Endeavour Silver Corp. · TSX:EDR
Endeavour Silver — Corporate Update (January 2019)
105 slides from Endeavour Silver's corporate update, Jan 31, 2019
Slide 1: Review of Exploration & Development Projects, Growth Strategy & Outlook
Review of Exploration & Development Projects, Growth Strategy & Outlook Growth Webinar www.edrsilver.com TSX: EDR | NYSE: EXK January 31, 2019 1
Slide 2: Cautionary Note
Cautionary Note This presentation contains “forward-looking statements” within the meaning of the United States private securities litigation re form act of 1995 and “forward-looking information” within the meaning of applicable Canadian securities legislation. Such forward -looking statements and i
Slide 3: Presenters & Agenda
Presenters & Agenda Topic Slide # Introduction 1-3 Initial Growth Strategy 4-6 Brownfields 2019 Brownfields Exploration Review 7-9 Exploration - Guanacevi 10-13 Operating Mines Bolanitos 14-16 El Cubo 17-18 Q&A 19 Revised Growth Strategy 20-23 Brown/Greenfields El Compas 24-27 Exploration - Terroner
Slide 4: Review of Growth Strategy
Review of Growth Strategy Strategic acquisitions 15 Annual Production (AgEq million oz) during bear market for future growth ACQUIRED AIDA ACQUIRED CERRO MARQUEZ ACQUIRED Gold PALOMA 10 Silver OPENED Silver & SANTIAGO OFFICE Equivalent ounces (millions) Brownfields exploration during bull market for
Slide 5: Growth Strategy 2004 – Buy, Explore, Expand
Growth Strategy 2004 – “Buy, Explore, Expand” ▸ As a result, Endeavour became one of the fastest growing silver Expand producers during the bull market of 2004-2012 ▸ That allowed us to refurbish, modernize and expand each of the Guanacevi, Bolanitos and El Cubo mines to become profitable Explore co
Slide 6: 2019 Exploration Budget
2019 Exploration Budget Chile Exploration Mexican Exploration $2.5 million $3.2 million Cerro Marquez Terronera Aida Parral Paloma Guadalupe y Calvo $9.8 mill Brownsfield $3.1 million Unallocated $1.0 million Guanacevi Bolanitos Mexico El Cubo Chile El Compas New Opportunities 6
Slide 7: Operating Mines & Brownfields Exploration
Operating Mines & Brownfields Exploration Gm to insert slide here 77
Slide 8: Brownfields Exploration – Operating Mines
Brownfields Exploration – Operating Mines We recognized that historic mining districts in Mexico were significantly under explored in modern times because Mexico restricted foreign investment in the mining sector to 49% ownership in 1961 and did not revert to 100% ownership until they joined NAFTA i
Slide 9: 2018 Resources & Reserves - Operating Mines
2018 Resources & Reserves - Operating Mines (1) Guanacevi Tonnes Ag g/t Au g/t Ag oz Au oz Proven 74,000 224 0.53 580,000 1,300 Probable Measured 687,000 29,000 283 383 0.73 0.54 6,248,000 361,000 16,100 500 Guanacevi Indicated 999,000 287 0.77 9,230,000 24,900 Drilling to infill resources Inferred
Slide 10: Guanacevi
Celebrating 15 years of Production Guanacevi 2018 2019 Results Outlook (1) Underground Mines 2 4 Tonnes Processed (tpd) 841 1,000 – 1,200 Production Ag (M oz) 2.0 2.5 – 2.9 Ag Production Au (k oz) 5 6.2 – 6.8 AgEq (2) Production (M oz) 2.4 3.0 – 3.4 In 2019, Guanacevi is transitioning from two older
Slide 11: Guanacevi Exploration Targets 2019
Guanacevi Exploration Targets 2019 Objective 2019 budget is $1.2 million for 6,000 m of underground core drilling and crosscuts to extend the Porvenir Norte and Santa Cruz orebodies and infill and extend the Milache orebody 2019 Targets ▸ Santa Cruz ▸ Porvenir Norte ▸ Milache 11
Slide 12: Guanacevi – Santa Cruz Vein Long Section
Guanacevi – Santa Cruz Vein Long Section MILACHE SANTA CRUZ SUR Targets are extensions of the Porvenir Norte & Santa Cruz ore bodies at depth plus infilling the Milache orebody 12
Slide 13: Guanacevi - Milache
