Strong Mine Production and Start of the Gold Road Mill put the Project Back on Track

October 24th, 2019, Vancouver, B.C. – Para Resources Inc. (the “Company” or “Para”) is pleased to announce the successful start of the Gold Road mill and CIL plant on October 23rd, with expected doré production to begin in early November.  During an extended circuit test in Q1 of 2019, the mill and plant operated as planned and achieved doré production at the benchmark gold recovery rate of 95%.

Since the beginning of June 2019 when the new mine plan was put into effect, Gold Road has completed 245 feet of raise and incline to complete a new secondary escape route from the lowest levels of the mine, and over 1,000 feet of development to create new production faces, including an extension of the existing decline to the 950 level. Low-grade mineralized material recovered during development has been stockpiled separately from the production from the developed faces that started producing at the beginning of October.

As of October 20th, run-of-mine stockpiles contained 5,100 mt at an average grade of 4.1 g/mt Au. Production from the beginning of October through the 20th of the month was 1,985 mt averaging 7.2 g/mt Au, including for the three days from October 17th through the 20th, a combined 633 mt averaging 9.6 g/mt Au. The mine is currently producing from five production faces, including stoping at the 100-level and two sublevels, the 3100E and 2900E, both of which have two headings; east and west. Both sub-levels are off of the new extension of the main decline. Face channel sampling from October 20th and 21st at the 3100E east heading, included in the table below, reported 3.6 meter at 25.0 g/mt Au (including 0.5 m at 48.9 g/mt Au) and 5.1 m at 11.5 g/mt (including 0.8m at 33.4g/mt Au). Channel samples are true width of the vein, or other structure/rock type, before drilling and blast of the production face. Assay results are produced by AA (Atomic Absorption) and verified by Fire Assay at the onsite laboratory of the company. Results indicate that the heading has entered the target zone for anticipated future stope production.

Mine production has rapidly increased in October and is expected to continue to increase as additional production faces come online. The plant start-up plan is to run at an average of 227 tonnes per day, increasing to 454 mt/day (500 short tons per day) by the end of the year as plant staff and mine production is expected to increase.

an Harris, President of Para Resources, stated, “We are very excited to have started production at the Gold Road plant, after a significant modification to the mine plan caused by a change in prior approvals from MSHA. In addition to the major modification to the secondary escapeway, we decided to take advantage of the time to focus on advancing development. The work has set up the mine for sustainable production and pushed toward higher-grade areas. Mine production and grade continue to ramp-up quickly, and we are confident, based on our previous sustained testing, that the plant will operate at high availability and excellent recoveries.”

Qualified Persons

Paulo J. Andrade, BSc Senior Geologist, VP Exploration for Para Resources is the Qualified Person, who is responsible for the technical information contained in this news release.

A copy of this news release can also be found on our SEDAR profile.

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