CORE SAMPLING

Aztec - Kootenay JV updates on drill programme in Sonora, Mexico

The first 14 holes of the Phase 2 drill programme at Cervantes Property in Sonora completed

 The Aztec-Kootenay JV has completed the first 14 holes of the current 22-hole Phase 2 reverse circulation drill programme at the Cervantes Property in Sonora, Mexico

The Aztec-Kootenay JV has completed the first 14 holes of the current 22-hole Phase 2 reverse circulation drill programme at the Cervantes Property in Sonora, Mexico

Drilling commenced in December 2021, took a Christmas break, and resumed in January. Drill samples were shipped to the Bureau Veritas Minerals laboratory in Hermosillo for geochemical analysis and results are anticipated in the next several weeks.

Four main targets will be tested. The primary objectives of the 2021 - 2022 exploration programme are to better define the open pit, heap leach gold potential of the porphyry oxide cap at California, evaluate the potential for deeper copper-gold porphyry sulphide mineralisation underlying the oxide cap, test for north and west extensions of the California mineralisation at California North and Jasper and assess the breccia pipe potential of Purisima East.

The initial four holes were drilled for 769.6m to test the southern portion of the Purisima East target, an area that hosts historic underground mines and prospects. This is area is coincident with IP chargeability and gold-copper-molybdenum anomalies within a breccia along the rim of a porphyry intrusion. All four holes intersected pervasively fractured, oxidised, argillic and silicified sediments and quartz-feldspar porphyry dikes and hydrothermal breccias. Over 300 channel samples of 1.5m lengths were collected along the drill road cuts and geologic mapping was conducted as well.

Subsequent to testing the Purisima East target, the drill moved to the principal California target, where the Aztec - Kootenay JV previously discovered extensive porphyry gold-copper mineralisation (drill intercepts up to 0.77g/t gold over 160m). This mineralisation is associated with massive silicification and extensive hydrothermal brecciation of the hosting quartz-feldspar porphyry and the surrounding sedimentary rocks.

In 2022, the JV has drilled 10 step-out holes for 2,041m at 50m spacings to expand and better define the area of mineralisation at California. There remain several drill holes to be completed to be followed by two 500m deep holes to test the depth extent of the strong underlying IP chargeability anomaly.

The remaining Phase 2 drill exploration programme will test the California Norte prospect - one hole will test a small part of the coincident IP chargeability/gold-copper-molybdenum anomaly, and the Jasper prospect - one hole will test the outcropping strong oxide copper mineralisation and extensive copper-molybdenum soil anomaly.

After drilling concludes, company geologists will turn their attention to channel sampling and geologic mapping of the newly cut drill roads at California, California Norte and Jasper, as well as to expand surface sampling and mapping on the property in general to continue the 2021 Phase 1 surface programme.

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