Guanacevi - Milache Jumbo drill advancing development in Milache vein; currently developing levels 5, 6, 7 ▸ Past drill intercepts include: ▸ 775 gpt Ag & 2.7 gpt Au over 6.8 m ▸ 863 gpt silver & 2.4 gpt Au over 6.6m 13
Slide 14: Bolanitos
Low Cost Producer Bolanitos 2018 2019 Results Outlook (1) Tonnes Processed (tpd) 1,203 1,000 – 1,250 Production Ag (M oz) 1.0 0.8 – 1.0 Ag Production Au (k oz) 21 19.5 – 21.5 AgEq (2) Production (M oz) 2.7 2.4 – 2.7 In 2019, Bolanitos exploration will focus on expanding the Plateros orebody and outl
Slide 15: Bolanitos – Exploration Targets 2019
Bolanitos – Exploration Targets 2019 San Miguel Objective Surface Drilling 2019 budget is $0.75 million for 5,000 meters (1,200 surface & 3,800 UG) of core drilling to extend the Plateros orebody and outline new resources in the San Miguel vein Plateros UG Drilling 2019 Targets ▸ Plateros ▸ San Migu
Slide 16: Bolanitos – San Miguel & Plateros
Bolanitos – San Miguel & Plateros ▸ San Miguel is a new discovery, near an old mine, north of the plant ▸ 2018 drill intercepts include: ▸ 1,415 gpt Ag & 2.25 gpt Au over 1.1 m ▸ 138 gpt silver & 13.2 gpt Au over 1.2m 16
Slide 17: El Cubo
Exploring to Extend Mine Life El Cubo 2018 2019 Results Outlook (1) Tonnes Processed (tpd) 1,427 700- 750 Production Ag (M oz) 2.6 1.0 – 1.2 Ag Production Au (k oz) 26.6 11.5 – 12.9 AgEq (2) Production (M oz) 4.7 1.9 – 2.3 In 2019, El Cubo will drill a possible northwest extension of the Villalpando
Slide 18: El Cubo – Villalpando
El Cubo – Villalpando Objective 2019 budget is $0.3 million for 2,000 meters of underground core drilling and crosscuts to extend the Villalpando-Asuncion vein 2019 Targets ▸ Extension of (Villalpando- Asuncion) orebody to NW 18
Slide 19: Brownfields Exploration Q&A
Brownfields Exploration Q&A 19 19
Slide 20: Development Projects & Brown/Greenfields Exploration
Development Projects & Brown/ Greenfields Exploration Gm to insert slide here 20 20
Slide 21: Growth Strategy 2012 Buy, Discover, Develop
Growth Strategy 2012 “Buy, Discover, Develop” Endeavour has one of the best organic growth We are expanding resources and reserves, completing profiles in the economic studies and environmental permits and building silver mining sector` Develop new mines to drive organic growth Unlike the first thre
Slide 22: Development Projects - El Compas, Terronera, Parral
Development Projects - El Compas, Terronera, Parral El Compas is being commissioned this quarter to become our 4th mine, small but high grade and expandable subject to finding more resources Terronera is awaiting final permits, debt financing and board decision so we can start building our 5th mine
Slide 23: 2018 Resources & Reserves – Development Projects
2018 Resources & Reserves – Development Projects (1) El Compas Tonnes Ag g/t Au g/t Ag oz Au oz El Compas Proven 38,000 90 3.99 109,000 4,800 Probable 29,000 94 4.31 88,000 4,000 Measured 3,000 33 3.94 3,000 400 High grade Au – Ag orebody Indicated 77,000 80 4.75 197,000 11,700 Inferred 212,000 74 5
Slide 24: El Compas
Now Commissioning our Fourth Mine El Compas 2019 Outlook (1) Tonnes Processed (tpd) 200 - 275 Production Ag (M oz) 0.1- 0.1 Production Au (k oz) 9.0 – 11.0 AgEq (2) Production (M oz) 0.8 – 1.0 In 2019, exploration will focus on in-fill drilling of the El Orito orebody and step-out drilling of the El
Slide 25: El Compas – Exploration Targets 2019
El Compas – Exploration Targets 2019 Objective 2019 budget is $0.8 million for 5,500 meters of surface core drilling to extend the El Compas, Calicanto and Santa Fe veins and infill drill the El Orito orebody Santa Fe – Calicanto North Surface Drilling 2019 Targets Orito Surface Drilling ▸ Calicanto
Slide 26: El Compas - Calicanto North & Santa Fe
El Compas - Calicanto North & Santa Fe Targets are extensions of the Calicanto & Santa Fe veins to the NW 26
Slide 27: Calicanto – Orito & Compas South
Calicanto – Orito & Compas South Targets are extensions of the Compas S vein to the South and infilling the Orito orebody 27
