La Gloria and Palodismo Gold Veins

La Gloria is the largest historic gold mine on the Property.

La Gloria and Palodismo are two of a northwesterly trending swarm of gold veins and stockworks exposed on the northwest flank of Cerro La Gloria. Hostrocks to the veins are bimodal Paleocene pyroclastic rocks and shoshonite. Flow banded rhyolite cryptodomes intrude and invade the pyroclastic rock pile.

La Gloria

La Gloria crosscut (BRG-121714) is located 2.8 kilometers east-northeast of the core shed at San Agustín. This mine opening trends northeasterly for 106 meters and exposes 71 meters of amygdaloidal shoshonite followed by 35 meters of pyroclastic agglomerate before arriving at La Gloria Vein. The vein is about 1 m wide and has an average orientation of 159°/65° SW. Above and below level 950 the vein is exposed by a honeycomb of open stopes and pillars about 1.5 meters wide over a northwesterly trending strike length of at least 100 m.

Sampling Results for La Gloria Gold Vein. DL=Detection Limit.

Holeid	From (m)	To (m)	Width (m)	Au (g/t)	Ag (g/t)	Cu (ppm)	Pb (ppm)	Zn (ppm)	W (ppm)
BRG-50023	0.0	1.0	0.1	0.84	DL	787	1351	6672	7
BRG-50019	0.0	0.7	0.7	11.53	15	2402	3644	7108	10
BRG-50025	0.0	1.0	1.0	8.45	16	3884	13791	2860	14
BRG-50030	0.0	0.7	0.7	4.5	5	1817	3433	3324	9
BRG-50032	0.0	1.0	1.0	10.75	7	858	6497	6058	15
BRG-50034	0.0	0.6	0.6	16.36	23	1355	17532	6639	19
BRG-50017	0.60	0.7	0.1	123.56	50	28000	13500	79600	48
BRG-50015	0.0	0.1	0.1	75.87	61	113000	37400	116000	104
BRG-27119	0.0	0.6	0.6	2.15	8	2343	7598	14503	DL
BRG-50006	0.0	0.7	0.7	2.09	14	1875	7346	9427	9
BRG-50011	0.0	1.0	1.0	3.20	5	741	4121	18870	DL
BRG-27121	0.0	1.3	1.3	7.06	21	6415	3516	5125	8
BRG-50013	0.0	0.7	0.7	1.35	5	733	3035	14032	DL
BRG-50004	0.0	0.6	0.6	0.03	DL	147	993	3500	DL
BRG-50008	0.0	1.0	1.0	2.62	DL	269	1729	5448	8
BRG-50002	0.0	1.0	1.1	0.40	DL	394	1393	3714	DL
BRG-121714	135.0	143.0	8.0	3.89	2	634	1737	6724	DL
DH-BRG-028	141.0	142.0	1.0	6.26	1	47	5368	2857	DL

Indicated mineral resources estimated from the above sampling are 89, 017tonnes of 5.71 g/t gold, 7 g/t silver, 0.2% copper, 0.5% lead and 0.8% zinc using a 1.83 g/t gold-equivalent metal cut-off for La Gloria gold vein. Information regarding the mineral resource estimate is here.

Palodismo

Palodismo is a mineralized zone in the hanging wall to La Gloria with an average orientation of 143°/76° SW. Historic workings on the Palodismo structure include a 10-meter-deep shaft sampled by MCA-25207 and 5-meter-long adits sampled by MTA-19692 and 19690. DH-BRG-028 intercepted Palodismo between 105 and 113 meters and BRG-121714 intercepted anomalous precious metal values that represent the Palodismo structure between 9 and 25 m. Most of the rocks sampled by BRG-121714 and DH-BRG-028 are altered to chlorite, saponite and epidote typical of propylitic alteration assemblages and contain markedly anomalous lead and zinc concentrations ranging from 0.1% combined Pb+Zn to more than 3% Pb+Zn. Gold is mainly in native form in micro and macro fractures that also contain comb epidote and quartz with intergrown galena, chalcopyrite, and sphalerite.

Sampling Results from Palodismo Gold Vein. DL= Detection Limit

Holeid	From (m)	To (m)	Width (m)	Au (g/t)	Ag (g/t)	Cu (ppm )	Pb (ppm)	Zn (ppm)	W (ppm)
BRG-121714	9.0	12.0	3.0	0.34	4	674	9950	20033	DL
BRG-121714	17.0	25.0	8.0	0.44	1	84	1459	6129	7
MCA-25207	0	0.8	0.8	9.70	2	930	5620	3180	DL
BRG-50501	27.0	36.0	9.0	0.59	3	195	4122	9106	10
DH-BRG-028	105.0	113.0	8.0	2.29	1	24	690	298	DL
MTA-19690	1.3	2.6	1.3	27.61	4	210	2000	1900	DL
MTA-19692	0	1.8	1.8	1.03	4	1761	15417	27000	DL

Using a 1.83 g/t gold-equivalent cut-off grade, indicated metal resources in the Palodismo Vein are estimated at 53,903 tonnes of 8.26 g/t gold, 3 g/t silver, 0.1% copper, 0.6% lead and 0.8% zinc. Inferred metal resources are estimated at 121,950 tonnes of 6.87 g/t gold, 2 g/t silver, 0.1% copper, 0.4% lead and 0.3% zinc. Information regarding the mineral resource estimate is here.