GoldMining Issues Letter To Shareholders

(GoldMining, 18.Mar.2021) — GoldMining Inc. issued the following letter from its Chairman, Amir Adnani, updating shareholders on the recent successful launch of Gold Royalty Corp. (GRC) (NYSE American: GROY) and plans for project advancement:

Dear Fellow Shareholders,

Since going public a decade ago, we entered the first phase of GoldMining’s strategy, which was to acquire resource stage projects in stable jurisdictions in the Americas at opportune prices during low points in the gold and copper cycle. In 2020, we embarked on the second phase of our strategic plan with a view to unlock the intrinsic value from our vast project portfolio. To this end we created Gold Royalty Corp. to expose existing shareholders to a new and distinct form of value enhancement.

Last week, Gold Royalty completed its successful initial public offering (IPO) and listing on the NYSE American, achieving a market capitalization of approximately $200mn. The IPO was tripled from its initial size of $30mn to $90mn, which provided GRC with one of the strongest balance sheets amongst its peers.

As a result of this transformative event, GoldMining holds 20,000,000 GRC shares on its balance sheet. Importantly, GoldMining shareholders have continued indirect ownership of our 49% equity stake in GRC which has a current market value of approximately C$120mn1.

Table 1: GoldMining’s Aggregated Mineral Resource Statement across all its Projects. (CNW Group/GoldMining Inc.)

As such, we view the IPO as an important value-crystallizing event for the company and a strong vote of confidence in our team and assets. I would like to take this opportunity to thank the GoldMining and Gold Royalty teams for all their hard work and effort to transform Gold Royalty from a concept into a highly successful IPO launch in less than 9 months.

Since the IPO, the GRC team has hit the ground running. Just yesterday, Gold Royalty announced an agreement to acquire a 1.2% NSR on the advanced-stage Séguéla project. The project is operated by Roxgold Inc., an experienced mine developer and operator who has reported being on track to make a construction decision in the first half of 2021. As the largest shareholder, we look forward to more positive developments at Gold Royalty.

Moving forward, we remain focused on identifying accretive acquisition opportunities, evaluating joint ventures with potential industry partners, and increasing our efforts to daylight value from our projects. We control one of the largest global resource holdings amongst our peers, with an aggregate total of approximately 14.3 million ounces gold equivalent Measured and Indicated Resources and 16.5 million ounces gold equivalent Inferred Mineral Resources (see Table below for further information).

While our technical team continues to review key projects for advancement, we are initiating preliminary economic assessments (“PEAs”) at the La Mina gold-copper project in Colombia and the high-grade Yellowknife gold project in Canada. We expect these studies to be completed in H2 2021. In addition, diamond drilling programs to test geological targets and to better define, and potentially expand, existing mineral resources at the Titiribi and La Mina projects in Colombia are currently planned to commence in H2 2021. Details will be announced as the studies progress and as program details are refined and finalized. These programs will be funded with existing cash-on-hand and are subject to permitting and potential restrictions related to COVID-19.

We look forward to an exciting 2021 for GoldMining, Gold Royalty and all our stakeholders. We thank our shareholders for their continued support and look forward to reporting further progress as we execute our strategy.

Note: 1 … Based on the closing price of the GRC Shares on the NYSE American and the applicable exchange rate on 17 March 2021.

