revenues, end of demand for local regional suppliers,
reduction in personal income, and the end of projects with the local communities.
FBDM has developed mitigation measures for some of these impacts.

CAPITAL AND OPERATING COSTS

• The LOM plan capital cost estimate includes sustaining capital expenditures, followed
by closure and reclamation. The capital cost of these activities is estimated to total
US$61.1 million and is based on a R$/US$ exchange rate of 3.7.

• LOM plan operating costs are estimated to total US$197.3 million, which averages
US$36.6 per tonne milled.

RISKS
• FBDM has been in production since 1984 and is a mature operation. In RPA’s
opinion, there are no significant risks and uncertainties that could reasonably be
expected to affect the reliability or confidence in the exploration information, mineral
resource or mineral reserve estimates, or projected economic outcomes.

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26 RECOMMENDATIONS
RPA makes the following recommendations:

MINERAL RESOURCE ESTIMATE

• Geologic Model (Leapfrog)
o Ensure that Hanging Wall and Footwall points are properly assigned to the
individual wireframes to eliminate or reduce the number of “gaps” in the
wireframe.
o Compress controlling boundaries and eliminate pinch outs to allow for better
modelling of grade continuity across lithologies.
o Set minimum mining thickness to 1.0 m.
o Clip or remove all isolated one-hole based wireframes or include them within the
main controlling boundary.

• Block Model
o If wireframes are built using a specific lithology code, ensure that all blocks within
the wireframe are assigned the same number.
o Ensure that all wireframes (triangulations) are properly closed and validated,
including mine design shapes.
o Reduce parent block size of underground models from 10 m by 10 m x 1 m to 2 m
x 2 m x 2m with sub-blocks set to a minimum size of 1 m x 1 m x 0.5 m to reduce
smoothing of local grade variabilities.

• Interpolation Parameters
o Ensure that the search ellipsoids are properly aligned along the geometric
orientations (strike, dip, and plunge) of the wireframe or use dynamic anisotropy
search to minimize horizontal striping of grades.

• Mineral Resources
o Ensure the waste volumes that do not have a grade are filled with blocks with an
assigned grade value of zero for reconciliation.
o Complete an underground survey program on the unsurveyed mine workings in
the MUG area.

MINING AND MINERAL RESERVES

• The average Mine Call Factor (MCF) for 2017 is 101% with the greatest variation
from the detailed mine planning model versus process plan (MO) comparison. There
are also wide monthly fluctuations in the long term versus short term model (MM)
comparison and consistent underestimation of gold content in the short term model
versus mine planning (MP) comparison. RPA recommends that FBDM further
evaluate the reasons for the variations in all of the models so that appropriate
changes can be identified with the goal of improving the model predictive capability
and accuracy.

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MINERAL PROCESSING
• The plant facilities require refurbishment as well as normal maintenance. Leagold
should perform refurbishment work in critical areas including grinding, leaching, CIL,
carbon acid washing and elution circuit.

• Leagold should continue work in optimizing the CIL circuit and test any new ore types
that will be processed in the future, especially ores containing significant amounts of
carbon.

ENVIRONMENTAL ASPECTS
• ARD generation has been associated with pyrrhotite, pyrite, and arsenopyrite in some
of the metallurgical testing at FBDM, potentially resulting in increasing acidity within
the tailings facilities over an extended period of time (years and decades). However,
the arsenopyrite and pyrrhotite in the FBDM tailings ponds have low potential to
become future ARD generators, as the proportion of carbonates is well in excess of
the amount of the sulphides. An ongoing measurement and monitoring program
would allow this risk to be minimized.

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27 REFERENCES
Alves da Silva, F.C., Chauvet, A., and Faure, M., 1998, General Features of the Gold
Deposits in the Rio Itapicura Greenstone Belt (RIGB, NE Brazil, Discussion of the Origin
Timing and Tectonic Model. Revista Brasileira de Geociencias, 28, pp. 377-390.

Coelho, C.E.S., & Silva, F.H.F.,1998, The Structural Control of the Gold Deposits of the
Fazenda Maria Preta Gold District at Rio Itapicuru Greenstone Belt, Northeastern Brazil
Revista Brasileira de Geosciências. 28 (3): 367-376.

Coffey Consultoria e Serviҫos Ltda, 2014, Independent Technical Report on Mineral

Resources and Mineral Reserves in the Fazenda Brasileiro Gold Mine, Bahia State,
Brazil, prepared for Yamana Gold Inc., July 31, 2014.

