Chifunde Gold Project

Regius Exploration and Mining is currently managing and developing African Lion Gold plc’s (“ALG”) Flagship Chifunde Gold Project, with an ultimate aim to delineate a multi-million-ounce resource. The Project is located in the northern portion of the Chifunde District of north-western Mozambique, approximately 220 km north of the provincial capital of Tete and 60 km west of Lilongwe, Malawi.

Highlights

1.37 Moz Gold JORC-complaint Exploration Target (SRK)
Maiden Resource Estimate shall be completed at an Indicated confidence level by the 2nd quarter of 2024
Mining Concession granted over 17 000 Hectares
Gold mineralization from surface
Discrete high-grade zones surrounded by wide disseminated mineralisation
Substantial Artisanal workings with historical gold extraction estimated at 800 oz of Gold per month
All Artisanal Miners have been successfully removed without violence
High-grade channel samples of up to 124 g/t gold from mining faces
Metallurgy indicates extraction up to 97% through leaching
Self-funding initiative through early-stage contract-mining

In September 2021, a significant milestone was reached by obtaining a Mining Concession for the entire 17,000 hectares, valid for 25 years and extendable for an additional 25 years. This accomplishment, along with the successful removal of all Artisanal Miners, has further de-risked the Project. Obtaining a Mining Concession and legally removing artisanals are some of the most challenging aspects of any project.

To date, the following has been completed: field mapping and sampling; an airborne aeromagnetic and radiometric survey; a structural interpretation using the various datasets; channel sampling of high-grade faces from the primary historical artisanal mining pit (Table 1 below); 7,200 m of reconnaissance and exploration drilling (both diamond and RC); 3-D geological modelling of the primary Prospect Area and the identification of additional Prospect Areas with similar lithologies and structures.

High Grade Chanel Samples

Exploration Target

A JORC-compliant Exploration Target of 220 500 – 1 369 600 oz of Au content at grades ranging between 0.88 – 2.3 g/t, has been completed by VBKOM. The average drill spacing was 180 m.

Historical Artisanal Mining

The removal of all Artisanal Miners (totalling over 4 000) from the Chifunde Gold Project has been completed, giving ALG unrestricted access to, and full control of the main mining pits. All settlements and compounds belonging to these Artisanal Miners have also been removed.

The legal process started in 2022 and required months of careful planning and cooperation with the Mozambican government and local authorities in order to ensure the removal of these Artisanal Miners. Although ALG’s Mining License legally allows the removal of all Artisanal or illegal miners, the conservative route was followed consisting of a judicial process by obtaining a court order to remove all Artisanal Miners. Although this route took longer than initially planned, the process was successfully completed without any violence. A police force will stay on site for the foreseeable future, preventing the return of any Artisanal Miners.

Regius has significantly de-risked the Project, since various international mining projects have been crucially delayed or even failed due to presence of Artisanal Miners and because the process of removing them are usually very cumbersome.

The work done by the Artisanal Miners gave the opportunity to study various mining faces and structures, giving valuable insight. They have produced consistent large quantities of gold, indicating that the Chifunde Gold Project is rich in gold. It is estimated that they extracted 800 ounces of gold per month.

Drone imagery showing the main Artisanal Mining Site before and after the complete removal of all Artisanal Miners and informal settlements and compounds.