PLUTON PROJECT

Target Type:silver-lead-zinc carbonate replacement deposits

Pluton is a district-scale exploration project in a prime location within the historic “Ojuela-Mapimi Mining District”. The District hosts the past-producing La Ojuela mine lying along strike to the south of Pluton, and Excellon's (TSX: EXN) Platsoa Mine to the east. The La Ojuela mine was one of the richest silver mines in Mexico with history of production that exceeds 350 years, and was one of the first acquisitions of Penoles in the late 1800s. The Platosa mine produced over one million silver equivalent ounces with silver grades of 506 g/t in the first six months of 2021 with recent drilling intersecting high grade mineralization such as 2,860 g/t AgEq over 7.5 meters (EX21UG690 October 5, 2021 news release).

Aeromag and ZTEM surveys show that Pluton, Platosa and La Ojuela all lie on the edge of a 40km wide buried intrusion believed to be the source of mineralizing fluids. In 2011 a prior operator undertook a 3900m diamond drill program on Pluton. All of the drill holes encountered silver-lead-zinc mineralization in veins in altered rocks (shale hornfels). The shale hornfels unit overlies the carbonate rocks that host the mineralization at Platosa and La Ojuela, meaning none of these earlier holes reached the depth necessary to test for carbonate replacement deposits. The vein mineralization encountered in the 2011 drill program is interpreted as leakage into the non-reactive shale hornfels from the intrusion and/or the carbonates below.

The targets for silver rich massive sulphides lie at the contact of the limestone and downward projection of the mineralized fractures seen in the hornfels. The next steps in the exploration process include processing of historic geophysical data followed by seismic survey to map out the contract between the hornfels shale and the carbonate unit, and ultimately drilling of select targets defined.