Cartier Resources Outlines Plan to Unlock 15km Gold Trend Hosting High Grade Targets Around Flagship Quebec Project

• Cartier Resources is focused on exploring and developing gold projects, especially the Chimo Mine property, in Quebec.
• Recent drill results and consolidation of land packages have revealed high-grade gold targets over 15km of strike length around the historic Chimo Mine.
• A 2023 Preliminary Economic Assessment outlined a 20.8% IRR and under $341M initial capex for redeveloping the Chimo Mine.
• The company sees potential for expanding resources at Chimo and proving additional deposits along strike into a broader mining district.
• Next year will see continued exploration drilling, economic studies, and consideration of strategic alternatives like partnerships.

Exploring a Reawakened Gold District in Quebec

Quebec-focused gold junior Cartier Resources is working to demonstrate the potential for its historic Chimo Mine property and surrounding lands to host an emerging gold mining district. Recent drilling success and strategic land acquisitions have outlined high-grade gold targets along 15 kilometers of prospective ground to the east and west of the past-producing Chimo Mine. With existing underground infrastructure and proximity to labour and facilities, the company sees an opportunity to cost-effectively grow resources and prove up satellite deposits that could feed a centralized mining operation.

Interview with President & CEO, Philippe Cloutier

In a recent interview, Cartier CEO Philippe Cloutier discussed progress over the past year in exploring and evaluating the economic potential of their flagship Chimo Mine property:

“In the last five years, we were focused on the Chimo Mine gold project within a 500 meter radius of the shaft and underground workings and...in mid or early 2022 we consolidated all of O3 Mining’s ground.”

This consolidation formed a contiguous land package encompassing historic drill results and known mineralization far beyond the immediate Chimo Mine area that had seen modern exploration. According to Cloutier:

“What we did in the immediate ensuing year...is we drilled 25,000 meters, we delivered a 4th resource estimate. We delivered a Preliminary Economic Assessment (PEA) and started marketing. But unknown to the investment community, we also launched a thorough audit of the new ground that we had acquired and that was (an audit of) a database of about 800 diamond drill holes that had never been under one ownership before.”

By compiling decades of fragmented historical data covering the broader region, Cartier’s geological team recognized the potential for additional high-grade gold discoveries bearing similarity to the original Chimo Mine. This sprawling cadre of land could form an extensive mining district centered around existing mine infrastructure. Their analysis yielded 11 new high-priority targets distributed along 15 kilometers of prospective fault structures bookending the historic Chimo workings.

“The difference today is that Cartier was able to take everything that it learned drilling Chimo geology, mineralization, alteration, structures - like the favorable ingredients - and apply that to our compilation of the 800 diamond drill holes and only pick out the Chimo lookalikes."

"We announced recently 11 new targets that have the Chimo ingredients and those are 11 targets that are spread over a 15 kilometer strike length...that's a different game. It's like all of those historically demonstrated gold intersections barely got tested down to 200 meters by the previous owners whereas we had been drilling down to a 1km - 1.5km on Chimo."

Each target revealed high-grade gold intercepts in initial shallow drilling by past operators but had seen little or no follow-up. Cartier believes the structures hosting this mineralization likely continue to depths comparable to zones it delineated below and around the historic Chimo workings. Their improved understanding of these gold-bearing environments can now be directed towards systematic exploration of the broader land package.

Significant Exploration Potential

Only one quarter of this 15 kilometers of prospective strike length had previously undergone intensive exploration by Cartier. With the consolidation of surrounding ground, the company has gained access to 100% of this favorable gold horizon.

The scale of untested gold potential was a key driver of recent market interest. According to Cloutier:

“There's a perception that tax loss selling season is finished, at least for Cartier...the recent spike in gold price and  maybe our story is finally landing - that we have a great investment opportunity here."

He believes their value proposition is now stronger than ever between delivering a preliminary economic study, expanding high-grade exploration prospects, and offering strategic optionality in a strengthening gold market. But the key to advancing the story will be efficiently executing staged exploration of the broader Chimo trend. In the near term, this drilling aims to expand resources in existing deposits as well as outline new zones to prove the district-scale vision.

