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EV RESOURCES LTD Capital/Financing Update 2022

Aug 29, 2022

64887_rns_2022-08-29_5b5ce93c-f429-46fd-9db7-841757bb4a3b.pdf

Capital/Financing Update

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ASX ANNOUNCEMENT

30[th] August 2022

Exploration Commences at Don Enrique Copper-Silver-Gold Project

HIGHLIGHTS

  • Exploration has commenced at The Don Enrique Project (the “ Project ”), EVR’s 50% owned copper-silver-gold project in Peru after successful community meetings confirmed support for the project.

  • EVR’s Peruvian Exploration Team is taking systematic channel samples along 2 separate orebodies with a 1500-meter outcrop on the Southern orebody, and in an exploration crosscut 300 metres below the brow of the mountain.

  • Exploration will test possible extensions of the orebody in the Northern orebody, where historic grab sample assayed as high as 4.81% Cu[1] .

  • Quotes have been received for conducting IP and Magnetometry Geophysical surveys at site.

  • The Drilling permit is under preparation and will be submitted in Q4,2022.

EV Resources Limited (ASX:EVR) (“ EVR ”, or the “ Company ”) is pleased to announce that exploration has commenced after weeks of successful and constructive engagement with the communities in close proximity of the Don Enrique Project in Peru. The communities are contributing labour to the exploration campaign, and EVR’s specialist community team are in continual dialogue with the communities to establish a long-term relationship of trust, co-operation, and respect. The Project is owned by EVR’s 50% owned subsidiary, Minera Montserrat SAC. EVR holds a 2-year option to purchase the remaining 50% of Minera Montserrat SAC.

==> picture [377 x 126] intentionally omitted <==

Photo 1. Panoramic View of the Don Enrique Project site (Southern Orebodies)

1 This Sample number 25531 (see Table 1 attached), is located at E 460056 and N 8713232(WGS 84) evresources.com.au

311-313 Hay St Subiaco, Western Australia 6008 +61 (0) 8 6489 0600 [email protected]

The exploration programme has commenced with an underground sampling programme in a series of 4 exploration cross cuts developed by a Peruvian mid-tier company in the 1980’s, which neatly allows evaluation of the 2 separate and parallel hydrothermal breccia orebodies estimated to vary between 5-20 metres in width, over a 1500 metre outcropping strike, and separated by an andesite parting typically 90 metres in width.

==> picture [435 x 288] intentionally omitted <==

Photo 2. Panoramic View of Body 1 and Body 2, the separation between them is 90 metres. Each body has a length of 1.5km and a width of 5-20metres. The vertical extent is 300 metres.

It is in this crosscut, that historic grab sampling (verified by EVR’s geological team), had assayed up to 7.17% Copper in Sample RDEN-1 (taken at E 459997, and N 8712314 using Datum WGS84).

Page 2 of 22

==> picture [396 x 234] intentionally omitted <==

Photo 3. Orebody 1, at the entrance to old adit. With Copper oxides (maiachite-azurite in the walls).

Channel samples that are 2 meters in length are being collected with a manual rock cutter and diamond saw, supported by a small generator on site to recharge batteries. Conventional QA/QC controls are being employed by experienced geologists under the leadership of Mr Gonzalo Lemuz, a veteran geologist who has held leadership positions in major and junior companies with a focus on copper and gold.

==> picture [377 x 250] intentionally omitted <==

Photo 4. Accessing Cross Cut for Sampling

Page 3 of 22

==> picture [389 x 270] intentionally omitted <==

Photo 5. Channel Sample Being Cut Underground

The Don Enrique Project

The Project consists of 4 licences covering 1,800Ha, in an area 21km northeast of Jauja, and approximately 260km from the Nation’s capital, Lima:

  • Don Enrique, Licence number: 0100769-12, 1000 Ha.

  • Chaupiloma 2007, Licence Number: 0105549-07, 100 Ha.

  • Chaupiloma 2008, Licence Number: 0101581-08, 100 Ha.

  • COCOA BEACH, Licence Number: 010155815, 600 Ha.

EVR purchased 50% of the project in Q2, 2022 from a group of shareholders for US$150,000 paid in cash and then purchased a 2-year option for US$150,000 paid in cash, to purchase the remaining 50% of the shares for a single cash payment of US$850,000 payable in cash, and a 1% NSR royalty.

Geological Description

The outcropping system at Don Enrique presents as two zones of massive silicification, about 100m apart, one approximately 5m wide and the other 15 to 20m wide, dipping steeply east and striking 320°. The wider, western, vein has a matrix of quartz carbonate and contains pods of massive sulphide with the assemblage pyrite-chalcopyrite-galena and lesser sphalerite-stibnite, with later possibly supergene bornite (Yparraguirre and Blas Rodriguez, 2019). The vein hanging wall has a 2m thick hydrothermal breccia zone. The veins are hosted in an intrusive rock which has been mapped variously as diorite or hypabyssal andesite; it cuts a sequence of dacites and volcanosedimentary rocks of the Mitu Group, Permian in age. There is an evident structural control which may be related to a regional scale SW-NE fault in the valley floor.

The western vein/breccia has been explored (probably in the 1960s) via an underground drive 80m long and four crosscuts of 15m to 20m which cut the structure. On surface, the two silicified structures can be traced for approximately 1 km in the Southern Area.

Page 4 of 22

On the northern side of the main valley, the host intrusives have been mapped for a further 500m strike length with anomalous Cu, Pb and Zn rock chip geochemistry. Veins of quartz with chalcopyrite, galena and molybdenite have been mapped with widths up to 1.5m and continuity up to 30m (Durand and Cortez, 2014).

The mineralogy and geochemistry of the polymetallic veins/breccias suggest that the system is distally related to a porphyry copper. No source intrusion has been recognized to date.

Anomalous values of gold and silver, along with fluid inclusion temperatures in the 150°C to 220°C range, suggest the presence of an epithermal overprinting mineralization event exploiting the same structural control. A suite of typical pathfinder elements (As-Sb-Bi-Hg) are also anomalous and reinforce the idea of an epithermal overprint.

==> picture [452 x 349] intentionally omitted <==

Figure 1. Geological Map Don Enrique Scale 1/10,000. WGS84

Within this area, numerous grab samples were taken by previous owners and verified by EVR’s exploration team. These are shown in Figures 2-4 below, and a full list of samples is provided in Table 1, attached.

Page 5 of 22

==> picture [595 x 138] intentionally omitted <==

Figure 2. Grab Samples for Copper (Cu%)

==> picture [305 x 249] intentionally omitted <==

Figure 3. Grab Samples Assayed for Silver (Ag ppm)

Page 6 of 22

==> picture [595 x 138] intentionally omitted <==

Figure 4. Grab Samples for Gold (Au ppm)

The rationale for commencing exploration in the old exploration adits and cross cuts is the excellent presentation of geological structure and mineralisation, which has given EVR the confidence to commence drill permitting.

==> picture [421 x 259] intentionally omitted <==

Figure 5. Historic Sampling in Old Exploration Adit and Cross Cuts for Copper (Cu %)

Page 7 of 22

==> picture [454 x 283] intentionally omitted <==

Figure 6. Historic Sampling in old Exploration Adit and Cross Cut for Gold (Au ppm)

==> picture [454 x 288] intentionally omitted <==

Figure 7. Historic Sampling in old Exploration Adit and Cross Cut for Silver (Ag ppm)

Page 8 of 22

Geophysics and Drill Permitting

A geophysical Exploration Programme employing IP (Induced Polarisation) and Magnetometry is being planned to follow the sampling and select drilling targets.