Higa, J., 2012, New Economic Exploitation Plan for MFB MultiGeo Private Report to
Yamana, portions translated from Portuguese. November 23, 2012.

Pulz, G.M., Jost, H., Giuliani, G., and Michel, D., 1994, Multistage gold deposition in the
Archean Maria Lázara gold deposit (Goias, Brazil), in Mineralium Deposita, v. 29, Issue
1, pp. 94-97.

Pulz, G.M., Jost, H., Giuliani, G., and Michel, D., 1991, Maria Lázara gold deposit (Goias
State, Brazil): An Example of intense fluid/rock interaction associated with a triple point
structure, in Source, Transport and Deposition of Metals, Pagel & Leroy (editors) 1991
Balkema, Rotterdam, pp. 117-118.

Reinhardt, M.C., Davison, I., 1990, Structural and lithologic controls on gold deposition in the
shear zone-hosted Fazenda Brasileiro Mine, Bahia state, northeast Brazil, in Economic
Geology, v. 85, pp. 952-967.

Roscoe Postle Associates Inc., 2016, Technical Report on the Fazenda Brasileiro Mine,
Bahia State, Brazil, a NI 43-101 Report prepared by Michaud, R.L., Moore, C.M., and
Hampton, A.P., for Brio Gold Inc., May 12, 2016.

Roscoe Postle Associates Inc., 2015, Technical Report on the Fazenda Brasileiro Mine,
Bahia State, Brazil, a NI 43-101 Report prepared by Michaud, R.L., Moore, C.M., and
Hampton, A.P., for Brio Gold Inc., August 21, 2015.

Soares, L.M., and Rodriguez, P.C., 2014. Independent Technical Report on Mineral
Resources and Mineral Reserves in the Fazenda Brasileiro Gold Mine, Bahia State,
Brazil. Prepared by Coffey Consultoria e Serviços Ltda on behalf of Yamana Gold Inc.

Teixeira, J.B.G., Kishida, A., Marimon, M.P.C., Xavier R.P., McReath, I., 1990, The Fazenda
Brasileiro Gold deposit, Bahia geology, hydrothermal alteration, and fluid inclusion
studies, in Economic Geology, v. 85, pp. 990-1009.

Watts, Griffis and McOuat Limited, 2003, A Technical Review of the Fazenda Brasileiro Gold
Mine and Adjacent Exploration Property in Bahia State, Brazil for Santa Elina Mines
Corporation - July 2003 (Internal Report)

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Xavier,R.P., Foster, R.P., 1999, Fluid evolution and chemical controls in the Fazenda Maria
Preta (FMP) gold deposit, Rio Itapicuru Greenstone Belt, Bahia, Brazil, in Chemical
Geology, v. 154, Issues 1-4, pp. 133-154.

Yamana, 2015a, QA/QC Yamana Gold: Fazenda Brasileiro-MFB Mine – Brazil - Annual
QA/QC Report – January 2015 to October 2015 (Internal Report)

Yamana, 2015b, QA/QC Yamana Gold: Laboratório da Mineração Fazenda Brasileiro - MFB
– Brasil, Relatório de QA/QC – Janeiro/2012 a Dezembro/2014 (Internal Report)

Yamana, 2015c, QA/QC Yamana Gold: Fazenda Brasileiro-MFB Mine – Brazil - Annual
QA/QC Report – January 2014 to December 2014 (Internal Report)

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28 DATE AND SIGNATURE PAGE

This report titled “Technical Report on the Fazenda Brasileiro Mine, Bahia State, Brazil”, and
dated November 26, 2018 with an effective date of May 31, 2018 was prepared and signed
by the following authors:

(Signed and Sealed) “Mark B. Mathisen”

Dated at Lakewood, CO
November 26, 2018 Mark B. Mathisen, CPG
Principal Geologist

(Signed and Sealed) “Hugo M. Miranda”

Dated at Lakewood, CO
November 26, 2018 Hugo M. Miranda, MBA, ChMC (RM)
Principal Mining Engineer

(Signed and Sealed) “Robert L. Michaud”

Dated at Lakewood, CO
November 26, 2018 Robert L. Michaud, P.Eng.
Associate Principal Mining Engineer

(Signed and Sealed) “Andrew P. Hampton”

Dated at Lakewood, CO
November 26, 2018 Andrew P. Hampton, P.Eng.
Associate Principal Metallurgist

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29 CERTIFICATE OF QUALIFIED PERSON

MARK B. MATHISEN
I, Mark B. Mathisen, CPG, as an author of this report entitled “Technical Report on the
Fazenda Brasileiro Mine, Bahia State, Brazil” prepared for Leagold Mining Corporation dated
November 26, 2018 with an effective date of May 31, 2018, do hereby certify that:

1. I am Principal Geologist with RPA (USA) Ltd. of Suite 505, 143 Union Boulevard,
Lakewood, Co., USA 80228.

2. I am a graduate of Colorado School of Mines in 1984 with a B.Sc. degree in Geophysical

Engineering.

