PIT

OPTIMIZATION

PIT RESOURCE

EXPANSION

FURTHER

EXPLORATION

EXIT

STRATEGY

Further Exploration of Nieves

Goals and objectives

• To find the intrusive, the source of extensive mineralization encountered in Nieves .

• To test other magnetic anomalies that are the source of significant and higher grade mineralization and may suggest the presence of undiscovered veins and vein systems at Nieves.

• To find and assess >1,000,000,000 ounces of silver.

Drilling Program No. 14, Searching for Intrusive Ore Bodies

• A carefully planned drilling campaign to test multiple geophysical anomalies discovered in the 2015 / 2016 Geophysical Survey of the Nieves Silver Property.

• The large ovoid magnetic low feature with dimensions of 1,900m by 1,200m occurring at the west end of the Concordia Vein System at depth which includes the drill indicated Gold (Au) and Silver (Ag) found within the Concordia Vein. This magnetic low lies midway between the Orion-Gregorio Vein, where drill hole QTA109 intersected bonanza grade silver, 54.5 ounces per ton, and the Santa Rita Vein System to the south, where gold and silver were mined from Au-Ag veins as recently as 1980. 3D modeling indicates the source of the magnetic low is a compact zone of rocks which are the Caracol and Indidura formations. These are the same formations hosting the worlds largest silver reserve, Penasquito, located 100km to the east.

• The area south and southeast of the Vein Swarm known as the Santa Rita Vein. The 2015 IP data indicates at least three veins in the area south of the Santa Rita.

• Two magnetic lows found on the western edge of the 2015 Survey 9km-10kn west of the Concordia Vein System.

• Drill down dip along the major veins in search of higher grade silver mineralization and increased tonnage.

• Secure updated Form 43-101 PEA to include results from further exploration of Nieves.

 

Budget

$10,000,000  fully burdened

 

Timeline

12 months

 

Time frame

January 1, 2022 - December 31, 2022

Case for Further Exploration of Nieves using Geophysical Data and Drilling

• Given that explorationists believe that the 2005 Inman Nieves Mineral Deposition Model is the best fit for the data acquired and given the observations made from three geophysical surveys, plus eleven carefully planned drilling programs and thirteen legacy mines, the case can be made that exploration at Nieves should not cease without looking for the source or sources of the mineralization — the intrusive ore body.

 

• Inman’s model consists of a large hydrothermal system driven by deep magma. As previously described, ore deposition often occurs several times as the magma hydrothermal system pulses upward. At some elevation within the system, the hydrostatic pressure confining the system is exceeded and ore bearing fluids boil and cool as mixing with meteoric water takes place. The zone is typically 200-500 meters below the ground surface at the time the system is active and the zone of boiling of ore bearing fluids, the ‘kettle,’ has a depth on the order of 500 meters below surface. While the kettle likely extends under the entire Nieves property, ore fluids and subsequent deposition of bonanza grade silver ore is concentrated in the close proximity to deep tapping structural zones that acted as pathways for ore bearing fluids into the kettle and upward to the surface.

• Following this model, we plan to drill the four outstanding magnetic anomalies at depth to test the high potential for thick zones of high grade silver mineralization within the kettle itself:

   #1 The most notable feature to emerge was a large ovoid magnetic low anomaly with dimensions of 1,000 meters by 1,900 meters, which is located in the eastern portion of the Nieves Silver Property on the western end of the central vein system under the Concordia-Gregoria vein which includes the reported and assessed silver within the Concordia Vein.

   #2 An even larger target is a magnetic high nicknamed the Raging Bull. Located in the southwest quadrant of the Property, just west of the Raging Bull, is a smaller magnetic low indicative of sulphide mineralization.

   #3 Located west of the Raging Bull is a magnetic low indicative of sulphide mineralization.

   #4 Located in the north western quartrant of Nieves is a magnetic low indicative of sulphide mineralization.

 

• We also plan to test all of the 26 indicated veins within the property to find the bonanza grade silver ore concentrated in close proximity to deep tapping structures. That subsequent modeling indicates the presence of four large magnetic anomalies.

 

• Further to the 2015-2016 Geophysical Survey, we plan to drill two zones of increased (higher) magnetite located north and south of the large ovoid low that could be hornfels or magnetite bearing skarns peripheral to an intrusive or breccia for gold

2016 Geophysical Magnetic Complex Model

This 2016 image shows the magnetic complex of the entire Nieves property (outlined in black).