EVR has employed the services of Aquarum S.A.C, a specialist permitting consultancy, to prepare the drilling permits, and their team have been on site since 15th August compiling baseline data for inclusion in the drill permit application planned to be submitted in Q4, 2022.

Exploration Potential

The highest values in rock chips occur in the underground samples, which raises the possibility that surface weathering may have leached metals and reduced the geochemical contrast for the surficial samples which represent most of the area.

There is clear potential at Don Enrique for two possible scenarios:

  1. Small scale underground mining of the silicified breccias themselves, with the potential for high grade epithermal pods in structurally controlled jogs.

  2. A possible porphyry system at depth which is the fluid source. Because of the uplift rates often encountered in the Andes, it is often possible to find related porphyry and epithermal systems in relatively close proximity.

Further exploration, including both geophysics and drilling, is justified to investigate both possibilities.

ENDS

For further information, please contact:

Luke Martino Adrian Paul Non-Executive Chairman Executive Director Tel: +61 8 6489 0600 Tel: +61 8 6489 0600 E: [email protected] E: [email protected]

This ASX announcement was authorised for release by the Board of EV Resources Limited.

Forward Looking Statement

Forward Looking Statements regarding EVR´s plans with respect to its mineral properties and programs are forward-looking statements. There can be no assurance that EVR’s plans for development of its mineral properties will proceed as currently expected. There can also be no assurance that EVR will be able to confirm the presence of additional mineral resources, that any mineralisation will prove to be economic or that a mine will successfully be developed on any of EVR’s mineral properties. The performance of EVR may be influenced by a number of factors which are outside the control of the Company and its Directors, staff, and contractors. These statements include, but are not limited to statements regarding future production, resources or reserves and exploration results. All of such statements are subject to certain risks and uncertainties, many of which are difficult to predict and generally beyond the control of the company, that could cause actual results to differ materially from those expressed in, or implied or projected by, the forward-looking information and statements. These risks and uncertainties include, but are not limited to: (i) those relating to the interpretation of drill results, the geology, grade and continuity of mineral deposits and conclusions of economic evaluations, (ii) risks relating to possible variations in reserves, grade, planned mining dilution and ore loss, or recovery rates and changes in project parameters as plans continue to be

Page 9 of 22

refined, (iii) the potential for delays in exploration or development activities or the completion of feasibility studies, (iv) risks related to commodity price and foreign exchange rate fluctuations, (v) risks related to failure to obtain adequate financing on a timely basis and on acceptable terms or delays in obtaining governmental approvals or in the completion of development or construction activities, and (vi) other risks and uncertainties related to the company’s prospects, properties and business strategy. Our audience is cautioned not to place undue reliance on these forward-looking statements that speak only as of the date hereof, and we do not undertake any obligation to revise and disseminate forwardlooking statements to reflect events or circumstances after the date hereof, or to reflect the occurrence of or non-occurrence of any events.

Competent Person’s Statement

The information in this announcement that relates to the Don Enrique Copper Project, is based on information compiled by Dr Stephen Windle who is a Member of the Australian Institute of Geoscientists. Dr Windle is a consultant to EVR. Dr Windle has sufficient experience which is relevant to the style of mineralisation and type of deposit under consideration and to the activity which he is undertaking to qualify as a Competent Person as defined in the 2012 Edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves”. Dr Windle consents to the inclusion in this announcement of the matters based on information in the form and context in which it appears.

Compliance Statement

This announcement contains information on the Don Enrique Copper Project extracted from an ASX market announcement dated 28 February 2022 and reported in accordance with the 2012 edition of the “Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves” ("2012 JORC Code"). EVR confirms that it is not aware of any new information or data that materially affects the information included in the original ASX market announcement.

Page 10 of 22

Appendix 1-Table of compiled rock chip geochemistry for selected elements

SAMPL
E ID
COMPANY YEA
R
E_WGS8
4
N_WGS8
4
ELEVATIO
N
ROCK_TYPE Au_ppm Ag_pp
m
As_pp
m
Bi_pp
m
Cu_pp
m
RRDE-1 CopperFiel
d
2018 460005.8 8712317 4433 0.326 539 53.5 908 25700
RRDE-2 CopperFiel
d
2018 459997.9 8712316 4433 0.071 317 21.2 385 34900
RRDE-3 CopperFiel
d
2018 459993.3 8712306 4433 0.027 42.7 21.9 27.24 14800
RRDE-4 CopperFiel
d
2018 460001.9 8712305 4433 0.053 10.7 23.1 51.04 2248
RRDE-5 CopperFiel
d
2018 460006.2 8712304 4433 0.15 14.8 23.2 41.05 5977
RRDE-6 CopperFiel
d
2018 460005.9 8712273 4433 0.016 61.3 18.4 12.16 4382
109681 CUMBREX 2014 460404.1 8711783 4643.5 Quartz vein 0.557 5 118
109682 CUMBREX 2014 460404.1 8711780 4643.5 Quartz vein 0.034 7.8 153
109683 CUMBREX 2014 460520.1 8711789 4643.5 Quartz vein 0.02 1.8 168
109684 CUMBREX 2014 460381.1 8711971 4615 Quartz vein 0.009 1.3 93
109685 CUMBREX 2014 460288.1 8712027 4572.6 Quartz vein 0.034 3 99
109686 CUMBREX 2014 460281.1 8712014 4572.3 Quartz vein 0.007 1.4 205
109687 CUMBREX 2014 460279.1 8712013 4572.4 Quartz vein 0.018 1.3 200
109688 CUMBREX 2014 460236.1 8712062 4556.9 Quartz vein 0.0025 0.5 64
109689 CUMBREX 2014 459984.1 8712348 4434.2 Not
observed
0.0025 0.5 249
109691 CUMBREX 2014 459982.1 8712347 4434 Breccia 0.007 22 1240
109692 CUMBREX 2014 459979.4 8712347 4433.3 Breccia 0.0025 2.9 726
109693 CUMBREX 2014 459977 8712346 4433.6 Breccia 0.0025 13 1890
109694 CUMBREX 2014 459973.2 8712346 4432.6 Pyroclastic
rock
0.0025 8 1040
109695 CUMBREX 2014 459927.1 8712535 4393.5 Quartz vein 0.0025 0.5 56
109696 CUMBREX 2014 459925.1 8712536 4393.5 Quartz vein 0.0025 0.5 99
109711 CUMBREX 2014 459992.9 8712262 4433 Pyroclastic
Rock
0.0025 0.5 26
109712 CUMBREX 2014 459992 8712262 4433 Pyroclastic
Rock
0.0025 0.5 9
109713 CUMBREX 2014 459991.7 8712263 4433 Pyroclastic
Rock
0.0025 0.5 98
109714 CUMBREX 2014 459991.3 8712264 4433 Pyroclastic
Rock
0.0025 0.5 49
109715 CUMBREX 2014 459991.8 8712269 4433 Pyroclastic
Rock
0.01 18 2130
109716 CUMBREX 2014 459990.8 8712270 4433 Pyroclastic
Rock
0.008 13.3 1010
109717 CUMBREX 2014 459987.1 8712273 4433 Pyroclastic
Rock
0.018 12 520
109718 CUMBREX 2014 459985.8 8712274 4433 Diorite 0.0025 0.5 45
109719 CUMBREX 2014 460007.8 8712274 4433 Pyroclastic
Rock
0.0025 1.3 106
109721 CUMBREX 2014 460006 8712275 4433 Pyroclastic
Rock
0.015 10.7 884
109722 CUMBREX 2014 460004.1 8712275 4433 Pyroclastic
Rock
0.043 81.1 3590
109723 CUMBREX 2014 460002.4 8712276 4433 Pyroclastic
Rock
0.861 386 24500
109724 CUMBREX 2014 460000.5 8712277 4433 Pyroclastic
Rock
0.023 67.8 3550
109725 CUMBREX 2014 459998.4 8712278 4433 Pyroclastic
Rock
0.009 46.4 3430
109726 CUMBREX 2014 459996.5 8712278 4433 Pyroclastic
Rock
0.074 48.6 4060
109727 CUMBREX 2014 459994.5 8712279 4433 Pyroclastic
Rock
0.016 25.8 2040
109728 CUMBREX 2014 459992.7 8712280 4433 Pyroclastic
Rock
0.007 6 288
109729 CUMBREX 2014 460005.8 8712292 4433 Pyroclastic
Rock
0.0025 9.3 368
109731 CUMBREX 2014 460003.8 8712292 4433 Pyroclastic
Rock
0.008 7 579
109732 CUMBREX 2014 460001.8 8712292 4433 Pyroclastic
Rock
0.013 14 793
109733 CUMBREX 2014 459999.8 8712292 4433 Pyroclastic
Rock
0.018 50.7 3230

