Snowline Gold Announces Results of Preliminary Economic Assessment for Its Valley Gold Deposit, Rogue Project, Yukon

Published: 2025-06-24 10:25:55 ET SGD.V

Published on 06/24/2025 at 10:25

VANCOUVER - SNOWLINE GOLD CORP. (TSXV: SGD) (OTCQB: SNWGF) (the 'Company' or 'Snowline') is pleased to announce results from its Preliminary Economic Assessment ('PEA' or the 'Study') for its Valley gold deposit ('Valley') on its 100%-owned Rogue Project in Canada's Yukon Territory.

The PEA is a conceptual study of the potential economic viability of Valley's mineral resources and the first economic assessment of any kind on the broader Rogue Project. The Rogue Project and broader infrastructure work considered by this PEA overlaps with Traditional Territories of the First Nation of Na-Cho Nyak Dun, the Ross River Dena Council and Kaska Nation.

The PEA envisions a conventional open pit mining and milling operation for Valley with a projected 20-year LOM producing 6.8 million ounces (Moz) of payable gold with a front-weighted production profile and attractive economic parameters.

'This PEA reinforces our conviction that Valley can become a world class mining operation developed at a high standard, with clear potential to bring significant economic benefits to the Yukon,' said Scott Berdahl, CEO & Director of Snowline. 'The rare combination of high margins and large scale makes for a robust asset with stability through a wide range of market conditions. The low strip ratio and strong gold grades enhance project economics by increasing mining efficiency while reducing the overall project footprint.'

AISC are the sum of operating costs, off-site costs, 1% NSR payments, sustaining capital costs and progressive reclamation costs (C$13M), divided by payable gold ounces produced. AISC excludes closure costs and any post-closure costs.

Based on an exchange rate of 1.40 CAD per 1.00 USD.

Sensitivities apply to the financial model only; pit selection, cut-off grade and processing schedules remain based on a US$1,950/oz gold price and would likely be redesigned to optimize for significantly higher or significantly lower gold price scenarios.

'These results are a testament to the quality of the Valley deposit and to the hard work of Snowline's team. In less than four years, we've gone from soil sampling and Valley's first drill holes to a significant conceptual NPV. This serves as an important milestone as we continue to press forward on multiple fronts to efficiently and responsibly move Valley forward. Multiple field studies to support advanced technical studies are now underway on site, alongside environmental baseline work to inform future assessment and permitting. Combined with our ongoing regional exploration, we are excited by the path ahead and the opportunity to advance an important new contributor to the Canadian gold mining landscape.'

PEA OVERVIEW

When available, readers are encouraged to read the PEA in the Company's technical report ('Technical Report') prepared in accordance with National Instrument 43-101 - Standards of Disclosure for Mineral Projects ('43-101') in its entirety, including all qualifications, assumptions and exclusions that relate to the PEA and mineral resource model. The Technical Report is intended to be read as a whole, and sections should not be read or relied upon out of context.

The PEA envisions a conventional open pit mining and milling operation with a nameplate processing capacity of 25,000 tonnes per day. Annual gold production averages 544,000 ounces per year during the first five full years, and 341,000 ounces per year over the 20-year LOM. Mine design and associated production schedules are based on a US$1,950/oz gold price.

OFF-SITE INFRASTRUCTURE

Year-round road access to site is envisioned for the PEA, with the main development components comprising a bridge over the Pelly River, upgrades to the existing government-maintained North Canol Road, and 130 km of new road linking the North Canol Road to site. This new road primarily follows the route of the existing Plata Winter Trail.

ON-SITE INFRASTRUCTURE

The site layout comprises the process plant, fuel and power infrastructure, water and tailings storage facility, camp accommodations, an airfield, waste storage facilities, and administrative buildings. Infrastructure is grouped to minimize haul distances and optimize operations.

A short term 750-person camp is envisioned to support mining infrastructure and tailings storage facility ('TSF') construction, followed by a 250-person camp to support mining operations. Facilities include administrative offices, warehouses, maintenance shops, medical and environmental services, and an incinerator.

A dedicated 1,400 m long airfield is envisioned for crew rotation and select supply delivery. Costing includes support facilities for fuel storage and runway maintenance. Helicopter access would support emergency response and select logistics needs.

TAILINGS MANAGEMENT

The location of the TSF was evaluated in accordance with geotechnical, water catchment, and environmental criteria. The design also considers water management strategies for both the operational and closure phases. Ongoing technical studies and field investigations will inform future refinement of location and design.

