MATILDE PROJECT

Panoramic view towards the northwest of the Cerro Pinto Zone, showing the mineralized structures and stockwork zone

Prime Location.

Located in Sonora, Mexico, covering an area of 1,797 hectares, Ana Julia Lot (832 hectares) and Matilde Lot (965 hectares); with great possibilities of acquir- ing new areas surrounding the project.

Identified Mineralized Zones.

Exploration has already discovered the Cerro Pinto and Tosimuri targets that extend discontinuously along two and a half kilometers, with mineralized widths of up to 300 m.

Excellent Geology.

Hosts low-sulfidation epithermal silver-gold veins lying within the metallogenetic province of Au-Ag-Cu of Sonora.

Great Exploration Potential.

The exploration will continue the search for new tar- gets and the development of existing targets.

MINERALIZATION

The Matilde Project lies within the metallogenic province of Sonora—highly prospective for Au, Ag, Pb & Zn. Due to a tectonic window and the erosion of the area, the main outcrops are Late Cretaceous volcano- sediments of the Tarahumara Formation. The formation is intensely fractured and faulted, which caused the low temperature epithermal fluids to percolate into rocks forming areas of Cc-Qtz-Ba veins, silicified structures, veinlets zones and stockworks of Cc-Qtz . All of these structures contains significant Ag and Au values.

The mineralized system at Matilde is divided into three parts—upper, middle and lower.

Lower Mineralized System (LMS) - medium-to-coarse- grained Grd-Gr (Laramidic) type intrusive which is in direct contact with the fault, mainly with volcano- sediments of composition And-Ar- Dac (Tarahumara Formation)

Middle Mineralized System (MMS) - Cc-Qtz-Ba veinlets hosted within And-Ar, forming moderate– to poorly- developed stockworks

Upper Mineralized System (UMS) - Cc-Qtz-Ba veinlets

Based on the geochemistry of Au and Ag of the samples collected, at different elevations levels documented with GPS in each sample, Au-Ag mineralization zoning is observed.

• Between 230 & 330 (mamsl) – very constant Au values.
• Between 210 & 230 (mamsl) – significant Ag values.
• Between 200 & 200 (mamsl) – scarce Au values; that it could be andesite boulders, with veinlets and stockworks exposed through erosion at the level stream.

Note: mamsl—meters above mean sea level.