Drill targets defined at the Espejo Project within the ENAMI EP Strategic Exploration Alliance in NW Ecuador - Seite 3

Anomaly ESP # 2

Similar magnetic data processing and modeling were performed on the ESP #2 anomaly where anomalous Cu-Mo (Au) in rocks were confirmed by systematic soil sampling (Figures 6), showing a perfect overlap of these 3 elements (Figure 7, upper plate). The Cu/Zn ratio defines a NW-SE oriented, 1.0km by 0.7km, soil anomaly open to the east and southeast (Figure 7, lower plate). Initial channel sampling yielded highly anomalous Cu and Mo results (Figure 6) associated to potassic and phyllic altered intrusives and volcanic host rocks: 1) 16.2m at 0.24 g/t Au, 455 ppm Cu and 48 ppm Mo, 2) 33.5m at 0.12 g/t Au, 500 ppm Cu and 27 ppm Mo, 3) 15.9m at 757 ppm Cu and 64 ppm Mo, and 4) 76.2m at 280 ppm Cu and 34 ppm Mo. Several magnetic bodies are present at depth. Although still incomplete, all data collected to date was integrated to define a conceptual Phase 1 drilling program (10 holes and 5,000 metres) for testing the surface (geology and geochem) and sub-surface (magnetic) anomalies. Part of the program is shown on a NE-SW cross section (Figure 8). Further mapping and sampling is ongoing on this target with the objective to complete modeling and better characterize/prioritize individual targets to be drill-tested later this year.

Update on the Playa Rica and Rio Magdalena Concession Blocks

Playa Rica

Work at the Playa Rica block is on hold due to local political opposition from anti-mining actors. Community information and engagement programs are being designed in collaboration with regional authorities and stakeholders.

Rio Magdalena

Work is suspended at the Rio Magdalena block pending a decision in the Constitutional Court of Ecuador on a challenge filed by ENAMI to a lower court decision that purported to invalidate the “environmental registration” (registro ambiental) exploration permit granted by the Ministry of Environment (ME) for the Rio Magdalena block of concessions in the ENAMI-CESA SEA.

Rio Magdalena is located partially within Ecuador’s “Los Cedros” Protected Forest (Bosque Protector). Despite the name, mineral exploration and mining are not prohibited in Ecuadorian protected forests under the Constitution and legal framework, although they are subject to somewhat stricter environmental controls. Mineral exploration and mining are prohibited only in a National Park that borders Rio Magdalena and in other “SNAP” (Sistema Nacional de Areas Protegidas) areas, i.e., national parks, urban areas and so-called “intangible zones” (i.e., isolated indigenous zones with the Amazon jungle basin).