Exploration

Phase 1 Reverse Circulation Exploration Program: reverse circulation drilling in 21 holes totalling 2,723 meters was completed in Q4, 2019. This phase confirmed near surface gold/silver mineralization along 300 meters of La Lamosa Ridge.

Open mineralization continues at depth towards the SW of the ridge.

The following table summarizes main drill intercepts at Lamosa Hill

RC Hole No.	Total Length	From (m)	To (m)	Width (m)	True Width (m)	Au g/t	Ag g/t	AuEq g/t	Hole purpose
MER19-001	167.64	0.00	140.21	140.21		0.53	8.5	0.64	Twin MER08-001
		0.00	33.53	33.53	Not Available Drilled Down Dip	0.66	7.2	0.75
	Include	0.00	13.72	13.72		1.04	3.1	1.08
And		44.20	48.77	4.57		0.52	1.9	0.54
And		60.96	97.54	36.58		0.97	9.9	1.09
	Include	60.96	68.58	7.62		1.55	2.1	1.57
	Include	71.63	92.96	21.33		1.00	8.8	1.11
And		128.02	140.21	12.19		0.66	9.8	0.78
	Include	129.54	135.64	6.10		0.85	14.4	1.03
MER19-002	152.4	0.00	18.29	18.29		0.55	2.5	0.58	Exploration
	Include	3.05	4.57	1.52	At the footwall	1.33	2.2	1.36
	Include	7.62	15.24	7.62		0.76	3.0	0.80
And		111.25	114.30	3.05		0.58	23.5	0.87
MER19-003	134.11	0.00	120.40	120.40		0.54	22.4	0.81	Twin MER08-002
And		24.38	28.96	4.57	Not Available Drilled Down Dip	0.41	4.9	0.47
And		32.00	68.58	36.58		0.74	63.9	1.51
	Include	59.44	62.48	3.05		2.42	404.5	7.33
And		79.25	120.40	41.15		0.79	5.6	0.85
	Include	83.82	89.92	6.10		1.59	11.7	1.73
	Include	96.01	97.54	1.52		1.73	1.3	1.75
	Include	115.82	118.87	3.05		2.49	9.1	2.60
MER19-004	131.06	0.00	118.87	118.87	59.44	0.46	41.8	0.97	Exploration
And		18.29	44.20	25.91	12.95	0.59	64.2	1.37
	Include	28.96	30.48	1.52	0.76	1.16	48.2	1.75
	Include	35.05	39.62	4.57	2.28	1.57	151.0	3.41
And		44.20	50.29	6.10	3.05	0.12	45.2	0.66
And		54.86	57.91	3.05	1.52	0.26	300.0	3.90
And		80.77	112.78	32.01	16.00	0.75	13.8	0.92
	Include	80.77	92.96	12.19	6.10	0.78	15.0	0.96
	Include	100.58	109.73	9.14	4.57	1.26	11.6	1.40
And		115.82	118.87	3.05	1.53	1.00	5.1	1.06
MER19-005	91.44	6.10	9.14	3.05	Not available	0.33	1.5	0.35	Exploration
And		30.48	32.00	1.52		0.31	39.5	0.79
MER19-006	91.44	4.57	27.43	22.86	11.43	0.57	25.2	0.88	Exploration
	Include	18.29	25.91	7.62	3.81	1.09	44.5	1.63
And		50.29	53.34	3.05	1.52	0.86	8.4	0.96
MER19-007	131.06	0.00	27.43	27.43	17.83	0.45	10.2	0.57	Exploration
	Include	3.05	9.14	6.10	3.96	0.80	17.5	1.02
	Include	22.86	24.38	1.52	0.99	1.11	7.6	1.20
MER19-008	140.2	0.00	62.48	62.48	40.16	0.36	12.4	0.52	Exploration
	Include	25.91	47.24	21.33	11.76	0.53	19.7	0.77
MER19-009	91.44	0.00	10.67	10.67	6.86	0.35	7.8	0.45	Exploration
And		51.82	56.39	4.57	2.94	1.23	15.8	1.42
	Include	53.34	54.86	1.52	0.00	2.65	19.2	2.88
And		76.20	77.72	1.52	0.00	0.40	2.0	0.43
MER19-010	100.58	0.00	30.48	30.48	21.55	0.60	15.9	0.80	Exploration
	Include	7.62	12.19	4.57	3.23	1.74	69.0	2.58
	Include	19.81	25.91	6.10	4.31	0.69	6.7	0.78
And		35.05	47.24	12.19	8.62	0.31	4.7	0.36
MER19-011	115.82	68.58	76.20	7.62	4.90	0.52	20.0	0.77	Exploration
	Include	68.58	70.10	1.52	0.98	1.36	24.6	1.66
MER19-012	152.40	0.00	1.52	1.52	1.52	0.39	3.6	0.43	Exploration
And		4.57	6.10	1.52	1.52	0.49	3.7	0.54
MER19-013	155.45	No significant assay results							Exploration
MER19-014	161.54	15.24	42.67	27.43	27.43	0.69	9.3	0.80	Exploration
	Include	15.24	22.86	7.62	7.62	0.83	11.1	0.96
	Include	25.91	28.96	3.05	3.05	1.27	32.8	1.67
	Include	32.00	38.10	6.10	6.10	0.74	1.2	0.76
And		47.24	51.82	4.57	4.57	0.37	7.9	0.47
MER19-015	128.02	47.24	64.01	16.76	8.38	0.77	6.5	0.85	Exploration
And		82.30	83.82	1.52	0.76	0.26	223.0	2.97
And		99.06	106.68	7.62	4.57	0.62	15.1	0.81
MER19-016	112.78	0.00	1.52	1.52		0.95	1.2	0.96	Exploration
MER19-017	161.54	No significant assay results							Exploration
MER19-018	100.58	0.00	38.10	38.10	Not available	0.67	13.2	0.83	Exploration
	Include	21.34	27.43	6.10		1.43	42.9	1.95
MER19-019	152.4	0.00	28.96	28.96	Not available	0.76	8.9	0.87	Exploration
	Include	0.00	7.62	7.62		1.06	9.3	1.17
	Include	12.19	13.72	1.52		1.70	64.8	2.49
And		39.62	47.24	7.62		0.73	14.9	0.91
And		57.91	59.44	1.52		0.25	75.4	1.17
MER19-020	100.58	0.00	21.34	21.34	Not available	1.61	2.2	1.64	Exploration
	Include	4.57	7.62	3.05		6.99	3.9	7.03
MER19-021	147.83	0.00	21.34	21.34	Not available	1.21	11.8	1.36	Exploration
	Include	0.00	3.05	3.05		4.26	15.4	4.44
	Include	6.10	7.62	1.52		2.57	19.0	2.80
	Include	13.72	15.24	1.52		1.53	41.5	2.04

