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Pino de Plata


Pino de Plata is an epithermal silver/base metal/gold project located in the prolific Sierra Madre Occidental region of Western Chihuahua State in Mexico. The property consists of 397 ha in four concessions containing a number of historic artisanal mine workings dating back to the Spanish Colonial era. The Company has completed a 43-101 exploration assessment on the property in 2015 and based on high silver values in surface channel samples (>500 opt Ag) is pursuing a targeted exploration program which will include geophysics, geochemistry and a drilling program with thirty permitted sites on several discrete target types. Phase 1 drilling was recommended on eight targets were recommended for initial drill testing by twelve holes and include gossans in the Gossan zone, skarn/replacements at Santa Elena, the Terrero mine target, the la Perla, Santa Clara, Theodora and Sierpe veins and their associated alteration, and the newly defined Muro vein.

The 2019 field program program expanded areas of intrusive-related alteration and mineralization to 50+ hectares, confirmed high silver grades are present on surface at El Terrero and Gossan areas, added three new vein targets at La Perla, Santa Clara and El Muro vein systems, refined drill collar locations and orientations to optimize targeting. The Company is now prepared to start the Phase I drilling. The Company holds a permit to drill 30 holes, which includes locations for Phase I and Phase II drill programs. All planned Phase I drill holes will be collared on existing roads that pass over or adjacent to the targets, with no new access roads required. A surface access agreement is in place, as is required to obtain the permit. The programmed Phase I drilling will consist of HQ core, twelve holes, for an estimated total of 2000+ metres.

The recent study at Pino de Plata was directed towards understanding the mineralization to be able to further refine the drill program. Several cross sections were laid out for the drill holes recommended for the first phase of drilling. Eight targets were identified for drill testing: gossans in the Gossan zone, skarn/replacements at Santa Elena, the Terrero mine target, the la Perla vein and associated alteration zone, the Santa Clara vein, the Theodora vein, the Sierpe veins and associated alteration, and the newly defined Muro vein. Please view Geologic Map with proposed drill hole locations. Each of these target areas have outcropping mineralization that has been mapped and sampled.

Based on field observations, the Terrero and Gossan are large targets with potential for encountering wide zones of mineralization. Both areas exhibit strong iron oxides after original sulfide minerals. The combined area of the Terrero and Gossan target alteration is now over fifty hectares. XRF and NIR surveys show anomalous intrusive and replacement-related indicator elements associated elements.

The Terrero target is a relatively flat-lying body that appears to consist of multiple structures associated with strong argillic alteration and abundant iron oxides and jarosite due to oxidation of original pyrite and possibly other sulfide minerals. Surface exposures as well as dumps have yielded high silver and base metal values, and similar assays were reported by the government geological survey from underground workings. Also, similar alteration extending to the west to La Perla and Sierpe and northeast towards Santa Clara indicates potential for extending mineralization along strike, to be tested by drilling. Recent samples confirm the high grades of mineralization previously sampled by the Company and the historical high grades reported by the previous owner and in three previous reports by the Mexico geologic service (Servicio Geologico Mexicano, or "SGM").

The gossans have elevated base metal values and seem to be related to oxidation of replacement mineralization. They may be partly controlled by northerly and easterly structures similar to other areas on the project. Oxidized zones in the intrusive near the contact with hornfels away from the main gossan exposures may be indicative of similar targets in the subsurface. Highly anomalous levels of silver, lead, zinc, copper and iron at the surface of the heavily weathered gossan is likely leftover from the original sulfide mineralization (i.e., Argentite-AgS, Galena-PbS, Sphalerite-ZnS, Chalcopyrite-CuFeS2, Pyrite-FeS2) which has been leached by weathering from surface outcrop. Enriched mineralized layers of rock may exist below the surface and will be drill tested.

The strongly altered rocks around the Sierpe I vein also have visually high iron content apparently after sulfides that extends underneath younger volcanic rocks and also comprises a large target that surrounds the vein itself. The high grades of silver sampled at the Sierpe I vein is contained within a large volume of altered intrusive rock that extends 850 metres west from the Terrero mine area. This rock may contain disseminated mineralization and could host a large volume of mineralized rock from surface.

Quality Assurance/Quality Control

Samples were prepared and analyzed by ALS Global, a certified worldwide analytical services provider at their facilities in Chihuahua and Vancouver, respectively. Analysis was by the AuME-TL43 method, with analysis of all elements by ICP-MS and ICP-AES with aqua regia digestion. Au was determined as part of the package with a 25 gram digestion. Over-limits for Ag and Pb, values of >100g/t and >10,000ppm, respectively, were completed by the OG-46 method by ICP and aqua regia digestion. Dr. Gibson supervised the data collection and sampling at the project as well as data compilation, drafting and interpretation. The Company uses standard QA/QC procedures, including inserting control samples, standards and blanks, in the sample stream. No quality assurance/quality control issues have been identified to date.

Qualified Person

Dr. Craig Gibson, Ph.D., CPG, is the Company's external Qualified Person for the Pino de Plata project and is responsible for the technical content of this press release within the meaning of National Instrument 43-101 Standards of Disclosure for Mineral Projects ("NI 43-101"), under TSX guidelines.