Gold Candle Releases 2025 Mineral Resource Estimate for Kerr-Addison

Initial Underground Resource and Increasing Indicated Gold Ounces by 83%

TORONTO, Feb. 19, 2025 /CNW/ - Gold Candle Ltd. ("Gold Candle" or the "Company") is pleased to provide an updated Mineral Resource Estimate (MRE) at its wholly owned Kerr-Addison Project. Indicated category increased by 1.5 million ounces (83%) of gold in comparison to the 2023 estimate. The resource was based on a gold price of $1,980. The current resource estimate now includes an underground component. The estimate was completed using cut-off grades of 0.2 g/t Au for the open-pit and 1.2 g/t Au for underground mining. The total resource by category presently stands at:

Figure 1 - Longitudinal view of Kerr-Addison's MRE grade distribution (CNW Group/Gold Candle Ltd.)

Indicated: 3.31M oz Au contained in 69.2Mt @ 1.5 g/t Au
Inferred: 2.36M oz Au contained in 55.6Mt @ 1.3 g/t Au

Highlights: 2025 Updated Mineral Resource Estimate

• Larger resource: Increased 1.5M indicated ounces (83%) of gold over 2023.
• Consistent grade: Remains insensitive to gold price. Average grade maintained at 1.41 g/t gold vs. 1.43 in 2003.
• De-risking continues: Indicated ounces presently 58% of total resource (up from 35% in 2023).
• Robust strip ratio: Resource pit-shell waste to ore ratio of 3.77:1, with upside for further improvements.
• Enhanced project design: Lake constrained open-pit shell (not constrained in 2023). Underground mining potential adding exploration upside and development optionality.
• More conservative model: Tighter ore domains and void model, due to the addition of more historical production data.
• Significant growth potential: Kerr-Addison resources remain open for further expansion through additional drilling downdip, along strike to the east and through newly defined parallel lenses in the footwall.

''Today we are pleased to announce our updated Kerr-Addison Mineral Resource Estimate. These results are the culmination of over two years of work by our team focused on three primary objectives: (1) Expanding the mineral resource to include underground potential; (2) Improving modeling quality using more conservative parameters, and; (3) Increasing the global resource," said Gold Candle President and COO Leon Leblanc. "Due to our team's hard work, we will be accelerating our 50,000 metre drill program from the current four drills to up to six drills. We will be focusing on additional delineation drilling on the Kerr Addison deposit, expanding parallel zones in the footwall, extension at depth below historical workings and further drilling along the Larder Cadillac Break which resulted in the recent Geminid nickel discovery. In parallel, we will be conducting economic trade-off studies and continue the permitting process. We are currently well funded with $20 million in the treasury. We believe 2025 will be a pivotal year for Kerr Addison and Gold Candle."

The Kerr-Addison Project is located east of Kirkland Lake in the McGarry Township of the Timiskaming District of Ontario, Canada. The resource increase at Kerr-Addison is driven by several factors, including exploration drilling that increased confidence and grew both new and existing gold lenses, a higher assumed gold price—rising from US$1,800 in 2023 to US$1,980 today—which allowed for a lower cut-off grade (reduced from 0.35 g/t Au to 0.2 g/t Au). In addition, the inclusion of additional historical engineering and geological documents in the various models allowed for a much tighter result, improving confidence in ounces contained and the mineralization controls.

The mineral resource surrounds the historic Kerr-Addison underground Mine, one of Canada's largest gold mines, that produced 11M oz Au from 1938 to 1996. The resource is comprised of mineralization below historic cut-off grades in the same geological domains as the previously mined areas. This includes mineralization that could not be mined economically before 1996, and newly-developed and modelled mineralization in proximity of the historical workings. This mineral resource was estimated by InnovExplo (a wholly-own subsidiary of Norda-Stelo) using geological models developed by Gold Candle's technical team and validated by InnovExplo.

