News Release (leaked) part 2 Table 3. Sensitivity analysis of the North Bullion, Sweet Hollow and POD sulphide mineral resource estimate for gold at various cut-off grades*:
| Classification | Au Cutoff (grams per tonne) | Tonnage - Au (million metric tonnes) | Au Grade (grams per tonne) | Contained Au (troy ounces)**** |
| Inferred (Near Surface Sulphide) | 1.0 | 2.20 | 2.50 | 176,700 |
| 1.25** | 2.05 | 2.60 | 171,400 |
| 1.5 | 1.85 | 2.73 | 162,200 |
| 1.75 | 1.66 | 2.86 | 152,400 |
| 2.0 | 1.35 | 3.09 | 133,800 |
| |
| Inferred (Underground Sulphide) | 2.0 | 6.87 | 3.07 | 678,000 |
| 2.25*** | 5.55 | 3.29 | 587,700 |
| 2.5 | 4.31 | 3.55 | 492,800 |
| 2.75 | 3.15 | 3.90 | 394,900 |
| 3.0 | 2.52 | 4.16 | 336,300 |
* Mineral Resources are not Mineral Reserves. Mineral resources which are not mineral reserves do not have demonstrated economic viability. There has been insufficient exploration to define the Inferred Mineral Resources tabulated above as an Indicated or Measured Mineral Resource. There is no guarantee that any part of the mineral resources discussed herein will be converted into a mineral reserve in the future.**The recommended reported resources are highlighted in bold and have been constrained within a $US1,350/ounce of gold optimized pit shell.***The recommended reported resources are highlighted in bold and have been constrained within a $US1,350/ounce of gold underground mining scenario.****Contained troy ounces may not add due to rounding.
Exploration Target and Potential for Resource Expansion
As a direct effect of the Railroad project 2010 to 2016 drilling programs and completing an updated geologic model, additional targets for immediate potential resource expansion have been identified in areas of limited drill hole testing. Shallow and deeper oxide and sulphide targets have been identified adjacent to existing resources that have good potential to expand the current inferred and indicated mineral resources. A near surface oxide exploration target of 3 million to 6 million tonnes at a grade of 0.3 to 0.5 g/t Au yielding an oxide exploration target of 30,000 up to 100,000 troy ounces of gold has been identified outside of the Sweet Hollow to POD portion of the property based upon prior drilling. The potential quantity and size is conceptual in nature. There has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource.
In addition, outside of this resource estimate, an exploration target of sulphide material ranging from 8 to 27 million tonnes with a potential grade of 1.1 up to 1.7 g/t Au yielding a target of 300,000 troy ounces up to 1,475,000 troy ounces has been identified for potential resource expansion. The potential quantity and size is conceptual in nature. There has been insufficient exploration to define a mineral resource. It is uncertain if further exploration will result in the target being delineated as a mineral resource. Along with targets to potentially expand the resource, areas within the existing inferred mineral resources that are defined by widely spaced drilling but with reasonable grades provide the company with potential to convert and grow the indicated portion of the oxide and/or sulphide mineral resource. APEX recommends further drilling to test these drill targets in order to expand the existing resources and convert Inferred Mineral Resources to Indicated Mineral Resources.
Geology
The North Bullion, Sweet Hollow and POD deposits are hosted by a number of lodes oriented north-northeast-northwest over an area of 2.75 km by 950 m. The mineral resource estimate is based on 171 reverse circulation holes and 61 diamond core holes. Careful review has determined that results from the two forms of drilling are comparable. The geology of the mineralized zones is described as follows:
The oxide gold zone at Sweet Hollow and POD is hosted in a mixed sequence of siliciclastic and carbonate rocks interpreted as belonging to the Mississippian Webb and Tripon Pass formations. Decalcification and silicification are the predominant alteration types, and dissolution collapse breccia occurs in the carbonate rocks. The mineralization lies stratigraphically higher than the Devils Gate – Tripon Pass host to the Main Pinion Zone gold mineralization.The sulphide gold zone at North Bullion is hosted in two tectono-stratigraphic horizons: an upper zone within a mixed sequence of siliciclastic and carbonate rocks interpreted as belonging to the Mississippian Tripon Pass Formation and a lower zone in multi-lithic dissolution collapse breccia developed along the top of the Devils Gate Limestone. The lower zone at North Bullion is hosted in the same stratigraphic horizon as Gold Standard’s Pinion Deposit and much of Newmont Mining Corporation’s gold mineralization within the Rain mining district, immediately to the north. Decarbonatization, dolomitization and silicification are the predominant alteration types at North Bullion.Mineralization remains open in multiple directions. Significant potential exists for expansion of the mineral resources along geologic controls identified during the modeling of the deposits at North Bullion, Sweet Hollow and POD. Approximately 6,700 m of drilling will be completed in 2017 to further expand the mineral resources (see Gold Standard’s news release dated May 9, 2017).Due to the good vertical and lateral continuity of the dissolution, collapse breccia hosted gold mineralization and the identification of additional targets, the potential to expand the mineral resources and convert inferred mineral resources to indicated mineral resources with future drilling is considered high.
footnotes follow.