Page 11 of 22

1880
1020
391
1900
1440
2800
254
214
13800
7680
6840
5230
1160
13400
2650
2980
8210
38500
4060
2160
12000
28500
9990
34900
4750
28500
4330
1410
21400
25900
767
40800
117
199
1750
7290
2460
1890
1880
585
587
1100
50
109734 CUMBREX 2014 459997.8 8712292 4433 Pyroclastic
Rock
0.009 18 1880
109735 CUMBREX 2014 459995.8 8712292 4433 Pyroclastic
Rock
0.006 8.3 1020
109736 CUMBREX 2014 459993.8 8712292 4433 Pyroclastic
Rock
0.0025 1.4 391
109737 CUMBREX 2014 459999.8 8712294 4433 Pyroclastic
Rock
0.027 24 1900
109738 CUMBREX 2014 459997.8 8712294 4433 Pyroclastic
Rock
0.008 9 1440
109739 CUMBREX 2014 459995.8 8712294 4433 Pyroclastic
Rock
0.018 15 2800
109741 CUMBREX 2014 459993.8 8712293 4433 Pyroclastic
Rock
0.0025 4 254
109742 CUMBREX 2014 460006.8 8712304 4433 Pyroclastic
Rock
0.0025 0.5 214
109743 CUMBREX 2014 460005.1 8712304 4433 Pyroclastic
Rock
0.549 43 13800
109744 CUMBREX 2014 460003.3 8712305 4433 Pyroclastic
Rock
0.072 65.1 7680
109745 CUMBREX 2014 460001.3 8712305 4433 Pyroclastic
Rock
0.067 135 6840
109746 CUMBREX 2014 459999.4 8712305 4433 Pyroclastic
Rock
0.024 36 5230
109747 CUMBREX 2014 459997.3 8712306 4433 Pyroclastic
Rock
0.0025 3.8 1160
109748 CUMBREX 2014 459995.3 8712306 4433 Pyroclastic
Rock
0.046 48 13400
109749 CUMBREX 2014 460008.3 8712317 4433 Pyroclastic
Rock
0.055 6.7 2650
112861 CUMBREX 2014 460006.3 8712317 4433 Pyroclastic
Rock
0.017 12 2980
112862 CUMBREX 2014 460004.4 8712317 4433 Pyroclastic
Rock
0.09 82 8210
112863 CUMBREX 2014 460002 8712317 4433 Pyroclastic
Rock
0.199 1296 38500
112864 CUMBREX 2014 460000.4 8712316 4433 Pyroclastic
Rock
0.006 19.4 4060
112865 CUMBREX 2014 459998.6 8712316 4433 Pyroclastic
Rock
0.0025 15 2160
112866 CUMBREX 2014 459996.3 8712316 4433 Pyroclastic
Rock
0.033 96 12000
112867 CUMBREX 2014 459994.7 8712316 4433 Pyroclastic
Rock
0.059 186 28500
112868 CUMBREX 2014 460002.3 8712318 4433 Pyroclastic
Rock
0.023 41.7 9990
112869 CUMBREX 2014 460002.8 8712317 4433 Pyroclastic
Rock
0.114 655 34900
112871 CUMBREX 2014 459995.8 8712318 4433 Pyroclastic
Rock
0.008 34 4750
112872 CUMBREX 2014 459995.8 8712316 4433 Pyroclastic
Rock
0.124 213 28500
112873 CUMBREX 2014 459984.8 8712346 4433 Pyroclastic
Rock
0.033 102 4330
112874 CUMBREX 2014 459982.8 8712345 4433 Pyroclastic
Rock
0.016 18 1410
112875 CUMBREX 2014 460056.1 8713248 4474.5 Vein 0.009 49 21400
112876 CUMBREX 2014 460064.1 8713243 4472.7 Vein 0.016 98.7 25900
112987 CUMBREX 2014 459957.4 8712321 4439.4 Not
Observed
0.007 2.9 35.8 5.45 767
112988 CUMBREX 2014 459954.4 8712321 4438.8 Quartz vein 0.135 959 75.3 2409 40800
112989 CUMBREX 2014 460004 8712258 4492.8 Quartz vein 0.0025 2.8 5.2 8.73 117
112991 CUMBREX 2014 458518 8711323 4469.1 Not
Observed
0.015 28.2 46.3 12.62 199
117571 CUMBREX 2014 459975.4 8712336 4433 Not
observed
0.013 17 1750
117572 CUMBREX 2014 459979.5 8712333 4433 Quartz vein 0.021 85.2 7290
117573 CUMBREX 2014 459983.4 8712337 4433 Quartz vein 0.014 21 2460
117574 CUMBREX 2014 459983.3 8712341 4433 Quartz vein 0.023 16.7 1890
117575 CUMBREX 2014 460135.1 8712061 4550 Breccia 0.061 8 1880
117576 CUMBREX 2014 460133.1 8712059 4550.4 Breccia 0.0025 1 585
117577 CUMBREX 2014 460128.1 8712058 4550.7 Not
observed
0.0025 1.6 587
117578 CUMBREX 2014 460124.1 8712059 4551.2 Not
observed
0.0025 2.6 1100
117579 CUMBREX 2014 460168.1 8712204 4527.1 Breccia 0.006 2 50