 

Comprehensive mapping and sampling work have led to the identification of 4 mineralized targets within the property:

Mina de Oro

Sample Type	Width (m)	Sample Number	Au g/t	Ag g/t	Cu_%	Pb%
Chip Channel	1.30	187	1.948	50.8	0.00	0.11
Chip Channel	2.00	253	3.742	32.9	0.23	0.03
Chip Channel	1.30	263	0.124	1,000	1.04	4.00
Chip Channel	1.00	752	0.021	372	0.79	0.26
Chip Channel	1.50	753	0.196	462	0.49	0.77
Chip Channel	1.20	754	8.594	713	6.90	4.00
Chip Channel	0.30	762	11.100	4.8	0.03	0.01
Chip Channel	0.30	764	1.229	0.7	0.01	0.00
Chip Channel	2.50	792	2.798	48.5	0.01	0.47
Chip Channel	1.50	793	0.446	110	0.06	0.59
Chip Channel	1.20	796	63.200	31.5	0.00	0.08
Chip Channel	1.00	841	3.012	0.9	0.00	0.00
Chip Channel	2.00	929	1.027	14.7	0.01	0.59
Chip Channel	2.60	937	1.073	19.3	0.01	0.20
Chip Channel	1.20	938	10.600	558	0.21	4.00
Chip Channel	1.80	1304	0.010	184	1.45	0.33
Chip Channel	1.00	1305	0.038	157	0.11	0.47

Salto Colorado

Sample type	Width (m)	Sample #	Gold g/t	Silver g/t	Copper %	Lead %
Channel	1.0	716	8.53	303	0.02	1.76
Panel	-	1229	8.10	5	0.03	0.01
Grab	-	1082A	2.81	818	26.63	8.22
Dump	-	715	2.39	460	4.21	4.00
Channel	1.0	710	1.38	66	0.12	0.12
Channel	2.0	708	1.18	389	2.65	3.90

Noche Buena:

Sample type	Width (m)	Sample #	Gold g/t	Silver g/t	Copper %	Lead %
Channel	1.0	1007	0.76	80	1.36	0.06
Channel	2.8	1081	0.42	67	0.43	0.03
Channel	1.5	1114	0.37	25	0.03	0.91

La Cueva

Sample type	Width (m)	Sample #	Gold g/t	Silver g/t	Copper %	Lead %
Channel	1.0	1189	1.95	92	0.01	1.96
Channel	1.0	1188	0.12	151	0.02	1.59