Argentina Projects

New Dimension acquired a 100% interest in three advanced gold-silver projects - Las Calandrias, Los Cisnes, and Sierra Blanca – in Santa Cruz Province, Argentina from Sandstorm Gold Limited (“Sandstorm”) in May, 2018.  The Santa Cruz portfolio, totaling 86,000 hectares / 860 square km, was previously controlled by Mariana Resources Limited (“Mariana”), which was acquired by Sandstorm in July, 2017. All projects are located in the highly-prospective Deseado Massif geological terrane in mining-friendly Santa Cruz Province, southern Argentina. Prior to New Dimensions’ acquisition of the Santa Cruz portfolio, approximately $C25 million had previously been spent by Mariana exploring the portfolio.

As part of the Santa Cruz portfolio transaction, New Dimension also acquired ownership of 23,400 hectares / 234 square km of surface rights over the main Las Calandrias targets (the “Estancia Las Calandrias”).

Las Calandrias is the most advanced of the three Santa Cruz projects, with work to date having been focused on evaluating the gold-silver resource potential of both the Calandria Sur deposit (a bulk tonnage rhyolite dome-hosted deposit) and the high-grade Calandria Norte, Morena, and Despreciada/Nido vein/breccia systems. An updated NI-43101 compliant Mineral Resource Estimate for the Las Calandrias Project was completed in October 2018 (see details below):

October 2018 Las Calandrias Mineral Resource Estimate¹

Indicated Resource: 391,000 Ounces Gold + 6,070,000 Ounces Silver
Inferred Resource: 42,100 Ounces Gold + 401,500 Ounces Silver

Current field work is focused on finalizing drill targets on high-grade epithermal vein systems at the Sierra Blanca and Los Cisnes Projects. Exploration activities completed during 2019 have successfully identified new high-grade gold-silver targets at Bagual and Potrero (Los Cisnes), in addition to Veta Ana, Tranquilo, and Laguna (Sierra Blanca).

The Deseado Massif is one of the world’s key destinations for high-grade epithermal gold-silver deposits, with important mining operations including AngloGold Ashanti’s Cerro Vanguardia mine (first commercial production in 1998), Goldcorp’s Cerro Negro mine, Yamana Gold’s Cerro Moro mine (first commercial production in April, 2018), and Minera Don Nicolas (mine commissioned in December, 2017). Each of the Company’s Santa Cruz Properties is well located with respect to key infrastructure (especially power and good road access), are close to existing mines, and may be explored all year round.

Location of the Las Calandrias, Los Cisnes, and Sierra Blanca Projects in the Santa Cruz Province.

Prior to New Dimension’s acquisition of the Las Calandrias Project, previous work had been focused on evaluating the gold-silver resource potential of the Calandria Sur deposit, a bulk tonnage rhyolite dome-hosted deposit located in the southern portion of the Calandria I mining claim. However, high-grade gold-silver mineralization had also been identified by Mariana in the Calandria Norte, Morena, and Despreciada/Nido vein systems, all of which are located immediately adjacent to the Calandria Sur deposit. Significant drill intercepts reported by Mariana from the Calandria Norte vein/breccia system included:

• CND45  4.0 m @ 75.9 g/t Au and 70.0 g/t Ag from 92.5m downhole          
• CND46  4.5 m @ 101.8 g/t Au + 72.0 g/t Ag from 81.5m downhole

In September, 2018, New Dimension released assay results from a 25 hole / 3,695m diamond drill program at Las Calandrias, which included intersections of high-grade vein/breccia hosted gold mineralization at Calandria Norte located outside of the northern limit of the existing mineral resource. In addition, the drilling completed indicates a significant new gold-silver zone developing in the sub-parallel Morena structure. Initial drilling at Morena has focused on the southern end of the structure (with the best mineralized intercept being 0.6m @ 68.1 g/t Au + 107 g/t Ag from 59m downhole in CND250), with at least 300m of northern strike extent interpreted to remain for future drill testing.

Main target areas at the Las Calandrias Project

Calandria Norte Longitudinal Section

Panoramic view towards the Calandria Norte vein from Morena. View to East.

Additional targets at Las Calandrias include the Despreciada/Nido vein system, which is defined by classic epithermal vein textures on surface yet has only seen very wide spaced previous drilling, and the Pichones coincident geochemical / geophysical anomaly (to date undrilled). However, drill testing of these targets is expected to take place in a future drill program.

