Centenario Gold Update and 2024 Drilling

0:00 Good morning, everyone. I'd like to thank you all for joining us this morning for the Centenario Gold webinar to update you on the Eden and tell you about our future plans for the drilling that's coming hopefully later this summer. My name's Doug Fulcher, president of the company. A few Members from the team that are joining us also this morning, Olayne Chrez, CEO, VP of Exploration. He will be doing the presentation this morning. We also have Elmendra, who's Operations Manager in Mexico. Just a solid add to the team in Mexico and make sure things run smoothly there. Also, Steve McGuire is joining us. He's Corporate Development here in Vancouver. We'll let Elaine get into the presentation.

0:47 One thing I did want to say is that we will be answering questions at the end. You can go on the chat line and type out questions. And hopefully we do this in about 20 minutes, 25 minutes. So Elaine, I'll pass it over to you now. Thanks very much. Thanks, Doug. Elaine Charest, welcome everybody. We founded this company in late 2020 as a private company. And basically the mandate was to look for a good gold property. So we've been looking at prospects, really a good dozen of them in the first 6, 8 months, really, really extensive looking around. They're hard to find. And finally, we found one that basically to us and to me, the geological team has some good value and also a bit surprised to find this property because it was sitting just north of prime mining's property and you would think that they would acquire this since it has the same type of systems on it. So, the late 2021 We decided to make an option early 2021.

1:48 We made an option on it to acquire the rights to this these 2 concessions. I mean there's 3 of them you can see right there to the north of Prine. And okay, location wise, Mazatlan to the south and Cuyacán to the northwest, all the way up to Cozala is paved road 150 kilometers. So, very good access airports in both cities and from Kosala to the mining project dirt road is about 35 kilometers or going this way here. Same access that goes to the main prime project. When I say good real estate, you've got 2 million ounces of resource at prime mining to the south, right here, And you've got this old Scorpio mining company that was there. They opened a mine, I think, 25 years ago, lead, silver, zinc. And it's been picked up, sold by a new American company called American Gold and Silver. And This company is producing right now. We have producing mines to the northwest and we have 2 million ounces resource to the south.

2:55 The geology, as you'll see later, here's our basic table of 2 concessions that are titled, 1 in process, the one to the north, and so all together is about 5,000 hectares. Then, 1 is very important, one of the main keys to looking at this was Closeology, like some people like to use, are very similar to the Los Reyes project, which is prime mining's project, the south here, which is used to call the Guadalupe de Los Reyes district, mining district. And it's been mined like, I'd say over a hundred years, probably more than that. And that's from all records that said it took 600,000 ounces of gold of Guadalupe Los Reyes late 1800s early 1910s and we're sitting right here with the same type of system. We got the same type of fractures. We have the same dikes and bright light sitting below. It's like identical and in good numbers as you you will see.

4:01 So basically it's another an extension of the Los Reyes prospect. 10 kilometers away we are. Initially when we got to look at this the concession owners gave us a map showing us that you had 4 different structures on their property that had mineralization on it. And the access road, the main access road, crosses some of these structures and there's some old mine workings sitting at the cross section of the roads on each one of them. We found VG on each one of them. There's working, we got values, but the old workings are all caved in. We cannot get in. But we decided to do our good homework and go up the hill. There's an old road here. We walked in. It was a 2 hours walk to get up here and that's where we saw and found the Buena Vista All Mine District, which is basically an area of extensive all mining where we started to do our work, surface and underground.

5:00 This tunnel right here in the middle is 100 meter long, it's horizontal. Samples were taken only every 10 meters when you look at this. And there's a little entrance on the south side, I mean on the lower side, and there's another, I mean it's 1, 2, 3. So these structures, and these are the numbers that we picked, we collected underground or at surface, just incredible numbers. I mean up to 200 grams gold, kilo and a half silver and so we are pretty excited with and the VG, we saw VG quite everywhere and around this. So here's a nice picture of one of these veins, the main Buena Vista vein. That's about a meter 0.3, that gave us probably 25 grams of coal. And then here's a good story.