1.Mineral resources are not mineral reserves and do not have demonstrated economic viability. There is no certainty that all or any part of the mineral resources will be converted into mineral reserves. The estimate of mineral resources may be materially affected by environmental permitting, legal, title, taxation, sociopolitical, marketing or other relevant issues.
2.The above global resource estimate table is provided for informational purposes only and is not intended to represent the viability of any project on a standalone or global basis. The exploration and development of each project, project geology and the assumptions and other factors underlying each estimate, are not uniform and will vary from project to project. Please refer to the technical report for each respective project, as referenced herein, for detailed information respecting each individual project.
3.All quantities are rounded to the appropriate number of significant figures; consequently, sums may not add up due to rounding.
4.Gold cut-off for all projects except for Whistler, which is gold equivalent cut-off.
5.Notes for Titiribi:
 • Based on technical report titled “Technical Report on the Titiribi Project Department of Antioquia, Colombia” with an effective date of September 14, 2016, which is available under GoldMiningꞌs SEDAR profile.
 • Gold equivalent estimated for the Titiribi deposit assumes metal prices of US$1,300/oz gold and US$2.90/lb copper and recoveries of 83% for gold and 90% for copper.
6.Notes for Sao Jorge:
 • Based on technical report titled “Technical Report and Resource Estimate on the São Jorge Gold Project, Pará State, Brazil” with an effective date of November 22, 2013, which is available under GoldMiningꞌs SEDAR profile.
7.Notes for Cachoeira:
 • Based on technical report titled “Technical Report and Resource Estimate on the Cachoeira Property, Pará State, Brazil” with an effective date of 17 April 2013 and amended and re-stated 2 October 2013, which is available under GoldMiningꞌs SEDAR profile.
8.Notes for Whistler:
 • Based on technical report titled “Technical Report on the Whistler Project” with an effective date of 24 March 2016, which is available under GoldMiningꞌs SEDAR profile.
 • The Whistler Project is comprised of three deposits: Whistler, Raintree West and Island Mountain.
 • Gold equivalent estimated for the Whistler deposit assumes metal prices of US$990/oz gold, US$15.40/oz silver and US$2.91/lb copper and recoveries of 75% for gold and silver and 85% for copper.
 • Gold equivalent estimated for the Raintree West deposit assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold, 85% for copper and 75% for silver.
 • Gold equivalent estimated for the Island Mountain deposit assumes metal prices of US$1,250/oz gold, US$16.50/oz silver and US$2.10/lb copper and recoveries of 75% for gold, 85% for copper and 25% for silver (recovered in copper concentrate).
 • A gold equivalent cut-off of 0.3 g/t was highlighted in the estimate as a possible open pit cut-off (Whistler, Raintree-shallow and Island Mountain), and a gold equivalent cut-off of 0.6 g/t was highlighted in the estimate as a possible underground cut-off (Raintree-deep).
9.Notes for La Mina:
 • Based on technical report titled “Technical Report on the La Mina Project” with an effective date of 24 October 2016, which is available under Bellhaven Copper and Gold Inc.ꞌs SEDAR profile.
 • Gold equivalent estimated for the La Mina project assumes metal prices of US$1,275/oz gold, US$17.75/oz for silver and US$2.75/lb for copper and recoveries of 93% for gold and 90% for copper.
10.Notes for Boa Vista:
 • Based on technical report titled “Technical Report on the Boa Vista Project and Resource Estimate on the VG1 Prospect, Tapajos Area, Para State, Northern Brazil” with an effective date of 22 November 2013, which is available under GoldMiningꞌs SEDAR profile.
11.Notes for Rio Novo/Surubim:
 Based on technical report titled “Technical Report on the Rio Novo Gold Project and Resource Estimate on the Jau Prospect, Tapajos Area, Para State, Northern Brazil” (“Surubim Project”) with an effective date of 22 November 2013, which is available under GoldMiningꞌs SEDAR profile.
12.Notes for Crucero:
 • Based on technical report titled “Technical Report on the Crucero Property, Carabaya Province, Peru” with an effective date of 20 December 2017, which is available under GoldMining’s SEDAR profile.
13.Notes for Yellowknife:
 • Open pit resources stated as contained within a potentially economically minable open pit above a 0.50 g/t Au cut-off. 
 • Pit optimization is based on an assumed gold price of US$1,500/oz, metallurgical recovery of 90%, mining cost of US$2.00/t and processing and G&A cost of US$23.00/t.
 • Underground resources stated as contained within potentially economically minable gold grade shapes above a 1.50 g/t Au cut-off. 
 • Mineral resource tonnage and grade are reported as undiluted and reflect a potentially minable bench height of 3.0 m.
 • Based on technical report titled “Independent Technical Report Yellowknife Gold Project Northwest Territories, Canada” with an effective date of 1 March 2019, which is available under GoldMining’s SEDAR profile.
14.Notes for Yarumalito:
 • Pit constrained resources with reasonable prospects of eventual economic extraction reported above a 0.50 g/t AuEq cut-off. 
 • Pit constrained resource estimate and gold equivalency are based on US$1,500/oz gold and US$2.70/lb copper, mining cost of US$2.00/t, processing cost of US$8.00/t and pit slope of 45 degrees.
 • Based on a technical report titled “Technical Report: Yarumalito Gold-Copper Property, Departments of Antioquia and Caldas, Republic of Colombia” with an effective date of 1 April 2020, which is available under GoldMining’s SEDAR profile.
15.Notes for Almaden:
 • Pit constrained resources with reasonable prospects of eventual economic extraction reported above a 0.30 g/t Au cut-off. 
 • Pit constrained resource estimate based on US$1,500/oz gold, mining cost of US$2.25/t, processing cost of US$10.00/t and pit slope of 45 degrees.
 • Based on technical report titled “Technical Report: Almaden Gold Property, Washington County, Idaho, USA” with an effective date of 1 April 2020, which is available under GoldMining’s SEDAR profile.

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