Page 12 of 22

130
142
70
117
1590
599
410
674
136
1730
5000
817
113
1300
194
7
35
147
109
31.8
55.7
15.5
15.4
164
162
30.2
2480
51.4
1750
6900
17.1
11.9
4.9
24.2
2.6
9.8
1750
283
9920
5810
1710
3960
1680
82.4
44.6
117581 CUMBREX 2014 460165.1 8712202 4526.7 Quartz vein 0.044 2.4 130
117582 CUMBREX 2014 460149.1 8712239 4516.4 Quartz vein 0.031 2.3 142
117583 CUMBREX 2014 460148.1 8712237 4516.6 Quartz vein 0.35 1.4 70
117584 CUMBREX 2014 460046.1 8712205 4510.5 Quartz vein 0.006 4 117
117585 CUMBREX 2014 460045.1 8712203 4510.9 Quartz vein 0.056 54.3 1590
117586 CUMBREX 2014 460040.1 8712203 4510.6 Quartz vein 0.012 15.8 599
117587 CUMBREX 2014 460036.1 8712205 4509.7 Quartz vein 0.038 12 410
117588 CUMBREX 2014 460033.1 8712201 4510.4 Quartz vein 0.0025 3.6 674
117589 CUMBREX 2014 459989.1 8712326 4446.4 Pyroclastic
rock
0.0025 1 136
117591 CUMBREX 2014 459986.1 8712325 4446 Quartz vein 0.01 10.6 1730
117592 CUMBREX 2014 459983.1 8712326 4444.3 Quartz vein 0.061 43.6 5000
117593 CUMBREX 2014 459982.1 8712325 4444.5 Quartz vein 0.009 13.7 817
117594 CUMBREX 2014 459980.1 8712324 4444.4 Quartz vein 0.0025 5.9 113
117595 CUMBREX 2014 459977.1 8712321 4445.1 Quartz vein 0.016 28 1300
117596 CUMBREX 2014 459977.1 8712319 4446.3 Pyroclastic
rock
0.0025 2.3 194
117597 CUMBREX 2014 460398.1 8711638 4609.6 Not
observed
0.0025 0.5 7
117598 CUMBREX 2014 460302.1 8711674 4599.3 Not
observed
0.0025 0.5 35
117599 CUMBREX 2014 460403.1 8711787 4643.5 Quartz vein 0.983 8 147
RR-
00187
LA
MORENA
2012 460403.1 8711791 4643.5 ESTRUCTUR
A
0.048 3.5 142 8 109
RR-
00188
LA
MORENA
2012 460381.1 8711961 4616.2 ESTRUCTUR
A
0.0025 0.5 82 7 31.8
RR-
00189
LA
MORENA
2012 460233.1 8712062 4556.5 ESTRUCTUR
A
0.0025 0.5 30 2.5 55.7
RR-
00190
LA
MORENA
2012 460284.1 8712135 4561.7 Diorita 0.0025 0.1 10 2.5 15.5
RR-
00191
LA
MORENA
2012 460240.1 8712068 4556.9 Dacitico 0.0025 0.1 18 5 15.4
RR-
00192
LA
MORENA
2012 460004.1 8712139 4525.2 ESTRUCTUR
A
0.012 5.8 106 14 164
RR-
00193
LA
MORENA
2012 460028.1 8712238 4500.6 ESTRUCTUR
A
0.037 4.4 30 145 162
RR-
00194
LA
MORENA
2012 459991.4 8712262 4433 Diorita 0.0025 0.1 6 2.5 30.2
RR-
00195
LA
MORENA
2012 460000.4 8712277 4433 ESTRUCTUR
A
0.035 40.3 11 19 2480
RR-
00196
LA
MORENA
2012 459986.4 8712273 4433 Diorita 0.0025 0.4 8 2.5 51.4
RR-
00197
LA
MORENA
2012 460000.4 8712294 4433 ESTRUCTUR
A
0.019 10.4 33 32 1750
RR-
00198
LA
MORENA
2012 460000.4 8712318 4433 ESTRUCTUR
A
0.01 57.8 20 109 6900
RR-
00199
LA
MORENA
2012 459374.1 8713422 4465.4 Dacitico 0.011 0.1 6 2.5 17.1
RR-
00200
LA
MORENA
2012 459353.1 8713433 4472.3 Dacitico 0.0025 0.1 4 2.5 11.9
RR-
00205
LA
MORENA
2012 459408.1 8713552 4451.7 Diorita 0.0025 0.1 4 2.5 4.9
RR-
00206
LA
MORENA
2012 459283.1 8713559 4501.5 Dacitico 0.0025 0.1 7 2.5 24.2
RR-
00207
LA
MORENA
2012 459161.1 8713561 4589.1 Dacitico 0.0025 0.1 1.5 2.5 2.6
RR-
00208
LA
MORENA
2012 459074.1 8714083 4532.6 Dacitico 0.0025 0.1 7 2.5 9.8
RR-
00209
LA
MORENA
2012 460057.1 8713245 4473.3 Dacitico 0.012 6.6 11 6 1750
RR-
00210
LA
MORENA
2012 460006.4 8712304 4433 Dioritico 0.021 0.8 20 7 283
RR-
00211
LA
MORENA
2012 460003.4 8712305 4433 Dioritico 0.089 58.9 98 407 9920
RR-
00212
LA
MORENA
2012 460000.4 8712305 4433 ESTRUCTUR
A
0.04 56.3 248 1229 5810
RR-
00213
LA
MORENA
2012 459997.4 8712306 4433 ESTRUCTUR
A
0.033 4.1 60 19 1710
RR-
00214
LA
MORENA
2012 459995.4 8712306 4433 ESTRUCTUR
A
0.009 14.9 58 19 3960
RR-
00215
LA
MORENA
2012 459992.4 8712303 4433 ESTRUCTUR
A
0.006 8.5 56 21 1680
RR-
00445
LA
MORENA
2012 460522.1 8711789 4643.5 ESTRUCTUR
A
0.01 0.8 18 9 82.4
RR-
00446
LA
MORENA
2012 460518.1 8711510 4569.1 ESTRUCTUR
A
0.0025 0.1 1.5 2.5 44.6