3. I am a Registered Professional Geologist in the State of Wyoming (No. PG-2821) and a

Certified Professional Geologist with the American Institute of Professional Geologists
(No. CPG-11648). I have worked as a geologist for a total of 20 years since my
graduation. My relevant experience for the purpose of the Technical Report is:
• Mineral Resource estimation and preparation of NI 43-101 Technical Reports.
• Director, Project Resources, with Denison Mines Corp., responsible for resource
evaluation and reporting for uranium projects in the USA, Canada, Africa, and
Mongolia.
• Project Geologist with Energy Fuels Nuclear, Inc., responsible for planning and
direction of field activities and project development for an in situ leach uranium project
in the USA. Cost analysis software development.
• Design and direction of geophysical programs for US and international base metal
and gold exploration joint venture programs.

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI
43-101) and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the FBDM property on June 21 and 22, 2018.

6. I am responsible for Sections 7 to 12 and 14 and related disclosure in Sections 1, 25, 26,
and 27 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical
Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance with
NI 43-101 and Form 43-101F1.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 29-1
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10. At the effective date of the Technical Report, to the best of my knowledge, information,
and belief, the Technical Report contains all scientific and technical information that is
required to be disclosed to make the Technical Report not misleading.

Dated this 26th day of November, 2018.

(Signed and Sealed) “Mark B. Mathisen”

Mark B. Mathisen, CPG

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 29-2
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HUGO M. MIRANDA
I, Hugo M. Miranda, ChMC (RM), as an author of this report titled “Technical Report on the
Fazenda Brasileiro Mine, Bahia State, Brazil” prepared for Leagold Mining Corporation dated
November 26, 2018 with an effective date of May 31, 2018, do hereby certify that:

1. I am Principal Mining Engineer with RPA (USA) Ltd. of 143 Union Boulevard, Suite 505,
Lakewood, Colorado, USA 80228.

2. I am a graduate of the Santiago University of Chile, with a B.Sc. degree in Mining

Engineering in 1993, Santiago University, with a Masters of Business Administration
degree in 2004 and Colorado School of Mines with a Master of Engineering (Engineer of
Mines) in 2015.

3. I am registered as a Competent Person of the Chilean Mining Commission (ChMC),

Registered Member #0031. I have worked as a mining engineer for a total of 21 years
since my graduation. My relevant experience for the purpose of the Technical Report is:
• Principal Mining Engineer - RPA in Colorado. Review and report as a consultant on
mining operations and mining projects. Mine engineering including mine plan and pit
optimization, pit design and economic evaluation.
• Mine Planning Chief, El Tesoro Open Pit Mine - Antofagasta Minerals in Chile
• Open Pit Planning Engineer, Radomiro Tomic Mine, CODELCO – Chile.
• Open Pit Planning Engineer, Andina Mine, CODELCO - Chile.
• Principal Mining Consultant – Pincock, Allen and Holt in Colorado, USA. Review and
report as a consultant on numerous development and production mining projects.

4. I have read the definition of "qualified person" set out in National Instrument 43-101 (NI
43-101) and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the MFB property on June 21 and 22, 2018.

6. I am responsible for overall preparation of the Technical Report and for Sections 2 to 6,
23 and 24 and related disclosure in Sections 1, 25, 26 and 27.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have had no prior involvement with the property that is the subject of the Technical
Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance with
NI 43-101 and Form 43-101F1.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 29-3
 www.rpacan.com

10. At the effective date of the Technical Report, to the best of my knowledge, information,
and belief, the Technical Report contains all scientific and technical information that is
required to be disclosed to make the technical report not misleading.

Dated this 26th day of November, 2018.