WATER MANAGEMENT

The water management system envisioned for the PEA separates contact water from non-contact water. Non-contact water is redirected away from site infrastructure using diversion channels. Contact water, primarily from the pit and WSF will be collected in a central pond and treated as required prior to discharge. Water from the TSF is recycled for processing with surplus water being treated as required prior to discharge. Given the uncertain potential for metal leaching ('ML') and acid rock drainage ('ARD') in the waste rock, the PEA conservatively assumes that water treatment will be necessary. This water management system is designed to support both ongoing operations and compliance following closure.

CAPITAL COSTS

The major components of pre-production capital are estimated at C$1,685M, including a contingency of C$246M. Infrastructure costs include C$84M (before contingency) for upgrades to the government-maintained North Canol Road and a new bridge over the Pelly River near the existing highway connection at Ross River. The total construction period, including construction of year-round road access to site, is estimated to be 3.5 years.

Valley is located in the traditional territory of the First Nation of Na-Cho Nyak Dun, with proposed site access also within the traditional territories of the Ross River Dena Council and Kaska Nation. The foundation of project advancement comes from ongoing engagement throughout all stages of project exploration, scoping, planning and baseline work. Through continued open communication and collaboration, the Company intends to design and advance Valley in a responsible, sustainable and ultimately beneficial manner.

The next technical study is expected to be a pre-feasibility study ('PFS') for the Rogue Project, focused on Valley. Fieldwork to support a PFS has recently commenced, and will include geotechnical drilling, groundwater characterization and monitoring, surface material characterization supported by lidar surveying and sonic drilling, and broader geochemical characterization of geological materials. Drilling is also underway at Valley that is planned to convert current inferred mineral resources to indicated mineral resources or higher, so that they may be considered in a PFS.

Preliminary environmental baseline monitoring began at Valley in October 2022. Over the coming months, the Company plans to expand the scope of these baseline studies, both spatially and by discipline to encompass a broader range of data types, to provide a holistic picture to inform future permitting.

OPPORTUNITIES AND EXPLORATION POTENTIAL

The PEA is an initial, conceptual evaluation of a mining scenario at Valley. While care has been taken to provide accurate estimates and realistic assumptions, the preliminary nature of the Study provides opportunities for further refinements of the operation that could potentially improve the project's technical and financial performance.

Resource Expansion & Satellite Deposits: The Valley gold deposit remains open in multiple directions, with open edges to the current resource, large volumes of the host intrusion still untested by drilling, and areas of gold mineralization encountered in drilling that are outside of the current resource and the PEA mine plan. Exploration drilling within the surrounding intrusion is currently underway. On a broader scale, the Rogue plutonic complex hosts multiple additional gold-bearing intrusions with the potential to host Valley-style mineralization. Surface exploration and drilling of multiple such targets are planned for the 2025 field season.

Throughput, Phasing & Cutoff Optimization: The PEA uses mine life and NPV as primary factors in determining mining rate and mill throughput, and assuming a constant milling capacity of 25,000 tonnes per day throughout the LOM. Scaling up LOM throughput would increase annual gold production, accelerating cash flows and thus potentially increasing NPV at the expense of mine life, while increasing initial capital expenditures.

Similarly, increasing mill throughput following Year 5 could conceptually increase annual production rates to more than 500,000 oz/year throughout the entirety of a shorter LOM, but the technical feasibility of this increase requires further study, and it would add capital costs that could potentially offset gains from accelerated cash-flow.

Outside of throughput considerations, using a higher cutoff grade would result in higher overall margins per ounce and-given the near-surface distribution of the highest grades in the deposit-reduced LOM stripping ratios, but doing so would result in a smaller production profile and a shorter LOM.

At present, such trade-offs have not been studied in detail. These factors will be analysed to inform future technical studies and planning.

Infrastructure Support: Capital expenditures in the PEA assume requisite upgrades to public infrastructure along the Yukon's North Canol Road-which provides access to a number of important resource projects-are borne entirely by the Rogue Project. Presently, the Canadian Government's Critical Minerals Infrastructure Fund has allocated initial capital to study potential road upgrades, bridge construction and power transmission along this infrastructure corridor. Given the public nature of the road and the presence of multiple resource companies in the region, the assumption that all expenditures would be borne by the Project is thought to be conservative.

Power Optimization: On-site diesel power generation is assumed for the PEA. For future technical studies and project planning, additional work will be conducted to review the relative impact of various alternative options.

Closure Costs: A conservative approach has been taken with respect to progressive reclamation, closure costs and post-closure reclamation work. Where uncertainties exist, financial allowances for worst-case scenarios have been made. Planned future work may provide further clarity which could eliminate any unneeded expenditures.

