EnviroGold Global Limited (CSE: NVRO) (FSE: YGK) a Clean Technology Company accelerating the world’s transition to a circular-resource economy through the production of metals without mining, is pleased to announce it has agreed to commercial terms with Hellyer Gold Mines Pty Ltd. to reprocess the tailings owned by HGM (at the Hellyer Gold Mine, Tasmania, Australia. The agreement contemplates a multi-stage Tailings Reprocessing Project wherein EnviroGold Global will add its mineral processing technology to the currently operational and permitted Hellyer Mine. EnviroGold Global and HGM expect that operational synergies resulting from the partnership in conjunction with EnviroGold Global’s independently validated, proprietary metallurgical solution (link) for the Hellyer VMS tailings will drive significantly increased metal recovery rates for the gold (Au), silver (Ag), zinc (Zn), lead (Pb) and copper (Cu) contained in the Hellyer tailings.

As per the terms of the MOU, EnviroGold Global will initially focus on reprocessing tailings within the Hellyer Tailings Storage Facility currently being operated by HGM. Subsequently, EnviroGold Global will reprocess additional tailings from legacy mining operations located on the Hellyer Mine Site. EnviroGold Global is entitled to 50% of the pre-tax cashflows resulting from the tailings reprocessing operations up to US$24M per year; thereafter, EnviroGold Global is entitled to 65% of the pre-tax cashflows. Consistent with EnviroGold Global’s risk management strategy, the Company will not own any part of the Hellyer Mine Site or mining project but will be applying its proprietary mineral processing technology to various tailings deposits located on the Hellyer Mine Site. Commercial metal production is expected in Q4 2022 commencing with deployment of an up to ~500 tonnes per day (tpd) plant; thereafter, operations will be scaled up to ~3,500tpd during 2023.

Commenting on the Hellyer Tailings Reprocessing Project, EnviroGold Global CEO, Dr. Mark Thorpe, said, “The agreement with HGM is an important strategic milestone in the achievement of our corporate growth strategy and an outstanding opportunity to deliver positive environmental outcomes while creating substantial economic returns for the two companies, our shareholders and community stakeholders. We look forward to a long and productive relationship with the professionals at HGM as we establish circular-economy leadership by producing precious, critical and strategic metals without mining.”

Per the terms of the MOU, EnviroGold Global and HGM will enter into a final, definitive agreement governing the terms of the Tailings Reprocessing Project. EnviroGold Global expects to provide additional information on the Hellyer Tailings Reprocessing Project, including project economics, in the near-term.

Hellyer TSF Project Summary

The Hellyer TSF tailings have been extensively studied by EnviroGold Global and HGM. A historical mineral resource estimate (“historical estimate“) was completed in November 2020 in accordance with the JORC Code (2012) for the Hellyer TSF tailings for NQ Minerals Plc, the parent company of HGM. This historical estimate was completed by independent mining consultants CSA Global (UK) Limited and reported in a JORC Competent Persons Report (NQM, 2020), which can be sourced from NQM’s corporate website (see link below). The Hellyer TSF historical estimate reported 6.37 Mt of Measured and Indicated Mineral Resources and 1.21 Mt of Inferred Mineral Resources with gross metal grades of 2.60 g/t Au, 94 g/t Ag, 2.33% Zn, 3.01% Pb and 0.19% Cu (Table 1).

Table 1: Hellyer TSF Historical JORC Mineral Resource Estimate – metal tonnes and ounces (gross total only) all attributable to NQM (depleted to August 31, 2020)

Historical Estimate Notes:

• The Hellyer TSF historical estimate was completed in accordance with the 2012 Australasian Joint Ore Reserves Committee Code (“JORC 2012 Code”) and reported in a JORC Competent Persons Report for NQM dated November 11, 2020 for the “Hellyer Tailings Retreatment Project, Tasmania” (link to source: nqminerals.com)
• No lower cut-off reporting grade was applied.
• Metal tonnages and ounces rounded from calculated values. Gross metal grades include 2.60 g/t Au, 94 g/t Ag, 2.33% Zn, 3.01% Pb and 0.19% Cu.

This historical estimate is considered relevant as it appears to demonstrate the potential tonnages and grades and reasonable prospects for eventual economic extraction for the Hellyer TSF tailings. However, EnviroGold Global cautions readers that this historical estimate was not completed using 2014 CIM Definition Standards on Mineral Resources and Reserves and is not supported by a technical report completed in accordance with National Instrument 43-101. In addition, under the JORC (2012) Code standards, Measured, Indicated, and Inferred mineral resource tonnages can be combined, which is not permitted under NI 43-101. A Qualified Person has not done sufficient work to classify this historical estimate as current mineral resources and EnviroGold Global is not treating this historical estimate as current mineral resources. A significant amount of work is required to verify the historical estimate as current resources including: (1) upgrading the geological model with any additional drilling data and mining depletions on the tailings since the historical estimate was completed, (2) a QP completing a full data verification of historical drill hole sampling procedures, analytical results, and metallurgical test results, and (3) additional bench-scale and field metallurgical test work to determine reprocessing and recovery characteristics using EnviroGold Global’s proprietary tailings reprocessing technology. EnviroGold Global is not aware of any additional historical estimates for the Hellyer TSF tailings.

Qualified Person Statement

All scientific and technical information contained in this news release was prepared and approved by Ian Hodkinson, P.Geo., Chief Geologist of EnviroGold Global, who is a Qualified Person as defined in NI 43-101.

About EnviroGold Global

EnviroGold is a Clean Technology company creating shareholder value while establishing ESG market leadership by remediating mine and industrial waste, while reclaiming high-value commodities. The Company is strategically positioned to earn and maintain social license while capitalizing the estimated US$3.4 trillion in valuable commodities residing in target waste streams globally.