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Silver Dollar Resources Inc. Management Reports 2025
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Management Reports
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SILVER DOLLAR
RESOURCES
Silver Dollar Resources Inc.
Management’s Discussion and Analysis
Financial period ended May 31, 2025
Containing information as of July 17, 2025
Silver Dollar Resources Inc. • 179 – 2945 Jacklin Road, Suite 416, Victoria, BC, V9B 6J9 • Telephone (250) 474-7999
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Caution Regarding Forward-Looking Information
Certain of the statements made and information contained herein and in the financial statements is "forward-looking information" within the meaning of the Securities Act (British Columbia). This includes statements by Silver Dollar Resources Inc. (the "Company" or "Silver Dollar") concerning exploration results, including deposit size, quantities, grades and contained metals, which are generally made on the basis of estimations and extrapolations from a limited number of samples, drill holes and assays. These estimations and extrapolations are subject to uncertainties which include but are not limited to uncertainties in connection with evaluating a deposit until the deposit has been extensively drilled on closely spaced centres. Should one or more of these underlying estimations or extrapolations prove incorrect, actual results may vary materially from those described in forward-looking statements.
Forward-looking statements contained herein also include the Company's future operating costs and exploration plans at its mineral properties. These involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information. Forward-looking information is subject to a variety of risks and uncertainties which could cause actual events or results to differ from those reflected in the forward-looking information including, without limitation, the ability of the Company to continue to be able to access the capital markets for funding necessary for operating costs, to acquire and maintain exploration properties and to carry out its desired exploration programs; difficulties in executing exploration programs on the Company's proposed schedules and within its cost estimates, whether due to weather conditions in the areas where it operates, increasingly stringent environmental regulations and other permitting restrictions, or the availability of essential supplies and services; and factors beyond the capacity of the Company to anticipate and control, such as the marketability of minerals, government regulations relating to health, safety and the environment, foreign currency controls, and the scale and scope of royalties and taxes on production. Should one or more of these risks or uncertainties materialize actual results may vary materially from those described in forward-looking statements.
Accordingly, readers are advised not to place undue reliance on forward-looking information. Except as required under applicable securities legislation, the Company undertakes no obligation to publicly update or revise forward-looking information, whether as a result of new information, future events or otherwise.
Description of Business
Silver Dollar is a junior exploration company whose common shares are listed on the Canadian Securities Exchange and quoted on the OTCQX® Best Market. It is in the process of exploring its mineral properties and has not yet determined whether these properties contain ore reserves that are economically recoverable.
The Company owns the La Joya Silver Project and the Nora Silver-Gold Project located in Durango, Mexico, holds options to purchase the Ranger-Page Silver Project in Shoshone County, Idaho, and it owns the Longlegged Lake and Pakwash Lake gold properties located near Red Lake, Ontario.
The following discussion and analysis of the operations, results and financial position of the Company should be read in conjunction with the condensed consolidated interim financial
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statements as of and for the nine-month period ended May 31, 2025 and the notes thereto (the "financial statements"). The financial statements are incorporated herein by reference.
The financial statements have been prepared in accordance with IFRS Accounting Standards ("IFRS") and unless otherwise cited, references to dollar amounts are Canadian dollars. The financial statements were prepared on a going concern basis, which presumes the realization of assets and the discharge of liabilities in the normal course of business for the foreseeable future. The Company had working capital of $1,100,658 as of May 31, 2025. The Company's ability to meet its obligations and maintain its operations is contingent upon additional financing or profitable operations in the future.
Overall Performance and Discussion of Operations
Third Quarter Results
During the third quarter of the Company's 2025 financial year, its consolidated net loss was $487,646, as compared with a $137,395 net loss for the same period last year. The increase of $350,251 was caused primarily by a $327,265 increase in non-cash share-based compensation in respect of stock options and restricted share units granted during the quarter.
Nine-Month Results
During the first nine months of its 2025 financial year, the Company experienced a consolidated net loss of $833,770. This represents a $301,412 increase from the $532,358 loss during the same period last year. The bulk of this change was caused by a $327,265 increase in non-cash share-based compensation in respect of stock options and restricted share units granted during the period, a $97,450 decrease in interest income and an increase of $60,751 in consulting fees. Offsetting this somewhat, was a $179,211 decrease in non-cash unrealized loss on securities and a $48,370 decrease in professional fees.
Cash Flow
As of the May 31, 2025 financial period end, the Company had cash and cash equivalents of $1,004,642 as compared with $2,454,191 at the beginning of the year – a decrease of $1,449,549. Of this total, $726,998 of cash was used for its operations and $2,204,994 of cash was used for exploration of the Company's silver and gold projects in Idaho and Mexico. During the period, the Company received $1,477,600 of net proceeds from a private placement of shares and warrants. Subject to financing, management expects exploration expenditures to resume in the coming quarters as it continues exploring its new Ranger-Page Project and its La Joya and Nora projects.
For a detailed breakdown of exploration and evaluation assets for the first nine months of the Company's 2025 financial year on a property-by-property basis as well as for the same period last year, refer to the Condensed Consolidated Interim Schedules of Exploration and Evaluation Assets accompanying the financial statements.
General
The Company is exploring its new Ranger-Page silver project in Idaho and its La Joya and Nora silver and gold projects in Durango, Mexico. With gold prices near historic highs and silver near its highest price in more than 13 years, management expects international trade tensions and the consequential upward pressure on inflation to result in continuing high precious metal prices. Accordingly, the Company plans to continue its strategy of advancing its mineral properties to add shareholder value.
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The Company's business may be affected by changes in political and market conditions, such as interest rates, availability of credit, inflation rates, changes in laws, and national and international circumstances. Recent geopolitical events and potential economic global challenges, such as the risk of higher inflation and trade disputes, may create further uncertainty and risk with respect to the prospects of the Company's business.