5:47 After we cleaned up the road to get to the main access, the main portal right here, we had 20 to 30 to 40 grams along the structure. You don't see it that well here. We had a tractor clean it up and we say, hey, why don't you scoop the side of the hill here so we can see what we have there. Here's a good example what we have there. So it's a zone of stock works and breccias that sits on top of the main vein that gives it some good width which is the same thing you see at Los Reyes. So good size, good grade, so we decided, okay, let's go see how this thing extends at both the south and north. And as you can see from this map, the main workings there, he is sitting right in the middle here. So, we did from what we call regional mapping and we connected basically this structure together and we connected it to La Paloma prospect on the road to the south.

6:42 And that's 2.8 kilometers. And we had numbers, you know, it's all the same, the right textures, 2 grams, half gram, everywhere. And so we connected and, hey, that's pretty exciting. Next program was, let's do some soils and the soils, we thought trace elements would be something that would help. But no, there was no trace element. It was barely gold, silver. It's clean, clean, clean. So interesting as we would expect. The old mining area is pretty hot. And all the way up to the northeast. This is about a kilometer, kilometer and a half. Got some fantastic numbers. And here it dies out, but you can follow the structure and it picks up when it connects to La Paloma, the other prospect to the south.

7:28 From this image, another thing that's quite interesting for me as a exploration geologist. And I'll talk about this La Provedora a little later. Look at the soils anomaly concentrated along this La Provedora prospect which is ours sitting right here. And I'll tell you about it later. We don't see much at surface, but the soils are incredible good signature Then we did some geophysics IP resistivity program and did this basically squid We have set up and did all over it's about 2.8 clicks north-south Lines about 200 meters spaced apart and we just centered it on the main Buena Vista corridor we had mapped. So as you can see it fits like a glove on a risky contrast here. And the interesting part here, Paloma, is you see it turns into a Y, and if you follow this it will connect to another prospect on the road called La Guadalupe and here basically it shows you a section of geological section the dike the main structure is 2 of the holes, some of the values overprinted on the resistivity section.

8:40 So it's your typical, what we call in interpretation geophysics, path leg. And this path leg, You follow it all the way to the north and all the way to the south. Meaning this structure is based along a regional corridor. It is continuous. Mineralization is hosted from here all the way down. We have a pretty nice 2.8 kilometers to work with on this one prospect. We did a drilling program end of 23, 24 and it wasn't a great success but It gave us a lot of good information. You could basically figure out that they get some good data from all the core that we drilled. It proves the continuity of the system at depth and the law of strike, the thickness of the main structure.

9:32 This is 1 structure and it's just one piece of it. We drilled just one little portion of it. We got some interesting numbers for when it hit. Then we did some major brainstorming sessions. Me and my top geo Hermino, trying to figure out why we didn't hit and where is this goal? Because with all the gold we got at surface, it must be somewhere and there's other prospects. What would be the next second phase of drilling program? So as geos, we sat down, okay, let's see where we would put new drill holes and check this property. It has much more potential than just a little portion we drilled. So we've decided on testing 5 targets as you can see here. The upper portion of the Buena Vista structure which was drilled, the lower portion of the Buena Vista structure, some of the geophysical targets that were given to us which is quite interesting by the way, and the La Tramposa prospect, which is an extension of the Buena Vista corridor along, I mean, from the old mine workings.

10:41 And the intriguing La Provedora prospect, which I show you on the soil map, is 1 we want to test some holes into. So first, testing the upper hundred meters. When you look at the right section on the right side, this is from Los Reyes, this is from Prime Mining, and you look at their goal. It sits in little discrete lenses here, there, and maybe a bit there, and there's nothing. There's a lot of dead portions. And if you look at the depth of this thing, that's probably 50 meters. When I see the upper part, when I look at where we drilled along this hill for about 300 meters, this is probably the closest. We've got about 85 meters right here, sitting right here, that's not been drilled. We got values 20, 30, 40 grams of 200 right at surface right there.

11:34 So there's a nice little wedge, nice little slice that we need to test. And also we wanna test lower down. This I'll explain on a different slide.

11:45 So we got the same systems. So there's no doubt there are some discrete lenses and there's some really zones where there's nothing. This slide I think shows you quite well what we mean by the upper portion. And one of the things we saw in the core, the last drilling program, was the abundance of this low temperature quartz textures like calcidating quartz, amethyst quartz, even calcite veinlets. And it's amazing in, well, you'll see in the next slide, epithermal system. That means we're not in the hot part of the system. We're more still in the cool temperature part of the system so usually it doesn't mineralize you got to go lower down the hotter portions and but it happens also at Los Reyes which I mean every every system is different But here it shows you the beautiful breccia quartz we hit along this basically main structure at 44 meters down.

