Loyalist Exploration Limited (CSE: PNGC) has released additional grade-tonnage sensitivity information for the 2026 Mineral Resource Estimate (MRE) on its 100%-owned Tully Gold Project in the Timmins Gold Camp of northeastern Ontario. The data, derived from the independent Technical Report prepared by P&E Mining Consultants Inc., will factor into the Preliminary Economic Assessment (PEA) currently underway. The PEA will evaluate potential underground mining scenarios, including the impact of different cut-off grades and mining constraints on recoverable material. The grade-tonnage table, available in the original release on www.newmediawire.com, reports the sensitivity of the underground MRE when constrained by a 1.1 g/t Au cut-off and 1.25 metre minimum mining width stopes.
The sensitivity analysis is based on mineralized material within stope shapes generated at a base-case 1.1 g/t Au cut-off and 1.25-metre minimum mining width, and is presented for illustrative purposes only. It does not constitute a new or updated MRE. The base-case MRE, as reported in the Technical Report, consists of an Indicated Mineral Resource of 1.62 million tonnes grading 3.16 g/t Au containing 164,000 ounces of gold, and an Inferred Mineral Resource of 0.95 million tonnes grading 2.03 g/t Au containing 62,000 ounces of gold.
The release of this sensitivity data matters because it provides investors and analysts with a clearer view of how the Tully resource responds to higher cut-off grades, which is critical for assessing the project's potential economics. According to the company, the data “illustrates how the resource responds to higher cut-off grades within the stope shapes generated at the base-case 1.1 g/t Au cut-off and 1.25-metre MMW, and highlights the presence of a higher-grade core that remains robust even at elevated cut-offs.” This suggests that a meaningful portion of the resource could be mined at higher grades, potentially improving margins and reducing dilution in an underground scenario. The company stated that this information will help evaluate different underground mining scenarios and optimize the approach to the PEA, and that it continues to view Tully as a high-quality asset with a solid resource base and clear development potential.
For those seeking detailed figures, Table 1: Tully Gold Project – Sensitivities of Underground Mineral Resource Estimate presents grade-tonnage sensitivities for the underground MRE using a range of reporting cut-off grades from 1.0 to 3.0 g/t Au. The sensitivity analysis is based on the mineralized material within the stope shapes generated using a 1.1 g/t Au cut-off grade and a minimum mining width of 1.25 metres. Figures may not add due to rounding.
The PEA is being prepared by P&E and will evaluate potential underground mining scenarios, including the impact of different cut-off grades and mining constraints on recoverable material. The scientific and technical information in the release was reviewed and approved by Curtis Ferron, P.Geo., and Eugene Puritch, P.Eng., both independent Qualified Persons under NI 43-101. The MRE and sensitivity data were prepared by Charles Spath, M.Sc., P.Geo., and Eugene Puritch of P&E. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The PEA is at an early stage, and there is no assurance that it will be completed on the timeline or terms currently contemplated, or that its results will be positive. The company's forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