Slide 28: Terronera
Potential to Become our Largest, Lowest Cost Mine Terronera Quick Facts LOM Silver/ Gold Production (oz) (1) 2.9 million/ 28,000 40 km NE of Puerto Vallarta, Sierra Location Madre silver-gold belt Terronera and La Luz, 60 million oz Ag 2 Defined Ore Bodies Eq in Reserves (2) AgEq Grade(3) (gpt) & Ve
Slide 29: Terronera – Large, Low Cost Mine Potential
Terronera – Large, Low Cost Mine Potential Next Core Asset Increases consolidated production by +50% Decreases consolidated costs District Scale Opportunity Endeavour controls 21 concessions, totalling 16,691 hectares Covers the entire district of San Sebastian, 50 old mines on 20 known veins Update
Slide 30: Terronera - Improved Project Economics
Terronera - Improved Project Economics Updated % Change From Direct Costs per Tonne (3) Operating & Financial Metrics 2018 PFS (1) 2017 PFS Royalty , $4.23 LOM tonnes processed (thousands) 4,701 16% G&A, $8.40 Life of Mine (Years) 9.5 36% Average silver grade (g/t) 224 8% Total Cost Average gold gra
Slide 31: Terronera – Open At Depth
Terronera – Open At Depth Exploration Highlights Since 2011, + 100,000m of core drilling Mineralization is 1,400m long, 400m deep and 3-16m thick; open Infill Drill Program along strike & depth OPEN Deepest mineralized hole intersected Projected trend of high grade ore 618 gpt Ag & 3.2 gpt Au over 2
Slide 32: Terronera – Grade Distribution & Production Profile
Terronera – Grade Distribution & Production Profile Terronera Vein La Luz Vein All colors but grey and blue make ore grade Grey were high grade stopes mined out Almost entirely NW SE W super high grade E Longitudinal Section Silver Equivalent Grade Distribution AGEQ= AG + (AU x 75) 8,000 464 AgEq Pr
Slide 33: Terronera – Surface Layout
Terronera – Surface Layout Mine Camp Tailings Dam Santiago de los Pinos Community Engagement Will employ 350 people during construction & 400 in operations La Luz Mine Social impact study underway Reclaiming disturbed areas annually – planted Plant over 57k trees in the area Mine skills training pro
Slide 34: Terronera – 2019 Catalysts
Terronera – 2019 Catalysts Receive Board Arrange $50 development million debt decision Receive final financing SEMARNAT permit Next Engineering Steps Conduct feasibility level trade-off studies Commence mine development and plant earthworks Issue contracts - EPCM, plant, tailings, mine and other Upd
Slide 35: Terronera – 2019 Exploration Targets
Terronera – 2019 Exploration Targets La Unica Targeting Objective 2019 budget is $0.2 million for prospecting, mapping and sampling the Unica area to the north and El Alto area to the south, where multiple new veins have already been identified, to delineate new targets for future drilling. Endeavor
Slide 36: Parral
Potential to be Mine #6 Parral Quick Facts Palmilla mine provided silver for Mexican mint in Historic Mines late 1800’s; Colorado mine operated until 1990 Four distinct mineralized silver vein systems - Mineralized Zones Veta Colorada, San Patricio, Palmilla & Cometa Aggressive Exploration Drilling
Slide 37: Parral – Exploration Targets 2019
Parral – Exploration Targets 2019 Objective 2019 budget is $2.25 million for 5,000 meters of surface core drilling and an underground crosscut Veta Colorada to confirm old resources and outline new Surface & UG Drilling resources in the Veta Colorada vein, as well as a preliminary economic assessmen
Slide 38: Parral – Veta Colorada
Parral – Veta Colorada Targets are extensions of the La Verde and Sierra Plata mines at depth, and underground sampling to confirm historic reserve blocks 38
Slide 39: Development Projects Q&A
Development Projects Q&A 39 39
Slide 40: Greenfields Exploration
Greenfields Exploration Introducing a Portfolio of High Impact Exploration Projects in Chile 40 40
Slide 41: Why Chile?
