DIABLILLOS PROJECT
MINER RESOURCES ESTIMATE
| Category | Deposit | Tonnage (000t) | Ag (g/t) | Au (g/t) | Contained Ag (000 oz) | Contained Au (000 oz) |
|---|---|---|---|---|---|---|
| Indicated | Oculto | 26,850 | 93.0 | 0.85 | 80,300 | 732 |
| Fantasma | 200 | 98.3 | - | 650 | - | |
| Total | 27,100 | 93.1 | 0.84 | 80,940 | 732 | 732 |
| Inferred | Oculto | 1,000 | 46.8 | 0.89 | 1,510 | 29 |
| Fantasma | 80 | 75.3 | - | 190 | - | - |
| Total | 1,100 | 48.8 | 0.83 | 1,690 | 29 | 29 |
Notes:
- CIM (2014) definitions were followed for Mineral Resources.
- Mineral Resources are estimated at a cut-off grade of 40 g/t AgEq for Oculto and 40 g/t Ag for Fantasma.
- Mineral Resources are estimated using long-term metal prices of US$1,500/oz Au and US$23/oz Ag.
- Average bulk density is 2.22 t/m3 for the Indicated category and 2.29 t/m3 for Inferred for Oculto and 2.00 t/ m3 for both Indicated and Inferred categories for Fantasma.
- The estimate is constrained by a pit shell for both Oculto and Fantasma.
- Numbers may not add due to rounding.
Qualified Person
Mineral Resources: The Mineral Resources disclosed have been estimated by Mr. David Rennie, P. Eng., an employee of RPA and independent of AbraSilver. By virtue of his education and relevant experience, Mr. Rennie is a "Qualified Persons" for the purpose of National Instrument 43-101. The Mineral Resources have been classified in accordance with CIM Definition Standards for Mineral Resources and Mineral Reserves.
Diablillos is a 7,919 ha property located in the Argentine Puna region, which is the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile. It is a high plateau, separating the Cordillera Oriental to the east from the Andean Cordillera (Cordillera Occidental) to the west. Other major deposits in this region include Taca Taca, Escondida, and Pirquitas.
There are currently seven known mineralized zones on the Diablillos property, with the Oculto zone being the most important and the best explored. Oculto is a high-sulphidation epithermal silver-gold deposit derived from remnant hot springs activity following Tertiary-age local magmatic and volcanic activity with strong supergene overprinting.
| Ownership | 100% AbraSilver Remaining payment of US$7M due to SSR in 2025 |
|---|---|
| Geology | High-sulphidation epithermal silver-gold deposit |
| Location | Salta Province, Argentina Approx. 160 km southwest of city of Salta, along border between Provinces of Salta and Catamarca |
| Elevation | Between 4,100 to 4,650 MASL |
| Nearby Projects in Salta | Lindero (Fortuna Silver) Taca Taca (First Quantum) Rio Grande (Aldebaran) El Quevar (Golden Minerals) |
| Drilling to Date | Approx. 90,000m with expenditures of +US$35 million |
| Stage | PEA completed in 2018. After-tax IRR of 30.2% and NPV 7.5% of US$212M (at $20/oz Ag and $1,300/oz Au) |
About Diablillos
The 80 km2 Diablillos property is located in the Argentine Puna region - the southern extension of the Altiplano of southern Peru, Bolivia, and northern Chile - and was acquired from SSR Mining Inc. by the Company in 2016. There are several known mineral zones on the Diablillos property, with the Oculto zone being the most advanced with approximately 90,000 metres drilled to date. Oculto is a highsulphidation epithermal silver-gold deposit derived from remnant hot springs activity following Tertiartyage local magmatic and volcanic activity. Comparatively nearby examples of high sulphidation epithermal deposits include: El Indio, Chile; Veladero, Argentina; and Pascua Lama, on the ChileArgentine border.