SDA PLANT WESTERN MEXICO

The SDA plant consists of a flotation plant which also includes a precious metals leach circuit - Merrill Crowe system and associated assets, licenses and agreements. The plant has a ten year operating history at 100 tonnes per day but can be expanded to process mined material at a rate of up to 200 tonnes per day. Historically its operation has been based on sales of flotation concentrates to smelters, and payment for precious metals content. The plant lies within the rich Sierra Madre Occidental mineralized belt, which historically has yielded millions of ounces ("oz") of precious metals and offers multiple high grade gold and silver epithermal vein opportunities.

The SDA Plant is one of two cornerstones in the Western Mexico production platform.

• Recently operational flotation plant with a Merrill Crowe leach circuit.
• Ten-year operating history at 100 tpd; expandable to 200 tpd.
• Located within the rich Sierra Madre Occidental mineralized belt near the town of Acaponeta, with easy access to regional infrastructure and transportation routes.
• Operated from 2007 until April 2017 by Minerales Vane S.A. de C.V.
• Magellan operated the mill in 2019 - processed a 600 tonne bulk sample for a tolling opportunity.