Summary of Quarterly Results
| 2025 | 2024 | 2023 | ||||||
|---|---|---|---|---|---|---|---|---|
| 3^{rd} Quarter | 2^{nd} Quarter | 1^{st} Quarter | 4^{th} Quarter | 3^{rd} Quarter | 2^{nd} Quarter | 1^{st} Quarter | 4^{th} Quarter | |
| Revenue | $ - | $ - | $ - | $ - | $ - | $ - | $ - | $ - |
| Loss for the period | (487,646) | (188,334) | (157,790) | (298,261) | (137,395) | (132,662) | (262,301) | (1,625,110) |
| Loss per share | (0.01) | (0.00) | (0.00) | (0.01) | (0.00) | (0.00) | (0.01) | (0.04) |
| Total comprehensive loss | (622,660) | 11,385 | (47,006) | (1,185,346) | (86,036) | (42,182) | (398,144) | (929,746) |
Variations in operating loss from quarter to quarter typically result from increases in exploration and property acquisition activity. During periods of greater activity, professional fees, consulting fees, costs relating to regulatory approvals, and travel and promotion costs will typically increase.
During the third quarter of 2025, non-cash share-based compensation contributed to the marked increase in net loss, while during the fourth quarter of 2023, net loss increased when management deemed it prudent to write down the value of certain of its exploration and evaluation assets.
The differences between loss for the period and total comprehensive loss are the result of currency exchange differences on translating foreign operations.
The quarterly results summarized herein were prepared in accordance with International Financial Reporting Standards and are expressed in Canadian dollars.
Liquidity and Capital Resources
The Company does not yet generate positive cash flow from operations and is therefore reliant upon the issuance of its own common shares to fund its operations. The Company completed a non-brokered private placement of shares and warrants in October 2024 for net proceeds of $1,477,600. As of the date hereof, the Company is not adequately funded. To continue to fund its exploration plans, the Company must raise additional equity capital. There is, however, no certainty that such financings will be completed.
The Company has no debt obligations and no commitments other than as described herein and in its financial statements.
Management expects that the Company presently has enough working capital to fund operating costs through at least January 2026. However, additional working capital will be required to fund its future exploration plans and such exploration is dependent upon the availability of that additional working capital.
Mineral Exploration Activities
Ranger-Page Silver Project, Idaho, USA
Silver Dollar recently completed its initial drilling campaign at the recently acquired RangerPage Project in Shoshone County, Idaho (see 2024-2025 Drilling Program below). The Project area, encompassing the Government Gulch Option and Joint Venture Agreement and the Page Mine Mineral Rights Lease and Option Agreement, consolidates the western end of the Silver Valley mining corridor under a single operator for the first time.
Figure 1: Location of the Ranger-Page Project in the Coeur d'Alene Mining District
Project Highlights
- A drill-ready project in a world-class silver district where over 90 mines have operated since the first major silver-lead-zinc discovery was staked in 1884.
- Ideally situated $\sim 1.5$ kilometres (km) south of Interstate 90 Freeway and the town of Smelterville, the Project features power, water, year-round access to local infrastructure and a workforce skilled in exploration and mining.
- The Project comprises two contiguous patented lode claim groups with surface access rights in place to conduct exploration activities.
- The exploration permitting process is with the State of Idaho, with no requirement for federal permitting.
- The land package covers six historic mines with the option to acquire ownership of the Project's mineral rights, which are not currently subject to any royalties.
- Multiple exploration targets developed over the last two years that are ready to drill after the systematic use of modern exploration techniques for the first time.
- Primary target areas are up- and down-plunge from historic underground mining, along strike where induced polarization (IP) surveys identify anomalies, and where surface trenching identified near surface mineralization.
- Additional exploration targets have been identified away from historic mine infrastructure, using soil geochemical data, mapping, and ground IP survey data.
- The Project borders the Bunker Hill mine where the restart of production is planned for the first half of 2025.
Figure 2: Looking NW from the Ranger-Page Project with I-90 and the town of Smelterville on the right
Geology
The Coeur d'Alene Mining District is one of the most significant silver mining regions in the world, known for its rich deposits of silver, zinc, and lead. The District has produced over 1.2 billion ounces of silver, 7 billion tons of lead, and 3 billion tons of zinc since initial discoveries were made along the south fork of the Coeur d'Alene River in the 1880s. Ore is produced from silver-lead-zinc veins hosted in clastic metasedimentary rocks of the Belt Supergroup. Orebodies show strong stratigraphic control, with most of the production coming from the Revett Formation.
The ore deposits of the Coeur d'Alene Mining District are hosted in structural features characterized by a complex network of faults and folds resulting from tectonic forces of diverse ages and movements. The District lies within the Lewis and Clark shear zone, a regional structural zone several kilometres wide, which includes the Thompson Pass Fault to the north, the Placer Creek Fault to the
south, and the Osburn Fault that passes through the middle of the District. Numerous other subordinate district scale faults within the Lewis and Clark shear zone are related to mineralization and are important for exploration.
The 27 km displacement of the Osburn Fault runs through the District's most productive silver belts and along the northern boundary of the Ranger-Page Project. A network of seven secondary faults transverses the Project area, with the north-south trending Page Fault at the western end and the Crown Point Fault at the eastern end intersecting the Osburn Fault. Additional faults include the east-west-trending Curlew, 96, Buckeye and Spring faults and the southeast-northwest-trending Government Gulch Fault.
Mineralization is principally galena-sphalerite and tetrahedrite veins with quartz, carbonate and barite gangue mineralogy. The District is famous for its major discoveries of vast high-grade polymetallic vein systems, with veins that can be 0.5 km in strike length and 2.5 km in dip length.
Ranger-Page Project History
The land package includes six historic mines with the high-grade Page Mine being the largest. Operating from 1916 to 1917 and from 1926 to 1969, it was a top 10 producer in the District having produced over 1.1 billion pounds of combined lead-zinc and 14.6 million ounces of silver.