Open-Pit Mineral Resource (at 0.2 g/t Au cut-off)
Classification	Tonnes (t)	Grade (g/t Au)	Ounces (oz Au)
Indicated	50 514 000	1.3	2 106 300
Inferred	38 950 000	1.1	1 382 400
Underground Long-Hole Mineral Resource (at 1.2 g/t Au cut-off)
Indicated	18 738 000	2.0	1 204 400
Inferred	16 661 000	1.8	986 600
Kerr Addison Gold Project Total Resources
Total Indicated	69 252 000	1.5	3 310 700
Total Inferred	55 611 000	1.3	2 369 000

Notes to the 2025 MRE:
1.	The effective date of the 2025 MRE is February 3, 2025.
2.	The independent and qualified persons for the 2025 MRE are Martin Perron, P.Eng and Simon Boudreau, P.Eng., both from InnovExplo, a subsidiary of Norda Stelo.
3.	These mineral resources are not mineral reserves, as they do not have demonstrated economic viability. The mineral resource estimate follows current CIM definitions and guidelines.
4.	The estimate encompasses 146 mineralized lenses in eight (8) groups (A to H) using the grade of the adjacent material when assayed or a value of zero when not assayed.
5.	High-grade capping supported by statistical analysis was done on raw assay data before compositing. It was established on a group-by-group basis, varying from 10 to 200 g/t Au for mineralized zones. Composites (1.0 m) were calculated within the zones using the grade of the adjacent material when assayed or a value of zero when not assayed.
6.	The estimate was completed using a sub-block model in Isatis.neo 2024.04. The parent block size was 5m x 5m x 5m (subblocks of 1.25m x 1.25m x 1.25m).
7.	Grade interpolation was obtained by Ordinary Kriging for all groups using hard boundaries.
8.	Density values were assigned at 2.82 g/cm3 for all groups.
9.	The mineral resource estimate is classified as Indicated and Inferred. For groups A, B, C, F and H, the Inferred category is defined with a minimum of three (3) drill holes in areas where the drill spacing is less than 60 m, and reasonable geological and grade continuity have been demonstrated. For groups A, B, C, F and H, the Indicated mineral resource category is defined with a minimum of three (3) drill holes in areas where the drill spacing is less than 30 m, and reasonable geological and grade continuity have been demonstrated. For groups D, E and G, the Inferred category is defined with a minimum of three (3) drill holes in areas where the drill spacing is less than 30 m, and reasonable geological and grade continuity have been demonstrated. For groups D, E and G, the Indicated mineral resource category is defined with a minimum of three (3) drill holes in areas where the drill spacing is less than 15 m, and reasonable geological and grade continuity have been demonstrated. The initial resource classification was edited with a mix of automated and manual methods to eliminate the spotted dog effects considering the spatial continuity of drill holes and was run in each mineralized solid to upgrade inferred blocks, or downgrade indicated blocks locally, as needed.
10.	The MRE is locally pit constrained. The out-pit resources meet the RPEEE requirement by applying constraining volumes to all blocks (Selective underground long-hole extraction scenario) using Deswik Mineable Shape Optimizer (DSO). The RPEEE requirement is satisfied by having cut-off grades based on reasonable parameters for surface and underground extraction scenarios, minimum widths, and constraining volumes. The estimate is presented for potential underground scenarios (realized in Deswik) over a minimum width of 3 m for blocks 45 m high by 30 m long at a cut-off grade of 1.2 g/t Au for the long-hole method. Cut-off grades reflect the currently defined geometry and dip of the mineralized envelopes. The potential open-pit component of the 2025 MRE is locally constrained by an optimized surface in GEOVIA Whittle™ using a rounded cut-off grade of 0.20 g/t Au. The surface cut-off grade was calculated using the following parameters: mining cost = CA$7.00/t; mining overburden cost = CA$4.90/t; processing & transport cost = CA$11.82/t; G&A cost = CA$3.36/t; selling costs = CA$5.00/t; gold price = US$1,980/oz; USD/CAD exchange rate = 1.30; overburden slope angle = 25°; bedrock slope angle = 50° to 55°; and mill recovery = 90%. The underground cut-off grade was calculated using the following parameters: mining cost = CA$57.50/t; processing & transport cost = CA$13.60/t; G&A cost = CA$6.72/t; selling costs = CA$5.00/t; gold price = US$1,980/oz; USD/CAD exchange rate = 1.30 and mill recovery = 90%.Cut-off grades should be re-evaluated in light of future prevailing market conditions (metal prices, exchange rates, mining costs etc.).
11.	The number of metric tonnes was rounded to the nearest thousand, following the recommendations in NI 43-101, and any discrepancies in the totals are due to rounding effects. The metal contents are presented in troy ounces (tonnes x grade / 31.10348) rounded to the nearest hundred. Numbers may not add up due to rounding.
12.	The independent and qualified person for the 2025 MRE is not aware of any known environmental, permitting, legal, political, title-related, taxation, socio-political, or marketing issues that could materially affect the mineral resource estimate.