12:41 And here is from a hole 11, we don't have it on this slide, but we have chalcedonic amethyst quartz down here at 100 meters. So that my second geologist, Hermino, my best probably best geologist in the company, has put this slide together and it shows you basically on the left side the standard epithermal system that is used in the industry. It basically relates everything to depth with different alteration minerals and what you see. According to him, all these minerals you see in the core, he's logged all the core, is basically cool temperature type alteration minerals and coarse textures. You can see our 2 holes, 1 here, black, and 1 here.

13:27 That's basically still where we drilled. This higher grade sulfate silver you would basically find lower down so he's talking about we should be drilling this thing down here which talking about 250 300 meter deep holes make sense great target we will test the geophysicist we did the interpretation of the data for this geophysical contractor we use, which is really good by the way. He did his own interpretation and gave us a map with targets and prior there's some priority targets and he didn't really look at the geological data like we did. What I found interesting from this is as you can see is the red dots are basically the targets he's defined but they got trends if you tie them together it's also related to a resistivity contrast same thing for this site so and then where we drill is right here so these some of these holes are based on what we call chargeability anomalies.

14:34 This one not, but if you look at the contrast in resistivity on it, well, they're definitely great targets. So we'll put a few holes in there too. And then finally, at the end of the Buena Vista corridor, well, not at the far end, basically about a kilometer, we've mapped this a little bit

14:52 further here. We've got La Tramposa, we got our sort of a road that can we access and can bring our drill to. And look at these multiple veins we have here this thing splits in 3 or 4 branches and we want to put a few holes in here and we got numbers that surface like 2 and a half grams cold and silver so enough anomalous values to get there and drill. So here's let's talk about this famous La Proverora prospect. It's sitting about a kilometer and a half, 2 kilometers straight east from La Paloma, which is at the end of the Buena Vista corridor. And what happens there, you got basically nothing at surface. You can't see nothing. And you see a bit of alteration with the quartz but we had interesting soil values.

15:41 So an old-timer gave me this sketch map that was done in 1990s

15:46 And as you can see it there, that was the ore zone they mined out. We cannot get in, we had no access to it, not because it's caved in. It's loaded with bad excrement. I mean when I say loaded up the belt. Our boys tried to get in with masks, USA army mask, no way. So the only way to get in there and get a sample is, is to drill it. And the interesting 2 or 3 old timers that worked there, they, they told me that that was the best prospect on the whole property. And it was rare that you would take samples anything out of there that had less than 100 gram per ton gold and kilos of silver. And when you take a look at the soils they start they start to look like a, how do they say, lower it down. You got a bit of anomalies in the, as you can see the comparative soils I had in the other map right here. That's why I'm pretty excited about this. And you can see on this little property we don't own right here, there's an east-west sort of structure. This thing is dipping 20-23 degrees to the north.

16:52 I mean, whoa. And there were some local miners that came there with a scoop, I guess they have access to dynamite, that were working this really low angle,

17:03 it looks more at geological contact than the structure. And 1 day we decided, let's just go have a look. They gave us a tour inside, doesn't go too much. And there's a zone of galena rich, chalcopyrite rich, probably half a meter, a lot of gouge. And it's, you know, we said, can we take a sample? We took a sample, it didn't look like much. It looked like we had a lot of base metals. And they claimed they were over a hundred grams per ton gold. Our sample came back 130, I think, gold, 3 kilos silver and 10, 15% lead zinc. And this baby is sitting just east of where we are on Provedora. Big mystery zone. So a great target. Geophysical signatures the same. So this is the last target we would like to basically test on the second phase drilling program guys. I'm going to pass this on to Doug. Well thanks Alain. So that's a quick update on what we've found from the work we've done over the past 2 years and the drill program we conducted.

18:04 And we're very excited to get back in and put some holes in on targets, both new and

18:12 advancing on where we had drilled in the past. So we are going to do a financing now. We're doing a 5 cent financing to raise up to $1 million. That will more than enough cover the drill program we've got planned for this summer. Right now, we don't have all the holes plotted yet and we don't have exact footages, but it's going to be around 2,500 meters plus. We think that we can complete that in about a 2 month period.

