BMO - Drilling Continues to Confirm High-Graze Zone at Borden Lake

Probe Mines released a total of 35 intercepts from 27 holes from the company’s Borden Gold project. Infill drilling in the high-grade zone (HGZ) returned two significant intercepts: 44.0m averaging 4.0g/t gold (including 14.3m averaging 11.1g/t gold) and 41.0m averaging 5.1g/t gold (including 11.6m averaging 15.1g/t gold). The HGZ has been extended 950m in strike length with the depths of the mineralized zones between about 280m and 440m vertical depth. Overall, the infill results returned a weighted-average grade of 3.12g/t gold over an average intercept of 17.2m. All intervals approximate true width. The results, excluding the high-grade intercepts, returned a weighted-average grade of 1.51g/t gold over an average intercept of 10.6m, which is broadly comparable to the aggregate intercepts of 1.70g/t over 14.9m. The company continues to advance exploration drilling on the HGZ with a view to providing a resource update, expected later this year. A PEA is planned to follow the resource update and is expected to examine a combined open pit/underground operation focused on a higher-grade, lower-tonnage scenario. Using spot metal prices, Probe’s shares are trading at a 13% discount to our 10% NAV estimate of US$2.16/share, below emerging producers in BMO Research’s coverage universe, which trade, on average, at an 11% discount.