CSE: MERC
COPALITO
Project Locations
Western Mexico Silver Belt Sinaloa, Mexico
The Emerging Western Silver Belt of the Prolific Sierra Madre Occidental where existing mines and recent discoveries include:
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Vizsla Silver, Panuco District
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First Majestic Silver, San Dimas
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Pan American Silver, Alamo Dorado
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Greater than 3000 ha located in a mining friendly jurisdiction.
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Properties located near power, roads, infrastructure and local workforces
Copalito
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123 km northeast from Culiacan
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35 km east of McEwen El Gallo Mine
Introduction
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District scale opportunity with 7 concessions covering overing 2,820 ha
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Option to earn 100% over 5 years
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8 km cumulative strike length over six known silver and gold veins
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All historical exploration data acquired including 81 diamond drill holes
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Highlight Results:
347 g/t silver, 0.22 g/t gold, 0.18% lead 0.38% zinc over 13.10 m in BDH-20-004 and 125 g/t silver, 2.00 g/t gold, 0.34% lead and 0.58% zinc over 23.00 m in BDH-21-055 -
Only 60% of known mapped veins have been drilled
Great Location
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123 km northeast from Culiacan
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35 km east McEwen El Gallo Mine
7 Concessions
7 concessions covering 2,820 ha
Earn 100%
Option to earn 100% with staged cash payments totaling $3.5M USD
Geology
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Located along the interpreted western margin of a large regional northwest trending graben
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Northwest trending vein mineralization occurs within the lower andesite volcanic sequence a prolific host of epithermal vein mineralization in the Sierra Madre Occidental
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Veins are parallel to, and near the western bounding faults of the graben
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Near contact with the upper volcanic sequence of rhyolitic tuffs, ignimbirtes and flows
Vein Mineralization
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6 principle northwest trending low sulphidation epithermal veins with estimated cumulative strike length of over 8 km
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Mineralized sections of the veins range from 0.5 m to over 15 m in thickness
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Textures include chalcedonic banding, barite casts, open space brecciation and amethyst quartz typical of known
epithermal style mineralization throughout the Sierra Madre Occidental -
Minimal alteration halos and geochemical signatures indicate that the top of the mineral system is preserved
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Several old workings present at 5 Señores, El Pilar, La Chivas and El Agua
Historic Mine Working & Surface Occurrences
5 Señores
La Chiva
El Pilar
La Chiva Vein
EL Agua
El Pilar
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Drilling
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A total of 81 diamond drill holes completed in 2020 – 2021 by previous operator
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Drilling has tested approximately 60% of the known strike of the veins and only to an average depth of 100 m
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Several productive veins and vein segments delineated in the drilling that are open and ready for aggressive follow up drilling
Significant Drill Hole Intersections
Historical high-grade silver and significant gold and base metal drill intercepts include;
375 g/t silver Eq over 13.10 m in BDH-20-004 and
294 g/t silver Eq over 23.00 m in BDH-21-055.
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The technical information and data for the Copalito property appears to be of a good standard. However, the QP has not conducted sufficient work to independently validate the assay drill core results. Therefore, the Company is treating the Copalito results as historical in nature and are not to be relied on. The QP will independently verify results of the historic work during a site visit later this year.
1 Silver-equivalent values are calculated assuming typical recoveries based on metallurgical studies conducted on analogous epithermal vein deposits and are not necessarily reflective of metallurgy on the property. No metallurgical work has been reported on the property. The recoveries used are 91% silver, 94% gold, 70% lead, 75% zinc and 80% copper. The silver – equivalent formula is: ((24 * silver (g/t)*0.91 / 31.1035) + (1900 * gold (g/t)*0.94 / 31.1035) + (0.90 * 2204 * lead %*0.7/100) + (1.10 * 2204 * zinc %*0.75/100) + (4.00*2204*copper %*0.8/100)) *(31.1035 / 24). Metal price assumptions are US$24/oz silver, US$1900/oz gold, US$0.90/lb lead, US$1.10/lb zinc and US$4.00/lb copper. Copper values are only included in the calculation of silver-equivalence for a mineralized intercept where the intercept contains at least one copper value that exceeds 0.1% copper. Numbers may not match due to rounding.
2 True widths are unknown.
5 Señores Vein and El Agua Vein Cross Section
1 Silver-equivalent values are calculated assuming typical recoveries based on metallurgical studies conducted on analogous epithermal vein deposits and are not necessarily reflective of metallurgy on the property. No metallurgical work has been reported on the property. The recoveries used are 91% silver, 94% gold, 70% lead, 75% zinc and 80% copper. The silver – equivalent formula is: ((24 * silver (g/t)*0.91 / 31.1035) + (1900 * gold (g/t)*0.94 / 31.1035) + (0.90 * 2204 * lead %*0.7/100) + (1.10 * 2204 * zinc %*0.75/100) + (4.00*2204*copper %*0.8/100)) *(31.1035 / 24). Metal price assumptions are US$24/oz silver, US$1900/oz gold, US$0.90/lb lead, US$1.10/lb zinc and US$4.00/lb copper. Copper values are only included in the calculation of silver-equivalence for a mineralized intercept where the intercept contains at least one copper value that exceeds 0.1% copper. Numbers may not match due to rounding.
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A robust multi – vein system with thick intersections of potentially economic mineralization
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Several segments of the 6 principle veins remain open along strike and down dip of existing drill intersections
5 Señores Vein Long Section
1 Silver-equivalent values are calculated assuming typical recoveries based on metallurgical studies conducted on analogous epithermal vein deposits and are not necessarily reflective of metallurgy on the property. No metallurgical work has been reported on the property. The recoveries used are 91% silver, 94% gold, 70% lead, 75% zinc and 80% copper. The silver – equivalent formula is: ((24 * silver (g/t)*0.91 / 31.1035) + (1900 * gold (g/t)*0.94 / 31.1035) + (0.90 * 2204 * lead %*0.7/100) + (1.10 * 2204 * zinc %*0.75/100) + (4.00*2204*copper %*0.8/100)) *(31.1035 / 24). Metal price assumptions are US$24/oz silver, US$1900/oz gold, US$0.90/lb lead, US$1.10/lb zinc and US$4.00/lb copper. Copper values are only included in the calculation of silver-equivalence for a mineralized intercept where the intercept contains at least one copper value that exceeds 0.1% copper. Numbers may not match due to rounding.
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5 Señores vein drill tested over 1000 m of strike and a maximum vertical depth of 130 m in two locations
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Remainder of the vein has only been tested to an average of depth of less than 100 m
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5 Señores remains open down dip and along strike to the northwest
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Opportunity to identify secondary controls for high grade mineralization as well as thicker portions of the vein for aggressive follow up drill testing
Opportunity & Next Steps
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Copalito presents a District scale opportunity with known critical mass of silver – gold mineralized epithermal veins that is ready for expansion by drill testing
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Only 60% of the estimated strike length of veins have been drill tested to an average depth of 100 m and remain open to depth
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Several features indicate that the top of the mineral system is preserved leaving the full depth potential of Copalito intact for productive mineralization
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Northwesterly extension of vein systems remain unexplored and will be prospected and mapped
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Structural interpretation is ongoing and will refine drill targeting aimed at testing thicker and potentially higher grade vein segments
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Next phase drilling to test 4 high priority targets at 5 Señores, El Agua and La Chivas
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Potential to define a potentially economic low sulphidation silver – gold- lead – zinc vein deposit at Copalito