Why Chile? Highly Prospective Highly prospective portfolio of high impact exploration projects in under-explored mineral belts at low cost World Class Deposits World class Chilean porphyry copper, epithermal gold and Bolivian epithermal silver belts all extend into northern Chile Business Friendly B
Slide 42: Aida
Aida Targeting Bolivian Low Sulphidation (LS) Epithermal Silver Opportunity 42 42
Slide 43: Aida – Bolivian LS Epithermal Silver Belt
Aida – Bolivian LS Epithermal Silver Belt 43
Slide 44: Aida – Location
Aida – Location ▸ Located in Chile Region 2 along Argentina border near Bolivia, elevation 4,600 meters asl ▸ Approximately 200 kilometers east- southeast of Calama and 60 km Bolivia Chuquicamata southwest of SSR’s Pirquitas mine in northern Argentina ▸ Accessible by paved highway 27 and Pirquitas d
Slide 45: Aida – Property
Aida – Property ▸ 7,900 hectares, including 3 historic mineral concessions (blue) surrounded by 30 new mineral concessions (green, yellow) ▸ The Company has an option to purchase the 3 historic concessions covering the old Mina Vieja mine for USD$3.2 payable over 5 years, final payment due in 2023 M
Slide 46: Aida - Regional and Property Geology
Aida - Regional and Property Geology Regional Geology & Target ▸ Part of the northwest trending Bolivian silver-lead-zinc-tin belt that runs from eastern Peru south east through Bolivia to northern Argentina and Chile ▸ Target types are bulk tonnage disseminated/stock-work, and/or high-grade bonanza
Slide 47: Aida – Extensive Alteration
Aida – Extensive Alteration (Low Sulfidation Epithermal) View of dome target (yellow alteration) and impressive scale of the alteration zone, standing on the manto target (red alteration) looking east to Argentina 47
Slide 48: Aida – Manto Target Looking Northeast
Aida – Manto Target Looking Northeast View of Mina Vieja mine, manto target (grey alteration) and silica ledge (over hill-top), looking east Shallow dipping silver-manganese mineralization (black) cut by steep dipping altered fault zone (white) at the manto target 48
Slide 49: Aida - Mineralization Model
Aida - Mineralization Model Estrella Qtz - Domo Manto Ag – Mn Mantos 49
Slide 50: Aida - Property Geology
Aida - Property Geology Domo Manto Graben faults in volcanic caldera 50
Slide 51: Aida - Rock & Soil Sampling
Aida - Rock & Soil Sampling ▸ Objective – Endeavour team analyzed 1,244 rock samples and 1,829 soil samples to better define the Manto & Dome targets ▸ Manto Rock Samples – Assayed up to 2,203 gpt silver at the Mina Vieja mine ▸ Manto Soil Samples - defined a silver-manganese- lead-zinc-antimony ano
Slide 52: Aida - Rock Sampling
Aida - Rock Sampling Zinc Lead Zinc and Lead are anomalous at the Manto target 52
Slide 53: Aida – Soil Sampling
Aida – Soil Sampling Silver Antimony Silver and Antimony are anomalous at both the Manto and Domo Targets 53
Slide 54: Aida – Soil Sampling
Aida – Soil Sampling Lead Manganese 54
Slide 55: Aida – Mineralized Rock Samples
Aida – Mineralized Rock Samples Samples of silver –manganese Hand Sample from Dome target - Banded mineralization at the manto target chalcedony (fine quartz) in the Estrella vein 55
Slide 56: Aida – LS Epithermal Silver Targets Tick the Boxes
Aida – LS Epithermal Silver Targets Tick the Boxes Component Analysis Conclusion Surface Large color anomaly 4 x 2 Km Miocene volcanic caldera, rhyo-dacite dome, quartz-stibnite veins in Geology dome, oxide Ag Mn mineralization in mantos Alteration Pervasive argillic-phyllic-silicic alteration Struc