The Page mine was also the deepest of the six historic mines. It was mined to a depth of 2,644 feet below surface, with Blackhawk mined to 1,200 feet, Crown Point mined to 200 feet, and the remaining three mines (Ranger, Wyoming, and Curlew) only explored and mined near surface.
For comparison, one of the deepest mines in the region is Hecla's Lucky Friday Ag-Pb-Zn Mine. In operation since 1942, it is expected to produce approximately 5 million ounces of silver per year with proven and probable reserves of 78 million ounces of silver, 492,400 tons of lead and 229,380 tons of zinc as of December 31, 2023. The #4 Shaft project, an internal shaft at the Lucky Friday Mine, reaches 9,600 feet ( $>3$ km) below surface and is an important part of the Gold Hunter/Lucky Friday expansion as it provides access to the highest-grade ore in the mine's history.
Figure 3: Ranger-Page claim groups, underground mine workings, and new target areas
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2024-2025 Drilling Program
Silver Dollar's Phase 1 exploration initial drilling program consisted of 1,853 metres of diamond drilling completed over nine holes at the Crown Point and Wyoming areas of the property.
Mineralized intersections at the Wyoming Target indicate exploration remains open along strike and down dip, with mineralized continuity established up to 165 metres east of the Blackhawk Mine.
All four drill holes discovered silver (Ag), lead (Pb) and zinc (Zn) mineralization, demonstrating continuity along strike of 103 metres and a depth extension of 75 metres below ground surface. Hole RP-2025-005 intercepted 3.04 metres of 162 grams per tonne (g/t) Ag, 15.5% Pb and 4.1% Zn, demonstrating the exploration upside for this target in future drilling campaigns and the potential to relate Wyoming mineralization to the on-strike projection of the Blackhawk Mine.
Exploration drilling at the Crown Point Target has extended near surface mineralization roughly 100 metres west of the historic Crown Point mine workings.
Two separate mineralized zones have been identified thus far, with the best intersection from hole RP-2025-002 returning 1.1 metres of 70.9 g/t Ag, 3.2% Pb, and 2.7% Zn. This target remains open for additional exploration along strike to the west and down dip below the Ranger-Tunnel crosscut (Elev. 805 m).
Assay results and drill hole collar coordinates from the Phase 1 drilling program are summarized in Tables 1 and 2 below:
| Hole ID | From (m) | To (m) | Core Length (m) | Silver (g/t) | Lead (%) | Zinc (%) |
|---|---|---|---|---|---|---|
| RP-2025-007 | 112.23 | 112.78 | 0.55 | 69.7 | 9.0 | 4.4 |
| RP-2025-006 | 67.82 | 68.28 | 0.46 | 168.0 | 15.2 | 3.8 |
| RP-2025-005 | 74.68 | 77.72 | 3.04 | 162.4 | 15.5 | 4.1 |
| Including | 77.42 | 77.72 | 0.30 | 168.0 | 19.4 | 19.7 |
| RP-2025-005 | 90.22 | 90.53 | 0.31 | 92.2 | 11.9 | 4.9 |
| RP-2025-004 | 61.87 | 62.51 | 0.64 | 110.0 | 12.1 | 0.8 |
| RP-2025-003 | 98.3 | 98.76 | 0.46 | 98.9 | 1.3 | 0.0 |
| RP-2025-003 | 104.42 | 105.16 | 0.74 | 82.6 | 0.9 | 0.0 |
| RP-2025-002 | 62.67 | 63.79 | 1.12 | 70.9 | 3.2 | 2.7 |
| Including | 63.58 | 63.79 | 0.21 | 156.0 | 9.9 | 10.1 |
| RP-2025-002 | 76.57 | 79 | 2.43 | 71.9 | 1.6 | 1.1 |
| RP-2025-001 | 76.93 | 77.82 | 0.89 | 42.2 | 2.6 | 0.4 |
| RP-2024-003 | NSV | |||||
| RP-2024-002 | NSV |
Table 1: Composited assay results from Wyoming and Crown Point. *Intervals are core length. Estimated true widths vary depending on intersection angles. Modeling and ongoing interpretation of results are needed before true widths can be calculated. NSV = No Significant Values.
| Hole ID | Easting (UTMZ11) | Northing (UTMZ11) | Elevation (m) | Azimuth | Dip | Length (m) |
|---|---|---|---|---|---|---|
| RP-2025-007 | 561313 | 5263895 | 875 | 337.8 | -53.3 | 172 |
| RP-2025-006 | 561313 | 5263895 | 875 | 20.2 | -66.5 | 146 |
| RP-2025-005 | 561313 | 5263895 | 875 | 19 | -50.1 | 152 |
| RP-2025-004 | 561313 | 5263895 | 875 | 91.3 | -46.4 | 215 |
| RP-2025-003 | 561690 | 5264250 | 917 | 48.6 | -48.6 | 122 |
| RP-2025-002 | 561690 | 5264250 | 917 | 348.7 | -74 | 121 |
| RP-2025-001 | 561690 | 5264250 | 917 | 353 | -55.4 | 122 |
| RP-2024-003 | 561806 | 5263902 | 874 | 320.2 | -44.8 | 421 |
| RP-2024-002 | 561806 | 5263902 | 874 | 21.9 | -73.6 | 382 |
Table 2: Table of drill hole collar coordinates and layouts
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Quality assurance and Quality Control (QA/QC) procedures were overseen by the Qualified Person. Silver Dollar QA/QC protocols were maintained through the insertion of certified reference materials (CRM), blanks and duplicates within the sample stream. Drill core was cut in-half with a diamond saw, with one half placed in sample bags and the other half retained on-site. The chain of custody was maintained from the drill to the submittal into the laboratory preparation facility.