Page 13 of 22

8
1.8
1.1
0.6
0.6
48
72.5
59.7
1370
7.4
6.3
337
7.6
3.9
12.7
10000
6693
10.3
150
71700
13400
7291
20900
10200
489
10900
27100
18100
12
1735
2400
2220
1285
1405
1835
17
29
17200
259
29
264
1390
55
4440
58
651
103
2870
RR-
00447
LA
MORENA
2012 460444.1 8711490 4529.1 DIORITA 0.0025 0.2 14 2.5 8
RR-
00448
LA
MORENA
2012 460177.1 8710956 4493.7 ESTRUCTUR
A
0.0025 0.1 4 2.5 1.8
RR-
00449
LA
MORENA
2012 460758.1 8711109 4477.7 DACITE 0.0025 0.2 8 2.5 1.1
RR-
00450
LA
MORENA
2012 460785.1 8711071 4484.9 DACITE 0.014 0.1 14 2.5 0.6
RR-
00451
LA
MORENA
2012 461105.1 8710885 4585 VEIN 0.0025 0.1 10 2.5 0.6
RR-
00452
LA
MORENA
2012 461168.1 8710855 4572.1 VEIN 0.033 0.6 10 2.5 48
RR-
00453
LA
MORENA
2012 461147.1 8710890 4584.3 VEIN 0.0025 0.6 10 2.5 72.5
RR-
00454
LA
MORENA
2012 461069.1 8710986 4593.5 VEIN 0.005 2.2 28 2.5 59.7
RR-
00455
LA
MORENA
2012 460569.1 8711690 4643.5 VEIN 0.011 2.3 17 2.5 1370
RR-
00456
LA
MORENA
2012 460975.1 8711650 4684.9 DACITE 0.0025 0.1 4 2.5 7.4
RR-
00457
LA
MORENA
2012 460938.1 8711530 4687 DACITE 0.0025 0.1 1.5 2.5 6.3
RR-
00458
LA
MORENA
2012 461066.1 8711401 4618.7 DACITE 0.0025 1.2 71 15 337
RR-
00459
LA
MORENA
2012 461200.1 8711752 4555.4 DACITE 0.0025 0.2 1.5 2.5 7.6
RR-
00460
LA
MORENA
2012 460776.1 8712253 4589.9 DACITE 0.0025 0.1 1.5 2.5 3.9
RR-
00461
LA
MORENA
2012 460335.1 8712193 4580 DACITE 0.0025 0.1 4 2.5 12.7
RR-
00476
LA
MORENA
2012 460004.1 8712320 4455 DIORITA 0.048 93.8 28 33 10000
2401 MARIANA
RES O
2015 459955.1 8712343 4433 Diorite 0.036 62.2 78 34 6693
2402 MARIANA
RES O
2015 460195.1 8712843 4393.5 Dacite 0.0025 0.3 6 2.5 10.3
2403 MARIANA
RES O
2015 459895.1 8713023 4425.6 Dacite 0.0025 0.4 8 2.5 150
RDEN-1 MASGLAS 2019 459997 8712314 4433 0.136 1269 134 3280 71700
RDEN-2 MASGLAS 2019 459997 8712274 4433 0.112 302 14 242 13400
RDEN-3 MASGLAS 2019 459999 8712302 4433 0.11 23.2 60 84 7291
RDEN-4 MASGLAS 2019 459991 8712313 4433 0.034 155 20 230 20900
RDEN-5 MASGLAS 2019 460222 8711928 4579.2 0.04 38.7 42 9 10200
RDEN-6 MASGLAS 2019 460397 8711783 4642 0.502 25.6 207 2.5 489
RDEN-7 MASGLAS 2019 460097 8713214 4464.4 0.025 21.7 21 2.5 10900
RDEN-8 MASGLAS 2019 460057 8713235 4469.6 0.049 142 45 2.5 27100
RDEN-9 MASGLAS 2019 460055 8713235 4469.7 0.006 79.9 12 6 18100
MDE-
001
MINES
MANAG
2013 460080.1 8712055 4552.4 0.011 0.2 17 1 12
MDE-
002
MINES
MANAG
2013 460059.1 8712146 4526.6 0.009 4.2 578 14 1735
MDE-
003
MINES
MANAG
2013 459965.1 8712352 4433 0.009 13 288 21 2400
MDE-
004
MINES
MANAG
2013 459965.1 8712352 4427.9 0.005 15.9 40 2 2220
MDE-
005
MINES
MANAG
2013 459965.1 8712352 4427.9 0.011 14.5 30 9 1285
MDE-
006
MINES
MANAG
2013 459965.1 8712352 4427.9 0.005 8.9 10 10 1405
MDE-
007
MINES
MANAG
2013 459949.1 8712361 4419.7 0.008 28.8 85 909 1835
817 SMC 457540.1 8712607 4593.5 0.005 2.5 45 5 17
818 SMC 457540 8712607 4593.5 0.005 1.7 24 5 29
819 SMC 458530 8714478 4636.8 0.042 146 6 55 17200
820 SMC 460563 8711967 4654.2 0.02 2 18 5 259
821 SMC 461002 8711659 4679.1 0.005 0.2 3 5 29
822 SMC 460628 8711595 4643.5 0.08 8.4 79 5 264
823 SMC 460404 8711779 4643.5 8.231 133 35 5 1390
7067 SMC 2013 459991.9 8712262 4433 0.003 0.1 13 2.5 55
7068 SMC 2013 459990.6 8712271 4433 0.008 15.6 215 19 4440
7069 SMC 2013 459985.4 8712275 4433 0.003 0.1 6 2.5 58
7071 SMC 2013 459987.4 8712275 4433 0.003 4.3 14 2.5 651
7072 SMC 2013 460008.6 8712273 4433 0.003 0.5 17 2.5 103
7073 SMC 2013 460006.7 8712273 4433 0.025 39.5 94 8 2870