18:41 And we hope to get drilling in July, August at the latest. We want to utilize the rainy season to get water for us. It saves us a lot of money on our costs. The last campaign we drilled, the drilling company was exceptional. Our team was exceptional. We did it relatively quickly and we were under budget on the drilling. So we're pleased that we can go into this with some confidence and some knowledge that we've gained from the last program. This slide is a share structure slide. You can see we've got 41 million shares out. We've got some warrants at 20 and 30 cents. There's a few at a lower price from our merged company. The financing that we're doing is not going to put us in a position where we're over-issued in shares and it will get us a drill program that we think will really prove up this property to the level that we can start raising more money and really hitting this hard. The financing will be done at a nickel. We'll have a full warrant for 2 years from when it closes, so we'll be looking for people. We've been talking to a number of groups that we hope will assist us in this and we're fairly confident we'll be able to get this completed in the month of June, early July. We'll open it up for questions now.

19:56 We've got a great team to help us advance and our Mexican team is also superb with Alain leading the team, Almendra as operations manager and Emilio Mendez, Alain's mentioned him, he worked with Alain when they were with Francisco Gold, Chesapeake,

20:17 he left out those projects, he went with Agnico Eagle where he was senior geologist for the Mexican assets. Just a huge, vast experience, and he's working alongside Elaine now. So a great Mexican team that is going to help us build Eden into what we think it can be alongside

20:37 Las Reyes to the south of us. I see one question that's come up here. Are you guys talking to Prime Mining? Any conversation about them financing? We talked to Prime. Elaine has reached out a number of times. We've talked to them about financing, there's been no commitments from their side. We will continue to talk to them. We've been down to their project once and looked at a few things. We've invited them up to our project. They've got a lot of similarities on their deposit that we feel we have on Eden. So it makes a lot of sense to keep talking with them. What are your discussions like with them? When we first acquired the property, we didn't know we were on the northern boundary of prime

21:18 and we were surprised it was open. I'm not sure why it was, but one of the thoughts was that they think it was not granted deeded land as I call it. But, Elaine, I don't know if you've got anything to say to that. The way I look at it, they didn't do their homework. I mean, they were there for 5 years and they surprisingly, their geo had never visited that prospect and you had coal coming out of this thing or the Buena Vista thing And me as a geo, I was surprised. I mean, it's next door to you. I mean, usually

21:49 you check whatever's around you, no? So they missed it. They just simply missed it. Good for us. We were fortunate. This property has good value. Look at the drilling. We got 11 holes in 300m by 200m portion of 1 structure. We have 4 structures. We have Gold everywhere. These guys have over 600 holes. They have 2Moz, but they have 600 holes. We don't even have 2% of that. Our property size-wise is about, let's say the title portion, it's probably 40% of what they have, 35, 40%. Good real estate for sure. And yes, they're talking like Doug says, we're talking, but I mean, I think coming along probably after looking at this and we'll have a phone call I mean we're open like Doug says but we know we're not going to give this away for nothing that's for sure I'd like to point out is prime is excellent job of advancing their project When they acquired the project in 2019, there was a resource, it was in 3 different target areas, But they've come in and they've taken that resource from, let's say, half a million ounces to over 2 million ounces. So, they've not only understood the geology and the land package, but They've brought the whole land package, both from surface rights and mineral

23:19 rights together. They've got an excellent understanding of what they're doing and where they're going with their resource. So they've done a fabulous job of building it. And when we look at the similarities of the 2 projects. And like Elaine says, we've got 11 holes in it. We started with basically nothing and we're going to start building on it now. And this next drill program, I think will help us do that, help us to get an even better understanding to focus more drill holes. And we'll continue to build on this as we go ahead. I think what we need to do is get into this next phase of drilling and answer some of the questions that we had about the closer to surface mineralization that we see from what we've sampled underground and what we've sampled on surface. Like Elaine pointed out, those are great numbers. We're down underground, let's say 40m from surface, we're getting 239g in underground numbers. All the way along that 100m at it, we were getting good numbers and we're also getting them on surface. So let's drill in that top a hundred meters and see what it is.

24:28 And we're quite confident that we will get numbers in that area in the first phase of this next drill program. And that will wake up a lot of people as well. We were a little bit discouraged in our numbers that we got out of the Maiden drill program, but we did see an ominous goal throughout. We hit the structures in every hole. We learned a lot from that and we're going to take that knowledge and move to the next phase. What is the top priority target for drilling in the second stage? I like the upper portion. Why? Because it's going to have numbers. Then I'm curious about Provedora. I would like to poke a hole in this thing and it's good access. And one thing we have also, you know, drilling.