Analytical testing was performed by SVL Analytical in Kellogg, Idaho. The entirety of each sample was crushed to <3/8" before a 200-gram split was pulverized to minus 200 mesh. Multielement analyses were quantified by Inductively Coupled Plasma (ICP) after an aqua regia closed-vessel microwave digestion. Higher grade silver samples were selected for fire assay with gravimetric finish.
Curlew Vein Extension
Geologic modeling of Silver Dollar's Phase 1 exploration drilling results indicate that the Curlew Vein extends east from the Blackhawk Mine into the vicinity of the Wyoming Complex. The structural complexity of the area was likely the reason the Wyoming Complex proved to be a challenge for past producers on the property. Phase 1 drilling discovered mineralization in the footwall of the 96 Fault, which was the primary structure worked at the Wyoming Complex. Silver Dollar believes this footwall mineralization is the Curlew Vein and demonstrated its continuity between the Wyoming Complex and the Blackhawk Mine during Phase 1 exploration drilling. The planning of near-term exploration activities is ongoing and includes:
Blackhawk (Curlew Vein)
Drill planning is underway to expand the Curlew Vein along strike, up and down dip of the known extent of the Blackhawk Mine. Upper Curlew exploration is relatively inexpensive and can be done from drill pads requiring minimal effort to establish. Further success exploring the uppermost Curlew Vein could justify deep exploration below the Blackhawk mine, which can be done via deep surface drilling programs, or underground drill pad development. The next phase of drilling should focus on expanding mineral continuity between the Phase 1 drilling and the Blackhawk mine to the west.
West Buckeye
The West Buckeye target is a prominent polarization anomaly identified during the ground IP survey completed in 2022. The anomaly is significant because it has a 260-metre dip extension, and the same polarization and resistivity response as the Curlew Vein discovery between the Blackhawk Mine and the Wyoming Complex. To validate West Buckeye for drilling, Silver Dollar plans to complete a geochemical survey over the anomaly, update geologic mapping and develop a budget to drill the target.
Crown Point
Phase 1 exploration drilling at Crown Point extended mineralization west of the historic mine workings by 100 metres. Geologic modeling, drilling, and trenching results indicate there are up to three veins present at Crown Point (Crown Point 1, 2 and 3 Veins). Phase 1 drilling identified two of the three veins at Crown Point. To drill the third vein (Crown Point 3), a drilling platform to the south would be necessary. Exploration planning at Crown Point will focus on expanding the Crown Point veins down dip to the west, where the mineralization remains open for exploration drilling.
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Omega and 85 Veins
The Omega and 85 Veins sit in the footwall of the Tony Vein, which was the primary ore host for the Page Mine. The Omega and 85 Veins were discovered below the 2,770 level of the Page Mine, and the up-dip extension of the veins have not been properly explored. Ongoing geologic modeling is expected to improve the vein projections of the Omega and 85 Veins, allowing Silver Dollar to prospect for the surface expression of the veins. If exploration work on this target is promising, Silver Dollar will include the Omega and 85 Veins in future exploration drill planning.
Acquisition Summary
The vendors assigned all Ranger-Page-related assets to Silver Dollar's wholly owned subsidiary for cash consideration of $300,000 and the issuance of 6,000,000 common shares in the capital of Silver Dollar. The shares are subject to contractual escrow under the following release schedule:
| Release Date | Release from Contractual Escrow |
|---|---|
| August 6, 2024 | 1,000,000 shares |
| February 6, 2025 | 1,250,000 shares |
| August 6, 2025 | 1,250,000 shares |
| February 6, 2026 | 1,250,000 shares |
| August 6, 2026 | 1,250,000 shares |
If Silver Dollar exercises its option under the acquired Government Gulch Agreement it will grant the Vendors a royalty equal to 0.5% of net smelter returns from the Government Gulch property. Further, if Silver Dollar exercises its option under the acquired Page Mine Agreement, it will grant the vendors a royalty equal to 1% of net smelter returns from the Page Mine property; however, Silver Dollar may repurchase half of such royalty (0.5% of net smelter returns) at any time for $500,000.
The technical information herein has been approved by Dale Moore, P.Geo., a Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
La Joya Silver Project, Durango, Mexico
Silver Dollar owns a 100% interest in the La Joya silver-copper-gold property. Optioned from First Majestic Silver in August 2020, Silver Dollar completed the acquisition in 2023 ahead of schedule (see news release of May 25, 2023). First Majestic acquired the Property in 2015 as
Figure 4: Location of the La Joya Project along with past-producing and area mines
part of its acquisition of SilverCrest Mines; however, no work was carried out on the Property between 2015 and 2020.
Located in the southeastern portion of the State of Durango in the Mexican Silver Belt, the Property is an advanced exploration stage property consisting of 15 mineral concessions totaling 4,646 hectares and hosting the Main Mineralized Trend (MMT),
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Santo Nino, and Coloradito deposits (Figure 5).
The Property is situated approximately 75 kilometres (km) southeast of the state capital city of Durango in a prolific high-grade silver region with past-producing and operating mines, including SilverStorm's La Parrilla Mine, Industrias Penoles' Sabinas Mine, Grupo Mexico's San Martin Mine, Sabinas Mine, First Majestic's Del Toro Mine, and Pan American Silver's La Colorada Mine. Access and infrastructure near the Property are excellent (Figure 4).
Figure 5: Planview of the MMT, Santo Nino and Coloradito deposits, and Brazo and Central Dyke zones
Modern exploration activity began on the Property in 1977, which included extensive drilling by previous operators: Luisman from 1977 to 1997, Boliden from 1998 to 2001, and Solid Resources in 2006. SilverCrest acquired the Property in June 2010 and initiated property-scale mapping and sampling that led to an improved understanding of the skarn and control of the mineralization. Two phases of drilling followed between 2010 and 2012, a 5,753.70 metre (m) Phase I program comprised of 26 holes and a 25,812.65 m Phase II program comprised of 78 holes. A Phase III program of 2,698 m of in-fill drilling comprising 17 holes was also completed between February and March 2014. The SilverCrest drilling was relatively widespread in the MMT and the separate Santo Nino and Coloradito deposits (Figure 5 above, and Figure 6 and Photo 1 below).
