2020 Niñobamba Main Zone Conceptual Exploration Model Memo

The Niñobamba property is located in an historic silver district approximately 330 kilometres southeast of Lima in the Department of Ayacucho, Peru. It consists of 4490 hectares including claims purchased from Southern Peru Copper and Newmont Mining Corporation and recently staked claims. Mineralization on the property demonstrates the potential for a large, bulk tonnage, disseminated silver/gold project. The Company’s subsidiary Minera Rio Plata S.A.C. owns 100% of the mineral rights on the primary 900 hectare concession and the recently staked 1390 hectare concessions. The 2,200 hectare properties acquired from Newmont and Southern Peru are subject to a 2% NSR.

Originally explored by AngloGold Exploracion Peru S.A.C. (“Anglo”) in 2001, Anglo focused on an area of intense hydrothermal surface alteration and drilled five widely spaced core holes totaling 861metres. Anglo’s drilling highlights included DDH-2 which reported assay results of 87.0 grams per tonne (“g/t”) silver over a drilled interval of 130 metres starting from a depth of 9 metres and DDH-4 reporting 54.0 g/t silver over a drilled interval of 96 metres starting from 23 metres.

The Company concluded a community agreement in May 2012 and began an exploration program consisting initially of surface trenching in areas proximate to the location of the historical drilling. The 2012 exploration program focused on two parallel mineralized zones, the North and South zones which appear to be two separate NE-SW trending zones of significant silver mineralization. The zones are approximately 400 metres apart and have variable thickness. A new zone called Dilation was discovered between the North and South zones with 16 surface grab samples averaging 19.98 g/t Ag and ranging from 0.0 to 142.9 g/t Ag. A second new zone called Escondida was also discovered approximately 500 metres southwest of trench TR-02 with 12 surface grab samples averaging 72.03 g/t Ag and ranging from 0.8 to 252.6 g/t Ag. Gold is present in the Escondida zone with 12 samples ranging from 0.0 to 0.799 g/t Au and averaging 0.140 g/t Au.

The following links to an orthophotograph of the Ninobamba Property showing the North and South mineralized zones as trenched, and the new zones of mineralization at Dilation and Escondida. The orthophotograph also shows the favourable topography for mining and infrastructure … Niñobamba Property

North Zone Trenching Results

The 2012 exploration program shows that the mineralization in the North zone has a lateral extent of over 400 metres. Surface sampling west and north of trench TR-04 shows that gold mineralization is associated with vuggy silica altered volcanics similar to the mineralization exposed in the last 21.77 metres of trench TR-04 which returned 1.32 g/t Au and 102.46 g/t Ag. The alteration in this area has a strong gold zoning component indicative of high sulphidation systems. The silver mineralization exposed in trenches TR-13, TR-16, and TR-17 are located between the gold bearing trenches in TR-01 and TR-04. The silver mineralization in these trenches is approximately 70 meters lower in elevation compared to trenches TR-01 and TR-04 which further supports that the North zone contains a gold-silver zone and a pure silver zone. Trench TR-13 was terminated at its south end due to deep colluvium cover where the last sample returned 185.2 g/t Ag.

South Zone Trench Results

Trenching has exposed the silver mineralization for over 400 metres in the South zone. Highlights from the 2012 trenching results show that the most easterly trench TR-07 returned 23.80 metres of 83.06 g/t Ag. Additionally, historical drill results approximately 200 metres east of trench TR-07 suggest that the silver mineralization continues to the east. The most westerly trench in the South zone, trench TR-02 returned 42.62 metres of 130.98 g/t Ag. The new Escondida zone is located a further 500 metres to the southwest of trench TR-02 and it is likely this new zone is the lateral extension of the South zone. This may expand the potential for the South zone to over 1100 metres. The precious metal mineralization thus far determined in the South zone is predominantly silver compared to the North zone which has considerable gold credits.

Niñobamba 2012 Trench Assays
The following table summarizes the 2012 trenching results:

Niñobamba North and South Zone Map

The following map shows the location of the trenches, historic drill holes and the new zones identified from surface grab sampling:

Adjacent Zones Acquired from Newmont

In 2016, the Company acquired three concessions adjacent to the main Ninobamba zone from Newmont Mining Corp. and Southern Peru Copper Corp. The acquisition included an extensive database with results and reports from a substantial exploration program also encompassed by the 553 hectares.

The Jorimina zone is situated within a collapsed caldera and the rocks are dominantly rhyolite to dacite volcanics and are believed to be part of the same high-sulphidation silver-gold system identified on the main Ninobamba zones. Gold and silver mineralization in the zone is related to north easterly striking, steeply dipping, quartz-galena-pyrite veins and veinlets. Surface work programs completed by Newmont Mining included mapping, 2147 rock samples, and induced polarization geophysics that identified a gold anomalous area (>0.1 gram per tonne Au) of at least 700 metres by 1000 metres and four strong chargeability anomalies coinciding with gold-silver in rock anomalies. Two of the four chargeability anomalies were defined as 680 metres by 150 metres and 700 metres by 200 metres. Highlights of the surface sampling from channel rock samples from the historic database include 17.4 metres of 3.06 grams per tonne (g/t) Au and 200 metres of 0.26 g/t Au. The Company has not completed work to verify these historical results.

From 2009 to 2010, Newmont Mining Corp. completed thirteen diamond drill holes totaling 4377 metres at Jorimina and limited detailed assays are available from the mineralized drill-hole intercepts in this zone. In highlight from the historic reports available, the better intercept from those holes, show drill-hole JOR-001 returned 72.3 metres of 1.19 grams per tonne (g/t) Au starting at 53 metre depth. The true widths of mineralization from this drilling are not yet known.

The Jorimina zone is located 6.5 kilometers west of the main Ninobamba mineralized zones located on the original concessions owned by the Company. Historical diamond drilling results conducted by AngloGold in 2001 on the main zone included DDH-2, which reported assay results of 87 g/t silver over a drilled interval of 130 metres starting from a depth of nine metres, and DDH-4, reporting 54 g/t silver over a drilled interval of 96 metres starting from 23 metres. The true widths of mineralization from this drilling are not yet known.

Future Exploration Plans

The Company is in the final permitting stages to commence a first phase drill program in Q4 2024.