25:15 I think Mexico is very tough to get a drilling permit these days. Very tough. I've been there over 30 years and right now a lot of companies are waiting. We have a permit. We have holes that we have not drilled, probably 30. We have roads so we can drill. We don't have to go through this backlog, whatever they have with the environmental bureau here, but it's like a big, big cluster. And not only that, it would be easy because it's portable drills, but most of it have road access. And that's the 2 targets I would like to do. As a geo, I would like to do one in Provedora also, at least 1. And go from there. There are 3 more, Well, kind of 3 more questions. This one here, is it possible they did their homework and they received similar results as your 11 drill holes and chose a different location, them being prime? Yeah, I can answer that one. Well, the way I look prime, they took an old district. They took an old district called Guadalupe Los Rios. They had structures there. There was about 10 companies that worked there, Canadian companies.

26:24 The big, there's a book written on this from the old archives. I think it's from 1870 to about 1910, the revolution. And it's an archives, it's rare you sign that where it says 600,000 ounces roughly of gold was mined out from these 3 main, there's 3 main arteries, they're parallel. And some of these old timers, that was old timers, they went down to 300 meters. So if they mine all the high grade, what's left is basically the envelope. As you could see in my presentation, the bread chaffs and stockworth, which give you 1 to 2 grams, right? So that's a big plus on our side. That the old working is going down about 10 meters, 15, that's it from surface, 20 by the most. And it's not eaten out, like we call it. So do they have an area that's new like us? They do have one.

27:19 They do have several, but they're not really sharing the data with me, although I ask. If there's 1 that's called MENA 2022 or something, it's sitting 20, I'd say, let's say, 4 kilometers, 3 or 4 kilometers north of where their main activity is getting closer to us and it's got a similar orientation structure as ours which is north-south northeast and they call it on their map, MENA 2022. And to me, that's 1. And then I heard they had good numbers, but I had never seen any data on it. I think they just poked a few holes on it, and then they're still working these 3 old arteries, extending from them, widths, you know, and that's the way I would do it if I would have this whole property, build some resource, right?

28:08 But they're not really exploring the satellite targets around. They are, but they're really doing slowly, not as aggressive as us, we should say. We did geophysical work, we did soils and I don't think there's anything we should have done more. I mean we did everything on this property except land sat and all this satellite stuff but I think the best way to do a study on the property is, like they say, sleep with the rocks. I mean, spend the time with the rocks, touch them, soils, rocks, map, field work. And mapping is well done. We have a really good geologist that did the mapping and we just got to put some holes in this. 2 more questions. 1, I understand Silver's at an all-time high.

28:53 Does this play into our property at all? Well you go there Steve, more following markets than me. I mean to me, Everybody's talking about silver Mexico. I mean silver is Mexico silver equals Mexico like right now. Yeah, right now You know silver hit $32 the other day, which is and to to coups to try to Just kind of barrel it. This is the best Silver's ever done. Yeah, I mean, for sure. Does it affect us? We're a small guy. I mean, geez, we're just a small company. So I don't think we got affected by that. Like a prime, does it get affected by the price of silver? But yes, it is a silver gold property. I mean, definitely. A lot of silver. Look at the, what's La Provedora? No, the one we sampled La Republica, that crosses La Provedora, with their sample, their silver was like almost 3 kilos.

29:48 3 kilos? Yeah. Oh yeah, there's definitely, that's a really interesting target as a geologist. You want to figure out that there's 2 different systems there. So, I don't want to get into this technical stuff there, Steve. There's 1 very important one. How do we get access to the private placement? What I want you to do is email Jonathan Youni, who's one of our partners. He's also our CFO. His email address is j, like Jennifer, y, like yourself, O-U-N-I-E at centenarialgold.com. We're also going to be sending out a follow-up email to all the attendees. Okay. Are there any other questions? There's one last question. Does Doug pay his internet bill?

30:37 Good. No, I don't think so. Well, guys, thanks very much. Thanks everyone for attending and We look forward to hearing from you soon through email. If you ever have any questions, please contact me. You can call me anytime, 24-7. Anything else? Thank you, everybody. We will do another one once we get good results after the second phase drilling.