Results from SilverCrest's Phase I and II programs along with 5,907.26 m of drilling by Luisman in 18 holes were included in the geological database used as source data for the mineral resource estimation (below) on the MMT and Santo Nino deposits. The mineral resource estimate was based on results from 122 drill holes totaling 37,473.61 m and had an effective date of December 16, 2012.
In December 2013, SilverCrest released a Preliminary Economic Assessment NI 43-101 Technical Report on the La Joya Property based on the mineral resource estimation (see the table below). The mineral resource estimate was reported to conform to CIM definitions for resource estimation at that time. However, a qualified person of Silver Dollar has not done sufficient work to classify the historical resource, and the Company is not treating it as a current
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mineral resource. Independent data verification and an assessment of the mineral resource estimation methods are required to verify the historical mineral resource.
| ZONE | Ag Eq
Cut-off gpt | Resource
Category | Tonnage
(000) | Ag
gpt | Au
gpt | Cu
% | Ag oz
(000) | Au oz
(000) | Cu lbs
(000) |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| MMT | 15 | COPPER
MINT | 120,600 | 23.7 | 0.18 | 0.18 | 91,900 | 707.9 | 466,500 |
| | 30 | | 67,600 | 34.7 | 0.23 | 0.25 | 75,400 | 519.4 | 377,400 |
| | 60 | | 26,100 | 58.5 | 0.30 | 0.42 | 49,100 | 255.8 | 240,100 |
| Santo
Nino | 15 | | 6,200 | 20.4 | 0.04 | 0.49 | 4,000 | 8.2 | 66,800 |
| | 30 | | 3,600 | 29.2 | 0.04 | 0.75 | 3,400 | 5.3 | 59,400 |
| | 60 | | 1,800 | 43.1 | 0.05 | 1.20 | 2,500 | 2.9 | 48,300 |
| Total | 15 | | 126,700 | 23.5 | 0.17 | 0.19 | 95,900 | 716.2 | 533,200 |
| | 30 | | 71,200 | 34.4 | 0.22 | 0.28 | 78,700 | 524.8 | 436,800 |
| | 60 | | 27,900 | 57.5 | 0.28 | 0.48 | 51,600 | 258.8 | 288,400 |
The historical resource estimate above for the MMT and Santo Nino Deposits is based on work done or collected by SilverCrest Mines, with an effective date of December 16, 2012.
Key assumptions, parameters, and methods used to prepare the historical mineral estimation:
- Silver equivalency cut-off includes silver, gold and copper; and excludes lead, zinc, molybdenum and tungsten values.
- Ag Au is 50.1, Ag Cu is 86.1, based on the then 5-year historic metal price trends of US$24/oz silver, US$1200/oz gold, US$3/lb copper and 100% metallurgical recovery. All numbers are rounded.
- Inferred Resources were estimated from geological evidence and limited sampling and must be treated with a lower level of confidence than Measured and Indicated Resources.
- Drill hole spacing for the 122 holes (37,473.61 metres) used in the resource estimation was approximately 75 metres.
- The mineral estimation was classified by EBA, a Tetra Tech Company, and was reported to conform to NI 43-101, 43-101CP, and CIM definitions for resources standards at that time.
Note: A qualified person of Silver Dollar has not done sufficient work to classify the historical resource, and the Company is not treating it as a current mineral resource.
Work to date by Silver Dollar has focused on the underexplored Coloradito-Noria area of the Property and is highlighted by the discovery of the Brazo Zone, approximately 1 km west of the Main Mineralized Trend or MMT (Figure 7). Silver Dollar has completed two phases of core drilling, with the Phase I program consisting of 11 holes totaling 2,424 m of drilling (See news releases of March 24, 2022, and May 4, 2022, for assay results) and the Phase II program, consisting of 17 holes totaling 3,428 m of drilling (See news releases of June 13, 2022, August 17, 2022, and October 25, 2022 for assay results).
Figure 6: Model of historical mineral resources for the MMT and Santo Nino deposits
Figure 7: Location of Silver Dollar's Brazo discovery and Phase I and II drill holes
Silver Dollar's latest exploration programs have focused on new target development primarily consisting of geological mapping with limited drill testing to follow up on data from the ground magnetic (MAG) survey conducted in 2022. As previously reported (See news release of December 15, 2022), the MAG survey identified three notable anomalies (Figure 8: S-1, S-2, and S-3):
- S-1 is a parallel zone to S-2 located $400\mathrm{m}$ to the east in a generally blind area mostly covered with caliche (hardpan) with limited outcrops of limestone and hornfels. Samples assayed from this area have not returned any significant results to date despite the magnetic reactions exhibited by some of the samples.
- S-2, located approximately $400\mathrm{m}$ east of S-3, is now known as the Central Dyke Zone where mineralization is found in association with a dyke that runs north-south to north-northwest through the central part of Cerro Coloradito. This is the priority area for drill target development with exploration results described in detail below.
- S-3 is coincident with the Brazo Zone where drill testing in hole NOR-23-030 encountered intense and extensive alteration but did not intersect Brazo style mineralization. A sharp change in the angle of the intrusive contact underscores the importance of the structural mapping that has been taking place to better define future drilling.
Figure 8: Coloradito-Noria geology, MAG anomalies, and target areas
Central Dyke Zone
As previously reported (See news release of February 13, 2013), assay results from 156 channel samples along with 14 rock samples taken from outcrop and dumps have delineated the Central Dyke Zone over a strike length of 770 metres. The highest-grade assay came from a historical underground working called Hueco Grande, where sample #161 (Photos 1A and 1B) returned $7.01\mathrm{g / t}$ Au, $3,513.4\mathrm{g / t}$ (123.93 oz/t) Ag, $0.07\%$ Cu, $5.33\%$ Pb and $0.48\%$ Zn.