The new resource also allows Gold Candle to better identify high grade vectors within the mineralized envelope as displayed in Figure 1. Grade distribution as shown below supports the company's approach to increase both the size of the resource and the overall grade profile by leveraging deeper targets as part of the soon to be released updated exploration and development plans for Kerr-Addison.

Exploration: Strategy

Kerr-Addison resources remain open for further expansion through additional drilling downdip, along strike to the east and through newly defined parallel lenses in the footwall. For 2025, Gold Candle is planning an aggressive exploration program marked by over 50,000 meters of drilling on Kerr-Addison and regional targets. Currently two rigs are drilling the former party wall between Kerr Addison and Chesterville, testing this panel between 800-1500 m vertical depth. A third rig is testing a near mine target 300 m east of Chesterville from 800m to 1000 m vertical depth. A fourth rig is drilling along strike to the east along the same Cadillac Larder Lake Break on a more regional program.

The exploration team is currently undertaking a targeting exercise to optimize the 2025 drilling strategy, leveraging the increased drilling density below 600m resulting from the last year of exploration. This has contributed to improving the geologic model, geochemical vectoring coverage and upgrading confidence level as reflected in the 2025 MRE. Kerr-Addison focused targets include:

• Extending the main mineralized trend down to 2,000 meters vertical depth
• Expansion of footwall stacked lens south of the historic mine
• Up/down plunge extensions ore-shoots east of Chesterville
• Near mine mineralization east of Kerr-Addison
• Conversion of inferred resources to the indicated resource category

These target areas in addition to regional targets are core to Gold Candle's exploration pipeline and will be part of the team's exploration plan that will be released in the coming months.

Near-term Catalysts

• Release of updated exploration and development plans for Kerr-Addison (H1 2025)
• Release of Geminid nickel sulfide zone initial Mineral Resource Estimate adjacent to Kerr-Addison (H1 2025)
• Filing of NI 43-101 technical report for Gold Candle's property (H1 2025)
• Initiation of scoping study to investigate potential mine plan and production profile for Kerr-Addison (H1 2025)
• Preliminary economic assessment (PEA) decision based on scoping study results (H2 2025)

Gold Candle's upcoming conference participation

1. Feb. 23-26: BMO Global Metals, Mining & Critical Minerals Conference in Florida
2. Feb. 27-28: Red Cloud Pre-PDAC 2025 Mining Showcase in Toronto
3. March 2-5: PDAC 2025 in Toronto (Booth 2616A, March 2-3)

About the Kerr-Addison Deposit
The Kerr-Addison deposit is an orogenic gold deposit that is located in the late Archean Abitibi greenstone belt of the Superior Province. Mineralization is in the immediate structural footwall of the Larder-Lake-Cadillac Deformation zone (LLCDZ), which is defined by a high-strain zone near the contact between the Timiskaming assemblage and a panel of ultramafic and mafic volcanic rocks, known as the Larder Lake group. This deformation zone is a 250 km, east-west trending, regional crustal scale fault, that extends from Matachewan, Ontario to Val-d'Or, Québec, which has a fundamental control on the distribution of gold deposits.

Gold occurs primarily in a dense stockwork of veins, as free gold, and is also associated with fine-grained, disseminated pyrite and arsenopyrite. Carbonate ore historically accounted for production of over 3.7M oz Au in an alteration assemblage of green-chromium-muscovite (fuchsite), quartz, and magnesite-ankerite with intense quartz carbonate veining. Flow ore historically accounted for production of ~ 7.1M oz Au in an alteration assemblage of quartz-chlorite and carbonate, with variable amounts of sericite, albite, pyrite, and graphite. In general, flow ore bodies are located in the structural footwall (south) of the green-carbonate ore bodies.

