Blue Moon, USA

Blue Moon, USA

The Company is focused on the advanced stage 100% owned Blue Moon zinc-silver project. The Blue Moon project is subject to a NI 43-101 Mineral Resource estimate with with approximately 3.5 million tons with a grade of 11.07% zinc equivalent for approximately 431 million pounds of zinc, 53 million pounds of copper, 0.2 million ounces of gold and 5 million ounces of silver in the Indicated category and 3.8 million tons with a grade of 10.71% zinc equivalent for approximately 455 million pounds of zinc, 45 million pounds of copper, 0.2 million ounces of gold and 6 million ounces of silver in the Inferred category. The resource is open at depth and along strike and has favourable metallurgy. A NI 43-101 report detailing the resource is available here and was filed on SEDAR on November 27, 2023. A long section of the 2018 drill program can be found here. The Company plans to advance the project to feasibility and permitting.

The Blue Moon Deposit is located in east central California within Mariposa County in the Foothills. The property is accessible by gravel roads off nearby paved highway. There are active mines in the region and was part of the original California gold rush.

The main transmission lines and a hydroelectric power generation facility are both within one mile of the property. Sea ports, rail and trucking routes are all accessible. It’s a three hour drive to the Oakland port and a 4 hour drive to Reno, Nevada.

Mining by Hecla Mining Company during 1943-1945 produced 55,656 tons grading 12.3% zinc, 0.36% copper, 0.48% lead, 3.75 oz/ton silver and 0.062 oz/ton gold. The property was actively explored and advanced by Imperial Metals, Boliden and Lac Minerals (now Barrick) in the 1980s and 1990s.

Review, verification and analysis of the historical data has provided a NI 43-101 compliant resource estimate of the polymetallic massive sulphide deposit at its Blue Moon project. The technical report was co-authored by Scott Wilson and Thomas Henricksen. The resource estimate estimated by Scott Wilson at Blue Moon has been classified as indicated and inferred.

For resource calculation purposes, it has been assumed that the Blue Moon Deposit would likely be mined by underground methods. The results of the resource estimate are as follows:

NI 43-101 Mineral Resource Estimate(*):
Blue Moon Indiciated and Inferred Mineral Resources:
Cutoff Tons > Grade > Cutoff Contained Metal (Millions)
Category ZnEq Cutoff Zn Cu Ag Au Pb ZnEq lbs lbs lbs ozs ozs
% (Mtons) % % oz/t oz/t % % Zn Cu Pb Ag Au
Indicated 4 3.5 6.14 0.75 1.54 0.05 0.24 11.07 431 53 17 5 0.2
Inferred 4 3.8 5.94 0.59 1.56 0.05 0.34 10.71 455 45 26 6 0.2

Exploration Upside
Remodelling of the deposit using the digitized data shows the deposit is open both to depth and to the south. The potential to expand the current resources is considered excellent.

Metal Prices and Estimated Recoveries (Metallurgy)
As the Blue Moon is a multi-variable deposit with all variables contributing to the economic value a method of combining the grades into one variable was required. The parameters used were as follows:

Zinc – $1.45/pound – 95% Recovery
Copper – $3.75/pound – 93% Recovery
Lead – $0.95/pound – 95% Recovery
Silver – $23.00/ounce – 65% Recovery
Gold – $1,800.00 /ounce – 70% Recovery

The zinc equivalent equation is as follows:
ZnEq = (Zn%*27.55 + Cu%*69.75 + Pb%*18.05 + Ag(oz/t)*14.95 + Au(oz/t)*1,260)/ 27.55

Recoveries used in the calculation are based on metallurgical testing of drill core undertaken by Lakefield Research (now SGS) on samples of mineralization.

The NI 43-101 report was produced by Scott Wilson, CPG, and Thomas Henricksen, QP, who are Qualified Persons as defined by NI-43-101 and are responsible for the technical material related to the resource calculation. The NI 43-101 report is available on our website and filed on SEDAR on November 28, 2023.

Jonathan Gagne, P. Eng, is a qualified person as defined by NI 43-101, has reviewed the scientific and technical information that forms the basis for our website. Mr. Gagne is not independent of the Company.

Cautionary Statement on Forward-Looking Statements
Information set forth in this summary contains forward-looking statements that are based on assumptions as of the date of this summary. These statements reflect management’s current estimates, beliefs, intentions and expectations. They are not guarantees of future performance. The Company cautions that all forward looking statements are inherently uncertain and that actual performance may be affected by a number of material factors, many of which are beyond their respective control. Such factors include, among other things: risks and uncertainties relating to each of the Company’s limited operating history and the need to comply with environmental and governmental regulations. Accordingly, actual and future events, conditions and results may differ materially from the estimates, beliefs, intentions and expectations expressed or implied in the forward looking information. Except as required under applicable securities legislation, Blue Moon undertakes no obligation to publicly update or revise forward-looking information.

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