Page 14 of 22

2940
1870
454
3050
2210
1680
1420
5340
1500
2260
914
36500
55
4980
1920
3360
3110
481
3330
82
127
895
272
1080
101
2440
50100
47300
1890
17100
2004
13200
48100
2384
3800
164.5
2720
265
107.5
193
814
1290
8450
6.6
7.3
4.4
6.3
45.6
5.6
2010
58.2
7074 SMC 2013 460002 8712275 4433 0.01 40.1 19 9 2940
7075 SMC 2013 459995.9 8712277 4433 0.003 17.2 16 2.5 1870
7076 SMC 2013 459993.2 8712278 4433 0.008 12.3 8 2.5 454
7077 SMC 2013 459991.2 8712278 4433 0.025 29.7 21 2.5 3050
7078 SMC 2013 459992 8712285 4433 0.017 28.9 75 2.5 2210
7079 SMC 2013 459997.2 8712293 4433 0.014 14.1 22 2.5 1680
7081 SMC 2013 460005.8 8712293 4433 0.054 25.4 35 35 1420
7082 SMC 2013 460003.1 8712305 4433 0.154 17.7 18 91 5340
7083 SMC 2013 459996.9 8712306 4433 0.006 2.6 64 8 1500
7084 SMC 2013 459993.5 8712309 4433 0.005 6.9 27 2.5 2260
7085 SMC 2013 460006.9 8712318 4433 0.003 4.4 52 17 914
7086 SMC 2013 460001.8 8712317 4433 0.115 1089 109 2285 36500
7087 SMC 2013 459995.2 8712316 4433 0.017 0.1 2 2.5 55
7088 SMC 2013 459979.7 8712333 4433 0.029 44 21 8 4980
7089 SMC 2013 459980.1 8712349 4433 0.011 36.9 9 62 1920
7091 SMC 2013 459983.5 8712336 4433 0.031 14.4 68 34 3360
7092 SMC 2013 459975 8712346 4433.3 0.006 13.2 2 7 3110
7093 SMC 2013 460031 8712207 4508.7 0.018 12.2 19 2.5 481
7094 SMC 2013 460056 8712152 4524.9 0.007 3.8 283 6 3330
7095 SMC 2013 460143 8712239 4515 0.086 0.6 9 2.5 82
7096 SMC 2013 460187 8712164 4538.6 0.005 2.3 23 2.5 127
7097 SMC 2013 460078 8712113 4535.8 0.024 13.7 936 228 895
7098 SMC 2013 460398 8711782 4642.5 0.93 19.1 242 23 272
7099 SMC 2013 460428 8711775 4643.5 0.015 10.1 182 2.5 1080
7101 SMC 2013 460278 8712028 4570.2 0.007 2 190 11 101
7102 SMC 2013 460628 8711630 4643.5 0.583 23.3 118 2.5 2440
25525 SOLITARIO 2018 459998.8 8712316 4433 V 0.133 997 71.7 2200 50100
25526 SOLITARIO 2018 459992.8 8712318 4433 V 0.066 278 29 300 47300
25527 SOLITARIO 2018 459995.8 8712316 4433 V 0.005 10.8 8.4 5.56 1890
25528 SOLITARIO 2018 459990.8 8712306 4433 V 0.027 66.6 8.5 48.48 17100
25529 SOLITARIO 2018 459976 8712349 4432.2 V 0.017 45.9 8.4 77.91 2004
25530 SOLITARIO 2018 460057 8713232 4468.5 0.008 54.4 0.05 0.005 13200
25531 SOLITARIO 2018 460056 8713232 4468.5 VNQZ 0.155 251 58 0.005 48100
25532 SOLITARIO 2018 460047 8713243 4471.7 0.0025 6.2 0.05 0.005 2384
26030 SOLITARIO 2012 459993.8 8712317 4453.1 0.03 17.25 43.4 83.3 3800
26031 SOLITARIO 2012 459986.2 8712293 4465.1 0.005 1.91 59.1 6.51 164.5
26032 SOLITARIO 2012 459987.7 8712271 4479.7 0.013 31.9 13.1 5.12 2720
26033 SOLITARIO 2012 460398 8711783 4642.4 0.319 8.91 157 3.48 265
26034 SOLITARIO 2012 460514 8711786 4643.5 0.013 1.25 16.7 3.19 107.5
26035 SOLITARIO 2012 460361 8711986 4598 0.012 1.78 182.5 10.25 193
26036 SOLITARIO 2012 460066 8712138 4529 0.01 5.04 297 5 814
26037 SOLITARIO 2012 460100 8713197 4456.8 0.01 1.69 65.6 0.54 1290
26038 SOLITARIO 2012 460094 8713214 4464.5 0.015 15.8 21.1 1.57 8450
75411 SOLITARIO 2012 459927 8712283 4450.2 0.06 10.4 1.82 6.6
75412 SOLITARIO 2012 460088 8712045 4555.1 MILKY QTZ 0.13 11.7 0.45 7.3
75413 SOLITARIO 2012 460031 8711979 4578.5 0.04 3.8 0.31 4.4
75414 SOLITARIO 2012 460041 8712068 4547.9 VOLC BX - EPICLAST 0.05 7.7 0.79 6.3
75415 SOLITARIO 2012 459954 8712081 4539 0.55 23.4 2.53 45.6
75416 SOLITARIO 2012 460093 8713189 4453.5 VOLC SANDSTONE? 0.06 3.8 0.25 5.6
95649 SOLITARIO 2012 459970 8712353 4428.9 0.01 36.9 17.1 107 2010
95650 SOLITARIO 2012 459973 8712357 4427.8 RHYODACITE? 0.3 10.4 0.95 58.2

Page 15 of 22

Appendix 2 - JORC Code, 2012 Edition – Table 1 report template

Section 1 Sampling Techniques and Data

(Criteria in this section apply to all succeeding sections.)

Criteria JORC Code explanation Commentary
Sampling
techniques
Nature and quality of sampling (eg cut channels, random chips, or specific
specialised industry standard measurement tools appropriate to the
minerals under investigation, such as down hole gamma sondes, or
handheld XRF instruments, etc). These examples should not be taken as
limiting the broad meaning of sampling.
Include reference to measures taken to ensure sample representivity and the
appropriate calibration of any measurement tools or systems used.
Aspects of the determination of mineralisation that are Material to the
Public Report.
In cases where ‘industry standard’ work has been done this would be
relatively simple (eg ‘reverse circulation drilling was used to obtain 1 m
samples from which 3 kg was pulverised to produce a 30 g charge for fire
assay’). In other cases more explanation may be required, such as where
there is coarse gold that has inherent sampling problems. Unusual
commodities or mineralisation types (eg submarine nodules) may warrant
disclosure of detailed information.
• Geochemical sampling consists of 229 samples, mostly linear
rock chips with some channel samples.
• Data were compiled by the vendors from eight different
sampling visits over the period 2012 to 2019. Various different
companies were involved in the sampling and subsequent
assaying as part of their due diligence to assess the project. As a
result, different laboratories and assay protocols were involved,
with most of the assay work done either at ALS Laboratories or
Certimin, both in Lima.
• There is limited petrographic and fluid inclusion work available
(Yparraguirre and Blas Rodriguez, 2019). Mostly, the
interpretation relies on assays combined with field
identification of copper minerals.
Drilling
techniques
Drill type (eg core, reverse circulation, open-hole hammer, rotary air blast,
auger, Bangka, sonic, etc) and details (eg core diameter, triple or standard
tube, depth of diamond tails, face-sampling bit or other type, whether core
_is oriented and if so, by what method, etc). _
• Not applicable – so far there is no drilling on the project
Drill sample
recovery
Method of recording and assessing core and chip sample recoveries and
results assessed.
Measures taken to maximise sample recovery and ensure representative
nature of the samples.
Whether a relationship exists between sample recovery and grade and
whether sample bias may have occurred due to preferential loss/gain of
fine/coarse material.
• Not applicable – so far there is no drilling on the project
Logging Whether core and chip samples have been geologically and geotechnically
logged to a level of detail to support appropriate Mineral Resource
• So far there is no drilling on the project. Sampling notes, with
summary geological descriptions,are available for rock chipand