Photo 1A and 1B: Sample 161 and where it was taken from the Hueco Grande historical working
Note: The rock sample results and the photographs above are selective by nature and may not be representative of the true grade or style of mineralization across the Property.
Ongoing work includes additional trenching and sampling (Photos 2A and 2B) to further expose, sample, and interpret the Central Dyke mineralization with the aim of refining and defining potential drill targets.
Photo 2A and 2B: Trenching and sampling in the Central Dyke Zone
Silver Dollar owns a $100\%$ interest in the La Joya property subject to a $2\%$ net smelter returns royalty on all minerals produced from the Property.
The technical information herein has been approved by Mike Kilbourne, P.Geo., an independent Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects.
Nora Silver-Gold Project, Durango, Mexico
Figure 9: Location of the Nora property and other mines and deposits in the region
Silver Dollar acquired a $100\%$ interest in the Nora Ag-Au property (the "Property") from Canasil Resources, subject to a $2\%$ net smelter returns royalty (See news release of February 8, 2024).
Located in the Eastern Sierra Madre sub-province in the transition to the high plateau of Mexico, the Property lies centrally within the "Silver Trend" that runs from the northwest to the southeast through Durango State. Significant deposits in the region include Endeavour
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Silver's Guanaceví mine and Fresnillo's San Julián mine on-trend to the northwest, with Endeavour Silver's Pitarrilla project approximately 50 kilometres (km) to the east. Pitarrilla is one of the largest undeveloped silver deposits in the world and was discovered by Perry Durning and Frank (Bud) Hillemeyer, Silver Dollar's technical advisors.
The Property is located approximately 200 km north-northwest of the city of Durango, with excellent year-round access via Federal highway, paved road, and local dirt roads. Local infrastructure is available in the towns of Tepehuanes and Santa Maria del Oro and the city of Santiago Papasquiaro, all within 50 km of the Property.
The geological setting is a Tertiary-aged volcanic flow-dome complex. Gold-silver mineralization is hosted within two structurally controlled epithermal veins. Mineralization is typical of that found at many mines in the region, with gold and silver associated with galena, sulfosalt minerals, and lesser pyrite, sphalerite, and chalcopyrite.
Photo 3: Looking west into the Nora property with the Candy mine dump visible centre frame
Two principal veins are outcropping on the Nora property:
- The Candy vein, which shows evidence of small-scale historical mining activity, is 0.50 m to 2.00 m wide and is exposed in discontinuous outcrops for over 900 m with the fault structure hosting the vein traced over 3 km.
- The Nora vein is located 600 m northeast of the Candy vein with a parallel north-south strike and can be traced for 230 m along strike with widths of over 9.0 m.
In connection with the acquisition of the Nora property, Canasil waived certain obligations of Silver Dollar under the Nora Option Agreement on the basis that Silver Dollar encountered certain unresolved discrepancies in verifying the 2020 and 2021 drill results Canasil reported on the Nora property.
While analyzing and relogging drill core as part of its drill target development, Silver Dollar reassayed select core intervals from Canasil's previous drilling. A total of 161 core samples, plus 16 standards and blanks, were submitted to ActLabs in Zacatecas. This included 157 duplicates of the original core samples from drill holes NRC-20-01, NRC-20-04, NRC-20-06, NRC-21-09, NRC-21-10, NRC-21-11, and NRC-21-12. The ActLabs check assay values received for lead, zinc, and copper closely mirror the original assay values Canasil received from ALS Global in
Vancouver; however, the gold and silver values are significantly lower as follows:
Photo 4: Nora property looking north at the main outcrop of the Candy vein structure
- For gold: of the 157 samples duplicated, Canasil reported 42 samples $>1$ g/t Au (1.23 - 43.7 g/t) including 18 samples $>5$ g/t (5.3 - 43.7 g/t), whereas Silver Dollar's re-assaying yielded only 3 samples $>1$ g/t Au (1.04, 1.75, and 2.30 g/t).
- For silver: of the 157 samples duplicated, Canasil reported 44 samples $>200$ g/t Ag (133 - 1,924 g/t) including 19 samples $>500$ g/t Ag (504 - 1,925 g/t), whereas Silver Dollar's re-assaying yielded only 3 samples $>100$ g/t Ag (129, 158, and 448 g/t).
The QPs from both companies discussed the situation and recommended a further analytical program be carried out to provide some insight into what may have caused the assay discrepancies. However, Canasil did not have the financial resources to contribute to the recommended program and alternatively offered to waive certain of Silver Dollar's consideration obligations under the Nora Option Agreement and transfer $100\%$ ownership of the Nora property to Silver Dollar for the consideration that had been provided to date (as detailed below), subject to a $2\%$ net smelter returns royalty (the "Royalty") with Silver Dollar having the right to buy back $1\%$ of the Royalty for $\$1,000,000$ . As of February 8, 2024, Silver Dollar had incurred a total of approximately $\$134,779$ in exploration expenditures on the Nora property, as full consideration for the acquisition thereof. Silver Dollar is not required to provide any further consideration to Canasil to complete the acquisition and the transfer of the Nora concessions to Silver Dollar has been initiated.
Silver Dollar previously reported selected highlights from Canasil's 2020 and 2021 drilling programs on the Nora property, which included the discrepancies noted above, in its news releases of May 24, 2023, June 20, 2023, and August 1, 2023, on its website, in its material change report dated April 20, 2023, and its Management's Discussion and Analysis of May 31, 2023. In addition to containing discrepancies, the Company determined that the disclosure did not conform to National Instrument 43-101 standards and should not be relied upon. Accordingly, the Company retracts the non-compliant prior disclosure of results from Canasil's 2020 and 2021 drilling programs in respect of the Nora property from its disclosure record.
