Loyalist Exploration Limited (CSE: PNGC) has released additional grade-tonnage sensitivity information for the 2026 Mineral Resource Estimate (MRE) on its 100%-owned Tully Gold Project in the Timmins Gold Camp of northeastern Ontario. The data, derived from the independent Technical Report prepared by P&E Mining Consultants Inc., is intended to inform the Preliminary Economic Assessment (PEA) currently underway and highlights how the resource responds to higher cut-off grades, a key factor in evaluating underground mining scenarios.
The sensitivity table, which the company distributed via NEWMEDIAWIRE, reports the underground MRE constrained by a 1.1 g/t Au cut-off and 1.25-metre minimum mining width stopes, and presents grade-tonnage estimates across a range of cut-off grades from 1.0 to 3.0 g/t Au. Loyalist emphasized that the data is for illustrative purposes only and does not constitute a new or updated Mineral Resource Estimate.
The base-case MRE, at a 1.1 g/t Au cut-off without the additional stope-width constraint, consists of an Indicated Mineral Resource of 1.62 million tonnes grading 3.16 g/t Au containing 164,000 ounces of gold, and an Inferred Mineral Resource of 0.95 million tonnes grading 2.03 g/t Au containing 62,000 ounces of gold. The sensitivity analysis, detailed in Table 1: Tully Gold Project – Sensitivities of Underground Mineral Resource Estimate, demonstrates that a higher-grade core remains robust even at elevated cut-offs, according to the company.
“The grade-tonnage sensitivity data provides important additional insight as we advance the Preliminary Economic Assessment on Tully,” said the company in a statement. “It illustrates how the resource responds to higher cut-off grades within the stope shapes generated at the base-case 1.1 g/t Au cut-off and 1.25-metre MMW, and highlights the presence of a higher-grade core that remains robust even at elevated cut-offs. This information will help us evaluate different underground mining scenarios and optimize the approach to the PEA. We continue to view Tully as a high-quality asset in the Timmins camp with a solid resource base and clear development potential.”
The PEA, being prepared by P&E, will evaluate potential underground mining scenarios, including the impact of different cut-off grades and mining constraints on recoverable material. The sensitivity data is expected to play a key role in that evaluation, as it provides a clearer picture of how the resource behaves under varying economic assumptions. The original release can be viewed on www.newmediawire.com.
The news matters because it offers investors a more nuanced view of the Tully project’s potential economics. By showing that a higher-grade core persists even at elevated cut-offs, Loyalist is signaling that the project could support selective mining approaches that reduce dilution and improve margins. As the PEA is at an early stage, there is no assurance that it will be completed on the timeline or terms currently contemplated, or that its results will be positive. Mineral Resources are not Mineral Reserves and do not have demonstrated economic viability. The scientific and technical information was reviewed and approved by Curtis Ferron, P.Geo., and Eugene Puritch, P.Eng., both independent Qualified Persons under NI 43-101.