Slide 57: Aida – 2019 Drill Targets (Contingent)
Aida – 2019 Drill Targets (Contingent) Target Vein Targets are the Mina Vieja area of the Manto Target to SW and the Estrella vein area of the Domo Target to SE 57
Slide 58: Aida - 2019 Exploration Program
Aida - 2019 Exploration Program Environmental Management Plan – Permitting of access roads and drill pads in process Ground Magnetic Survey – to identify structures & intrusions under volcanic cover Drill Ready – 2,500 meters core in H2, 2019, contingent on unallocated exploration 58 58
Slide 59: Paloma
Paloma Targeting Chilean High Sulphidation (HS) Epithermal Gold Opportunity 59
Slide 60: Paloma – Targeting the Chilean HS Epithermal Gold Belt
Paloma – Targeting the Chilean HS Epithermal Gold Belt Paloma Salares Norte La Coipa 6 M oz Au 5 M oz Au Marte-Lobo Caspiche Cerro Casale Pascua-Lama-Veladero 24 M oz Au El Indio - Tambo Alturas 7 M oz Au Argentina 60
Slide 61: Paloma - Location
Paloma - Location ▸ Located in Chile Region 2, near Aida, elevation 5,000 meters asl ▸ Approximately 150 kilometers east- southeast of Calama and 50 km west of Aida Bolivia Chuquicamata ▸ Accessible by paved highway 27 and dirt road ▸ The town of San Pedro de Atacama Pirquitas about 60 km west of Pa
Slide 62: Paloma – Property Description
Paloma – Property Description ▸ 5,100 hectares, consisting of 8 minera concessions ▸Endeavour holds an option to acquire up to a 70% interest from Compania Minera del Pacifico, S.A. (CMP), a large Chilean iron ore mining company. The Company can acquire its initial 51% interest by paying $0.75 milli
Slide 63: Paloma – Regional and Property Geology
Paloma – Regional and Property Geology Regional Geology & Target ▸ Part of northwest trending Maricunga gold belt that runs from central Chile to southern Peru ▸ Target type is bulk tonnage, low to high grade, disseminated/stock-work, breccia/vein, high sulfidation epithermal deposits related to int
Slide 64: Paloma – Extensive Alteration
Paloma – Extensive Alteration (High Sulfidation Epithermal) Chile countrymanager and chief geologist Lorenzo Barrera surrounded by high sulfidation epithermal alteration at Paloma 64
Slide 65: Paloma – Comparable Alteration (Salares Norte)
Paloma – Comparable Alteration (Salares Norte) 65
Slide 66: Paloma - Mineralization Model (Salares Norte)
Paloma - Mineralization Model (Salares Norte) Best high sulfidation epithermal gold-silver mineralization occurs in hydrothermal breccias with vuggy silica 66
Slide 67: Paloma – Rock Sampling
Paloma – Rock Sampling Rock and Soil Geochemistry ▸ Objective – CMP and Endeavour team analyzed 33 rock samples to define a strong, broad indicator element anomaly throughout the alteration zone ▸ Rock Samples – Returned up to 2.73 ppm mercury, 302 ppm arsenic, 80.4 ppm bismuth, 162 ppm antimony, 11
Slide 68: Paloma – Rock Sampling
Paloma – Rock Sampling Bismuth Antimony 68
Slide 69: Paloma – Rock Sampling
Paloma – Rock Sampling Tellurium Lead 69
Slide 70: Paloma – Mineralized Rock Samples
Paloma – Mineralized Rock Samples Vuggy Silica Breccia Quartz Alunite Jarosite Stockwork 70
Slide 71: Paloma - 2019 Exploration Program
Paloma - 2019 Exploration Program Geological mapping 1:5,000 Environmental study Roads - Trenches Soil geochemical grid 100 x 100 Spectral analysis of clays IP Resistivity Survey Definition of drilling targets: August, 2019 Drilling program: 2,500 meters in H2, 2019 71