"We're going to shift gears now and go back into the exciting junior exploration mode but the targets this time were along strike of a proven past producing gold mine line where we recently put out a PEA - it's exciting times," said Cloutier.

Economics Clearly Outlined

Advancing both resource definition and outlining new deposits builds on an already solid foundation. In mid-2023, Cartier published an NI 43-101 PEA outlining production potential from the existing Chimo Mine area. This study put forth a 9.7-year mine life harvesting 6.2 million tonnes at a 4.5 g/t grade for almost 900,000 ounces recovered. An initial capex of C$341 million and 20.8% IRR post-tax demonstrated a financially viable potential operation.

The proposed scenario involves rehabilitating existing underground infrastructure and mining higher grade material left behind by past operators along with expanding zones outside historical stopes. Ore would be processed through a newly constructed 3,000 tpd mill and tailings facility on site. This strategy aims to cost-effectively leverage as much existing development as possible while upgrading technology and productivity compared to previous small-scale mining in the late 1980s.

Project economics benefit substantially from proximal infrastructure in a proven mining jurisdiction. As Cloutier highlighted:

"One of the major advantages of Chimo is it sits right near a mining-friendly district with access to a qualified workforce and infrastructure which you know can lower your capital expenditures ultimately to develop these things - we're not dealing with a remote project."

Next Steps to Surface Value

However, Cartier recognizes that even with a credible PEA outlining production potential from just a portion of currently defined resources, the junior markets require clear near-term catalysts. The recently identified high-grade targets must demonstrate size and continuity through intensified drilling.

This next phase of exploration will provide key milestones for the company according to Cloutier:

“Our share price is going to adjust to the value proposition...new diamond drilling on some of these high-grade deposits that were discovered by previous owners within trucking distance of the Chimo shaft -  that's going to provide exciting news flow. Revisiting the additional opportunities from the original PEA to further improve the economics of the Chimo Mine project itself - I think those are catalysts moving into 2024."

Their strategy aims to balance steadily growing resources at Chimo, improving project parameters, and allocating capital into earlier stage targets that hold the greatest potential value generation. Concurrent environmental studies will also facilitate potential permitting activities down the road.

With no debt and $2.5 million cash on hand, Cartier can self-fund this work but leaves open the potential to access additional capital if market conditions improve. The company could pursue partnership opportunities around advancing Chimo engineering studies or exploration of the broader trend. An outright sale also remains possible but would likely require substantially de-risking assets to achieve full value realization.

“The work that we have to do has to service that new reality...it points to the fact that the Abitibi in Canada is still going to continue delivering quality projects and future ounces. That's where we have to imagine where we're going to be next."

The market's perception of this opportunity may still be catching up to the scale of prospective ground being proven up after recent deals unified a broad gold district. But with key exploration catalysts on tap, existing infrastructure, demonstrated project economics and additional flexibility around partnerships or transactions, Cartier offers investors leverage to a potentially emerging Canadian gold camp.

The Investment Thesis for Cartier Resources

• Advanced exploration play consolidating highly prospective ground around past-producing Chimo gold mine infrastructure in mining-friendly Quebec
• Existing underground development, resource estimate of >900k ounces at 4.5 g/t gold and positive 2023 PEA demonstrating potential economics
• 15km strike length of untested structures surrounding the mine hosting high-grade targets comparable to the original Chimo deposit
• Fully funded for $9M exploration program to expand current resource areas and drill most prospective new targets
• Clear near-term share price catalysts from exploration updates and PEA optimization work
• Longer term upside revaluing project towards peer EV/oz multiples as resources grow towards critical mass
• Optionality around strategic partnerships, streaming deals, or M&A interest to further expand production scenario

Cartier Resources offers investors exposure to a large underexplored land package encompassing and surrounding a past-producing gold mine with existing infrastructure and positive economics. Recent strategic consolidation revealed high-grade drill intercepts distributed across multiple target areas that could significantly expand the resource footprint. Efficiently testing these targets while expanding the current resource has the potential to revalue the company towards peers on a relative EV/oz basis. With funding secured for a focused exploration program, investors can anticipate a year of steady news flow from a tightly structured project showing district-scale hallmarks in a proven mining jurisdiction.