Figure 10: Nora property plan view with surface sample locations
As previously reported (See news release of April 16, 2024), fieldwork began in February 2024 as an initial step in the Company's re-evaluation of the Property. The focus of the work was geological mapping and sampling of priority anomalies (Figure 10). A total of 89 rock chip and channel samples and 33 soil samples were collected, including 41 samples from the primary Candy vein target.
Analytical results for all samples were received and highlights included:
- Twenty-one samples grading over (>) 100 grams per tonne (g/t) silver (Ag), ten samples $>200\mathrm{~g/t}$ Ag, four samples $>500\mathrm{~g/t}$ Ag and two samples $>1,000\mathrm{~g/t}$ or one kilogram per tonne Ag.
- Sample R-053 (Photo 5A) returned $29.61\mathrm{g / t}$ gold (Au) over 0.35 metres (m), confirming the presence of high-grade gold in the Candy vein structure.
- Samples RM-1009 (Photo 5B) returned $2,215\mathrm{g / t}$ Ag over $0.8\mathrm{m}$ and RM-1013 returned $1,212\mathrm{g / t}$ Ag over $1\mathrm{m}$ , confirming the presence of high-grade silver in the Candy vein structure.
- Five samples returned grades $>1\%$ copper (Cu) with two $>3\%$ Cu, confirming the presence of high-grade copper in the Candy vein structure.
- Elevated levels of zinc (7 samples $>1\%$ Zn) and lead (20 samples $>1\%$ Pb) are also encouraging as they seem to be the best pathfinders for geochemistry.
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Photo 5A and 5B: Candy Vein Sample R-053 and Candy Vein Sample RM-1009
The table below summarizes additional highlights of the sample results. Note that grams per tonne is equivalent to parts per million (ppm), and 10,000 ppm is equivalent to one percent (1%).
| Sample # | Rock Type | Thickness m | Au ppm | Ag ppm | Cu ppm | Pb ppm | Zn ppm |
|---|---|---|---|---|---|---|---|
| R-053 | Vein | 0.35 | 29.61 | 103 | 31,040 | 86,820 | 5,850 |
| RM-1009 | Rhyolite | 0.8 | 2.26 | 2,215 | 33,420 | 18,340 | 28,120 |
| RM-1013 | Vein | 1 | 2.05 | 1,212 | 17,710 | 42,390 | 13,540 |
| R-071 | Rhyolite | 0.5 | 3.80 | 924 | 11,980 | 75,610 | 4,540 |
| R-066 | Vein | 0.63 | 3.98 | 972 | 11,300 | 35,040 | 7,390 |
| R-038 | Rhyolitic Tuff | Selective | 3.52 | 218 | 7,560 | 53,260 | 6,830 |
| R-063 | Vein | 0.9 | 2.25 | 323 | 2,590 | 28,710 | 22,010 |
| R-065 | Rhyolite | 0.5 | 2.50 | 487 | 547 | 7,000 | 539 |
| R-074 | Vein | 0.6 | 2.54 | 79 | 2,530 | 76,490 | 539 |
| R-005 | BX | 0.5 | 0.01 | 225 | 197 | 56,660 | 7,190 |
| R-057 | Vein | 0.1 | 4.76 | 35 | 766 | 4,320 | 545 |
| RM-1001 | Rhyolite | 0.5 | 0.82 | 203 | 778 | 27,160 | 4,030 |
| R-007 | Dump | Selective | 0.01 | 234 | 155 | 37,520 | 4,420 |
| RM-1010 | Vein | 0.3 | 1.76 | 154 | 1,570 | 12,570 | 2,250 |
| R-060 | Rhyolite | 0.9 | 1.17 | 137 | 1,310 | 15,010 | 2,070 |
| RM-1005 | Rhyolite | 0.8 | 1.38 | 34 | 7,570 | 12,390 | 4,510 |
| R-059 | Vein | 1.5 | 0.16 | 99 | 3,450 | 21,250 | 15,160 |
| R-068 | Rhyolite | 0.5 | 0.26 | 146 | 719 | 10,520 | 9,760 |
| RM-1008 | Vein | 1.7 | 0.24 | 165 | 883 | 2,900 | 10,570 |
| RM-1011 | Vein | 0.3 | 1.60 | 76 | 954 | 5,930 | 2,880 |
| R-061 | Vein | 0.3 | 1.28 | 103 | 699 | 6,530 | 1,550 |
| R-064 | Rhyolite | 0.5 | 0.12 | 102 | 544 | 11,260 | 16,080 |
| R-069 | Vein | 0.7 | 0.12 | 101 | 1,050 | 10,620 | 12,520 |
| RM-1000 | Rhyolite | 1 | 0.18 | 55 | 4,100 | 20,230 | 4,030 |
| R-054 | Vein | 0.3 | 1.01 | 49 | 2,190 | 6,690 | 1,030 |
| R-070 | Rhyolite | 0.5 | 0.07 | 113 | 347 | 5,010 | 9,440 |
| R-067 | Rhyolite | 0.5 | 0.23 | 130 | 1,060 | 3,440 | 1,220 |
| R-056 | Rhyolite | 0.6 | 0.15 | 88 | 1,480 | 13,820 | 1,370 |
| R-019 | Rhyolite | 1 | 0.01 | 100 | 118 | 7,830 | 8,720 |
Note: The sample results and photographs above are selective by nature and may not be representative of the true grade or style of mineralization across the Property.
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The technical information herein has been approved by Mike Kilbourne, P.Geo., an independent Qualified Person as defined by National Instrument 43-101, Standards of Disclosure for Mineral Projects. The QP and the Company have not completed sufficient work to verify the information on the Nora Property, particularly regarding historical exploration, neighbouring companies, and government geological work.
Photo 6: Sampling the main Candy vein structure
Outstanding Share Data
As of the date hereof, the Company has 56,752,355 common shares issued and outstanding.