Slide 72: Paloma – HS Epithermal Targets Tick the Boxes
Paloma – HS Epithermal Silver Targets Tick the Boxes Component Analysis Conclusion Surface Large color anomaly 3.5 x 2 Km Miocene? volcanic caldera, intrusions, breccias, tuffs, silica Geology ledges, vuggy quartz breccias, gypsum stockworks Pervasive acid sulfate-silicic-phyllic-advanced argillic-a
Slide 73: Cerro Marquez
Cerro Marquez Targeting Bulk Tonnage, Porphyry Copper (Au – Mo) Opportunity 73 73
Slide 74: Cerro Marquez - Targeting the Miocene Porphyry Cu Belt
Cerro Marquez - Targeting the Miocene Porphyry Cu Belt Cerro Marquez 74
Slide 75: Cerro Marquez - Location
Cerro Marquez - Location ▸ Located in Chile Region 15, about 90 km from the Peru border, elevation 4,200 meters asl ▸ Approximately 100 kilometers east of Arica and PanAmerican Highway ▸ Accessible by paved highway A31 and dirt road ▸ The town of Ticnamar lies about 20 km north of Cerro Marquez, mod
Slide 76: Cerro Marquez - Property
Cerro Marquez - Property ▸ 7,800 hectares, including 8 historic mineral concessions and 20 new mineral concessions staked by Endeavour ▸ Endeavour holds an option to purchase a 100% interest subject to a 2% NSR, and 20 new mineral concessions staked by Endeavour. The Company can acquire the 7 histor
Slide 77: Cerro Marquez – Regional & Property Geology
Cerro Marquez – Regional & Property Geology Regional Geology and Target ▸ Part of the northwest trending Miocene porphyry copper belt that runs from central Chile into southern Peru, home to some of the largest copper deposits and mines in the world ▸ Target type is bulk tonnage, disseminated/stock-
Slide 78: Cerro Marquez – Extensive Alteration (Porphyry)
Cerro Marquez – Extensive Alteration (Porphyry) 78
Slide 79: Cerro Marquez – Mineralization Model
Cerro Marquez – Mineralization Model Silica ledge Propylitic D veins Mo in soils Propylitic Best porphyry copper- molybdenum-gold mineralization occurs Post alteration at the top of buried intrusions Stockwork Qz Interpreted Buried Intrusions Chargeability anomaly Alunite-kaolinite Volcanic > 16 ppm
Slide 80: Cerro Marquez – Geology
Cerro Marquez – Geology This volcanic caldera is cored by high level porphyries and buried intrusions 80
Slide 81: Cerro Marquez - Alteration
Cerro Marquez - Alteration 81
Slide 82: Cerro Marquez – Clay Spectral Analysis
Cerro Marquez – Clay Spectral Analysis High temperature sericite- dickite – pyrophylite alteration occur at the core of the hydrothermal system 82
Slide 83: Cerro Marquez - Level of Erosion
Cerro Marquez - Level of Erosion Current Level Cerro Marquez 83
Slide 84: Cerro Marquez – Rock Sampling
Cerro Marquez – Rock Sampling Rock and Soil Geochemistry ▸ Endeavour analyzed 150 rock samples and 1,091 soil samples to define two targets ▸ Rock samples assayed up to 425 ppm copper, 320 ppm molybdenum and 50 ppb gold. ▸ Soil samples defined a 2.6 km long x 1.3 km wide molybdenum anomaly within a
Slide 85: Cerro Marquez – Rock Sampling
Cerro Marquez – Rock Sampling Molybdenum Gold 85
Slide 86: Cerro Marquez – Rock Sampling
Cerro Marquez – Rock Sampling Lead Zinc 86
Slide 87: Cerro Marquez – Soil Sampling
Cerro Marquez – Soil Sampling Copper Molybdenum 87
Slide 88: Cerro Marquez – Soil Sampling
Cerro Marquez – Soil Sampling Arsenic Gold 88
Slide 89: Cerro Marquez – Soil Sampling
Cerro Marquez – Soil Sampling Lead Zinc 89
Slide 90: Cerro Marquez – Geophysical Surveys, IP & Magnetics
Cerro Marquez –Geophysical Surveys, IP & Magnetics 90
