Andes Gold Portfolio

The Andes Portfolio covers 80,617 Ha (48 Ha mining title; 3,955 Ha granted title & 76,614 Ha technical title) located on the eastern flank of the Western Cordillera of the Andes Mountains. This region was a very significant gold producing area between the 1st and 7th Century AD, exploited by the Quimbaya Civilisation.

The majority of the project lies within the municipalities of Andes, Jardin, Betania & Bolivar in the department of Antioquia. The town of Andes is located approximately 65 km or 2.5-3 hours drive south-west of Medellín on a paved two-lane highway.

The Project has excellent power, water and communications infrastructure and access with ~1,000 km of roads. The Project elevation ranges from 1,500 mRL and 2,500 mRL. The Company does not explore within protected paramo zones or forest reserves. The project is considered to be in a low security risk area.

El Columpio

El Columpio is a mining title hosting a corridor of gold-silver veins. LiDAR imagery suggests the target is within a regional scale ring structure often associated with substantial mineralised discoveries. A maiden scout drilling program by Andes in November 2018, and the first drill program within the entire Andes Portfolio, reported NW/SE oriented epithermal gold veining with best intersection of a 26.79m wide zone grading 1.58 gpt Au and 83.17 gpt Ag from 52.4m (including 7.27m grading 3.32 gpt Au and 247.57 gpt Ag from 72.07m). High silver: gold ratios and other signature elements suggest the extensive veining mapped at El Columpio formed on the flanks of a causative intrusion such as a porphyry, with some evidence in surface results and the limited drilling pointing northward to an intrusive heat source(s).

El Columpio and San Pablo / El Bosque cover parallel mineralised corridors. The valley at San Pablo contains an intrusion (potentially a porphyritic diorite subject to petrography) traced over an area of 500m x 300m. Observed alteration zonation combined with element signatures are consistent with porphyry-style zonation and points to the deep valley in the centre of the licence area as the mineralised source. The combination of highly anomalous soil samples, extensive alteration and numerous workings in the El Columpio and San Pablo/El Bosque area indicates the potential for a significant mineralized NW oriented corridor.

San Pablo

San Pablo lies two kilometres to the south of El Columpio and within an interpreted 11 km long mineralised corridor. San Pablo is a granted licence of 150 Ha (permitted for drilling). It comprises numerous historical and active artisanal adits with 9 substantial veins mapped thus far, some traced for 700 vertical meters and for over 1km of strike with veining swelling to over 5m wide in some locations. In addition to San Pablo being a vein hosted gold-silver target, recent results and mapping have raised the potential of the area to also be a gold porphyry target. Potassic alteration has been recorded at lower elevations with stockworks and porphyritic textured intrusives observed over an area of 500m x 300m in the deep valley below the extensively vein mineralized regions. This target is drill ready subject to receipt of certain drilling permits. Immediately to the east of San Pablo and on Andes licence applications is the El Bosque mineralised zone including the El Bosque Mine which is the largest artisanal mine in the region. Andes Holding SAS, an incorporated joint venture in which Los Cerros has a 90% interest, currently has a 77% beneficial right to San Pablo and capacity to secure 100% of the rights on payment of a final milestone payment in the amount of 491,500,000 Colombian Pesos.

Other Projects

The Company has only explored approximately 10% of its land holding in the Andes Portfolio and has thus far identified numerous priority targets based on surface work and artisanal mining activity in the western portion of the portfolio. Some of these regions such as San Esteban, Santa Rita and La Alianza are considered to represent the Au-Ag-As-base metal bearing intermediate-sulphidation epithermal veins that typically occur from 500m to 5km from a causal intrusive (porphyry). Others such as Taparto and San Pablo show potential to occur in the middle to upper portions of porphyry systems characterised by anomalous Cu-Mo and Bi. La Rochela, San Agustin prospects indicate potential to lie within the upper parts of porphyry systems as inferred from anomalous Mo, Bi, Au & Ag. The eastern region of Andes’ portfolio lies within the same subsection of the Mid-Cauca Gold Belt that hosts Los Cerros Quinchia Portfolio along with other significant discoveries such as Nuevo Chaquiro and Continental Gold’s Buritica project to the north. The Company has a number of established porphyry targets in this region including Gibraltar, an outcropping porphyry just 20 kms south of Nuevo Chaquiro.

A subsection of the Andes portfolio. Surface mapping and sampling has defined 12 targets interpreted to lie within five NW trending mineralised corridors. Much of the Andes portfolio remains unexplored by modern techniques.