STUDY NOTES

Snowline retained SRK Consulting (Canada) Inc as lead consultants, along with additional independent contractors, to prepare the PEA in accordance with NI 43-101.

The PEA is based on the most recent (May 15, 2025) MRE for Valley, comprising 7.94 million ounces gold averaging 1.21 g/t Au in the measured and indicated categories and an additional 0.89 million ounces gold averaging 0.62 g/t Au in the inferred category, based on roughly 53 km of drilling completed by the end of 2024. Notably, approximately 95% of gold production in the PEA comes from mineral resources that are currently classified as measured and indicated. The effective date of the PEA is March 1, 2025, and the Technical Report will be filed on the Company's website and under its SEDAR+ profile within 45 days of this news release.

The PEA is preliminary in nature and includes inferred mineral resources (approximately 5% of total mineral resources) that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves. There is no certainty that the PEA will be realized.

ABOUT SNOWLINE GOLD CORP.

Snowline Gold Corp. is a Yukon Territory focused gold exploration and development company with an eight-project portfolio covering roughly 360,000 ha (3,600 km2). The Company is advancing its Valley deposit-a large, low-strip, near surface, >1 g/t Au bulk tonnage gold system located in the eastern Yukon-while continuing regional exploration of surrounding targets on the Rogue Project and the broader district in the highly prospective, yet underexplored Selwyn Basin.

Snowline's project portfolio sits within the prolific Tintina Gold Province, host to multiple million-ounce-plus gold mines and deposits across the central Yukon and Alaska. The Company's comprehensive first-mover position and extensive exploration database provide a distinct competitive advantage and a unique opportunity for investors to be part of multiple discoveries, the advancement of a significant gold deposit, and the creation of a new gold district.

Contact:

Scott Berdahl

Tel: +1 778 650 5485

Email: [email protected]

CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS

This news release contains certain forward-looking statements and forward-looking information (collectively, the 'forward-looking statements') within the meaning of applicable Canadian securities legislation, concerning the business, operations and financial performance of the Company. Forward-looking statements in this news release include, but are not limited to, the Company's expectations and estimates with respect to: the economic and scoping-level parameters of the PEA and Valley; the anticipated timeline for completion of the Technical Report and potential PFS; mineral resource estimates; the cost and timing of any development of Valley; the proposed mine plan and mining methods; dilution and mining recoveries; processing method and rates; production rates; projected metallurgical recovery rates; infrastructure requirements; energy sources; capital, operating and sustaining cost estimates; the projected life of mine and other expected attributes of Valley; the NPV, IRR and payback period of capital; future metal prices; the timing of any engineering, environmental assessment or Indigenous consultation processes; the expansion of environmental baseline monitoring programs; changes to Valley configuration that may be requested as a result of stakeholder or government input; government regulations and permitting timelines; TSF; accessing to Valley and lodging; water management; estimates of reclamation obligations and closure costs; requirements for additional capital; environmental risks; future drill programs and general business and economic conditions.

Statements relating to 'mineral resources' are deemed to be forward-looking statements, as they involve the implied assessment, based on certain estimates and assumptions that the mineral resources described can be profitably produced in the future. Generally, forward-looking statements can be identified using forward-looking terminology. Wherever possible, words such as 'may', 'will', 'should', 'could', 'expect', 'plan', 'target', 'forecast', 'schedule', 'prospective', 'envision', 'continue', 'intend', 'assume', 'anticipate', 'believe', 'estimate', 'budget', 'predict', 'project' or 'potential' or the negative or other variations of these words, or similar words or phrases, have been used to identify these forward-looking statements. These statements reflect management's current beliefs and are based on information currently available to management as at the date hereof.

All statements other than statements of historical fact may be forward-looking statements. Forward-looking statements involve significant risk, uncertainties and assumptions. Many factors could cause actual results, performance or achievements to differ materially from the results discussed or implied in the forward-looking statements. Such factors include, among other things: risks related to the inherent uncertainties regarding cost estimates; the use of non-GAAP measures in financial performance accounting; changes in commodity and metal prices; currency fluctuation; financing; unanticipated resource grades and recoveries; infrastructure; results of future exploration activities; cost overruns; availability of materials and equipment; timeliness of government approvals; political risk and related economic risk; unanticipated environmental impact on operations and risks associated with executing the Company's plans and intentions. These factors should be considered carefully, and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this news release are based upon what management believes to be reasonable assumptions, the Company cannot assure readers that actual results will be consistent with these forward-looking statements. Additionally, while the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements, there may be other factors that cause results not to be as anticipated, estimated or intended. These forward-looking statements are made as of the date of this news release, and the Company assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.