Significant New Soil Anomaly Identified in Southeastern Block at Abriaqui, Becomes Major Target For Phase 2 Drilling - Seite 2

The southeastern block has a similar geologic setting to the main vein area drilled in Phase 1 (Figure 1). A sequence of subvertical, northwest and east-west trending, high grade gold-bearing veins have a similar mineralogical and geochemical signature. The veins have been traced vertically for a minimum 1200 meters from the highest topographic elevation on the property at 2770 meters to the deepest drill intercept at the 1540m elevation with the high grade gold potential still open below that depth.

Gold results from a preliminary soil grid in the southeast were reported in the press release dated August 19, 2020. Figure 1 shows these results along with the new grid expansion to the south. Most known veins are in areas of gold-anomalous soils but there are many areas where significant soil anomalies are not explained by known mineralization. In the Phase 1 drill area to the northwest, new veins were discovered under many areas of 100+ parts per billion gold in soils. Similar anomalous areas in the southeast are represented by the yellow, orange, and red samples in Figure 1. The most obvious anomaly is a 600m continuous east-west trend, open to the east, of >1 g/t gold in soil which appears to correspond to a mapped sequence of E-W and NW-trending veins. A second anomaly in the southern part of the grid is not explained by any known mineralization. As noted in the Press Release of October 22, 2020, it is coincident with a magnetic high which is open to the south beyond the current geophysical grid.

The Southeast block is highly prospective as it contains more than 20 mapped veins which have been exploited for decades in numerous small mines. The great advantage is that it is the topographically highest part of the property package with all known mineralization being exposed above the 2300 meter elevation. This means that all veins in the area have a minimum 800-1200 meter vertical range of prospectivity.

The block is significantly underexplored due to limited road access and steep terrain but the drill being mobilized can be transported by helicopter. Figure 1 shows five holes totaling up to 2500 meters which are the pricipal candidates for an expanded Phase 2 program. They target the two principal soil anomalies and many of the known vein systems. The drill has a capacity of 1000+ meters and will provide a good view of the upper 500-700 meters of the geological system with a series of holes angled at -45 degrees. The southeast block will be drilled following the initial 4000 meters in the main vein area.