Page 16 of 22

Commentary
channel sampling locations. These notes are qualitative and
from several different authors
• Work is not sufficiently advanced to support any kind of
Resource Estimation.
• There is not a sufficiently comprehensive program of duplicates
to assess the precision of the sampling. The author has
interviewed Nazario Anyoza, the geologist who was present for
the 2018 and 2019 sampling, and he described industry-
standard chip and channel sampling practices appropriate to
this type of early-stage exploration. The report by Cumbrex
(Durand and Cortez, 2014) describes linear chip sampling
appropriate to this type of early-stage exploration. Between
them, these two sample groups represent the majority of the
geochemical samples.
• The general consistency displayed between the eight
generations of sampling gives subjective confidence in the style
and geochemical characteristics of the mineralization.
• 100 of 229 samples have assay certificates, either in pdf or Excel
format, from Certimin or ALS. Of these, 6 use a total digest and
the remainder aqua regia for the multielement assay. Gold is
uniformly by 30g fire assay / AA finish.
• No field duplicates are reported. However, there is spatial
overlap of the various sampling campaigns which does give
some confidence about the general nature of the geochemical
anomalies, which is probably sufficient for an early-stage
project of this nature. Some laboratory duplicates are reported
by both Certimin and ALS which establish instrumental
precision to be within accepted limits. These labs also report
some commercial CRMs which are within established limits for
accuracy. Both Certimin and ALS are accredited by independent
auditors.
• Values without supporting assay certificates derive from a
compilation supplied bythe vendors. 25 of them have
Criteria JORC Code explanation Commentary
estimation, mining studies and metallurgical studies.
Whether logging is qualitative or quantitative in nature. Core (or costean,
channel, etc) photography.
The total length and percentage of the relevant intersections logged.
channel sampling locations. These notes are qualitative and
from several different authors
• Work is not sufficiently advanced to support any kind of
Resource Estimation.
Sub-sampling
techniques and
sample
preparation
If core, whether cut or sawn and whether quarter, half or all core taken.
If non-core, whether riffled, tube sampled, rotary split, etc and whether
sampled wet or dry.
For all sample types, the nature, quality and appropriateness of the sample
preparation technique.
Quality control procedures adopted for all sub-sampling stages to maximise
representivity of samples.
Measures taken to ensure that the sampling is representative of the in situ
material collected, including for instance results for field duplicate/second-
half sampling.
Whether sample sizes are appropriate to the grain size of the material being
sampled.
• There is not a sufficiently comprehensive program of duplicates
to assess the precision of the sampling. The author has
interviewed Nazario Anyoza, the geologist who was present for
the 2018 and 2019 sampling, and he described industry-
standard chip and channel sampling practices appropriate to
this type of early-stage exploration. The report by Cumbrex
(Durand and Cortez, 2014) describes linear chip sampling
appropriate to this type of early-stage exploration. Between
them, these two sample groups represent the majority of the
geochemical samples.
• The general consistency displayed between the eight
generations of sampling gives subjective confidence in the style
and geochemical characteristics of the mineralization.
Quality of
assay data and
laboratory
tests
The nature, quality and appropriateness of the assaying and laboratory
procedures used and whether the technique is considered partial or total.
For geophysical tools, spectrometers, handheld XRF instruments, etc, the
parameters used in determining the analysis including instrument make and
model, reading times, calibrations factors applied and their derivation, etc.
Nature of quality control procedures adopted (eg standards, blanks,
duplicates, external laboratory checks) and whether acceptable levels of
accuracy (ie lack of bias) and precision have been established.
• 100 of 229 samples have assay certificates, either in pdf or Excel
format, from Certimin or ALS. Of these, 6 use a total digest and
the remainder aqua regia for the multielement assay. Gold is
uniformly by 30g fire assay / AA finish.
• No field duplicates are reported. However, there is spatial
overlap of the various sampling campaigns which does give
some confidence about the general nature of the geochemical
anomalies, which is probably sufficient for an early-stage
project of this nature. Some laboratory duplicates are reported
by both Certimin and ALS which establish instrumental
precision to be within accepted limits. These labs also report
some commercial CRMs which are within established limits for
accuracy. Both Certimin and ALS are accredited by independent
auditors.
• Values without supporting assay certificates derive from a
compilation supplied bythe vendors. 25 of them have

Page 17 of 22

Commentary
laboratory batch numbers; the remainder, no assay certificates.
97 samples collected by Cumbrex, while having no certificates,
have the results detailed in a formal report (Durand and Cortez,
2014) which also describes QAQC procedures and identifies the
assay laboratory as Certimin.
• Spatial overlap of the eight distinct sampling campaigns gives
high confidence in the pattern of the anomalies.
• Surveying in the field is by handheld GPS, with tape and
compass in underground galleries. This is considered adequate
for the early-stage nature of the project.
• Older data have been converted from PSAD56 datum and a final
compilation made in WGS84, Zone 18S
• Sample spacing is not systematic and some sampling bias may
be present; it is likely that successive visitors have been drawn
to the same outcrops.
• Sampling is sufficient to establish the presence of anomalous
values but not the continuity of mineralization
• Rather the opposite: there are two prominent structures
mapped and these have been preferentially sampled.
• Not applicable – no drilling.
• Not known
• There are no audits available or known about.
Criteria JORC Code explanation Commentary
laboratory batch numbers; the remainder, no assay certificates.
97 samples collected by Cumbrex, while having no certificates,
have the results detailed in a formal report (Durand and Cortez,
2014) which also describes QAQC procedures and identifies the
assay laboratory as Certimin.
Verification of
sampling and
assaying
The verification of significant intersections by either independent or
alternative company personnel.
The use of twinned holes.
Documentation of primary data, data entry procedures, data verification,
data storage (physical and electronic) protocols.
Discuss any adjustment to assay data.
• Spatial overlap of the eight distinct sampling campaigns gives
high confidence in the pattern of the anomalies.
Location of
data points
Accuracy and quality of surveys used to locate drill holes (collar and down-
hole surveys), trenches, mine workings and other locations used in Mineral
Resource estimation.
Specification of the grid system used.
Quality and adequacy of topographic control.
• Surveying in the field is by handheld GPS, with tape and
compass in underground galleries. This is considered adequate
for the early-stage nature of the project.
• Older data have been converted from PSAD56 datum and a final
compilation made in WGS84, Zone 18S
Data spacing
and
distribution
Data spacing for reporting of Exploration Results.
Whether the data spacing and distribution is sufficient to establish the
degree of geological and grade continuity appropriate for the Mineral
Resource and Ore Reserve estimation procedure(s) and classifications
applied.
Whether sample compositing has been applied.
• Sample spacing is not systematic and some sampling bias may
be present; it is likely that successive visitors have been drawn
to the same outcrops.
• Sampling is sufficient to establish the presence of anomalous
values but not the continuity of mineralization
Orientation of
data in relation
to geological
structure
Whether the orientation of sampling achieves unbiased sampling of possible
structures and the extent to which this is known, considering the deposit
type.
If the relationship between the drilling orientation and the orientation of key
mineralised structures is considered to have introduced a sampling bias, this
should be assessed and reported if material.
• Rather the opposite: there are two prominent structures
mapped and these have been preferentially sampled.
• Not applicable – no drilling.
Sample
security
The measures taken to ensure sample security. • Not known
Audits or
reviews
The results of any audits or reviews of sampling techniques and data. • There are no audits available or known about.

Page 18 of 22

Section 2 Reporting of Exploration Results

(Criteria listed in the preceding section also apply to this section.)

Criteria JORC Code explanation Commentary
Mineral
tenement and
land tenure
status
Type, reference name/number, location and ownership including
agreements or material issues with third parties such as joint ventures,
partnerships, overriding royalties, native title interests, historical sites,
wilderness or national park and environmental settings.
The security of the tenure held at the time of reporting along with any
known impediments to obtaining a licence to operate in the area.
• A group of four tenements totalling 1,800 Ha covers the
mapped breccia bodies and potential along strike extensions.
All four are held by Minera Montserrat SAC and are listed as
granted and up to date on the Peruvian Government
Geocatmin website:

Chaupiloma 2007

Chaupiloma 2008

Cocoa Beach

Don Enrique 85

No impediments are anticipated in the process of obtaining a
licence to operate. The project is located in a part of Peru
with considerable historical mining activity and very sparse
population. However, as in all parts of Peru, due attention
must be given to community relations and maintaining social
licence at all stages of the work.
Exploration
done by other
parties
Acknowledgment and appraisal of exploration by other parties. • The geological mapping, recent sampling and compilation of
historical work have been undertaken by Nazario Anyoza, who
is a certified Geological Engineer in Peru and who is known to
the author as a competent professional geologist experienced
in this style of deposit. Because of travel restrictions in 2020-
2021, the author has not been able to visit the Don Enrique
site and has relied upon the results presented by Ing. Anyoza.
Another useful report was prepared by Cumbres
Exploraciones SAC in 2014 (Durand and Cortez, 2014).
Geology Deposit type, geological setting and style of mineralisation. • The outcropping system at Don Enrique presents as two zones
of massive silicification, about 100m apart, one approximately
5m wide and the other 15 to 20m wide, dipping steeply east
and striking 320°. The wider, western, vein has a matrix of
quartz >> calcite and contains pods of massive sulphide with
the assemblagepyrite-chalcopyrite-galena and lesser