Slide 91: Cerro Marquez – Magnetics Reduced to Pole
Cerro Marquez – Magnetics Reduced to Pole Three magnetic anomalies trend Low-High- Low from NW to SE reflecting different intrusions and/or alteration within the volcanic caldera 91
Slide 92: Cerro Marquez – Magnetic Section 7,932,500N
Cerro Marquez – Magnetic Section 7,932,500N Pronounced magnetic low is most likely due to alteration in and around a porphyry intrusion 92
Slide 93: Cerro Marquez – IP Section 450,400E
Cerro Marquez – IP Section 450,400E The chargeability high (red on lower section) flanked by resistively highs and lows (white & blue respectively on upper section) likely reflects conductive sulfide minerals 93
Slide 94: Cerro Marquez – IP Section 7,932,100N
Cerro Marquez – IP Section 7,932,100N The chargeability high (red on lower section) surrounds moderate chargeability related to moderate resistivity, both suggesting a peripheral pyrite halo surrounding a mineralized core zone 94
Slide 95: Cerro Marquez – Soil Molybdenum on Magnetic Anomalies
Cerro Marquez – Soil Molybdenum on Magnetic Anomalies Each of the three magnetic anomalies (Low-High- Low) are anomalous in molybdenum 95
Slide 96: Cerro Marquez – Hydrothermal Breccia
Cerro Marquez – Hydrothermal Breccia Hydrothermal breccias often occur adjacent to and above porphyry copper mineralization 96
Slide 97: Cerro Marquez - Silica Ledges
Cerro Marquez - Silica Ledges Classic D-type quartz–pyrite Silica ledges mark faults and fractures filled with quartz- stockwork veinlets, often above porphyry copper mineralization 97
Slide 98: Cerro Marquez – D-type Veinlets
Cerro Marquez – D-type Veinlets Pyrite stockworks are typically found with phyllitic Veinlet Black Quartz alteration flanking porphyry Copper mineralization 98
Slide 99: Cerro Marquez – Microscopy shows Pyr, Cpy, Dig
Cerro Marquez – Microscopy shows Pyr, Cpy, Dig Pyrite and Chalcopyrite in Dacitic Pyrite Chalcopyrite Digenite in Porphyry (Central Zone) Dioritic Porphyry (Central Zone) 99
Slide 100: Cerro Marquez – Porphyry Targets Tick All the Boxes
Cerro Marquez – Porphyry Targets Tick All the Boxes Component Analysis Conclusion Surface Large color anomaly 6.5 x 2.5 Km Porphyries, stocks, diatreme, hydrothermal breccias, Geology stockworks qz, qz-limonites, “D” veinlets, copper oxides. Alteration Sericite (White mica), argillization and propyl
Slide 101: Cerro Marquez – Drill Targets
Cerro Marquez – Drill Targets Molybdenum Gold 101
Slide 102: Cerro Marquez - 2019 Exploration Program
Cerro Marquez - 2019 Exploration Program Environmental Management Plan – permitting of access roads and drill pads in process Extend soil sampling – to delineate the SE anomalies Drilling program: 3,500 meters in H2, 2019 102
Slide 103: Chilean Projects Q&A
Chilean Projects Q&A 103 103
Slide 104: Summary
Summary OPERATING MINES Guanacevi – Developing two new orebodies to production Bolanitos – Discovering new resources at San Miguel Exploring El Cubo – Extending the Villapando orebody to NW to extend mine lives DEVELOPMENT PROJECTS El Compas, Zacatecas Commissioning Mine # 4 Moving to production Sma
Slide 105: Appendix: MR&R (Dec 31, 2018)
Appendix: MR&R (Dec 31, 2018) Silver-Gold Reserves and Resources Tonnes Ag g/t Au g/t Ag oz Au oz Guanaceví 74,000 224 0.53 580,000 1,300 Bolañitos 186,000 109 1.90 653,000 11,400 Proven El Cubo 98,000 182 1.95 572,000 6,100 El Compas 38,000 90 3.99 109,000 4,800 Total Proven 396,000 150 1.86 1,914,