Also as of the date hereof, the Company has options outstanding which may be exercised to purchase a total of 4,600,000 shares. Of this total, 400,000 options may be exercised at $0.59 per share until June 26, 2025, 1,850,000 options may be exercised at $1.75 per share until December 14, 2025, 300,000 options may be exercised at $1.75 per share until March 9, 2026, and 2,050,000 options may be exercised at $0.30 per share until March 28, 2030.
The Company has warrants outstanding which, as of the date hereof, may be exercised to purchase up to 3,089,600 shares at $0.40 per share until October 29, 2026.
Finally, the Company awarded restricted share units to receive up to 575,000 shares of the Company on March 28, 2025. The restricted share units will vest March 28, 2026.
Transactions with Related Parties
During the first nine months of its 2025 financial year, the Company paid $26,452 to Lytle & Associates, a proprietorship owned by the Company's Chief Executive Officer, and $30,000 to Anacott Capital Corporation, a corporation controlled by the Company's former Chief Executive Officer, in respect of the management and administration of the Company.
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During the nine-month period ended May 31, 2025, the Company granted Stock Options to three directors and officers to purchase up to a total of 1,050,000 shares at $0.30 per share until March 28, 2030, and awarded restricted share units to three directors and officers in respect of 300,000 shares of the Company.
Changes in Accounting Policies Including Initial Adoption
New Accounting Standards and Interpretations Recently Adopted
The following standard was adopted by the Company effective September 1, 2024:
Amendment to IAS 1: Presentation of Financial Statements
Amendments to IAS 1 clarify the requirements for classifying liabilities as current or noncurrent. The amendments provide a more general approach to the classification of liabilities based on the contractual arrangements in place at the reporting date. These amendments were effective for reporting periods beginning on or after January 1, 2024. The adoption of these amendments had no material impact on the financial statements.
New Accounting Standards and Interpretations Not Yet Adopted
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 introduces three sets of new requirements to give investors more transparent and comparable information about companies' financial performance for better investment decisions:
a) Three defined categories for income and expenses – operating, investing and financing – to improve the structure of the income statement and require all companies to provide new defined subtotals, including operating profit;
b) Requirement for companies to disclose explanations of management-defined performance measures that are related to the income statement; and
c) Enhanced guidance on how to organize information and whether to provide it in the primary financial statements or in the notes.
This new standard is effective for reporting periods beginning on or after January 1, 2027. The Company will be evaluating the impact on future financial statements.
Financial Instruments and Other Instruments
The fair value of the Company's accounts payable and accrued liabilities approximates their carrying value due to the short-term nature of these instruments unless otherwise noted. It is management's opinion that the Company is not exposed to significant interest, currency or credit risks arising from these financial instruments.
The Company monitors and manages the risks relating to its financial instruments through analysis of exposures by degree and magnitude of risks. These risks include credit risk, liquidity risk and market risk.
Credit risk
Credit risk refers to the risk that another entity will default on its contractual obligations resulting in financial loss to the Company. As of May 31, 2025, such contractual obligations comprised cash and cash equivalents held with high creditworthy financial institutions in the amount of $1,004,642. Management considers this risk to be negligible.
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Liquidity risk
Liquidity risk refers to the risk that the Company will not be able to meet its financial obligations when they become due or can only do so at excessive cost. As of May 31, 2025, the Company had working capital of $1,100,658. Management anticipates that the Company will be able to meet its obligations as they become due.
Market risk
Market risk is the risk that the fair value of a financial instrument will fluctuate because of currency risk, interest rate risk and other price risk.
Currency risk
Currency risk is the risk that the fair value or future cash flows of financial instruments will fluctuate as a result of changes in foreign exchange rates. The Company has operations in Canada, Mexico and United States and incurs expenditures in Canadian dollars, Mexican pesos and United States dollars. The fluctuation of the foreign exchange rates will have an impact upon the results of the Company. The Company does not hold substantial financial assets and liabilities in currencies other than the functional currency of each individual entity. A fluctuation in the exchange rates between Canadian dollars, Mexican pesos and United States dollars of 10% would result in a $9,600 change in the Company's cash and a nominal change in profit or loss. The Company does not use any techniques to mitigate currency risk.
Interest rate risk
Interest rate risk is the risk that future cash flows will fluctuate as a result of changes in market interest rates. Interest earned on cash is at nominal interest rates, and therefore, the Company does not consider interest rate risk to be significant. The Company has no interest-bearing financial liabilities.
Other price risk
Other price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate due to changes in market prices, other than those arising from interest rate risk. Management considers this risk to be negligible.
Fair Value Hierarchy
Financial instruments recorded at fair value in the Consolidated Statements of Financial Position are classified using a fair value hierarchy that reflects the significance of the inputs used in making the measurements. The fair value hierarchy has the following levels:
Level 1 – valuation based on quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 – valuation techniques based on inputs other than quoted prices included in level 1 that are observable for the asset or liability, either directly (i.e., as prices) or indirectly (i.e., derived from prices); and
Level 3 – valuation techniques using inputs for the asset or liability that are not based on observable market data (unobservable inputs).
The fair value hierarchy requires the use of observable market inputs whenever such inputs exist. A financial instrument is classified to the lowest level of the hierarchy for which a significant input has been considered in measuring fair value.
The following table presents the financial instruments recorded at fair value in the Condensed Consolidated Interim Statements of Financial Position, classified using the fair value hierarchy
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described above:
| Assets as at May 31, 2025 | Level 1 | Level 2 | Level 3 |
|---|---|---|---|
| Cash and cash equivalents | $1,004,642 | $ - | $ - |
Other Information
Additional information relating to the Company is available from the Company's website at https://silverdollarresources.com and on SEDAR+ at www.sedarplus.ca.
ON BEHALF OF THE BOARD
/s/ Gregory Lytle
Gregory Lytle, President