The October 2018 Las Calandrias MRE, as reported by AGP Mining by sector:

Calandria Sur Deposit – Mineral Resources within constraining Shell

Calandria Norte Deposit – Mineral Resources within constraining Shell

Calandria Norte Deposit - Mineral Resources below constraining shell

Notes to Accompany Calandria Sur MRE: 
Summation errors may occur due to rounding;
Mineral Resources are reported within an optimized constraining shell;
Block matrix is 6m x 6m x 5m (length x width x height);
Grades are estimated by ID3 interpolation;
Density was interpolated by ID2.  Blocks not populated by ID2 were assigned the mean density 2.21;
Cut-off grade for MRE varies by oxide zone (0.3 g/t Au oxide; 0.4 g/t Au transition; and 0.8 g/t Au primary zones);
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability
Constraining pit parameters: (in $US)

Metal Price: $1,400/oz Au; $18.50/oz Ag (based on 3 year rolling average seller’s prices)
Metal Recoveries: Au (94%-oxide; 73% transition; 80% primary), Ag (88%-oxide; 78% transition; 80% primary)
Mining Cost: $2.50/t
Processing plus General and Administration: $11-oxide; $11-transition; $25-primary
Pit Slope: 45°

Notes to Accompany Calandria Norte MRE:
Summation errors may occur due to rounding;
Mineral Resources are reported within, and below, an optimized constraining shell;
Block matrix is 5m x 3m x 5m (length x width x height);
Grades are estimated by ID3 interpolation;
Density was assigned the mean density 2.41;
Cut-off grade used for reporting MRE within constraining shell is 0.8 g/t Au;
Cut-off grade used for reporting MRE below constraining shell is 1.5 g/t Au 
Mineral Resources that are not Mineral Reserves do not have demonstrated economic viability.
Constraining pit parameters: (in $US)

Metal Price: $1,400/oz Au; $18.50/oz Ag (based on 3 year rolling average seller’s prices)
Metal Recoveries:   Au (80%), Ag (84%)
Mining Cost: $2.50/t
Processing plus General and Administration: $25
Pit Slope: 45°

The previous MRE for the Las Calandrias project was reported on an unconstrained basis. On a like-for-like basis (all mineral resources contained within constraining shell), increases in both average gold grade and total contained gold ounces are reported for Calandria Sur (+10% increase in Au grade and +21% increase in contained gold ounces in Indicated Category). At Calandria Norte, the 2018 MRE reports an increase of +13,000 oz in containedounces (+27%) in Indicated Category.

Mineral resources at the Calandria Sur deposit are bounded to the south by the Calandria I claim block boundary.

Calandria Sur Deposit – Resource Comparison

Note:
Previous MRE and 2018 MRE are reported at the same Au cut-off grades and within the 2018 constraining shell
Previous MRE reported using 2011 Oxide Zones; 2018 MRE reported using updated 2018 Oxide Zones

Calandria Norte Deposit – Resource Comparison

Note:
Previous MRE and 2018 MRE are reported at the same Au cut-off grades and within the 2018 constraining shell

The updated MRE was completed by Paul Daigle, P.Geo and Associate Senior Geologist of AGP Mining, an Independent Qualified Person as defined by National Instrument 43-101 Standards of Disclosure for Mineral Projects (“NI 43-101”).  Further details of the estimation methods and procedures may be found in both the Company’s October 5, 2018 news releases and the NI 43-101 technical report which was subsequently filed on SEDAR (www.sedar.com) on November 8, 2018. The reader is cautioned that Mineral Resources which are not Mineral Reserves have not yet demonstrated economic viability. The estimate of mineral resources may be materially affected by environmental, permitting, legal, title, taxation, sociopolitical, marketing, or other relevant issues.

At the Los Cisnes Project, which is located approximately 75km SW of Yamana Gold’s high-grade Cerro Moro Au-Ag mine, high-grade silver(-gold) values were first identified from previous work (channel sampling and scout diamond drilling) on the Brio vein/breccia system. Brio is a quartz-sulfide vein/breccia system which strikes ENE, can be traced on surface for approximately 2.3km, and is up to 3m wide. Channel samples taken at Brio by Mariana Resources Ltd2 had returned assay values ranging from below detection to 0.8m @ 3,840 g/t Ag + 3.0 g/t Au. During 2015, 8 scout drill holes for 723m were completed along the Brio structure, with the best intercept being 2.9m @ 755 g/t Ag from 32.1m downhole in LCsD-09.

