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Cocula, Western Mexico

History

The Cocula Project is located within the Ameca Mining District of Jalisco State which is also home to Agnico Eagle's El Barqueño Project and Endeavor Silver's Terronera Project. Timmins Gold Corp. explored the Cocula Property between 2007 and 2011 through a series of comprehensive exploration programs which included geological mapping, geochemical sampling, trenching and 1,974 meters ("m") of Reverse Circulation ("RC") drilling. Significant results included 54m grading 4.97 grams per tonne ("g/t") gold in a trench across the center of the mineralized area. An RC hole drilled beneath this trench encountered 37.5m grading 1.3 g/t gold including 7.5m grading 5.8 g/t from surface to a 7.5 m depth. Near and at-surface, mineralization delineated by drilling and trenching has been traced for at least 800m along strike within a NW-SE trending fault zone.

To the Company's knowledge, a NI 43-101 compliant mineral resource estimate has not been completed for the Cocula property however Timmins Gold Corp. conducted various in-house resource estimates. A qualified person has not done sufficient work to classify the historical estimates as current mineral resources and therefor the Company is not treating the historical estimates as current mineral resources. Historical reviews of the potential tonnes and the potential grades quoted below are conceptual in nature.

In December of 2008, consultant (Pedro Teran) contracted by Timmins Gold Corp., produced an internal resource estimate for a portion of the deposit delineated by their RC drilling and trenching results, including assays from 1,552 surface samples. The geologist applied a geological model appropriate to the observed mineralization to build a MineSight block model and derived an estimate of 5,796,023 tonnes grading 0.58 g/t gold containing 108,081 ounces ("oz") gold (the cutoff grade was not defined and CIM categories are not clear).

The Company has reviewed the above as well as all reports and data available and considers there is potential for conceptual exploration targets including a lower grade bulk tonnage, potentially leachable deposit as well as a higher grade/lower tonnage core of the deposit. Based on all of the existing exploration data and previous resource estimates to date the Company believes the Conceptual Exploration Targets have potential for: 500,000 to 6,000,000 tonnes grading from 0.5 g/t Au to 2.75 g/t Au containing between 50,000 and 100,000 oz Au with secondary credits from silver, lead, zinc and copper. The above is based on exploration to date by Timmins and others and does not include additional exploration potential. The potential quantity and grade described above is conceptual in nature, in that there has been insufficient exploration to define a mineral resource and it is uncertain if further exploration will result in the target being delineated as a 43-101 compliant mineral resource.

Check sampling conducted in October 2020 by Ing. Humberto Hernandez, Geological Engineer, member of Asociación de Ingenieros Mineros, Metalúrgistas y Geólogos de México, has confirmed grades of 5.663 g/t gold over 6 metres and 4.322 g/t gold over 8 metres in quartz breccia bodies which also contain galena and sphalerite.


Cocula Au/Ag Open Pit Project -- Summary

  • Potential for near term production by both leaching and flotation
  • Lower grade bulk tonnage mineralization has potential for open pit mining
  • Higher grades found in vein and breccia structures potentially form a higher-grade core to the deposit
  • Conceptual Exploration Target of:
    • 500,000 to 6,000,000 tonnes
    • 0.5 to 2.75 g/t Au with silver and base metal credits
    • 50,000 to 100,000 oz Au
    • Potential for additional ounces along strike and down dip
  • Shallow plunge and low strip ratio
  • Located 50 kilometers from Guadalajara, Mexico
  • Close to the town of Cocula (pop. 13,000) and infrastructure