Page 19 of 22

Commentary
sphalerite-stibnite, with later possibly supergene bornite
(Yparraguirre and Blas Rodriguez, 2019). The vein hanging wall
has a 2m thick hydrothermal breccia zone. The veins are
hosted in diorite, part of a sequence of dacite, diorite and
volcano-sedimentary rocks of the Mitu Group, Permian in age.
There is an evident structural control which may be related to
a regional scale SW-NE fault in the valley floor.
• The western vein/breccia has been explored (probably in the
1960s) via an underground drive 80m long and four crosscuts
of 15m to 20m which cut the structure. On surface, the two
silicified structures can be traced for approximately 1 km.
• The mineralogy and geochemistry of the veins/breccias
suggest that the system is distally related to a porphyry
copper. No source intrusion has been recognized to date.
• Anomalous values of gold and silver, along with fluid inclusion
temperatures in the 150°C to 220°C range, suggest the
presence of an epithermal overprinting mineralization event
exploiting the same structural control.
• Not applicable – no drilling.
Criteria JORC Code explanation Commentary
sphalerite-stibnite, with later possibly supergene bornite
(Yparraguirre and Blas Rodriguez, 2019). The vein hanging wall
has a 2m thick hydrothermal breccia zone. The veins are
hosted in diorite, part of a sequence of dacite, diorite and
volcano-sedimentary rocks of the Mitu Group, Permian in age.
There is an evident structural control which may be related to
a regional scale SW-NE fault in the valley floor.
• The western vein/breccia has been explored (probably in the
1960s) via an underground drive 80m long and four crosscuts
of 15m to 20m which cut the structure. On surface, the two
silicified structures can be traced for approximately 1 km.
• The mineralogy and geochemistry of the veins/breccias
suggest that the system is distally related to a porphyry
copper. No source intrusion has been recognized to date.
• Anomalous values of gold and silver, along with fluid inclusion
temperatures in the 150°C to 220°C range, suggest the
presence of an epithermal overprinting mineralization event
exploiting the same structural control.
Drill hole
Information
A summary of all information material to the understanding of the
exploration results including a tabulation of the following information for all
Material drill holes:
easting and northing of the drill hole collar
elevation or RL (Reduced Level – elevation above sea level in metres) of
the drill hole collar
dip and azimuth of the hole
down hole length and interception depth
hole length.
If the exclusion of this information is justified on the basis that the
information is not Material and this exclusion does not detract from the
understanding of the report, the Competent Person should clearly explain
why this is the case.
• Not applicable – no drilling.

Page 20 of 22

Commentary
• No averaging or aggregate results are reported
• Most of the underground sampling consists of linear chip
sampling which, while less subject to bias than simple grab
samples, is still not free of bias since most of the sample lines
are chosen to cut visible veins and mineralization. Thus, the
data are indicative only, but are appropriate and typical for a
project at this stage of exploration.
• See long section presented above
• All results are included in the figures and tables presented
• No other substantive results are available
• The Don Enrique system is prospective for two different
scenarios:
1. Small scale underground mining of the silicified
breccias themselves, with the potential for high
grade epithermalpods
Criteria JORC Code explanation Commentary
Data
aggregation
methods
In reporting Exploration Results, weighting averaging techniques, maximum
and/or minimum grade truncations (eg cutting of high grades) and cut-off
grades are usually Material and should be stated.
Where aggregate intercepts incorporate short lengths of high grade results
and longer lengths of low grade results, the procedure used for such
aggregation should be stated and some typical examples of such
aggregations should be shown in detail.
The assumptions used for any reporting of metal equivalent values should
be clearly stated.
• No averaging or aggregate results are reported
Relationship
between
mineralisation
widths and
intercept
lengths
These relationships are particularly important in the reporting of Exploration
Results.
If the geometry of the mineralisation with respect to the drill hole angle is
known, its nature should be reported.
If it is not known and only the down hole lengths are reported, there should
be a clear statement to this effect (eg ‘down hole length, true width not
_known’). _
• Most of the underground sampling consists of linear chip
sampling which, while less subject to bias than simple grab
samples, is still not free of bias since most of the sample lines
are chosen to cut visible veins and mineralization. Thus, the
data are indicative only, but are appropriate and typical for a
project at this stage of exploration.
Diagrams Appropriate maps and sections (with scales) and tabulations of intercepts
should be included for any significant discovery being reported These should
include, but not be limited to a plan view of drill hole collar locations and
appropriate sectional views.
• See long section presented above
Balanced
reporting
Where comprehensive reporting of all Exploration Results is not practicable,
representative reporting of both low and high grades and/or widths should
bepracticed to avoid misleading reporting of Exploration Results.
• All results are included in the figures and tables presented
Other
substantive
exploration
data
Other exploration data, if meaningful and material, should be reported
including (but not limited to): geological observations; geophysical survey
results; geochemical survey results; bulk samples – size and method of
treatment; metallurgical test results; bulk density, groundwater,
geotechnical and rock characteristics; potential deleterious or
contaminating substances.
• No other substantive results are available
Further work The nature and scale of planned further work (eg tests for lateral extensions
or depth extensions or large-scale step-out drilling).
Diagrams clearly highlighting the areas of possible extensions, including the
main geological interpretations and future drilling areas, provided this
information is not commercially sensitive.
• The Don Enrique system is prospective for two different
scenarios:
1. Small scale underground mining of the silicified
breccias themselves, with the potential for high
grade epithermalpods

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Commentary
2. Identify the source of the fluids, possible
porphyry system at depth
• For (1), geophysics (probably IP) and drilling shallow diamond
holes below both structures is appropriate. For (2), some
deeper diamond drilling and more district scale geophysics
would be needed.
Criteria JORC Code explanation Commentary
2. Identify the source of the fluids, possible
porphyry system at depth
• For (1), geophysics (probably IP) and drilling shallow diamond
holes below both structures is appropriate. For (2), some
deeper diamond drilling and more district scale geophysics
would be needed.

Section 3 Estimation and Reporting of Mineral Resources

The data are indicative only, collected for reconnaissance purposes and none are suitable for use in Resource Estimation, neither has any Resource Estimation been undertaken. Section 3 not applicable.

Section 4 Estimation and Reporting of Ore Reserves

The project is early stage and no Ore Reserves have been estimated. Section 4 not applicable

Section 5 Estimation and Reporting of Diamonds and Other Gemstones

Section 5 not applicable.

References Cited

Durand, A. and Cortez, R., 2014. REPORTE TÉCNICO GEOLÓGICO PROSPECTO DON ENRIQUE, Cumbres Exploraciones SAC. Yparraguirre, J. and Blas Rodriguez, F., 2019. ESTUDIOS DE INCLUSIONES FLUIDAS, ESTUDIO MINERAGRÁFICO Y DIFRACCIÓN DE RAYOS X (DRX). , FAIngenieros SAC.

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