(Signed and Sealed) “Hugo M. Miranda”

Hugo M. Miranda, MBA, ChMC (RM)

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 29-4
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ROBERT L. MICHAUD
I, Robert L. Michaud, P.Eng., as an author of this report entitled “Technical Report on the
Fazenda Brasileiro Mine, Bahia State, Brazil” prepared for Leagold Mining Corporation and
dated November 26, 2018 with an effective date of May 31, 2018, do hereby certify that:

1. I am Associate Principal Mining Engineer with RPA (USA) Ltd. of Suite 505, 143
Union Boulevard, Lakewood, Colorado, USA 80228.

2. I am a graduate of Queen’s University in 1976 with a B.Sc. Degree in Mining

Engineering. I am a graduate of Queen’s University in 1977 with a M.Sc. Degree in
Mining Engineering.

3. I am registered as a Professional Engineer in the Provinces of Ontario (31570013)

and Quebec (37287). I have worked as a mining engineer for a total of 376 years
since my graduation. My relevant experience for the purpose of the Technical Report
is:
• Operations management of several underground mines;
• Project management of the construction and start-up of several underground
mines;
• Management numerous mine designs and technical studies.

4. I have read the definition of "qualified person" set out in National Instrument 43-101
(NI 43-101) and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the FBDM property on March 17, 2015.

6. I am responsible for Sections 15, 16, 19, 21, and 22 and related disclosure in
Sections 1, 25, 26, and 27 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have previously prepared Technical Reports dated August 21, 2015 and May 12,
2016, on the property that is the subject of this Technical Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance
with NI 43-101 and Form 43-101F1.

10. At the effective date of the Technical Report, to the best of my knowledge,
information, and belief, the Technical Report contains all scientific and technical
information that is required to be disclosed to make the Technical Report not
misleading.

Dated this 26th day of November, 2018.

(Signed and Sealed) “Robert L. Michaud”

Robert L. Michaud, P.Eng.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 29-5
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ANDREW P. HAMPTON
I, Andrew P Hampton, P.Eng., as an author of this report entitled “Technical Report on the
Fazenda Brasileiro Mine, Bahia State, Brazil” prepared for Leagold Mining Corporation and
dated November 26, 2018 with an effective date of May 31, 2018, do hereby certify that:

1. I am an Associate Principal Metallurgist with Roscoe Postle Associates Inc. of Suite

501, 55 University Ave Toronto, ON, M5J 2H7.

2. I am a graduate of Southern Illinois University in 1979 with a B.S. Degree in Geology,

and a graduate of the University of Idaho in 1985, with an M.S. Degree in
Metallurgical Engineering.

3. I am registered as a Professional Engineer in the Province of British Columbia,

Licence No. 22046. I have worked as an extractive metallurgical engineer for a total
of 27 years since my graduation. My relevant experience for the purpose of the
Technical Report is:
• Process plant engineering, operating and maintenance experience at mining and
chemical operations, including the Sunshine Mine, Kellogg, Idaho, Beker
Industries Corp, phosphate and DAP plants in Florida and Louisiana respectively,
and the Delamar Mine in Jordan Valley Oregon.
• Engineering and construction company experience on a wide range of related,
precious metal projects and studies, requiring metallurgical testing, preliminary
and detailed design, project management, and commissioning and start-up of
process facilities and infrastructure. EPCM companies included Kilborn
Engineering Pacific Ltd., SNC Lavalin Engineers and Constructors, Washington
Group International Inc. and Outotec USA, Inc.

4. I have read the definition of "qualified person" set out in National Instrument 43-101
(NI 43-101) and certify that by reason of my education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, I fulfill the
requirements to be a "qualified person" for the purposes of NI 43-101.

5. I visited the FBDM property on March 17, 2015.

6. I am responsible for preparation of Sections 13, 17, 18, and 20 and related disclosure
in Sections 1, 25, 26, and 27 of the Technical Report.

7. I am independent of the Issuer applying the test set out in Section 1.5 of NI 43-101.

8. I have previously prepared Technical Reports dated August 21, 2015 and May 12,
2016, on the property that is the subject of this Technical Report.

9. I have read NI 43-101, and the Technical Report has been prepared in compliance
with NI 43-101 and Form 43-101F1.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 29-6
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10. At the effective date of the Technical Report, to the best of my knowledge,
information, and belief, the Technical Report contains all scientific and technical
information that is required to be disclosed to make the Technical Report not
misleading.

Dated this 26th day of November, 2018.

(Signed and Sealed) “Andrew P. Hampton”

Andrew P. Hampton, P.Eng.

Leagold Mining Corporation – Fazenda Brasileiro Mine, Project #2997

Technical Report NI 43-101 – November 26, 2018 Page 29-7