Highlights from the 2018 drill program at Los Cisnes include:

• A total of 16 diamond drill holes for 1,564m were completed
• Assays confirm both down-dip and along-strike extensions to the high-grade silver mineralization reported by Mariana
• Two step-back holes (LCsD-14 and LCsD-18) were drilled to Mariana’s scout drill hole LCsD-09, with its reported intercept of 2.9m @ 755 g/t Ag from 32.1m downhole (including 0.9m @ 1,400 g/t Ag 2) (Figures 2 & 3). Both New Dimension drill holes successfully intersected down-dip extensions to the high-grade silver mineralization in LCsD-09:
  • >LCsD-14: 4.4m @ 566 g/t Ag from 100.3m downhole (60m step-back) Including 1m @ 740 g/t Ag from 102.0 m downhole and 0.8m @ 1,653 g/t Ag from 103m downhole 
  • LCsD-18: 4.4m @ 123 g/t Ag from 47.6m downhole (15m step-back)       Including 0.8m @ 276 g/t Agfrom 49.2m downhole
• Two step-out holes to LCsD-09 ( LCsD-20 and LCsD-15), designed to test for lateral extensions to the previously reported interval of 2.9m @ 755 g/t Ag1, also returned high-grade silver intercepts:
  • LCsD-20: 2.0m @ 381 g/t Ag from 39.0m downhole
    (39m West) Including 0.8m @ 528 g/t Ag from 39.0 m downhole  
  • LCsD-15: (33m E) 1.8m @ 182 g/t Ag from 59.7m downhole

Exploration activities completed during 2019 resulted in the definition of two new high-grade Au-Ag vein zones (Bagual and Potranca), which lie immediately to the southwest of the high-grade Brio structure. The northeast-trending Bagual vein/breccia system extends over some 900m in length and occurs near the geological contact between a rhyolite dome and ignimbrites. Initial surface sampling had returned local hand lens visible gold and gold-silver assays ranging from geochemically anomalous to high-grade, with a best select grab sample of 109 g/t Au + 1,031 g/t Ag. Trenching has resulted in the successful definition of high-grade gold-silver mineralisation in both Trench 1 (37.5 g/t Au + 6 g/t Ag over 1.0 m and 9.7 g/t Au + 8 g/t Ag over 0.6m) and Trench 3 (15.7 g/t Au + 4 g/t Ag over 0.6m), with Trench 3 being located approximately 210 m along the interpreted strike direction from Trench 1. The gold-silver mineralisation identified in all trenches is associated with strongly-oxidized quartz-sulfide(-Fe-oxide)-bearing stockworks and vein/breccia zones.  

The nearby Potranca vein is north-south-trending, is currently known to be exposed over a strike length of 300m, and is hosted entirely within ignimbrites. Initial surface sampling from the Potranca vein zone has returned high-grade gold and silver assays ranging between 0.3 g/t and 5.6 g/t Au, and 7 g/t and 267 g/t Ag, respectively.

Principal vein/breccia systems at Los Cisnes, including the new Bagual and Potranca discoveries. Trench locations from the 2019 exploration program are also shown.

Trenching undertaken at the Bagual and Potranca structures, Los Cisnes.

High grade gold assays from the Bagual structure, Los Cisnes

2 Historical results have not been independently verified by the Company. A potential investor should not place undue reliance on these historical results when making an investment decision, nor should they be used as the sole criterion for making investment decisions. These is no assurance that the Company can reproduce such results , or that the historical results described herein will be realized.

Previous work at the Sierra Blanca project was focused on the high-grade, E-W-trending Chala-Achen vein systems. During 2019, exploration activities were focused on trenching and sampling of the NW-trending Ana (and Ana Splay), Tranquilo, and Laguna vein systems. Drill target generation activities at the Sierra Blanca Project are ongoing, with drilling expected to be undertaken either in late-2019 or 2020.

Focus of 2019 exploration activities on the Ana (and Ana Splay), Tranquilo, and Laguna vein systems at Sierra Blanca

During Q3, 2019, New Dimension reached agreement with Sandstorm to modify the original terms of the annual payments due in respect of the Santa Cruz portfolio:  The revised terms are summarized as follows:

• New Dimension to make Year 1 anniversary payment (capped at keeping Sandstorm to a maximum 19.9% shareholding in New Dimension)
• Annual payments to be eliminated in those years in which New Dimension’s market capitalization is less than CAD 10M
• Annual payments of CAD 200,000 (in cash or shares, at the Company’s discretion) to apply in the event of New Dimension’s market capitalization falling between CAD 10M and CAD 20M
• Annual payments of CAD 400,000 (in cash or shares, at the Company’s discretion) to apply in the event of New Dimension’s market capitalization exceeding CAD 20M

These terms will apply until the earlier of the following i) December 31, 2032 or ii) the commencement of commercial production, in which case the annual payments will be replaced by a 2% Net Smelter Royalty.