QA/QC and Data Verification
Gold Candle has a comprehensive QA/QC program that meets industry standards. The sampling data used for the mineral resource estimate was verified by InnovExplo. Drillholes used in the mineral estimation were selected at random and the collar, survey and assay data were compared to original sources. InnovExplo is satisfied that the database is acceptable for inclusion in a mineral resource estimation.

Comparison with Previous Mineral Resource Estimate
The updated mineral resource estimate supersedes the 2023 MRE of 32.5Mt @ 1.7 g/t Au totalling 1.8Mozs in the indicated category and 79.1Mt @ 1.3 g/t Au totalling 3.4Mozs in the inferred category detailed in the NI 43-101 Technical Report on the Kerr-Addison Project, Virginiatown, Ontario, Canada August 21, 2023 by SLR Consulting (Canada) Ltd. and filed on SEDAR+. The previous resource estimate was limited to a pit-constraint resource while the 2025 estimate includes an underground component below the main pit-shell.  The new resource estimate also includes a significant improvement in confidence with over 50% of the contained ounces now reported in the Indicated category. The updated estimate includes results from an additional 20,400m of drilling by Gold Candle (September 8, 2024: database cut-off date) and 14,250m of historical results acquired by Gold Candle in the later part of 2023. Digitization and validation of the newly incorporated historical data further demonstrates quality of the deposit with strong continuity and significant upside for exploration at depth and along strike.

The updated estimate is supported by a rebuilt historical infrastructure and void model done by Gold Candle's technical team along with InnovExplo support. Validation of both models was done by Gold Candle and InnovExplo before being incorporated in the mineral resource estimation. Depletion models and mineralization domains were developed by Gold Candle's team using historical geology, survey and production prints recovered in 2023. The documents underwent a strict process of cleaning, restoration, scanning, digitization, georeferencing and validation before being used for modeling. All documents remain stored in a controlled environment on the project property. Mineralization domains were built for the various mineralized lenses separated in two main groups, high grade domains and low-grade domain. The modeling improvement allowed for a higher level of geology controls and a more restrictive interpolation exercise for lower grade values.

Qualified Persons
The mineral resource estimate was conducted by InnovExplo (a wholly-own subsidiary of Norda-Stelo) under the supervision of Martin Perron, P.Eng. and Simon Boudreau, P.Eng. , both are Independent Qualified Persons under NI 43-101 standards.

The technical information in this news release has been reviewed and approved by Dean Crick P.Geo MSc, Vice-President of Exploration for Gold Candle, who is a Qualified Person under NI 43-101 standards.

An independent technical report prepared in accordance with the requirements of NI 43-101 will be completed within 45 days of this news release. 

About Gold Candle
Gold Candle is a privately funded Canadian exploration company led by a diverse and highly experienced group of mining professionals. In 2015, the Company acquired claims over the historic Kerr-Addison Gold Mine and surrounding area in the McGarry Township, located in the Timiskaming District of Ontario. Our approach to responsible mineral exploration is to perform our activities in a manner that benefits local communities, employees and shareholders and respect people and the environment.

CAUTIONARY STATEMENT:
This News Release includes certain "forward-looking statements". All statements other than statements of historical fact included in this release, including, without limitation, statements regarding the ability to expand the mineral resource to include underground potential, improve modeling quality using more conservative parameters, increase the global resource, increase the size of the resource and the overall grade profile, extending the main mineralized trend down to 2,000 meters vertical depth, expansion of footwall stacked lens south of the historic mine, conversion of inferred resources to the indicated resource category, initiation of a scoping study and preliminary economic assessment within contemplated time periods , complete future drilling programs and infill sampling, exploration results, and future plans and objectives of Gold Candle, are forward-looking statements that involve various risks and uncertainties. Forward-looking statements are frequently characterized by words such as "may", "is expected to", "anticipates", "estimates", "intends", "plans", "projection", "could", "vision", "goals", "objective" and "outlook" and other similar words. Although Gold Candle believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, there can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Important factors that could cause actual results to differ materially from Gold Candle's expectations include risks and uncertainties related to exploration, development, operations, commodity prices and global financial volatility, risk and uncertainties of operating in a foreign jurisdiction as well as additional risks described from time to time in the filings made by Gold Candle with securities regulators.

SOURCE Gold Candle Ltd.

Leon Leblanc, President and COO, Gold Candle [email protected]